Current assets does not include:
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Solution
Furniture and fittings is fixed asset not current.
On April 1, 2010, a bill was drawn for two months. The maturity date of payment will fall on:
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Solution
Maturity date is three days after 2 months i.e. June 4.
Petty expenses paid in cash are recorded in:
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Solution
Petty cash book is meant for petty expenses paid in cash.
Compensation paid to retrenched employee is:
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Solution
Compensation paid to retrenched employee is revenue in nature.
Goods were sold on credit basis to XY Bros. for Rs. 1,000. This will be recorded in
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Solution
Goods sold on credit basis will be recorded in sales book.
Rent payable to the landlord Rs. 5,000.00 is credited to
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Solution
Rent payable (liability) will be credited to outstanding rent a/c.
The determination of expenses for an accounting period is based on the principle of:
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Solution
Determination of expenses for accounting period is based on matching concept
Financial position of the business is ascertained on the basis of :
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Solution
Balance sheet inform the picture of assets and liabilities i.e. financial position.
Loss leads to reduction in:
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Solution
Capital reduces due to loss.