R. G. Ltd. purchased machinery from K.G. Company for a book value of Rs. 4,00,000. The consideration was paid by issue of 10%. Debenture of Rs. 100 each at a discount of 20%. The debenture account will be credited by– (A) Rs. 4,00,000 (B) Rs. 5,00,000 (C) Rs. 3,20,000 (D) Rs. 4,80,000

R. G. Ltd. purchased machinery from K.G. Company for a book value of Rs. 4,00,000. The consideration was paid by issue of 10%. Debenture of Rs. 100 each at a discount of 20%. The debenture account will be credited by– (A) Rs. 4,00,000 (B) Rs. 5,00,000 (C) Rs. 3,20,000 (D) Rs. 4,80,000  
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X Ltd. purchased a car from Maruti Udyog Ltd. for Rs. 5,00,000. As per agreement Rs. 80,000 was to be paid in cash and the balance by issue of shares of Rs. 10 each at a premium of Rs. 5 per share. How many shares should X Ltd. issue to Maruti Udyog Ltd. for the car ? (A) 30,000 shares (B) 29,000 shares (C) 28,500 shares (D) 28,000 shares

Description : X Ltd. purchased a car from Maruti Udyog Ltd. for Rs. 5,00,000. As per agreement Rs. 80,000 was to be paid in cash and the balance by issue of shares of Rs. 10 each at a premium of Rs. 5 per share. How many ... . for the car ? (A) 30,000 shares (B) 29,000 shares (C) 28,500 shares (D) 28,000 shares

Last Answer : Answer: 28,000 shares

Alfa Company Limited acquired the business of M/s Bharat Traders. The valuation of the items acquired was-building Rs. 1,20,000; machinery Rs. 80,000 and stock-in-trade Rs. 30,000. The company issued in lieu of the above items 800, 10% debentures of Rs. 100 each at par and 15,000 equity shares of Rs. 10 each. How much was the flow of funds in the above transaction ? (A) Rs. 2,30,000 (B) Rs. 1,00,000 (C) Rs. 50,000 (D) Rs. 30,000

Description : Alfa Company Limited acquired the business of M/s Bharat Traders. The valuation of the items acquired was-building Rs. 1,20,000; machinery Rs. 80,000 and stock-in-trade Rs. 30,000. The company issued in lieu of the above items 800, ... ) Rs. 2,30,000 (B) Rs. 1,00,000 (C) Rs. 50,000 (D) Rs. 30,000

Last Answer : Answer: Rs. 30,000

XYZ Ltd. issued 10,000 shares of Rs. 100 each at Rs. 120 per share with Rs. 25 on application, Rs. 45 on allotment including premium, Rs. 20 on first call and Rs. 30 on final call. Govind who held 200 shares did not pay any call money and his shares were forfeited. What is the amount to be credited to Share Forfeiture Account on forfeiture ? (A) Rs. 14,000 (B) Rs. 10,000 (C) Rs. 9,000 (D) Rs. 4,000

Description : XYZ Ltd. issued 10,000 shares of Rs. 100 each at Rs. 120 per share with Rs. 25 on application, Rs. 45 on allotment including premium, Rs. 20 on first call and Rs. 30 on final call. Govind who held 200 shares did not pay ... forfeiture ? (A) Rs. 14,000 (B) Rs. 10,000 (C) Rs. 9,000 (D) Rs. 4,000

Last Answer : Answer: Rs. 10,000

Net Assets of D.Co. for Purchase Consideration worth Rs. 4,00,000. At the time of absorption, the company has paid 32,000 equity shares each of Rs.10 each at 10% premium, then remaining cash will be - (A) Rs. 48,000 (B) Rs. 84,000 (C) Rs. 80,000 (D) Rs. 90,000

Description : Net Assets of D.Co. for Purchase Consideration worth Rs. 4,00,000. At the time of absorption, the company has paid 32,000 equity shares each of Rs.10 each at 10% premium, then remaining cash will be - (A) Rs. 48,000 (B) Rs. 84,000 (C) Rs. 80,000 (D) Rs. 90,000

Last Answer : (A) Rs. 48,000

A machinery is purchased for Rs. 3,00,000 and Rs. 50,000 is spent on its installation. Rs. 5,000 is spent on fuel. What will be the amount of capital expenditure ? (A) Rs. 3,00,000 (B) Rs. 3,50,000 (C) Rs. 3,55,000 (D) None of these

