When investment in private debentures is cancelled then this profit/loss is credited/ debited to
A. Debenture Redemption fund A/c
B. General reserve A/c
C. Capital reserve A/c
D. Any of the above A/c
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Concept of conservation refers to taking into account:
A. All profit
B. Only cash profit
C. Only profit realized
D. Profit realized and all possible losses
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The premium received on issue of Shares cannot be used for
A. Issue of fully paid bonus shares to the members of the company
B. Writing off discount allowed on issue of debendtures of the company
C. Paying remuneration to promoters for their services
D. Paying premium payable on the redemption of debentures of the company
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Underwriting commission is classified as
A. Capital Expenditure
B. Capital loss
C. Deferred Revenue Expenditure
D. Capitalized Expenditure
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Income tax deducted from interest paid on debenture is shown in
A. Asset side of balance sheet
B. Liabilities side of balance sheet
C. Credit side of profit and loss account
D. Debit side of profit and loss account
Select an option to see the answer and solution.
Assertion (A) When a company earns profit prior to its incorporation, it is called capital profit.
Reason (R) Capital profit cannot be used for distribution as dividend to the shareholders.
A. (A) is true, but (R) is false
B. Both (A) and (R) are false
C. (A) is false, but (R) is true
D. Both (A) and (R) are true
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Environmental management accounting focuses on
A. natural resources stock
B. environmental cost information
C. environmental liability costs
D. none of the above
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A limited company forfeited 100 shares of Rs. 10 each fully called up on which Rs. 4 per share was paid up. The company reissued 50 shares at the rate of Rs. 8 each. The amount transferred to Capital Reserve will be
A. Rs. 500
B. Rs. 200
C. Rs. 250
D. Rs. 100
Select an option to see the answer and solution.
Premium on issue of shares can be used for:
A. Issue of bonus shares
B. Payment of dividends
C. Payment of operating expenses
D. Redemption of debentures
Select an option to see the answer and solution.
Which of the following is not a book of primary entry?
A. Ledger
B. Cash book
C. Sales book
D. Bills payable book
Select an option to see the answer and solution.
Which of the following is not true?
A. When all the forfeited shares are not reissued, the forfeited shares account will also show credit balance equal to gain on forfeiture of shares not yet reissued
B. Losson the reissue of shares cannot be more than the gain on forfeiture of those shares
C. At the time of forfeiture of shares, the securities premium is debited along with share capital when the premium has not been received
D. When forfeited shares are issued at a premium, the premium amount is credited to the capital reserve account
Select an option to see the answer and solution.
Which method of depreciation is suggested for coal mines:
A. Diminishing Balance Method
B. Fixed Instalment Method
C. Sum of Years Digits Method
D. Depletion Method
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In case of sub-lease royalty earned by the lessor is credited to
A. Sub-Lease Account
B. Profit and Loss Account
C. Short Working Account
D. Royalty Receivable Account
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Rs. 500 posted to wages account instead of machinery account. Identify the type of error?
A. Clerical error
B. Error of omission
C. Error of principle
D. Recording error
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"Discount" on issue of debenture is a:
A. Real asset
B. Fictitious asset
C. Fixed asset
D. Current asset
Select an option to see the answer and solution.
Which of the following is not a cash flow?
A. Sale of fixed assets
B. Purchase of machinery on credit
C. Issue of debentures
D. Cash from business operations
Select an option to see the answer and solution.
P, Q and R are equal partners with fixed capitals of Rs. 5,00,000, Rs. 4,00,000 and Rs. 3,00,000, respectively. After closing the accounts for the year ending 31st March 2019, it was discovered that the interest on capitals was provided @ 7% per annum instead of 9% per annum. In the adjusting entry
A. P will be credited with Rs. 2,000 and Q will be debited with Rs. 2,000
B. P will be debited with Rs. 2,000 and Q will be credited with Rs. 2,000
C. P will be debited with Rs. 2,000 and R will be credited with Rs. 2,000
D. P will be credited with Rs. 2,000 and R will be debited with Rs. 2,000
Select an option to see the answer and solution.
Which of the following transactions results in flow of funds:
A. Bills issued to creditors
B. Shares issued for machinery
C. Cash realised from debtors
D. Debentures issued partly for cash and partly for raw materials
Select an option to see the answer and solution.
Subscription received in 1998:
For the year 1997
For the year 1998
For the year 1999
Subscription outstanding on 31st December, 1998 was Rs. 4,000. What amount of subscription will appear in income and Expenditure account of 1998:
A. Rs. 20,000
B. Rs. 19,000
C. Rs. 22,000
D. Rs. 16,000
Select an option to see the answer and solution.
Bonus shares mean shares issued to:
A. Workers in lieu of their share in profit
B. Existing equity shareholders
C. Existing preference shareholders
D. Existing equity shareholders and preference shareholders both
Select an option to see the answer and solution.