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If the value of goodwill is Rs. 3,00,000. The PSR of A, B and C is 1:1:1. A retires and new profit sharing ratio is 1:1. B and C Capital accounts will be debited with what amount?

Partner's Capital A/c is debited:

Ruchi Ltd. issued 42,000, $7\%$ Debentures of Rs 100 each on 1st April, 2011, redeemable at a premium of $8\%$ on 31st March 2015. The company decided to create required Debenture Redemption Reserve on 31st March 2014. The company invested the funds as required by law in a fixed deposit with State Bank of India on 1st April, 2014 earning interest at $10\%$ per annum. Tax was deducted at source by the bank on interest at $10\%$. Pass necessary Journal Entries regarding issue ans redemption of debentures.

Give Journal entries for forfeiture and re-issue of shares:

(i) A Ltd. forfeited 1,000 shares of Rs 10 each, Rs 7 called up, issued at a premium of 20% (to be paid at the time of allotment) for non-payment of a first call of Rs 2 per share. Out of these, 600 shares were re-issued as Rs 7 paid up for Rs 4 per share.

(ii) B Ltd. forfeited 1,000 shares of Rs 10 each, Rs 7 called up, issued at a premium of 20% (to be paid at the time of allotment) for non-payment of allotment money of Rs 4 per share (including premium) and first call of Rs 2 per share. Out of these, 600 shares were re-issued as fully paid in such a way that Rs 900 were transferred to capital reserve.

Which of the following statements is false :

In case of default, the bank auction the property for sale and recover their money. This procedure is called ___________.

Which of the following is not a part of financial statements of NPO?

When the unrecorded liability is paid off, _______ account is debited.

Why it is considered desirable to make the partnership agreement in writing ?

In common size Balance Sheet , total of assets and liabilities is assumed to be equal to ________.

Outstanding subscription is a/an-

XYZ Ltd had 12% debentures of Rs 10,00,000 as on 1-04-2014. During the year company took a loan of Rs 4,00,000 from bank. It issured their 12 % debentures worth Rs 5,00,000 as collateral security. Pass necessary Journal entries. (Using Debenture Suspense Method)

Given below is the Balance Sheet of A and B, who are carrying on partnership business on 31-12-2017. A and B share profits and losses in the ratio of 2 : 1.

BALANCE SHEET OF A AND B
as on 31st December, 2017
$\begin{array}{ccccc}\text{Liabilities}& & \text{Amount}& \text{Assets}& \text{Amount}\\ & & \text{(Rs)}& & \text{(Rs)}\\ \text{Bills Payable}& & 10,000& \text{Cash in Hand}& 10,000\\ \text{Creditors}& & 58,000& \text{Cash at Bank}& 40,000\\ \text{Outstanding Expenses}& & 2,000& \text{Sundry Debtors}& 60,000\\ \text{Capitals :}& & & \text{Stock}& 40,000\\ \text{A}& 1,80,000& & \text{Plant}& 1,00,000\\ \text{B}& \underset{–}{1,50,000}& \underset{–}{3,30,000}& \text{Buildings}& \underset{–}{1,50,000}\\ & & 4,00,000& & 4,00,000\end{array}$

C is admitted as a partner on the date of the Balance Sheet on the following terms:

(i) C will bring Rs 1,00,000 for his capital and Rs 60,000 as his share of goodwill for 1/4th share in the profits.

(ii) Plant is to be appreciated to Rs 1,20,000 and the value of buildings is to be appreciated by 10%.

(iii) Stock is found over valued by Rs 4,000.

(iv) A provision for bad and doubtful debts is to be created at 5% of debtors.

(v) Creditors were unrecorded to the extent of Rs 1,000.

Pass the necessary Journal entries at the time of admission of C. Also prepare a Balance Sheet.

