Question

Observe the given image and state the account where this item will be posted.

विकल्प

• Profit and Loss Account debit side

• Profit and Loss Account credit side

• Trading Account credit side

• Balance Sheet assets side

Answer 1

Balance Sheet assets side

Explanation:

These tractors are plant and machinery, which are fixed, non‑current assets. Their cost is capitalised and shown under Fixed Assets on the Balance Sheet (at cost less depreciation), not charged to Trading or Profit & Loss.