Question
Mr. Raghav has rented a house. Ground Floor of the house is used for his business i.e. Grocery Shop & First floor of this house is used for his residence. The total rent for the house for a particular month was Rs 1,00,000. How much of this shall be recorded in books as an expense for the business?
Answer: Option C
:
C
According to business entity concept, Business is separate legal entity from its owner. Thus, Rs 50,000 shall be recorded as expense for the business.
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:
C
According to business entity concept, Business is separate legal entity from its owner. Thus, Rs 50,000 shall be recorded as expense for the business.
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