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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.
| 601. |
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% drawn 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% drawn 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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| 602. |
Vikas, Gagan and Momita were partners in a firm sharing profits in the ratio of 2 : 2 : 1. The firm closes its books on 31st March every year. On 30th September, 2014 Momita died. According to the provisions of Partnership Deed the legal representatives of a deceased partner are entitled for the following in the event of his/her death:(a) Capital as per the last Balance Sheet.(b) Interest on capital at 6% per annum till the date of her death.(c) Her share of profit to the date of death calculated on the basis of average profit of last four years.(d) Her share of goodwill to be determined on the basis of three years' purchase of the average profit of last four years. The profits of last four years were: Year 2010-11 2011-12 2012-13 2013-14 Profit (₹ ) 30,000 50,000 40,000 60,000 The balance in Momita's Capital Account on 31st March, 2014 was ₹ 60,000 and she had withdrawn ₹ 10,000 till date of her death. Interest on her drawings was ₹ 300.Prepare Momita's Capital Account to be presented to her executors. |
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Answer» Vikas, Gagan and Momita were partners in a firm sharing profits in the ratio of 2 : 2 : 1. The firm closes its books on 31st March every year. On 30th September, 2014 Momita died. According to the provisions of Partnership Deed the legal representatives of a deceased partner are entitled for the following in the event of his/her death: (a) Capital as per the last Balance Sheet. (b) Interest on capital at 6% per annum till the date of her death. (c) Her share of profit to the date of death calculated on the basis of average profit of last four years. (d) Her share of goodwill to be determined on the basis of three years' purchase of the average profit of last four years. The profits of last four years were:
The balance in Momita's Capital Account on 31st March, 2014 was ₹ 60,000 and she had withdrawn ₹ 10,000 till date of her death. Interest on her drawings was ₹ 300. Prepare Momita's Capital Account to be presented to her executors. |
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| 603. |
Narain Laxmi Ltd. invited applications for issuing 7,500; 12% Debentures of ₹ 100 each at a premium of ₹ 35 per debenture . The full amount was payable on application. Applications were received for 10,000 Debentures. Allotment was made to all the applications on pro rata.Pass necessary Journal entries for the above transactions in the books of Narain Laxmi Ltd. |
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Answer» Narain Laxmi Ltd. invited applications for issuing 7,500; 12% Debentures of ₹ 100 each at a premium of ₹ 35 per debenture . The full amount was payable on application. Applications were received for 10,000 Debentures. Allotment was made to all the applications on pro rata. Pass necessary Journal entries for the above transactions in the books of Narain Laxmi Ltd. |
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| 604. |
X and Y are partners sharing profits in the ratio of 2 : 1. Their Balance Sheet as at 31st March, 2019 was: Liabilities ₹ Assets ₹ Sundry Creditors 25,000 Cash/Bank 5,000 General Reserve 18,000 Sundry Debtors 15,000 Capital A/cs: Stock 10,000 X 75,000 Investments 8,000 Y 62,000 1,37,000 Printer 5,000 Fixed Assets 1,37,000 1,80,000 1,80,000 They admit Z into partnership on the same date on the following terms:(a) Z brings in ₹ 40,000 as his capital and he is given 1/4th share in profits.(b) Z brings in ₹ 15,000 for goodwill, half of which is withdrawn by old partners.(c) Investments are valued at ₹ 10,000. X takes over Investments at this value.(d) Printer is to be reduced (depreciated) by 20% and Fixed Assets by 10%.(e) An unrecorded stock of Stationery on 31st March, 2019 is ₹ 1,000.(f) By bringing in or withdrawing cash, the Capitals of X and Y are to be made proportionate to that of Z on their profit-sharing basis.Pass Journal entries, prepare Revaluation Account, Capital Accounts and new Balance Sheet of the firm. |
