MCQs

10. Which of the following statement is correct A Adjusted closing capital that higher than opening capital denotes loss. B Adjusted closing capital that higher than opening capital denotes profit. C Drawings will increase closing capital. D Net loss will increase closing capital. 11.During the financial year Paul took cash and goods amounting RM2,300 and RM1,000 for his personal. In addition, Paul brought in RM8,000 as new capital contribution. These transactions will A Increase the asset by RM4,700 B Increase the drawing by RM4,700 Increase the ending capital by RM4,700 D Increase the net profit by RM4,700 12.Total cash received for subscription during the year is RM15,000. At the end of the year, subscriptions in arrears is RM5,000 and subscriptions received in advance is RM4,000. The amount of subscription to be credited to Income and Expenditure Account should be: A RM24,000 B RM6,000 RM14,000 D RM16,000