Accounting - Study Mode

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[#2241] A, B and C are three equal partners. D is admitted for $${frac{1}{4}^{{ ext{th}}}}$$ share. What is the sacrificing ratio?

(A) 1 : 1 : 1

(B) 1 : 2 : 1

(C) 2 : 1 : 1

(D) 1 : 1 : 2

Correct Answer

(B) 1 : 2 : 1

[#2242] Preparation of consolidated Balance Sheet of Holding Company and its subsidiary company is done as per

(A) AS 11

(B) AS 21

(C) AS 22

(D) AS 23

Correct Answer

(B) AS 21

[#2243] Which one of the following ratios is the indicator of the long term solvency of a firm?

(A) Acid test ratio

(B) Debit equity ratio

(C) Time interest earned ratio

(D) Return on investment ratio

Correct Answer

(B) Debit equity ratio

[#2244] A Ltd issued a prospectus inviting applications for 2,000 shares. Applications were received for 3,000 shares and pro-rata allotment was made on the applications of 2,400 shares. If A has been allotted 40 shares, how many shares he must have applied for?

(A) 40

(B) 44

(C) 48

(D) 52

Correct Answer

(C) 48

[#2245] Which one of the following will not affect the working capital?

(A) Realisation of cash from debtors

(B) Sale of plant and machinery in cash

(C) Issue of equity shares

(D) Redemption of debentures

Correct Answer

(A) Realisation of cash from debtors