The Electricity (Supply) Act, 1948, imposes restrictions on electricity undertakings on earning too high a profit, by means of the concept of reasonable return, which stipulates the following: 1. Electricity generation expansion planning (EGEP) is a process of planning for additional generation capacity from certain energy sources (coal, nuclear, … An amount equal to ½% on the amounts borrowed from organisations or institutions approved by the State Government. It can be utilised with the approval of the State Government for the following purposes: (i) Meeting expenses or loss of profits arising out of accidents, strikes or circumstances beyond the control of the management. Telecommunication Account and Defence Account respectively, in the books of the Reserve Bank. When a fixed asset becomes obsolete or inadequate or superfluous or is discarded for any other reason, it cannot be depreciated any further. When an asset has been written down to 10% (or less) of its original cost, no further depreciation is allowed in respect of that asset. Under this method interest at the rate of 4% p.a. The procedure for computing the capital base is given below: Para XVII of the Sixth Schedule of the Act provides guidelines for the computation of clear profits which means the difference between the amount of income and the sum of expenditure plus specific appropriation. . ... Electricity to the bulb in a torch is provided by the _____ . (ii) Of the balance, 1/2 will be transferred to the Tariffs and Dividend Control Reserve. b) Current Account. Account Disable 11. StudyAtHome.org is an e-Learning Platform, that provides Video Lectures for … An amount equal to ½% on any loans advanced by the Board. 28, 00,000 after tax. Income derived from investments excluding investments made against the Contingencies Reserve. You can also find Accounts of Electricity Companies - Electricity Companies, Advanced Corporate Accounting B Com Notes | EduRev ppt and other B Com slides as well. (A) only agents of a company-(B) only fiduciaries of a company-(C) only servants of a company under a contract of employment with the company-(D) All of the above-Answer: (D) 75- Role of doctrine of ultra vires is (A) to fight virus of ultras-(B) to protect indoor managers-(C) to confine corporate action within fixed limits- Copyright 9. An amount equal to ½% on the amounts realised by the issue of debentures. . Image Guidelines 4. The document Accounts of Electricity Companies - Electricity Companies, Advanced Corporate Accounting B Com Notes | EduRev is a part of the. Reserve is created by transferring from the Revenue Account every year an amount equivalent to not less than 1/4 per cent and not more than 1/2 per cent of the original cost of the fixed assets until it equals 5 per cent of the original cost of the fixed assets. This can be utilised whenever the clear profit is less than the reasonable return. These MCQ's are extremely critical for all ICSE students to score better marks. Also, revise chapter definitions such as semiconductors, ohm, electromotive force etc. Assuming the bank rate is 10%, show how you deal with profits of the company. Accounts of Electricity Companies - Electricity Companies, Advanced Corporate Accounting B Com Notes | EduRev chapter (including extra questions, long questions, short questions, mcq) can be found on EduRev, you can check The following balances have been extracted from the books of an electricity company at the end of the accounting year: In the accounting year, the company earned a profit of Rs. The procedure for computing the capital base is given below: Para XVII of the Sixth Schedule of the Act provides guidelines for the computation of clear profits which means the difference between the amount of income and the sum of expenditure plus specific appropriation. If in any accounting year the clear profit excluding the special appropriations together with the accumulations, if any, in the Tariffs and Development Control Reserve fall short of reasonable return, the appropriations to this reserve can be reduced by the amount of shortfall. 54. **Appropriate liability account (Utilities Payable, Rent Payable, Interest Payable, Accounts Payable, etc.) The office allowance which Managing Agents can draw is to include the salaries and wages of all persons employed in the office but not the salaries of the engineering staff employed for purposes of the undertaking. C . The Electricity (Supply) Act, 1948, imposes restrictions on electricity undertakings on earning too high a profit, by means of the concept of reasonable return, which stipulates the following: 1. This percentage cannot exceed 10% of the first Rs 5 lacs of such net profits and 7% of all net profits in excess of Rs 5 lacs. E. Multiple choice questions on current and electricity quiz answers PDF covers MCQ questions on current and electricity, current source, electric current, carbon resistances color code, EMF and potential difference, Kirchhoff’s law, ohms law, power dissipation, resistance and … AND. An amount equal to ½% on any loans advanced by the Board. Terms of Service 7. The amount is to be invested in trust securities. This contains 30 Multiple Choice Questions for CA Foundation Test: Capital And Revenue Expenditures And Receipts - 1 (mcq) to study with solutions a complete question bank. Any other amount as may be allowed by the Central Government, having regard to the prevailing tax structure in the country. (ii) Meeting expenses of replacement or removal of plant or works other than the expenses necessary for normal maintenance or renewal. Every fixed asset must be depreciated; and for the purpose of depreciation, the life of each asset is to be taken as stated in the table given in the Seventh Schedule. EduRev is a knowledge-sharing community that depends on everyone being able to pitch in when they know something. for each Rs 1,000 of paid up share and debenture capital. Disclaimer 8. Treatment of Replacement of Assets - Electricity Companies, Advanced Corporate Accounting, Double Accounts System - Electricity Companies, Advanced Corporate Accounting. Central Superior Services (CSS) MCQs, Group A MCQs, Economics MCQs, Micro Economics MCQs, cartel; a sellers’ market , nationalized; privatized , natural monopoly; potentially competitive , monopolistic competition duopoly Illustration 1: From the following information, prepare the Profit and Loss Account of South Indian Bank as on 31st March, 2004: Illustration 2: The following Trial Balance was extracted from the books of the United Bank […] Plagiarism Prevention 5. This percentage cannot exceed 10% of the first Rs 5 lacs of such net profits and 7% of all net profits in excess of Rs 5 lacs. Question 1. Moreover, even the surplus within 20 per cent of the reasonable return has to be disposed of as follows: (i) 1/3 of the surplus not exceeding 5 per cent of the reasonable return will be at the disposal of the undertaking. 