G and M were partners in a firm sharing profits in the ratio of 5:3 their fixed capitals were Rs.3,00,000 and Rs.2,00,000 respectively. the partnership deed provided that
(i) Interest on capital should be allowed @12% per annum.
(ii)G should be allowed a salary of Rs.40,000 per annum for extra time he devotes to business.
(iii) A commission of 5% of the net profit should be allowed to M for his extra efforts in marketing for the firm.
the net profit for the year ended on 31st March, 2015 was rs.2,00,000. prepare profit and loss appropriation account.Also, identify the values shown by the firm

R, S and T are partners in a firm sharing profits in the ratio of 2:1:1 respectively.Firm closes its accounts on 31st March every year.S died on 30th September, 2015.There was a balance of Rs.1,25,000 in capital account in the beginning of the year.In the event of death of any partner, the partnership deed provides for the following
(i)Interest on capital will be calculated at the rate of 6% per annum.
(ii)The executor deceased partner shall be paid Rs.24,000 for his share of goodwill.
(iii)His share of profit till the date of death will be calculated on the basis of sales.It is also specified that the sales during the year 2014-15 were Rs.4,00,000.The sales from 1st April, 2015 to 30th Sptember, 2015 were Rs.1,20,000.The profit of the firm for the year ending 31st March, 2015 was Rs.2,00,000
Prepare capital account to be presented to his executor.

Himalaya Company Limited issued for public subscription of 1,20,000 equity shares of Rs 10 each at a premium of Rs 2 per share payable as under :

Applications were received for 1,60,000 shares. Allotment was made on pro-rata basis. Excess money on application was adjusted against the amount due on allotment.
Rohan, whom 4,800 shares were allotted, failed to pay for the two calls. These shares were subsequently forfeited after the second call was made. All the shares forfeited were reissued to Teena as fully paid at Rs 7 per share.
Record journal entries in the books of the company to record these transactions relating to share capital. Also show the company’s balance sheet.

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 half-yearly basis.
Pass journal entries for the year ended 31st March, 2014.

Calculate the amount of gross profit, if average stock Rs.80,000, inventory turnover ratio 6 times, selling price 25% above cost.

Kamya Ltd. paid the installment of Rs. 20,000 for furniture purchased on credit, in which, interest of Rs. 2,000 was included.  How will you show this payment at the time of preparation of cash flow statement.

Nonu and Monu are partners in a firm sharing profits and losses in the ratio of 3:2 with capitals of RS.2,40,000 and RS.1,60,000 respectively. The amount of capital carries interest @ 10% per annum. They admit Sonu into the partnership with effect from 1st January, 2015 on the following terms
(i) Sonu is to bring in RS.20,000 for his share of goodwill in cash.
(ii) Sonu is to contribute RS.2,50,000 as his share of capital.
(iii) The partners' capitals will carry interest @ 12% per annum.
(iv) The new profit sharing ratio of Nonu, Monu and Sonu will be 9:6:4.
(v) Nonu will be entitled to 5% commission on net profit.
(vi) The profits for the year ending on 31st March, 2015 before providing for Nonu's commission and interest on partners' capitals amounted to RS.1,60,000.
Prepare profit and loss appropriation account for the year ending on 31st March, 2015.

The balance sheet of A, B and C who were sharing profits and losses in the ratio of 1/2, 1/3 and 1/6 respectively, was as follows on 1st April, 2014                   

A retired from the business on 1st April, 2014 and his share in the firm was to be ascertained on the revaluation of the assets as follows
Stock Rs.20,000; furniture Rs.3,000; plant and machinery Rs.9,000; building Rs.20,000; Rs.850 was to be provided for doubtful debts.The goodwill of the firm was valued at Rs.6,000.
A was to paid Rs.11,500 in cash on retirement and the balance in three equal yearly instalment with interest at 9% per annum.
Prepare revaluation account and partners' capital accounts on the date of A's retirement and A's loan account till final payment is made to him.

Rv Corp Ltd issued 40,000 equity shares of Rs10 each at a premium of Rs.2 payable along with application. The Public applied for 48,000 shares.
Pass necessary journal entries when
(i) Excess shares are rejected.
(ii) Pro-rata allotment is made
(iii) Application for 2,500 shares are rejected and the remaining are allotted shares on a pro-rata basis.

Maharana Ltd's main business is manufacturing of tyres. The company is very particular about the observation of the provisions of the Companies Act. On 1st April, 2013, the company issued Rs18,00,000, 8% debentures of Rs 100 each. The debentures were redeemable at a premium of 5%. On 31st March, 2016, all the debentures were redeemed. Since the manufacturing of tyres results in air pollution, the company had installed a plant for its effective control.
Pass necessary journal entries for the redemption of debentures. Also identify the value observed by Maharana Ltd. It is assumed that the company has adequate balance in debenture redemption reserve account.

The quick ratio of Zumbo Ltd is 1.5 : 1. Its inventory amounts to  Rs.50,000 and its current liabilities are of Rs.1,50,000. Find its current ratio.