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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.
| 1551. |
X, Y and Z are partners in a firm sharing profits and losses as 5 : 4 : 3 . Their Balance Sheet as at 31st March, 2018 was : Liabilities ₹ Assets ₹ Sundry Creditors 40,000 Cash at Bank 40,000 Outstanding Expenses 15,000 Sundry Debtors 2,10,000 General Reserve 75,000 Stock 3,00,000 Capital A/cs: Furniture 60,000 X 4,00,000 Plant and Machinery 4,20,000 Y 3,00,000 Z 2,00,000 9,00,000 10,30,000 10,30,000 From 1st April, 2018, they agree to alter their profit-sharing ratio as 4 : 3 : 2 .It is also decided that :(a) Furniture be taken at 80% of its value .(b) Stock be appreciated by 20%.(c) Plant and Machinery be valued at ₹ 4,00,000.(d) Outstanding Expenses be increased by ₹ 13,000.Partners agreed that altered values are not to be recorded in the books and they also do not want to distribute the General Reserve .You are required to pass a single journal entry to give effect to the above . Also, prepare Balance Sheet of the new firm. |
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Answer» X, Y and Z are partners in a firm sharing profits and losses as 5 : 4 : 3 . Their Balance Sheet as at 31st March, 2018 was :
From 1st April, 2018, they agree to alter their profit-sharing ratio as 4 : 3 : 2 .It is also decided that : (a) Furniture be taken at 80% of its value . (b) Stock be appreciated by 20%. (c) Plant and Machinery be valued at ₹ 4,00,000. (d) Outstanding Expenses be increased by ₹ 13,000. Partners agreed that altered values are not to be recorded in the books and they also do not want to distribute the General Reserve . You are required to pass a single journal entry to give effect to the above . Also, prepare Balance Sheet of the new firm. |
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| 1552. |
H Limited issued a prospectus inviting applications for 20,000 shares of ₹ 10 each at a premium of ₹ 2 per share payable as follows:On application ₹ 2 ; on allotment ₹ 5 (including premium) ; on first call ₹ 3 ; on second and final call ₹ 2. Applications were received for 30,000 shares and pro rata allotment was made on the applications for 24,000 shares. Money overpaid on applications was adjusted against amount due on allotment.Ramesh, to whom 400 shares were allotted , failed to pay the allotment money and on his subsequent failure to pay first call his shares were forfeited . Mohan , the holder of 600 shares, failed to pay two calls and his shares were forfeited after the second call.Of the shares forfeited, 800 shares were sold to Krishna credited as fully paid-up for ₹ 9 per share, the whole of Ramesh's shares being included .Pass journal entries and prepare the Balance Sheet. |
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Answer» H Limited issued a prospectus inviting applications for 20,000 shares of ₹ 10 each at a premium of ₹ 2 per share payable as follows: On application ₹ 2 ; on allotment ₹ 5 (including premium) ; on first call ₹ 3 ; on second and final call ₹ 2. Applications were received for 30,000 shares and pro rata allotment was made on the applications for 24,000 shares. Money overpaid on applications was adjusted against amount due on allotment. Ramesh, to whom 400 shares were allotted , failed to pay the allotment money and on his subsequent failure to pay first call his shares were forfeited . Mohan , the holder of 600 shares, failed to pay two calls and his shares were forfeited after the second call. Of the shares forfeited, 800 shares were sold to Krishna credited as fully paid-up for ₹ 9 per share, the whole of Ramesh's shares being included . Pass journal entries and prepare the Balance Sheet. |
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| 1553. |
Shares of a company are issued at _______. |
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Answer» Shares of a company are issued at _______. |
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| 1554. |
The following is theaccount of cash transactions of the Nari Kalayan Samittee for theyear ended December 31, 2006: Receipts Amount Rs Payments Amount Rs Balance from last year 2,270 Rent 6,600 Subscriptions 32,500 Electric charges 3,200 Life membership fee 3,250 Lecturer’s fee 730 Donation 2,500 Office expenses 1,480 Profit from entertainment 7,250 Printing and Stationery 1,050 Sale of old Books (books value Rs1,000) 750 Legal fee 1,870 Interest 350 Books 6,500 Furniture purchased 8,600 Expenses on Nukar Drama 1,300 Cash in Hand 8,040 Cash at Bank 9,500 48,870 48,870 You are required toprepare an Income and Expenditure Account after the followingadjustments: (a) Subscription still to be received are Rs 750, but subscription include Rs 500 for the year 2007. (b) In the beginning of the year the Sangh owned building Rs 20,000 and furniture Rs 3,000 and Books Rs 2,000. (c) Provide depreciation on furniture 5% (including purchase), books 10% and building 5%. |
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Answer» The following is the
You are required to
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| 1555. |
