[amp_mcq option1=”i and iv are correct” option2=”ii and iv are correct” option3=”iii and iv are correct” option4=”i and iii are correct” correct=”option4″]<\/p>\n
The correct answer is: D. i and iii are correct<\/strong><\/p>\n In the final account preparation process, the credit on investment is calculated as follows:<\/p>\n Credit on investment = Opening balance of investment + Net profit – Drawings – Closing balance of investment<\/p>\n Profit = Sales – Cost of goods sold – Operating expenses<\/p>\n Stock valuation is only necessary to determine the cost of goods sold.<\/p>\n Statement (iii)<\/strong> is correct. Working audit is a statutory requirement for auditing a company. A working audit is a detailed examination of the books and records of a company to ensure that they are accurate and complete. The working audit is conducted by the company’s auditors and is required by law.<\/p>\n<\/li>\n Statement (iv)<\/strong> is incorrect. Garner vs. Murray case does not deal with the settlement of accounts in case of bankruptcy of a partner of a partnership firm. The Garner vs. Murray case deals with the liability of partners in a partnership firm. The case held that partners are jointly and severally liable for the debts of the partnership firm.<\/p>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”i and iv are correct” option2=”ii and iv are correct” option3=”iii and iv are correct” option4=”i and iii are correct” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-54090","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n\n
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