Under 'Finance Lease', the lessee records the leased asset in his books as per: MCQ with Answer and Explanation

Question

Share Report Error

Under 'Finance Lease', the lessee records the leased asset in his books as per:

A. AS 2

B. AS 19

C. AS 6

D. AS 10

Answer: Option B

Solution (By JKSSB Mock Tests)

AS 19 Leases requires lessee to capitalize finance lease.

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

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1

Share Report

In a merger, Company A (profit ₹10,00,000, 2,00,000 shares) acquires Company B (profit ₹5,00,000, 1,00,000 shares). A issues 1 share for every 2 shares of B. What is the post-merger EPS of Company A?

A. ₹7.00

B. ₹6.00

C. ₹5.00

D. ₹5.60

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
Total Post-merger Profit = 10,00,000 + 5,00,000 = ₹15,00,000. New shares issued by A = 1,00,000 / 2 = 50,000. Total shares of A = 2,00,000 + 50,000 = 2,50,000. Post-merger EPS = 15,00,000 / 2,50,000 = ₹6.00.

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