Multiple Choice Questions on Goods Cost price ndash Rs 2000 sales price Rs 3500 distributed as free samples among prospectiv........... for UPSC EPFO Exam Preparation

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Multiple Choice Questions

Goods Cost price ndash Rs 2000 sales price Rs 3500 distributed as free samples among prospectiv...........

General Accounting Principles Accounting cycles
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    Goods ( Cost price  –Rs 2000, sales price- Rs 3500) distributed as free samples among prospective customers were not recorded in the books of account

    free samples a/c dr 2000
             To goods                           2000

    Incorrect Answer

    Advertising exp.a/c dr  2000
             To purchases                    2000

    Correct Answer

    Advertising exp.a/c dr  3500
             To purchases                    3500

    Incorrect Answer

    None of the above

    Incorrect Answer
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    Explanation:
    Goods ( Cost –Rs 2000, sales price- Rs 3500) distributed as free samples is for advertisement purpose it is an expense to the business so advertisement a/c will be  debited and purchse a/c will be credited with cost price
    Advertising exp.a/c dr  2000
             To purchases                    2000

    Let's Discuss

    Richa Goyal

    Isme not pucha tha so answer is depicted wrong here

    0 0 reply
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