PLZ ANSWER ALL OR NONE Thanks Advanced Accounting 1 If the b

PLZ ANSWER ALL OR NONE, Thanks

Advanced Accounting 1 If the bad debts are recovered in cash which acount needs to affected? O Cash account Bad debt recovered Account O Doubtful debt provison Account Debtors Account 2. fair valuation gain of a subsidiary is $6,000 and the parent acquires the whole of it for £5,000, the difference of £1,000 would be known as O Negative godwill O Goodwill Badwill O Gain on acquistaion Equity section of owner\"s in the balance sheet consists of O Additional capital and common stock O Retained earning and paid up capital O Retained earning and common stock O None amoung these 3. Subsidiay copany invenotry includes invenotry worth $180,000 purchased from holding company. Goods worth $45,000 invoiced by hlding were in tra sit. The goods were inviced with 20% profit, what amount needs to be eleminated? 4. O 30000 O 37500 O 38333 O 36000 In partnerhsip the laibility of the partners are O Limited O Unlimited O Limited to capital employec O None amoung these 5.

Solution

Answer 1.

Cash Account

Explanation: Journal entry for recovery of bad debts

(a)Cash Account        Debit

Bad debts recovered Credit

(For receiving cash against Bad debts recovered)

(b)Bad debts recovered Debit

Profit and Loss Account Credit

(For transferring cash to profit and loss account to cancel or nullify the loss Bad debts recovered)

Final Entry for Closing                 Cash Account                  Debit

                                                          Profit and Loss Account                Credit

Answer 2.

Gain on Acquisition

Explanation:

Journal Entry

Subsidiary Company                        Debit         $ 6000

                                     Parent Company                                        Credit       $ 5,000

                                     Gain on Acquisition                                        Credit      $ 1,000

Answer 3.

Retained earnings and common stock

Explanation: Common stock includes additional capital and paid up capital that’s why other options could not be the answer.

Answer 4.

36000

Explanation: The amount to be eliminated is 36000 which is exclusive of profit as this is unrealised profit.

Calculation:

=Cost of Goods- Profit

=45,000 – 9000 (20% of 45,000)

=36,000

Answer 5.

Unlimited

Explanation: All the partners in a general partnership have unlimited liability, which means that after consuming business assets, their personal assets are equally responsible for the entire debts of the business.