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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.
| 751. |
A and B are partners in a firm sharing profits in the ratio of 2 : 1 . They decided with effect from 1st April, 2017, that they would share profits in the ratio of 3 : 2 . But, this decision was taken after the profit for the year 2017-18 amounting to ₹ 90,000 was distributed in the old ratio.Value of firm's goodwill was estimated on the basis of aggregate of two years' profits preceding the date decision became effective .The profits for 2015-16 and 2016-17 were ₹ 60,000 and ₹ 75,000 respectively. It was decided that Goodwill Account will not be opened in the books of the firm and necessary adjustment be made through Capital Accounts which, on 31st March, 2018 stood, at ₹ 1,50,000 for A and ₹ 90,000 for B.Pass necessary journal entries and prepare Capital Accounts. |
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Answer» A and B are partners in a firm sharing profits in the ratio of 2 : 1 . They decided with effect from 1st April, 2017, that they would share profits in the ratio of 3 : 2 . But, this decision was taken after the profit for the year 2017-18 amounting to ₹ 90,000 was distributed in the old ratio. Value of firm's goodwill was estimated on the basis of aggregate of two years' profits preceding the date decision became effective . The profits for 2015-16 and 2016-17 were ₹ 60,000 and ₹ 75,000 respectively. It was decided that Goodwill Account will not be opened in the books of the firm and necessary adjustment be made through Capital Accounts which, on 31st March, 2018 stood, at ₹ 1,50,000 for A and ₹ 90,000 for B. Pass necessary journal entries and prepare Capital Accounts. |
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| 752. |
Kamal and Kapil ar partners having fixed capitals of ₹ 5,00,000 each as on 31st March, 2017. Kamal introduced further captial of ₹ 1,00,000 on 1st October, 2017 whereas Kapil withdrew ₹ 1,00,000 on 1st October, 2017 out of capital.Interest on capital is to be allowed 10% p.a.The firm earned net profit of ₹ 6,00,000 for the year ended 31st March 2018.Pass the Journal entry for interest on capital and prepare Profit and Loss Appropriation Account. |
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Answer» Kamal and Kapil ar partners having fixed capitals of ₹ 5,00,000 each as on 31st March, 2017. Kamal introduced further captial of ₹ 1,00,000 on 1st October, 2017 whereas Kapil withdrew ₹ 1,00,000 on 1st October, 2017 out of capital. Interest on capital is to be allowed 10% p.a. The firm earned net profit of ₹ 6,00,000 for the year ended 31st March 2018. Pass the Journal entry for interest on capital and prepare Profit and Loss Appropriation Account. |
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| 753. |
A, B and C are partners sharing profits and losses in the ratio of 2 : 2 : 1 respectively. A is entitled to a commission of 10% on the net profit. Net profit for the year is ₹ 1,10,000.Determine the amount of commission payable to A. |
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Answer» A, B and C are partners sharing profits and losses in the ratio of 2 : 2 : 1 respectively. A is entitled to a commission of 10% on the net profit. Net profit for the year is ₹ 1,10,000. Determine the amount of commission payable to A. |
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| 754. |
X, Y and Z are sharing profits and losses in the ratio of 5 : 3 : 2. With effect from 1st April, 2019, they decide to share profits and losses equally. Calculate each partner's gain or sacrifice due to the change in ratio. |
| Answer» X, Y and Z are sharing profits and losses in the ratio of 5 : 3 : 2. With effect from 1st April, 2019, they decide to share profits and losses equally. Calculate each partner's gain or sacrifice due to the change in ratio. | |
| 755. |
How would you deal with ‘Premium on Redemption of Debentures? |
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Answer» How would you deal with ‘Premium on Redemption of Debentures? |
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| 756. |
The statement of financial position and the balance sheet are synonyms. |
