Manoharlal is a business man of Bhilai. Which one of the following will not be recorded in his book: a. Purchase of goods c. Sale of personal car b. Purchase of furniture d. Sale of goods
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Answer:
- Sale of personal car
Explanation:
We record only those transactions in the books of accounts which are related to business and can be measured in terms of money.
Purchase of goods, sale of goods and purchase of furniture are offcourse related to business. Therefore, we record all these transactions in the books of account.
But the sale of personal car is not related to business.
Business and owner of business are two separate identities. Owner is treated as a distinct element from his business. Therefore, we won't record the sale of personal car in the books of Manoharlal.
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