Which of the following is a liability?

Motor Vehicles

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Machinery

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Creditors for goods

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Cash at bank

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Solution

The correct option is C
Creditors for goods

Creditors for goods is a liability

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Similar questions

Q. Arrange assets in the order of permanence:
Sundry Debtors, Stock, Investment, Land and Building, Cash in Hand, Motor Vehicle, Cash at Bank, Goodwill, Plant and Machinery, Furniture, Loose Tools, Marketable Securities.

Q. State which of the following would result in inflow/outflow or no flow of Cash and Cash Equivalents:
(a) Sale of Fixed Assets, Book Value ₹ 1,00,000 at a profit of ₹10,000.
(b) Sale of goods against cash.
(c) Purchase of machinery for cash.
(d) Purchase of Land and Building for ₹10,00,000. Consideration paid by issue of debentures.
(e) Issued fully paid Bonus Shares.
(f) Cash withdrawn from bank.
(g) Payment of Interim Dividend.
(h) Proposed Dividend.

Quick ratio of a company is 1 : 1. State giving reasons (for any four), which of the following would improve, reduce or not change the ratio ?

(i) Purchase of machinery for cash.
(ii) Purchase of goods on credit.
(iii) Sale of furniture at cost.
(iv) Sale of goods at a profit.
(v) Redemtption of debentures at a premium.

A company whose accounting year is the calendar year purchased on 1st April, 2009 machinery costing : 30,000. It further purchased machinery on 1st Oct. 2009 costing : 20,000 and on 1st July, 2010 costing : 10,000.On 1st Jan., 2011 one third of the machinery installed, on 1st April, 2009 became obsolete and was sold for : 3,000.

Show how the Machinery Account would appear in the books of company if depreciation is charged @ 10%p.a, on Written down Value Method. Prepare Machinery Account from 2009 to 2012. Show your workings clearly.

From the following Transactions, Prepare cash book with cash and Bank columns:

2013

Feb. 1 Cash in hand : 7,500 cash at Bank : 8,000.

Feb. 3 Discount a bill receivable for : 6,000 at 2% through Bank.

Feb. 5 Bought goods for : 2,000 and paid by cheque.

Feb. 15 Paid Trade expense:120.

Feb. 16 Drew from Bank for office use : 1,000.

Feb. 17 Sold goods for : 12,500 and received a cheque.

Feb. 25 Paid Insurance : 100.

Feb. 27 Cheque received on 17th deposited in Bank.

Feb. 28 Received a cheque from John & co. : 6,000.

Feb. 28 Purchased 100 NSC for : 100 at : 95 each and paid by cheque

Q. Journalise the following transactions in the books of Prakash:

(i) Opened a current account with Punjab National Bank ₹ 1,00,000.
(ii) Received a cheque of ₹ 12,900 from Chandradev and allowed discount ₹ 300 to him. The cheque was deposited into Bank on the same day.
(iii) Purchased machinery for ₹ 1,00,000, payment made by cheque. Installation charge of machinery ₹ 6,000 paid in cash.
(iv) Purchased a horse for business for ₹ 20,000.
(v) Sold goods to Gokul at a list price of ₹ 4,000. Trade discount 10% and cash discount 5%. He paid the amount on the same day and availed the cash discount.
(vi) Purchased goods for ₹ 10,000 and paid ₹ 400 for carriage on these goods.
(vii) Additional cash introduced by the proprietor ₹ 40,000.
(viii) Purchased stationery ₹ 800 and postal stamps ₹ 100.
(ix) Withdrawn from bank ₹ 20,000.
(x) Received an order to supply goods of ₹ 40,000 from Manu and received ₹ 10,000 as an advance together with the order.
(xi) Cash ₹ 10,000 and goods worth ₹ 4,000 were stolen.
(xii) Purchased goods from Devendra for ₹ 40,000 and the payment was made by cheque.
(xiii) Sold 1/4th of the above goods at a profit of 25% on cash.

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Which of the following is a liability?

The correct option is C Creditors for goods Creditors for goods is a liability

The correct option is C
Creditors for goods

Creditors for goods is a liability