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All questions of Accountancy Class 12 for Commerce Exam
Shareholders get dividend, Debenture holders get:- a)Profit
- b)Interest
- c)Bonus
- d)Shares
Correct answer is option 'A'. Can you explain this answer?
Shareholders get dividend, Debenture holders get:
a)
Profit
b)
Interest
c)
Bonus
d)
Shares
|
Arjun Singhania answered |
Only when a company makes a profit, a dividend is distributed. However, preferred dividend is given when profit is made; paying a dividend to equity shareholders remains optional. Interest is paid to the lenders/creditors/debenture holders. A dividend is paid to the preferred shareholders and equity shareholders.
The following information pertains to X Ltd.:
(i) Equity Share capital called up Rs. 5,00,000
(ii) Calls in arrear Rs. 40,000
(iii) Call in advance Rs. 25,000
(iv) Proposed dividend 15%
The amount of dividend payable is:
- a) Rs. 75,000
- b) Rs. 72,750
- c) Rs. 71,250
- d) Rs. 69,000
Correct answer is option `D`. Can you explain this answer?
The following information pertains to X Ltd.:
(i) Equity Share capital called up Rs. 5,00,000
(ii) Calls in arrear Rs. 40,000
(iii) Call in advance Rs. 25,000
(iv) Proposed dividend 15%
The amount of dividend payable is:
(i) Equity Share capital called up Rs. 5,00,000
(ii) Calls in arrear Rs. 40,000
(iii) Call in advance Rs. 25,000
(iv) Proposed dividend 15%
The amount of dividend payable is:
a) Rs. 75,000
b) Rs. 72,750
c) Rs. 71,250
d) Rs. 69,000
|
Freedom Institute answered |
Dividend is payable at the end of the financial year upon such share which money is made. Calls in advance means the amount which is received in advance before the amount is due from shareholders and calls in arrears means which money that is not given by public to company earlier and is due. To calculate the dividend payable we have to subtract calls in arrear from Share capital so, Rs 5,00,000 - Rs 40,000 =4,60,000. 15 % is the proposed dividend, hence, amount of dividend payable is Rs 69,000
Money withdrawn by a partner on 1st July Rs. 20,000 and interest on drawings is fixed @ 6% p.a. (Books are closed on 31st March.) The amount of interest will be Rupees:
- a)900
- b)1200
- c)600
- d)No interest will be charged.
Correct answer is option 'A'. Can you explain this answer?
Money withdrawn by a partner on 1st July Rs. 20,000 and interest on drawings is fixed @ 6% p.a. (Books are closed on 31st March.) The amount of interest will be Rupees:
a)
900
b)
1200
c)
600
d)
No interest will be charged.
|
|
Arun Yadav answered |
Correct Answer :- A
Explanation : Loan interest to be provided @ 6% p.a.
Loan Amount = ₹ 20,000
Time (from 1st July to 31st March) = 9 months
A’s loan interest = 20,000 * 6/100 * 9/12
= 900
Can you explain the answer of this question below:ABC Ltd. forfeited 20 shares of Rs. 10 each, Rs. 8 called up, on which X paid application and allotment money of Rs. 2 and Rs. 3 respectively. These shares were re-issued to Y at Rs. 6 fully paid. What was the balance in share forfeiture account before shares were re-issued?
- A: Rs. 40
- B: Rs. 60
- C: Rs. 100
- D: Rs. 160
The answer is c.
ABC Ltd. forfeited 20 shares of Rs. 10 each, Rs. 8 called up, on which X paid application and allotment money of Rs. 2 and Rs. 3 respectively. These shares were re-issued to Y at Rs. 6 fully paid. What was the balance in share forfeiture account before shares were re-issued?
|
Divey Sethi answered |
Shares forfeiture account contains the balance of money paid on the shares forfeited.
► Number of shares = 20
► Money paid on shares = 2+3 = 5
► Money unpaid on shares = (8-5) = 3
► Balance in shares forfeiture account before shares were re-issued = 20*5 = 100
► Number of shares = 20
► Money paid on shares = 2+3 = 5
► Money unpaid on shares = (8-5) = 3
► Balance in shares forfeiture account before shares were re-issued = 20*5 = 100
This a MCQ (Multiple Choice Question) based practice test of Chapter 1 - Fundamentals of partnership and Goodwill of Accountancy of Class XII (12) for the quick revision/preparation of School Board examinationsQ Which Section of the Partnership Act defines partnership as the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all?- a)Section 61
- b)Section 13
- c)Section 48
- d)Section 4
Correct answer is 'D'. Can you explain this answer?
This a MCQ (Multiple Choice Question) based practice test of Chapter 1 - Fundamentals of partnership and Goodwill of Accountancy of Class XII (12) for the quick revision/preparation of School Board examinations
Q Which Section of the Partnership Act defines partnership as the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all?
a)
Section 61
b)
Section 13
c)
Section 48
d)
Section 4
|
Nandini Iyer answered |
Section 4 in The Indian Partnership Act, 1932
Definition of “partnership”, “partner”, “firm” and “firm name”.—’’Partnership” is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. Persons who have entered into partnership with one another are called individually “partners” and collectively a “firm”, and the name under which their business is carried on is called the “firm name”.
Can you explain the answer of this question below:A company invited application for subscription of 5000 shares. The application were received for 6000 shares. The share were allotted on pro-rata bases. If Shyam applied for 180 shares, how many shares would be allotted to him?- A:180
- B:200
- C:150
- D:175
The answer is c.
A company invited application for subscription of 5000 shares. The application were received for 6000 shares. The share were allotted on pro-rata bases. If Shyam applied for 180 shares, how many shares would be allotted to him?
A:
180
B:
200
C:
150
D:
175
|
Lakshmi Kumar answered |
180×5000/6000= 150
It is better to have the agreement in writing to avoid any ___- a)Dispute
- b)Audit
- c)Loss
- d)Case
Correct answer is option 'A'. Can you explain this answer?
It is better to have the agreement in writing to avoid any ___
a)
Dispute
b)
Audit
c)
Loss
d)
Case
|
Gaurav Saini answered |
Partnership deed plays important role in regulating the duties and responsibilities of each partner. A written partnership deed is useful to resolve disputes and misunderstanding among partners because every thing is in written form.
Geeta and Sita are partners in a firm sharing-profits in the ratio of 3 : 2. They decide to share future profits equally. For this purpose the goodwill of the firm has been valued at Rs. 50,000. Record necessary adjustment entry for the same.- a)Dr. Sita and Cr. Geeta by Rs. 4,500
- b)Dr. Geeta and Cr. Sita by Rs. 5,000
- c)Dr. Sita and Cr. Geeta by Rs. 4,000
- d)Dr. Sita and Cr. Geeta by Rs. 5,000
Correct answer is option 'D'. Can you explain this answer?
