Yash is a student of class XII Commerce and he is good in
studies. His father gifted him a pen on his birthday. The cost of
pen is Rs. 80. After few days Yash sold his pen to his friend
Sumit for Rs. 100. He was very happy to earn profit of Rs. 20.
After completed his studies he has started a pen manufacturing
company in the name of M/S Yash Pvt. Ltd. Due to good image
of his pen, his sales increased day by day and he is earning huge
profits. Then he has decided to give scholarship to weak girls
child of his school.
(a)Can the transaction between Yash and Sumit be termed as
business transaction? And Why? (b) can the transaction made by m/s Yash Pvt ltd be termed as business transaction why..?
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Answer:
(a) the transaction cannot be termed as a business transaction because at that time, yash was not selling pens on regular basis
(b) yes, because now he's is been doing it on a regular basis
it reflects the principal of regularity of business transaction
let me know if this helps ☺️
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