Question

Which of the following transactions are of financial character and will be recorded in the books?

a. Credit purchase of goods
b. Goods worth Rs. 20,000 taken from the business and given by the proprietor to his friend as a gift.
c. Both (a) and (b)
d. None of the above

Answer 1

A credit purchase of goods is a transaction of financial character and will be recorded in the books. Therefore, the correct option is A.

Step-by-step explanation:

Out of the given options, the transaction that is of financial character and will be recorded in the books is option (a), which is a credit purchase of goods. This transaction involves the purchase of goods on credit, which means that the business owes money to the creditor for the goods received. It is a financial transaction as it affects the financial position of the business and will be recorded in the books of accounts.