3267 + Interview Questions in Accountancy Page 4 InterviewSolution

151.	Distinguish between Functional and Divisional organisational structure on the basis of the following : (i) Meaning (ii) Communication (iii) Decision - making authority (iv) Use of resources
Answer» Distinguish between Functional and Divisional organisational structure on the basis of the following : (i) Meaning (ii) Communication (iii) Decision - making authority (iv) Use of resources

151.

Distinguish between Functional and Divisional organisational structure on the basis of the following : (i) Meaning (ii) Communication (iii) Decision - making authority (iv) Use of resources

Answer»

Distinguish between Functional and Divisional organisational structure on the basis of the following :

(i) Meaning
(ii) Communication
(iii) Decision - making authority
(iv) Use of resources

152.	Shiva Ltd . issued 1,00,000 Equity Shares of ₹ 10 each at a premium of ₹ 5 per share . The whole amount was payable on application. The issue was fully subscribed . Pass necessary Journal entries.
Answer» Shiva Ltd . issued 1,00,000 Equity Shares of ₹ 10 each at a premium of ₹ 5 per share . The whole amount was payable on application. The issue was fully subscribed . Pass necessary Journal entries.

Discussion

153.	From the following information calculate (i) Gross Profit Ratio (ii) Inventory Turnover Ratio (iii) Current Ratio (iv) Liquid Ratio (v) Net Profit Ratio (vi) Working Capital Ratio ItemsRs. Sales25,20,000Net Profit3,60,000Cost of Sales19,20,000Long term Debts9,00,000Creditors2,00,000Average Inventory8,00,000Current Assets7,60,000Fixed Assets14,40,000Current Liabillities6,00,000Net Profit Before Interest and Tax8,00,000
Answer» From the following information calculate (i) Gross Profit Ratio (ii) Inventory Turnover Ratio (iii) Current Ratio (iv) Liquid Ratio (v) Net Profit Ratio (vi) Working Capital Ratio $\begin{matrix} Items & Rs. Sales & 25, 20, 000 Net Profit & 3, 60, 000 Cost of Sales & 19, 20, 000 Long term Debts & 9, 00, 000 Creditors & 2, 00, 000 Average Inventory & 8, 00, 000 Current Assets & 7, 60, 000 Fixed Assets & 14, 40, 000 Current Liabillities & 6, 00, 000 Net Profit Before Interest and Tax & 8, 00, 000 \end{matrix}$

Discussion

154.	On Jan 15, 2006, Kartar Sold goods for Rs 30,000 to Bhagwan and drew upon him three bills of exchanges of Rs 10,000 each payable after one month, two month, and three months respectively. The first bill was retained by Kartar till its maturity. The second bill was endorsed by him in favour of his creditor Ratna and the third bill was discounted by him immediately 6% p.a. All the bills were met by Bhagwan. Journalise the above transactions in the books of Kartar and Bhagwan. Also prepare ledger accounts in books of Kartar and Bhagwan.
Answer» On Jan 15, 2006, Kartar Sold goods for Rs 30,000 to Bhagwan and drew upon him three bills of exchanges of Rs 10,000 each payable after one month, two month, and three months respectively. The first bill was retained by Kartar till its maturity. The second bill was endorsed by him in favour of his creditor Ratna and the third bill was discounted by him immediately 6% p.a. All the bills were met by Bhagwan. Journalise the above transactions in the books of Kartar and Bhagwan. Also prepare ledger accounts in books of Kartar and Bhagwan.

Discussion

155.	In Mr Hayat's ledger, the written down value of a machine as on 1st April, 2015 is Rs.70,000. The rate of depreciation is 15 % per annum on the written down value method. The machine is under an annual repairs and maintenance contract with Mr Swami who charge Rs.1,250 per quarter. A new machine was bought and the cheque issued for Rs.97,500 and the cash paid Rs.2,500 for its immediate erection and subsequent use on 1st July, 2015. The annual maintenance contract of the new machine bought was to be signed after the one year guarantee period was over. Show the machinery account, as it would appear in the ledger for the year ended 31st March, 2016.
Answer» In Mr Hayat's ledger, the written down value of a machine as on 1st April, 2015 is Rs.70,000. The rate of depreciation is 15 % per annum on the written down value method. The machine is under an annual repairs and maintenance contract with Mr Swami who charge Rs.1,250 per quarter. A new machine was bought and the cheque issued for Rs.97,500 and the cash paid Rs.2,500 for its immediate erection and subsequent use on 1st July, 2015. The annual maintenance contract of the new machine bought was to be signed after the one year guarantee period was over. Show the machinery account, as it would appear in the ledger for the year ended 31st March, 2016.

Discussion

156.	The total revenue in Rupees received from the saleof x unitsof a product is given by.The marginal revenue, when is(A) 116 (B) 96 (C) 90 (D) 126
Answer» The total revenue in Rupees received from the sale of x units of a product is given by . The marginal revenue, when is (A) 116 (B) 96 (C) 90 (D) 126

156.

The total revenue in Rupees received from the saleof x unitsof a product is given by.The marginal revenue, when is(A) 116 (B) 96 (C) 90 (D) 126

Answer»

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

.
The marginal revenue, when

is

(A) 116 (B) 96 (C) 90 (D) 126

Discussion

157.

Shyamlal and Sanjay were in partnership business sharing profits and losses in the ratio of 2 : 3 respectively. Their Balance Sheet as at 31st March, 2018 was: Liabilities ₹ Assets ₹ Sundry Creditors 12,435 Cash in Hand 710 Capital A/cs: Cash at Bank 11,925 Shyamlal 34,050 Sundry Debtors 5,500 Sanjay 34,050 68,100 Stock 18,000 Furniture 4,400 Building 40,000 80,535 80,535 On 1st April, 2018, they admitted Shanker into partnership for 1/3rd share in the future profits on the following terms:(a) Shanker is to bring in ₹ 30,000 as his capital and ₹ 20,000 as goodwill which is to remain in the business.(b) Stock and Furniture are to be reduced in value by 10%.(c) Building is to be appreciated by ₹ 15,000.(d) Provision of 5% is to be made on Sundry Debtors for Doubtful Debts .(e) Unaccounted Accrued Income of ₹ 2,400 to be provided for . A debtor , whose dues of ₹ 4,800 were written off as bad debts , paid 50% in full settlement .(f) Outstanding Rent amounted to ₹ 4,800.Show Profit and Loss Adjustment Account (Revaluation Account) , Capital Accounts of Partners and opening Balance Sheet of the new firm.