Description : A machinery is purchased for Rs. 3,00,000 and Rs. 50,000 is spent on its installation. Rs. 5,000 is spent on fuel. What will be the amount of capital expenditure ? (A) Rs. 3,00,000 (B) Rs. 3,50,000 (C) Rs. 3,55,000 (D) None of these

Last Answer : Answer: Rs. 3,50,000

A limited company makes a net profit of Rs. 2,00,000 after writing off preliminary expenses amounting to Rs. 20,000 and providing for depreciation on assets amounting to Rs. 40,000 and gain of Rs. 10,000 on sale of a piece of machinery. What are the funds from operation ? (A) Rs. 2,00,000 (B) Rs. 2,40,000 (C) Rs. 2,50,000 (D) Rs. 2,60,000

Description : A limited company makes a net profit of Rs. 2,00,000 after writing off preliminary expenses amounting to Rs. 20,000 and providing for depreciation on assets amounting to Rs. 40,000 and gain of Rs. 10,000 on sale of a piece of ... 2,00,000 (B) Rs. 2,40,000 (C) Rs. 2,50,000 (D) Rs. 2,60,000

Last Answer : Answer: Rs. 2,50,000

From the information given below, calculate Debt service coverage Ratio– Net profit after interest and Tax Rs. 40,000, Depreciation Rs. 5,000, Rate of Income Tax 50%, 10% Mortgage Debentures Rs. 60,000. Fixed Interest Charges Rs. 6,000, Debenture Redemption Fund Appropriation of Outstanding Debentures 10%. (A) 4•06 times (B) 5•06 times (C) 6•06 times (D) 7•06 times

Description : From the information given below, calculate Debt service coverage Ratio- Net profit after interest and Tax Rs. 40,000, Depreciation Rs. 5,000, Rate of Income Tax 50%, 10% Mortgage Debentures Rs. 60,000. Fixed Interest Charges Rs. 6 ... . (A) 4 06 times (B) 5 06 times (C) 6 06 times (D) 7 06 times

Last Answer : Answer: 4•06 times

On 1st April, 2013, Y Ltd. Issued 1000, 12% debentures of Rs. 100 each at a discount of 6%. These debentures are redeemable in five equal annual instalments at the end of each year. What is the amount of discount to be written off in the first year i.e. on 31st March, 2007, through P & L A/c ? (A) Rs. 2000 (B) Rs. 1800 (C) Rs. 1200 (D) Rs. 600

Description : On 1st April, 2013, Y Ltd. Issued 1000, 12% debentures of Rs. 100 each at a discount of 6%. These debentures are redeemable in five equal annual instalments at the end of each year. What is the amount of discount to be written off ... & L A/c ? (A) Rs. 2000 (B) Rs. 1800 (C) Rs. 1200 (D) Rs. 600

Last Answer : Answer: Rs. 1200

The rate of gross profit is 20% on sales and the cost of goods sold is Rs. 1‚00‚000, the amount of gross profit will be– (A) Rs. 30‚000 (B) Rs. 25‚000 (C) Rs. 20‚000 (D) Rs. 16‚667

Description : The rate of gross profit is 20% on sales and the cost of goods sold is Rs. 1‚00‚000, the amount of gross profit will be– (A) Rs. 30‚000 (B) Rs. 25‚000 (C) Rs. 20‚000 (D) Rs. 16‚667

Last Answer : Answer: Rs. 25‚000

The profit of a company (whose capital is divided into 25‚000 shares of Rs. 10 each) for the last three years are : Rs. 50‚000; Rs. 60‚000 and Rs. 40‚000. The fair return on investment is taken at 10% p.a. The value of company’s share will be– (A) Rs. 10 (B) Rs. 20 (C) Rs. 30 (D) Rs. 40

Description : The profit of a company (whose capital is divided into 25‚000 shares of Rs. 10 each) for the last three years are : Rs. 50‚000; Rs. 60‚000 and Rs. 40‚000. The fair return on investment is taken at 10% p.a. The value of company’s share will be– (A) Rs. 10 (B) Rs. 20 (C) Rs. 30 (D) Rs. 40

Last Answer : Answer: Rs. 20

The following data, relates to manufacturing company for the year 2006-07– Net Profit as per P & L A/c–Rs. 2,40,000; Depreciation–Rs. 80,000; Goodwill written-off– Rs. 40,000, Profit on Sale of Fixed Assets–Rs. 16,000, Proposed Dividend–Rs. 96,000. The fund from operation would be– (A) Rs. 4,40,000 (B) Rs. 4,00,000 (C) Rs. 6,40,000 (D) None of the above

