An order placed for the goods, entry is recorded in the books of accounts.

True

No worries! We‘ve got your back. Try BYJU‘S free classes today!

False

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is B False
Placing an order is just an obligation to have delivery of desired goods.

Accounting entry will be passed only when the title of the goods is transferred to the buyer.

Therefore, no accounting entry will be passed in case of only order.

Suggest Corrections

Similar questions

State whether the following statements are True or False.

1) Prepaid insurance is nominal account.
2) Personal transactions of proprietor are recorded in the books of account of business.
3) Every debit has equal and corresponding credit.
4) Loan account is personal account.
5) Drawing account is a real account.
6) Commission received is a nominal account.
7) Outstanding wages is a nominal account.
8) Bank of India is an example of real account.
9) An order placed for the goods, entry is passed/recorded in the book of account.
10 Every transaction has only on effect

Q. Drawings of goods costing 300 were not recorded in the books of account. If this error located after preparation of trial then which of the following rectification entry is correct?

Goods taken for personal use are recorded at what value in books of accounts and why?

Give journal entries to rectify the following errors assuming that suspense account had been opened.

(a)	Goods distributed as free sample Rs 5,000 were not recorded in the books.
(b)	Goods withdrawn for personal use by the proprietor Rs 2,000 were not recorded in the books.
(c)	Bill receivable received from a debtor Rs 6,000 was not posted to his account.
(d)	Total of Returns inwards book Rs 1,200 was posted to Returns outwards account.
(e)	Discount allowed to Reema Rs 700 on receiving cash from her was recorded in the books as Rs 70.

Give journal entries to rectify the following errors assuming that suspense account had been opened.
(i) Goods distributed as free sample Rs. 5,000 were not recorded in the books.
(ii) Goods withdrawn for personal use by the proprietor Rs. 2,000 were not recorded in the books.
(iii) Bills receivable received from a debtor Rs. 6,000 was not posted to his account.
(iv) Total of return inwards book Rs. 1,200 was posted to return outwards account.
(v) Discount allowed to Reema Rs. 700 on receiving cash from her was recorded in the books as Rs. 70.

Join BYJU'S Learning Program

An order placed for the goods, entry is recorded in the books of accounts.

The correct option is B FalsePlacing an order is just an obligation to have delivery of desired goods.Accounting entry will be passed only when the title of the goods is transferred to the buyer. Therefore, no accounting entry will be passed in case of only order.

The correct option is B False
Placing an order is just an obligation to have delivery of desired goods.

Accounting entry will be passed only when the title of the goods is transferred to the buyer.

Therefore, no accounting entry will be passed in case of only order.