3267 + Interview Questions in Accountancy Page 30 InterviewSolution

1451.

Show the effect of the following transactions on Assets, Liabilities and Capital through accounting equation: Rs (a) Started business with cash 1,20,000 (b) Rent received 10,000 (c) Invested in shares 50,000 (d) Received dividend 5,000 (e) Purchase goods on credit from Ragani 35,000 (f) Paid cash for house hold Expenses 7,000 (g) Sold goods for cash (costing Rs 10,000) 14,000 (h) (i) Cash paid to Ragani Deposited into bank 35,000 20,000

Answer»

Show the effect of the following transactions on Assets, Liabilities and Capital through accounting equation:

		Rs
(a)	Started business with cash	1,20,000
(b)	Rent received	10,000
(c)	Invested in shares	50,000
(d)	Received dividend	5,000
(e)	Purchase goods on credit from Ragani	35,000
(f)	Paid cash for house hold Expenses	7,000
(g)	Sold goods for cash (costing Rs 10,000)	14,000
(h) (i)	Cash paid to Ragani Deposited into bank	35,000 20,000

Discussion

1452.	Convert the followinginto basic units:(i) 28.7 pm(ii) 15.15 pm(iii) 25365 mg
Answer» Convert the following into basic units: (i) 28.7 pm (ii) 15.15 pm (iii) 25365 mg

1452.

Convert the followinginto basic units:(i) 28.7 pm(ii) 15.15 pm(iii) 25365 mg

Answer»

Convert the following
into basic units:

(i) 28.7 pm

(ii) 15.15 pm

(iii) 25365 mg

Discussion

1453.	A, B and C are partners in a firm. Their profit-sharing ratio is 2 : 2 : 1. C is guaranteed a minimum amount of ₹ 10,000 as share of profit every year. Any deficiency arising on that amount shall be met by B. The profits for the two years ended 31st March, 2017 and 2018 were ₹ 40,000 and ₹ 60,000 respectively. Prepare Profit and Loss Appropriation Account for the two years.
Answer» A, B and C are partners in a firm. Their profit-sharing ratio is 2 : 2 : 1. C is guaranteed a minimum amount of ₹ 10,000 as share of profit every year. Any deficiency arising on that amount shall be met by B. The profits for the two years ended 31st March, 2017 and 2018 were ₹ 40,000 and ₹ 60,000 respectively. Prepare Profit and Loss Appropriation Account for the two years.

Discussion

1454.	Sumit Machine Ltd issued 50,000 shares of Rs 100 each at discount of 5%. The shares were payable Rs 25 on application, Rs 40 on allotment and Rs 30 on first and final call. The issue were fully subscribed and money were duly received except the final call on 400 shares. The discount was adjusted on allotment. Give journal entries and prepare balance sheet.
Answer» Sumit Machine Ltd issued 50,000 shares of Rs 100 each at discount of 5%. The shares were payable Rs 25 on application, Rs 40 on allotment and Rs 30 on first and final call. The issue were fully subscribed and money were duly received except the final call on 400 shares. The discount was adjusted on allotment. Give journal entries and prepare balance sheet.

Discussion

1455.	Radhika Limited issued 50,000 shares of Rs 10 each. The due amount was received except on 1,000 shares on which Rs 6 per share was received. These 1,000 shares were forfeited and 700 shares were reissued for Rs 8 each fully paid-up. Show the Forfeited Shares Account and the Balance Sheet as at closing date.
Answer» Radhika Limited issued 50,000 shares of Rs 10 each. The due amount was received except on 1,000 shares on which Rs 6 per share was received. These 1,000 shares were forfeited and 700 shares were reissued for Rs 8 each fully paid-up. Show the Forfeited Shares Account and the Balance Sheet as at closing date.

1455.

Radhika Limited issued 50,000 shares of Rs 10 each. The due amount was received except on 1,000 shares on which Rs 6 per share was received. These 1,000 shares were forfeited and 700 shares were reissued for Rs 8 each fully paid-up. Show the Forfeited Shares Account and the Balance Sheet as at closing date.

Answer»

Radhika Limited issued 50,000 shares of Rs 10 each. The due amount was received except on 1,000 shares on which Rs 6 per share was received. These 1,000 shares were forfeited and 700 shares were reissued for Rs 8 each fully paid-up.

Show the Forfeited Shares Account and the Balance Sheet as at closing date.

Discussion

1456.	Prepare accounting equation on the basis of the following:(a) Harsha started business with cash Rs 2,00,000(b) Purchased goods from Naman for cash Rs 40,000(c) Sold goods to Bhanu costing Rs 10,000/- Rs 12,000(d) Bought furniture on credit Rs 7,000
Answer» Prepare accounting equation on the basis of the following: (a) Harsha started business with cash Rs 2,00,000 (b) Purchased goods from Naman for cash Rs 40,000 (c) Sold goods to Bhanu costing Rs 10,000/- Rs 12,000 (d) Bought furniture on credit Rs 7,000

1456.

Prepare accounting equation on the basis of the following:(a) Harsha started business with cash Rs 2,00,000(b) Purchased goods from Naman for cash Rs 40,000(c) Sold goods to Bhanu costing Rs 10,000/- Rs 12,000(d) Bought furniture on credit Rs 7,000

Answer»

Prepare accounting equation on the basis of the following:

(a) Harsha started business with cash Rs 2,00,000

(b) Purchased goods from Naman for cash Rs 40,000

(c) Sold goods to Bhanu costing Rs 10,000/- Rs 12,000

(d) Bought furniture on credit Rs 7,000

Discussion

1457.	X and Y are partners sharing profits and losses in the ratio of 2 : 3 with capitals ₹ 2,00,000 and ₹ 3,00,000 respectively. On 1st October, 2017, X and Y granted loans of ₹ 80,000 and ₹ 40,000 respectively to the firm. Show distribution of profits/losses for the year ended 31st March, 2018 in each of the following alternative cases:Case 1 : If the profits before interest for the year amounted to ₹ 21,000.Case 2 : If the profits before interest for the year amounted to ₹ 3,000.Case 3 : If the profits before interest for the year amounted to ₹ 5,000.Case 4 : If the loss before interest for the year amounted to ₹ 1,400.
Answer» X and Y are partners sharing profits and losses in the ratio of 2 : 3 with capitals ₹ 2,00,000 and ₹ 3,00,000 respectively. On 1st October, 2017, X and Y granted loans of ₹ 80,000 and ₹ 40,000 respectively to the firm. Show distribution of profits/losses for the year ended 31st March, 2018 in each of the following alternative cases: Case 1 : If the profits before interest for the year amounted to ₹ 21,000. Case 2 : If the profits before interest for the year amounted to ₹ 3,000. Case 3 : If the profits before interest for the year amounted to ₹ 5,000. Case 4 : If the loss before interest for the year amounted to ₹ 1,400.