Answer» Shyamlal and Sanjay were in partnership business sharing profits and losses in the ratio of 2 : 3 respectively. Their Balance Sheet as at 31st March, 2018 was:


Liabilities		₹	Assets	₹
Sundry Creditors		12,435	Cash in Hand	710
Capital A/cs:			Cash at Bank	11,925
Shyamlal	34,050		Sundry Debtors	5,500
Sanjay	34,050	68,100	Stock	18,000
			Furniture	4,400
			Building	40,000


		80,535		80,535

On 1st April, 2018, they admitted Shanker into partnership for 1/3rd share in the future profits on the following terms:

(a) Shanker is to bring in ₹ 30,000 as his capital and ₹ 20,000 as goodwill which is to remain in the business.

(b) Stock and Furniture are to be reduced in value by 10%.

(c) Building is to be appreciated by ₹ 15,000.

(d) Provision of 5% is to be made on Sundry Debtors for Doubtful Debts .

(e) Unaccounted Accrued Income of ₹ 2,400 to be provided for . A debtor , whose dues of ₹ 4,800 were written off as bad debts , paid 50% in full settlement .

(f) Outstanding Rent amounted to ₹ 4,800.

Show Profit and Loss Adjustment Account (Revaluation Account) , Capital Accounts of Partners and opening Balance Sheet of the new firm.

Discussion

158.

A company issued for public subscription 40,000 Equity Shares of ₹ 10 each at a premium of ₹ 2 per share payable as: On application — ₹ 2 per share, On allotment — ₹ 2 per share, On second and final call — ₹ 3 per share. Applications were received for 60,000 shares . Allotment was made on pro rata basis to the applicants for 48,000 shares, the remaining applications being refused . Money overpaid on application was utilised towards sums due on allotment . Ram to whom 1,600 shares were allotted failed to pay the allotment money and Shyam to whom 2,000 shares were allotted failed to pay the two calls. These shares were subsequently forfeited after the second and final call was made . All the forfeited shares were reissued as fully paid-up ₹ 8 per share.Give necessary Journal entries for the above transactions.

Answer» A company issued for public subscription 40,000 Equity Shares of ₹ 10 each at a premium of ₹ 2 per share payable as:

On application	$—$	₹ 2 per share,
On allotment	$—$	₹ 2 per share,
On second and final call	$—$	₹ 3 per share.

Applications were received for 60,000 shares . Allotment was made on pro rata basis to the applicants for 48,000 shares, the remaining applications being refused . Money overpaid on application was utilised towards sums due on allotment . Ram to whom 1,600 shares were allotted failed to pay the allotment money and Shyam to whom 2,000 shares were allotted failed to pay the two calls. These shares were subsequently forfeited after the second and final call was made . All the forfeited shares were reissued as fully paid-up ₹ 8 per share.

Give necessary Journal entries for the above transactions.

Discussion

159.	The _________ is useful in evaluating credit and collection policies.
Answer» The _________ is useful in evaluating credit and collection policies.

Discussion

160.	Cash flows are ________.
Answer» Cash flows are ________.

Discussion

161.	Grown Ltd. issued 500, 10% Debentures of ₹ 1,000 each credited as fully paid-up to the promoters for their services to incorporate the company. It also issued 100, 10% Debentures of ₹ 1,000 each credited as fully paid-up to the underwriters towards their commission. Pass the Journal entries.
Answer» Grown Ltd. issued 500, 10% Debentures of ₹ 1,000 each credited as fully paid-up to the promoters for their services to incorporate the company. It also issued 100, 10% Debentures of ₹ 1,000 each credited as fully paid-up to the underwriters towards their commission. Pass the Journal entries.

Discussion

162.	A mutual fund company receives a dividend of Rs. 25 lakhs on its investment in another company's shares. Why is it a cash inflow from operating activities for this company?
Answer» A mutual fund company receives a dividend of Rs. 25 lakhs on its investment in another company's shares. Why is it a cash inflow from operating activities for this company?

Discussion

163.	Wye Ltd . purchased an established business for ₹ 2,00,000 payable as ₹ 65,000 by cheque and the balance by issuing 9% Debentures of ₹ 100 each at a discount of 10%.Give journal entries in the books of Wye Ltd.
Answer» Wye Ltd . purchased an established business for ₹ 2,00,000 payable as ₹ 65,000 by cheque and the balance by issuing 9% Debentures of ₹ 100 each at a discount of 10%. Give journal entries in the books of Wye Ltd.

Discussion

164.	A person invests Rs.4368 and buys certain hundred rupees shares at RS.91. He sells out shares wirth RS.2400 when they have risen to RS.95 and the remaining when they have fallen to RS.85. Find the gain or lose on the total transactions.
Answer» A person invests Rs.4368 and buys certain hundred rupees shares at RS.91. He sells out shares wirth RS.2400 when they have risen to RS.95 and the remaining when they have fallen to RS.85. Find the gain or lose on the total transactions.

Discussion

165.	How will you deal withthe accumulated profit and losses and reserves on the admission of anew partner?
Answer» How will you deal with the accumulated profit and losses and reserves on the admission of a new partner?

Discussion

166.

Prepare trading and profit and loss account from the following particulars of M/s Neema Traders as on March 31, 2017. Account Title Debit Amount Rs Account Title Credit Amount Rs Buildings 23,000 Sales 1,80,000 Plant 16,930 Loan 8,000 Carriage inwards 1,000 Bills payable 2,520 Wages 3,300 Bank overdraft 4,720 Purchases 1,64,000 Creditors 8,000 Sales return 1,820 Capital 2,36,000 Opening stock 9,000 Purchases return 1,910 Machinery 2,10,940 Insurance 1,610 Interest 1,100 Bad debts 250 Postage 300 Discount 1,000 Salaries 3,000 Debtors 3,900 Stock on March 31, 2017 Rs 16,000.

Answer»

Prepare trading and profit and loss account from the following particulars of M/s Neema Traders as on March 31, 2017.

Account Title	Debit Amount Rs	Account Title	Credit Amount Rs
Buildings	23,000	Sales	1,80,000
Plant	16,930	Loan	8,000
Carriage inwards	1,000	Bills payable	2,520
Wages	3,300	Bank overdraft	4,720
Purchases	1,64,000	Creditors	8,000
Sales return	1,820	Capital	2,36,000
Opening stock	9,000	Purchases return	1,910
Machinery	2,10,940
Insurance	1,610
Interest	1,100
Bad debts	250
Postage	300
Discount	1,000
Salaries	3,000
Debtors	3,900

Stock on March 31, 2017 Rs 16,000.

Discussion

167.

