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?

CA Foundation Question

4 Answers
Ayush Chaturvedi answered Jun 03, 2018
The machiney was purchased that's why it is a transaction and it was purchased on closing date of a accounting period so it is a event b'coz on that day we can close our accounts.

Varshini Ramesh answered May 30, 2018
Option c because it is an transaction as we purchased machinery but also an event becz it is purchased on closing date

Mayank Sharma answered May 31, 2018
Transaction means a business, performance of an act, an agreement while event signifies a happening, as a consequence of transaction, a result. Thus, purchase of Machinery on 31st Dec, 2005 i.e. last day of accounting year will be a transaction as well as event.

Mahadev Chavadihindala answered Jul 24, 2018
It is a transaction by purchasing and it is event for end result.

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