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Ram, Shyam and Mohan shared profits in the ratio of 2 : 2 : 1. Following is their Balance Sheet on the date of dissolution :

$\begin{array}{cccc}\text{Capital and Liabilities}& \text{Amount (Rs.)}& \text{Assets}& \text{Amount (Rs.)}\\ \text{Creditors}& 40,000& \text{Cash at Bank}& 44,000\\ \text{Bills Payable}& 2,600& \text{Debtors}& 15,000\\ \text{Provision for Depreciation}& 15,000& \text{Stock}& 50,000\\ \text{Ram's Loan}& 40,000& \text{Plant}& 75,000\\ \text{Capital Accounts :}& & \text{Patents}& 20,000\\ \text{Ram}& 1,35,000& \text{100 Shares in X Co.}& 5,000\\ \text{Shyam}& 30,000& \text{300 Shares in Y Co.}& 18,000\\ \text{Mohan}& 10,000& \text{Goodwill}& 15,600\\ & & \text{Advertisement Suspense A/c}& 30,000\\ & \overline{\underset{–}{\underset{–}{2,72,600}}}& & \overline{\underset{–}{\underset{–}{2,72,600}}}\end{array}$

1. Ram takes over Debtors at Rs 10,000; Stock at a 20% less value; and Plant at Rs 30,000.

2. One of the Creditors took some of the patents whose book value was Rs 8,000, at a valuation of Rs 4,800. Balance of the creditors were paid at a discount of Rs 1,200.

3. Ram's has made full payment of his loan

4. Shares in X Co. were agreed to be taken over by Shyam at Rs 30 per share.

5. Shares in Y Co. were valued at Rs 12,000. All partners divided these shares in their profit sharing ratio.

6. Balance of the Patents realised 70% of their book value.

Prepare realisation account.

Rohit, Kunal and Sarthak are partners in a firm. They decided to dissolve their firm. Pass necessary journal entries for the following after various assets (other than Cash and Bank) and the third party liability have been transferred to Realisation Account :

(a) Kunal agreed to pay off his wife's loan of Rs. 6,000.

(b) Total Creditors of the firm were Rs 40,000. Creditors worth Rs 10,000 were given a piece of furniture costing Rs 8,000 in full and final settlement. Remaining Creditors allowed a discount of 10%.

(c) Rohit had given a loan of Rs 70,000 to the firm which was duly paid.

(d) A machine which was not recorded in the books was taken over by Kunal at Rs 3,000, whereas its expected value was Rs 5,000.

(e) The firm had a debit balance of Rs 15,000 in the Profit and Loss Account on the date of dissolution.

(f) Sarthak paid the realisation expenses of Rs 16,000 out of his private funds, who was to get a remuneration of Rs 15,000 for completing dissolution process and was responsible to bear all the realisation expenses.

Revaluation Account is debited :

The common size income statement defines all items as a percentage of ___

Redemption of preference shares can be classified as ___________.

The total amount for the share application is ___

Total Purchases - Cash Purchases - Purchase Returns =

A financial statement that summarizes company revenue and expenses is _________.

The mortgage is a _________ which entitles the bank to your house or property.

What is meant by conversion of debentures? Describe the method of such a conversion.

The cost price of a pen is Rs. 12. However, the shopkeeper sold it for Rs. 18. What is the percentage of profit obtained by the shopkeeper?

Realisation A/c is ____________ account prepared at the time of dissolution.

All items of revenue in nature are shown in -

Debentures can be issued at ___

Akash, Amber and Gagan were partners in a firm sharing profits and losses in the ratio of 14 : 5 : 6 respectively. Amber retires from the firm and surrenders $\frac{1}{3}$rd of his share in favour of Akash and balance to Gagan. The goodwill of the firm is valued at Rs 60,000. Goodwill already appears in the books at Rs 75,000. The profit for the first year after Amber's retirement was Rs 90,000. Pass necessary Journal entries.

When the shares offered for public subscription are subscribed fully by the public, then ___

Working capital = ___

'Ploughing back of profits' holds the key to success of business enterprises. Do you agree? Give three reasons.

On the death of partner, the deceased partner's executor is paid his share of profit for the relevant period. This repayment is recorded in Profit and Loss __________ Account.

Following is the Balance Sheet of Oswal Publications as at 31-03-2018.

$\begin{array}{cccc}\text{Particulrs}& \text{Note}& \text{31-03-2017}& \text{31-03-2016}\\ & \text{No.}& \text{Rs}& \text{Rs}\\ \text{I. EQUITY AND LIABILITIES}& & & \\ \text{(1) Shareholders' Funds:}& & & \\ \text{(a) Share Capital}& & 7,00,000& 6,00,000\\ \text{(b) Reserve and Surplus}& & 2,00,000& 1,10,000\\ \text{(2) Non-current Liabilities:}& & & \\ \text{(a) Long-term Borrowings}& & 3,00,000& 2,00,000\\ \text{(3) Current Liabilities:}& & & \\ \text{(a) Trade Payables}& & 30,000& 25,000\\ \text{Total}& & 12,30,000& 9,35,000\\ \text{II. ASSETS}& & & \\ \text{(1) Non-current Assets:}& & & \\ \text{(a) Fixed Assets}& & 11,00,000& 8,00,000\\ \text{(2) Current Assets:}& & & \\ \text{(a) Inventories}& & 70,000& 60,000\\ \text{(b) Trade receivables}& & 32,000& 40,000\\ \text{(c) Cash and Cash Equivalents}& & 28,000& 35,000\\ \text{Total}& & 12,30,000& 9,35,000\end{array}$

Additional Information :

During the year, a piece of machinery of the book value of Rs. 80,000 was sold for Rs. 65,000. Depreciation provided on machinery during the year amounted to Rs. 2,00,000.

