Correct Answer:- Option-D

Question14:-Debenture issued as collateral security for Rs. 20,000 will be debited
to

A:-Debenture suspense account
B:-Bank account

C:-Debentures account

D:-Debentures redemption fund account
Correct Answer:- Option-A

Question15:-Which of the following statements are correct with regard to the
matching concept of accounting?
(|) An income earned by a business during a particular period is determined by
matching

expense with revenue.
(11) In matching process, only such revenues are taken into account which are
regarded as

realized.
(111) In case of gold mining industries revenue is recognized in the accounting
period in

which the gold is mined.
(൧ In case of long term contracts, revenue is generally recognized only on full
completion

of the contract.

A:-Statements (1), (Il) and (III) are correct
B:-Statements (II), (Ill) and (IV) are correct
C:-Statements (1), (Il) and (IV) are correct
D:-Statements (1), (III) and (IV) are correct
Correct Answer:- Option-A

Question16:-Which of the following conditions must satisfied in order to ensure
forfeiture of shares is valid?
(|) The power of forfeit of shares must expressly give by the company's
memorandum of

association.
(॥) There should be a default by the shareholder in payment of a valid call.
(111) A notice of demand, requiring the shareholder to pay calls of a specified
amount within

the specified period must be given.
(IV) The board of directors must pass a resolution for forfeiture of shares.

A:-Statements (1), (Il) and (III) are correct
B:-Statements (II), (Ill) and (IV) are correct
C:-Statements (1), (Il) and (IV) are correct
D:-All the statements are correct

Correct Answer:- Option-B

Question17:-Which one of the following is correct?