Explore topic-wise InterviewSolutions in .

If some goodwill already exists in the books and the new partner brings in his share of goodwill in cash, how will you deal with existing amount of goodwill ?

An example of cash flow from operating activity for financing company:

If all the partners, but one are solvent it is ___________.

This method draws data from the income statement using cash receipts and cash disbursements from operating activities. The net of the two values is the operating cash flow. This method is___

If sales is Rs 5,00,000 and net profit is Rs 1,20,000. Net Profit ratio is ___

If the price of rice is increased by 20 % today , at what percent should it be decreared tomorrow, so as to bring down the price back to the original

Gwalior Ltd. is in the business of manufacturing woolen garments. It decided to donate woollen clothes, blankets and other garments for flood affected areas of Jammu and Kashmir. Following particulars are obtained from the Company's books :

$\begin{array}{ccc}\text{Particulars}& 31-03-2014& 31-03-2015\\ & \text{(Rs)}& \text{(Rs)}\\ \text{Revenue from Operations}& 30,00,000& 40,00,000\\ \text{Purchase of Stock in Trade}:& 19,00,000& 20,00,000\\ \text{Changes in Inventories}& (1,00,000)& 2,00,000\\ \text{Other Expenses}& 1,80,000& 1,76,000\end{array}$

You are required to :

(a) Prepare a Comparative Statement of Profit & Loss, and

(b) Identify the value involved.

Sanjay, Tarun and Vineet shared profit in the ratio of 3 : 2 : 1 on December 31, 2012 Their balance sheet was as follows:
$$\begin{array}{cccccccc}& & & & \text{Balance Sheet of Sanjay, Tarun and Vineet}& & & \\ & & & & \text{as on December 31 2013}& & & \end{array}$$
$$\begin{array}{ccccc}\text{Capital and Liabilities}& & \text{Amt.}& \text{Assets}& \text{Amt.}\\ \text{Capitals}& & & \text{Plant}& 90,000\\ \text{Sanjay}& 1,00,000& & \text{Debtors}& 60,000\\ \text{TArun}& 1,00,000& & \text{Furniture}& 32,000\\ \text{Vineet}& \underset{–}{70,000}& 2,70,000& \text{Stock}& 60,000\\ \text{Creditors}& & 80,000& \text{Investments}& 70,000\\ \text{Bank Payable}& & 30,000& \text{Bills Receivable}& 36,000\\ & & & \text{Cash in Hand}& 32,000\\ & & \underset{–}{}& & \underset{–}{}\\ & & 3,80,000& & 3,80,000\\ & & \underset{–}{}& & \underset{–}{}\end{array}$$
On this date, the firm was dissolved. Sanjay was appointed to realise the assets. Sanjay was to receive 6 % commission on the sale fo assets (except cash) and was to bear all expenses of realisation.
Sanjay realised the assets as follows:
Plant Rs. 72,000, Debtors Rs. 54,000, Furniture Rs. 18,000, Stock 90% of the book value. Investments Rs. 76,000 and biills receivable Rs. 31,000. Expenses of realisation amounted to 4,500. Prepare realisation account, capital account and cash account.

Assam Tea Ltd. decided to donate 5 $\%$ of its net profit every year to a Non-Government Organisation (N.G.O), that is engaged in providing clean drinking water in the rural areas of Assam. Following particulars are related to the Statement of Profit & Loss of the Company for two consecutive years :

$\begin{array}{ccc}\text{Particulars}& \mathrm{31.03.2017}& \mathrm{31.03.2016}\\ & \text{Rs.}& \text{Rs.}\\ \text{Revenue from Operations}& 75,00,000& 60,00,000\\ \text{Other Incomes}& 1,20,000& 1,50,000\\ \text{Expenses}& 50,60,000& 44,00,000\\ \text{Income Tax}& 40\%& 35\%\end{array}$

You are required to Prepare the Comparative Statement of Profit & Loss

Which of the following economists defined money as, ‘Money is what money does’?

The chief cause for the low rate of capital formation is the low rate of

The passage implies that the judging of literary works according to preconceived rules:

Where all the partners except one die, it is known as ___

Goodwill brought in by the incoming partner in cash for joining in a partnership firm is adjusted by giving affect to old partners capital accounts in:

On dissolution, how you deal with partner’s loan if it appears on the

(a) Assets side of the Balance Sheet.

(b) Liabilities side of the Balance Sheet.

Ashish and Dutta were partners in a firm sharing profits in 3 : 2 ratio. On Jan 1, 2007, they admitted Vimal for $\frac{1}{5}$ share in the profits.The balance sheet of Ashish and Dutta as on Jan 1, 2007 was as follows.

