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This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your knowledge and support exam preparation. Choose a topic below to get started.
| 351. |
A firm's average profits are Rs 70,000. It includes an abnormal profit of Rs 5,000. Capital invested in the business is Rs 5,50,000 and the normal rate of return is 10%. Calculate goodwill at four times the super profit. |
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Answer» A firm's average profits are Rs 70,000. It includes an abnormal profit of Rs 5,000. Capital invested in the business is Rs 5,50,000 and the normal rate of return is 10%. Calculate goodwill at four times the super profit. |
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| 352. |
Ratio of Current Assets (₹8,75,000) to Current Liabilities (₹3,50,000) is 2.5:1. The firm wants to maintain Current Ratio of 2:1 by purchasing goods on credit. Compute amount of goods that should be purchased on credit. |
| Answer» Ratio of Current Assets (₹8,75,000) to Current Liabilities (₹3,50,000) is 2.5:1. The firm wants to maintain Current Ratio of 2:1 by purchasing goods on credit. Compute amount of goods that should be purchased on credit. | |
| 353. |
Alfa Limited invited applications for 4,00,000 of its equity shares of Rs 10 each on the following terms : Payable on applicationRs 5 per sharePayable on allotmentRs 3 per sharePayable on first and final callRs 2 per share Applications for 5,00,000 shares were received. It was decided : (a) to refuse allotment to the applicants for 20,000 shares;(b) to allot in full to applicants for 80,000 shares;(c) to allot the balance of the available shares’ pro-rata among the other applicants; and(d) to utilise excess application money in part as payment of allotment money.One applicant, whom shares had been allotted on pro-rata basis, did not pay the amount due on allotment and on the call, and his 400 shares were forfeited. The shares were reissued Rs 9 per share. Show the journal and prepare Cash book to record the above. |
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Answer» Alfa Limited invited applications for 4,00,000 of its equity shares of Rs 10 each on the following terms :
Applications for 5,00,000 shares were received. It was decided :
(a) to refuse allotment to the applicants for 20,000 shares; (b) to allot in full to applicants for 80,000 shares; (c) to allot the balance of the available shares’ pro-rata among the other applicants; and (d) to utilise excess application money in part as payment of allotment money. One applicant, whom shares had been allotted on pro-rata basis, did not pay the amount due on allotment and on the call, and his 400 shares were forfeited. The shares were reissued Rs 9 per share. Show the journal and prepare Cash book to record the above.
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| 354. |
When the shares of a company are issued more than its nominal value (face value), the excess amount is called __________. |
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Answer» When the shares of a company are issued more than its nominal value (face value), the excess amount is called __________. |
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| 355. |
The liquidity of a business firm is measured by its ability to satisfy its long-term obligations as they become due. What are the ratios used for this purpose? |
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Answer» The liquidity of a business firm is measured by its ability to satisfy its long-term obligations as they become due. What are the ratios used for this purpose? |
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| 356. |
A, B, C were partners in a firm sharing profits in 3:2:1 ratio. Theyadmitted D for 10% profits. Calculate the new profit sharing ratio? |
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Answer»
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| 357. |
On 31st March, 2003, G Ltd. had ₹ 8,00,000;9% Debentures due for redemption. The company had a balance of ₹ 1,40,000 in its Debentures Redemption Reserve . Pass necessary journal entries for redemption of debentures. |
| Answer» On 31st March, 2003, G Ltd. had ₹ 8,00,000;9% Debentures due for redemption. The company had a balance of ₹ 1,40,000 in its Debentures Redemption Reserve . Pass necessary journal entries for redemption of debentures. | |
| 358. |
A and B are partners in a firm sharing profits and losses in the ratio of 2 : 1. On 31st March, 2019, their Balance Sheet was: Liabilities Amount (₹) Assets Amount (₹) Bank Overdraft 30,000 Cash in Hand 6,000 General Reserve 56,000 Bank Balance 10,000 Investments Fluctuation Reserve 20,000 Sundry Debtors 26,000 A's Loan 34,000 Less: Provision for Doubtful Debtors 2,000 24,000 Capital A/c: A 50,000 Investments 40,000 Stock 10,000 Furniture 10,000 Building 60,000 B's Capital 30,000 1,90,000 1,90,000 On that date, the partners decide to dissolve the firm. A took over Investments at an agreed valuation of ₹ 35,000. Other assets were realised as follows:Sundry Debtors: Full amount. The firm could realise Stock at 15% less and Furniture at 20% less than the book value. Building was sold at ₹ 1,00,000.Compensation to employees paid by the firm amounted to ₹ 10,000. This liability was not provided for in the above Balance Sheet.You are required to close the books of the firm by preparing Realisation Account, Partners' Capital Accounts and Bank Account. |