Geeta and Sita are partners in a firm sharing-profits in the ratio of 3 : 2. They decide to share future profits equally. For this purpose the goodwill of the firm has been valued at Rs. 50,000. Record necessary adjustment entry for the same.
a)
Dr. Sita and Cr. Geeta by Rs. 4,500
b)
Dr. Geeta and Cr. Sita by Rs. 5,000
c)
Dr. Sita and Cr. Geeta by Rs. 4,000
d)
Dr. Sita and Cr. Geeta by Rs. 5,000
|
|
Neha Sharma answered |
Adjutment of goodwill amount at the time of change in profit sharing ratio:
Old Ratio = 3:2 and New Ratio 1:1
Geeta’s Sacrifice = 3/5 – 1/2 = 1/10
Sita’s Gain = 2/5 – 1/2 = 1/10
Share in goodwill = 50,000 × 1/10 = 5,000
Old Ratio = 3:2 and New Ratio 1:1
Geeta’s Sacrifice = 3/5 – 1/2 = 1/10
Sita’s Gain = 2/5 – 1/2 = 1/10
Share in goodwill = 50,000 × 1/10 = 5,000
Unrecorded liability will be shown in:- a)Credit side of Realisation A/c
- b)Debit side of partners’ capital A/c
- c)Debit side of Realisation A/c
- d)Debit side of cash A/c
Correct answer is option 'C'. Can you explain this answer?
Unrecorded liability will be shown in:
a)
Credit side of Realisation A/c
b)
Debit side of partners’ capital A/c
c)
Debit side of Realisation A/c
d)
Debit side of cash A/c
|
Kiran Mehta answered |
Unrecorded liabilities are those liabilities that are not shown in the Balance Sheet but they still exist in the business. Although these liabilities are not shown in the books, they still need to the discharged off at the time of dissolution and hence are debited to the Realisation account.
A and B are partners in a firm sharing profits in the ratio of 2 : 1. They admit C as a new partner for 1/5 share. New Ratio of A and B will be 1 : 2. Sacrificing ratio will be:- a)Sacrificing ratio 1 : 1
- b)Sacrificing ratio 2 : 1
- c)A’s Sacrifice 6/15 and B’s Gain 3/15
- d)Sacrificing ratio 3 : 5
Correct answer is 'C'. Can you explain this answer?
A and B are partners in a firm sharing profits in the ratio of 2 : 1. They admit C as a new partner for 1/5 share. New Ratio of A and B will be 1 : 2. Sacrificing ratio will be:
a)
Sacrificing ratio 1 : 1
b)
Sacrificing ratio 2 : 1
c)
A’s Sacrifice 6/15 and B’s Gain 3/15
d)
Sacrificing ratio 3 : 5
|
Akshara Chopra answered |
Calculation of sacrificing ratio of partners:
Old Ratio = 2:1
New Ratio of A and B = 1:2
New Ratio of A, B and C will be : 1 – 1/5 = 4/5
A’s new share = 1/3 × 4/5 = 4/15
B’s new share = 2/3 × 4/5 = 8/15
C’s Share 1/5 OR 3/15
New Ratio 4 : 8: 3
Sacrificing Ratio = A : 2/3 – 4/15= 6/15
B : 1/3 – 8/15 = 3/15 Gain
Old Ratio = 2:1
New Ratio of A and B = 1:2
New Ratio of A, B and C will be : 1 – 1/5 = 4/5
A’s new share = 1/3 × 4/5 = 4/15
B’s new share = 2/3 × 4/5 = 8/15
C’s Share 1/5 OR 3/15
New Ratio 4 : 8: 3
Sacrificing Ratio = A : 2/3 – 4/15= 6/15
B : 1/3 – 8/15 = 3/15 Gain
A company can sell its shares only through___- a)Only Newspapers
- b)Stock Exchange
- c)Media
- d)Banks
Correct answer is option 'B'. Can you explain this answer?
A company can sell its shares only through___
a)
Only Newspapers
b)
Stock Exchange
c)
Media
d)
Banks
|
Infinity Academy answered |
A company can sell its shares only through stock exchange. Company should be listed in the stock exchange to sell its shares.
This a MCQ (Multiple Choice Question) based practice test of Chapter 3 - Admission of a Partner of Accountancy of Class XII (12) for the quick revision/preparation of School Board examinationsQ Why a new partner is admitted in the firm?- a)To Increase the Number of partners
- b)To Increase the Capital of the firm.
- c)To Increase the Profit sharing Ratio
- d)To increase the goodwill of the firm
Correct answer is 'B'. Can you explain this answer?
This a MCQ (Multiple Choice Question) based practice test of Chapter 3 - Admission of a Partner of Accountancy of Class XII (12) for the quick revision/preparation of School Board examinations
Q Why a new partner is admitted in the firm?
a)
To Increase the Number of partners
b)
To Increase the Capital of the firm.
c)
To Increase the Profit sharing Ratio
d)
To increase the goodwill of the firm
|
Pooja Nair answered |
The main purpose of admission of a new partner is to increase the capital of the firm. When old partners feel that the capital they have employed in the business is not enough for the future growth of the business. They may admit a new partner to maintain or to build up the financial strength of the business.
Money realised from the sale of unrecorded assets is debited to the _________- a)Balance Sheet
- b)Revaluation Account
- c)Partners capital account
- d)Cash Account
Correct answer is option 'D'. Can you explain this answer?
Money realised from the sale of unrecorded assets is debited to the _________
a)
Balance Sheet
b)
Revaluation Account
c)
Partners capital account
d)
Cash Account
|
Sounak Chaudhary answered |
Debiting the Cash Account for the money realised from the sale of unrecorded assets
When a business sells an unrecorded asset, it receives cash in exchange. This cash receipt needs to be recorded in the accounting system to ensure accurate financial reporting. The money realised from the sale of unrecorded assets is debited to the Cash Account because it represents an increase in the business's cash balance.
Importance of recording the sale of unrecorded assets
The sale of unrecorded assets can have an impact on the financial statements of a business. If the sale is not recorded, it can lead to incorrect financial reporting and misrepresent the financial position of the business. For example, if the business sells a valuable asset for a significant amount of cash, but fails to record the sale, its cash balance will be understated, and its assets will be overstated. This can lead to inaccurate financial ratios, such as the current ratio, and mislead stakeholders about the business's ability to meet its short-term obligations.
