Capital employed by a partnership firm is Rs10,00,000.Its average profit is Rs 1,20,000. The normal rate of return in similar type of business is 10%. What is the amount of super profits?

According to AS 26, which goodwill is recorded in the books:

At the time of admission an incoming partner contributes as goodwill:

At the time of a new partner Good will:

On the reconstitution of a firm change in the value of assets is called ________

What adjustments are required when existing partners decide to change their profit sharing ratio:

The accounting procedure at the retirement of partner is valued:

On the retirement of a partner any reserve being should be transferred to the capital account of:

When all partners are insolvent creditors will be:

When good will is brought in cash by new partner, method is known as:

Balance of forfeiture a/c after the shares have been re-issued is transferred to:

Securities Premium Reserve collected by the company can be used for:

Debentures are shown in the Balance Sheet of a company under the head of

Debenture interest is paid

What are the objectives of financial statement

How many tools of financial analysis

Purchase of building results in

How will you deal increase in the balance of Securities Premium Reserve while preparing a Cash Flow Statement?

Which of the following is generally considered as a non profit oriented organization?

Investment in sinking fund by a non-profit organization is a/an

Ram, Rahim and Raja are partners who share profits and losses in the ratio of 3 : 2 : 1.  According to partnership deed, the minimum profit of Raja will be Rs. 10,000 p.a. The profit for half yearly ended on 31^st March, 2008 was Rs. 24,000.  Give journal entries for division of profit and prepare Profit and Loss Appropriation Account.

X and Y started business of recycling the old furniture and refurbishing them for sale on 1st July 2017, each partner contributing Rs.1,50,000 as his share of capital. On 1st October, Y makes an additional contribution of Rs.1,00,000 which is treated as a loan.The profit for the period ending March 2018 was Rs.85,000 before charging any interest.All the partners were entitled to a salary of Rs.3,000 each, per quarter the partners had drawn Rs.24,000 each on 1st January, 2015. Prepare the profit and loss appropriation account for the period ended 31st March, 2018 . Identify the values involved in the above question.

A and B were partners in a firm sharing profits in the ratio of 3:2. They admitted C and D as new partners. The new profit sharing ratio will be 2:2:1:1. C and D brought Rs.2,75,000 each for their respective capitals and also necessary amount of premium for goodwill in cash. Goodwill was valued at Rs.2,40,000 for the firm. Calculate sacrificing ratio of A and B and pass necessary journal entries for the above transactions in the books of the firm.

On 31st March, 2015, the balance sheet A and B, who shared profits in 3:2 ratio, was as follows
                                            Balance Sheet
                                   as at 31st December, 2015

On this date, C was admitted as a partner on the following conditions
(i) C will get 4/15th share of profits.
(ii) C had to bring RS.30,000 as his capital to which amount other partners' capitals shall have to be adjusted.
(iii) He would pay cash for his share of goodwill which would be based on 2.5 years' purchase of average profits of past 4 years.
(iv) These assets would be revalued as under Sundry debtors at book value less 5% provision for Bad debts, stock at RS.20,000, plant and machinery at RS.40,000.
(v) The profits of the firm for the years' ending on 31st March, 2012, 2013 and 2014 were RS.20,000, RS.14,000 and RS.17,000, respectively.
Prepare revaluation account, partners' capital accounts and balance sheet of a new firm.

Why is it necessary to adjust goodwill at the time of change in profit sharing ratio?

Kartik and Aroha are partners in a firm sharing profits in the ratio of 2:3 The balance sheet of the firm as at  31st March ,2015 is given below
                                                     Balance Sheet
                                                    as at 31st March, 2015

The partners decided to share profits in equal ratio with effect from 1st April,2015 The following adjustments were agreed upon.
(i)Land and building was valued at Rs 16,000 and machinery at Rs16,400 and were to appear at revalued amounts in the balance sheet.
(ii)The goodwill of the firm was valued at Rs 800 but it was not to appear in books.
Pass the necessary journal entries to give effect to the above and also prepare revaluation account.

Identify the value being reflected by continuing partners in giving outgoing partner his share of Goodwill.

Why is it necessary to revalue assets and liabilities at the time of retirement of a partner?