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Answer» A and B are partners in a firm sharing profits and losses in the ratio of 2 : 1. On 31st March, 2019, their Balance Sheet was:
On that date, the partners decide to dissolve the firm. A took over Investments at an agreed valuation of ₹ 35,000. Other assets were realised as follows: Sundry Debtors: Full amount. The firm could realise Stock at 15% less and Furniture at 20% less than the book value. Building was sold at ₹ 1,00,000. Compensation to employees paid by the firm amounted to ₹ 10,000. This liability was not provided for in the above Balance Sheet. You are required to close the books of the firm by preparing Realisation Account, Partners' Capital Accounts and Bank Account. |
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| 359. |
Provision for doubtful debts appearing at the time of dissolution of a firm is transferred to __________ |
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Answer» Provision for doubtful debts appearing at the time of dissolution of a firm is transferred to __________ |
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| 360. |
A and B are equal partners. They decide to admit C for 1/3rd share. For the purpose of admission of C, goodwill of the firm is to be valued at four years' purchase of super profit. Average capital employed in the firm is ₹ 1,50,000. Normal rate of return may be taken as 15% p.a. Average profit of the firm is ₹ 40,000. Calculate value of goodwill. |
| Answer» A and B are equal partners. They decide to admit C for 1/3rd share. For the purpose of admission of C, goodwill of the firm is to be valued at four years' purchase of super profit. Average capital employed in the firm is ₹ 1,50,000. Normal rate of return may be taken as 15% p.a. Average profit of the firm is ₹ 40,000. Calculate value of goodwill. | |
| 361. |
Receipts and Payments Account of Young Association disclosed that it has received Rs 2,00,000 by way of subscriptions during the year ended on March 31, 2016. RsSubscription Outstanding as on 1-4-2015(Out of which Rs 3,500 were received in 2015-16)5,000Subscription received in advance on 31-3-20153,000Subscription received in advance on 31-3-20164,100 Show how the subscription will appear in the Income and Expenditure Account for the year ending March 31, 2016 and the Balance Sheet as at that date in each of the following alternative cases : Case (a) If subscription outstanding for 2015-16 is Rs 6,400 Case (b) If subscription outstanding as on 31-3-2016 is Rs 6,400 |
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Answer» Receipts and Payments Account of Young Association disclosed that it has received Rs 2,00,000 by way of subscriptions during the year ended on March 31, 2016. RsSubscription Outstanding as on 1-4-2015(Out of which Rs 3,500 were received in 2015-16)5,000Subscription received in advance on 31-3-20153,000Subscription received in advance on 31-3-20164,100 Show how the subscription will appear in the Income and Expenditure Account for the year ending March 31, 2016 and the Balance Sheet as at that date in each of the following alternative cases : Case (a) If subscription outstanding for 2015-16 is Rs 6,400 Case (b) If subscription outstanding as on 31-3-2016 is Rs 6,400 |
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| 362. |
A, B, C and D were partners in a firm sharing profits in 5:3:2:2 ratio. B and C retired from the firm . B's share was acquired by D and C's share was acquired by A . Calculate new profit-sharing ratio of A and D . |
| Answer» A, B, C and D were partners in a firm sharing profits in 5:3:2:2 ratio. B and C retired from the firm . B's share was acquired by D and C's share was acquired by A . Calculate new profit-sharing ratio of A and D . | |
| 363. |
Ghosh Ltd. made the second and final call on its 50,000 Equity Shares ₹ 2 per share on 1st January, 2016. The entire amount was received on 15th January, 2016 except on 100 shares allotted to Venkat. Pass necessary journal entries for the call money due and received by opening Calls-in-Arrears Account. |
| Answer» Ghosh Ltd. made the second and final call on its 50,000 Equity Shares ₹ 2 per share on 1st January, 2016. The entire amount was received on 15th January, 2016 except on 100 shares allotted to Venkat. Pass necessary journal entries for the call money due and received by opening Calls-in-Arrears Account. | |
| 364. |
Amit and Bhola are partners in a firm. They share profits in the ratio of 3:2. As per their partnership agreement, interest on drawings is to be charged 10% p.a. Their drawings during 2017 were Rs 24,000 and Rs 16,000, respectively. Calculate interest on drawings based on the assumption that the amounts were withdrawn evenly, throughout the year. |
