A-AS Level (CIE) Accounting Paper-3: Specimen Questions with Answers 11 - 12 of 50

Question 11

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Question

MCQ▾

Calculate Net profit ratio from the following:

Calculate Net profit ratio from the followingCalculate Net profit ratio from the following
Opening stock3,00,000
Closing Stock4,20,000
Purchases14,00,000
Wages3,70,000
Carriage Inwards1,50,000
Administrative Expenses84,000
Selling Expenses36,000
Income Tax1,00,000
Profit on sale of fixed assets24,00,000

Choices

Choice (4)
a.13.98%
b.17.67%
c.16.13%
d.16.67%

Answer

d.

Explanation

Question 12

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Question

MCQ▾

When existing agreements between the partners changes it is called

Choices

Choice (4)
a.Dissolution of firm
b.Dissolution of partnership
c.Dissolution of business
d.None of the above

Answer

b.

Explanation

  • Dissolution of partnership means termination of old partnership agreement and reconstruction of the firm due to admission, retirement, or death of a partner. Dissolution of partnership may or may not result into closing of business as the remaining partners may agree to carry on the business under a new agreement.
  • In case of Dissolution of partnership means the firm may continue i. e. it does not mean dissolution of firm. But in case of dissolution of the firm, the partnership is automatically dissolved.

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