The following was the Balance Sheet of Arun, Bablu and Chetan sharing profits and losses in the ratio of respectively. Liabilites Amount (Rs) Assets Amount (Rs) Creditors 9,000 Land and Buildings 24,000 Bills Payable 3,000 Furniture 3,500 Capital Accounts Stock 14,000 Arun 19,000 Debtors 12,600 Bablu 16,000 Cash 900 Chetan 8,000 43,000 55,000 55,000 They agreed to take Deepak into partnership and give him a share of 1/8 on the following terms:(a) that Deepak should bring in Rs 4,200 as goodwill and Rs 7,000 as his Capital;(b) that furniture be depreciated by 12%;(c) that stock be depreciated by 10% ;(d) that a Reserve of 5% be created for doubtful debts;(e) that the value of land and buildings having appreciated be brought upto Rs 31,000;(f) that after making the adjustments the capital accounts of the old partners (who continue to share in the same proportion as before) be adjusted on the basis of the proportion of Deepak’s Capital to his share in the business, i.e., actual cash to be paid off to, or brought in by the old partners as the case may be. Prepare Cash Account, Profit and Loss Adjustment Account (Revaluation Account) and the Opening Balance Sheet of the new firm.

Answer»

The following was the Balance Sheet of Arun, Bablu and Chetan sharing profits and losses in the ratio of respectively.

Liabilites			Amount (Rs)	Assets	Amount (Rs)
Creditors			9,000	Land and Buildings	24,000
Bills Payable			3,000	Furniture	3,500
Capital Accounts				Stock	14,000
	Arun	19,000		Debtors	12,600
	Bablu	16,000		Cash	900
	Chetan	8,000	43,000
			55,000		55,000

They agreed to take Deepak into partnership and give him a share of 1/8 on the following terms:

(a) that Deepak should bring in Rs 4,200 as goodwill and Rs 7,000 as his Capital;

(b) that furniture be depreciated by 12%;

(c) that stock be depreciated by 10% ;

(d) that a Reserve of 5% be created for doubtful debts;

(e) that the value of land and buildings having appreciated be brought upto Rs 31,000;

(f) that after making the adjustments the capital accounts of the old partners (who continue to share in the same proportion as before) be adjusted on the basis of the proportion of Deepak’s Capital to his share in the business, i.e., actual cash to be paid off to, or brought in by the old partners as the case may be.

Prepare Cash Account, Profit and Loss Adjustment Account (Revaluation Account) and the Opening Balance Sheet of the new firm.

Discussion

168.	For sale of assets, which account is debited?
Answer» For sale of assets, which account is debited?

Discussion

169.	Mansi Ltd . had 6,000; 10% Debentures of ₹ 100 each due for redemption on 31st March, 2017. Assuming that the debentures were redeemed out of profits , pass necessary journal entries for the redemption of debentures . There was a credit balance of ₹ 6,00,000 in Surplus, i.e,Balance in Statement of Profit and Loss.
Answer» Mansi Ltd . had 6,000; 10% Debentures of ₹ 100 each due for redemption on 31st March, 2017. Assuming that the debentures were redeemed out of profits , pass necessary journal entries for the redemption of debentures . There was a credit balance of ₹ 6,00,000 in Surplus, i.e,Balance in Statement of Profit and Loss.

Discussion

170.	On 1st March, 2018, R accepted a Bill of Exchange of ₹ 20,000 from S payable 3 months after date in full settlement of his dues. On the same day S endorsed the Bill of Exchanges to T together with a cheque for ₹ 5,000 in settlement of his debt to the latter. On 2nd March, 2018, T discounted the Bill of Exchange 6% p.a. with his bankers. On maturity the Bill of Exchange was dishonoured.Journalise the transactions in the books of R and T.
Answer» On 1st March, 2018, R accepted a Bill of Exchange of ₹ 20,000 from S payable 3 months after date in full settlement of his dues. On the same day S endorsed the Bill of Exchanges to T together with a cheque for ₹ 5,000 in settlement of his debt to the latter. On 2nd March, 2018, T discounted the Bill of Exchange 6% p.a. with his bankers. On maturity the Bill of Exchange was dishonoured. Journalise the transactions in the books of R and T.

Discussion

171.	Identify which of the following items will be shown in the Notes to Accounts on Employee Benefit Expenses: (i) Wages (ii) Salaries (iii) Office Expenses (iv) Staff Welfare Expenses (v) Entertainment Expenses (vi) Bonus (vii) Leave Encashment Exp (viii) Expenses on Employees Stocke Option Scheme.
Answer» Identify which of the following items will be shown in the Notes to Accounts on Employee Benefit Expenses: (i) Wages (ii) Salaries (iii) Office Expenses (iv) Staff Welfare Expenses (v) Entertainment Expenses (vi) Bonus (vii) Leave Encashment Exp (viii) Expenses on Employees Stocke Option Scheme.

171.

Identify which of the following items will be shown in the Notes to Accounts on Employee Benefit Expenses: (i) Wages (ii) Salaries (iii) Office Expenses (iv) Staff Welfare Expenses (v) Entertainment Expenses (vi) Bonus (vii) Leave Encashment Exp (viii) Expenses on Employees Stocke Option Scheme.

Answer»

Identify which of the following items will be shown in the Notes to Accounts on Employee Benefit Expenses:

(i) Wages

(ii) Salaries

(iii) Office Expenses

(iv) Staff Welfare Expenses

(v) Entertainment Expenses

(vi) Bonus

(vii) Leave Encashment Exp

(viii) Expenses on Employees Stocke Option Scheme.

Discussion

172.

A, B and C are partners sharing profits and losses in the ratio of 4 : 3 : 3 respectively. Their Balance Sheet as at 31st March, 2018 is: Liabilities Amount (₹) Assets Amount (₹) Creditors 7,000 Land and Building 36,000 Bills Payable 3,000 Pland and Machinery 28,000 Reserves 20,000 Electronic Typewriter 8,000 Stock 20,000 Capital A/cs: Sundry Debtors 14,000 A 32,000 Less: Provision for D. Debts 2,000 12,000 B 24,000 Bank 2,000 C 20,000 76,000 1,06,000 1,06,000 On 1st April, 2018, B retires 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 Electronic Typewriter are to be depreciated 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 employee of the firm . This liability has not been shown in the above 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 respectively. Their Balance Sheet as at 31st March, 2018 is:

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

		1,06,000			1,06,000

On 1st April, 2018, B retires 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 Electronic Typewriter are to be depreciated 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 employee of the firm . This liability has not been shown in the above 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

173.

Following is theinformation in respect of certain items of a Sports Club. You arerequired to show them in the Income and Expenditure Account and theBalance Sheet. Details Amount Rs Sports Fund as on April 1, 2005 80,000 Sports Fund Investments 80,000 Interest on Sports Fund Investments 8,000 Donations for Sports Fund 30,000 Sports Prizes awarded 16,000 Expenses on Sports Events 7,000 General Fund 2,00,000 General Fund Investments 2,00,000 Interest on General Fund Investments 20,000

Answer»

Following is the
information in respect of certain items of a Sports Club. You are
required to show them in the Income and Expenditure Account and the
Balance Sheet.