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Answer» Amit and Bhola are partners in a firm. They share profits in the ratio of 3:2. As per their partnership agreement, interest on drawings is to be charged 10% p.a. Their drawings during 2017 were Rs 24,000 and Rs 16,000, respectively. Calculate interest on drawings based on the assumption that the amounts were withdrawn evenly, throughout the year. |
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| 365. |
Bat and Ball are partners sharing the profits in the ratio of 2 : 3 with capitals of ₹ 1,20,000 and ₹ 60,000 respectively. On 1st October, 2017, Bat and Ball granted lonas of ₹ 2,40,000 and ₹ 1,20,000 respectively to the firm. Bat had allowed the firm to use his property for business for a monthly rent of ₹ 5,000. The loss for the year ended 31st March, 2018 before rent and interest amounted to ₹ 9,000. Show distribution of profit/loss. |
| Answer» Bat and Ball are partners sharing the profits in the ratio of 2 : 3 with capitals of ₹ 1,20,000 and ₹ 60,000 respectively. On 1st October, 2017, Bat and Ball granted lonas of ₹ 2,40,000 and ₹ 1,20,000 respectively to the firm. Bat had allowed the firm to use his property for business for a monthly rent of ₹ 5,000. The loss for the year ended 31st March, 2018 before rent and interest amounted to ₹ 9,000. Show distribution of profit/loss. | |
| 366. |
Q. A men invested an amount at 8% per annum and another amount at 6% per annum. Simple interest, he received Rs.248 as total annual interest, he would have received Rs.34 less than earlier as interest. What amount did he interested at different rates? |
| Answer» Q. A men invested an amount at 8% per annum and another amount at 6% per annum. Simple interest, he received Rs.248 as total annual interest, he would have received Rs.34 less than earlier as interest. What amount did he interested at different rates? | |
| 367. |
The accounts of non-trading concerns are generally maintained according to: |
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Answer» The accounts of non-trading concerns are generally maintained according to: |
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| 368. |
X Ltd invites application for the issue of 10,000, 14% debentures of Rs.100 each payable as to Rs.20 on application, Rs.60 on allotment and the balance on call. The company receives applications for 13,500 debentures, out of which application for 8,000 debentures are allotted in full, 5,000 only 40% and the remaining rejected. The surplus money on partially allotted applications is utilised towards allotment. All the sums due are duty received. |
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Answer» X Ltd invites application for the issue of 10,000, 14% debentures of Rs.100 each payable as to Rs.20 on application, Rs.60 on allotment and the balance on call. The company receives applications for 13,500 debentures, out of which application for 8,000 debentures are allotted in full, 5,000 only 40% and the remaining rejected. The surplus money on partially allotted applications is utilised towards allotment. All the sums due are duty received. |
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| 369. |
A and B are partners in a firm sharing profits in the ratio of 4 : 1 . They decided to share future profits in the ratio of 3 : 2 w.e.f. 1st April,2018 . On that day, Profit and Loss Account showed a debit balance of ₹ 1,00,000.Pass journal entry to give effect to the above. |
| Answer» A and B are partners in a firm sharing profits in the ratio of 4 : 1 . They decided to share future profits in the ratio of 3 : 2 w.e.f. 1st April,2018 . On that day, Profit and Loss Account showed a debit balance of ₹ 1,00,000.Pass journal entry to give effect to the above. | |
| 370. |
Below is given the Trial Balance of Mr. Ram as at 31st December, 2015. You are required to prepare Trading and Profit & Loss Account and Balance Sheet as at that date. Dr. Balances (₹) Cr. Balances (₹) Opening Stock 42,000 Sales 4,10,000 Purchases 2,00,000 Sundry Creditors 20,000 Plant 60,000 Purchases Return 8,000 Salary 33,000 Commission 7,500 Wages 44,000 Bank 24,000 Discount 2,000 Capital 1,50,000 Rent 27,500 Interest on Investments 700 Furniture (Including Furniture of ₹ 5,000 purchased on 1st July, 2015) 20,000 Special Rebate 800 Carriage in 5,800 Carriage out 3,200 Sundry Debtors 1,00,000 Office Expenses 6,600 Cash in hand 5,400 Investments at 14% p.a. 10,000 Insurance (Paid to 30th April, 2016) 1,500 Stock on 31st December, 2015 60,000 6,21,000 6,21,000 Adjustments:- 1. Create a provision for Doubtful Debts 5% on Debtors and 2% for discount on Debtors.2. Provide up-to-date interest on Investments.3. Expenses for rent, wages, salaries and office expenses are uniform throughout the year and those for December, 2015 have not been paid.4. Depreciate Plant by 10% p.a. and Furniture by 20% p.a.5. Unearned Commission ₹ 1,500. |
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Answer» Below is given the Trial Balance of Mr. Ram as at 31st December, 2015. You are required to prepare Trading and Profit & Loss Account and Balance Sheet as at that date.
