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This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your knowledge and support exam preparation. Choose a topic below to get started.
| 451. |
X and Y are partners in a firm sharing profits and losses in the ratio of 3 : 2 . On 31st March, 2018 after closing the books of account, their Capital Accounts stood at ₹ 4,80,000 and ₹ 6,00,000 respectively. On 1st May, 2017, X introduced an additional capital of ₹ 1,20,000 and Y withdrew ₹ 60,000 form his capital.On 1st October, 2017, X withdrew ₹ 2,40,000 from his capital and Y introduced ₹ 3,00,000 . Interest on capital is allowed at 6% p.a. Subsequently, it was discovered that interest on capital 6% p.a. had been omitted. The profits for the year ended 31st March, 2018 amounted to ₹ 2,40,000 and the partners' drawings had been: X–₹1,20,000 and Y–₹ 60,000. Compute the interest on capital if the capitals are (a) fixed, and (b) fluctuating. |
| Answer» X and Y are partners in a firm sharing profits and losses in the ratio of 3 : 2 . On 31st March, 2018 after closing the books of account, their Capital Accounts stood at ₹ 4,80,000 and ₹ 6,00,000 respectively. On 1st May, 2017, X introduced an additional capital of ₹ 1,20,000 and Y withdrew ₹ 60,000 form his capital.On 1st October, 2017, X withdrew ₹ 2,40,000 from his capital and Y introduced ₹ 3,00,000 . Interest on capital is allowed at 6% p.a. Subsequently, it was discovered that interest on capital 6% p.a. had been omitted. The profits for the year ended 31st March, 2018 amounted to ₹ 2,40,000 and the partners' drawings had been: X–₹1,20,000 and Y–₹ 60,000. Compute the interest on capital if the capitals are (a) fixed, and (b) fluctuating. | |
| 452. |
A, B, and C are partners in a firm sharing profits in the ratio of 3:2:1. B retires. The goodwill of the firm is valued at Rs. 60,000 and the remaining partners A and C continue to share profits in the ratio of 3:1. By what amount will the capital account of B be credited ? |
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Answer» A, B, and C are partners in a firm sharing profits in the ratio of 3:2:1. B retires. The goodwill of the firm is valued at Rs. 60,000 and the remaining partners A and C continue to share profits in the ratio of 3:1. By what amount will the capital account of B be credited ? |
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| 453. |
Current Liabilities of a company are ₹ 1,50,000. Its Current Ratio is 3 : 1 and Acid Test Ratio (Liquid Ratio) is 1 : 1. Calculate values of Current Assets, Liquid Assets and Inventory. |
| Answer» Current Liabilities of a company are ₹ 1,50,000. Its Current Ratio is 3 : 1 and Acid Test Ratio (Liquid Ratio) is 1 : 1. Calculate values of Current Assets, Liquid Assets and Inventory. | |
| 454. |
Non operating incomes are __________ while calculating operating profit from net profit. |
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Answer» Non operating incomes are |
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| 455. |
JB Ltd. issued ₹ 10,00,000;6% Debentures at a premium of 4% redeemable at a premium of 5% after four years. The debentures were issued on 1st April,2014. Pass journal entries at the time of issue and redemption of debentures assuming that all legal requirements were complied. |
| Answer» JB Ltd. issued ₹ 10,00,000;6% Debentures at a premium of 4% redeemable at a premium of 5% after four years. The debentures were issued on 1st April,2014. Pass journal entries at the time of issue and redemption of debentures assuming that all legal requirements were complied. | |
| 456. |
What term is used as the amount charged from the owner for withdrawing money from the business? |
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Answer» What term is used as the amount charged from the owner for withdrawing money from the business? |