Discussion

1458.

The Silver Ore Co. Ltd. was formed on April 1, 2005 with an authorised capital of Rs6,00,000 in shares of Rs 10 each. Of these 52,000 shares had been issued and subscribed but there were calls in arrear on 100 shares Rs 2.50. From the following trial balance as on March 31, 2006 prepare the trading and profit and loss account and the balance sheet: Rs RsCash at Bank1,05,500Advertising5,000Share Capital5,19,750Cartage on Plant1,800Plant40,000Furniture and Buildings20,900Sale of Silver1,79,500Administrative Expenses28,000Mines2,20,000Repairs of Plant900Promotion Expenses6,000Coal and Oil6,500Interest of F.D. up to Dec.31,20053,900Cash530Dividend on Investment3,200Investments-share of tin mines80,000Royalties Paid10,000Brokerage on above1,000Railway track and wagons17,0006% F.D. in Syndicate Bank89,000Wages of Mines74,220 (i) Depreciate plant and railways by 10%; furniture and building by 5%; (ii) Write off a third of the promotion expenses; (iii) Value of silver ore on March 31, 1969 Rs 15,000, The directors forfeited on December 20, 1968, 100 shares on which only Rs 7.50 had been paid.

Answer»

The Silver Ore Co. Ltd. was formed on April 1, 2005 with an authorised capital of Rs6,00,000 in shares of Rs 10 each. Of these 52,000 shares had been issued and subscribed but there were calls in arrear on 100 shares Rs 2.50. From the following trial balance as on March 31, 2006 prepare the trading and profit and loss account and the balance sheet:

	Rs		Rs
Cash at Bank	1,05,500	Advertising	5,000
Share Capital	5,19,750	Cartage on Plant	1,800
Plant	40,000	Furniture and Buildings	20,900
Sale of Silver	1,79,500	Administrative Expenses	28,000
Mines	2,20,000	Repairs of Plant	900
Promotion Expenses	6,000	Coal and Oil	6,500
Interest of F.D. up to Dec.31,2005	3,900	Cash	530
Dividend on Investment	3,200	Investments-share of tin mines	80,000
Royalties Paid	10,000	Brokerage on above	1,000
Railway track and wagons	17,000	6% F.D. in Syndicate Bank	89,000
Wages of Mines	74,220

(i) Depreciate plant and railways by 10%; furniture and building by 5%; (ii) Write off a third of the promotion expenses; (iii) Value of silver ore on March 31, 1969 Rs 15,000, The directors forfeited on December 20, 1968, 100 shares on which only Rs 7.50 had been paid.

Discussion

1459.

A, B and C are partners sharing profits and losses in the ratio of 4 : 3 : 3. Their Balance Sheet as at 31st March, 2019 is: Liabilities Amount (₹) Assets Amount (₹) Creditors 7,000 Land and Building 36,000 Bills Payable 3,000 Plant and Machinery 28,000 Reserves 20,000 Computer Printer 8,000 Capital A/cs: Stock 20,000 A 32,000 Sundry Debtors 14,000 B 24,000 Less: Provision for Doubtful Debts 2,000 12,000 C 20,000 76,000 Bank 2,000 1,06,000 1,06,000 On 1st April, 2019, B retired from the firm on the following terms:(a) Goodwill of the firm is to be valued at ₹ 14,000.(b) Stock, Land and Building are to be appreciated by 10%.(c) Plant and Machinery and Computer Printer are to be reduced by 10%.(d) Sundry Debtors are considered to be good.(e) There is a liability of ₹ 2,000 for the payment of outstanding salary to the employees of the firm. This liability was not provided in the Balance Sheet but the same is to be recorded now.(f) Amount payable to B is to be transferred to his Loan Account.Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of A and C after B's retirement.

Answer»

A, B and C are partners sharing profits and losses in the ratio of 4 : 3 : 3. Their Balance Sheet as at 31st March, 2019 is:

Liabilities		Amount (₹)	Assets		Amount (₹)
Creditors		7,000	Land and Building		36,000
Bills Payable		3,000	Plant and Machinery		28,000
Reserves		20,000	Computer Printer		8,000
Capital A/cs:			Stock		20,000
A	32,000		Sundry Debtors	14,000
B	24,000		Less: Provision for Doubtful Debts	2,000	12,000
C	20,000	76,000	Bank		2,000

		1,06,000			1,06,000

On 1st April, 2019, B retired from the firm on the following terms:

(a) Goodwill of the firm is to be valued at ₹ 14,000.

(b) Stock, Land and Building are to be appreciated by 10%.

(c) Plant and Machinery and Computer Printer are to be reduced by 10%.

(d) Sundry Debtors are considered to be good.

(e) There is a liability of ₹ 2,000 for the payment of outstanding salary to the employees of the firm. This liability was not provided in the Balance Sheet but the same is to be recorded now.

(f) Amount payable to B is to be transferred to his Loan Account.

Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of A and C after B's retirement.

