WAEC Financial Accounting 2004 Question 3

Question 3

Books of Original Entry

Which of the following is used to record the purchase of fixed asset on credit?

  1. A.Sales journal
  2. B.Journal proper
  3. C.Purchases journal
  4. D.Cash book
Show the answer and explanation

Answer: B (Journal proper)

Explanation

Credit purchases of fixed assets go in the journal proper; the purchases journal is for goods for resale.