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Answer» X and Y are partners sharing profits in the ratio of 2 : 1. Their Balance Sheet as at 31st March, 2019 was:
They admit Z into partnership on the same date on the following terms: (a) Z brings in ₹ 40,000 as his capital and he is given 1/4th share in profits. (b) Z brings in ₹ 15,000 for goodwill, half of which is withdrawn by old partners. (c) Investments are valued at ₹ 10,000. X takes over Investments at this value. (d) Printer is to be reduced (depreciated) by 20% and Fixed Assets by 10%. (e) An unrecorded stock of Stationery on 31st March, 2019 is ₹ 1,000. (f) By bringing in or withdrawing cash, the Capitals of X and Y are to be made proportionate to that of Z on their profit-sharing basis. Pass Journal entries, prepare Revaluation Account, Capital Accounts and new Balance Sheet of the firm. |
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| 605. |
A and B are partners sharing profits in the ratio of 3:2. C is admitted into the firm for 1/5th share in the profit which he acquires equally from A and B. The new profit sharing ratio will be: |
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Answer» A and B are partners sharing profits in the ratio of 3:2. C is admitted into the firm for 1/5th share in the profit which he acquires equally from A and B. The new profit sharing ratio will be: |
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| 606. |
A and B are partners in a firm sharing profits and losses in theratio of 3:2. They decide to admit C into partnership with 1/4 sharein profits. C will bring in Rs. 30,000 for capital and the requisiteamount of goodwill premium in cash. The goodwill of the firm isvalued at Rs, 20,000. The new profit sharing ratio is 2:1:1. A and Bwithdraw their share of goodwill. Give necessary journal entries? |
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Answer»
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| 607. |
XYZ Ltd.issued 5,000 , 10% Debentures of ₹ 100 each on 1st April, 2015 at a discount of 10% redeemable at a premium of 10% after 4 years. Give journal entries for the year ended 31st March, 2016, assuming that the interest was payable half-yearly on 30th September and 31st March. Tax is to be deducted 10%. |
| Answer» XYZ Ltd.issued 5,000 , 10% Debentures of ₹ 100 each on 1st April, 2015 at a discount of 10% redeemable at a premium of 10% after 4 years. Give journal entries for the year ended 31st March, 2016, assuming that the interest was payable half-yearly on 30th September and 31st March. Tax is to be deducted 10%. | |
| 608. |
If a liability is assumed by a partner, such Partner’s Capital Account is __________ |
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Answer» If a liability is assumed by a partner, such Partner’s Capital Account is |
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| 609. |
Accumulated losses are ________ to the capital accounts of partners. |
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Answer» Accumulated losses are ________ to the capital accounts of partners. |
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| 610. |
The following are the balance sheets of Devi Company Limited at the end of 2011 and 2012. Prepare a comparative Balance Sheet and study the financial position of the concern. Liabilities2011 (Rs.)2012 (Rs.)Assets2011 (Rs.)2012 (Rs.)Equity Capital 1,20,0001,85,000Fixed Assets 1,40,0001,95,000Preference70,00095,000Stock40,00045,000CapitalReserves30,00035,000Debtors70,00082,500P and L 17,50020,000Bills 20,00050,000ReceivablesBank Overdraft35,00045,450Prepaid6,0008,000ExpensesCreditors25,00035,000Cash at Bank40,00048,500Provision for Cash in Hand5,00029,000Taxation15,00022,500ProposedDividend8,50020,050¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯3,21,000––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯4,58,000––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯3,21,000––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯4,58,000–––––––––– |
