Question

Rahul, the proprietor of M/S R.K and Co. purchased an air-conditioner and installed it at his residence.The payment was made by issuing a cheque from the account of the firm. The Accountant debited the drawings account with the amount whereas Rahul is of the view that it should be debited to the Fixed Assets Account. In your view, who is correct and why?

Answer 1

Explanation:

Rahul the proprietor of M/s. R.K. & Co purchased an air-conditioner and installed it at his residence.