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A, B and C are partners, sharing profits in the ratio of 4 : 3 : 2. D is admitted for $\frac{2}{9}$ share of profits and brings Rs 3.00,000 as his capital and Rs 1,00,000 for his share of goodwill. The new profit sharing ratio will be A : B : C : D. 3 : 2 : 2 : 2.

Journalise the above arrangement in the books.

X&Y are partners sharing the profits in the ratio of 3:2. They admit Z who takes 2/7 from X and 1/7 from Y. The new profit sharing ratio will be:

Profit/loss on revaluation of assets is shared by the old partners in their :

Sohan, Amisha and Neena are partners sharing profit in the ratio of 3 : 2 : 1. When Sohan retired, their adjusted capitals were Rs.90,000, Rs.60,000 and Rs.70,000 respectively. Amisha and Neena decided to have their total capital of the firm in the ratio of 5 : 3. Find the capital of the new firm.

On 1st April, 2016, XYZ Ltd. was formed with an authorized capital of Rs. 25,00,000 divided into 2,50,000 equity shares of Rs. 10 each. Out of these, the company issued 1,00,000 equity shares of Rs. 10 each at a premium of 10%. The amount was payable as follows :

On Application Rs. 4 (including premium)

On Allotment Rs. 4

On Final Call Rs. 3

The public applied for 90,000 equity shares and all the money was duly received. How will you show the 'Shares Capital' in the Balance Sheet of the company ? Also prepare 'Notes to Accounts' for the same.

Why would an investor prefer to invest in the debentures of a company rather than in its shares?

Issue Price of shares issued at premium arrives by adding ___________ and ___________.

Punam and Puja were partners sharing profits and losses in the ratio of 3:2. Inspite of repeated losses they kept running the firm. The court ordered for the dissolution of their partnership firm on 31st March, 2015. Puja took the responsibility of realisation. She was paid Rs 1,000 as commission for this service. Their Balance Sheet as on that date stood as foollows :

$\begin{array}{cccc}\text{Liabilities}& \text{Amount}& \text{Assets}& \text{Amount}\\ & \text{(Rs)}& & \text{(Rs)}\\ \text{Outstanding Expenses}& 12,000& \text{Cash at Bank}& 29,000\\ \text{Creditors}& 34,000& \text{Debtors}& 38,000\\ \text{Emplyoyee's Provident Fund}& 12,000& \text{Stock}& 52,000\\ \text{Bank Loan}& 70,000& \text{Furniture}& 20,000\\ \text{Capital Accounts :}& & \text{Machinery}& 33,000\\ \text{Punam}& 50,000& \text{Profit and Loss A/c}& 36,000\\ \text{Puja}& 30,000& & \\ \text{Total}& 2,08,000& \text{Total}& 2,08,000\end{array}$

Following was agreed upon:

(i) Punam agreed to take over furniture at 90% of the book value.

(ii) Rs 5,000 of debtors proved bad.

(iii) Puja took over Rs 30,000 worth of the stock at Rs 22,800. The remaining stock was sold at a loss of 10%

(iv) Machinery was taken over by creditors in full settlement of their claim.

(v) The Bank Loan was paid along with interest of Rs 3,000.

(vi) Other liabilites were paid in full.

(vii) The expenses on realisation amounted to Rs 800. Prepare Realisation Account, Partner's Capital Accounts and Bank Account, to close the books of the firm.

The subscription account is classified as a/an ___________.

Shares are allotted after the receipt of ____________

Discuss the various methods of computing the share in profits in the event of death of a partner.

