Explore topic-wise InterviewSolutions in Current Affairs.

Features of receipts and payments account 

(a) It is real account 

(b)It is prepared on cash system of accounting.

1. Comparitive statements 

2. common size statements 

3. Trend and ratio analysis

(i) Redemption of Debentures : Redemption of Debentures means Repayment of the Amount of Debentures to Debenture Holders . In other words , Redemption refers to Discharge of Liability on Account of Debentures by Repaying the Due Amount of Debenture . The Terms and Conditions of Redemption are stated in the Prospectus Inviting Applications for the Issue of Debentures . The Terms of Redemption are also clearly stated in the Debenture Certificate . Hence the Redemption is made in Accordance with the Terms of Issue . Amount required for the Redemption of Debentures may be Managed by a Company from the following Sources : 

• Redemption from the Proceeds of Fresh Issue of Shares and Debentures . 
• Redemption of Debentures Out of Capital . 
• Redemption of Debentures Out of Profits . 

(ii) Loss on Issue of Debentures : Sometimes the Debentures are Issued with the specific condition that the Company will pay a premium at the time of them redemption . Although such premium will be paid at the time of actual redemption . But as it is a known Loss , the Company records such Loss at the time of Issue by Debiting an Account called , “Loss on Issue of Debentures Account”. It is done in keeping with the Conventions of Conservatism . Loss on Issue of Debentures Account is a Loss on account of Promise to Pay Debentures at a Premium at th time of their Redemption . This is a Capital Loss and is Written Off from Security Premium Reserve or from Statement of Profit and Loss , gradually every year during the Liftime of the Debentures . The entry for Writing Off will be :

Statement of Profit and Loss A/c. Dr. 

 To Loss on Issue of Debentures A/c

The Balance of “Loss on Issue of Debentures A/c.” is shown as “Unauthorized Expenses” on the Assets Side of the Balance Sheet 

(iii) Minimum Subscription : Section 39 (1) of the Companies Act, 2013 provides that a Company cannot Allot any Securities of the Company to the Public, Unless the Amount Stated in the Prospectus as the “Minimum Subscription” has been Subscribed. Minimum Subscription means the Amount which in the opinion of the Directors, is the Minimum to be Raised by the Issue of Shares, so as to provide for the following Regulations : 

• For the Payment of Purchase Price of any Property Purchased or Agreed to be Purchased
• For the Payment of Preliminary Expenses, including Underwriting Commission and Brokerage on Issue of Shares . 
• For the Repayment of any Money, Borrowed by the Company for the above purposes . 
• For Working Capital and any Other Expenditure required for the Usual Conduct of Business Operations .

Companies Act, 2013 has Not Prescribed the Minimum Subscription . According to SEBI Guidelines, Minimum Subscription has been Fixed at 90 % of the Issued Amount . As Per Section 79 (1), the Company has to get a Minimum Subscription Within 30 Days from the Date of Issue of the Prospectus. 

Bank deposits consist of money placed into banking institutions for safekeeping. These deposits are made to deposit accounts such as savings accounts, checking accounts, and money market accounts.

contents of partnership deed. 

(a) Name and addresses of the firm 

(b)Name and address of all the partners or any other

Financial statements are the basic and formal annual reports through which the company communicates financial information to its owners and other stake holders/extemal parties.

Inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. Reserve Bank of India is the authority to control inflation through monetary policies

Calculation of Good will: 

Good will = Average profit of last 4 year x Number of years of purchase of Average profits.

Average profits = 40,000/4 = Rs. 10000

Good will = Rs. 10,000 × 2 year purchase 

= Rs. 20,000

(i) Authorized Share Capital : Authorized Capital refers to that Amount which is Stated in the Memorandum of Association . This is the Minimum Capital for which a Company is Authorized to Issue Shares during its Lifetime. This Capital as also known by the name of Registered Capital or Nominal Capital . 