Out of (i), partner's loan appears on the liabilities side of the balance sheet of the firm and the capital account of such partner shows a debit balance, how will you deal with such a loan?

L, M and N were equal partners. On 31st March, 2015, their balance sheet stood as under

                                          Balance Sheet

                                     as at 31st March, 2015

The firm was dissolved on that date. For the purpose of dissolution, investments were valued at Rs36,000 and L took over the investments at this value. Fixed assets realised Rs 59,400 whereas stock and debtors realised Rs1,60,000. Expenses of realisation amounted to Rs2,600. Creditors allowed a discount of Rs1,600. In Addition, one bill receivable for Rs3,000 under discount was dishonoured as the acceptor had become insolvent and was unable to pay anything and hence the bill had to be met by the firm.

Prepare realisation account, partner's capital accounts and cash account showing how the accounts would finally be settled among the partners.

X Ltd invited applications for 10,000 shares of Rs 10 each at a premium of Rs20 per share payable as Rs20 (including 50% premium) on applications and the balance on allotment. Application money received rs 2,20,000. Name the kind of subscription.

Can the forfeited shares be re-issued at a discount?

What is the nature of 'interest on debentures account?

In which account, gain on cancellation of own debentures transferred?

State any six items which are shown under the heading 'Reserves and Surplus' in the Balance Sheet of a Company as per Schedule III, Part-I of the Companies Act,2013.

Gyan Ud issued 10,000, 10% debentures of Rs 100 each on 1st October 2014 to be redeemed on 31st July 2015. How will it be shown in the balance sheet as at 31st March 2015?

IUf selling and distribution expenses have increased from Rs 1,00,000 to Rs 2,00,000, then by how much will it increase or decrease in percentage form? 

List any three items that can be shown as contingent Liabilities in a company's Balance sheet.

Calculate the current ratio from the following information:

What is considered to be the ideal current ratio and quick ratio?

State with reason, whether 'deposit of cash into bank' will result into inflow, outflow or no flow of cash.

Which values are reflected by a business in preparing a cash flow statement?

What are the features of Receipt and Payment Account?

What steps are taken to prepare Income and Expenditure Account from a Receipt and Payment Account?

T and P are partners sharing the profits and losses in the ratio of 2 : 3 with capitals of Rs.24,000 and Rs.12,000 respectively.On 1st October,2014, T and P granted loans of Rs.48,000 and Rs,24,000 respectively to the firm. The profits before any interest for the year 2014-2015 amounted to Rs.1,8000. Show the distribution of Profit/Losses by preparing profit and loss account.

A and B are partners sharing profits in the ratio of 3:2. C, the new partner gets 1/5th share entirely from A. Calculate new profit sharing ratio.

A,B and C are partners in a firm sharing profits and losses in the ratio of 3:3:2 Their balance sheet as 31st March,2015 was as under 
                                                Balance Sheet 
                                            as at 31st March,2015

Partners decided that with effect from 1st April,2015 they would share profits and loses in the ratio of 4:3:2.It was agreed that
(i) Stock is to be valued at Rs 2,20,000 
(ii) Machinery is to be depreciated by 10%.
(iii) A provision for doubtful debts is to be made on debtors @ 5%.
(iv) Building to be appreciated by 20%
(v) A liability for Rs 6,000 included in sundry creditors is not likely  toarise.
Partners agreed that revised values of assets and liabilities are to be recorded in the books.Give the necessary accounting entries to be made in the books of the firm on account of change in profit sharing ratio.Also prepare the revaluation account

Pawan,Prem and Poonam were partners in a firm sharing profits in the ratio of 2:1:2. Their fixed capitals were RS.2,00,000, RS.1,50,000 and 2,00,000 respectively. The firm closses its books on 31st March every year. On 31.03.2006 Prem died. The executor of a deceased partner according to the agreement was entitled for the following:

(i) Interest on capital from the first day of the accounting year till the date of his death @ 10% p.a.

(ii) His share of goodwill - The goodwill of the firm for the on Prem's death was valued at RS.3,00,000.

