{"id":59537,"date":"2024-04-16T01:39:00","date_gmt":"2024-04-16T01:39:00","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=59537"},"modified":"2024-04-16T01:39:00","modified_gmt":"2024-04-16T01:39:00","slug":"if-vendors-are-issued-fully-paid-shares-of-rs-12000-in-consideration-of-net-assets-of-rs-9000-then-the-balance-of-rs-3000-will-be","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/if-vendors-are-issued-fully-paid-shares-of-rs-12000-in-consideration-of-net-assets-of-rs-9000-then-the-balance-of-rs-3000-will-be\/","title":{"rendered":"If vendors are issued fully paid shares of Rs. 12,000 in consideration of net assets of Rs. 9,000, then the balance of Rs. 3,000 will be"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a972c3ac5664\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    credited to Securities Premium A\/c                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"true\">\r\n                    credited to Capital Reserve A\/c                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    debited to Goodwill A\/c                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    debited to Profit and Loss A\/c                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: <strong>B. credited to Capital Reserve A\/c<\/strong><\/p>\n<p>When vendors are issued fully paid shares of Rs. 12,000 in consideration of net assets of Rs. 9,000, the balance of Rs. 3,000 is called capital reserve. Capital reserve is a reserve that arises when a company issues shares at a premium. It is a non-distributable reserve and can be used to write off preliminary expenses, issue bonus shares, or for any other purpose that is not prohibited by law.<\/p>\n<p>Here is a detailed explanation of each option:<\/p>\n<ul>\n<li>\n<p>Option A: Securities Premium A\/c<br \/>\nSecurities premium is a reserve that arises when a company issues shares at a premium. It is a non-distributable reserve and can be used to write off preliminary expenses, issue bonus shares, or for any other purpose that is not prohibited by law. However, in this case, the shares are issued at a premium of Rs. 3,000, which is not the case in the question. Therefore, this option is not correct.<\/p>\n<\/li>\n<li>\n<p>Option B: Capital Reserve A\/c<br \/>\nCapital reserve is a reserve that arises when a company issues shares at a premium. It is a non-distributable reserve and can be used to write off preliminary expenses, issue bonus shares, or for any other purpose that is not prohibited by law. In this case, the shares are issued at a premium of Rs. 3,000, which is the balance of Rs. 12,000 &#8211; Rs. 9,000. Therefore, this option is correct.<\/p>\n<\/li>\n<li>\n<p>Option C: Debited to Goodwill A\/c<br \/>\nGoodwill is an intangible asset <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> that arises when a company acquires another company for more than the fair value of its net assets. It is the difference between the purchase price and the fair value of the net assets acquired. In this case, the company is not acquiring another company, so there is no goodwill. Therefore, this option is not correct.<\/p>\n<\/li>\n<li>\n<p>Option D: Debited to Profit and Loss A\/c<br \/>\nProfit and loss is a statement that shows the financial performance of a company for a period of time. It <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> includes revenues, expenses, gains, and losses. In this case, the company is not making a profit or a loss. Therefore, this option is not correct.<\/p>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Subscribe on YouTube<\/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":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>If vendors are issued fully paid shares of Rs. 12,000 in consideration of net assets of Rs. 9,000, then the balance of Rs. 3,000 will be<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/if-vendors-are-issued-fully-paid-shares-of-rs-12000-in-consideration-of-net-assets-of-rs-9000-then-the-balance-of-rs-3000-will-be\/\" \/>\n<meta property=\"og:locale\" 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