Anju, Manju and Sanju were partners in a firm sharing profits in the ratio of 2 : 2 : 1 . On 31st March, 2018, their Balance Sheet was: Liabilities ₹ Assets ₹ Creditors 50,000 Cash 60,000 Bank Loan 35,000 Debtors 75,000 Employees Provident Fund 15,000 Stock 40,000 Investments Fluctuation Reserve 10,000 Investments 20,000 Commission Received in Advance 8,000 Plant 50,000 Capital A/cs: Profit and Loss A/c 3,000 Anju 50,000 Manju 50,000 Sanju 30,000 1,30,000 2,48,000 2,48,000 On this date , the firm was dissolved . Anju was appointed to realise the assets . Anju was to receive 5% commission on the sale of assets (except cash) and was to bear all expenses of realisation .Anju realised the assets as follows : Debtors ₹ 60,000; Stock ₹ 35,500; Investments ₹ 16,000; Plant 90% of the book value . Expenses of Realisation amounted to ₹ 7,500. Commission received in advance was returned to customers after deducting ₹ 3,000.Firm had to pay ₹ 8,500 for Outstanding Salary, not provided for earlier , Compensation paid to employees amounted to ₹ 17,000. This liability was not provided for in the above Balance Sheet . ₹ 20,000 had to be paid for Employees' Provident Fund.Prepare Realisation Account , Capital Accounts of Partners and Cash Account. |
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Answer» Anju, Manju and Sanju were partners in a firm sharing profits in the ratio of 2 : 2 : 1 . On 31st March, 2018, their Balance Sheet was:
On this date , the firm was dissolved . Anju was appointed to realise the assets . Anju was to receive 5% commission on the sale of assets (except cash) and was to bear all expenses of realisation . Anju realised the assets as follows : Debtors ₹ 60,000; Stock ₹ 35,500; Investments ₹ 16,000; Plant 90% of the book value . Expenses of Realisation amounted to ₹ 7,500. Commission received in advance was returned to customers after deducting ₹ 3,000. Firm had to pay ₹ 8,500 for Outstanding Salary, not provided for earlier , Compensation paid to employees amounted to ₹ 17,000. This liability was not provided for in the above Balance Sheet . ₹ 20,000 had to be paid for Employees' Provident Fund. Prepare Realisation Account , Capital Accounts of Partners and Cash Account. |
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| 1556. |
150 shares of ₹ 10 each issued at a premium of ₹ 4 per share payable with allotment were forfeited for non-payment of allotment money of ₹ 8 per share including premium. The first and final call of ₹ 4 per Pass Journal entries in the books of X Ltd. for the above. |
| Answer» 150 shares of ₹ 10 each issued at a premium of ₹ 4 per share payable with allotment were forfeited for non-payment of allotment money of ₹ 8 per share including premium. The first and final call of ₹ 4 per Pass Journal entries in the books of X Ltd. for the above. | |
| 1557. |
Prepare Cash Flow Statement from the following Balance Sheet: Particulars ulars Note No. 31st March, 2013 (₹) 31st March, 2012 (₹) I. EQUITY AND LIABILITIES 1. Shareholders' Funds (a) Share Capital 6,00,000 5,00,000 (b) Reserves and Surplus 1 4,00,000 2,00,000 2. Current Liabilities (a) Trade Payables 2,80,000 1,80,000 Total Total Expenses 12,80,000 8,80,000 II. ASSETS 1, Non-Current Assets (a) Fixed Assets: Plant and Machinery 5,00,000 3,00,000 2. Current Assets (a) Inventories 1,00,000 1,50,000 (b) Trade Receivables 6,00,000 4,00,000 (c) Cash and Cash Equivalents 80,000 30,000 Total 12,80,000 8,80,000 Notes to Accounts Particulars 31st March, 2013 (₹) 31st March, 2012 (₹) I. Reserves and Surplus Surplus, i.e., Balance in Statement of Profit and Loss 4,00,000 2,00,000 Additional Information:(i) An old machinery having book value of ₹50,000 was sold for ₹60,000.(ii) Depreciation provided on Machinery during the year was ₹30,000. |
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Answer» Prepare Cash Flow Statement from the following Balance Sheet:
Notes to Accounts
Additional Information: (i) An old machinery having book value of ₹50,000 was sold for ₹60,000. (ii) Depreciation provided on Machinery during the year was ₹30,000. |
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| 1558. |
Following is the Balance Sheet of Arvind and Balbir as at 31st March,2018: Liabilities Amount (₹) Assets Amount (₹) Trade Creditors 45,000 Cash 750 Bills Payable 12,000 Bank 12,000 Mrs. Arvind's Loan 7,500 Stock 7,500 Mrs. Balbir's Loan 15,000 Investments 15,000 Reserve Fund 15,000 Book Debts 30,000 Investments Fluctuation Reserve 1,500 Less: Provision for D. Debts 3,000 27,000 Capital A/cs: Building 22,500 Arvind 15,000 Plant 30,000 Balbir 15,000 30,000 Goodwill 6,000 Profit and Loss A/c 5,250 1,26,000 1,26,000 The firm was dissolved on the above date under the following arrangement:(a) Arvind promised to pay off Mrs. Arvind's Loan and took Stock at ₹ 6,000.(b) Balbir took half the Investments 10% discount.(c) Book Debts realised ₹ 28,500.(d) Trade Creditors and Bills Payable were due on average basis of one month after 31st March,but were paid immediately on 31st March 2% discount per annum.(e) Plant realised ₹ 37,500; Building ₹ 60,000; Goodwill ₹ 9,000 and remaining Investments ₹ 6,750.(f) An old typewriter , written off completely from the firm's books,now estimated to realise ₹ 450 . It was taken by Balbir at this estimated price.(g) Realisation expenses were ₹ 1,500.Show Realisation Account , Capital Accounts of Partners and Bank Account. |
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Answer» Following is the Balance Sheet of Arvind and Balbir as at 31st March,2018:
The firm was dissolved on the above date under the following arrangement: (a) Arvind promised to pay off Mrs. Arvind's Loan and took Stock at ₹ 6,000. (b) Balbir took half the Investments 10% discount. (c) Book Debts realised ₹ 28,500. (d) Trade Creditors and Bills Payable were due on average basis of one month after 31st March,but were paid immediately on 31st March 2% discount per annum. (e) Plant realised ₹ 37,500; Building ₹ 60,000; Goodwill ₹ 9,000 and remaining Investments ₹ 6,750. (f) An old typewriter , written off completely from the firm's books,now estimated to realise ₹ 450 . It was taken by Balbir at this estimated price. (g) Realisation expenses were ₹ 1,500. Show Realisation Account , Capital Accounts of Partners and Bank Account. |
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| 1559. |
Reliance Ltd. purchased machinery costing ₹ 1,35,000 . It was agreed that the purchase consideration be paid by issuing 9% Debentures of ₹ 100 each . Assume debentures have been issued(i) at par and(ii)at a discount of 10%.Give necessary journal entries. |
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Answer» Reliance Ltd. purchased machinery costing ₹ 1,35,000 . It was agreed that the purchase consideration be paid by issuing 9% Debentures of ₹ 100 each . Assume debentures have been issued (i) at par and (ii)at a discount of 10%. Give necessary journal entries. |
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| 1560. |
Prepare a format of cash flow from operating activities under direct method. |
| Answer» Prepare a format of cash flow from operating activities under direct method. | |
| 1561. |
When all the partners agree to dissolve the firm, it is known as ___ |
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Answer» When all the partners agree to dissolve the firm, it is known as |
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| 1562. |
Kangaroo Ltd. issued 5,000, 8% Debentures of ₹ 100 each at a discount of 8%. The company decided to write off discount in the year of loss from Capital Reserve which has a balance of ₹ 1,00,000. Pass the journal entry for writing off discount. |
| Answer» Kangaroo Ltd. issued 5,000, 8% Debentures of ₹ 100 each at a discount of 8%. The company decided to write off discount in the year of loss from Capital Reserve which has a balance of ₹ 1,00,000. Pass the journal entry for writing off discount. | |
| 1563. |
A and B are in partnership sharing profits and losses in the proportion of 2/3rd and 1/3rd respectively . Their Balance Sheet as at 31st March, 2018 was: Cash ₹ 1,000; Sundry Debtors ₹ 15,000; Stock ₹ 22,000; Plant and Machinery ₹ 4,000; Sundry Creditors ₹ 2,000; Bank Overdraft ₹ 15,000; A's Capital ₹ 15,000; B's Capital ₹ 10,000. On 1st April, 2018 they admitted into partnership on the following terms:(a) C to purchase one-quarter of the goodwill for ₹ 3,000 and provide ₹ 10,000 as capital . C brings in necessary cash for goodwill and capital.(b) Profits and Losses are to be shared in the proportion of one-half to A , one-quarter to B and one quarter to C .(c) Plant and Machinery is to be reduced by 10% and ₹ 500 are to be provided for estimated Bad Debts. Stock is to be taken at a valuation of ₹ 24,940.(d) By bringing in or withdrawing cash the capitals of A and B are to be made proportionate to that of C on their profit-sharing basis.Prepare necessary Ledger Accounts in the books of the firm relating to the above arrangement and submit the opening Balance Sheet of the new firm. |
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Answer» A and B are in partnership sharing profits and losses in the proportion of 2/3rd and 1/3rd respectively . Their Balance Sheet as at 31st March, 2018 was: Cash ₹ 1,000; Sundry Debtors ₹ 15,000; Stock ₹ 22,000; Plant and Machinery ₹ 4,000; Sundry Creditors ₹ 2,000; Bank Overdraft ₹ 15,000; A's Capital ₹ 15,000; B's Capital ₹ 10,000. On 1st April, 2018 they admitted into partnership on the following terms: (a) C to purchase one-quarter of the goodwill for ₹ 3,000 and provide ₹ 10,000 as capital . C brings in necessary cash for goodwill and capital. (b) Profits and Losses are to be shared in the proportion of one-half to A , one-quarter to B and one quarter to C . (c) Plant and Machinery is to be reduced by 10% and ₹ 500 are to be provided for estimated Bad Debts. Stock is to be taken at a valuation of ₹ 24,940. (d) By bringing in or withdrawing cash the capitals of A and B are to be made proportionate to that of C on their profit-sharing basis. Prepare necessary Ledger Accounts in the books of the firm relating to the above arrangement and submit the opening Balance Sheet of the new firm. |
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| 1564. |
From the following information, calculate Change in Inventory of Stock-in-Trade: Opening and Closing Stock-in-Trade ₹5,00,000 and ₹4,50,000 respectively. |
| Answer» From the following information, calculate Change in Inventory of Stock-in-Trade: Opening and Closing Stock-in-Trade ₹5,00,000 and ₹4,50,000 respectively. | |
| 1565. |
The books of Ram and Bharat showed that the capital employed on 31.12.2016 was Rs. 5,00,000 and the profits for the last 5 years : 2015 Rs. 40,000; 2014 Rs. 50,000; 2013 Rs. 55,000; 2012 Rs. 70,000 and 2011 Rs. 85,000. Calculate the value of goodwill on the basis of 3 years purchase of the average super profits of the last 5 years assuming that the normal rate of return is 10%? |
