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(a) The Government of India has recently announced the implication of Goods and Service Tax in India. Explain its likely impact on country's GDP.

(b) Find net value added at factor cost:

$\begin{array}{ccc}\text{Items}& \text{(Rs. in crores)}& \\ \left(i\right)& \text{Depreciation}& 700\\ \left(ii\right)& \text{Output produced (units)}& 900\\ \left(iii\right)& \text{Price per unit of output}& 40\\ \left(iv\right)& \text{Closing stock}& 1,000\\ \left(v\right)& \text{Opening stock}& 800\\ \left(vi\right)& \text{Sales tax}& 3,000\\ \left(vii\right)& \text{Intermediate consumption}& 20,000\\ \left(viii\right)& \text{Fuel and power}& 500\end{array}$

Calculate Gross National Product at Market price from the following data:

$\begin{array}{cc}& \text{(Rs. in crore)}\\ \text{(i) Compensation of employees}& 2,000\\ \text{(ii) Interest}& 500\\ \text{(iii) Rent}& 700\\ \text{(iv) Profits}& 800\\ \text{(v) Employer's contribution to}& 200\\ \text{social security schemes}& \\ \text{(vi) Dividends}& 300\\ \text{(vii) Consumption of fixed capital}& 100\\ \text{(ix) Net exports}& 70\\ \text{(ix) Mixed income of self employed}& 1,500\end{array}$

The book value of assets (other than cash and bank) transferred to realisation account is Rs. 1,00,000. 50$\%$ of the assets are taken over by a partner Atul, at a discount of 20$\%$; 40$\%$ of the remaining assets are sold at a profit of 30$\%$on cost; 5$\%$ of the balance being obsolete, realised nothing and remaining assets are handed over to a creditor, in full settlement of his claim.
You are required to record the journal entries for realisation of assets.

Bora, Singh and Ibrahim were partners in a firm sharing profits in the ratio of 5 : 3 : 1. On 2-3-2015 their firm was dissolved. The assets were realized and the liabilities were paid oft Given below are the Realisation Account, Partners' Capital Accounts and Bank Account of the firm. the accountant of the firm left a few amounts unposted in these accounts. You are required to complete these accounts by posting the correct amounts.

$\text{Dr.}\text{REALISATION ACCOUNT}\text{Cr.}$
$\begin{array}{cccc}\text{Particulars}& \text{Amount (Rs.)}& \text{Particulars}& \text{Amount (Rs.)}\\ \text{Stock}& 10,000& \text{Provision for bad debts}& 5,000\\ \text{Debtors}& 25,000& \text{Sundry Creditors}& 16,600\\ \text{Plant and Machinery}& 40,000& \text{Bills Payable}& 3,400\\ \text{Bank:}& & \text{Mortgage Loan}& 15,000\\ \text{Sundry Creditors}16,000& & \text{Bank (Assets realized)}& \\ \text{Bills Payable}3,400& & \text{Stock}6,700& \\ \text{Mortgage Loan}\underset{–}{15,000}& 34,400& \text{Debtors}12,500& \\ \text{Bank (Outstanding repairs)}& 400& \text{Plant \& Machinery}\underset{–}{36,000}& 55,200\\ \text{Bank (Expenses)}& 620& \text{Bank - unrecorded}& \\ & & \text{assets realized}& 6,220\\ & & \text{..........}& ........\\ & \underset{–}{\overline{1,10,420}}& & \underset{–}{\overline{1,10,420}}\end{array}$