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| 457. |
Interest on loan by partners is to the profits of the firm. |
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Answer» Interest on loan by partners is |
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| 458. |
Amortisation is the decrease in the value of _________ . |
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Answer» Amortisation is the decrease in the value of _________ . |
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| 459. |
Describe the provision of law relating to ‘Calls-in-Arrears’ and ‘Calls-in-Advance’. |
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Answer» Describe the provision of law relating to ‘Calls-in-Arrears’ and ‘Calls-in-Advance’. |
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| 460. |
Calculate interest on drawings of Mr. Ashok 10% p.a. for the year ended 31st March, 2018, in each of the following alternative cases:Case 1. If he withdrew ₹ 7,500 in the beginning of each quarte.Case 2. If he withdrew ₹ 7,500 at the end of each quarter.Case 3. If he withdrew ₹ 7,500 during the middle of each quarter. |
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Answer» Calculate interest on drawings of Mr. Ashok 10% p.a. for the year ended 31st March, 2018, in each of the following alternative cases: Case 1. If he withdrew ₹ 7,500 in the beginning of each quarte. Case 2. If he withdrew ₹ 7,500 at the end of each quarter. Case 3. If he withdrew ₹ 7,500 during the middle of each quarter. |
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| 461. |
Prepare the format of balance sheet and explain the various elements of balance sheet. |
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Answer» Prepare the format of balance sheet and explain the various elements of balance sheet. |
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| 462. |
Trialbalance of Raju showed an excess debit of Rs 10,000. He put the difference tosuspense account and discovered the following errors: (a) Depreciation written-off the furniture Rs 6,000 was not posted to Furniture account. (b) Credit sales to Rupam Rs 10,000 were recorded as Rs 7,000. (c) Purchases book undercast by Rs 2,000. (d) Cash sales to Rana Rs 5,000 were not posted. (e) Old Machinery sold for Rs 7,000 was credited to sales account. (f) Discount received Rs 800 from Kanan on playing cash to him was not posted. Rectify the errors and prepare suspense account. |
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Answer» Trial
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| 463. |
From the following particulars relating to the Ramakrishna Mission Charitable Hospital , prepare Income and Expenditure Account for the year ended 31st March, 2018 and Balance Sheet as at that date. RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2018 Dr. Cr. Receipts ₹ Payments ₹ To Cash in Hand on 1st April, 2017 To Subscriptions To Donations To Interest on Investment 7% for full year To Proceeds from Charity Show 71,300 4,79,960 1,45,000 70,000 1,04,500 By Medicines By Doctor's Honorarium By Salaries By Petty Expenses By Equipments By Expenses on Charity Show By Cash in Hand on 31st March, 2018 3,05,900 90,000 2,75,000 4,610 1,50,000 7,500 37,750 8,70,760 8,70,760 Additional Information: As at 1st April, 2017 (₹) As at 31st March, 2018 (₹) Subscriptions Due 2,400 2,800 Subscriptions Received 640 1,000 Stock of Medicines 88,100 97,400 Estimated value of Equipments 2,12,000 3,16,000 Building (cost less depreciation) 4,00,000 3,80,000 |
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Answer» From the following particulars relating to the Ramakrishna Mission Charitable Hospital , prepare Income and Expenditure Account for the year ended 31st March, 2018 and Balance Sheet as at that date.