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Answer» The statement of financial position and the balance sheet are synonyms. |
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| 757. |
A, B, and C were partners in a firm sharing profits in the ratio of 8 : 4 : 3. B retires and his share is taken up equally by A and C. Find the new profit-sharing ratio. |
| Answer» A, B, and C were partners in a firm sharing profits in the ratio of 8 : 4 : 3. B retires and his share is taken up equally by A and C. Find the new profit-sharing ratio. | |
| 758. |
Net profit is shown in the ___ Side of profit & loss appropriation account. |
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Answer» Net profit is shown in the |
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| 759. |
When the unrecorded asset is sold for cash, realisation account will be ……………. |
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Answer» When the unrecorded asset is sold for cash, realisation account will be ……………. |
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| 760. |
Profits for the five years ending on 31st March, are as follows:Year 2015 − ₹ 4,00,000; Year 2016 − ₹ 3,98,000; Year 2017 − ₹ 4,50,000; Year 2018 − ₹ 4,45,000 and Year 2019 − ₹ 5,00,000.Calculate goodwill of the firm on the basis of 4 years' purchase of 5 years' average profit. |
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Answer» Profits for the five years ending on 31st March, are as follows: Year 2015 − ₹ 4,00,000; Year 2016 − ₹ 3,98,000; Year 2017 − ₹ 4,50,000; Year 2018 − ₹ 4,45,000 and Year 2019 − ₹ 5,00,000. Calculate goodwill of the firm on the basis of 4 years' purchase of 5 years' average profit. |
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| 761. |
Ratio of Current Assets (₹3,00,000) to Current Liabilities (₹2,00,000) is 1.5:1. The accountant of the firm is interested in maintaing a Current Ratio of 2:1 by paying off a part of the Current Liabilities. Compute amount of the Current Liabilities that should be paid so that the Current Ratio at the level of 2:1 may be maintained. |
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Answer» Ratio of Current Assets (₹3,00,000) to Current Liabilities (₹2,00,000) is 1.5:1. The accountant of the firm is interested in maintaing a Current Ratio of 2:1 by paying off a part of the Current Liabilities. Compute amount of the Current Liabilities that should be paid so that the Current Ratio at the level of 2:1 may be maintained. |
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| 762. |
A, B and C are partners in a firm in the ratio 3:2:1. B retires on 31/08/2014. The sales of the firm up to 31/08/2014 were Rs.15,00,000. The net profit ratio of the business is 20% based on last year's profits of Rs. 6,00,000 on sales of Rs.30,00,000. The financial year of the firm is from April to March. Calculate the share of B's profits up to the date of his retirement. |
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Answer» A, B and C are partners in a firm in the ratio 3:2:1. B retires on 31/08/2014. The sales of the firm up to 31/08/2014 were Rs.15,00,000. The net profit ratio of the business is 20% based on last year's profits of Rs. 6,00,000 on sales of Rs.30,00,000. The financial year of the firm is from April to March. Calculate the share of B's profits up to the date of his retirement. |
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| 763. |
Calculate the following ratio on the basis of following information:(i) Gross Profit Ratio (ii) Current Ratio (iii) Acid Test Ratio (iv) Inventory Turnover Ratio (v) Fixed Assets Turnover Ratio Rs. Gross Profit 50,000 Revenue from Operations 1,00,000 Inventory 15,000 Trade Receivables 27,500 Cash and Cash Equivalents 17,500 Current Liabilities 40,000 Land & Building 50,000 Plant & Machinery 30,000 Furniture 20,000 |
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Answer» Calculate the following ratio on the basis of following information: (i) Gross Profit Ratio (ii) Current Ratio (iii) Acid Test Ratio (iv) Inventory Turnover Ratio (v) Fixed Assets Turnover Ratio
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| 764. |
