Advanced AccountingMCQQuestion 5958 of 302
All Questions

7. What is the treatment of insolvency of Sheetal Enterprises in the Books of Kay Ltd. as on 31st March, 2024 as per AS 4?

Select Your Answer (Keyboard: A, B, C, D)
For any discrepancies in this question, email contact@cadada.in

Correct Answer

✅ Option A — An Adjusting Event, full provision of ₹ 75,000 should be made in the Final Accounts for the year ended 31 March, 2024.

All Options:

  • AAn Adjusting Event, full provision of ₹ 75,000 should be made in the Final Accounts for the year ended 31 March, 2024. ✓
  • BAn Adjusting Event, provision of ₹ 3,750 should be made in the Final Accounts for the year ended 31 March, 2024.
  • CA Non-adjusting event, no provision is required to be made as Sheetal Enterprises became bankrupt in April, 2024.
  • DA Non-adjusting event, only disclosure is required in the Final Accounts for the year ended 31st March, 2024.

Detailed Solution & Explanation

Correct Answer: Option **A** Explanation: As per the official suggested answer, option **A** is correct. Hence, **Option A** is the correct answer.

More Questions from Advanced Accounting

$3x-2:5x+6$ the duplicate ratio of $2:3$ then find the value x\displaystyle x.

If the ratio of two numbers is $7:11.If\displaystyle . If7$ is added to each number then the new ratio will be $2:3$ then the numbers are.

If x:y=z:7=4:11\displaystyle x:y=z:7=4:11 then x+y+zz\displaystyle x+y+zz\displaystyle \frac{x+y+z}{z} is

The ratio of two numbers are $3:4$. The difference of their squares is $28$ greater is:

The price of scooter and moped are in the ratio $7:9$. The price of moped is $₹1,600$ more than that of scooter. Then the price of moped is:

If A:B=3:7\displaystyle A:B=3:7, then $3a+2b:4a+5b=?$

Ready to Master Advanced Accounting?

Practice all 302 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.

Start Practicing — It's Free