Details	Amount Rs
Sports Fund as on April 1, 2005	80,000
Sports Fund Investments	80,000
Interest on Sports Fund Investments	8,000
Donations for Sports Fund	30,000
Sports Prizes awarded	16,000
Expenses on Sports Events	7,000
General Fund	2,00,000
General Fund Investments	2,00,000
Interest on General Fund Investments	20,000

Discussion

174.

Raja Ltd. invited applications for issuing 50,000 Equity Shares of ₹ 10 each . The amount was payable as follows: On application — ₹ 3 per share, On allotment — ₹ 5 per share, On first and final call — Balance. Applications for 70,000 shares were received . Allotment was made to all applicants on pro rata basis. Excess money received on application was adjusted towards sums due on allotment . Ramesh, who had applied for 700 shares , did not pay the allotment money and on his failure to pay the allotment money his shares were forfeited. Afterwards , the first and the final call was made . Adhar, who had been allotted 500 shares, did not pay the first and final call . His shares were also forfeited . Out of the forfeited shares 900 shares were reissued at ₹ 8 per share as fully paid-up . The reissued shares included all the shares of Ramesh.Pass necessary journal entries for the above transactions in the books of the company.

Answer» Raja Ltd. invited applications for issuing 50,000 Equity Shares of ₹ 10 each . The amount was payable as follows:

On application

—

₹ 3 per share,

On allotment

—

₹ 5 per share,

On first and final call

—

Balance.

Applications for 70,000 shares were received . Allotment was made to all applicants on pro rata basis. Excess money received on application was adjusted towards sums due on allotment . Ramesh, who had applied for 700 shares , did not pay the allotment money and on his failure to pay the allotment money his shares were forfeited. Afterwards , the first and the final call was made . Adhar, who had been allotted 500 shares, did not pay the first and final call . His shares were also forfeited . Out of the forfeited shares 900 shares were reissued at ₹ 8 per share as fully paid-up . The reissued shares included all the shares of Ramesh.

Pass necessary journal entries for the above transactions in the books of the company.

Discussion

175.

Annu, Baby and Chetan are partners in a firm sharing profits and losses equally. They decide to take Deep into partnership from 1st April, 2019 for 1/5th share in the future profits. For this purpose, goodwill is to be valued at 100% of the average annual profits of the previous three or four years, whichever is higher. The annual profits for the purpose of goodwill for the past four years were: Year Ended Profit (₹) 31st March, 2019 2,88,000; 31st March, 2018 1,81,800; 31st March, 2017 1,87,200; 31st March, 2016 2,53,200. Calculate the value of goodwill.

Answer» Annu, Baby and Chetan are partners in a firm sharing profits and losses equally. They decide to take Deep into partnership from 1st April, 2019 for 1/5th share in the future profits. For this purpose, goodwill is to be valued at 100% of the average annual profits of the previous three or four years, whichever is higher. The annual profits for the purpose of goodwill for the past four years were:

Year Ended	Profit (₹)
31st March, 2019	2,88,000;
31st March, 2018	1,81,800;
31st March, 2017	1,87,200;
31st March, 2016	2,53,200.

Calculate the value of goodwill.

Discussion

176.

A company issued 30,000 fully paid-up shares of ₹ 100 each for purchase of the following assets and liabilities from Sharma Co: Plant ₹ 7,00,000 Stock-in-Trade ₹ 9,00,000 Land and Building ₹ 12,00,000 Sundry Creditors ₹ 2,00,000 You are required to pass necessary journal entries.

Answer» A company issued 30,000 fully paid-up shares of ₹ 100 each for purchase of the following assets and liabilities from Sharma Co:

Plant	₹ 7,00,000	Stock-in-Trade	₹ 9,00,000
Land and Building	₹ 12,00,000	Sundry Creditors	₹ 2,00,000

You are required to pass necessary journal entries.

Discussion

177.

From the following information of a Not-for-Profit Organisation, show the 'Sports Materials' item in the Income and Expenditure Account for the year ended 31st March, 2018 and Balance Sheets as at 31st March , 2018: Particulars 31st March, 2017 ₹ 31st March, 2018 ₹ Stocks of Sports Materials Creditors for Sports Materials Advance to Suppliers for Sports Materials 6,200 9,800 11,000 4,800 7,200 19,000

Answer» From the following information of a Not-for-Profit Organisation, show the 'Sports Materials' item in the Income and Expenditure Account for the year ended 31st March, 2018 and Balance Sheets as at 31st March , 2018:



Particulars	31st March, 2017 ₹	31st March, 2018 ₹
Stocks of Sports Materials Creditors for Sports Materials Advance to Suppliers for Sports Materials	6,200 9,800 11,000	4,800 7,200 19,000

Discussion

178.	Journalise the following transaction in the books Bhushan Oil Ltd:(a) 200 shares of Rs 100 each issued at a discount of Rs 10 were forfeited for the non payment of allotment money of Rs 50 per share. The first and final call of Rs 20 per share on these share were not made. The forfeited share were reissued at Rs 70 per share as fully paid-up.(b) 150 shares of Rs 10 each issued at a premium of Rs 4 per share payable with allotment were forfeited for non-payment of allotment money of Rs 8 per share including premium. The first and final call of Rs 4 per share were not made. The forfeited share were reissued at Rs 15 per share fully paid-up.(c) 400 share of Rs 50 each issued at par were forfeited for non-payment of final call of Rs 10 per share. These share were reissued at Rs 45 per share fully paid-up.
Answer» Journalise the following transaction in the books Bhushan Oil Ltd: (a) 200 shares of Rs 100 each issued at a discount of Rs 10 were forfeited for the non payment of allotment money of Rs 50 per share. The first and final call of Rs 20 per share on these share were not made. The forfeited share were reissued at Rs 70 per share as fully paid-up. (b) 150 shares of Rs 10 each issued at a premium of Rs 4 per share payable with allotment were forfeited for non-payment of allotment money of Rs 8 per share including premium. The first and final call of Rs 4 per share were not made. The forfeited share were reissued at Rs 15 per share fully paid-up. (c) 400 share of Rs 50 each issued at par were forfeited for non-payment of final call of Rs 10 per share. These share were reissued at Rs 45 per share fully paid-up.

178.