Rich sugar Ltd. issued ₹ 20 Lakh,8% Debentures divided into debentures of ₹ 100 each on 1st April, 2013, redeemable in four equal annual installments starting from 31st March,2016. The company decided to transfer to Debentures Redemption Reserve ₹ 2,50,000 each year on 31st March,2014 and 2015.The company invested ₹ 3,00,000 in Government securities as required by the Companies Act, 2013.Pass necessary journal entries for the above transactions. |
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Answer» Rich sugar Ltd. issued ₹ 20 Lakh,8% Debentures divided into debentures of ₹ 100 each on 1st April, 2013, redeemable in four equal annual installments starting from 31st March,2016. The company decided to transfer to Debentures Redemption Reserve ₹ 2,50,000 each year on 31st March,2014 and 2015. The company invested ₹ 3,00,000 in Government securities as required by the Companies Act, 2013. Pass necessary journal entries for the above transactions. |
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| 765. |
___ is a ratio which measures how efficiently a company is using its working capital to support a given level of sales. |
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Answer» |
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| 766. |
Reema and Seema are partners sharing profits equally. The Partnership Deed provides that both Reema and Seema will get monthly salary of Rs 15,000 each, Interest on Capital will be allowed 5% p.a. and Interest on Drawings will be charged 10% p.a. Their capitals were Rs 5,00,000 each and drawings during the year were Rs 60,000 each.The firm incurred a loss of Rs 1,00,000 during the year ended 31st March, 2018.Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2018. |
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Answer» Reema and Seema are partners sharing profits equally. The Partnership Deed provides that both Reema and Seema will get monthly salary of Rs 15,000 each, Interest on Capital will be allowed 5% p.a. and Interest on Drawings will be charged 10% p.a. Their capitals were Rs 5,00,000 each and drawings during the year were Rs 60,000 each. The firm incurred a loss of Rs 1,00,000 during the year ended 31st March, 2018. Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2018. |
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| 767. |
What is suggested by the image ‘massive weight of Uncle’s wedding band’? |
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Answer» What is suggested by the image ‘massive weight of Uncle’s wedding band’? |
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| 768. |
Azad and Benny are equal partners. Their capitals are ₹ 40,000 and ₹ 80,000 respectively. After the accounts for the year have been prepared, it is discovered that interest 5% p.a. as provided in the partnership agreement has not been credited to the Capital Accounts before distribution of profits. It is decided t make an adjustment entry in the beginning of the next year. Record the necessary journal entry. |
| Answer» Azad and Benny are equal partners. Their capitals are ₹ 40,000 and ₹ 80,000 respectively. After the accounts for the year have been prepared, it is discovered that interest 5% p.a. as provided in the partnership agreement has not been credited to the Capital Accounts before distribution of profits. It is decided t make an adjustment entry in the beginning of the next year. Record the necessary journal entry. | |
| 769. |
When the directors decide to fully accept some applications and totally reject the others, the application money received on rejected applications are ___ |
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Answer» When the directors decide to fully accept some applications and totally reject the others, the application money received on rejected applications are |
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| 770. |
X, Y and Z are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Z retires from the firm on 31st March, 2019. On the date of Z's retirement, the following balances appeared in the books of the firm: General Reserve ₹ 1,80,000 Profit and Loss Account (Dr.) ₹ 30,000 Workmen Compensation Reserve ₹ 24,000 which was no more required Employees' Provident Fund ₹ 20,000. Pass necessary Journal entries for the adjustment of these items on Z's retirement. |
