Accounting - Study Mode

[#1081] Discount allowed on issue of shares is an example of
Correct Answer

(B) Deferred Revenue Expenditure

[#1082] Amount set apart to meet probable losses on account of bad debts is a:
Correct Answer

(C) Provision

[#1083] Assertion (A) Sinking fund is a charge against profit and loss account. Reason (R) Sinking fund is created for repayment of a long-term liability.
Correct Answer

(B) Both (A) and (R) are true

[#1084] In case of dissolution of a firm, in which order the following creditors should be paid? 1. Creditors having floating charge on the assets of the firm 2. Remuneration of liquidator 3. Provident fund money payable to employees 4. Bank overdraft
Correct Answer

(B) 1, 3, 4, 2

[#1085] When the goods are returned to a supplier
Correct Answer

(A) A Debit note is sent to him

Explanation

Solution: When the goods are returned to a supplier a Debit note is sent to him which indicates that his/her account has been debited with the repective amount.