Underwriting commission paid on issue of debentures will appear in _______________.

Debit side of Profit and Loss Account

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Credit side of Profit and Loss Account

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Assets side of Balance Sheet

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Liabilities side of Balance Sheet

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Solution

The correct option is C Assets side of Balance Sheet
Underwriting commission paid is capital loss for the company. This will be shown in the asset side of the Balance Sheet under the head. 'Miscellaneous Expenditure' .

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Similar questions

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. Credit balance of profit & loss a/c is shown on the _____________.

Q. Credit balance of Profit & Loss Account shown in the liabilities side is accumulated profit and at the time of admission of a new partner, it is fully distributed among old partners in their old ratio.

Q. The investment in debentures is a investment, and it is shown on the side of the balance sheet.

On dissolution, how will you deal with partner's loan if appears on the

(a) assets side of the balance sheet,

(b) liabilities side of balance sheet.

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Underwriting commission paid on issue of debentures will appear in _______________.

The correct option is C Assets side of Balance SheetUnderwriting commission paid is capital loss for the company. This will be shown in the asset side of the Balance Sheet under the head. 'Miscellaneous Expenditure' .

The correct option is C Assets side of Balance Sheet
Underwriting commission paid is capital loss for the company. This will be shown in the asset side of the Balance Sheet under the head. 'Miscellaneous Expenditure' .