Accounting - Study Mode
[#771] In a business net assets on 1 st January are Rs. 6,000 and on 31 st January are Rs. 7,500. If the withdrawals by the owner during January are Rs. 1,000 the net income for January is:
Correct Answer
(B) Rs. 2,500
[#772] Shares issued to promoters for consideration other than cash is debited to-
Correct Answer
(B) Goodwill account
[#773] On the death of a partner, the amount received from Joint life policy should be credited to the capital accounts of
Correct Answer
(C) all the partners
[#774] Capital employed in a business is Rs. 1,50,000. Profits are Rs. 50,000 and the normal rate of profit is 20%. The amount of goodwill by capitalisation method will be:
Correct Answer
(A) Rs. 1,00,000
[#775] Which of the following is true? i. Balance sheet is alway sprepared from the point of view of the business, but not from the point of view of the owners. ii. The financial relationship of the business to its owners is shown in the balance sheet. iii. Balance sheet is always related to a period of time.
Correct Answer
(A) i and ii