$

54.
What do you
know about Underwriting Commission?
eN
(Ans) A commission which is paid to underwriters is called
Underwriting commission.
55.
What do you know about Depreciation?
(Ans) The process of allocating the cost of a fixed asset over its
estimated useful life in a rational and systematic manner is called
Depreciation.
56.
What do you know about Depreciation Expense?
(Ans) The allocated cost for one accenting period, which is matched
against revenue, is called Depreciation Expense.
57.
What do you know about Scrap Value?
(Ans) The amountwhich will be realized at the end of the asset
useful life is called Scrap Value.
58.
Give any two advantages of straight line
depreciation method? (Ans) Easy calculationof depreciation amount
and Reducing the book value to zero
59.
What do you know about Diminishing
Balance Method? (Ans) The method in which asset is depreciated
at fixed percentage over written down value of asset is called
Diminishing Balance Method.
so. Vviaat do you know about Depletion?
(Ans) The process of measuring and recording the exhaustion of
natural resources due to their use is called Depletion.
61.
What Journal entry will be passed for interest,
under the annuity method of depreciation?
(Ans) Asset alc 12 Interest a. c.
62.
What do you know about inherited goodwill?
(Ans) It is self generated goodwill by the business over number of
years of its operation.
63.
What do you know about Share Certificate?
(Ans) Document of title of a share held in a company by the
shareholder is called Share Certificate.
64.
What entry will be passed for writing off the
discount on issues of shares?
(Ans) Share Premium arc To Discount on issue of shares.