Which of the following should be a 'charge' against profit and which should be an appropriation' of profit? (a) Provision for Doubtful Debts, (b) Provision for Depreciation, and (c) General Reserve.

Which of the following should be a 'charge' against profit and which s

1.	Which of the following should be a 'charge' against profit and which should be an appropriation' of profit? (a) Provision for Doubtful Debts, (b) Provision for Depreciation, and (c) General Reserve.
Answer» Solution :(a) Provision for Doubtful Debts is a charge against PROFIT. (b) Provision for DEPRECIATION is a charge against profit. (C) GENERAL RESERVE is an appropriation of porfit.

Discussion

No Comment Found

Related InterviewSolutions

X started a businesss on 1st April , 2018 witha capitalof â‚¹50,000 anda loanof â‚¹25,000 takenfrom Y. During2018-19, hehad introduced additional capital â‚¹25,000 andhad withdrawn15,000 for personal use. On 31st March , 2019 his assets were â‚¹1,50,000. Findhis capital as on 31st March, 2019 and profitmadeor lossincurred duringtheyear 2018-19.
X started a businesss on 1st April , 2018 witha capitalof ₹50,000 anda loanof ₹25,000 takenfrom Y. During2018-19, hehad introduced additional capital ₹25,000 andhad withdrawn15,000 for personal use. On 31st March , 2019 his assets were ₹1,50,000. Findhis capital as on 31st March, 2019 and profitmadeor lossincurred duringtheyear 2018-19.
X Ltd. Gets a contract of ₹ 100 crore to build a Shopping-Mal to be completed in 3 years. The management of the company wants to ascertain profit or loss on this contract only when the contract is completed. Is the management justified?
X Ltd. Follows the Written Down Value Method of depreciating machinery year after year due to
X Ltd . Follows the Written Down value Method of depreciating machinery year after year due to
X hasfollowingassetsand liabilities as on 31st March, 2019. Determinehis capital. Cash â‚¹25,000,Bankâ‚¹ 47,500, Debtors â‚¹ 18,000, Creditors â‚¹ 22,000, Pant and Machiney â‚¹ 80,000, Bulidingâ‚¹2,00,000, Furniture â‚¹ 24,000, Bills Receivableâ‚¹ 56,500, Bills Payable â‚¹23,500.
X hasfollowingassetsand liabilities as on 31st March, 2019. Determinehis capital. Cash ₹25,000,Bank₹ 47,500, Debtors ₹ 18,000, Creditors ₹ 22,000, Pant and Machiney ₹ 80,000, Buliding₹2,00,000, Furniture ₹ 24,000, Bills Receivable₹ 56,500, Bills Payable ₹23,500.
X' commenced business on 1st April, 2013 with a capital of 6,00,000. On 31st March, 2014 his assets were worth 8,00,000 and liabilities 50,000. Find out his closing capital.
Write two adventages of accrual basis of accounting.
Write the following transactions in Debtor's Account , Creditor's Account and Cash Account : {:(,,,"₹"),(1., "Cash sales" ,, 50","000), (3., "Cash received from X" ,, 56","000), (5.,"Paid to Y" ,, 30","000):}:| {:(,,,"₹") , (2., "Sold goods to X on credit" ,, 80","000), (4., "Purchase goods from Y on credit" ,, 44","000), (6., "Cash purchases from Y" ,, 16","000):}

Which of the following should be a 'charge' against profit and which should be an appropriation' of profit? (a) Provision for Doubtful Debts, (b) Provision for Depreciation, and (c) General Reserve.

Discussion

No Comment Found

Related InterviewSolutions

Reply to Comment