$\text{Balance Sheet of A and B}$
$\text{as on 1.1.2007}$
$\begin{array}{cccc}\text{Capital and Liabilities}& \text{Amt. (Rs)}& \text{Assets}& \text{Amt. (Rs)}\\ \text{Creditors}& 15,000& \text{Land and Building}& 35,000\\ \text{Bills Payable}& 10,000& \text{Plant}& 45,000\\ \text{Ashish's Capital}& 80,000& \text{Debtors}22,000& \\ \text{Dutta's Capital}& 35,000& \text{(-) Provisions}\underset{–}{(2,000)}& 20,000\\ & & \text{Stock}& 35,000\\ & & \text{Cash}& 5,000\\ & \overline{\underset{–}{\underset{–}{1,40,000}}}& & \overline{\underset{–}{\underset{–}{1,40,000}}}\end{array}$

It was agreed that.

(i) The value of land and building be increased by Rs. 15,000.

(ii) The value of plant be increased by 10,000.

(iii) Goodwill of the firm be valued at Rs 20,000.

(vi) Vimal to bring in capital to the extent of $\frac{1}{5}$ th of the total capital of the new firm.

Record the necessary journal entries and prepare the balance sheet of the firm after Vimat's admission.

On 1st April, 2017, Adi Shakti Maa Ltd. was formed with an authorised capital of Rs 10,00,000 divided into 1,00,000 equity share of Rs 10 each. The company issued prospectus inviting applications for 90,000 equity shares. The company received applications for 85,000 equity shares. During the first year Rs 8 per share were called. Ram holding 1,000 shares and Shyam holding 2,000 shares did not pay the first call of Rs 2 per share. Shyam's shares were forfeited after the first call and later on 1,500 of the forfeited shares were re-issued at Rs 6 per share, Rs 8 called up. Show how Share Capital in the Balance Sheet of the company as per Revised Schedule III, Part I of the Companies Act, 2013 is to be presented.

A and B were partners in a firm sharing profits and losses in the ratio 3 : 2. They admit C into the partnership with $\frac{1}{6}$ share in the profits. Calculate the new profit sharing ratio.

Following information is given to you :
(I) Inventory Turmover Ratio 5 Times

(II) Inventory at the end is Rs. 5,000 more than the inventory in the beginning.

(III) Revenue from Operations (all credit) Rs. 2,00,000

(IV) Gross Profit Ratio $\frac{1}{4}$ on cost.

(V) Current Liabilities Rs. 60,000.

(VI) Quick Ratio 0.75.

Calculate (i) Cost of Revenue from Operations, (ii) Opening Inventory Closing inventory, and (iii) Quick Assets and Current Assets.

Synergy means interaction between two or more organizations, to produce a combined effect _______ than the sum of their separate effects.

Prepare a common size Balance Sheet and comment on the financial position of G Ltd. and L Ltd. The Balance Sheet of G Ltd. and L Ltd. as at 31.03.2018 are given below :

$\begin{array}{cccc}\text{Particulars}& \text{Note}& \text{G.Ltd}& \text{L. Ltd}\\ & \text{No.}& & \\ \text{I. EQUITY AND LIABILITIES:}& & \text{Rs}& \text{Rs}\\ \text{(1) Shareholder's Funds}& & 3,00,000& 4,00,000\\ \text{(2) Non-Current Liabilities}& & 2,00,000& 3,00,000\\ \text{(3) Current Liabilities}& & \underset{–}{1,00,000}& \underset{–}{50,000}\\ \text{TOTAL}& & \underset{–}{\underset{–}{6,00,000}}& \underset{–}{\underset{–}{7,50,000}}\\ \text{II. ASSETS:}& & & \\ \text{(1) Non-Current Assets}& & & \\ \text{(i) Tangible Assets}& & 2,50,000& 3,00,000\\ \text{(ii) Intangible Assets}& & 1,50,000& 1,00,000\\ \text{(2) Current Assets}& & 2,00,000& 3,50,000\\ \text{TOTAL}& & \overline{\underset{–}{\underset{–}{6,00,000}}}& \overline{\underset{–}{\underset{–}{7,50,000}}}\end{array}$

Is 'Reserve Capital' a part of 'Unsubscriptd Capital' or 'Uncalled Capital'?

Partner's capital A/c is debited :

The following groups of ratios are primarily measure risk:

For buyers of consumer durable products, what 'customer care services' would you plan as a manager of a firm marketing new brand of motorcycle. Discuss.

On the dissolution of the firm, cash in hand is transferred to ______________.

Accumulated Profits/ Losses & Reserves on the retirement of a partner is shared by the partners in their :

Why do firm revaluate assets and reassess their liabilities on retirement or on the event of death of a partner?

__________ is similar to profit and loss account prepared for other organisations.

Liquidity ratios are expressed in ___

Which shareholders are given priority over the other shareholders for dividend or repayment of the capital of the company?

Which financial statement presents a summary of the Assets, Liabilities, and Shareholders' Fund of a company?