Conclusion
In conclusion, the money realised from the sale of unrecorded assets should be debited to the Cash Account to ensure accurate financial reporting and prevent misrepresentation of the business's financial position. It is important to record all transactions accurately and in a timely manner to maintain the integrity of the accounting system.
When a business sells an unrecorded asset, it receives cash in exchange. This cash receipt needs to be recorded in the accounting system to ensure accurate financial reporting. The money realised from the sale of unrecorded assets is debited to the Cash Account because it represents an increase in the business's cash balance.
Importance of recording the sale of unrecorded assets
The sale of unrecorded assets can have an impact on the financial statements of a business. If the sale is not recorded, it can lead to incorrect financial reporting and misrepresent the financial position of the business. For example, if the business sells a valuable asset for a significant amount of cash, but fails to record the sale, its cash balance will be understated, and its assets will be overstated. This can lead to inaccurate financial ratios, such as the current ratio, and mislead stakeholders about the business's ability to meet its short-term obligations.
Conclusion
In conclusion, the money realised from the sale of unrecorded assets should be debited to the Cash Account to ensure accurate financial reporting and prevent misrepresentation of the business's financial position. It is important to record all transactions accurately and in a timely manner to maintain the integrity of the accounting system.
Aryan and Gauri were partner in a firm sharing profits and losses in the ratio of 2:1. Their capital was R.s. 90,000 and Rs. 60,000 respectively. They were entitled for interest on capital @ 12% p.a. The firm earned a profit of Rs. 84,000 after allowing interest on capitals. Profits will be distributed among them will be:
- a)Rs. 44,000; Rs. 22,000
- b)Rs. 56,000; Rs. 28,000
- c)Rs. 50,400; Rs. 33,600
- d)Rs. 39,600; Rs. 26,400
Correct answer is option 'B'. Can you explain this answer?
Aryan and Gauri were partner in a firm sharing profits and losses in the ratio of 2:1. Their capital was R.s. 90,000 and Rs. 60,000 respectively. They were entitled for interest on capital @ 12% p.a. The firm earned a profit of Rs. 84,000 after allowing interest on capitals. Profits will be distributed among them will be:
a)
Rs. 44,000; Rs. 22,000
b)
Rs. 56,000; Rs. 28,000
c)
Rs. 50,400; Rs. 33,600
d)
Rs. 39,600; Rs. 26,400
|
|
Niharika Datta answered |
The profit for the year is 84000 and that is given after allowing the interest on capital to the partners hence we can directly calculate the profit share for both the partners for Aryan it is 84000×2/3=56000, and for Gauri it is 84000×1/3=28000 hence option B is the correct answer
From the following, what is important for a partnership?- a)Capital more than 15 Crore
- b)Registration
- c)Sharing of Profits
- d)More than 10 Persons
Correct answer is 'C'. Can you explain this answer?
From the following, what is important for a partnership?
a)
Capital more than 15 Crore
b)
Registration
c)
Sharing of Profits
d)
More than 10 Persons
|
Arshiya Datta answered |
Sharing of profits is must for a partnership business. Profits earned by a partnership firm should be divided amongst partners in the agreed profit sharing ratio. If profit sharing ratio is not mentioned in the partnership deed or partnership deed is silent on the distribution of profits, in such a case profits will be shared equally.
In a company’s balance sheet Assets are shown in the order of …..- a)Liquidity
- b)Market Value
- c)Permanence
- d)None of these
Correct answer is option 'A'. Can you explain this answer?
In a company’s balance sheet Assets are shown in the order of …..
a)
Liquidity
b)
Market Value
c)
Permanence
d)
None of these
|
Poonam Reddy answered |
Assets are listed in the balance sheet in order of their liquidity where cash is listed at the top as it's already liquid no conversion is required. The next in the list are marketable securities like stocks and bonds, which can be sold in the market in a few days generally the next day can be liquidated.
Profit or loss on revaluation is shared among the old partners in _______ ratio. - a)Old Profit Sharing
- b)New Profit Sharing
- c)Capital
- d)Equal
Correct answer is option 'A'. Can you explain this answer?
Profit or loss on revaluation is shared among the old partners in _______ ratio.
a)
Old Profit Sharing
b)
New Profit Sharing
c)
Capital
d)
Equal
|
Shriyanshu Keshari answered |
Bcoz all the assets and liabilities are old which are appreciated or depriciated then they divide in their old ratio
Opening balance of debtors is Rs. 35,000 Cash Received from Debtors is Rs. 30,000 Cash sales is Rs. 20,000 which is 20% of total sales. B/R Received for Rs. 40,000 and discount allowed is 1% of cash collection.Find the closing debtors.- a)Rs. 15,300
- b)Rs. 44,700
- c)Rs. 64,700
- d)Rs. 35,700
Correct answer is option 'B'. Can you explain this answer?
Opening balance of debtors is Rs. 35,000 Cash Received from Debtors is Rs. 30,000 Cash sales is Rs. 20,000 which is 20% of total sales. B/R Received for Rs. 40,000 and discount allowed is 1% of cash collection.Find the closing debtors.
a)
Rs. 15,300
b)
Rs. 44,700
c)
Rs. 64,700
d)
Rs. 35,700
|
|
Disha Joshi answered |
Given information:
- Opening balance of debtors = Rs. 35,000
- Cash received from debtors = Rs. 30,000
- Cash sales = Rs. 20,000 (which is 20% of total sales)
- B/R received for Rs. 40,000
- Discount allowed is 1% of cash collection
To find: Closing debtors
Calculation:
1. Calculation of total sales:
Cash sales = 20% of total sales
Therefore, total sales = (Cash sales/20%) x 100
Total sales = (20,000/20%) x 100 = Rs. 1,00,000
2. Calculation of total cash collected:
Cash received from debtors = Rs. 30,000
B/R received = Rs. 40,000
Total cash collected = Rs. 30,000 + Rs. 40,000 = Rs. 70,000
3. Calculation of discount allowed:
Discount allowed = 1% of cash collection
Discount allowed = 1% of Rs. 70,000 = Rs. 700
4. Calculation of total debtors:
Total debtors = Opening balance of debtors + Total sales - Cash received from debtors - Discount allowed
Total debtors = Rs. 35,000 + Rs. 1,00,000 - Rs. 30,000 - Rs. 700
Total debtors = Rs. 44,700
Therefore, the closing debtors are Rs. 44,700 (option B).
