Q. Which of the following reserves which can be utilised to make partly paid shares into fully paid up:
✅ Correct Answer: (D)
capital reserve from sale of fixed assets in cash
Financial Accounting 2 MCQs and Notes
Q. Right share are not offered to the existing equity shareholders if:
✅ Correct Answer: (D)
both a and b.
Q. When a partner dies, firm will receive the:
✅ Correct Answer: (D)
full amount of policy
Q. Section 37 of partnership act provided interest on the amount left by retiring or decreased partner at:
✅ Correct Answer: (C)
6%
Q. When good will is brought in cash by new partner, method is known as:
✅ Correct Answer: (A)
premium method
Q. For any decrease in the value of liability, revolution A/c is to be:
✅ Correct Answer: (B)
credited
Q. A is drawing Rs. 500 regularly on the 16th of every month, he will have to pay interest in a year on Rs. 6000 for the total period of @ given rate of interest):
✅ Correct Answer: (B)
6 months
Q. Old profit sharing ratio minus new profit sharing ration is equal to:
✅ Correct Answer: (A)
sacrificing ratio
Q. A credit balance on a partner’s current A/c is.
✅ Correct Answer: (B)
part of capital