Calculate the return on capital employed (ROI) from the following information:

Capital employed is 1,00,000

Net profit on sales is 6%

Gross Profit Margin 90,000 (15%)

In which of the following public debts, the economy has not increased the considerable productive capacity?

Anita, Jaya and Nisha are partners sharing profits and losses in the ratio of 1:1:1 Jaya retires from the firm. Anita and Nisha decided to share the profit in future in the ratio 4 :3. Calculate the gaining ratio.

NSE commenced future trading in the year

(a) 1999

(b) 2000

(c) 2001

(d) 2002

If current assets increase, we will __________ the value in the cash flow statement.

Kajol and Sunny were partners sharing profits and losses in the ratio of 3:2. The following Balances were extracted from the books of account for the year ended March 31, 2006.

$\begin{array}{ccc}\text{Account Name}& \text{Amt. (Dr)}& \text{Amt. (Cr)}\\ \text{Capital}& & \\ \text{Kajol}& & 115,000\\ \text{Sunny}& & 91,000\\ \text{Current Accounts (on 1-04-2005)}& & \\ \text{Kajol}& & 4,500\\ \text{Sunny}& 3,200& \\ \text{Drawings}& & \\ \text{Kajol}& 6,000& \\ \text{Sunny}& 3,000& \\ \text{Opening Stock}& 22,700& \\ \text{Purchase and Sales}& 1,65,000& 2,35,800\\ \text{Freight Inward}& 1,200& \\ \text{Returns}& 2,000& 3,200\end{array}$

$\begin{array}{ccc}\text{Account Name}& \text{Amt. (Dr)}& \text{Amt. (Cr)}\\ \text{Printing and Stationery}& 900& \\ \text{Wages}& 5,500& \\ \text{Bills Receivables and Bills}& 25,000& 21,000\\ \text{Payables}& & \\ \text{Discount}& 400& 800\\ \text{Salaries}& 6,000& \\ \text{Rent}& 7,200& \\ \text{Insurance Premium}& 2,000& \\ \text{Travelling Expenses}& 700& \\ \text{Soundry Expenses}& 1,100& \\ \text{Commission}& & 1,600\\ \text{Debtors and Creditors}& 74,000& 78,000\\ \text{Building}& 85,000& \\ \text{Plant and Machinery}& 70,000& \\ \text{Motor Car}& 60,000& \\ \text{Furniture and Fixtures}& 15,000& \\ \text{Bad Debts}& 1,500& \\ \text{Provision for Doubtful Debts}& & 2,200\\ \text{Loan}& & 25,000\\ \text{Legal Expenses}& 300& \\ \text{Audit Fee}& 900& \\ \text{Cash in Hand}& 7,500& \\ \text{Cash at Bank}& 12,000& \\ & \overline{\underset{–}{5,78,100}}& \overline{\underset{–}{5,78,100}}\end{array}$

Prepare final accounts for the year ended March 31, 2006, with following adjustments

(a) Stock on March 31, 2006 was Rs 37,500.

(b) Bad debts Rs 3,000; Provision for bad debts is to be made at 5% on debtors.

(c) Rent prepaid were Rs 1,200.

(d) Wages outstanding were Rs 2,200.

(e) Interest on capital to be allowed on capital at 6% per annum and interest on drawings to be charged 5% per annum.

(f) Kajol is entitled to a Salary of Rs 1,500 per annum.

(g) Prepaid insurance was Rs 500.

(h) Depreciation was charged on Building, 4%; Plant and Machinery 5% Motor car, 10% and Furnniture and Fixture, 5%.

(i) Goods worth Rs 7,000 were destroyed by fire on January 20, 2005. Insurance company agreed to pay Rs 5,000 in full settlement of the case.

Debentures can be redeemed :

As per the Schedule III, all items of assets and liabilities are to be bifurcated between current and non-current portions.

Which of the following statement is false regarding receipts & payments account?

Determine stock turnover ratio if, Opening stock is Rs 31,000, Closing stock is Rs 29,000, Sales is Rs 3,20,000 and Gross profit ratio is 25% on sales.

A and B are partners in a firm sharing profits and losses in the ratio of 3:2. C is admitted for $\frac{1}{5}$th share in profits of the firm. Calculate the new profit sharing ratio of the partners if,

(a) C gets it equally from A and B

(b) C gets it from A and B in the ratio of 2:1

(c) C gets it wholly from A

(d) C gets it wholly from B

(e)C gets it $\frac{3}{20}$ from A and $\frac{1}{20}$ from B.

Income and expenditure account shows ___

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

(i) Debentures. (ii) Loose tools.

(iii) Calls-in-Advance. (iv) Stores and spares.

(v) Proposed dividend. (vi) Computer software.

Amounts earned by a company in its main operating activities are__________

Cash Balance will be classified under -

In the case of financial enterprises, the cash flow resulting from interest paid should be classified as cash flow from ..............