Accounting - Study Mode

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[#1631] In the case of retirement of a partner, the total amount of goodwill is credited to the account of:

(A) retiring partners only

(B) the remaining partners only

(C) all partners

(D) none of the above

Correct Answer

(C) all partners

[#1632] An asset is purchased for Rs. 50,000 on which depreciation is charged according to straight line method. The useful life of asset is 10 years and its residual value is Rs. 10,000. The rate of depreciation will be

(A) 20%

(B) 18%

(C) 10%

(D) 8%

Correct Answer

(D) 8%

[#1633] Income and Expenditure accounts shows-

(A) Gross profit

(B) Net profit

(C) Financial condition

(D) None of the above

Correct Answer

(D) None of the above

[#1634] Match the items of the following two lists List-I List-II a. Zero-base budgeting 1. Internal reconstruction b. Goodwill or capital reserve 2. Earnings per share c. Reduction of capital 3. Control of expenditure d. Basic and diluted 4. Business combination

(A) a-3, b-4, c-2, d-1

(B) a-4, b-3, c-1, d-2

(C) a-4, b-1, c-3, d-2

(D) a-3, b-4, c-1, d-2

Correct Answer

(D) a-3, b-4, c-1, d-2

[#1635] Match List-I with List-II and select the correct answer: List-I List-II a. Cost of pulling down an old structure preparatory to construct a new one 1. Capital loss b. Purchase of a new spark plug for an old car 2. Revenue loss c. Expenditure incurred on Research and Development 3. Capital expenditure d. Theft by cashier during business hours 4. Revenue expenditure e. Motor car burnt during a riot 5. Deferred revenue expenditure

(A) a-4, b-3, c-5, d-1, e-2

(B) a-3, b-4, c-5, d-2, e-1

(C) a-2, b-5, c-3, d-1, e-4

(D) a-5, b-4, c-3, d-2, e-1

Correct Answer

(B) a-3, b-4, c-5, d-2, e-1