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Categories  >>  Accounting  >>  Accounting AllOther
 
 


 

 
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Question
1.	A firm buys stock for $100 by cheque and intends to 
sell it for $200, so the double entry should be
a)	Debit bank $100 and credit stock $ 100
b)	Credit bank $ 200 and debit stock $ 200
c)	Debit purchases $100 and credit sales $ 200
d)	Debit purchases $ 100 and credit bank $ 100
 Question Submitted By :: Kadire
I also faced this Question!!     Rank Answer Posted By  
 
  Re: 1. A firm buys stock for $100 by cheque and intends to sell it for $200, so the double entry should be a) Debit bank $100 and credit stock $ 100 b) Credit bank $ 200 and debit stock $ 200 c) Debit purchases $100 and credit sales $ 200 d) Debit purchases $ 100 and credit bank $ 100
Answer
# 1
purchases $ 100.....a\c 
                 to  bank $ 100


BECAUSE THEY INTENDS TO SELL, BUT THEY HASN'T SELL YET..
WE CAN WRITE ENTRY WHEN THE TRANSACTION IS MADE..
 
Is This Answer Correct ?    5 Yes 0 No
Baddam.venugopalreddy
 

 
 
 
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