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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.
| 1301. |
Refer the data in the table below: Particulars2005−062004−05Revenue from Operations4,00,000500,000Other Income2,75,0003,50,0006,75,0008,50,000Purchase of stock in trade95,000100,000Employee Benefit Expenses2,75,0002,50,000Depreciation and Amortization65,00050,000Profit Before Tax2,40,0004,50,000 Calculate the absolute change in Purchase of stock in trade. |
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Answer» Refer the data in the table below: Particulars2005−062004−05Revenue from Operations4,00,000500,000Other Income2,75,0003,50,0006,75,0008,50,000Purchase of stock in trade95,000100,000Employee Benefit Expenses2,75,0002,50,000Depreciation and Amortization65,00050,000Profit Before Tax2,40,0004,50,000 Calculate the absolute change in Purchase of stock in trade. |
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| 1302. |
What will be the ratio of simple interest gained on a principal of ₹P and ₹0.5P, provided the rate of interest is same for both? |
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Answer» What will be the ratio of simple interest gained on a principal of ₹P and ₹0.5P, provided the rate of interest is same for both? |
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| 1303. |
74. If the numbers 8 and 12 are increased by 25% and 30/2% respectively, then what will be the average increment? |
| Answer» 74. If the numbers 8 and 12 are increased by 25% and 30/2% respectively, then what will be the average increment? | |
| 1304. |
Journalise thefollowing transactions regarding Realisation expenses:[a] Realisationexpenses amounted to Rs 2,500.[b] Realisationexpenses amounting to Rs 3,000 were paid by Ashok, one of thepartners.[c] Realisationexpenses Rs 2,300 borne by Tarun, personally.[d] Amit, a partner wasappointed to realise the assets, at a cost of Rs 4,000. The actualamount of Realisation amounted to Rs 3,000. |
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Answer» Journalise the [a] Realisation [b] Realisation [c] Realisation [d] Amit, a partner was |
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| 1305. |
Gopal Ltd. was registered with an authorised capital of ₹ 50,00,000 divided into Equity Shares of ₹ 100 each . The company offered for public subscription all the shares . Public applied for 45,000 shares and allotment was made to all the applicants. All the calls were made and were duly received except the final call of ₹ 20 per share on 500 shares.Prepare the Balance Sheet of the company showing the different types of share capital. |
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Answer» Gopal Ltd. was registered with an authorised capital of ₹ 50,00,000 divided into Equity Shares of ₹ 100 each . The company offered for public subscription all the shares . Public applied for 45,000 shares and allotment was made to all the applicants. All the calls were made and were duly received except the final call of ₹ 20 per share on 500 shares. Prepare the Balance Sheet of the company showing the different types of share capital. |
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| 1306. |
Under which main head and sub-head of Equity and Liabilities part of the Balance Sheet are the following items classified or shown: (i) Bonds; (ii) Debentures (iii) Public Deposits; (iv) Capital Redemption Reserve; (v) Forfeited Shares Account: (vi) Sundry Creditors; and (vii) Interest Accrued but Not Due on Debentures? |
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Answer» Under which main head and sub-head of Equity and Liabilities part of the Balance Sheet are the following items classified or shown:
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| 1307. |
Normal Profits = |
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Answer» Normal Profits = |
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| 1308. |
What journal entries wilt be made in the following case s when company redeems debentures at the expiry of period by serving the notice: (a) when debentures were issued at par with a condition to redeem them at premium; (b) when debentures were issued at premium with a condition to redeem that at par; and (c) when debentures were issued at discount with a condition to redeem them at premium? |
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Answer» What journal entries wilt be made in the following case s when company redeems debentures at the expiry of period by serving the notice: (a) when debentures were issued at par with a condition to redeem them at premium; (b) when debentures were issued at premium with a condition to redeem that at par; and (c) when debentures were issued at discount with a condition to redeem them at premium? |
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| 1309. |
