Quiznetik

Financial Accounting | Set 11

1. Closing entries are generally passed —

A. At the time of opening new books of account ;

B. At the time of closing the accounts;

C. During the course of accounting period any time ;

D. After certification of accounts

Correct : B. At the time of closing the accounts;

2. Closing stock appearing in the Trial Balance is shown in –

A. Trading A/c and Balance Sheet ;

B. Profit and Loss A/c ;

C. Balance Sheet only

D. Trading A/c only

Correct : C. Balance Sheet only

3. Depreciation Account appearing in the Trial Balance is shown in —

A. Profit and Loss A/c ;

B. Trading A/c ;

C. Deducted from the concerned assets A/c;

D. Shown on the liability side

Correct : A. Profit and Loss A/c ;

4. Profit on sale of old plant is shown –

A. In Trading A/c ;

B. In Profit and Loss Appropriation A/c ;

C. Profit and Loss A/c

D. Being a non operating item ignored

Correct : C. Profit and Loss A/c

5. Carriage on goods purchased is shown in —

A. Profit and Loss A/c ;

B. Capitalized with work in progress ;

C. Trading A/c;

D. Shown in Balance Sheet

Correct : C. Trading A/c;

6. Which of these is not an operating income

A. Income from sale of trading goods ;

B. Bad debts recovered ;

C. Interest on FDs ;

D. None

Correct : C. Interest on FDs ;

7. ABC holds an average inventory of ` 36,000(CP) with an inventory turnover of 5 times. If the firm makes a gross profit of 25% on sales, find the total sales of the company

A. 2,40,000 ;

B. 2,10,000 ;

C. 2,00,000 ;

D. 1,80,000

Correct : A. 2,40,000 ;

8. From the following details what will be the partners‘ commission? Net profit before charging partners‘ commission `65,000. Partners‘ commission @ 11% after charging such commission

A. 6441 ;

B. 5431 ;

C. 7654 ;

D. 9876

Correct : A. 6441 ;

9. From the following details what will be the partners‘ commission? Net profit before charging partners‘ commission `65,000. Partners‘ commission 11% before charging such commission

A. 6441 ;

B. 5431 ;

C. 7150 ;

D. 5876

Correct : C. 7150 ;

10. Arrangement of Balance Sheet in a logical order is known as —

A. Dressing Balance Sheet ;

B. Marshalling Balance Sheet;

C. Formatting Balance Sheet ;

D. Make up of Balance Sheet

Correct : B. Marshalling Balance Sheet;

11. Improper valuation of inventory effects—

A. Profitability ;

B. Financial position ;

C. Both ;

D. Cash inflows

Correct : C. Both ;

12. Find the cost of goods sold if goods are sold for ` 2,000 at 25% profit on cost

A. 1,600 ;

B. 1,500 ;

C. 1,000 ;

D. 1,800

Correct : A. 1,600 ;

13. Find the value of opening stock from the following data. Purchases ` 1,50,000, Closing stock ` 30,000 , Sales `2,20,000, Gross profit ` 40,000.

A. 50,000 ;

B. 55,000 ;

C. 60,000 ;

D. 65,000

Correct : C. 60,000 ;

14. A Bill of Exchange is drawn on 1st April, 2012 payable after 3 months. The due date of the bill is

A. 30th June,2012

B. 1st July,2012

C. 4th July,2012

D. 4th August,2012

Correct : C. 4th July,2012

15. Which of the following statements is/are true?

A. Noting charges are paid by the holder of the bill on the date of default

B. A bill can be endorsed only thrice

C. On renewal of bill the old bill is canceled

D. Both (a) and (c) above

Correct : D. Both (a) and (c) above

16. When bill discounted with the bank is dishonoured?

A. Acceptor‘s Account is debited in the books of drawer

B. Bills Receivable Account is credited in the books of drawer

C. Bank Account is debited in the books of drawer

D. Bills Payable Account is debited in the books of drawer

Correct : A. Acceptor‘s Account is debited in the books of drawer

17. Which of the following statements is/are false?

A. Accommodation bills are drawn for the benefit of drawer only

B. Bills sent for collection is an asset

C. Bills of exchange cannot be drawn on a banker

D. Both (a) and (c) above

Correct : D. Both (a) and (c) above

18. In the books of the drawer, the accounting treatment involved on receipt of a bill of exchange duly accepted by the drawee is i. Debit Bills Receivable Account ii. Debit Drawee‘s Account iii. Credit Drawee‘s Account iv. Credit Sales Account

