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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.
| 51. |
Sanjay, Tarun and Vineet shared profit in the ratio of 3:2:1. On December 31,2017 their balance sheet was as follows: Balance Sheet of Sanjay, Tarun and Vineet as on December 31, 2017 Liabilities Amount Rs Assets Amount Rs Capitals: Plant 90,000 Sanjay 1,00,000 Debtors 60,000 Tarun 1,00,000 Furniture 32,000 Vineet 70,000 2,70,000 Stock 60,000 Creditors 80,000 Investments 70,000 Bills payable 30,000 Bills receivable 36,000 Cash in hand 32,000 3,80,000 3,80,000 On this date the firm was dissolved. Sanjay was appointed to realise the assets. Sanjay was to receive 6% commission on the sale of assets (except cash) and was to bear all expenses of Realisation.Sanjay realised the assets as follows: Plant Rs 72,000, Debtors Rs 54,000, Furniture Rs 18,000, Stock 90% of the book value, Investments Rs 76,000 and Bills receivable Rs 31,000. Expenses of Realisation amounted to Rs 4,500.Prepare Realisation Account, Capital Accounts and Cash Account |
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Answer»
Sanjay, Tarun and Vineet shared profit in the ratio of 3:2:1. On December 31,2017 their balance sheet was as follows:
On this date the firm was dissolved. Sanjay was appointed to realise the assets. Sanjay was to receive 6% commission on the sale of assets (except cash) and was to bear all expenses of Realisation. Sanjay realised the assets as follows: Plant Rs 72,000, Debtors Rs 54,000, Furniture Rs 18,000, Stock 90% of the book value, Investments Rs 76,000 and Bills receivable Rs 31,000. Expenses of Realisation amounted to Rs 4,500. Prepare Realisation Account, Capital Accounts and Cash Account
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| 52. |
Surjit and Rahi were sharing profits (losses) in the ratio of 3:2, their Balance Sheet as on March 31, 2017 is as follows: Balance Sheet of Surjit and Rahi as on March 31, 2017 Liabilities Amount Rs Assets Amount Rs Creditors 38,000 Bank 11,500 Mrs. Surjit loan 10,000 Stock 6,000 Reserve 15,000 Debtors 19,000 Rahi’s loan 5,000 Furniture 4,000 Capital’s: Plant 28,000 Surjit 10,000 Investment 10,000 Rahi 8,000 Profit and Loss 7,500 86,000 86,000 The firm was dissolved on March 31, 2017 on the following terms:1. Surjit agreed to take the investments at Rs 8,000 and to pay Mrs. Surjit’s loan.2. Other assets were realised as follows: Stock Rs 5,000 Debtors Rs 18,500 Furniture Rs 4,500 Plant Rs 25,000 3. Expenses on Realisation amounted to Rs 1,600.4. Creditors agreed to accept Rs 37,000 as a final settlement.You are required to prepare Realisation Account, Partners’ Capital Account and Bank Account. |
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Answer»
Surjit and Rahi were sharing profits (losses) in the ratio of 3:2, their Balance Sheet as on March 31, 2017 is as follows:
The firm was dissolved on March 31, 2017 on the following terms: 1. Surjit agreed to take the investments at Rs 8,000 and to pay Mrs. Surjit’s loan. 2. Other assets were realised as follows:
3. Expenses on Realisation amounted to Rs 1,600. 4. Creditors agreed to accept Rs 37,000 as a final settlement. You are required to prepare Realisation Account, Partners’ Capital Account and Bank Account.
