Dominos pizza has shifted its head office to a new location. The owner has booked an entire floor of 32 floors building which consists of 4 big halls which can be used for meetings and get together. Other rooms can also be utilized for offices and other operational work. Out of those 4 halls, 3 halls are utilized by the company while one hall is kept separate by the managing director for personal parties. Now according to accounting rules ___________________. a. Rent will be recorded for the whole floor in the books of accounts b. Rent of 3 halls will be on company and fourth one will be recorded as drawing always c. Rent of only 3 halls will be recorded as fourth hall is not used for company purpose d. None of the options
Dominos pizza has shifted its head office to a new location. The owner has booked an entire floor of 32 floors building which consists of 4 big halls which can be used for meetings and get together. Other rooms can also be utilized for offices and other operational work. Out of those 4 halls, 3 halls are utilized by the company while one hall is kept separate by the managing director for personal parties. Now according to accounting rules ___________________. a. Rent will be recorded for the whole floor in the books of accounts b. Rent of 3 halls will be on company and fourth one will be recorded as drawing always c. Rent of only 3 halls will be recorded as fourth hall is not used for company purpose d. None of the options
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Dominos pizza has shifted its head office to a new location. The owner has booked an entire floor of 32 floors building which consists of 4 big halls which can be used for meetings and get together. Other rooms can also be utilized for offices and other operational work. Out of those 4 halls, 3 halls are utilized by the company while one hall is kept separate by the managing director for personal parties. Now according to accounting rules ___________________.
a.
Rent will be recorded for the whole floor in the books of accounts
b.
Rent of 3 halls will be on company and fourth one will be recorded as drawing always
c.
Rent of only 3 halls will be recorded as fourth hall is not used for company purpose
d.
None of the options
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