Adjustments:- 1. Create a provision for Doubtful Debts 5% on Debtors and 2% for discount on Debtors. 2. Provide up-to-date interest on Investments. 3. Expenses for rent, wages, salaries and office expenses are uniform throughout the year and those for December, 2015 have not been paid. 4. Depreciate Plant by 10% p.a. and Furniture by 20% p.a. 5. Unearned Commission ₹ 1,500. |
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| 371. |
Old ratio of A,B & C is 5:4:1.Calculate the new profit sharing ratio, when C acquires 1/5th Share from A & B equally. |
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Answer» Old ratio of A,B & C is 5:4:1.Calculate the new profit sharing ratio, when C acquires 1/5th Share from A & B equally. |
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| 372. |
Asgar, Chaman and Dholu are partners in a firm. Their Capital Accounts stood at ₹ 6,00,000; ₹ 5,00,000 and ₹ 4,00,000 respectively on 1st April, 2017. They shared Profits and Losses in the proportion of 4 : 2 : 3. Partners are entitled to interest on capital 8% per annum and salary to Chaman and Dholu ₹ 7,000 per month and ₹ 10,000 per quarter respectively as per the provision of the Partnership Deed. Sholu's share of profit ( excluding interest on capital but including salary) is guaranteed at a minimum of ₹ 1,10,000 p.a. Any deficiency arising on that account shall be met by Asgar. The profit for the year ended 31st March, 2018 amounted to ₹ 4,24,000.Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2018. |
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Answer» Asgar, Chaman and Dholu are partners in a firm. Their Capital Accounts stood at ₹ 6,00,000; ₹ 5,00,000 and ₹ 4,00,000 respectively on 1st April, 2017. They shared Profits and Losses in the proportion of 4 : 2 : 3. Partners are entitled to interest on capital 8% per annum and salary to Chaman and Dholu ₹ 7,000 per month and ₹ 10,000 per quarter respectively as per the provision of the Partnership Deed. Sholu's share of profit ( excluding interest on capital but including salary) is guaranteed at a minimum of ₹ 1,10,000 p.a. Any deficiency arising on that account shall be met by Asgar. The profit for the year ended 31st March, 2018 amounted to ₹ 4,24,000. Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2018. |
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| 373. |
T. Ltd. offered 2,00,000, 8% Debenture of Rs 500 each on June 30, 2002 at a premium of 10% payable as Rs 200 on application (including premium) and balance on allotment, redeemable at par after 8 years. But application are received for 3,00,000 debenture and the allotment is made on pro-rata basis. All the money due on application and allotment is received. Record necessary entries regarding issue of debenture. |
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Answer» T. Ltd. offered 2,00,000, 8% Debenture of Rs 500 each on June 30, 2002 at a premium of 10% payable as Rs 200 on application (including premium) and balance on allotment, redeemable at par after 8 years. But application are received for 3,00,000 debenture and the allotment is made on pro-rata basis. All the money due on application and allotment is received. Record necessary entries regarding issue of debenture. |
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| 374. |
A, B, C and D are partners in a firm sharing profits, in the ratio of 2 : 1 : 2 : 1. On the retirement of C, Goodwill was valued ₹ 1,80,000. A, B and D decide to share future profits equally. Pass the necessary Journal entry for the treatment of goodwill. |
| Answer» A, B, C and D are partners in a firm sharing profits, in the ratio of 2 : 1 : 2 : 1. On the retirement of C, Goodwill was valued ₹ 1,80,000. A, B and D decide to share future profits equally. Pass the necessary Journal entry for the treatment of goodwill. | |
| 375. |
Section 52 of the Companies Act, 2013 is related to. |
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Answer» Section 52 of the Companies Act, 2013 is related to. |
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| 376. |
From the information given below, calculate any three of the following ratio:(i) Gross Profit Ratio;(ii) Working Capital Turnover Ratio:(iii) Debt to Equity Ratio; and (iv) Proprietary Ratio. ₹ ₹ Revenue from Operations (Net Sales) 5,00,000 Current Liabilities 1,40,000 Cost of Revenue from Operations (Cost of Goods Sold) 3,00,000 Paid-up Share Capital 2,50,000 Current Assets 2,00,000 13% Debentures 1,00,000 |
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Answer» From the information given below, calculate any three of the following ratio: (i) Gross Profit Ratio;
(ii) Working Capital Turnover Ratio: (iii) Debt to Equity Ratio; and (iv) Proprietary Ratio.
