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Mohan Lal and Sohan Lal were partners in a firm sharing profits and losses in 3 : 2 ratio. They admitted Ram Lal for $\frac{1}{4}$ share on 1.1.2003. It was agreed that goodwill of the firm will be valued at 3 years purchase of the average profits of the last 4 years which were Rs.50,000 for 2003, Rs. 60,000 for 2004, Rs. 90,000 for 2005 and Rs. 70,000 for 2006. Ram Lal did not bring his share of goodwill premium in cash. Record the necessary journal entries in the books of the firm on Ram Lal's admission when

(a) Goodwill already appears in the books at Rs. 2,02,500.

(b) Goodwill appears in the books at Rs.2,500.

(c) Goodwill appears in the books at Rs. 2,05,000.

Cash flow statement shows the activities:

Do we transfer Investment Fluctuation Reserve to Realisation A/c?

____________ means repayment of the amount of debentures to debentureholders.

Suresh Ltd. on 1st April 2014 acquired assets of the value of Rs 6,00,000 and liabilities worth Rs 70,000 from P & Co., at an agreed value of Rs 5,50,000. Suresh Ltd issued $12\%$ Debentures of Rs 100 each at a premium of $10\%$ in full satisfaction of purchase consideration. The debentures were redeemable on 30th November,2018 at a premium of $5\%$. Pass journal entries to record the above inclusing redemption of debentures.

A, B and C share profits in the ratio 14:5:6. The goodwill of the firm is valued at 2 years' purchase of average profits of last 3 years. The profits of last 3 years are : Rs. 50,000; Rs. 55,000; Rs. 60,000. Calculate the value of goodwill.

Goodwill already appearing in balance sheet is distributed among old partners in ______ ratio.

X,Y and Z are in partnership sharing profits and losses in the ratio 5:3:2. On 1st April, 2015 they decided to share equally in future. On that date firm showed a balance in reserve Rs. 12,000 and profit and loss Rs 15,000. On that date goodwill was valued at Rs 48,000. Partners decided not to show goodwill in the books and they decided not to distibute General Reserve and Profit and Loss. Give necessary entry.

Can securities premium be used as working capital?

Refer to the following information: Alphonso, on his deathbed, keeps half his property for his wife and divides the rest equally among his three sons Ben, Carl and Dave. Some years later Ben dies leaving half his property to his widow and half to his brothers Carl and Dave together, shared equally. When Carl makes his will he keeps half his property for his widow and the rest he bequeaths to his younger brother Dave. When Dave dies some years later, he keeps half his property for his widow and the remaining for his mother. The mother now has Rs 1,575,000

What was Carl's original share?

In case the operating cycle cannot be determined, what is the time period of the operating cycle assumed?

How much working capital will be required for manufacturing the following products?

(i) Bread

(ii) Furniture on orders

(iii) Automobiles

(iv) Sugar

B Ltd purchased assets of the book value of Rs.4,00,000 and took over the liability of Rs. 50,000 from Mohan Bros. It was agreed that the purchase consideration, settled at Rs.3,80,000, be paid by issuing debentures of Rs.100 each

What Journal entries will be made in the following three cases, if debentures are issued

(a) at par

(b) at discount

(c) at premium of 10%
It was agreed that any fraction of debentures be paid in cash

What are membership subscriptions?

Prepare a Comparative Statement of Profit & Loss from the following :

$\begin{array}{ccc}\text{Particulars}& 31-03-2014& 31-03-2013\\ & \text{(Rs.)}& \text{(Rs.)}\\ \text{Revenue from Operations}& 50,00,000& 30,00,000\\ \text{Finance Costs}& 30,00,000& 27,00,000\\ \text{Employee Benefit Expenses}& 4,00,000& 3,00,000\\ \text{Other Expenses}& 40,000& 50,000\end{array}$

Income Tax is 40% of Net Profit

_______ are categorised into long-term borrowings, short-term borrowings and current maturities to long-term debt.

Under Sinking Fund method, Sinking Fund or Debenture Redemption Fund of _______ the amount of present value of redemption amount of debentures is created out of profits every year.

A and B are partners sharing profits in the ratio of 3:2, with Capitals of Rs 5,00,000 and 3,00,000 respectively. Interest on Capital is agreed at 6% p.a. B is to be allowed an annual salary of Rs 60,000. During the year 2016-17, the profits prior to the calculation of interest on capital but after charging B's salary amounted to Rs 1,80,000. A provision of 5% of the profit is to be made in respect of commission to the Manager.

Prepare Profit and Loss Appropriation account showing the distribution of profit and the partner's capital accounts for the year ending March 31, 2017.

X & Y started business on 1st April 2017 with capitals of Rs 5,00,000 & Rs 3,00,000 resp. There is no withdrawal or addition of capital during the year.

Calculate the interest on capital 12% p.a. if the books of accounts are closed on 31st March 2018.

Rose and Lily shared profits in the ratio of 2 : 3. Their Balance sheet on March 31, 2006 was as follows
Balance Sheet of Rose and Lily
As on March 31, 2006
$$\begin{array}{ccccc}\text{Capital and Liabilities}& \text{Amt.}& \text{Assets}& & \text{Amt.}\\ \text{Creditors}& 40,000& \text{Cash}& & 16,000\\ \text{Lily's Loan}& 32,000& \text{Debtors}& 80,000& \\ \text{Profit and Loss}& 50,000& (-)\text{Provision for Doubtful Debts}& \underset{–}{(3,600)}& 76,400\\ \text{Capital:}& & \text{Inventory}& & 1,09,600\\ \text{Lily}& 1,60,000& \text{Bill Receivable}& & 40,000\\ \text{Rose}& 2,40,000& \text{Buildings}& & 2,80,000\\ & \underset{–}{}& & & \underset{–}{}\\ & 5,22,000& & & 5,22,000\\ & \underset{–}{}& & & \underset{–}{}\end{array}$$
Rose and Lily decided to dissolve the firm on the above date. Assets (except bills receivables) realised 4,84,000. Creditors agreed to take Rs. 38,000.
Cost of realisation was Rs. 2400. There was a Motor Cycle in the firm which was brought out of the firm's Money, was not shown in the Books of the firm. It was not sold for Rs. 10,000 There was a continigent liability in respect of outstanding electric bill of Rs. 5,000. Bill receivable taken over by Rose at Rs. 33,000.
Show realisation account, partners' capital account, loan account and cash account.

A Company issued 50,000 equity shares of Rs 10 each at par payable as under:

On Application Rs 2; on allotment Rs 1; on first call Rs 3 and on final call Rs 4 per share (four months after first call).

Amount due on application and allotment was duly received. One shareholder holding 1,000 shares could not pay the first call money in time. Another shareholder holding 2,000 shares paid the final call money along with the first call money.

Final call was made. All the shareholders paid in full. First call arrear on 1,000 shares were also received at the time of final call.

(a) Make entries in the Company's journal for transactions relating to first call and final call.

(b) Company also decided to provide free transportation facility to its employees. Identify the value involved in this decision.

A, B and C are partners in a firm whose books are closed on 31st March each year. B died on 30th June, 2009 and according to the agreement, the share of profit of a deceased partner up to the date of the death is to be calculated on the basis of the average profits for the last five years. The net profits for the last 5 years have been 2005 : Rs. 14,000; 2006 : Rs. 18,000; 2007 : Rs. 16,000; 2008 : Rs. 10,000 (loss) and 2009 : Rs. 16,000. Calculate B’s share of profits upto the date of death.

Equity dividend paid should be classified as ___

Find the interest on ₹800 at 10% per month for 10 months,

From the following information, calculate the amount that will be shown against Stationery Account in Income and Expenditure Account for the year ended 31st March, 2018.

$\begin{array}{ccc}\text{Particulars}& 01-04-2017& 31-03-2018\\ \text{Creditors for Stationery}& 5,000& 12,000\\ \text{Stock of Stationery}& 17,000& 32,000\end{array}$

During the year ended 31st March, 2018, payment made to creditors amounted to Rs 60,000. Stationery purchased during the year was Rs 1,00,000 (out of which 30$\%$ is cash purchases).

Which of the following can have detailed disclosure in notes to accounts?

All companies should prepare their financial statements comprising of profit or loss account and balance sheet as per _______________.