A. Only (i) above

B. Both (ii) and (iv) above

C. Both (i) and (iii) above

D. Both (i) and (iv) above

Correct : C. Both (i) and (iii) above

19. The noting charges levied on dishonour of an endorsed bill by the Notary Public are to be borne by

A. The drawer of the bill

B. The person responsible for dishonour

C. The holder of the bill

D. The endorser of the bill

Correct : B. The person responsible for dishonour

20. The drawer of a trade bill passes relevant entries with regard to the transaction involved in it. But, in case of an accommodation bill, he passes an entry in addition to the usual entries. The additional entry so passed is with respect to

A. Discounting of the bill with the bank

B. Payment of the bill on due date

C. Remitting or receiving the amount

D. Sending the bill to bank for collection

Correct : C. Remitting or receiving the amount

21. Under which of the following situations, is journal entry not passed in the books of the drawer?

A. When a discounted bill is honoured by the drawee on the due date

B. When a bill is sent to the bank for collection

C. When a bill is renewed at the request of the drawee

D. When a debtor accepts a bill drawn by the drawer

Correct : A. When a discounted bill is honoured by the drawee on the due date

22. Which of the following is not a feature of a promissory note?

A. It must be in writing

B. It contains an unconditional promise to pay

C. It is payable to the bearer

D. It must be signed by the maker

Correct : C. It is payable to the bearer

23. How many parties are generally found in a Bill of Exchange

A. 4 ;

B. 2 ;

C. 3 ;

D. 5

Correct : C. 3 ;

24. X draws a Bill of Exchange on Y for ` 10,000 on 1-1-2013 for 3 months. The due date of the bill will be —

A. 4-4-2013 ;

B. 3-4-2013 ;

C. 1-4-2013 ;

D. 31-3-2013

Correct : A. 4-4-2013 ;

25. When a B/R is endorsed by the Drawer what entry is passed by the Drawee—

A. B/R A/c Dr. to Drawer A/c Cr. ;

B. B/P A/c Dr. to Drawer A/c Cr.

C. 3rd Party‘s A/c Dr. to B/P A/c Cr. ;

D. No entry at all

Correct : D. No entry at all

26. When a B/R is discounted, what entry is passed by the Drawee—

A. Bank A/c Dr. to B/R Cr. ;

B. Drawer A/c Dr. to B/R A/c Cr.

C. B/R A/c Dr. to B/P A/c Cr. ;

D. No entry

Correct : D. No entry

27. Noting charges are ultimately borne by—

A. Drawee ;

B. Drawer ;

C. Payee ;

D. None

Correct : A. Drawee ;

28. Negotiable Instrument Act was enacted in—

A. 1981 ;

B. 1881 ;

C. 1871 ;

D. 2001

Correct : B. 1881 ;

29. Which of these is not an essential feature of a bill of exchange

A. Unconditional ;

B. Certainty of amount ;

C. In writing;

D. Amount to be paid in foreign currency

Correct : D. Amount to be paid in foreign currency

30. A foreign bill of exchange is generally drawn up in —

A. Triplicate ;

B. Duplicate ;

C. Single ;

D. Quadruplicate

Correct : A. Triplicate ;

31. Which of these are not required in a promissory note

A. Acceptance ;

B. Unconditional promise to pay ;

C. Properly stamped;

D. Payment to be made legal currency

Correct : A. Acceptance ;

32. Accommodation bills are generally for —

A. Genuine trade reasons ;

B. For mutual financial accommodation;

C. To help augment money supply ;

D. All the three

Correct : B. For mutual financial accommodation;

33. Which of these is not true about a promissory note

A. Unconditional promise ;

B. Crossing ;

C. Certainty of amount ;

D. Payee to a certain person

Correct : B. Crossing ;

34. Drawee means a person who –

A. Makes the order ;

B. Accepts it ;

C. Takes the payment on due date ;

D. Creditor

Correct : B. Accepts it ;

35. Retirement of a bill of exchange means —

A. Cancellation of bill ;

B. Premature payment of bill ;

C. Discounting of bill;

D. Endorsement of bill

Correct : B. Premature payment of bill ;

36. Early payment of a Bill of Exchange is known as —

A. Retirement ;

B. Renewal ;

C. Discount ;

D. Endorsement

Correct : A. Retirement ;

37. On early retirement of a B/E who suffers loss of interest –

A. Drawee ;

B. Drawer ;

C. Payee ;

D. None

Correct : B. Drawer ;

38. Sudhir of Simla consigned 100kg of vegetables to D of Delhi for ` 1500. He spent ` 75 on transportation. 10kg were found unfit for resale due to weather conditions and of the remaining 85 kg were sold for ` 1675. Find the value of closing stock.

