Explore topic-wise InterviewSolutions in .

Leena, Madan and Naresh were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 3. On 31st March, 2015, their Balance Sheet was as follows :

$\begin{array}{cccccc}\text{Capital and Liabilities}& & \text{Rs}& \text{Assets}& & \text{Rs}\\ \text{Trade Creditors}& & 1,60,000& \text{Land and Building}& & 10,00,000\\ \text{Bank Overdraft}& & 44,000& \text{Machinery}& & 5,00,000\\ \text{Long-term Debts}& & 4,00,000& \text{Furniture}& & 7,00,000\\ \text{Employee's Provident Fund}& & 76,000& \text{Investments}& & 2,00,000\\ \text{Capitals:}& \text{Leena 12,50,000}& & \text{Closing stock}& & 8,00,000\\ & \text{Madan 8,00,000}& & \text{Sundry Debtors}& & 4,00,000\\ & \text{Naresh}\underset{–}{10,50,000}& 31,00,000& \text{Bank}& & 80,000\\ & & & \text{Deferred Advertisement}& & \\ & & & \text{Expenditure}& & 1,00,000\\ & & \overline{\underset{–}{\underset{–}{37,80,000}}}& & & \overline{\underset{–}{\underset{–}{37,80,000}}}\end{array}$

On 31st March, 2015, Madan retired from the firm and the remaining partners decided to carry on the business. It was decided to revalue assets and liabilities as under :

(i) Land and Building be appreciated by Rs 2,40,000 and Machinery be depreciated by 10%.

(ii) 50% of Investments were taken over by the retiring partner at book value.

(iii) An old customer Mohit whose account was written off as bad debt has promised to pay Rs 7,000 in settlement of his full debt of Rs 10,000.

(iv) Provision for Doubtful Debts was to be made at 5% on debtors.

(v) Closing Stock will be valued at market price which is Rs 1,00,000 less than the book value.

(vi) Goodwill of the firm be valued at Rs 5,60,000 and Madan's share of goodwill be adjusted in the accounts of Leena and Naresh. Leena and Naresh decided to share future profits and losses in the ratio of 3 : 2.

(vii) The total capital of the new firm will be Rs 32,00,000 which will be in the proportion of the profit-sharing ratio of Leena and Naresh.

(viii) Amount due to Madan was settled by accepting a Bill of Exchange in his favour payable after 4 months.

Prepare Revaluation Account, Partner's Capital Accounts and Balance Sheet of the firm after Madan's retirement.

Suresh and Ramesh were partners in a firm sharing profits in 5:3 ratio. On 1-4-2013 they admitted Deepak as a new partner for 1/4th share. On 31st July, 2013 Karan was admitted as a new partner for 1/6th share which he acquired equally from Suresh, Ramesh and Deepak. Calculate the new profit sharing ratio of Suresh, Ramesh, Deepak and Karan.

A and B are partners sharing profits in the ratio of 5:3. They admit C and the new profit sharing ratio is agreed at 4:2:1.The sacrificing ratio will be:

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

The capital accounts of Moli and Golu showed balances of Rs 40,000 and Rs 20,000 as on April 01, 2006. They shared profits in the ratio of 3:2. They allowed interest on capital 10% pa and interest on drawings, 12 pa. Golu advanced a loan of Rs 10,000 to the firm on August 1, 2006.

During the year, Moli withdrew Rs 1,000 per month at the beginning of every month whereas Golu withdrew Rs 1,000 per month at the end of every month. Profit for the year, before the above mentioned adjustments was Rs 20,950. Calculate interest on drawings show distribution of profits and prepare partner's capital accounts.

When the issue price is excess than the face value of shares, it is a case of ______

The higher value of total assets in total assets to debt ratio __________.

Reserves and surplus are shown on _____ side of balance sheet.

Debentureholders are like:

Debentures can be issued at -

On the basis of the following information, calculate the amount of consumable goods to be shown in the Income and Expenditure Account for the year ended 31st December, 2017.

