Question
A company purchases machinery for ₹10 lakhs and incurs
₹1 lakh on its installation. The accountant records the total ₹11 lakhs under the fixed asset head. However, a junior accountant argues that the installation should be treated as a revenue expense. Considering the nature of the transaction and accounting principles, how should this cost be classified?Solution
Installation cost is necessary to bring the asset to its working condition. Hence, it's capitalised along with the cost of the asset.
In the question below there are three statements followed by three conclusions I, and II. You have to take the three given statements to be true even i...
Statements: Some cow are bull.
All bull are sheep.
Conclusions: I. All bull are cow.
...
Statements:
Only a few Papers are Pencil.
No Pencil is Stapler.
All Staplers are Book.
Conclusions:
I) Some Book are not Pencil.
II) No Pencil is Book.
Three Statements are given followed by four conclusions numbered 1, 2, 3,and 4. Assuming the statements to be true, even if they seem to be at variance...
Statements:
Only a few Apple is Banana.
No Banana is Grapes.
Only a few Grapes is Mango.
All Mango is Papaya.
Conc...
Statements: Some laptop are tablet.
Some tablet are computer.
Conclusions: I. All...
Statements : All dens are cattle.
Some cattle are cows.
No cow is a horse.
Conclusions:I. All dens are not horses.
II. So...
In the following questions below are given some statements followed by some conclusions based on those statements. Taking the given statements to be tr...
Statements-:
Some A are B
No B are C
All C are D
Conclusions :-
I. Some A are not B.
II. No A are C.
...In each group of questions below are two conclusions followed by five set of statements. You have to choose the correct set of statements that logicall...
