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Investments expected to realise beyond operating cycle which is more than twelve months are considered as ____

A shareholder is deprived of his/her membership due to ___

What is meant by redemption of debentures?

Do we need to calculate the value of goodwill in case of dissolution of the firm?

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 for Employee Benefit Expenses

It would be a good indicator for a firm if the total assets to debt ratio is ___________.

(i) Hotel

(ii) Film production house

(iii) Financial enterprise

(iv) Media enterprise

(v) Steel manufacturing unit

(vi) Software development business unit.

Why are 'Reserves and Surplus' distributed at the time of reconstitution of the firm?

State which fo the following would result in inflow/outflow of Cash or Cash Equivalents:
(i) Sale of a fixed asset (book value Rs. 15,000) at a loss of Rs. 5,000
(ii) Cash received from Trade Receivables Rs. 9,000 and allowed discount Rs. 1,000.
(iii) Cash paid to Trade Payables.
(iv) Shares issued for Cash.
(v) Buy- back of Equity Shares.

After transferring the general reserve to partners' capital account, will it be shown in the balance sheet?

Net profit ratio signifies___

Y Ltd. forfeited 400 shares of Rs. 10 each, Rs. 7 called up, for nonpayment of the first call of Rs. 2 per share. Out of these, 300 shares were re-issued for Rs. 6 per share as Rs. 7 paid up. What is the amount to be transferred to Capital Reserve A/c?

What is the amount of Interest on drawings for Ram at 10% p.a. for the year ended 31st March, if his drawings during the year were Rs 24,000.

Following is the Balance Sheet of Future Retail Mart and from the additional information as on 31-03-2017. Prepare Cash Flow Statement.

$\begin{array}{cccc}\text{Particulars}& \text{Note}& 31-03-2017& 31-03-2016\\ & \text{No.}& \left(\text{Rs}\right)& \left(\text{Rs}\right)\\ \text{I. EQUITY AND LIABILITIES}& & & \\ \text{(1) Shareholder's Funds:}& & & \\ \text{(a) Share Capital}& & 5,50,000& 4,75,000\\ \text{(b) Reserves and Surplus}& 1& 1,75,000& 50,000\\ \text{(2) Non-current Liabilities:}& & & \\ \text{Long-term Borrowings}& 2& 2,25,000& 50,000\\ \text{(3) Current Liabilities:}& & & \\ \text{(a) Short-term Borrowings}& 3& 75,000& 37,500\\ \text{(b) Short-term Provisions}& 4& 1,00,000& 62,500\\ \text{Total}& & 11,25,000& 6,75,000\\ \text{II. ASSETS}& & & \\ \text{(1) Non-current Assets:}& & & \\ \text{(i) Fixed Assets}& & & \\ \text{(a) Tangible}& 5& 8,07,500& 4,52,500\\ \text{(b) Intangible}& 6& 50,000& 75,000\\ \text{(ii) Non-current Investment}& & 1,50,000& 50,000\\ \text{(2) Current Assets:}& & & \\ \text{(a) Current Investments}& & 20,000& 35,000\\ \text{(b) Inventories}& 7& 61,000& 36,000\\ \text{(c) Cash and Cash Equivalents}& & 36,500& 26,500\\ \text{Total}& & 11,25,000& 6,75,000\end{array}$

Notes to Accounts :

$\begin{array}{cccc}\text{Note}& \text{Particulars}& 31-03-2017& 31-03-2016\\ \text{No.}& & \left(\text{Rs}\right)& \left(\text{Rs}\right)\\ 1& \text{Reserves and Surplus:}& & \\ & \text{Balance in Profit and Loss}& 1,25,000& 50,000\\ & \text{General Reserve}& 50,000& -\\ 2& \text{Long-term Borrowings :}& & \\ & 10\%\text{Debentures}& 2,25,000& 50,000\\ 3& \text{Short-term Borrowings}:& & \\ & \text{Bank Overdraft}& 75,000& 37,500\\ 4& \text{Short-term Provisions}:& & \\ & \text{Proposed Dividend}& 1,00,000& 62,500\\ 5& \text{Tangible Assets:}& & \\ & \text{Machinery}& 9,12,500& 5,22,500\\ & (-)\text{Accumulated Depreciation}& (1,05,000)& (70,000)\\ & & 8,07,500& 4,52,500\\ 6& \text{Intangible Assets:}& & \\ & \text{Goodwill}& 50,000& 75,000\\ 7& \text{Inventories:}& & \\ & \text{Stock in Trade}& 61,000& 36,000\end{array}$

Additional Information:

(i) During the year a piece of Machinery Costing Rs 80,000 on which accumulated depreciation was Rs 55,000 was sold for Rs 15,000.

