15. During the process of Internal Reconstruction, JAY Ltd has come across the following adjustment: ADVANCED ACCOUNTING There is a contingent liability for which no provision had been made. This contingent liability was settled at ` 7,500 and also ` 6,000 was recovered from the insurance company in this regard. Which of the following is the correct treatment for the above adjustment?
Options
AReconstruction A/c Dr ` 1,500 and Bank A/c Cr ` 1,500
BReconstruction A/c Dr ` 7,500 and Bank A/c Cr ` 7,500
CContingent Liability A/c Dr ` 1,500 and Bank A/c Cr ` 1,500
DProfit and Loss A/c Dr 1,500 and Bank A/c Cr ` 1,500
Answer Key
MCQ. No.
Correct Answer
1
B
2
A
3
C
4
D
5
C
6
C
7
C
8
A
9
D
10
B
11
B
12
A
13
C
14
D
15
A
PART – II – Descriptive Questions
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