Journalise the following transaction in the books Bhushan Oil Ltd:(a) 200 shares of Rs 100 each issued at a discount of Rs 10 were forfeited for the non payment of allotment money of Rs 50 per share. The first and final call of Rs 20 per share on these share were not made. The forfeited share were reissued at Rs 70 per share as fully paid-up.(b) 150 shares of Rs 10 each issued at a premium of Rs 4 per share payable with allotment were forfeited for non-payment of allotment money of Rs 8 per share including premium. The first and final call of Rs 4 per share were not made. The forfeited share were reissued at Rs 15 per share fully paid-up.(c) 400 share of Rs 50 each issued at par were forfeited for non-payment of final call of Rs 10 per share. These share were reissued at Rs 45 per share fully paid-up.

Answer»

Journalise the following transaction in the books Bhushan Oil Ltd:

(a) 200 shares of Rs 100 each issued at a discount of Rs 10 were forfeited for the non payment of allotment money of Rs 50 per share. The first and final call of Rs 20 per share on these share were not made. The forfeited share were reissued at Rs 70 per share as fully paid-up.

(b) 150 shares of Rs 10 each issued at a premium of Rs 4 per share payable with allotment were forfeited for non-payment of allotment money of Rs 8 per share including premium. The first and final call of Rs 4 per share were not made. The forfeited share were reissued at Rs 15 per share fully paid-up.

(c) 400 share of Rs 50 each issued at par were forfeited for non-payment of final call of Rs 10 per share. These share were reissued at Rs 45 per share fully paid-up.

Discussion

179.	Equity Share Capital ₹ 15,00,000; Gross Profit on Revenue from Operations, i.e., Net Sales 3313%; Cost Revenue from Operatins or Cost of Goods Sold ₹ 20,00,000; Current Assets ₹ 10,00,000; Current Liabilities ₹ 2,50,000. Calculate Working Capital Turnover Ratio.
Answer» Equity Share Capital ₹ 15,00,000; Gross Profit on Revenue from Operations, i.e., Net Sales 33 $\frac{1}{3}$ %; Cost Revenue from Operatins or Cost of Goods Sold ₹ 20,00,000; Current Assets ₹ 10,00,000; Current Liabilities ₹ 2,50,000. Calculate Working Capital Turnover Ratio.

Discussion

180.	Can the company purchase its own debentures?
Answer» Can the company purchase its own debentures?

Discussion

181.	What is remainder theorem
Answer» What is remainder theorem

Discussion

182.	What is the value of integral (e power (x/2) minus e power (minus x/2) ) divided by e power x minus e power minus x?
Answer» What is the value of integral (e power (x/2) minus e power (minus x/2) ) divided by e power x minus e power minus x?

Discussion

183.	Under which major head of the Statement of Profit and Loss of a Company following items will appear : (i) Bonus (ii) Revenue from Services rendered (iii) Internet Expenses (iv) Materials Purchased (v) Discount on Issue of Debuntures written off (vi) Goodwill Amortized.
Answer» Under which major head of the Statement of Profit and Loss of a Company following items will appear : (i) Bonus (ii) Revenue from Services rendered (iii) Internet Expenses (iv) Materials Purchased (v) Discount on Issue of Debuntures written off (vi) Goodwill Amortized.

183.

Under which major head of the Statement of Profit and Loss of a Company following items will appear : (i) Bonus (ii) Revenue from Services rendered (iii) Internet Expenses (iv) Materials Purchased (v) Discount on Issue of Debuntures written off (vi) Goodwill Amortized.

Answer»

Under which major head of the Statement of Profit and Loss of a Company following items will appear :

(i) Bonus

(ii) Revenue from Services rendered

(iii) Internet Expenses

(iv) Materials Purchased

(v) Discount on Issue of Debuntures written off

(vi) Goodwill Amortized.

Discussion

184.	Return on Investment measures a relationship between which of the following?
Answer» Return on Investment measures a relationship between which of the following?

Discussion

185.

X and Y are partners. The Partnership Deed provides inter alia:(a) That the Accounts be balanced on 31st March every year.(b) That the profits be divided as: X one-half, Y one-third and carried to a Reserve one-sixth.(c) That in the event of the death of a partner, his Executors be entitled to be paid: (i) The Capital to his credit till the date of death. (ii) His proportion of profits till the date of death based on the average profits of the last three completed years. (iii) By way of Goodwill, his proportion of the total profits for the three preceding years.(d) BALANCE SHEET as at 31st March, 2019 Liabilities ₹ Assets ₹ Capital A/cs: Sundry Assets 21,000 X 9,000 Y 6,000 15,000 Reserve 3,000 Creditors 3,000 21,000 21,000 Profits for three years were: 2016-17 − ₹ 4,200; 2017-18 − ₹ 3,900; 2018-19 − ₹ 4,500. Y died on 1st August, 2019. Prepare necessary accounts.

Answer» X and Y are partners. The Partnership Deed provides inter alia:

(a) That the Accounts be balanced on 31st March every year.

(b) That the profits be divided as: X one-half, Y one-third and carried to a Reserve one-sixth.

(c) That in the event of the death of a partner, his Executors be entitled to be paid:

(i) The Capital to his credit till the date of death.

(ii) His proportion of profits till the date of death based on the average profits of the last three completed years.

(iii) By way of Goodwill, his proportion of the total profits for the three preceding years.

(d)

BALANCE SHEET as at 31st March, 2019
Liabilities		₹	Assets	₹
Capital A/cs:			Sundry Assets	21,000
X	9,000
Y	6,000	15,000
Reserve		3,000
Creditors		3,000

		21,000		21,000

Profits for three years were: 2016-17 − ₹ 4,200; 2017-18 − ₹ 3,900; 2018-19 − ₹ 4,500. Y died on 1st August, 2019. Prepare necessary accounts.

Discussion

186.	Cancellation of the membership of the shareholder in a company is known as ___
Answer» Cancellation of the membership of the shareholder in a company is known as ___

Discussion

187.	From the following information, calculate Change in Inventory of Work-in-Progress: Opening and Closing Work-in-Progress ₹1,50,000 and ₹1,45,000 respectively.
Answer» From the following information, calculate Change in Inventory of Work-in-Progress: Opening and Closing Work-in-Progress ₹1,50,000 and ₹1,45,000 respectively.

Discussion

188.	To be listed on OTCEI, the minimum capital requirement for a company is (a) Rs 5 crores (b) Rs 3 crores (c) Rs 6 crores (d) Rs 1 crore
Answer» To be listed on OTCEI, the minimum capital requirement for a company is (a) Rs 5 crores (b) Rs 3 crores (c) Rs 6 crores (d) Rs 1 crore

188.

