Q. 505456. Match List I with List II
List I: Major Head (A. Fixed assets, B. Current Assets, C. Current Liabilities, D. Shareholder’s Funds)
List II: Sub Head (I. Short term provisions, II. Money received against share warrants, III. Non current investment, IV. Inventories)
(A) A-IV, B-I, C-II, D-III
(B) A-III, B-IV, C-I, D-II
(C) A-I, B-IV, C-II, D-III
(D) A-II, B-I, C-IV, D-III
Answer: (B) A-III, B-IV, C-I, D-II
Explanation: Fixed Assets (in the context of Non-Current Assets) broadly relate to Non-current investments (A-III). Current Assets include Inventories (B-IV). Current Liabilities include Short term provisions (C-I). Shareholder’s Funds include Money received against share warrants (D-II).
Q. 505457. Match List I with List II
List I (A. Cash Equivalents, B. Financing Activities, C. Operating Activities, D. Investing Activities)
List II (I. Interim Dividend paid, II. Selling & Distribution expenses paid, III. Marketable securities, IV. Dividend received on Shares held as investment)
(A) A-IV, B-I, C-II, D-III
(B) A-III, B-I, C-II, D-IV
(C) A-III, B-IV, C-II, D-I
(D) A-III, B-IV, C-I, D-II
Answer: (B) A-III, B-I, C-II, D-IV
Explanation: Cash Equivalents include highly liquid Marketable securities (A-III). Financing Activities involve paying Interim Dividend (B-I). Operating Activities include regular business expenses like Selling & Distribution expenses (C-II). Investing Activities involve income from investments, like Dividend received (D-IV).
Q. 505458. At the time of retirement of a Partner the remaining gaining partners should compensate the
(A) Remaining Partners only
(B) Retiring Partners only
(C) Retiring Partners as well as remaining partners who have sacrificed
(D) Sacrificing partners only
Answer: (C) Retiring Partners as well as remaining partners who have sacrificed
Explanation: Gaining partners must compensate the retiring partner for their share of goodwill. Additionally, if any continuing partner also sacrifices a portion of their profit share during the reconstitution, they must also be compensated by the gaining partners.
Q. 505459. If a partner retires in the middle of the year his/her share of profit from the date of last balance sheet till the date of retirement will be transferred to :
(A) Profit & Loss A/C credit side
(B) Profit & Loss suspense A/C debit side
(C) Retiring partners capital A/C debit side
(D) Profit & Loss suspense A/C credit side
Answer: (B) Profit & Loss suspense A/C debit side
Explanation: When a partner retires in the middle of the year, their estimated share of profit up to the date of retirement is credited to their Capital Account and debited to a newly opened temporary account called the “Profit & Loss Suspense Account”.
Q. 5054510. If debentures are converted into equity shares, it is a/an:
(A) Inflow of cash
(B) No flow of cash
(C) Outflow of cash
(D) Cash and Cash equivalents
Answer: (B) No flow of cash
Explanation: Converting debentures into equity shares is a non-cash transaction. It merely converts one form of liability/security into another without any actual cash changing hands.