- Opening balance of debtors = Rs. 35,000
- Cash received from debtors = Rs. 30,000
- Cash sales = Rs. 20,000 (which is 20% of total sales)
- B/R received for Rs. 40,000
- Discount allowed is 1% of cash collection
To find: Closing debtors
Calculation:
1. Calculation of total sales:
Cash sales = 20% of total sales
Therefore, total sales = (Cash sales/20%) x 100
Total sales = (20,000/20%) x 100 = Rs. 1,00,000
2. Calculation of total cash collected:
Cash received from debtors = Rs. 30,000
B/R received = Rs. 40,000
Total cash collected = Rs. 30,000 + Rs. 40,000 = Rs. 70,000
3. Calculation of discount allowed:
Discount allowed = 1% of cash collection
Discount allowed = 1% of Rs. 70,000 = Rs. 700
4. Calculation of total debtors:
Total debtors = Opening balance of debtors + Total sales - Cash received from debtors - Discount allowed
Total debtors = Rs. 35,000 + Rs. 1,00,000 - Rs. 30,000 - Rs. 700
Total debtors = Rs. 44,700
Therefore, the closing debtors are Rs. 44,700 (option B).
A partner acts as ……………for a firm. - a)Agent
- b)Third Party
- c)Employee
- d)None of the above
Correct answer is option 'A'. Can you explain this answer?
A partner acts as ……………for a firm.
a)
Agent
b)
Third Party
c)
Employee
d)
None of the above
|
|
Nandini Iyer answered |
Implied authority of partner as agent of the firm
Subject to the provisions of section 22, the act of a partner which is done to carry on, in the usual way, business of the kind carried on by the firm, binds the firm. The authority of a partner to bind the firm conferred by this section is called his implied authority.
In the absence of any usage or custom of trade to the contrary, the implied authority of a partner does not empower him to-
- submit a dispute relating to the business of the firm to arbitration,
- open a banking account on behalf of the firm in his own name,
- compromise or relinquish any claim or portion of a claim by the firm,
- withdraw a suit or proceeding filed on behalf of the firm,
- admit any liability in a suit or proceeding against the firm,
- acquire immovable property on behalf of the firm,
- transfer immovable property belonging to the firm, or
- enter into partnership on behalf of the firm.
Registration of partnership firm is _________- a)Not Allowed
- b)Compulsory
- c)Optional
- d)Under Companies Act 2013
Correct answer is option 'C'. Can you explain this answer?
Registration of partnership firm is _________
a)
Not Allowed
b)
Compulsory
c)
Optional
d)
Under Companies Act 2013
|
|
Arjun Singhania answered |
Partnerships in India are governed by the Indian Partnership Act, 1932. As per the Partnership Act, Registration of Partnership Firms is optional and is entirely at the discretion of the partners. The Partners may or may not register their Partnership Agreement.
This a MCQ (Multiple Choice Question) based practice test of Chapter 4 - Retirement and Death of a Partner of Accountancy of Class XII (12) for the quick revision/preparation of School Board examinationsQ How can a partner get retirement from the partnership firm?- a)When all existing partners agreed
- b)With the effect of agreement
- c)When a new partner is admitted
- d)Both When all existing partners agreed and With the effect of agreement
Correct answer is option 'D'. Can you explain this answer?
This a MCQ (Multiple Choice Question) based practice test of Chapter 4 - Retirement and Death of a Partner of Accountancy of Class XII (12) for the quick revision/preparation of School Board examinations
Q How can a partner get retirement from the partnership firm?
a)
When all existing partners agreed
b)
With the effect of agreement
c)
When a new partner is admitted
d)
Both When all existing partners agreed and With the effect of agreement
|
Aravind Saha answered |
A partner can get retirement in the following ways:
(1) With the consent of all the partners
(2) Due to ill health
(3) Agreement/contract is over
(4) By giving notice
(1) With the consent of all the partners
(2) Due to ill health
(3) Agreement/contract is over
(4) By giving notice
Below are listed Content of partnership Deed except:- a)Interest on Debentures
- b)Interest on Partners capital and drawings
- c)Name of the firm.
- d)Ratio in which profit or losses shall be share
Correct answer is option 'A'. Can you explain this answer?
Below are listed Content of partnership Deed except:
a)
Interest on Debentures
b)
Interest on Partners capital and drawings
c)
Name of the firm.
d)
Ratio in which profit or losses shall be share
|
Sankar Bose answered |
Interest paid on debentures is a charge against the profit. Partnership Deed is mainly concerned with the appropriations and some charge. Main contents of partnership deed are interest on capital, interest on drawings, name of the firm, partners, their names and address etc.
Any change in the relations of partners without affecting the existing of partnership firm is called ____- a)Retirement
- b)Reassessment
- c)Reconstitution
- d)Revaluation
Correct answer is option 'C'. Can you explain this answer?
Any change in the relations of partners without affecting the existing of partnership firm is called ____
a)
Retirement
b)
Reassessment
c)
Reconstitution
d)
Revaluation
|
|
Alok Mehta answered |
Meaning of Reconstitution of Partnership Firm
"Partnership is the relation between persons who have agreed to shore tbi profits of a business carried on by all or any of them acting for all." In short, partnership is the result of an agreement between persons for sharing the profits of a business. A change in the partnership agreement brings to an end of the existing agreement and a new agreement comes into force. This new agreement changes relationship among the members of the partnership firm. When there is change in the relations without affecting the existence of partnership firm, it is called Reconstitution of Partnership Firm'. As a result of reconstitution, the firm continues as a new or reconstituted firm.
Goodwill Given in the old Balance Sheet will be:- a)Written off by the Sacrificing partners
- b)Distributed by Gainer partners
- c)Credited to old Partners Capital accounts
- d)Written off by the old partners
Correct answer is option 'D'. Can you explain this answer?
Goodwill Given in the old Balance Sheet will be:
a)
Written off by the Sacrificing partners
b)
Distributed by Gainer partners
c)
Credited to old Partners Capital accounts
d)
Written off by the old partners
|
|
Neha Sharma answered |
Goodwill existing in the old balance sheet of a partnership firm before admitting a new partner will be written off by the old partners in their old profit sharing ratio. A new partner cannot be debited for the same.
Pick up the correct answer from the given choices(only one correct answer):
Q. The manufacturing account is prepared:
- a)to ascertain the profit or loss on the goods produced
- b)to ascertain the cost of the manufactured goods
- c)to show the sale proceeds from the goods produced during the year
- d)both (b) and (c)
Correct answer is option 'B'. Can you explain this answer?
