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The trade payables turnover ratio is a measure of ___

Bank would give preference to borrowers who have a __________________.

A higher value of interest coverage ratio ratio indicates __________ relative to debts.

Authorised capital is known as __________.

What must be debited for accounting salary to partners?

What is meant by investment decision? State any three factors which affect the investment decision.

A non-profit organization received Rs. 10,000 as the entrance fee of a new member. If 20% of the fee has to be capitalized, what is the amount of fee needs to be shown in the income and expenditure account?

On 1-1-2008, Uday and Kaushal entered into partnership with fixed capitals of Rs 7,00,000 and Rs 3,00,000 respectively. They were doing good business and were interested in its expansion but could not do the same because of lack of capital. Therefore, to have more capital, they admitted Govind as a new partner on 1-1-2010. Govind brought Rs 10,00,000 as capital and the new profit sharing ratio decided was 3 : 2 : 5. On 1-1-2012, another new partner Hari was admitted with a capital of Rs 8,00,000 for $\frac{1}{10}$th share in the profits, which he acquired equally from Uday, Kaushal and Govind. On 1-4-2014 Govind died and his share was taken over by Uday and Hari equally.

Calculate :

(i) The sacrificing ratio of Uday and Kaushal on Govind's admission.

(ii) New profit sharing ratio of Uday, Kaushal, Govind and Hari on Hari's admission.

(iii) New profit sharing ratio of Uday, Kaushal and Hari on Govind's death.

Liquid ratio is also known as ___

Anup and Sumit are equal partners in a firm. They decided to dissolve the partnership on December 31, 2102. When the balance sheet is as under

$$\begin{array}{cccccccc}& & & & \text{Balance Sheet of Anup and Sumit}& & & \\ & & & & \text{as on December 31, 2012}& & & \end{array}$$
$$\begin{array}{cccccc}\text{Capital and Liabilities}& & \text{Amt.}& \text{Assets}& & \text{Amt.}\\ \text{Sundry Creditors}& & 27,000& \text{Cash at bank}& & 11,000\\ \text{Reserve Fund}& & 10,000& \text{Sundry Debtors}& & 12,000\\ \text{Loan}& & 40,000& \text{Plants}& & 47,000\\ \text{Capitals:}& & & \text{Stock}& & 42,000\\ \text{Anup}& 60,000& & \text{Leasehold Land}& & 60,000\\ \text{Sumit}& \underset{–}{60,000}& 1,20,000& \text{Furniture}& & 25,000\\ & & \underset{–}{}& & & \underset{–}{}\\ & & 1,97,000& & & 1,97,000\\ & & \underset{–}{}& & & \underset{–}{}\end{array}$$
The assets were realised as follows
$$\begin{array}{cc}\text{Leasehold Land}& Rs.72,000\\ \text{Furniture}& Rs.22,500\\ \text{Stock}& Rs.40,500\\ \text{Plant}& Rs.48,000\\ \text{Sundry Debtors}& Rs.10,500\end{array}$$

The creditors were paid Rs. 25,500 in full settlement. Expenses of realisation amount to Rs. 2,500.

Prepare realisation account, bank account, partner's capital account to close the books of the firm.

On March 31, 2003, after the close of books of accounts, the capital accounts of Ram, Shyam and Mohan showed balance of Rs 24,000, Rs 18,000 and Rs 12,000, respectively. It was later discovered that interest on capital 5% had been omitted. The profit for the year ended March 31, 2003, amounted to Rs 36,000 and the partner's drawings had been Ram, Rs 3,600; Shyam, Rs 4,500 and Mohan, Rs 2,700. The profit sharing ratio of Ram, Shyam and Mohan was 3 : 2 : 1. Calculate interest on capital.

Shares are the total capital of the company split into _____________ denominated amounts.

What is the entry for withdrawal of amount brought in as goodwill by old partners?

Prepare a common size Balance Sheet of KJ.Ltd from the following information:

$\begin{array}{cccc}\text{Particulars}& \text{Note}& 31-03-2017& 31-03-2016\\ & \text{No.}& \text{(Rs)}& \text{(Rs)}\\ I.\text{Equity and Liabilities}& & & \\ \text{(1) Shareholder's Funds}& & 8,00,000& 4,00,000\\ \text{(2) Non-current Liabilities}& & 5,00,000& 2,00,000\\ \text{(3) Currnt Liabilities}& & 3,00,000& 2,00,000\\ \text{Total}& & 16,00,000& 8,00,000\\ II.\text{Assets}& & & \\ \text{(1) Non-current Assets}& & 10,00,000& 5,00,000\\ \text{(2) Current Assets}& & 6,00,000& 3,00,000\\ \text{Total}& & 16,00,000& 8,00,000\end{array}$

It is that part of the authorised capital which is actually issued to the public for subscription. It is known as ___

State the two main rights that a newly admitted partner acquires in the firm?