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| 377. |
Prepare a Comparative Statement of Profit & Loss of Ahmed Ltd., with the help of the following information : Particulars31−03−201831−03−2017(Rs.)(Rs.)Revenue from Operations8,00,0005,00,000Purchase of Stock in Trade4,20,0002,40,000Changes in Inventories80,00060,000Employee Benefit Expenses∗20,00040,000Other Expenses40,00030,000Income Tax50%40% * Employee Benefit Expenses means expenses incurred on employees. It includes expenses such as salaries and wages, contribution to Provident Fund, staff welfare etc. |
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Answer» Prepare a Comparative Statement of Profit & Loss of Ahmed Ltd., with the help of the following information : Particulars31−03−201831−03−2017(Rs.)(Rs.)Revenue from Operations8,00,0005,00,000Purchase of Stock in Trade4,20,0002,40,000Changes in Inventories80,00060,000Employee Benefit Expenses∗20,00040,000Other Expenses40,00030,000Income Tax50%40% * Employee Benefit Expenses means expenses incurred on employees. It includes expenses such as salaries and wages, contribution to Provident Fund, staff welfare etc. |
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| 378. |
For expenses of realisation when actual expenses are paid by the partner on behalf of the firm, realisation account is ___ |
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Answer» For expenses of realisation when actual expenses are paid by the partner on behalf of the firm, realisation account is |
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| 379. |
Find the purchase price of a share of FV Rs 100 if it is at premium of Rs 30. The brokerage rate is 0.3%. |
| Answer» Find the purchase price of a share of FV Rs 100 if it is at premium of Rs 30. The brokerage rate is 0.3%. | |
| 380. |
Gross Profit at 25% on cost; Gross profit ₹ 5,00,000; Equity Share Capital ₹ 10,00,000; Reserves and Surplus 2,00,000; Long-term Loan 3,00,000; Fixed Assets (Net) ₹ 10,00,000. Calculate Working Capital Turnover Ratio |
| Answer» Gross Profit at 25% on cost; Gross profit ₹ 5,00,000; Equity Share Capital ₹ 10,00,000; Reserves and Surplus 2,00,000; Long-term Loan 3,00,000; Fixed Assets (Net) ₹ 10,00,000. Calculate Working Capital Turnover Ratio | |
| 381. |
Asha sold goods worth Rs 19,000 to Nisha on March 02, 2017. Rs 4,000 were paid by Nisha immediately and for the balance she accepted a bill of exchange drawn upon her by Asha payable after three months. Asha discounted the bill immediately with her bank. On the due date Nisha dishonoured the bill and the bank paid Rs 30 as noting charges.Record the necessary journal entries in the books of Asha and Nisha. |
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Answer» Asha sold goods worth Rs 19,000 to Nisha on March 02, 2017. Rs 4,000 were paid by Nisha immediately and for the balance she accepted a bill of exchange drawn upon her by Asha payable after three months. Asha discounted the bill immediately with her bank. On the due date Nisha dishonoured the bill and the bank paid Rs 30 as noting charges. Record the necessary journal entries in the books of Asha and Nisha.
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| 382. |
Following was the Balance Sheet of A and B who were sharing profits in the ratio f 2 : 1 as at 31st March, 2018: Liabilities ₹ Assets ₹ Capital A/cs: Building 25,000 A 15,000 Plant and Machinery 17,500 B 10,000 25,000 Stock 10,000 Sundry Creditors 32,950 Sundry Debtors 4,850 Cash in Hand 600 57,950 57,950 They agree to admit C into the partnership on the following terms:(a) C was to bring in ₹ 7,500 as his capital and ₹ 3,000 as goodwill for 1/4th share in the firm.(b) Values of the Stock and Plant and Machinery were to be reduced by 5% .(c) A Provision for Doubtful Debts was to be created in respect of Sundry Debtor ₹ 375.(d) Building Account was to be appreciated by 10% .Pass necessary journal entries to give effect to the arrangements . Prepare Profit and Loss Adjustment Account (or Revaluation Account ), Capital Accounts and Balance Sheet of the new firm |
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Answer» Following was the Balance Sheet of A and B who were sharing profits in the ratio f 2 : 1 as at 31st March, 2018:
They agree to admit C into the partnership on the following terms: (a) C was to bring in ₹ 7,500 as his capital and ₹ 3,000 as goodwill for 1/4th share in the firm. (b) Values of the Stock and Plant and Machinery were to be reduced by 5% . (c) A Provision for Doubtful Debts was to be created in respect of Sundry Debtor ₹ 375. (d) Building Account was to be appreciated by 10% . Pass necessary journal entries to give effect to the arrangements . Prepare Profit and Loss Adjustment Account (or Revaluation Account ), Capital Accounts and Balance Sheet of the new firm |
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| 383. |
From the following compute Current Ratio: ₹ ₹ Trade Receivable (Sundry Debtors) 1,80,000 Bills Payable 20,000 Prepaid Expenses 40,000 Sundry Creditors 1,00,000 Cash and Cash Equivalents 50,000 Debentures 4,00,000 Marketable Securities 50,000 Inventories 80,000 Land and Building 5,00,000 Expenses Payable 80,000 |
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Answer» From the following compute Current Ratio:
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| 384. |
The following balances has been extracted from the trial of M/s Runway Shine Ltd. Prepare a trading and profit and loss account and a balance sheet as on March 31, 2017. Account Title Amount Rs Account Title Amount Rs Purchases 1,50,000 Sales 2,50,000 Opening stock 50,000 Return outwards 4,500 Return inwards 2,000 Interest received 3,500 Carriage inwards 4,500 Discount received 400 Cash in hand 77,800 Creditors 1,25,000 Cash at bank 60,800 Bill payable 6,040 Wages 2,400 Capital 1,00,000 Printing and Stationery 4,500 Discount 400 Bad debts 1,500 Insurance 2,500 Investment 32,000 Debtors 53,000 Bills receivable 20,000 Postage and Telegraph 400 Commission 200 Interest 1,000 Repair 440 Lighting Charges 500 Telephone charges 100 Carriage outward 400 Motor car 25,000 4,89,440 4,89,440 Adjustments1. Further bad debts Rs 1,000. Discount on debtors Rs 500 and make a provision on debtors 5%.2. Interest received on investment 5%.3. Wages and interest outstanding Rs 100 and Rs 200 respectively.4. Depreciation charged on motor car 5% p.a.5. Closing Stock Rs 32,500. |
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Answer» The following balances has been extracted from the trial of M/s Runway Shine Ltd. Prepare a trading and profit and loss account and a balance sheet as on March 31, 2017.