| Answer» The following are the balance sheets of Devi Company Limited at the end of 2011 and 2012. Prepare a comparative Balance Sheet and study the financial position of the concern. Liabilities2011 (Rs.)2012 (Rs.)Assets2011 (Rs.)2012 (Rs.)Equity Capital 1,20,0001,85,000Fixed Assets 1,40,0001,95,000Preference70,00095,000Stock40,00045,000CapitalReserves30,00035,000Debtors70,00082,500P and L 17,50020,000Bills 20,00050,000ReceivablesBank Overdraft35,00045,450Prepaid6,0008,000ExpensesCreditors25,00035,000Cash at Bank40,00048,500Provision for Cash in Hand5,00029,000Taxation15,00022,500ProposedDividend8,50020,050¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯3,21,000––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯4,58,000––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯3,21,000––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯4,58,000–––––––––– | |
| 611. |
What relationships will be established to study:a. Inventory Turnoverb. Trade Receivables Turnoverc. Trade Payables Turnoverd. Working Capital Turnover |
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Answer» What relationships will be established to study: a. Inventory Turnover b. Trade Receivables Turnover c. Trade Payables Turnover d. Working Capital Turnover |
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| 612. |
22. A railway half ticket costs half the full fare, but the reservation charge is as that for a full ticket. A full reserved ticket from mumbai to a certain station costs Rs 240 where as one full reserved and one half reserved ticket costs Rs370. Find the full fare and the reservation charge? |
| Answer» 22. A railway half ticket costs half the full fare, but the reservation charge is as that for a full ticket. A full reserved ticket from mumbai to a certain station costs Rs 240 where as one full reserved and one half reserved ticket costs Rs370. Find the full fare and the reservation charge? | |
| 613. |
X and Y entered into partnership on 1st April, 2017 and contributed ₹ 2,00,000 and ₹ 1,50,000 respectively as their capitals. On 1st October, 2017, X provided ₹ 50,000 as loan to the firm. As per the provisions of the partnership Deed:(i) 20% of Profits before charging interest on Drawings but after making appropriations to be transferred to General Reserve.(ii) Interest on capital at 12% p.a. and Interest on Drawings 10% p.a.(iii) X to ger monthly salary of ₹ 5,000 and Y to get salary of ₹ 22,500 per quarter.(iv) X is entitled to a commission of 5% on sales. Sales for the year were ₹ 3,50,000.(v) Profit and Loss to be shared in the ratio of their capital contribution up to ₹ 1,75,000 and above ₹ 1,75,000 equally.The profit for the year ended 31st March, 2018 before providing for any interest was ₹ 4,61,000. The drawings of X and Y were ₹ 1,00,000 and ₹ 1,25,000 respectively.Pass the necessary Journal entries relating to appropriation our of profit and Loss Appropriation Account and the Partners' Capital Accounts. |
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Answer» X and Y entered into partnership on 1st April, 2017 and contributed ₹ 2,00,000 and ₹ 1,50,000 respectively as their capitals. On 1st October, 2017, X provided ₹ 50,000 as loan to the firm. As per the provisions of the partnership Deed: (i) 20% of Profits before charging interest on Drawings but after making appropriations to be transferred to General Reserve. (ii) Interest on capital at 12% p.a. and Interest on Drawings 10% p.a. (iii) X to ger monthly salary of ₹ 5,000 and Y to get salary of ₹ 22,500 per quarter. (iv) X is entitled to a commission of 5% on sales. Sales for the year were ₹ 3,50,000. (v) Profit and Loss to be shared in the ratio of their capital contribution up to ₹ 1,75,000 and above ₹ 1,75,000 equally. The profit for the year ended 31st March, 2018 before providing for any interest was ₹ 4,61,000. The drawings of X and Y were ₹ 1,00,000 and ₹ 1,25,000 respectively. Pass the necessary Journal entries relating to appropriation our of profit and Loss Appropriation Account and the Partners' Capital Accounts. |
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| 614. |
In accounting for non profit organisation, the sale of old newspapers is generally considered as a/an |
