Accounting - Study Mode

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[#1071] If company A purchases majority shares of company B, what is it called?

(A) Amalgamation

(B) Absorption

(C) Takeover

(D) None of the above

Correct Answer

(C) Takeover

[#1072] The closing balance of the debtors was Rs. 12,000. The sales made to the customers during the year were Rs. 21,500 and Rs. 23,600 were realized from the customers. Debtors opening balance was-

(A) Rs. 33,500

(B) Rs. 14,100

(C) Rs. 9,800

(D) Rs. 33,300

Correct Answer

(B) Rs. 14,100

[#1073] A and B are partners sharing profits in the ratio of 3 : 2. Their books showed goodwill at Rs. 3,000. C is admitted with $${frac{1}{4}^{{ ext{th}}}}$$ share of profit and brings Rs. 10,000 as his capital. But, he is not able to bring in cash for his share of goodwill Rs. 3,000. How will you treat this?

(A) Goodwill is raised by Rs. 12,000

(B) C will remain as debtor for Rs. 3,000

(C) C's A/c is debited for Rs. 3,000

(D) Goodwill is raised by Rs. 9,000

Correct Answer

(C) C's A/c is debited for Rs. 3,000

[#1074] In India, which of the following is prepared on the guidelines of AS-3 (Accounting Standard-3)?

(A) Balance Sheet of a Company

(B) Funds Flow Statement

(C) Cash Flow Statement

(D) Consolidated Financial Statement

Correct Answer

(C) Cash Flow Statement

[#1075] X and Y are partners in a firm who share profits and losses in 2 : 1. their capital balance are Rs. 50,000 and Rs. 30,000 respectively. If Z with consent of Y takes half of the share of X for Rs. 30,000 then Z's capital account will be credited by what amount.

(A) Rs. 25,000

(B) Rs. 5,000

(C) Rs. 15,000

(D) Rs. 20,000

Correct Answer

(A) Rs. 25,000