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| 53. |
Develop an Accounting Equation from the following transactions: ₹ (i) Mohan commenced business with cash 50,000 (ii) Purchased goods for cash 30,000 (iii) Purchased goods on credit 20,000 (iv) Sold goods (costing ₹ 10,000) for 12,000 (v) Bought furniture on credit 2,000 (vi) (vii) Paid cash to a creditor Salary paid 15,000 1,000 |
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Answer» Develop an Accounting Equation from the following transactions:
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| 54. |
Rita, Geeta and Ashish were partners in a firm sharing profits/losses in the ratio of 3:2:1. On March 31, 2017 their balance sheet was as follows: Liabilities Amount Rs Assets Amount Rs Capitals: Cash 22,500 Rita 80,000 Debtors 52,300 Geeta 50,000 Stock 36,000 Ashish 30,000 1,60,000 Investments 69,000 Creditors 65,000 Plant 91,200 Bills payable 26,000 General reserve 20,000 2,71,000 2,71,000 On the date of above mentioned date the firm was dissolved:1. Rita was appointed to realise the assets. Rita was to receive 5% commission on the rate of assets (except cash) and was to bear all expenses of Realisation,2. Assets were realised as follows: Rs Debtors 30,000 Stock 26,000 Plant 42,750 3. Investments were realised at 85% of the book value,4. Expenses of Realisation amounted to Rs 4,100,5. Firm had to pay Rs 7,200 for outstanding salary not provided for earlier,6. Contingent liability in respect of bills discounted with the bank was also materialised and paid off Rs 9,800,Prepare Realisation Account, Capital Accounts of Partners’ and Cash Account. |
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Answer»
Rita, Geeta and Ashish were partners in a firm sharing profits/losses in the ratio of 3:2:1. On March 31, 2017 their balance sheet was as follows:
On the date of above mentioned date the firm was dissolved: 1. Rita was appointed to realise the assets. Rita was to receive 5% commission on the rate of assets (except cash) and was to bear all expenses of Realisation, 2. Assets were realised as follows:
3. Investments were realised at 85% of the book value, 4. Expenses of Realisation amounted to Rs 4,100, 5. Firm had to pay Rs 7,200 for outstanding salary not provided for earlier, 6. Contingent liability in respect of bills discounted with the bank was also materialised and paid off Rs 9,800, Prepare Realisation Account, Capital Accounts of Partners’ and Cash Account.
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| 55. |
What is the amount of Interest on drawings for Ram at 10% p.a. for the year ended 31st March 2018, if he withdrew Rs 6,000 at the end of each quarter. |
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Answer» What is the amount of Interest on drawings for Ram at 10% p.a. for the year ended 31st March 2018, if he withdrew Rs 6,000 at the end of each quarter. |
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| 56. |
Following are the Ledger Balances of Sri Paul on 31st March, 2018: ₹ ₹ Sundry Debtors (Dr.) 79,300 Interest on Loan 10,000 Sundry Creditors (Cr.) 1,36,500 Conveyance 200 Rent (Cr.) 6,300 Furniture 30,000 Miscellaneous Expenses 3,200 Commission 4,000 Plant and Machinery (Dr.) 7,98,750 Plant and Machinery (Cr.) 90,000 Creditors and Furniture 30,000 Sundry Debtors (Cr.) 20,800 Opening Stock 40,000 Drawings 15,000 Discount (Cr.) 9,900 Salaries and Wages 25,900 Sundry Creditors (Dr.) 36,500 Discount (Dr.) 5,500 Buildings (Dr.) 9,81,000 Capital 5,00,000 Rent 12,000 Purchases 3,13,450 Loan (Cr.) 10,00,000 Sales 5,61,300 Input IGST A/c 2,500 Input SGST A/c 1,000 Input CGST A/c 1,000 Output IGST A/c 4,500 You are required to prepare Trial Balance as on 31st March, 2018. |
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Answer» Following are the Ledger Balances of Sri Paul on 31st March, 2018:
You are required to prepare Trial Balance as on 31st March, 2018. |
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| 57. |
The following transactions took place in M/s . Goodluck Computers. Prepare the Accounting Vouchers: 2018 ₹ Jan. 1 Bought Computer Mouse (4 Nos.) vide Cash Memo No.338* 6,000 Jan. 8 Wages paid for the month of December, 2016 10,000 Jan. 12 Purchased two Desktop Computers from M/s. Computech for cash vide Cash Memo No. 170* 32,500 Jan. 25 Paid cash to Hari & Sons vide receipt No. 102 for repairs* 1,000 Jan. 28 Paid postage 200 Jan. 30 Cash withdrawn from bank 10,000 Transactions marked with * are subject to levy of CGST and SGST 6% each. |
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Answer» The following transactions took place in M/s . Goodluck Computers. Prepare the Accounting Vouchers:
Transactions marked with * are subject to levy of CGST and SGST 6% each. |
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| 58. |
The total of the % column of assets side in the common size balance sheet comes out to ___ |
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Answer» The total of the % column of assets side in the common size balance sheet comes out to |
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| 59. |
Arushi Computers Ltd issued 10,000 equity shares of Rs 100 each at 10% discount. The net amount payable as follows: On applicationRs 20On allotmentRs 30 (Rs 40 – discount Rs 10 )On first callRs 30On final callRs 10 A shareholder holding 200 shares did not pay final call. His shares were forfeited. Out of these 150 shares were reissued to Ms. Sonia at Rs 75 per shares. Give Journal entries in the books of the company. |
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Answer» Arushi Computers Ltd issued 10,000 equity shares of Rs 100 each at 10% discount. The net amount payable as follows:
A shareholder holding 200 shares did not pay final call. His shares were forfeited. Out of these 150 shares were reissued to Ms. Sonia at Rs 75 per shares.