Discussion

1460.	Jiya Ltd. Purchased a running business from Diya Ltd. for a sum of Rs. 2,00,000 payable by issue of 20,000 equity shares of Rs. 10 each. The assets and liabilities taken over were: Building Rs. 80,000, Plant Rs. 80,000, Debtors Rs. 60,000 and creditors Rs. 40,000. You are required to pass the journal entries in the books of Jiya Ltd.
Answer» Jiya Ltd. Purchased a running business from Diya Ltd. for a sum of Rs. 2,00,000 payable by issue of 20,000 equity shares of Rs. 10 each. The assets and liabilities taken over were: Building Rs. 80,000, Plant Rs. 80,000, Debtors Rs. 60,000 and creditors Rs. 40,000. You are required to pass the journal entries in the books of Jiya Ltd.

Discussion

1461.	A trading firm’s average inventory is Rs 20,000 (cost). If the inventory turnover ratio is 8 times and the firm sells goods at a profit of 20% on sale, ascertain the profit of the firm.
Answer» A trading firm’s average inventory is Rs 20,000 (cost). If the inventory turnover ratio is 8 times and the firm sells goods at a profit of 20% on sale, ascertain the profit of the firm.

Discussion

1462.	Operating cost is equal to the ____________
Answer» Operating cost is equal to the ____________

Discussion

1463.	On 1st June, 2015, R Energy Ltd. issued 10,000, 7% Debentures of ₹ 100 each at a discount of 10% redeemable at a premium of 10% at the end of five years . All the debentures were subscribed and allotment was made . Loss on issue of Debentures is to be written off over the life of the debentures.Prepare the Balance Sheet (extract) as at 31st March, 2016 and 31st March, 2017 showing Loss on issue of Debentures.
Answer» On 1st June, 2015, R Energy Ltd. issued 10,000, 7% Debentures of ₹ 100 each at a discount of 10% redeemable at a premium of 10% at the end of five years . All the debentures were subscribed and allotment was made . Loss on issue of Debentures is to be written off over the life of the debentures. Prepare the Balance Sheet (extract) as at 31st March, 2016 and 31st March, 2017 showing Loss on issue of Debentures.

Discussion

1464.	Vishal sold goods for ₹ 7,000 to Manju on Jan. 5, 2017 and drew upon her a bill of exchange payable after 2 months. Manju accepted Vishal's draft and handed over the same to Vishal after acceptance. Vishal immediately discounted the bill with his bank 12% p.a. On the due date Manju met her acceptance. Journalise the above transactions in the books of Vishal and Manju.
Answer» Vishal sold goods for ₹ 7,000 to Manju on Jan. 5, 2017 and drew upon her a bill of exchange payable after 2 months. Manju accepted Vishal's draft and handed over the same to Vishal after acceptance. Vishal immediately discounted the bill with his bank 12% p.a. On the due date Manju met her acceptance. Journalise the above transactions in the books of Vishal and Manju.

Discussion

1465.

Balance Sheet of P, Q and R as at 31st March, 2018, who were sharing profits in the ratio of 5 : 3 : 1 , was: Liabilities Amount (₹) Assets Amount (₹) Bills Payable 40,000 Cash at Bank 40,000 Loan from Bank 30,000 Stock 19,000 Reserve Fund 9,000 Sundry Debtors 42,000 Capital A/cs: 5,800 Less: Provision for D. Debts 2,000 40,000 P 44,000 Q 36,000 Building 40,000 R 20,000 1,00,000 Plant and Machinery 40,000 1,79,000 1,79,000 The partners dissolved the business. Assets realised—Stock ₹ 23,400; Debtors 50%; Fixed Assets 10% less than their book value . Bills Payable were settled for ₹ 32,000. There was an Outstanding Bill of Electricity ₹ 800 which was paid off. Realisation expenses ₹ 1,250 were also paid.Prepare Realisation Account , Partner's Capital Accounts and Bank Account .

Answer» Balance Sheet of P, Q and R as at 31st March, 2018, who were sharing profits in the ratio of 5 : 3 : 1 , was:

Liabilities		Amount (₹)	Assets		Amount (₹)
Bills Payable		40,000	Cash at Bank		40,000
Loan from Bank		30,000	Stock		19,000
Reserve Fund		9,000	Sundry Debtors	42,000
Capital A/cs:		5,800	Less: Provision for D. Debts	2,000	40,000
P	44,000
Q	36,000		Building		40,000
R	20,000	1,00,000	Plant and Machinery		40,000

		1,79,000			1,79,000

The partners dissolved the business. Assets realised

—

Stock ₹ 23,400; Debtors 50%; Fixed Assets 10% less than their book value . Bills Payable were settled for ₹ 32,000. There was an Outstanding Bill of Electricity ₹ 800 which was paid off. Realisation expenses ₹ 1,250 were also paid.

Prepare Realisation Account , Partner's Capital Accounts and Bank Account .

Discussion

1466.	Issue of preference shares can be classified as ___________.
Answer» Issue of preference shares can be classified as ___________.

Discussion

1467.

From the following trial balance of Mr. A. Lal, prepare trading, profit and loss account and balance sheet as on March 31, 2017. Account Title Debit Amount Rs Credit Amount Rs Stock as on April 01, 2016 16,000 Purchases and Sales 67,600 1,12,000 Returns inwards and outwards 4,600 3,200 Carriage inwards 1,400 General expenses 2,400 Bad debts 600 Discount received 1,400 Bank over draft 10,000 Interest on bank overdraft 600 Commission received 1,800 Insurance and taxes 4,000 Scooter expenses 200 Salaries 8,800 Cash in hand 4,000 Scooter 8,000 Furniture 5,200 Building 65,000 Debtors and Creditors 6,000 16,000 Capital 50,000 Closing stock Rs 15,000.

Answer»

From the following trial balance of Mr. A. Lal, prepare trading, profit and loss account and balance sheet as on March 31, 2017.