Which of the following statements are true in case of entrance fees?

X & Y share profits in the ratio of 2:3 with capitals of Rs 20,000 & Rs 10,000 respectively. What shall be the amount of interest on capital for Mr. X, if profits of the year are Rs 2,100 & partnership deed provides for interest on capital 6% p.a..

Dogra Ltd. had an authorised capital of 1,00,00,000 divided into equity shares of Rs 100 each. The company offered 84,000 shares to the public at premium. The amount was payable as follows:

On Application Rs 30 per shares.

On Allotment Rs 40 per share (including premium).

On First and Final Call Rs 50 per share.

Applications were received for 80,000 shares. All sums were duly received except the following : Lakhan, a holder of 200 shares did not pay allotment and call money. Paras, a holder of 400 shares did not pay call money.

The company forfeited the shares of Lakhan and Paras. Subsequently, the forfeited shares were re-issued for Rs 80 per share fully paid up. Show the entries for the transaction in the Cash Book and Journal of the company.

OR

Kaya Fab. Ltd. issued 1,00,000 equity shares of Rs 10 each payable as Rs 2 on application, Rs 4 on allotment and Rs 2 each on first and final call. Applications were received for 1,50,000 shares. Applicants of 50,000 shares were sent letters of regret and application money was refunded.

Madhur, a holder of 3,000 shares failed to pay allotment money which he paid along with the first call. Rohan, a shareholder holds 700 shares paid both the calls along with allotment. Sohan, a holder of 1,000 shares did not pay the first call and the final call. His shares were forfeited. The forfeited shares were re-issued at Rs 11 per shares as fully paid up.

Pass necessary Journal entries for the above transactions in the Books of the Company.

Following is the Balance Sheet of Arvind Mehta and Sinha as on 31st March, 2015 who shared profits in the ratio 5: 4 : 1.

$\begin{array}{cccc}\text{Liabilities}& \text{Amount}& \text{Assets}& \text{Amount}\\ & \left(\text{Rs}\right)& & \left(\text{Rs}\right)\\ \text{Capital Account :}& & \text{Machinery}& 2,50,000\\ \text{Arvind}& 2,28,000& \text{Investment}& 84,000\\ \text{Mehta}& 1,70,000& \text{Stock}& 58,000\\ \text{Sinha}& 90,000& \text{Debtors}& 75,000\\ \text{Bills Payable}& 22,000& \text{Bill Receivable}& 38,000\\ \text{Sundry Creditors}& 25,000& \text{Bank}& 48,000\\ \text{Workmen's Compensation Fund}& 26,000& \text{Good will}& 60,000\\ & \overline{6,13,000}& & \overline{6,13,000}\end{array}$

Mehta died on 31st August, 2015. Under the terms of the dead, the executor of the deceased partner was entitled to the following :

(i) Amount standing to the credit of the Partner's Capital Account.

(ii) Interest on Capital 12$\%$ p.a.

(iii) Mehta had withdrawn Rs 23,000 during the current year.

(iv) The deceased partner will be entitled to his share of profit upto the date of death based on the sales during that period which amounted to Rs 2,40,000. The rate of profit during the last three years has been 10$\%$ on sales.

(v) There was a claim on workmen's compensation of Rs 9,000.

(vi) Share of goodwill was to be calculated by taking twice the amount of profit credited to his account in the last year less 20$\%$. Profits for year - 2014-15, Rs 72,000.

(vii) Mehta's executors agreed to take over investment at its book value. 30$\%$ of the balance amount due to be paid immediately and the remaining amount to be transferred to Loan Account to be paid in two annual instalments with interest 10$\%$ p.a.

Prepare Mehta's Capital Account to be rendered to his Executor and Executor's Account on March 31, 2015.

Which of the following determines the elasticity of supply?

