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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.
| 101. |
A Ltd purchased for canellation Rs 50,000 of its 15% debentures at Rs 98. The expenses of purchase amounted to Rs 50. |
| Answer» A Ltd purchased for canellation Rs 50,000 of its 15% debentures at Rs 98. The expenses of purchase amounted to Rs 50. | |
| 102. |
Due to inefficient management and negligence of the Board of Directors, ABC Ltd. is sustaining huge losses but Board of Directors has paid dividends out of the share capital to hide these inefficiencies and to uphold the goodwill. But the Board of Directors has decided to pay very less dividend out of profits earned without giving any satisfactory' reason for this decision. (i) What will be the immediate or short-run effects of ABC Ltd.'s decision? (ii) Explain how or whether it will be beneficial for the company legally or otherwise? |
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Answer» Due to inefficient management and negligence of the Board of Directors, ABC Ltd. is sustaining huge losses but Board of Directors has paid dividends out of the share capital to hide these inefficiencies and to uphold the goodwill. But the Board of Directors has decided to pay very less dividend out of profits earned without giving any satisfactory' reason for this decision. (i) What will be the immediate or short-run effects of ABC Ltd.'s decision? (ii) Explain how or whether it will be beneficial for the company legally or otherwise? |
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| 103. |
When some amount is paid in cash & balance is agreed to be paid in installments, then the balance is transferred to …………. |
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Answer» When some amount is paid in cash & balance is agreed to be paid in installments, then the balance is transferred to …………. |
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| 104. |
X, Y and Z were partners sharing profits and losses in the ratio of 3 : 2 : 1. Y died on 30th June, 2018. Profit from 1st April, 2018 to 30th June, 2018 was ₹ 3,60,000. X and Z decided to share the future profits in the ratio of 3 : 2 respectively with effect from 1st July, 2018. Pass the necessary Journal entries to record Y's share of profit up to the date of death. |
| Answer» X, Y and Z were partners sharing profits and losses in the ratio of 3 : 2 : 1. Y died on 30th June, 2018. Profit from 1st April, 2018 to 30th June, 2018 was ₹ 3,60,000. X and Z decided to share the future profits in the ratio of 3 : 2 respectively with effect from 1st July, 2018. Pass the necessary Journal entries to record Y's share of profit up to the date of death. | |
| 105. |
The total of column of percentage of all the items in common size income statement comes out to ___ |
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Answer» The total of column of percentage of all the items in common size income statement comes out to |
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| 106. |
Did the peddler respect the confidence reposed in him by the crofter? |
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Answer» Did the peddler respect the confidence reposed in him by the crofter? |
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| 107. |
The story has many instances of unexpected reactions from the characters to others’ behaviour. Pick out instances of these surprises. |
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Answer» The story has many instances of unexpected reactions from the characters to others’ behaviour. Pick out instances of these surprises. |
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| 108. |
Rao and Swami are partners in a firm sharing profits and losses in3:2 ratio. They admit Ravi as a new partner for 1/8 share in theprofits. The new profit sharing ratio between Rao and Swami is 4:3.Calculate new profit sharing ratio and sacrificing ratio? |
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| 109. |
What are the basic types of companies? |
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Answer» What are the basic types of companies? |
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| 110. |
The first step in the issue of shares is __________. |
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Answer» The first step in the issue of shares is __________. |
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| 111. |
What is molarity? |
| Answer» What is molarity? | |
| 112. |
Explain the treatment of goodwill at the time of retirement or on the event of death of a partner. |