To be listed on OTCEI, the minimum capital requirement for a company is (a) Rs 5 crores (b) Rs 3 crores (c) Rs 6 crores (d) Rs 1 crore

Answer»

To be listed on OTCEI, the minimum capital requirement for a company is

(a) Rs 5 crores

(b) Rs 3 crores

(c) Rs 6 crores

(d) Rs 1 crore

Discussion

189.	A person purchases electronic items worth Rs 2, 50,000. The shop keeper charges him a sales tax of 21% instead of 12%. The purchaser does not realise that he has over paid. But after some time he finds that he has paid excess and asks the shop-keeper to return the excess money. The shop-keeper refuses and the purchaser moves the consumer court. The court with due hearing orders the shop-keeper to pay the purchaser the excess money paid by the way of sales tax, with an interest of 12% per annum. If the whole deliberation takes 8 months, what is the money that the purchaser gets back?
Answer» A person purchases electronic items worth Rs 2, 50,000. The shop keeper charges him a sales tax of 21% instead of 12%. The purchaser does not realise that he has over paid. But after some time he finds that he has paid excess and asks the shop-keeper to return the excess money. The shop-keeper refuses and the purchaser moves the consumer court. The court with due hearing orders the shop-keeper to pay the purchaser the excess money paid by the way of sales tax, with an interest of 12% per annum. If the whole deliberation takes 8 months, what is the money that the purchaser gets back?

Discussion

190.	From the following information, calculate Interest Coverage Ratio: Profit after Tax ₹1,70,000; Tax ₹30,000; Interest on Long-term Funds ₹50,000.
Answer» From the following information, calculate Interest Coverage Ratio: Profit after Tax ₹1,70,000; Tax ₹30,000; Interest on Long-term Funds ₹50,000.

Discussion

191.	Singh, Gupta and Khan are partners in a firm sharing profits in 3:2:3ratio. They admitted Jain as a new partner. Singh surrendered 1/3 ofhis share in favour of Jain: Gupta surrendered 1/4 of his share infavour of Jain and Khan surrendered 1/5 in favour of Jain. Calculatenew profit sharing ratio?
Answer» Singh, Gupta and Khan are partners in a firm sharing profits in 3:2:3 ratio. They admitted Jain as a new partner. Singh surrendered 1/3 of his share in favour of Jain: Gupta surrendered 1/4 of his share in favour of Jain and Khan surrendered 1/5 in favour of Jain. Calculate new profit sharing ratio?

Discussion

192.	Romi Ltd. acquired assets of ₹ 20 lakhs and took over creditors of ₹ 2 lakhs from Kapil Enterprises.Romi Ltd. issued 8% Debentures of ₹ 100 each at a discount of 25% as purchase consideration.Record necessary journal entries in the books of Romi Ltd.
Answer» Romi Ltd. acquired assets of ₹ 20 lakhs and took over creditors of ₹ 2 lakhs from Kapil Enterprises. Romi Ltd. issued 8% Debentures of ₹ 100 each at a discount of 25% as purchase consideration. Record necessary journal entries in the books of Romi Ltd.

Discussion

193.

Following Receipt andPayment Account was prepared from the cash book of Delhi CharitableTrust for the year ending December 31, 2007 Receipt and Payment Account for the year ending December 31, 2007 Receipts Amount Rs Payments Amount Rs Balance b/d Charity 11,500 Cash in Hand 11,500 Rent and taxes 3,200 Cash at Bank 12,600 Salary 6,000 Donation 9,000 Printing 600 Subscription 42,800 Postage 300 Legacies 18,000 Advertisements 4,500 Interest on investment 4,500 Insurances 2,000 Sale of old newspapers 200 Furniture 21,600 Investment 23,000 Balance c/d: Cash in Hand 9,900 Cash at Bank 16,000 98,600 98,600 Prepare Income andexpenditure account for the year ended December 31, 2006, and abalance sheet as on that date after the following adjustments: (a) It was decided to treat one-third of the amount received on account of donation as income. (b) Insurance premium was paid in advance for three months. (c) Interest on investment Rs1,100 accrued was not received. (d) Rent Rs600: salary Rs900 and advertisement expenses Rs1,000 outstanding as on December 31, 2007.

Answer»

Following Receipt and
Payment Account was prepared from the cash book of Delhi Charitable
Trust for the year ending December 31, 2007

Receipt and Payment Account for the year ending December 31, 2007
Receipts	Amount Rs	Payments	Amount Rs
Balance b/d		Charity	11,500
Cash in Hand	11,500	Rent and taxes	3,200
Cash at Bank	12,600	Salary	6,000
Donation	9,000	Printing	600
Subscription	42,800	Postage	300
Legacies	18,000	Advertisements	4,500
Interest on investment	4,500	Insurances	2,000
Sale of old newspapers	200	Furniture	21,600
		Investment	23,000
		Balance c/d:
		Cash in Hand	9,900
		Cash at Bank	16,000
	98,600		98,600

Prepare Income and
expenditure account for the year ended December 31, 2006, and a
balance sheet as on that date after the following adjustments:

(a)	It was decided to treat one-third of the amount received on account of donation as income.
(b)	Insurance premium was paid in advance for three months.
(c)	Interest on investment Rs1,100 accrued was not received.
(d)	Rent Rs600: salary Rs900 and advertisement expenses Rs1,000 outstanding as on December 31, 2007.

Discussion

194.

Receipt and PaymentAccount of Maitrey Sports Club showed that Rs 68,500 were received byway of subscriptions for the year ended on March 31, 2006.The additionalinformation was as under:1. SubscriptionOutstanding as on March 31, 2005 were Rs 6,500,2. Subscriptionreceived in advance as on March 31, 2005 were Rs 4,100,3. SubscriptionOutstanding as on March 31, 2006 were Rs 5,400,4. Subscriptionreceived in advance as on March 31, 2006 were Rs 2,500.Show how that aboveinformation would appear in the final accounts for the year ended onMarch 31, 2006 of Maitrey Sports Club.

Answer»

Receipt and Payment
Account of Maitrey Sports Club showed that Rs 68,500 were received by
way of subscriptions for the year ended on March 31, 2006.

The additional
information was as under:

1. Subscription
Outstanding as on March 31, 2005 were Rs 6,500,

2. Subscription
received in advance as on March 31, 2005 were Rs 4,100,

3. Subscription
Outstanding as on March 31, 2006 were Rs 5,400,

4. Subscription
received in advance as on March 31, 2006 were Rs 2,500.

Show how that above
information would appear in the final accounts for the year ended on
March 31, 2006 of Maitrey Sports Club.

Discussion

195.	Calculate the value of firm's goodwill on the basis of one and half years' purchase of the average profit of the last three years. The profit for first year was ₹ 1,00,000, profit for the second year was twice the profit of the first year and for the third year profit was one and half times of the profit of the second year.
Answer» Calculate the value of firm's goodwill on the basis of one and half years' purchase of the average profit of the last three years. The profit for first year was ₹ 1,00,000, profit for the second year was twice the profit of the first year and for the third year profit was one and half times of the profit of the second year.