(ii) Calls-in-Arrears : It often happens that some Shareholders Fail to Pay the Amount of Allotment or Call when it becomes Due . This is known as Calls-in-Arrears . There are Two Methods to Deal with Calls-in-Arrears : 

• Without Opening Calls-in-Arrears Account : Under this Method there is No Need to Open Calls-in-Arrears Account . In such a case the Actual Amount Received from the Shareholders is Credited to the Call Account and all Account will show a Debit Balance, Equal to the Unpaid Amount of the Call . On a Subsequent Date, when the Unpaid Amount is Received , Bank Account is Debited and the Relevant Call Account is Credited . 
• By Opening Calls-in-Arrear Account : Under this Method, “Calls-in-Arrears Account” is Opened and the Account is Debited when Some Amount of Allotment or Calls is Not Received. On a Later Date , when the Arrear Amount is Received , Bank Account is Debited and the Calls-in-Arrear Account is Credited .

(iii) Pro-Rata Allotment : In this case, No Application as for Shares is Refused and No Applicant is Allotted the Shares in Full . Each Applicant Receives the Share in the same Proportion which is the Ratio of Total Number of Shares Offered to the Total Number of Shares Applied for . In this case, the Excess Application Money Received is Normally Adjusted towards the Amount Due on Allotment. In case, if the Excess Money is More than the Amount Due on Allotment of Shares, the Excess Amount may either be Refunded or Credited to Calls-inAdvance Account .

(iv) Preference Share : Preference Share are the Shares that carry the following Two Rights : 

• They have a Right to Receive Dividend at a Fixed Rate before any Dividend is Paid on the Equity Shares . 
• When the Company is Wound Up they have a Right to the Return of Capital before that of Equity Shares. In addition to the above, the Preference Shares may carry some More Rights such as the Right to Participate in Excess Profits when a Specified Dividend has been Paid on the Equity Shares or the Right to Receive a Premium at the Time of Redemption .

Many people are faced with the dilemma of whether to revive a lapsed policy or buy a new one. It often happens that a person either forgets or does not have the money to pay the premium for insurance plan. Normally every policy has a grace period varying from 15 to 30 days within which premium can be paid after the due date. How ever, if the premium is not paid even within the grace period the policy lapses. In the given case the person would have to pay one time payment comprising unpaid premiums for 2 years and late fee. The decision about whether to revive a lapsed term policy or buy a new one will vary from case to case. However, it is advisable not to base your decision merely on premium amount but choose the life insurer of whom you are confident and the policy that suits your needs.

Partner capital account Dr. 

To Realisation A/c

1. It is useful for making projections and estimates for the future. 

2. To know the area of business, which needs more attention.

(i) Benefits to the Organisation: 

• It improves the skill of employees and increase the productivity.
• It reduces wastages of materials and idle time.
• It minimizes the time for supervision.
• It reduces the frequent accidents at workplace and consequent payment of compensation.

(ii) Benefits to the Employees:

• It increases the knowledge, skill of the employees.
• It enables him to gain promotion in shorter time.
• It improves the employees productivity.
• Employees get higher earnings through incentives and rewards.

(iii) Benefits of Customer:

• Customers get better quality of product and service.
• Customers get innovative products or value added or feature rich products.

Goodwill is the Value of the Reputation of a Firm which enables it to Earn Higher Profits in Comparison to the Normal Profits Earned by Other Firms in the Same Trade . The Term Goodwill is generally used to Denote the Benefit Arising from Connections and Reputation.

Factors Affecting the Value of Goodwill : 

(i) Favourable Locations of the Business : If the Business is Located at a Convenient or Prominent Place , it will Attract More Customers and therefore will have More Goodwill . 

(ii) Efficiency of Management : If the Business is Run by Experienced and Efficient Management, its Profits will go on Increasing, which results in Increase in Value of Goodwill . 

(iii) Nature of Goods : If a Business Deals in Goods of Daily Use, it will have Steady Profits as the Demand for these Goods will be Stable. Such Business will have More Goodwill . But if it Deals in Fancy Goods, its Profit will be Uncertain and as such the Value of the Goodwill will be Less . 

(iv) Trend of Profit : If the Profits of a Business are Increasing Continuously , the Value of its Goodwill will be More. If the Profits are Declining or if the Profits are Uncertain , the Value of Goodwill will be Less . 

(v) Other Factors : Other Factors which affect the Value of Goodwill are :

• Good Industrial Relations . 
• Favourable Government Regulations . 
• Effective Advertising to Establish Brand Popularity . 
• Popularity of Product in Terms of Quality .

Need for Valuation of Goodwill : 

The Need for Valuing the Goodwill in Partnership Arises in the following circumstances : 

(i) When there is a Change in the Profit Sharing Ratio among the Existing Partners . (ii) When a New Partner is Admitted . 