State clearly what would constitute the operating activities for each of the follow in the following of enterprises:(i) Hotel(ii) Film production house(iii) Financial enterprise(iv) Media enterprise(v) Steel manufacturing unit(vi) Software development business unit. |
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Answer» State clearly what would constitute the operating activities for each of the follow in the following of enterprises: (i) Hotel (ii) Film production house (iii) Financial enterprise (iv) Media enterprise (v) Steel manufacturing unit (vi) Software development business unit. |
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| 1310. |
State which fo the following would result in inflow/outflow of Cash or Cash Equivalents: (i) Issue of fully paid bonus shares. (ii) Writing off bad debts against the provision for Doubtful Debts. (iii) Declaration of Final dividend. (iv) Declaration of interim dividend. (v) Cash Deposited into Bank. (vi) Cash withdrawn from Bank. (vii) Purchase fo Marketable Securities for Cash. |
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Answer» State which fo the following would result in inflow/outflow of Cash or Cash Equivalents: |
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| 1311. |
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, 2017 amounts to Rs 35,000. Shortfall if any, in the profits 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. |
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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, 2017 amounts to Rs 35,000. Shortfall if any, in the profits 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. |
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| 1312. |
Life membership fees of non-trading concerns is _____ |
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Answer» Life membership fees of non-trading concerns is _____ |
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| 1313. |
Prepare a trading and profit and loss account of M/s Green Club Ltd. for the year ending March 31, 2017. from the following figures taken from his trial balance : Account Title Amount Rs Account Title Amount Rs Opening stock 35,000 Sales 2,50,000 Purchases 1,25,000 Purchase return 6,000 Return inwards 25,000 Creditors 10,000 Postage and Telegram 600 Bills payable 20,000 Salary 12,300 Discount 1,000 Wages 3,000 Provision for bad debts 4,500 Rent and Rates 1,000 Interest received 5,400 Packing and Transport 500 Capital 75,000 General expense 400 Insurance 4,000 Debtors 50,000 Cash in hand 20,000 Cash at bank 40,000 Machinery 20,000 Lighting and Heating 5,000 Discount 3,500 Bad debts 3,500 Investment 23,100 3,71,900 3,71,900 Adjustments1. Depreciation charged on machinery 5% p.a.2. Further bad debts Rs 1,500, discount on debtors 5% and make a provision on debtors 6%.3. Wages prepaid Rs 1,000.4. Interest on investment 5% p.a.5. Closing stock 10,000. |
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Answer» Prepare a trading and profit and loss account of M/s Green Club Ltd. for the year ending March 31, 2017. from the following figures taken from his trial balance :
Adjustments 1. Depreciation charged on machinery 5% p.a. 2. Further bad debts Rs 1,500, discount on debtors 5% and make a provision on debtors 6%. 3. Wages prepaid Rs 1,000. 4. Interest on investment 5% p.a. 5. Closing stock 10,000. |
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| 1314. |
How will you deal with the following items while preparing for the Bombay Women Cricket Club its income and expenditure account for the year ending 31.3.2017 and its Balance Sheet as on 31.3.2017: Rs (a) Donation received during the year for the construction of a permanent Pavilion 12,25,000 Expenditure incurred up to 31.3.2017 on its construction 10,80,000 The total estimated expenditure on construction of Pavilion being 25,00,000 (b) Tournament Fund: Balance as on 1.4.2016 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 your answers |
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Answer» How will you deal with the following items while preparing for the Bombay Women Cricket Club its income and expenditure account for the year ending 31.3.2017 and its Balance Sheet as on 31.3.2017:
Give reasons for your answers |
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| 1315. |
Securities Premium can be demanded - |
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Answer» Securities Premium can be demanded - |
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| 1316. |
Amar andAkbar are equal partners in a firm. They admitted Anthony as a newpartner and the new profit sharing ratio is 4:3:2. Anthony could notbring this share of goodwill Rs 45,000 in cash. It is decided to doadjustment for goodwill without opening goodwill account. Pass thenecessary journal entry for the treatment of goodwill? |
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Answer» Amar and |
