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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.
| 2851. |
A limited company forfeited 200 shares of Rs. 100 each (originally issued at 20% premium which was payable along with application money) on which allotment money of Rs. 40 and first call money of Rs. 30 were not received, the final call money of Rs. 20 is not yet called. These shares were originally allotted on pro-rata basis in the ratio of 5 : 4. These shares were subsequently reissuedat a discount of Rs. 10 per share, credited as Rs. 80 paid up. Pass necessary Journal entries for forfeiture and reissue of shares. |
Answer» SOLUTION :
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| 2852. |
A, B and C partners in 3: 4:2 B wants to retire from the firm. The profit on revaluation on that date was Rs. 36,000. New ratio of A and C is 5:3. Profit on revaluation will be distributed as: |
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Answer» A RS. 16,000, B Rs. 12,000, C Rs. 8,000 |
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| 2853. |
A, B and C Sharing profits lossesin theratioof 4 : 3:2, decides toshare thefuture profitsandlosses in the ratio of 2:3:4 with effects from 1st April, 2019 .An extract of theirBalance sheet asat 31st March, 2019 is. Show the accounting treatmentunder the following alternativecases:Case 1.If no informtionasto claim is given. Case 2. Ifthere is no claim. Case 3. Ifa claimon accountof workmencompensationis estimated at ₹ 45,000 . Case.4 Ifa claimon accountof workmencompensationis estimated at ₹ 99,000. Case 5. Ifa claimon accountof workmencompensationis estimated at ₹ 90,000. Case.6 Ifa claimon accountof workmencompensationis estimated at ₹ 36,000. |
Answer» SOLUTION : 
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| 2854. |
A Ltd., forfeited 400 shares of Mr. X who had applied for 600 shares on account of non-payment of allotment, first call and final call. Shares were issued at Rs. 2 premium payable as follows : On Application Rs. 3, on Allotment Rs. 3 + 2, on Firstcall Rs. 2 and Final Call Rs. 2. Out of these, 300 shares were re-issued to Mr. Y at the rate of Rs. 12 per share as fully paid shares. Give journal entries in the books of company to record above transactions. |
| Answer» SOLUTION :CAPITAL RESERVE RS. 1,350. | |
| 2855. |
A, B and C are partners, Sharing profits and lossesin 3 : 2 : 1, B died , the firm decided to value goodwill on the basis of 3 year's purchase of average of 5 years' profits. The profits of the firm for the last five years before charging intereston capital are Rs. 10,000 , Rs, 9,000, Rs. 11,000 ,Rs. 7,000 and Rs. 8,000 . the capital of the firm stood at Rs. 50,000 and interest rate is 8% What will be the share of goodwill of B? |
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Answer» RS. 10,000 |
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| 2856. |
A Company's Current Ratio is 2.5:1 and its Working Capital is Rs. 60,000. If its Inventory is Rs. 52,000, what will be the liquid Ratio? |
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Answer» `2.3:1` |
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| 2857. |
A company's liquid assets are Rs. 1,00,000 and its current liabilities are Rs. 8,00,000. Subsequently, it purchased goods for Rs. 1,00,000 on credit. Quick ratio will be ………. |
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Answer» `1.11:1` |
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| 2858. |
20,000 shares of Rs. 10 each were issued for public subscription at a premium of Rs. 10%. Full amount was payable on application. Applications were received for 30,000 shares and theBoard decided to allottheshares on a pro rata basis. Pass Journal entries. |
Answer» SOLUTION :
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| 2859. |
A company has to transfer Rs 50,000 to Debentures Redemption Reserve. Explain how it will be shown in the financial statements. |
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| 2860. |
A, B and C are partners sharing profits in the ratio of 5:2:1. If the ratio on the retirement of A is 3: 2, what will be the gaining ratio? |