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Answer» Explain the treatment of goodwill at the time of retirement or on the event of death of a partner. |
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| 113. |
A and B are partners sharing profits and losses in the ratio of 2 : 1 . They take C as a partner for 1/5th share. The Goodwill Account appears in the books at its full value ₹ 15,000. C is to pay proportionate amount as premium for goodwill which he pays to A and B privately.Pass necessary entries. |
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Answer» A and B are partners sharing profits and losses in the ratio of 2 : 1 . They take C as a partner for 1/5th share. The Goodwill Account appears in the books at its full value ₹ 15,000. C is to pay proportionate amount as premium for goodwill which he pays to A and B privately. Pass necessary entries. |
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| 114. |
Following is the Receipts and Payments Account of Delhi Football Club for the year ended 31st March, 2019: RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2019 Dr. Cr. Receipts ₹ Payments ₹ To Balance b/d (Cash) 18,000 By Building 4,00,000 To Donations for Building 4,50,000 By Project Expenses 90,000 To Donations 50,000 (Young Talent Search and Development) To Government Grant 1,00,000 By Match Expenses 90,000 (Young Talent Search and Development) By Furniture 1,21,000 To Life Membership Fees 40,000 By 10% Investments 1,60,000 To Match Fund 80,000 (Purchased on 1st July, 2018) To Subscriptions 52,000 By Salaries 70,000 To Locker Rent 4,000 By Insurance 3,500 To Interest on Investments 10,000 By Sundry Expenses 4,700 To Sale of Furniture 1,00,000 By Closing c/d (Cash) 4,800 (Book value ₹ 80,000) By Bank (Young Talent 10,000 To Entrance Fees 50,000 Search and Development 9,54,000 9,54,000 Additional Information:(i) During the year ended 31st March, 2019, the club had 550 members and each paying an annual subscription of ₹ 100.(ii) Salaries Outstanding as at 1st April, 2018 were ₹ 10,000 and as at 31st March, 2019 were ₹ 5,000.Prepare Income and Expenditure Account of the Club for the year ended 31st March, 2019. |
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Answer» Following is the Receipts and Payments Account of Delhi Football Club for the year ended 31st March, 2019:
Additional Information: (i) During the year ended 31st March, 2019, the club had 550 members and each paying an annual subscription of ₹ 100. (ii) Salaries Outstanding as at 1st April, 2018 were ₹ 10,000 and as at 31st March, 2019 were ₹ 5,000. Prepare Income and Expenditure Account of the Club for the year ended 31st March, 2019. |
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| 115. |
Pass necessary Journal entries for the issue of Debentures in the following cases:(a) ₹ 40,000; 15% Debentures of ₹ 100 each issued at a discount of 10% redeemable at par.(b) ₹ 80,000; 15% Debentures of ₹ 100 each issued at a premium of 10% redeemable at a premium of 10%. |
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Answer» Pass necessary Journal entries for the issue of Debentures in the following cases: (a) ₹ 40,000; 15% Debentures of ₹ 100 each issued at a discount of 10% redeemable at par. (b) ₹ 80,000; 15% Debentures of ₹ 100 each issued at a premium of 10% redeemable at a premium of 10%. |
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| 116. |
B. Ltd. issued 1,000, 12% debentures of Rs 100 each on April 01, 2014 at a discount of 5% redeemable at a premium of 10%.Give journal entries relating to the issue of debentures and debentures interest for the period ending March 31, 2015 assuming that interest is paid half yearly on September 30 and March 31 and tax deducted at source is 10%. |
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Answer» B. Ltd. issued 1,000, 12% debentures of Rs 100 each on April 01, 2014 at a discount of 5% redeemable at a premium of 10%. Give journal entries relating to the issue of debentures and debentures interest for the period ending March 31, 2015 assuming that interest is paid half yearly on September 30 and March 31 and tax deducted at source is 10%. |
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| 117. |
Under which line item (major head) of the Statement of Profit and Loss of a financial company will the following be shown:(i) Interest on Loans Given: (ii) Gain (Profit) on Sale of Securities; (iii) Loss on Sale of Fixed Assets; (iv) Interest paid on Deposits; (v) Depreciation on Computers; (vi) Goodwill Written off; (vii) Commission paid for Deposit Mobilisation; and (viii) Repairs Expenses? |
