1. Read the following statements: a) Liabilities of partners are limited b) Partnership has no separate legal entity C) After the death of any partner business may continue with his legal representatives d) The management of the company is done by Shareholders Select the correct statements. * A. (a) and (b) B. (b), (c) and (d) O C. Only (a) D. (a) and (d) 2. Read the following statements: a) If partnership agreement (Deed) is silent partners will not get any profit b) Partnership is more advantageous than sole trader because partners can share the risk c) All partners should contribute equal capital to the firm. d) It is advised that partnership agreement should be always in T TA W 2. Read the following statements: a) If partnership agreement (Deed) is silent, partners will not get any profit. b) Partnership is more advantageous than sole trader because partners can share the risk c) All partners should contribute equal capital to the firm. d) It is advised that partnership agreement should be always in writing Out of the above, which statements are true? * A. Only (c) B. (a) and (0) C. (b) and (d) D. All the above 3. In a partnership firm there are two partners - X and Y. They share profit in the ratio of 55% and 45%. X contributed capital of $180,000 and y contributed $160,000. Partnership Agreement says partners are eligible to get interest on capital at 10%. Income Statement of a Partnership firm shows the net profit of $200,000, How much profit X and Y will receive from the partnership? A. X=591,300 and Y $74.700 B. X = $49,800 and Y = 533.200 C. X = $60,000 and Y - 540.000 D. X = $54,000 and Y = $32,000 4. The Income Statement of a partnership fimm shows Net Income of $75,000. A partner has provided $40,000 loan to the partnership firm at 5% interest. Also, in the agreement it is provided that one of the partners is eligible to get salary of $25,000 How much is the Net Profit of the partnership firm available for appropriation? A $47.000 B. $49.000 C $49.000 D. 550.000 5. Read the following statements: (a) Preference Shareholders have the preferential right to receive dividend (b) Equity shareholders receive fixed rate of dividend every year. (c) Preference shareholders can participate in the management of the company (d) Equity Shares can be converted into Preference shares. Identify which statement/s are false.* A. (a), (b) and (d) B. Only (a) C. (a), (b), and (c) D. (b), (c), and (d) 6. A company issued 10,000 shares at $0.80, even though the face value of the share is $1. Pass journal entry for the issue of shares. A. Cash A/C Dr 510.000 and Share Capital A/c Cr 510,000 8. Share Capital A/C Dr 510.000 and Cash A/C C 510.000 C Cash A/C Dr $8.000. Discount on issue of shares A/c Dr. $2.000 and Share Capital A/c Cr $10.000 Di Cash A/C Dr 8,000Share Premium A/c Dr. 5 2.000 and Share Capital A/c Cr 10.000 7. A company issued 100,000 Shares of $1 each at $1.50 each. After 5 years, company issued right shares of 2 for 4 shares at $3 each. After 5 years, company issued bonus shares of 2 for 5 shares. Journal entry for the issue of bonus shares only is: * A. Debit: share Premium A/c $150,000 and Credit Share Capital A/c $210,000 B. Credit Share Capital A/c $60,000 and Debit Share Premium A/c $60,000 Debit Cash A/c $60,000 and Credit Share Capital A/c 560,000 D. Debit Bank A/c $210,000 and Credit Share Capital A/c 560,000 and Credit Share Premium A/c S150,000 8. A company issued 100,000 Shares of $1 each at $1.50 each. After 5 years, company issued bonus shares of 1 for 5. The balance shown in share Capital and Share premium after bonus issue is: * A Share Capital $120,000 and Share Premium $30.000 B. Share Capital $100.000 and Share Premium 550.000 C. Share Capital 580.000 and Share Premium 530,000 D. Share Capital $120.000 and Share Premium $50,000 9. Issue of shares at discount means: * A. Shares issued at more than market price B. Shares issued at more than nominal value C. Share issued at less than market price D. Share issued at less than nominal value 10. The component of Shareholder's Equity is: A. Share Capital. Share Premium and Retained Earnings B. Share Capital, Share Premium and Long-term Liability C. Share Capital. Long-term Liability and Current Liability D. Non-current Assets. Current Assets and Share Capital