1. A. (i) Statement of Profit or Loss is prepared under the Single Entry System to ascertain profit.
(ii) The debit balance of insolvent partner’s capital account which insolvent partner cannot pay is called capital deficiency.

(iii) Non - recurring expences are those capital expenses which are spent for acquisition of fixed asssets like purchase of land or furniture, in order to run the concern and it gives benefits for a lon period say more than 3 years.

(iv) Gain ratio is calculated at the time of retirement of a partner by deducting old ratio from new ratio.

(v) A bill of exchange is said to be retired if its acceptor makes payment of it before its due date, usually after deducting some discount or rebate.

Q1. B.

(i) Bad debts

(ii) Drawee

(iii) Gross Profit ratio / Turnover ratio.

(iv) Dissolution of Partnership firm.

(v) Notary Public.

Q. 1. C.

(i) Goodwill is an intangible asset.

(ii)  Debenture is an acknowledgement of debt under common seal of a company.

(iii) Whem closing capital is greated than opening capital it is denotes Profit.

(iv) Cash proceeds from the issue of debentures is a Financial activity.

(v) Payee is a person to whom the amount on a bill is payable.

Q. 1. D.

(i) True

(ii) False

(iii) True

(iv) False

(v) False.

Q. 1. F.

Solution : Single Entry

Solution : Admission of partner

Click for Retirement of partner solution

Bill of Exchange Solution Click Here

Dissolution problem Akbar and Birbal

Modern Chemicals Co. Ltd. Issue of Shares Solution

NPO Answer Click Here

Final Account Answer Click Here

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