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Answer» `11:14` |
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| 2861. |
3 Aces Ltd. Decides to redeem 2,000 , 9% Debentures of Rs. 100 each on 31 st December , 2018. the company should invest in specified securities on before |
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Answer» 30TH APRIL , 2017. |
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| 2862. |
A' Limited purchased the assets from 'B' Limited for .Rs 8,10,000. 'A' Limited issued 10% debentures of .Rs 100 each at 10% discount against the payment. The number of debentures received by 'B' Limited will be : |
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Answer» `8,100` |
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| 2863. |
A, B and C are partners in the firm , sharing profits in the ratio of 2 : 2 : 1 . Their Capital Accounts atand as Rs. 50,000 , Rs. 50,000 andRs. 25,000 , respectively . B retired from the from the firm and balance in thereserve on that date was Rs. 15,000 . ifgoodwill of the firm is Rs. 30,000 and profit on revaluation is Rs. 7,050 , What amount will be transferred to B's Loan Account? |
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Answer» RS. 50,820 |
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| 2864. |
A and B arepartners in thea businesandtheircapitals at theendof the yearwereRs, 7,00.000 andRs. 6,00,000 respectivelyCalculate theiropenincapitalsconsideringthefollowinginformation: (a)Drawings of Aand Bfortheyear wereRs. 75,000and Rs. 50,000 respectively (b)B introducedcapitalof Rs. 1,00,00 duringtheyear . ( c)intereston capital creditedto thecapialaccountsof A and BwereRs. 15 ,000 andRs.10,000 respectively . (d)interestondrawig debitedto thecapital Accountsof Aand BwereRs.7,500andRs. 5,000respectively . ( e)shareof profitcreadited to capitalAccounts was Rs. 1,00,000each . |
Answer» SOLUTION :
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| 2865. |
A andB are partnerssharing profitand lossin theratio3:2havingcapitalAccountbalanceofRs. 50,000and Rs. 40,000on 1stApril,2018A introducedRs. 10,000as hisadditionalcapitalcapitalwhereasintereston capitalfor thefinancial yearended31stMarch,. 2019 |
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| 2866. |
A company had a Liquid Ratio of 1.5 and Current Ratio of 2 and Inventory Turnover Ratio 6 Times. It had total Current Assets of Rs. 8,00,000 in the year 2003. Find out Revenue from Operation (Net Sales) if goods are sold at 25% profit on cost. |
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Answer» Solution :Current Liabilities = Rs. 8,00,000/2 =Rs. 4,00,000 Quick Assets = Rs. 4,00,000 `XX` 1.5 = Rs. 6,00,000 Inventory = Current Assets - Quick Assets = Rs. 2,00,000* *It is PRESUMED as Average Inventory because there is no INFORMATION of Opening and Closing Inventories. Inventory TURNOVER Ratio = `(overset("Cost of Revenue from Operation, i.e.,")("Cost of Good Sold"))/("Average Inventory" (Rs. 2,00,000))`= 6 (Given) Cost of Revenue from Operation, i.e., Cost of GOODS Sold = Rs. 12,00,000 Profit = 25% of Rs. 12,00,000 = Rs. 3,00,000 Revenue from Operation, i.e., Net Sales = Cost of Revenue from Operation, i.e., Cost of Goods Sold + Profit = Rs. 12,00,000 + 3,00,000 = Rs. 15,00,000. |
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| 2867. |
A firm earns Rs 1,10,000. The normal rate of return is 10%. Assets of the firm were Rs 11,00,000 and liabilities Rs 1,00,000. Value of goodwill by capitalisation of average profit will be |
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Answer» RS 2,00,000 |
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| 2868. |
A and B arepartners sharingprofits in theratio1st of 3:2C wasadmittedfor 1/6shareprofit witha minimum gurarantedamount of Rs.10,000 Atthecloseof thefirstfinancialyearthe firmearneda profitofRs. 54,000 ,Findoutthe shareof profitwhichA ,B and Cwill get. |
| Answer» SOLUTION :A'sshare-RS. 26,400 ,B's SHARE -Rs. 17,600 ,C's share -RS. 10,000 | |
| 2869. |