A. 87.50 ;

B. 75.00 ;

C. 80.00 ;

D. 90.00

Correct : A. 87.50 ;

39. Sudhir of Simla consigned 100kg of vegetables to D of Delhi for ` 1500. He spent ` 75 on transportation. 10kg were found stolen during transit and of the remaining 85 kg were sold for ` 1675. Find the value of closing stock.

A. 87.50 ;

B. 78.75 ;

C. 80.00 ;

D. 90.00

Correct : B. 78.75 ;

40. Loss of goods in transit is borne by—

A. Consignee ;

B. Consignor ;

C. Both (a) and (b) proportionately ;

D. Insurance company

Correct : B. Consignor ;

41. A consignor is entitled to ——————

A. Profit on consignment ;

B. Commission on Sales ;

C. Reimbursement of expenses

D. Interest on capital

Correct : A. Profit on consignment ;

42. A consignee is entitled to ———————

A. Commission on sales ;

B. Reimbursement of the expenses ;

C. Del credere commission;

D. All of these

Correct : D. All of these

43. Which of these is a normal loss —

A. Loss in weight due to weather conditions ;

B. Shortage during transit ;

C. Breakage during handling ;

D. Loss in value due to market conditions

Correct : A. Loss in weight due to weather conditions ;

44. Del credere commission is allowed to —

A. Consignee ;

B. Consignor ;

C. Agent of consignee ;

D. Debt collection agency

Correct : A. Consignee ;

45. Balance left in Consignment A/c shows —

A. Profit or loss on consignment ;

B. Stock lying with the consignee ;

C. Stock lying with the debtors ;

D. Stock awaiting approval

Correct : A. Profit or loss on consignment ;

46. If the consignee is allowed del credere commission, then he bears —

A. All sales promotion expenses ;

B. Loss due to bad debts ;

C. Loss due shortage of goods ;

D. All routine expenses in connection with the goods

Correct : B. Loss due to bad debts ;

47. On 1st April 2013 Abhay of Patna consigned goods costing `7500 to Bhola of Ranchi at a proforma invoice price of 25% profit on sales. The Consignment A/c will be credited for stock loading by –

A. 2500 ;

B. 1875 ;

C. 2000 ;

D. 1500

Correct : A. 2500 ;

48. As per Partnership Act, which of these rights are available to a partner ——

A. Bonus ;

B. Salary ;

C. Commission ;

D. Equal profit

Correct : B. Salary ;

49. What does the balance in Memorandum Joint Venture A/c shows—

A. Profit or Loss ;

B. Closing Stock ;

C. Balance due from other Co-venturer

D. Difference in Trial Balance

Correct : A. Profit or Loss ;

50. Which of these is not a part of double entry system

A. Joint Bank A/c ;

B. Memorandum A/c ;

C. Joint Venture A/c ;

D. Joint Venture with other co-venturer A/c

Correct : B. Memorandum A/c ;

51. Loss on Joint venture is —

A. Credited to Profit and Loss A/c ;

B. Debited to co-venturers capital A/c;

C. Credited to Capital Fund A/c ;

D. Debited to Suspense A/c

Correct : B. Debited to co-venturers capital A/c;

52. Stock left over taken by a Co- venturer is—

A. Debited to Joint Venture A/c ;

B. Credited to Co-venturer A/c ;

C. Credited to Joint Venture A/c ;

D. Credited to Joint Bank A/c

Correct : C. Credited to Joint Venture A/c ;

53. Joint Bank A/c is a —

A. Nominal A/c ;

B. Personal A/c ;

C. Real A/c ;

D. Dummy A/c

Correct : B. Personal A/c ;

54. Joint Venture is a ——

A. Personal A/c ;

B. Nominal A/c ;

C. Real A/c ;

D. Memorandum A/c

Correct : B. Nominal A/c ;

