CA Foundation Exam > CA Foundation Questions > If Purchases Account is not credited in case ...
Start Learning for Free
If Purchases Account is not credited in case of goods lost in transit then which account can be credited?
- a)Goods Lost in Transit Account
- b)Purchase Return Account
- c)Trading Account
- d)Sales Account
Correct answer is option 'C'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
If Purchases Account is not credited in case of goods lost in transit ...
Explanation:
When goods are lost in transit, it means that the company has not received the goods that were purchased. In this case, the Purchases Account should not be credited because no purchase has been made. Instead, the Trading Account should be credited.
The Trading Account is a nominal account that represents the gross profit or loss made by the company in a particular period. It is credited when there is a decrease in the cost of goods sold, as in the case of goods lost in transit.
The Goods Lost in Transit Account is a special account that is used to record the losses incurred due to goods lost in transit. This account is debited when goods are lost in transit and credited when an insurance claim is settled.
The Purchase Return Account is used to record the returns made by the company to its suppliers. This account is credited when goods are returned to the supplier.
The Sales Account is used to record the sales made by the company. This account is credited when goods are sold.
Conclusion:
In conclusion, when goods are lost in transit, the Purchases Account should not be credited. Instead, the Trading Account should be credited as it represents the gross profit or loss made by the company in a particular period. The Goods Lost in Transit Account is used to record the losses incurred due to goods lost in transit, while the Purchase Return Account is used to record the returns made by the company to its suppliers. The Sales Account is used to record the sales made by the company.
When goods are lost in transit, it means that the company has not received the goods that were purchased. In this case, the Purchases Account should not be credited because no purchase has been made. Instead, the Trading Account should be credited.
The Trading Account is a nominal account that represents the gross profit or loss made by the company in a particular period. It is credited when there is a decrease in the cost of goods sold, as in the case of goods lost in transit.
The Goods Lost in Transit Account is a special account that is used to record the losses incurred due to goods lost in transit. This account is debited when goods are lost in transit and credited when an insurance claim is settled.
The Purchase Return Account is used to record the returns made by the company to its suppliers. This account is credited when goods are returned to the supplier.
The Sales Account is used to record the sales made by the company. This account is credited when goods are sold.
Conclusion:
In conclusion, when goods are lost in transit, the Purchases Account should not be credited. Instead, the Trading Account should be credited as it represents the gross profit or loss made by the company in a particular period. The Goods Lost in Transit Account is used to record the losses incurred due to goods lost in transit, while the Purchase Return Account is used to record the returns made by the company to its suppliers. The Sales Account is used to record the sales made by the company.
Free Test
FREE
| Start Free Test |
Community Answer
If Purchases Account is not credited in case of goods lost in transit ...
C
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
If Purchases Account is not credited in case of goods lost in transit then which account can be credited?a)Goods Lost in Transit Accountb)Purchase Return Accountc)Trading Accountd)Sales AccountCorrect answer is option 'C'. Can you explain this answer?
Question Description
If Purchases Account is not credited in case of goods lost in transit then which account can be credited?a)Goods Lost in Transit Accountb)Purchase Return Accountc)Trading Accountd)Sales AccountCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about If Purchases Account is not credited in case of goods lost in transit then which account can be credited?a)Goods Lost in Transit Accountb)Purchase Return Accountc)Trading Accountd)Sales AccountCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If Purchases Account is not credited in case of goods lost in transit then which account can be credited?a)Goods Lost in Transit Accountb)Purchase Return Accountc)Trading Accountd)Sales AccountCorrect answer is option 'C'. Can you explain this answer?.
If Purchases Account is not credited in case of goods lost in transit then which account can be credited?a)Goods Lost in Transit Accountb)Purchase Return Accountc)Trading Accountd)Sales AccountCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about If Purchases Account is not credited in case of goods lost in transit then which account can be credited?a)Goods Lost in Transit Accountb)Purchase Return Accountc)Trading Accountd)Sales AccountCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If Purchases Account is not credited in case of goods lost in transit then which account can be credited?a)Goods Lost in Transit Accountb)Purchase Return Accountc)Trading Accountd)Sales AccountCorrect answer is option 'C'. Can you explain this answer?.
Solutions for If Purchases Account is not credited in case of goods lost in transit then which account can be credited?a)Goods Lost in Transit Accountb)Purchase Return Accountc)Trading Accountd)Sales AccountCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of If Purchases Account is not credited in case of goods lost in transit then which account can be credited?a)Goods Lost in Transit Accountb)Purchase Return Accountc)Trading Accountd)Sales AccountCorrect answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
If Purchases Account is not credited in case of goods lost in transit then which account can be credited?a)Goods Lost in Transit Accountb)Purchase Return Accountc)Trading Accountd)Sales AccountCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for If Purchases Account is not credited in case of goods lost in transit then which account can be credited?a)Goods Lost in Transit Accountb)Purchase Return Accountc)Trading Accountd)Sales AccountCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of If Purchases Account is not credited in case of goods lost in transit then which account can be credited?a)Goods Lost in Transit Accountb)Purchase Return Accountc)Trading Accountd)Sales AccountCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice If Purchases Account is not credited in case of goods lost in transit then which account can be credited?a)Goods Lost in Transit Accountb)Purchase Return Accountc)Trading Accountd)Sales AccountCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
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