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Answer» Under which line item (major head) of the Statement of Profit and Loss of a financial company will the following be shown: (i) Interest on Loans Given: (ii) Gain (Profit) on Sale of Securities; (iii) Loss on Sale of Fixed Assets; (iv) Interest paid on Deposits; (v) Depreciation on Computers; (vi) Goodwill Written off; (vii) Commission paid for Deposit Mobilisation; and (viii) Repairs Expenses? |
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| 118. |
Y Ltd issued 2,000, 6% Debentures of Rs, 100 each payable as follows Rs. 25 on applications; Rs. 50 on allotment and Rs. 25 on First and Final call. |
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Answer» Y Ltd issued 2,000, 6% Debentures of Rs, 100 each payable as follows Rs. 25 on applications; Rs. 50 on allotment and Rs. 25 on First and Final call. |
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| 119. |
Ashok, Babu and Chetan are in partnership sharing profit in the proportion of 1/2, 1/3, 1/6 respectively.They dissolve the partnership of the 31st March,2018 when the Balance Sheet of the firm as under: Liabilities ₹ Assets ₹ Sundry Creditors 20,000 Bank 7,500 Bills Payable 25,500 Sundry Debtors 58,000 Babu's Loan 30,000 Stock 39,500 Capital A/cs: Machinery 48,000 Ashok 70,000 Investments 42,000 Babu 55,000 Freehold Property 50,500 Chetan 27,000 1,52,000 Capital A/cs: Ashok 10,000 Babu 5,000 Chetan 3,000 18,000 2,45,000 2,45,500 The Machinery was taken over by Babu for ₹ 45,000, Ashok took over the Investments for ₹ 40,000 and Freehold property took over by Chetan at ₹ 55,000. The remaining Assets realised as follows:Sundry Debtors ₹ 56,500 and Stock ₹ 36,500 . Sundry Creditors were settled at discount of 7% . A office computer, not shown in the books of accounts realised ₹ 9,000. Realisation expenses amounted to ₹ 3,000.Prepare Realisation Account , Partners' Capital Accounts and Bank Account. |
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Answer» Ashok, Babu and Chetan are in partnership sharing profit in the proportion of 1/2, 1/3, 1/6 respectively.They dissolve the partnership of the 31st March,2018 when the Balance Sheet of the firm as under:
The Machinery was taken over by Babu for ₹ 45,000, Ashok took over the Investments for ₹ 40,000 and Freehold property took over by Chetan at ₹ 55,000. The remaining Assets realised as follows: Sundry Debtors ₹ 56,500 and Stock ₹ 36,500 . Sundry Creditors were settled at discount of 7% . A office computer, not shown in the books of accounts realised ₹ 9,000. Realisation expenses amounted to ₹ 3,000. Prepare Realisation Account , Partners' Capital Accounts and Bank Account. |
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| 120. |
XYZ Limited's Inventory is ₹3,00,000. Total Liquid Assts are ₹12,00,000 and Quick Ratio is 2:1. Work out Current Ratio. |
| Answer» XYZ Limited's Inventory is ₹3,00,000. Total Liquid Assts are ₹12,00,000 and Quick Ratio is 2:1. Work out Current Ratio. | |
| 121. |
From the following information, calculate the net cash flows from financing activities: 1st april 201831st march 2019Long term loans2,00,0002,50,000 During the year the company repaid the loan amounting to Rs. 1,00,000. |
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Answer» From the following information, calculate the net cash flows from financing activities: 1st april 201831st march 2019Long term loans2,00,0002,50,000 During the year the company repaid the loan amounting to Rs. 1,00,000. |
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| 122. |
The total revenue in Rupees received from the sale of x units of a product is given by R(x) = 5x2 + 22x + 35. Find the marginal revenue, when x = 7, where by marginal revenue we mean the rate of change of total revenue with respect to the number of items sold at an instant. |
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Answer» The total revenue in Rupees received from the sale of x units of a product is given by R(x) = 5x2 + 22x + 35. Find the marginal revenue, when x = 7, where by marginal revenue we mean the rate of change of total revenue with respect to the number of items sold at an instant. |
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| 123. |
A, B and C shared profits and losses in the ratio of 3 : 2 : 1 respectively. With effect from 1st April, 2018, they agreed to share profits equally. The goodwill of the firm was valued at ₹18,000. Pass necessary Journal entries when: (a) Goodwill Account is not opened; and (b) Goodwill Account is opened. |
| Answer» A, B and C shared profits and losses in the ratio of 3 : 2 : 1 respectively. With effect from 1st April, 2018, they agreed to share profits equally. The goodwill of the firm was valued at ₹18,000. Pass necessary Journal entries when: (a) Goodwill Account is not opened; and (b) Goodwill Account is opened. | |
