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The following is the balance Sheet of Gupta and Sharma as on December 31, 2012

$$\begin{array}{cccccccc}& & & & \text{Balance Sheet of Gupta and Sharma}& & & \\ & & & & \text{as on December 31, 2012}& & & \end{array}$$

$$\begin{array}{ccccc}\text{Capital and Liabilities}& & \text{Amt.}& \text{Assets}& \text{Amt.}\\ \text{Sundry Creditors}& & 38,000& \text{Cash at Bank}& 12,500\\ \text{Mrs. Gupta's Loan}& & 20,000& \text{Sundry Debtors}& 55,000\\ \text{Mrs. Sharma's Loan}& & 30,000& \text{Stock}& 44,000\\ \text{Reserve Fund}& & 6,000& \text{Bills Receivable}& 19,000\\ \text{Provision of Doubtful Debts}& & 4,000& \text{Machinery}& 52,000\\ \text{Capital}& & & \text{Investment}& 38,500\\ \text{Gupta}& 90,000& & \text{Fixtures}& 27,000\\ \text{Sharma}& \underset{–}{60,000}& \underset{–}{1,50,000}& & \underset{–}{}\\ & & 2,48,000& & 2,48,000\\ & & \underset{–}{}& & \underset{–}{}\end{array}$$

The firm was dissolved on December 31 2012 and Asset realised and setlements of Liabilities as follows:
(a) The realisation of the assets were as follows
$$\begin{array}{cc}\text{Sundry Debtors}& 52,000\\ \text{Stock}& 42,000\\ \text{Bills Receivable}& 16,000\\ \text{Machinery}& 49,000\end{array}$$
(b) Investment was taken over by Gupta at agreed value of 36,000 and agreed to pay of Mrs Gupta's loan.

(c) The Sundry Creditors were paid fo less % discount.

(d) The realisation expenses incurred amounted to Rs. 1,200.

Journalise the entries to be made on the dissolution and prepare realisation account, bank account and partners capital accounts.

Sohan, Amisha and Neena are partners sharing profit in the ratio of 3:2:1. when Sohan retired, their adjusted capitals were Rs.90,000, Rs.60,000 and Rs.70,000 respectively. Amisha and Neena decided to have their total capital of the firm in the ratio of 5 : 3. Find the capital of each partner.

Explain the modes of payment to retiring partner.

In indirect method of preppearation of cash flow statement, the _______ figure from the income statement is used to calculate the amount of net cash flow from operating activities.

When the amount of goodwill brought in by incoming partner is withdrawn by existing partners, the entry is going to be

Hero Ltd. Had the following balances:
$$\begin{array}{cc}\text{Non- Current Investments on 31st March, 2016}& 3,40,000\\ \text{Non- Current Investments on 31st March, 2017}& 2,80,000\end{array}$$
During the year the company had had sold 40% of its original investments at a profit of Rs. 84,000.
Calculate sources and uses of cash.

Which of the following is not included in profit or loss appropriation account?

Traditional products Ltd. offered 2,00,000, $8\%$ Debentures of Rs 500 each at a premium of $10\%$ payable as Rs 200 on application (including premium) and balance on allotment, redeemable at par after 8 years. But applications are received for 3,00,000 debentures and the allotment is made on pro-rata basis. All the money due on application and allotment is received. Record necessary entries regarding issue of debentures.

Does capital expenditure affect profit?

Which of the following is used as base for preparation of common size statements of profit and loss?

A reserve specifically represented by earmarked investments shall be termed as ............

Soham bought a sofa for Rs 6500. If he pays an interest of Rs 975 in 3 years, find the rate of interest. [3 MARKS]

Prepare Provision for Income Tax Account from the following informations for preparing Cash Flow Statements:
$$\begin{array}{ccc}\text{Particulars}& 31-03-2016& 31-03-2017\\ & \text{Rs.}& \text{Rs.}\\ \text{Provision for Income Tax}& 3,20,000& 4,00,000\end{array}$$

Additional Information:
During the year Income Tax paid was Rs. 2,80,000

Debenture Redemption Reserve ensures that the _____________ amount of the debenture holders is safeguarded.

The expenses of Realisation are _______________ Realisation A/c.

Arum, Sabha and Suresh are partners in a firm. Their profit-sharing ratio is 2:2:1. However, Suresh is guaranteed a minimum amount of Rs 10,000 as share of profit every year. Any deficiency arising on that account shall be met by Babita. The profits for the two years ending 31st March, 2016 and 2017 were Rs 40,000 and Rs 60,000 respectively. Prepare Profit and Loss Appropriation Account for the two years.

