(i) Bank overdraft is an Asset of the business concern.
Correct and Rewrite the following statements:
(i) Bank overdraft is an Asset of the business concern.
(ii) Discount allowed is an income for business
(iii) To Goods withdrawn by proprietor A/c
Capital A/c……………Dr
(Being goods withdrawn by the proprietor for personal use)
(iv) Sundry Debtors A/c……………Dr
To Bad debts A/c
(Being Bad debts written off)
(v) Opening stock A/c…………….Dr
Direct expenses A/c…………….Dr
Purchase A/c………………Dr
To Trading A/c
(Being Opening Stock, Direct expenses, and purchase transferred to Trading A/c)
1 Answers
(i) Bank overdraft is a liability of business concern.
(ii) Discount allowed is an expense for the business.
(iii) To Goods withdrawn by proprietor A/c To Capital A/c………….Dr
(Being goods withdrawn by the proprietor for use)
(iv) Bad Debts A/c……………Dr
To Sundry Debtors A/c
(Being Bad debts written off)
(v) Trading A/c……….Dr
To Opening stock A/c
To Direct expenses A/c
To Purchase A/c
(Being opening stock, Direct expenses and purchase transferred to Trading A/c)