From the following Balance Sheet of Akshya Ltd. as on 31-3-2012 and 31-3-2013, prepare a Cash Flow Statement.
$\begin{array}{ccccc}& \text{Particulars}& \text{Note}& 31-3-2013& 31-3-2012\\ & & \text{No.}& \text{(Rs)}& \text{(Rs)}\\ \text{I.}& \text{Equity and Liabilities}& & & \\ & \left(1\right)\text{Shareholders' Funds}& & & \\ & \text{(a) Share Capital}& & 65,000& 45,000\\ & \text{(b) Reserve and Surplus}& 1& 42,500& 24,000\\ & \left(2\right)\text{Current Liabilities}& & & \\ & \text{Trade Payables (Creditors)}& & 11,000& 8,700\\ & \text{Total}& & 1,18,500& 77,700\\ \text{II.}& \text{Assets}& & & \\ & \left(1\right)\text{Non-current Assets}& & & \\ & \text{(a) Fixed Assets}& & 83,000& 46,700\\ & \left(2\right)\text{Current Assets}& & & \\ & \text{(a) Inventories (Stock)}& & 13,000& 11,000\\ & \text{(b) Trade Receivables (Debtors)}& & 19,500& 18,000\\ & \text{(c) Cash and Cash Equivalents (Cash)}& & 3,000& 2,000\\ & \text{Total}& & 1,18,500& 77,700\end{array}$

Notes to Accounts :
$\begin{array}{ccccc}\text{Note}& \text{Particulars}& & \text{31st March, 2013}& \text{31st March, 2012}\\ \text{No.}& & & \text{(Rs)}& \text{(Rs)}\\ \text{1}& \text{Reserves and Surplus}& & & \\ & \text{General Reserves}& & 27,500& 15,000\\ & \text{Balance in Statement of Profit and Loss}& & 15,000& 10,000\\ & \text{Preliminary Expenses}& & \underset{–}{}& (1,000)\\ & \text{Total}& & 42,500& 24,000\end{array}$

Additional Information :

(i) Depreciation on Fixed Assets for the year 2012-13 was Rs 14,700.

(ii) An interim dividend Rs 7,000 has been paid to the shareholders during the year.

In the long run, a business must generate positive net cash flow from which of the following activities, if it is to survive?

Akanksha, Chetna, and Dipanshu are partners in the firm sharing profits and losses in the ratio of 3:2:1. They decide to take Jatin into the partnership for 1/5 share in the future profits. For this purpose, goodwill is to be valued at 2 times the average annual profits of the previous four years. The average profits for the past four years were:

2008 - Rs. 96,000

2009 - Rs. 60,600

2010 - Rs. 62,400

2011 - Rs. 84,400

Calculate the value of goodwill.

Decrease in current assets are ________ under indirect method.

In case a company does not have sufficient funds for the purchase of fixed assets or for payment to creditors it may offer and allot its shares to vendor/ creditors in lieu of cash. In such a case, which account is debited ?

Whenever securities premium is received and the shares are forfeited, what will be the treatment in Securities Premium A/c?

The statement of cash flows clarifies cash flows according to :

Mona Earth Mover Limited decided to issue 12,000 shares of Rs.100 each payable at Rs.30 on application, Rs.40 on allotment, Rs.20 on first call and balance on second and final call. How much amount shall be debited to bank account if only 11,955 shareholders paid the the money due on first call ?

Receipt and Payment Account of Shankar Sports club is given below, for the year ended December 31, 2006.


Prepare Income and Expenditure Account and Balance Sheet with help of following Information:
(a) Subscription outstanding on 31st December 2005 is Rs 1, 200 and Rs 2,300 on 31.12.2006.
(b) Opening stock of postage stamps is Rs 300 and closing stock is Rs 200, Rent Rs 1,500 related to 2005 and Rs 1,500 is still unpaid.
(c) On January 1, 2006 the club owned furniture Rs 15,000, Furniture valued at Rs 22,500 (d) On 31.12.2006. The club took a loan of Rs 20,000 ( 10% p.a.) in 2005.

During an year, a club received Rs 1,00,000 as entrance fees. According to the policy of the club, 40% of the entrance fees is to be capitalized. What amount shall be entered in Income & Expenditure account.

When a debenture is issued at a price below its nominal value, it is said to be issued at ___

Sultan Ltd. was registered with an authorised capital of Rs. 50,00,000 divided in 5,00,000 equity shares of Rs. 10 each. Company invited applications for 3,00,000 equity shares at a premium of Rs. 3 per share, payable as follows : Rs. 4 on Application ; Rs. 5 on Allotment (including premium); Balance as and when required.

Applications were received for 2,75,000 shares and allotment was made to all applicants. All money due on allotment was duly received except from one shareholder holding 1,000 shares.

Show the Balance Sheet of the Company.

Interest on calls in arrears is charged at the rate of :

(a) 5% (b) 10% (c) 7.5% (d) 15%

A, B, C and D are parnters sharing profits in the ratio of 1 : 4 : 3 : 2. D retired and the goodwill is valued at Rs 2,00,000. D's share of goodwill is to be adjusted into the capital accounts of A, B and C who decide to share future profits in the ratio of 4 : 3 : 3. Pass necessary journal entry.