Pick up the correct answer from the given choices(only one correct answer):
Q. The manufacturing account is prepared:
a)
to ascertain the profit or loss on the goods produced
b)
to ascertain the cost of the manufactured goods
c)
to show the sale proceeds from the goods produced during the year
d)
both (b) and (c)
|
Shruti Pandey answered |
Manufacturing account is prepared to know the cost of goods manufactured and it is related with production but not with profit/loss or sale.
X, Y and Z are partners sharing profits in the ratio of 1/2, 2/5 and 1/10. What will be the new ratio of X and Y after the retirement of Z.- a)5:4
- b)4:5
- c)3:2
- d)1:1
Correct answer is option 'A'. Can you explain this answer?
X, Y and Z are partners sharing profits in the ratio of 1/2, 2/5 and 1/10. What will be the new ratio of X and Y after the retirement of Z.
a)
5:4
b)
4:5
c)
3:2
d)
1:1
|
Sharmila Sharma answered |
After the retirement of Z, new ratio of X and Y will be 5:4.
Simplifying, 1/2, 2/5, 1/10 , L.C.M. is 10
Ratio will be 5:4:1
Hence , If z will retire then new ratio will be 5:4.
What type of shares can be issued at discount?- a)Sweat Equity Shares
- b)Equity Shares
- c)Preference Shares
- d)Both Preference Shares and Equity Shares
Correct answer is option 'A'. Can you explain this answer?
What type of shares can be issued at discount?
a)
Sweat Equity Shares
b)
Equity Shares
c)
Preference Shares
d)
Both Preference Shares and Equity Shares
|
|
Poonam Reddy answered |
As per the Companies Act, 2013, A company cannot issue its shares at discount except sweat equity shares.
If there is no partnership deed then interest on capital will be charged at ______________p.a.- a)6%
- b)8%
- c)9%
- d)NIL
Correct answer is option 'D'. Can you explain this answer?
If there is no partnership deed then interest on capital will be charged at ______________p.a.
a)
6%
b)
8%
c)
9%
d)
NIL
|
Rajat Patel answered |
A partnership deed, also known as a partnership agreement, is a document that outlines in detail the rights and responsibilities of all parties to a business operation. It has the force of law and is designed to guide the partners in the conduct of the business. It is helpful in preventing disputes and disagreements over the role of each partner in the business and the benefits which are due to them.They charged at 6% if interest on capital if there is no partnership deed.
Purchase of marketable securities will result in _________.- a)Decrease in cash and cash equivalents
- b)Increase in Investing activities.
- c)Increase in cash and cash equivalents
- d)No effect on cash and cash equivalents
Correct answer is option 'D'. Can you explain this answer?
Purchase of marketable securities will result in _________.
a)
Decrease in cash and cash equivalents
b)
Increase in Investing activities.
c)
Increase in cash and cash equivalents
d)
No effect on cash and cash equivalents
|
Jayant Mishra answered |
Marketable securities are liquid financial instruments that can be quickly converted into cash at a reasonable price. The liquidity of marketable securities comes from the fact that the maturities tend to be less than one year, and that the rates at which they can be bought or sold have little effect on prices.
Good will of the firm is valued Rs. 30000. C an incoming partner purchase ¼ share of total profit Good will be raised in the books.- a)Rs. 30000
- b)Rs. 7500
- c)Rs. 120000
- d)Rs. 7000
Correct answer is option 'A'. Can you explain this answer?
Good will of the firm is valued Rs. 30000. C an incoming partner purchase ¼ share of total profit Good will be raised in the books.
a)
Rs. 30000
b)
Rs. 7500
c)
Rs. 120000
d)
Rs. 7000
|
Anirudh Gupta answered |
A 1/4th share in the firm for Rs. 10000?
It depends on the terms of the partnership agreement. If the agreement allows for the sale of partnership shares and specifies a method for valuing the firm's goodwill, then the incoming partner would need to follow that process to determine the value of their share. If the agreement does not address the sale of shares or the valuation of goodwill, then the partners would need to negotiate a fair price based on the current value of the firm's assets and liabilities.
It depends on the terms of the partnership agreement. If the agreement allows for the sale of partnership shares and specifies a method for valuing the firm's goodwill, then the incoming partner would need to follow that process to determine the value of their share. If the agreement does not address the sale of shares or the valuation of goodwill, then the partners would need to negotiate a fair price based on the current value of the firm's assets and liabilities.
If a partner agreed to pay the unrecorded liability then ______- a)Realisation account is credited and concerned partner’s account debited
- b)Only Realisation account is credited
- c)Realisation account is debited and concerned partner’s capital account is credited.
- d)Concerned partner’s account is debited
Correct answer is option 'C'. Can you explain this answer?
If a partner agreed to pay the unrecorded liability then ______
a)
Realisation account is credited and concerned partner’s account debited
b)
Only Realisation account is credited
c)
Realisation account is debited and concerned partner’s capital account is credited.
d)
Concerned partner’s account is debited
|
Sai Mishra answered |
When a partner agreed to pay any unrecorded liability, in such a case, realization account should be debited and concerned partner’s capital account should be credited. No effect on cash account.
Equity – Rs. 90,000, Liability – Rs. 60,000 Profit of the year – Rs. 20,000, Find Total Assets- a)Rs. 170,000
- b)Rs. 150,000
- c)Rs. 110,000
- d)Rs. 80,000
Correct answer is option 'A'. Can you explain this answer?
Equity – Rs. 90,000, Liability – Rs. 60,000 Profit of the year – Rs. 20,000, Find Total Assets
a)
Rs. 170,000
b)
Rs. 150,000
c)
Rs. 110,000
d)
Rs. 80,000
|
|
Freedom Institute answered |
In the balance sheet Total Assets=Total Liabilities
Here, details of liability side is given to us.
► Total Liabilities= equity+Liability+profit of the year
= 90,000+60,000+20,000
= 1,70,000
Here, details of liability side is given to us.
► Total Liabilities= equity+Liability+profit of the year
= 90,000+60,000+20,000
= 1,70,000
Goodwill is not a ……..- a)Fixed Asset
- b)Intangible Asset
- c)Fictitious Asset
- d)None of these
Correct answer is option 'C'. Can you explain this answer?
Goodwill is not a ……..
a)
Fixed Asset
b)
Intangible Asset
c)
Fictitious Asset
d)
None of these
|
Yaswant Shing answered |
Goodwill is considered as an intangible assets of the firm . It means it cannot be seen and touch like other asset of the firm. It does not have any physical existence. on the contrary fictitious asset are neither tangible or intangible assets.
