Accounting - Study Mode
[#1121] In holding companies dividends received out of profits of the subsidiary companies must be:
Correct Answer
(B) Credited to investment account
[#1122] When a firm is dissolved, goodwill account is closed by transferring to
Correct Answer
(D) Realisation Account
[#1123] Reconstruction of a company takes place when 1. the company is undercapitalised. 2. company has incurred heavy losses which must be written off. 3. the company is overcapitalised. Select the correct answer:
Correct Answer
(C) Both 2 and 3
[#1124] The single accounting system is
Correct Answer
(D) An incomplete accounting system
[#1125] A and B are partners sharing profits and losses in the ratio of 1 : 2. They admit c and agree to give him $$frac{1}{5}$$ of the share. The new profit sharing ratio will be:
Correct Answer
(D) 4 : 8 : 3