Accounting - Study Mode

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[#1066] Manager's commission is given at the rate of 10% on the profits after giving commission to him. If the profit before giving commission is Rs. 1,54,000, then payable commission will be

(A) Rs. 14,000

(B) Rs. 15,000

(C) Rs. 16,000

(D) None of the above

Correct Answer

(A) Rs. 14,000

[#1067] The relationship between liquidity and risk is

(A) Direct

(B) Inverse

(C) No relationship

(D) None of these

Correct Answer

(B) Inverse

[#1068] If the fully paid-up shares of Rs. 80,000 are issued to sellers in consideration of net assts of Rs. 60,000 the balance of Rs. 20,000 will be

(A) Debited to profit and loss account

(B) Debited to Goodwill account

(C) Credited to capital reserve account

(D) Eradiated to security premium account

Correct Answer

(B) Debited to Goodwill account

[#1069] A, B and C start a business with each investing Rs. 20,000. After 5 months, A withdrew Rs. 6,000, B withdrew Rs. 4,000 and C invested an additional Rs. 6,000. At the end of the year, a total profit of Rs. 69,900 was recorded. Find the share of each

(A) Rs. 20,400, Rs. 20,500, Rs. 18,700

(B) Rs. 21,500, Rs. 22,600, Rs. 21,700

(C) Rs. 20,500, Rs. 21,200, Rs. 28,200

(D) Rs. 21,900, Rs. 22,700, Rs. 27,300

Correct Answer

(C) Rs. 20,500, Rs. 21,200, Rs. 28,200

[#1070] Furniture of book value of Rs. 1,500 was sold for Rs. 600 and the new fixture of Rs. 1,000 was purchased and carriage of Rs. 25 paid. The amount of capital expenditure will be:

(A) Rs. 1,000

(B) Rs. 1,025

(C) Rs. 900

(D) Rs. 1,500

Correct Answer

(B) Rs. 1,025