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Question
State true or false with reason.
Payment of cash against purchase of stock is use of fund.
Options
True
False
Solution
This statement is True.
Cash payment for purchase of stock is made from cash balance or/and from bank balance which is a part of business fund. When stock or materials we purchase we use cash for payment.
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Balance Sheet As on 31st March 2018 and 31st March 2019 | |||||
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