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Answer» In accounting for non profit organisation, the sale of old newspapers is generally considered as a/an |
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| 615. |
The valueof the nominal GNP of an economy was Rs 2,500 crores in a particularyear. The value of GNP of that country during the same year,evaluated at the prices of same base year, was Rs 3,000 crores.Calculate the value of the GNP deflator of the year in percentageterms. Has the price level risen between the base year and the yearunder consideration? |
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Answer» The value |
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| 616. |
If the value of assets is increased, the gain will be _______ to the revaluation account |
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Answer» If the value of assets is increased, the gain will be _______ to the revaluation account |
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| 617. |
Partnership type of business is formed by the mutual agreement of partners. What kind of agreement is it? |
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Answer» Partnership type of business is formed by the mutual agreement of partners. What kind of agreement is it? |
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| 618. |
All receipts of capital nature are shown in : |
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Answer» All receipts of capital nature are shown in : |
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| 619. |
What is the transaction demand for money? |
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Answer» What is the transaction demand for money? |
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| 620. |
Mohan and Sohan are in partnership sharing profits in the proportion of 3/5th and 2/5th respectively. Their Balance Sheet as at 31st March, 2018 was: Liabilities ₹ Assets ₹ Mohan's Capital 2,000 Plant 650 Sohan's Capital 1,000 3,000 Cash 650 Creditors 400 Debtors 1,000 Less: Provision for D.D 400 600 Stock 1,500 3,400 3,400 They decide to admit Rohan to a 1/3rd share upon the terms that he is to pay into the business ₹ 1,000 as Goodwill and sufficient Capital to give him a 1/3rd share of the total capital of the new firm. It was agreed that the Provision for Doubtful Debts be reduced to ₹ 100 and the Stock be revalued at ₹ 2,000 and that the Plant be reduced to ₹ 500.You are required to record the above in the Ledger of the firm and show Balance Sheet of the new partnership. |
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Answer» Mohan and Sohan are in partnership sharing profits in the proportion of 3/5th and 2/5th respectively. Their Balance Sheet as at 31st March, 2018 was:
They decide to admit Rohan to a 1/3rd share upon the terms that he is to pay into the business ₹ 1,000 as Goodwill and sufficient Capital to give him a 1/3rd share of the total capital of the new firm. It was agreed that the Provision for Doubtful Debts be reduced to ₹ 100 and the Stock be revalued at ₹ 2,000 and that the Plant be reduced to ₹ 500. |
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| 621. |
Purchase of machinery can be classified as ___________. |
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Answer» Purchase of machinery can be classified as ___________. |
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| 622. |
Unrealized gains and losses arising from foreign exchange rates are ___ |
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Answer» Unrealized gains and losses arising from foreign exchange rates are |
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| 623. |
Whathappens to the budget set if the prices as well as the income double? |
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Answer» What |
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| 624. |
Reserves are the part of ............. of company other than share capital. |
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Answer» Reserves are the part of ............. of company other than share capital. |
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| 625. |
