Accounting - Study Mode

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[#1116] In the books of lessee the unrecouped amount of short workings is transferred to

(A) Royalty Account

(B) Minimum Rent Account

(C) Lessor's Account

(D) Profit and Loss Account

Correct Answer

(D) Profit and Loss Account

[#1117] X and Y were sharing profit and loss of the business in the ratio of 3 : 2. They decided to admit Z, who will get $$frac{1}{3}$$ of X share of profit form X and $$frac{1}{2}$$ of Y share of profit from Y. New profit sharing ratio will be

(A) 3 : 2 : 5

(B) 2 : 1 : 2

(C) 3 : 2 : 1

(D) 3 : 2 : 2

Correct Answer

(B) 2 : 1 : 2

[#1118] ABC Ltd was incorporated with an authorized share capital of Rs. 1,00,000 equity shares of Rs. 10 each. The board of directors decided to allot 10,000 shares credited as fully paid to the promoters of the company for their services. Which account should be debited in the books of ABC Ltd?

(A) Promoter's account

(B) Service's account

(C) Goodwill account

(D) Share capital account

Correct Answer

(C) Goodwill account

[#1119] If vendors are issued fully paid shares of Rs. 12,000 in consideration of net assets of Rs. 9,000, then the balance of Rs. 3,000 will be

(A) credited to Securities Premium A/c

(B) credited to Capital Reserve A/c

(C) debited to Goodwill A/c

(D) debited to Profit and Loss A/c

Correct Answer

(C) debited to Goodwill A/c

[#1120] A customer's cheque returned after being dishonored will be recorded in-

(A) Purchases Return Book

(B) Sales Return Book

(C) Three Column Cash Book

(D) Journal Proper

Correct Answer

(D) Journal Proper