D Ltd. issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :
On application Rs.20
On allotment Rs.50 (including premium)
On first call Rs.30
On second and final call Rs.20
Applications were received for 3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares. Money excess received on application was employed on account of sum due on allotment as part of share capital. E, to whom 4,000 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited and F, the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call. Of the forfeited shares, 8,000 shares were reissued to G at a discount of 10%, the whole of E’s forfeited shares being reissued.
Q.Application money adjusted against allotment = __________. a.
- a)Rs 20,00,000
- b)Rs 8,00,000
- c)Rs 12,00,000
- d)Rs 16,00,000
Correct answer is option 'B'. Can you explain this answer?
D Ltd. issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :
On application Rs.20
On allotment Rs.50 (including premium)
On first call Rs.30
On second and final call Rs.20
Applications were received for 3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares. Money excess received on application was employed on account of sum due on allotment as part of share capital. E, to whom 4,000 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited and F, the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call. Of the forfeited shares, 8,000 shares were reissued to G at a discount of 10%, the whole of E’s forfeited shares being reissued.
Q.Application money adjusted against allotment = __________. a.
a)
Rs 20,00,000
b)
Rs 8,00,000
c)
Rs 12,00,000
d)
Rs 16,00,000
|
Srsps answered |
Correct Answer :- B
Explanation : Total refund amount = (300000-240000) * 20 = 12,00,000
so , adjustment towards allotment (20,00,000 - 12,00,000)
= 8,00,000.
Outgoing partner is not entitled to take _______- a)His Capital account balance
- b)His share of Loss on Revaluation
- c)His share of profit for the period
- d)Complete goodwill of the firm
Correct answer is option 'D'. Can you explain this answer?
Outgoing partner is not entitled to take _______
a)
His Capital account balance
b)
His share of Loss on Revaluation
c)
His share of profit for the period
d)
Complete goodwill of the firm
|
Knowledge Hub answered |
Outgoing partner cannot take complete goodwill of the firm. Outgoing partner is entitled for the followings:
(i) His capital account balance
(ii) His share of profit reserves & gains etc.
(iii) Revaluation profit or loss
(iv) His share of goodwill
Note: outgoing partner is entitled for his share of goodwill only and not the complete goodwill of the firm.
(i) His capital account balance
(ii) His share of profit reserves & gains etc.
(iii) Revaluation profit or loss
(iv) His share of goodwill
Note: outgoing partner is entitled for his share of goodwill only and not the complete goodwill of the firm.
Discount on issue of debentures is a ____________.- a)Revenue loss to be charged in the year of issue
- b)Capital loss to be written off from capital reserve
- c)Capital loss to be written off over the tenure of the debentures
- d)Capital loss to be shown as goodwill
Correct answer is option 'C'. Can you explain this answer?
Discount on issue of debentures is a ____________.
a)
Revenue loss to be charged in the year of issue
b)
Capital loss to be written off from capital reserve
c)
Capital loss to be written off over the tenure of the debentures
d)
Capital loss to be shown as goodwill
|
|
Deepika Desai answered |
Explanation:
Discount on issue of debentures refers to the issue of debentures at a price lower than their face value. This discount is a capital loss to be written off over the tenure of the debentures. The following points explain this concept in detail:
Capital Loss: The discount on issue of debentures represents a capital loss to the company. It reduces the amount of capital that the company can raise from the issue of debentures.
Writing off the Loss: The capital loss on account of discount on issue of debentures is written off over the tenure of the debentures. This means that a portion of the loss is charged to the Profit and Loss Account each year until the debentures are redeemed.
Amortization: The process of writing off the capital loss over the tenure of the debentures is called amortization. It involves the calculation of the annual amount of loss to be charged to the Profit and Loss Account.
Accounting Treatment: The discount on issue of debentures is shown as a liability in the Balance Sheet. The amount of discount is deducted from the face value of the debentures to arrive at the amount of debentures issued. The capital loss on account of the discount is shown as a separate item in the Balance Sheet.
Conclusion:
Discount on issue of debentures is a capital loss that is written off over the tenure of the debentures. The process of writing off this loss is called amortization. The discount is shown as a liability in the Balance Sheet and the capital loss is shown as a separate item in the Balance Sheet.
Discount on issue of debentures refers to the issue of debentures at a price lower than their face value. This discount is a capital loss to be written off over the tenure of the debentures. The following points explain this concept in detail:
Capital Loss: The discount on issue of debentures represents a capital loss to the company. It reduces the amount of capital that the company can raise from the issue of debentures.
Writing off the Loss: The capital loss on account of discount on issue of debentures is written off over the tenure of the debentures. This means that a portion of the loss is charged to the Profit and Loss Account each year until the debentures are redeemed.
Amortization: The process of writing off the capital loss over the tenure of the debentures is called amortization. It involves the calculation of the annual amount of loss to be charged to the Profit and Loss Account.
Accounting Treatment: The discount on issue of debentures is shown as a liability in the Balance Sheet. The amount of discount is deducted from the face value of the debentures to arrive at the amount of debentures issued. The capital loss on account of the discount is shown as a separate item in the Balance Sheet.
Conclusion:
Discount on issue of debentures is a capital loss that is written off over the tenure of the debentures. The process of writing off this loss is called amortization. The discount is shown as a liability in the Balance Sheet and the capital loss is shown as a separate item in the Balance Sheet.
Premium brought by the new partner will be shared by the existing partners in:- a)New Ratio
- b)Gain Ratio
- c)Sacrificing Ratio
- d)Old Ratio
Correct answer is option 'C'. Can you explain this answer?
Premium brought by the new partner will be shared by the existing partners in:
a)
New Ratio
b)
Gain Ratio
c)
Sacrificing Ratio
d)
Old Ratio
|
|
Kiran Mehta answered |
When a new partner is admitted into the partnership firm, he brings some amount of premium for goodwill which will be shared/distributed by the sacrificing partners in their sacrificing ratio
When a partner withdraws ?4000 at the beginning of each quarter, the interest on his drawings @ 6% p.a. will be ?:- a)240
- b)960
- c)480
- d)600
Correct answer is 'D'. Can you explain this answer?
When a partner withdraws ?4000 at the beginning of each quarter, the interest on his drawings @ 6% p.a. will be ?:
a)
240
b)
960
c)
480
d)
600
|
Ishan Choudhury answered |
Correct Answer :- d
Explanation : If a fixed amount is withdrawn on the first day of every quarter, then the interest is calculated on the amount withdrawn for a period of seven and half months.
