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On purchase of old furniture, the amount of Rs. 1,000 spent on its repair should be debited to
- a)Repair account;
- b)Furniture account;
- c)Cash account;
- d)Bank account.
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
On purchase of old furniture, the amount of Rs. 1,000 spent on its rep...
Correct answer is B bcoz all expenses paid on second hand furniture debited to furniture account bcoz it is asset...
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On purchase of old furniture, the amount of Rs. 1,000 spent on its rep...
Explanation:
When old furniture is purchased, it may require repairs in order to be usable. The cost of repairs incurred should be debited to the Furniture account. This is because repairs are an expense that is directly related to the furniture, and therefore should be recorded in the same account.
Debiting the Cash account or Bank account would imply that cash or bank was used to purchase the furniture, which is not the case. The purchase of the furniture would have been recorded earlier, and the repair cost is an additional expense that needs to be recorded separately.
Therefore, the correct answer is option 'B' - Furniture account.
When old furniture is purchased, it may require repairs in order to be usable. The cost of repairs incurred should be debited to the Furniture account. This is because repairs are an expense that is directly related to the furniture, and therefore should be recorded in the same account.
Debiting the Cash account or Bank account would imply that cash or bank was used to purchase the furniture, which is not the case. The purchase of the furniture would have been recorded earlier, and the repair cost is an additional expense that needs to be recorded separately.
Therefore, the correct answer is option 'B' - Furniture account.
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On purchase of old furniture, the amount of Rs. 1,000 spent on its repair should be debited toa)Repair account;b)Furniture account;c)Cash account;d)Bank account.Correct answer is option 'B'. Can you explain this answer?
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