Description : The following data, relates to manufacturing company for the year 2006-07- Net Profit as per P & L A/c-Rs. 2,40,000; Depreciation-Rs. 80,000; Goodwill written-off- Rs. 40,000, Profit on Sale of Fixed Assets-Rs. 16,000, ... ) Rs. 4,40,000 (B) Rs. 4,00,000 (C) Rs. 6,40,000 (D) None of the above

Last Answer : Answer: None of the above

X Ltd. forfeited 20 shares of Rs. 10 each on which Rs. 6 per share were paid. If out of these shares, 8 shares were reissued to Ram as fully paid up on payment of Rs. 5•50 per share, the amount that will remain standing to the credit of Share Forfeited A/c will be– (A) Rs. 48 (B) Rs. 72 (C) Rs. 84 (D) Rs. 120

Description : X Ltd. forfeited 20 shares of Rs. 10 each on which Rs. 6 per share were paid. If out of these shares, 8 shares were reissued to Ram as fully paid up on payment of Rs. 5 50 per share, the amount that will remain standing ... Share Forfeited A/c will be- (A) Rs. 48 (B) Rs. 72 (C) Rs. 84 (D) Rs. 120

Last Answer : Answer: Rs. 120

Sundry Debtors – Rs.15,000 Bills Receivable (B/R) – Rs.12,500 Cash at Bank – Rs.17,500 Stock – Rs.15,000 Profit – Rs.20,000 Creditors – Rs.25,000 Bills Payable (B/P) – Rs.15,000 Sales – Rs.1,00,000 What is the Acid Test Ratio ? (A) 1•5 : 1 (B) 1•125 : 1 (C) 16 2/3% (D) 50%

Description : Sundry Debtors – Rs.15,000 Bills Receivable (B/R) – Rs.12,500 Cash at Bank – Rs.17,500 Stock – Rs.15,000 Profit – Rs.20,000 Creditors – Rs.25,000 Bills Payable (B/P) – Rs.15,000 Sales – Rs.1,00,000 What is the Acid Test Ratio ? (A) 1•5 : 1 (B) 1•125 : 1 (C) 16 2/3% (D) 50%

Last Answer : Answer: 1•125 : 1

X Limited forfeited Ram’s 20 shares of Rs. 10 each on which Rs. 7 is called up. Ram had paid application and allotment money of Rs. 5 per share. Of these forfeited shares 15 shares were reissued to Hari as fully paid up for Rs. 6 per share. What amount should be transferred to Capital Reserve account ? (A) Rs. 15 (B) Rs. 20 (C) Rs. 75 (D) Rs. 100

Description : X Limited forfeited Ram's 20 shares of Rs. 10 each on which Rs. 7 is called up. Ram had paid application and allotment money of Rs. 5 per share. Of these forfeited shares 15 shares were reissued to Hari as fully paid up ... to Capital Reserve account ? (A) Rs. 15 (B) Rs. 20 (C) Rs. 75 (D) Rs. 100

Last Answer : Answer: Rs. 15

The current ratio is 3 : 2 and the amount of current liabilities is Rs. 40,000. What is the amount of current assets ? (A) Rs. 60,000 (B) Rs. 70,000 (C) Rs. 80,000 (D) Rs. 1,00,000

Description : The current ratio is 3 : 2 and the amount of current liabilities is Rs. 40,000. What is the amount of current assets ? (A) Rs. 60,000 (B) Rs. 70,000 (C) Rs. 80,000 (D) Rs. 1,00,000

Last Answer : Answer: Rs. 60,000

Few items of P/L A/c of a company are– Sales – Rs.1,60,000 Closing stock – Rs.38,000 Non-operating Expenses – Rs.800 Non-operating Income – Rs.4,800 Net Profit – Rs.28,000 What is the Operating Profit Ratio ? (A) 18% (B) 20% (C) 15% (D) 57%

Description : Few items of P/L A/c of a company are– Sales – Rs.1,60,000 Closing stock – Rs.38,000 Non-operating Expenses – Rs.800 Non-operating Income – Rs.4,800 Net Profit – Rs.28,000 What is the Operating Profit Ratio ? (A) 18% (B) 20% (C) 15% (D) 57%