A , B and C are partners sharing profits and losses in the ratio of 3 : 2 : 1 respectively. Their Balance Sheet as at 31st March , 2108 is as follows: Liabilities ₹ Assets ₹ Capital A/cs: Land and Building 50,000 A 60,000 Plant and Machinery 40,000 B 60,000 Furniture 30,000 C 40,000 1,60,000 Stock 20,000 Creditors 30,000 Debtors 30,000 Bills Payable 10,000 Bills Receivable 20,000 Bank 10,000 2,00,000 2,00,000 D is admitted as a new partner on 1st April, 2018 for an equal share and is to pay ₹ 50,000 as capital .Following are the adjustments required on D's admission :(a) Out of the Creditors , a sum of ₹ 10,000 is due to D which will be transferred to his capital Account.(b) Advertisement Expenses of ₹ 1,200 are to be carried forward to next accounting period as Prepaid Expenses.(c) Expenses debited in the Profit and Loss Account includes a sum of ₹ 2,000 paid for B's personal expenses.(d) A Bill of Exchange of ₹ 4,000, which was previously discounted with the banker, was dishonoured on 31st March, 2018 but no entry has been passed for that .(e) A Provision for Doubtful Debts 5% is to be created against Debtors .(f) Expenses on Revaluation amounted to ₹ 2,100 is paid by A . Prepare necessary Ledger Accounts and Balance Sheet after D's admission. |
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Answer» A , B and C are partners sharing profits and losses in the ratio of 3 : 2 : 1 respectively. Their Balance Sheet as at 31st March , 2108 is as follows:
D is admitted as a new partner on 1st April, 2018 for an equal share and is to pay ₹ 50,000 as capital . Following are the adjustments required on D's admission : (a) Out of the Creditors , a sum of ₹ 10,000 is due to D which will be transferred to his capital Account. (b) Advertisement Expenses of ₹ 1,200 are to be carried forward to next accounting period as Prepaid Expenses. (c) Expenses debited in the Profit and Loss Account includes a sum of ₹ 2,000 paid for B's personal expenses. (d) A Bill of Exchange of ₹ 4,000, which was previously discounted with the banker, was dishonoured on 31st March, 2018 but no entry has been passed for that . (e) A Provision for Doubtful Debts 5% is to be created against Debtors . (f) Expenses on Revaluation amounted to ₹ 2,100 is paid by A . Prepare necessary Ledger Accounts and Balance Sheet after D's admission. |
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| 626. |
On receipt of application money, which account is debited ? |
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Answer» On receipt of application money, which account is debited ? |
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| 627. |
A man deposited Rs10000 in a bank at the rate of 5% simple interest annually. Find theamount in 15th year since he deposited the amount and alsocalculate the total amount after 20 years. |
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Answer» A man deposited Rs |
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| 628. |
A limited company offered for subscription of 1,00,000 equity shares of Rs.10 each at a premium of Rs. 2 per share. 2,00,000 : 10% Preference shares of Rs. 10 each at par. The amount on share was payable as under Equity SharesPreference SharesOn ApplicationRs.3 per shareRs.3 per shareOn AllotmentRs.5 per shareRs.4 per share(including a premium)On First CallRs.4 per shareRs.3 per share All the shares were fully subscribed, called-up and paid. Record these transactions in the journal and cash book of the company. |
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Answer» A limited company offered for subscription of 1,00,000 equity shares of Rs.10 each at a premium of Rs. 2 per share. 2,00,000 : 10% Preference shares of Rs. 10 each at par. The amount on share was payable as under Equity SharesPreference SharesOn ApplicationRs.3 per shareRs.3 per shareOn AllotmentRs.5 per shareRs.4 per share(including a premium)On First CallRs.4 per shareRs.3 per share All the shares were fully subscribed, called-up and paid. |
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| 629. |
Explain the major Cash Inflow and outflows from investing activities. |
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Answer» Explain the major Cash Inflow and outflows from investing activities. |
