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. Every electricity company is required to maintain a contingencies reserve. Physics MCQs – Current of Electricity. Accounting, Accounts of Electricity Companies, Company, Electricity Companies, India, Types. This is 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. 3. These undertakings are usually incorporated under Special Acts and, as a result, the form of accounts is prescribed by, special statute. 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. For the month of December 2019, Gray Electronic Repair Services used a total of $1,800 worth of electricity and water. Learn to understand and work with circuit diagrams with our step-by-step explanations. Content Guidelines 2. Practice on these quizzes will reinforce your fundamentals on the topic – Current of Electricity. 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. Today’s interconnected power systems supply a number of consumers. (3) Haploid endosperm is typical feature of gymnosperm. AND. Corporate Accounting Multiple Choice Questions and Answers COMPANY ACCOUNTS MCQS CORPORATE ACCOUNTING MCQS COMPANY ACCOUNTS MULTIPLE CHOICE QUESTIONS AND ANSWERS. In the UK, electricity industry parts are a ____ and other parts are ___ ?? 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 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. ... Electricity to the bulb in a torch is provided by the _____ . When a fixed asset becomes obsolete or inadequate or superfluous or is discarded for any other reason, it cannot be depreciated any further. Telecommunication Account and Defence Account respectively, in the books of the Reserve Bank. 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. 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. (iii) Paying compensation payable under law for which no other provision has been made. 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. In case it exceeds, it should be credited to Customers Rebate (or Benefit) Reserve. Account Disable 11. Disclaimer 8. The remuneration given to Managing Agents is, in the first place, a percentage of net profits. (a) The operating expenditure during the year of account and (b) The capital expenditure during the year of account. Tariff refers to the amount of money the consumer has to pay for making the power available to them at their homes. 4. 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. 5. this is your one stop solution. 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. Accounts of Electricity Companies - Electricity Companies, Advanced Corporate Accounting B Com Notes | EduRev chapter (including extra questions, long questions, short questions, mcq) can be found on EduRev, you can check 6. **Appropriate liability account (Utilities Payable, Rent Payable, Interest Payable, Accounts Payable, etc.) Plagiarism Prevention 5. The balance in the reserve should be handed over to the purchaser in case the business is sold away. 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 (b) The capital expenditure during the year of account. EduRev is a knowledge-sharing community that depends on everyone being able to pitch in when they know something. B . Under this method interest at the rate of 4% p.a. 6. for each Rs 1,000 of paid up share and debenture capital. . 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. Section 67 of the Act provides for the creation of a General Reserve. The question patterns chosen in these quizzes are based on past exam papers. Before understanding tariff of electricity system in detail, a slight overview of the… a) Capital Account. Income derived from investments excluding investments made against the Contingencies Reserve. 2. 3. c) None of these. 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. 38. Under this method interest at the rate of 4% p.a. 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. More than 1000 MCQ’s of CMA Intermediate Group 2, Paper 12 – Company Accounts and Audit subject. Tests & Videos, you can search for the same too. An amount equal to ½% on the amounts borrowed from organisations or institutions approved by the State Government. 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. Punjab, KPK, Sindh, Federal, Blochistan, Cambridge o-level a-level, Current Affairs, General Knowledge, MCAT, ECAT, GAT, GRE, and CSS MCQs (iii) Paying compensation payable under law for which no other provision has been made. 5. Copyright 9. 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. An amount equal to ½% on the amounts realised by the issue of debentures. In this, cost of materials, wages and overheads of each job undertaken is posted. 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. 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. [No. C . The Double Account System is a method of presenting the annual final accounts/annual financial statements of public utility undertakings, like Railways, Electricity, Gas, Water Supply, Tramways etc. B Com Accounts of Electricity Companies - Electricity Companies, Advanced Corporate Accounting B Com Notes | EduRev Summary and Exercise are very important for By continuing, I agree that I am at least 13 years old and have read and agree to the. (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- 45. Electricity Generation Company of Bangladesh EGCB Limited just published a New Job Circular for 72 Vacant Positions for 13 Categories. MULTIPLE CHOICE QUESTIONS CHAPTERS 16 – 20 CHAPTER 16 1. The amount is to be invested in trust securities. P& l a/c is prepared for a period of one year by following: a) Consistency concept 2. (ii) Of the balance, 1/2 will be transferred to the Tariffs and Dividend Control Reserve. EduRev is like a wikipedia 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. 