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Verma and Sharma are partners in a firm sharing, profits and losses in the ratio of 5 : 3. They admitted Ghosh as a new partner for $\frac{1}{5}$ share of profits. Ghosh is to bring in Rs. 20,000 as captial and Rs. 4,000 as his share of goodwill premium. Give the necessary journal entries

(a) When the amount of goodwill is retained in the new business.

(b) When the amount of goodwill is fully withdrawn.

(c) When 50% of the amount of goodwill is withdrawn.

(d) When goodwill is paid privately.

A___ presents side-by-side information about an entity's assets, liabilities, and shareholders' equity as of multiple points in time

On March 31, 2006 the balance in the capital accounts of Eluin, Monu and Ahmed, after making adjustments for profits, drawing, etc were Rs 80,000, Rs 60,000 and Rs 40,000 respectively. Subsequently, it was discovered that interest on capital and interest on drawings has been omitted.

The partners were entitled to interest on capital 5% pa. The drawings during the year Eluin Rs 20,000; Monu, Rs 15000 and Ahmed, Rs 9,000. Interest on drawings chargeable to partners were Eluin Rs 500, Monu Rs 360 and Ahmed Rs 200. The net profit during the year amounted to Rs 1,20,000. The profit sharing ratio was 3:2:1. Pass necessary adjustment entries.

Under which method, goodwill is calculated by dividing super profits with normal rate of return

Pass journal entries for the following transactions :

(i) Dissolution expenses amounted to Rs. 20,000. Rs. 8,000 were to be borne by the firm and the balance by Maruti, a partner. The expenses were paid by Maruti.

(ii) Sudhir, a partner, was allowed a remuneration of Rs. 10,000 to carry out dissolution of the firm. He was to bear all expenses of realisation which amounted to Rs. 16,000 were paid by the firm.

(iii) Ravi, a partner, is allowed a remuneration of Rs. 15,000 for dissolution work and is to bear all expenses of realisation which amounted to Rs 5,000 were paid by the firm.

(iv) Anil, a partner, is paid remuneration of Rs. 20,000 for dissolution work. Realisation expenses amounted to Rs. 7,500 were paid by the firm.

(v) Vijay, a partner, paid realisation expenses of Rs 10,000 and these were to be borne by him.

Welprint Ltd. has given you the following information:

Machinery as on April 01, 2012 : Rs.50,000

Machinery as on March 31, 2013 : Rs.60,000

Accumulated Depreciation on April 01, 2012 : Rs.25,000

Accumulated Depreciation on March 31, 2013 : Rs.15,000

During the year, a Machine costing Rs 25,000 with Accumulated Depreciation of Rs. 15,000 was sold for Rs. 13,000.

Calculate cash flow from Investing Activities on the basis of the above information.

A firm earns Rs. 40,000 as its average profits. The normal rate of return is 10%. Total assets of the firm are Rs. 10,00,000 and its total external liabilities are Rs. 5,00,000. Calculate the amount of goodwill:

If the expense side exceeds the income side in the income and expenditure account, there will be ___

Meghnath Limited took a loan of Rs 1,20,000 from a bank and deposited 1,400, $8\%$ debentures of Rs 100 each as collateral security along with primary security worth Rs 2 lakhs. Company again took a loan of Rs 80,000 after two months from a bank and deposited 1,000 , $8\%$ debentures of Rs 100 each as collateral security. Record necessary journal entries. How will you show the issue of Debentures and Bank Loan in the balance sheet of the company?

Define Section 53.

If all or all but one of the partners of the firm becomes insolvent then the company is a case of ___________

'S' Ltd. is manufacturing steel at its plant in India. It is enjoying a buoyant demand for its products as economic growth is at about 7-8% and the demand for steel is growing. It is planning to set-up a new steel plant to capitalise on the increased demand. It is estimated that it will require about Rs 5000 crores to set-up and about Rs 500 crores of working capital to start the new plant.

What are the factors that will affect the capital structure of this company?

In case of collateral security, the lender has the ___right over the debentures until and unless the loan is repaid.

Fluctuating capital account is credited with:

Define non-debt creating capital receipts.

Expenditures greater than incomes of a non-profit organization give rise to a ___

When the realisation expenses are to be borne by a partner, it is credited to ___________

Hero Honda Limited made an issue of 1,00,000 Equity Shares of Rs 10 each, payable as follows:

On Application Rs 2.50 per share

On Allotment Rs 2.50 per share

On Call Balance Amount

Members holding 400 shares did not pay the call money and the shares were duly forfeited. 200 of the forfeited shares were reissued as fully paid at Rs 5 per share.