55. Joint Venture with…………..(another co-venturer) A/c is a ——

A. Personal A/c ;

B. Nominal A/c ;

C. Real A/c ;

D. Memorandum A/c

Correct : B. Nominal A/c ;

56. Which of these is not a feature of a Joint venture

A. Continuing business ;

B. No firm name ;

C. Partners called co-venturer;

D. Partnership for limited purpose

Correct : A. Continuing business ;

57. Which of these accounts are not opened in a joint venture

A. Stock reserve ;

B. Joint bank A/c ;

C. Joint venture A/c ;

D. Co-venturers personal A/c

Correct : A. Stock reserve ;

58. Profit or loss on joint venture business is shared by the co-venturers ——

A. Equally ;

B. In the ratio of capital contributed ;

C. In the agreed upon ratio ;

D. A per seniority

Correct : C. In the agreed upon ratio ;

59. Professional bodies of which of the following countries is not a founding member of IASC —

A. Australia ;

B. India ;

C. Japan ;

D. USA

Correct : B. India ;

60. Professional bodies of which of these countries are founding member of IASC —

A. UK ;

B. Canada ;

C. Germany ;

D. All the three

Correct : D. All the three

61. Professional bodies of how many countries founded IASC in 1973

A. 8 ;

B. 9 ;

C. 7 ;

D. 10

Correct : B. 9 ;

62. Which of the following bodies is presented in ASB

A. CBI ;

B. CAG ;

C. RBI ;

D. Trade union

Correct : B. CAG ;

63. The Accounting Standards are issued for the purpose of —

A. For improving the reliability of financial statements

B. Harmonizing accounting policies

C. Elimination of non-comparability between financial statements

D. All the three

Correct : D. All the three

64. So far ———— AS have been issued by IASB

A. 40 ;

B. 42 ;

C. 39 ;

D. 41

Correct : D. 41

65. AS ———— replaced AS 8

A. 29 ;

B. 30 ;

C. 28 ;

D. 26

Correct : D. 26

66. IASB stands for —

A. International Accounting Standard Board ;

B. Indian Accounting Standard Board;

C. Institution of Accounting School Board ; ;

D. None

Correct : A. International Accounting Standard Board ;

67. In Indian Accounting Standards are mandatory for —

A. Corporate bodies ;

B. Proprietorship concerns ;

C. Co-operative societies

D. All the three

Correct : A. Corporate bodies ;

68. AS 10 is not applicable to ——

A. Natural resource ;

B. Live Stock ;

C. Forest and plantation produced ;

D. All the three

Correct : D. All the three

69. A change in Depreciation Method under AS-6 is treated ——

A. Change in Accounting Policy ;

B. Prior-Period Adjusting ;

C. Change in Accounting Standards ;

D. All the three

Correct : A. Change in Accounting Policy ;

70. Which of these is an appropriation of profit —

A. Provision for payment of bonus ;

B. Provision for depreciation ;

C. Provision for dividend ;

D. Provision for doubtful debts

Correct : C. Provision for dividend ;

71. Current Liabilities mean —

A. Liabilities which are payable within 12 months

B. Liabilities which are payable immediately

C. Liabilities which payable after one accounting year

D. Liabilities which are readable within 3 months

Correct : A. Liabilities which are payable within 12 months

72. AS 30 deals with

A. Accounting Policy

B. Financial Investment presentation

C. Financial Investment Reinvestment Measurement

D. Financial Investment disclosure

Correct : C. Financial Investment Reinvestment Measurement

73. Expenses A/c will always have —

A. Debit balance ;

B. Credit balance ;

C. Either (a) or (b) ;

D. No balance at all

Correct : A. Debit balance ;

74. Which of these is not a cause of depreciation

A. Usage ;

B. Passage of time ;

C. Fall in market demand ;

D. Wear and tear

Correct : C. Fall in market demand ;

75. Tick the correct match 1. Current Asset 1. Depreciation 2. Nominal A/c 2. Land 3. Non Depreciable Asset 3. Insurance A/c 4. Non Cash Expense 4. Prepaid Rent A/c

A. (1,2), (2,3), (3,4), (4,1)

B. (1,3), (2,1), (3,4), (4,2)

C. (1,4), (2,2), (3,1), (4,3)

D. (1,4), (2,3) (3,2), (4,1)

Correct : D. (1,4), (2,3) (3,2), (4,1)

