12th Class Accountancy Financial Statement Of Company Question Bank

done Assertion and Reason - Financial Statements of a Company Total Questions - 3

• question_answer1)

  Assertion :

  While preparing Notes to Accounts on Share Capital, Calls-in-Arrears is shown by way of deduction from the Subscribed Capital (Subscribed but not fully paid-up).

  Reason (R) :

  As per the Companies Act, 2013, Part I of me Schedule III, Calls in Arrears is the other current asset of the company.

  Choose the Correct Option from the following:

  A)
  Assertion and Reason both are correct and Reason is the correct explanation of assertion done clear
  B)
  Assertion and Reason both are correct but Reason is not correct explanation of assertion done clear
  C)
  Only Assertion is correct. done clear
  D)
  Reason is correct but Assertion is not correct done clear
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• question_answer2)

  Assertion :

  Amount received in advance by a company, on calls not yet made should be shown in the Balance Sheet under

  Other Current Liabilities. It is called 'Calls-in-Advance'.

  Reason (R) :

  Company may receive amount against calls not yet made only if its Articles of Association permits.

  Choose the Correct Option from the following :

  A)
  Assertion and Reason both are correct and Reason is the correct explanation of assertion done clear
  B)
  Assertion and Reason both are correct but Reason is not correct explanation of assertion done clear
  C)
  Only Assertion is correct. done clear
  D)
  Reason is correct but Assertion is not correct done clear
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• question_answer3)

  Assertion :

  Mastheads and Publishing Titles are shown in the Balance Sheet under the sub-head 'Fixed Intangible Assets'.

  Reason (R) :

  Mastheads and Publishing Titles are fixed asset which do not have physical existence and cannot be seen and touched.

  Choose the Correct Option from the following :

  A)
  Assertion and Reason both are correct and Reason is the correct explanation of assertion done clear
  B)
  Assertion and Reason both are correct but Reason is not correct explanation of assertion done clear
  C)
  Only Assertion is correct. done clear
  D)
  Reason is correct but Assertion is not correct done clear
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