Q7. Which of the following is not a business transaction?
(a) Purchased Machinery for Rs. 50,000 (b)Purchased a gift of Rs. 2000 for wife
(c)Paid rent for office Rs. 3500
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Q7. Which of the following is not a business transaction?
(a) Purchased Machinery for Rs. 50,000 (b)Purchased a gift of Rs. 2000 for wife
(c)Paid rent for office Rs. 3500
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Answer:
Answer is B Purchased a gift of 2000 for wife
Answer:
(b)Purchased a gift of Rs. 2000 for wife
Explanation:
A gift purchased for domestic will not be regarded as a business transaction, however if in the question it would have been specified that gift was bought using business' cash, it would have been considered as a drawing.
But since no specific instructions are given here, we would assume that this transaction is just a domestic transaction.