Why prepaid expenses are not considered as liquid assets? Post category:Accountancy Reading time:1 mins read SOLUTION Prepaid expenses are not considered as liquid assets because they cannot be converted into cash. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostWhy prepaid expenses are considered as Current assets? Next PostShould the bank overdraft be included in current liabilities? You Might Also Like D Ltd. invited applications for issuing 10,00,000 equity shares of Rs. 10 each. The public applied for 8,55,000 shares. Can the company proceed for the allotment of shares? Give reason in support of your answer. (C.B.S.E. 2014. Outside Delhi). September 29, 2022 The Balance Sheet of X, Y and Z who share profits and losses in the ratio of 3 : 2 : 1, as on 1st April, 2019 is as follows: August 2, 2022 Rohit, Kunal and Sarthak are partners in a firm. They decided to dissolve their firm. Pass necessary Journal entries for the following after various assets (other than Cash and Bank) and the third-party liability have been transferred to Realisation Account: (a) Kunal agreed to pay off his wife’s loan of Rs. 6,000. (b) Total Creditors of the firm were Rs. 40,000. Creditors worth Rs. 10,000 were given a piece of furniture costing Rs. 8,000 in full and final settlement. Remaining Creditors allowed a discount of 10% (c) Rohit had given a loan of Rs. 70,000 to the firm which was duly paid. (d) A machine which was not recorded in the books was taken over by Kunal at Rs. 3,000, whereas its expected value was Rs. 5,000. (e) The firm had a debit balance of Rs. 15,000 in the Profit and Loss Account on the date of dissolution. (f) Sarthak paid the realisation expenses of Rs. 16,000 out of his private funds, who was to get a remuneration of Rs. 15,000 for completing dissolution process and was responsible to bear all the realisation expenses. July 25, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
D Ltd. invited applications for issuing 10,00,000 equity shares of Rs. 10 each. The public applied for 8,55,000 shares. Can the company proceed for the allotment of shares? Give reason in support of your answer. (C.B.S.E. 2014. Outside Delhi). September 29, 2022
The Balance Sheet of X, Y and Z who share profits and losses in the ratio of 3 : 2 : 1, as on 1st April, 2019 is as follows: August 2, 2022
Rohit, Kunal and Sarthak are partners in a firm. They decided to dissolve their firm. Pass necessary Journal entries for the following after various assets (other than Cash and Bank) and the third-party liability have been transferred to Realisation Account: (a) Kunal agreed to pay off his wife’s loan of Rs. 6,000. (b) Total Creditors of the firm were Rs. 40,000. Creditors worth Rs. 10,000 were given a piece of furniture costing Rs. 8,000 in full and final settlement. Remaining Creditors allowed a discount of 10% (c) Rohit had given a loan of Rs. 70,000 to the firm which was duly paid. (d) A machine which was not recorded in the books was taken over by Kunal at Rs. 3,000, whereas its expected value was Rs. 5,000. (e) The firm had a debit balance of Rs. 15,000 in the Profit and Loss Account on the date of dissolution. (f) Sarthak paid the realisation expenses of Rs. 16,000 out of his private funds, who was to get a remuneration of Rs. 15,000 for completing dissolution process and was responsible to bear all the realisation expenses. July 25, 2022