InterviewSolution
Saved Bookmarks
InterviewSolution
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.
| 1151. |
When debentures are issued at discount & redeemed at par, the debentures account is credited with___ |
|
Answer» When debentures are issued at discount & redeemed at par, the debentures account is credited with |
|
| 1152. |
A and B are partners in a firm sharing profits equally. They had advanced tot he firm a sum of ₹ 30,000 as a loan in their profit-sharing ratio on 1st October, 2017. The Partnership Deed is silent on the question of interest on the loan from partners. Compute the interest payable by the firm to the partners, assuming the firm closes its books on 31st March each year. |
| Answer» A and B are partners in a firm sharing profits equally. They had advanced tot he firm a sum of ₹ 30,000 as a loan in their profit-sharing ratio on 1st October, 2017. The Partnership Deed is silent on the question of interest on the loan from partners. Compute the interest payable by the firm to the partners, assuming the firm closes its books on 31st March each year. | |
| 1153. |
Kumar Ltd purchase assets of Rs. 6,30,000 from Bhanu Oil Ltd. Kumar Ltd issued equity share of Rs. 100 each fully paid in consideration. What journal entries will be made, if the share are issued, (i) at par, (ii) at premium of 20%. |
| Answer» Kumar Ltd purchase assets of Rs. 6,30,000 from Bhanu Oil Ltd. Kumar Ltd issued equity share of Rs. 100 each fully paid in consideration. What journal entries will be made, if the share are issued, (i) at par, (ii) at premium of 20%. | |
| 1154. |
A Ltd. company with registered capital of ₹ 5,00,000 in shares of ₹ 10 each issued 20,000 of such shares payable ₹ 2 on application , ₹ 4 on allotment , ₹ 2 on final call . All the money payable on allotment was duly received but on the first call being made, one shareholder paid the entire balance on his holding of 300 shares and five shareholders with a total holding of 1,000 shares failed to pay their dues on the first call. These shares were forfeited for non-payment of first call money . Final call was made and all the money due was received . Later on, forfeited shares were reissued ₹ 6 per share as fully paid-up.Record the above in the company's journal and prepare the Balance Sheet. |
|
Answer» A Ltd. company with registered capital of ₹ 5,00,000 in shares of ₹ 10 each issued 20,000 of such shares payable ₹ 2 on application , ₹ 4 on allotment , ₹ 2 on final call . All the money payable on allotment was duly received but on the first call being made, one shareholder paid the entire balance on his holding of 300 shares and five shareholders with a total holding of 1,000 shares failed to pay their dues on the first call. These shares were forfeited for non-payment of first call money . Final call was made and all the money due was received . Later on, forfeited shares were reissued ₹ 6 per share as fully paid-up. Record the above in the company's journal and prepare the Balance Sheet. |
|
| 1155. |
A, B and C are partners in a firm sharing profits in the ratio of 3 : 2 : 1. They earned a profit of ₹ 30,000 during 2017-18. Distribute profit among A, B and C if:(a) C's share of profit is guaranteed to be ₹ 6,000 Minimum.(b) Minimum profit payable to C amounting to ₹ 6,000 is guaranteed by A.(c) Guaranteed minimum profit of ₹ 6,000 payable to C is guaranteed by B.(d) Any deficiency after making payment of guaranteed ₹ 6,000 will be borne by A and B in the ratio of 3 : 1. |
|
Answer» A, B and C are partners in a firm sharing profits in the ratio of 3 : 2 : 1. They earned a profit of ₹ 30,000 during 2017-18. Distribute profit among A, B and C if: (a) C's share of profit is guaranteed to be ₹ 6,000 Minimum. (b) Minimum profit payable to C amounting to ₹ 6,000 is guaranteed by A. (c) Guaranteed minimum profit of ₹ 6,000 payable to C is guaranteed by B. (d) Any deficiency after making payment of guaranteed ₹ 6,000 will be borne by A and B in the ratio of 3 : 1. |
|
| 1156. |
State the importance of Financial Analysis? |
|
Answer» State the importance of Financial Analysis? |
|
| 1157. |
A’s weight is 20% more than B, whose weight is 25% more than C. By what percentage is A’s weight greater than that of C? |
|
Answer» A’s weight is 20% more than B, whose weight is 25% more than C. By what percentage is A’s weight greater than that of C? |
|
| 1158. |
