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2251.

Distinguish between 'Over-Subscription' and 'Under-Subscription'.

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SOLUTION :
Discussion
2252.

Distinguish between of dissolution of partnership and dissolution of partnership firm .

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Discussion
2253.

Distinguish between Income and Expenditure Account and Receipts and Payments Account on the basis of its nature.

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SOLUTION :Income and EXPENDITURE Account is a Nominal Account WHEREAS Receipts and PAYMENTS Account is a Real Account.
Discussion
2254.

Distinguish between Income and Expenditure Account and Receipts and Payments Account on the basis of nature of items recorded therein.

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Solution :Income and EXPENDITURE Account RECORDS ITEM of revenue nature WHEREAS Receipts and PAYMENTS Account records items of both capital and revenue nature.
Discussion
2255.

Distinguish between Income and Expenditure Account and Receipts and Payments Accounton the basis of nature of items recorded therein.

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SOLUTION :N/a
Discussion
2256.

Distinguish between 'Fixed Capital Account' and 'Fluctuating Capital Account' on the basis of credit balance.

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SOLUTION :FIXED Capital Account always shows a CREDIT (POSITIVE) balsnce, while Fluctuating Capital Account may show debit (NEGATIVE) or credit (positive) balance.
Discussion
2257.

Distinguish between firm's debts and private debts.

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Discussion
2258.

Distinguish between fixed charge andfloating charge.

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SOLUTION :Fixed charge is a mortgage on SPECIFIC assets. FLOATING charge, on THEOTHER hand, is a charge on present and future assets of thecompany.
Discussion
2259.

Distinguish between Dissolution of Partnership and Dissolution of Partnership Firm on the basis of settlement of assets and liabilities .

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Discussion
2260.

Distinguish between 'Dissolution of Partnership' and 'Dissolution of Partnership Firm' on the basis of 'Settlement of Assets and Liabilities'

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SOLUTION :
Discussion
2261.

Distinguish between Dissolution of Partnership and Dissolution of Partnership Firm on the basis of Economic Relaionship.

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Discussion
2262.

Distinguish between Dissolution of Partnership and Dissolution of Partnership Firm on the basis of Continuity of Business.

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Discussion
2263.

Distinguish between Dissolution of Partnership and Dissolution of Partnership Firm on the basis of Court's Intervention.

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Discussion
2264.

Distinguish between Dissolution of Partnership and Dissolution of Partnership Firm on the basis of Court's intervention'.

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SOLUTION :
Discussion
2265.

Distinguish between 'Dissolution of Partnership' and 'Dissolution of Partnership Firm' on the basis of closure of books.

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SOLUTION :
Discussion
2266.

Distinguish between Dissolution of Partnership and Dissolution of Partnership Firm on the basis of closure of books .

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Discussion
2267.

Distinguish between average profits and super profits.

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Solution :AVERAGE PROFIT is the average of the profit of PAST few years wheras super profit is the EXCESS of average profits over normal profits.
Discussion
2268.

Distinguish analysis and interpretation of financial statements.

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Solution :Analysis is the process of IDENTIFYING the FINANCIAL strengths and weaknesses of the FIRM by properly ESTABLISHING relationships between the items of finanical statements.
Interpretation involves explaining the meaning and SIGNIFICANCE of the relationships so establishedby the analysis.
Analysis and interpretation are closely related. Interpretation is not possible without analysis and without analysis , interpretation has no value.
Discussion
2269.

Distinguirsh between 'Dissolution of Partnership' and 'Dissolution of Partnership Firm' on the basis of 'Economic Relationship'.

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SOLUTION :
Discussion
2270.

Dissolution of a firm necessarily involves dissolution of partnership.

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ANSWER :A
Discussion
2271.

Dissolution of a partnership is different from dissolution of a firm,

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ANSWER :A
Discussion
2272.

Discuss the accounting treatment of goodwill in case of change in the profit-sharing ratio of the existing partner.

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Solution :The Gaining partner compensates the Sacrificing Partner by paying Goodwill in the ratio of GAIN. For example, X and Y are partneers sharing profits in the ratio of `3:1.` If it is decided that in future both will be equal partners, it menas X is losing 1/4th share of profits to Y. THEREFORE, Y will compensate X an AMOUNT equal to 1/4th of the total VALUE of Goodwill. This adjustment is usually done by passing the following JOURNAL entry:
`"Y's Capital"A//c""...Dr.""["Amount of Goodwiil for"1//4th share]`
To X's Capital A/c
Discussion
2273.

Discount or Loss on Issue of Debentures is written off from

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SECURITIES PREMIUM Reserve
Securities Premium Reserve (if it EXISTS) and thereafter from STATEMENT of Profit and LOSS
Statement of Profit and Loss
None of the above

Solution :Securities Premium Reserve (if it exists) and thereafter from Statement of Profit and Loss
Discussion
2274.

Discount on Issue of Debentures is restricted to

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0.1
0.2
0.25
NONE of these

Solution :None of these
Discussion
2275.

