Which of the following statement is true?
Redeemable Preference Shares can be redeemed
A. even if they are not fully paid
B. only after the winding up of the company
C. out of profits
D. out of the proceeds of a fresh issue of Debentures
Select an option to see the answer and solution.
Calls in advance account is whown seperately in
A. Dr. side of profit and loss account
B. Cr. side of profit and loss account
C. liability side of balance sheet
D. Asset side of balance sheet
Select an option to see the answer and solution.
Leasehold property is generally depreciated by:
A. Annuity method
B. Fixed installment method
C. Written down value method
D. Insurance policy method
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Minimum number of members in case of private companyis
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From which of the following accounts can bonus shares be issued?
A. Balance in the Profit and Loss A/c
B. Share Premium A/c
C. General Reserve A/c
D. All of the above
Select an option to see the answer and solution.
Ploughing-back of profits means:
A. Dividend declared but not claimed by shareholders
B. Non-declaration of dividend in any year
C. Profits earned from illegal sources and employed in business
D. Retaining the earnings of business for future expansion programme
Select an option to see the answer and solution.
If credit side of a bank account is greater than debit side, it indicates:
A. Bank overdraft
B. Cash at bank
C. Bank balance
D. Current asset
Select an option to see the answer and solution.
Debit: all Expenses and Losses
Credit: all Gains or Income
This formula is applicable for:
A. Representative Personal Accounts
B. Tangible Real Accounts
C. Natural Personal Accounts
D. Intangible Real Accounts
E. Nominal Accounts
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Interest on partner's loan is given to partners
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Match the following.
List-I
List-II
a. Buy-back of equity shares must be authorised by
1. Not allowed
b. Buy-back of partly paid equity shares
2. Governs buy back of shares
c. Redemption of preference shares
3. Article of Association
d. Section 68 of the Companies Act
4. Only fully paid
A. a-3, b-4, c-2, d-1
B. a-3, b-1, c-4, d-2
C. a-4, b-3, c-2, d-1
D. a-2, b-1, c-4, d-3
Select an option to see the answer and solution.
Under Hire Purchase System, the interest for each period is computed on
A. Cash price remaining unpaid
B. Installment price remaining unpaid
C. The amount that has been agreed under hire purchase agreement
D. Cash price minus the amount of hire purchase installment paid
Select an option to see the answer and solution.
Which of the following is an implicit cost of increasing proportion of debt of a company?
A. P.E. Ratio of the company would increase
B. Rate of return of the company would decrease
C. Tax-shield would not be available on new debts
D. Equity shareholders would demand higher return
Select an option to see the answer and solution.
Net credit sales of business was Rs. 1,75,000. Debtors Turnover ratio is 8 times. Closing debtors were in excess of opening debtors by Rs. 7,000. Opening debtors will be
A. Rs. 18,375
B. Rs. 21,875
C. Rs. 25,375
D. None of the above
Select an option to see the answer and solution.
Which of the following accounts is a personal account?
A. Drawings account
B. Bank account
C. Prepaid Rent account
D. All of the above
Select an option to see the answer and solution.
Dual aspect concept results in the following accounting equation
A. Revenue = Expenses
B. Capital + Profits = Assets + Expenses
C. Capital + Liabilities = Assets
D. Capital + Drawings - Owner's Equity
Select an option to see the answer and solution.
Posting of a transaction means - That transaction is
A. Written in two accounts
B. Written in debit side of related account
C. Written in credit side of related account
D. Written on appropriate side of two accounts
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X and Y made a profit of Rs. 5,000 and invested Rs. 25,000 as capital in the firm. The expected average rate of return on capital is 15%. If it is valued at three year purchase then amount of goodwill will be
A. Rs. 7,500
B. Rs. 3,750
C. Rs. 15,000
D. Rs. 9,000
Select an option to see the answer and solution.
Grouping of similar items and transferring those to the respective accounts is known as:
A. Journalizing
B. Ledger adjustment
C. Posting
D. Preparation of trial balance
E. Passing of adjustment entries
Select an option to see the answer and solution.
Which of the following transactions involving the issuance of shares does not come within the definition of a 'share based payment' under Ind AS-102?
A. Employee share purchase plans
B. Employee share option plans
C. Share based payment relating to an acquisition of a subsidiary
D. Share appreciation rights
Select an option to see the answer and solution.
"Goods cost in transit" is an overhead of
A. Sales
B. Factory
C. Office
D. Delivery
Select an option to see the answer and solution.