Question : Which accounts are opened when the capital are fixed?
Option 1: Only capital account
Option 2: Only current account
Option 3: Capital account as well as current account
Option 4: Either capital account or current accounts
Correct Answer: Capital account as well as current account
Solution : Under fixed capital method the original capital invested by the partners remain constant, unless additional capital is introduced or drawing are made against capital by an agreement. When fixed capital method is adopted, all entries related to drawing, ioc, profit etc. are passed through current account. Capital and current both account are opened when the capital are fixed. Hence, option 3 is the correct answer.
Question : Demand deposits include______
Option 1: Saving account deposits with fixed deposits
Option 2: Saving account deposits with current account deposits
Option 3: Current account deposits with fixed deposits
Option 4: All types of deposits
Question : Share Capital Suspense Account is opened when-
Option 1: The share capital suspense account is opened when the Balance Sheet is not called.
Option 2: When Balance Sheet is not tallied
Option 3: When dividend is declared but not paid
Option 4: When shares are forefeited
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
Question : On the ___ account, merchandise exports and imports of goods are _______ transactions.
Option 1: Current, accommodating
Option 2: Current, autonomous
Option 3: Capital, accomodating
Option 4: Capital, autonomous
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