Pawell Corporation, a sizeable diversified manufacturer of aircraft components, is trying to determine the initial investment required to replace an old machine with a new, more sophisticated model. The present machine is working correctly, but in order to upgrade it with new technology, they purchased a new machine for Rs. 5 crore and an additional Rs. 5 lakhs will be required to install it. After the depreciation, the value of the machine becomes zero, but the owner is not ready to analyse the situation. Finally, the firm has found that a buyer is willing to pay Rs. 2 crores for the present machine and the firm refused it. (i) Find out which decision is taken by the manager and also suggest whether the decision was favourable or not. (ii) Which values are overlooked by the entrepreneur in the above case? |
|
Answer» Pawell Corporation, a sizeable diversified manufacturer of aircraft components, is trying to determine the initial investment required to replace an old machine with a new, more sophisticated model. The present machine is working correctly, but in order to upgrade it with new technology, they purchased a new machine for Rs. 5 crore and an additional Rs. 5 lakhs will be required to install it. After the depreciation, the value of the machine becomes zero, but the owner is not ready to analyse the situation. Finally, the firm has found that a buyer is willing to pay Rs. 2 crores for the present machine and the firm refused it. |
|
| 1159. |
Mitali, Indu and Geeta are partners sharing profits and losses in the ratio of 3 : 2 : 1 respectively. It was decided that Indu is to retire from the firm. On this date, a machine having a book value of Rs 60,000 is revalued at Rs 90,000. Which of the following is correct in this regards? |
|
Answer» Mitali, Indu and Geeta are partners sharing profits and losses in the ratio of 3 : 2 : 1 respectively. It was decided that Indu is to retire from the firm. On this date, a machine having a book value of Rs 60,000 is revalued at Rs 90,000. Which of the following is correct in this regards? |
|
| 1160. |
Explain the guidelines of SEBI for creating Debenture Redemption Reserve. |
|
Answer» Explain the guidelines of SEBI for creating Debenture Redemption Reserve. |
|
| 1161. |
Average profit earned by a firm is ₹ 7,50,000 which includes overvaluation of stock of ₹ 30,000 on an average basis. The capital invested in the business is ₹ 42,00,000 and the normal tare of return is 15%. Calculate goodwill of the firm on the basis of 3 time the super profit. |
| Answer» Average profit earned by a firm is ₹ 7,50,000 which includes overvaluation of stock of ₹ 30,000 on an average basis. The capital invested in the business is ₹ 42,00,000 and the normal tare of return is 15%. Calculate goodwill of the firm on the basis of 3 time the super profit. | |
| 1162. |
X and Y share profits in the ratio of 5 : 3. Their Balance Sheet as at 31st March, 2019 was: Liabilities Amount (₹) Assets Amount (₹) Creditors 15,000 Cash at Bank 5,000 Employees' Provident Fund 10,000 Sundry Debtors 20,000 Workmen Compensation Reserve 5,800 Less: Provision for Doubtful Debts 600 19,400 Capital A/cs: Stock 25,000 X 70,000 Fixed Assets 80,000 Y 31,000 1,01,000 Profit and Loss A/c 2,400 1,31,800 1,31,800 They admit Z into partnership with 1/8th share in profits on 1st April, 2019. Z brings ₹ 20,000 as his capital and ₹ 12,000 for goodwill in cash. Z acquires his share from X. Following revaluations are also made:(a) Employees' Provident Fund liability is to be increased by ₹ 5,000.(b) All Debtors are good.(c) Stock includes ₹ 3,000 for obsolete items.(d) Creditors are to be paid ₹ 1,000 more.(e) Fixed Assets are to be revalued at ₹ 70,000. Prepare Journal entries, necessary accounts and new Balance Sheet. Also, calculate new profit-sharing ratio. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Answer» X and Y share profits in the ratio of 5 : 3. Their Balance Sheet as at 31st March, 2019 was:
They admit Z into partnership with 1/8th share in profits on 1st April, 2019. Z brings ₹ 20,000 as his capital and ₹ 12,000 for goodwill in cash. Z acquires his share from X. Following revaluations are also made: (a) Employees' Provident Fund liability is to be increased by ₹ 5,000. (b) All Debtors are good. (c) Stock includes ₹ 3,000 for obsolete items. (d) Creditors are to be paid ₹ 1,000 more. (e) Fixed Assets are to be revalued at ₹ 70,000. Prepare Journal entries, necessary accounts and new Balance Sheet. Also, calculate new profit-sharing ratio. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1163. |