Ashok, Babu and Chetan are in partnership sharing profit in the proportion of 1/2, 1/3, 1/6 respectively. They dissolve teh partnership of the december 31, 2012, when the balance sheet of the firm as under
$$\begin{array}{cccccccc}& & & & \text{Balance Sheet Of Ashok, Babu and Chetan}& & & \end{array}$$
$$\begin{array}{cccccccc}& & & & \text{As on December 31, 2012}& & & \end{array}$$

$$\begin{array}{ccccc}\text{Liabilities}& & \text{Amt.}& \text{Assets}& \text{Amt.}\\ \text{Sundry Creditors}& & 20,000& \text{Bank}& 7,500\\ \text{Bills Payable}& & 25,500& \text{Sundry Debtors}& 58,000\\ \text{Babu's Loan}& & 30,000& \text{Stock}& 39,500\\ \text{Capital}& & & \text{Machinery}& 48,000\\ \text{Ashok}& 70,000& & \text{Investment}& 42,000\\ \text{Babu}& 55,000& & \text{Freehold Property}& 50,500\\ \text{Chetan}& \underset{–}{27,000}& 1,52,000& & \\ \text{Current Accounts}& & & & \\ \text{Ashok}& 10,000& & & \\ \text{Babu}& 5,000& & & \\ \text{Chetan}& \underset{–}{3,000}& 18,000& & \\ & & \underset{–}{}& & \underset{–}{}\\ & & 2,45,500& & 2,45,500\end{array}$$
The Machinery was taken over by Babu for Rs. 45,000. Ashok took over the Investment for Rs. 40,000 and freehold property took over by Chetan At Rs. 55,000 The remaining Assets realised as follows Sundry Debtors Rs. 56,500 and Stock Rs. 36,500. Sundry creditors were settled at discount of 7%. A office computer, Not shown in the bookis of accounts realised Rs. 9,000. realisation expenses amounted to Rs. 3,000. Prepare realisation account, partners capital account, bank account.

What are the methods that are followed while redeeming a debenture?

From the following, calculate the Gross Profit ratio and Working Capital Turnover Ratio.

Revenue from operations Rs 30,00,000

Cost of Revenue from operation Rs 20,00,000

Current Assets Rs 6,00,000

Current Liabilities Rs 2,00,000

Paid up share capital Rs 5,00,000

Use the following information to calculate net cash flow from operating activities using indirect method:

$\begin{array}{cc}\text{Net Income}& 7,000\\ \text{Depreciation Expense}& 1,000\\ \text{Increase in Accounts Receivable}& 4,400\\ \text{Increase in Prepaid Rent}& 7,000\\ \text{Decrease in Prepaid Insurance}& 1,300\\ \text{Increase in Accounts Payable}& 14,000\\ \text{Increase in Wages Payable}& 1,000\\ \text{Decrease in Income Tax Payable}& 700\\ \text{Gain on Sale of Equipment}& 1,800\end{array}$

How debentures are different from shares? Give two points.

There are _________ number of methods for valuation of Goodwill?

A company issue 5,000 12% debentures of Rs. 100 each at par, payabale as follows:
On Application : 20
On Allotment : 80
How much money is received in allotment stage if all the moneys are duly received?

