Commerce Exam > Commerce Questions > Can you explain the answer of this question b...
Start Learning for Free
Can you explain the answer of this question below:
X is a dealer of electrical goods (such as Refrigerator, Washing Machines, Televisions etc.) He purchased two Air Conditioners and installed in his showroom. In the books of X, the cost of air conditioner would be debited in:
- A:Drawings Account
- B:Capital Account
- C:Fixed asset account
- D:Purchase account
The answer is c.
Most Upvoted Answer
Can you explain the answer of this question below:X is a dealer of ele...
Explanation:
When X purchased two air conditioners and installed them in his showroom, the cost of the air conditioners would be debited in the Fixed Asset Account. Here's why:
1. Fixed Asset Account:
Fixed assets are long-term tangible assets that are used to produce goods or services, and are not intended for sale to customers. Examples of fixed assets include land, buildings, machinery, and equipment. Since the air conditioners purchased by X are not intended for sale to customers, they would be classified as fixed assets.
2. Cost of Air Conditioners:
The cost of the air conditioners includes the purchase price, transportation costs, installation costs, and any other expenses incurred to bring the asset into its present condition and location. As such, the cost of the air conditioners would be debited in the Fixed Asset Account.
3. Purpose of Fixed Asset Account:
The purpose of the Fixed Asset Account is to track the cost of fixed assets over their useful life, and to record any depreciation or impairment of the assets as they are used in the business. By debiting the cost of the air conditioners in the Fixed Asset Account, X can track the value of the air conditioners over time and record any depreciation or impairment as necessary.
In conclusion, the correct answer is option 'C' Fixed Asset Account, as it is the appropriate account to record the cost of the air conditioners as fixed assets.
When X purchased two air conditioners and installed them in his showroom, the cost of the air conditioners would be debited in the Fixed Asset Account. Here's why:
1. Fixed Asset Account:
Fixed assets are long-term tangible assets that are used to produce goods or services, and are not intended for sale to customers. Examples of fixed assets include land, buildings, machinery, and equipment. Since the air conditioners purchased by X are not intended for sale to customers, they would be classified as fixed assets.
2. Cost of Air Conditioners:
The cost of the air conditioners includes the purchase price, transportation costs, installation costs, and any other expenses incurred to bring the asset into its present condition and location. As such, the cost of the air conditioners would be debited in the Fixed Asset Account.
3. Purpose of Fixed Asset Account:
The purpose of the Fixed Asset Account is to track the cost of fixed assets over their useful life, and to record any depreciation or impairment of the assets as they are used in the business. By debiting the cost of the air conditioners in the Fixed Asset Account, X can track the value of the air conditioners over time and record any depreciation or impairment as necessary.
In conclusion, the correct answer is option 'C' Fixed Asset Account, as it is the appropriate account to record the cost of the air conditioners as fixed assets.
Free Test
FREE
| Start Free Test |
Community Answer
Can you explain the answer of this question below:X is a dealer of ele...
The air conditioner is brought and installed so its brought not for the purpose of reselling it but for generating income hence fixed asset account is debited and cash ac is credited as the rule of debit what comes in and credit what goes out
|
Explore Courses for Commerce exam
|
|
Similar Commerce Doubts
Top Courses for CommerceView all
Can you explain the answer of this question below:X is a dealer of electrical goods (such as Refrigerator, Washing Machines, Televisions etc.) He purchased two Air Conditioners and installed in his showroom.In the books of X, the cost of air conditioner would be debited in:A:Drawings AccountB:Capital AccountC:Fixed asset accountD:Purchase accountThe answer is c.