Discussion

196.	Define GM and HM of no.a and b
Answer» Define GM and HM of no.a and b

Discussion

197.	Which of the following represents the correct expression for maturity (m) of the concrete sample?
Answer» Which of the following represents the correct expression for maturity (m) of the concrete sample?

Discussion

198.	Following is the balance sheet of A, B, and C who share profits and losses of the business in the ratio of 3:2:1.Additional Information:a. On 1st April, 2021, they admitted D as a partner for 1/4th for which he brought ₹1,20,000 as his capital and ₹30,000 as a share of goodwill.b.The value of furniture has increased by 10%.c. Market value of investments brought down to ₹2,00,000.Pass the journal entry for revaluation of fixed assets:[2 marks]
Answer» Following is the balance sheet of A, B, and C who share profits and losses of the business in the ratio of 3:2:1. Additional Information: a. On 1st April, 2021, they admitted D as a partner for 1/4th for which he brought ₹1,20,000 as his capital and ₹30,000 as a share of goodwill. b.The value of furniture has increased by 10%. c. Market value of investments brought down to ₹2,00,000. Pass the journal entry for revaluation of fixed assets: [2 marks]

Discussion

199.

Following are the Balance Sheets of Krishtec Ltd. for the years ended 31st March 2012 and 2011: Particulars ulars Note No. 31st March, 2012 (₹) 31st March, 2011 (₹) I. EQUITY AND LIABILITIES 1. Shareholders' Funds (a) Share Capital 12,00,000 8,00,000 (b) Reserves and Surplus (Surplus, i.e., Balance in Statement of Profit and Loss) 3,50,000 4,00,000 2. Non-Current Liabilities Long-term Borrowings 4,40,000 3,50,000 3. Current Liabilities (a) Trade Payables 60,000 50,000 Total Total Expenses 20,50,000 16,00,000 II. ASSETS 1, Non-Current Assets Fixed Assets: Tangible Assets 12,00,000 9,00,000 2. Current Assets (a) Inventories 2,00,000 1,00,000 (b) Trade Receivables 3,10,000 2,30,000 (c) Cash and Cash Equivalents 3,40,000 3,70,000 Total 20,50,000 16,00,000 Prepare a Cash Flow Statement after taking into account the following adjustments:(a) The company paid Interest ₹36,000 on its long-term borrowings.(b) Depreciation charged on tangible fixed assets was ₹1,20,000

Answer» Following are the Balance Sheets of Krishtec Ltd. for the years ended 31st March 2012 and 2011:

Particulars ulars	Note No.	31st March, 2012 (₹)	31st March, 2011 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital		12,00,000	8,00,000
(b) Reserves and Surplus (Surplus, i.e., Balance in Statement of Profit and Loss)		3,50,000	4,00,000
2. Non-Current Liabilities
Long-term Borrowings		4,40,000	3,50,000
3. Current Liabilities
(a) Trade Payables		60,000	50,000
Total Total Expenses		20,50,000	16,00,000
II. ASSETS
1, Non-Current Assets
Fixed Assets:
Tangible Assets		12,00,000	9,00,000
2. Current Assets
(a) Inventories		2,00,000	1,00,000
(b) Trade Receivables		3,10,000	2,30,000
(c) Cash and Cash Equivalents		3,40,000	3,70,000
Total		20,50,000	16,00,000

Prepare a Cash Flow Statement after taking into account the following adjustments:

(a) The company paid Interest ₹36,000 on its long-term borrowings.

(b) Depreciation charged on tangible fixed assets was ₹1,20,000

Discussion

200.	We do the revaluation of assets and liabilities because the ____________ partners wanted to share all the gains or losses between them without involving the _________ partner
Answer» We do the revaluation of assets and liabilities because the ____________ partners wanted to share all the gains or losses between them without involving the _________ partner

Discussion

Explore topic-wise InterviewSolutions in .

Distinguish between Functional and Divisional organisational structure on the basis of the following : (i) Meaning (ii) Communication (iii) Decision - making authority (iv) Use of resources

Shiva Ltd . issued 1,00,000 Equity Shares of ₹ 10 each at a premium of ₹ 5 per share . The whole amount was payable on application. The issue was fully subscribed . Pass necessary Journal entries.

The total revenue in Rupees received from the saleof x unitsof a product is given by.The marginal revenue, when is(A) 116 (B) 96 (C) 90 (D) 126

The _________ is useful in evaluating credit and collection policies.

Cash flows are ________.

Grown Ltd. issued 500, 10% Debentures of ₹ 1,000 each credited as fully paid-up to the promoters for their services to incorporate the company. It also issued 100, 10% Debentures of ₹ 1,000 each credited as fully paid-up to the underwriters towards their commission. Pass the Journal entries.

A mutual fund company receives a dividend of Rs. 25 lakhs on its investment in another company's shares. Why is it a cash inflow from operating activities for this company?

Wye Ltd . purchased an established business for ₹ 2,00,000 payable as ₹ 65,000 by cheque and the balance by issuing 9% Debentures of ₹ 100 each at a discount of 10%.Give journal entries in the books of Wye Ltd.

A person invests Rs.4368 and buys certain hundred rupees shares at RS.91. He sells out shares wirth RS.2400 when they have risen to RS.95 and the remaining when they have fallen to RS.85. Find the gain or lose on the total transactions.

How will you deal withthe accumulated profit and losses and reserves on the admission of anew partner?

For sale of assets, which account is debited?

Identify which of the following items will be shown in the Notes to Accounts on Employee Benefit Expenses: (i) Wages (ii) Salaries (iii) Office Expenses (iv) Staff Welfare Expenses (v) Entertainment Expenses (vi) Bonus (vii) Leave Encashment Exp (viii) Expenses on Employees Stocke Option Scheme.

A company issued 30,000 fully paid-up shares of ₹ 100 each for purchase of the following assets and liabilities from Sharma Co: Plant ₹ 7,00,000 Stock-in-Trade ₹ 9,00,000 Land and Building ₹ 12,00,000 Sundry Creditors ₹ 2,00,000 You are required to pass necessary journal entries.

Equity Share Capital ₹ 15,00,000; Gross Profit on Revenue from Operations, i.e., Net Sales 3313%; Cost Revenue from Operatins or Cost of Goods Sold ₹ 20,00,000; Current Assets ₹ 10,00,000; Current Liabilities ₹ 2,50,000. Calculate Working Capital Turnover Ratio.

Can the company purchase its own debentures?

