A-AS Level (CIE) Accounting Paper-3: Specimen Questions with Answers 46 - 47 of 50
Question 46
Question
MCQ▾C Limited had 3,000, 12 % Redeemable Preference Shares of 100 each, fully paid up. The company had to redeem these shares at a premium of . It was decided by the company to issue 25,000 Equity Shares of 10 each at par. How much amount will be transferred to capital redemption account?
Choices
| Choice (4) | |
|---|---|
a. | 250000 |
b. | 50000 |
c. | 5000 |
d. | 2500 |
Answer
b.Explanation
Amount transferred to Capital Redemption Reserve Account,
Question 47
Question
Match List-Ⅰ List-Ⅱ▾Match List I (Names of accounts) with List II (Points with which the accounts are concerned) and select the correct answer using the codes given below the lists:
| List-Ⅰ | List-Ⅱ |
(A) Partners drawings | (i) Revaluation of assets on the admission of a partner |
(B) Goodwill account | (ii) Dissolution |
(C) Partners current | (iii) Fixed capitals of partners |
(D) Profit and loss | (iv) Goods taken by partners for private consumption |
Choices
| Choice (4) | ||
|---|---|---|
| ||
a. |
| |
b. |
| |
c. |
| |
d. |
| |
Answer
b.Explanation
- Partners Current account: In partnership accounts partners current account is made when capital is fixed. Several transactions like drawings, interest on capital, salary etc. are recorded.
- Goodwill account- Goodwill appears in the books of account is higher than the difference or the excess is debited to the account of old partner՚s capital account.
- Partners drawing account- When a partner withdraws money from the business, the money withdrawn is recorded in the company՚s drawing account.
- Profit and loss account- When a new partner is admitted in the business the profit of the business is calculated again.