Give Journal entries in the books of the company.
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| 60. |
A and B were partners in a firm sharing profits and losses equally. Their firm was dissolve on 15th March, 2014, which resulted in a loss of Rs. 30,000. On that date the capital account of A showed a credit balance of Rs. 20,000 and that of B a credit balance of Rs. 30,000. The cash account had a balance of Rs. 20,000. You are required to pass the necessary journal entries for the: (i) Transfer of loss to the capital accounts of the partners and (ii) Making final payment to the partners. |
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Answer» A and B were partners in a firm sharing profits and losses equally. Their firm was dissolve on 15th March, 2014, which resulted in a loss of Rs. 30,000. On that date the capital account of A showed a credit balance of Rs. 20,000 and that of B a credit balance of Rs. 30,000. The cash account had a balance of Rs. 20,000. |
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| 61. |
What is the definition of Equilibrium ? |
| Answer» What is the definition of Equilibrium ? | |
| 62. |
Hari, Ravi and Kavi were partners in afirm sharing profits and losses in the ratio of 3:2:1. They admitted Guru as a new partner for 1/7th share in the profits. The new profit sharing ratio will be 2:2:2:1, respectively. Guru brought Rs. 3,00,000 for his capital and Rs. 45,000 for his share of goodwill. Pass necessary Journal entries in the books of the firm. |
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Answer» Hari, Ravi and Kavi were partners in afirm sharing profits and losses in the ratio of 3:2:1. They admitted Guru as a new partner for 1/7th share in the profits. The new profit sharing ratio will be 2:2:2:1, respectively. Guru brought Rs. 3,00,000 for his capital and Rs. 45,000 for his share of goodwill. Pass necessary Journal entries in the books of the firm. |
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| 63. |
Under which heads the following items are shown in the Balance Sheet of a company: (i) Calls-in-Arrears; (ii) Commission Received in Advance; (iii) Debentures; (iv) Stores and Spare Parts; (v) Land and Building; (vi) Forfeited Shares Account? |
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Answer» Under which heads the following items are shown in the Balance Sheet of a company:
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| 64. |
George and Henry are partners sharing profits in the ratio of 3 : 2. They decided to admit David as a new partner and to share future profits and losses equally. David brings in Rs 50,000 as his capital. Goodwill of the firm is valued at Rs 60,000. Record the necessary journal entries : (a) When no goodwill appears in the books (b) When goodwill appears at Rs 50,000, and (c) When goodwill appears at Rs 1,00,000. |
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Answer» George and Henry are partners sharing profits in the ratio of 3 : 2. They decided to admit David as a new partner and to share future profits and losses equally. David brings in Rs 50,000 as his capital. Goodwill of the firm is valued at Rs 60,000. Record the necessary journal entries : (a) When no goodwill appears in the books (b) When goodwill appears at Rs 50,000, and (c) When goodwill appears at Rs 1,00,000. |
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| 65. |
Club is an example of _______. |
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Answer» Club is an example of _______. |
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| 66. |
Name the major headings under which the equity & liabilities side of a Company's Balance Sheet is organised and presented. |
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Answer» Name the major headings under which the equity & liabilities side of a Company's Balance Sheet is organised and presented. |
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| 67. |
Ritesh and Hitesh are childhood friends. Ritesh is a consultant whereas Hitesh is an architect. They contributed equal amounts and purchased a building for Rs 2 crores. After a year, they sold it for Rs 3 crores and shared the profits equally. Are they doing the business in partnership ? Give reason in support of your answer. |
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Answer» Ritesh and Hitesh are childhood friends. Ritesh is a consultant whereas Hitesh is an architect. They contributed equal amounts and purchased a building for Rs 2 crores. After a year, they sold it for Rs 3 crores and shared the profits equally. Are they doing the business in partnership ? Give reason in support of your answer. |
