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Sales of office furniture should be credited to
- a)Furniture account
- b)Revenue account
- c)Purchase account
- d)Cash account
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
Sales of office furniture should be credited toa)Furniture accountb)Re...
Sales of office furniture should be credited to the revenue account.
Revenue accounts represent the income earned by a company through its primary business activities, such as selling goods or services. Sales of office furniture generate revenue for the company and should be recorded as a credit in the revenue account.
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Sales of office furniture should be credited toa)Furniture accountb)Re...
Sales of Office Furniture
Sales of office furniture are a common transaction for businesses that deal with office equipment. It is important to understand the correct accounting treatment for such transactions to ensure accurate financial reporting. The correct accounting treatment for sales of office furniture is as follows:
Accounting Treatment
The sales of office furniture should be credited to the Furniture Account. This is because the sales represent a reduction in the value of the furniture asset. The furniture account is a non-current asset account that represents the cost of furniture purchased by the business.
Explanation
When office furniture is sold, the cost of the furniture is removed from the furniture account and is transferred to the sales account. The sales account is a revenue account that represents the income generated by the sale of goods or services. By crediting the furniture account, the business recognizes the reduction in the value of the asset due to the sale.
Conclusion
In conclusion, sales of office furniture should be credited to the Furniture account. This ensures accurate financial reporting and helps the business to track the value of its furniture assets. Accurate accounting treatment of sales transactions is essential for effective financial management and decision-making in a business.
Sales of office furniture are a common transaction for businesses that deal with office equipment. It is important to understand the correct accounting treatment for such transactions to ensure accurate financial reporting. The correct accounting treatment for sales of office furniture is as follows:
Accounting Treatment
The sales of office furniture should be credited to the Furniture Account. This is because the sales represent a reduction in the value of the furniture asset. The furniture account is a non-current asset account that represents the cost of furniture purchased by the business.
Explanation
When office furniture is sold, the cost of the furniture is removed from the furniture account and is transferred to the sales account. The sales account is a revenue account that represents the income generated by the sale of goods or services. By crediting the furniture account, the business recognizes the reduction in the value of the asset due to the sale.
Conclusion
In conclusion, sales of office furniture should be credited to the Furniture account. This ensures accurate financial reporting and helps the business to track the value of its furniture assets. Accurate accounting treatment of sales transactions is essential for effective financial management and decision-making in a business.
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Sales of office furniture should be credited toa)Furniture accountb)Revenue accountc)Purchase accountd)Cash accountCorrect answer is option 'B'. Can you explain this answer?
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Sales of office furniture should be credited toa)Furniture accountb)Revenue accountc)Purchase accountd)Cash accountCorrect answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Sales of office furniture should be credited toa)Furniture accountb)Revenue accountc)Purchase accountd)Cash accountCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Sales of office furniture should be credited toa)Furniture accountb)Revenue accountc)Purchase accountd)Cash accountCorrect answer is option 'B'. Can you explain this answer?.
Sales of office furniture should be credited toa)Furniture accountb)Revenue accountc)Purchase accountd)Cash accountCorrect answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Sales of office furniture should be credited toa)Furniture accountb)Revenue accountc)Purchase accountd)Cash accountCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Sales of office furniture should be credited toa)Furniture accountb)Revenue accountc)Purchase accountd)Cash accountCorrect answer is option 'B'. Can you explain this answer?.
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