The preparation of comparative financial statement is only possible in case of presence of past year data.

The following balances has been extracted from the trial balance of M/s Runway Shine Ltd. Prepare a trading and profit and loss account and a balance sheet as on December 31, 2010.

$\begin{array}{cccc}\text{Account Title}& \text{Amt. (Rs.)}& \text{Account Title}& \text{Amt. (Rs)}\\ \text{Purchase}& 1,50,000& \text{Sales}& 2,50,000\\ \text{Opening Stock}& 50,000& \text{Return Outwards}& 4,500\\ \text{Return Inwards}& 2,000& \text{Interest Received}& 3,500\\ \text{Carriage Inwards}& 4,500& \text{Discount Received}& 400\\ \text{Cash in Hand}& 77,800& \text{Creditors}& 1,25,000\\ \text{Cash at Bank}& 60,800& \text{Bills Payable}& 6,040\\ \text{Wages}& 2,400& \text{Capital}& 1,00,000\\ \text{Printing and Stationery}& 4,500& & \\ \text{Discount}& 400& & \\ \text{Bad Debts}& 1,500& & \\ \text{Insurance}& 2,500& & \\ \text{Investment}& 32,000& & \\ \text{Debtors}& 53,000& & \\ \text{Bills Receivable}& 20,000& & \\ \text{Postage and Telegraph}& 400& & \\ \text{Commission}& 200& & \\ \text{Interest}& 1,000& & \\ \text{Repair}& 440& & \\ \text{Lighting Charges}& 500& & \\ \text{Telephone Charges}& 100& & \\ \text{Carriage Outward}& 400& & \\ \text{Motor Car}& 25,000& & \\ & \overline{\underset{–}{\underset{–}{4,89,440}}}& & \overline{\underset{–}{\underset{–}{4,89,440}}}\end{array}$

Adjustments-

1. Further bad debts Rs. 1,000. Discount on debtors Rs. 500 and make a provision on debtors 5%.

2. Interest received on investment 5%.

3. Wages and interest outstanding Rs. 100 and Rs. 200 respectively.

4. Depreciation charged on motor car 5% pa.

5. Closing stock Rs. 32,500.

What is meant by the income method of calculating national income?

Mrs. Goswami deposited Rs.1000 per month in a recurring deposit account for 3 years. Find the amount payable to him on maturity, if the rate of interest is 8 % per annum.

To transfer the accumulated losses, all the capital accounts of partners are _________ with their share of losses.

A ltd. took over the assets of Rs. 6,60,000 and liabilities of Rs. 80,000 of B ltd. for an agreed purchase consideration of 6,00,000 payable 10% in cash and the balance by the issue of 15% Debentures of Rs. 100 each at 10% discount.

The number of debentures to be issued is-

From the following information, calculate the amount of subscriptions outstanding as on 31st March, 2009 :

A club has 250 members each paying an annual subscription of Rs 1,000. The Receipts & Payments account for the year showed a sum of Rs 2,65,000 received as subscriptions. The following additional information is provided.

$\begin{array}{cc}& \text{Rs}\\ \text{Subscriptions Outstanding on 31st March, 2008}& 40,000\\ \text{Subscriptions Received in advance on 31st March, 2009}& 30,000\\ \text{Subscriptions Received in advance on 31st March, 2008}& 12,000\end{array}$

Dividend income is ________ activity.

A, B and C were partners in a firm sharing profits in the ratio of 1:2:2. On 1st July, 2014, A retired and the new profit sharing ratio of B and C was 3:2. Goodwill already exist in the books amounted to Rs. 1,00,000. Goodwill of the firm was valued at Rs. 4,00,000. Pass necessary entries for the record of goodwill in the above case. Also calculate the gaining ratio.

Profit and losses ratio is for 3:2:1, for A, B and C respectively. From 1st April 2018, they decide to share profit and losses equally. Value of Goodwill of the firm is Rs 24,000. Who amongst the following has made a sacrifice?

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.

BALANCE SHEET

as at 31st March, 2016

$\begin{array}{cccc}\text{Capital and Liabilities}& \text{Rs}& \text{Assets}& \text{Rs}\\ \text{Capital A/cs:}& & \text{Furniture}& 95,000\\ A1,20,000& & \text{Business Premises}& 2,05,000\\ B1,20,000& & \text{Stock-in-Trade}& 40,000\\ C\underset{–}{1,20,000}& 3,60,000& \text{Debtors}& 28,000\\ \text{Sundry Creditors}& 20,000& \text{Cash at Bank}& 15,000\\ \text{Outstanding Salaries and Wages}& 7,200& \text{Cash in Hand}& 4,200\\ & \underset{–}{\overline{3,87,200}}& & \underset{–}{\overline{3,87,200}}\end{array}$

On 1st April, 2016, they admit D as partner on the following conditions:

(i) D will bring Rs 1,20,000 as his Capital and also Rs 30,000 as Goodwill premium for a quarter of the share in the future profit/loss of the firm.