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Answer» X, Y and Z are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Z retires from the firm on 31st March, 2019. On the date of Z's retirement, the following balances appeared in the books of the firm: General Reserve ₹ 1,80,000 Profit and Loss Account (Dr.) ₹ 30,000 Workmen Compensation Reserve ₹ 24,000 which was no more required Employees' Provident Fund ₹ 20,000. Pass necessary Journal entries for the adjustment of these items on Z's retirement. |
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| 771. |
Calculate the interest on drawings of Mr. Bajaj at 10% p.a. for the year ended 31st March, 2016 in each of the following alternative cases : Case (a) lf he withdrew Rs 8,000 in the beginning of each quarter. Case (b) If he withdrew Rs 8,000 at the end of each quarter. Case (c) If he withdrew Rs 8,000 during the middle of each quarter. |
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Answer» Calculate the interest on drawings of Mr. Bajaj at 10% p.a. for the year ended 31st March, 2016 in each of the following alternative cases : Case (a) lf he withdrew Rs 8,000 in the beginning of each quarter. Case (b) If he withdrew Rs 8,000 at the end of each quarter. Case (c) If he withdrew Rs 8,000 during the middle of each quarter. |
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| 772. |
Revenue from Operations: Cash Sales ₹ 5,00,000; Credit Sales ₹ 6,00,000; Sales Return ₹ 1,00,000. Current Assets ₹ 3,00,000; Current Liabilities ₹ 1,00,000. Calculate Working Capital Turnover Ratio. |
| Answer» Revenue from Operations: Cash Sales ₹ 5,00,000; Credit Sales ₹ 6,00,000; Sales Return ₹ 1,00,000. Current Assets ₹ 3,00,000; Current Liabilities ₹ 1,00,000. Calculate Working Capital Turnover Ratio. | |
| 773. |
Describe the purposes for which a company can use ‘Securities Premium Account’. |
| Answer» Describe the purposes for which a company can use ‘Securities Premium Account’. | |
| 774. |
The following is the Trial Balance prepared by an inexperienced accountant. Redraft it in a correct form and give necessary notes : − TRIAL BALANCE for the year ending 31st March, 2017 Particulars Amount Particulars Amount ₹ ₹ Cash in Hand 5,200 Bank Overdraft 16,400 Plant & Machinery 75,000 Capital 50,000 Typewriter 6,400 Goodwill 8,000 Stock (1-4-2016) 13,100 Sundry Creditors 8,200 Purchases 84,100 Sales 1,60,000 Carriage Inwards 2,800 Return Inwards 2,400 Carriage Outwards 1,600 Drawings 2,120 Sundry Debtors 18,300 Investments 4,000 Bills Payable 12,000 Rent Paid 9,600 Wages 16,500 Advertisement 4,500 Discount Received 3,200 2,52,300 2,51,120 |
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Answer» The following is the Trial Balance prepared by an inexperienced accountant. Redraft it in a correct form and give necessary notes : −
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| 775. |
A non-profit organisation received Rs 60,000 as a donation from new member. Out of this, 20% of the donation should be used for constructing a building. What is the amount of donation that needs to be shown in the income and expenditure account? |
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Answer» A non-profit organisation received Rs 60,000 as a donation from new member. Out of this, 20% of the donation should be used for constructing a building. What is the amount of donation that needs to be shown in the income and expenditure account? |
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| 776. |
Amal, Bimal and Kamal are three partners. On 1st April, 2018, their Capitals stood as: Amal ₹ 40,000, Bimal ₹ 30,000 and Kamal ₹ 25,000. It was decided that:(a) they would receive interest on Capital 5% p.a.,(b) Amal would get a salary of ₹ 250 per month,(c) Bimal would receive commission 4% on net profit after deducting commission, interest on capital and salary, and(d) After deducting all of these 10% of the profit should be transferred to the General Reserve.Before the above items were taken into account, net profit for the year ended 31st March, 2019 was ₹ 33,360. Prepare Profit and Loss Appropriation Account and the Capital Accounts of the Partners. |
