Head of Accounts
A and B share profit and loss in the ratio of 2/5 and 2/5 respectively and having capital account balances of $100,000 each. At the time of revaluation. The firm’s total asset book value was $60,000 while they can only be sold for $40,000. Which of the following is the balance of A’s capital account after revaluation of firm’s assets?
100000
112000
88000
$72,00
88000
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B. The statement of financial position
C. The statement of changes in equity
D. The income statement
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A. $5000 will be debited
B. $5000 will be credited
C. No adjusted needed in capital a/c
D. None of these
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A. Cash accounting
B. Accrual accounting
C. Government accounting
D. Management accounting
Interest on drawings is:
A. Debited to partner’s current a/c
B. Credited to partner’s current a/c
C. Not shown in current account
D. None of these
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A. Based on the cost price of the asset only
B. Should be straight line only
C. No depreciation should be provide until the final payment is made
D. Based on the total cost including interest
In which of the following types of partnership there is no agreement regarding the duration of partnership?
A. General partnership
B. Partnership-at-will
C. Limited partnership
D. Registered partnership
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A. Value of whole business = Profit / Reasonable rate of returns x 100
B. Value of whole business = Total assets / Reasonable rate of returns x 100
C. Value of whole business = Equity-Net asset
D. None of these
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