__________ is an example of non-profit concern.

Following are the Balance Sheets of X Ltd. for two years. Prepare a Cash Flow statement:
$$\begin{array}{ccccc}\text{Particulars}& \text{Note}& 31-03-2018& 31-03-2017& \\ & \text{No.}& & & \\ \text{(I) Equity and Liabilities:}& & & & \\ \left(1\right)\text{Shareholder's Fund:}& & & & \\ \text{(a) Share Capital}& & 3,00,000& 2,00,000& \\ \text{(b) Reserve and surplus}& & 80,000& 30,000& \\ \left(2\right)\text{Non- Current Liabilities:}& & & & \\ \text{Long term Borrowings}& 1& -& 75,000& \\ \left(3\right)\text{Current Liabilities:}& & & & \\ \left(a\right)\text{Short term Borrowings}& 2& 25,000& 37,000& \\ \left(b\right)\text{Trade Payables}& & 1,50,000& 96,000& \\ \left(c\right)\text{Short term (Provision for Tax)}& & \underset{–}{15,000}& \underset{–}{12,000}& \\ \text{Total}& & \underset{–}{5,70,000}& \underset{–}{4,50,000}& \\ \text{II. Assets:}& & & & \\ \text{(1) Non - Current Assets:}& & & & \\ \text{Fixed Assets}& 3& 3,40,000& 3,00,000& \\ \text{(2) Current Assets}& & & & \\ \left(a\right)\text{Current Investments (Short-term Investments)}& & 30,000& 20,000& \\ \left(b\right)\text{Inventory}& & 90,000& 60,000& \\ \left(c\right)\text{Trade Receivables}& & 97,000& 65,000& \\ \left(d\right)\text{Cash and Cash Equivalents}& & \underset{–}{13,000}& \underset{–}{5,000}& \\ \text{Total}& & \underset{–}{5,70,000}& \underset{–}{4,50,000}& \end{array}$$
Notes:
(1) $$\begin{array}{cccc}\text{Long - term Borrowings:}& 31-03-2018& 31-03-2017& \\ 15\%\text{Loan}& \text{-}& 75,000& \\ & & & \\ \left(2\right)\text{Short-term Borrowings:}& & & \\ \text{Bank Overdraft}& \underset{–}{25,000}& \underset{–}{37,000}& \\ & & & \\ \left(3\right)\text{Fixed Assets:}& & & \\ \text{Plant and Machinery}& 4,00,000& 3,50,000& \\ (-)\text{Accumulated Depreciation}& \underset{–}{60,000}& \underset{–}{50,000}& \\ & \underset{–}{3,40,000}& \underset{–}{3,00,000}& \end{array}$$
Additional Information:

(1) $$\begin{array}{ccc}& 31-03-2018& 31-03-2017\\ & \text{Rs.}& \text{Rs.}\\ \text{Contingent Liability:}& & \\ \text{Proposed Dividend}& 30,000& 20,000\end{array}$$
(2) Loan was repaid on 1st April, 2017

State the accounting treatment for:

i. Unrecorded assets

ii. Unrecorded liabilities

Goodwill brought in by incoming partner in cash is distributed by the old partners in their ___________.

Is it a good idea to keep idle cash in the company?

The main difference between the direct method and the indirect method involves the cash flows from ________.

Which of the following account will be debited when the interest on drawings is charged and partner's follow fixed capital method?

_________ is the amount paid by the members to keep their mem­bership alive.

Do we separately disclose equity and preference shares issued?

XYZ limited has issued 20,000 debentures of Rs.100 each redeemable after 4 years of which Rs 40 needs to be paid at application stage and Rs 60 needs to be paid at allotment stage. Let’s say the public has subscribed for 30,000 debentures. How much money did the company received at the time of application?

The statement which show the cash situation is called:

Write up the Journal entry for the treatment of goodwill when there is a change in profit sharing ratio.

A debentureholder is entitled to :

A and B were partners in a business sharing profits and losses in the ratio of 3 : 1, They decided to dissolve the partnership on March 31, 2015. On that date, their Capitals stood at Rs 1,00,000 and Rs 50,000 respectively. Amount owing by A to the firm was Rs 42,000 and the amount owed by the firm to B was Rs 15,000; Creditors were Rs 25,000 and Cash Rs 5,000. The assets other than the amount owing by A to the firm realised Rs 64,000. The expenses of realisation amounted to Rs 1,000.

Prepare the Memorandum Balance Sheet of the firm immediately prior to dissolution and necessary ledger accounts to close the books of the firm.

Name the Sub-headings under which Non-Current Assets shall be classified in a Company's Balance Sheet.

From the following trial balance of Monika Textiles as at 31st March, 2016, pass the necessary adjustment entries.