| 124. |
Redraft correctly the Trial Balance given below: Debit Balances Amount (₹) Credit Balances Amount (₹) Capital 8,000 Debtors 7,580 Bad Debts Recovered 250 Bank Deposits 2,750 Creditors 1,250 Discount Allowed 40 Returns Outward 350 Drawings 600 Bank Overdraft 1,570 Returns Inward 450 Rent 360 Sales 13,690 Salaries 850 Bills Payable 1,350 Trade Expenses 300 Grant Received 1,000 Cash in Hand 210 Opening Stock 2,450 Purchases 11,870 27,460 27,460 |
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Answer» Redraft correctly the Trial Balance given below:
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| 125. |
Show how are the following items dealt with while preparing the final accounts for the year ended 31st March , 2018 of a Not-for-profit Organisation:Case I Expenditure on construction of Pavilion is ₹ 6,00,000. The construction work is in progress and has not yet completed . Capital Fund as at 31st March , 2017 is ₹ 20,00,000 .Case II Expenditure on construction of Pavilion is ₹ 6,00,000. The construction work is in progress and has not yet completed .Pavilion Fund as at 31st March, 2017 is ₹ 10,00,000, and Capital Fund as at 31st March , 2017 is ₹ 20,00,000 .Case III Expenditure on construction of Pavilion is ₹ 6,00,000. The construction work is in progress and has not yet completed .Pavilion Fund as at 31st March, 2017 is ₹ 10,00,000, and Capital Fund as at 31st March , 2017 is ₹ 20,00,000 .Donation Received for Pavilion on 1st January,2018 is ₹ 5,00,000 |
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Answer» Show how are the following items dealt with while preparing the final accounts for the year ended 31st March , 2018 of a Not-for-profit Organisation: Case I Expenditure on construction of Pavilion is ₹ 6,00,000. The construction work is in progress and has not yet completed . Capital Fund as at 31st March , 2017 is ₹ 20,00,000 . Case II Expenditure on construction of Pavilion is ₹ 6,00,000. The construction work is in progress and has not yet completed .Pavilion Fund as at 31st March, 2017 is ₹ 10,00,000, and Capital Fund as at 31st March , 2017 is ₹ 20,00,000 . Case III Expenditure on construction of Pavilion is ₹ 6,00,000. The construction work is in progress and has not yet completed .Pavilion Fund as at 31st March, 2017 is ₹ 10,00,000, and Capital Fund as at 31st March , 2017 is ₹ 20,00,000 .Donation Received for Pavilion on 1st January,2018 is ₹ 5,00,000 |
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| 126. |
Captial employed in a business is Rs. 2,00,000. The normal rate of return on capital employed in 15%. During the year 2002, the firm earned a profit of Rs. 48,000. Calculate goodwill on the basis of 3 yr purchase of super profit. |
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Answer» Captial employed in a business is Rs. 2,00,000. The normal rate of return on capital employed in 15%. During the year 2002, the firm earned a profit of Rs. 48,000. Calculate goodwill on the basis of 3 yr purchase of super profit. |
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| 127. |
ABC Ltd., issued 2,000, 10% debentures of Rs 100 each on January 01, 2014 at a discount of 10% redeemable at a premium of 10%. Calculate Debenture Interest and TDS for the period ending December 31, 2014 assuming that interest was paid half yearly on June 30 and December 31 and tax deducted at source is 10%. A Ltd., follows calendar year as its accounting year |
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Answer» ABC Ltd., issued 2,000, 10% debentures of Rs 100 each on January 01, 2014 at a discount of 10% redeemable at a premium of 10%. Calculate Debenture Interest and TDS for the period ending December 31, 2014 assuming that interest was paid half yearly on June 30 and December 31 and tax deducted at source is 10%. A Ltd., follows calendar year as its accounting year |
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| 128. |
Define primary deficit. |
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Answer» Define primary deficit. |
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| 129. |
₹ 3,00,000 is the Cost of Revenue from Operations (Cost of Goods Sold).Inventory Turnover Ratio 8 times; Inventory in the beginning is 2 times more than the inventory at the end. Calculate value of Opening and Closing Inventories |
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Answer» ₹ 3,00,000 is the Cost of Revenue from Operations (Cost of Goods Sold). Inventory Turnover Ratio 8 times; Inventory in the beginning is 2 times more than the inventory at the end. Calculate value of Opening and Closing Inventories |
