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(d) All of the Above

In the absence of any partnership agreement the profit or loss of the firm are divide In equal Ratio.

Profit and Loss Appropriation Account is prepared To find out divisible profit.

Accounting Standared-3 related to a Cash Flow Statement

Interest on Drawing is for firm Profit

For the firm, interest on drawing is a Gain

For the firm, interseton drawing in  Income

CPU Stand for Central Processing Unit

Joint Life Policy amount received by a firm is distributed in Old profit sharing Ratio of perdan

Brain of Computer is known CPU

The American Institute of Certified Public Accounts.

New ratio of X and z is 1 : 1

Revaluation Account or profit & loss adjustment account is Nominal Account.

In the absence to partnership deed partners shall not be paid salaries

The amount earned by a business concern through sale of its products or providing services to customers is called Revenues.

Analysis of recorded data to bring entries of similar nature to one plane is called Classifying.

The assets bought for long-term use in the business are termed as Fixed assets.

Value of goods remaining unsold at the end of an accounting period is termed as Closing Stocks.

A Person who is entitled to get money from the business is termed as Creditor.

Correct answer is (d) The firm appointed an efficient Manger.

MS Office 2000 was developed by Micro Soft

A life insurance policy taken on joint lives of all partners is called Joint Life Policy

Windows 98 was developed in 1998

1. It records only transactions which can be recorded in monetary terms:

Qualitative aspects like managerial skill, Services of experts, etc. are not recorded.

2. Accounting is a post mortem survey:

It records events as they have taken place. For example, expenses are recorded as incurred, assets are recorded at their cost of purchase. There is no scope for ascertaining what the appropriate expenditure or cost of acquisition should have been.

3. Effect of price level changes are not considered:

Transactions are always recorded in the books at cost price and not at market price.

4. Inexactness:

Accounting transactions are not exact. Different firms have their own different methods, so the results of the business will change in the practice.

First Calculating device is Abacus

Discount allowed on re-issued of forfeited shared is debited to share capital A/C

Assets minus liabilities are called Capital.

New profit sharing ratio between Ram and Shyam will be 5 : 3.

1. Assets:
Assets are properties and things of value owned by the business which can be expressed in monetary terms. Examples of Machinery, Buildings, Stock, Debtors, Furniture, etc.

2. Liabilities:
Liabilities are the obligations that an enterprise owes. These represent the amount payable by the business in the future. They represent the claim against the asset of business. Examples Loans, Creditors, Bills payable, etc.

3. Capital:
Capital is the investment made by the owners for use in the business. It is owner’s claim on the total assets of the business and is also called “owners equity”.

Legacies should be treated as A liability

Accounting plays a significant role in society by providing information to management at all levels (internal users) and to those having a direct financial interest in the enterprise (external users), such as present and potential investors, creditors. Accounting information is also important to those having an indirect financial interest, such as regulatory agencies, tax authorities, customers, labour unions, stock exchange, and others.

Internal users, mainly management, need timely information on cost of sales, profitability, etc. for planning, controlling and decision making. External users who have limited authority, ability and resources to obtain the necessary information have to rely on financial statements. The external users are interested in the following.

1. Investors and Potential investors:

Information on the risks and returns on investments.

2. Suppliers and Creditors:

Information on whether amounts owed will be repaid when due and on the continued existence of the business.

3. Customers:

Information on the continued existence of the business and thus the profitability of a continued supply of products, parts, and after-sales services.

4. Employees:

They are interested in getting their salary, welfare measures, bonus, working conditions, etc. which are all related to financial performance of the business.

5. Lenders:

Information on the creditworthiness of the business and its ability to repay loans and pay interest.

6. Government and other regulators:

Information on the allocation of resources and the compliance to regulators.

1. Fixed Assets:

Fixed Assets are assets held on long term basis, such as land, buildings, machinery, plant, furniture, etc. These assets are used for the normal operations of the business.

2. Current Assets:

These are assets held on a short-term basis such as debtors, bills receivables, stock, cash in hand, cash at bank, etc. It is also known as “Floating asset.”

3. Fictitious Assets:

These are those assets, which do not have a physical form. They do not have any real value. Actually, they are not the real assets but they are called assets on legal and technical grounds. Examples are preliminary expenses, discount on issue of shares or debentures, etc.

4. Tangible Assets:

Assets having physical existence which can be seen, touched are known as tangible assets. These assets are land, building, plant, equipment, etc.

5. Intangible Assets:

These assets have no physical existence which cannot be touched, seen or felt. Examples are Goodwill, trademark, patent, copyright.

6. Wasting Assets:

Assets, whose value goes on declining with the passage of time, are known as wasting assets. Mines, oilwells, quarries are its examples.

7. Liquid Assets:

Liquid assets are those assets, which can be converted into cash at short notice. The examples of liquid assets are cash in hand, cash at bank, debtors, bills receivable, etc. Liquid assets = Current Assets – (Stock + Prepaid Expenses)

1. Goods and Assets:

• Goods refer to things in which the trader deals. But assets refers to things with which the trader deals.
• Goods are meant for resale, while assets are kept in the business permanently with the help of which the business is carried on.

2. Expense and Loss:

• Costs incurred by a business in the process of earning revenue are known as expense.
• The excess of expenses of a period over its related revenues is termed as loss. It decreases in owner’s equity.

Fictitious Assets assets are those assets, which do not have any real value.

(c)  Preference share and equity share

Withdrawals are not mentioned interest on drawing is charged For 6 month

New ratio of x and z will be 2:1.

Interest on loan : If any partner, apart from his share capital, advances money to the firm as loan, he is entitled to interest on such amount at the rate of six percent per annum.

(d)  None of these

If equity share of Rs. 10 each is issued at Rs. 12 each it is called Issued at premium.

New ratio of x and y will be  2:3

Correct option is: (D) Endowment Fund

The executors will be paid interest on the amount from the date of death of the partners 5% p.a.

(D) Paid Up Capital

Partnership Act was implemented in 1932.

Total amount of liabilities side includes the Paid up capital.

Correct option is: (C) All revenue and capital receipts and payments

(c) Articles of association of the company authorise it to do so

(b)  Section 52