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Opening Inventory Rs. 29,000; Closing Inventory Rs. 31,000; Revenue from Operations (Sales) Rs. 3,20,000; Gross Profit Ratio 25% on Revenue from Operations.
Calculate:
(i) Inventory Turnover Ratio and
(ii) Average Age of Inventory.

Following information is given to you :

$\begin{array}{ccc}& & \text{Rs.}\\ \text{Revenue from Operations}& & 4,40,000\\ \text{Less: Purchases}& 2,50,000& \\ \text{Changes in Inventories}& & \\ \text{(Opening Inventory - Closing Inventory)(40,000 - 20,000)}& 20,000& \\ \text{Direct Expenses}& \underset{–}{30,000}& \underset{–}{3,00,000}\\ \text{Gross Profit}& & \underset{–}{1,40,000}\end{array}$

$\begin{array}{c}\\ \text{BALANCE SHEET}\\ asat31stMarch,2018\end{array}\begin{array}{cccc}& Particulors& Note& \text{Rs.}\\ & & No& \\ I.& \text{EQUITY AND LIABILITIES:}& & \\ & \text{Shareholder's Funds:}& & \\ & \text{(a) Share Capital}& & 3,00,000\\ & \text{(b) Reserve and Surplus}& 1& 1,00,000\\ & \text{Current Liabilities :}& & \\ & \text{(a) Trade Payables}& & 1,50,000\\ & \text{(b) Other Current Liabilities}& 2& 50,000\\ & \text{TOTAL}& & \overline{\underset{–}{6,00,000}}\\ \text{II}.& \text{ASSETS}:& & \\ & \text{Non-Current Assets}& & 4,00,000\\ & \text{Current Assets}:& & \\ & \text{(a) Inventory}& & 20,000\\ & \text{(b) Trade Receivable}& & 1,00,000\\ & \text{(c) Cash \& Cash Equivalents}& & 80,000\\ & \text{TOTAL}& & \overline{\underset{–}{6,00,00}}\end{array}$

Notes : (1) Reserve & Surplus :

Profit & Loss Balance $\underset{–}{1,00,000}$

(2) Other Current Liabilities

Outstanding Salary $\underset{–}{50,000}$

On the basis of the informations given above, calculate any two of the following ratios :

(i) Current Ratio,

(ii) Inventory Turnover Ratio, and

(iii) Proprietary Ratio.

Employee benefit expenses can be increased due to :

Which of the following is regarded as apt to show the purchase of a fixed asset?

Tyre Centre Ltd. Manufacturers tubeless radial tyre for cars. It has laid down the quality standards as follows:

Weight 6.5 kgs, Content of Rubber – 90$\%$; Steel wiring used for making beading of the tyre – 10 $\%$; Depth – 8 mm to 10 mm. After manufacturing some tyres, they adopted a system which would enable them to verify whether the above standards set were accurate and objective or not. But they found that it was not accurate in terms of quality. Therefore, they re-processed it. Identify the system which enables the management to verify whether the standards set are accurate and objective (or not). Specify the importance of this system in the context of the case.

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 3000 at the end of each quarter.

Beginning Salaries Payable − Ending Salaries Payable + Salaries Expense is equal to___

A sports club received Rs 20,000 as a donation of which Rs 5,000 is given specifically for conducting a tournament. How much amount is shown as an income in income and expenditure account?

Which option exhibits the incorrect rules of collocation?

Whenever the mutual rights of the partners change, then the partner who makes a sacrifice must be compensated.

Refer the data in the table below:

$\begin{array}{cc}\text{Particulars}& 2005-06\\ \text{Reveue from Operations}& 4,00,00,000\\ \text{Other Income}& 50,00,000\\ \text{Purchase of stock in trade}& 40,00,000\\ \text{Employee Benefit Expenses}& 10,00,000\\ \text{Depreciation and Amortization}& 65,00,000\\ \text{Profit before tax}& 2,35,00,000\end{array}$

Apply common size analysis to Profit before tax.

Write the various matters that need adjustments at the time of retirement of partners.

What does a negative figure in the cash flow from operating activity indicate?

When the firm ceases its operations completely, it is called _____________

After the dissolution of a firm, the authority of a partner to bind the firm:

A shopkeeper bought soaps and detergents for ₹ 2000 and sold it at 50% profit. Find his profit.

Which account needs to credited for writing off discount on issue of debentures over the span of debentures?

___________ = Non current assets + current assets - current liabilities.

All other expenses not classified under other heads will be classified under ___

Amount of forfeited shares is shown by ________ to subscribed capital.

A, B and C were partners in a firm sharing profits in the ratio of 4 : 3 : 3. On 01-04-2015, they decided to dissolve the firm. On that date A's capital was Rs. 1,25,000, B's capital was Rs. 45,000 and C's capital was Rs. 15,000 (Dr.). The creditors amounted to Rs. 23,150 and cash in hand was Rs. 3,920. The assets realised Rs. 1,44,910 and the expenses of dissolution were Rs. 1,860. Prepare realisation account and show your workings clearly.

