{"id":57446,"date":"2024-04-16T01:02:09","date_gmt":"2024-04-16T01:02:09","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=57446"},"modified":"2024-04-16T01:02:09","modified_gmt":"2024-04-16T01:02:09","slug":"it-is-given-in-adjustment-that-during-the-accounting-year-the-trader-distributed-goods-worth-rs-5000-as-free-samples-while-preparing-final-accounts-this-will-be-shown-in","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/it-is-given-in-adjustment-that-during-the-accounting-year-the-trader-distributed-goods-worth-rs-5000-as-free-samples-while-preparing-final-accounts-this-will-be-shown-in\/","title":{"rendered":"It is given in adjustment that during the accounting year, the trader distributed goods worth Rs. 5,000 as free samples. While preparing Final Accounts, this will be shown in"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Profit and Loss Account&#8221; option2=&#8221;Both in Trading and Profit and Loss Account&#8221; option3=&#8221;Trading Account&#8221; option4=&#8221;Balance Sheet&#8221; correct=&#8221;option1&#8243;]<!--more--><\/p>\n<p>The correct answer is A. Profit and Loss Account.<\/p>\n<p>Free samples are a form of advertising expense, which is a revenue expenditure. Revenue expenditure is an expense that is incurred in the current period in order to generate revenue in the current period. It is not an asset, and it is not carried forward to future periods.<\/p>\n<p>The cost of free samples is therefore deducted from the revenue of the period in which they are given away. This is done in the Profit and Loss Account, which is a statement of revenue and expenses for a specific period of time.<\/p>\n<p>The other options are incorrect because:<\/p>\n<ul>\n<li>Option B is incorrect because free samples are not an asset, and they are not carried forward to future periods.<\/li>\n<li>Option C is incorrect because free samples are not part of the cost of goods sold.<\/li>\n<li>Option D is incorrect because free samples are not a liability.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Profit and Loss Account&#8221; option2=&#8221;Both in Trading and Profit and Loss Account&#8221; option3=&#8221;Trading Account&#8221; option4=&#8221;Balance Sheet&#8221; correct=&#8221;option1&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-57446","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>It is given in adjustment that during the accounting year, the trader distributed goods worth Rs. 5,000 as free samples. While preparing Final Accounts, this will be shown in<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/it-is-given-in-adjustment-that-during-the-accounting-year-the-trader-distributed-goods-worth-rs-5000-as-free-samples-while-preparing-final-accounts-this-will-be-shown-in\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"It is given in adjustment that during the accounting year, the trader distributed goods worth Rs. 5,000 as free samples. While preparing Final Accounts, this will be shown in\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Profit and Loss Account&#8221; option2=&#8221;Both in Trading and Profit and Loss Account&#8221; option3=&#8221;Trading Account&#8221; option4=&#8221;Balance Sheet&#8221; correct=&#8221;option1&#8243;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/it-is-given-in-adjustment-that-during-the-accounting-year-the-trader-distributed-goods-worth-rs-5000-as-free-samples-while-preparing-final-accounts-this-will-be-shown-in\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-16T01:02:09+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"It is given in adjustment that during the accounting year, the trader distributed goods worth Rs. 5,000 as free samples. While preparing Final Accounts, this will be shown in","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/it-is-given-in-adjustment-that-during-the-accounting-year-the-trader-distributed-goods-worth-rs-5000-as-free-samples-while-preparing-final-accounts-this-will-be-shown-in\/","og_locale":"en_US","og_type":"article","og_title":"It is given in adjustment that during the accounting year, the trader distributed goods worth Rs. 5,000 as free samples. While preparing Final Accounts, this will be shown in","og_description":"[amp_mcq option1=&#8221;Profit and Loss Account&#8221; option2=&#8221;Both in Trading and Profit and Loss Account&#8221; option3=&#8221;Trading Account&#8221; option4=&#8221;Balance Sheet&#8221; correct=&#8221;option1&#8243;]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/it-is-given-in-adjustment-that-during-the-accounting-year-the-trader-distributed-goods-worth-rs-5000-as-free-samples-while-preparing-final-accounts-this-will-be-shown-in\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-16T01:02:09+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/it-is-given-in-adjustment-that-during-the-accounting-year-the-trader-distributed-goods-worth-rs-5000-as-free-samples-while-preparing-final-accounts-this-will-be-shown-in\/","url":"https:\/\/exam.pscnotes.com\/mcq\/it-is-given-in-adjustment-that-during-the-accounting-year-the-trader-distributed-goods-worth-rs-5000-as-free-samples-while-preparing-final-accounts-this-will-be-shown-in\/","name":"It is given in adjustment that during the accounting year, the trader distributed goods worth Rs. 5,000 as free samples. 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