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An asset was purchased for Rs. 6,60,000. Cash was paid Rs. 1,20,000 and for the balance a bill was drawn for 60 days. What will be the effect on fixed assets?
- a)Rs. 1,20,000
- b)Rs. 5,40,000
- c)Rs. 6,60,000
- d)Nil
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
An asset was purchased for Rs. 6,60,000. Cash was paid Rs. 1,20,000 an...
The effect on fixed assets when an asset is purchased for Rs. 6,60,000, with Rs. 1,20,000 paid in cash and the balance covered by a bill drawn for 60 days, would be: C: Rs. 6,60,000
Fixed assets should be recorded at the total purchase price, regardless of the payment method used. In this case, the entire cost of the asset, Rs. 6,60,000, should be recorded as an increase in fixed assets. The fact that part of the payment was deferred by drawing a bill does not affect the recorded value of the fixed asset.
Fixed assets should be recorded at the total purchase price, regardless of the payment method used. In this case, the entire cost of the asset, Rs. 6,60,000, should be recorded as an increase in fixed assets. The fact that part of the payment was deferred by drawing a bill does not affect the recorded value of the fixed asset.
Most Upvoted Answer
An asset was purchased for Rs. 6,60,000. Cash was paid Rs. 1,20,000 an...
The effect on fixed assets is nil because the asset has been purchased for the full amount of Rs. 6,60,000, regardless of how the payment was made.
Explanation:
• The asset was purchased for Rs. 6,60,000.
• Cash payment was made of Rs. 1,20,000.
• The balance was paid through a bill drawn for 60 days.
• However, the mode of payment does not affect the value of the asset.
• The value of the asset remains the same at Rs. 6,60,000.
• Therefore, the effect on fixed assets is nil.
Explanation:
• The asset was purchased for Rs. 6,60,000.
• Cash payment was made of Rs. 1,20,000.
• The balance was paid through a bill drawn for 60 days.
• However, the mode of payment does not affect the value of the asset.
• The value of the asset remains the same at Rs. 6,60,000.
• Therefore, the effect on fixed assets is nil.
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An asset was purchased for Rs. 6,60,000. Cash was paid Rs. 1,20,000 an...
See whatever amount you have been paid or paid not for an asset that doesn't make any kind of change in the value of that asset hence, it remains of 660000
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An asset was purchased for Rs. 6,60,000. Cash was paid Rs. 1,20,000 and for the balance a bill was drawn for 60 days. What will be the effect on fixed assets?a)Rs. 1,20,000b)Rs. 5,40,000c)Rs. 6,60,000d)NilCorrect answer is option 'C'. Can you explain this answer?
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An asset was purchased for Rs. 6,60,000. Cash was paid Rs. 1,20,000 and for the balance a bill was drawn for 60 days. What will be the effect on fixed assets?a)Rs. 1,20,000b)Rs. 5,40,000c)Rs. 6,60,000d)NilCorrect answer is option 'C'. 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 An asset was purchased for Rs. 6,60,000. Cash was paid Rs. 1,20,000 and for the balance a bill was drawn for 60 days. What will be the effect on fixed assets?a)Rs. 1,20,000b)Rs. 5,40,000c)Rs. 6,60,000d)NilCorrect answer is option 'C'. 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 An asset was purchased for Rs. 6,60,000. Cash was paid Rs. 1,20,000 and for the balance a bill was drawn for 60 days. What will be the effect on fixed assets?a)Rs. 1,20,000b)Rs. 5,40,000c)Rs. 6,60,000d)NilCorrect answer is option 'C'. Can you explain this answer?.
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