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Revenue from operations includes _____.

Partners can draw salaries if _____________

The difference between a discount of 40% of Rs. 1,000 and two successive discount of 30% and 10% on the same amount is;

a.0

b.20

c.30

d.40

in some problems we use n2/n1= (p^oa- pa)/p^oa

but in some other cases we use n2/n1= (p^oa-pa)/pa

how to identify which one to use???

When a ratio is defined in respect to the items shown in the financial statements, it is termed as ___

Define a 'current asset'. Give four examples of such assets.

The following was the Balance Sheet of Anurag and Bhawna, who were sharing profits in the ratio of $\frac{2}{3}$ and $\frac{1}{3}$ as at 31st March, 2017:-

$\begin{array}{cccc}\text{Capital and Liabilities}& \text{Rs}& \text{Assets}& \text{Rs}\\ \text{Creditors}& 65,900& \text{Cash}& 1,200\\ \text{Capitals:}& & \text{Sundry Debtors}& 9,700\\ \text{Anurag}& 30,000& \text{Stock}& 20,000\\ \text{Bhawna}& 20,000& \text{Plant \& Machinery}& 35,000\\ & & \text{Building}& 50,000\\ & \underset{–}{\overline{1,15,900}}& & \underset{–}{\overline{1,15,900}}\end{array}$

On 1st April, 2017 they agreed to admit Monika into partnership on the following terms: -

(a) Monika was to be given $\frac{1}{3}$ share in profits, and was to bring Rs 15,000 as capital and Rs 6,000 as share of goodwill.

(b) That the value of stock and plant it & machinery were to be reduced by 10%.

(c) That a provision of 5% was to be created for doubtful debts.

(d) That the building account was to be appreciated by 20%.

(e) Investments worth Rs 1,400 (not mentioned in the Balance Sheet) were to be taken into account.

(f) That the amount of goodwill was to be withdrawn by the old partners.

Pass necessary journal entries and prepare the Revaluation A/c, Capital Accounts and the Opening Balance Sheet of the new firm.

Profit & Loss Account shows -

The dividend is calculated as a percentage of which capital of the company?

Which of the following is not applicable to responsibility accounting?

(a) Investment centre

(b) Accounting centre

(c) Profit centre

(d) Cost centre

XYZ Ltd. issued 10,000 equity share of 100 each payable as follows: Rs. 20 on the application, Rs. 20 on the allotment, Rs. 30 on first call and Rs. 30 on the second and final call. 10,000 shares were applied and allotted. Mr. A holding 100 shares couldn't pay both calls. The shares are forfeited. What is the total amount balance in Calls in Arrear A/c?

(a) Show the following information in financial statements of a 'Not-for-Profit Organisation:

$\begin{array}{cc}\text{Details}& \text{Amount (Rs)}\\ \text{Match Expenses}& 8,00,000\\ \text{Match Fund}& 4,00,000\\ \text{Donation for Match Fund}& 2,40,000\\ \text{Sale of Match tickets}& 3,60,000\end{array}$

(b) What will be the effect, if match expenses go up by Rs 2,50,000 other things remaining the same?

Dinker and Ravinder were partners sharing profits and losses in the ratio of 2:1. The following balances were extracted from the books of account, for the year ended December 31, 2005.

$\begin{array}{ccc}\text{Account Name}& \text{Amt. (Dr)}& \text{Amt. (Cr)}\\ \text{Capital}& & \\ \text{Dinker}& & 2,35,000\\ \text{Ravinder}& & 1,63,000\\ \text{Drawings}& & \\ \text{Dinker}& 6,000& \\ \text{Ravinder}& 5,000& \\ \text{Opening Stock}& 35,100& \\ \text{Purchase and Sales}& 2,85,000& 3,75,800\end{array}$

$\begin{array}{ccc}\text{Account Name}& \text{Amt. (Dr)}& \text{Amt. (Cr)}\\ \text{Carriage Inward}& 2,200& \\ \text{Returns}& 3,000& 2,200\\ \text{Stationery}& 1,200& \\ \text{Wages}& 12,500& \\ \text{Bills Receivables and Bills}& 45,000& 32,000\\ \text{Payables}& & \\ \text{Discount}& 900& 400\\ \text{Salaries}& 12,000& \\ \text{Rent and Taxes}& 18,000& \\ \text{Insurance Premium}& 2,400& \\ \text{Postage}& 300& \\ \text{Sundry Expenses}& 1,100& \\ \text{Commission}& & 3,200\\ \text{Debtors and Creditors}& 95,000& 40,000\\ \text{Building}& 1,20,000& \\ \text{Plant and Machinery}& 80,000& \\ \text{Investments}& 1,00,000& \\ \text{Furniture and Fixture}& 26,000& \\ \text{Bad Debts}& 2,000& \\ \text{Bad Debts Provision}& & 4,600\\ \text{Loan}& & 35,000\\ \text{Legal Expenses}& 200& \\ \text{Audit Fee}& 1,800& \\ \text{Cash in Hand}& 13,500& \\ \text{Cash at Bank}& 23,000& \\ & \overline{\underset{–}{8,91,200}}& \overline{\underset{–}{8,91,200}}\end{array}$