Additional Information:
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| 464. |
For each of the following transactions, calculate the resulting cash flow and state the nature of cash flow, viz., operating, investing and financing.(a) Acquired machinery for Rs 2,50,000 paying 20% by cheque and executing a bond for the balance payable.(b) Paid Rs 2,50,000 to acquire shares in Informa Tech. and received a dividend of Rs 50,000 after acquisition.(c) Sold machinery of original cost Rs 2,00,000 with an accumulated depreciation of Rs 1,60,000 for Rs 60,000. |
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Answer» For each of the following transactions, calculate the resulting cash flow and state the nature of cash flow, viz., operating, investing and financing. (a) Acquired machinery for Rs 2,50,000 paying 20% by cheque and executing a bond for the balance payable. (b) Paid Rs 2,50,000 to acquire shares in Informa Tech. and received a dividend of Rs 50,000 after acquisition. (c) Sold machinery of original cost Rs 2,00,000 with an accumulated depreciation of Rs 1,60,000 for Rs 60,000. |
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| 465. |
A, B and C are partners sharing profits in the ratio of 5 : 4 : 1. C is given a guarantee that his minimum share of profit in any given year would be at least ₹ 5,000. Deficiency, if any, would be borne by A and B equally. The profit for the year 2017-18 amounted to ₹ 40,000.Pass necessary Journal entries in the books of the firm. |
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Answer» A, B and C are partners sharing profits in the ratio of 5 : 4 : 1. C is given a guarantee that his minimum share of profit in any given year would be at least ₹ 5,000. Deficiency, if any, would be borne by A and B equally. The profit for the year 2017-18 amounted to ₹ 40,000. Pass necessary Journal entries in the books of the firm. |
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| 466. |
Where the normal operating cycle cannot be identified, it is assumed to have a duration of _____ |
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Answer» Where the normal operating cycle cannot be identified, it is assumed to have a duration of |
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| 467. |
Life machine tools Limited, issued 50,000 equity shares of Rs.10 each at Rs.12 per share, payable at Rs.5 on application (including premium), Rs.4 on allotment and the balance on the first and final call. Applications for 70,000 shares had been received. Of the cash received, Rs.40,000 was returned and Rs.60,000 was applied to the amount due on allotment, the balance of which was paid. All shareholders paid the call due, with the exception of one share holder of 500 shares. These shares were forfeited and reissued as fully paid at Rs.8 per share. Journalise the transactions. |
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Answer» Life machine tools Limited, issued 50,000 equity shares of Rs.10 each at Rs.12 per share, payable at Rs.5 on application (including premium), Rs.4 on allotment and the balance on the first and final call. Applications for 70,000 shares had been received. Of the cash received, Rs.40,000 was returned and Rs.60,000 was applied to the amount due on allotment, the balance of which was paid. All shareholders paid the call due, with the exception of one share holder of 500 shares. These shares were forfeited and reissued as fully paid at Rs.8 per share. Journalise the transactions. |
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| 468. |
How did the author discover who the English visitor to the studios was? |
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Answer» How did the author discover who the English visitor to the studios was? |
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| 469. |
Company bought a Plant for Rs. 1,00,000 & issued Debentures of Rs. 100 each at par. How many debentures were issued? |
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Answer» Company bought a Plant for Rs. 1,00,000 & issued Debentures of Rs. 100 each at par. How many debentures were issued? |
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| 470. |
Green Ltd. purchased the assets of Strong Ltd. for ₹ 40,00,000 and took over liabilities of 7,00,000 at an agreed value of ₹ 32,40,000. Payment was made by issuing 10% Debentures of 100 each at a discount of 10%. Pass the necessary Journal entries in the books of Green Ltd. |
| Answer» Green Ltd. purchased the assets of Strong Ltd. for ₹ 40,00,000 and took over liabilities of 7,00,000 at an agreed value of ₹ 32,40,000. Payment was made by issuing 10% Debentures of 100 each at a discount of 10%. Pass the necessary Journal entries in the books of Green Ltd. | |
| 471. |
How long will it take for a sum of ₹ 12,600 invested at 8% per annum become to Rs 15,624? |
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Answer» How long will it take for a sum of ₹ 12,600 invested at 8% per annum become to Rs 15,624? |
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| 472. |
X, Y and Z are sharing profits and losses in the ratio of 5 : 3 : 2. They decide to share future profits and losses in the ratio of 2 : 3 : 5 with effect from 1st April, 2019. They also decide to record the effect of the following accumulated profits, losses and reserves without affecting their book values by passing a single entry . Book Values (₹) General Reserve 6,000 Profit and Loss A/c (Credit) 24,000 Advertisement Suspense A/c 12,000 Pass an Adjustment Entry. |
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Answer» X, Y and Z are sharing profits and losses in the ratio of 5 : 3 : 2. They decide to share future profits and losses in the ratio of 2 : 3 : 5 with effect from 1st April, 2019. They also decide to record the effect of the following accumulated profits, losses and reserves without affecting their book values by passing a single entry .