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Answer» Amal, Bimal and Kamal are three partners. On 1st April, 2018, their Capitals stood as: Amal ₹ 40,000, Bimal ₹ 30,000 and Kamal ₹ 25,000. It was decided that: (a) they would receive interest on Capital 5% p.a., (b) Amal would get a salary of ₹ 250 per month, (c) Bimal would receive commission 4% on net profit after deducting commission, interest on capital and salary, and (d) After deducting all of these 10% of the profit should be transferred to the General Reserve. Before the above items were taken into account, net profit for the year ended 31st March, 2019 was ₹ 33,360. Prepare Profit and Loss Appropriation Account and the Capital Accounts of the Partners. |
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| 777. |
A, B and C were in partnership sharing profits and losses in the ratio of 2 : 1 : 1. They decided to dissolve the partnership. On that date of dissolution, Sundry Assets (including cash ₹ 5,000) amounted to ₹ 88,000, assets realised ₹ 80,000 (including an unrecorded asset which realised ₹ 4,000). A contingent liability on account of bills discounted ₹ 8,000 was paid by the firm. The Capital Accounts of A, B and C showed a balance of ₹ 20,000 each.Prepare Realisation Account, Partners' Capital Accounts and Cash Account. |
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Answer» A, B and C were in partnership sharing profits and losses in the ratio of 2 : 1 : 1. They decided to dissolve the partnership. On that date of dissolution, Sundry Assets (including cash ₹ 5,000) amounted to ₹ 88,000, assets realised ₹ 80,000 (including an unrecorded asset which realised ₹ 4,000). A contingent liability on account of bills discounted ₹ 8,000 was paid by the firm. The Capital Accounts of A, B and C showed a balance of ₹ 20,000 each. Prepare Realisation Account, Partners' Capital Accounts and Cash Account. |
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| 778. |
___are also called year-to-year change statements. |
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Answer» |
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| 779. |
Total Debt ₹ 60,00,000; Shareholders' Funds ₹ 10,00,000; Reserves and Surplus ₹ 2,50,000; Current Assets ₹ 25,00,000; Working Capital ₹ 5,00,000. Calculate Total Assets to Debt Ratio. |
| Answer» Total Debt ₹ 60,00,000; Shareholders' Funds ₹ 10,00,000; Reserves and Surplus ₹ 2,50,000; Current Assets ₹ 25,00,000; Working Capital ₹ 5,00,000. Calculate Total Assets to Debt Ratio. | |
| 780. |
Ashok, Babu and Chetan are in partnership sharing profit in the proportion of 1/2, 1/3, 1/6 respectively. They dissolve the partnership of the December 31, 2017, when the balance sheet of the firm as under: Balance Sheet of Ashok, Babu and Chetan as on December 31, 2017 Liabilities Amount Rs Assets Amount Rs Sundry Creditors 20,000 Bank 7,500 Bills payable 25,500 Sundry Debtors 58,000 Babu’s loan 30,000 Stock 39,500 Capital’s: Machinery 48,000 Ashok 70,000 Investment 42,000 Babu 55,000 Freehold Property 50,500 Chetan 27,000 1,52,000 Current Accounts : Ashok 10,000 Babu 5,000 Chetan 3,000 18,000 2,45,500 2,45,500 The Machinery was taken over by Babu for Rs 45,000, Ashok took over the Investment for Rs 40,000 and Freehold property was taken over by Chetan at Rs 55,000. The remaining Assets realised as follows: Sundry Debtors Rs 56,500 and Stock Rs 36,500. Sundry Creditors were settled at discount of 7%. A Office computer, not shown in the books of Accounts realised Rs 9,000. Realisation expenses amounted to Rs 3,000.Prepare Realisation Account, Partners Capital Account, Bank Account. |
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Answer»
Ashok, Babu and Chetan are in partnership sharing profit in the proportion of 1/2, 1/3, 1/6 respectively. They dissolve the partnership of the December 31, 2017, when the balance sheet of the firm as under:
The Machinery was taken over by Babu for Rs 45,000, Ashok took over the Investment for Rs 40,000 and Freehold property was taken over by Chetan at Rs 55,000. The remaining Assets realised as follows: Sundry Debtors Rs 56,500 and Stock Rs 36,500. Sundry Creditors were settled at discount of 7%. A Office computer, not shown in the books of Accounts realised Rs 9,000. Realisation expenses amounted to Rs 3,000. Prepare Realisation Account, Partners Capital Account, Bank Account.