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| 1317. |
Why was Edla happy to see the gift left by the peddler? |
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Answer» Why was Edla happy to see the gift left by the peddler? |
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| 1318. |
Which of the following attitudes is not generally associated with successful entrepreneurship(a) Investing in R and D(b) Live your business day by day(c) Innovate and improvise continually(d) Produce as per customers' requirements |
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Answer» Which of the following attitudes is not generally associated with successful entrepreneurship (a) Investing in R and D (b) Live your business day by day (c) Innovate and improvise continually (d) Produce as per customers' requirements |
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| 1319. |
Ayub and Amit are partners in a firm and they admit Jaspal into partnership w. e. f. 1st April, 2018. They agreed to value goodwill at 3 years' purchase of Super Profit Method for which they decided to average profit of last 5 years. The profit for the last 5 years were: Year Ended Net Profit (₹) 31st March, 2014 1,50,000 31st March, 2015 1,80,000 31st March, 2016 1,00,000 ( Including abnormal loss of ₹ 1,00,000) 31st March, 2017 2,60,000 (Including abnormal gain (profit) of ₹ 40,000) 31st March, 2018 2,40,000 The firm has total assets of ₹ 20,00,000 and Outside Liabilities of ₹ 5,00,000 as on that date. Normal Rate of Return in similar business is 10%.Calculate value of goodwill. |
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Answer» Ayub and Amit are partners in a firm and they admit Jaspal into partnership w. e. f. 1st April, 2018. They agreed to value goodwill at 3 years' purchase of Super Profit Method for which they decided to average profit of last 5 years. The profit for the last 5 years were:
The firm has total assets of ₹ 20,00,000 and Outside Liabilities of ₹ 5,00,000 as on that date. Normal Rate of Return in similar business is 10%. Calculate value of goodwill. |
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| 1320. |
Calculate Current Ratio if:Inventory is Rs 6,00,000; Liquid Assets Rs 24,00,000; Quick Ratio 2:1. |
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Answer» Calculate Current Ratio if: Inventory is Rs 6,00,000; Liquid Assets Rs 24,00,000; Quick Ratio 2:1. |
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| 1321. |
what is rectilinear propagation |
| Answer» what is rectilinear propagation | |
| 1322. |
Calculate Inventory Turnover Ratio from the following: ₹ Opening Inventory 29,000 Closing Inventory 31,000 Revenue from Operations, i.e., Sales 3,20,000 Gross Profit Ratio 25% |
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Answer» Calculate Inventory Turnover Ratio from the following:
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| 1323. |
Harshad and Dhiman are in partnership since April 01, 2016. No Partnership agreement was made. They contributed Rs 4,00,000 and 1,00,000 respectively as capital. In addition, Harshad advanced an amount of Rs 1,00,000 to the firm, on October 01, 2016. Due to long illness, Harshad could not participate in business activities from August 1, to September 30, 2017. The profits for the year ended March 31, 2017 amounted to Rs 1,80,000. Dispute has arisen between Harshad and Dhiman. Harshad Claims:(i) He should be given interest 10% per annum on capital and loan;(ii) Profit should be distributed in proportion of capital; Dhiman Claims:(i) Profits should be distributed equally;(ii) He should be allowed Rs 2,000 p.m. as remuneration for the period he managed the business, in the absence of Harshad;(iii) Interest on Capital and loan should be allowed 6% p.a. You are required to settle the dispute between Harshad and Dhiman. Also prepare Profit and Loss Appropriation Account. |
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Answer» Harshad and Dhiman are in partnership since April 01, 2016. No Partnership agreement was made. They contributed Rs 4,00,000 and 1,00,000 respectively as capital. In addition, Harshad advanced an amount of Rs 1,00,000 to the firm, on October 01, 2016. Due to long illness, Harshad could not participate in business activities from August 1, to September 30, 2017. The profits for the year ended March 31, 2017 amounted to Rs 1,80,000. Dispute has arisen between Harshad and Dhiman.
Harshad Claims: (i) He should be given interest 10% per annum on capital and loan; (ii) Profit should be distributed in proportion of capital;
Dhiman Claims: (i) Profits should be distributed equally; (ii) He should be allowed Rs 2,000 p.m. as remuneration for the period he managed the business, in the absence of Harshad; (iii) Interest on Capital and loan should be allowed 6% p.a.
You are required to settle the dispute between Harshad and Dhiman. Also prepare Profit and Loss Appropriation Account.