$\text{Dr.}\text{CAPITAL ACCOUNTS}\text{Cr.}$
$\begin{array}{cccccccc}\text{Particulars}& \text{Bora (Rs.)}& \text{Singh (Rs.)}& \text{Ibrahim (Rs.)}& \text{Particulars}& \text{Bora (Rs.)}& \text{Singh (Rs.)}& \text{Ibrahim (Rs.)}\\ -& -& -& -& \text{Balance b/d}& 22,000& 18,000& 10,000\\ -& -& -& -& \text{General Reserve}& 2,500& 1,500& 500\\ & \underset{–}{\overline{24,500}}& \underset{–}{\overline{19,500}}& \underset{–}{\overline{10,500}}& & \underset{–}{\overline{24,500}}& \underset{–}{\overline{19,500}}& \underset{–}{\overline{10,500}}\end{array}$

$\text{Dr.}\text{BANK ACCOUNT}\text{Cr.}$
$\begin{array}{cccc}\text{Particulars}& \text{Amount (Rs.)}& \text{Particulars}& \text{Amount (Rs.)}\\ \text{Balance b/d}& 19,500& \text{Realisation (Liabilities)}& 34,400\\ \text{Realisation A/c}& & \text{Realisation A/c}& \\ \text{(Assets Realized)}& 55,200& \text{(Unrecorded Liabilities)}& 400\\ ......................& .........& \text{...........}& ............\\ & & \text{...........}& ............\\ & & \text{...........}& ............\\ & & \text{...........}& ............\\ & \underset{–}{\overline{80,920}}& & \underset{–}{\overline{80,920}}\end{array}$

If total assets are Rs. 5,00,000; total liabilities are Rs. 1,00,000; amount realised on sale of assets is Rs. 4,20,000 and realisation expenses are Rs. 5,000, what will be the profit or loss on realisation?

In the case of hidden goodwill, the new partner`s capital account is ___ with his share of goodwill.

A and B are partners in a firm sharing profits in the ratio of 7:5. On April 1, 2017 they admit C as a new partner for $\frac{1}{6}th$ share. The new ratio will be 13 : 7 : 4. C contributed the following assets towards his capital and for his share of goodwill: Stock Rs 60,000; Debtors Rs 80,000; Land Rs 2,00,000; Plant and Machinery Rs 1,20,000. On the date of admission of C, the goodwill of the firm was valued at Rs 7,50,000. Record necessary journal entries in the books of the firm on C's admission and prepare C's capital account.

A and B are two partners in a firm with capital of Rs.26,000 and Rs.22,000 respectively. They admit C in the firm for 1/4th profits in the firm. C brings Rs.26,000 as his share of capital. What is the amount of goodwill ?

Amount called up =

Quick ratio of a company is 1 : 1. State giving reasons (for any four), which of the following would improve, reduce or not change the ratio ?

(i) Purchase of machinery for cash.
(ii) Purchase of goods on credit.
(iii) Sale of furniture at cost.
(iv) Sale of goods at a profit.
(v) Redemtption of debentures at a premium.

What is the number of major heads on the Assets side of a Balance Sheet as per Schedule III?

In the absence of information, the continuing partners take the share of retiring partner in the ___

Goodwill is recorded in the books only when it is …………. and the goodwill account cannot be raised on its own.

Goodwill brought in by an incoming partner in cash for joining in a partnership firm is can be taken by old partners in their -

From the following information, calculate cash from operating activities:
$$\begin{array}{cc}& \text{Rs.}\\ \text{Proft and Loss Balance on 1st April, 2017}& 25,000\\ \text{Profit and Loss Balance on 31st March, 2018}& 80,000\\ \text{Depreciation on Fixed Assets}& 12,500\\ \text{Amortisation of Goodwill}& 8,000\\ \text{Loss on Sale of Machine}& 20,000\\ \text{Provision for Taxation}& 15,000\\ \text{Transfer to General Reserve}& 30,000\\ \text{Decrease in Trade Receivables}& 22,800\\ \text{Decrease in Trade Payables}& 4,700\\ \text{Outstanding Expenses on 1st April, 2017}& 5,000\\ \text{Outstanding Expenses on 31st March, 2018}& 6,500\\ \text{Prepaid Expenses on 1st April, 2017}& 2,000\end{array}$$

A ____________ is an arithmetical expression of a relationship between two interdependent or related quantities.