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Answer» The books of Ram and Bharat showed that the capital employed on 31.12.2016 was Rs. 5,00,000 and the profits for the last 5 years : 2015 Rs. 40,000; 2014 Rs. 50,000; 2013 Rs. 55,000; 2012 Rs. 70,000 and 2011 Rs. 85,000. Calculate the value of goodwill on the basis of 3 years purchase of the average super profits of the last 5 years assuming that the normal rate of return is 10%? |
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| 1566. |
X and Y are partners sharing profits and losses in the ratio of 3/4 and 1/4. Their Balance Sheet as at 31st March, 2019 is: Liabilities ₹ Assets ₹ Capital A/cs: Land and Building 1,25,000 X 1,50,000 Furniture 5,000 Y 80,000 2,30,000 Stock 1,00,000 Workmen Compensation Reserve 20,000 Sundry Debtors 80,000 Sundry Creditors 1,50,000 Bills Receivable 15,000 Bills Payable 37,500 Cash at Bank 1,00,000 Cash in Hand 12,500 4,37,500 4,37,500 They admit Z into partnership on 1st April, 2019 on the following terms:(a) Goodwill is to be valued at ₹ 1,00,000.(b) Stock and Furniture to be reduced by 10%.(c) A Provision for Doubtful Debts is to be created 5% on Sundry Debtors.(d) The value of Land and Building is to be appreciated by 20%.(e) Z pays ₹ 50,000 as his capital for 1/5th share in the future profits.You are required to show Revaluation Account, Partners' Capital Accounts and Balance Sheet of the new firm. |
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Answer» X and Y are partners sharing profits and losses in the ratio of 3/4 and 1/4. Their Balance Sheet as at 31st March, 2019 is:
They admit Z into partnership on 1st April, 2019 on the following terms: (a) Goodwill is to be valued at ₹ 1,00,000. (b) Stock and Furniture to be reduced by 10%. (c) A Provision for Doubtful Debts is to be created 5% on Sundry Debtors. (d) The value of Land and Building is to be appreciated by 20%. (e) Z pays ₹ 50,000 as his capital for 1/5th share in the future profits. You are required to show Revaluation Account, Partners' Capital Accounts and Balance Sheet of the new firm. |
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| 1567. |
A share is the ___of a member in a company. |
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Answer» A share is the |
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| 1568. |
Legacies are shown as a/an _________. |
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Answer» Legacies are shown as a/an _________. |
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| 1569. |
Proprietary ratio is expressed in terms of ___ |
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Answer» Proprietary ratio is expressed in terms of |
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| 1570. |
From the following information, calculate amount of subscriptions outstanding for the year ended 31st March, 2019:A club has 200 members each paying an annual subscription of ₹ 1,000. The Receipts and Payments Account for the year showed a sum of ₹ 2,05,000 received as subscriptions. The following additional information is provided : ₹ Subscriptions Outstanding on 31st March, 2018 30,000 Subscriptions Received in Advance on 31st March, 2019 40,000 Subscriptions Received in Advance on 31st March, 2018 14,000 |
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Answer» From the following information, calculate amount of subscriptions outstanding for the year ended 31st March, 2019: A club has 200 members each paying an annual subscription of ₹ 1,000. The Receipts and Payments Account for the year showed a sum of ₹ 2,05,000 received as subscriptions. The following additional information is provided :
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| 1571. |
Cost of Goods Sold is Rs. 1,50,000, Operating expenses are Rs. 60,000. Sales is Rs. 2,60,000 and Sales Return is 10,000. Calculate Operating Ratio. |
| Answer» Cost of Goods Sold is Rs. 1,50,000, Operating expenses are Rs. 60,000. Sales is Rs. 2,60,000 and Sales Return is 10,000. Calculate Operating Ratio. | |
| 1572. |
Ram, Mohan and Sohan are partners with capitals of Rs 5,00,000, Rs 2,50,000 and 2,00,000 respectively. After providing interest on capital 10% p.a. the profits are divisible as follows:Ram 1/2 , Mohan 1/3 Sohan 1/6 . But Ram and Mohan have guaranteed that Sohan’s share in the profit shall not be less than Rs 25,000, in any year. The net profit for the year ended March 31, 2017 is Rs 2,00,000, before charging interest on capital. You are required to show distribution of profit. |
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Answer» Ram, Mohan and Sohan are partners with capitals of Rs 5,00,000, Rs 2,50,000 and 2,00,000 respectively. After providing interest on capital 10% p.a. the profits are divisible as follows: Ram 1/2 , Mohan 1/3 Sohan 1/6 . But Ram and Mohan have guaranteed that Sohan’s share in the profit shall not be less than Rs 25,000, in any year. The net profit for the year ended March 31, 2017 is Rs 2,00,000, before charging interest on capital. You are required to show distribution of profit. |
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| 1573. |
Bills Receivable is a: |
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Answer» Bills Receivable is a: |
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| 1574. |