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| 1324. |
From the following information prepare trading and profit and loss account of M/s Indian sports house for the year ending March 31, 2017. Account Title Amount Rs Account Title Amount Rs Drawings 20,000 Capital 2,00,000 Sundry debtors 80,000 Return outwards 2,000 Bad debts 1,000 Bank overdraft 12,000 Trade Expenses 2,400 Provision for bad debts 4,000 Printing and Stationery 2,000 Sundry creditors 60,000 Rent Rates and Taxes 5,000 Bills payable 15,400 Freight 4,000 Sales 2,76,000 Return inwards 7,000 Opening stock 25,000 Purchases 1,80,000 Furniture and Fixture 20,000 Plant and Machinery 1,00,000 Bills receivable 14,000 Wages 10,000 Cash in hand 6,000 Discount allowed 2,000 Investments 40,000 Motor car 51,000 5,69,400 5,69,400 Adjustments1. Closing stock was Rs 45,000.2. Provision for doubtful debts is to be maintained 2% on debtors.3. Depreciation charged on : furniture and fixture 5%, plant and Machinery 6% and motor car 10%.4. A Machine of Rs 30,000 was purchased on October 01, 2016.5. The manager is entitle to a commission of 10% of the net profit after charging such commission. |
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Answer» From the following information prepare trading and profit and loss account of M/s Indian sports house for the year ending March 31, 2017.
Adjustments 1. Closing stock was Rs 45,000. 2. Provision for doubtful debts is to be maintained 2% on debtors. 3. Depreciation charged on : furniture and fixture 5%, plant and Machinery 6% and motor car 10%. 4. A Machine of Rs 30,000 was purchased on October 01, 2016. 5. The manager is entitle to a commission of 10% of the net profit after charging such commission.
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| 1325. |
Construct index number of industrial production in the year 2018 from the following data on the basis of 2005's production: Industry Units 2005 2018 Weight Electrical and Electronics Metallurgical Mechanical Mining Textiles Miscellaneous Mill. Nos. Th. Tonnes Th. Tonnes Th. Tonnes Mill. Mtrs. Th. Tonnes 12 22 72 100 60 123 70 37 105 123 130 270 36 12 10 22 8 12 |
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Answer» Construct index number of industrial production in the year 2018 from the following data on the basis of 2005's production:
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| 1326. |
What is meant by the word ‘Company’? Describe its characteristics. |
| Answer» What is meant by the word ‘Company’? Describe its characteristics. | |
| 1327. |
Azadand Benny are equal partners. Their capitals are Rs 40,000 and Rs80,000, respectively. After the accounts for the year have beenprepared it is discovered that interest at 5% p.a. as provided in thepartnership agreement, has not been credited to the capital accountsbefore distribution of profits. It is decided to make an adjustmententry at the beginning of the next year. Record the necessary journalentry. |
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Answer» Azad |
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| 1328. |
X, Y and Z are in Partnership, sharing profits and losses in the ratio of 3 : 2 : 1, respectively. Z’s share in the profit is guaranteed by X and Y to be a minimum of Rs 8,000. The net profit for the year ended March 31, 2017 was Rs 30,000. Prepare Profit and Loss Appropriation Account, indicating the amount finally due to each partner. |
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Answer» X, Y and Z are in Partnership, sharing profits and losses in the ratio of 3 : 2 : 1, respectively. Z’s share in the profit is guaranteed by X and Y to be a minimum of Rs 8,000. The net profit for the year ended March 31, 2017 was Rs 30,000. Prepare Profit and Loss Appropriation Account, indicating the amount finally due to each partner. |
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| 1329. |
27. The population of a place increased to 54000 in 2011 at the rate of 5 % per annum . i) find the population in 2009 II) find the population in 2013. |
| Answer» 27. The population of a place increased to 54000 in 2011 at the rate of 5 % per annum . i) find the population in 2009 II) find the population in 2013. | |
| 1330. |
Net Profit before Interest and Tax ₹4,00,000; 15% Long-term Debt ₹8,00,000; Shareholders' Funds ₹4,00,000. Calculate Return on Investment. |
| Answer» Net Profit before Interest and Tax ₹4,00,000; 15% Long-term Debt ₹8,00,000; Shareholders' Funds ₹4,00,000. Calculate Return on Investment. | |
