On 31st December, 2005, Ashok Ltd. purchased a machine from Mohan Ltd. for Rs. 1,75,000. This is : (year end : 31st December)

a)
A transaction

b)
An event

c)
Both transaction as well as event

d)
None of these

Correct answer is option 'C'. Can you explain this answer?

Question

On 31st December, 2005, Ashok Ltd. purchased a machine from Mohan Ltd. for Rs. 1,75,000. This is : (year end : 31st December)

a)
A transaction
b)
An event
c)
Both transaction as well as event
d)
None of these

Correct answer is option 'C'. Can you explain this answer?

Answer

The purchase of a machine by Ashok Ltd. from Mohan Ltd. for Rs. 1,75,000 on 31st December, 2005, is both a transaction as well as an event.

A transaction is an exchange of goods or services for something of value. In this case, Ashok Ltd. exchanged Rs. 1,75,000 for a machine from Mohan Ltd., which qualifies as a transaction.

An event, on the other hand, is a happening or occurrence that has significance or consequences. The purchase of a machine by Ashok Ltd. from Mohan Ltd. on 31st December, 2005, can be considered an event as it is a significant happening that has financial implications for both companies.

Therefore, the purchase of the machine is both a transaction and an event.

Answer

Explanation:
The answer to this question is option C, which means that the purchase of the machine is both a transaction as well as an event. Let's understand why.

Transaction:
A transaction is an economic activity that involves the exchange of goods or services for money or other goods or services. In this case, Ashok Ltd. purchased a machine from Mohan Ltd. for Rs. 1,75,000. This involves the exchange of money for a machine, which makes it a transaction.

Event:
An event is a happening or occurrence that affects the financial position of a business and can be measured in monetary terms. In this case, the purchase of the machine by Ashok Ltd. from Mohan Ltd. is an event because it affects the financial position of Ashok Ltd. The company's assets increase by the value of the machine, and its liabilities decrease by the amount of money paid to Mohan Ltd.

Conclusion:
Therefore, the purchase of the machine by Ashok Ltd. from Mohan Ltd. is both a transaction and an event because it involves the exchange of money for a machine, which is a transaction, and it affects the financial position of Ashok Ltd., which is an event.

Answer

Ans is c bcoz it is on last date i.e. 31st March so there will be closing stock also therefore it is both event as well as transaction

Answer

Option C is right because transaction means a value of assets that can measure and its event because it's purchased on the last day of the accounting year.

Answer

It is tranction as well as event because it is purchase on 31 dec

Answer

Ashok purchases from mohan is a transaction and event because last date is specified and 'purchase' this word is define materialty so Purchase is record this is transaction and ashok & mohan doing something trade this is a event so ans is that 'transaction and event'

Answer

C

Answer

Answer is C, because 31st December is year end and last date for year this is a last transaction and last event for this year.

Answer

Option c

Answer

Thanks qq sweet sis

Answer

Purchasing machine at 1.75 lacs is transaction where as this is closure balance of 31st december so it is event as well.

Similar CA Foundation Doubts

On 31st December, 2005, Ashok Ltd. purchased a machine from Mohan Ltd. for Rs. 1,75,000. This is : (year end : 31st December)

Q. 2 On March 31, 2015 after sale of goods worth Rs.50,000, he is left with the closing inventory of Rs.20,000. This is: A. An event B. A transaction C. A transaction as well as an event D. Neither a transaction nor an event?

At the time of valuing stock on 31.3.2019 a sum of Rs. 50,000 was written off a particular item which was originally purchased for Rs.1,80,000 and was sold for Rs.1,00,000. But for the above transaction the gross profit earned during the year was 25% on cost?

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