X and Y are partners sharing profits and losses in the ratio of 3 : 2. They admit Z into partnership for 1/4th share in goodwill. Z brings in his share of goodwill in cash. Goodwill for this purpose is to be calculated at two years' purchase of the average normal profit of past three years. Profits of the last three years ended 31st March, were:2016 – Profit ₹ 50,000 (including profit on sale of assets ₹5,000).2017 – Loss ₹ 20,000 (includes loss by fire ₹ 30,000)2018 – Profit ₹ 70,000 (including insurance claim received ₹ 18,000 and interest on investments and Dividend received ₹ 8,000).Calculate value of goodwill. Also, calculate goodwill brought in by Z. |
|
Answer» X and Y are partners sharing profits and losses in the ratio of 3 : 2. They admit Z into partnership for 1/4th share in goodwill. Z brings in his share of goodwill in cash. Goodwill for this purpose is to be calculated at two years' purchase of the average normal profit of past three years. Profits of the last three years ended 31st March, were: 2016 – Profit ₹ 50,000 (including profit on sale of assets ₹5,000). 2017 – Loss ₹ 20,000 (includes loss by fire ₹ 30,000) 2018 – Profit ₹ 70,000 (including insurance claim received ₹ 18,000 and interest on investments and Dividend received ₹ 8,000). Calculate value of goodwill. Also, calculate goodwill brought in by Z. |
|
| 1164. |
X Ltd . issued a prospectus inviting applications for 50,000 Equity Shares of ₹ 10 each, payable ₹ 5 as per application (including ₹ 2 as premium), ₹ 4 as per allotment and the balance towards first and final call.Applications were received for 65,000 shares. Application money received on 5,000 shares was refunded with letter of regret and allotments were made on pro rata basis to the applicants of 60,000 shares. Money overpaid on applications including premium was adjusted on account of sums due on allotment.Mr Sharma to whom 700 shares were allotted failed to pay the allotment money and his shares were forfeited by the Directors on his subsequently failure to pay the call money.All the forfeited shares were subsequently sold to Mr.Jain credited as fully paid-up for ₹ 9 per share .You are required to set out the journal entries and the relevant entries in the Cash Book. |
|
Answer» X Ltd . issued a prospectus inviting applications for 50,000 Equity Shares of ₹ 10 each, payable ₹ 5 as per application (including ₹ 2 as premium), ₹ 4 as per allotment and the balance towards first and final call. Applications were received for 65,000 shares. Application money received on 5,000 shares was refunded with letter of regret and allotments were made on pro rata basis to the applicants of 60,000 shares. Money overpaid on applications including premium was adjusted on account of sums due on allotment. Mr Sharma to whom 700 shares were allotted failed to pay the allotment money and his shares were forfeited by the Directors on his subsequently failure to pay the call money. All the forfeited shares were subsequently sold to Mr.Jain credited as fully paid-up for ₹ 9 per share . You are required to set out the journal entries and the relevant entries in the Cash Book. |
|
| 1165. |
Can we redeem debentures at premium? |
|
Answer» Can we redeem debentures at premium? |
|
| 1166. |
X, Y and Z are partners sharing profits in the ratio of 5 : 3 : 2 . Y retires on 1st April , 2018 from the firm , on which date capitals of X, Y and Z after all adjustments are ₹ 1,03,680 , ₹ 87,840 and ₹ 26,880 respectively. The Cash and Bank Balance on that date was ₹ 9,600. Y is to be paid through amount brought in by X and Z in such a way as to make their capitals proportionate to their new profit-sharing ratio which will be X 3/5 and Z 2/5. Calculate the amount to be paid or to be brought in by the continuing partners assuming that a minimum Cash and Bank Balance of ₹ 7,200 was to be maintained and pass the necessary journal entries . |
| Answer» X, Y and Z are partners sharing profits in the ratio of 5 : 3 : 2 . Y retires on 1st April , 2018 from the firm , on which date capitals of X, Y and Z after all adjustments are ₹ 1,03,680 , ₹ 87,840 and ₹ 26,880 respectively. The Cash and Bank Balance on that date was ₹ 9,600. Y is to be paid through amount brought in by X and Z in such a way as to make their capitals proportionate to their new profit-sharing ratio which will be X 3/5 and Z 2/5. Calculate the amount to be paid or to be brought in by the continuing partners assuming that a minimum Cash and Bank Balance of ₹ 7,200 was to be maintained and pass the necessary journal entries . | |
| 1167. |