| 1331. |
Kumar, Lakshya, Manoj and Naresh are partners sharing profits in the ratio of 3 : 2 : 1 : 4. Kumar retires and his share is acquired by Lakshya and Manoj in the ratio of 3 : 2. Calculate new profit-sharing ratio and gaining ratio of the remaining partners. |
| Answer» Kumar, Lakshya, Manoj and Naresh are partners sharing profits in the ratio of 3 : 2 : 1 : 4. Kumar retires and his share is acquired by Lakshya and Manoj in the ratio of 3 : 2. Calculate new profit-sharing ratio and gaining ratio of the remaining partners. | |
| 1332. |
Do we experience things of beauty only for short moments or do they make a lasting impression on us? |
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Answer» Do we experience things of beauty only for short moments or do they make a lasting impression on us? |
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| 1333. |
Mahima Ltd.issued ₹ 38,00,000, 9% Debentures of ₹ 100 each on 1st April, 2013. The debentures were redeemable at a premium of 5% on 30th June, 2015. The company transferred an amount of ₹ 9,50,000 to Debentures Redemption Reserve on 31st March, 2015. Investments as required by law were made in fixed deposit of a bank on 1st April, 2015.Ignoring interest on fixed deposit ,pass necessary journal entries starting from 31st March, 2015 regarding redemption of debentures . |
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Answer» Mahima Ltd.issued ₹ 38,00,000, 9% Debentures of ₹ 100 each on 1st April, 2013. The debentures were redeemable at a premium of 5% on 30th June, 2015. The company transferred an amount of ₹ 9,50,000 to Debentures Redemption Reserve on 31st March, 2015. Investments as required by law were made in fixed deposit of a bank on 1st April, 2015. Ignoring interest on fixed deposit ,pass necessary journal entries starting from 31st March, 2015 regarding redemption of debentures . |
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| 1334. |
Vimal purchased goods Rs 25,000 from Kamal on Jan 15, 2016 and accepted a bill of exchange drawn upon him by Kamal payable after two months. On the date of the maturity the bill was duly presented for payment. Vimal dishonoured the bill. record the necessary journal entries in the books of Kamal and Vimal when.• The bill was retained by Kamal till the date of its maturity.• The bill was immediately discounted by Kamal with his bank 6% p.a.• The bill was endorsed by Kamal in favour of his creditor Sharad.• Five days before its maturity the bill was sent by Kamal to his bank for collection. |
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Answer» Vimal purchased goods Rs 25,000 from Kamal on Jan 15, 2016 and accepted a bill of exchange drawn upon him by Kamal payable after two months. On the date of the maturity the bill was duly presented for payment. Vimal dishonoured the bill. record the necessary journal entries in the books of Kamal and Vimal when. • The bill was retained by Kamal till the date of its maturity. • The bill was immediately discounted by Kamal with his bank 6% p.a. • The bill was endorsed by Kamal in favour of his creditor Sharad. • Five days before its maturity the bill was sent by Kamal to his bank for collection.
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| 1335. |
On 21st Sept. 2017, Radhika sold goods for ₹ 2,00,000 to Parvati and drew upon later a bill for the same amount payable after 3 months. The bill was accepted by Parvati, Radhika discounted the bill from bank at a discount of 15% p.a. on 21st Oct., 2017. On maturity, the bill was dishonoured. Parvati agreed to pay ₹ 1,20,000 in cash including ₹ 3,000 interest and accepted a new bill for 3 months. The new bill was endorsed to Gayatri in full settlement of his account ₹ 85,000. It was duly met on maturity. Pass entries in the books of Radhika. |
| Answer» On 21st Sept. 2017, Radhika sold goods for ₹ 2,00,000 to Parvati and drew upon later a bill for the same amount payable after 3 months. The bill was accepted by Parvati, Radhika discounted the bill from bank at a discount of 15% p.a. on 21st Oct., 2017. On maturity, the bill was dishonoured. Parvati agreed to pay ₹ 1,20,000 in cash including ₹ 3,000 interest and accepted a new bill for 3 months. The new bill was endorsed to Gayatri in full settlement of his account ₹ 85,000. It was duly met on maturity. Pass entries in the books of Radhika. | |
| 1336. |
Appropriations are the transactions that happen between firm and partners in the capacity of ___________ |