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| 68. |
A, B and C are partners sharing profits in the ratio of 5 : 3 : 2. Their Balance Sheet as on 31st March, 2018 is given below: Liabilities ₹ Assets ₹ Capital A/cs: Building 18,00,000 A 11,00,000 Investments 4,00,000 B 11,40,000 Stock 6,00,000 C 7,60,000 30,00,000 Debtors 10,00,000 Workmen Compensation Reserve 10,00,000 Cash and Bank 6,00,000 Creditors 2,00,000 Employees' Provident Fund 2,00,000 44,00,000 44,00,000 C retires on 30th June, 2018 and it was mutually agreed that:(a) Building be valued at ₹ 22,00,000.(b) Investments to be valued at ₹ 3,00,000.(c) Stock be taken at ₹ 8,00,000.(d) Goodwill of the firm be valued at two years' purchase of the average profit of the past five years.(e) C's share of profits up to the date of retirement be calculated on the basis of average profit of the preceding three years.The profits of the preceding five years were as under: Year 2013-14 2014-15 2015-16 2016-17 2017-18 Profits (₹) 4,00,000 5,00,000 6,00,000 8,00,000 7,00,000 (f) Amount payable to C to be transferred to his Loan Account carrying interest 10% p.a.Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet as at 30th June, 2018. |
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Answer» A, B and C are partners sharing profits in the ratio of 5 : 3 : 2. Their Balance Sheet as on 31st March, 2018 is given below:
C retires on 30th June, 2018 and it was mutually agreed that: (a) Building be valued at ₹ 22,00,000. (b) Investments to be valued at ₹ 3,00,000. (c) Stock be taken at ₹ 8,00,000. (d) Goodwill of the firm be valued at two years' purchase of the average profit of the past five years. (e) C's share of profits up to the date of retirement be calculated on the basis of average profit of the preceding three years. The profits of the preceding five years were as under:
(f) Amount payable to C to be transferred to his Loan Account carrying interest 10% p.a. Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet as at 30th June, 2018. |
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| 69. |
X, Y and Z are partners sharing profits and losses in the ratio of 3 : 2 : 1 . The Balance Sheet of the firm as at 31st March, 2018 stood as follows: Liabilities Amount (₹) Assets Amount (₹) Creditors 21,000 Cash at Bank 5,750 Workmen's Compensation Reserve 12,000 Debtors 40,000 Investments Fluctuation Reserve 6,000 Less: Provision for D. Debts 2,000 38,000 Capital A/cs: Stock 30,000 X 68,000 Investments ( Market Value ₹ 17,600) 15,000 Y 32,000 Patents 80,000 Z 21,000 1,21,000 Machinery 50,000 Advertisement Expenditure 5,250 Goodwill 6,000 1,60,000 1,60,000 Z retired on the above date on the following terms:(a) Goodwill of the firm is to be valued at ₹ 34,800.(b) Value of Patents is to be reduced by 20% and that of machinery to 90%.(c) Provision for Doubtful Debts is to be created 6% on debtors.(d) Z took over the investment at market value .(e) Liability for Workmen Compensation to the extent of ₹ 750 is to be created .(f) A liability of ₹ 4,000 included in creditors is not to be paid .(g) Amount due to Z to be settled on the following basis: ₹ 5,067 to be paid immediately , 50% of the balance within one year and the balance by a Bill of Exchange ( without interest ) at 3 Months.Give necessary journal entries for the treatment of goodwill , prepare Revaluation Account , Capital Accounts and the Balance Sheet of the new firm. |
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Answer» X, Y and Z are partners sharing profits and losses in the ratio of 3 : 2 : 1 . The Balance Sheet of the firm as at 31st March, 2018 stood as follows:
Z retired on the above date on the following terms: (a) Goodwill of the firm is to be valued at ₹ 34,800. (b) Value of Patents is to be reduced by 20% and that of machinery to 90%. (c) Provision for Doubtful Debts is to be created 6% on debtors. (d) Z took over the investment at market value . (e) Liability for Workmen Compensation to the extent of ₹ 750 is to be created . (f) A liability of ₹ 4,000 included in creditors is not to be paid . (g) Amount due to Z to be settled on the following basis: ₹ 5,067 to be paid immediately , 50% of the balance within one year and the balance by a Bill of Exchange ( without interest ) at 3 Months. Give necessary journal entries for the treatment of goodwill , prepare Revaluation Account , Capital Accounts and the Balance Sheet of the new firm. |
