Explore topic-wise InterviewSolutions in .

What is the entry for transferring the revaluation surplus ?

Amar and Samar were partners in a firm sharing profits and losses in
3:1 ratio. They admitted Kanwar for 1/4 share of profits. Kanwar
could not bring his share of goodwill premium in cash. The Goodwill
of the firm was valued at Rs. 80,000 on Kanwar’s admission.
Record necessary journal entry for goodwill on Kanwar’s
admission.

Amit, Sumit and Samiksha are in partnership sharing profits in the ratio of 3:2:1. Samiksha’ share in profit has been guaranteed by Amit and Sumit to be a minimum sum of Rs 8,000. Profits for the year ended March 31, 2017 was Rs 36,000. Divide profit among the partners.

Calculate Return on Investment from the following information :

Net Profit after Tax : Rs. 6,50,000; 12.5% Convertible Debentures : Rs. 8,00,000; Income Tax : 50%; Fixed Assets at cost : Rs. 24,60,000; Depreciation Reserve : Rs. 4,60,000; Current Assets : Rs. 15,00,000; Current Liabilities : Rs. 7,00,000.

From the following figures, calculate cash from operating activities:
$$\begin{array}{ccc}\text{Particulars}& \mathrm{31.03.2017}& \mathrm{31.03.2018}\\ \text{Balance of Profit and Loss}& 3,00,000& 2,50,000\\ \text{Provision for Depreciation}& 60,000& 80,000\\ \text{Outstanding Wages}& 18,000& 15,000\\ \text{Prepaid Insurance}& 6,000& 9,000\\ \text{Goodwill}& 40,000& 32,000\\ \text{Provision for doubtful Debts}& 10,000& 14,000\\ \text{Balance of Trade Receivables}& 1,40,000& 98,000\\ \text{Cash and Bank Balance}& 30,000& 25,000\end{array}$$

___ = Quick Assets : Current Liabilities

Surplus is _____ to capital fund

Who are the real owners of a company ?

Reproduce the format of Realisation Account.

An unrecorded asset realised at the time of realisation is credited to -

According to the Constitution, a member of a Public Service Commission would be guilty of misbehavior if he or she

Prepare a Comparative Statement of Profit & Loss from the following :

$\begin{array}{ccc}\text{Particulars}& \text{31st March},2016& \text{31st March,}2017\\ & \text{Rs.}& \text{Rs.}\\ \text{Revenue from Operations}& 10,00,000& 12,50,000\\ \text{Cost of Materials Consumed}& 5,00,000& 6,50,000\\ \text{Other Expenses}& 50,000& 60,000\end{array}$

Interest on investments Rs 30,000 each year.

Anish Limited issued 30,000 equity shares of Rs 100 each payable at Rs 30 on application, Rs 50 on allotment and Rs 20 on Ist and final call. All money was duly received.

Record these transactions in the journal of the company.

The net profit of a firm for the year ended 31st March 2017, was Rs 30,000, which has been duly distributed amongst its three partners A, B and C in their agreed proportions of 3:1:1 respectively. It was discovered on 10th April 2017 that the undermentioned transactions were not passed through the books of accounts of the firm for the year ended 31st March 2017, which stood duly closed on that date:

(a) Interest on capital at 10% p.a.

(b) Interest on drawings : A Rs 350; B Rs 250; C Rs 150.

(c) Salary of Rs 5,000 to A and Rs 7,500 to B.

(d) Commission due to A on a special transaction, Rs 3,000.

The capital accounts of the partners on 1st April, 2016 were : A Rs 25,000; B Rs 20,000; C Rs 15,000.

You are required to suggest a journal entry to be passed on 10th April, 2017 which will not affect the Profit and Loss Appropriation Account of the firm for the year ended 31st March, 2017 and at the same time will rectify the position of the partners.

List the items which may be debited or credited in capital accounts of the partners when

(i) Capitals are fixed

(ii) Capitals are fluctuating

The profits of a firm for the year ended 31st March for the last 2 years were as under :

2017 - Rs. 12,000

2018 - Rs.14,400

What would be the value of goodwill on the basis of 3 years purchase of the weighted average profits of the last two years, assuming weight of 1 and 2 are assigned to 2017 and 2018 respectively ?

___ allows you to compare the financial statements of large companies with the financial statements of smaller companies, because you are comparing percentages instead of rupees.

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, 2015. 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.

The story also focuses on human loneliness and the need to bond with others.

Additional Information:

1. During the year, machine costing ₹ 90,000 with accumulated depreciation of ₹ 60,000 was sold for ₹ 50,000.


2. Patents written off were ₹ 50,000 while a part of patents were sold at a profit of ₹ 40,000.

The net profit of X, Y and Z for the year ended March 31, 2016 was Rs 60,000 and the same was distributed among them in their agreed ratio of 3 : 1 : 1. It was subsequently discovered that the under mentioned transactions were not recorded in the books :

The capital accounts of partners were fixed as : X Rs 1,00,000, Y Rs 80,000 and Z Rs 60,000. Record the adjustment entry.

X Ltd. invited applications for 20,000 shares of Rs 10 each payable as follows: Rs 3 on Application; Rs 2 on Allotment, Rs 2.50 on First Call and Rs 2.50 on Second Call.