Pass an Adjustment Entry. |
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| 473. |
Which of the following is an asset account? |
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Answer» Which of the following is an asset account? |
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| 474. |
At a rate of 10 p.c.p.a., what would be the interest for one year on rupees 6000? |
| Answer» At a rate of 10 p.c.p.a., what would be the interest for one year on rupees 6000? | |
| 475. |
Following amounts were payable on issue of shares by a company: Rs. 3 on application, Rs. 3 on allotment, Rs. 2 on first call and Rs. 2 on final call. X holding 500 shares paid only application and allotment money whereas Y holding 400 shares did not pay final call. Amount of Calls in arrear will be : |
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Answer» Following amounts were payable on issue of shares by a company: Rs. 3 on application, Rs. 3 on allotment, Rs. 2 on first call and Rs. 2 on final call. X holding 500 shares paid only application and allotment money whereas Y holding 400 shares did not pay final call. Amount of Calls in arrear will be : |
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| 476. |
Under ___ Method, entry is made in capital account only if capital introduced or existing capital is permanently withdraw by agreement. |
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Answer» Under |
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| 477. |
The Employee Unique Identification Number (EUIN) is not applicable to |
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Answer» The Employee Unique Identification Number (EUIN) is not applicable to |
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| 478. |
An unexperienced accountant prepared the following trial balance of Bang Vikas Ltd., for the year ending 31.12.2005. The cash in hand on 31.12.2005 was Rs 750. DetailsRsDetailsRsDepreciation on machinery33,000Authorised Capital: 60,000 shares of Rs 10 each6,00,000Calls in Arrear7,500Subscribed Capital4,00,000Land and Buildings3,00,0006% Debentures3,00,000Machinery2,97,000Profit and Loss Account (Cr.)13,625Interim dividend paid37,500Sundry Debtors87,000Stock on 1-1-200575,000Sales4,15,000Sundry Creditors40,000Sinking Fund75,000Bills Payable38,000Preliminary Expenses5,000Furniture7,200 Bank Balance39,900 Purchases1,85,000 Provision for Bad Debts4,375 Investments75,000 Salary and Wages99,300 Repairs4,300 Fuel2,500 Rates and Taxes1,800 Travelling Expenses2,000 Discounts6,400 Director’s Fees5,700 Bad Debts2,100 Debenture interest9,000 Carriage1,800 Freight8,900 Sundry Expenses2,350 Public Deposits10,000 12,95,625 12,95,625 After locating the mistakes and making the following adjustments prepare trading and profit and loss account and balance sheet in the prescribed form.Adjustments: (i) Stock on 31.12.2005 Rs 95,000 and (ii) Write-off preliminary expenses. |
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Answer» An unexperienced accountant prepared the following trial balance of Bang Vikas Ltd., for the year ending 31.12.2005. The cash in hand on 31.12.2005 was Rs 750.
After locating the mistakes and making the following adjustments prepare trading and profit and loss account and balance sheet in the prescribed form. Adjustments: (i) Stock on 31.12.2005 Rs 95,000 and (ii) Write-off preliminary expenses.
