Q.Journalise the following transactions of Kavya Traders in the Journal Proper, giving a brief reason in each case why the transaction cannot be recorded in any other subsidiary book:

In each case, trading goods leave the business for a reason other than a sale, so Purchases Account is credited at cost, and the account explaining WHY the goods left is debited.

1. Goods withdrawn for personal use — the proprietor has taken trading goods out of the business for private consumption. This reduces the goods available for sale (credit Purchases Account, at cost) and increases what the proprietor has drawn out of the business (debit Drawings Account). Journal entry: Drawings A/c Dr ₹5,000; To Purchases A/c ₹5,000. (Reason for Journal Proper: no supplier or customer is involved, and no cash changed hands, so none of the goods-related books or the Cash Book applies.)
2. Goods distributed as free samples — this is an advertisement expense paid for in goods rather than cash; the value (at cost, never at selling price) is debited to the Advertisement Account and credited to Purchases Account. Journal entry: Advertisement A/c Dr ₹2,000; To Purchases A/c ₹2,000. (Reason for Journal Proper: no sale has taken place — no invoice is raised and no customer's account is affected.) …

A very common mistake is valuing goods withdrawn/given away/lost at their normal SELLING price instead of at COST — since these are not sales, no profit is ever recognised on them; only the cost value ever leaves the Purchases Account. Another common slip is crediting …