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Ans – b) Explanation:- Intermediate consumption expenditures are the expenditure of the firm that are resold by the firm to others. Thus the cost of hiring a chartered accountant by the firm is added to the final product of the…
Ans – c) If the value of an asset falls due to unforeseen obsolescence, natural calamities like floods, earthquakes, etc., or due to thefts, etc. it is called a capital loss.
Ans – a) Explanation:- Gross investment = Closing Fixed Capital + Closing Stock – Opening Fixed Capital – Opening Stock Gross investment = 55 Crore + 5 Crore – 50 Crore – 10 Crore = 0 Gross Investment is the…
Ans – b) Explanation:- Gross investment is the capital invested during the year. In other words, the addition to the present stock of investment during the year is called gross investments. Thus ₹ 110 crore – ₹ 100 crore =…
Ans – c) Explanation:- Food items are purchased by the production unit to manufacture other products. For example, milk is purchased by a sweet shop to manufacture sweets and other desserts. Thus food items are used once in the production…
Answer:- Any two of the following: 1) There should be two or more persons 2) There should be an agreemtn 3) There should be a lawful business 4) There should be sharing of the profits of business 5) There should…
Answer:- Individually:- Partners Collectively:- Firm
No, there is no need to enter into Partnership Deed because the activities are not in the nature of business but charity. Thus, an essential component of business that it should be carried on with the purpose to earn profits,…
Answer:- i) Interest on Capital will not be allowed (paid) ii) Interest on drawings will not be charged iii) Interest on loan from a partner will be allowed (Paid) @ 6% p.a. iv) profit/Loss will be shared equally.
Answer:- Yes, if the Partnership Deed so provides.