$\begin{array}{c}\\ \text{STATEMENT OF PROFIT AND LOSS}\\ fortheyearended31stMarch,2018\end{array}\begin{array}{cccc}& \text{Particulars}& \text{Note}& \text{Rs.}\\ & & \text{No.}& \\ \text{I.}& \text{Revenue from Operations (Sales)}& & 8,00,000\\ \text{II.}& \text{Other Income}& & 25,000\\ \text{III.}& \text{Total Revenue (I + II)}& & \underset{–}{\overline{8,25,000}}\\ & & & \\ \text{IV}& \text{Expenses :}& & \\ & \text{Puchase of Stock in Trade}& & 5,40,000\\ & \text{Change in Inventories of Stock in Trade}& 1& 20,000\\ & \text{Employee Benefit Expenses}& & 90,000\\ & \text{Depreciation and Amortization Exp.}& & 15,000\\ & \text{Other Exp.}& & 10,000\\ & \text{Total Expense}& & \underset{–}{\overline{6,75,000}}\\ \text{V.}& \text{Profit before Tax (III-IV)}& & 1,50,000\\ & \text{Less : Tax}& & 30,000\\ \text{VI.}& \text{Profit after Tax}& & \overline{\underset{–}{1,20,000}}\end{array}$

Notes to Accounts :

$\begin{array}{ccc}& \text{Particualars}& \text{Rs.}\\ 1.& \text{Change in Inventories of Stock in Trade :}& \\ & \text{Openting Inventory}& \text{80,000}\\ & \text{Less : Closing Inventory}& \text{60,000}\\ & & \overline{\underset{–}{20,000}}\end{array}$

State the meaning of Receipt and Payment Account.

Interest expenses & borrowing costs etc are shown under ___

Determine working capital turnover ratio if, current assets is Rs 1,50,000, current liabilities is Rs 1,00,000 and revenue from operations is Rs 3,00,000.

Which financial statement will allow you to determine the net profit of the company?

Increase in current liabilities like accounts payable, accrued liabilities, income tax payable etc. are _________ under indirect method.

In case of Revaluation account is not prepared, the assets and liabilities appear in the books of the reconstituted firm at their :

Calculate Working Capital Turnover Ratio from the following information :

$\begin{array}{cc}& \text{Rs.}\\ \text{Current Assets}& 1,80,000\\ \text{Current Liabilities}& 30,000\\ \text{Cost of Revenue from Operations}& 10,00,000\\ \text{Gross Profit}& \text{20\% of Cost}\end{array}$

The shopkeeper shows a bill of Rs. 551.50. He says there is a discount of 10%. What is the approximate amount that I should pay?

Define Partnership Deed.

In case of revaluation loss, it should be borne by

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

ABC Company has shareholders' equity of Rs 20,00,000 and total assets of Rs 50,00,000. There is no goodwill on its balance sheet, nor any intangible assets. Its proprietary ratio is:

The amount receivable on reissue of shares together with the amount forfeited, shall not, in any case be less than the original issue price of the shares.

____________ of total assets to debt ratio indicates that assets have been mainly financed by owners funds and the long-term loans are adequately covered by assets.

Subscription received during the year Rs 1,80,000; Subscriptions outstanding at the end of the year Rs 20,000; Subscriptions received in advance at the end of the year Rs 10,000. The amount of subscription to be credited to Income and Expennditure account is ______

Workmen Compensation Reserve to the extent of liability should be credited to ______________

Why we can't find a relation between a physical quantity depending on more than 3 quantities using dimensional method ?

R and M were partners in a firm sharing profits in the ratio of 7:5. Their respective fixed capitals were R Rs 10,00,000 and M Rs 7,00,000. The partnership deed provided for the following :

(i) Interest on capital 12% p.a.

(ii) R's salary Rs 6,000 per month and M's salary Rs 60,000 per year. The profit for the year ended 31-03-2007 was Rs 5,04,000 which was distributed in 3:2 without providing for the above. Pass an Adjustment entry.

Subscription received but not yet earned is considered as a/an ________.

Which of the following is/are correct about SARFAESI Act, 2002?

Code:

On December 1, ABC Co. hired Juanita Perez to begin working on January 2 at a monthly salary of Rs. 14,000. ABC's balance sheet of December 31 will show a liability of?

A, B, C and D are partners sharing profits in the ratio of 3:3:2:2 respectively. D retires and A, B and C decide to share the future profit in the ratio of 3:2:1 Goodwill of the firm is valued at Rs 60,000. Goodwill already appears in the books at Rs 4,50,000. The profits for the first year after D's retirement amount to Rs 12,00,000. Give the necessary journal entries to record goodwill and to distribute the profile. Show the calculations clearly.

Rakesh and Roshan are partners, sharing profits in the ratio of 3 : 2 with capitals of Rs 40,000 and Rs 30,000, respectively. They withdrew from the firm the following amounts, for their personal use

$\begin{array}{ccc}\text{Rakesh}& \text{Month}& \text{Amt. (Rs)}\\ & \text{May 31, 2006}& 600\\ & \text{June 30, 2006}& 500\\ & \text{August 31, 2006}& 1,000\\ & \text{November 1, 2006}& 400\\ & \text{December 31, 2006}& 1,500\\ & \text{January 31, 2007}& 300\\ & \text{March 1, 2007}& 700\\ \text{Rohan}& \text{At the beginning of each month}& 400\end{array}$

Interest is to be charged 6% pa. Calculate interest on drawings, assuming that book of accounts are closed on March 31, 2007, every year.

Explain the factors affecting the dividend decision.