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Answer» Appropriations are the transactions that happen between firm and partners in the capacity of ___________ |
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| 1337. |
Effect: During the last six months the sale of four wheelers has come down in comparison to the sale of four wheelers last year for the same period. Which of the following can be the possible cause for the effect mentioned above? I. Government has increased the excise duty on the four wheelers from the beginning of this year. II. Cost of petrol has increased immensely during the last eight months. III. Interest rates on car and home loans has been increasing from last seven months. |
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Answer» Effect: During the last six months the sale of four wheelers has come down in comparison to the sale of four wheelers last year for the same period. Which of the following can be the possible cause for the effect mentioned above? I. Government has increased the excise duty on the four wheelers from the beginning of this year. II. Cost of petrol has increased immensely during the last eight months. III. Interest rates on car and home loans has been increasing from last seven months. |
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| 1338. |
Kangli, Mangli and Sanvali are partners sharing profits in the ratio of 4:3:2 . Kangli retires . Assuming Mangli and Sanvali will share profits in the future in the ratio of 5:3, determine the gaining ratio. |
| Answer» Kangli, Mangli and Sanvali are partners sharing profits in the ratio of 4:3:2 . Kangli retires . Assuming Mangli and Sanvali will share profits in the future in the ratio of 5:3, determine the gaining ratio. | |
| 1339. |
Journalise the following transactions: 2017 ₹ Jan. 1 Paid into bank for opening a Current Account 10,000 3 Goods sold for ₹ 50,000 and the amount was deposited into the bank 7 Amount withdrawn from bank 20,000 10 Goods sold for Cash 15,000 12 Amount deposited into bank 12,000 14 Goods purchased and payment made by cheque. 25,000 |
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Answer» Journalise the following transactions:
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| 1340. |
R.Ltd. offered 20,00,000, 10% Debenture of Rs 200 each at a discount of 7% redeemable at premium of 8% after 9 years. Record necessary entries in the books of R. Ltd. |
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Answer» R.Ltd. offered 20,00,000, 10% Debenture of Rs 200 each at a discount of 7% redeemable at premium of 8% after 9 years. Record necessary entries in the books of R. Ltd. |
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| 1341. |
A, B and C were partners in a firm having capitals of ₹ 50,000 ; ₹ 50,000 and ₹ 1,00,000 respectively. Their Current Account balances were A: ₹ 10,000; B: ₹ 5,000 and C: ₹ 2,000 (Dr.). According to the Partnership Deed the partners were entitled to an interest on Capital 10% p.a. C being the working partner was also entitled to a salary of ₹ 12,000 p.a. The profits were to be capitals:(a) The first ₹ 20,000 in proportion to their capitals.(b) Next ₹ 30,000 in the ratio of 5 : 3 : 2.(c) Remaining profits to be shared equally.The firm earned net profit of ₹ 1,72,000 before charging any of the above items.Prepare Profit and Loss Appropriation Account and pass necessary Journal entry for the appropriation of profits. |
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Answer» A, B and C were partners in a firm having capitals of ₹ 50,000 ; ₹ 50,000 and ₹ 1,00,000 respectively. Their Current Account balances were A: ₹ 10,000; B: ₹ 5,000 and C: ₹ 2,000 (Dr.). According to the Partnership Deed the partners were entitled to an interest on Capital 10% p.a. C being the working partner was also entitled to a salary of ₹ 12,000 p.a. The profits were to be capitals: (a) The first ₹ 20,000 in proportion to their capitals. (b) Next ₹ 30,000 in the ratio of 5 : 3 : 2. (c) Remaining profits to be shared equally. The firm earned net profit of ₹ 1,72,000 before charging any of the above items. Prepare Profit and Loss Appropriation Account and pass necessary Journal entry for the appropriation of profits. |
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| 1342. |