A company issued for public subscription 40,000 equity shares of Rs. 10 each at a premium of Rs. 2 per share payable as under : {:("On Application","Rs. 3 per share"),("On Allotment","Rs. 4 per share (including premium)"),("On First Call","Rs. 2 per share"),("On Second Call","Rs. 3 share"):} Applications were received for 70,000 shares. Allotment was made pro-rata to the applicants for 50,000 shares, the remaining applications being refused. Money overpaid on application was applied towards sum due on allotment. A, to whom 1,600 shares were allotted failed to pay the allotment and calls money. B,to whom 2,000 shares were allotted failed to pay the two calls. The shares of A and B were subsequently forfeited after the second call was made. 3,000 of the forfeited shares were re-issued at Rs. 8 per share fully paid. The re-issued shares included all of A's shares. Pass journal entries in the books of the company to record the above transactions. |
| Answer» SOLUTION :Amount RECEIVED on ALLOTMENT Rs. 1,24,800, CAPITAL Reserve Rs. 7,000. | |
| 2870. |
A Ltd. forfeited a share of Rs. 100 issued at a premium of 20% for non-payment of first call of Rs. 30 per share and final call of Rs. 10 per share. State the minimum price at which this share can be reissued. |
| Answer» SOLUTION :MINIMUM PRICE at which SHARE can be reissued = Rs. 100 - Rs. 60 = Rs. 40. | |
| 2871. |
A, B and C are three partners, B retires from the firm, on the date of his retirement stock, sundary debtors and provisions of doubtful debts stand in the Books of Account at Rs 50,000 Rs 45,000 and Rs 4,500 respectively. The partners decided to reduce the value of stock to 90% provision for doubtful debts to be brought to 15% of sundry debtors. The entry made for provision for doubtful debts will be : |
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Answer» Dr. REVALUATION A/c - Rs 2,250, CR. Provision for Doubtful Debts A/c - Rs 2,250 |
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| 2872. |
A, B and C are equal partners. C retires. He surrenders 3//5th of his share in favour of A and 2//5th in favour of B. New ratio will be: |
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Answer» `3:2` |
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| 2873. |
A, B and C are partners sharing profits in the ratio of 1//4:3//10: 9//20. The New ratio on the retirement of C will be: |
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Answer» `6:5` |
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| 2874. |
A, B and C are partners sharing profits and losses in the ratio of 5:3:2. Their Balance Sheet as at 31st March, 2019 stood as follows : They decided to share profits equally w.e.f. 1st April, 2019. They also agreed that : (i) Value of Land and Building be decreased by5 %. (ii) Value of Machinery be increased by 5%. (iii) A Provision for Doubtful Debts be created @ 5% on Sundry Debtors. (iv) A motor Cycle value at ₹ 20,000 was unrecoded and is now to be recorded in the books. (v) Out of Sundry Creditors, ₹ 10,000 is not payable. (vi) Goodwill is to be valued at 2 years' purchase of last 3 years profits. Profits being for 2018-19 - ₹ 50,000 (Loss),n 2017-18 - ₹ 2,50,000 and 2016-17 - ₹ 3,000. Pass Journal entries and prepare Revaluation Account. |
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| 2875. |
A company has issued 1,00,000 Equity Shares of Rs 10 each. It has called the total nominal value of the share. It has received the cells made except the final call of Rs 3 on 1,000 shares. Subscribed capital will be shown as follows: |
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Answer» Subscribed and not fully paid-up |
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| 2876. |
A Company's Liquid Assets are Rs. 2,00,000, Inventoryis Rs. 1,00,000, Prepaid Expenses are Rs. 20,000 and Working Capital is Rs. 2,40,000. Its Current Ratio will be |
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Answer» `1.33:1` |
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| 2877. |
A, B and C are partners sharing profit or loss in the ratio of 4:3:2. C retires and after C's retirement A and B agreed to share profit or loss in the ratio of 4:3 in future. Their gaining ratio will be : |
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Answer» `3:2` |
