AB Co. Ltd. forfeited Rs. 800 on 100 shares of Rs. 10 each fully paid. Out of the forfeited shares, 50 shares were issued for Rs. 5 each as fully paid. The amount to be transferred to capital reserve will be:
A. Rs. 800
B. Rs. 150
C. Rs. 650
D. Rs. 350
Select an option to see the answer and solution.
Which of the following is not correct in case of 'stock' of a company?
A. is always fully paid
B. can be directly issued to the public by the company
C. do not bear distinctive number
D. may be of unequal amounts
Select an option to see the answer and solution.
X and Y are partners in a firm. They withdrew @ Rs. 1,500 and Rs. 1,000 respectively on 15th day of every month for all the twelve months during 2009. Interest on drawings is chargable @ 10% per annum. What would be the interest on drawings respectively?
A. Rs. 1,800 and Rs. 1,200
B. Rs. 900 and Rs. 600
C. Rs. 18,000 and Rs. 12,000
D. Rs. 150 and Rs. 100
Select an option to see the answer and solution.
A partner in partnership
A. Cannot transfer his interest to an outsider
B. Can transfer his interest to an outsider with consent of majority of partners
C. Can transfer his interest to an outsider without consent of other partners
D. Can transfer his interest to an outsider with the consent of all partners
Select an option to see the answer and solution.
The going concern concept assumes the continuance of a business to
A. Infinite period
B. Reasonably long term
C. Short term
D. One year
Select an option to see the answer and solution.
Net purchases Rs. 72,000, Sales Rs. 76,000, Sales returns Rs. 6,000 Cost of goods sold Rs. 60,000, the amount of gross profit will be
A. Rs. 10,000
B. Rs. 12,000
C. Rs. 16,000
D. Rs. 40,000
Select an option to see the answer and solution.
If closing stock is shown in Trial Balance, then it should be shown in
A. Trading A/c
B. Balance Sheet
C. Cash A/c
D. Profit & Loss A/c
Select an option to see the answer and solution.
The term 'Funds' as used in Funds Flow Analysis means
A. Cash
B. Current assets
C. Current liabilities
D. Current assets (-) Current liabilities
Select an option to see the answer and solution.
Dividends are usually paid on
A. Paid up capital
B. Authorised capital
C. Called up capital
D. Issued capital
Select an option to see the answer and solution.
X Ltd purchased 70% of the shares of Y Ltd at a price of Rs. 1,00,000. The share capital of Y Ltd was Rs. 70,000, and its accumulated profits amounted to Rs. 90,000. What would be the amount of minority interest in the consolidated balance sheet?
A. Rs. 25,000
B. Rs. 70,000
C. Rs. 1,00,000
D. Rs. 40,000
Select an option to see the answer and solution.
The sub-division of shares does not result in . . . . . . . . of capital.
A. reduction
B. increase
C. sub-division
D. none of these
Select an option to see the answer and solution.
The accounts that are related with income expenditure, profit and loss are called
A. Real account
B. Nominal account
C. Personal account
D. None of the above
Select an option to see the answer and solution.
Match
List-I with
List-II (subject) and select the correct answer:
List-I List-II
a. Preliminary expenses
1. Revenue expenditure
b. Interest on loan for business
2. Revenue receipts
c. Life subscription
3. Deferred revenue expenditure
d. Interest on bank deposits
4. Capital Receipts
A. a-4, b-1, c-2, d-3
B. a-3, b-1, c-4, d-2
C. a-4, b-3, c-2, d-1
D. a-3, b-2, c-1, d-4
Select an option to see the answer and solution.
In case of dissolution of the partnership, if a partner's capital account shows a debit balance and he subsequently turns out to be insolvent, what will be the accounting treatment? (Consider the case laws)
A. The loss has to be borne in the capital ratio by the solvent partners
B. The loss has to be borne in the existing profit sharing ratio
C. The loss has to be borne in the adjusted profit sharing ratio after insolvency
D. The loss has to be borne in the sacrificing ratio of the solvent partners
E. The loss has to be equally distributed among the solvent partners
Select an option to see the answer and solution.
Which of the following term is used to describe the process of writing down the long term investments in intangible assets:
A. Amortisation
B. Depreciation
C. Depletion
D. Dilapidation
Select an option to see the answer and solution.
A company may issue, at a discount share in the company of a class already issued if:
A. It is authorised by a resolution passed at the General Meeting and approved by the Company Law Board
B. At least one year has elapsed since the receipt of the certificate to commence business
C. The particulars of the discount allowed on the issue of shares are clearly mentioned in the prospectus issued
D. All the above conditions are fulfilled
Select an option to see the answer and solution.
Capital intensive industries cause:
A. Reduction in overall capital formation
B. Increase in the capital
C. Increase in future employment potential
D. Increase in tax revenue
Select an option to see the answer and solution.
Share premium money can be used for
A. Payment of dividend
B. Writing off goodwill
C. Issue of fully paid bonus shares
D. None of the above
Select an option to see the answer and solution.
Within how many days minimum subscription should be received?
Select an option to see the answer and solution.
Secret reserves may be created by
A. under valuation of liabilities only
B. under valuation of assets only
C. over valuation of assets only
D. over valuation of liabilities and under valuation of assets
Select an option to see the answer and solution.
