Accounting - Study Mode
[#1796] On account purchases of goods at a current ratio of 2 : 1
Correct Answer
(B) Decrease current ratio
[#1797] Return on Investment (ROI) is computed as
Correct Answer
(A) Net Profit Ratio × Capital Turnover Ratio
[#1798] According to the profit and loss account, the net profit for the year is Rs. 1,50,000. The total interest on partner's capital is Rs. 18,000 and, interest on partner's drawings is Rs. 2,000. The net profit as per profit and loss appropriation account will be
Correct Answer
(D) Rs. 1,34,000
[#1799] A and B are partners sharing profits and losses in the ratio 3 : 1. They decided to admit C. C will be given $${frac{1}{4}^{{ ext{th}}}}$$ share in future profits of the firm which he takes from A and B in ratio 2 : 1. New profit sharing ratio will be:
Correct Answer
(B) 7 : 2 : 3
[#1800] Subscriptions outstanding 31 st December, 1993 Rs. 200 Subscriptions received in advance in year 1993: 1994 ⇔ 300 1995 ⇔ 100 Total subscriptions received during 1994 Rs. 5,800 Subscriptions outstanding on 31 st December, 1994: 1993 ⇔ 50 1994 ⇔ 250 Subscriptions received in advance in 1994: 1995 ⇔ 350 1996 ⇔ 150 Subscriptions to be shown in Income and Expenditure Account for the year ended 31 st December, 1994 is:
Correct Answer
(B) Rs. 5,700