Account Title	Debit Amount Rs	Credit Amount Rs
Stock as on April 01, 2016	16,000
Purchases and Sales	67,600	1,12,000
Returns inwards and outwards	4,600	3,200
Carriage inwards	1,400
General expenses	2,400
Bad debts	600
Discount received		1,400
Bank over draft		10,000
Interest on bank overdraft	600
Commission received		1,800
Insurance and taxes	4,000
Scooter expenses	200
Salaries	8,800
Cash in hand	4,000
Scooter	8,000
Furniture	5,200
Building	65,000
Debtors and Creditors	6,000	16,000
Capital		50,000

Closing stock Rs 15,000.

Discussion

1468.

Enter the following transactions in a Single Column Cash Book∶− 2016 (₹) May 1 Commenced business with Cash 25,000 3 Bought goods for Cash 10,000 3 Paid Carriage 200 4 Sold goods for Cash 6,000 10 Received from Ram 1,000 12 Paid to Shiv Kumar 2,600 15 Cash Sales 8,400 18 Purchased furniture for cash for office 5,000 20 Paid for Advertisement 500 20 Purchased goods from Mahesh on credit 6,000 24 Paid to Mahesh 4,000 25 Paid Wages 400 27 Received for Commission 1,500 28 Withdrew for personal use 2,200 31 Paid salary 700

Answer» Enter the following transactions in a Single Column Cash Book∶−

2016		(₹)
May 1	Commenced business with Cash	25,000
3	Bought goods for Cash	10,000
3	Paid Carriage	200
4	Sold goods for Cash	6,000
10	Received from Ram	1,000
12	Paid to Shiv Kumar	2,600
15	Cash Sales	8,400
18	Purchased furniture for cash for office	5,000
20	Paid for Advertisement	500
20	Purchased goods from Mahesh on credit	6,000
24	Paid to Mahesh	4,000
25	Paid Wages	400
27	Received for Commission	1,500
28	Withdrew for personal use	2,200
31	Paid salary	700

Discussion

1469.	A company issued 10% Debentures of the face value of Rs,1,20,000 at a discount of 6% on April 01, 2011. The debentures are payable by annual drawings of Rs 40,000 commencing from the end of third year.How will you deal with discount on debentures?Show the discount on debentures account in the company ledger for the period of duration of debentures. Assume accounts are closed on March 31 every year.
Answer» A company issued 10% Debentures of the face value of Rs,1,20,000 at a discount of 6% on April 01, 2011. The debentures are payable by annual drawings of Rs 40,000 commencing from the end of third year. How will you deal with discount on debentures? Show the discount on debentures account in the company ledger for the period of duration of debentures. Assume accounts are closed on March 31 every year.

1469.

A company issued 10% Debentures of the face value of Rs,1,20,000 at a discount of 6% on April 01, 2011. The debentures are payable by annual drawings of Rs 40,000 commencing from the end of third year.How will you deal with discount on debentures?Show the discount on debentures account in the company ledger for the period of duration of debentures. Assume accounts are closed on March 31 every year.

Answer»

A company issued 10% Debentures of the face value of Rs,1,20,000 at a discount of 6% on April 01, 2011. The debentures are payable by annual drawings of Rs 40,000 commencing from the end of third year.

How will you deal with discount on debentures?

Show the discount on debentures account in the company ledger for the period of duration of debentures. Assume accounts are closed on March 31 every year.

Discussion

1470.	Which of the following statement/s are used for financial analysis?
Answer» Which of the following statement/s are used for financial analysis?

Discussion

1471.	Ankur, Bhavns and Disha are partners in a firm. On 1st April, 2017, the balance in their Capital Accounts stood at ₹ 14,00,000, ₹ 6,00,000 and ₹ 4,00,000 respectively. They shared profits in the proportion of 7 : 3 : 2 respectively. Partners are entitled to interest on capital 6% per annum and salary to Bhavna ₹ 50,000 p.a. and a commission of ₹ 3,000 per month to Disha as per the provisions of the partnership Deed. Bhavna's share of profit (excluding interest on capital) is guaranteed at not less than ₹ 1,70,000 p.a. Disha's share of profit (including interest on capital but excluding commission) is guaranteed at not less than ₹ 1,50,000 p.a. Any deficiency arising on that account shall be met by Ankur. The profit of the firm for the year ended 31st March, 2018 amounted to ₹ 9,50,000.Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2018.
Answer» Ankur, Bhavns and Disha are partners in a firm. On 1st April, 2017, the balance in their Capital Accounts stood at ₹ 14,00,000, ₹ 6,00,000 and ₹ 4,00,000 respectively. They shared profits in the proportion of 7 : 3 : 2 respectively. Partners are entitled to interest on capital 6% per annum and salary to Bhavna ₹ 50,000 p.a. and a commission of ₹ 3,000 per month to Disha as per the provisions of the partnership Deed. Bhavna's share of profit (excluding interest on capital) is guaranteed at not less than ₹ 1,70,000 p.a. Disha's share of profit (including interest on capital but excluding commission) is guaranteed at not less than ₹ 1,50,000 p.a. Any deficiency arising on that account shall be met by Ankur. The profit of the firm for the year ended 31st March, 2018 amounted to ₹ 9,50,000. Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2018.

Discussion

1472.	State Bank of India issued 20,000, 6% Debentures of Rs 50 each at a premium of 8% on June 30, 2010 redeemable on June 30, 2018. The issue was fully subscribed. Record necessary entries for issue and redemption of debentures.
Answer» State Bank of India issued 20,000, $6 %$ Debentures of Rs 50 each at a premium of $8 %$ on June 30, 2010 redeemable on June 30, 2018. The issue was fully subscribed. Record necessary entries for issue and redemption of debentures.

Discussion

1473.	What is meant by ‘Issue of debenture at discount and redeemable at premium?
Answer» What is meant by ‘Issue of debenture at discount and redeemable at premium?

Discussion

1474.	Cash and cash equivalents are always classified under _____
Answer» Cash and cash equivalents are always classified under _____

Discussion

1475.	Ravi and Mukesh are sharing profits in the ratio of 7 : 3. They admit Ashok for 3/7th share in the firm which he takes 2/7th from Ravi and 1/7th from Mukesh. Calculate new profit-sharing ratio.
Answer» Ravi and Mukesh are sharing profits in the ratio of 7 : 3. They admit Ashok for 3/7th share in the firm which he takes 2/7th from Ravi and 1/7th from Mukesh. Calculate new profit-sharing ratio.