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| 479. |
Which of the following statement about Maharatna Scheme for Central Public Sector Enterprises CPSEs is not correct? |
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Answer» Which of the following statement about Maharatna Scheme for Central Public Sector Enterprises CPSEs is not correct? |
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| 480. |
From the following Balance Sheets of Tiger Super Steel Ltd., prepare Cash Flow Statement: Balance Sheet of Tiger Super Steel Ltd. as at 31st March 2014 and 31st March 2017 Particulars Note No. March 31, 2017 (Rs) March 31, 2016 (Rs) I) Equity and Liabilities 1. Shareholders’ Funds a) Share capital 1 1,40,000 1,20,000 b) Reserves and surplus 2 22,800 15,200 2. Current Liabilities a) Trade payables 3 21,200 14,000 b) Other current liabilities 4 2,400 3,200 c) Short-term provisions 5 28,400 22,400 Total 2,14,800 1,74,800 II) Assets 1. Non-Current Assets a) Fixed assets i) Tangible assets 6 96,400 76,000 ii) Intangible assets 18,800 24,000 b) Non-current investments 14,000 4,000 2. Current Assets a) Inventories 31,200 34,000 b) Trade receivables 43,200 30,000 c) Cash and Cash Equivalents 11,200 6,800 Total 2,14,800 1,74,800 Notes to accounts: 2017 2016 1. Share Capital Equity share capital 1,20,000 80,000 10% Preference share capital 20,000 40,000 1,40,000 1,20,000 2. Reserves and surplus General reserve 12,000 8,000 Balance in statement of profit and loss 10,800 7,200 22,800 15,200 3. Trade payables Bills payable 21,200 14,000 4. Other current liabilities Outstanding expenses 2,400 3,200 5. Short-term provisions Provision for taxation 12,800 11,200 Proposed dividend 15,600 11,200 28,400 22,400 6. Tangible assets Land and building 20,000 40,000 Plant 76,400 36,000 96,400 76,000 Additional Information:Depreciation Charge on Land & Building Rs 20,000, and Plant Rs 10,000 during the year. |
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Answer» From the following Balance Sheets of Tiger Super Steel Ltd., prepare Cash Flow Statement:
Notes to accounts:
Additional Information: Depreciation Charge on Land & Building Rs 20,000, and Plant Rs 10,000 during the year. |
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| 481. |
Revenue from Operations, i.e., Net Sales ₹ 6,00,000. Calculate Net Profit Ratio. |
| Answer» Revenue from Operations, i.e., Net Sales ₹ 6,00,000. Calculate Net Profit Ratio. | |
| 482. |
______________ is the sum borrowed along with the interest earned on it. |
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Answer» ______________ is the sum borrowed along with the interest earned on it. |
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| 483. |
Following are the balance sheets of Reddy Ltd. as on 31 March 2003 and 2004. Liabilities20042005Assets20042005Share Capital2,4003,600Land & buildings1,6201,040Reserves & Surplus1,8722,124Plant & Machinery1,8604,716Debentures300600Furniture & Fixtures54108Long-term Debt9001,530Other Fixed Assets120180Bills Payable1,530702Long-terms Loans276354Other Current Liabilities4260Cash & Bank Balances70860 Bill Receivable1,2541,120 Stock960780 Prepaid Expenses1818 Other Current Assets174240 7,0448,616 7,0448,616 Analyse the financial position of the company with the help of the Common Size Balance Sheet. |
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Answer»
Following are the balance sheets of Reddy Ltd. as on 31 March 2003 and 2004.
Analyse the financial position of the company with the help of the Common Size Balance Sheet.
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| 484. |
Explain the terms : Cash equivalents, Cash flows. |
| Answer» Explain the terms : Cash equivalents, Cash flows. | |
| 485. |
ABC Ltd. issued 40,000; 10% Debentures of ₹ 100 each at par for cash payable in full along with the application. Applications were received for 60,000 debentures . Debentures were allotted and excess application money was refunded. Pass Journal entries in the books of the company. |
| Answer» ABC Ltd. issued 40,000; 10% Debentures of ₹ 100 each at par for cash payable in full along with the application. Applications were received for 60,000 debentures . Debentures were allotted and excess application money was refunded. Pass Journal entries in the books of the company. | |
| 486. |
