Goods withdrawn by the owner for personal use should be credited to: MCQ with Answer and Explanation

Goods withdrawn by the owner for personal use should be credited to:
A. Drawings Account
B. Sales Account
C. Capital Account
D. Purchases Account
Answer: Option D
Solution (By JKSSB Mock Tests)
When goods are withdrawn for personal use, the Purchases Account is credited to reduce the cost of goods available for sale, and Drawings is debited.

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Practice More Accountancy and Book Keeping Questions

Question #1
Under the Income Tax Act, the 'TDS' on payment of rent for land, building, or furniture exceeding ₹2,40,000 per annum is governed by which section, and what is the rate?
A. Section 194J at 10%
B. Section 194C at 2%
C. Section 194I at 2%
D. Section 194I at 10%

Correct Answer: Option D


Explanation:
Section 194I(b) mandates TDS at 10% on rent paid for the use of land, building, or furniture, provided the rent exceeds ₹2,40,000 in a financial year.

Question #2
Under the Income Tax Act, the 'TDS' on the sale of an immovable property (other than agricultural land) by a resident is governed by which section, and what is the rate?
A. Section 194IA at 1%
B. Section 194C at 1%
C. Section 194J at 10%
D. Section 194IA at 10%

Correct Answer: Option A


Explanation:
Section 194IA mandates TDS at 1% on the transfer of immovable property (other than agricultural land) if the consideration exceeds ₹50,00,000.

Question #3
Under 'Finance Lease', the lessee records the leased asset in his books as per:
A. AS 6
B. AS 10
C. AS 19
D. AS 2

Correct Answer: Option C


Explanation:
AS 19 Leases requires lessee to capitalize finance lease.