A limited company made Credit Sales of ₹ 4,00,000 during the financial period. If the collection period is 36 days and year is assumed to be 360 days, calculate:(i) Trade Receivables Turnover Ratio;(ii) Average Trade Receivables;(iii) Trade Receivables at the end when Trade Receivables at the end are more than that in the beginning by ₹ 6,000. |
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Answer» A limited company made Credit Sales of ₹ 4,00,000 during the financial period. If the collection period is 36 days and year is assumed to be 360 days, calculate: (i) Trade Receivables Turnover Ratio; (ii) Average Trade Receivables; (iii) Trade Receivables at the end when Trade Receivables at the end are more than that in the beginning by ₹ 6,000. |
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| 1575. |
Following was the Balance Sheet of A and B who were sharing profits in the ratio of 2 : 1 as at 31st March, 2019: Liabilities ₹ Assets ₹ Capital A/cs: Building 25,000 A 15,000 Plant and Machinery 17,500 B 10,000 25,000 Stock 10,000 Sundry Creditors 32,950 Sundry Debtors 4,850 Cash in Hand 600 57,950 57,950 They admit C into partnership on the following terms:(a) C was to bring ₹ 7,500 as his capital and ₹ 3,000 as goodwill for 1/4th share in the firm.(b) Values of the Stock and Plant and Machinery were to be reduced by 5%.(c) A Provision for Doubtful Debts was to be created in respect of Sundry Debtor ₹ 375.(d) Building was to be appreciated by 10%.Pass necessary Journal entries to give effect to the arrangements. Prepare Profit and Loss Adjustment Account (or Revaluation Account), Partners' Capital Accounts and Balance Sheet of the new firm. |
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Answer» Following was the Balance Sheet of A and B who were sharing profits in the ratio of 2 : 1 as at 31st March, 2019:
They admit C into partnership on the following terms: (a) C was to bring ₹ 7,500 as his capital and ₹ 3,000 as goodwill for 1/4th share in the firm. (b) Values of the Stock and Plant and Machinery were to be reduced by 5%. (c) A Provision for Doubtful Debts was to be created in respect of Sundry Debtor ₹ 375. (d) Building was to be appreciated by 10%. Pass necessary Journal entries to give effect to the arrangements. Prepare Profit and Loss Adjustment Account (or Revaluation Account), Partners' Capital Accounts and Balance Sheet of the new firm. |
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| 1576. |
A and B are partners from 1st April, 2017, without a Partnership Deed and they introduced capitals of ₹ 35,000 and ₹ 20,000 respectively. On 1st October, 2017, A advances a loan of ₹ 8,000 to the firm without any agreement as to interest. The profit and Loss Account for the year ended 31st March, 2018 shows a profit of ₹ 15,000 but the partners cannot agree on payment of interest and on the basis of division of profits.You are required to divide the profits between them giving reasons for your method. |
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Answer» A and B are partners from 1st April, 2017, without a Partnership Deed and they introduced capitals of ₹ 35,000 and ₹ 20,000 respectively. On 1st October, 2017, A advances a loan of ₹ 8,000 to the firm without any agreement as to interest. The profit and Loss Account for the year ended 31st March, 2018 shows a profit of ₹ 15,000 but the partners cannot agree on payment of interest and on the basis of division of profits. You are required to divide the profits between them giving reasons for your method. |
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| 1577. |
Subscription received during the year is Rs 50,000; Subscriptions outstanding at the end of the year Rs 8,000; Subscription received in advance in previous year is Rs 6,000. Out of Rs. 6,000, 2,000 pertains to the next year. Net Income from subscription for the year will be _____ |
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Answer» Subscription received during the year is Rs 50,000; Subscriptions outstanding at the end of the year Rs 8,000; Subscription received in advance in previous year is Rs 6,000. Out of Rs. 6,000, 2,000 pertains to the next year. Net Income from subscription for the year will be _____ |
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| 1578. |
On 1st April, 2013 the following balances appeared in the books of Blue and Green Ltd.:12%Debentures (Redeemable on 31st August, 2015) ₹ 20,00,000Debentures Redemption Reserve ₹ 2,00,000.The company met the requirements of Companies Act, 2013 regarding Debentures Redemption Reserve and Debentures Redemption Investments and redeemed the debentures.Ignoring interest on investments, pass necessary journal entries for the above transactions in the books of company. |
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Answer» On 1st April, 2013 the following balances appeared in the books of Blue and Green Ltd.: 12%Debentures (Redeemable on 31st August, 2015) ₹ 20,00,000 Debentures Redemption Reserve ₹ 2,00,000. The company met the requirements of Companies Act, 2013 regarding Debentures Redemption Reserve and Debentures Redemption Investments and redeemed the debentures. Ignoring interest on investments, pass necessary journal entries for the above transactions in the books of company. |
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| 1579. |