Sunflower and Pink Rose Started Partnership business on April 01, 2006 with capitals of Rs 2,50,000 and Rs 1,50,000 respectivley. On October 01, 2006, they decided that their capitals should be Rs 2,00,000 each. The necessary adjustments in the capitals are made by introducing or withdrawing cash. Interest on capital is to be allowed 10% pa. Calculate interest on capital as on March 31, 2007. |
|
Answer» Sunflower and Pink Rose Started Partnership business on April 01, 2006 with capitals of Rs 2,50,000 and Rs 1,50,000 respectivley. On October 01, 2006, they decided that their capitals should be Rs 2,00,000 each. The necessary adjustments in the capitals are made by introducing or withdrawing cash. Interest on capital is to be allowed 10% pa. Calculate interest on capital as on March 31, 2007. |
|
| 1168. |
A, B and C are partners sharing profits in the ratio of 3 : 2 : 1. B retired and the new profit-sharing ratio between A and C was 2 : 1. On B's retirement, the goodwill of the firm was valued at ₹ 90,000. Pass necessary Journal entry for the treatment of goodwill on B's retirement. |
| Answer» A, B and C are partners sharing profits in the ratio of 3 : 2 : 1. B retired and the new profit-sharing ratio between A and C was 2 : 1. On B's retirement, the goodwill of the firm was valued at ₹ 90,000. Pass necessary Journal entry for the treatment of goodwill on B's retirement. | |
| 1169. |
What will be the operating profit ratio, if operating ratio is 88.94%? |
|
Answer» What will be the operating profit ratio, if operating ratio is 88.94%? |
|
| 1170. |
On 1st April, 2016, following were the balances of Blue Bird Ltd.: 10% Debentures (redeemable on 30th September, 2017) ₹ 15,00,000 Debentures Redemption Reserve ₹ 2,00,000 The company met the requirements of the Companies Act, 2013 regarding Debentures Redemption Reserve and Investment and redeemed the debentures.Pass necessary Journal entries for the above transactions in the books of the company. |
||||
|
Answer» On 1st April, 2016, following were the balances of Blue Bird Ltd.:
The company met the requirements of the Companies Act, 2013 regarding Debentures Redemption Reserve and Investment and redeemed the debentures. Pass necessary Journal entries for the above transactions in the books of the company. |
|||||
| 1171. |
Radha, Mary and Fatima are partners sharing profits in the ratio of 5:4:1. Fatima is given a guarantee that her share of profit, in any year will not be less than Rs 5,000. The profits for the year ending March 31, 2006 amounts to Rs 35, 000. Shortfall if any, in the profit guaranteed to Fatima is to be borne by Radha and Mary in the ratio of 3:2. Record necessary journal entry to show distribution of profit among partner. |
|
Answer» Radha, Mary and Fatima are partners sharing profits in the ratio of 5:4:1. Fatima is given a guarantee that her share of profit, in any year will not be less than Rs 5,000. The profits for the year ending March 31, 2006 amounts to Rs 35, 000. Shortfall if any, in the profit guaranteed to Fatima is to be borne by Radha and Mary in the ratio of 3:2. Record necessary journal entry to show distribution of profit among partner. |
|
| 1172. |
If a partner takes over an asset, such Partner’s Capital Account is __________________. |
|
Answer» If a partner takes over an asset, such Partner’s Capital Account is |
|
| 1173. |
Murli, Naveen and Omprakash are partners sharing profits in the ratio of 3/8, 1/2 and 1/8. Murli retires and surrenders 2/3rd of his share in favour of Naveen and remaining share in favour of Omprakash. Calculate new profit-sharing ratio and gaining ratio of the remaining partners. |
| Answer» Murli, Naveen and Omprakash are partners sharing profits in the ratio of 3/8, 1/2 and 1/8. Murli retires and surrenders 2/3rd of his share in favour of Naveen and remaining share in favour of Omprakash. Calculate new profit-sharing ratio and gaining ratio of the remaining partners. | |
| 1174. |
X, Y and Z carrying on business as merchants and sharing profits and losses in the ratio of 2 : 2 : 1, dissolved their firm as at 31st March, 2019 on which date their Balance Sheet was as follows: Liabilities Amount (₹) Assets Amount (₹) Sundry Creditors 41,500 Cash at Bank 22,500 Bills Payable 20,000 Stock 80,000 Bank Loan 40,000 Debtors 50,000 General Reserve 50,000 Less: Provision for Doubtful Debts 2,500 47,500 Investments Fluctuation Reserve 40,000 Investments 55,000 Capital A/cs: Premises 1,51,500 X 75,000 Y 75,000 Z 15,000 1,65,000 3,56,500 3,56,500 A bill for ₹ 5,000 received from Mohan discounted from bank is not met on maturity.The assets except Cash at Bank and Investments were sold to a company which paid ₹ 3,25,000 in cash.The Investments were sold and ₹ 56,500 were received. Mohan proved insolvent and a dividend of 50% was received from his estate. Sundry Creditors (including Bills Payable) were paid ₹ 57,500 in full settlement. Realisation Expenses amounted to ₹ 15,000.Prepare Realisation Account, Partners' Capital Accounts and Bank Account. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Answer» X, Y and Z carrying on business as merchants and sharing profits and losses in the ratio of 2 : 2 : 1, dissolved their firm as at 31st March, 2019 on which date their Balance Sheet was as follows:
