Amount received from the sale of furniture for 7000 (Book value 10,000). The amount to be
shown in receipts and payments account will be: (1)Rs10,000 on the receipts side (2) Rs7000 on the receipts side (3) Rs3000 on the payment side
(4)Rs 3000 on the receipts side
This question was previously asked in
Shift 28/05/2023 3:30 PM - 6:30 PM
A
Rs10,000 on the receipts side
B
Rs7000 on the receipts side
C
Rs3000 on the payment side
D
Rs 3000 on the receipts side
Correct Answer
Rs7000 on the receipts side
Detailed Explanation
Receipt and payment account records transactions as per Cash basis of accounting .
The receipts and payments account is a summary of cash transactions during a particular period, including both cash receipts and cash payments. In the case of the sale of furniture, the amount received is Rs 7000, and the book value of the furniture was Rs 10,000.
The sale of furniture would be recorded as follows:
- The cash receipt of Rs 7000 from the sale of furniture will be recorded on the receipts side of the account as it represents cash inflow.
Get Dubuddy App
Practice on the go with our mobile app
More CUET Questions
1
While calculating Goodwill under super profit method, the sequence followed is:
(A) Calculation of Super profit
(B) Calculation of Capital Employed
(C) Calculation of Normal profit
(D) Calculation of Average profit
(E) Calculation of Goodwill
Choose the correct answer from the options given below:
(
2
Common Size Statements are also known as:
(
3
On dissolution of partnership, goodwill account is transferred to :
(
4
Pick the odd one out while Calculating Cash Flow from Financing Activities : (
Test Series
CUET Subjects
Your CUET Journey Starts with DuBuddy
CUET ki Practice Means DuBuddy Pe Practice