Discussion

1476.	The total revenue in Rupees received from the saleof x unitsof a product is given by Find the marginal revenue when x= 7.
Answer» The total revenue in Rupees received from the sale of x units of a product is given by Find the marginal revenue when x = 7.

1476.

The total revenue in Rupees received from the saleof x unitsof a product is given by Find the marginal revenue when x= 7.

Answer»

The total revenue in Rupees received from the sale
of x units
of a product is given by

Find the marginal revenue when x
= 7.

Discussion

1477.	X Ltd. decided to set up a charitable dispensary to provide free medical facilities to the weaker sections of the society. Following data is derived from the Company books: Particulars31.03.201731.03.2016Rs.Rs.Share Capital3,00,0002,40,000Reserve and Surplus80,00070,000Trade Payables1,00,0001,10,000Trade Receivables1,90,0001,80,000Short Term Provisions40,00015,000Fixed Assets2,90,0002,30,000Long Term Provisions80,00065,000Current Investments10,0008,000Inventory1,01,00072,000Cash and Cash Equivalents9,00010,000 You are required to: (a) Prepare a Common Size Balance Sheet, and (b) Identify the value involved.
Answer» X Ltd. decided to set up a charitable dispensary to provide free medical facilities to the weaker sections of the society. Following data is derived from the Company books: $\begin{matrix} Particulars & 31.03.2017 & 31.03.2016 Rs. & Rs. Share Capital & 3, 00, 000 & 2, 40, 000 Reserve and Surplus & 80, 000 & 70, 000 Trade Payables & 1, 00, 000 & 1, 10, 000 Trade Receivables & 1, 90, 000 & 1, 80, 000 Short Term Provisions & 40, 000 & 15, 000 Fixed Assets & 2, 90, 000 & 2, 30, 000 Long Term Provisions & 80, 000 & 65, 000 Current Investments & 10, 000 & 8, 000 Inventory & 1, 01, 000 & 72, 000 Cash and Cash Equivalents & 9, 000 & 10, 000 \end{matrix}$ You are required to: (a) Prepare a Common Size Balance Sheet, and (b) Identify the value involved.

1477.

X Ltd. decided to set up a charitable dispensary to provide free medical facilities to the weaker sections of the society. Following data is derived from the Company books: Particulars31.03.201731.03.2016Rs.Rs.Share Capital3,00,0002,40,000Reserve and Surplus80,00070,000Trade Payables1,00,0001,10,000Trade Receivables1,90,0001,80,000Short Term Provisions40,00015,000Fixed Assets2,90,0002,30,000Long Term Provisions80,00065,000Current Investments10,0008,000Inventory1,01,00072,000Cash and Cash Equivalents9,00010,000 You are required to: (a) Prepare a Common Size Balance Sheet, and (b) Identify the value involved.

Answer»

X Ltd. decided to set up a charitable dispensary to provide free medical facilities to the weaker sections of the society. Following data is derived from the Company books:

$\begin{matrix} Particulars & 31.03.2017 & 31.03.2016 Rs. & Rs. Share Capital & 3, 00, 000 & 2, 40, 000 Reserve and Surplus & 80, 000 & 70, 000 Trade Payables & 1, 00, 000 & 1, 10, 000 Trade Receivables & 1, 90, 000 & 1, 80, 000 Short Term Provisions & 40, 000 & 15, 000 Fixed Assets & 2, 90, 000 & 2, 30, 000 Long Term Provisions & 80, 000 & 65, 000 Current Investments & 10, 000 & 8, 000 Inventory & 1, 01, 000 & 72, 000 Cash and Cash Equivalents & 9, 000 & 10, 000 \end{matrix}$

You are required to:

(a) Prepare a Common Size Balance Sheet, and

(b) Identify the value involved.

Discussion

1478.	Receipts and Payments A/c is a summary of -
Answer» Receipts and Payments A/c is a summary of -

Discussion

1479.	2,000 Equity Shares of ₹ 10 each were issued to Limited from whom assets of ₹ 25,000 were acquired .Pass Journal entry.
Answer» 2,000 Equity Shares of ₹ 10 each were issued to Limited from whom assets of ₹ 25,000 were acquired . Pass Journal entry.

Discussion

1480.	(i) Cost of Revenue from Operations (Cost of Goods Sold) ₹2,20,000; Revenue from Operations (Net Sales) ₹3,20,000; Selling Expenses ₹12,000; Office Expenses ₹8,000; Depreciation ₹6,000. Calculate Operating Ratio.(ii) Revenue from Operations, Cash Sales ₹4,00,000; Credit Sales ₹1,00,000; Gross Profit ₹1,00,000; Office and Selling Expenses ₹50,000. Calculate Operating Ratio.
Answer» (i) Cost of Revenue from Operations (Cost of Goods Sold) ₹2,20,000; Revenue from Operations (Net Sales) ₹3,20,000; Selling Expenses ₹12,000; Office Expenses ₹8,000; Depreciation ₹6,000. Calculate Operating Ratio. (ii) Revenue from Operations, Cash Sales ₹4,00,000; Credit Sales ₹1,00,000; Gross Profit ₹1,00,000; Office and Selling Expenses ₹50,000. Calculate Operating Ratio.

Discussion

1481.	Future Value after 2 year = 6,00,000. The rate is 10 %. What is Present value today?
Answer» Future Value after 2 year = 6,00,000. The rate is 10 %. What is Present value today?

Discussion

1482.

A company purchased a running business from M/s. Rai Brothers for a sum of ₹ 15,00,000 payable ₹ 12,00,000 in fully paid shares of ₹ 10 each and balance through cheque.The assets and liabilities consisted of the following: Plant ₹ 4,00,000 Stock ₹ 4,00,000 Building ₹ 4,00,000 Cash ₹ 3,00,000 Sundry Debtors ₹ 3,00,000 Sundry Creditors ₹ 2,00,000 You are required to pass necessary journal entries in the company's books.

