Credit purchase of plant and machinery is recorded in which of the following specialized journals? A. General journal B. Cash journal C. Purchase journal D. Purchase return journal
Question
Credit purchase of plant and machinery is recorded in which of the following specialized journals? A. General journal B. Cash journal C. Purchase journal D. Purchase return journal
Solution
The credit purchase of plant and machinery is recorded in the Purchase Journal. So, the answer is C. Purchase Journal. This journal is used to record all credit purchases made by a business, not just those for plant and machinery. It's part of a system of special journals, where a business divides its transactions into categories like sales, purchases, cash receipts, and cash disbursements. This system allows
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