From the following particulars of Bharat Gas Limited, calculate Cash Flows from Investing Activities. Also, show the workings clearly preparing the ledger accounts: Balance Sheet of Bharat Gas Ltd. as on 31 Mar. 2016 and 31 Mar. 2017 Particulars Note No. Figures as the end of 2017 (Rs) Figures as at the end of reporting 2016 (Rs) II) Assets 1. Non-current Assets a) Fixed assets i) Tangible assets 1 12,40,000 10,20,000 ii) Intangible assets 2 4,60,000 3,80,000 b) Non-current investments 3 3,60,000 2,60,000 Notes 1 Tangible assets = Machinery 2 Intangible assets = Patents Notes Figures of current year Figures of previous year 1. Tangible Assets Machinery 12,40,000 10,20,000 2. Intangible Assets Goodwill 3,00,000 1,00,000 Patents 1,60,000 2,80,000 4,60,000 3,80,000 3. Non-current Investments 10% long term investments 1,60,000 60,000 Investment in land 1,00,000 1,00,000 Shares of Amartex Ltd. 1,00,000 1,00,000 3,60,000 2,60,000 Additional Information:(a) Patents were written-off to the extent of Rs. 40,000 and some Patents were sold at a profit of Rs. 20,000.(b) A Machine costing Rs. 1,40,000 (Depreciation provided thereon Rs. 60,000) was sold for Rs. 50,000. Depreciation charged during the year was Rs. 1,40,000.(c) On March 31, 2016, 10% Investments were purchased for Rs. 1,80,000 and some Investments were sold at a profit of Rs. 20,000. Interest on Investment was received on March 31, 2017.(d) Amartax Ltd. paid Dividend 10% on its shares.(e) A plot of Land had been purchased for investment purposes and let out for commercial use and rent received Rs. 30,000. |
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Answer» From the following particulars of Bharat Gas Limited, calculate Cash Flows from Investing Activities. Also, show the workings clearly preparing the ledger accounts:
Notes
(a) Patents were written-off to the extent of Rs. 40,000 and some Patents were sold at a profit of Rs. 20,000. (b) A Machine costing Rs. 1,40,000 (Depreciation provided thereon Rs. 60,000) was sold for Rs. 50,000. Depreciation charged during the year was Rs. 1,40,000. (c) On March 31, 2016, 10% Investments were purchased for Rs. 1,80,000 and some Investments were sold at a profit of Rs. 20,000. Interest on Investment was received on March 31, 2017. (d) Amartax Ltd. paid Dividend 10% on its shares. (e) A plot of Land had been purchased for investment purposes and let out for commercial use and rent received Rs. 30,000. |
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| 1343. |
Sumit purchased Amit's business on 1st April, 2018. Goodwill was decided to be valued at two years' purchase of average normal profit of last four years. The profits for the past four years were: Year Ended 31st March, 2015 31st March, 2016 31st March, 2017 31st March, 2018 Profit (₹) 80,000 1,45,,000 1,60,000 2,00,000 Books of Account revealed that:(i) Abnormal loss of ₹ 20,000 was debited to Profit and Loss Account for the year ended 31st March, 2015.(ii) A fixed asset was sold in the year ended 31st March, 2016 and gain (profit) of ₹ 25,000 was credited to Profit and Loss Account.(iii) In the year ended 31st March, 2017 assets of the firm were not insured due to oversight. Insurance premium not paid was ₹ 15,000.Calculate the value of goodwill. |
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Answer» Sumit purchased Amit's business on 1st April, 2018. Goodwill was decided to be valued at two years' purchase of average normal profit of last four years. The profits for the past four years were:
Books of Account revealed that: (i) Abnormal loss of ₹ 20,000 was debited to Profit and Loss Account for the year ended 31st March, 2015. (ii) A fixed asset was sold in the year ended 31st March, 2016 and gain (profit) of ₹ 25,000 was credited to Profit and Loss Account. (iii) In the year ended 31st March, 2017 assets of the firm were not insured due to oversight. Insurance premium not paid was ₹ 15,000. Calculate the value of goodwill. |
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| 1344. |
From the following Balance Sheet of Long and Short, calculate interst on capital 8% p.a. for the year ended 31st March, 2018. BALANCE SHEET as at 31st March, 2018 Liabilities ₹ Assets ₹ Long's Capital A/c 1,20,000 Fixed Assets 3,00,000 Short's Capital A/c 1,40,000 Other Assets 60,000 General Reserve 1,00,000 3,60,000 3,60,000 During the year, Long withdrew ₹ 40,000 and Short withdrew ₹ 50,000. Profit for the year was ₹ 1,50,000 out of which ₹ 1,00,000 was transferred to General Reserve. |
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Answer» From the following Balance Sheet of Long and Short, calculate interst on capital 8% p.a. for the year ended 31st March, 2018.