76. Revenues affect net income —

A. in the period during which they are earned

B. in the period when they are collected

C. in the period when they are accounted for

D. any of the above three which occur first

Correct : A. in the period during which they are earned

77. Which of these Accounts are not closed in a Trading A/c

A. Sales A/c ;

B. Purchase A/c ;

C. Wages A/c ;

D. Depreciation A/c

Correct : D. Depreciation A/c

78. Undercasting of the total of Sales A/c will affect —

A. Gross Profit and Loss ;

B. Debtors A/c ;

C. Closing Stock ;

D. Working Capital

Correct : A. Gross Profit and Loss ;

79. ` 5,500 incurred on sundry expenses inadvertently recorded in the books of account as ` 550. This is an example of —

A. Fraud ;

B. Error of Commission ;

C. Error of Principle ;

D. Compensatory Error

Correct : B. Error of Commission ;

80. How does depreciation effect basic accounting equation

A. Leads to decreases in assets and shareholders equity

B. Leads to decrease in asset only

C. Leads to increase in liability and decrease in assets

D. Leads to decrease in shareholders equity

Correct : A. Leads to decreases in assets and shareholders equity

81. ——— Principle specifies that cost or expenses should be recorded at the same time as the revenue to which they correspond

A. Going run concern ;

B. Matching ;

C. Historical Cost ;

D. Prudence

Correct : B. Matching ;

82. X a debtor is declared insolvent and only 25 paise in a rupee is recovered from his estate. If X owes ` 5,000 to Y, Y would debit Cash A/c by —

A. 5,000 ;

B. 25 ;

C. 1,250 ;

D. 2,500

Correct : C. 1,250 ;

83. In question no. 351, Bad Debts A/c would be debited by —

A. 3,600 ;

B. 3,750 ;

C. 1,250 ;

D. 4,000

Correct : B. 3,750 ;

84. It is supposed that on 31-12-20012, the sundry debtors are amounted to Rs. 40,000. On the basis of past experience, it is estimated that 5 % of the sundry debtors are doubtful. It is also suppose that during the year 2013 actual bad debts were Rs. 1,600. What entry will pass to create provision for doubtful debts?

A. Profit & Loss a/c Rs. 2,000 (Dr) & Provision for doubtful debts a/c Rs. 2,000 (Cr)

B. Provision for doubtful debts a/c Rs. 2,000 (Dr) & Profit & Loss a/c Rs. 2,000 (Cr)

C. Provision for doubtful debts a/c Rs. 1,600 (Dr) & Profit & Loss a/c Rs. 1,600 (Cr)

D. Profit & Loss a/c Rs. 1,600 (Dr) & Provision for doubtful debts a/c Rs. 1,600 (Cr)

Correct : B. Provision for doubtful debts a/c Rs. 2,000 (Dr) & Profit & Loss a/c Rs. 2,000 (Cr)

85. Opening Stock ` 15,000, Closing Stock ` 6,000, Total Purchase during the year ` 30,000. Given that Opening Stock inadvertently includes postage stamps of ` 1,500. Find the cost of goods sold

A. 40,000 ;

B. 39,000 ;

C. 37,500 ;

D. 36,000

Correct : C. 37,500 ;

86. From the following details estimate the capital as on 1.1.2012, Capital as on 31.12.2012 ` 2,40,000, drawing ` 20,000, Profit during the year ` 25,000

A. 2,35,000 ;

B. 2,25,000 ;

C. 2,20,000 ;

D. 2,00,000

Correct : A. 2,35,000 ;

87. ` 1,250 paid for the residential telephone bill of the proprietor which of these accounts will be detailed

A. Household A/c ;

B. Drawing A/c ;

C. Telephone A/c ;

D. None

Correct : B. Drawing A/c ;

88. When a large number of articles are sent on a sale or return basis,, it is necessary to maintain

A. Sale journal

B. Goods returned journal

C. Sale or return journal

D. None of the above.

Correct : C. Sale or return journal

89. On 31st March, goods sold at a sale price of ` 30,000 were lying with customer, Mohan to whom these goods were sold on 'sale or return basis' and recorded as actual sales. Since' no consent was received from Mohan, the adjustment entry was made presuming goods were sent on approval at a profit of cost plus 20%. In the balance sheet, the stock with customers account will be shown at `

A. 30,000.

B. 24,000.

C. 20,000.

D. 25,000.

Correct : D. 25,000.

