Securities premium reserve account is shown on the liabilities side in the balance sheet under the heading

Which of the following events after the balance sheet date would normally qualify as adjusting events according to AS-4 (Events after balance sheet date)? (A) The insolvency of a customer on the balance sheet date (B) A decline in the market value of investments (C) The declaration of an ordinary dividend (D) The determination of the cost of assets purchased before the balance sheet date Choose the most appropriate answer from the options given below:

A

(A), (C) and (D) only

B

(A) and (B) only

C

(B) and (C) only

D

(A) and (D) only

The Balance Sheet of a company includes, among other item, 10% Redeemable Preference Share of Rs. 1,60,000 fully paid, share premium Rs. 1,000 and a revenue reserve of Rs. 1,31,000. The company decided to redeem the above shares at a premium of 5% by issue of new shares. If the new issue of shares is to be at a premium of 20%, the minimum amount of new issue will be

A

Rs. 28,800

B

Rs. 32,000

C

Rs. 36,000

D

Rs. 37,000

In a survey conducted over a group of people, it was found that 65% of them have a Facebook account, 40% of them have an Instagram account and 25% of them have a Twitter account. It was also concluded that 20% have an account on both Facebook and Instagram, 12% have an account on both Instagram and Twitter and 14% have an account on both Facebook and Twitter. If 8% of the people had an account on all the three websites, what percentage of the people do not have an account on any of the three websites?

A

4%

B

8%

C

12%

D

16%

Balance of share forfeiture account is shown in the Balance Sheet under the heading

A

Current Liability & Provisions

B

Reserves and Surplus

C

Share Capital

D

Unsecured Loan

Identify the true statement of the following.
1. Balance sheet is always prepared from the point of view of the business, but not from, that of the owners.
2. The financial relationship of the business to its owners is shown in the balance sheet.
3. Balance sheet is always related to a period of time.

A

Both 1 and 2

B

Both 2 and 3

C

Both 1 and 3

D

All of the above

Which of the following is true?
i. Balance sheet is alway sprepared from the point of view of the business, but not from the point of view of the owners.
ii. The financial relationship of the business to its owners is shown in the balance sheet.
iii. Balance sheet is always related to a period of time.

A

i and ii

B

ii and iii

C

i and iii

D

i, ii and iii

Assertion (A): In preparing final accounts, if closing stock is given in the trial balance, it is shown only in the Balance Sheet.
Reason (R): Any item appearing in the trial balance is treated only at one place i.e. either in the trading and profit & loss a/c or in the balance sheet.
Now, select the correct answer:

A

Both (A) and (R) are true and (R) is the correct explanation of (A)

B

Both (A) and (R) are true, but (R) is not correct explanation of (A)

C

(A) is true but (R) is false

D

(A) is false but (R) is true

In which order the following items will be shown on the liabilities side of the Balance Sheet of a Company:
1. Current liabilities and provisions
2. Secured loans
3. Share capital
4. Reserves and surplus
Select the correct answer:

A

3, 4, 2, 1

B

1, 2, 3, 4

C

4, 3, 2, 1

D

3, 4, 1, 2

Consider the following statements.
1. Realisation account and revaluation account are the same.
2. While preparing cash account or bank account (dissolution), the debit and credit side are same.
3. Items appearing in the balance sheet are posted at one place only.
Which of the statements given above is/ are correct?

A

Only 1

B

Both 2 and 3

C

All of the above

D

None of the above

Assertion (A): Premium receivedon issue of shares is credited to share premium account but not to profit and loss account.
Reason (R): Since share premium is not a trading profit, it is not distributed to shareholders.

A

Both (A) and (R) are correct, but (R) is not the correct explanation of (A)

B

(A) is incorrect, but (R) is correct

C

Both (A) and (R) are correct, and (R) is the correct explanation of (A)

D

(A) is correct, but (R) is incorrect

Securities premium reserve account is shown on the liabilities side in the balance sheet under the heading

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