Reserve is created by transferring from the Revenue Account every year an amount equivalent to not less than 1/4 per cent and not more than 1/2 per cent of the original cost of the fixed assets until it equals 5 per cent of the original cost of the fixed assets. Uploader Agreement, Read Accounting Notes, Procedures, Problems and Solutions, Learn Accounting: Notes, Procedures, Problems and Solutions, Legal Provisions on Accounts of Electricity, Double Account System Maintained by Electricity Companies, Final Accounts of the Companies (With Solutions) | Accounting, Accounts of Banking Companies | India | Accounting, Fund Flow Statement and Income Statement| Accounting. This process of setting aside a certain sum continues throughout the prescribed period of the life of the asset till an amount equal to 90% of the original cost of the asset is reached. 38. Under the Compound Interest Method a certain sum is set aside every year and accumulated at compound interest of 4% p.a. MULTIPLE CHOICE QUESTIONS CHAPTERS 16 – 20 CHAPTER 16 1. Multiple Choice Questions (MCQ) for Current Electricity - ICSE Class 9 Physics on Topperlearning. Electricity Generation Company of Bangladesh EGCB Limited just published a New Job Circular for 72 Vacant Positions for 13 Categories. An annual contribution at a rate not exceeding ½% of the original cost of the fixed asset can be made after providing for interest and depreciation. EduRev is like a wikipedia EduRev is a knowledge-sharing community that depends on everyone being able to pitch in when they know something. In case it exceeds, it should be credited to Customers Rebate (or Benefit) Reserve. take online Mcqs Quiz test. Any other amount as may be allowed by the Central Government, having regard to the prevailing tax structure in the country. 4. of Accounts of Electricity Companies - Electricity Companies, Advanced Corporate Accounting B Com Notes | EduRev for B Com, the answers and examples explain the meaning of chapter in the best manner. 54. This course contains the study of Current of Electricity. The reserve is created out of profits in excess of the reasonable return earned by an electricity undertaking. Illustration 1: From the following information, prepare the Profit and Loss Account of South Indian Bank as on 31st March, 2004: Illustration 2: The following Trial Balance was extracted from the books of the United Bank […] A yield at the standard rate which is the Bank Rate stipulated by the Reserve Bank of India from time to time, plus 2% on the Capital Base. You can download Free Accounts of Electricity Companies - Electricity Companies, Advanced Corporate Accounting B Com Notes | EduRev pdf from EduRev by (a) The operating expenditure during the year of account and. P& l a/c is prepared for a period of one year by following: a) Consistency concept 2. The Course comprises of resources in the form of quizzes. PakMcqs is the Pakistan's largest Mcqs website, where you can find Mcqs of all subjects. If you want Accounts of Electricity Companies - Electricity Companies, Advanced Corporate Accounting B Com Notes | EduRev 45. The Electricity (Supply) Act, 1948, imposes restrictions on electricity undertakings on earning too high a profit, by means of the concept of reasonable return, which stipulates the following: 1. Question 1. (ii) Of the balance, 1/2 will be transferred to the Tariffs and Dividend Control Reserve. The office allowance which Managing Agents can draw is to include the salaries and wages of all persons employed in the office but not the salaries of the engineering staff employed for purposes of the undertaking. AND. If in any accounting year the clear profit excluding the special appropriations together with the accumulations, if any, in the Tariffs and Development Control Reserve fall short of reasonable return, the appropriations to this reserve can be reduced by the amount of shortfall. It can be utilised with the approval of the State Government for the following purposes: (i) Meeting expenses or loss of profits arising out of accidents, strikes or circumstances beyond the control of the management. a) electric cell b) switch c) carbon rods d) none of these ... About the parent company: Ankit Enterprises, established in December 2000, started with a small book store. This Reserve can be created until the total of such Reserve exceeds 8 per cent of the original cost of the assets. The amount of such reserve is to be invested in the same electricity undertaking and is to be handed over to purchaser of the business in case the business is sold away. When an asset has been written down to 10% (or less) of its original cost, no further depreciation is allowed in respect of that asset. (2) Mucor has biflagellate zoospores. Copyright 9. It can be utilised with the approval of the State Government for the following purposes: (i) Meeting expenses or loss of profits arising out of accidents, strikes or circumstances beyond the control of the management. a) Capital Account. 