(ii) The values of the fixed assets and business premises of the firm will be increased by 10% before the admission of D.

(iii) The future profits and losses of the firm will be shared equally by the partners.

Show Journal entries, Revaluation Account, Partner's Capital Accounts and the opening Balance Sheet of the new firm to include the above-mentioned transactions assuming that the conditions were duly satisfied.

A and B share the profits of a business in the ratio of 5:3. They admit C, a differently abled person, who is an MBA from Delhi University into the firm for 1/4th share in the profits to be contributed equally by A and B. On the date of admission of C, the Balance Sheet of the firm was as follows:

$\begin{array}{cccc}\text{Caapital and Liabilities}& \text{Rs}& \text{Assets}& \text{Rs}\\ \text{A's Capital}& 40,000& \text{Machinery}& 30,000\\ \text{B's Capital}& 30,000& \text{Furniture}& 20,000\\ \text{Workmen's Compensation Reserve}& 4,000& \text{Stock}& 15,000\\ \text{Creditors}& 2,000& \text{Debtors}& 15,000\\ \text{Provident Fund}& 10,000& \text{Bank}& 6,000\\ & \underset{–}{\overline{86,000}}& & \underset{–}{\overline{86,000}}\end{array}$

Terms of C's admission were as follows:

(i) C will bring Rs 30,000 for his share of capital and goodwill.

(ii) Goodwill of the firm has been valued at 3 year's purchase of the average super profits of last four years. Average profts of the last four years are Rs 20,000 while the normal profits that can be earned with the capital employed are Rs 12,000.

(iii) Furniture is undervalued by Rs 12,000 and the value of stock is reduced to Rs 13,000. Provident Fund be raised by Rs 1,000. Unrecorded creditors found worth Rs. 6,000.

Prepare Revaluation Account, Partner's Capital Accounts and the new Balance Sheet of A, B and C. Also, identify the values involved in the question.

Realisation profit is 6,000 and profit sharing ratio of Harsha, Manisha and Kushagr is 3:2:1. The amount to be transferred to Kushagr's capital account is -

Lokesh and Azad are partners sharing profits in the ratio 3:2, with capitals of Rs 50,000 and 30,000, respectively. Interest on capital is agreed to be paid at 6% pa. Azad is allowed a salary of Rs 2,500 pa. During 2006, the profits prior to the calculation of interest on capital but after charging Azad's salary amounted to Rs 12,500. A provision of 5% of profits is to be made in respect of manager's commission. Prepare accounts showing the allocation of profits and partner's capital accounts.

From the following trail balance,prepare the trading and profit and loss account for the year ended 31st March,2016 and the balance sheet as that date.

$\begin{array}{cccc}\text{Name of Accounts}& \text{Amt. (Rs.)}& \text{Name of Accounts}& \text{Amt. (Rs.)}\\ \text{Salaries}& 20,446& \text{Sales}& 1,32,840\\ \text{Bills Receivables}& 12,754& \text{Capital}& 1,00,000\\ \text{Investments}& 80,000& \text{Provision for Doubtful Debts}& 5,000\\ \text{Furniture}& 24,000& 10\%\text{Loan (1st October, 2015)}& 20,000\\ \text{Opening Stock}& 9,000& \text{Discounts Received}& 800\\ \text{Purchases}& 60,000& \text{Sundry Creditors}& 18,600\\ \text{Sundry Debtors}& 40,000& \text{Bills Payable}& 10,000\\ \text{Interest on Loan}& 800& \text{Outstanding Salaries}& 1,000\\ \text{Insurance Premium}& 1,800& \text{Bad Debts Recovered}& 400\\ \text{Wages}& 9,200& \text{Interest on Investments}& 4,000\\ \text{Rent}& 3,040& \text{Trading Commission}& 14,000\\ \text{Bad Debts}& 2,400& & \\ \text{Carriage Outwards}& 1,200& & \\ \text{Cash at Bank}& 20,000& & \\ \text{Depreciation on Furniture}& 5,000& & \\ \text{Accrued Commission}& 2,000& & \\ \text{Advertisement}& 15,000& & \\ & \overline{\underset{–}{\underset{–}{3,06,640}}}& & \overline{\underset{–}{\underset{–}{3,06,640}}}\\ & & & \end{array}$

Additional Information:

(i) Closing stock Rs. 12,000.

