Explore topic-wise InterviewSolutions in .

A withdrew Rs 4,000 in the end of every month for 6 months. What shall be the interest on drawings at the rate of 5% p.a?

Why it is necessary to ascertain new profit sharing ratio even for old partners when a new partner is admitted ?

Explain the statement, "Receipt and Payment Account is a summarised version of Cash Book".

Securities premium account is a/an _______.

How will you deal with a change in profit sharing ratio among existing partners? Take imaginary figures to illustrate your answer.

Which account is to be debited while encashing investment made out of Debenture Redemption Reserves?

In Net Profit Ratio, the denominator is ___

Comparison of financial statements highlights the trend of the ___of the business.

When the application for some shares are rejected outrightly and pro-rata allotment is made to the remaining applicants, the money on rejected applications are ______.

In case of forfeiture of shares, received part of the share capital is linked with _______________.

In the case of financial enterprises, the cash flow resulting from interest received should be classified as cash flow from ..............

Trade Payables for 31.3.2017 is Rs. 70,000 and for 31.3.2018 is Rs. 36,000. What is the treatment in the cash flow statement for 31.3.2018?

Shares are to be issued at _____ when their issue price is exactly equal to their nominal value.

The maximum share capital, a company can raise is ________________

Under ___ method, the balance of the capital account fluctuates from year to year.

Intangible assets under development should be disclosed under ___

What does a Bearer Debenture mean?

In dissolution of a partnership, the business of the firm is ___

Explain the basic features of Income and Expenditure Account and of Receipt and Payment Account.

Interest paid on debentures and long-term loans and advances will result in cash ___ from financing activities.

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 13,000 shares. Applications for 3,000 shares were rejected and pro-rata allotment was made to the applicants for 10,000 shares. How much amount will be received in cash on the first call? Excess application money is adjusted towards the amount due on allotment and calls.

A. B and C are partners sharing profits and losses in the ratio of 5:4:1. It was decided that with effect from 1st April 2016 the profit sharing ratio will be 9:6:5. Goodwill is to be valued at 2 year's purchase of average of 3 year's profits. The profits for 2013-14, 2014-15 and 2015-16 were Rs 48,000, Rs 42,000 and Rs 60,000 respectively.

Pass the necessary journal entry for the treatment of goodwill.

Rajan and Rajani are partners in a firm. Their capitals were : Rajan Rs 3,00,000; Rajani Rs 2,00,000. During the year ended 31st March, 2016 the firm earned a profit of Rs 1,50,000. Calculate the value of goodwill of the firm on the basis of capitalisation of profits assuming that the normal rate of return is 20%.

Purchase of machinery by means of issue of shares should be ___ from cash flow statement

As per SEBI Guidelines, an amount equal to _____ of the debenture issue must be transferred to Debenture Redemption Reserve before redemption begins.

Lifetime membership fees is shown in which side of balance sheet?

All receipts from the sale of consumable items are treated as ____

The balance sheet of a non profit organisation such as a charitable hospital doesn’t contain ____

What is meant by an operating cycle?

Unrecorded Asset realised at the time of dissolution is debited to __________ and credited to ___________.

Madhu, Surabhi and Nikhil are partners without any partnership deed. Madhu retires. Calculate the future ratio of continuing partners if they agreed to acquire her share (i) in the ratio 5 : 3 (ii) equally. Also mention their gaining ratio.

Dissolution of a firm is different from the dissolution of a partnership. True or False.

Long-term provisions are shown under _____

A, B and C have capitals of Rs. 50,000, Rs. 40,000 and Rs. 30,000 respectively who were carrying on a business in partnership. The firm reported profit for the year was Rs. 79,200. Find out the share of each partner in the above amount after taking into account that no interest has been provided on advance given by A of Rs. 20,000, in addition to his capital contribution.

Securites premium account will be .......... at the time of issue.

The total number of stock exchanges in India is

(a) 20

(b) 21

(c) 22

(d) 23

When any shareholder does not pay his call money to company on his due date. This is known as ?

Non profit organisations prepare all of the following except _______

Under fluctuating capital account, the interest on capital is credited to ___

In case of fixed capital accounts, transactions such as drawings, commission are recorded in a separate account called:

The following balances have been extracted from the books of M/s Green House for the years ended December 31, 2010, prepare trading and profit and loss account and balance sheet as on this date.

$\begin{array}{cccc}\text{Account Title}& \text{Amt. (Rs)}& \text{Account Title}& \text{Amt. (Rs)}\\ \text{Purchases}& 80,000& \text{Capital}& 2,10,000\\ \text{Bank Balance}& 11,000& \text{Bills Payable}& 6,500\\ \text{Wages}& 34,000& \text{Sales}& 2,00,000\\ \text{Debtors}& 70,300& \text{Creditors}& 50,000\\ \text{Cash in Hand}& 1,200& \text{Return Outwards}& 4,000\\ \text{Legal Expenses}& 4,000& & \\ \text{Building}& 60,000& & \\ \text{Machinery}& 1,20,000& & \\ \text{Bills Receivable}& 7,000& & \\ \text{Office Expenses}& 3,000& & \\ \text{Opening Stock}& 45,000& & \\ \text{Gas and Fuel}& 2,700& & \\ \text{Freight and Carriage}& 3,500& & \\ \text{Factory Lighting}& 5,000& & \\ \text{Office Furniture}& 5,000& & \\ \text{Patent Right}& 18,800& & \\ & \overline{\underset{–}{\underset{–}{4,70,500}}}& & \overline{\underset{–}{\underset{–}{4,70,500}}}\end{array}$

Adjustments

(a) Machinery is depreciated 10$\%$ and buildings depreciated 6$\%$.

(b) Interest on capital 4$\%$.

(c) Outstanding wages Rs. 50.

(d) Closing stock Rs. 50,000.

A withdrew Rs. 4,000 in the beginning of every month for 6 months. What shall be the interest on drawings at the rate of 5% p.a?

The capital employed as shown by the books of ABC Ltd is Rs 5,00,00,000. And the normal rate of return is 10 %. Goodwill is to be calculated on the basis of 3 years purchase of super profits of the last four years. Profits for the last four years are:

Year Profit/Loss (Rs)

2005 - Rs. 1,00,00,000

2006 - Rs. 1,22,50,000

2007 - Rs. 74,50,000

2008 - Rs. 54,00,000

Calculate goodwill.

Explain the meaning of Analysis and Interpretation.