Money Measurement Concept : Problems and Solutions

No.

Problems & Solutions [Click Hide/Show to display the solutions below the question]

01.

State whether the following events form accounting transactions or not for the business of Mr.K. M (proprietor)

Mr. M started business with capital (brought in cash) Rs. 20,000
Paid salaries to staff Rs. 3,000
Purchased Machinery for Rs. 10,000 in cash
Placed an order with Sen&Co. for goods for Rs. 2,000
Opened a bank account by depositing Rs. 2,000
Received pass book from bank
Appointed Mr. B. Sen as manager on a salary of Rs.1,000 per month
Received interest from bank Rs.300
Received a price list from B

Solution »

Yes. [It can be measured in terms of money. Cash is coming into the basiness.]

Yes. [It can be measured in terms of money. It reduces the cash balance of the business.]

Yes. [It can be measured in terms of money. It reduces the cash balance of the business.]

Yes. [It can be measured in terms of money. It reduces the cash balance of the business.]

Yes. [It can be measured in terms of money. It reduces the cash balance of the business.]

No. [It can not be measured in terms of money.]

No. [It can not be measured in terms of money.]

Yes. [It can be measured in terms of money. It increases the cash balance of the business.]

No. [It can not be measured in terms of money.]

Author Credit : The Edifier

Problems :: Money Measurement Concept

Solution »