Last Answer : Answer: 15%

Calculate the prime cost from the following information: Direct material purchased: Rs. 1,00,000 Direct material consumed: Rs. 90,000 Direct labour: Rs. 60,000 Direct expenses: Rs. 20,000 Manufacturing overheads: Rs. 30,000 (a) Rs. 1,80,000 (b) Rs. 2,00,000 (c) Rs. 1,70,000 (d) Rs. 2,10,000

Description : Calculate the prime cost from the following information: Direct material purchased: Rs. 1,00,000 Direct material consumed: Rs. 90,000 Direct labour: Rs. 60,000 Direct expenses: Rs. 20,000 Manufacturing overheads: Rs. 30,000 (a) Rs. 1,80,000 (b) Rs. 2,00,000 (c) Rs. 1,70,000 (d) Rs. 2,10,000

Last Answer : (c) Rs. 1,70,000

Ravi marked his Walkman at 60% above his cost price. If he had decreased his discount from 20% to 10%. he would have earned Rs.80 more. Find his cost price. a)640 b)600 c)500 d)800

Description : Ravi marked his Walkman at 60% above his cost price. If he had decreased his discount from 20% to 10%. he would have earned Rs.80 more. Find his cost price. a)640 b)600 c)500 d)800

Last Answer : c)500

Adhu Ltd. owns machinery (rate of depreciation is 15%), the written down value of which as on 1st April 2017 is Rs.30 Lakh. Due to fire, entire assets in the block were destroyed and the insurer paid Rs.25 lakh. The eligible depreciation in respect of block : a) Rs.450000 b) Rs. 75000 c) Rs. 400000 d) Nil

Description : Adhu Ltd. owns machinery (rate of depreciation is 15%), the written down value of which as on 1st April 2017 is Rs.30 Lakh. Due to fire, entire assets in the block were destroyed and the insurer paid Rs.25 lakh ... depreciation in respect of block : a) Rs.450000 b) Rs. 75000 c) Rs. 400000 d) Nil

Last Answer : d) Nil

From the following information, calculate the extra cost of material by following EOQ: Annual consumption: = 45000 units Ordering cost per order: = Rs. 10 Carrying cost per unit per annum: = Rs. 10 Purchase price per unit = Rs. 50 Re-order quantity at present = 45000 units There is discount of 10% per unit in case of purchase of 45000 units in bulk. (a) No saving (b) Rs. 2,00,000 (c) Rs. 2,22,010 (d) Rs. 2,990

Description : From the following information, calculate the extra cost of material by following EOQ: Annual consumption: = 45000 units Ordering cost per order: = Rs. 10  Carrying cost per unit per annum: = Rs. 10  Purchase price per unit = Rs. ... ) No saving (b) Rs. 2,00,000 (c) Rs. 2,22,010 (d) Rs. 2,990

Last Answer : (d) Rs. 2,990

If super profit is Rs. 4‚000 and normal rate of return is 8 per cent, the amount of goodwill will be– (A) Rs. 40‚000 (B) Rs. 50‚000 (C) Rs. 4‚00‚000 (D) Rs. 5‚000

Description : If super profit is Rs. 4‚000 and normal rate of return is 8 per cent, the amount of goodwill will be– (A) Rs. 40‚000 (B) Rs. 50‚000 (C) Rs. 4‚00‚000 (D) Rs. 5‚000

Last Answer : Answer: Rs. 50‚000

Rate of Gross Profit on cost is 25%. Total sales is Rs. 1,00,000 and Average Stock is Rs. 1,60,000. Stock Turnover Ratio will be– (A) 0•5 times (B) 0•8 times (C) 0•10 times (D) 0•4 times

Description : Rate of Gross Profit on cost is 25%. Total sales is Rs. 1,00,000 and Average Stock is Rs. 1,60,000. Stock Turnover Ratio will be– (A) 0•5 times (B) 0•8 times (C) 0•10 times (D) 0•4 times

Last Answer : Answer: 0•5 times

Net profit after tax of Rs. 2,00,000 is Rs. 4,00,000. Share capital is Rs. 8,00,000 and revenue reserve is Rs. 2,00,000. What is rate of return on equity ? (A) 40% (B) 50% (C) 60% (D) 75%

Description : Net profit after tax of Rs. 2,00,000 is Rs. 4,00,000. Share capital is Rs. 8,00,000 and revenue reserve is Rs. 2,00,000. What is rate of return on equity ? (A) 40% (B) 50% (C) 60% (D) 75%

