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[#541] Ram of Allahabad filed a petition in the court for adjudication as insolvent. At that time one month's salary due to five clerks amounted to Rs. 2,000, one month's wages due to ten workers amounted to Rs. 1,500, rent and rates due amounted to Rs. 500. Income tax due amounted to Rs. 1,200 and one month's rent due amounted to Rs. 1,000. The amount of preferential creditors would be:

(A) Rs. 2,000

(B) Rs. 3,200

(C) Rs. 4,200

(D) Rs. 6,200

Correct Answer

(D) Rs. 6,200

[#542] Outstanding wages will be classified as:

(A) capital expenditure

(B) Revenue expenditure

(C) Deferred revenue expenditure

(D) None of the above

Correct Answer

(B) Revenue expenditure

[#543] According to Garner Vs. Murray in absence of any contract to contrary deficiency arising on account of a partner becoming insolvent shall be borne by solvent partners in their

(A) Profit and loss ratio

(B) Capital ratio obtained after dissolution of firm

(C) Capital ratio before the dissolution of firm

(D) Equal ratio

Correct Answer

[#544] Which one of the following statements is not true?

Correct Answer

(B) Goodwill or Capital reserve arises only when the amalgamation is in the nature of merger
(H) Registration of partnership is compulsory
(I) The job of book-keeping is analytical in nature
(O) Higher operating ratio indicates higher profits

[#545] Redeemable preference shares of Rs. 1,00,000 are redeemed at a premium of 5% for which fresh equity shares of Rs. 40,000 are issued at par. What amount should be transferred to Capital Redemption Reserve account:

(A) Rs. 1,05,000

(B) Rs. 60,000

(C) Rs. 40,000

(D) Rs. 0

Correct Answer

(B) Rs. 60,000