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| 781. |
For closure of liabilities accounts, Realisation account is ______. |
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Answer» For closure of liabilities accounts, Realisation account is |
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| 782. |
Why i is it necessaryto ascertain new profit sharing ratio even for old partners when anew partner is admitted? |
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Answer» Why i is it necessary |
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| 783. |
Goodwill is to be valued at three years' purchase of four years' average profit. Profits for last four years ending on 31st March of the firm were:2016 − ₹ 12,000; 2017 − ₹ 18,000; 2018 − ₹ 16,000; 2019 − ₹ 14,000.Calculate amount of Goodwill. |
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Answer» Goodwill is to be valued at three years' purchase of four years' average profit. Profits for last four years ending on 31st March of the firm were: 2016 − ₹ 12,000; 2017 − ₹ 18,000; 2018 − ₹ 16,000; 2019 − ₹ 14,000. Calculate amount of Goodwill. |
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| 784. |
Property received as a result of the will of the deceased person is called ____ |
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Answer» Property received as a result of the will of the deceased person is called ____ |
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| 785. |
Nimani Ltd. is into the business of back office operations. Honesty and hard work are the two pillars on which the business has been built. It has a good turnover and profits. Encouraged by huge profits, it decided to give the workers bonus equal to two months salary. Following is the Comparative Statement of Profit and Loss of Nimani Ltd. for the years ended 31st March 2013 and 2014. (a) Calculate Net Profit ratio for the years ending 31st March 2013 and 2014. (b) Identify any two values which Nimani Ltd. wants to communicate to the society. ParticularsNote2012−132013−14AbsolutePercentageNo.(Rs)(Rs)ChangeChange Revenue from Operation20,00,00030,00,00010,00,00050Less: Employee Benefit expenses8,00,00010,00,0002,00,00025 Profit before Tax ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯12,00,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯20,00,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯8,00,000¯¯¯¯¯¯¯¯¯¯¯¯66.67Tax rate 40 %4,80,000––––––––––8,00,000––––––––––3,20,000––––––––––66.67–––––– Profit after Tax7,20,00012,00,0004,80,00066.67 |
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Answer» Nimani Ltd. is into the business of back office operations. Honesty and hard work are the two pillars on which the business has been built. It has a good turnover and profits. Encouraged by huge profits, it decided to give the workers bonus equal to two months salary. Following is the Comparative Statement of Profit and Loss of Nimani Ltd. for the years ended 31st March 2013 and 2014. (a) Calculate Net Profit ratio for the years ending 31st March 2013 and 2014. (b) Identify any two values which Nimani Ltd. wants to communicate to the society. ParticularsNote2012−132013−14AbsolutePercentageNo.(Rs)(Rs)ChangeChange Revenue from Operation20,00,00030,00,00010,00,00050Less: Employee Benefit expenses8,00,00010,00,0002,00,00025 Profit before Tax ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯12,00,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯20,00,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯8,00,000¯¯¯¯¯¯¯¯¯¯¯¯66.67Tax rate 40 %4,80,000––––––––––8,00,000––––––––––3,20,000––––––––––66.67–––––– Profit after Tax7,20,00012,00,0004,80,00066.67 |
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| 786. |
Mittal Cycles purchased 100 cycles from Hero Cycles, Ludhina (Punjab) ₹ 1,200 per cycle plus IGST 12%. Hero Cycles allowed 10% Trade Discount and 3% Cash Discount if payment is made within 14 days. Mittal Cycles received 10 cycles damaged during transit, which it returned. Mittal Cycles settled the payment in 10 days time.Pass Journal entries for the above transactions. |
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Answer» Mittal Cycles purchased 100 cycles from Hero Cycles, Ludhina (Punjab) ₹ 1,200 per cycle plus IGST 12%. Hero Cycles allowed 10% Trade Discount and 3% Cash Discount if payment is made within 14 days. Mittal Cycles received 10 cycles damaged during transit, which it returned. Mittal Cycles settled the payment in 10 days time. Pass Journal entries for the above transactions. |
