Q.State, with a brief reason, the book in which each of the following transactions of Kavya Traders would first be recorded:

Each transaction is tested against two questions: is cash involved (→ Cash Book), and if not, is it a credit dealing in GOODS (→ Purchases/Sales/Return Books) or something else entirely (→ Journal Proper)?

1. Sold goods to Mala for cash — although goods are involved, the transaction is for CASH, not credit, so it never enters the Sales Book (reserved strictly for credit sales); it is recorded in the Cash Book.
2. Sold an old typewriter for cash — this involves neither goods nor a credit transaction; a cash receipt from disposing of a used asset is recorded in the Cash Book (with any profit/loss on disposal computed separately against the typewriter's book value).
3. Purchased goods on credit from Geetha Traders — a straightforward credit purchase of trading goods → the Purchases Book. …

The most common mistake is routing a CASH sale/purchase of goods into the Sales Book/Purchases Book simply because goods are involved — both of those special books are reserved strictly for CREDIT transac …