Accounting - Study Mode
[#1486] Insurance expenses paid to bring an equipment from the place of purchase to the place of installation is a type of
Correct Answer
(B) Capital expenditure
[#1487] In case of Installment Payment System, which one of the following statements is not true?
Correct Answer
(B) On default of payment of installment, seller has a right to take back the goods
[#1488] If sales is Rs. 8,00,000, cost of sales is Rs. 4,80,000 and indirect expenses is Rs. 1,20,000, then the net profit ratio will be:
Correct Answer
(C) 25%
[#1489] For the purpose of final accounts, stock is normally valued according to:
Correct Answer
(A) cost or market value whichever is lower
[#1490] X, Y and Z are equal partners with fixed capitals of Rs. 5,00,000, Rs. 3,00,000 and Rs. 1,00,000, respectively. After closing the accounts for the year ending 31 st March 2019, it was discovered that the interest on capitals was provided @ 6% per annum instead of 5% per annum. In the adjusting entry
Correct Answer
(A) X was debited with Rs. 2,000 and Z was credited with Rs. 2,000