A, B and C are partners in a firm, sharing profits and losses as A 1/3, B 1/2 and C 1/6 respectively. The Balance Sheet of the firm as at 31st March, 2019 was: Liabilities ₹ Assets ₹ Capital A/cs: Building 50,000 A 30,000 Plant and Machinery 40,000 B 40,000 Furniture 10,000 C 25,000 95,000 Stock 25,000 General Reserve 16,000 Debtors 18,000 Sundry Creditors 25,000 Less: Provision for Doubtful Debts 500 17,500 Loan Payable 15,000 Cash in Hand 8,500 1,51,000 1,51,000 C retires on 1st April, 2019 subject to the following adjustments:(a) Goodwill of the firm be valued at ₹ 24,000. C's share of goodwill be adjusted into the accounts of A and B who are going to share in future in the ratio of 3 : 2.(b) Plant and Machinery to be reduced by 10% and Furniture by 5%.(c) Stock to be appreciated by 15% and Building by 10%.(d) Provision for Doubtful Debts to be raised to ₹ 2,000.Pass Journal entries to record the above transactions in the books of the firm and show the Profit and Loss Adjustment Account, Capital Account of C and the Balance Sheet of the firm after C's retirement. |
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Answer» A, B and C are partners in a firm, sharing profits and losses as A 1/3, B 1/2 and C 1/6 respectively. The Balance Sheet of the firm as at 31st March, 2019 was:
C retires on 1st April, 2019 subject to the following adjustments: (a) Goodwill of the firm be valued at ₹ 24,000. C's share of goodwill be adjusted into the accounts of A and B who are going to share in future in the ratio of 3 : 2. (b) Plant and Machinery to be reduced by 10% and Furniture by 5%. (c) Stock to be appreciated by 15% and Building by 10%. (d) Provision for Doubtful Debts to be raised to ₹ 2,000. Pass Journal entries to record the above transactions in the books of the firm and show the Profit and Loss Adjustment Account, Capital Account of C and the Balance Sheet of the firm after C's retirement. |
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| 1580. |
X and Y were partners sharing profits and losses in the ratio of 3 : 2 . They decided to dissolve the firm on 31st March,2018 . On that date , their Capitals were X—₹ 40,000 and Y —₹ 30,000. Creditors amounted to ₹ 24,000.Assets were realised for ₹ 88,500. Creditors of ₹ 16,000 were taken over by X at ₹ 14,000. Remaining Creditors were paid at ₹ 76,500. The cost of realisation came to ₹ 500.Prepare necessary accounts. |
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Answer» X and Y were partners sharing profits and losses in the ratio of 3 : 2 . They decided to dissolve the firm on 31st March,2018 . On that date , their Capitals were X₹ 40,000 and Y ₹ 30,000. Creditors amounted to ₹ 24,000. Assets were realised for ₹ 88,500. Creditors of ₹ 16,000 were taken over by X at ₹ 14,000. Remaining Creditors were paid at ₹ 76,500. The cost of realisation came to ₹ 500. Prepare necessary accounts. |
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| 1581. |
X, Y and Z are sharing profits and losses in the ratio of 5 : 3 : 2. With effect from 1st April, 2019, they decide to share profits and losses in the ratio of 5 : 2 : 3. Calculate each partner's gain or sacrifice due to the change in ratio. |
| Answer» X, Y and Z are sharing profits and losses in the ratio of 5 : 3 : 2. With effect from 1st April, 2019, they decide to share profits and losses in the ratio of 5 : 2 : 3. Calculate each partner's gain or sacrifice due to the change in ratio. | |
| 1582. |
a shopkeeper earns a profit of re 1 by selling 1 pen and incurs a loss of40 paise per pencil while selling pencil of her old stock. in a particular month she incurs a loss of rs 5. in amonth she earns neither profit nor loss . is she sold 70 pens , how much pencil did she sell? |
| Answer» a shopkeeper earns a profit of re 1 by selling 1 pen and incurs a loss of40 paise per pencil while selling pencil of her old stock. in a particular month she incurs a loss of rs 5. in amonth she earns neither profit nor loss . is she sold 70 pens , how much pencil did she sell? | |
| 1583. |
A and B started a business in partnership investing Rs. 20000 and Rs. 15000 respectively. After six months, C joined them with Rs. 20000. What will be B′s share in total profit of Rs. 25000 earned at the end of 2 years from the starting of the business? |
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Answer» A and B started a business in partnership investing Rs. 20000 and Rs. 15000 respectively. After six months, C joined them with Rs. 20000. What will be B′s share in total profit of Rs. 25000 earned at the end of 2 years from the starting of the business? |
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| 1584. |
A shopkeeper buys two TV sets of the same type he sells one of them at profit of 20% and other at a loss of 5% if the difference in selling price of the two TV sets is rupees 700 find the cost price of each tv set |
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Answer» A shopkeeper buys two TV sets of the same type he sells one of them at profit of 20% and other at a loss of 5% if the difference in selling price of the two TV sets is rupees 700 find the cost price of each tv set |
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| 1585. |