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| 630. |
Debentures represent(a) Fixed capital of the company(b) Permanent capital of the company(c) Fluctuating capital of the company(d) Loan capital of the company |
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Answer» Debentures represent (a) Fixed capital of the company (b) Permanent capital of the company (c) Fluctuating capital of the company (d) Loan capital of the company |
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| 631. |
The following Balance Sheet and other information, calculate following ratios:(i) Debt Equity Ratio (ii) Working Capital Turnover Ratio (iii) Debtors Turnover Ratio Liabilities Amount Rs Assets Amount Rs General Reserve 80,000 Preliminary Expenses 20,000 Profit and Loss 1,20,000 Cash 1,00,000 Loan 15% 2,40,000 Stock 80,000 Bills Payable 20,000 Bills Receivables 40,000 Creditors 80,000 Debtors 1,40,000 Share Capital 2,00,000 Fixed Assets 3,60,000 7,40,000 7,40,000 |
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Answer» The following Balance Sheet and other information, calculate following ratios: (i) Debt Equity Ratio (ii) Working Capital Turnover Ratio (iii) Debtors Turnover Ratio
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| 632. |
Receipt and Payment Account of Shankar Sports club is given below, for the year ended March 31, 2017 Receipt and Payment Account for the year ending March 31, 2017 Receipts Amount Rs Payments Amount Rs Opening Cash in hand 2,600 Rent 18,000 Entrance fees 3,200 Wages 7,000 Donation for building 23,000 Billiard table 14,000 Locker rent 1,200 Furniture 10,000 Life membership fee 7,000 Interest 2,000 Profit from entertainment 3,000 Postage 1,000 Subscription 40,000 Salary 24,000 Cash in hand 4,000 80,000 80,000 Prepare Income and Expenditure Account and Balance Sheet with help of following Information:Subscription outstanding on March 31, 2016 is Rs 1, 200 and Rs 2,300 on March 31, 2017, opening stock of postage stamps is Rs 300 and closing stock is Rs 200, Rent Rs 1,500 related to 2015 and Rs 1,500 is still unpaid.On April 01, 2016 the club owned furniture Rs 15,000, Furniture valued at Rs 22,500On March 31, 2017. The club took a loan of Rs 20,000 ( 10% p.a.) in 2017. |
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Answer» Receipt and Payment Account of Shankar Sports club is given below, for the year ended March 31, 2017
Prepare Income and Expenditure Account and Balance Sheet with help of following Information: Subscription outstanding on March 31, 2016 is Rs 1, 200 and Rs 2,300 on March 31, 2017, opening stock of postage stamps is Rs 300 and closing stock is Rs 200, Rent Rs 1,500 related to 2015 and Rs 1,500 is still unpaid. On April 01, 2016 the club owned furniture Rs 15,000, Furniture valued at Rs 22,500 On March 31, 2017. The club took a loan of Rs 20,000 ( 10% p.a.) in 2017. |
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| 633. |
63.A telephone company in a town has 500 subscribers on its list and collects fixed charges of 300 per subscriber. The company proposes to increase the annual subscription and it is believed that every increase of 1 one subscriber will discontinue the service. Find what increase will bring maximum revenue? |
| Answer» 63.A telephone company in a town has 500 subscribers on its list and collects fixed charges of 300 per subscriber. The company proposes to increase the annual subscription and it is believed that every increase of 1 one subscriber will discontinue the service. Find what increase will bring maximum revenue? | |
| 634. |
Following figures have been extracted from Shivalika Mills Ltd.:Inventory in the beginning of the year ₹ 60,000.Inventory at the end of the year ₹ 1,00,000. Inventory Turnover Ratio 8 times.Selling price 25% above cost.Compute amount of Gross Profit and Revenue from Operations (Net Sales). |
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Answer» Following figures have been extracted from Shivalika Mills Ltd.: Inventory in the beginning of the year ₹ 60,000. Inventory at the end of the year ₹ 1,00,000. Inventory Turnover Ratio 8 times. Selling price 25% above cost. Compute amount of Gross Profit and Revenue from Operations (Net Sales).