OR

Pankaj, Naresh and Somesh are partners sharing profits in the ratio of 3 : 2 : 1. Naresh retired from the firm due to his illness. On that date the Balance Sheet of the firm was as follows:

BALANCE SHEET
as on 31st March, 2017
$\begin{array}{cccccc}\text{Liabilities}& & \text{Amount}& \text{Assets}& & \text{Amount}\\ & & \text{(Rs)}& & & \text{(Rs)}\\ \text{General Reserve}& & 12,000& \text{Bank}& & 7,600\\ \text{Sundry Creditors}& & 15,000& \text{Debtors}& 6,000& \\ \text{Bills Payable}& & 12,000& \text{Less: Provision for}& & \\ \text{Outstanding Salary}& & 2,200& \text{Doubtful Debt}& \underset{–}{\left(400\right)}& 5,600\\ \text{Provision for Legal Damages}& & 6,000& \text{Stock}& & 9,000\\ \text{Capitals :}& & & \text{Furniture}& & 41,000\\ \text{Pankaj}& 46,000& & \text{Premises}& & 80,000\\ \text{Naresh}& 30,000& & & & \\ \text{Somesh}& \underset{–}{20,000}& 96,000& & & \\ & & \overline{1,43,200}& & & \overline{1,43,200}\end{array}$

Additional Information :

(i) Premises have appreciated by 20%, stock depreciated by 10% and provision for doubtful debts was to be made 5% on debtors. Further, provision for legal damages is to be made for Rs 1,200 and furniture to be brought up to Rs 45,000.

(ii) Goodwill of the firm be valued at Rs 42,000.

(iii) Rs 26,000 from Naresh's capital account be transferred to his loan account and balance be paid through bank; if required, necessary loan may be obtained from Bank.

(iv) New profit sharing ratio of Pankaj and Somesh is decided to be 5 : 1.

Give the necessary Ledger Accounts at the time of Naresh's retirement.

The numerator while calculating Interest coverage ratio is ___

We transfer revaluation profit to partner's capital in which ratio in case of retirement of a partner?

From the following Balance Sheets of X Ltd. as at 31st March, 2016 and 2015, prepare a common size Balance Sheet.
$\begin{array}{ccccc}\text{Particulars}& & \text{Note}& \text{Amount (Rs)}& \text{Amount (Rs)}\\ & & \text{No.}& 31-3-2016& 31-3-2015\\ \text{1. Equity and Liabilities}& & & & \\ \text{(1) Shareholders' Funds}& & & & \\ \text{(a) Share Capital}& & & 80,00,000& 60,00,000\\ \text{(b) Reserves and Surplus}& & & 12,00,000& 8,00,000\\ \text{(2) Non-current liabilities}& & & & \\ \text{Long term borrowings}& & & 24,00,000& 20,00,000\\ \text{(3) Current liability : Trade Payables}& & & 4,00,000& 12,00,000\\ & \text{Total}& & 1,20,00,000& 1,00,00,000\\ \text{II. Assets}& & & & \\ \text{(1) Non-current Assets}& & & & \\ \text{Fixed Assets}& & & & \\ \text{(a) Tangible}& & & 80,00,000& 60,00,000\\ \text{(b) Intangible}& & & 4,00,000& 12,00,000\\ \text{(2) Current Assets}& & & & \\ \text{(a) Inventories}& & & 24,00,000& 20,00,000\\ \text{(b) Cash and cash equivalents}& & & 12,00,000& 8,00,000\\ & \text{Total}& & 1,20,00,000& 1,00,00,000\end{array}$

When does the flow of cash take place?

A and B are partners in a firm sharing profits and losses in the ratio of 3: 2. They decide to admit C into partnership with $\frac{1}{4}$ share in profits. C will bring in Rs.30,000 for capital and the requisite amount of goodwill premium in cash. The goodwill of the firm is valued at Rs. 20,000. The new profit sharing ratio is 2 : 1: 1. A and B withdraw their share of goodwill. Given necessary journal entries.

Where a company creates a Debenture Redemption Reserve for the redemption of such debentures, the amount shall be credited, out of its ___every year until such debentures are redeemed.

In case of forfeiture, we debit share capital account by which amount?

Calculate Debt Equity Ratio from the following information:

$\begin{array}{cc}& \text{Rs.}\\ \text{Equity Share Capital}& 3,00,000\\ \text{Preference Share Capital}& 1,00,000\\ \text{General Reserve}& 1,30,000\\ \text{Securities Premium}& 40,000\\ \text{Profit \& Loss Balance}& 70,000\\ \text{10 \% Debentures}& 4,50,000\\ \text{Loan from Bank}& 3,50,000\\ \text{Current Liabilities}& 20,000\end{array}$

Under which major headings and sub-headings will the following items be shown in the Balance Sheet of a company as per Schedule III Part I of the Companies Act, 2013 :

(i) Net loss as shown by Statement of Profit and Loss

(ii) Capital redemption reserve.

