(i) Trading accounts                  (ii) Making adjusting entries (iii) Balance Sheet                     (iv) Profit and Loss Account Select the correct answer from the codes given below:  

List  I List II (a) Goodwill of the company (i) Current liability (b) Overdraft (ii) Fixed Assets (c) Preliminary expenses (ii) Reserves and Surplus (d) Premium of issue of shares (iv) Fictitious Assets

Assertion (A): Sinking fund is a charge against Profit and Loss Account Reason (R): Sinking fund is created for repayment of a long term liability. Codes:  

List  I List II (a) Leverage Ratio (i) Short term solvency (b) Liquidity Ratio (ii) Earning capacity (c) Turnover Ratio (ii) Relationship between debt and equity (d) Profitability Ratio (iv) Efficiency of Asset Management

(i) the company is undercapitalized (ii) company has incurred heavy losses which must be written off (iii) the company is overcapitalized Which one of the following is correct?  

Assertion (A): When a company earns profit prior to its incorporation, it is called capital profit Reason (R): Capital profit cannot be used for distribution as dividend to the shareholders. In the context of the above two statements,  which one of the following is correct?