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Standard XII
Accountancy
Super Profit Method
Capital recei...
Question

Capital receipts are credited to _______.


A
respective account of capital nature
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B
trading and profit and loss account
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C
both a and b
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D
none of the above
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Solution

The correct option is D respective account of capital nature

Capital receipt includes cash from the sale of fixed assets (either tangible or intangible), cash from the sale of shares in the business, cash from the issuance of a debt instrument. The receipts are directly credited to the respective account which is capital in nature.


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Q. A and B are partners in a business and their capitals at the end of the year were Rs.7,00,000 and Rs6,00,000 respectively. Calculate their opening capitals considering the following information:
(a) Drawings of A and B for the year were Rs.75,000 and Rs.50,000 respectively.
(b) B introduced capital of Rs.1,00,000 during the year.
(c) Interest on capital credited to the Capital Accounts of A and B were Rs.15,000 and Rs.10,000 respectively.
(d) Interest on drawings debited to the Capital Accounts of A and B were Rs.7,500 and Rs.5,000 respectively.
(e) Share of profit credited to Capital Accounts was Rs.1,00,000 each.
Q.

State whether the following statement are true or false.

1. Final Accounts are prepared on the basis of Trial Balance.
2. Trading Account is a part of Profit & Loss Account.
3. Profit Loss Account is prepared to find out Gross Profit or Gross Loss.
4. Gross Profit or Gross Loss is transferred to Balance Sheet.
5. An amount of net profit is added to the capital.
6. All indirect expenses are debited to trading account.
7. Balance Sheet is a statement and not an account.
8. Capital account is a personal account.
9. Amount of prepaid expenses appears on assets side.
10. Bank Overdraft is a liability of business concern.

Q. When capitals are made proportionate to profit-sharing ratio and excess capital is paid back to a partner is his Capital Account debited or credited?
Q. Select the most appropriate alternative from those given below and rewrite the statement.

Final accounts are prepared on the basis of _________________ and adjustments.
a) trial balance
b) capital A/c
c) trading A/c
d) profit and loss A/c
Q. A and B are partners in a business and their capitals at the end of the year were Rs.7,00,000 and 6,00,000 respectively. Calculate their opening capitals considering the following information:
(a) Drawings of A and B for the year were Rs.75,000 and Rs.50,000 respectively.
(b) B introduced capital of Rs.1,00,000 during the year.
(c) Interest on capital credited to the Capital Accounts of A and B were Rs.15,000 and Rs.10,000 respectively.
(d) Interest on drawings debited to the Capital Accounts of A and B were Rs.7,500 and Rs.5,000 respectively.
(e) Share of loss debited to Capital Accounts was Rs.20,000 each.
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