What is the purpose of the Profit and Loss Appropriation Account in a partnership?
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12%
It is used to calculate the total revenue of the partnership from the sale of its goods.
82%
It is used to distribute profits among partners as per their agreed ratios.
6%
It is used to record all business expenses.
0%
It is used to calculate the taxes owed by the partnership.
How does the Profit and Loss Appropriation Account relate to the Profit and Loss Account in a partnership?
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20%
It is a separate financial statement unrelated to the Profit and Loss Account.
60%
It is an extension of the Profit and Loss Account.
17%
It is used to calculate the net profit in the partnership.
3%
It is a replacement for the Profit and Loss Account.
❤1
If net profit is ₹3,00,000, interest on capital is ₹36,000, and interest on drawings is ₹4,000, what will be net profit as per Profit and Loss Appropriation Account?
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20%
₹3,32,000
17%
₹3,40,000
15%
₹2,60,000
47%
₹2,68,000
If net profit is ₹8,40,000, partner’s salary ₹10,000/month, commission ₹20,000, and interest on drawings ₹8,000, what is the net profit as per Profit and Loss Appropriation Account?
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53%
₹7,08,000
20%
₹6,92,000
20%
₹8,18,000
6%
₹8,02,000
A, B, and C are partners with total profit ₹3,00,000. No ratio is mentioned and C manages business without capital. What is each partner’s share?
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6%
A: ₹1,20,000 B: ₹1,20,000 C: Nil
13%
A: ₹1,80,000 B: ₹60,000 C: Nil
15%
A: ₹80,000 B: ₹80,000 C: ₹80,000
65%
A: ₹1,00,000 B: ₹1,00,000 C: ₹1,00,000
Net profit ₹1,59,600, manager’s commission 5% after charging commission. Net profit transferred to Profit and Loss Appropriation Account will be:
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17%
₹7,980
29%
₹7,600
37%
₹1,52,000
16%
₹1,51,620
👍1
Which of the following are NOT items of Profit and Loss Appropriation Account?
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31%
All except A and B
32%
All except B and D
27%
All except B and C
10%
All except C and E
🤔5❤1🤯1
Journal entry for transfer to Reserve out of profit is:
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27%
Reserve A/c Dr. To Profit and Loss Appropriation A/c
41%
Profit and Loss Appropriation A/c Dr. To Reserve A/c
8%
Partners’ Capital/Current A/c To Reserve A/c
24%
Reserve A/c Dr. To Partners’ Capital/Current A/c
Which account is prepared to show the opening and closing balances of cash and bank?
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18%
Income & Expenditure Account
50%
Receipt & Payment Account
26%
Balance Sheet
6%
Journal
❤1
Income & Expenditure Account is similar to which type of account in business organizations?
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15%
Trading Account
75%
Profit & Loss Account
6%
Balance Sheet
4%
Capital Account
❤1
Outstanding expenses are shown in:
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15%
Receipt & Payment Account
42%
Income & Expenditure Account
40%
Balance Sheet
3%
Journal
😁1
Donation received for building fund is treated as:
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51%
Capital Receipt
35%
Revenue Receipt
9%
Income
5%
Expenditure
In Income & Expenditure Account, income is recognized on:
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28%
Cash basis
47%
Accrual basis
18%
Receipt basis
7%
Payment basis
Membership fees relating to current year but received next year is:
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31%
Revenue income
20%
Capital income
41%
Deferred income
8%
Prepaid expense
When are debentures said to be issued at par?
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6%
When issued below their face value
17%
When issued above their face value
74%
When issued at their face value
2%
When issued in exchange for services
How is the premium on the issue of debentures treated in accounting?
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6%
As an operational expense
24%
As a capital loss
55%
As a capital profit
15%
As a liability
What happens in the case of over-subscription of debentures?
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4%
The issue is cancelled
20%
Additional debentures are issued
12%
The application is rejected
63%
Excess money is refunded or adjusted
What entry is made on the receipt of call money for debentures?
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53%
Debit Bank A/c, Credit Debenture First Call A/c
32%
Debit Debenture First Call A/c, Credit Bank A/c
6%
Debit Debentures A/c, Credit Bank A/c
8%
Debit Bank A/c, Credit Debentures A/c
How is a capital loss due to the issue of debentures at a discount typically written off?
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42%
By debiting the Statement of Profit and Loss
26%
By crediting the Securities Premium Reserve A/c
32%
By debiting the Discount on Issue of Debentures A/c
0%
By crediting the Debentures A/c
❤1
Ravi Ltd. issued 6,000 Debentures of ₹100 each at a premium of ₹10. It will credit Debentures Account by:
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42%
₹6,60,000
47%
₹6,00,000
11%
₹4,50,000
0%
None of these
Debentures issued with following journal entry: Bank A/c Dr ₹4,75,000, Loss on Issue of Debenture A/c Dr ₹75,000, To 12% Debentures A/c ₹5,00,000, To Premium on Redemption of Debenture A/c ₹50,000. Debenture issued at a discount of:
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22%
15%
42%
5%
33%
10%
3%
20%