Answer» A company purchased a running business from M/s. Rai Brothers for a sum of ₹ 15,00,000 payable ₹ 12,00,000 in fully paid shares of ₹ 10 each and balance through cheque.

The assets and liabilities consisted of the following:

Plant	₹ 4,00,000	Stock	₹ 4,00,000
Building	₹ 4,00,000	Cash	₹ 3,00,000
Sundry Debtors	₹ 3,00,000	Sundry Creditors	₹ 2,00,000

You are required to pass necessary journal entries in the company's books.

Discussion

1483.	What is the cash flow from operating activities under direct method using the following information: December 3120112010Accounts Receivable$34,130$28,410Prepaid Rent20,00025,000Prepaid Insurance6,8006,000Inventory23,03015,450Accounts Payable14,59031,300Salaries Payable8,3105.120Interest Payable700360Income Tax Payable2,3400Year Ended December 312011Net Sales64,970Salaries Expense8,610Rent Expense5,000Insurance Expense3,200Interest Expense1,650
Answer» What is the cash flow from operating activities under direct method using the following information: $\begin{matrix} December 31 & 2011 & 2010 Accounts Receivable & $ 34, 130 & $ 28, 410 Prepaid Rent & 20, 000 & 25, 000 Prepaid Insurance & 6, 800 & 6, 000 Inventory & 23, 030 & 15, 450 Accounts Payable & 14, 590 & 31, 300 Salaries Payable & 8, 310 & 5.120 Interest Payable & 700 & 360 Income Tax Payable & 2, 340 & 0 Year Ended December 31 & 2011 Net Sales & 64, 970 Salaries Expense & 8, 610 Rent Expense & 5, 000 Insurance Expense & 3, 200 Interest Expense & 1, 650 \end{matrix}$

1483.

What is the cash flow from operating activities under direct method using the following information: December 3120112010Accounts Receivable$34,130$28,410Prepaid Rent20,00025,000Prepaid Insurance6,8006,000Inventory23,03015,450Accounts Payable14,59031,300Salaries Payable8,3105.120Interest Payable700360Income Tax Payable2,3400Year Ended December 312011Net Sales64,970Salaries Expense8,610Rent Expense5,000Insurance Expense3,200Interest Expense1,650

Answer»

What is the cash flow from operating activities under direct method using the following information:

$\begin{matrix} December 31 & 2011 & 2010 Accounts Receivable & $ 34, 130 & $ 28, 410 Prepaid Rent & 20, 000 & 25, 000 Prepaid Insurance & 6, 800 & 6, 000 Inventory & 23, 030 & 15, 450 Accounts Payable & 14, 590 & 31, 300 Salaries Payable & 8, 310 & 5.120 Interest Payable & 700 & 360 Income Tax Payable & 2, 340 & 0 Year Ended December 31 & 2011 Net Sales & 64, 970 Salaries Expense & 8, 610 Rent Expense & 5, 000 Insurance Expense & 3, 200 Interest Expense & 1, 650 \end{matrix}$

Discussion

1484.	If at the time of retirement of a partner, goodwill appears in the balance sheet of the firm, it will be written-off by debiting the capital accounts of ______
Answer» If at the time of retirement of a partner, goodwill appears in the balance sheet of the firm, it will be written-off by debiting the capital accounts of ______

Discussion

1485.	X, Y and Z are partners sharing profits and lossed equally. As per partnership Deed, Z is entitled to a commission of 10% on the net profit after charging such commission. The net profit before charging commission is ₹ 2,20,000.Determine the amount of commission payable to Z.
Answer» X, Y and Z are partners sharing profits and lossed equally. As per partnership Deed, Z is entitled to a commission of 10% on the net profit after charging such commission. The net profit before charging commission is ₹ 2,20,000. Determine the amount of commission payable to Z.

Discussion

1486.	The Hindustan Manufacturing Ltd. had a total subscribed capital of ₹ 10,00,000 in Equity Shares of ₹ 10 each of which ₹ 7.50 were called-up. A final call of ₹ 2.50 was made and all amount paid except two calls of ₹ 2.50 each in respect of 100 shares held by D . These shares were forfeited and reissued at ₹ 8 per share . Pass necessary journal entries (including that of cash) to record the transactions of final call , forfeiture of shares and reissue of forfeited shares . Also, prepare the Balance Sheet of the company.
Answer» The Hindustan Manufacturing Ltd. had a total subscribed capital of ₹ 10,00,000 in Equity Shares of ₹ 10 each of which ₹ 7.50 were called-up. A final call of ₹ 2.50 was made and all amount paid except two calls of ₹ 2.50 each in respect of 100 shares held by D . These shares were forfeited and reissued at ₹ 8 per share . Pass necessary journal entries (including that of cash) to record the transactions of final call , forfeiture of shares and reissue of forfeited shares . Also, prepare the Balance Sheet of the company.

Discussion

1487.	76.IF a number is reduced by 20% and then increased by 7.998%. Then find net profit or loss.
Answer» 76.IF a number is reduced by 20% and then increased by 7.998%. Then find net profit or loss.

Discussion

1488.	A and B are two partners in a firm with capital of Rs 10,000 and Rs 20,000 respectively. They admit C in firm for 1/4 the profits in the firm. C brings Rs 12,000 as his share of capital. What is the amount of goodwill ?
Answer» A and B are two partners in a firm with capital of Rs 10,000 and Rs 20,000 respectively. They admit C in firm for 1/4 the profits in the firm. C brings Rs 12,000 as his share of capital. What is the amount of goodwill ?

Discussion

1489.