A bill for ₹ 5,000 received from Mohan discounted from bank is not met on maturity. The assets except Cash at Bank and Investments were sold to a company which paid ₹ 3,25,000 in cash.The Investments were sold and ₹ 56,500 were received. Mohan proved insolvent and a dividend of 50% was received from his estate. Sundry Creditors (including Bills Payable) were paid ₹ 57,500 in full settlement. Realisation Expenses amounted to ₹ 15,000. Prepare Realisation Account, Partners' Capital Accounts and Bank Account. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1175. |
Please give brief explanation on function theorems |
|
Answer» Please give brief explanation on function theorems |
|
| 1176. |
A and B are partners sharing profits in the ratio of 3:2. They decided to admit C and decided to share profits equally. In this case, who is sacrifing the share of profits? |
|
Answer» A and B are partners sharing profits in the ratio of 3:2. They decided to admit C and decided to share profits equally. In this case, who is sacrifing the share of profits? |
|
| 1177. |
Bright Ltd. took over the assets of ₹ 6,60,000 and liabilities of ₹ 80,000 of Star Ltd. for an agreed purchase consideration of ₹ 6,00,000 payable 10% in cash and the balance by the issue of 12% Debentures of ₹ 100 each. Give necessary Journal entries in the books of Bright Ltd., assuming that:Case (a): The debentures are issued at par.Case (b): The debentures are issued at 20% premium.Case (c): The debentures are issued at 10% discount. |
|
Answer» Bright Ltd. took over the assets of ₹ 6,60,000 and liabilities of ₹ 80,000 of Star Ltd. for an agreed purchase consideration of ₹ 6,00,000 payable 10% in cash and the balance by the issue of 12% Debentures of ₹ 100 each. Give necessary Journal entries in the books of Bright Ltd., assuming that: Case (a): The debentures are issued at par. Case (b): The debentures are issued at 20% premium. Case (c): The debentures are issued at 10% discount. |
|
| 1178. |
X and Y are partners in a firm sharing profits and losses in the ratio of 3 : 2. Z is admitted as partner with 1/4 share in profit. Z acquires his share from X and Y in the ratio of 2 : 1. Calculate new profit-sharing ratio. |
| Answer» X and Y are partners in a firm sharing profits and losses in the ratio of 3 : 2. Z is admitted as partner with 1/4 share in profit. Z acquires his share from X and Y in the ratio of 2 : 1. Calculate new profit-sharing ratio. | |
| 1179. |
Safety Locks Ltd, issued to public 2,500 12% Debentures of 100 each at 10% premium redeemable at par. What amount shall be repaid to debentureholders? |
|
Answer» Safety Locks Ltd, issued to public 2,500 12% Debentures of 100 each at 10% premium redeemable at par. What amount shall be repaid to debentureholders? |
|
| 1180. |
On 1st April, 2015, a Company bought Plant and Machinery costing ₹ 68,000. It is estimated that its working life is 10 years, at the end of which it will fetch ₹ 8,000. Additions are made on 1st April, 2016 to the value of ₹ 40,000 (Residual value ₹ 4,000). More additions are made on Oct. 1, 2017 to the value of ₹ 9,800 (Break up value ₹ 800). The working life of both the additional Plant and machinery is 20 years.Show the Plant and Machinery account for the first four years, if depreciation is written off according to Straight Line Method. The accounts are closed on 31st March every year. |
|
Answer» On 1st April, 2015, a Company bought Plant and Machinery costing ₹ 68,000. It is estimated that its working life is 10 years, at the end of which it will fetch ₹ 8,000. Additions are made on 1st April, 2016 to the value of ₹ 40,000 (Residual value ₹ 4,000). More additions are made on Oct. 1, 2017 to the value of ₹ 9,800 (Break up value ₹ 800). The working life of both the additional Plant and machinery is 20 years. Show the Plant and Machinery account for the first four years, if depreciation is written off according to Straight Line Method. The accounts are closed on 31st March every year. |
