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Accounting for Companies-I

Notes Particulars ` Particulars `
To administrative & selling expenses 3,25,000 By gross profit 15,00,000
To bad debts 27,000 By subsidy from central bank 2,00,000
To salary & bonus 1,50,000 By profit on sale of plant 1,50,000
To development rebate reserve 40,000 Cost ` 6,00,000
To income-tax 30,000 Realised ` 7,00,000
To tax on abnormal profits 5,000
To managerial remuneration 75,000
To provision for depreciation 2,50,000
To net profit 9,48,000
18,50,000 18,50,000

Answers: Self Assessment

1. True 2. False
3. 5% 4. Shareholder
5. 387 6. 349

7. Effective capital 8. True
9. True 10. True
11. False 12. False
13. False 14. True

15. False 16. True
17. True 18. B
19. D 20. D

12.8 Further Readings

Books Corporate Accounting - Dr. K.K. Verma

Online links http://moneyterms.co.uk/rights-issue/
http://investmentarticle.com/why-do-companies-conduct-rights-issue.html

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