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| 787. |
A, B and C were in partnership sharing profits in the ratio of 7 : 2 : 1 and the Balance Sheet of the firm as at 31st March, 2019 was: Liabilities Amount (₹) Assets Amount (₹) Capital A/cs: Building 20,000 A 12,410 Plant 31,220 B 8,650 Goodwill 10,000 C 80,620 1,01,680 100 Shares in X Ltd. (At cost) 2,400 Creditors 11,210 1,000 Shares in Y Ltd. (At cost) 10,000 Reserve for Depreciation on Plant 20,000 Stock 11,240 Debtors 8,740 Bank 1,210 Patents 38,080 1,32,890 1,32,890 It was agreed to dissolve the partnership as on 31st March, 2019 and the terms of dissolution were−(a) A to take over the Building at an agreed amount of ₹ 31,500.(b) B, who was to carry on the business, to take over the Goodwill, Stock and Debtors at book value, the Patents at ₹ 30,000 and Plant at ₹ 5,000. He was also to pay the Creditors.(c) C to take over shares in X Ltd. at ₹ 15 each.(d) The shares in Y Ltd. to be divided in the profit-sharing ratio.Show Ledger Accounts recording the dissolution in the books of the firm. |
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Answer» A, B and C were in partnership sharing profits in the ratio of 7 : 2 : 1 and the Balance Sheet of the firm as at 31st March, 2019 was:
It was agreed to dissolve the partnership as on 31st March, 2019 and the terms of dissolution were− (a) A to take over the Building at an agreed amount of ₹ 31,500. (b) B, who was to carry on the business, to take over the Goodwill, Stock and Debtors at book value, the Patents at ₹ 30,000 and Plant at ₹ 5,000. He was also to pay the Creditors. (c) C to take over shares in X Ltd. at ₹ 15 each. (d) The shares in Y Ltd. to be divided in the profit-sharing ratio. Show Ledger Accounts recording the dissolution in the books of the firm. |
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| 788. |
The number of shares issued, subscribed, fully paid and subscribed but not fully paid are shown in ____________ |
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Answer» The number of shares issued, subscribed, fully paid and subscribed but not fully paid are shown in ____________ |
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| 789. |
1. Comment on the important changes introduced in respect of the Long-term Capital Gains Tax (LCGT) and Dividend Distribution Tax (DDT) in the Union Budget for 2018-2019. |
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Answer» 1. Comment on the important changes introduced in respect of the Long-term Capital Gains Tax (LCGT) and Dividend Distribution Tax (DDT) in the Union Budget for 2018-2019. |
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| 790. |
Net profit ratio is calculated by ___ |
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Answer» Net profit ratio is calculated by |
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| 791. |
The average profit earned by a firm is ₹ 1,00,000 which includes undervaluation of stock of ₹ 40,000 on an average basis. The capital invested in the business is ₹ 6,30,000 and the normal tare of return is 5%. Calculate goodwill of the firm on the basis of 5 time the super profit. |
| Answer» The average profit earned by a firm is ₹ 1,00,000 which includes undervaluation of stock of ₹ 40,000 on an average basis. The capital invested in the business is ₹ 6,30,000 and the normal tare of return is 5%. Calculate goodwill of the firm on the basis of 5 time the super profit. | |
| 792. |
Which reserve can be used for distribution of dividend among shareholders when profit is insufficient? |
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Answer» Which reserve can be used for distribution of dividend among shareholders when profit is insufficient? |
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| 793. |
From the following information, prepare Trading Account for the year ended 31st March, 2018:Adjusted Purchases ₹ 6,60,000; Sales ₹ 7,44,000; Closing Stock ₹ 50,400; Freight and Carriage Inwards ₹ 3,600; Wages ₹ 6,000; Freight and Cartage Outwards ₹ 2,000. |
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Answer» From the following information, prepare Trading Account for the year ended 31st March, 2018: Adjusted Purchases ₹ 6,60,000; Sales ₹ 7,44,000; Closing Stock ₹ 50,400; Freight and Carriage Inwards ₹ 3,600; Wages ₹ 6,000; Freight and Cartage Outwards ₹ 2,000. |