Draft necessary journal entries and prepare share capital and forfeited shares accounts in the books.

If a fixed amount is withdrawn on the last day of every quarter, the interest on the total amount of drawings shall be calculated for:

Classify the following into (i) Operating Acivities, (ii) Investing Activities, (iii) Financing Activities and (iv) Cash Equivalents while preparing a Cash Flow Statement:
1. Cash Sales
2. Cash Received from Trade Receivables
3. Purchase of Building
4. Sale of Building
5. Issue of Share Capital or Debentures
6. Buy- back of Equity Shares
7. Dividend Paid
8. Interest paid on Debentures or Long - term Loans by (a) Finance Company (b) Non- Finance Company
9. Cash Purchases
10. Cash paid to trade payables
11. Redemption of Debentures and Preference Shares
12. Repayment of Long - term Loan
13. Office Expenses
14. Selling and Distribution Expenses
15. Manufacturing Expenses
16. Purchase of Goodwill
17. Sale of Patent
18. Purchase of Investments
19. Sale of Investments by (a) Finance Company (b) Non- Finance Company
20. Commission and Royalty received
21. Interest received on Investments by (a) Finance company (b) Non Finance company
22. Dividend received on Shares by (a) Finance Company (b) Non - Finance company
23. Rent Paid
24. Rent received if (a) Company's main business is property business (b) Other business
25. Income Tax Paid
26. Income Tax Refund received
27. Bank Balance
28. Short- term Deposits in Bank
29. Investment in Short - term or Marketable Securities

Trade Deposits which are not in the nature of borrowings should be classified separately under ____

Q15) EPFO made UAN mandatory for all employers under Employee Provident Fund Act, 1952. Presently, which of the following schemes are in operation under the Act?

1) Employees' Provident Fund Scheme, 1952

2) Employees' Deposit Linked Insurance Scheme, 1976

3) Employees' Pension Scheme, 1995

Code:

At the time of issue, which account is debited at the time of application money being transferred to Debentures Account?

________________ are repayable only at the time of closing down a company.

Can debentures be issued as a collateral security?

The result of forfeiture of shares is :

What are the different ways in which a partner can retire from the firm ?

The following balances were extracted from the books of M/s Panchsheel Garments on December 31, 2010.

$\begin{array}{cccc}\text{Account Title}& \text{Amt. (Rs.)}& \text{Account Title}& \text{Amt. (Rs.)}\\ \text{Opening Stock}& 16,000& \text{Sales}& 1,12,000\\ \text{Purchase}& 67,600& \text{Return Outwards}& 3,200\\ \text{Return Inwards}& 4,600& \text{Discount}& 1,400\\ \text{Carriage Inwards}& 1,400& \text{Bank Overdraft}& 10,000\\ \text{General Expenses}& 2,400& \text{Commission}& 1,800\\ \text{Insurance}& 4,000& \text{Creditors}& 16,000\\ \text{Scooter Expenses}& 200& \text{Capital}& 50,000\\ \text{Salary}& 8,800& & \\ \text{Cash in Hand}& 4,000& & \\ \text{Scooter}& 8,000& & \\ \text{Furniture}& 5,200& & \\ \text{Buildings}& 65,000& & \\ \text{Debtors}& 6,000& & \\ \text{Wages}& 1,200& & \\ & \overline{\underset{–}{1,94,400}}& & \overline{\underset{–}{1,94,400}}\end{array}$

Prepare the trading and profit and loss account for the year ended December 31, 2010 and a balance sheet as on that date

(a) Unexpired insurance Rs. 1,000

(b) Salary due but not paid Rs. 1,800.

(c) Wages outstanding Rs. 200.

(d) Interest on capital 5$\%$.

(e) Scooter is depreciated 5$\%$.

(f) Furniture is depreciated 10$\%$

(g) Closing stock is Rs. 15,000

Which of the following is not a method for valuation of goodwill?

Q47. In the context of Government’s decision to recapitalize PSBs to the tune of Rs.2,11,000 crore, which of the following statements is/are correct?

