Ram, a furniture store owner, has purchased some furniture for resale. This furniture shall be shown as

assets

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purchases

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liability

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income

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Solution

The correct option is B purchases
Furniture purchased by Ram is for resale & hence it shall be classified as purchases for the business.

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Similar questions

Ram has purchased a furniture for resale as he has a furniture shop. Where the same shall be shown?

Furniture purchased for Rs 10000 was wrongly entered as Rs 100,000. Which account shall be credited to rectify this mistake?

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