The following balances appeared in the books of Parasuram Flour Mills Ltd., as on December 31, 2005 : DetailsRsDetailsRsStock of wheat9,500Furniture5,100Stock of flour16,000Vehicles5,100Wheat Purchases4,05,000Stores and spare parts18,300Manufacturing Expenses90,000Advances24,500Flour Sales5,55,000Book Debts51,700Salaries and Wages13,000Investments4,000Establishment4,700Share Capital72,000Interest (Cr.)500Pension Fund23,000Rent Received800Dividend Equalisation fund10,000Profit and Loss Account (Cr.)15,000Taxation Provision8,500Director’s Fees1,200Unclaimed Dividends900Dividend for 20049,000Deposits (Cr.)1,600Land12,000Trade Creditors1,24,000Buildings50,500Cash in Hand1,200Plants and Machinery50,500Cash at Bank40,000 Prepare the company’s trading and profit and loss account for the year and balance sheet as on December 31, 2005 after taking the following adjustments into account:(a) Stock on December 31, 2005 were: Wheat at cost, Rs 14,900: Flour at market price, Rs 21,700; (b) Outstanding expenses: Manufacturing expenses, Rs 23,500; and salaries and wages, Rs 1,200; (c) Provide depreciation : Building at 2% ; Plant and machinery at 10%: Furniture at 10% ; and Vehicle 20%. (d) Interest accrued on Government Securities, Rs100: (e) A tax provision of Rs 8,000 is considered necessary. (f) The directors propose a dividend of 20%. (g) The authorised capital consists of 12,000 equity shares of Rs 10 each of which 7,200 shares were issued and fully paid up.

Answer»

The following balances appeared in the books of Parasuram Flour Mills Ltd., as on December 31, 2005 :

Details	Rs	Details	Rs
Stock of wheat	9,500	Furniture	5,100
Stock of flour	16,000	Vehicles	5,100
Wheat Purchases	4,05,000	Stores and spare parts	18,300
Manufacturing Expenses	90,000	Advances	24,500
Flour Sales	5,55,000	Book Debts	51,700
Salaries and Wages	13,000	Investments	4,000
Establishment	4,700	Share Capital	72,000
Interest (Cr.)	500	Pension Fund	23,000
Rent Received	800	Dividend Equalisation fund	10,000
Profit and Loss Account (Cr.)	15,000	Taxation Provision	8,500
Director’s Fees	1,200	Unclaimed Dividends	900
Dividend for 2004	9,000	Deposits (Cr.)	1,600
Land	12,000	Trade Creditors	1,24,000
Buildings	50,500	Cash in Hand	1,200
Plants and Machinery	50,500	Cash at Bank	40,000

Prepare the company’s trading and profit and loss account for the year and balance sheet as on December 31, 2005 after taking the following adjustments into account:

(a) Stock on December 31, 2005 were: Wheat at cost, Rs 14,900: Flour at market price, Rs 21,700; (b) Outstanding expenses: Manufacturing expenses, Rs 23,500; and salaries and wages, Rs 1,200; (c) Provide depreciation : Building at 2% ; Plant and machinery at 10%: Furniture at 10% ; and Vehicle 20%. (d) Interest accrued on Government Securities, Rs100: (e) A tax provision of Rs 8,000 is considered necessary. (f) The directors propose a dividend of 20%. (g) The authorised capital consists of 12,000 equity shares of Rs 10 each of which 7,200 shares were issued and fully paid up.

Discussion

1490.

From the following information of Hospitality Ltd. for the year ended 31st March, 2018, calculate amount that will be shown in the Note to Accounts on Changes in inventiories of Finished Goods, WIP and stock-in-Trade: Particluars Opening Inventory (₹) Closing inventory(₹) Finished Goods 5,00,000 5,50,000 Work-in-Progress 4,50,000 4,25,000 Stock-in-Trade 6,50,000 6,00,000

Answer» From the following information of Hospitality Ltd. for the year ended 31st March, 2018, calculate amount that will be shown in the Note to Accounts on Changes in inventiories of Finished Goods, WIP and stock-in-Trade:


Particluars	Opening Inventory (₹)	Closing inventory(₹)
Finished Goods	5,00,000	5,50,000
Work-in-Progress	4,50,000	4,25,000
Stock-in-Trade	6,50,000	6,00,000

Discussion

1491.	Alok Ltd. issued 7,000, 10% Debentures of ₹ 500 each at a premium of ₹ 50 per debenture redeemable at a premium of 10% after 5 years. According to the terms of issue, ₹ 200 was payable on application and balance on allotment.Record necessary Journal entries at the time of issue of 10% Debentures.
Answer» Alok Ltd. issued 7,000, 10% Debentures of ₹ 500 each at a premium of ₹ 50 per debenture redeemable at a premium of 10% after 5 years. According to the terms of issue, ₹ 200 was payable on application and balance on allotment. Record necessary Journal entries at the time of issue of 10% Debentures.

Discussion

1492.	If 'income' is Rs. 16,000 and 'deficit' is Rs. 4,300, then expenditure is—
Answer» If 'income' is Rs. 16,000 and 'deficit' is Rs. 4,300, then expenditure is—

Discussion

1493.	The newly emerging jobs are found mostly in the ____________ sector. (service / manufacturing)
Answer» The newly emerging jobs are found mostly in the ____________ sector. (service / manufacturing)

Discussion

1494.	Why did Sophie like her brother Geoff more than any other person? From her perspective, what did he symbolise?
Answer» Why did Sophie like her brother Geoff more than any other person? From her perspective, what did he symbolise?

Discussion

1495.	VT Ltd forfeited 200 shares of ₹ 10 each , issued at a premium of ₹ 5 per share , held by Mohan for non-payment of the final call of ₹ 3 per share . 100 out of these shares were reissued to Narendra at a discount of ₹ 4 per share . Journalise.
Answer» VT Ltd forfeited 200 shares of ₹ 10 each , issued at a premium of ₹ 5 per share , held by Mohan for non-payment of the final call of ₹ 3 per share . 100 out of these shares were reissued to Narendra at a discount of ₹ 4 per share . Journalise.