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| 635. |
Which statement express all items of financial statement as a percentage of some common base such as total assets for balance sheet? |
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Answer» Which statement express all items of financial statement as a percentage of some common base such as total assets for balance sheet? |
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| 636. |
Tangible and intangible assets are classified under ___ |
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Answer» Tangible and intangible assets are classified under |
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| 637. |
(a) Current Liabilities of a Company are Rs. 3,50,000. Its current ratio is 3 : 1 and acid test ratio is 1.75 : 1. Calculate the value of Current assets, Liquid assets and Inventories. (b) Current Assets of a Company are Rs. 3,60,000. Its Current ratio is 2.4:1 and acid test ratio is 1.3:1. Calculate the value of Current liabilities, liquid assets and inventories. (c) Working Capital of a company is Rs,30,000. Its Current ratio is 2.5:1. Calculate the value of (i) Current assets, (ii) Current liabilities, (iii) Acid test ratio, assuming inventories of Rs. 26,000. |
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Answer» (a) Current Liabilities of a Company are Rs. 3,50,000. Its current ratio is 3 : 1 and acid test ratio is 1.75 : 1. Calculate the value of Current assets, Liquid assets and Inventories. (b) Current Assets of a Company are Rs. 3,60,000. Its Current ratio is 2.4:1 and acid test ratio is 1.3:1. Calculate the value of Current liabilities, liquid assets and inventories. (c) Working Capital of a company is Rs,30,000. Its Current ratio is 2.5:1. Calculate the value of (i) Current assets, (ii) Current liabilities, (iii) Acid test ratio, assuming inventories of Rs. 26,000. |
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| 638. |
A limited company issued ₹ 1,00,000, 9% Debentures at a discount of 6% on 1st April, 2017. These debentures are to be redeemed equally, spread over 5 annual instalments.Pass the Journal entries for issue of debentures and writing off the discount. |
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Answer» A limited company issued ₹ 1,00,000, 9% Debentures at a discount of 6% on 1st April, 2017. These debentures are to be redeemed equally, spread over 5 annual instalments. Pass the Journal entries for issue of debentures and writing off the discount. |
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| 639. |
Following Receipt and Payment Account was prepared from the cash book of Delhi Charitable Trust for the year ending December 31, 2017 Receipt and Payment Account for the year ending December 31, 2017 Receipts Amount Rs Payments Amount Rs Balance b/d Charity 11,500 Cash in hand 11,500 Rent and taxes 3,200 Cash at bank 12,600 Salary 6,000 Donation 9,000 Printing 600 Subscription 42,800 Postage 300 Legacies 18,000 Advertisements 4,500 Interest on investment 4,500 Insurances 2,000 Sale of old newspapers 200 Furniture 21,600 Investment 23,000 Balance c/d: Cash in hand 9,900 Cash at bank 16,000 98,600 98,600 Prepare Income and expenditure account for the year ended December 31, 2017, and a balance sheet as on that date after the following adjustments: (a) It was decided to treat one-third of the amount received on account of donation as income. (b) Insurance premium was paid in advance for three months. (c) Interest on investment Rs1,100 accrued was not received. (d) Rent Rs600: salary Rs900 and advertisement expenses Rs1,000 outstanding as on December 31, 2017. |
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Answer» Following Receipt and Payment Account was prepared from the cash book of Delhi Charitable Trust for the year ending December 31, 2017
Prepare Income and expenditure account for the year ended December 31, 2017, and a balance sheet as on that date after the following adjustments:
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| 640. |
What is meant by money market? Explain any two instruments used in money market. |
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Answer» What is meant by money market? Explain any two instruments used in money market. |
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| 641. |
Rs 1000 is invested at 10 percent simple interest. Check at the end of every year if the total interest amount is in A.P. If this is an A.P. then find interest amount after 20 years. For this complete the following activity. |
| Answer» Rs 1000 is invested at 10 percent simple interest. Check at the end of every year if the total interest amount is in A.P. If this is an A.P. then find interest amount after 20 years. For this complete the following activity. | |
| 642. |
Anju, Manju and Mamta are partners whose fixed capitals were Rs 10,000, Rs 8,000 and Rs 6,000, respectively. As per the partnership agreement, there is a provision for allowing interest on capitals 5% p.a. but entries for the same have not been made for the last three years. The profit sharing ratio during there years remained as follows: Year Anju Manju Mamta 2014 4 3 5 2015 3 2 1 2016 1 1 1 Make necessary and adjustment entry at the beginning of the fourth year i.e. Jan. 2017. |
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Answer» Anju, Manju and Mamta are partners whose fixed capitals were Rs 10,000, Rs 8,000 and Rs 6,000, respectively. As per the partnership agreement, there is a provision for allowing interest on capitals 5% p.a. but entries for the same have not been made for the last three years. The profit sharing ratio during there years remained as follows:
Make necessary and adjustment entry at the beginning of the fourth year i.e. Jan. 2017.