Divya and Pooja are partners in a firm, sharing profits and losses in the ratio of 3:2. On 31st March 2015, their Balance Sheet was as under:

BALANCE SHEET OF DIVYA AND POOJA

as at 31st March,2015

$\begin{array}{cccc}\text{Capital and Liabilites}& \text{Rs}& \text{Assets}& \text{Rs}\\ \text{Sundry Creditors}& 9,800& \text{Goodwill}& 16,000\\ \text{General Reserve}& 23,400& \text{Land and Building}& 20,000\\ \text{Profit and Loss A/c}& 4,000& \text{Investments}& 66,000\\ \text{Investment Fluctuation Fund}& 12,600& \text{Sundry Debtors}& 18,600\\ \text{Capital A/cs:}& & \text{Bils Receivables}& 7,400\\ \text{Divya}60,000& & \text{Cash in Hand}& 11,100\\ \text{Pooja}\underset{–}{40,000}& 1,00,000& \text{Advertisement Suspense A/c}& 10,700\\ & \underset{–}{\overline{1,49,800}}& & \underset{–}{\overline{1,49,800}}\end{array}$

The partners decided that with effect from 1st April, 2015, they would share profits and losses equally.

For this purpose, they decided that:

(a) Investments to be valued at Rs 60,000

(b) Goodwill to be valued at Rs 24,000

(c) General Reserve not be distributed between the partners.

You are required to:

(i) Pass journal entries

(ii) Prepare the revised Balance Sheet of the firm.

What is sacrificing ratio? Why is it calculated?

What is partnership ? What are its chief characteristics? Explain.

Under the accrual basis of accounting, revenues are recognised in the accounting period in which -

Non-cash expenses like depreciation, depletion & amortization expense are _______ to net profit before tax under indirect method.

Which of the following would not be a current asset?

Which of the following is a financial incentive ?

Explain how will you deal with goodwill when new partner is not in a position to bring his share of goodwill in cash.

A company has excess finished goods inventory that it does not expect to realize within the company’s operating cycle of fifteen months. It shall be classified as___

Arti and Bharti are partners in a firm sharing profits in 3 : 2 ratio. They admitted Sarthi as a new partner and the new profit-sharing ratio will be 2 : 1 : 1. Sarthi brought Rs 1,00,000 for her share of goodwill. Goodwill already appeared in the books of Arti and Bharti at Rs 60,000.

Pass the necessary Journal entries in the books of the new firm for the above transactions.

'S' Ltd. is manufacturing steel at its plant in India. It is enjoying a buoyant demand for its products as economic growth is at about 7-8% and the demand for steel is growing. It is planning to set-up a new steel plant to capitalise on the increased demand. It is estimated that it will require about Rs. 5000 crore to set-up and about Rs. 500 crore of working capital to start the new plant. What are the role and objectives of financial management for this company?

The main key activity of cash flow activities is:

A ___ Working capital turnover ratio indicates that management is being extremely efficient in using a firm's short-term assets and liabilities to support sales.

Any decrease in the value of the asset will be _______ to the revaluation account

Calculate Cash Flow from Investing Activities from the following particulars:
$$\begin{array}{ccc}& \text{1st April, 2014}& \text{31st March, 2015}\\ & \text{Rs.}& \text{Rs.}\\ \text{Plant and Machinery}& 7,20,000& 8,60,000\end{array}$$

Additional Information:
(i) Depreciation charged during the year Rs. 85,000.
(ii) Plant and machinery having a written down value of Rs. 1,10,000 was sold for Rs. 1,25,000

Where the subscribed debentures are less than the issue of debentures, it is a case of ___________.

Pilot Company has issued 80,000 10% Debentures of Rs.100 each at discount of 10%. These are redeemable at par. How much amount shall be paid to debentureholders at the time of redemption.?

The amount due to the retiring partner is paid according to ___

Disclosures relating to share capital are to be given in ___.

X, Y, and Z are partners in a firm. At the time of division of profit for the year, there was a dispute between the partners. Profit before interest on partners' capital was Rs 12,000. X wanted interest on capital 20% as his capital contributions were 2,00,000 as compared to that of Y & Z which was 1,50,000 and 1,00,000 respectively. What would be the ideal split of profit/ loss?

The face value of debenture is Rs. 100 and the debentures are issued at par and redeemed at par, it means company will pay back ___

The ratio analysis is helpful to management in taking several decisions, but as a mechanical substitute for judgment and thinking, it is worse than useless.

As per Companies Act, 2013, the maximum rate of interest on calls in arrears is_________.

Purchase of a car always means the purchase of a final good. Do you agree?

Securities premium once received __________

Arun, Bhushan and Chetan are partners in a firm sharing profits in 3 : 2 : 3 ratio. They decide to admit Sehzad as a partner, who is associated with them as their selling agent for the last 10 years. Arun surrendered $\frac{1}{3}$ of his share in favour of Sehzad. Bhushan surrendered $\frac{1}{4}$ of his share in favour of Sehzad and Chetan surrendered $\frac{1}{5}$ of his share in favour of Sehzad. (i) Calculate new profit sharing ratio, and (ii) Highlight the values in admitting Sehzad.

The premium on issue of debentures is called ___