Discussion

1496.	Ram and Mohan are equal partners. Their capitals are ₹ 4,000 and ₹ 8,000 respectively. After the accounts for the year are prepared it is discovered that interest 5% p.a. on capital as provided in the Partnership Deed has not been credited to the Capital Accounts before distribution of profits. It is decided to make an adjusting entry in the beginning of the next year.Give necessary adjustment entry.
Answer» Ram and Mohan are equal partners. Their capitals are ₹ 4,000 and ₹ 8,000 respectively. After the accounts for the year are prepared it is discovered that interest 5% p.a. on capital as provided in the Partnership Deed has not been credited to the Capital Accounts before distribution of profits. It is decided to make an adjusting entry in the beginning of the next year. Give necessary adjustment entry.

Discussion

1497.	If a fixed amount is withdrawn on the first day of every quarter, the interest on the total amount of drawings shall be calculated for:
Answer» If a fixed amount is withdrawn on the first day of every quarter, the interest on the total amount of drawings shall be calculated for:

Discussion

1498.

Kanika and Gautam are partners doing a dry cleaning business in Lucknow, sharing profits in the ratio 2 : 1 with capitals ₹ 5,00,000 and ₹ 4,00,000 respectively. Kanika withdrew the following amounts during the year to pay the hostel expenses of her son: 1st April ₹ 10,000 1st June ₹ 9,000 1st November ₹ 14,000 1st December ₹ 5,000 Gautam withdrew ₹ 15,000 on the first day of April, July, October and January to pay rent for the accommodation of his family. He also paid ₹ 20,000 per month as rent for the office of partnership which was in a nearby shopping complex.Calculate interest on drawings 6% p.a.

Answer» Kanika and Gautam are partners doing a dry cleaning business in Lucknow, sharing profits in the ratio 2 : 1 with capitals ₹ 5,00,000 and ₹ 4,00,000 respectively. Kanika withdrew the following amounts during the year to pay the hostel expenses of her son:

1st April	₹ 10,000
1st June	₹ 9,000
1st November	₹ 14,000
1st December	₹ 5,000

Gautam withdrew ₹ 15,000 on the first day of April, July, October and January to pay rent for the accommodation of his family. He also paid ₹ 20,000 per month as rent for the office of partnership which was in a nearby shopping complex.

Calculate interest on drawings 6% p.a.

Discussion

1499.

Express the following in the scientific notation: (i) 0.0048 (ii) 234,000 (iii) 8008 (iv) 500.0 (v) 6.0012

Answer»

Express
the following in the scientific notation:

(i) 0.0048

(ii) 234,000

(iii) 8008

(iv) 500.0

(v) 6.0012

Discussion

1500.	Out of the issue price, only the __________ of the share is credited to the share capital.
Answer» Out of the issue price, only the __________ of the share is credited to the share capital.

Discussion

Explore topic-wise InterviewSolutions in .

Convert the followinginto basic units:(i) 28.7 pm(ii) 15.15 pm(iii) 25365 mg

Prepare accounting equation on the basis of the following:(a) Harsha started business with cash Rs 2,00,000(b) Purchased goods from Naman for cash Rs 40,000(c) Sold goods to Bhanu costing Rs 10,000/- Rs 12,000(d) Bought furniture on credit Rs 7,000

A trading firm’s average inventory is Rs 20,000 (cost). If the inventory turnover ratio is 8 times and the firm sells goods at a profit of 20% on sale, ascertain the profit of the firm.

Operating cost is equal to the ____________

Issue of preference shares can be classified as ___________.

Which of the following statement/s are used for financial analysis?

State Bank of India issued 20,000, 6% Debentures of Rs 50 each at a premium of 8% on June 30, 2010 redeemable on June 30, 2018. The issue was fully subscribed. Record necessary entries for issue and redemption of debentures.

What is meant by ‘Issue of debenture at discount and redeemable at premium?

Cash and cash equivalents are always classified under _____

Ravi and Mukesh are sharing profits in the ratio of 7 : 3. They admit Ashok for 3/7th share in the firm which he takes 2/7th from Ravi and 1/7th from Mukesh. Calculate new profit-sharing ratio.

The total revenue in Rupees received from the saleof x unitsof a product is given by Find the marginal revenue when x= 7.

Receipts and Payments A/c is a summary of -

2,000 Equity Shares of ₹ 10 each were issued to Limited from whom assets of ₹ 25,000 were acquired .Pass Journal entry.

Future Value after 2 year = 6,00,000. The rate is 10 %. What is Present value today?

If at the time of retirement of a partner, goodwill appears in the balance sheet of the firm, it will be written-off by debiting the capital accounts of ______

X, Y and Z are partners sharing profits and lossed equally. As per partnership Deed, Z is entitled to a commission of 10% on the net profit after charging such commission. The net profit before charging commission is ₹ 2,20,000.Determine the amount of commission payable to Z.

76.IF a number is reduced by 20% and then increased by 7.998%. Then find net profit or loss.

A and B are two partners in a firm with capital of Rs 10,000 and Rs 20,000 respectively. They admit C in firm for 1/4 the profits in the firm. C brings Rs 12,000 as his share of capital. What is the amount of goodwill ?

If 'income' is Rs. 16,000 and 'deficit' is Rs. 4,300, then expenditure is—

The newly emerging jobs are found mostly in the ____________ sector. (service / manufacturing)

Why did Sophie like her brother Geoff more than any other person? From her perspective, what did he symbolise?

VT Ltd forfeited 200 shares of ₹ 10 each , issued at a premium of ₹ 5 per share , held by Mohan for non-payment of the final call of ₹ 3 per share . 100 out of these shares were reissued to Narendra at a discount of ₹ 4 per share . Journalise.

If a fixed amount is withdrawn on the first day of every quarter, the interest on the total amount of drawings shall be calculated for:

Express the following in the scientific notation: (i) 0.0048 (ii) 234,000 (iii) 8008 (iv) 500.0 (v) 6.0012

Out of the issue price, only the __________ of the share is credited to the share capital.