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Solution
The areas where in different accounting policies can be adopted are
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Solution
For depreciation, valuation of inventories and investments, different accounting polices can be adopted.
If the demand for a good is inelastic, an increase in its price will cause the total expenditure of the consumers of the good to:
An amount of Rs. 6,000 due from Anshul, which had been written off as a bad debt in a previous year, was unexpectedly recovered, and had been posted to the personal account of
Anshul. The rectification entry will be
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Solution
A debt from accounts receivable that is recovered either in whole or in part after it has been written off
or classified as a bad debt is known as bad debt recovery . Because it generally generates a loss when
it is written off, a bad debt recovery usually produces income.
In accounting, the bad debt recovery would credit the “bad debts recovered” account and the net amount
of the account is transferred to profit and loss account.So the bad debt recovered from Anshul will not
effect the account of Anshul and the rectification entry to be passed will be:
Anshul’s A/c Dr. Rs. 6,000
To Bad debts recovered A/c Rs. 6,000.
If the price of Pepsi decreases relative to the price of Coke and Thumbs-Up, the demand for:
All of the following are characteristics of a monopoly except
Rs. 5,000 incurred for upgradation of computer by installation of 128 MB RAM is
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Solution
Updation of computer is capital in nature.
Quasi-contract rest upon the maxim:
Delivery of goods in case of transit made by handing over documents of title to goods is
Legal expenses incurred in defending a suit for breach of contract to supply goods is a
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Solution
Legal expenses for a suit for breech of contract of goods is revenue expenditure