Following is the Receipt and Payment account of Rohatgi Trust : Receipt and Payment Account for the year ending December 31, 2017 Receipts Amount Rs Payments Amount Rs Cash in hand 14,000 Rent 6,000 Cash at Bank 60,000 Salary 12,000 Subscriptions: 2016 2017 2018 5,000 83,000 3,000 91,000 Postage Electricity charges Purchase of furniture Books 300 6,000 20,000 3,000 Sale of Investment 90,000 Defence Bonds 1,50,000 Interest on investment 2,000 Help to needy students 22,000 Sale of furniture (book value Rs 3,000) 3,200 Cash in hand Cash at bank 10,900 30,000 2,60,200 2,60,200 Prepare Income and expenditure account for the year ended December 31, 2017, and a balance sheet as on that date after the following adjustments: Subscription for 2017, still owing were Rs 7,000. Interest due on defence bonds was Rs7,000, Rent still owing was Rs 1,000. The Book value of investment sold was Rs 80,000, Rs 30,000 of the investment were still in hand. Subscription received in 2017 included Rs 400 from a life member. The total furniture on January 1, 2017 was worth Rs 12,000. Salary paid for the year 2018 is Rs 2,000. |
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Answer» Following is the Receipt and Payment account of Rohatgi Trust :
Prepare Income and expenditure account for the year ended December 31, 2017, and a balance sheet as on that date after the following adjustments: Subscription for 2017, still owing were Rs 7,000. Interest due on defence bonds was Rs7,000, Rent still owing was Rs 1,000. The Book value of investment sold was Rs 80,000, Rs 30,000 of the investment were still in hand. Subscription received in 2017 included Rs 400 from a life member. The total furniture on January 1, 2017 was worth Rs 12,000. Salary paid for the year 2018 is Rs 2,000. |
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| 1586. |
X & Y are partners sharing profit in the ratio of 3: 2. Z is admitted as a new partner with 1/5th share which is acquired 1/8th from X & 1/24th from Y. What shall be the sacrificing ratio ? |
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Answer» X & Y are partners sharing profit in the ratio of 3: 2. Z is admitted as a new partner with 1/5th share which is acquired 1/8th from X & 1/24th from Y. What shall be the sacrificing ratio ? |
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| 1587. |
Rajesh and Ravi are partners sharing profits in the ratio of 3: 2 . Their Balance Sheet at 31st March , 2018 stood as: BALANCE SHEET as at 31st March, 2018 Liabilities ₹ Assets ₹ Creditors 38,500 Cash 2,000 Outstanding Rent 4,000 Stock 15,000 Capital A/cs: Prepaid Insurance 1,500 Debtors 9,400 Less : Provision for D.D. 400 9,000 Rajesh 29,000 Ravi 15,000 44,000 Machinery 19,000 Building 35,000 Furniture 5,000 86,500 86,500 Raman is admitted as a new partner introducing a capital of ₹ 16,000. The new profit-sharing ratio is decided as 5 : 3 : 2 . Raman is unable to bring in any cash for goodwill . So it is decided to value the goodwill on the basis of Raman's share in the profits and the capital contributed by him. Following revaluation s are made (a) Stock to depreciate by 5% ;(b) Provision for Doubtful Debts is to be ₹ 500;(c) Furniture to depreciate by 10% ;(d) Building is valued at ₹ 40,000.Show necessary Ledger Accounts and Balance Sheet of new firm. |
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Answer» Rajesh and Ravi are partners sharing profits in the ratio of 3: 2 . Their Balance Sheet at 31st March , 2018 stood as:
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| 1588. |
What is a Realisation Account? |
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Answer» What is a Realisation Account? |
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| 1589. |
Eastern Company Limited, having an authorised capital of Rs 10,00,000 in shares of Rs 10 each, issued 50,000 shares at a premium of Rs 3 per share payable as follows : On Application Rs 3 per share On Allotment (including premium) Rs 5 per share On first call (due three months after allotment) and the balance as and when required. Rs 3 per share Applications were received for 60,000 shares and the directors allotted the shares as follows :(a) Applicants for 40,000 shares received shares, in full.(b) Applicants for 15,000 shares received an allotment of 8,000 shares.(c) Applicants for 500 shares received 200 shares on allotment, excess money being returned. All amounts due on allotment were received.The first call was duly made and the money was received with the exception of the call due on 100 shares.Give journal and cash book entries to record these transactions of the company. Also prepare the Balance Sheet of the company. |
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Answer» Eastern Company Limited, having an authorised capital of Rs 10,00,000 in shares of Rs 10 each, issued 50,000 shares at a premium of Rs 3 per share payable as follows :
Applications were received for 60,000 shares and the directors allotted the shares as follows : (a) Applicants for 40,000 shares received shares, in full. (b) Applicants for 15,000 shares received an allotment of 8,000 shares. (c) Applicants for 500 shares received 200 shares on allotment, excess money being returned.
All amounts due on allotment were received. The first call was duly made and the money was received with the exception of the call due on 100 shares. Give journal and cash book entries to record these transactions of the company. Also prepare the Balance Sheet of the company.
