Question :  Capital employed in a firm is calculated from the liabilities approach as follows

Option 1: Partner's capital – credit  balance in current account + free reserve + credit balance of profit  and loss account – Goodwill - Non trade investment – fictitious assets – all outside liabilities

Option 2: Partners capital + credit balance in current account (minus Debit balance of current account) + free reserve + credit balance  of profit and loss (if any) – goodwill – non trade investment

Option 3: Partners capital – credit balance in current account + free reserve + credit balance of profit and loss account – Goodwill – non trade investment – fictitious assets – all outside liabilities

Option 4: All assests – goodwill – Non trade investment – fictious assets – Debit  balance of profit and loss account – outsiders liabilities

Question : Which of the following is stock concept?

1. Amount of bank deposits on 31.3.2022
2. Capital
3. Balance in a bank account.

Option 1: Only 1
 

Option 2: Only 2&3
 

Option 3: 1,2&3
 

Option 4: Only 1&3

Question : Capital employed in a firm is calculated from assets side approach as follows:

Option 1: All assets – goodwill – non trade investment – fictious assets – long term outside liabilities 

Option 2: All assets – goodwill – non trade investment – fictious assets – credit balance in cuirrent account – all outside liabilities

Option 3: Partners capital – credit balance in current account + free reserve + credit balance of profit a and loss account – Goodwill – non trade investment – fictious assets – all outside liabilities 

Option 4: All assests – goodwill – Non trade investment – fictious  assets – Debit  balance of profit and loss account – outsiders liabilities 

Question : Subscription received in advance by a club are shown in the:

Option 1: Credit side of Income and Expenditure Account

Option 2: Credit side of Receipts and Payments Account

Option 3: Liability side of the Balance Sheet

Option 4: Asset side of the Balance Sheet

Question : Where is Interest on drawings shown in the final accounts of the firm?

Option 1: Debit side of profit and loss Appropriation Account.

Option 2: Credit side of profit and loss Appropriation Account.

Option 3: Credit side of profit and loss Account.

Option 4: Debit side of capital or current account only.