Rahul , the proprietor of M/s . R. K .& Co. purchased an air - conditioner and installed it at his residence. The payment was made by issuing a cheque from the accountof M/s R. K. & Co. The Accountant debited the Drawings Account with the amount whereas Rahul is of the view that should be debited to the FixedAssets . In your view , who is correct and why ?

Rahul , the proprietor of M/s . R. K .& Co. purchased an air - conditi

1.	Rahul , the proprietor of M/s . R. K .& Co. purchased an air - conditioner and installed it at his residence. The payment was made by issuing a cheque from the accountof M/s R. K. & Co. The Accountant debited the Drawings Account with the amount whereas Rahul is of the view that should be debited to the FixedAssets . In your view , who is correct and why ?
Answer» <html><body><p></p>Solution :The <a href="https://interviewquestions.tuteehub.com/tag/accountant-5219" style="font-weight:bold;" target="_blank" title="Click to know more about ACCOUNTANT">ACCOUNTANT</a> is correct because <a href="https://interviewquestions.tuteehub.com/tag/according-366619" style="font-weight:bold;" target="_blank" title="Click to know more about ACCORDING">ACCORDING</a> to the Business <a href="https://interviewquestions.tuteehub.com/tag/entity-972730" style="font-weight:bold;" target="_blank" title="Click to know more about ENTITY">ENTITY</a> Concept business is separate and distinct from the owners . Since , the air - conditioner has been installed at the <a href="https://interviewquestions.tuteehub.com/tag/residence-1186178" style="font-weight:bold;" target="_blank" title="Click to know more about RESIDENCE">RESIDENCE</a> of the proprietor , i.e., for his personal use , it is drawings by the owner.</body></html>

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