Stock of goods on 1-1-2017 Rs 50,000

Stock of goods on 31-12-2017 Rs 40,000

Amount paid for goods purchased Rs 2,00,000

Creditors of goods on 1-1-2017 Rs 20,000

Creditors for the goods on 31-12-2017 Rs 10,000

Production of Company S in 1999 is what per cent of the total production of the company for all the given years? (rounded off to two digits after decimal)

A, B & C are partners in a firm sharing profits & losses in ratio of 2:3:5. Their fixed capitals were Rs. 15,00,000, Rs. 30,00,000 & Rs. 60,00,000 respectively.. For the year ended 31st March 2015, interest was credited 12% instead of 10%. Pass the necessary adjustment entry.

Refer tha data in the table below:

$\begin{array}{ccc}\text{Particulars}& 2004-05& 2005-06\\ \text{Shareholders' funds}& 10,00,000& 10,00,000\\ \text{Trade payables}& 2,40,000& 1,80,000\\ \text{Short term debt}& 8,00,000& 6,00,000\\ \text{Long term debt}& 9,02,000& 7,74,000\\ & 29,42,000& 25,54,000\\ \text{Fixed Assets}& 26,20,000& 22,50,000\\ \text{Trade Receivables}& 2,50,000& 2,75,000\\ \text{Cash}& 72,000& 29,000\\ & 29,42,000& 25,54,000\end{array}$

Calculate the % change in long term debt.

State the meaning of 'Not-for-Profit' Organisations.

___ debentures are those which are payable on the expiry of the specific period either in lump sum or in instalments.

A partnership is dissolved when there is a death of a partner. True or False

A, B and C are partners in a firm whose books are closed on 31st March each year. C died on 30th September, 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 four years. The net profits for the last 4 years have been 2006 : Rs. 16,000; 2007 : Rs. 12,000; 2008 : Rs. 1,000 (loss) and 2009 : Rs. 23,000. Calculate C’s share of profits upto the date of death.

The next step in the issue of shares after receiving share application money is ___

Current liabilities of a company are Rs. 75,000. If Current ratio is 4 : 1 and liquid ratio 1 : 1, calculate value of current assets, liquid assets and stock.

Trade payables for 31.3.2018 is Rs. 80,000 and for 31.3.2017 is Rs.30,000. What is the treatment in the cash flow statement for 31.3.2018 ?

After liquidating all the assets and paying off the liabilities, any credit balance in the realisation account would be credited to the _________________.

Which of the following statements are not true about ratio analysis?

Net operating profit ratio determines___

Current ratio is 4 and quick ratio is 2.5 and working capital is Rs 6,00,000. Find out Current Assets and Current Liabilities and Inventory and Quick Asset.

The balances in Equipment account and Accumulated depreciation account as on March 31, 2015 and 2016 are given below:
$$\begin{array}{ccc}\text{Balance as at}& \text{March 31, 2015}& \text{March 31, 2016}\\ \text{Equipment}& 65,00,000& 78,70,000\\ \text{Accumulated depreciation}& 10,80,000& 16,32,000\end{array}$$
The equipment costing Rs. 12,30,000 accumulated depreciation thereon Rs. 7,18,000 was sold for Rs. 4,68,000.
Required:
(i) Compute the amount of equipment purchased, depreciation charged for the year and loss on sale of equipment.
(ii) How each of the item related to the equipment will be reported in the statement of cash flows?

X LTd. issued 8,000 shares of Rs 100 each at a premium of Rs 40 per share. Amount was payable as follows:

$\begin{array}{cc}& \text{Rs.}\\ \text{On application}& 20\text{(including premium Rs 10 per share)}\\ \text{On allotment}& 50\text{(including premium Rs 30 per share)}\\ \text{On first call}& 30\\ \text{On second and final call}& 40\end{array}$

Applications were received for 7,500 shares and all were aceepted. All money was received except:

(i) Ashwin, holding 100 shares, failed to pay allotment money and his shares were forfeited after allotment.