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| 2878. |
(a) Compute 'Working Capital Turnover Ratio' from the following information: Cash Sales Rs. 1,30,000, Credit Sales Rs. 3,80,000, Sales Returns Rs. 10,000, Liquid AssetsRs. 1,40,000, Current Liabilities Rs. 1,05,000 and Inventory Rs. 90,000.(b) Calculate 'Debt to Equity Ratio' from the following information: Total Assets Rs. 3,50,000, Total Debt Rs. 2,50,000 and Current Liabilities Rs. 80,000. |
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Answer» Solution :(a) WORKING Capital Turnover Ratio = `("Revenue from OPERATIONS (Net Sales)")/("Working Capital")` `=("RS. 5,00,000")/("Rs. 1,25,000")=4` Times. Working Notes: 1. Revenue from Operations (Net Sales) = Cash Sales + Credit Sales - Sales Returns = Rs. 1,30,000 + Rs. 3,80,000 - Rs. 10,000 = Rs. 5,00,000. 2.Working Capital = Current Assets - Current Liabilities = Liquid Assets + INVENTORY - Current Liabilities = Rs. 1,40,000 + Rs. 90,000 - Rs. 1,05,000 = Rs. 1,25,000. (b) Debt to Equity Ratio = `("Long-term Debt")/("Equity (Shareholders' Funds)")` `= ("Rs. 1,70,000")/("Rs. 1,00,000")=1.7` Times. working Notes: 1. Long-term Debt = Total Debt - Current Liabilities Rs. 2,50,000-Rs. 80,000 = Rs. 1,70,000. 2.Shareholders' Funds or Equity = Total Assets - Total DEBTS = Rs. 3,50,000 - Rs. 2,50,000 = Rs. 1,00,000. |
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| 2879. |
A and B are partners in a firmsharingprofitsin theratio of 4: 1. Theydecided to share futureprofitsin the ratio of 3:2 w.e.f 1st April, 2019. On that day, Profit and Loss Accountshowed a debitbalance of₹ 1,00,000.Pass Journalentry to given effectto theabove. |
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| 2880. |
(a) From the following, calculate 'Trade Receivables Turnover Ratio': Total Revenue from Operations for the year - Rs. 8,40,000 Cash Revenue from Operations - 40% of Credit Revenue from Operations Closing Trade Receivables - Rs. 2,00,000 Excess of Closing Trade Receivables over Opening Trade Receivables - Rs. 80,000.From the following information, calculate 'Interest Coverage Ratio': Profit after Interest and Tax - Rs. 4,97,000 Rate of Income Tax - 30%12% Debentures - Rs. 6,00,000. |
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Answer» Solution :(a) Trade Receivables Turnover Ratio = `("Credit Revenue from Operations")/("Average Trade Receivables")` = `(Rs. 6,00,000)/(Rs. 1,60,000)` = 3.75 Times. Working Notes: 1. Calculation of Credit Revenue from Operations: LET Credit Revenue from Operations = 40% of x = 4x/10 x + 4x/10 = Rs. 8,40,000 10x + 4x = Rs. 84,00,000 14x = Rs. 84,00,000 x = Rs. 6,00,000 (Credit Revenue from Operation) 2.Average Trade Receivables = `("Opening Trade Receivables + CLOSING Trade Receivables")/(2)` `(Rs. 1,20,000 + Rs. 2,00,000)/(2)` = Rs. 1,60,000. Interest COVERAGE Ratio = `("Net Profit before Interest and TAX")/("Interest on Long-term Debt")` = `(Rs. 7,82,000)/(Rs. 72,000)` = 10.86 Times. Working Notes: 1.Interest on Debentures = 12% of Rs. 6,00,000 = Rs. 72,000. 2. Calculation of Net Profit before Interest and Tax: Profit after interest and TaxRs. 4,97,000 Rate of Tax30% Step 1:Let profit after interest and before Tax be x. It means, Tax = 30% of x x - 30% of x = Rs. 4,97,000 70% of x = Rs. 4,97,000 x = Rs. 4,97,000 `xx` 100/70 = Rs. 7,10,000. Step 2:Calculate Profit before Interest and Tax: Profit before Interest and Tax = Profit after Interest and before Tax + Interest = Rs. 7,10,000 + Rs. 72,000 = Rs. 7,82,000. |
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| 2881. |
A ,B and Care partneshavingcapitalsofRs. 10,00,000,Rs, 8,00,000 Rs. And6,00,000ina firmand sharingprofitand lossesequally,Cguaanteedaminimumprofitof Rs. 1,00,000 as shareof profiteveryyear. Thefirmincurred a lossof Rs. 3,00,000 for theyearended31 stMarch2019you are required to showthe necessaryacoountsfordivisionfordivisionof loss andgivingeffecttminimumguranteedprofitto C. |
Answer» SOLUTION : 
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| 2882. |
A Company's Current Ratio is 2.8:1, Current Liabilities are Rs. 2,00,000, Inventory is Rs. 1,50,000 and Prepaid Expenses are Rs. 10,000. Its Liquid Ratio will be: |