(iii) His share of profits - the profit of the firm for the year ended 31.03.2006 was RS.1,50,000 Prem's executor was paid the sum due in two equal annual instalment with interest @ 10% p.a. prepare Prem's capital account as on 31.03.2006 to be presented to his executor and his executor's loan account for the year ending 31.03.2007 and 31.03.2008.

What journal entries would be passed for the following transaction on the dissolution of a firm, if sundry assets and third party liabilities have already been transferred to realisation account?

(i) There was an unrecorded asset of Rs10,000 which was taken over by Vishal (partner) at Rs8,000.

(ii) Stock worth Rs14,000 was taken over by partner Rajat.

(iii) Workmen's compensation paid to employees by the firm Rs16,000.

(iv) Sundry creditors amounted to Rs8,000 were paid off at a discount of 4%.

(v) Loss on realisation amounted to Rs72,000 is to be distributed among Honey, Rajat and Vishal (partners) in the ratio of 3:2:1.

Inderjeet Ltd made an issue of 75,000 shares of the par value o f Rs 50 per share. The issue was oversubscribed to the extent of 25,000 shares and allotment as made as under

(i) Applications of 5,000 

(ii) Applications of 10,000 shares are allotted in full.

(iii) For the balance 85,000 shares, the pro-rata allotment was made.

Journalise the above transactions, when the company called rs 20 on applications, Rs 20 on allotment and the balance on first and final call. Also, identify the value violated by the company.

Srijan Ltd issued 30,000, 10% debentures of Rs 100 each on 1st April 2013. The issue was fully subscribed. According to the terms of issue, interest is payable on a half-yearly basis. Pass journal entries for the year ended 31st March, 2014.

Following balances have been extracted from the books of Vardhman Ltd on 31st March 2015.Equity share capital (2,00,000 equity shares of Rs 10 each) Rs 20,00,000. securities premium reserve Rs 4,00,000, 12% debentures Rs 10,00,000, creditors Rs 4,00,000, proposed divident Rs 1,00,000, surplus, i.i. balance in statement of profit and loss (debit) Rs 1,00,000, land and building Rs 18,00,000, government bonds Rs 10,00,000, capital work-in-progress(building) Rs 7,00,000, discount on issue of 12% debentures Rs 2,00,000, cash at bank Rs 1,00,000.Debentures were issued on 1st April, 2014 redeemable after 5 years, i.e. on 31st March 2019.Surplus, i.e. balance in statement of profit and loss is before writing off discount on issue of debentures.
Prepare the balance sheet of the company as per Schedule III, Part I of the Companies Act, 2013.
Identify the value involved in the presentation of balance sheet.

From the following information, prepare a comparative statement of profit and loss for the year 2014-2015

Other Information
(i) Income tax is calculated @ 50%
(ii) Manufacuturing expenses are 50% of the total of the category

The current ratio of a company is 2 : 1. State giving reasons, which of the following would improve, reduce or not change the ratio.
(i) Repayment of a current liability.
(ii) Purchasing goods on cash.
(iji) Sale of office equipment of Rs.4,000 (book value Rs.5,000).
(iv) Sale of goods Rs.11,000 (cost Rs.10,000).
(v) Payment of dividend.

Prepare a Cash Flow Statement from the following Balance Sheet :

Notes to Accounts

Note No. 1

Additional Information :
(i) An old machinery having books value Rs. 42,000 was sold for Rs. 56,000.
(ii) Depreciation provided on machinery during the year was Rs. 28,000.

Distinguish between Receipts and Payments Account and Income and Expenditure Account.

The profit of a firm for the year ended 31st March for the last five years were

Calculate the value of goodwill on the basis of three years purchase of the weighted average profit after assigning weights 1, 2, 3, 4 and 5 respectively to the profits for 2011, 2012, 2013, 2014 and 2015.

A and B are partners in a firm sharing profits and losses in the ratio of 3:2. They decide to admit C into partnership with \(\frac { 1 }{ 4 } \) th share in profits. C will bring in RS.30,000 for capital and the requiste amount of goodwill premium in cash. The goodwill of the firm is valued at RS. 20,000. The new profit sharing ratio is 2:1:1. A and B withdrew their share of goodwill. Give necessary journal entries.