Total drawings made by the partner during the whole year is 4000 * 4 = 16000
Interest on drawings = 16000 * 6/100 * 7.5/12
= 600
When a company makes an offer or invites the public in general to subscribe its shares, it is known as _______- a)Issue of shares at par
- b)Private Placement of shares
- c)Issue of shares at premium
- d)Initial Public Offer (IPO)
Correct answer is option 'D'. Can you explain this answer?
When a company makes an offer or invites the public in general to subscribe its shares, it is known as _______
a)
Issue of shares at par
b)
Private Placement of shares
c)
Issue of shares at premium
d)
Initial Public Offer (IPO)
|
|
Nandini Iyer answered |
A public company is a company that has permission to issue registered securities to the general public through an initial public offering (IPO) and it is traded on at least one stock exchange market.
If dates of the withdrawal of drawings are not given then interest on drawings should be charged- a)For 12months
- b)For 0 months
- c)For 6 months
- d)For 8 months
Correct answer is option 'C'. Can you explain this answer?
If dates of the withdrawal of drawings are not given then interest on drawings should be charged
a)
For 12months
b)
For 0 months
c)
For 6 months
d)
For 8 months
|
|
Cute Priyanshu answered |
If the dates of the withdrawal of drawings are not given then interest on drawing should be charged for 6 months.
If sales revenues are Rs. 4,00,000; cost of goods sold is Rs. 3,10,000 and operating expenses are Rs. 60,000, the gross profit is
- a)Rs. 30,000
- b)Rs. 90,000
- c)Rs. 3,40,000
- d)Rs. 60,000
Correct answer is option 'B'. Can you explain this answer?
If sales revenues are Rs. 4,00,000; cost of goods sold is Rs. 3,10,000 and operating expenses are Rs. 60,000, the gross profit is
a)
Rs. 30,000
b)
Rs. 90,000
c)
Rs. 3,40,000
d)
Rs. 60,000
|
Nipun Tuteja answered |
To calculate the gross profit, we use the formula:
Gross Profit = Sales Revenue - Cost of Goods Sold (COGS)
Given:
- Sales Revenue = Rs. 4,00,000
- Cost of Goods Sold = Rs. 3,10,000
Calculation: Gross Profit = 4,00,000 − 3,10,000 = 90,000
Therefore, the correct answer is: B: Rs. 90,000.
Share allotment account is a : - a)Real account
- b)Nominal account
- c)Personal account
- d)Company account
Correct answer is option 'C'. Can you explain this answer?
Share allotment account is a :
a)
Real account
b)
Nominal account
c)
Personal account
d)
Company account
|
Gopal Sen answered |
Explanation:
Personal account is a type of account that is used to keep the record of individuals, firms, and companies with whom we have some business transactions. Share allotment account is also a personal account as it maintains the record of the individuals or companies to whom shares are allotted.
Reasons why Share allotment account is a personal account:
1. Records transactions with individuals and companies: Share allotment account is used to record the transactions related to the allotment of shares to individuals and companies. Hence, it is a personal account.
2. Represents a person or entity: Share allotment account represents the person or entity to whom shares are allotted. Therefore, it is a personal account.
3. Maintains balance of transactions: Share allotment account maintains the balance of transactions related to the allotment of shares. This balance represents the amount of shares allotted to individuals and companies. Hence, it is a personal account.
Conclusion:
From the above discussion, it is clear that Share allotment account is a personal account. Therefore, it falls under the category of personal accounts in accounting.
Personal account is a type of account that is used to keep the record of individuals, firms, and companies with whom we have some business transactions. Share allotment account is also a personal account as it maintains the record of the individuals or companies to whom shares are allotted.
Reasons why Share allotment account is a personal account:
1. Records transactions with individuals and companies: Share allotment account is used to record the transactions related to the allotment of shares to individuals and companies. Hence, it is a personal account.
2. Represents a person or entity: Share allotment account represents the person or entity to whom shares are allotted. Therefore, it is a personal account.
3. Maintains balance of transactions: Share allotment account maintains the balance of transactions related to the allotment of shares. This balance represents the amount of shares allotted to individuals and companies. Hence, it is a personal account.
Conclusion:
From the above discussion, it is clear that Share allotment account is a personal account. Therefore, it falls under the category of personal accounts in accounting.
A and B are partners in a firm sharing profits and losses in the ratio 1:2.They admitted C into the partnership and decided to give him 1/3rd share of the future profits. Find the new ratio of the partners.- a)It is 3:2:1
- b)It is 2:4:3
- c)It is 3:4:2
- d)It is 4:2:3
Correct answer is option 'B'. Can you explain this answer?
A and B are partners in a firm sharing profits and losses in the ratio 1:2.They admitted C into the partnership and decided to give him 1/3rd share of the future profits. Find the new ratio of the partners.
a)
It is 3:2:1
b)
It is 2:4:3
c)
It is 3:4:2
d)
It is 4:2:3
|
Maheshwar Chawla answered |
Given:
- A and B are partners with profit-sharing ratio 1:2.
- C is admitted into the partnership and given 1/3rd share of future profits.
To find: New ratio of the partners.
Solution:
Let the total profit be x.
Then, profit shares of A and B will be (1/3)x and (2/3)x respectively.
Let the share of C be y.
Then, y = (1/3)x/3 = (1/9)x
Thus, the new profit-sharing ratio will be:
A : B : C
= (1/3)x : (2/3)x : y
= (1/3)x : (2/3)x : (1/9)x
= 3x : 6x : x
= 3 : 6 : 1
= 2 : 4 : 1 (by dividing each term by the lowest term)
Therefore, the new ratio of partners is 2:4:1, which is option (b).
- A and B are partners with profit-sharing ratio 1:2.
- C is admitted into the partnership and given 1/3rd share of future profits.
To find: New ratio of the partners.
Solution:
Let the total profit be x.
Then, profit shares of A and B will be (1/3)x and (2/3)x respectively.
Let the share of C be y.
Then, y = (1/3)x/3 = (1/9)x
Thus, the new profit-sharing ratio will be:
A : B : C
= (1/3)x : (2/3)x : y
= (1/3)x : (2/3)x : (1/9)x
= 3x : 6x : x
= 3 : 6 : 1
= 2 : 4 : 1 (by dividing each term by the lowest term)
Therefore, the new ratio of partners is 2:4:1, which is option (b).
Payment of debentures is made before the ________- a)Payment of Profit
- b)Payment of Share Capital
- c)Payment of Dividend
- d)None of these
Correct answer is option 'B'. Can you explain this answer?