The main source of income for non-profit concern is:

As far as accountancy is concerned, goodwill means-

Suhani and Sonia who share profits in the ratio of 3:2 with capitals of Rs 30,000 & Rs 20,000 respectively. On that date, Keshav is admitted into the partnership. Keshav is to bring in Rs. 10,000 as capital and Rs. 5,000 as a premium for goodwill for 1/6 share. Furniture having book value of Rs 10,000 is revalued at Rs. 15,000 & Investment worth Rs. 5,000 (not mentioned on the balance sheet) is to be taken into account. A creditor of Rs. 2,000 is not likely to claim his money and is to be written off. What is the revaluation profit /loss?

Receipt of interest is to be _________ from net profit.

The ___________ measures the activity of a firm’s inventory.

The current ratio of a company is 2.5:1. Which of the following transactions would not change it?

Operating Cycle and the period when payment is made is given below. How will you classify the liability ?

$\begin{array}{cccccccc}\text{Particulars}& \text{(i)}& \text{(ii)}& \text{(iii)}& \text{(iv)}& \text{(v)}& \text{(vi)}& \text{(vii)}\\ \text{Operating Cycle (Months)}& 9& 10& 10& 15& 15& 15& 16\\ \text{Expected period of payment of Trade}& \text{10}& \text{12}& \text{14}& \text{12}& \text{13}& \text{18}& \text{15}\\ \text{Payables(Months)}& & & & & & & \end{array}$

What is capital budgeting decision?

Revaluation A/c is debited :

Radha and Rukmini are partners in a firm sharing profits in 3 : 2 ratio. They admitted Gopi as a new partner Radha surrendered $\frac{1}{3}$ of her share in favour of Gopi and Rukmini surrendered $\frac{1}{4}$ of her share in favour of Gopi. Calculate the new profit sharing ratio.

General Reserve is distributed among partners in the ____________ ratio.

The extra money above the face value received from shareholders is termed as _______

Disclosures regarding share capital are given in ________.

Rs. 10,000 received as the annual membership subscription. Out of this, Rs.2,000 is pertaining to the previous accounting period whereas Rs.1,000 is receivable at the end of the current accounting period. Of this 1,000, 200 is peratins to the previous accounting period. Calculate the amount of subscription that will be shown in the income and expenditure account for this accounting

Leela and Meeta were partners in a firm sharing profits and losses in the ratio of 5:3. On 1st April, 2014 they admitted Om as a new partner. On the date of Om's admission the balance sheet of Leela and Meeta showed a balance of Rs 1,60,000 in General reserve and Rs 2,40,000 (Cr) in Profit and Loss Account. Record necessary journal entries for the treatment of these items on Om's admission. The new profit sharing ratio between Leela, Meeta and Om was 5:3:2.

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

Identify operating activities from the following:

1. Cash received from sale of goods
2. Cash paid for purchase of goods
3. Payment of salaries and wages
4. Payment of interest on loan
5. Repayment of loan
6. Purchase of machinery against payment
7. Dividend paid
8. Sale of car in cash
9. Commission received
10. Cash received from trade receivables

What is meant by a 'Share'? Give any two differences between 'Preference Shares' and 'Equity Shares'.

Purchase of fixed assets is ___ while calculating cash flow from investing activities.

Receipts and Payments A/c is a summary of ___

Which account is debited at the time of redemption of debentures?

Which of the following account will be credited when the interest on drawings is charged?

Distinguish between 'Dissolution of Partnership' and 'Dissolution of Partnership Firm' on the basis of settlement of assets and liabilities.