Last Answer : Answer: 40%

Balance of Debenture Redemption Fund Account is transferred to– (A) Capital Reserve A/c (B) Profit and Loss A/c (C) General Reserve A/c (D) None of these

Description : Balance of Debenture Redemption Fund Account is transferred to– (A) Capital Reserve A/c (B) Profit and Loss A/c (C) General Reserve A/c (D) None of these

Last Answer : Answer: General Reserve A/c

A machine is purchased for Rs. 10,000,00 and has an estimated life of 10 years. The salvage value at the end of 10 years is Rs. 1,50,000. The book value of the machine at the end of 5 years using general straight line method of evaluation of depreciation is (A) Rs. 4,75,000 (B) Rs. 5,75,000 (C) Rs. 6,50,000 (D) Rs. 8,50,000

Description : A machine is purchased for Rs. 10,000,00 and has an estimated life of 10 years. The salvage value at the end of 10 years is Rs. 1,50,000. The book value of the machine at the end of 5 years using general straight line method ... Rs. 4,75,000 (B) Rs. 5,75,000 (C) Rs. 6,50,000 (D) Rs. 8,50,000

Last Answer : (B) Rs. 5,75,000

The balance appearing in the books of a company at the end of year were CRR A/c Rs. 50,000, Security Premium Rs. 5,000, Revaluation Reserve Rs. 20,000, P & L A/c (Dr) Rs. 10,000. Maximum amount available for distribution of Bonus Share will be– (A) Rs. 50,000 (B) Rs. 55,000 (C) Rs. 45,000 (D) Rs. 57,000

Description : The balance appearing in the books of a company at the end of year were CRR A/c Rs. 50,000, Security Premium Rs. 5,000, Revaluation Reserve Rs. 20,000, P & L A/c (Dr) Rs. 10,000. Maximum amount available for distribution of ... will be- (A) Rs. 50,000 (B) Rs. 55,000 (C) Rs. 45,000 (D) Rs. 57,000

Last Answer : Answer: Rs. 55,000

Sanki purchased 20 dozen notebook at Rs. 48 per dozen. He sold 8 dozen at 10% profit and remaining 12 dozen with 20% profit. What is his profit percentage in the transaction? A. 8% B. 15% C. 16% D. 19%

Description : Sanki purchased 20 dozen notebook at Rs. 48 per dozen. He sold 8 dozen at 10% profit and remaining 12 dozen with 20% profit. What is his profit percentage in the transaction? A. 8% B. 15% C. 16% D. 19% 

Last Answer : Answer – C (16%) Explanation – C.P of 20 dozen = Rs.(48 x 20) = Rs.960 C.P of 8 dozen = Rs. (48 x8) = Rs. 384. C.P of 12 dozen =Rs. (960 – 384) = Rs. 576 Total S.P = Rs. (110/100 x 384 +120/100 x 576) = Rs.1113.60 ∴ Profit % = (153.60/960 x 100)% =16%

A company forfeited 30 equity shares of Rs. 10 each fully called-up, for non-payment of allotment money of Rs. 3 and call-money of Rs. 4 per share. If these shares are reissued at Rs. 8 per share fully paid, the amount transferable to capital reserve will be– (A) Rs. 300 (B) Rs. 60 (C) Rs. 90 (D) Rs. 30

Description : A company forfeited 30 equity shares of Rs. 10 each fully called-up, for non-payment of allotment money of Rs. 3 and call-money of Rs. 4 per share. If these shares are reissued at Rs. 8 per share fully paid, the amount ... to capital reserve will be- (A) Rs. 300 (B) Rs. 60 (C) Rs. 90 (D) Rs. 30

Last Answer : Answer: Rs. 30

When sale is Rs. 4,80,000, gross loss is 25% on cost, purchase is Rs. 3,50,000 and closing stock is Rs. 60,000, the stock in the beginning would be– (A) Rs. 70,000 (B) Rs. 94,000 (C) Rs. 1,34,000 (D) Rs. 3,50,000

Description : When sale is Rs. 4,80,000, gross loss is 25% on cost, purchase is Rs. 3,50,000 and closing stock is Rs. 60,000, the stock in the beginning would be– (A) Rs. 70,000 (B) Rs. 94,000 (C) Rs. 1,34,000 (D) Rs. 3,50,000