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| 1590. |
Nithya, Sathya and Mithya were partners sharing profits and losses in the ratio of 5:3:2. Their Balance Sheet as on March 31, 2015 was as follows: Books of Nithya, Sathya and Mithya Balance Sheet at March 31, 2015 Liabilities Amount Rs Assets Amount Rs Creditors 14,000 Investments 10,000 Reserve Fund 6,000 Goodwill 5,000 Capitals: Premises 20,000 Nithya 30,000 Patents 6,000 Sathya 30,000 Machinery 30,000 Mithya 20,000 80,000 Stock 13,000 Debtors 8,000 Bank 8,000 1,00,000 1,00,000 Mithya dies on August 1, 2015. The agreement between the executors of Mithya and the partners stated that:(a) Goodwill of the firm be valued at times the average profits of last four years. The profits of four years were : in 2011-12, Rs 13,000; in 2012-13, Rs 12,000; in 2013-14, Rs 16,000; and in 2014-15, Rs 15,000.(b) The patents are to be valued at Rs 8,000, Machinery at Rs 25,000 and Premises at Rs 25,000.(c) The share of profit of Mithya should be calculated on the basis of the profit of 2014-15.(d) Rs 4,200 should be paid immediately and the balance should be paid in 4 equal half-yearly instalments carrying interest 10%.Record the necessary journal entries to give effect to the above and write the executor’s account till the amount is fully paid. Also prepare the Balance Sheet of Nithya and Sathya as it would appear on August 1, 2015 after giving effect to the adjustments. |
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Answer» Nithya, Sathya and Mithya were partners sharing profits and losses in the ratio of 5:3:2. Their Balance Sheet as on March 31, 2015 was as follows:
Mithya dies on August 1, 2015. The agreement between the executors of Mithya and the partners stated that: (a) Goodwill of the firm be valued at (b) The patents are to be valued at Rs 8,000, Machinery at Rs 25,000 and Premises at Rs 25,000. (c) The share of profit of Mithya should be calculated on the basis of the profit of 2014-15. (d) Rs 4,200 should be paid immediately and the balance should be paid in 4 equal half-yearly instalments carrying interest 10%. Record the necessary journal entries to give effect to the above and write the executor’s account till the amount is fully paid. Also prepare the Balance Sheet of Nithya and Sathya as it would appear on August 1, 2015 after giving effect to the adjustments. |
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| 1591. |
From the following information, calculate value of goodwill of the firm by applying Capitalisation Method: Total Capital of the firm ₹ 16,00,000.Normal rate of return 10%. Profit for the year ₹ 2,00,000. |
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Answer» From the following information, calculate value of goodwill of the firm by applying Capitalisation Method: Total Capital of the firm ₹ 16,00,000. Normal rate of return 10%. Profit for the year ₹ 2,00,000. |
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| 1592. |
Explain in detail about the significance of the financial statements. |
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Answer» Explain in detail about the significance of the financial statements. |
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| 1593. |
Kumar, Verma and Naresh were partners in a firm sharing Profit and Loss in the ratio of 3 : 2 : 2. On 23rd January, 2015 Verma died. Verma's share of profit till the date of his death was calculated at ₹ 2,350. Pass necessary Journal entry for the same in the books of the firm. |
| Answer» Kumar, Verma and Naresh were partners in a firm sharing Profit and Loss in the ratio of 3 : 2 : 2. On 23rd January, 2015 Verma died. Verma's share of profit till the date of his death was calculated at ₹ 2,350. Pass necessary Journal entry for the same in the books of the firm. | |
| 1594. |
Income and expenditure account is based on ___ |
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Answer» Income and expenditure account is based on |
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| 1595. |
Ashok, Brijesh and Cheena are partners sharing profits and losses in the ratio of 2 : 2 : 1. Ashok and Brijesh have guaranteed that Cheena share in any year shall be less than Rs 20,000. The net profit for the year ended March 31, 2017 amounted to Rs 70,000. Prepare Profit and Loss Appropriation Account. |
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Answer» Ashok, Brijesh and Cheena are partners sharing profits and losses in the ratio of 2 : 2 : 1. Ashok and Brijesh have guaranteed that Cheena share in any year shall be less than Rs 20,000. The net profit for the year ended March 31, 2017 amounted to Rs 70,000. Prepare Profit and Loss Appropriation Account. |
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| 1596. |
Can we transfer the ownership we hold by selling the share at a higher price than our purchase price? |
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Answer» Can we transfer the ownership we hold by selling the share at a higher price than our purchase price? |
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| 1597. |
Total income is computed as _______________ and other income. |
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Answer» Total income is computed as _______________ and other income. |
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| 1598. |
Shareholders' Fund include |
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Answer» Shareholders' Fund include |
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| 1599. |
B.Ltd., issued 1,000, 12% Debentures of Rs. 100 each on January 1, 2015 at a discount of 5% redeemable at par. Give Journal entries relating to the issue of debentures and debentures interest for the period ending December 31, 2015 assuming that interest is paid half yearly on June 30 and December 31 and tax deducted at source is 10%. B. Ltd., follows calendar year as its accounting year. |
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Answer» B.Ltd., issued 1,000, 12% Debentures of Rs. 100 each on January 1, 2015 at a discount of 5% redeemable at par. Give Journal entries relating to the issue of debentures and debentures interest for the period ending December 31, 2015 assuming that interest is paid half yearly on June 30 and December 31 and tax deducted at source is 10%. B. Ltd., follows calendar year as its accounting year. |
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| 1600. |
Rectify the following entries assuming that the narration in each case is correct: Date Particulars L.F. Amount Dr. (Rs) Amount Cr. (Rs) 2017 May 04 Building A/c Dr. 5,00,000 Brokerage A/c Dr. 10,000 To Bank A/c 5,10,000 (Purchase of building and payment of brokerage on its purchase) May 10 Drawings A/c Dr. 12,000 To Sales A/c 12,000 (Goods taken away by the proprietor for personal use) May 16 Filing Cabinet A/c Dr. 4,000 Electric Fan A/c Dr. 2,500 To Cash A/c 6,500 (Purchase of filing cabinet and an electric fan) May 18 Cash A/c Dr. 8,730 To Sales A/c 8,730 (Goods worth ₹ 10,000 sold at 10% trade discount and 3% cash discount) May 20 Bank A/c Dr. 10,000 To Naresh 10,000 (Receipt of 25 paise per rupee from the estate of Naresh who is declared insolvent) May 31 Bank Charges A/c Dr. 150 To Cash A/c 150 (Charges made by bank for its services) |
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Answer» Rectify the following entries assuming that the narration in each case is correct:
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times the average profits of last four years. The profits of four years were : in 2011-12, Rs 13,000; in 2012-13, Rs 12,000; in 2013-14, Rs 16,000; and in 2014-15, Rs 15,000.