Tag: introduction of financial statement of company

Questions Related to introduction of financial statement of company

An equipment was purchased on 1st January, 2012 for Rs. 25,000 and is to be depreciated at 30% based on reducing balance method. If the company closes its books of account on 31st March every year, what would be the net book value-of the equipment as at 31 * December, 2013 ______________.

elements of accounts introduction of financial statement of company general instructions for preparation of balance sheet tools of financial statements uses, importance, and limitation of financial statements

  1. Rs. 12,250

  2. Rs. 17,750

  3. Rs. 10,000

  4. Rs. 12,545.

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Correct Option: A
Explanation:

Value of Equipment as on 1st Jan $2012=  Rs. 25,000$
Less: Depreciation for the year  $2012   = 7,500$
Total                                                     $ = 17,500$
Less: Depreciation for the year 2013(17,500 x 30%) $= 5,250$
Net Book value of the Equipment $ = Rs. 12,250$

A person who is indebted to the company for which amount cannot be appointed to set as an auditor of a company?

elements of accounts introduction of financial statement of company general instructions for preparation of balance sheet tools of financial statements uses, importance, and limitation of financial statements

  1. As may be prescribed

  2. $1,000$

  3. $3,000$

  4. $5,000$

Show answer
Correct Option: A
Explanation:

Section $141(3)$, of the companies act, $2013$ defines disqualification of the auditor. As per this section a person who is indebted to the company for an amount exceeding one thousand rupees, or who has given any guarantee or provided any security in connection with the indebtedness of any third person to the company for an amount exceeding one thousand rupees is disqualified to be appointed as auditor.