What is remainder theorem

What is the value of integral (e power (x/2) minus e power (minus x/2) ) divided by e power x minus e power minus x?

Under which major head of the Statement of Profit and Loss of a Company following items will appear : (i) Bonus (ii) Revenue from Services rendered (iii) Internet Expenses (iv) Materials Purchased (v) Discount on Issue of Debuntures written off (vi) Goodwill Amortized.

Return on Investment measures a relationship between which of the following?

Cancellation of the membership of the shareholder in a company is known as ___

From the following information, calculate Change in Inventory of Work-in-Progress: Opening and Closing Work-in-Progress ₹1,50,000 and ₹1,45,000 respectively.

To be listed on OTCEI, the minimum capital requirement for a company is (a) Rs 5 crores (b) Rs 3 crores (c) Rs 6 crores (d) Rs 1 crore

From the following information, calculate Interest Coverage Ratio: Profit after Tax ₹1,70,000; Tax ₹30,000; Interest on Long-term Funds ₹50,000.

Singh, Gupta and Khan are partners in a firm sharing profits in 3:2:3ratio. They admitted Jain as a new partner. Singh surrendered 1/3 ofhis share in favour of Jain: Gupta surrendered 1/4 of his share infavour of Jain and Khan surrendered 1/5 in favour of Jain. Calculatenew profit sharing ratio?

Romi Ltd. acquired assets of ₹ 20 lakhs and took over creditors of ₹ 2 lakhs from Kapil Enterprises.Romi Ltd. issued 8% Debentures of ₹ 100 each at a discount of 25% as purchase consideration.Record necessary journal entries in the books of Romi Ltd.

Define GM and HM of no.a and b

Which of the following represents the correct expression for maturity (m) of the concrete sample?

We do the revaluation of assets and liabilities because the ____ partners wanted to share all the gains or losses between them without involving the _ partner

Explore topic-wise InterviewSolutions in .

Distinguish between Functional and Divisional organisational structure on the basis of the following : (i) Meaning (ii) Communication (iii) Decision - making authority (iv) Use of resources

Shiva Ltd . issued 1,00,000 Equity Shares of ₹ 10 each at a premium of ₹ 5 per share . The whole amount was payable on application. The issue was fully subscribed . Pass necessary Journal entries.

The total revenue in Rupees received from the saleof x unitsof a product is given by.The marginal revenue, when is(A) 116 (B) 96 (C) 90 (D) 126

The _________ is useful in evaluating credit and collection policies.

Cash flows are ________.

Grown Ltd. issued 500, 10% Debentures of ₹ 1,000 each credited as fully paid-up to the promoters for their services to incorporate the company. It also issued 100, 10% Debentures of ₹ 1,000 each credited as fully paid-up to the underwriters towards their commission. Pass the Journal entries.

A mutual fund company receives a dividend of Rs. 25 lakhs on its investment in another company's shares. Why is it a cash inflow from operating activities for this company?

Wye Ltd . purchased an established business for ​₹ 2,00,000 payable as ​₹ 65,000 by cheque and the balance by issuing 9% Debentures of ​₹ 100 each at a discount of 10%.Give journal entries in the books of Wye Ltd.

A person invests Rs.4368 and buys certain hundred rupees shares at RS.91. He sells out shares wirth RS.2400 when they have risen to RS.95 and the remaining when they have fallen to RS.85. Find the gain or lose on the total transactions.

How will you deal withthe accumulated profit and losses and reserves on the admission of anew partner?

For sale of assets, which account is debited?

Identify which of the following items will be shown in the Notes to Accounts on Employee Benefit Expenses: (i) Wages (ii) Salaries (iii) Office Expenses (iv) Staff Welfare Expenses (v) Entertainment Expenses (vi) Bonus (vii) Leave Encashment Exp (viii) Expenses on Employees Stocke Option Scheme.

A company issued 30,000 fully paid-up shares of ₹ 100 each for purchase of the following assets and liabilities from Sharma Co: Plant ₹ 7,00,000 Stock-in-Trade ₹ 9,00,000 Land and Building ₹ 12,00,000 Sundry Creditors ₹ 2,00,000 You are required to pass necessary journal entries.

Equity Share Capital ₹ 15,00,000; Gross Profit on Revenue from Operations, i.e., Net Sales 3313%; Cost Revenue from Operatins or Cost of Goods Sold ₹ 20,00,000; Current Assets ₹ 10,00,000; Current Liabilities ₹ 2,50,000. Calculate Working Capital Turnover Ratio.

Can the company purchase its own debentures?

What is remainder theorem

What is the value of integral (e power (x/2) minus e power (minus x/2) ) divided by e power x minus e power minus x?

Under which major head of the Statement of Profit and Loss of a Company following items will appear : (i) Bonus (ii) Revenue from Services rendered (iii) Internet Expenses (iv) Materials Purchased (v) Discount on Issue of Debuntures written off (vi) Goodwill Amortized.

Return on Investment measures a relationship between which of the following?

Cancellation of the membership of the shareholder in a company is known as ___

From the following information, calculate Change in Inventory of Work-in-Progress: Opening and Closing Work-in-Progress ₹1,50,000 and ₹1,45,000 respectively.

To be listed on OTCEI, the minimum capital requirement for a company is (a) Rs 5 crores (b) Rs 3 crores (c) Rs 6 crores (d) Rs 1 crore

From the following information, calculate Interest Coverage Ratio: Profit after Tax ₹1,70,000; Tax ₹30,000; Interest on Long-term Funds ₹50,000.

Singh, Gupta and Khan are partners in a firm sharing profits in 3:2:3ratio. They admitted Jain as a new partner. Singh surrendered 1/3 ofhis share in favour of Jain: Gupta surrendered 1/4 of his share infavour of Jain and Khan surrendered 1/5 in favour of Jain. Calculatenew profit sharing ratio?

Romi Ltd. acquired assets of ₹ 20 lakhs and took over creditors of ₹ 2 lakhs from Kapil Enterprises.Romi Ltd. issued 8% Debentures of ₹ 100 each at a discount of 25% as purchase consideration.Record necessary journal entries in the books of Romi Ltd.

Define GM and HM of no.a and b

Which of the following represents the correct expression for maturity (m) of the concrete sample?

We do the revaluation of assets and liabilities because the ____________ partners wanted to share all the gains or losses between them without involving the _________ partner

Wye Ltd . purchased an established business for ₹ 2,00,000 payable as ₹ 65,000 by cheque and the balance by issuing 9% Debentures of ₹ 100 each at a discount of 10%.Give journal entries in the books of Wye Ltd.

We do the revaluation of assets and liabilities because the ____ partners wanted to share all the gains or losses between them without involving the _ partner