Accounting - Study Mode
[#2216] After recognition, an entity applies
Correct Answer
(C) Either A or B
[#2217] When a partner is given guarantee lay the other partner, loss on such guarantee will be borne by . . . . . . . .
Correct Answer
(A) partner giving guarantee
[#2218] A and B are partners sharing profits in the ratio of 3 : 2. Their books showed goodwill at Rs. 3,000. C is admitted with $${frac{1}{4}^{{ ext{th}}}}$$ share of profits and brings Rs. 10,000 as his capital. But, he is not able to bring in cash for his share of the goodwill of Rs. 3,000. How will you treat this?
Correct Answer
(D) Goodwill is raised by Rs. 9,000
[#2219] A company cannot issue redeemable preference shares for a period exceeding
Correct Answer
(B) 20 years
Explanation
Solution: A company cannot issue redeemable preference shares for a period exceeding 20 years. A company may issue preference shares which are liable to be redeemed within a period not exceeding twenty years from the date of their issue under section 55 of the Companies Act 2013.
[#2220] The following error will affect the Trial Balance
Correct Answer
(A) Error of partial omission
Explanation
Solution: Error of partial omission will affect the Trial Balance. This error occurs when a transaction that should have been posted as a debit is posted as credit, for example, in a cash sale, sales are debited and cash is credited.