(iii) On Retirement or Death of a Partner . 

(iv) When the Firm is Sold . 

(v) When the Firm is Amalgamated with Another Firm .

Valuation of Goodwill can be done by the following THREE Methods : 

(i) Average Profit Method 

(ii) Super Profit Method 

(iii) Capitalization Method

1. Income Statement 

2. Position Statement

Business units can reduce expenditure by outsourcing front office work like File work.

Marketing mix means a marketing programme that is offered by a firm for the satisfaction of human wants. 

There are four Elements of Marketing mix:

• Product: A Product is the main element of marketing. Without a product, there can be no marketing.
• Price: Price is the value of a product expressed in monetary terms. It is the amount Charged for the product.
• Place (Physical Distribution): An excellent quality product, with a good price, will be waste, if it is not transferred from the production place to consumption place.
• Promotion: An excellent product with competitive price cannot achieve a desired success and acceptance in market, with special features are conveyed to the consumers.

1. Profits of the firm 

2. Turnover of the firm

Forfeiture of shares means cancellation of the rights of the shareholder on the shares held by him for non payment of allotment money or call money or both, on such shares.

The Central Government enacted a comprehensive law called the Consumer Protection Act in 1986. This Act came into force with effect from 15.04.1987. It is in short, called as ‘COPRA’.

Objectives:

• Consumer protection Act protects the interests of the consumers.
• This Act provides safeguard against defective goods and deficient services, unfair trade practices.
• It also gives settlement of consumer disputes. 
• It is applicable to public sector, financial and cooperative enterprises.

Partner capital account Dr. 

To Realisation A/c

The limitations of financial statements are – 

(a) Doesn’t reflect current situation 

(b) Non-monetary factors are ignored 

(c) It records only historical costs.

(b) Previous year

Salient features of The Indian Consumer Protection Act, 1986:

• Protecting consumers against products and services which are harmful to the health of the consumers.
• Ensuring consumers with supply of goods at fair quality.
• Ensuring the availability of goods in correct quantity and right size.
• Protecting the consumers against pollution of various kinds.
• Ensuring that consumers are charged fair price. 
• Protecting the consumers against unfair trade practices of unscrupulous trader.

The features of a company are 

1. Company is an artificial person created by law 

2. A company has perpetual legal existence different and distinct from that of its member. 

3. Enjoys limited liability.

Partner capital account Dr.

 To Realisation A/c

The Uses And Misuses Of Computer

Computer education is becoming absolutely vital for everyone. Computers are no longer luxury items. Now computers are not the sole property of the advanced nations. The computer is being used in every field like science, technology, agriculture, entertainment, banks, railway-department, stock market etc. Its appropriate use helps us in solving unique problems. But its excessive use is harmful to health. Some children who frequently use the computer may be at risk of developing vision problems. Its continuous use causes eye discomfort, fatigue, headache, weight increasing problem, skin, ear, throat, nose problems, etc. Because of spending long hours with the computer, children are becoming less social.

कम्प्यूटर शिक्षा सभी के लिए अत्यधिक आवश्यक होती जा रही है। कम्प्यूटर अब विलासिता की वस्तु नहीं रहे गये हैं। कम्प्यूटर अब केवल विकसित देशों की सम्पत्ति भी नहीं रह गये हैं। कम्प्यूटर का प्रयोग प्रत्येक क्षेत्र जैसे विज्ञान, तकनीकी, कृषि, मनोरंजन, बैंक, रेल विभाग, स्टॉक मार्केट आदि क्षेत्रों में हो रहा है। इसके उपयुक्त प्रयोग से हमें अनोखी समस्याओं को हल करने में सहायता मिलती है। लेकिन इसका आवश्यकता से अधिक प्रयोग स्वास्थ्य के लिए हानिकारक है। कुछ बच्चे जो प्राय: कम्प्यूटर का प्रयोग करते हैं, उनमें दृष्टि सम्बन्धी समस्याएँ उत्पन्न होने का खतरा रहता है। इसके लगातार प्रयोग से आँखों को परेशानी, थकान, सिरदर्द, वजन बढ़ना, त्वचा-कान, गला, नाक सम्बन्धी समस्याएँ आदि होती हैं। कम्प्यूटर के साथ बहुत अधिक समय बिताने के कारण बच्चों में सामाजिकता कम हो जाती है।

According to Evelyn Thomas, “Commercial operations deal with the buying and selling of goods, the exchange of commodities and the contribution of finished products”.

