Financial Accounting II- Second Examination

As per Garner Vs Murray decision, in the absence of any agreement, the loss due to the insolvency of a partner should be borne by the solvent partners in ----- ratio.

• Capital

• Profit sharing

• Equally

• None of the above

Hire Purchase Price=

• Cash Price

• Interest amount

• Cash Price + Instalments

• Cash Price+ Interest charged

The purpose of opening branches are to

• Increase goodwill

• Increase sales and sales territory

• Increase Capital

• Increase efficiency

------- has the right to terminate the agreement under hire purchase system.

• Hirer
• Vendor

• Buyer

• Seller

A ---- item is one which has been sent by one party but not received by other party before the closing of the books of accounts.

• Cost

• Personal

• Combo

• Transit

------- is the amount required to be paid by the buyer on signing the the agreement under Hire purchase system

Any price at which the goods are sent by head office to the branch above the cost price is known as ---------.

• Primary price

• Sales price

• Cash price

• Invoice price

--- --- is a document that contains the important terms and conditions of partnership as agreed by the partners.

• Partnership Document

• Articles of Partnership

• Partnership Law

• Partnership Firm

Under Hire purchase system, possession of the goods is transferred from seller to the buyer

• On Payment of the last instalment

• On signing the agreement

• On payment of the first instalment

• Never transferred

Departments are opened to increase ----------------- of the business.

• Profit

• Goodwill

• Efficiency

• Co-operation