Accounting - Study Mode
[#1916] The depreciation of fixed assets is computed on their
Correct Answer
(A) Book value
[#1917] A company wants to redeem 9% 450 debentures of the face value of Rs. 100 per debenture at a premium of 10%. How many shares of the face value of Rs. 10 is to be issued if they are issued at a premium of 10%:
Correct Answer
(B) 4,500 share
[#1918] Capitalization method of valuation is used for the valuation of
Correct Answer
(B) Goodwill only
[#1919] The current account of a partner
Correct Answer
(A) may have a debit or a credit balance
[#1920] Which of the following books should be used to record purchase of furniture on credit?
Correct Answer
(B) Journal proper
Explanation
Solution: Cash Book: This is for recording transactions where cash is immediately received or paid out . Since the furniture was bought on credit (meaning you didn't pay cash right away), this isn't the right place. Purchases Book: This book is specifically for recording credit purchases of goods that your business buys for resale . Furniture is an asset used in the business, not something you sell to customers. Sales Book: This book records credit sales of goods that your business sells to customers. This has nothing to do with buying furniture. Journal Proper: This is the "catch-all" book. It's used for recording transactions that don't fit into any of the specialized journals like the cash book, purchases book, or sales book. Credit purchases of assets like furniture fall into this category. That's why the Journal Proper is the correct answer!