Last Answer : Answer: Rs. 3,50,000

Average stock of firm is Rs. 80,000, the opening stock is Rs. 10,000 less than closing stock. Find opening stock. (A) Rs. 95,000 (B) Rs. 85,000 (C) Rs. 90,000 (D) Rs. 75,000

Description : Average stock of firm is Rs. 80,000, the opening stock is Rs. 10,000 less than closing stock. Find opening stock. (A) Rs. 95,000 (B) Rs. 85,000 (C) Rs. 90,000 (D) Rs. 75,000

Last Answer : Answer: Rs. 75,000

Total sales is Rs. 7,60,000, cash sales Rs. 30,000 collection period is 25 days, debtors at Balance Sheet date will be– (A) Rs. 80,000 (B) Rs. 70,000 (C) Rs. 60,000 (D) Rs. 50,000

Description : Total sales is Rs. 7,60,000, cash sales Rs. 30,000 collection period is 25 days, debtors at Balance Sheet date will be– (A) Rs. 80,000 (B) Rs. 70,000 (C) Rs. 60,000 (D) Rs. 50,000

Last Answer : Answer: Rs. 50,000

Income and expenses for the year 2012 are– Fee Received in Cash – Rs.24,000 Accrued Fee – Rs.6,000 Rent for Chamber Paid – Rs.6,000 Outstanding Rent – Rs.2,000 Salary Paid to Staff – Rs.6,000 Miscellaneous Expenses Paid – Rs.200 Salary paid in advance to staff included in the above : Rs. 1,000. What is the income under accrual basis ? (A) Rs. 11,800 (B) Rs. 13,200 (C) Rs. 16,800 (D) Rs. 30,000

Description : Income and expenses for the year 2012 are- Fee Received in Cash - Rs.24,000 Accrued Fee - Rs.6,000 Rent for Chamber Paid - Rs.6,000 Outstanding Rent - Rs.2,000 Salary Paid to Staff - Rs.6,000 Miscellaneous Expenses Paid - Rs. ... basis ? (A) Rs. 11,800 (B) Rs. 13,200 (C) Rs. 16,800 (D) Rs. 30,000

Last Answer : Answer: Rs. 13,200

Appointment of a Company Secretary is made by– (A) Promoters (B) Board of Directors (C) Debenture holders (D) Government

Description : Appointment of a Company Secretary is made by– (A) Promoters (B) Board of Directors (C) Debenture holders (D) Government

Last Answer : Answer: Board of Directors

Kirti Co’s Balance Sheet shows Fixed Asset Rs. 3,60,000. At the time of absorption calculation of Net Assets is 10% less than the market value, then market value of such fixed assets is ............ (A) Rs. 3,24,000 (B) Rs. 4,00,000 (C) Rs. 4,20,000 (D) None of these

Description : Kirti Co’s Balance Sheet shows Fixed Asset Rs. 3,60,000. At the time of absorption calculation of Net Assets is 10% less than the market value, then market value of such fixed assets is ............ (A) Rs. 3,24,000 (B) Rs. 4,00,000 (C) Rs. 4,20,000 (D) None of these

Last Answer : (B) Rs. 4,00,000

20,000 equity shares of Rs.10 each issued at 10% premium , cash is Rs------------------- a) Rs.2,00,000 b) Rs.2,10,000 c) Rs.2,15,000 d) Rs.2,20,000

Description : 20,000 equity shares of Rs.10 each issued at 10% premium , cash is Rs------------------- a) Rs.2,00,000 b) Rs.2,10,000 c) Rs.2,15,000 d) Rs.2,20,000

Last Answer : d) Rs.2,20,000

What is Capital Redemption Reserve Account available for ? (A) Redemption of redeemable preference shares (B) Redemption of redeemable debentures (C) Reorganization of share capital (D) Issue of fully paid bonus shares

Description : What is Capital Redemption Reserve Account available for ? (A) Redemption of redeemable preference shares (B) Redemption of redeemable debentures (C) Reorganization of share capital (D) Issue of fully paid bonus shares

Last Answer : Answer: Issue of fully paid bonus shares

Goods worth Rs. 2,000 were distributed to employees free of charge. The account to be debited is– (A) Profit and Loss A/c (B) Advertisement A/c (C) Labour Welfare A/c (D) Goods A/c

Description : Goods worth Rs. 2,000 were distributed to employees free of charge. The account to be debited is– (A) Profit and Loss A/c (B) Advertisement A/c (C) Labour Welfare A/c (D) Goods A/c