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| 70. |
Which of the following, in the banking sector, measures the ability of a company to meet its short term debt obligations? |
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Answer» Which of the following, in the banking sector, measures the ability of a company to meet its short term debt obligations? |
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| 71. |
The portion of long term debts / lease obligations, which is due for payments within twelve months of the reporting date is required to be classified under ______ |
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Answer» The portion of long term debts / lease obligations, which is due for payments within twelve months of the reporting date is required to be classified under ______ |
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| 72. |
Which of the following is incorrect about the statement of cash flows? |
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Answer» Which of the following is incorrect about the statement of cash flows? |
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| 73. |
A and B are partners sharing profits and losses in the ratio of 3 : 1. On 1st April, 2017, their capitals were: A ₹ 50,000 and B ₹ 30,000. During the year ended 31st March, 2018 they earned a net profit of ₹ 50,000. The terms of partnership are:(a) Interest on capital is to allowed 6% p.a.(b) A will get a commission 2% on turnover.(c) B will get a salary of ₹ 500 per month.(d) B will get commission of 5% on profits after deduction of all expenses including such commission.Partners' drawings for the year were: A ₹ 8,000 and B ₹ 6,000. Turnover for the year was ₹ 3,00,000. After considering the above facts, you are required to prepare Profit and Loss Appropriation Account and Partners' Capital Accounts. |
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Answer» A and B are partners sharing profits and losses in the ratio of 3 : 1. On 1st April, 2017, their capitals were: A ₹ 50,000 and B ₹ 30,000. During the year ended 31st March, 2018 they earned a net profit of ₹ 50,000. The terms of partnership are: (a) Interest on capital is to allowed 6% p.a. (b) A will get a commission 2% on turnover. (c) B will get a salary of ₹ 500 per month. (d) B will get commission of 5% on profits after deduction of all expenses including such commission. Partners' drawings for the year were: A ₹ 8,000 and B ₹ 6,000. Turnover for the year was ₹ 3,00,000. After considering the above facts, you are required to prepare Profit and Loss Appropriation Account and Partners' Capital Accounts. |
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| 74. |
Name the major heads under which the following items will be presented in the Balance Sheet of a company as per Schedule III of the Companies Act, 2013: (i) Loose Tool. (ii) Unpaid Dividend. (iii) Copyrights and Patents. (iv) Land and Building. |
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Answer» Name the major heads under which the following items will be presented in the Balance Sheet of a company as per Schedule III of the Companies Act, 2013:
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| 75. |
Total Assets ₹22,00,000; Fixed Assets ₹10,00,000; Capital Employed ₹20,00,000. There were no Long-term Investments.Calculate Current Ratio. |
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Answer» Total Assets ₹22,00,000; Fixed Assets ₹10,00,000; Capital Employed ₹20,00,000. There were no Long-term Investments. Calculate Current Ratio. |
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| 76. |
Which of the following statement is true? Statement A: Financial statements are prepared on the basis of accounting principles. Statement B: Any changes in the accounting principles or method will affect the utility of the financial statements. |
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Answer» Which of the following statement is true? Statement A: Financial statements are prepared on the basis of accounting principles. Statement B: Any changes in the accounting principles or method will affect the utility of the financial statements. |
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| 77. |
In a school function Rs 360 remained after spending 82% of the money. How much money was there in the beginning? Verify your answer. |
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Answer» In a school function Rs 360 remained after spending 82% of the money. How much money was there in the beginning? Verify your answer. |