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| 794. |
___of debentures refers to extinguishing or discharging the liability on account of debentures in accordance with the terms of issue. |
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Answer» |
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| 795. |
Prepare a double column cash book with the help of following information for December 2016: Rs 01 Started business with cash 1,20,000 03 Cash paid into bank 50,000 05 Purchased goods from Sushmita 20,000 06 Sold goods to Dinker and received a cheque 20,000 10 Paid to Sushmita cash 20,000 14 Cheque received on December 06, 2010 deposited into bank 18 Sold goods to Rani 12,000 20 Cartage paid in cash 500 22 Received cash from Rani 12,000 27 Commission received 5,000 30 Drew cash for personal use 2,000 |
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Answer» Prepare a double column cash book with the help of following information for December 2016:
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| 796. |
The partnership agreement between Maneesh and Girish provides that: (i) Profits will be shared equally;(ii) Maneesh will be allowed a salary of Rs 400 p.m;(iii) Girish who manages the sales department will be allowed a commission equal to 10% of the net profits, after allowing Maneesh’s salary;(iv) 7% interest will be allowed on partner’s fixed capital;(v) 5% interest will be charged on partner’s annual drawings;(vi) The fixed capitals of Maneesh and Girish are Rs 1,00,000 and Rs 80,000, respectively. Their annual drawings were Rs 16,000 and 14,000, respectively. The net profit for the year ending March 31, 2015 amounted to Rs 40,000; Prepare firm’s Profit and Loss Appropriation Account. |
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Answer» The partnership agreement between Maneesh and Girish provides that:
(i) Profits will be shared equally; (ii) Maneesh will be allowed a salary of Rs 400 p.m; (iii) Girish who manages the sales department will be allowed a commission equal to 10% of the net profits, after allowing Maneesh’s salary; (iv) 7% interest will be allowed on partner’s fixed capital; (v) 5% interest will be charged on partner’s annual drawings; (vi) The fixed capitals of Maneesh and Girish are Rs 1,00,000 and Rs 80,000, respectively. Their annual drawings were Rs 16,000 and 14,000, respectively. The net profit for the year ending March 31, 2015 amounted to Rs 40,000;
Prepare firm’s Profit and Loss Appropriation Account.
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| 797. |
One of the directors of a company is involved in insider trading transactions. Which value under financial planning is violated here? |
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Answer» One of the directors of a company is involved in insider trading transactions. Which value under financial planning is violated here? |
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| 798. |
Following is the extract of the Balance Sheet of, Neelkant and Mahdev as on March 31, 2017: Balance Sheet as at March 31, 2017 Amount Amount Liabilities Rs Assets Rs Neelkant’s Capital 10,00,000 Sundry Assets 30,00,000 Mahadev’s Capital 10,00,000 Neelkant’s Current Account 1,00,000 Mahadev’s Current Account 1,00,000 Profit and Loss Apprpriation (March 2017) 8,00,000 30,00,000 30,00,000 During the year Mahadev’s drawings were Rs 30,000. Profits during 2017 is Rs 10,00,000. Calculate interest on capital 5% p.a for the year ending March 31, 2017. |
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Answer»
Following is the extract of the Balance Sheet of, Neelkant and Mahdev as on March 31, 2017:
During the year Mahadev’s drawings were Rs 30,000. Profits during 2017 is Rs 10,00,000. Calculate interest on capital 5% p.a for the year ending March 31, 2017.
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| 799. |
In cash flow statement, the item of interest is shown in ….. |
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Answer» In cash flow statement, the item of interest is shown in ….. |
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| 800. |
Important disclosures and description about any particular item of Financial Statement is shown in ______. |
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Answer» Important disclosures and description about any particular item of Financial Statement is shown in ______. |
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