Calculate Cost of Materials Consumed from the following:Opening Inventory of Materials ₹3,50,000; Finished Goods ₹75,000; Stock-in-Trade ₹2,00,000; Closing Inventory of: Materials ₹3,25,000; Finished Goods ₹85,000; Stock-in-Trade ₹1,50,000; Purchases during the year: Raw Material ₹17,50,000; Stock-in-Trade ₹9,00,000. |
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Answer» Calculate Cost of Materials Consumed from the following: Opening Inventory of Materials ₹3,50,000; Finished Goods ₹75,000; Stock-in-Trade ₹2,00,000; Closing Inventory of: Materials ₹3,25,000; Finished Goods ₹85,000; Stock-in-Trade ₹1,50,000; Purchases during the year: Raw Material ₹17,50,000; Stock-in-Trade ₹9,00,000. |
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| 487. |
A business has earned average profit of ₹ 1,00,000 during the last few years. Find out the value of goodwill by capitalisation method, given that the assets of the business are ₹ 10,00,000 and its external liabilities are ₹ 1,80,000. The normal rate of return is 10%. |
| Answer» A business has earned average profit of ₹ 1,00,000 during the last few years. Find out the value of goodwill by capitalisation method, given that the assets of the business are ₹ 10,00,000 and its external liabilities are ₹ 1,80,000. The normal rate of return is 10%. | |
| 488. |
Explain the process of dissolution of partnership firm. |
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Answer» Explain the process of dissolution of partnership firm. |
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| 489. |
A, B and C are partners sharing profits and losses in the ratio of 5 : 3 : 2 . Their Balance Sheet as at 31st March, 2017 stood as follows: Liabilities ₹ Assets ₹ Capital A/cs: Land and Building 3,50,000 A 2,50,000 Machinery 2,40,000 B 2,50,000 Computers 70,000 C 2,00,000 7,00,000 Investments(Market value ₹ 90,000) 1,00,000 General Reserve 60,000 Sundry Debtors 50,000 Investments Fluctuation Reserve 30,000 Cash in Hand 10,000 Sundry Creditors 90,000 Advertisement Suspense 5,000 8,80,000 8,80,000 They decided to share profits equally w.e.f. 1st April, 2017. They also agreed that:(i) Value of Land and Building be decreased by 5% .(ii) Value of Machinery be increased. by 5%.(iii) A Provision for Doubtful Debts be created 5% on Sundry Debtors.(iv) A Motor Cycle valued at ₹ 20,000 was unrecorded and is now to be recorded in the books.(v) Out of Sundry Creditors, ₹ 10,000 is not payable.(vi) Goodwill is to be valued at 2 years' purchase of last 3 years profits . Profits being for 2016-17—₹ 50,000 (Loss); 2015-16—₹2,50,000 and 2014-15—₹ 2,50,000.(vii) C was to carry out the work for reconstituting the firm at a remuneration ( including expenses) of ₹ 5,000. Expenses came to ₹ 3,000.Pass journal entries and prepare Revaluation Account. |
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Answer» A, B and C are partners sharing profits and losses in the ratio of 5 : 3 : 2 . Their Balance Sheet as at 31st March, 2017 stood as follows:
They decided to share profits equally w.e.f. 1st April, 2017. They also agreed that: (i) Value of Land and Building be decreased by 5% . (ii) Value of Machinery be increased. by 5%. (iii) A Provision for Doubtful Debts be created 5% on Sundry Debtors. (iv) A Motor Cycle valued at ₹ 20,000 was unrecorded and is now to be recorded in the books. (v) Out of Sundry Creditors, ₹ 10,000 is not payable. (vi) Goodwill is to be valued at 2 years' purchase of last 3 years profits . Profits being for 2016-17₹ 50,000 (Loss); 2015-16₹2,50,000 and 2014-15₹ 2,50,000. (vii) C was to carry out the work for reconstituting the firm at a remuneration ( including expenses) of ₹ 5,000. Expenses came to ₹ 3,000. Pass journal entries and prepare Revaluation Account. |
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| 490. |
A, B and C sharing profits and losses in the ratio of 3:2:1 decide to admit D for 15th share with effect from 1st April, 2017. An extract of their Balance Sheet as at 31st March, 2017 is : Capital and LiabilitiesRsAssetsRsInvestments Fluctuation Reserve30,000Investments (At cost)5,00,000 Show the accounting treatment under the following alternative cases : Case 1. If there is no other information. Case 2. If the market value of investments is Rs 5,00,000. Case 3. If the market value of investments is Rs 4,82,000. Case 4. If the market value of investments is Rs 4,55,000. Case 5. If the market value of investments is Rs 5,24,000. |
