A, B and C are partners. They admit D as a partner and gurantee that his share of profit shall not be less than Rs. 20,000 p.a. Profits are to be shared in the ratio of 4 : 3 : 3 : 2 respectively. If total profits for a year were Rs. 96,000, A's share of profits will be:
A. Rs. 30,400.00
B. Rs. 32,000.00
C. Rs. 33,777.78
D. Rs. 24,000.00
Select an option to see the answer and solution.
While calculating purchase price, the following values of assets are considered
A. Book value
B. New values fixed
C. Average values
D. Market values
Select an option to see the answer and solution.
Given:
A. Rs. 20,000
B. Rs. 4,000
C. Rs. 10,000
D. Rs. 12,000
Select an option to see the answer and solution.
A retiring partner continues to be liable for obligations incurred after his retirement if
A. Unpaid amount is transferred to his loan account
B. He does not givea public notice
C. He starts a similar business elsewhere
D. In all the situations till he survives
Select an option to see the answer and solution.
Realization account is prepared in a partnership firm:
A. In case a partner takes leave from the firm
B. In case of death of partner
C. In case of admission of a partner
D. In case of dissolution of a firm
Select an option to see the answer and solution.
Which one of the following is not a method of valuation of shares?
A. Asset Valuation Method
B. Yield Valuation Method
C. Super Profit Method
D. None of these
Select an option to see the answer and solution.
Variable cost ratio is 30% fixed cost is Rs. 1,26,000 then the break even point will be
A. Rs. 1,80,000
B. Rs. 1,42,200
C. Rs. 1,63,800
D. Rs. 37,800
Select an option to see the answer and solution.
Which of the following is possible for a company under section 94 to alter its share capital
A. Increase in share capital by issuing new shares
B. Converting fully paid-up shares into stock
C. Sub-division of share of larger denominations into smaller demonization
D. Cancellation of shares to reduce share capital
Select an option to see the answer and solution.
In partnership, unrecorded liability is shown in new Balance Sheet in
A. Assets side
B. Liabilities side
C. Both sides
D. None of the above
Select an option to see the answer and solution.
If nothing otherwise mentioned, on admission of a new partner, the sacrificing ratio is same as the
A. old ratio
B. new ratio
C. gaining ratio
D. capital ratio
Select an option to see the answer and solution.
A 'Sale and lease back' arrangement is more suitable for a lessee having
A. liquidity crisis
B. surplus fund
C. high profit
D. no-profit no-loss
Select an option to see the answer and solution.
Changes in Sales Changes in Profit × 100 = . . . . . . . .
A. Break Even Point
B. P/V Ratio
C. Contribution
D. % increase in sales
E. Margin of Safety
Select an option to see the answer and solution.
The nature of 'Commission' received in advance account is
A. Real account
B. Unreal account
C. Personal account
D. None of the above
Select an option to see the answer and solution.
X Ltd. forfeited 40 share of Rs. 10 each and on which Rs. 4 per share were paid. If the forfeited share are reissued as Rs. 8 per share paid up, what is the minimum price the company must charge?
A. Rs. 2 per share
B. Rs. 4 per share
C. Rs. 8 per share
D. Rs. 10 per share
Select an option to see the answer and solution.
If a share of Rs. 10 Issued at a discount of 10%, on which full amount has been called up, is forfeited for non-payment of final call of Rs. 2, the share capital account should be debited by:
A. Rs. 8
B. Rs. 9
C. Rs. 10
D. Rs. 11
Select an option to see the answer and solution.
A prospectus for inviting subscription in shares or debentures can be issued only by
A. Public Company
B. Private Company
C. Both of the above
D. None of the above
Select an option to see the answer and solution.
If the face value of share is Rs. 10, earning per share is Rs. 4 and dividend per share is Rs. 2, then dividend payout ratio will be
Select an option to see the answer and solution.
Statement I These is no standard method for environmental accounting.Statement II Environmental accounting is applied to textile industries.
A. Statement I is true, but Statement II is false
B. Statement I is false, but Statement II is true
C. Both statements are true
D. Both statements are false
Select an option to see the answer and solution.
A and B are partners sharing profits in the firm in the ratio of 2 : 3. Goodwill appears in the books of firm at Rs. 10,000. C joins the firm for 5 1
A. Rs. 50,000
B. Rs. 40,000
C. Rs. 75,000
D. Rs. 65,000
Select an option to see the answer and solution.
Good worth Rs. 500 have been taken by the proprietor for his personal use, for which no entry has been passed in the books. This is an
A. error of compensation
B. error of principle
C. error of commission
D. error of omission
Select an option to see the answer and solution.