Last Answer : Answer: Profit and Loss A/c

Hitanshi Ltd.‘s purchase consideration is Rs.12,345 and Net Assets Rs.3,568, then........... (A) Goodwill Rs. 8,777 (B) Capital Reserve Rs. 8,777 (C)Goodwill Rs. 15,913 (D) Capital Reserve R

Description : Hitanshi Ltd.‘s purchase consideration is Rs.12,345 and Net Assets Rs.3,568, then........... (A) Goodwill Rs. 8,777 (B) Capital Reserve Rs. 8,777 (C)Goodwill Rs. 15,913 (D) Capital Reserve R

Last Answer : (A) Goodwill Rs. 8,777

Gross assets are Rs.1,01,000, fictitious assets Rs.350 are included in the gross assets. External liabilities are Rs.7,500. 6% prefer share capital is Rs.45,000. Equity capital is 4,500 equity shares of Rs.10 each fully paid. Average expected profit is Rs.8,500. Transfer to reserves is 10%. Pref. dividend is payable. NRR is 9%. The Net Asset Value Per share is A Rs.11 B Rs.10.70 C Rs.15 D Rs.20s

Description : Gross assets are Rs.1,01,000, fictitious assets Rs.350 are included in the gross assets. External liabilities are Rs.7,500. 6% prefer share capital is Rs.45,000. Equity capital is 4,500 equity shares of Rs.10 each fully ... . The Net Asset Value Per share is A Rs.11 B Rs.10.70 C Rs.15 D Rs.20

Last Answer : Rs.10.70

Sai purchased a DVD player at an additional 20% discount on the reduced price after deducting 40% on the labelled price. If the labelled price of the DVD player was Rs. 5600, then at what price did he purchase the DVD player?

Description : Sai purchased a DVD player at an additional 20% discount on the reduced price after deducting 40% on the labelled price. If the labelled price of the DVD player was Rs. 5600, then at what price did he purchase the DVD player?

Last Answer : Let the labelled price be Rs. 100 Reduced price = (100 – 40)% of 100 = Rs. 60 20% additional discount = 20% of 60 = Rs. 12 Net CP = 60 – 12 = Rs. 48 Therefore, sai’s cost price = 5600/100 *48 = Rs. 2688

A company has issued a 20-year bond at Rs. 1000 par value with a coupon rate of 10 per cent. The required rate of return on similar bonds is 12 per cent. What is the current value of the bond ? (A) Rs. 905•33 (B) Rs. 850•45 (C) Rs. 833•33 (D) Rs. 820•20

Description : A company has issued a 20-year bond at Rs. 1000 par value with a coupon rate of 10 per cent. The required rate of return on similar bonds is 12 per cent. What is the current value of the bond ? (A) Rs. 905•33 (B) Rs. 850•45 (C) Rs. 833•33 (D) Rs. 820•20

Last Answer : Answer: Rs. 905•33

Vignesh purchased a TV set for Rs.11, 250 after getting discount of 10% on the labelled price. He spent Rs.150 on transport and Rs.800 on installation. At what price should it be sold so that the profit earned would have been 15% if no discount was offered? a) Rs.11877.50 b) Rs.16367.50 c) Rs.14247.50 d) Rs.15467.50 e) Rs.17567.50

Description : Vignesh purchased a TV set for Rs.11, 250 after getting discount of 10% on the labelled price. He spent Rs.150 on transport and Rs.800 on installation. At what price should it be sold so that the profit earned would have ... a) Rs.11877.50 b) Rs.16367.50 c) Rs.14247.50 d) Rs.15467.50 e) Rs.17567.50

Last Answer : Marked price = 11250 × 10/9 = Rs. 12500 Total cost=12500 + 150 + 800=Rs. 13450 S.P = 13450 × 115/100 = Rs. 15467.50 Answer: d)

When the existing companies raise additional funds by issue of shares to the existing shareholders in proportion to their existing shareholdings, it is called– (A) Buyback of shares (B) Issue of shares at premium (C) Issue of shares at discount (D) Right shares issue

Description : When the existing companies raise additional funds by issue of shares to the existing shareholders in proportion to their existing shareholdings, it is called– (A) Buyback of shares (B) Issue of shares at premium (C) Issue of shares at discount (D) Right shares issue

Last Answer : Answer: Right shares issue

A article is listed at Rs. 2000 and a discount of 20% is offered on the list price .What additional discount must be offered to the customer bring the net price to Rs. 1400? A. 12.5% B. 10% C. 12% D. 15%