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| 643. |
On the basis of information given below , calculate the amount of medicines to be debited to the Income and Expenditure Account of Good Health Hospital for the year ended 31st March, 2018: Particulars 1 st April, 2017 (₹) 31 st March, 2018 (₹) Stock of Medicines Creditors for Medicines 1,75,750 15,06,900 1,44,650 18,20,700 Medicines purchased during the year ended 31st March, 2018 were ₹ 60,80,700 . |
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Answer» On the basis of information given below , calculate the amount of medicines to be debited to the Income and Expenditure Account of Good Health Hospital for the year ended 31st March, 2018:
Medicines purchased during the year ended 31st March, 2018 were ₹ 60,80,700 .
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| 644. |
We close deceased partner's capital account by transferring the amount to ______________ account. |
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Answer» We close deceased partner's capital account by transferring the amount to ______________ account. |
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| 645. |
From the following prepare Single Column Cash Book of Suresh, Chennai and post them into ledger accounts: 2019 ₹ April 1 Cash in Hand 6,400 April 3 Received Cash from Anupama 1,00,000 April 4 Paid into Bank 80,000 April 5 Received from Bhumika as commission ₹ 6,000 plus CGST and SGST 6% each April 6 Paid Wages 30,000 April 7 Withdrawn from Bank for expenses 30,000 April 8 Purchased goods from Ashok on credit of ₹ 10,000 plus CGST and SGST 6% each April 9 Cash sales of ₹ 10,000 charged CGST and SGST 6% each April 11 Drew Cash for domestic purposes 10,000 April 12 Purchased furniture for ₹ 4,000 plus CGST and SGST 6% each April 13 Paid to Ruma 1,200 April 14 Paid to Ganguly Brothers for office fan ₹ 1,500 plus CGST and SGST 6% each April 15 Paid own life insurance premium from office cash 800 April 16 Purchased stationery ₹ 1,000 plus CGST and SGST 6% each April 17 Paid office expenses 500 April 18 Remitted to Raman 900 April 19 Paid electricity charges 100 April 20 Received interest from Gupta &Co. 500 April 30 Deposited all cash into bank in excess of 2,000 |
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Answer» From the following prepare Single Column Cash Book of Suresh, Chennai and post them into ledger accounts:
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| 646. |
Disha and Divya are partners in a firm sharing profits in the ratio of 3 : 2 respectively. The fixed capital of Disha is ₹ 4,80,000 and of Divya is ₹ 3,00,000. On 1st April, 2018 they admitted Hina as a new partner for 1/5th share in future profits . Hina brought ₹ 3,00,000 as her capital . Calculate value of goodwill of the firm and record necessary journal entries on Hina's admission. |
| Answer» Disha and Divya are partners in a firm sharing profits in the ratio of 3 : 2 respectively. The fixed capital of Disha is ₹ 4,80,000 and of Divya is ₹ 3,00,000. On 1st April, 2018 they admitted Hina as a new partner for 1/5th share in future profits . Hina brought ₹ 3,00,000 as her capital . Calculate value of goodwill of the firm and record necessary journal entries on Hina's admission. | |
| 647. |
All the affairs of the company are governed by the provisions of ___ |
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Answer» All the affairs of the company are governed by the provisions of |
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| 648. |
Techniques which are used to identify financial statements trends include - |
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Answer» Techniques which are used to identify financial statements trends include - |
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| 649. |
What is meant by Financial Analysis? Give any one objective of such analysis. |
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Answer» What is meant by Financial Analysis? Give any one objective of such analysis. |
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| 650. |
Donation received for a special purpose : |
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Answer» Donation received for a special purpose : |
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