28, 00,000 after tax. As regards the depreciation method that can be applied, the Act makes provision for only two, viz., (a) Compound Interest or Sinking Fund Method, and (b) Straight Line Method. B. prohibit equitably the natural resources 3. Under the Compound Interest Method a certain sum is set aside every year and accumulated at compound interest of 4% p.a. The reserve is created out of profits in excess of the reasonable return earned by an electricity undertaking. The credit balance of profit & Loss appropriation account in case of company is to be transferred to. The best app for CBSE students now provides accounting for partnership firm’s fundamentals class 12 Notes latest chapter wise notes for quick preparation of CBSE board exams and school-based annual examinations. c) None of these. using search above. a) Capital Account. This process of setting aside a certain sum continues throughout the prescribed period of the life of the asset till an amount equal to 90% of the original cost of the asset is reached. When the transferee company hold shares in the transferor company, the set off entry in the books of the transferor company is made by crediting the transferee company and debiting the Shareholders account. In the UK, electricity industry parts are a ____ and other parts are ___ ?? (1) Archegonia are found in Bryophyta, Pteridophyta and Gymnosperms. Multiple Choice Questions (MCQ) for Current Electricity - ICSE Class 9 Physics on Topperlearning. this is your one stop solution. Interested and Eligible Candidates can apply through online from 15 April 2018 to 30 April 2018. The reserve is created by transfer of an amount equivalent to income-tax and super-tax (calculated at current rates) saved on account of development rebate allowed by the income-tax authorities. 10. An amount equal to ½% on the accumulations in the Development Reserve. An amount equal to ½% on the accumulations in the Development Reserve. The remuneration given to Managing Agents is, in the first place, a percentage of net profits. Today’s interconnected power systems supply a number of consumers. An electricity company must adjust the rates so that the clear profit in any year does not exceed the reasonable return by more than 20 per cent of the reasonable return. 2. Development Reserve: The reserve is created by transfer of an amount equivalent to income-tax and super-tax (calculated at current rates) saved on account of development rebate allowed by the income-tax authorities. The question patterns chosen in these quizzes are based on past exam papers. a) electric cell b) switch c) carbon rods d) none of these ... About the parent company: Ankit Enterprises, established in December 2000, started with a small book store. You can download Free Accounts of Electricity Companies - Electricity Companies, Advanced Corporate Accounting B Com Notes | EduRev pdf from EduRev by The amount of such reserve is to be invested in the same electricity undertaking and is to be handed over to purchaser of the business in case the business is sold away. If in any accounting year the clear profit excluding the special appropriations together with the accumulations, if any, in the Tariffs and Development Control Reserve fall short of reasonable return, the appropriations to this reserve can be reduced by the amount of shortfall. of Accounts of Electricity Companies - Electricity Companies, Advanced Corporate Accounting B Com Notes | EduRev for B Com, the answers and examples explain the meaning of chapter in the best manner. Do check out the sample questions on the opening balance of the Depreciation Reserve must be transferred from the Revenue Account to the Depreciation Reserve Account. (b) Stores Ledger Control Account (c) Work-in-progress Ledger (d) Finished Goods Control Account. (a) General Ledger Adjustment Account (b) Stores Ledger Control Account (c) Work-in-progress Ledger (d) Finished Goods Control Account. In case of an electricity company, depreciation on assets is calculated based on the rates notified by (A) Companies Act 2013 (B) State Electricity Commission Terms, conditions and tariff for sale of electricity by Generating Company 44. Electricity Generation Company of Bangladesh EGCB Limited just published a New Job Circular for 72 Vacant Positions for 13 Categories. The reserve is created by transfer of an amount equivalent to income-tax and super-tax (calculated at current rates) saved on account of development rebate allowed by the income-tax authorities. This Reserve can be created until the total of such Reserve exceeds 8 per cent of the original cost of the assets. B Com. If you want Accounts of Electricity Companies - Electricity Companies, Advanced Corporate Accounting B Com Notes | EduRev Moreover, even the surplus within 20 per cent of the reasonable return has to be disposed of as follows: (i) 1/3 of the surplus not exceeding 5 per cent of the reasonable return will be at the disposal of the undertaking. In this, cost of materials, wages and overheads of each job undertaken is posted. B . The Course comprises of resources in the form of quizzes. More than 1000 MCQ’s of CMA Intermediate Group 2, Paper 12 – Company Accounts and Audit subject. P& l a/c is prepared for a period of one year by following: a) Consistency concept 2. Product cost Gram Co. develops computer programs to meet customers special requirements. 5. (a) The operating expenditure during the year of account and. The amount is to be invested in trust securities. take online Mcqs Quiz test. you can also Contribute to Pak Mcqs. 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