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| 78. |
What is meant by 'Issue of debentures at discount and redeemable at premium'? |
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Answer» What is meant by 'Issue of debentures at discount and redeemable at premium'? |
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| 79. |
A financial statement to show what a business owns and owes at a particular point in time - |
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Answer» A financial statement to show what a business owns and owes at a particular point in time - |
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| 80. |
A,B and C enter into a partnership by investing Rs 28000, Rs 32000 and Rs 18000. A is working partner and gets a fourth of the profit for his services and the remaining profit is divided amongst the three in the ratio of their investments. What is the amount of profit that B gets if A gets a total of Rs 4845? |
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Answer» A,B and C enter into a partnership by investing Rs 28000, Rs 32000 and Rs 18000. A is working partner and gets a fourth of the profit for his services and the remaining profit is divided amongst the three in the ratio of their investments. What is the amount of profit that B gets if A gets a total of Rs 4845? |
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| 81. |
Explain the process of preparing income statement and balance sheet. |
| Answer» Explain the process of preparing income statement and balance sheet. | |
| 82. |
Working Capital ₹ 1,80,000; Total Debts ₹ 3,90,000; Long-Term Debts ₹ 3,00,000.Calculate Current Ratio. |
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Answer» Working Capital ₹ 1,80,000; Total Debts ₹ 3,90,000; Long-Term Debts ₹ 3,00,000. Calculate Current Ratio. |
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| 83. |
From the following calculate:(a) Current Ratio; and (b) Working Capital Turnover Ratio. ₹ (i) Revenue from Operations 1,50,000 (ii) Total Assets 1,00,000 (iii) Shareholders' Funds 60,000 (iv) Non-current Liabilities 20,000 (v) Non-current Assets 50,000 |
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Answer» From the following calculate: (a) Current Ratio; and
(b) Working Capital Turnover Ratio.
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| 84. |
The analysis and interpretations of the financial statement will reveal ________________. |
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Answer» The analysis and interpretations of the financial statement will reveal ________________. |
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| 85. |
Companies with a higher growth potential are likely to(a) pay lower dividends(b) pay higher dividends(c) dividends are not affected(d) none of the above |
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Answer» Companies with a higher growth potential are likely to (a) pay lower dividends (b) pay higher dividends (c) dividends are not affected (d) none of the above |
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| 86. |
Before changing the profit sharing ratio, the old partners should share all the past profits and losses in the ____________ |
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Answer» Before changing the profit sharing ratio, the old partners should share all the past profits and losses in the ____________ |
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| 87. |
R, S and M are partners sharing profits in the ratio of 2/5, 2/5 and 1/5. M decides to retire from the business and his share is taken by R and S in the ratio of 1 : 2. Calculate the new profit-sharing ratio. |
| Answer» R, S and M are partners sharing profits in the ratio of 2/5, 2/5 and 1/5. M decides to retire from the business and his share is taken by R and S in the ratio of 1 : 2. Calculate the new profit-sharing ratio. | |
| 88. |
3313 expressed as an improper fraction is ___ |
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Answer» 3313 expressed as an improper fraction is ___ |
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| 89. |
