1. Categories >> Accounting >> Accounting AllOther
  2. Suggest New Category

1. A firm buys stock for $100 by cheque and intends to
sell it for $200, so the double entry should be
a) Debit bank $100 and credit stock $ 100
b) Credit bank $ 200 and debit stock $ 200
c) Debit purchases $100 and credit sales $ 200
d) Debit purchases $ 100 and credit bank $ 100

Question Posted / kadire

Answers were Sorted based on User's Feedback



1. A firm buys stock for $100 by cheque and intends to sell it for $200, so the double entry shoul..

Answer / baddam.venugopalreddy

purchases $ 100.....a\c
to bank $ 100


BECAUSE THEY INTENDS TO SELL, BUT THEY HASN'T SELL YET..
WE CAN WRITE ENTRY WHEN THE TRANSACTION IS MADE..

Is This Answer Correct ?    28 Yes 1 No

1. A firm buys stock for $100 by cheque and intends to sell it for $200, so the double entry shoul..

Answer / mayur

c) Debit purchases $100 and credit sales $ 200

Is This Answer Correct ?    7 Yes 5 No

1. A firm buys stock for $100 by cheque and intends to sell it for $200, so the double entry shoul..

Answer / nkoonka

We only record when a transaction has taken place. So its just the purchases have taken but sales is just an intention.
The answer is...(d).

Is This Answer Correct ?    0 Yes 0 No

Post New Answer

More Accounting AllOther Interview Questions

differences between liabilities and assessts

1 Answers   ABC, Prolect,

what is the basic difference between accounting and financing?

12 Answers   Bajaj, Mafoi,

What is Budgeted capital ?

0 Answers  

EXPAND______________ONGC

2 Answers  

What are the Goddwill calculation Methods?

4 Answers   Capital IQ,




While Scrutinizing the Trial Balance which error will catch you eye immediately...

8 Answers   Amtex,

A company maintains a margin of safety of 25% on its current sales and earns a profit of Rs. 30 lakhs per annum. If the company has a profit volume (P/V) ratio of 40%, its current sales amount to A. Rs. 200 lakhs; B. Rs. 300 lakhs; C. Rs. 325 lakhs; D. None of the above.

1 Answers  

What is general ledger?

4 Answers   GMC,

If you keep an amount for the office interior designing purpose what is the entry?

5 Answers   bscpl, L&T,

what is different between LC's and BG's

1 Answers   IVRCL,

what perposs calculate the fixed assets

5 Answers   Capital IQ,

What do you think you do well?

10 Answers   AVV, Bank Of America,

For more Accounting AllOther Interview Questions Click Here
Categories