Mr. X has a shop in which he sells watches. He borrowed a sum of Rs 50,000 from his friend Mr. Y & has gifted a watch to another friend. Will this sum of Rs 50,000 be regarded as a revenue of his business?

Yes, it is revenue

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

No, it is not revenue

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

Not sure

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

None of the above

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

Open in App

Solution

The correct option is B
No, it is not revenue

Taking a loan is a different transaction & gifting a watch is a separate activity. Both of these are not connected. Rs 50,000 has been borrowed & he has not got them in lieu of watch. Hence it is not considered the revenue of the business.

Suggest Corrections

Similar questions

Mr. Ram has a business of selling shoes. He bought goods worth Rs 50,000 on credit from Mr. Ajay. Also, he borrowed a sum of Rs 1,00,000 from his friend Mr.Shyam. What would be the amount of creditors which wil be recorded in his books?

Last year Ram had borrowed a sum of Rs 20,000 from his friend Mr. Ravi which is still not paid by Ram. Now, Ram has purchased goods from Ravi worth Rs 10,000 for which he has promised to pay him next week. What will be the value of debtors in the books of Ravi, if there are debtors of Rs 50,000 already in the books?

Ram, a fruit seller, sold oranges and received Rs 100. He borrowed Rs 100 from his friend Shyam. Classify them as revenue and liability.

Mr. X is a cloth merchant. His friend gifted him a shirt on his birthday. He is of the view that it is to be added to the value of stock of his shop. Is he correct ?

Mr. Raj, an electronic goods dealer, gifted a microwave of value Rs.30,000 to his friend Rohan and recorded it in books as drawings. Is he correct?

Join BYJU'S Learning Program

Mr. X has a shop in which he sells watches. He borrowed a sum of Rs 50,000 from his friend Mr. Y & has gifted a watch to another friend. Will this sum of Rs 50,000 be regarded as a revenue of his business?

The correct option is B No, it is not revenue Taking a loan is a different transaction & gifting a watch is a separate activity. Both of these are not connected. Rs 50,000 has been borrowed & he has not got them in lieu of watch. Hence it is not considered the revenue of the business.

The correct option is B
No, it is not revenue

Taking a loan is a different transaction & gifting a watch is a separate activity. Both of these are not connected. Rs 50,000 has been borrowed & he has not got them in lieu of watch. Hence it is not considered the revenue of the business.