Gross profit in the branch adjustment account is transferred to the branch____________
Income and expenditure account
Profit and loss account
Receipt and payment account
Trading account
Correct answer is B
Records profit on branch account
Cash account
Purchase account
Goodwill account
Sales account
Correct answer is C
Goodwill is the excess of purchase consideration over the total value of the business
In the head office ledger, the value of goods sent to the branch are____________
Debited to the branch current account
Debited to the head office current account
Credited to the head office current account
Credited to the branch current account
Correct answer is B
Branch current account is maintained in the head office books to record all transactions between the head office and the branch. This account is debited with the following:
i. Goods sent to branch
ii. Expenses of the branch paid by the head office
iii. Profit of the branch
Goodwill account and credit partners capital account
Cash account and credit goodwill account
Goodwill account and credit cash account
Partners capital account and credit goodwill account
Correct answer is D
When goodwill is raised in the books at full value, the entry is
Dr Goodwill Account
Cr Old partners capital account (old ratio)
When the raised goodwill is written off, entry will be:
Dr All partners capital account
Cr Goodwill accounts
Note: goodwill written off includes new partners in the new profit sharing ratio
Call in advance
Call in arrears
Forfeiture
Shares
Correct answer is B
is the amount called by the company which is not paid by the shareholders before the due date fixed for payment