28, 00,000 after tax. Content Filtration 6. 2. When an asset has been written down to 10% (or less) of its original cost, no further depreciation is allowed in respect of that asset. As regards the depreciation method that can be applied, the Act makes provision for only two, viz., (a) Compound Interest or Sinking Fund Method, and (b) Straight Line Method. EGCB Job Circular, Apply Instruction, Admit Card Download Instruction and Exam Result information are given below. Assuming the bank rate is 10%, show how you deal with profits of the company. The amount of such reserve is to be invested in the same electricity undertaking and is to be handed over to purchaser of the business in case the business is sold away. Which one is a wrong statement? CA Mock Test Portal is developed to provide a quality test environment for the students who are studying various CA/CPT courses, we would like to take this opportunity to thank our mentors and all the students, Please make sure to contact us in case if you need any further information. B Com. on the opening balance of the Depreciation Reserve must be transferred from the Revenue Account to the Depreciation Reserve Account. 7. An amount equal to ½% on the amounts borrowed from organisations or institutions approved by the State Government. An amount equal to ½% on the amounts borrowed from organisations or institutions approved by the State Government. The balance in the reserve should be handed over to the purchaser in case the business is sold away. (A) only agents of a company-(B) only fiduciaries of a company-(C) only servants of a company under a contract of employment with the company-(D) All of the above-Answer: (D) 75- Role of doctrine of ultra vires is (A) to fight virus of ultras-(B) to protect indoor managers-(C) to confine corporate action within fixed limits- Any other amount as may be allowed by the Central Government, having regard to the prevailing tax structure in the country. Plagiarism Prevention 5. If in any accounting year the clear profit excluding the special appropriations together with the accumulations, if any, in the Tariffs and Development Control Reserve fall short of reasonable return, the appropriations to this reserve can be reduced by the amount of shortfall. A Banking Company needs to transfer a minimum of _____ its profit to reserve fund. After reading this you need not refer anything (including related institute material). Under this method interest at the rate of 4% p.a. Every electricity company is required to maintain a contingencies reserve. Section 67 of the Act provides for the creation of a General Reserve. The office allowance which Managing Agents can draw is to include the salaries and wages of all persons employed in the office but not the salaries of the engineering staff employed for purposes of the undertaking. The following balances have been extracted from the books of an electricity company at the end of the accounting year: In the accounting year, the company earned a profit of Rs. Moreover, even the surplus within 20 per cent of the reasonable return has to be disposed of as follows: (i) 1/3 of the surplus not exceeding 5 per cent of the reasonable return will be at the disposal of the undertaking. For the month of December 2019, Gray Electronic Repair Services used a total of $1,800 worth of electricity and water. In case it exceeds, it should be credited to Customers Rebate (or Benefit) Reserve. ANS. Tariff system takes into account various factors to calculate the total cost of the electricity. Image Guidelines 4. Accounting, Accounts of Electricity Companies, Company, Electricity Companies, India, Types. ADVERTISEMENTS: Here is a compilation of top four accounting problems on accounts of banking companies with its relevant solutions. 28, 00,000 after tax. In this, cost of materials, wages and overheads of each job undertaken is posted. B Com Accounts of Electricity Companies - Electricity Companies, Advanced Corporate Accounting B Com Notes | EduRev Summary and Exercise are very important for Every electricity company is required to maintain a contingencies reserve. . Marketing. Product cost Gram Co. develops computer programs to meet customers special requirements. Physics MCQs – Current of Electricity. Financial Statements Of A Company class 12 Notes Accountancy in PDF are available for free download in myCBSEguide mobile app. Study from Frank Solutions for ICSE Class 10 Physics Chapter 4 Current Electricity Exercises and MCQ to enhance your Physics capabilities. The reserve is created out of profits in excess of the reasonable return earned by an electricity undertaking. (ii) Meeting expenses of replacement or removal of plant or works other than the expenses necessary for normal maintenance or renewal. The best app for CBSE students now provides accounting for partnership firm’s fundamentals class 12 Notes latest chapter wise notes for quick preparation of CBSE board exams and school-based annual examinations. 