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Commerce · Q1248

Accounting

Graduate and Post Graduate · Commerce · question 1248

Q1248

When goods distributed as free samples and charity purpose, one of the following journal entry mentioned below is correct.

A.
Closing stock account Dr - To Purchase account
B.
Advertisement account Dr - To purchase account
Answer
C.
Profit & loss account Dr - To advertisement account
D.
Sales account Dr - To advertisement account
E.
Prepaid advertisement account Dr - To advertisement account

Answer: Option B

Solution

Answer: Option B
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