Ram, Rahim and Robert were partners sharing profits in 2 : 3 : 1 ratio respectively. The partnership deed provided that in case of death of a partner the deceased partner's share of capital will be donated for the construction of a hospital in the tribal area.

Due to ill health Robert died on 30th September, 2013 the Balance Sheet of Ram, Rahim and Robert on 31st March, 2013 was as follows :

BALANCE SHEET

as at 31.03.2013

$\begin{array}{cccc}\text{Capital and Liabilities}& \text{Rs}& \text{Assets}& \text{Rs}\\ \text{Capital : Ram}& 1,00,000& \text{Cash}& 14,000\\ \text{Rahim}& 2,00,000& \text{Bank}& 2,96,000\\ \text{Robert}& 3,00,000& \text{Stock}& 80,000\\ \text{Creditors}& 3,60,000& \text{Debtors}& 3,00,000\\ \text{Workmen's Compensation}& & \text{Investments}& 50,000\\ \text{Reserve}& 20,000& \text{Land}& 2,50,000\\ \text{Provision for doubtful debts}& 10,000& & \\ & \overline{\underset{–}{\underset{–}{9,90,000}}}& & \overline{\underset{–}{\underset{–}{9,90,000}}}\end{array}$

On the date of Robert's death i.e., 30th September, 2013, the following was agreed upon :

(i) Goodwill is to be valued at two years' purchase of average profits of last three completed years i.e., 2010 - 11 - Rs 45,000; 2011-12 - Rs 90,000 and 2012-13 - Rs 1,35,000.

(ii) Robert's share of profit till the date of his death will be calculated on the basis of average profits of last three years.

(iii) Land was undervalued by Rs 25,000 and stock overvalued by Rs 8,000.

(iv) Provision for doubtful debts is to be made at 5% of Debtors.

(v) Claim of workmen compensation was estimated at Rs 5,000.

Prepare Robert's capital account to be presented to his executors. Also identify a value that Ram, Rahim and Robert wanted to communicate to the society.

The firm of Harry, Porter and Ali, who have been sharing profits in the ratio of 2:2:1, as they are partners from the beginning now Ali wants that he should get equal share in the profits with Harry and Porter and he further wishes that the change in the profit sharing ratio should come into effect retrospectively were for the last three year. Harry and Porter have agreement on this acount.

The profits for the last three years were

(Rs)

2003-04 22,000

2004-05 24,000

2005-06 29,000

Show adjustment of profits by means of a single adjustment journal entry.

State which fo the following would result in inflow/outflow of Cash or Cash Equivalents:
(i) Purchase of Inventory for cash.
(ii) Purchase of goods on credit.
(iii) Sale of Goods costing Rs. 10,000 for Rs. 12,000 for cash.
(iv) Sale fo Goods on Credit.
(v) Purchase of a fixed asset by issue of shares.

How are low long-term rates beneficial to enterprises?

With the help of the following information obtained from the books of Raj Silk Mills, prepare Comparative Statement of Profit and Loss for the year ended 31st March, 2016 :

$\begin{array}{ccc}\text{Particulars}& 31\text{st March},2016& 31\text{st March},2015\\ \text{Revenue from Operations}& 300\%\text{of Cost of}& 200\%\text{of Cost of}\\ & \text{Materials Consumed}& \text{Materials Consumed}\\ & & \\ \text{Expenses :}& & \\ \text{Cost of Materials Consumed}& \text{Rs.}12,00,000& \text{Rs.}10,00,000\\ \text{Other Expenses}& 20\%\text{of Cost of}& 10\%\text{of Cost of}\\ & \text{Materials Consumed}& \text{Materials Consumed}\\ \text{Tax}& 50\%& 50\%\end{array}$

Puneet, Pankaj and Pammy are partners in a business sharing profits and losses in the ratio of 2 : 2 :1 respectively. Their balance sheet as on March 31, 2007 was as follow