(ii) Monika, holding 200 shares, failed to pay first call money and her shares were forfeited after first call.

(iii) Ruchi, holding 300 shares, failed to pay second call money and her shares were forfeited.

All the forfeited shares were reissued at a discount of 5% as fully paid-up.

Pass the necessary journal entries in the books of X Ltd.

Record necessary journal entries in the following cases

(a) Creditors worth Rs. 85,000 accepted Rs. 40,000 as cash and investment worth Rs. 43,000, in full settlement of their claim.

(b) Creditors were Rs. 16,000. They accepted Machinery valued at Rs. 18,000 in settlement of their claim.

(c) Creditors were Rs. 90,000. They accepted Buildings valued Rs. 1,20,000 and paid cash to the firm Rs. 30,000.

Average Profits =

Furniture is a/an:

If, after preparation of financial statements of a firm, it is found that some errors or omission in accounts has occurred, then such errors or omissions are rectified in the next year by passing ___

Subscriptions received in cash during the year Rs. 5,000, the amount received in advance for the next year is Rs. 300. Amount outstanding for the current year was Rs. 400. The amount to be credited to the Income and Expenditure Account is-

Entrance fees received by a club is treated as a _____

From the following receipts and payments and information given below, Prepare Income and Expenditure Account and opening Balance Sheet of Adult Literacy Organisation as on December 31, 2006.


Information:
(i) Subscription outstanding as on 31.12.2005 Rs.2,000 and on December 31, 2006 Rs 1,500.
(ii) On December 31, 2006 Salary outstanding Rs.600, and one month Rent paid in advance.
(iii) On Jan. 01, 2005 organisation owned furniture Rs.12,000, books Rs.5,000.

A Ltd company issued $9\%$ Debentures of the face value of Rs 6,00,000 at a discount of $5\%$ on 1st April, 2011. The debentures are repayable by annual drawing of Rs 2,00,000 commercing from the end of 4th year.

Show the 'Discount on Issue of Debentures A/c', in the company's ledger for the period of duration of debentures. Accounts are closed on 31st March each year.

On 1.4.2008, Ram purchased a machine for 75,000. The Machinery is to be depreciated by 10% p.a. on the Fixed Installment Method and accounting year being April-March.

On 1.10.2010,some part of the machine costing: 10,000 was sold for 7,000. On the same date, a new Machine costing 10,000 was installed. Prepare Machinery Account and Provision for depreciation Account for three years.

What is meant by 'Mortgaged Debentures'?

A, B and C are partners in a firm sharing profits and losses in the ratio of 3:2:1. Their Balance Sheet as at 31st March, 2018 is as follows:

$\begin{array}{cccc}\text{Liabilities}& \text{Amount}& \text{Assets}& \text{Amount}\\ & \text{(Rs)}& & \text{(Rs)}\\ \text{Sundry Creditors}& 36,000& \text{Cash}& 14,000\\ \text{Bank Overdraft}& 20,000& \text{Sundry Debtors}50,000& \\ \text{Reserve}& 15,000& \text{(-) Provision}\underset{–}{2,500}& 47,500\\ \text{Capital A/c}:& & \text{Stock}& 60,000\\ \text{A}& 60,000& \text{Patents}& 6,000\\ \text{B}& 60,000& \text{Fixed Assets}& 98,500\\ \text{C}& 50,000& \text{Goodwill}& 15,000\\ & \overline{2,41,000}& & \overline{2,41,000}\end{array}$

On 1st April, 2018 they admitted D into the firm with 1/4th share in profits, which he gets 1/8th from A and 1/8th from B. Other terms of agreement are as under:

(i) D will introduce Rs 60,000 as his capital and pay Rs 18,000 as his share of goodwill.

(ii) 10% of reserve is to remain as a provision against bad and doubtful debts.

