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On the basis of the following information, calculate :

(i) Debt-Equity Ratio and

(ii) Working Capital Turnover Ratio

Information :

$\begin{array}{cc}& \text{Rs.}\\ \text{Net Revenue from Operations}& \text{60,00,000}\\ \text{Cost of Revenue from Operations}& \text{45,00,000}\\ \text{Other Current Assets}& \text{11,00,000}\\ \text{Current Liabilities}& \text{4,00,000}\\ \text{Paid up Share Capital}& \text{6,00,000}\\ \text{6\% Debentures}& \text{3,00,000}\\ \text{9\% Loan}& \text{1,00,000}\\ \text{Debenture Redemption Reserve}& \text{2,00,000}\\ \text{Closing Inventory}& \text{1,00,000}\end{array}$

The Statement of Profit and Loass of an enterprise for the year ended 31st March, 2018, stood as follows:

$$\begin{array}{ccc}\text{Particulars}& \text{Note}& \text{Amount}\\ & \text{No.}& \\ \text{I. Revenue from Operations}& & 1,38,0000\\ \text{II. Other Income}& 1& \underset{–}{1,60,000}\\ \text{III. Total Revenue}& & \underset{–}{1,5,40000}\\ \text{IV. Expenses}& & \\ \text{Purchases}& & 9,30,000\\ \text{Changes in Inventories}& & \\ \text{(Opening Inventory - Closing Inventory) (1,00,000 - 1,30,000)}& & (30,000)\\ \text{Emplyee Benefit Expenses}& & 1,15,000\\ \text{Depreciation and Amortization Expenses}& 2& 87,000\\ \text{Other Expenses}& 3& \underset{–}{3,50,000}\\ \text{Total Expenses}& & 1,45,2000\\ \text{V. Profit Before Tax (III - IV)}& 88,000& \end{array}$$
Notes:
(1)
$$\begin{array}{cc}\text{Other Income:}& \\ \text{Divident Received}& 40,000\\ \text{Profit on Sale of Building}& \\ \text{Book Value}(5,00,000)& \\ \text{Sold for}\underset{–}{6,20,000}& \underset{–}{1,20,000}\\ & \underset{–}{1,60,000}\end{array}$$
(2) $$\begin{array}{cc}\text{Depreciation and Amortization Expenses:}& \\ \text{Depreciation}& 55,000\\ \text{Goodwill written off}& \underset{–}{20,000}\\ & \underset{–}{75,000}\end{array}$$
(3) $$\begin{array}{cc}\text{Other Expenses:}& \\ \text{Office Expenses}& 31,0000\\ \text{Selling and Distribution Expenses}& 40,000\\ \text{Share Issue Expenses Written off}& \underset{–}{12,000}\\ & \underset{–}{3,62,000}\end{array}$$

Additional Information: Rs.
1. Manufacturing Wages Outstanding 50,000
2. Salaries Outstanding 40,000
3. Salaries Prepaid 5,000

Calculate the amount of cash generated from operating activites.

Is it possible to develop information technology as an alternate livelihood option? Give reasons.

Amit, Sumit, and Punit share profit and losses in the ratio of 4:5:2, respectively. Amit retires and Punit acquires Amit’s share. Calculate the new ratio.

Is a retailer's Interest Expense an operating expense or a non-operating expense?

The return on shares is called ___________.

State the difference between dissolution of Partnership and Dissolution of Partnership firm.

A picnic spot is 45 km away from a school. The first stop is taken at 18 km from the school. What percentage of the distance is remaining to reach the destination?

Cash flow statement is classified into ..........

What is meant by redemption of debentures by 'Purchase in the Open Market'?