Prepare final accounts for the year ended December 31, 2005, with following adjustment

(a) Stock on December 31, 2005 was Rs 42,500.

(b) A Provision is to be made for bad debts at 5% on debtors.

(c) Rent outstanding was Rs 1,600.

(d) Wages outstanding were Rs 1,200.

(e) Interest on capital to be allowed on capital 4% per annum and interest on drawings to be on charged 6% per annum.

(f) Dinker and Ravinder are entitled to a Salary of Rs 2,000 per annum.

(g) Ravinder is entitled to a commission Rs 1,500.

(h) Depreciation is to be charged on Building 4%, Plant and Machinery, 6%, and furniture and fixture, 5%.

(i) Outstanding interest on loan amounted to Rs 350.

XYZ Ltd has issued 20,000 debentures at Rs.100 each per debenture for a four-year term. But the public has only subscribed to 16,000 debentures. Rs.40 is collected at application stage and Rs.60 upon allotment. At application stage, the Bank A/c is debited with what amount?

Show how will you deal with the following items while preparing the Balance Sheet of a Club as at 31st March, 2018.

$\begin{array}{cc}& \text{Rs}\\ \text{Sports Fund}& 5,00,000\\ 10\%\text{Sports Fund Investments on 1st April, 2017}& 5,00,000\\ \text{Interest Received on Sports Fund Investments}& 37,500\\ \text{Donations for Sports Fund}& 1,20,000\\ \text{Sports prizes awarded}& 1,00,000\\ \text{Expenses on sports events}& 15,000\end{array}$

This method starts with net income and converts it to operating cash flow by adjusting for items that were used to calculate net income but did not affect cash. This method is …..

Azad and Benny are equal partners. Their capitals are Rs 40,000 and Rs 80,000 respectively. After the accounts for the year have prepared it is discovered that interest at 5% pa as provided in the partnership agreement, has not been credited to the capital accounts before distribution of profits. It is decided to make an adjustment entry at the begining of the next year. Record the necessary journal entry.

Check by substitution

-x+24=-3x-20

Number of years of purchase refers to the number of years the firm will be able to earn _____ in future.

In average profit method, goodwill is calculated on the basis of ___

When goodwill is purchased for a cost, how is it shown in the cash flow statement?

The accumulated surpluses and reserves are shared between partners in which ratio?

Which of the following is not shown in income and expenditure account?

Calculate cash from operating activities from the following balances:

$$\begin{array}{ccc}\text{Particulars}& \text{31st March, 2016}& \text{31st March, 2017}\\ \text{Current Assets and Current Liabilities:}& & \\ \text{Debtors}& 80,000& 60,000\\ \text{Bills Receivable}& 7,000& 10,000\\ \text{Creditors}& 50,000& 55,000\\ \text{Bills Payable}& 8,000& 6,000\\ \text{Outstanding Expenses}& 1,000& 1,500\\ \text{Prepaid Expenses}& 1,800& 1,600\\ \text{Accrued Income}& 800& 900\\ \text{Income received in Advance}& 700& -\end{array}$$

Operating profit before working capital changes was Rs. 1,00,000.

Interest due on loan amount is credited to ___

To give effect to the treatment of goodwill, whose account shall be credited ?

The ideal level of current ratio is___

R.K.Ltd., invited applications for issuing 80,000 equity shares of Rs 10 each at a premium of Rs 35 per share. The amount was payable as follows:
On Application Rs 8 (including Rs 5 premium) per share.
On Allotment Rs 12 (including Rs 10 premium) per share.

On First and Final Call Balance.

Application for 75,000 shares were received and allotment was made to all the applicants. Rahim, a shareholder who was allotted 3,000 shares failed to pay allotment money and his shares were immediately forfeited. Afterwards, the first and final call was made. Suhani who held 3,000 shares failed to pay the final call. Her shares were also forfeited. All the forfeited shares were re-issued for a sum of Rs 62,000 as fully paid up.

Pass the necessary Journal entries for the above transactions in the books of R.K.Ltd.