Pass journal entries to rectify the following errors. (i) Credit purchase of goods of Rs. 3,000 from Viraj & Co. was not recorded in the books although the goods were taken into stock. (ii) Credit sale of goods to Harish amounting to Rs. 10,000 was posted to the account of Haneef. (iii) Acquisition charges on the purchase of a new building amounting of Rs. 10,000 were debited to the sundry expenses account. (iv) Outstanding telephone charges of Rs. 6,000 had been completely omitted. (v) Material from store Rs. 15,000 and wages Rs. 6,000 had been used in making tools and implements for use in own factory, but no adjustments were made in the books. |
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Answer» Pass journal entries to rectify the following errors. (i) Credit purchase of goods of Rs. 3,000 from Viraj & Co. was not recorded in the books although the goods were taken into stock. (ii) Credit sale of goods to Harish amounting to Rs. 10,000 was posted to the account of Haneef. (iii) Acquisition charges on the purchase of a new building amounting of Rs. 10,000 were debited to the sundry expenses account. (iv) Outstanding telephone charges of Rs. 6,000 had been completely omitted. (v) Material from store Rs. 15,000 and wages Rs. 6,000 had been used in making tools and implements for use in own factory, but no adjustments were made in the books. |
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| 90. |
A dealer supplied Walky-Talky set of Rs 84,000 (with GST) to police control room. Rate of GST is 12%. Find the amount of state and central GST charged by the dealer. Also find the taxable value of the set. |
| Answer» A dealer supplied Walky-Talky set of Rs 84,000 (with GST) to police control room. Rate of GST is 12%. Find the amount of state and central GST charged by the dealer. Also find the taxable value of the set. | |
| 91. |
The ultimate aim of any business is to ______________ |
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Answer» The ultimate aim of any business is to ______________ |
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| 92. |
The Receipt and Payment Account of Harimohan charitable institution is given: Receipt and Payment Account for the year ending March 31, 2015 Receipts Amount Rs Payments Amount Rs Balance b/d: Furniture 3,000 Cash at Bank 22,000 Investments 55,000 Cash in Hand 8,800 Advance for building 20,000 Donations 32,000 Charities 60,000 Subscriptions 50,200 Salaries 10,400 Endowment Fund 60,000 Rent and Taxes 4,000 Legacies 24,000 Printing 1,000 Interest on Investment 3,800 Postage 300 Interest on Deposits 800 Advertisements 1,100 Sale of old newspapers 500 Insurance 4,800 Balance c/d: Cash at Bank 32,000 Cash in Hand 10,500 2,02,100 2,02,100 Prepare the Income and Expenditure Account for the Year ended on March 31, 2015 after considering the following: (i) It was decided to treat Fifty per cent of the amount received on account of Legacies and Donations as income. (ii) Liabilities to be provided for are: Rent Rs 800; Salaries Rs 1,200; advertisement Rs 200. (iii) Rs 2,000 due for interest on investment was not actually received. |
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Answer» The Receipt and Payment Account of Harimohan charitable institution is given:
Prepare the Income and Expenditure Account for the Year ended on March 31, 2015 after considering the following:
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| 93. |
Prepare a format of cash flow from operating activities under indirect method. |
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Answer» Prepare a format of cash flow from operating activities under indirect method. |
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| 94. |
The profit for the five years ending on 31st March, are as follows:Year 2014–₹ 4,00,000 Year 2015–₹ 3,98,000; Year 2016–₹ 4,50,000; Year 2017–₹ 4,45,000; Year 2018–₹ 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» The profit for the five years ending on 31st March, are as follows: Year 2014–₹ 4,00,000 Year 2015–₹ 3,98,000; Year 2016–₹ 4,50,000; Year 2017–₹ 4,45,000; Year 2018–₹ 5,00,000. Calculate goodwill of the firm on the basis of 4 years' purchase of 5 years' average profit. |
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| 95. |
Define revenues and expenses? |
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Answer» Define revenues and expenses? |
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| 96. |
A firm earns Rs. 1,00,000 as its annual profit, the normal rate of profit being 5 %. Assets of the firm are Rs. 15,00,000 excluding goodwill and liabilities are Rs. 5,00,000 .The value of goodwill by capitalisation method will be: |
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Answer» A firm earns Rs. 1,00,000 as its annual profit, the normal rate of profit being 5 %. Assets of the firm are Rs. 15,00,000 excluding goodwill and liabilities are Rs. 5,00,000 .The value of goodwill by capitalisation method will be: |
