Multiple choice

When a cash book is maintained, transactions of cash are not recorded in the

  1. purchase book

  2. sales book

  3. journal

  4. All the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

When a business maintains a cash book, all cash-related transactions (including cash purchases and cash sales) are recorded directly there. Consequently, these transactions are excluded from the specialized journals like the purchase book and sales book, which only record credit transactions. They are also not recorded in the general journal.

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