Purchase of fixed assets on credit basis is recorded in
-
Solution
Purchase of fixed asset is recorded in journal proper. Purchase of goods (in trade) on credit basis are recorded in purchase book.
The trial balance of M/s Narain Manufacturers shows closing inventory of Rs. 30,000. It will be recorded in
-
Solution
Closing inventory (if given in Trial balance) will appear only in Balance Sheet and not in Trading A/c.
Drawings are deducted from
-
Solution
Drawings are deducted from capital balance of owners.
Sales returns appearing in the trial balance are deducted from
-
Solution
Sales return are reduced from sales to arrive at net sales.
Discounting, endorsement and collection of bills of exchange is made by
-
Solution
Drawer i.e. the payee does discounting, endorsement and collection of bills.
If the incoming partner brings any additional amount in cash other than his capital contribution, then it is termed as
-
Solution
Any additional amount is premium for goodwill.
The party who sends the goods for sale on fixed commission basis is
-
Solution
The party who sends goods is consignor and to whom goods are sent is consignee.
If a reliable estimate of probable outflow of resources to settle a present obligation cannot be made, it is-
-
Solution
If an estimate of probable outflow of resources for settlement of present obligation can be made, it is recognised as contingent liability not provision.
Memorandum joint venture account is prepared
-
Solution
Memorandum joint venture is prepared in case each co-venturer wants to keep records of their own transactions of joint venture
Balance of goods sent on consignment account is transferred to –
-
Solution
Balance of goods sent on consignment A/c is transferred to Trading A/c. all purchases, sales and transfers of goods are recorded in Treading A/c.