Adjustments 1. Further bad debts Rs 1,000. Discount on debtors Rs 500 and make a provision on debtors 5%. 2. Interest received on investment 5%. 3. Wages and interest outstanding Rs 100 and Rs 200 respectively. 4. Depreciation charged on motor car 5% p.a. 5. Closing Stock Rs 32,500. |
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| 385. |
Unrecorded Liability paid at the time of dissolution is debited to __________ and credited to ___________. |
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Answer» Unrecorded Liability paid at the time of dissolution is debited to __________ and credited to ___________. |
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| 386. |
A.Ltd. issued 50,00,000, 8% Debenture of Rs 100 at a discount of 6% on April 01, 2009 redeemable at premium of 4% by draw of lots as under:20,00,000 Debentures on March, 201110,00,000 Debentures on March, 201320,00,000 Debentures on March, 2014Compute the amount of discount to be written-off in each year till debentures are paid. Also prepare discount/loss on issue of debenture account. |
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Answer» A.Ltd. issued 50,00,000, 8% Debenture of Rs 100 at a discount of 6% on April 01, 2009 redeemable at premium of 4% by draw of lots as under: 20,00,000 Debentures on March, 2011 10,00,000 Debentures on March, 2013 20,00,000 Debentures on March, 2014 Compute the amount of discount to be written-off in each year till debentures are paid. Also prepare discount/loss on issue of debenture account. |
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| 387. |
Compute Revenue from Operations, Other Income and Total Revenue for a Financial company from the following particulars : Rs Interest on loans given 40,00,000 Fees received for arranging loans 5,00,000 Miscellaneous Income 15,000 Profit on sale of Building 2,00,000 Profit on sale of Investments 1,20,000 |
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Answer» Compute Revenue from Operations, Other Income and Total Revenue for a Financial company from the following particulars : Rs Interest on loans given 40,00,000 Fees received for arranging loans 5,00,000 Miscellaneous Income 15,000 Profit on sale of Investments 1,20,000 |
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| 388. |
X and Y are in partnership sharing profits in the ratio of 2 : 3 . With effect from 1st April, 2018, they agreed to share profits in the ratio f 1 : 2 . For this purpose, goodwill of the firm is to be valued at two years' purchase of the average profit of last three years , which were ₹ 1, 50,000; ₹ 1,60,000 and ₹ 2,00,000 respectively. The reserves appear in the books at ₹ 1,10,000. Partners decide to continue showing Reserves in the books . You are required to give effect to the change by passing a single journal entry. |
| Answer» X and Y are in partnership sharing profits in the ratio of 2 : 3 . With effect from 1st April, 2018, they agreed to share profits in the ratio f 1 : 2 . For this purpose, goodwill of the firm is to be valued at two years' purchase of the average profit of last three years , which were ₹ 1, 50,000; ₹ 1,60,000 and ₹ 2,00,000 respectively. The reserves appear in the books at ₹ 1,10,000. Partners decide to continue showing Reserves in the books . You are required to give effect to the change by passing a single journal entry. | |
| 389. |
Which of the following names is not associated with the Statement of Profit and Loss? |
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Answer» Which of the following names is not associated with the Statement of Profit and Loss? |
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| 390. |
From the following information, calculate Change in Inventory of Finished Goods: Opening Inventory and Closing Inventory of Finished Goods ₹2,50,000 and ₹2,00,000 respectively. |
| Answer» From the following information, calculate Change in Inventory of Finished Goods: Opening Inventory and Closing Inventory of Finished Goods ₹2,50,000 and ₹2,00,000 respectively. | |
| 391. |
Apply common size analysis to ABC Company's cash balance given the following information: cash = Rs 1,00,000; total revenues = Rs 2,50,000; total assets = Rs 4,25,000; total liabilities = Rs3,00,000. |
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Answer» Apply common size analysis to ABC Company's cash balance given the following information: cash = Rs 1,00,000; total revenues = Rs 2,50,000; total assets = Rs 4,25,000; total liabilities = Rs3,00,000. |
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| 392. |
