871. In the balance sheet of Praveen for 2013 and 2014, 4% debentures are Rs 5,00,000 and Rs 4,00,000, respectively. Profit on redemption of debentures in 2013 is nil while in 2014 is Rs 4,000. What is the amount of redemption for the purpose of funds flow statement?
A. Rs 96,000
B. Rs 1,04,000
C. Rs 9,00,000
D. Rs 9,04,000

872. The balance of property at cost has been RS 20,000 and Rs 17,000 in 2013 and 2014 respectively. The profit on sale of property of Rs 2000 is credited to Capital Reserves Account. New property costing Rs 5000 bought in 2014. Determine sale of proceeds from land.
A. Rs 3000
B. Rs 10,000
C. Rs 7000
D. Rs 15,000

873. The Balance sheet of Ram at end of 2013 and 2014 disclose investments in shares of Rs 2000 and Rs 3000, respectively. Rs 100 as pre-acquisition dividend has been credited to investments account. Determine purchase of investments.
A. RS 5000
B. Rs 1000
C. Rs 1,100
D. None of the above

874. The balance of fixed assets of Y Ltd. at cost at the end of 2013 and 2014 were Rs 5,70,800 and Rs 6,15,300. During the year 2014 a machinery costing Rs 60,000 was sold. Determine the purchase of fixed assets.
A. Rs 1,04,500
B. Rs 1,40,500
C. Rs 1,64,500
D. None of the above

875. Which of the following are applications of funds?
A. Payment of dividend on share capital
B. Payment of tax
C. Increase in working capital
D. All of above

876. Which of the following are treated as long term investments?
A. Non-current investments
B. Trade Investments
C. Sinking fund investments
D. All of the above

877. Provision of taxation is treated as
A. As a current liability
B. As an appropriation of profits
C. Either a or b
D. None of the above

878. As per accounting standard AS3, provision for taxation should be treated as
A. As a current liability
B. As an appropriation of profits
C. Either a or b
D. None of the above

879. Which of the following statement is true?
A. If the amount of good will increases during current year, the difference is treated as purchase of goodwill.
B. If the amount of good will decreases during current year, It will treated as written off.
C. Both a and b
D. None of the above

880. The opening and closing balance of general reserves are Rs 10,000 and Rs 9,000, respectively. It is stated in addition information that a loss of Rs 1000 has been written off in general reserves. In such a case, decline in reserve and loss on investment will be adjusted in P&L account.
A. True
B. False


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