$\begin{array}{ccc}\text{Name of Accounts}& \text{Debit (Rs.)}& \text{Credit (Rs.)}\\ \text{Stock at Commencement}& 15,00,000& \\ \text{Purchases and Sales}& 1,09,00,000& 1,80,00,000\\ \text{Manufacturing Wages}& 8,00,000& \\ \text{Fuel,Power and Lighting}& 12,00,000& \\ \text{Salaries}& 11,00,000& \\ \text{Income Tax}& 5,50,000& \\ \text{Loan to X}(10\%\text{per annum)}& 5,00,000& \\ \text{Interest on X's Loan}& & 30,000\\ \text{Apprentice Premium}& & 4,50,000\\ \text{Rent}& 4,00,000& \\ \text{Rent Owing}& & 60,000\\ \text{Furniture (Includes furniture of 1,00,000 purchased on 1st October, 2015)}& 5,00,000& \\ \text{Bills Receivable and Bills Payable}& 6,00,000& 1,60,000\\ \text{Plant}& 72,00,000& \\ \text{Debtors and Creditors}& 28,00,000& 13,00,000\\ \text{Capital}& & 1,00,00,000\\ \text{Cash}& 19,50,000& \\ & \overline{\underset{–}{\underset{–}{3,00,00,000}}}& \overline{\underset{–}{\underset{–}{3,00,00,000}}}\\ & & \end{array}$

Additional Information:

(i) Closing stock was valued at Rs. 30,00,000.

(ii) Goods worth Rs. 5,00,000 were sold and dispatched on 28th March, 2016 but no entry was passed to this effect.

(iii) Goods costing Rs. 7,00,000 were purchased and included into stock but no entry was passed to record the purchases.

(iv) Create a provision of 2% for discount on debtors.

(v) Apprentice premium received on 1st April, 2015 was for 3 years.

(vi) Depreciate furniture by 10% per annum.

(vii) Salaries for the month of March, 2016 are still outstanding.

The older amounts appear further from the account titles or descriptions as the older amounts are less important.

In case debentures are issued at discount but redeemable at par. If the face value of debenture is Rs. 100 and the discount is 10%. It means company will get Rs. 90 and it will pay back ________ at the time of redemption

If the face value of debenture is Rs. 100 and the discount is 10%. It means company will get ___

Profit & loss appropriation account is ___ for transfer of profit to general reserve.

Bhagwati Ltd. invited applications for issuing 2,00,000 equity shares of Rs 10 each. The amount were payable as follows :

On Application --Rs 3 per share.

On allotment --Rs 5 per share.

On first and final call -- Rs 2 per share.

Application were received for 3,00,000 shares and pro-rata allotment was made to all the applicants. Money overpaid on application was adjusted towards allotment money. B, who was allotted 3,000 shares, 2,500 shares were reissued as fully paid up Rs 8 per share.

Pass necessary journal entries to record the above transactions in the books of Bhagwati Ltd.

OR

(a) A company forfeited 200, shares of Rs 20 each, Rs 15 per share called up on which Rs 10 per share had been paid Directors reissued all the forfeited shares to B as Rs 15 per share paid up, for a payment of Rs 10 each . Give journal entries in the books of the company for forfeiture and re-issue of shares.

(b) A Ltd. forfeited 100 equity shares of the face value of Rs 10 each, for the non-payment of first call of Rs 2 per share. Rs 6 per share had already been called and paid. These shares were subsequently re-issued as fully paid at the rate of Rs 7 per share. Give journal entries in the books of the company for forfeiture and re-issue of shares.

Using a numerical example, elaborate the credit creation process as handled by the commercial banks.

A, B and C are partners in a firm with the PSR of 6:2:1. B retires on 30/9/2010. Calculate the share of B's profits up to the date of his retirement if the sales of the firm up to 30/9/2010 were Rs.18,00,000. The net profit ratio of the business is 30% based on last year's profits of Rs.9,00,000 on sales of Rs.30,00,000. The financial year of the firm is from April to March. Calculate B`s share in profits.

Liquidity ratios are computed as the ratio of ____________ to the current liabilities.

Explain the significance of the 'Standard of Deferred Payment' function of money.

The receipts and payments account is the summary of cash and bank transactions which helps in the preparation of _____________.

Operating profit ratio is calculated by___

No entry is required when a ___ accepts a fixed asset in payment of his dues.

The denominator while calculating Interest coverage ratio is __________.

It establishes a relationship between total assets and total long-term debts. This ratio is ____________.

Equity Shares cannot be issued for the purpose of?