A:-Gross profit + Sales + Direct Expenses + Purchases + Closing Stock =
Opening Stock

B:-Gross profit + Direct Expenses + Purchases + Closing Stock - Opening
Stock = Sales

C:-Gross profit + Direct Expenses + Purchases + Opening Stock - Closing
Stock = Sales

D:-None of the above
Correct Answer:- Option-C

Question18:-Which of the following statements are correct regard to consignment?
(|) | The abnormal loss on consignment is debited to consignment account

(॥) Overriding commission is calculated on credit sales

(111) Del-credere commission is allowed to the consignee to bear abnormal loss
(14) Good send on consignment is a nominal account

A:-Statement (I) and (III) are correct
B:-Statement (Il) and (III) are correct
C:-Statement (I) and (IV) are correct
D:-None of the above

Correct Answer:- Option-D

Question19:-Which of the following reserves that can be used for issue of bonus
shares?
(I) Realized capital profits and reserves arising from profit on sale of fixed assets
received

in cash.
(11) Balance in debenture redemption reserves account before redemption takes
place.
(Ill) Security premium arising on issue of shares on amalgamation or take over.
(IV) Capital Redemption Reserves Account created at the time of redemption of
redeemable

preference shares out of the profits.

A:-Statements (1) and (II)
B:-Statements (II) and (III)
C:-Statements (III) and (IV)
D:-Statements (1) and (IV)
Correct Answer:- Option-D

Question20:-Which of the following statements are correct?
(|) In case the new partner is unable to bring in cash for goodwill, a goodwill
account may

be raised in the firm's book as per AS-26.
(11) Inferred goodwill is calculated when the new partner does not bring cash
separately for

share of goodwill.
(111) Revaluation account is prepared when the firm is amalgamated with another
firm.

A:-Statements (1), (Il) and (III) are correct