3. A yield at the standard rate which is the Bank Rate stipulated by the Reserve Bank of India from time to time, plus 2% on the Capital Base. 45. E. This contains 30 Multiple Choice Questions for CA Foundation Test: Capital And Revenue Expenditures And Receipts - 1 (mcq) to study with solutions a complete question bank. When the transferee company hold shares in the transferor company, the set off entry in the books of the transferor company is made by crediting the transferee company and debiting the Shareholders account. For Example. Section 67 of the Act provides for the creation of a General Reserve. Account Disable 11. Assuming the bank rate is 10%, show how you deal with profits of the company. Every fixed asset must be depreciated; and for the purpose of depreciation, the life of each asset is to be taken as stated in the table given in the Seventh Schedule. b) Current Account. Terms, conditions and tariff for sale of electricity by Generating Company 44. Income derived from investments excluding investments made against the Contingencies Reserve. This can be utilised whenever the clear profit is less than the reasonable return. More than 1000 MCQ’s of CMA Intermediate Group 2, Paper 12 – Company Accounts and Audit subject. 21. This percentage cannot exceed 10% of the first Rs 5 lacs of such net profits and 7% of all net profits in excess of Rs 5 lacs. out B Com lecture & lessons summary in the same course for B Com Syllabus. Largest multiple choice questions answers website. The reserve is created by transfer of an amount equivalent to income-tax and super-tax (calculated at current rates) saved on account of development rebate allowed by the income-tax authorities. If in any accounting year the clear profit excluding the special appropriations together with the accumulations, if any, in the Tariffs and Development Control Reserve fall short of reasonable return, the appropriations to this reserve can be reduced by the amount of shortfall. To Buy Complete Classes Visit - https://www.StudyAtHome.org or Call: 8737012345. Telecommunication Account and Defence Account respectively, in the books of the Reserve Bank. this is your one stop solution. you can also Contribute to Pak Mcqs. Prohibited Content 3. CMA Intermediate CAA MCQ Compilation (CMA Inter Company Accounts and Audit MCQ Compilation) Exclusively for CMA Intermediate Students. An amount equal to ½% on the accumulations in the Development Reserve. You can also find Accounts of Electricity Companies - Electricity Companies, Advanced Corporate Accounting B Com Notes | EduRev ppt and other B Com slides as well. 3. Under the Straight Line Method of depreciation, an allowance is made each year which is equivalent to 90% of the cost of the asset divided by the prescribed period of the life of the asset. The document Accounts of Electricity Companies - Electricity Companies, Advanced Corporate Accounting B Com Notes | EduRev is a part of the. Disclaimer 8. Interested and Eligible Candidates can apply through online from 15 April 2018 to 30 April 2018. (b) Stores Ledger Control Account (c) Work-in-progress Ledger (d) Finished Goods Control Account. (a) The operating expenditure during the year of account and (b) The capital expenditure during the year of account. The procedure for computing the capital base is given below: Para XVII of the Sixth Schedule of the Act provides guidelines for the computation of clear profits which means the difference between the amount of income and the sum of expenditure plus specific appropriation. In case of an electricity company, depreciation on assets is calculated based on the rates notified by (A) Companies Act 2013 (B) State Electricity Commission (iii) Paying compensation payable under law for which no other provision has been made. This Reserve can be created until the total of such Reserve exceeds 8 per cent of the original cost of the assets. An annual contribution at a rate not exceeding ½% of the original cost of the fixed asset can be made after providing for interest and depreciation. 6. An amount equal to ½% on any loans advanced by the Board. Development Reserve: The reserve is created by transfer of an amount equivalent to income-tax and super-tax (calculated at current rates) saved on account of development rebate allowed by the income-tax authorities. With such a big organization, management, economy and control come into account automatically. [No. By continuing, I agree that I am at least 13 years old and have read and agree to the. 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