1.Securities premium sccount should not be used for which of the following purpose?
(a) Declaring dividend
(b) Issue of bonous share
(c) Writting off preliminary expeness
(d) Paying premium on redemption of preference share.
2.The gross profit of a concern is Rs 100000 and gross profit ratio is 25%. The sales return amounted to Rs 17500. The gross sales of the concern is
(a) Rs 400000
(b) Rs 382500
(c) Rs 417500
(d) Rs 500000
3. Which of the method is not recommended by AS2?
(a) FIFO
(b)LIFO
(c)Weighted average
(d)Specific identification method
4. Cost of shifting of business to a more suitable locality is
(a) Capital loss
(b) Capital expenditure
(c)Revenue expenditure
(d) Deferred revenue expenditure
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