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| 97. |
How will you deal withthe following items while preparing for the Bombay Women Cricket Clubits income and expenditure account for the year ending 31.3.2007 andits Balance Sheet as on 31.3.2007: Rs (a) Donation received during the year for the construction of a permanent Pavilion 12,25,000 Expenditure incurred up to 31.3.2007 on its construction 10,80,000 The total estimated expenditure on construction of Pavilion being 25,00,000 (b) Tournament Fund: Balance as on 1.4.2006 10,700 Subscriptions for tournament received during the year 65,800 Expenditure incurred during the year on conducting tournaments 72,400 (c) Life Membership fee received during the year 28,000 Give reasons for youranswers |
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Answer» How will you deal with
Give reasons for your |
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| 98. |
On Jan. 01, 2006 Arun sold goods for Rs 30,000 to Sunil. 50% of the payment was made immediately by Sunil on which Arun allowed a cash discount of 2%. For the balance Sunil drew a promissory note in favour of Arun payable after 20 days. Since, the date of maturity of bill was a public holiday, Arun presented the bill on a day, as per the provisions of Negotiable Instrument Act which was met by Sunil. State the date on which the bill was presented by Arun for payment and Jounalise the above transactions in the books of Arun and Sunil. |
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Answer» On Jan. 01, 2006 Arun sold goods for Rs 30,000 to Sunil. 50% of the payment was made immediately by Sunil on which Arun allowed a cash discount of 2%. For the balance Sunil drew a promissory note in favour of Arun payable after 20 days. Since, the date of maturity of bill was a public holiday, Arun presented the bill on a day, as per the provisions of Negotiable Instrument Act which was met by Sunil. State the date on which the bill was presented by Arun for payment and Jounalise the above transactions in the books of Arun and Sunil.
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| 99. |
All partners wishes to dissolve the firm. Yuastin, a partner wants that her loan of Rs. 2,00,000 must be paid off before the payments of capitals to the partners. But, Amart, another partner wants that the capitals must be paid before the payments of Yastin's loan. You are required to settle the conflict giving reasons. |
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Answer» All partners wishes to dissolve the firm. Yuastin, a partner wants that her loan of Rs. 2,00,000 must be paid off before the payments of capitals to the partners. But, Amart, another partner wants that the capitals must be paid before the payments of Yastin's loan. You are required to settle the conflict giving reasons. |
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| 100. |
New Company Ltd. has a nominal capital of ₹ 2,50,000 in shares of ₹ 10. Of these, 4,000 shares were issued as fully paid in payment of building purchased , 8,000 shares were subscribed by the public and during the first year ₹ 5 per share were called-up, payable ₹ 2 on application , ₹ 1 on allotment, ₹ 1 on first call and ₹ 1 on second call . The amounts received in respect of these shares were: On 6,000 shares Full amount called, On 1,250 shares ₹ 4 per share, On 500 shares ₹ 3 per share, On 250 shares ₹ 2 per share. The Directors forfeited the 750 shares on which less than ₹ 4 had been paid . The shares were subsequently reissued at ₹ 3 per share .Pass journal entries recording the above transactions and prepare the company's Balance Sheet. |
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Answer» New Company Ltd. has a nominal capital of ₹ 2,50,000 in shares of ₹ 10. Of these, 4,000 shares were issued as fully paid in payment of building purchased , 8,000 shares were subscribed by the public and during the first year ₹ 5 per share were called-up, payable ₹ 2 on application , ₹ 1 on allotment, ₹ 1 on first call and ₹ 1 on second call . The amounts received in respect of these shares were:
The Directors forfeited the 750 shares on which less than ₹ 4 had been paid . The shares were subsequently reissued at ₹ 3 per share . Pass journal entries recording the above transactions and prepare the company's Balance Sheet. |
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