Question : Increases and decreases in the value of assets and liabilities are recorded through

Option 1: Profit and loss account 

Option 2: Profit and loss appropriation account 

Option 3: Partners capital account

Option 4: Revaluation account

Question : ______ A/C is opened for disposing of all the assets of firm and making payment of all the liabilities.

Option 1: Revaluation

Option 2: Profit and Loss Suspense

Option 3: Realisation

Option 4: Profit and Loss Appropriation

Question : On dissolution of a firm, a partner paid Rs. 6,500 for firm’s realisation expenses. Which account will be debited?

Option 1: Cash Account

Option 2: Realisation Account

Option 3: Capital Account of the Partner

Option 4: Profit & Loss A/c

Question : Realisation A/c is prepared to ascertain the _________

Option 1: Profit/loss on realisation of asset

Option 2: Profit/loss on repayment of liabilities

Option 3: Both 1 and 2

Option 4: None of the above

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