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Answer» `3.6:1` |
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| 2883. |
A, B and C arepartners sharing profit andlosses in theratio of5 : 4 : 1. It was decided that with effect from 1 st April, 2016 the profit sharing ratio will be9 : 6 : 5 . Goodwillis to be valued at 2 year's purchase of average of 3 year's profits. The profits for 2013-14, 2014-15 and2015-16 were Rs. 48,000, Rs, 42,000 andRs. 42,000 and Rs.60,000 respectively. Pass the necessary jornal entry for thetreatment of goodwill. |
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Answer» Solution :(a) When goodwill is ADJUSTED Partner's Capital Accounts : Average Profits = Rs.` (48,000 + 42,000 + 60,000)/3 = Rs. 50,000`. Value of Goodwill at 2 year's purchase = `Rs. 50,000 xx 2 = Rs. 1,00,000`. OLD Ratio of A, B and C= ` 5 : 4 : 1` New Ratio of A, B and C = ` 9 : 6 : 5` Sacrifice or Gain : `A = 5/10 - 9/20 = (10-9)/20 = 1/20` (Sacrifice) ` B = 4/10 - 6/20 = (8-6)/ 20 ` (Sacrifice) ` C = 1/10 - 5/20 = (2-5)/20 = 3/20` (Gain) Since A has sacrificed, he will be CREDITED by ` 1/20 ` of Rs. 1,00,000= Rs. 5,000 Since B has sacrificed, he will be credited by ` 2/20` of Rs. 1,00,000 = Rs. 10,000 Since C has gained, he will be debited by ` 3/20` of Rs. 1,00,000 = Rs. 15,000  ALTERNATE SOLUTION: ` (b) When Goodwill is raised and written off : 
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| 2884. |
A Ltd. Purchased machinery from Kiran Machines Ltd. And paid them by issuing a cheque forc 60,000 and balance by issue of 4,000,10% Debentues of₹ 100 each at 10% premium. On the basis of this information fill the missing values in the following Journal entries: |
Answer» SOLUTION :
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| 2885. |
1,000, 10% Debentures of Rs 100 each out of 10,000, 10% Debentures are redeemable within the 12 months of the date of Balance Sheet. They will be shown in the Current Liabilities as: |
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Answer» Short-term BORROWINGS, |
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| 2886. |
A company purchased a machinery and settled the consideration by issuing fully paid 10 % Preference shares. How would it be shown in Cash Flow Statement? |
| Answer» SOLUTION :It it will not be SHOWN in Cash FLOW Statement because it does not involve cash. | |
| 2887. |
A company issued for public subscription 60,000 equity shares of Rs. 10 share at a permium of Rs. 4 per share, payable as under : Rs. 4 on Application, Rs. 5 on Allotment (including premium), Rs. 2.50 on First Call and Rs. 2.50 on Final Call. Applications were received for 75,000 equity shares. The shares were allotted pro-rata to the applicants for 70,000 shares, the remaining applications being rejected. Money over-paid on applications was utilised towards sums due on allotment. A, to whom 1,200 shares were allotted failed to pay allotment and calls money and B, to whom 1,800 shares were allotted failed to pay two calls. These shares were subsequently forfeited after the final call was made. All the forfeited shares were sold to Rajesh as fully paid-up at Rs. 11 per share. Prepare Cash Book and journal entries reqwuired to record the above transactions. |
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Answer» Solution :AMOUNT RECEIVED on Allotment Rs. 2,54,800, Capital Reserve Rs. 14,600. BANK Balance Rs. 8,52,800. Hint : Premium of Rs. 4,800 due on A's shares will be debited in the ENTRY of FORFEITURE. |
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| 2888. |
A and B are partners sharings sharing profits in theratio of 3 : 2. They admit C into the firm for 1/4th share in profit which he takes 1/6th from A and 1/12th from B . C brings Rs. 90,000 as goodwillout of his share of Rs. 1,20,000. No goodwill account appears in the booksof the firm. Pass necessary journal entries to record this arrangement. |
