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Question
Observe the given image and state the account where this item will be posted.
Options
Profit and Loss Account debit side
Profit and Loss Account credit side
Trading Account credit side
Balance Sheet assets side
MCQ
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Solution
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.
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