|
| 1181. |
X and Y are partners sharing profits and losses equally. Their Balance Sheet as on 31st March, 2018 is given below: Liabilities ₹ Assets ₹ Capital A/cs: Land and Building 1,50,000 X 1,50,000 Plant and Machinery 1,00,000 Y 1,00,000 2,50,000 Furniture and Fittings 25,000 Current A/cs: Stock 75,000 X 40,000 Debtors 75,000 Y 30,000 70,000 Less: 5% Reserve for D. Debts 5,000 70,000 Creditors 1,30,000 Bill Receivalbe 30,000 Bill Payable 50,000 Bank 50,000 5,00,000 5,00,000 Z is admitted as a new partner for 1/4th share under the following terms :(a) Z is to introduce ₹ 1,25,000 as capital .(b) Goodwill of the firm was valued at nil.(c) It is found that the creditors included a sum of ₹ 7,500 which was not to be paid . But it was also found that there was a liability for compensation to Workmen amounting to ₹ 10,000. (d) Provision for Doubtful Debts is to be created 10% on debtors.(e) In regard to the Partners' Capital Accounts present fixed capital method is to be converted into fluctuating capital method .(f) Bills of ₹ 20,000 accepted from creditors were not recorded in the books.(g) X provides ₹ 50,000 loan to the business carrying interest 10% p.a. You are required to prepare Revaluation Account , Partners' Capital Accounts, Bank Account and the Balance Sheet of the new firm. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Answer» X and Y are partners sharing profits and losses equally. Their Balance Sheet as on 31st March, 2018 is given below:
Z is admitted as a new partner for 1/4th share under the following terms : (a) Z is to introduce ₹ 1,25,000 as capital . (b) Goodwill of the firm was valued at nil. (c) It is found that the creditors included a sum of ₹ 7,500 which was not to be paid . But it was also found that there was a liability for compensation to Workmen amounting to ₹ 10,000. (d) Provision for Doubtful Debts is to be created 10% on debtors. (e) In regard to the Partners' Capital Accounts present fixed capital method is to be converted into fluctuating capital method . (f) Bills of ₹ 20,000 accepted from creditors were not recorded in the books. (g) X provides ₹ 50,000 loan to the business carrying interest 10% p.a. You are required to prepare Revaluation Account , Partners' Capital Accounts, Bank Account and the Balance Sheet of the new firm. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1182. |
Describe the provisions of law relating to ‘Calls-in-Arrears’ and ‘Calls-in-Advance’. |
| Answer» Describe the provisions of law relating to ‘Calls-in-Arrears’ and ‘Calls-in-Advance’. | |
| 1183. |
Subscription income for the year is shown on ______ side of income and expenditure account |
|
Answer» Subscription income for the year is shown on ______ side of income and expenditure account |
|
| 1184. |
X, Y and Z entered into partnership on 1st October, 2017 to share profits and losses in the ratio of 4 : 3 : 3. X, personally guaranteed that Z's share of profit after charging interest on capital 10% p.a. would not be less then ₹ 80,000 in any year. The capital contributions were: X–₹ 3,00,000, Y–₹ 2,00,000 and Z–₹ 1,50,000.The profit for the year ended 31st March, 2018 amounted to ₹ 1,60,000. Prepare Profit and Loss Appropriation Account. |
|
Answer» X, Y and Z entered into partnership on 1st October, 2017 to share profits and losses in the ratio of 4 : 3 : 3. X, personally guaranteed that Z's share of profit after charging interest on capital 10% p.a. would not be less then ₹ 80,000 in any year. The capital contributions were: X–₹ 3,00,000, Y–₹ 2,00,000 and Z–₹ 1,50,000. The profit for the year ended 31st March, 2018 amounted to ₹ 1,60,000. Prepare Profit and Loss Appropriation Account. |
|
| 1185. |
Prepare Common-size Balance Sheet and comment on the financial position of Sun Ltd. and Star Ltd. The Balance Sheet of Sun Ltd. and Star Ltd. as at 31st March, 2019 are: Particulars Sun Ltd. (₹) Star Ltd. (₹) I. EQUITY AND LIABILITIES 1. Shareholders' Funds (a) Share Capital 9,00,000 12,00,000 (b) Reserves and Surplus 4,00,000 3,50,000 2. Current Liabilities Trade Payables (Creditors) 2,00,000 2,50,000 Total 15,00,000 18,00,000 II. ASSETS 1. Non-Current Assets Fixed Assets (Tangible) 10,00,000 16,00,000 2. Current Assets Trade Receivables (Debtors) 5,00,000 2,00,000 Total 15,00,000 18,00,000 |
|||||||||||||||||||||||||||||||||||||||||||||
|
Answer» Prepare Common-size Balance Sheet and comment on the financial position of Sun Ltd. and Star Ltd. The Balance Sheet of Sun Ltd. and Star Ltd. as at 31st March, 2019 are:
|