Discount/Loss on Issue of Debenture debited to Statement of Profit and Loss (Finance Cost) is

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added under Operating Activities and Debentures are shown as Financial Activities at NET amount RECEIVED
added under Operating Activities and Debentures are shown as Investing ACTIVITY at net amount received
deducted under Operating Activities and shown as inflow under FINANCING Activities
None of the above

Solution :added under Operating Activities and Debentures are shown as Financial Activities at net amount received
Discussion
2276.

Discount on issue of Debentures is in the nature of

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A - Revenue loss
B - CAPITAL loss
C - DEFERRED revenue Expenditure
D - None of above

Answer :B
Discussion
2277.

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, 2017. Prepare final accounts forthe year ended December 31,2017, with following adjustment:(a) Stock on December 31,2017, was Rs. 42,500. (b) A Provision is to be made for bad debts at5%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 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.

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Answer : GROSS PROFIT RS. 81,500, Net Profit Rs.32,200, Dinker ‘s Capital Rs. 2,47,627 RAVINDER’s Capital Rs.1,71,573, TOTAL of Balance Sheet Rs. 5,29,350
Discussion
2278.

Dinesh Ltd.invited applications for issuing 10,000 Equity Shares of Rs. 10 each. The amount was payable as follows: {:("On Application",,-,,"Rs.1,"),("On Allotment",,-,,"Rs.2,"),("On First Call",,-,,"Rs.3,"),("On Second and Final Call",,-,,"Balance."):} The issue was fully subscribed.Ram to whom 100 shares were allotted, failed to pay the allotment money and his shares were forfeited immediately after allotment. Shyam to whom 150 shares wereallotted, failed to pay thefirst call. His shares were also forfeited after the first call. Afterwards thesecond and final call was made. Mohan to whom 50 shares were allotted failed to pay thesecond and final call. His shares were also forfeited. All the forfeited shares were reissued at Rs. 9 per share fully paid-up. Pass necessary Journal entries in the books of Dinesh Ltd.

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SOLUTION :
Discussion
2279.

Dinesh must have given the agument that liablility towards salaries related to the old firm when the profit sharing ratio was 3 : 1. Hence, it should be debited to Revaluation Account so that the loss on account of this liability could be borne in 3 : 1. If it was recorded at the time of actual payment, the partners will bear the loss in 2 : 1.

Answer»

Solution :DINESH must have given the argument that liability towards salaries related tothe old FIRM when the profit sharing ratio was 3 : 1. HENCE, it should be DEBITED to Revaluation Account so that the loss on account of this liability could be borne in 3 : 1. If it was recorded at the time of actual payment, the partners will BEAR the loss in 2 : 1.
Discussion
2280.

Digvijay, Brijesh and Parakaram were partners in a firm sharing profits in the ratio of 2 : 2 : 1. Their Balance Sheet as on March 31, 2017 was as follows:Brijesh retired on March 31, 2017 on the following terms:(i) Goodwill of the firm was valued at Rs. 70,000 and was not to appear in the books. (ii) Bad debts amounting to Rs. 2,000 were to be written off.(iii) Patents were considered as valueless. Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of Digvijay and Parakaram after Brijesh’s retirement.

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ANSWER :LOSS on REVALUATION RS. 11,000, Balance of Capital Accounts: Digvijay Rs. 66,333 and Parakaram Rs. 67,667, Balance SHEET Total Rs. 2,74,000.
Discussion
2281.

Dinkar Ltd. has an authorised capital of Rs. 50,00,000 divided into equity shares of Rs. 100 each. The company invited applications for 40,000 shares, applications for 36,000 shares were received. All calls were made and duly received except for 500 shares on which the final call of Rs. 20 was not received. The company forfeited 200 shares on which final call was not received. Show how share capital will appear in the balance sheet of the company. Also prepare ‘Notes to Accounts’ for the same

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Solution :BOOKS of DINKAR Limited
BALANCE SHEET as at........ (DATE)
Discussion
2282.

Differentiate between the Receipts and Payments Accounts and the Cash Account.

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SOLUTION :N/a
Discussion
2283.

Differentiate between 'Issued Share Capital' and 'Subscribed Share Capital'

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Solution :`{:("""Issued SHARE Capital","""SUBSCRIBED Share Capital"),("It is that part of the authorised capital of a company which is ","It is that part of the issued capital of the company which "),("issued to the PUBLIC for subscription.","is subscribed by the public."):}`
Discussion
2284.

Differentiate betweenGeneric software and Specific Software on basis of cost of installation and maintenance

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SOLUTION :Cost of installation and maintenance is generally low with GENERIC Software and is RELATIVELY high with SPECIFIC software
Discussion
2285.

Differentiate between 'Issued Share Capital' and 'Subscribed Share Capital'.

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SOLUTION :
Discussion
2286.

Differentiate between 'Profit and Loss Appropriation Account' and 'Profit and Loss Suspense Account'.

