Accounting - Study Mode

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[#716] Double entry system was started in-

(A) India

(B) Italy

(C) England

(D) None of the above

Correct Answer

(B) Italy

[#717] A, B and C are partners in a firm sharing profits in the ratio $$frac{2}{5}:,frac{2}{5}:,frac{1}{5}.$$ xa0 C retires from the firm and his share is bought by A and B in equal ratio. New profit sharing ratio will be.

(A) $${ ext{A}} = frac{1}{2}:{ ext{B}} = frac{1}{2}$$

(B) $${ ext{A}} = frac{3}{5}:{ ext{B}} = frac{2}{5}$$

(C) $${ ext{A}} = frac{2}{5}:{ ext{B}} = frac{3}{5}$$

(D) $${ ext{A}} = frac{1}{3}:{ ext{B}} = frac{2}{3}$$

Correct Answer

(A) $${ ext{A}} = frac{1}{2}:{ ext{B}} = frac{1}{2}$$

[#718] Subsequent expenditures that extend the useful life, improve the quality of output, or reduce operating costs of an existing asset beyond their originally estimated levels are

(A) Capital expenditures

(B) Revenue expenditures

(C) Deferred Revenue expenditures

(D) None of the above

Correct Answer

(A) Capital expenditures

[#719] The rate of discount on issue of shares should not exceed . . . . . . . . % of the nominal value of shares.

(A) 10

(B) 2

(C) 4

(D) 5

Correct Answer

(A) 10

[#720] Which of the following items should be entered in the receipts and payments account of a club? I. Sale of old newspapers II. Loss on sale of some asset III. Payments for investment Select the correct answer using the options given below

(A) I, II and III

(B) I and III

(C) I and II

(D) II and III

Correct Answer

(B) I and III