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[#2261] A machine was purchased for Rs. 1,000 and its life was estimated to be 3 years and at the end of life its book value will be Rs. 512. If depreciation is calculated according to written down value method. The rate of depreciation would be:

(A) 25%

(B) 15%

(C) 20%

(D) 10%

Correct Answer

(C) 20%

[#2262] Premium on issue of shares is shown in balance sheet as:

(A) An asset

(B) A liability

(C) An expense

(D) A revenue

Correct Answer

(B) A liability

[#2263] Bank account is . . . . . . . . on receipt of first call.

(A) Debit

(B) Credit

(C) Debit or Credit

(D) None of the above

Correct Answer

(A) Debit

[#2264] If the average recovery period is 15 days and the average book receipts are Rs. 45,000, then what will be the total annual credit sales?

(A) Rs. 10,80,000

(B) Rs. 16,20,000

(C) Rs. 6,75,000

(D) Rs. 1,87,500

Correct Answer

(A) Rs. 10,80,000

[#2265] Interest on investments received Rs. 500 which includes Rs. 100 in respect of interest accrued in the preceding year. What amount will be posted in the Income and expenditure Account:

(A) Rs. 100

(B) Rs. 500

(C) Rs. 600

(D) Rs. 400

Correct Answer

(D) Rs. 400