Following is the Receipt and Payment Account of Literacy Club for the year ended 31-3-2006.
$\begin{array}{cccccc}\text{Receipts}& & & \text{Amount}& \text{Payments}& \text{Amount}\\ & & & \text{(Rs)}& & \text{(Rs)}\\ \text{Balance b/d}& & & 19,550& \text{Salary}& 3,000\\ \text{Subscriptions :}& & & & \text{Newspapers}& 2,050\\ & 2004-05& 1,200& & \text{Electiricty Bill}& 1,000\\ & 2005-06& 26,500& & \text{Fixed Deposits}& \\ & 2006-07& \underset{–}{500}& 28,200& \text{(on}1-7-20059\%\text{p.a})& 20,000\\ \text{Sale of old newspapers}& & & 1,250& \text{Books}& 10,600\\ \text{Government Grants}& & & 10,000& \text{Rent}& 6,800\\ \text{Sale of Old Furniture}& & & & \text{Furniture}& 10,500\\ \text{(Book value Rs 7,000)}& & & 5,700& \text{Balance c/d}& 11,200\\ \text{Interest on Fixed Deposits}& & & 450& & \\ & & & \overline{65,150}& & \overline{65,150}\end{array}$

Additional information :

(i) Subscriptions outstanding as on 31-3-2005 were Rs 2,000 and on 31-3-2006 Rs 2,500.

(ii) On 31-3-2006 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 1-4-2005.

Prepare Income and Expenditure Account of the Club for the year ended 31-3-2006 and ascertain 'Capital Fund' on 31-3-2005. Also prepare a Balance Sheet as on 31st March, 2006.

Information about accounting policies assists financial readers in better interpreting a company’s financial statements. It is given in ___

In case of default in the payment of allotment money, the bank account is debited with which amount?

A business has earned average profits of Rs 1,00,000 during the last few years and the normal rate of return in similar business is 10%. Find out the value of goodwill by :

(i) Capitalisation of super profit method.

(ii) Super profit method if the good will is valued at 3 years' purchase of super profit.

The assets of the business were Rs 10,00,000 and its external liabilities Rs 1,80,000.

The opening balance of bank is shown in which side of the bank account?

Income and Expenditure Account is prepared-

Other Income is a part of revenue from operations.

A limited Company was registered with an authorised capital of Rs 2,00,000 in Rs 10 shares, of these 6,000 shares were issued as fully paid to the vendors for the purchase of buildings. Pass the necessary journal entries.

Shares are alloted after _________

In the balance sheet prepared after the new partnership agreement, assets and liabilities are shown at:

___ refers to goods purchased normally with the intention to resell or trade in.

Subscription income for the year is Rs 52,000; Subscriptions outstanding at the end of the year Rs. 8,000; Subscription outstanding at the beginning of the year Rs. 6,000. Subscription received during the year will be

Cash flow from ____________ primarily reflect the company's purchases or sales of capital assets

When a partner discharges the liability of the firm, realisation account is ___

Show the following items in the Balance Sheet of X ltd:

$\begin{array}{cc}& Rs.\\ \text{Statement of Profit and Loss (Cr.)}& 70,000\\ \text{9\% Debentures}& 10,00,000\\ \text{Preliminary Expenses}& 1,20,000\\ \text{Discount on Issue of 9\% Debentures}& \\ \text{(Amount to be written of in the next three years)}& 45,000\\ \text{Trade Receivables}& 1,50,000\\ \text{Inventory}& 6,40,000\end{array}$

Totalling of Balance Sheet is not required.

Consider the following statements regarding the Kisan Vikas Patra:

Choose incorrect statements:-

Cash Flow Statement is based upon ............

Kanu, Manu and Akansha are partners sharing profits as 20%, 30% and 50%. Kanu decided to retire with the consent of other partners and sold her share to Manu. Goodwill was valued at two and a half years purchase of the average profits of three years. Profits of these three years were Rs 50,000, Rs 70,000 and Rs 60,000. Reserve fund stood in the balance sheet at Rs 30,000 at the time of her retirement. You are required to record necessary journal entries to record above adjustments on Kanu's retirement. Also prepare her capital account to find out the amount due to her when her capital balance in the balance sheet was Rs 1,00,000 before any above adjustment.

