Question : A, B and C were partners, sharing profits and losses in the ratio of 2:2:1. B retired on 31st March 2020. On the date of his retirement, some of the assets and liabilities appeared in the books as follows:
Creditors Rs. 70,000; Building Rs. 1,00,000; Plant and Machinery Rs. 40,000; Stock of Raw Materials Rs. 20,000; Stock of Finished Goods Rs. 30,000, Debtors Rs.20,000. Following was agreed among the partners on B's retirement: (a) Building to be appreciated by 20%. (b) Plant and Machinery to be reduced by 10%. (c) A Provision of 5% on Debtors to be created for Doubtful Debts. (d) Stock of Raw Materials to be valued at Rs. 18,000 and Finished Goods at Rs. 35,000. (e) An Old Computer previously written off was sold for Rs. 2,000 as scrap. (f) Firm had to pay Rs. 5,000 to an injured employee.
Question: Revaluation profit is
Option 1: 20,000
Option 2: 17,000
Option 3: 15,000
Option 4: None of these
Correct Answer: 15,000
Solution : Answer = 15,000
Revaluation A/c
Hence, the correct option is 3.
Question :
A computer purchased on 1st October 2016 for Rs.40,000 debited to Office Expenses Account is to be brought into account on 31st March 2018 charging depreciation @10% p.a. on written down value basis.
Option 1: Revaluation debited by Rs 34,200
Option 2: Revaluation credited by Rs 34,200
Option 3: Revaluation debited by Rs 40,000
Option 4: None of the above
Question : By selling a table for Rs. 1140, a man loses 5%. In order to gain 5%, the table must be sold for ?
Option 1: Rs. 1260
Option 2: Rs. 1320
Option 3: Rs. 1180
Option 4: Rs. 1250
Question : Which of the following is an advantage of using computer-based tools for planning?
Option 1: Increased subjectivity
Option 2: Limited data analysis capabilities
Option 3: Improved accuracy and efficiency
Option 4: Reduced reliance on technology
Question : The marginal propensity to consume (MPC) is 0.75. If there is an autonomous increase in investment spending of INR 1,000, what will be the change in equilibrium income?
Option 1: INR 750
Option 2: INR 1,000
Option 3: INR 1,333.33
Option 4: INR 4,000
Question : What is the primary function of the capital market?
Option 1: Facilitating short-term borrowing and lending
Option 2: Financing long-term investments
Option 3: Trading foreign currencies
Option 4: Facilitating real estate transactions
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