1. Budgetary provision of Rs.18,139 crore is the residual amount under Indradhanush plan

2. One of the sources is through “Recapitalization Bonds” of Rs.1,35,000 crore

3. Balance amount will be raised by disinvestment of PSBs.

Select the correct code:

If realisation period of Asset 'A' is 18 months and operating cycle is 13 months. Asset 'A' is :

Following is the Receipt and Payment Account of Literacy Club for the year ended 31-3-2016 :

$\begin{array}{ccccc}\text{Receipts}& & \text{Rs}& \text{Payment}& \text{Rs}\\ \text{Balance b/d}& & 19,550& \text{Salary}& 3,000\\ \text{Subscriptions :}& & & \text{Newspapers}& 2,050\\ \text{2014-15}& 1,200& & \text{Electricity Bill}& 1,000\\ \text{2015-16}& 26,500& & \text{Fixed deposit}& \\ \text{2016-17}& \underset{–}{500}& 28,200& \text{(on 1-7-2015}9\%\text{p.a)}& 20,000\\ \text{Sale of old newspapers}& & 1,250& \text{Books}& 10,600\\ \text{Government Grants}& & 10,000& \text{Rent}& 6,800\\ \text{Sale of old furniture}& & & \text{Furniture}& 10,500\\ \text{(Book value Rs 7,000)}& & 5,700& \text{Balance c/d}& 11,200\\ \text{Interest on fixed deposits}& & 450& & \\ & & \underset{–}{\overline{65,150}}& & \underset{–}{\overline{65,150}}\end{array}$

Additional Information :

(i) Subscriptions outstanding as on 31-3-2015 were Rs 2,000 and on 31-3-2016 Rs 2,500.

(ii) On 31-3-2016 salary outstanding was Rs 600 and rent outstanding was Rs 1,200.

(iii) The Club owned furniture Rs 15,000 and books Rs 7,000 on 1-4-2015.

Prepare Income and Expenditure Account of the Club for the year ended 31-3-2016 and ascertain 'Capital Fund' on 31-3-2015. Also prepare a Balance Sheet as at 31st March, 2016.

DG Ltd Purchased assets of Rs 2,50,000 from VG Ltd . DG Ltd issued equity shares of Rs 50 each fully paid in consideration at a discount of Rs 30. Calculate the no of shares issued.

The Balance Sheet prepared by the junior accountant showed the following items against the Major Heads and Sub-Heads mentioned which were not as per Schedule III of the Companies Act, 2013

$\begin{array}{cc}\text{Items}& \text{Major Head/Sub-head}\\ \text{Loose Tools}& \text{Trade Receivables}\\ \text{Cheques in Hand}& \text{Currnt Investments}\end{array}$

You are required to represent the items as per the Companies Act, 2013.

Describe the meaning of ‘Debenture issued as Collateral Securities’. What accounting treatment is given to the issue of debentures in the books of accounts?

When the firm goes bankrupt or it is ordered by a court to dissolve for illegal practices, it is called ______________

The profits of a firm for the last two years are Rs. 45,000 and Rs.30,000. What would be the value of goodwill on the basis of 1 years purchase of the weighted average profits ?

What is meant by cash equivalents?

The following errors, affecting the account for the year 2013 were detected in the books of Raj Brothers, Meerut.

(i) Sale of old furniture Rs. 300 treated as sale of goods.

(ii) Receipt of Rs. 1,000 from A crredited to B.

(iii) Goods worth Rs. 200 bought from Z have remained unrecorded so for.

(iv) Rent of proprietor, Rs. 1,200 debited to rent account.

The passbook of Mr Mohit current account showed a credit Balance of Rs. 20,000 dated December 31, 2005. Prepare a Bank Reconciliation statement with the following information.

(i) A cheque of Rs. 400 drawn on his saving account has been shown on current account.

(ii) He issued two cheques of Rs. 300 and Rs. 500 on of December 25, but only the 1st cheque was presented for payment.

(iii) One cheque issued by Mr Mohit of Rs. 500 on December 25, but it was not presented for payment whereas it was recorded twice in the cash book.

Tulip Ltd. issued Rs 4,00,000 $9\%$ Debentures of Rs 100 each on April 1,2014 at a premium of $6\%$ redeemable at a premium of $10\%$ on 31st March, 2018. Assume that required investment was made in $10\%$ Government Securities on April 30 of the financial year in which redemption is due. Debentures were redeemed on the due date.

Pass journal entries at the time of Issue and Redemption of Debentures.

Which of the following statements is true about the honorarium payment?

If an owner introduces capital, it __________ assets and ___________ capital.

Sale of fixed assets can be classified as ___________.

Income and expenditure account is prepared based on

The financial statement includes -