During the year, Long withdrew ₹ 40,000 and Short withdrew ₹ 50,000. Profit for the year was ₹ 1,50,000 out of which ₹ 1,00,000 was transferred to General Reserve. |
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| 1345. |
A Bank is ___________ person. |
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Answer» A Bank is ___________ person. |
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| 1346. |
On 1st May, 2016, Goodluck Ltd. issued 16,000, 9% Debentures of ₹ 100 each at a discount of 10% redeemable at a premium of 10% redeemable after five years. All the debentures were subscribed and allotment was made . Discount on issue of Debentures is to be written off over the life of the debentures.Prepare the Balance Sheet (extract) as at 31st March, 2017 showing Discount on issue of Debentures. |
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Answer» On 1st May, 2016, Goodluck Ltd. issued 16,000, 9% Debentures of ₹ 100 each at a discount of 10% redeemable at a premium of 10% redeemable after five years. All the debentures were subscribed and allotment was made . Discount on issue of Debentures is to be written off over the life of the debentures. Prepare the Balance Sheet (extract) as at 31st March, 2017 showing Discount on issue of Debentures. |
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| 1347. |
Refer the data in the table below: Particulars2005−062004−05Revenue from Operations4,00,000500,000Other Income2,75,0003,50,0006,75,0008,50,000Purchase of stock in trade95,000100,000Employee Benefit Expenses2,75,0002,50,000Depreciation and Amortization65,00050,000Profit Before Tax2,40,0004,50,000 Calculate the % change in Other Income ? |
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Answer» Refer the data in the table below: Particulars2005−062004−05Revenue from Operations4,00,000500,000Other Income2,75,0003,50,0006,75,0008,50,000Purchase of stock in trade95,000100,000Employee Benefit Expenses2,75,0002,50,000Depreciation and Amortization65,00050,000Profit Before Tax2,40,0004,50,000 Calculate the % change in Other Income ? |
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| 1348. |
Under which heads the following items are classified or shown on the Assets part of the Balance Sheet of a copany: (i) Loose Tools; (ii) Bills Receivable; (iii) Sundry Debtors: and (iv) Advances Recoverable in Cash? |
| Answer» Under which heads the following items are classified or shown on the Assets part of the Balance Sheet of a copany: (i) Loose Tools; (ii) Bills Receivable; (iii) Sundry Debtors: and (iv) Advances Recoverable in Cash? | |
| 1349. |
U.P. Sugar Works Ltd . was registered on 1st January, 2014 with an authorised capital of ₹ 15,00,000 divided into 15,000 shares of ₹ 100 each. The company issued on 1st April, 2014, 5,000 shares of ₹ 100 each at a premium of ₹ 5 per share payable ₹ 25 per share on application , ₹ 30(including premium) on allotment and the balance in two equal installments of ₹ 25 each on 1st July ad 1st October respectively .All the allotments and call moneys were paid when due , except in case of one shareholder who failed to pay the final call on 100 shares held by him . His shares were forfeited on 1st November after giving him a due notice . Show necessary entries in the books of the company to record these transactions. |
| Answer» U.P. Sugar Works Ltd . was registered on 1st January, 2014 with an authorised capital of ₹ 15,00,000 divided into 15,000 shares of ₹ 100 each. The company issued on 1st April, 2014, 5,000 shares of ₹ 100 each at a premium of ₹ 5 per share payable ₹ 25 per share on application , ₹ 30(including premium) on allotment and the balance in two equal installments of ₹ 25 each on 1st July ad 1st October respectively .All the allotments and call moneys were paid when due , except in case of one shareholder who failed to pay the final call on 100 shares held by him . His shares were forfeited on 1st November after giving him a due notice . Show necessary entries in the books of the company to record these transactions. | |
| 1350. |
Ali the Bahadur are partners in a firm sharing profits and losses as Ali 70% and Bahadur 30%. Their respective capitals as at 1st April, 2017 stand as Ali ₹ 25,000 and Bahadur ₹ 20,000. The partners are allowed interest on capitals 5% p.a. Drawings of the partners during the year ended 31st March, 2018 amounted to ₹ 3,500 and ₹ 2,500 respectively.Profit for the year, before charging interest on capital and annual salary of Bahadur ₹ 3,000, amounted to ₹ 40,000, 10% of divisible profit is to be transferred to Reserve.You are asked to show Partners' Current Account and Capital Accounts recording the above transactions. |
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Answer» Ali the Bahadur are partners in a firm sharing profits and losses as Ali 70% and Bahadur 30%. Their respective capitals as at 1st April, 2017 stand as Ali ₹ 25,000 and Bahadur ₹ 20,000. The partners are allowed interest on capitals 5% p.a. Drawings of the partners during the year ended 31st March, 2018 amounted to ₹ 3,500 and ₹ 2,500 respectively. Profit for the year, before charging interest on capital and annual salary of Bahadur ₹ 3,000, amounted to ₹ 40,000, 10% of divisible profit is to be transferred to Reserve. You are asked to show Partners' Current Account and Capital Accounts recording the above transactions. |
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