Answer» Solution :(a)When Goodwill is adjusted through new Partner's Current Account :  ALTERNATE SOLUTION : (b) When Goodwill is raised andwritten off :  WORKING Notes : (1) C brings Rs. 90,000 as goodwill out ofhis share of Rs.1,20,000. Hence, goodwill be raised based on theportion of goodwill not brought by thenew partner. ` 30,000 xx 4/1 = Rs. 1,20 ,000` (2) Calculation of New PROFIT Sharing Ratio : A's new share = `3/5 - 1/6 = (18-5)/30 = 13/30` B's new share = `2/5 - 1/12 = (24-5)/60 = 19/60` C's share = ` 1/4` THUS new ratio = `13/30 : 19/60 : 1/4or 26 : 19 : 15` |
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| 2889. |
A company has issued 10,000 Equity shares of Rs.10 each and it has called the total nominal value. It has received the total amount , except the final call of Rs.3 on 500 Equity shares will be shown as |
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Answer» SUBSCRIBED and FULLY PAID - up. |
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| 2890. |
A and B are partners sharing profits in the ratio of 2:1. C is admitted into the firm for 1/4 share of profits. C brings in Rs. 20,000 in respect of his capital. The capitals of old partners A and B, after all adjustments relating to goodwill, revaluation of assets and liabilities, etc., are Rs. 45,000 and Rs. 15,000 respectively.It is agreed that partners’ capitals should be according to the new profit sharing ratio. Determine the new capitals of A and B and record the necessary journal entries assuming that the partner whose capital falls short, brings in the amount of deficiency and the partner who has an excess, withdraws the excess amount. |
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Answer» Solution :1. Calculation of NEW profit sharing ratio: Assuming the new PARTNER C quires his share from A and B in their old profit sharing ratio, i.e 2:1. Total Share= 1 ltbgt C's Share `=(1)/(4)` `{:("Remaining shares",=1-(1)/(4)=(3)/(4)),("A's New Share",=(3)/(4)xx(2)/(3)=(6)/(12)),("B's New Share",=(3)/(4)xx(1)/(3)=(3)/(12)),("C's New Share",=(1)/(4)xx(3)/(3)=(3)/(12)):}` Thus, new profit sharing ratio between A,B and C is 6:3:3 or 2:1:1. 2. Required Capital of A and B C’s capital (who has 1/4 share in profits) is Rs. 20,000. B’s new share in profits 1/4. HENCE his capital will ALSO be Rs. 20,000. A’s new share is 2/4 which is double of C’s share.Hence his capital will be Rs. 40,000. Alternatively, based on C’s capital, the total capital of the firm works out at Rs. `80,000 (4//1 xx Rs.20,000)`. Hence, based on their share in profits, the capital of A and B will be: `{:("A's capial",=(2)/(4) of 80000 = Rs. 40000),("B's capital",=(1)/(2)of 80000 = Rs. 20000):}` The capital of A and B after all adjustments have been made, are Rs. 45,000 and Rs. 15,000 respectively.Hence, A will withdraw Rs. 5,000 (Rs. 45,000– Rs.40,000) from the firm whereas B will contribute additional amount of Rs. 5,000 (Rs. 20,000–Rs.15,000). The journal entries will be :   Sometimes, the total capital of the firm may clearly be specified and it is agreed that the capital of each partner should be proportionate to his share in profits.In such a situation each partner’s capital (including the new partner’s capital to be brought by him) is calculated on the basis of his share in profits. By bringing in additional amount or withdrawal of excess amount, the final capital of each partner can be brought up to the required level. It may be noted that subject to agreement among the partners, SURPLUS or deficiency in each old partners’ capital accounts can also be taken care of simply by transfer to their respective current accounts. |
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| 2891. |
A' Limited purchased the assets from 'B' Limited for .Rs 5,40,000 . 'A' Limited issued 10% debenturesof .Rs 100 each at 20% premium against the payment . The bumber of received by'B' Limited will be : |
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Answer» `4,500` |
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| 2892. |
A' Limited purchased the assets from 'B' Limited for .Rs 5,40,000. 'A' Limited issued 10% debentures of .Rs 100 each at 10% discount against the payment . The number of debentures received by 'B' Limited will be : |
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Answer» `54,000` |
