Question : Which of the following statements is false?  

Option 1: Loss on Issue of Debentures is debited at the time of issue of debentures following the Prudence Concept of Accounting.

Option 2: Loss on Issue of Debentures is written off from Securities Premium Reserve, if it exists and thereafter from Statement of Profit and Loss.

Option 3: Loss on Issue of Debentures Account is an Expense Account and Premium on Redemption of Debentures Account is a Liability Account.

Option 4: Premium on Redemption of Debentures Account is credited at the time of payment, i.e., on redemption of debentures.

Question :

R, M and P were partners in a firm. P died on 29th February, 2020. His share of profit from the closure of the last accounting year till the date of death was to be calculated on the basis of the average of three completed years of profits before death.  Profits for the years ended 31st March, 2017, 2018 and 2019 were Rs. 80,000, Rs. 90,000 and Rs. 1,00,000 respectively. 

Question:- If the profit-sharing ratio of remaining partners does not change; P’s share of profit will be  ----

Option 1: Profit and loss suspense account debited by Rs 27,500

Option 2: Profit and loss suspense account credited by Rs 27,500

Option 3: Debited R’s capital account with Rs 22,000 and M’s capital account Rs 5,500 credited P’s capital account Rs 27,500

Option 4: None of the above

Question :

R, M and P were partners in a firm. P died on 29th February, 2020. His share of profit from the closure of the last accounting year till the date of death was to be calculated on the basis of the average of three completed years of profits before death.  Profits for the years ended 31st March, 2017, 2018 and 2019 were Rs. 80,000, Rs. 90,000 and Rs. 1,00,000 respectively. 

Question:- If the profit-sharing ratio of remaining partners does not change; P’s share of profit will be  ----

Option 1: Profit and loss suspense account debited by Rs 27,500

Option 2: Profit and loss suspense account credited by Rs 27,500

Option 3: Debited R’s capital account with Rs 22,000 and M’s capital account Rs 5,500 credited P’s capital account Rs 27,500

Option 4: None of the above

Question : Which of the following are not the Characteristics of Statement of Profit and Loss (Profit and Loss Account)?

Option 1: It shows the financial performance of a company, i.e., revenues, expenses and Profit or loss for the period.

Option 2: It is prepared for a past period and thus, is a historical document.

Option 3: It is for a specific accounting period.

Option 4: None of the above

Question : Which of the following are not the Characteristics of Statement of Profit and Loss (Profit and Loss Account)?

Option 1: It shows the financial performance of a company, i.e., revenues, expenses and Profit or loss for the period.

Option 2: It is prepared for a past period and thus, is a historical document.

Option 3: It is for a specific accounting period.

Option 4: None of the above