Question Description
Can you explain the answer of this question below:X is a dealer of electrical goods (such as Refrigerator, Washing Machines, Televisions etc.) He purchased two Air Conditioners and installed in his showroom.In the books of X, the cost of air conditioner would be debited in:A:Drawings AccountB:Capital AccountC:Fixed asset accountD:Purchase accountThe answer is c. for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Can you explain the answer of this question below:X is a dealer of electrical goods (such as Refrigerator, Washing Machines, Televisions etc.) He purchased two Air Conditioners and installed in his showroom.In the books of X, the cost of air conditioner would be debited in:A:Drawings AccountB:Capital AccountC:Fixed asset accountD:Purchase accountThe answer is c. covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Can you explain the answer of this question below:X is a dealer of electrical goods (such as Refrigerator, Washing Machines, Televisions etc.) He purchased two Air Conditioners and installed in his showroom.In the books of X, the cost of air conditioner would be debited in:A:Drawings AccountB:Capital AccountC:Fixed asset accountD:Purchase accountThe answer is c..
Can you explain the answer of this question below:X is a dealer of electrical goods (such as Refrigerator, Washing Machines, Televisions etc.) He purchased two Air Conditioners and installed in his showroom.In the books of X, the cost of air conditioner would be debited in:A:Drawings AccountB:Capital AccountC:Fixed asset accountD:Purchase accountThe answer is c. for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Can you explain the answer of this question below:X is a dealer of electrical goods (such as Refrigerator, Washing Machines, Televisions etc.) He purchased two Air Conditioners and installed in his showroom.In the books of X, the cost of air conditioner would be debited in:A:Drawings AccountB:Capital AccountC:Fixed asset accountD:Purchase accountThe answer is c. covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Can you explain the answer of this question below:X is a dealer of electrical goods (such as Refrigerator, Washing Machines, Televisions etc.) He purchased two Air Conditioners and installed in his showroom.In the books of X, the cost of air conditioner would be debited in:A:Drawings AccountB:Capital AccountC:Fixed asset accountD:Purchase accountThe answer is c..
Solutions for Can you explain the answer of this question below:X is a dealer of electrical goods (such as Refrigerator, Washing Machines, Televisions etc.) He purchased two Air Conditioners and installed in his showroom.In the books of X, the cost of air conditioner would be debited in:A:Drawings AccountB:Capital AccountC:Fixed asset accountD:Purchase accountThe answer is c. in English & in Hindi are available as part of our courses for Commerce.
Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of Can you explain the answer of this question below:X is a dealer of electrical goods (such as Refrigerator, Washing Machines, Televisions etc.) He purchased two Air Conditioners and installed in his showroom.In the books of X, the cost of air conditioner would be debited in:A:Drawings AccountB:Capital AccountC:Fixed asset accountD:Purchase accountThe answer is c. defined & explained in the simplest way possible. Besides giving the explanation of
Can you explain the answer of this question below:X is a dealer of electrical goods (such as Refrigerator, Washing Machines, Televisions etc.) He purchased two Air Conditioners and installed in his showroom.In the books of X, the cost of air conditioner would be debited in:A:Drawings AccountB:Capital AccountC:Fixed asset accountD:Purchase accountThe answer is c., a detailed solution for Can you explain the answer of this question below:X is a dealer of electrical goods (such as Refrigerator, Washing Machines, Televisions etc.) He purchased two Air Conditioners and installed in his showroom.In the books of X, the cost of air conditioner would be debited in:A:Drawings AccountB:Capital AccountC:Fixed asset accountD:Purchase accountThe answer is c. has been provided alongside types of Can you explain the answer of this question below:X is a dealer of electrical goods (such as Refrigerator, Washing Machines, Televisions etc.) He purchased two Air Conditioners and installed in his showroom.In the books of X, the cost of air conditioner would be debited in:A:Drawings AccountB:Capital AccountC:Fixed asset accountD:Purchase accountThe answer is c. theory, EduRev gives you an
ample number of questions to practice Can you explain the answer of this question below:X is a dealer of electrical goods (such as Refrigerator, Washing Machines, Televisions etc.) He purchased two Air Conditioners and installed in his showroom.In the books of X, the cost of air conditioner would be debited in:A:Drawings AccountB:Capital AccountC:Fixed asset accountD:Purchase accountThe answer is c. tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup