Manager is provided 10% commission on net profit after charging such commission. If profit before commission is Rs. 77,000, then what is due/payble commission?
A. Rs. 7,000
B. Rs. 7,700
C. Rs. 8,555
D. Rs. 8,000
Select an option to see the answer and solution.
All the centers of profit for an airline company except one
A. Magazine in flight
B. Sale of goods
C. Maintenance of the airplane
D. Ticket sales
Select an option to see the answer and solution.
The balance of Forfeited share Account, after the reissue of forfeited shares, is transferred to:
A. Capital Redemption Reserve Account
B. General Reserve Account
C. Capital Reserve Account
D. Profit and Loss Account
Select an option to see the answer and solution.
Which of the following is not a cash inflow?
A. Decrease in creditors
B. Decrease in debtors
C. Issue of shares
D. Sale of a fixed asset
Select an option to see the answer and solution.
Match the following.
List-I
List-II
a. Partly paid preference share
1. Premiumon redemption of preference shares
b. Capital redemption reserve
2. Current liabilities
c. Security premium
3. Redemption out of free reserve
d. Unclaimed dividend
4. Can not be redeem
A. a-4, b-3, c-2, d-1
B. a-2, b-1, c-4, d-3
C. a-4, b-3, c-1, d-2
D. a-4, b-1, c-2, d-3
Select an option to see the answer and solution.
As per AS-14, purchase consideration is payable to
A. debentureholders and creditors
B. shareholders and creditors
C. shareholders and debentureholders
D. shareholders
Select an option to see the answer and solution.
Gautam and Mahavir are partners in partnership firm sharing profits and losses 5 : 3. They admitted navin for 5 1 th share. What will be new profit sharing ratio of partners?
A. 5 : 3 : 1
B. 5 : 3 : 2
C. 5 : 3 : 3
D. None of the above
Select an option to see the answer and solution.
A change in the registered office of the company from one State to another can be effected by:
A. A resolution of the board of directors
B. A resolution passed in the General Meeting of the Company
C. A special resolution of the company and approval of the Central Government
D. A special resolution and confirmation of the company Law Board
Select an option to see the answer and solution.
Which one of the following is source of funds:
A. Repayment of the long term loan
B. Increase in Credit sales
C. Increase in inventory
D. Issue of new shares
Select an option to see the answer and solution.
Which of the following is correct equation?
A. Opening stock + closing stock - purchases = cost of goods sold
B. Opening stock + purchases - closing stock = cost of goods sold
C. Purchases + closing stock - opening stock = cost of goods sold
D. Closing stock - Purchases - opening stock = Cost of goods sold
Select an option to see the answer and solution.
The surplus or deficit revealed by income and expenditure account is transferred to:
A. Receipts and payments account
B. Profit and loss account
C. Capital account
D. Capital fund
Select an option to see the answer and solution.
When dividend is actually received on due date
A. the pro-rata amount relating the period before the date of acquisition is entered in the income column (Cr) of the following investment account
B. the pro-rata amount relating to the period after the date of acquisition is entered in the income column (Cr) of the investment account
C. the entire amount is entered in the income column (Dr) of the investment account
D. the entire amount is entered in the capital column (Cr) of the investment account
Select an option to see the answer and solution.
If the cost of goods sold is Rs. 1,00,000, the value of opening stock is Rs. 20,000 and closing stock is Rs. 80,000, then the stock turnover ratio will be:
A. 5 times
B. 4 times
C. 2 times
D. 1 times
Select an option to see the answer and solution.
Which of the following statements is not true?
A. An expenditure intended to benefit the current year is revenue expenditure
B. Amount paid for acquiring goodwill is capital expenditure
C. Wages paid for the installation of a new machine is usually debited to wages account
D. Revenue expenditure is not intended to benefit future period
Select an option to see the answer and solution.
Premium on issue of equity shares is:
A. Capital income
B. Revenue income
C. Incidental income
D. None of these
Select an option to see the answer and solution.
Inventory Turnover Ratio is:
A. Sales/closing stock
B. Cash sales/average stock
C. Cost of sales/average stock
D. Cost of sales/closing stock
Select an option to see the answer and solution.
When a partner is guilty of fraud or negligence within the scope of his authority:
A. Only he will be liable for his act
B. He can be expelled
C. All partners are liable if there is an agreement to this effect
D. All partners are liable even if there is no such agreement
Select an option to see the answer and solution.
Underwriting commission and brokerage on the issue of shares cannot exceed the following percent of issue price of shares:
Select an option to see the answer and solution.
The balance of DDR or Deposit Fund account is transferred to
A. Profit & Loss
B. General Reserve Account
C. Deposit Fund Investment Account
D. None of the above
Select an option to see the answer and solution.
Which one of the following is a capital expenditure:
A. Painting delivery truck at a cost of Rs. 1,000
B. Spent Rs. 250 for repairs in building
C. Purchase of pencil sharpener
D. Purchase of a type-writer
Select an option to see the answer and solution.