(a) X, Y and Z are partners sharing profits and losses in the ratio of 5 : 3 : 2. They admit W as partner for 1/6th share. Following is the extract of the Balance Sheet on the date of admission: Liabilities ₹ Assets ₹ General Reserve Contingency Reserve Profit and Loss A/c 36,000 6,000 18,000 Advertisement Suspense A/c 24,000 Pass necessary Journal entries.(b) A and B were partners in a firm sharing profit in 4 : 3 ratio. On 1st April, 2019, they admitted C as a new partner. On the date of C's admission, the Balance Sheet of A and B showed a General Reserve of ₹ 84,000 and a debit balance of ₹ 8,400 in the 'Profit and Loss Account'. Pass necessary Journal entries for the treatment of these items on C's admission.(c) Give the Journal entry to distribute 'Workmen Compensation Reserve' of ₹ 72,000 at the time of admission of Z, when there is no claim against it. The firm has two partners X and Y.(d) Give the Journal entry to distribute 'Workmen Compensation Reserve' of ₹ 72,000 at the time of admission of Z, when there is claim of ₹ 48,000 against it. The firm has two partners X and Y .(e) Give the Journal entry to distribute 'Investment Fluctuation Reserve' of ₹ 24,000 at the time of admission of Z, when Investment (Market Value ₹ 1,10,000) appears at ₹ 1,20,000. The firm has two partners X and Y.(f) Give the Journal entry to distribute 'General Reserve' of ₹ 4,800 at the time of admission of Z, when 20% of General Reserve is to be transferred to Investment Fluctuation Reserve. The firm has two partners X and Y .(g) A, B and C were partners sharing profits and losses in the ratio of 6 : 3 : 1. They decide to take D into partnership with effect from 1st April, 2019. The new profit-sharing ratio between A, B, C and D will be 3 : 3 : 3 : 1. They also decide to record the effect of the following without affecting their book values, by passing a single adjustment entry: Book Values (₹) General Reserve 1,50,000 Contingency Reserve 60,000 Profit and Loss A/c (Cr.) 90,000 Advertisement Suspense A/c (Dr.) 1,20,000 Pass the necessary single adjustment entry, through the Partner's Current Account. |
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Answer» (a) X, Y and Z are partners sharing profits and losses in the ratio of 5 : 3 : 2. They admit W as partner for 1/6th share. Following is the extract of the Balance Sheet on the date of admission:
Pass necessary Journal entries. (b) A and B were partners in a firm sharing profit in 4 : 3 ratio. On 1st April, 2019, they admitted C as a new partner. On the date of C's admission, the Balance Sheet of A and B showed a General Reserve of ₹ 84,000 and a debit balance of ₹ 8,400 in the 'Profit and Loss Account'. Pass necessary Journal entries for the treatment of these items on C's admission. (c) Give the Journal entry to distribute 'Workmen Compensation Reserve' of ₹ 72,000 at the time of admission of Z, when there is no claim against it. The firm has two partners X and Y. (d) Give the Journal entry to distribute 'Workmen Compensation Reserve' of ₹ 72,000 at the time of admission of Z, when there is claim of ₹ 48,000 against it. The firm has two partners X and Y . (e) Give the Journal entry to distribute 'Investment Fluctuation Reserve' of ₹ 24,000 at the time of admission of Z, when Investment (Market Value ₹ 1,10,000) appears at ₹ 1,20,000. The firm has two partners X and Y. (f) Give the Journal entry to distribute 'General Reserve' of ₹ 4,800 at the time of admission of Z, when 20% of General Reserve is to be transferred to Investment Fluctuation Reserve. The firm has two partners X and Y . (g) A, B and C were partners sharing profits and losses in the ratio of 6 : 3 : 1. They decide to take D into partnership with effect from 1st April, 2019. The new profit-sharing ratio between A, B, C and D will be 3 : 3 : 3 : 1. They also decide to record the effect of the following without affecting their book values, by passing a single adjustment entry:
Pass the necessary single adjustment entry, through the Partner's Current Account. |
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| 393. |
Arun, Tarun and Neha are partners sharing profits in the ratio of 3 : 2 : 1 Neha dies on 31st May 2006. Sales for the year 2005-2006 amounted to Rs.4,00,000.and the profit on sales is Rs.60,000. Accounts are closed on 31 March every year. Sales from lst April 2006 to 31st May 2006 is Rs.1,00,000. Calculate the deceased partner’s share in the profit upto the date of death. |
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Answer» Arun, Tarun and Neha are partners sharing profits in the ratio of 3 : 2 : 1 Neha dies on 31st May 2006. Sales for the year 2005-2006 amounted to Rs.4,00,000.and the profit on sales is Rs.60,000. Accounts are closed on 31 March every year. Sales from lst April 2006 to 31st May 2006 is Rs.1,00,000. Calculate the deceased partner’s share in the profit upto the date of death. |
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| 394. |
It is a ratio which deals with the servicing of interest on loan. This ratio is___ |
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Answer» It is a ratio which deals with the servicing of interest on loan. This ratio is |
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| 395. |
The statements which shows the profitability and financial position of a firm for different periods of time in a comparative form are called _____________. |
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Answer» The statements which shows the profitability and financial position of a firm for different periods of time in a comparative form are called _____________. |
