Question : When the Company decided not to record the issue of Debentures as Collateral Security. Which of the following accounts will be credited?
Option 1: % debentures
Option 2: No entry required
Option 3: Capital reserve
Option 4: Debenture suspense account
Correct Answer: No entry required
Solution : Answer = No entry required
If the company decides not to record the issue of debentures as collateral security, no entry is required in the accounting records because no transaction is taking place. Therefore, no account needs to be credited in this scenario, hence the correct answer is "No entry required." Hence, the correct option is 2.
Question : When the Company decided to record the issue of Debentures as Collateral Security: Which of the following accounts should be debited?
Option 1: % Debenture account
Option 2: Debentures suspense account
Option 3: Bank loan account
Option 4: No entry required
Question : At the time of admission of a partner, what will be the effect of the following information? Balance in Workmen compensation reserve Rs. 28,000. Claim for workmen compensation Rs. 20,000.
Option 1: Rs. 28,000 Debited to the Partner's capital Accounts.
Option 2: Rs. 2,000 Debited to Revaluation Account.
Option 3: Rs. 8,000 Credited to the Partner's capital Accounts.
Option 4: Rs. 20,000 to Debited Revaluation Account
Question : At the time of admission of a partner, what will be the effect of the following information? Balance in Workmen compensation reserve Rs. 1,40,000. Claim for workmen compensation Rs. 1,10,000.
Option 1: Rs. 1,40,000 Debited to the Partner's Capital Accounts.
Option 2: Rs. 1,10,000 Debited to Revaluation Account.
Option 3: Rs. 30,000 Credited to the Partner's Capital Accounts.
Option 4: Rs. 30,000 to Debited Revaluation Account.
Question : At the time of admission of a partner, what will be the effect of the following information? Balance in Workmen compensation reserve Rs. 20,000. Claim for workmen compensation Rs. 45,000.
Option 1: Rs. 5,000 Debited to the Partner's capital Accounts.
Option 2: Rs. 40,000 Debited to Revaluation Account.
Option 3: Rs. 25,000 Debited to Revaluation Account.
Option 4: Rs. 40,000 Credited to Revaluation Account.
Question : On firm dissolution, which one of the following accounts should be prepared at the last?
Option 1: Realization account
Option 2: Partner's capital account
Option 3: Partner's loan account
Option 4: Cash account
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