First Aid after a Snake Bite

Snakebite can be deadly if not treated quickly. First aid can save a person’s life. Keep the person calm reassuring that bites can be effectively treated. First, tie a bandage about two inches above the bitten area. Wash the wound with effective antiseptic. Cleaning the wound is the single most effective treatment you can give. If you can get a syringe, use it to suck the poison. It is not necessary to cut the wound. You should not try to suck it out with your mouth as it is shown in films. Do not give the patient anything to eat or drink. Take the patient to the hospital as early as possible. The doctor will treat the patient and give him proper medicines.

यदि साँप के काटे का तुरन्त उपचार नहीं किया जाये तो यह घातक हो सकता है। प्राथमिक उपचार व्यक्ति को जीवन बचा सकता है। काटे हुए व्यक्ति को यह आश्वासन देते हुए शान्त रखिये कि काटे का उपचार प्रभावशाली ढंग से हो सकता है। पहले काटे हुए स्थान से लगभग दो इंच ऊपर एक पट्टी बाँधिये। घाव को किसी अच्छे एन्टीसेप्टिक से धो दीजिए। घाव को साफ करना एकमात्र सर्वाधिक प्रभावी उपचार है जो आप कर सकते हैं। यदि आपको कोई सिरिंज मिल जाये तो इससे जहर खींचिये। घाव पर कट लगाना आवश्यक नहीं है। आपको मुँह से जहर चूसने की कोशिश नहीं करनी चाहिए जैसा कि फिल्मों में दिखाया जाता है। मरीज को खाने या पीने के लिए कुछ मत दीजिए। जितना जल्दी सम्भव हो, मरीज को अस्पताल ले जाइये। डॉक्टर मरीज का उपचार करेगा और उसे उचित दवाएँ देगा।

Importance Of Entertainment

Just as food is important to re-energize our body, the same way entertainment is important to re-energize our mood. Various sources of entertainment increase our knowledge also. It keeps us mentally and physically fit. It reduces our level of stress, makes us happy and brings colours to our life. It diverts our mind from our day-to-day worries, tension and routine work. After the entertainment, we feel more energetic and enthusiastic. We are able to concentrate more on our work. So, everyone must have a daily dose of entertainment. There are various ways of entertainment like listening to music, playing games and sports, picnic, talking to friends etc.

जिस प्रकार हमारे शरीर में पुनः शक्ति संचार करने के लिए भोजन महत्त्वपूर्ण है, उसी प्रकार हमारी मनोदशा में पुनः शक्ति-संचार करने के लिए मनोरंजन महत्त्वपूर्ण है। मनोरंजन के विभिन्न साधन हमारा ज्ञान भी बढ़ाते हैं। यह हमें मानसिक व शारीरिक रूप से स्वस्थ रखता है। इससे हमारा तनाव का स्तर कम होता है, प्रसन्नता मिलती है और जीवन में रंग भरते हैं। इससे हमारा ध्यान हमारे दैनिक जीवन की चिन्ताओं, तनावों व दैनिक कार्यों से बँट जाता है। मनोरंजन के बाद हम स्वयं को अधिक ऊर्जावान व उत्साही अनुभव करते हैं। हम अपने कार्य पर और अधिक ध्यान एकाग्र कर पाते हैं। इसलिए प्रत्येक व्यक्ति को प्रतिदिन अपना मनोरंजन करना चाहिए। मनोरंजन के विविध तरीके हैं, जैसे- संगीत सुनना, खेल खेलना, पिकनिक, मित्रों के साथ बातें करना इत्यादि।

Goodwill = Average profit of last 4 years × No. of years of purchase 

= Rs. 20,000 × 2 years = Rs. 40,000.

Average profit = Total profit/No.of years

= 80,000/4 

= 20,000.

