Which book of original entry is used for recording the purchase of assets on credit? MCQ with Answer and Explanation

Question
Which book of original entry is used for recording the purchase of assets on credit?
A. Purchases Book
B. Sales Book
C. Journal Proper
D. Cash Book
Answer: Option C
Solution (By JKSSB Mock Tests)
The Purchases Book only records credit purchases of trading goods. Credit purchases of assets are recorded in the Journal Proper.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Question #1
Under the Income Tax Act, which of the following is NOT eligible for deduction under the specific Section 80C limit of ₹1,50,000?
A. Life Insurance Premium
B. Medical Insurance Premium for self
C. Public Provident Fund (PPF)
D. Sukanya Samriddhi Account
Discuss
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Correct Answer: Option B

Explanation:
Medical insurance premiums are eligible for deduction under Section 80D, not Section 80C. LIC, PPF, and Sukanya Samriddhi are all eligible under Section 80C.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
Which tax reform introduced the concept of 'One Nation, One Tax'?
A. Fringe Benefit Tax
B. Goods and Services Tax (GST)
C. Wealth Tax Abolition
D. Value Added Tax (VAT)
Discuss
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Correct Answer: Option B

Explanation:
GST integrated multiple indirect taxes across India into a single unified tax structure.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The 'Recoverable Amount' is the higher of:
A. Replacement cost and realisable value
B. Fair value less costs to sell and value in use
C. Market value and book value
D. Cost and net realisable value
Discuss
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Correct Answer: Option B

Explanation:
Recoverable amount = higher of (fair value less costs of disposal) and (value in use).
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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