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Solution :Profit and Loss APPROPRIATION Account is PREPARED to show the distribution of NET Profit among the partners.
Profit and Loss Suspense Account is prepared to adjust the Deceased PARTNER's share of Profit till the date of death of the partner when profit-sharing ratio at continuing partners does not CHANGE.
Discussion
2287.

Differentiate between' Equity Share ' and ' Debenture ' on the basis of risk involved .

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SOLUTION :
Discussion
2288.

Differentiate between 'Dissolution of Partnership' and 'Dissolution of a Partnership Firm' on the basis of 'Continuty of Business'.

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SOLUTION :
Discussion
2289.

Differentiate between 'Called-up Share Capital' and 'Paid-up Share Capital'.

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Solution :`{:("""CALLED-up SHARE Capital","""Paid-up Share Capital"),("Called-up Share Capital is that part of the SUBSCRIBED capital","Paid-up Share Capital is that part of called-up share"),("which has been called by the COMPANY.","capital which has been paid-up by the shareholders."):}`
Discussion
2290.

Determine the maximum permissible discount which a company can allow at the time of reissue of forfeited shares in the following cases : (i) A share of Rs. 100 originally issued at par on which appllication and allotment money of Rs. 60 has been received. (ii) A share of Rs. 100 originally issued at a permium of Rs. 20 on which application and allotment money (including premium) of Rs. 60 has been received. (iii) A share of Rs. 100 originally issued at a premium of Rs 20 on which application and allotment money (excluding premium) of Rs. 60 has been received.

Answer»

Solution :MAXIMUM PERMISSIBLE DISCOUNT in Case (i) Rs. 60, Case (ii) Rs. 40 and Case (iii) Rs. 60.
Discussion
2291.

Determine the maximum permissible discount which a company can allow at the time of reissue of forfeitedshares in the following cases: (i) A share of Rs. 10 originallyissued at par on which application and allotment money of Rs. 5 has been received. (ii) A share of Rs. 10 originally issued at apremium of Rs. 1 on which application and allotment money (including premium) of Rs. 5 has been received. (iii) A share of Rs. 10 originallyissued at a premium of Rs. 1 on which application and allotment money (excluding premium)of Rs. 5 has been received.

Answer»

Solution :(i) Money received in respect of capital on shares forfeited is Rs. 5. Therefore, maximum PERMISSIBLE discount to be allowed is also Rs. 5.
(II) Money received in respect of Capital is Rs. 4 (that is, TOTALMONEY received less premium money received ), therefore, maximum permissible discount which can be allowed at the time of reissue is Rs. 4.
(iii) In this case, money received on shares forfeited in respect of capital isRs. 5, and , therefore, this is the amount of maximum permissible discount.
Discussion
2292.

Dell Computers Ltd. Issued 10,000,8% Debentures of Rs.100 each ata premium of Rs.10 on April, 2018. Interest onDebentures for the year ended 31st March , 2019 will be

Answer»

Rs.80,000.
Rs.88,000.
Rs.8,000.
None of these.

Answer :a
Discussion
2293.

Depentures represent the :

Answer»

Long - TERM BORROWINGS of a Company
The Investment of Equity- Shareholders
Directors' SHARES in a company
Short- term Borrowings of a Company

Answer :A
Discussion
2294.

Dell Computers Ltd. Issued 10,000, 8% Debentures of Rs 100 each at a premium of Rs 10 on 1st April, 2018. Interest on Debentures for the year ended 31st March, 2019 will be

Answer»

RS 80,000
Rs 88,000
Rs 8,000
None of these

Answer :A
Discussion
2295.

Define Trade Payables as per Schedule II of the Companies Act, 2013.

Answer»

Solution :TRADE Payables means the amount payable for PURCHASE of goods and sevices in the ORDINARY cou₹e of BUSINESS.
Discussion
2296.

Define the Cash Equivalents as per Accounting Standard-3.Or What is meant by Cash Equivalents?Or What are Cash Equivalents?Or What is meant by 'Cash Equivalents' while preparing Cash Flow Statement?Or Give the meaning of 'Cash Equivalents' for the purpose of preparing Cash Flow Statement.

Answer»

Solution :Cash Equivalentsare short-term, highly LIQUID investments that are readily convertible into known AMOUNT of cash and which are subject to an INSIGNIFICANT of change in value.
Discussion
2297.

Define Secured Debentures.

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SOLUTION :Secured Debentures are those debentures which are secured by EITHER a FIXED CHARGE or a FLOATING charge.
Discussion
2298.

Define Statement of Profit and Loss/Income Statement.

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SOLUTION :STATEMENT of Profit and Loss or Income Statement is a statement which shows financial performance of an enterprise for an ACCOUNTING period, generally a year. It is prepared to KNOW the net profit EARNED or net loss incurred by the enterprise during the year.
Discussion
2299.

Define Non-current Liablities.

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SOLUTION :Non-CURRENT LIABILITIES which are not current liabilities.
Discussion
2300.

Define Gaining Ratio.

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Solution :The RATIO in which one or more PARTNER gain some portion of other PARTNERS share of profit is called gaining ratio. It is CALCULATED by deducting old ratio from the new ratio.
Discussion