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 (Column-I)List-Ⅱ (Column-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)

a.

  • (i)
  • (iii)
  • (iv)
  • (ii)

b.

  • (iv)
  • (iii)
  • (ii)
  • (i)

c.

  • (i)
  • (iii)
  • (ii)
  • (iv)

d.

  • (iv)
  • (iii)
  • (i)
  • (ii)

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  • Partners drawing account- When a partner withdraws money from the business, the money withdrawn is recorded in the company՚s drawing account.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.

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