In case of consignment, abnormal loss is valued at
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Solution
Abnormal loss is valued at cost price in case of consignments.
If the date of maturity of a bill is a unforeseen holiday, then bill will mature on
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Solution
Bill will mature on the next working day if maturity date is unforesean holiday
Journal proper records
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Solution
Purchase of an asset on credit basis is recorded in Journal Proper. Credit purchases are recorded in purchases book.
In a sole trade, income tax is recorded as
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Solution
Income tax of proprietor is recorded as his personal expense i.e. drawings.
Salary and wages is debited to
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Solution
Salaries and wages is debited to P&L A/c. Wages and salaries is debited to Trading A/c.
A bill has been drawn on August 10, 2009 payable after 3 months. The maturity date of the bill will be
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Solution
Maturity date will be 3 months and 3 days after August 10, 2009 i.e. November 13, 2009.
Double column cash book records
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Solution
Cash and bank transactions are recorded in double column cash book.
All of the following have debit balance except
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Solution
6% debentures is a liability and has credit balance. All others have debit balances.
Commission received in advance is a
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Solution
Commission received in advance (belonging to some person) is a personal account.
Rs. 1,500 spent on repairs before using a second hand car purchased recently is a
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Solution
The amount spent on second hand car purchased recently is capital expenditure.