CA CPT Fundamentals of Accounting Question Papers 2013

16. Share Premium A/c appears in the Balance Sheet under the heading.

a) Current liabilities
b) Reserves & Surplus
c) Miscellaneous expenditure
d) None of the above

17. The goods or cash taken by the proprietor for his personal use will be debited to ____

a) Expenditure a/c
b) Debtors a/c
c) Drawings a/c
d) None of these

18. Interest on drawings is a ___ to the business

a) Expenditure
b) Gain
c) Liability
d) Loss

19. If a contingent liability becomes probable, it has to be:

a) Shown in notes on accounts
b) Provided in the books of accounts
c) Ignored and no entry will be passed
d) Shown in director's report

20. Capital reserves are created out of:

a) Capital Profits
b) Profits in balance
c) Revenue profits
d) None