The other name for Non – life insurance is called as General insurance. It can be further classified into: 

1. Fire insurance 

2. Marine insurance 

3. Health insurance 

4. Miscellaneous insurance

1. It is Charlie Chaplain.

2. They communicate to me the wonder-world of technology and machines.

Pranayam

Pranayam is control and extension of the breath. By practising it, we can reduce our breathing rate. Reduced breathing rate has a lot of benefits. It slows down heart rate, reduces blood pressure and relaxes body and mind. Pranayam increases our life expectancy.
Steps of Pranayam:
We should sit in the ‘Padmasan’.Then we shouldered press our right nostril with our right-hand thumb and breathe in slowly from the left nostril. Then we should hold our breath for 5 to 10 seconds. Now we should release the thumb and close the left nostril with our ring finger. Then we should breathe out slowly through our right nostril. Again we should breathe in from the right nostril and after holding our breath, we should press the right nostril with thumb and breathe out from the left nostril.

प्राणायाम श्वास गति का नियंत्रण तथा विस्तार है। इसके अभ्यास से हम अपनी श्वास-दर घटा सकते हैं। घटी हुई श्वास-दर के अनेक लाभ हैं। यह हृदय-गति को धीमी करती है, रक्तचाप को कम करती है और शरीर एवं मस्तिष्क (मन) को आराम पहुँचाती है। प्राणायाम हमारी जीवन-प्रत्याशा को बढ़ाता है।
प्राणायाम के चरण:
हमें ‘पद्मासन’ में बैठना चाहिए। फिर हमें अपने दायें हाथ के अँगूठे से अपने दायें नथुने को दबाना चाहिए और बायें नथुने से धीरे-धीरे साँस लेनी चाहिए। फिर हमें 5 से 10 सेकण्ड तक अपनी साँस रोकनी चाहिए। अब हमें अँगूठे को हटा लेना चाहिए तथा अपनी अनामिका अँगुली से बायें नथुने को बन्द करना चाहिए। फिर हमें अपनी साँस धीरे धीरे अपने दायें नथुने से छोड़नी चाहिए। पुन: हो दायें नथुने से साँस लेनी चाहिए और अपनी साँस को रोककर दायें नथुने को अँगूठे से दबाना चाहिए और बायें नथुने से साँस छोड़नी चाहिए।

The features of partnership are 

1. Partnership is an agreement between two or more persons to do business and to share its profit or loss in agreed ratio. 

2. Partnership may be carried on by all or by any of them acting for all.

Correct option: b) Balance, proportion, rhythm

(b) Voyage

A marine insurance policy that is a combination of voyage & time policies & covers all risks during the particular voyage for a specified period of time is called Voyage policy.

Non profit organisation are those orgainsations which are formed to render social service and not for making profits, such as promotion of education, sports, and games, science and techonology etc.

(d) Kavaratti

Cargo imported into India is subject to payment of Customs Duty, as per the Customs Act. This duty can be included in the value of the cargo insured under a Marine Cargo Policy.

Principles of design are the rules that govern how design elements are mixed in the most appropriate way.

A cash flow statement is a statement showing inflows (receipts) and out flows (payments) of caash during a particular period.

(d) reef formation

(d) Narcondam and Barren 

(a) of the location of the Himalayas in its North

(c) Jammu and Kashmir 

(d) Tamil Nadu

Nagaland is the smallest state area wise.

Goa state has smallest land area.

Meaning of Analysis of Financial Statements : 

Analysis of Financial Statement is a Systematic Process of Analysing and Evaluating the Relationship between the Items of the Balance Sheet and Income Statement . Hence, Financial Analysis Reveals the Financial Strength and Weaknesses of the firm . Financial Analysis includes Both Analysis and Interpretation . 

Significance of Financial Analysis : 

(i) Significance for Creditors : Creditors include short-term creditors like bankers, trade creditors and also long-term credit grantors like debenture holders and financial institutions etc. 

(ii) Significance for Management: Management of a concern is interested in its financial condition, profitability and progress. It uses a number of methods, tools and techniques available to it to analyse the financial data. 

(iii) Significance for Investors: Investors and shareholders are the suppliers of the basic capital to run the concern. Such capital is exposed to all the risks of ownership. Investors are interested in the profitability, dividends declared and market value of their holding. 

(iv) Significance for Employees: Employees can judge, on the basis of analysis of financial statements, the profitability of the business enterprises. They can compute as to how much bonus and increase in their wages are possible from the profits of the business concern. Financial analysis also helps the trade union in negotiating wages agreements. 

(v) Significance for Government: Financial statement analysis provides useful information to various government departments like Income Tax, Sales Tax, Excise Duty etc. to determine tax liability of the concern.