Question : Loss/Discount or Loss on Issue of Debentures is written off from
Option 1: Securities Premium Reserve.
Option 2: Securities Premium Reserve (if it exists) and thereafter from Statement of Profit and Loss.
Option 3: Statement of Profit and Loss.
Option 4: General Reserve
Correct Answer: Securities Premium Reserve (if it exists) and thereafter from Statement of Profit and Loss.
Solution : Answer = Securities Premium Reserve (if it exists) and thereafter from Statement of Profit and Loss
Loss or discount on the issue of debentures is initially written off from the Securities Premium Reserve if it exists. If the amount exceeds the balance in the Securities Premium Reserve, the remaining portion is then charged to the Statement of Profit and Loss. Hence, the correct option is 2.
Question : Puran Store Ltd., an Unlisted Company, is to redeem 5000,8% Debentures of Rs. 100 each on 30th June 2020. It has a balance of Rs. 10,000 in Debentures Redemption Reserve. It decides to set aside the amount to Debentures Redemption Reserve on 31st March 2020 on which date
Question : Choose which of the following statements is true?
Question : A, B and C are partner sharing profits in the ratio of equally On 1-4-2020 they decided to share the profits 2:4:6. On the date there was a credit balance of Rs 1,00,000 in their Profit and Loss Account and a balance of Rs 2,00,000 in General Reserve Account.
Question : Aman and Varun are partners sharing profits in the ratio of equally. Their Balance Sheet showed a balance of Rs 62,000 in the General Reserve Account and a debit balance of 20,000 in the Profit and Loss Account. They now decided to share the future profits 4:3.
Question : P, Q and R are partners sharing profits and losses in the ratio of 3: 3: 2. Their respective capitals are in their profit-sharing proportions. On 1st April, 2019, the total capital of the firm and the balance of General Reserve are Rs. 80,000 and Rs. 20,000 respectively.
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