(iii) Bonds

(iv) Loans repayable on demand

(v) Unpaid dividend

(vi) Buildings

(vii) Trademarks

(viii) Raw materials

Under which head the following items of a non-financial company will be shown :

(i) Sales (ii) Sale of Scrap (iii) Dividend received (iv) Interest earned (v) Profit on sale of fixed asset and (vi) Profit on sale of investments.

For non-financing company, the payment of interest is a/an _______

Can you sell debentures anytime to another person who is willing to buy?

The total profit as on 31.3.2018 is Rs. 1,25,000 and a partner died on 31st December 2018. Profit earned till 31st December is Rs. 93,750. So what is his share of profit if the profit sharing ratio is equal.

The liability of the shareholders of a company is always limited to the ____________ of the share they have subscribed.

Forfeited share is available to the company for which use?

Given that net sales is Rs 1,20,000 and gross profit is Rs 30,000. The gross profit ratio is ___

Which of the following would a company use as the base amount when completing a common size analysis on a balance sheet?

What amount is shown for forfeited shares in the financial statement?

Current Ratio is 3.5 : 1. Working Capital is Rs. 90,000. Calculate the amount of Current Assets and Current Liabilities.

A company forfeited shares of Rs. 100 each. Rs. 35 has been paid by the shareholder Rs. 65 is the unpaid amount. Now on reissue of such shares at discount, how much could be the maximum discount?

A firm is unable to pay debts when ___________

Mannu and Shristhi are partners in a firm sharing profit in the ratio of 3:2. Following is the balance sheet of the firm as on March 31,2006.

Balance Sheet

as on March 31, 2006

$\begin{array}{cccccc}\text{Liabilities}& & \text{Amt. (Rs)}& \text{Assets}& & \text{Amt. (Rs)}\\ \text{Mannu's Capital}& 30,000& & \text{Drawings}& & \\ \text{Shristhi's Capital}& \underset{–}{10,000}& 40,000& \text{Mannu}& 4,000& \\ & & & \text{Shristhi}& \underset{–}{2,000}& 5,000\\ & & & \text{Other Assets}& & 34,000\\ & & \underset{–}{\overline{\underset{–}{40,000}}}& & & \underset{–}{\overline{\underset{–}{40,000}}}\end{array}$

Profit for the year ended March 31, 2006 was Rs 5,000 which was divided in the agreed ratio, but interest 5% pa on capital and 6% pa on drawings was inadvertently enquired. Adjust interest on drawings on an average basis for 6 months. Give the adjustment entry.

Charge and appropriation of profits are ____________.

Pankaj, Naresh and Saurabh are partners sharing profits in the ratio of 3 : 2 : 1. Naresh retired from the firm due to his illness. On that date the balance sheet of the firm was as follws :

Books of Pankaj, Naresh and Saurabh
BALANCE SHEET
as at March 31, 2007

$\begin{array}{cccccc}\text{Capital and Liabilities}& & \text{Rs}& \text{Assets}& & \text{Rs}\\ \text{General Reserve}& & 12,000& \text{Bank}& & 7,600\\ \text{Sundry Creditors}& & 15,000& \text{Debtors}& 6,000& \\ \text{Bills Payable}& & 12,000& \text{Less : Provision for}& & \\ \text{Outstanding Salary}& & 2,200& \text{Doubtful Debts}& \underset{–}{400}& 5,600\\ \text{Provision for Legal Damages}& & 6,000& \text{Stock}& & 9,000\\ \text{Capitals :}& & & \text{Furniture}& & 41,000\\ \text{Pankaj}& 46,000& & \text{Premises}& & 80,000\\ \text{Naresh}& 30,000& & & & \\ \text{Saurabh}& \underset{–}{20,000}& 96,000& & & \\ & & \overline{\underset{–}{\underset{–}{1,43,200}}}& & & \overline{\underset{–}{\underset{–}{1,43,200}}}\end{array}$

Additional Information :

(i) Premises have appreciated by 20%, stock depreciated by 10% and provision for doubtful debts was to be made 5% on debtors. Further provision for legal damages is to be made for Rs 1,200 and furniture to be brought up to Rs 45,000.

