Accounting - Study Mode

[#1996] If out of net annual income of the year Rs. 42,000 the preference dividend and equity dividend paid are Rs. 7,000 and Rs. 24,000 respectively, and total equity capital be Rs. 1,40,000 the return on equity capital will be:
Correct Answer

(C) 25%

[#1997] The basic principle of accounting "debit the receiver and credit the giver" is applicable to
Correct Answer

(C) Personal account

[#1998] Which of the following items should not be entered in Receipts and Payments Account of a club:
Correct Answer

(B) Loss on the sale of used asset

[#1999] An increase in current liabilities in the schedule of changes in working capital shows
Correct Answer

(C) decrease in working capital

[#2000] No journal entry is required to be passed when there is
Correct Answer

(B) Normal loss

Explanation

Solution: No journal entry is required to be passed when there is Normal loss. Normal loss increases the cost of production of the usable goods realized.