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Dismissed the watchman after paying him Rs.200 towards his
salary.?
state whether the the following transcation is business
transcation or non business transcation? with reson or
explaination?
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Answer Posted / manohar
This is a business expense as it incurred in the normal
course of business and it is related to such business.THere
cannot be any other reasoning assuming it is a transaction
of usual nature. however, there could be question on the
treatment of such expenses i.e., as salary or retrenchment
compensation and it will depend on the facts of the case.
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