Public Applied for 30,000 shares and the allotments were made as under:

To Applications for 8,000 shares .................... full.

To Applications for 16,000 shares .................... 12,000 shares

To Applications for 6,000 shares .................... Nil.

All moneys were duly received.

(a) Pass Journal Entries.

(b) Which value has been affected by making full allotment to the applicants for 8,000 shares and rejecting the applicants for 6,000 shares? Suggest a better alternative.

Shilpa, Meena and Nanda decided to dissolve their partnership on March 31, 2006. Their profit sharing ratio was 3: 2: 1 and their balance sheet was as under:
Balance Sheet of Shilpa, Meena and Nanda
as on March 31, 2006
$$\begin{array}{cccc}\text{Capital and Liabilities}& \text{Amt.}& \text{Assets}& \text{Amt.}\\ \text{Capitals:}& & \text{Land}& 81,000\\ \text{Shilpa}& 80,000& \text{Stock}& 56,760\\ \text{Meena}& 40,000& \text{Debtors}& 18,600\\ \text{Bank loan}& 20,000& \text{Nanda's Capital}& 23,000\\ \text{Creditors}& 37,000& \text{Cash}& 10,840\\ \text{Provision for doubtful debts}& 1,200& & \\ \text{General Reserve}& 12,000& & \\ & \underset{–}{}& & \underset{–}{}\\ & 1,90,200& & 1,90,200\\ & \underset{–}{}& & \underset{–}{}\end{array}$$

The stock of value of Rs. 41,660 are taken over by Shilpa for Rs. 35,000 and she agreed to discharge bank loan. The remaining stock was sold at Rs. 14,000 and debtors amounting to Rs. 10,000 realised Rs. 8,000. Land is sold for Rs. 1,10,000. The remaining debtors realised 50% at their book value. Cost of realisation amounted to Rs. 1,200.There was typewriter not recorded in the books worth Rs. 6,000, which were taken over by one of the creditors at this value.
Prepare realisation account.

On the death of a partner, the partnership firm will.................

Lokesh and Azad are partners sharing profits in the ratio 3:2, with capitals of Rs 50,000 and Rs 30,000, respectively. Interest on capital is agreed to be paid 6% p.a. Azad is allowed a salary of Rs 2,500 p.a. During 2016, the profits prior to the calculation of interest on capital but after charging Azad’s salary amounted to Rs 12,500. A provision of 5% of profits is to be made in respect of manager’s commission. Prepare accounts showing the allocation of profits and partner’s capital accounts.

On 1st May, A drew and B accepted a bill at three months for 2,000. On 4th May, A discounted the bill 6 percent per annum and remitted half the proceeds to B. On 1st June, B drew and A accepted a bill at three months for 500. On 4th June, B discounted the bill 6$\%$ per annum and remitted half the proceeds to A. A and B agreed to share the discount equally. At maturity, A met his acceptance but B failed to meet his, and A had to pay for it. A then drew and B accepted a new bill at three months for the amount of the original bill plus 30 for interest. On 1st November, B became insolvent and paid to his creditors 50 paise in the rupee. Write up the entries in A's Journal.

Calculate the amount of opening trade receivables and closing trade receivables from the following figures:

Trade Receivables turnover ratio 4 times.

Cost of Revenue from operations Rs 6,40,000

Gross profit ratio 20%

Closing trade receivables were Rs 20,000 more than at the beginning.

From the following trail balance of M/s Arjun & Sons as 31st December,2016 prepare trading and profit and loss account and balance sheet.

$\begin{array}{ccc}\text{Name of Accounts}& \text{Debit Balance}& \text{Credit Balance}\\ \text{Drawings and Capital}& 18,000& 80,000\\ \text{Purchases and Sales}& 82,600& 1,55,000\\ \text{Stock (1st January, 2016)}& 42,000& \\ \text{Return Outwards}& & 1,600\\ \text{Carriage Inwards}& 1,200& \\ \text{Wages}& 4,000& \\ \text{Power}& 6,000& \\ \text{Machinery}& 50,000& \\ \text{Furniture}& 14,000& \\ \text{Rent}& 22,000& \\ \text{Salary}& 15,000& \\ \text{Insurance}& 3,600& \\ 8\%\text{Bank Loan}& & 25,000\\ \text{Debtors}& 20,600& \\ \text{Creditors}& & 18,900\\ \text{Cash in Hand}& 1,500& \\ & \overline{\underset{–}{\underset{–}{2,80,500}}}& \overline{\underset{–}{\underset{–}{2,80,500}}}\\ & & \end{array}$

Additional Information:

(i) Closing stock Rs. 64,000.

(ii) Wages outstanding Rs. 2,400

(iii) Bad debts Rs. 600 and provision for bad doubtful debts to be 5% on debtors.

(iv) Rent is paid for 11 months.

(v) Loan form the bank was taken on 1st July, 2016.

(vi) Provide depreciation on machinery 10% per annum.

(vii) Provide manager's commission at 10% on net profit after charging such commission.

Whenever securities premium is not received and the shares are forfeited, what will be the treatment in Calls in Arrear A/c?