In the Balance Sheet, 'Share Application Money Pending Allotment' is shown as: MCQ with Answer and Explanation

Question

Share Report Error

In the Balance Sheet, 'Share Application Money Pending Allotment' is shown as:

A. Non-current liability

B. Share capital

C. Current liability

D. Reserves and surplus

Answer: Option C

Solution (By JKSSB Mock Tests)

It is a liability until shares are allotted, and if allotment is due within 12 months, it's current.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Practice More Accountancy and Book Keeping Questions

Question #1

Which of the following is not a column in a three-column cash book?

A. Discount

B. Journal folio

C. Cash

D. Bank

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Correct Answer: Option B

Explanation:
Three-column cash book has discount, cash, and bank columns. Journal folio is not a column; ledger folio might appear.

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Question #2

In a bank reconciliation, a 'Dishonoured cheque' recorded in passbook but not in cash book will: (starting with cash book Dr.)

A. Be deducted

B. No effect

C. Be added

D. Double entry

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Correct Answer: Option A

Explanation:
Dishonoured cheque reduces bank balance as per passbook, so to reconcile from cash book to passbook, deduct.

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Question #3

Tax evasion is:

A. Government policy to waive taxes

B. Postponement of tax payment legally

C. Illegal non-payment or underpayment of taxes

D. Legal use of tax laws to reduce liability

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Correct Answer: Option C

Explanation:
Tax evasion involves illegal practices like hiding income or inflating expenses to avoid paying true tax liability.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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