Accounting - Study Mode
[#2461] In the absence of any contract to the contrary, profit on dissolution of a partnership firm is credited to the partner's capital accounts:
Correct Answer
(C) In their profit sharing ratio
[#2462] Assertion (A): Premium receivedon issue of shares is credited to share premium account but not to profit and loss account. Reason (R): Since share premium is not a trading profit, it is not distributed to shareholders.
Correct Answer
(C) Both (A) and (R) are correct, and (R) is the correct explanation of (A)
[#2463] Total capital employed is equal to:
Correct Answer
(B) fixed assets + net working capital
[#2464] The normal balance of capital account is
Correct Answer
(A) Credit balance
Explanation
Solution: The normal balance of capital account is Credit balance. Normal balance is the side where the balance of the account is normally found. Asset accounts normally have debit balances, while liabilities and capital normally have credit balances. Income has a normal credit balance since it increases capital .
[#2465] The normal balance of asset account is
Correct Answer
(B) Debit balance
Explanation
Solution: The normal balance of asset account is Debit balance. Normal balance is the side where the balance of the account is normally found.