If there is a decrease of Rs. 6,000 in the value of creditors, the journal entry will be
A. Revaluation A/c dr. 6,000 to creditors A/c 6,000
B. Profit and loss A/c dr. 6,000 to creditors A/c 6,000
C. Creditors A/c dr. 6,000 to revaluation A/c 6,000
D. No Entry
Answer: Option C
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Accounting provides information on
A. Cost and income for managers
B. Company's tax liability for a particular year
C. Financial conditions of an institutions
D. All of the above
The long term assets that have no physical existence but are rights that have value is known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Patents, Copyrights and Trademarks are
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
The correct journal entry for a decrease of Rs. 6,000 in the value of creditors would be:
C. Creditors A/c dr. 6,000 to revaluation A/c 6,000
The entry is made to reflect the decrease in the amount owed to creditors. By debiting the Creditors account, we reduce the amount payable to them. Simultaneously, we credit the Revaluation account to record the decrease in the value of creditors.
Therefore, the correct option is C. Creditors A/c dr. 6,000 to revaluation A/c 6,000.