Amit, Sumit, and Punit share profit and losses in the ratio of 3:2:1, respectively. Amit retires and the remaining partners decide to take Amit’s share in the existing ratio i.e. 2:1. Calculate the gaining ratio.

The Receipts and Payments Account for the year ending 31st March, 2016 of the Netaji Subhash Club is as follows :

$\begin{array}{ccccc}\text{Receipts}& & \text{Rs}& \text{Payments}& \text{Rs}\\ \text{Cash Balance}& & 50,000& \text{Salaries}& 20,000\\ \text{Membership Subscriptions :}& & & \text{Rent}& 15,000\\ \text{2014-15}& 10,000& & \text{Printing and Stationery}& 8,000\\ \text{2015-16}& 1,00,000& & \text{Water and Power}& 15,000\\ \text{2016-17}& \underset{–}{5,000}& 1,15,000& \text{Newspapers and Periodicals}& 18,000\\ \text{Income from Entertainments}& & 2,000& \text{Furniture}& 50,000\\ \text{Interest}& & 1,500& \text{Repairs to Furniture}& 2,000\\ & & & \text{Refreshments}& 10,000\\ & & & \text{Closing Balance}& 30,500\\ & & \underset{–}{\overline{1,68,500}}& & \underset{–}{\overline{1,68,500}}\end{array}$

(a) The number of members of the club was 500 and the membership subscription was Rs 20 per month.

(b) The rent of the Club House was Rs 1,500 per month.

(c) At and end of the year prepaid salary was Rs 2,000.

(d) In 2014-15, Rs 50,000 were deposited in Fixed Deposit Account for 3 years in a bank, carrying $6\%$ interest p.a.

(e) The other assets on 1st April, 2015 were as follows : Furniture Rs 80,000 and Sports equipments Rs 40,000.

(f) Depreciation is to be provided $10\%$ p.a. on Furniture and Sports equipments. Prepare Income and Expenditure Account for the year ending 31st March, 2016 and Balance Sheet as at that date.

'Product is a mixture of tangible and intangible attributes'. Discuss.

Formula for common size analysis is ___

When debentures are issued at par and redeemed at premium an extra entry has to be made at the time of debentures issue, which a/c should be credited in this entry?

From the following trial balance of Hanif Lal, prepare trading and profit and loss account for the year ended 31st March, 2016 and a balance sheet as on that date.

$\begin{array}{cccc}\text{Particulars}& \text{Amt. (Rs.)}& \text{Particulars}& \text{Amt. (Rs.)}\\ \text{Opening Stock}& 40,000& \text{Sales}& 5,40,000\\ \text{Purchases}& 1,60,000& \text{Purchase Return}& 8,000\\ \text{Sales Return}& 12,000& \text{Discount}& 10,400\\ \text{Carraiage Inwards}& 7,200& \text{Sundry Creditors}& 50,000\\ \text{Carraiage Outwards}& 1,600& \text{Bills Payable}& 3,600\\ \text{Wages}& 84,000& \text{Capital}& 1,50,000\\ \text{Salaries}& 55,000& & \\ \text{Plant and Machinery}& 1,80,000& & \\ \text{Furniture}& 16,000& & \\ \text{Sundry Debitors}& 1,04,000& & \\ \text{Bills Receivable}& 5,000& & \\ \text{Cash in Hand}& 12,600& & \\ \text{Travelling Expenses}& 7,400& & \\ \text{Lighting (Factory)}& 2,800& & \\ \text{Rent and Taxes}& 14,400& & \\ \text{General Expenses}& 21,000& & \\ \text{Insurance}& 3,000& & \\ \text{Drawings}& 36,000& & \\ & \overline{\underset{–}{7,62,000}}& & \overline{\underset{–}{7,62,000}}\\ & & & \end{array}$

Adjsutments

(i) Stock on 31st March, 2016 was valued at Rs. 48,000 (market value Rs 60,000).

