Accounting - Study Mode

[#2086] When a partner is guilty of fraud or negligence within the scope of his authority:
Correct Answer

(D) All partners are liable even if there is no such agreement

[#2087] Underwriting commission and brokerage on the issue of shares cannot exceed the following percent of issue price of shares:
Correct Answer

(C) 5%

[#2088] The balance of DDR or Deposit Fund account is transferred to
Correct Answer

(B) General Reserve Account

[#2089] Which one of the following is a capital expenditure:
Correct Answer

(D) Purchase of a type-writer

[#2090] The standard format of Journal does not include which of the following?
Correct Answer

(A) Assets column

Explanation

Solution: The standard format of Journal does not include Assets column. An asset purchased on account is not recorded in the purchase journal. But many are of opinion to record all credit transactions in multi-column purchase journal.