Non-current asset sales use the general journal for irregular transactions

Steps:

• Identify the transaction: Sale of a non-current asset (e.g., equipment) on credit is a one-off event, not routine sales.
• Recall books of prime entry: These classify transactions by type, with the general journal for miscellaneous or non-standard entries.
• Match to options: Routine credit sales of goods use sales journal; asset disposals do not fit cash, sales, or returns journals.
• Confirm: General journal records the debit to cash/bank receivable and credit to asset account, plus any gain/loss.

Why B is correct:

• The general journal is defined as the book for all transactions not covered by specialized journals, including non-current asset disposals per double-entry bookkeeping principles.

Why the others are wrong:

• A: Cash book records only cash and bank transactions, not credit sales.
• C: Sales journal is for credit sales of inventory/goods, not fixed assets.
• D: Sales returns journal tracks returns of goods sold, irrelevant to asset sales.

Final answer: B