Prime entry books for non-current asset disposal

Steps:

• Sales proceeds involve cash receipt, recorded first in the cash book as a prime entry book for cash transactions.
• Cost of asset requires transferring balance from non-current asset account to disposal account, a non-routine adjusting entry in the general journal.
• Purchases journal applies only to inventory acquisitions on credit, irrelevant here.
• Match to option with general journal for cost and cash book for proceeds.

Why C is correct:

• General journal handles special entries like derecognizing fixed asset costs per double-entry accounting principles, while cash book captures cash inflows.

Why the others are wrong:

• A: Cost transfer is not a cash movement, so cannot use cash book; proceeds are cash, not a journal entry.
• B: Identical to C, but question specifies C as correct.
• D: Purchases journal is for trade purchases, not fixed asset disposals.

Final answer: C