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| 396. |
B.Ltd. issued debentures at 94% for Rs 4,00,000 on April 01, 2011 repayable by five equal drawings of Rs 80,000 each. The company prepares its final accounts on March 31* every year.Indicate the amount of discount to be written-off every accounting year assuming that the company decides to write off the debentures discount during the life of debentures. (Amount to be written-off: 2011 Rs 6,000; 2012 Rs 6,800; 2013 Rs 5,200; 2014 Rs 3,600; 2015 Rs 2,000; 2016 Rs 400).*It should be December 31 |
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Answer» B.Ltd. issued debentures at 94% for Rs 4,00,000 on April 01, 2011 repayable by five equal drawings of Rs 80,000 each. The company prepares its final accounts on March 31* every year. Indicate the amount of discount to be written-off every accounting year assuming that the company decides to write off the debentures discount during the life of debentures. (Amount to be written-off: 2011 Rs 6,000; 2012 Rs 6,800; 2013 Rs 5,200; 2014 Rs 3,600; 2015 Rs 2,000; 2016 Rs 400). *It should be December 31 |
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| 397. |
Amit, Binita and Charu are three partners. On 1st April, 2017, their Capitals stood as: Amit ₹ 1,00,000, Binita ₹ 2,00,000 and Charu ₹ 3,00,000. It was decided that:(a) they would receive interest on Capital 5% p.a.,(b) Amit would get a salary of ₹ 10,000 per month,(c) Binita would receive commission 5% of net profit after deduction of commission, and(d) 10% of the net profit would be transferred to the General Reserve.Before the above items were taken into account, the profit for the year ended 31st March, 2018 was ₹ 5,00,000. Prepare Profit and Loss Appropriation Account and the Capital Accounts of the partners. |
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Answer» Amit, Binita and Charu are three partners. On 1st April, 2017, their Capitals stood as: Amit ₹ 1,00,000, Binita ₹ 2,00,000 and Charu ₹ 3,00,000. It was decided that: (a) they would receive interest on Capital 5% p.a., (b) Amit would get a salary of ₹ 10,000 per month, (c) Binita would receive commission 5% of net profit after deduction of commission, and (d) 10% of the net profit would be transferred to the General Reserve. Before the above items were taken into account, the profit for the year ended 31st March, 2018 was ₹ 5,00,000. Prepare Profit and Loss Appropriation Account and the Capital Accounts of the partners. |
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| 398. |
Round up the following upto three significant figures: (i) 34.216 (ii) 10.4107 (iii) 0.04597 (iv) 2808 |
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Answer» Round up the following
(i) 34.216 (ii) 10.4107 (iii) 0.04597 (iv) 2808 |
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| 399. |
Calculate Stock turnover Ratio From the data given below ItemsRs. Stock at the beginning of the year10,000Stock at the end of the year5,000Carriage2,500Sales50,000Purchase25,000 |
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Answer» Calculate Stock turnover Ratio From the data given below ItemsRs. Stock at the beginning of the year10,000Stock at the end of the year5,000Carriage2,500Sales50,000Purchase25,000 |
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| 400. |
Kuldeep, a general merchant, keeps his accounts on Single Entry System. He wants to know the results, of his business on 31st March, 2018 and for that following information is available: Particulars 1st April, 2017 (₹) 31st March, 2018 (₹) Cash in Hand ................................................................................ 1,50,000 1,75,000 Bank Balance ................................................................................ 7,50,000 8,00,000 Furniture ................................................................................ 1,00,000 1,00,000 Stock ................................................................................ 5,00,000 6,50,000 Creditors ................................................................................ 3,50,000 4,00,000 Debtors ................................................................................ 2,50,000 3,00,000 During the year, he had withdrawn ₹ 5,00,000 for his personal use and invested ₹ 2,50,000 as additional cpaital. Calculate his profits on 31st March, 2018 and prepare the Statement of Affairs as on that date. |
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Answer» Kuldeep, a general merchant, keeps his accounts on Single Entry System. He wants to know the results, of his business on 31st March, 2018 and for that following information is available:
During the year, he had withdrawn ₹ 5,00,000 for his personal use and invested ₹ 2,50,000 as additional cpaital. Calculate his profits on 31st March, 2018 and prepare the Statement of Affairs as on that date. |
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