From the following information for the year ended 31st March, 2018, prepare notes to accounts to determine the amount to be shown in Statement of Profit and Loss against 'Change in Inventory':

$\begin{array}{ccc}& \text{Opening Inventory}& \text{Closing Inventory}\\ & \text{Rs}& \text{Rs}\\ \text{Finished Goods}& 10,00,000& 9,40,000\\ \text{Work-in-Progress (Semi-Finished Goods)}& 5,00,000& 6,00,000\\ \text{Stock-in Trade}& 8,00,000& 7,30,000\\ \text{Materials}& 1,00,000& 1,50,000\end{array}$

From the following extracts taken from the Balance sheets of M/s Khanduja Ltd., on 31st March as dthe additional information provided, you are required to Calculate:
(i) Cash Flows from Operting Activities.
(ii) Cash Flows from Financing Activities.
$$\begin{array}{ccc}\text{Equity and Liabilities}& 31-03-2015& 31-03-2016\\ \text{Equity Share Capital}& 20,00,000& 30,00,000\\ 10\%\text{Preference Share Capital}& 2,00,000& 1,00,000\\ \text{Securities premium Reserve A/c}& -& 95,000\\ \text{Profit and Loss Balance}& 4,00,000& 8,00,000\\ 10\%\text{Debentures}& 10,00,000& 10,00,000\end{array}$$

Additional Information:
1. Fresh equity shares were issued on 31st March 2016 at a premium of 10%
2. Interim Dividend was paid on equity shares 8%
3. Preference shares were redeemed on 31st March, 2016 at premium of 5%. Premium on redemption was charged against premium received on issue of fresh equity shares.

From the following Statement of Profit and Loss of Sun Ltd., for the years ended 31st March, 2015 and 2016, prepare a Common Size Statement :

$\begin{array}{cccc}\text{Particulars}& \text{Note}& \text{2015-16}& \text{2014-15}\\ & \text{No.}& & \\ \text{Revenue from Operations}& & 30,00,000& 20,00,000\\ \text{Expenses}& & 12,00,000& 10,00,000\\ \text{Other Income}& & 3,60,000& 4,00,000\\ \text{Income Tax}& & 50\%& 40\%\end{array}$

$$\begin{array}{cc}\text{Items}& \text{Rs.}\\ \text{Paid - up Capital}& 5,00,000\\ \text{Curret Assets}& 4,00,000\\ \text{Net Sales}& 10,00,000\\ \text{13\% Debentures}& 2,00,000\\ \text{Current Liability}& 2,80,000\\ \text{Cost of Goods Sold}& 6,00,000\end{array}$$

Average trade receivables =

What is meant by ‘Redemption out of Capital’?

Outstanding expenses are _______ while preparing receipts and payments account

All ___ are shown on the left hand side i.e. debit side of receipts & payments account.

The accumulated profits reserves are transferred to ___

Company A reported annual purchases on credit of Rs 1,23,555 and returns of Rs10,000 during the year ended December 31, 2017. Trade payables at the beginning and end of the year were Rs 12,555 and Rs 25,121, respectively. Calculate trade payables turnover ratio.

In case of default in the payment of allotment money by the shareholder, the share allotment account is credited with which amount?

Ram, Shyam and Mohan were in partnership sharing profits and losses in the proportions of 3 : 2 : 1. On 1st April, 2011, Shyam retires from the firm. On that date, their Balance Sheet was as follows :

$\begin{array}{cccccc}\text{Capital and Liabilities}& & \text{Rs}& \text{Assets}& & \text{Rs}\\ \text{Trade Creditors}& & 30,000& \text{Cash in hand}& & 90,000\\ \text{Bills Payable}& & 27,000& \text{Debtors}& 1,60,000& \\ \text{Expenses owing}& & 45,000& \text{Less : Provision}& \underset{–}{10,000}& 1,50,000\\ \text{Reserve Fund}& & 1,05,000& \text{Stock}& & 1,20,000\\ \text{Workmen's Compensation}& & & \text{Factory Premises}& & 2,25,000\\ \text{Reserve}& & 48,000& \text{Investments}& & 80,000\\ \text{Capitals :}& & & \text{Loose Tools}& & 40,000\\ \text{Ram}& 2,00,000& & & & \\ \text{Shyam}& 1,50,000& & & & \\ \text{Mohan}& \underset{–}{1,00,000}& \underset{–}{4,50,000}& & & \\ & & \underset{–}{\underset{–}{7,05,000}}& & & \overline{\underset{–}{\underset{–}{7,05,000}}}\end{array}$

The terms were:

(1) Goodwill of the firm to be valued at 2 times of Average Super Profits of last three years. Taking into consideration the risk of the business, normal profits of the firm are estimated at Rs 5,00,000 every year year. But actual profits of last three years ending 31st March were as 2009 : Rs 6,00,000, 2010 : Rs 5,50,000, 2011 : Rs 5,75,000.

(2) Expenses owing to be brought down to Rs 37,500.

(3) Investments are revalued at Rs 72,000. Ram took over investments at this value.

