When shares are issued at a discount, entries are to debit
Application allotment account and credit discount account
Discount account and credit
Cash account and credit discount account
Discount account and credit bank account
Correct answer is A
No explanation has been provided for this answer.
Net income
Revenue reserve
Capital reserve
Net loss
Correct answer is C
Capital reserve is derived from the accumulated capital surplus of a company, created out of capital profit.
When a share valued at 50k is issued at #1.59, it is said to be issued at
Par
Premium
Discount
Interest
Correct answer is B
Issue of shares at premium means that the issuing of shares above the face value (also called as nominal value or par value). Simply put, when shares are issued at a price higher than the face value, it is said to be issued at a premium.
In a partnership account, interest on drawings is
Debited to appropriation account
Credited to appropiation account
Treated as an expense in profit and loss account
Recorded in the balance sheet as current assets
Correct answer is B
Charging interest on drawings is a means of discouraging partners from withdrawing excessive amounts from the business. From this, it follows that interest on drawings is a debit entry in the partners' current accounts and a credit entry in the Appropriation Account.
A partnership's internal regulations are set out by
A deed
A law
A constitution
An article
Correct answer is A
A partnership deed, also known as a partnership agreement, is a document that outlines in detail the rights and responsibilities of all parties to a business operation. It has the force of law and is designed to guide the partners in the conduct of the business.