Ram,Raj and Rohan and partners sharing profits and loses in the ratio of 4:3:2 They decide to share the future profits and losses in the ratio 2:3:4 with effect from 1st April ,2014 An extract of their balance sheet as at 31st March,2015 is as under.
                                                  Balance Sheet (An extract)
                                                  as at 31st March,2015

Show the accounting treatment under the following alternative cases.
(i)If there is no other information 
(ii)If a claim on account of workmen's compensation is estimated at Rs 22,500
(iii) If a claim on account of workmen's compensation is estimated at Rs 48,500

A, B and C were in partnership sharing profits and losses equally. B retires from the firm. After adjustment, his capital account shows a credit balance of Rs.1,20,000 as on 1st April 2012. The balance due to B is to be paid in three equal instalments annually together with interest @ 5% per annum, Prepare B's loan account until he is entire amount due to him. The firm closes its books on 31st March every year.

Bora, Singh and Ibrahim were partners in a firm sharing profits in the ratio of 5 : 3 : 1.  On 2.3.2015 their firm was dissolved.  The assets were realised and the liabilities were paid off.  Given below are the Realisation Account, Partners' Capital Account and Bank Account of the firm.  The accountant of the firm left a few amounts unposted in these accounts.  You are required these accounts by positing the correct amounts:

Dr.                                Realisation Account                                  Cr.

Dr.                               Capital Account                                           Cr.

Dr.                                    Bank Account                                         Cr.

Sudershan Ltd. invited applications for 1,00,000 equity shares of Rs.10 each. The shares were issued at a premium of Rs.5 per share. The amount was payable as follows:

On Application and Allotment Rs.8 per share (including premium Rs.3)

Balance on the first and final call.

The allotment was made to the following basis:

(i) Applicants for 80,000 shares were allotted 60,000 shares;

(ii) Applicants for 60,000 shares were allotted 40,000 shares; and

(iii) Applicants for 10,000 shares were allotted nil.

X, who belonged to the first category and was allotted 300 shares, failed to pay the first call money. Y, who belonged to the second category and was allotted 200 shares also failed to pay the first call money. Their shares were forfeited. The forfeited shares were reissued @ Rs.12 per share fully paid up. Pass the necessary Cash Book and Journal entries in books company.

Deepak Ltd Company purchased furniture Rs 2,20,000 from M/s Furniture Mart. 50% of the amount was paid to Furniture Mart by accepting a bill of exchange and for the balance the company issued 9% debentures of Rs 100 each at a premium of 10% in favour of Furniture Mart. Pass necessary journal entries in the books of Deepak Ltd Company for above transactions.       

Compute cost of materials consumed from the following information.
Opening inventory of materials Rs 5,00,000, materials purchased Rs 40,00,000 and closing inventory of materials Rs 6,00,000.

From the following balance sheets of Sun Ltd as at 31st March, 2014 and 2015, prepare a common size balance sheet

From the following information related to Naveen Ltd. calculate
(i) Return on investment
(ii) Total assets to debt ratio
Information
Fixed assets Rs.75,00,000, current assets Rs.40,00,000, current liabilities Rs.27,00,000,12% debentures Rs.80,00,000 and net profit before interest, tax and dividend Rs.14,50,000.

From the following Balance Sheet of India Ltd. and the additional information given made out the Cash Flow Statement:

Additional information:
(1)Depreciation of Rs.1,000/- and Rs.20,000/- has been charged on Plant and Land & Building respectively in 2006-07.
(2)The interim dividend of Rs.20, 000/- has been paid in 2007-08
(3) Income Tax of Rs.35,000/- was paid during the year 2007-08

As at March 31, 2015 the following balances have been extracted from the books of the Indian Chartered Accountants Recreation Club and you are asked to prepare (1) Trading Account for ascertaining gross profit derived from running restaurant and dining room and (2) Income and Expenditure Account for the year ended March 31, 2017 (3) and a Balance Sheet as at that date.

On March 31, 2016 stock of restaurant consisted of Rs 900 and Rs 60 respectively. Provide depreciations Rs 60 on fixtures and fittings, Rs 390 on billiard table and Rs 560 on furniture.