Theory Base of Accountacy

Capital contributed by the proprietor is credited to his Capital Account

(a)  

Goods sold on credit to Ramesh-Ramesh's A/c is debited and Sales A/c is credited

(a)  

Mohan has entered into an agreement whereby he will earn Rs. 10 lakhs for the services to be provided in the next year. The income should be recognized as revenue in the next year after services have been provided

(a)  

The calibre or quality of the management team is not disclosed in the Balance Sheet

(a)  

Assets are recorded in the books at the cost incurred for acquisition of such assets

(a)  

A business for which Financial Statements are prepared is separate and distinct from the owner of the entity

(a)  

The assumption is made that the entity in question will remain in business for an indefinite period of time

(a)  

Purchase of pen is treated as an expense

(a)  

Closing Stock is valued at lower of cost or market value

(a)  

Financial Statements of the firm are prepared every year on 31st March

(a)