Explanation:
Contingent expenditure under GFR refers to expenditure that is not certain and depends on the occurrence of unforeseen events, such as natural disasters, accidents, or legal claims against the government.
A: A Ledger account is opened for each type of asset, liability, equity, income, and expense. R: The Ledger is the principal book of accounts. Choose the correct option.
A.Both A and R are true and R is the correct explanation of A
B.A is false but R is true
C.Both A and R are true but R is NOT the correct explanation of A
Explanation:
A ledger account is indeed opened for every element of the financial statements to classify and summarize transactions. It is the principal book of accounts. Both are true, but R doesn't explain *why* accounts are opened for each element.
A firm's average profit is ₹1,20,000, normal rate 10%, capital employed ₹8,00,000. Goodwill by capitalisation of average profit method will be: (Capitalised value of average profit less net assets)
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