Question 26 of 28
Q.Purchases of fixed assets on credit basis is recorded in
(a) Purchases book
(b) Sales book
(c) Purchases returns book
(d) Journal proper
Puducherry TnboardTamil Nadu HSC First Year (DGE) Commerce Board 2026MCQ· 1mImportance★★★★★
93% · 26/28 Questions
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Start your 14-day free trial to unlock the full solution →Credit purchase of a fixed asset is entered in the Journal proper — option (d).
The rule for subsidiary books
- The Purchases book records only credit purchases of goods in which the business trades (goods bought for resale).
- A fixed asset (machinery, furniture, building) is bought for use, not resale, so it is not 'goods'. Its purchase therefore does not belong in the Purchases book. …
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