Accounting - Study Mode
[#1806] Direction-The question have two statements. One is labelled as Assertion (A) and the other as Reason (R) . You have to examine both the statements carefully and decide whether Assertion (A) and Reason (R) separately are true and if so then reason is the correct explanation of the assertion. Mark these items on the answer sheet. Assertion (A): Interest payable on working capital should be treated as an item of operating expenses. Reason (R): Interest is the cost of capital used in the business.
Correct Answer
(D) A is wrong but R is correct
[#1807] A firm had a Capital Balance of Rs. 1,00,000 at the beginning of a year. At the end of the year, the firm has total assets of Rs. 1,50,000 and total liabilities of Rs. 70,000. If the total withdrawals during the period were Rs. 30,000, what was the amount of net profit/net loss for the year:
Correct Answer
(A) Rs. 10,000 profit
[#1808] A company issued debentures of Rs. 60,000 at discount of Rs. 3,000 on 1 st April 1996. they are repayable in 3 equal instalments each on 31 st March, every year. The financial year of the company ends on 31 st December every year. How much discount will be written off in the second year:
Correct Answer
(D) Rs. 1,125
[#1809] M. Ltd. forfeited 50 shares of Rs. 100 each issued to X (Rs. 80 called up) on which the allotment money of Rs. 30 and the first call money of Rs. 20 have not been received. The company reissued these shares @ Rs. 90 per share as fully paid up. The amount to be transferred to Capital Reserve Account would be:
Correct Answer
(B) Rs. 1,000
[#1810] Capital, at the beginning of the accounting year, is ascertained by preparing
Correct Answer
(C) Statement of affairs