When the court is satisfied that business of the firm cannot be carried on except at a loss, this results in ______________

A, B and C were partners sharing profits and losses in the ratio of 5 : 3 : 2. Their Balance Sheet as at 1st April, 2011 was as follows :

$\begin{array}{ccccc}\text{Capital and Liabilities}& & \text{Rs}& \text{Assets}& \text{Rs}\\ \text{Sundry Creditors}& & 10,000& \text{Cash}& 2,000\\ \text{Employee's Provident Fund}& & 5,000& \text{Sundry Debtors}& 8,000\\ \text{Reserve Fund}& & 6,000& \text{Stock}& 40,000\\ \text{Workmen's Compensation}& & & \text{Furniture}& 13,000\\ \text{Reserve}& & 2,000& \text{Patents}& 4,000\\ \text{Capitals :}& & & \text{Building}& 60,000\\ A& 50,000& & \text{Goodwill}& 6,000\\ B& 35,000& & & \\ C& \underset{–}{25,000}& \underset{–}{1,10,000}& & \\ & & \underset{–}{1,33,000}& & \overline{\underset{–}{1,33,000}}\end{array}$

C retires on above date and the partners agreed that :

(1) Goodwill is to be valued at two year's purchase of the average profits of last four years. Profits for the years ending 31st March were : 2008 : Rs 14,400, 2009 : Rs 20,000, 2010 : Rs 10,000 (Loss), 2011 : Rs 15,600.

(2) 5% provision for doubtful debts to be made on debtors.

(3) Stock be appreciated by 10%.

(4) Patents are valueless.

(5) Buildings be appreciated by 20%.

(6) Sundry Creditors to be paid Rs 2,000 more than the book value.

Pass Journal entries and prepare Revaluation Account, Capital Accounts and the Balance Sheet of the new firm.

Which of the following is credited to Partner`s capital account when capitals are fluctuating?

The ratio of Current Assets (Rs. 6,00,000) to Current Liabilities (Rs. 4,00,000) is 1.5 : 1. The accountant of the firm is interested in maintaing a current ratio of 2 : 1, by paying off a part of the Current Liabilities. Compute the amount of Current Liabilities that should be paid, so that the current ratio at the level of 2 : 1 may be maintained.

Shares issued for consideration other than cash can be issued at ___

Do we anywhere disclose the number and amount of share authorised in the financial statement?

At the time of retirement, if there are accumulated profits or losses, they should be transferred to the capital accounts of ………....

Explain briefly any four factors that affect the working capital requirements of a company.

A company issued 4,000 equity shares of Rs. 10 each at par payable as under:

On application Rs. 3; on allotment Rs. 2; On first call Rs. 4 and on final call Rs. 1 per share.

Applications were received for 10,000 shares. The allotment was made pro-rata. How much amount will be received in cash on the allotment?

ABC Ltd, is registered with an authorised capital of Rs 50,00,000 divided into shares of Rs 10 each. It offered to the public for subscription 2,50,000 shares at a premium of Rs 4 each. Public applied for the shares and the issue was oversubscribed to the extent of 2,50,000 shares. Excess application money was to be utilised towards sum dues on allotment only. Money paid on application as Rs 2, Money paid on allotment Rs 5 and balance on first and final call. Shares were subscribed as follows:

$\begin{array}{ccc}\text{Category}& \text{Shares Allottled}& \text{Basis}\\ 1.& 50,000& \text{Full}\\ 2.& 1,00,000& \text{1/2 of shares applied for}\\ 3.& 1,00,000& 250\%\text{of shares applied for}\end{array}$

Mr. Ravi who has 1,000 shares and who belonged to category 2 failed to pay call amount, his shares were immediately forfeited. Mr. Ayush who has applied for 10,000 shares and belongs to 3rd category failed to pay his arrears on call stage. Out of the forfeited shares 2,000 shares were re-issued to Ms. Pankhuri for Rs 12 each. Forfeited shares include whole of Mr. Ravi's shares. Pass necessary Journal entries.

OR

Pass the necessary Jouranl entries.

(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. Director 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 reissue 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 reissue of shares.