Payment of debentures is made before the ________
a)
Payment of Profit
b)
Payment of Share Capital
c)
Payment of Dividend
d)
None of these
|
|
Jayant Mishra answered |
Debenture is an alternative form of investment in a company that is more secured than investment in shares because company must pay interest and it will be paid before the dividend payment. Debenture holders also get privilege, if the company which issued the debentures becomes bankrupt.
Ram is a partner. He made drawings as follows:
July 1 Rs. 200
August 1 Rs. 200
September 1 Rs. 300
November 1 Rs. 50
February 1 Rs. 100
If the rate of interest on drawings is 6% and accounts are closed on March 31 the interest on drawing is:
- a)Rs. 29.75
- b)Rs. 35
- c)Rs. 30
- d)Rs. 40
Correct answer is option 'A'. Can you explain this answer?
Ram is a partner. He made drawings as follows:
July 1 Rs. 200
August 1 Rs. 200
September 1 Rs. 300
November 1 Rs. 50
February 1 Rs. 100
July 1 Rs. 200
August 1 Rs. 200
September 1 Rs. 300
November 1 Rs. 50
February 1 Rs. 100
If the rate of interest on drawings is 6% and accounts are closed on March 31 the interest on drawing is:
a)
Rs. 29.75
b)
Rs. 35
c)
Rs. 30
d)
Rs. 40
|
|
Sameer Basu answered |
Calculation of interest on drawings:
Step 1: Calculate the average amount of drawings
Average amount of drawings = Total amount of drawings / Number of months
= (200 + 200 + 300 + 50 + 100) / 5
= Rs. 170
Step 2: Calculate the interest on drawings
Interest on drawings = Average amount of drawings x Rate of interest x Time
Time = 9 months (from July 1 to March 31)
Interest on drawings = 170 x 6/100 x 9/12
= Rs. 7.65
Therefore, the interest on drawings is Rs. 7.65.
However, this interest is only for Ram's share as he is a partner. To calculate the interest on drawings for the partnership, we need to multiply this amount by the ratio of his share in the partnership.
Let's assume that Ram's share in the partnership is 1/3
Interest on drawings for partnership = 7.65 x 1/3
= Rs. 2.55
Therefore, the interest on drawings for the partnership is Rs. 2.55.
But, the question asks for the interest on drawings for Ram only, so we need to subtract this amount from the total interest on drawings calculated earlier.
Interest on drawings for Ram = 7.65 - 2.55
= Rs. 5.10
Therefore, the interest on drawings for Ram is Rs. 5.10.
However, this calculation is based on the assumption that the interest is calculated on a simple interest basis. If the interest is calculated on a compound interest basis, the calculation will be different.
Step 1: Calculate the average amount of drawings
Average amount of drawings = Total amount of drawings / Number of months
= (200 + 200 + 300 + 50 + 100) / 5
= Rs. 170
Step 2: Calculate the interest on drawings
Interest on drawings = Average amount of drawings x Rate of interest x Time
Time = 9 months (from July 1 to March 31)
Interest on drawings = 170 x 6/100 x 9/12
= Rs. 7.65
Therefore, the interest on drawings is Rs. 7.65.
However, this interest is only for Ram's share as he is a partner. To calculate the interest on drawings for the partnership, we need to multiply this amount by the ratio of his share in the partnership.
Let's assume that Ram's share in the partnership is 1/3
Interest on drawings for partnership = 7.65 x 1/3
= Rs. 2.55
Therefore, the interest on drawings for the partnership is Rs. 2.55.
But, the question asks for the interest on drawings for Ram only, so we need to subtract this amount from the total interest on drawings calculated earlier.
Interest on drawings for Ram = 7.65 - 2.55
= Rs. 5.10
Therefore, the interest on drawings for Ram is Rs. 5.10.
However, this calculation is based on the assumption that the interest is calculated on a simple interest basis. If the interest is calculated on a compound interest basis, the calculation will be different.
Debenture Allotment Account is:- a)Personal Account
- b)Nominal Account
- c)Real Account
- d)None of these
Correct answer is option 'A'. Can you explain this answer?
Debenture Allotment Account is:
a)
Personal Account
b)
Nominal Account
c)
Real Account
d)
None of these
|
Shubham Nambiar answered |
Debenture Allotment Account is a personal account. It is Representative Personal Account.
When shares are issued to promoters which account should be debited: - a)Share Capital A/c
- b)Assets A/c
- c)Promoters A/c
- d)Goodwill A/c
Correct answer is option 'D'. Can you explain this answer?
When shares are issued to promoters which account should be debited:
a)
Share Capital A/c
b)
Assets A/c
c)
Promoters A/c
d)
Goodwill A/c
|
|
Kavita Joshi answered |
Goodwill A/C DR
to equity share capital A/C
Goodwill account is debited on the assumption that promoter’s function has resulted in forming the company into profitable unit.
A Ltd. acquired, assets worth Rs. 15,00,000 form H Ltd. by issued of shares of Rs. 100 @ premium of 25%. The number of shares issued to settle the purchase consideration will be: - a)12,000 shares
- b)15,000 shares
- c)18750 shares
- d)11,250 shares
Correct answer is option 'A'. Can you explain this answer?
A Ltd. acquired, assets worth Rs. 15,00,000 form H Ltd. by issued of shares of Rs. 100 @ premium of 25%. The number of shares issued to settle the purchase consideration will be:
a)
12,000 shares
b)
15,000 shares
c)
18750 shares
d)
11,250 shares
|
|
Sinjini Gupta answered |
Divide 1500000 by125 because of 25%premium so it's 12000 shares
The Balance Sheet shows land and building Rs. 90,300. But after the change in agreement land and building be brought up to Rs.1, 19,700. By what amount land and building account should be recorded in revaluation account- a)Rs.119700
- b)Rs.29400
- c)Rs.90300
- d)Rs.90200
Correct answer is option 'B'. Can you explain this answer?
The Balance Sheet shows land and building Rs. 90,300. But after the change in agreement land and building be brought up to Rs.1, 19,700. By what amount land and building account should be recorded in revaluation account
a)
Rs.119700
b)
Rs.29400
c)
Rs.90300
d)
Rs.90200
|
|
Poonam Reddy answered |
The correct answer is B.
Land and building is an asset. Revaluation account considers only the changes in assets and liabilities. So since land and building was ₹90300 earlier and now it is to be brought up to ₹119700. This means the value of land and building is increased. So revaluation will consider only the increased amount and not the whole value of building . So increased amount is 119700-90300=₹29400
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