Accounting - Study Mode
[#1216] The closing stock of a sports club was of cricket bats worth Rs. 1,000. Bats worth 6,000 were used during the year. The opening stock of bats at the beginning was Rs. 800. Which of the following sentence is correct?
Correct Answer
(D) Bats costing Rs. 5,800 were distributed during the year
[#1217] When goodwill is raised in the books, the capital accounts of the old partners are credited in:
Correct Answer
(B) old profit sharing ratio
[#1218] Which of the following are the motives of mergers? Indicate the correct answer: 1. Gain the economies of scale. 2. Utilize under-utilized resources. 3. Break the monopoly. 4. Reduce tax liability
Correct Answer
(B) 1, 2 and 4
[#1219] Under capitalisation method, goodwill is calculated by
Correct Answer
(D) Super profit + Expected rate of return
[#1220] Arrange the following in correct sequence in the event of dissolution of a partnership firm. 1. If surplus, it is distributed among the partners. 2. The assets of the firm are realised. 3. Amount realised is applied towards repayment of liabilities to outsiders and loan taken from partners. 4. Capital contributed by partners is repaid. Select the correct answer:
Correct Answer
(C) 2, 3, 4, 1