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| 130. |
Present the following data in the form of a multiple bar diagram: Year Exports (₹ crore) Imports (₹ crore) 2013-14 2014-15 2015-16 2016-17 19,05,011 18,96,445 17,16,378 18,52,429 27,15,434 27,37,087 24,90,298 25,77,666 |
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Answer» Present the following data in the form of a multiple bar diagram:
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| 131. |
A and B are partners in a firm sharing profits in the ratio of 3 : 2 . They admit C as a partner on 1st April, 2018 on which date the Balance Sheet of the firm was: Liabilities ₹ Assets ₹ Capital A/cs: Building 50,000 A 60,000 Plant and Machinery 30,000 B 40,000 1,00,000 Stock 20,000 Creditors 20,000 Debtors 10,000 Bank 10,000 1,20,000 1,20,000 You are required to prepare the Revaluation Account , Partners' Capital Accounts and Balance Sheet of the new firm after considering the following;(a) C brings in ₹ 30,000 as capital for 1/4th share. He also brings ₹ 10,000 for his share of goodwill.(b) Part of the Stock which had been included at cost of ₹ 2,000 had been badly damaged in storage and could only expect to realise ₹ 400.(c) Bank Charges had been overlooked and amounted to ₹ 200 for the year 2017-18.(d) Depreciation on Building of ₹ 3,000 had been omitted for the year 2017-18.(e) A credit for goods for ₹ 800 had been omitted from both purchases and creditors although the goods had been correctly included in Stock.(f) An expense of ₹ 1,200 for insurance premium was debited in the Profit and Loss Account of 2017-18 but ₹ 600 of this are related to the period after 31st March, 2018. |
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Answer» A and B are partners in a firm sharing profits in the ratio of 3 : 2 . They admit C as a partner on 1st April, 2018 on which date the Balance Sheet of the firm was:
You are required to prepare the Revaluation Account , Partners' Capital Accounts and Balance Sheet of the new firm after considering the following; (a) C brings in ₹ 30,000 as capital for 1/4th share. He also brings ₹ 10,000 for his share of goodwill. (b) Part of the Stock which had been included at cost of ₹ 2,000 had been badly damaged in storage and could only expect to realise ₹ 400. (c) Bank Charges had been overlooked and amounted to ₹ 200 for the year 2017-18. (d) Depreciation on Building of ₹ 3,000 had been omitted for the year 2017-18. (e) A credit for goods for ₹ 800 had been omitted from both purchases and creditors although the goods had been correctly included in Stock. (f) An expense of ₹ 1,200 for insurance premium was debited in the Profit and Loss Account of 2017-18 but ₹ 600 of this are related to the period after 31st March, 2018. |
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| 132. |
The Balance Sheet of X, Y and Z who were sharing profits in proportion to their capitals stood as follows at 31st March, 2018: Liabilities Amount (₹) Assets Amount (₹) Sundry Creditors 13,800 Cash at Bank 11,000 Capital A/cs: Sundry Debtors 10,000 25,000 X 45,000 Less: Provision for D. Debts 200 9,800 Y 30,000 Stock 16,000 Z 15,000 90,000 Plant and Machinery 17,000 Land and Building 50,000 1,03,800 1,03,800 Y retires on 1st April, 2018 and the following readjustments were agreed upon:(a) Out of insurance premium which was debited to the Profit and Loss Account , ₹ 1,500 be carried forward as Unexpired Insurance.(b) The Provision for Doubtful Debts be brought up to 5% o Debtors .(c) The Land and Building be appreciated by 20%.(d) A provision of ₹ 4,000 be made in respect of outstanding bills for repairs.(e) The goodwill of the entire firm be fixed at ₹ 21,600.Y's share of goodwill be adjusted to that of X and Z whoa re going to share in future profits in the ratio of 3 : 1 . Pass necessary journal entries and give the Balance Sheet after Y's retirement. |
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Answer» The Balance Sheet of X, Y and Z who were sharing profits in proportion to their capitals stood as follows at 31st March, 2018:
Y retires on 1st April, 2018 and the following readjustments were agreed upon: (a) Out of insurance premium which was debited to the Profit and Loss Account , ₹ 1,500 be carried forward as Unexpired Insurance. (b) The Provision for Doubtful Debts be brought up to 5% o Debtors . (c) The Land and Building be appreciated by 20%. (d) A provision of ₹ 4,000 be made in respect of outstanding bills for repairs. (e) The goodwill of the entire firm be fixed at ₹ 21,600. Y's share of goodwill be adjusted to that of X and Z whoa re going to share in future profits in the ratio of 3 : 1 . Pass necessary journal entries and give the Balance Sheet after Y's retirement. |