(ii) Wages outstanding for March, 2016 amounted to Rs. 6,000.

(iii) Salaries outstanding for March, 2016 amounted to Rs. 5,000.

(iv) Prepaid insurance amounted to Rs. 600.

(v) Provide depreciation on plant and machinery at 5% and on furniture at 20%.

___ represents revenue, expenses and financial result of a business entity.

With regards to the draft guiding principles for the determination of Place of Effective Management (PoEM); consider the following statements:

Select the correct statement(s):

A, B & C are partners sharing profits & losses in the ratio 3:2:1. What will be the new ratio if A retires?

Which of the following is not a method to calculate goodwill by using capitalization method ?

Profit and Loss Account
for the year ended March 31, 2007
$$\begin{array}{cccc}\text{Particulars}& \text{Amt. (Rs.)}& \text{Particular}& \text{Amt (Rs.)}\\ \text{Opening Stock}& 50,000& \text{Sales}& 4,00,000\\ \text{Purchases}& 2,00,000& \text{Closing Stock}& 60,000\\ \text{Direct Expenses}& 16,000& & \\ \text{Gross Profit}& \underset{–}{1,94,000}& & \underset{–}{}\\ & \underset{–}{4,60,000}& & \underset{–}{4,60,000}\\ \text{Salary}& 48,000& \text{Gross Profit}& 1,94,000\\ \text{Loss on Sale of Furniture}& 6,000& & \\ \text{Net profit}& \underset{–}{1,40,000}& & \underset{–}{}\\ & \underset{–}{6,00,000}& & \underset{–}{6,00,000}\end{array}$$

$$\begin{array}{cccc}\text{Capital and Liabilities}& \text{Amt. (Rs.)}& \text{Assets}& \text{Amt. (Rs.)}\\ \text{Profit and Loss}& 1,40,000& \text{Stock}& 60,000\\ \text{Creditors}& 1,90,000& \text{Land}& 4,00,000\\ \text{Equity Share Capital}& 2,00,000& \text{Cash}& 40,000\\ \text{Outstanding Expenses}& 70,000& \text{Debtors}& 1,00,000\\ & \underset{–}{}& & \underset{–}{}\\ & \underset{–}{6,00,000}& & \underset{–}{6,00,000}\end{array}$$

A, B, and C are partners in the firm sharing profits in the ratio of 3 : 2 : 1. B retired and his share was divided equally between A and C. Calculate the new profit sharing ratio of A and C.

A person may be admitted as a partner with the consent of:

Triphati and Chauhan are partners in a firm sharing profits and losses in the ratio of 3 : 2. Their capitals were Rs 60,000 and Rs 40,000 as on January 01, 2005. During the year they earned a profit of Rs 30,000. According to the partnership deed both the partners are entitled to Rs 1,000 per month as Salary and 5% interest on their capital. They are also to be charged an interest of 5% on their drawings, irrespective of the period, which is Rs 12,000 for Tripathi Rs 8,000 for Chauhan. Prepare partner's accounts when capitals are fixed.

What is paid as a dividend to the shareholders?

An advance receipt of subscription from a member of the non-profit organisation is considered as a/an

At the time of dissolution -

Net Profit before interest and tax Rs. 80,000; Equity share capital of Rs. 1,20,000; 10% Preference Share Capital of Rs. 50,000; 12% Debentures Rs. 1,00,000; Reserves and Surplus Rs. 1,30,000; Tax rate 50%; Calculate Return on Investment.

Why is payment of interest a revenue expenditure?

If drawings made by A during the year were Rs 15,000 and interest is to be charged 10%. What will be the interest on drawings ?

(a) Rs. 1,000 (b) Rs 750 (c) Rs 1,500 (d) Rs 2,000

The principal value ofis

Trade Receivable for 31.3.2018 is Rs.150,000 and for 31.3.2017 is Rs.122,000. What is the treatment in the cash flow statement for 31.3.2018