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Answer» A, B and C sharing profits and losses in the ratio of 3:2:1 decide to admit D for 15th share with effect from 1st April, 2017. An extract of their Balance Sheet as at 31st March, 2017 is : Capital and LiabilitiesRsAssetsRsInvestments Fluctuation Reserve30,000Investments (At cost)5,00,000 Show the accounting treatment under the following alternative cases : Case 1. If there is no other information. Case 2. If the market value of investments is Rs 5,00,000. Case 3. If the market value of investments is Rs 4,82,000. Case 4. If the market value of investments is Rs 4,55,000. Case 5. If the market value of investments is Rs 5,24,000. |
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| 491. |
Following is the Balance Sheet of X , Y and Z as at 31st March, 2018. They shared profits in the ratio of 3 : 3 : 2 : Liabilities Amount (₹) Assets Amount (₹) Sundry Creditors 2,50,000 Cash at Bank 50,000 General Reserve 80,000 Bills Receivable 60,000 Partners' Loan A/cs: Debtors 80,000 X 50,000 Less: Provision for D. Debts 4,000 76,000 Y 40,000 Stock 1,24,000 Capital A/cs: Fixed Assets 3,00,000 X 1,00,000 Advertisements Suspense A/c 16,000 Y 60,000 Profit and Los A/c 4,000 Z 50,000 2,10,000 6,30,000 6,30,000 On 1st April, 2018 , Y decided to retire from the firm on the following terms :(a) Stock to be depreciated by ₹ 12,000.(b) Advertisements Suspense Account to be written off. (c) Provision for Doubtful Debts to be increased to ₹ 6,000.(d) Fixed Assets be appreciated by 10%.(e) Goodwill of the firm, valued at ₹ 80,000 and the amount due to the retiring partners to be adjusted in X's and Z's Capital Accounts .Prepare Revaluation Account , Partners' Capital Accounts and the Balance Sheet to give effect to the above. |
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Answer» Following is the Balance Sheet of X , Y and Z as at 31st March, 2018. They shared profits in the ratio of 3 : 3 : 2 :
On 1st April, 2018 , Y decided to retire from the firm on the following terms : (a) Stock to be depreciated by ₹ 12,000. (b) Advertisements Suspense Account to be written off. (c) Provision for Doubtful Debts to be increased to ₹ 6,000. (d) Fixed Assets be appreciated by 10%. (e) Goodwill of the firm, valued at ₹ 80,000 and the amount due to the retiring partners to be adjusted in X's and Z's Capital Accounts . Prepare Revaluation Account , Partners' Capital Accounts and the Balance Sheet to give effect to the above. |
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| 492. |
X and Y are partners sharing profits in the ratio of 3 : 1. Z is admitted as a partner for which he pays ₹ 30,000 for goodwill in cash. X, Y and Z decide to share the future profits in equal proportion. You are required to pass a single Journal entry to give effect to the above arrangement. |
| Answer» X and Y are partners sharing profits in the ratio of 3 : 1. Z is admitted as a partner for which he pays ₹ 30,000 for goodwill in cash. X, Y and Z decide to share the future profits in equal proportion. You are required to pass a single Journal entry to give effect to the above arrangement. | |
| 493. |
Short-term borrowings will include all loans within a period of _____ from the date of the loan. |
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Answer» Short-term borrowings will include all loans within a period of _____ from the date of the loan. |
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| 494. |
The term 'redeemable' is used for(a) Preference shares(b) Commercial paper(c) Equity shares(d) Public deposits |
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Answer» The term 'redeemable' is used for (a) Preference shares (b) Commercial paper (c) Equity shares (d) Public deposits |
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| 495. |
A and B share profits in the proportions of 3/4 and 1/4. Their Balance Sheet on Dec. 31, 2016 was as follows: Balance Sheet of A and B as on December 31, 2016 Liabilites Amount (Rs) Assets Amount (Rs) Sundry creditors 41,500 Cash at Bank 26,500 Reserve fund 4,000 Bills Receivable 3,000 Capital Accounts Debtors 16,000 A 30,000 Stock 20,000 B 16,000 Fixtures 1,000 Land & Building 25,000 91,500 91,500 On Jan. 1,2017, C was admitted into partnership on the following terms: (a) That C pays Rs 10,000 as his capital.(b) That C pays Rs 5,000 for goodwill. Half of this sum is to be withdrawn by A and B.(c) That stock and fixtures be reduced by 10% and a 5%, provision for doubtful debts be created on Sundry Debtors and Bills Receivable.(d) That the value of land and buildings be appreciated by 20%.(e) There being a claim against the firm for damages, a liability to the extent of Rs 1,000 should be created.(f) An item of Rs 650 included in sundry creditors is not likely to be claimed and hence should be written back. Record the above transactions (journal entries) in the books of the firm assuming that the profit sharing ratio between A and B has not changed. Prepare the new Balance Sheet on the admission of C. |