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| 133. |
Prepare a Comparative Statement of Profit & Loss from the following details : 31−03−201831−03−2017Revenue from OperationsRs. 30,00,000Rs. 20,00,000Other Income (% of Revenue from Operations)15%20%Expenses(% of Operating Revenue)60%50% |
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Answer» Prepare a Comparative Statement of Profit & Loss from the following details : 31−03−201831−03−2017Revenue from OperationsRs. 30,00,000Rs. 20,00,000Other Income (% of Revenue from Operations)15%20%Expenses(% of Operating Revenue)60%50% |
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| 134. |
The Adersh Control Device Ltd was registered with the authorised capital of Rs 3,00,000 divided into 30,000 shares of Rs 10 each, which were offered to the public. Amount payable as Rs 3 per share on application, Rs 4 per share on allotment and Rs 3 per share on first and final call. These share were fully subscribed and all money was dully received. Prepare journal and Cash Book. |
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Answer» The Adersh Control Device Ltd was registered with the authorised capital of Rs 3,00,000 divided into 30,000 shares of Rs 10 each, which were offered to the public. Amount payable as Rs 3 per share on application, Rs 4 per share on allotment and Rs 3 per share on first and final call. These share were fully subscribed and all money was dully received. Prepare journal and Cash Book. |
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| 135. |
The term “sundry creditors” has been replaced with the term _____ |
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Answer» The term “sundry creditors” has been replaced with the term _____ |
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| 136. |
At what figures the value of assets and liabilities appear in the books of the firm after revaluation has been done? Show with the help of an imaginary balance sheet. |
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Answer» At what figures the value of assets and liabilities appear in the books of the firm after revaluation has been done? Show with the help of an imaginary balance sheet. |
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| 137. |
P, R and S are in partnership sharing profits 4/8, 3/8 and 1/8 respectively. It is provided in the Partnership Deed that on the death of any partner his share of goodwill is to be valued at one-half of the net profit credited to his account during the last four completed years.R died on 1st January, 2018. The firm's profits for the last four years ended 31st December, were as: 2014 − ₹ 1,20,000; 2015 − ₹ 80,000; 2016 − ₹ 40,000; 2017 − ₹ 80,000.(a) Determine the amount that should be credited to R in respect of his share of Goodwill.(b) Pass Journal entry without raising Goodwill Account for its adjustment. |
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Answer» P, R and S are in partnership sharing profits 4/8, 3/8 and 1/8 respectively. It is provided in the Partnership Deed that on the death of any partner his share of goodwill is to be valued at one-half of the net profit credited to his account during the last four completed years. R died on 1st January, 2018. The firm's profits for the last four years ended 31st December, were as: 2014 − ₹ 1,20,000; 2015 − ₹ 80,000; 2016 − ₹ 40,000; 2017 − ₹ 80,000. (a) Determine the amount that should be credited to R in respect of his share of Goodwill. (b) Pass Journal entry without raising Goodwill Account for its adjustment. |
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| 138. |
On 1st April, 2017, A and B entered into partnership contributing ₹ 60,000 and ₹ 45,000 respectively. They agreed to share profits and losses in the ratio of 3 : 2. B is allowed salary of ₹ 12,000 per year. Interest on capital is to be allowed 10% p.a. During the year, A withdrew ₹ 9,000 and B withdrew ₹ 18,000 as drawings, Interest on drawings paid by A and B were ₹ 150 and ₹ 210 respectively. Profit for the year ended 31st March, 2018 before the above adjustments was ₹ 35,000. Show distribution of profits by preparing Profit and Loss Appropriation Account of the firm. Prepare Partners' Capital Accounts also. |
