Aarthi (Student) (25 Points)
18 November 2015The owner of a business gifted a car to his son in law on the occasion of his daughter's marriage. Which one of the following is the right entry.
(a) Drawings A/c Dr. To Cash A/c.
(b) Drawing A/c Dr. To Car A/c.
Please share the right answer for the above question. It is a CA CPT mock Test question.
sandip
(JOB)
(23 Points)
Replied 27 November 2015
If New car then pass entry a)
if old car pass entry b) on wdv amount
Aarthi
(Student)
(25 Points)
Replied 27 November 2015
Hi Sandip.
The question doesn't specify whether it is a new car or old car. There are two contradicting question given in 2 different CPT mock test papers.
Q1.
The owner of a business gifted a car to his son-in-law on the occasion of his daughter’s marriage. The following entry was passed in this regard.
Car A/c Dr. 5,00,000
To Cash A/c 5,00,000
What is the rectification entry ?
(A) Drawings A/c Dr. 5,00,000
To Cash A/c 5,00,000
(B) Drawings A/c Dr. 5,00,000
To Car A/c 5,00,000
(C) Car A/c Dr. 5,00,000
To Drawings A/c 5,00,000
(D) Cash A/c Dr. 5,00,000
To Car A/c 5,00,000
Q2. The owner of a business gifted a car to his son in law on the occasion of his daughter's marriage. Which one of the following is the right entry.
(a) Drawings A/c Dr. To Cash A/c.
(b) Drawing A/c Dr. To Car A/c.
The correct answer given for Q1 is option b
and answer to Q2 is option b as well.
CAclubindia
