Question : Interest received on match fund Investment should be

Option 1: Credited to Income and expenditure account

Option 2: Debited  to Income and expenditure account 

Option 3: Credited to capital fund

Option 4: Debited to the building fund

Question : Investment purchased during the year Rs 60,000 and interest on investment received Rs 1,000. 8% interest has accrued on Investment for five month. Calculate the amount credited to Income and Expenditure account and balance of investment at the end of the year.

Option 1: interest on investment credited to Income and Expenditure Account Rs 1,000 and closing balance of Investment is Rs 61,000

Option 2: interest on investment credited to Income and expenditure account Rs 3,000 and investment at the end of the year Rs 62,000

Option 3: Interest on investment credited to Income and Expenditure Account by Rs 2,000 and balance of investment at the end of the year Rs 60,000

Option 4: interest on investment credited to Income and Expenditure Account Rs 1,000 and Investment Balance at the end of the Year Rs 60,000

Question : Furniture as of 1st April, 2019—Rs. 2,20,000; Furniture (having book value as on
1st April, 2019—Rs. 20,000) sold at a gain (profit) of 20% on 31st December, 2019.
Furniture purchased on 1st October, 2019 for Rs. 1,00,000; Charge depreciation @ 10% p.a. on furniture. How much the amount is to be shown in the Income and Expenditure Account?

Option 1: Profit Rs 3,700 credited to Income and Expenditure Account.
Depreciation charged Rs 26,500 debited to Income and Expenditure Account. 

Option 2: Profit Rs.3,700 credited to Income and Expenditure Account
Rs.1,500 depreciation debited to Income and Expenditure Account 

Option 3: Loss Rs. 3,700 debited to Income and Expenditure Account
Rs. 20,000 depreciation debited to Income and Expenditure Account 

Option 4:  None of the above 

Question : How are the following items presented in the financial statement of a  Non  profit orginsation :

a. Tournament  Fund   - Rs 80,000

b. Tournament Expenses - Rs 14,000

Option 1: Debited Rs. 66.000 to Income and expenditure account 

Option 2: Debited Rs. 14,000 to Income and expenditure account 

Option 3:  Rs. 66,000 Tournament Fund shown on the liabilites.

Option 4: Tournament Fund Rs. 80,000 on the liabilites side.

Question : In the case of fixed capital, interest on capital

Option 1: is credited to the partner's capital account

Option 2: is credited to the partner's current account

Option 3: maybe credited to the partner's capital and current account

Option 4: is debited to the partner's capital account