| Answer» On 1st April, 2017, A and B entered into partnership contributing ₹ 60,000 and ₹ 45,000 respectively. They agreed to share profits and losses in the ratio of 3 : 2. B is allowed salary of ₹ 12,000 per year. Interest on capital is to be allowed 10% p.a. During the year, A withdrew ₹ 9,000 and B withdrew ₹ 18,000 as drawings, Interest on drawings paid by A and B were ₹ 150 and ₹ 210 respectively. Profit for the year ended 31st March, 2018 before the above adjustments was ₹ 35,000. Show distribution of profits by preparing Profit and Loss Appropriation Account of the firm. Prepare Partners' Capital Accounts also. | |
| 139. |
An asset shall be classified as ______ if it is held primarily for the purpose of being traded. |
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Answer» An asset shall be classified as ______ if it is held primarily for the purpose of being traded. |
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| 140. |
Menonand Thomas are partners in a firm. They share profits equally. Theirmonthly drawings are Rs 2,000 each. Interest on drawings is to becharged 10% p.a. Calculate interest on Menon’s drawings forthe year 2006, assuming that money is withdrawn: (i) in the beginningof every month, (ii) in the middle of every month, and (iii) at theend of every month. |
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Answer» Menon |
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| 141. |
Whatare financial statements? What information do they provide? |
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Answer» What |
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| 142. |
Government bonds, books and fixed deposit is shown on ___ |
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Answer» Government bonds, books and fixed deposit is shown on ___ |
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| 143. |
A, B. and C are partners in a firm sharing profits in the ratio of 3:2:1. B retires. The goodwill of the firm is valued at Rs. 60,000 and the remaining partners A and C continue to share profits in the ratio of 3:1. By what amounts will the capital accounts of A & C shall be debited if it has been decided that the goodwill shall be raised at its full value & written off immediately ? |
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Answer» A, B. and C are partners in a firm sharing profits in the ratio of 3:2:1. B retires. The goodwill of the firm is valued at Rs. 60,000 and the remaining partners A and C continue to share profits in the ratio of 3:1. By what amounts will the capital accounts of A & C shall be debited if it has been decided that the goodwill shall be raised at its full value & written off immediately ? |
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| 144. |
X and Y are partners sharing profits in the ratio of 2 : 1 . Their Balance Sheet as at 31st March, 2018 was: Liabilities ₹ Assets ₹ Sundry Creditors 25,000 Cash/Bank 5,000 General Reserve 18,000 Sundry Debtors 15,000 Capital A/cs: Stock 10,000 X 75,000 Investments 8,000 Y 62,000 1,37,000 Typewriter 5,000 Fixed Assets 1,37,000 1,80,000 1,80,000 They admit Z into partnership on the same date on the following terms;(a) Z brings in ₹ 40,000 as his capital and he is given 1/4th share in profits.(b) Z brings in ₹ 15,000 for goodwill, half of which is withdrawn by old partners .(c) Investments are valued at ₹ 10,000 . X takes over Investments at this value.(d) Typewriter is to be depreciated by 20% and Fixed Assets by 10%.(e) An unrecorded stock of Stationery on 31st March,2018 is ₹ 1,000.(f) By bringing in r withdrawing cash , the Capitals of X and Y are to be made proportionate to that of Z on their profit-sharing basis.Pass journal entries , prepare Revaluation Account , Capital Accounts and new Balance Sheet of the firm. |
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Answer» X and Y are partners sharing profits in the ratio of 2 : 1 . Their Balance Sheet as at 31st March, 2018 was:
They admit Z into partnership on the same date on the following terms; (a) Z brings in ₹ 40,000 as his capital and he is given 1/4th share in profits. (b) Z brings in ₹ 15,000 for goodwill, half of which is withdrawn by old partners . (c) Investments are valued at ₹ 10,000 . X takes over Investments at this value. (d) Typewriter is to be depreciated by 20% and Fixed Assets by 10%. (e) An unrecorded stock of Stationery on 31st March,2018 is ₹ 1,000. (f) By bringing in r withdrawing cash , the Capitals of X and Y are to be made proportionate to that of Z on their profit-sharing basis. Pass journal entries , prepare Revaluation Account , Capital Accounts and new Balance Sheet of the firm. |
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| 145. |
Mary has two children, John and Jenny. She wanted to divide Rs 900 between them such that John gets twice as much as Jenny. How much money did John actually get? |