||||||||||||||||||||||||||||||||||||||||||||||
| 1186. |
XYZ Ltd . issued a prospectus inviting applications for 2,000 shares of ₹ 10 each at a premium of ₹ 4 per share , payable as: On application — ₹ 6 (including ₹ 1 premium) On allotment — ₹ 2 (including ₹ 1 premium) On first call — ₹ 3 (including ₹ 1 premium) On second and final call — ₹ 3 (including ₹ 1 premium) Applications were received for 3,000 shares and pro rata allotment was made on the applications for 2,400 shares. It was decided to utilise excess application money towards the amount due on allotment .X, to whom 40 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call , his shares were forfeited.Y, who applied for 72 shares failed to pay the two calls and on his such failure , his shares were forfeited. Of the shares forfeited , 80 shares were sold to Z credited as fully paid-up for ₹ 9 per share , the whole of Y's shares being included . Prepare Journal , Cash Book and the Balance Sheet . |
||||||||||||
Answer» XYZ Ltd . issued a prospectus inviting applications for 2,000 shares of ₹ 10 each at a premium of ₹ 4 per share , payable as:
Applications were received for 3,000 shares and pro rata allotment was made on the applications for 2,400 shares. It was decided to utilise excess application money towards the amount due on allotment . X, to whom 40 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call , his shares were forfeited. Y, who applied for 72 shares failed to pay the two calls and on his such failure , his shares were forfeited. Of the shares forfeited , 80 shares were sold to Z credited as fully paid-up for ₹ 9 per share , the whole of Y's shares being included . Prepare Journal , Cash Book and the Balance Sheet . |
|||||||||||||
| 1187. |
₹ 1,75,000 is the Credit Revenue from Operations, i.e., Net Credit Sales of an enterprise. If Trade Receivables Turnover Ratio is 8 times, calculate Trade Receivables in the Beginning and at the end of the year. Trade Receivables at the end is ₹ 7,000 more than that in the beginning. |
| Answer» ₹ 1,75,000 is the Credit Revenue from Operations, i.e., Net Credit Sales of an enterprise. If Trade Receivables Turnover Ratio is 8 times, calculate Trade Receivables in the Beginning and at the end of the year. Trade Receivables at the end is ₹ 7,000 more than that in the beginning. | |
| 1188. |
Amisha Ltd inviting application for 40,000 shares of 100 each at a premium of Rs. 20 per share payable on application; Rs. 40 on allotment; Rs. 40 (Including Premium) on first call Rs. 25 and, second and final call Rs. 15. Application were received for 50,000 shares and allotment was made on pro-rata basis. Excess money on application was adjusted on sums due on allotment. Rohit to whom 600 shares were allotted failed to pay the allotment money and his shares were forfeited after allotment. Ashmita, who applied for 1,000 shares failed to pay the two calls and his shares were forfeited after the second call. Of the shares forfeited, 1,200 shares were sold to Kapil for Rs. 85 per share as fully paid, the whole of Rohit's shares being included. Record necessary journal entries. |
|
Answer» Amisha Ltd inviting application for 40,000 shares of 100 each at a premium of Rs. 20 per share payable on application; Rs. 40 on allotment; Rs. 40 (Including Premium) on first call Rs. 25 and, second and final call Rs. 15. Application were received for 50,000 shares and allotment was made on pro-rata basis. Excess money on application was adjusted on sums due on allotment. Rohit to whom 600 shares were allotted failed to pay the allotment money and his shares were forfeited after allotment. Ashmita, who applied for 1,000 shares failed to pay the two calls and his shares were forfeited after the second call. Of the shares forfeited, 1,200 shares were sold to Kapil for Rs. 85 per share as fully paid, the whole of Rohit's shares being included. Record necessary journal entries. |
|
| 1189. |
Following is the Balance Sheet of Raj Oil Mills Limited as at March 31, 2017. Calculate Current Ratio. Particulars (Rs) I. Equity and Liabilities: 1. Shareholders’ funds a) Share capital 7,90,000 b) Reserves and surplus 35,000 2. Current Liabilities a) Trade Payables 72,000 Total 8,97,000 II. Assets 1. Non-current Assets a) Fixed assets Tangible assets 7,53,000 2. Current Assets a) Inventories 55,800 b) Trade Receivables 28,800 c) Cash and cash equivalents 59,400 Total 8,97,000 |
||||||||||||||||||||||||||||||||||||
|
Answer» Following is the Balance Sheet of Raj Oil Mills Limited as at March 31, 2017. Calculate Current Ratio.