(4) Factory premises is to be revalued at Rs 2,43,000; and Loose tools at Rs 36,000.

(5) Provision for doubtful Debts to be increased by Rs 19,500.

(6) Claim on account of Workmen's Compensation is Rs 18,000.

(7) Shyam be paid Rs 50,000 in cash and balance due to him treated as a loan carrying interest 6% per annum.

Show Journal entry for goodwill adjustment, prepare necessary ledger accounts and opening balance sheet of the continuing partners.

X Ltd., invited applicaions for issuing 50,000 equity shares fo Rs 10 each. The amount was payable as follows : On Application : Rs 2 per share, On Allotment : Rs 3 per share, On First Call Rs 3 per share, On Second and Final Call : Balance amount. Applications for 70,000 shares were received. Applications for 10,000 shares were rejected and the application money was refunded. Shares were allotted to the remaining applicants on pro-rata basis and excess money received with applications was transferred towards sums due on allotment and calls, if any. Gopal,who applied for 600 shares, paid his entire share money with application. Ghosh, who had applied for 6,000 shares, failed to pay the allotment money and his shares were immediately forfeited. These forfeited shares were re-issued to Sultan for Rs 20,000; Rs 4 per share paid up. The first call money and the second and final call money was called and duly received. Pass necessary Journal entries for the above transactions in the books of X Ltd. Open Calls-in -Advance Account and Calls-in-Arrears Account wherever necessary.

OR

A Ltd. Invited applications for issuing 1,00,000 shares of Rs 10 each at a premium of Rs 1 per share. The amount was payable as follows : On Application : Rs 3 per share; On Allotment : Rs 3 per share (including premium); On First Call : Rs 3 per share on Second and Final Call : Balance amount.

Applications for 1,60,000 shares were received. Allotment was made on the following basis:

(i) To applicants for 90,000 shares : 40,000 shares.

(ii) To applicants for 50,000 shares : 40,000 shares.

(iii) To applicants for 20,000 shares : full shares.

Excess money paid on application is to be adjusted against the amount due on allotment and calls.

Rishabh, a shareholder, who applied for 1,500 shares and belonged to category (ii), did not pay allotment, first and second and final call money. Another shareolder, Sudha, who applied for 1,800 shares and belonged to category (i), did not pay the first and second and final call money. All the shares of Rishabh and Sudha were forfeited and were subsequently re-issued at Rs 7 per share fully paid. Pass the necessary Journal entries in the books of A Ltd. Open Call-in Arrears account and Call-in -Advance Account wherever required.

State the order of settlement of accounts on dissolution.

State any four contents of partnership deed.

All assets (except cash/bank and fictitious assets) are transferred to the ___ side of Realisation Account.

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. profits before interest on partner's capital was 12,000 and Y determined interest 24% p.a. on his loan of 1,60,000. There was no agreement on this point. Calculate the amount payable to X, Y, and Z respectively.

A, B and C are partners in a firm. You are informed that:

(i) A draws Rs 2,000 from the firm in the beginning of every month,

(ii) B draws Rs 2,000 from the firm at the end of every month, and

(iii) C draws Rs 2,000 from the firm in the middle of every month.

Interest on drawings is to be charged at 15% p.a. Calculate interest on partner's drawings.

Beeta Ltd, issued 5,000, $9\%$ debentures of Rs 500 each. Pass the necessary journal entries for the issue of Debentures in the books of the company in the following cases:

(i) When debentures are issued at $10\%$ premium and redeemable at par.

(ii) When debentures are issued at par and redeemable at $10\%$ premium.

(iii) When debentures are issued at $5\%$ premium and redeemable at $10\%$ premium.

(iv) When debentures are issued at $25\%$ to the vendors for machinery purchased for Rs 6,25,000.

On January 1,2011, the following balances appeared in the books of Z Ltd

$\begin{array}{cc}\text{Items}& \text{Rs.}\\ \text{6 \% Debentures}& 1,00,000\\ \text{Debentures Redemption Reserve Fund}& 80,000\\ \text{Debentures Redemption Reserve Fund Investments}& 80,000\end{array}$

The investments consisted of 4 % Government securities of the face value of Rs. 90,000.
The annual instalment was Rs. 16,400. On December 31, 2011, the balance at Bank was Rs. 26,000 (after receipt on interest on Debenture Redemption Reserve Fund Investment). Investments were realised at 92 % and the Debentures were redeemed. The interest for the year had already been paid.
Show the ledger accounts affecting redemption.

State the nature of Income and Expenditure Account.