OR

Sargam Ltd., invited applications for issuing 80,000 equity shares of Rs 100 each at a premium. The amount was payable as follows :

On Application Rs 20 per share.

On Allotment Rs 60 (including premium) per share.

On First and Final Call Rs 40 per share.

Application for 1,20,000 shares were received. Allotment was made on pro-rata basis to all the applicants. Excess money received on applications was adjusted on sums due to allotment. Sitaram, who had applied for 6,000 shares failed to pay the allotment money and Harnam did not pay first and final call on 800 shares allotted to him. The shares of Sitaram and Harnam were forfeited. 4,200 of these shares were re-issued for Rs 100 per share as fully paid up. The re-issued shares included all the forfeited shares of Harnam.

Pass necessary Journal entries for the above transactions in the books of Sargam Ltd.

The subscription amounts are treated as receipts.

Rajesh and Mukesh are equal partners in a firm. They admit Hari into partnership and the new profit sharing ratio between Rajesh, Mukesh and Hari is 4 : 3 : 2. On Hari's admission, goodwill of the firm is valued at Rs. 36,000. Hari is unable to bring his share of goodwill premium in cash. Rajesh, Mukesh and Hari decided not to show goodwill in their balance sheet. Record necessary journal entries for the treatment of goodwill on Hari's admission.

A trade receivable will be treated as current, if it is likely to be realised within ______ from the date of balance sheet.

Ashu And Harish are partners sharing profit and losses as 3: 2 They decided to dissolve the firm on december 31. 2012. Their balance sheet on the above date was
$$\begin{array}{cccccccc}& & & & \text{Balance Sheet of Ashu and Harish}& & & \\ & & & & \text{as on December 31. 2012}& & & \end{array}$$
$$\begin{array}{ccccc}\text{Liabilities}& & \text{Amt.}& \text{Assets}& \text{Amt.}\\ \text{Capitals}& & & \text{Building}& 80,000\\ \text{Ashu}& 1,08,000& & \text{Machinery}& 70,000\\ \text{Harish}& \underset{–}{54,000}& 1,62,000& \text{Furniture}& 14,000\\ \text{Creditors}& & 88,000& \text{Stock}& 20,000\\ \text{Bank Overdraft}& & 50,000& \text{Investment}& 60,000\\ & & & \text{Debtors}& 48,000\\ & & & \text{Cash in Hand}& 8,000\\ & & \underset{–}{}& & \underset{–}{}\\ & & 3,00,000& & 3,00,000\\ & & \underset{–}{}& & \underset{–}{}\end{array}$$

Ashu is to take over the building at Rs. 95,000 and Machinery and Furniture is taken over by Harish at value of Rs. 80,000. Ashu agreed to pay creditor and Harish agreed to meet bank overdraft. Stock and Investments are taken by both partner in profit sharing ratio. Debtors realised for Rs. 46,000. Expenses of realisation amounted to Rs. 3,000.
Prepare necessary ledger account.

Interest income in case of a company other than a finance company is Revenue from operations.

This ratio primarily indicates the rate of external funds in financing the assets and the extent of coverage of their debts by the assets. This ratio is ____.

State any two occasions on which a firm can be reconstituted.

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

Which of the following statements are true?

A and B are partners sharing profits in the ratio of 3:2. They admit C into the firm for $\frac{1}{4}th$ share in profit which he takes $\frac{1}{6}th$ from A and $\frac{1}{12}th$ from B. C brings Rs 50,000 as goodwill . No goodwill account appears in the books of the firm. Pass necessary journal entries to record this arrangement.

For transfer of Assets, we pass an entry-

Apply common size analysis to ABC Company's Shareholders' Fund given the following information:
Selling expenses = Rs. 60,000; total revenues = Rs. 2,50,000; Shareholders' Fund = Rs. 1,25,000, Total assets = Rs. 4,25,000; Total liabilities = Rs 3,00,000.

The ratio in which the remaining partners acquire the outgoing partner's share of profit is called ______.

What do you mean by guarantee of a partner?

What do you understand by the term 'trading on equity'?

The journal entry for receipt of application money-

The Debt-Equity Ratio of a Company is 1 : 2. Which of the following would increase, decrease or not change it ?

(i) Repayment of Long term Borrowings of Rs. 40,000.

(ii) Purchased a fixed Asset for Rs. 50,000 on long-term deferred payment basis.

(iii) Issued new equity shared of Rs. 75,000.

(iv) Payment of Dividend Payable.

(v) Goods purchased on Credit.

(vi) Payment to Trade Payables.

Net profit ratio determines _______________

Why should a firm have a partnership deed?

Which of these values of trade payables turnover ratio is more favorable?