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Answer» Mary has two children, John and Jenny. She wanted to divide Rs 900 between them such that John gets twice as much as Jenny. How much money did John actually get? |
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| 146. |
If the death of a partner occurs during the year, the representatives of the deceased partner are entitled to his/her share of profits earned till the ___ |
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Answer» If the death of a partner occurs during the year, the representatives of the deceased partner are entitled to his/her share of profits earned till the |
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| 147. |
X and Y are partners in a firm. They admit Z into partnership for equal share. It was agreed that goodwill will be valued at three years' purchase of average profit of last five years. Profits for the last five years were: Year Ended 31st March, 2014 31st March, 2015 31st March, 2016 31st March, 2017 31st March, 2018 Profit (₹) 90,000 (Loss) 1,60,000 1,50,000 65,000 1,77,000 Books of Account of the firm revealed that:(i) The firm had gain (profit) of ₹ 50,000 from sale of machinery sold in the year ended 31st March, 2015. The gain (profit) was credited in Profit and Loss Account.(ii) There was an abnormal loss of ₹ 20,000 incurred in the year ended 31st March, 2016 because of a machine becoming obsolete in accident.(iii) Overhauling cost of second hand machinery purchased on 1st July, 2016 amounting to ₹ 1,00,000 was debited to Repairs Account. Depreciation is charged 20% p.a. on Written Down Value Method.Calculate the value of goodwill. |
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Answer» X and Y are partners in a firm. They admit Z into partnership for equal share. It was agreed that goodwill will be valued at three years' purchase of average profit of last five years. Profits for the last five years were:
Books of Account of the firm revealed that: (i) The firm had gain (profit) of ₹ 50,000 from sale of machinery sold in the year ended 31st March, 2015. The gain (profit) was credited in Profit and Loss Account. (ii) There was an abnormal loss of ₹ 20,000 incurred in the year ended 31st March, 2016 because of a machine becoming obsolete in accident. (iii) Overhauling cost of second hand machinery purchased on 1st July, 2016 amounting to ₹ 1,00,000 was debited to Repairs Account. Depreciation is charged 20% p.a. on Written Down Value Method. Calculate the value of goodwill. |
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| 148. |
Q11. Consider the following statements: 1. Serious Fraud Investigation Office (SFIO) is setup to investigate corporate frauds. 2. It is under the jurisdiction of the Ministry of Corporate Affairs. Which of the statements are correct? |
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Answer» Q11. Consider the following statements: 1. Serious Fraud Investigation Office (SFIO) is setup to investigate corporate frauds. 2. It is under the jurisdiction of the Ministry of Corporate Affairs. Which of the statements are correct? |
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| 149. |
Compute Cash Flow from Operating Activities from the following information: Particulars ₹ Net Profit after Provision for Tax and Payment of Dividend 2,15,000 Provision for Tax 45,000 Final Dividend paid during the year 50,000 Depreciation 25,000 Loss on Sale of Machinery 10,000 Patents Amortised 30,000 Gain on Sale of Land 70,000 Income Tax Refund 30,000 |
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Answer» Compute Cash Flow from Operating Activities from the following information:
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| 150. |
Pranshu and Himanshu are partners sharing profits and losses in the ratio of 3 : 2 respectively. They admit Anshu as partner with 1/6 share in the profits of the firm. Pranshu personally guaranteed that Anshu's share of profit would not be less than ₹ 30,000 in any year. The net profit of the firm for the ear ending 31st March, 2013 was ₹ 90,000 .Prepare Profit and Loss Appropriation Account. |
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Answer» Pranshu and Himanshu are partners sharing profits and losses in the ratio of 3 : 2 respectively. They admit Anshu as partner with 1/6 share in the profits of the firm. Pranshu personally guaranteed that Anshu's share of profit would not be less than ₹ 30,000 in any year. The net profit of the firm for the ear ending 31st March, 2013 was ₹ 90,000 . Prepare Profit and Loss Appropriation Account. |
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