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Answer»
A and B share profits in the proportions of 3/4 and 1/4. Their Balance Sheet on Dec. 31, 2016 was as follows:
On Jan. 1,2017, C was admitted into partnership on the following terms:
(a) That C pays Rs 10,000 as his capital. (b) That C pays Rs 5,000 for goodwill. Half of this sum is to be withdrawn by A and B. (c) That stock and fixtures be reduced by 10% and a 5%, provision for doubtful debts be created on Sundry Debtors and Bills Receivable. (d) That the value of land and buildings be appreciated by 20%. (e) There being a claim against the firm for damages, a liability to the extent of Rs 1,000 should be created. (f) An item of Rs 650 included in sundry creditors is not likely to be claimed and hence should be written back.
Record the above transactions (journal entries) in the books of the firm assuming that the profit sharing ratio between A and B has not changed. Prepare the new Balance Sheet on the admission of C.
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| 496. |
A and B are partners sharing profits in the ratio of 3 : 2 with capitals of ₹ 50,000 and ₹ 30,000 respectively. Interest on cpital is agreed 6% p.a. B is to be allowed an annual salary of ₹ 2,500. During the year profit prior to interest on capital but after charging B's salary amounted to ₹ 12,500. A provision of 5% of the profits if to be made in respect of Manager's Commission. |
| Answer» A and B are partners sharing profits in the ratio of 3 : 2 with capitals of ₹ 50,000 and ₹ 30,000 respectively. Interest on cpital is agreed 6% p.a. B is to be allowed an annual salary of ₹ 2,500. During the year profit prior to interest on capital but after charging B's salary amounted to ₹ 12,500. A provision of 5% of the profits if to be made in respect of Manager's Commission. | |
| 497. |
Define a Computerised Accounting System. Distinguish between a Manual and Computerised Accounting Systems. |
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Answer» Define a Computerised Accounting System. Distinguish between a Manual and Computerised Accounting Systems. |
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| 498. |
The following information isgiven Rs Opening creditors 60,000 Cash paid to creditors 30,000 Closing creditors 36,000 Returns Inward 13,000 Bill matured 27,000 Bill dishonoured 8,000 Purchases return 12,000 Discount allowed 5,000 Calculate credit purchasesduring the year |
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Answer» The following information is
Calculate credit purchases
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| 499. |
Two years ago the value of a machine was rupees 62500 if its value depreciates by 4% every year what is its present value |
| Answer» Two years ago the value of a machine was rupees 62500 if its value depreciates by 4% every year what is its present value | |
| 500. |
Sandesh Ltd. took over the assets of ₹ 7,00,000 and liabilities of ₹ 2,00,000 from Sanchar Ltd. for a purchase consideration of ₹ 4,59,500. ₹ 8,500 were paid by accepting a draft in favour of Sanchar Ltd. payable after three months and the balance was paid by issue of equity shares of ₹ 10 each at a premium of 10% in favour of Sanchar Ltd.Pass necessary journal entries for the above transactions in the books of Sandesh Ltd. |
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Answer» Sandesh Ltd. took over the assets of ₹ 7,00,000 and liabilities of ₹ 2,00,000 from Sanchar Ltd. for a purchase consideration of ₹ 4,59,500. ₹ 8,500 were paid by accepting a draft in favour of Sanchar Ltd. payable after three months and the balance was paid by issue of equity shares of ₹ 10 each at a premium of 10% in favour of Sanchar Ltd. Pass necessary journal entries for the above transactions in the books of Sandesh Ltd. |
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