S1: In the Single Entry System, a Statement of Affairs is prepared instead of a Balance Sheet. S2: The Statement of Affairs is prepared to ascertain the profit or loss. Which statement(s) is/are correct?
Explanation:
The Single Entry System is incomplete, so a Statement of Affairs (similar to a Balance Sheet) is prepared to find the capital at a given date. Profit or loss is ascertained by comparing opening and closing capital, not directly from the Statement of Affairs. S1 is correct, S2 is incorrect.
A company issues 20,000 equity shares of ₹10 each at a premium of ₹2 per share. Total amount received on application if full amount called on application will be:
No comments yet. Be the first to start the discussion!