(iii) A liability to the extent of Rs 1,000 be created in respect of a claim for damages against the firm.

(iv) An item of Rs 4,000 included in sundry creditors in snot likely to be claimed.

(v) Stock is to be reduced by 30% and patents to be written off in full.

After making the above adjustments the capital accounts of the old partners be adjusted on the basis of D's capital to his share in the business i.e., actual cash to be paid off or brought in by, the old partners as the case may be. Prepare Partner's Capital Accounts and the Balance Sheet of the new firm.

OR

The Balance sheet of A,B and C who were sharing profits in the ratio of 5:3:2 is given below as at March 31,2013.

BALANCE SHEET OF A,B AND C
as at March 31, 2003
$\begin{array}{cccc}\text{Liabilities}& \text{Amount}& \text{Assets}& \text{Amount}\\ & \text{(Rs)}& & \text{(Rs)}\\ \text{Capital A/c}& & \text{Plant and Machinery}& 4,65,000\\ \text{A}& 7,20,000& \text{Building}& 3,80,000\\ \text{B}& 4,15,000& \text{Stock}& 1,85,000\\ \text{C}& 3,45,000& \text{Sundry Debtors}& 1,72,000\\ \text{Outstanding Expenses}& 16,000& \text{Land}& 4,00,000\\ \text{Sundry Creditors}& 1,24,000& \text{Cash in Hand}& 1,21,000\\ \text{Reserve Fund}& 1,80,000& \text{Furniture and Fitting}& 77,000\\ & 18,00,000& & 18,00,000\end{array}$

B dies on 1st June and the following adjustments are agreed upon:

(i) Stock was valued at Rs 1,72,000.

(ii) Furniture and fitting were under valued by Rs 13,000.

(iii) An amount of Rs 10,000 is to be made as a provision for debts.

(iv) Goodwill of the firm was valued at Rs 1,80,000 but it was decided not to show goodwill in the books of accounts.

(v) His executor was paid Rs 40,000 immediately and the balance will be transferred to loan account.

(vi) His share of profit till the date of death will be calculated on the basis of profits of last 4 years which were Rs 36,000.

(vii) A and C were to share future profits in the ratio of 3:2.

Prepare Revaluation Acoount and Capital Account.

Pawan Ltd. was registered with an authorised Capital of Rs 5,00,000 divided into shares of Rs 10 each. It purchased a Building from Y for Rs 2,00,000 and issued fully paid shares to Y for purchases consideration.It invited applications for the balance 30,000 shares payable as under:---- Rs 3 per share on Application; Rs 3 per share on Allotment; Rs 2 per share First Call; and Rs 2 on Final Call.

Ashok, who had been allotted 500 shares failed to pay both the Calls. His shares were forfeited and re-issued at Rs 9 per share to Hari, as fully paid up. Make neccessary entries in the Journal of the Company.

Find the maximum profit that a company can make, if the profit function is given by P(x) = 41 + 24 x – 18x²

Walmart is the largest retailer in the world. It operates retail stores in various retailing formats in all 50 states of the United States. The company's mass merchandising operations serve its customers effectively. India is also planning to open doors for Walmart, but the decision is very crucial as they want more than 50% ownership in supermarkets.

(i) What factors should be kept in mind by Walmart before entering the Indian market?

(ii) How does Walmart create value?

Explain why it is considered better to make a partnership agreement in writing.

If any partner give notice in writing to all the other partners expressing his/her intention to dissolve the firm, it is known as _____________

In the absence of partnership deed, specify the rules relating to the following

(i) Sharing of profits and losses (ii) Interest on partner's capital

(iii) Interest on partner's drawings (iv) Interest on partner's loan

(v) Salary to a partner

Why is it being considered necessary to replace the private moneylenders by institutional sources of credit?

Why is Profit and Loss Adjustment Account prepared? Explain.

What is the primary source of income for not for profit organization?

What is meant by unlimited liability of a partner ?