90. XYZ send goods worth ` 1,00,000 to Y on consignment basis at 20% above the cost price. The goods are sold by the consignee on a mark of 15% on invoice price. Find the total mark up % over the cost price of the goods —

A. 30% ;

B. 38% ;

C. 35% ;

D. 25%

Correct : B. 38% ;

91. In question no. 361 above find the total profit on consignment if the consignee expenses amounted to ` 8,000

A. 30,000 ;

B. 28,000 ;

C. 25,000 ;

D. 38,000

Correct : A. 30,000 ;

92. From the following details ascertain the adjusted Bank balance as per Cash Book — Overdraft as per Cash Book ` 80,000; Cheque received entered twice in the Cash Book ` 5,000; Credit side of bank column cast short by ` 500; Bank charges amounting to ` 200 entered twice; Cheque issued but dishonoured ` 2,000

A. 80,500 ;

B. 85,500 ;

C. 85,000 ;

D. 85,300

Correct : D. 85,300

93. From the following details calculate the net profit for the year ending 31.03.2013 Opening Stock ` 1,50,000; Purchase ` 2,50,000; Manufacturing Expenses ` 80,000; Selling Expenses ` 20,000; Administration Expenses ` 10,000; Financial Charges ` 5,000; Slaes ` 5,55,000 which includes damaged goods sold for ` 5,000 against the cost price of ` 12,000. Gross profit margin on normal sales is 20% on the sales

A. 65,000 ;

B. 68,000 ;

C. 70,000 ;

D. 77,000

Correct : B. 68,000 ;

94. L of Lucknow consigned goods costing ` 60,000 to A of Allahabad at an invoice price bearing 331/3 % mark up on the cost price. Goods costing ` 15,000 were damaged in the transit and the insurance company admitted the claim in full. Expenses incurred by the consignor on loading and transportation of the goods amounted to ` 1,800. The consignee incurred ` 200 on cartage and ` 6,000 as Godown Rent and sold 2/3 of the goods received by him at the invoice price. He is entitled to 5% normal commission and 2.5% del credere commission. Find the value of goods sold

A. 60,000 ;

B. 40,000 ;

C. 55,000 ;

D. 50,000

Correct : B. 40,000 ;

95. Based on the facts given in question no. 366 above find the total commission payable to the Consignee

A. 2,000 ;

B. 3,000 ;

C. 1,000 ;

D. 1,500

Correct : B. 3,000 ;

96. Based on the facts given in question no. 366 find the value of abnormal loss

A. 15,000 ;

B. 16,500 ;

C. 15,500 ;

D. 15,750

Correct : C. 15,500 ;

97. Research and Development Cost A/c appearing in Balance Sheet is a —

A. Real A/c ;

B. Intangible Asset A/c ;

C. Tangible Asset A/c ;

D. Personal A/c

Correct : B. Intangible Asset A/c ;

98. A trade purchase of ` 5,500 from Y was passed through Sales Day Book as ` 550, what rectification entry would be passed if the mistake is detected before preparation of Trading and Profit & Loss A/c

A. Sales A/c ….Dr. ` 550, Purchase A/c ….Dr. ` 5,500, Y‘s A/c Cr. ` 6,050

B. Profit and Loss Adjustment A/c ….Dr. ` 6,050, Y‘s A/c Cr. ` 6,050

C. Sales A/c ….Dr. ` 550, Purchase A/c ….Dr. ` 5,500, Suspense A/c Cr. ` 6,050

D. None

Correct : A. Sales A/c ….Dr. ` 550, Purchase A/c ….Dr. ` 5,500, Y‘s A/c Cr. ` 6,050

99. Huge expenditure incurred at the time of launching of a new product in market is a/an —

A. Revenue Expenditure ;

B. Capital Expenditure ;

C. Loss ;

D. Deferred Revenue Expenditure

Correct : D. Deferred Revenue Expenditure

100. The Primary objective of providing depreciation is:

A. To calculate true profit ;

B. To show the asset on market value ;

C. To reduce tax Burdon ;

D. To provide funds for replacement

Correct : B. To show the asset on market value ;