|
|||||||||||||||||||||||||||||||||||||
| 1190. |
Any decrease in the value of the liabilities will be _____ to the revaluation account |
|
Answer» Any decrease in the value of the liabilities will be _____ to the revaluation account |
|
| 1191. |
Which account is to be credited while investing 15% of the Reserve amount? |
|
Answer» Which account is to be credited while investing 15% of the Reserve amount? |
|
| 1192. |
Find the principalvalue of |
|
Answer» Find the principal |
|
| 1193. |
Anubhaand Kajal are partners of a firm sharing profits and losses in theratio of 2:1. Their capital, were Rs 90,000 and Rs 60,000. The profitduring the year were Rs 45,000. According to partnership deed, bothpartners are allowed salary, Rs 700 per month to Anubha and Rs 500per month to Kajal. Interest allowed on capital 5% p.a. Thedrawings at the end of the period were Rs 8,500 for Anubha and Rs6,500 for Kajal. Interest is to be charged 5% p.a. on drawings.Prepare partners capital accounts, assuming that the capital accountare fluctuating. |
|
Answer» Anubha |
|
| 1194. |
Under which major head and sub-head of the Assets part of the Balance Sheet will the following be shown:(i) Intangible Assets; (ii) Intangible Assets under Development; (iii) Investments (more than 12 months); (iv) Deferred Tax Assets (Net); (v) Stores and Spares; and (vi) Loose Tools? |
|
Answer» Under which major head and sub-head of the Assets part of the Balance Sheet will the following be shown: (i) Intangible Assets; (ii) Intangible Assets under Development; (iii) Investments (more than 12 months); (iv) Deferred Tax Assets (Net); (v) Stores and Spares; and (vi) Loose Tools? |
|
| 1195. |
A, B and C were partners in a firm sharing profits in 3:3:2 ratio.They admitted D as a new partner for 4/7 profit. D acquired his share2/7 from A. 1/7 from B and 1/7 from C. Calculate new profit sharingratio? |
|
Answer»
|
|
| 1196. |
Pass journal entries in the following cases:M Ltd forfeited 200 Equity Shares of ₹10 each , issued at a premium of ₹ 5 per share , held by Ram for non-payment of the final call of ₹ 3 per share . Of these , 100 shares were reissued to Vishu at a discount of ₹ 4 per share . |
|
Answer» Pass journal entries in the following cases: M Ltd forfeited 200 Equity Shares of ₹10 each , issued at a premium of ₹ 5 per share , held by Ram for non-payment of the final call of ₹ 3 per share . Of these , 100 shares were reissued to Vishu at a discount of ₹ 4 per share . |
|
| 1197. |
Show the treatment of items of Income and Expenditure Account when there is a specific fund for those items. |
|
Answer» Show the treatment of items of Income and Expenditure Account when there is a specific fund for those items. |
|
| 1198. |
From the following balances of Anand, prepare Trading Account, Profit and Loss Account and Balance Sheet as at 31st March, 2018: ₹ ₹ Credit Balances: Debit Balances (Contd.): Capital 3,60,000 Postage 2,730 Creditors 87,200 Bad Debts 2,870 Bills Payable 25,270 Interest 12,950 Sales 7,81,820 Insurance 4,170 Bad Debts Recovered 1,750 Machinery 1,00,000 Loan 1,20,000 Stock (Opening) 99,450 Debit Balances: Purchases 6,20,920 Debtors 38,850 Wages 43,000 Salaries 40,000 Building 2,37,800 Discount 10,000 Selling Expenses 1,750 Fixtures and Fittings 1,61,550 Value of goods on hand (31st March, 2018) was ₹ 1,43,000. |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Answer» From the following balances of Anand, prepare Trading Account, Profit and Loss Account and Balance Sheet as at 31st March, 2018:
Value of goods on hand (31st March, 2018) was ₹ 1,43,000. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1199. |
Explain the basis of classifying goods into intermediate and final goods. Give suitable examples. |
|
Answer» Explain the basis of classifying goods into intermediate and final goods. Give suitable examples. |
|
| 1200. |
Jai and Raj are partners sharing profits in the ratio of 3 : 2 . With effect from 1st April, 2018, they decided to share profits equally. Goodwill appeared in the books at ₹ 25,000 . As on 1st April, 2018, it was valued at ₹ 1,00,000 . They decided to carry goodwill in the books of the firm.Pass the journal entry giving effect to the above. |
|
Answer» Jai and Raj are partners sharing profits in the ratio of 3 : 2 . With effect from 1st April, 2018, they decided to share profits equally. Goodwill appeared in the books at ₹ 25,000 . As on 1st April, 2018, it was valued at ₹ 1,00,000 . They decided to carry goodwill in the books of the firm. Pass the journal entry giving effect to the above. |
|
