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Any profit prior to incorporation may be:?

(a) Credited to Capital Reserve A/c.

b) Debited to Goodwill A/c

(c) Debited to Suspense A/c

(d) None of the above.

Profit Margins Accounting Non profit Development Profit Management Management
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Question added by Mohammed Asim Nehal , M Asim Nehal & Co , Chartered Accountants
Date Posted: 2015/08/09
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Gayasuddin Mohammed
by Gayasuddin Mohammed , Advocate , Practicing Law before High Court at Hyderabad

(a) Credited to Capital Reserve Account************************

Deleted user

(a) Credited to Capital Reserve Account ..............................................

Mohammed Asim Nehal
by Mohammed Asim Nehal , M Asim Nehal & Co , Chartered Accountants

Correct answer is  (a) Credited to Capital Reserve A/c.

Victor Odoemelam
by Victor Odoemelam , JUNIOR BANKING SERVICE OFFICER , AB MICROFINANCE BANK LTD

B) DEBITED AS GOODWILL aCCOUNT

Mohsin Patel
by Mohsin Patel , Accounting Analyst , Water G.

Since it is mutual funds being allocated it would be fall into capital reserves.

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