Cpt accounting query

If New car then pass entry a)

if old car pass entry b) on wdv amount

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.