45. Assuming the bank rate is 10%, show how you deal with profits of the company. Terms of Service 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. ANS. (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. 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. With such a big organization, management, economy and control come into account automatically. (ii) Meeting expenses of replacement or removal of plant or works other than the expenses necessary for normal maintenance or renewal. on the opening balance of the Depreciation Reserve must be transferred from the Revenue Account to the Depreciation Reserve Account. This can be utilised whenever the clear profit is less than the reasonable return. CMA Intermediate CAA MCQ Compilation (CMA Inter Company Accounts and Audit MCQ Compilation) Exclusively for CMA Intermediate Students. 2. This Reserve can be created until the total of such Reserve exceeds 8 per cent of the original cost of the assets. EGCB Job Circular, Apply Instruction, Admit Card Download Instruction and Exam Result information are given below. (b) Stores Ledger Control Account (c) Work-in-progress Ledger (d) Finished Goods Control Account. Which one is a wrong statement? An amount equal to ½% on any loans advanced by the Board. 54. 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. The credit balance of profit & Loss appropriation account in case of company is to be transferred to. 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. In case it exceeds, it should be credited to Customers Rebate (or Benefit) Reserve. 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. 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. 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. 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. 10. 43-A. Terms, conditions and tariff for sale of electricity by Generating Company 44. on the opening balance of the Depreciation Reserve must be transferred from the Revenue Account to the Depreciation Reserve Account. 21. (iii) The balance left will be distributed among consumers by way of reduction of rates or by way of special rebate. B Com. 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. For Example. An amount equal to ½% on the accumulations in the Development Reserve. 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)]. Any other amount as may be allowed by the Central Government, having regard to the prevailing tax structure in the country. An amount equal to ½% on the accumulations in the Development Reserve. 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. 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. Financial Statements Of A Company class 12 Notes Accountancy in PDF are available for free download in myCBSEguide mobile app. 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. The remuneration given to Managing Agents is, in the first place, a percentage of net profits. E. Accounts of Electricity Companies - Electricity Companies, Advanced Corporate Accounting B Com Notes | EduRev notes for B Com is made by best teachers who have written some of the best books of out B Com lecture & lessons summary in the same course for B Com Syllabus. In the second place, the amount paid to Managing Agents is subject to a minimum payment which should not exceed Rs 2 p.a. 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! The balance in the reserve should be handed over to the purchaser in case the business is sold away. b) Current Account. The reserve is created out of profits in excess of the reasonable return earned by an electricity undertaking. 12.4 MULTIPLE CHOICE QUESTIONS (MCQ’s): 1. Treatment of Replacement of Assets - Electricity Companies, Advanced Corporate Accounting, Double Accounts System - Electricity Companies, Advanced Corporate Accounting. 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. (iii) The balance left will be distributed among consumers by way of reduction of rates or by way of special rebate. ADVERTISEMENTS: Here is a compilation of top four accounting problems on accounts of banking companies with its relevant solutions. Content Filtration 6. An amount equal to ½% on any loans advanced by the Board. Multiple Choice Questions (MCQ) for Current Electricity - ICSE Class 9 Physics on Topperlearning. This Reserve can be created until the total of such Reserve exceeds 8 per cent of the original cost of the assets. In Tinsukia Electricity Company v. State of Assam, the Supreme Court pointed out that the term ‘Socialist’ used in the Preamble to the Constitution of India, means State whose basic policy is to: A. prohibit concentration of wealth and distribute equitability the natural resources . (2) Mucor has biflagellate zoospores. take online Mcqs Quiz test. 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