Match the following.
Adjustment Treatment in balance sheet I. Depreciation 1. Shown on assets side II. Unexpired expenses 2. Shown on debited side III. Interest on capital 3. Deducted from values of assets IV. Manager’s commission 4. Shown as addition to capital
[I-3, II-1, III-4, IV-2]
The correct answer is option 4: - I. Depreciation: Deducted from values of assets (I-3) - II. Unexpired expenses: Shown on assets side (II-1) - III. Interest on capital: Shown as addition to capital (III-4) - IV. Manager’s commission: Shown on debited side (IV-2)
Similar Questions
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Which of the following statement is FALSE in relation to the term depreciation?
Which of the following statement is FALSE?
Which of the following statement is NOT TRUE in regard to reserve and provision?
Provision is _______ against profit.
Important Questions from Depreciation, Reserve & Provision
For charging depreciation on which of the following assets, the depletion method is adopted?
Which of the following statements is true?
For depreciation on leasehold property, the appropriate method of depreciation is
Which of the following is not an example of Capital Reserve?
Ways of creating secret reserve
1. by supressing the sale
2. by undervaluing stock-intrade and goodwill
3. by charging excessive depreciation
4. by charging capital expenditure to Profit & Loss A/c
