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[#426] Given: Cash in hand: Rs. 10,000 Debtor: Rs. 20,000 Bills receivable: Rs. 5,000 Plant : Rs. 5,000 Creditor: Rs. 15,000 Net Working Capital will be

(A) Rs. 25,000

(B) Rs. 20,000

(C) Rs. 40,000

(D) None of these

Correct Answer

(B) Rs. 20,000

[#427] Average profit of a firm is Rs. 10,000. Firm's capital is Rs. 70,000 and normal return of this business is expected at 10%. By capitalisation method, Goodwill be

(A) Rs. 30,000

(B) Rs. 60,000

(C) Rs. 1,00,000

(D) Rs. 1,70,000

Correct Answer

(A) Rs. 30,000

[#428] As per the SEBI regulation, a minimum of . . . . . . . .% of the issued capital must be subscribed in order to validate a public share issue, failing of which, the issue may be cancelled and may be reissed on a future date.

(A) 75

(B) 80

(C) 85

(D) 90

Correct Answer

(D) 90

[#429] Prepaid rent is associated with:

(A) Nominal account

(B) Personal account

(C) Tangible real account

(D) Intangible real account

Correct Answer

Nominal account

[#430] What is the excess of net assets over consideration paid called?

(A) Capital reserve

(B) Reserve capital

(C) Security premium

(D) Goodwill

Correct Answer

(A) Capital reserve