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| 2893. |
A, B and C are partners sharing profit or loss in the ratio of 2:3:4. A retires and after A's retirement B and C agreed to share profit or loss in the ratio of 3:4 in future. Their gaining ratio will be : |
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Answer» `2:3` |
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| 2894. |
A, B and C were partners in a firm sharing profits and losses in the ratio of 2:2:1. The capital balance are Rs. 50,000 for A, Rs. 70,000 for B, Rs. 35,000 for C. B decided to retire from the firm and balance in reserve on the date was Rs. 25,000. If goodwill of the firm was valued at Rs. 30,000 and profit on revaluationwas Rs. 7,500 then, what amount will be payable to B? |
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Answer» RS. 70,820 |
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| 2895. |
A partnership is dissolved when there is a death of a partner, |
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Answer» |
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| 2896. |
A firm is dissolved Raman, a partner is to carry out dissolution for which he will get Rs 50,000, including expenses. Realisation Expenses were Rs 25,000, which were paid by the firm. Realisation Account will be debited by |
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Answer» RS 50,000 |
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| 2897. |
A, B and C Sharing profits lossesin theratioof 4 : 3:2, decides toshare thefuture profitsandlosses in the ratio of 2:3:4 with effects from 1st April, 2019 .An extract of theirBalance sheet asat 31st March, 2019 is. Show the accounting treatmentunder the following alternativecases:Case 1.If the is noother information. Case. 2 Ifthe marketvalue ofinvestment is ₹ 2,00,000.Case.3 Ifthe marketvalue ofinvestment is ₹ 1,91,000. Case.4 Ifthe marketvalue ofinvestment is ₹ 2,18,000. Case.5 Ifthe marketvalue ofinvestment is ₹ 1,73,000. |
Answer» SOLUTION :
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| 2898. |
A and B are partners sharing profits in the ratio of 3:2. They admit C as a new partner from 1st April, 2019, They have decided to share future profits in the ratio of 4:3:3. The Balance Sheet as at 31st March, 2019 as given below: Terms of C's admission are as follows: (i) C contributers proportionate capital and 60% of his share of goodwill in cash. (ii) Goodwill is to be valued at 2 year's purchase of super profit of last three completed years. Profits for the years ended 31st March, were: 2017-Rs4,80,000, 2018-Rs9,30,000, 2019 -₹13,80,000. The normal profit isRs 5,30,000 with same amount of capital invested in similar industry. (iii) Land and Building was found undervalued byRs 1,00,000. (iv) Stock was found overvalued byRs 31,000. (v) Provision for Doubtful Debts is to be made equal to 5% of the debtors. (vi) Claim on account of Workmen Compensation isRs 11,000. Prepare Revaluation Account, Partners' Capital Accounts and Balance sheet. |
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Answer» A-Rs3,62,400; B-₹3,51,600; C-Rs3,06,000; Balance Sheet Total -Rs13,65,000. |
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| 2899. |
A, B, C and D were partners in a firm sharing profits in the ratio of 4 : 3 : 2 : 1. On 1st January, 2015, they admitted E as a new partner for 1/10 share in the profits. E brought RS. 10,000 for his share of goodwill premium which was correctly recorded in the books by the accountant. The accountant showed goodwill at RS.1,00,000 in the books. Was the accountant correct in doing so? Give reason in support of your answer. |
| Answer» Solution :the ACCOUNTANT is not CORRECT. Reason: It is a self-generated GOODWILL and only purchased goodwill is ACCOUNTED in the books of account as PER AS-26. | |
| 2900. |
A company has issued 1,000, 9% Debentures of Rs 1,000 each on 1st October, 2018 to be redeemed on 31st July, 2019. How will it be shown in the Balance Sheet as at 31st March, 2019? |
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Answer» |
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