When the directors opt to make a proportionate allotment to all applicants, it is called ______________.

A liability shall be classified as _________ if it is due to be settled within twelve months after the reporting date.

Debt-equity ratio is a sub-part of _______.

Under what circumstances will the premium for goodwill paid by the incoming partner not be recorded in the books of account

Anil, Sunil and Ravinder entered into a partnership on 1st April 2015 to share profits in the ratio of 2:1:1. It was provided in the deed that Ravinder's share of profit will not be less than Rs 70,000 per annum. The losses for the year ended 31st March, 2016 were Rs 2,00,000 before allowing interest Rs 8,000 on Anil's Loan which is due for the current year.

You are required to show necessary account for division of loss and also pass the necessary journal entries.

Mohanlal, Girdharilal and Shyamlal are partners sharing profits in the ratio of 4:3:1. Shyamlal retires from the firm. On Shyamlal’s retirement, goodwill has been valued at Rs. 52,000. There was a goodwill account already appearing in the books of the firm with a value of Rs. 60,000. By what amount will Mohanlal`s capital account be debited with?

From the following,calculate the amount of bills accepted during the year.

$\begin{array}{cc}& \text{(Rs.)}\\ \text{Bills payable as on April 1, 2005}& 1,80,000\\ \text{Bills payable as on March 31, 2006}& 2,20,000\\ \text{Bills payable dishonoured during the year}& 28,000\\ \text{Bills payable honoured during the year}& 50,000\end{array}$

Calculate Return on Investment Ratio and Investment Ratio and Inventory Turnover Ratio from the figures given below :

$\begin{array}{cc}& \text{Rs.}\\ \text{Opening Inventory}& 30,000\\ \text{Closing Inventory}& 40,000\\ \text{Carriage Inwards}& 10,000\\ \text{Purchases}& 1,00,000\\ \text{Current Assets}& 50,000\\ \text{Current Liabilities}& 20,000\\ \text{Non Current Assets}& 80,000\\ \text{Indirect Expenses}& 15,000\\ \text{Revenue from Operations}& 2,00,000\end{array}$

P. Ltd. proposed to purchase the business carried on by Mr. A. Goodwill for this purpose is agreed to be valued at three years purchase of the weighted average profits of the past four years.

The appropriate weights to be used are:

2001 - 1

2002 - 2

2003 - 3

2004 -4

The profit for the year as follows:

2001 - Rs 1,01,000

2002 - Rs 1,24,000

2003- Rs 1,00,000

2004- Rs 1,50,000

A company should at least have how much % of the value of outstanding debentures in their debenture redemption reserve before redeeming the debentures?

Is it acceptable that some of the expenses reported on the income statement be estimates?

When a fixed asset is bought as hire purchase, interest element is classified under ___.

Trade receivables for 31.3.2018 is Rs. 50,000 and for 31.3.2017 is Rs.62,000. What is the treatment in the cash flow statement for 31.3.2018 ?

Provisions due within 12 months are classified under _____

Salaries are shown under which head?

When a share is forfeited on which the amount of premium has been called but has not been received, _________ .

Ram and Mohan were partners in a firm sharing profits in the ratio of 4:1. On 1-3-2015, they admitted Sohan as a new partner for $\frac{1}{3}rd$ share in the profits of the firm. They fixed the new profit sharing ratio as 4:2:3.

The P & L A/c on the date of admission showed a Balance of Rs 32,000 (Dr.) The firm also had a reserve of Rs 1,00,000. Sohan is to bring Rs 60,000 as premium for his share of goodwill.

Showing your calculations clearly, pass necessary journal entries to record the above transactions.

A company issued debentures of the face value of Rs 10,00,000 at a discount of $6\%$ on 1st April, 2012. These debentures are redeemable by annual drawings of Rs 2,00,000 made on 31st March each year. The directors decided to write off discount based on the debentures outstanding each year. Prepare Discount on Issue of Debentures account for five years.

X Ltd. made a profit of Rs. 5,00,000 after considering the following items:
$$\begin{array}{cc}\text{I. Goodwill written off}& Rs.5,000\\ \text{II. Depreciation on Fixed Tangible assets}& Rs.50,000\\ \text{III. Loss on sale of Fixed Tangible Assets (Machinery)}& Rs.20,000\\ \text{IV. Provision for Doubtful Debts}& Rs.10,000\\ \text{V. Gain on sale of Fixed Tangible Assets (Land)}& Rs.7,500\end{array}$$

Additional Information :
$$\begin{array}{ccc}\text{Particulars}& \text{31-03-2017}& \text{31-02-2016}\\ & & \\ \text{Trade Receivables}& 78,000& 52,000\\ \text{Prepaid Expenses}& 3,000& 2,000\\ \text{Trade Payables}& 51,000& 40,000\\ \text{Expenses Payable}& 20,000& 34,000\\ & & \end{array}$$
You are required to calculcate cash flow from operating activities.

In case the revaluation account is prepared, the assets & liabilities appear in the books of the reconstituted firm at their :