$\begin{array}{ccccccc}& & & & & & \\ & & & & \text{Balance Sheet}& & \\ \text{Dr}& & & & \text{as on March 31, 2007}& & \text{Cr}\end{array}\begin{array}{cccccc}\text{Capital and Liabilities}& & \text{Amt.(Rs)}& \text{Assets}& & \text{Amt.(Rs)}\\ \text{Sundry Creditors}& & \text{1,00,000}& \text{Cash at Bank}& & \text{20,000}\\ \text{Capital Accounts}& & & \text{Stock}& & \text{30,000}\\ \text{Puneet}& \text{60,000}& & \text{Sundry Debtors}& & \text{80,000}\\ \text{Pankaj}& \text{1,00,000}& & \text{Investments}& & \text{70,000}\\ \text{Pammy}& \underset{–}{40,000}& \text{2,00,000}& \text{Furniture}& & \text{35,000}\\ \text{Reserve}& & \text{50,000}& \text{Buildings}& & \text{1,15,000}\\ & & \overline{\underset{–}{\underset{–}{3,50,000}}}& & & \overline{\underset{–}{\underset{–}{3,50,000}}}\end{array}$

Mr Pammy died on September 30, 2007. The partnership deed piovided the following

(i) The deceased partner will be entitled to his share of profit up to the date of death calculated on the basis of previous year's profit.

(ii) He will be entitled to his share of goodwill of the firm calculated on the basis of 3 years' purchase of average of last 4 years profit. The profits for the last four financial years are given below for 2003-04; Rs. 80,000; for 2004-05, Rs. 50,000; for 2005-06, Rs. 40,000; for 2006-07, Rs. 30,000. The drawings of the deceased partner up to the date of death amounted to Rs. 10,000. Interest on capital is to be allowed at 12% per annum.

Surviving partners agreed that Rs. 15,400 should be paid to the executors immediately and the balance in four equal yearly instalments with interest at 12% pa on outstanding balance. Show Mr Pammy's capital account, his executor's account till the settlement of the amount due.

A, B. and C are partners in a firm sharing profits in the ratio of 3:2:1 B retires. The goodwill of the firm is valued at Rs. 60,000 and the remaining partners A and C continue to share profits in the ratio of 3:1. By what amount will the capital account of B will be credited =

Companies have legal status under law. True or False

Sakshi Ltd. is a company manufacturing electronic goods. It has a share capital of Rs. 120 lakhs. The earning per share in the previous years was Rs 0.5. For diversification, the company requires additional capital of Rs 80 lakhs. The company raised funds by issuing 10% debentures for the same. During the current year, the company earned a profit of Rs. 16 lakhs on capital employed. It paid a tax of 40 $\%$.

(a) State whether the shareholders gained or lost in respect of earning per share on diversification. Show your calculations clearly.

(b) Also, state any three factors that favour the issue of debentures by the company as part of its capital structure.

When debentures are issued at premium & redeemed at premium, the premium on redemption of debentures account is credited with ___

Loans which are repayable in more than twelve months/operating cycle are classified as ______ on the face of balance sheet.

If a partner died in the middle of the financial year, it means that the profits they earn till that period belongs _______

Following is the Balance Sheet of Title Machine Limited as on March 31, 2006.
$$\begin{array}{cccc}\text{Capital and Liabilities}& \text{Amt. (Rs.)}& \text{Assets}& \text{Amt. (Rs.)}\\ \text{Equity Share Capital}& \text{24,000}& \text{Buildings}& \text{45,000}\\ \text{8\% Debentures}& \text{9,000}& \text{Stock}& \text{12,000}\\ \text{Profit and Loss}& \text{6,000}& \text{Debtors}& \text{9,000}\\ \text{Bank Overdraft}& \text{6,000}& \text{Cash in Hand}& \text{2,280}\\ \text{Creditors}& \text{23,400}& \text{Prepaid Expenses}& \text{720}\\ \text{Provision for Taxation}& 600& & \\ & \overline{\underset{–}{69,000}}& & \overline{\underset{–}{69,000}}\end{array}$$

Calculate Current Ratio and Liquid Ratio.

Company bought a Plant for Rs. 2,10,000 & issued Debentures of Rs. 100 each at 5% premium. How many debentures were issued?

___________ is the ratio in which the old or existing partners forego their share of profit in favour of the new or incoming partner.

Companies Act requires the names of Private Limited Companies to be followed by the words ____________

Jairam purchased a house in Rs. 15000 and paid Rs. 5000 at once. Rest money he promised to pay in annual installment of Rs. 1000 with 10% per annum interest. How much money is to be paid by Jairam

What is the rate of interest at which the Reserve Bank of India lends money to commercial banks for long period?

How do you think the currency deposit ratio affects money supply?

While distributing accumulated surplus and reserves-

Calculate Inventory Turnover Ratio from the following particulars :

Cost of Revenue from Operations (Cost of Goods Sold) Rs. 6,40,000

Gross Profit 20% on Sales

Closing Inventory : 4 times of Opening Inventory

Opening Inventory : 10% of Cost of Revenue from Operations.

Trade payables turnover ratio = ___

If the partners mutually agree with the profit sharing ratio, then they share profits ___________.

Surinder, Mahinder and Tarun are partners in a firm. After Surinder’s retirernent, the profit sharing ratio between Mahinder and Tarun is 5 : 3. They also decide to fix the firm’s capital at Rs. 80,000. Find the individual capitals of Mahinder and Tarun.

What is the journal entry for transfer of amount to sinking fund?

Premium on redemption of debentures account is a/an ___

Super Profit =

Donation to promote general objectives of the organisation is called _____________