Question

Which of the following transactions would initially be recorded in a company's journal?

a. Bonus issue of shares.
b. Purchase of goods for cash from a supplier.
c. Redemption of preference shares.
d. Sale proceeds of non-current assets.

Answer 1

The purchase of goods for cash from a supplier would initially be recorded in a company's journal.

Step-by-step explanation:

Out of the given options, the purchase of goods for cash from a supplier would initially be recorded in a company's journal. This transaction involves the exchange of cash for goods, which is a common occurrence in a business setting. The journal is the first place where all financial transactions are recorded before they are transferred to the company's general ledger.