(ii) Goodwill of the firm be valued at Rs 42,000.

(iii) Rs 26,000 from Naresh's Capital account be transferred to his loan account bearing interest 12% p.a. and balance be paid through bank; if required, necessary loan may be obtained from Bank.

(iv) New profit sharing ratio of Pankaj and Saurabh is decided to be 5 : 1.

(v) Naresh decided that every year interest on his loan shall be used for educating a girl child from poor family.

Give necessary ledger accounts and balance sheet of the firm after Naresh's retirement. Identify the values conveyed by Naresh.

$$\begin{array}{cc}\text{Items}& \text{Amt. (Rs.)}\\ \text{Equity Share Capital}& 75,000\\ \text{Preference Share Capital}& 25,000\\ \text{General Reserve}& 50,000\\ \text{Accumulated Profits}& 30,000\\ \text{Debentures}& 75,000\\ \text{Sundry Creditors}& 40,000\\ \text{Outstanding Expenses}& 10,000\\ \text{Preliminary Expenses to be written off}& 5,000\end{array}$$

Ashwathi Ltd. issued 40,00,000, $10\%$ Debentures of Rs 50 each at a discount of $8\%$ on April 1, 2010, redeemable in four equal annual instalments starting with March 31, 2013. Securities premium account shows a balance of Rs 70,00,000. Compute the amount of discount/loss to be written off and also record the journal entries in the books of Ashwathi Ltd.

L and M were partners in a firm sharing profit in the ratio of 2 :3. On 28-2-2016 the firm was dissolved. After transferring assets (other than cash) and outsiders' liabilities to realisation account you are given the following information :

(a) A creditor for Rs. 1,40,000 accepted building valued at Rs 1,80,000 and paid to the firm Rs. 40,000.

(b) A second creditor for Rs. 30,000 accepted machinery valued at Rs. 28,000 in full settlement of his claim.

(c) A third creditor amounting to Rs. 70,000 accepted Rs. 30,000 in cash and investments of the book value of Rs. 45,000 in full settlement of his claim.

(d) Loss on realisation was Rs 4,000.

Pass necessary Journal entries for the above transactions in the books of the firm assuming that all payments were made by cheque.

How will you deal with the following item while preparing the Income and Expenditure Account for the year ending on March 31, 2016, and a Balance sheet as on that date in cash of the following case?

$\begin{array}{ccc}& \text{As at 1-4-2015}& \text{As at 31-3-2016}\\ & \text{(Rs)}& \text{(Rs)}\\ \text{Creditors for sports materials}& 2,000& 1,300\\ \text{Stock of sports materials}& 3,000& 500\end{array}$

When the unrecorded liability is taken over by a partner, which account is credited ?

Comment on the fixed capital requirements of the following industries giving suitable reasons.

(i) A construction firm, which has provisions to lease earth moving equipment and bulldozers.

(ii) The electronic goods manufacturer who has entered into collaboration with a giant firm in South East Asia.

X & Y are partners sharing profit in the ratio of 5:3. Z is admitted as a new partner. X surrendered 1/5th of his share & Y surrendered 1/3rd of his share in favor of Z. What shall be the sacrificing ratio ?

Ram, Manohar & Joshi were partners in a firm. Joshi died on 28th February. His share in profits from the closure of the last accounting year ended 31st December till the date of death was to be calculated on the basis of avg. of 3 completed years of profits before death. Profits of the last 3 years were 7000, 8000 & 9000 respectively. Calculate Joshi`s share of profits.

Aparna, Manisha and Sonia are partners sharing profits in the ratio of 3 : 2 : 1. Manisha retires and goodwill of the firm is valued at Rs.1,80,000. Aparna and Sonia decided to share future profits in the ratio of 3 : 2. Pass necessary journal entries.

Grizzly Bear, financial manager of a US-based company, incurs substantial start-up costs. After launching his product in the market, he analysed that it is difficult to sell the product in the market, but he spent a lot in start-up expenses.

(i) Discuss why the financial plan is a failure.

(ii) Which values of a manager are displayed in this case?

Securities premium account cannot be utilized for _________.

State the ratio in which the partners share the accumulated profits when there is a change in the profit sharing ratio amongst existing partners.