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. you can also Contribute to Pak Mcqs. Today’s interconnected power systems supply a number of consumers. Plagiarism Prevention 5. The credit balance of profit & Loss appropriation account in case of company is to be transferred to. (A) Maintenance cost (B) Electricity (C) Health and Accident Insurance (D) All of the above 6- _____ indicates the financial status of the business at given period. Central Superior Services (CSS) MCQs, Group A MCQs, Economics MCQs, Micro Economics MCQs, cartel; a sellers’ market , nationalized; privatized , natural monopoly; potentially competitive , monopolistic competition duopoly . 2. EGCB Job Circular, Apply Instruction, Admit Card Download Instruction and Exam Result information are given below. The amount is to be invested in trust securities. To Buy Complete Classes Visit - https://www.StudyAtHome.org or Call: 8737012345. take online Mcqs Quiz test. (iii) Paying compensation payable under law for which no other provision has been made. Practice on these quizzes will reinforce your fundamentals on the topic – Current of Electricity. An electricity company must adjust the rates so that the clear profit in any year does not exceed the reasonable return by more than 20 per cent of the reasonable return. The remuneration given to Managing Agents is, in the first place, a percentage of net profits. An amount equal to ½% on any loans advanced by the Board. B Com. EduRev is like a wikipedia your solution of Accounts of Electricity Companies - Electricity Companies, Advanced Corporate Accounting B Com Notes | EduRev search giving you solved answers for the same. If you want Accounts of Electricity Companies - Electricity Companies, Advanced Corporate Accounting B Com Notes | EduRev 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. More than 1000 MCQ’s of CMA Intermediate Group 2, Paper 12 – Company Accounts and Audit subject. 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) Stores Ledger Control Account (c) Work-in-progress Ledger (d) Finished Goods Control Account. AND. Every electricity company is required to maintain a contingencies reserve. 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. For Example. Power to Board to enter upon and shut down generating stations in certain circumstances 46. Before uploading and sharing your knowledge on this site, please read the following pages: 1. With such a big organization, management, economy and control come into account automatically. 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. a) Capital Account. 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. 38. CMA Intermediate CAA MCQ Compilation (CMA Inter Company Accounts and Audit MCQ Compilation) Exclusively for CMA Intermediate Students. Under the Compound Interest Method a certain sum is set aside every year and accumulated at compound interest of 4% p.a. Every electricity company is required to maintain a contingencies reserve. B . This can be utilised whenever the clear profit is less than the reasonable return. 7. 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. It shall also be in the form set out in part 1 of Schedule VI, or in such other form as may be approved by the Central Government [211 (1)]. StudyAtHome.org is an e-Learning Platform, that provides Video Lectures for … (a) General Ledger Adjustment Account (b) Stores Ledger Control Account (c) Work-in-progress Ledger (d) Finished Goods Control Account. 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. 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. You can download Free Accounts of Electricity Companies - Electricity Companies, Advanced Corporate Accounting B Com Notes | EduRev pdf from EduRev by An amount equal to ½% on the amounts realised by the issue of debentures. just for education and the Accounts of Electricity Companies - Electricity Companies, Advanced Corporate Accounting B Com Notes | EduRev images and diagram are even better than Byjus! for each Rs 1,000 of paid up share and debenture capital. 28, 00,000 after tax. ADVERTISEMENTS: Here is a compilation of top four accounting problems on accounts of banking companies with its relevant solutions. 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. 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. 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. Static Electricity - Current Electricity - Complete and Comprehensive Notes For Exam Preparation - Physics O Level (5054) and IGCSE (0625) and IGCSE (0972) October 11, 2020 Next post This Reserve can be created until the total of such Reserve exceeds 8 per cent of the original cost of the assets. Prohibited Content 3. The fixed portion of the semi variable cost of electricity for a manufacturing plant is a Period cost . Tariff system takes into account various factors to calculate the total cost of the electricity. (A) 10% (B) 15% (C) 20% (D) 25% 39. In the UK, electricity industry parts are a ____ and other parts are ___ ?? You can see some Accounts of Electricity Companies - Electricity Companies, Advanced Corporate Accounting B Com Notes | EduRev sample questions with examples at the bottom of this page. Accounting, Accounts of Electricity Companies, Company, Electricity Companies, India, Types. Terms, conditions and tariff for sale of electricity by Generating Company 44. (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- 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. 4. 10. In this, cost of materials, wages and overheads of each job undertaken is posted. 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. (a) The operating expenditure during the year of account and. 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. for each Rs 1,000 of paid up share and debenture capital. Under the Compound Interest Method a certain sum is set aside every year and accumulated at compound interest of 4% p.a. In case it exceeds, it should be credited to Customers Rebate (or Benefit) Reserve. 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. In case it exceeds, it should be credited to Customers Rebate (or Benefit) Reserve. 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. In this article we will discuss about the accounts of electricity companies, explained with the help of a suitable illustration. 3. Section 67 of the Act provides for the creation of a General Reserve. . In the second place, the amount paid to Managing Agents is subject to a minimum payment which should not exceed Rs 2 p.a. 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. An amount equal to ½% on the amounts borrowed from organisations or institutions approved by the State Government. 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. 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. Under this method interest at the rate of 4% p.a. 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. (ii) Meeting expenses of replacement or removal of plant or works other than the expenses necessary for normal maintenance or renewal. Assuming the bank rate is 10%, show how you deal with profits of the company. 3. 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. (iii) Paying compensation payable under law for which no other provision has been made. An amount equal to ½% on the amounts borrowed from organisations or institutions approved by the State Government. this is your one stop solution. Do check out the sample questions 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. Learn to understand and work with circuit diagrams with our step-by-step explanations. MULTIPLE CHOICE QUESTIONS CHAPTERS 16 – 20 CHAPTER 16 1. After reading this you need not refer anything (including related institute material). Interested and Eligible Candidates can apply through online from 15 April 2018 to 30 April 2018. 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. 6. These undertakings are usually incorporated under Special Acts and, as a result, the form of accounts is prescribed by, special statute. 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 […] The reserve is created out of profits in excess of the reasonable return earned by an electricity undertaking. 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. Electricity generation expansion planning (EGEP) is a process of planning for additional generation capacity from certain energy sources (coal, nuclear, … Which one is a wrong statement? Punjab, KPK, Sindh, Federal, Blochistan, Cambridge o-level a-level, Current Affairs, General Knowledge, MCAT, ECAT, GAT, GRE, and CSS MCQs 46. This course contains the study of Current of Electricity. By continuing, I agree that I am at least 13 years old and have read and agree to the. 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. It has gotten 3274 views and also has 4.9 rating. 54. 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. Question 1. 6. using search above. Content Filtration 6. Section 67 of the Act provides for the creation of a General Reserve. The balance in the reserve should be handed over to the purchaser in case the business is sold away. **Appropriate liability account (Utilities Payable, Rent Payable, Interest Payable, Accounts Payable, etc.) The reserve is created out of profits in excess of the reasonable return earned by an electricity undertaking. Income derived from investments excluding investments made against the Contingencies Reserve. (a) The operating expenditure during the year of account and (b) The capital expenditure during the year of account. 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. (ii) Of the balance, 1/2 will be transferred to the Tariffs and Dividend Control Reserve. 2. 12.4 MULTIPLE CHOICE QUESTIONS (MCQ’s): 1. In the second place, the amount paid to Managing Agents is subject to a minimum payment which should not exceed Rs 2 p.a. 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.
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