(ii) Goods costing Rs. 2,000 were distributed as free samples while goods costing Rs. 1,000 were taken by the proprietor for personal use.

(iii) A credit sale of Rs. 4,000 was not recorded in the sales book.

(iv) Closing stock included goods costing Rs. 2,000 which were sold and recorded as sales but not delivered to the customers.

(v) Maintain provision for doubtful debts 5%.

Subscription income for the current year irrespective of whether the money is received or not is shown in _____

Identify an appropriate question tag for the sentence below.

I’ll save this coupon for the next time I go to shop for something at the mall, _________?

All ________ are shown on the right hand side i.e. credit side of receipts & payments account.

When the government acquires the property of a person who dies without having any legal heirs, it is known as

Surjit and Rahi were sharing profits (losses) in the ratio 3 : 2, their Balance sheet as on March 31, 2012 is as follows
Balance Sheet of Surjit and Rahi
as on March 31, 2012
$$\begin{array}{cccc}\text{Capital and Liabilities}& \text{Amt.}& \text{Assets}& \text{Amt.}\\ \text{Creditors}& 38,000& \text{Bank}& 11,500\\ \text{Mrs. Surjit loan}& 10,000& \text{Stock}& 6,000\\ \text{Reserve}& 15,000& \text{Debtors}& 19,000\\ \text{Rahi's Loan}& 5,000& \text{Furniture}& 4,000\\ \text{Capitals:}& & \text{Plant}& 28,000\\ \text{Surjit}& 10,000& \text{Investment}& 10,000\\ \text{Rahi}& 8,000& \text{Profit and loss}& 7,500\\ & \underset{–}{}& & \underset{–}{}\\ & 86,000& & 86,000\\ & \underset{–}{}& & \underset{–}{}\end{array}$$
The firm was dissolved on March 31, 2012 on the following terms:
1. Surjit agreed to take the investments at Rs. 8,000 and to pay Mrs Surjit's loan.
2. Other assets were realised as follows
Stock Rs. 5,000
Debtors Rs. 18,500
Furniture Rs. 4,500
Plant Rs. 25,000
3. Expenses on realisation amounted to Rs. 1,600
4. Creditors agreed to accept Rs. 37,000 as a final settlement.

You are required to prepare realisation account partner's capital account and bank account.

What is the amount of Interest on drawings for Mr. X at 10% p.a. for the Year ended 31st March 2018, if he withdrew Rs 1000 in the beginning of each month.

Neelabh is engaged in 'transport business' and transports fruits and vegetables to different states. Stating reasons in support of your answer, identify the working capital requirements of Neelabh. Neelabh also wants to expand and diversify his transport business. Explain any two factors that will affect his fixed capital requirements.

Redemption is made in accordance __________________.

Assuming that the Current Ratio is 2 : 1, state, giving reasons, which of the following transactions would (i) improve, (ii) reduce, or (iii) not alter, the current ratio,

(i) Cash collected from trade receivables or cash received against B/R on its maturity.

(ii) B/R received from trade receivables or B/R drawn.

(iii) B/R endorsed to trade payables.

(iv) B/R dishonoured.

(v) Sale of Inventories at par for cash.

Non operating expenses are ___ while calculating operating profit from Net profit.

Is it true or false that a grocery store’s sale of its old delivery van to one of its employees for Rs. 2,000 should be recorded in the Revenue from Operations?

_______________ assets are transferred to Realisation A/c.

At what rate of interest per annum will a sum double itself in 8 years, if calculated as per simple interest formula.

A share is the___________of the company.

A, B, C and D are equal partners in a firm. Their capitals on 1st April, 2015 were Rs 50,000; Rs 30,000; Rs 25,000 and Rs 15,000 respectively. After closing the accounts for the year ended 31st March 2016 it was discovered that according to the partnership deed interest 10% per annum on partner's Capitals was not provided before distribution of profits. It was agreed among the partners to make the adjusting entry at the beginning of the next year rather than to alter the Balance Sheet. Pass the necessary journal entry assuming that the capitals are not fixed.

RGH Lears Ltd. is one of the top most companies in the energy sector. They slashed down an incentive scheme for their employees few years ago when they had cash problems. This resulted in low productivity and almost closed down the company.

(i) What was the reason behind poor performance of workers?

(ii) What should be done by management to motivate their employees?

(iii) How can the managers resolve the cash flow problems?

Why there is a need for the revaluation of assets and liabilities on the admission of a partner?