Description : A article is listed at Rs. 2000 and a discount of 20% is offered on the list price .What additional discount must be offered to the customer bring the net price to Rs. 1400? A. 12.5% B. 10% C. 12% D. 15%

Last Answer : Answer – A. 12.5% Explanation – S.P after 1st discount, 100%………2000 80%………? ?=2000×80/100=1600 Net S.P = Rs. 1400. Discount on Rs. 1600 = Rs. 200. ∴Required discount = (200/1600 x 100)% =12.5%

Bonus Shares are issued to– (A) Equity Shareholders (B) Preference Shareholders (C) Debenture Holders (D) Secured Creditors

Description : Bonus Shares are issued to– (A) Equity Shareholders (B) Preference Shareholders (C) Debenture Holders (D) Secured Creditors

Last Answer : Answer: Equity Shareholders

If the current assets and working capital of a company are rs.80,000 and rs.50000 then current liability will be------------- a) Rs.1,00,000 b) Rs.1,30,000 c) Rs.70000 d) Rs.30000

Description : If the current assets and working capital of a company are rs.80,000 and rs.50000 then current liability will be------------- a) Rs.1,00,000 b) Rs.1,30,000 c) Rs.70000 d) Rs.30000

Last Answer : d) Rs.30000

Calculate cost of sales from the following: Net Works cost: Rs. 2,00,000 Office & Administration Overheads: Rs. 1,00,000 Opening stock of WIP: Rs. 10,000 Closing Stock of WIP: Rs. 20,000 Closing stock of finished goods: Rs. 30,000 There was no opening stock of finished goods. Selling overheads: Rs. 10,000 (a) Rs. 2,70,000 (b) Rs. 2,80,000 (c) Rs. 3,00,000 (d) Rs. 3,20,000

Description : Calculate cost of sales from the following: Net Works cost: Rs. 2,00,000 Office & Administration Overheads: Rs. 1,00,000 Opening stock of WIP: Rs. 10,000 Closing Stock of WIP: Rs. 20,000 Closing stock of finished goods: Rs. ... Rs. 2,70,000 (b) Rs. 2,80,000 (c) Rs. 3,00,000 (d) Rs. 3,20,000

Last Answer : (b) Rs. 2,80,000

A company has to choose between two projects whose cash flows are as indicated below; Project 1: i. Investment – Rs. 15 Lakhs ii. Annual cost savings – Rs. 4 lakhs. iii. Bi-annual maintenance cost – Rs. 50,000/- iv. Reconditioning and overhaul during 5th year: 6 lakhs v. Life of the project – 8 years vi. Salvage value – Rs. 5 lakhs Project 2: vii. Investment – Rs. 14 Lakhs viii. Annual cost savings – Rs. 3.5 lakhs. ix. Annual Maintenance cost – Rs. 20,000/- x. Reconditioning and overhaul during 4th year: 5 lakhs xi. Life of the project – 8 years xii. Salvage Value- 2 lakhs Which project should the company choose? The annual discount rate is 12

Description :  A company has to choose between two projects whose cash flows are as indicated  below; Project 1:  i. Investment - Rs. 15 Lakhs ii. Annual cost savings - Rs. 4 lakhs. iii. Bi-annual ... years xii. Salvage Value- 2 lakhs Which project should the company choose? The annual discount rate is 12

Last Answer : Year Project 1 Project 2 Outgo Saving NPV Outgo Saving NPV 0 15.0 0 =-15.0 14.0 0 = -14 1 0 4.0 = (4 / (1+.12)1 = 3.571 0.2 3.5 = (3.3 / (1+.12)1 = 2.95 2 0.5 4.0 = (3.5 / (1+.12)2 = 2.79 0.2 3.5 ... (1+.12)8 = 3.43 0.2 5.5  (3.5+2) = (5.3 / (1+.12)8 = 2.14 NPV = + 2.301 @12% = + 0.15

A man invests Rs. 20,000 in Rs. 80 shares of a company available at a premium of Rs. 20. IF the company pays a dividend of 8%, then find the rate of r

Description : A man invests Rs. 20,000 in Rs. 80 shares of a company available at a premium of Rs. 20. IF the company pays a dividend of 8%, then find the rate of r

Last Answer : A man invests Rs. 20,000 in Rs. 80 shares of a company available at a premium of Rs. 20. IF ... of 8%, then find the rate of return on the investment.