Goodwill is a/an :

Which is not a method to calculate the goodwill?

At the time of admission of a new partner, general reserve is:

In the revaluation account a decrease in the value of plant and machinery:

An account prepared to carry out the scheme of revaluation of assets and reassessment of liabilities :

Revaluation of assets on the reconstitution of partnership is necessary because their present value may be different from their _____

The partnership may come to an end due to the:

In case of retirement of a partner full good will is credited to the accounts of:

If a partner takes over an asset of the firm, his capital account:

Upon the sale of an established business its good will:

Share allotment is a:

The minimum share application money is:

At the time of issue of debentures, Debenture account is

Premium on redemption of debentures is in the nature of

Nature of financial statement

What are the objectives of financial statement

Dividend paid by a Trading company is classified under which kind of activity while preparing cash flow statement

Which of the following is regarded as apt to show the purchase of a fixed asset?

On what basis the receipts and payments account is prepared?

X,Y and Z are partners in a firm.  During the year the firm earned Rs. 15,000 and it was distributed equally among the partners but this profit had been distributed after giving Y's salary Rs. 3,000 (which was omitted) in the ratio 4 : 3 : 5.  Give an adjustment entry.

P, Q and R shared the profits of rs.75,000 in the ratio of 2 : 2 : 1 but the partnership deed was silent as to the profit sharing ratio.Pass the necessary adjusting entry.

On the admission of C, A and B decide to record an unrecorded asset worth RS.2,000. State whether the revaluation account will be debited or credited.

Mohan and Sohan are partners in a firm sharing profits and losses in the ratio of 3:2. They admit Rohan as a new partner for 1/5th share. The goodwill of the firm is valued at RS.30,000. Goodwill already appears in the books at RS.15,000. Rohan brings in 60% of his share of goodwill and RS.1,20,000 as his capital in cash. The amount of goodwill brought in cash is withdrawn by the concerned partners to the extent of 30% of what is credited to them. The profits for the first year of new partnership amounted to RS.60,000.
Give necessary journal entries to adjust goodwill and to distribute profits.

In which ratio is goodwill already existing in the books of account written-off?

S,U and V are partners sharing profits in the ratio of 2:3:4 They decided to share future profits in the ratio of 2:2:1.On the date.following balances appeared in the balance sheet.

Pass necessary journal entries.

Give the journal entry to distribute workmen Compensation Reserve of Rs.70,000 at the time of retirement of Neeti, when there is a claim of Rs.25,000 against it. The firm has three partners Raveena, Neeti and Rajat.

Following is the balance sheet of A and B who share profits and losses in the ratio of 3:2 as at 31st March, 2018

On the above date, the firm was dissolved and the following arrangments were made.
(i) A promised to pay MRs. A's loan and took half of the investments @10% discount.
(ii) Stock and remaining investments were sold @ 10% discount.
(iii) Goodwill was taken by B for Rs..40,000. He also agreed to pay bills payable at a discount of 10%.
(iv) DebtoRs. realised Rs. 35,000, bills receivable Rs..13,500, plant and machinery Rs. 38,900 and building Rs. 1,20,000.
(v) There was a car in the firm, which was completely written off from the books. It was taken over by A for Rs..23,400.
(vi) CreditoRs. were paid 90% in full and final settlement of their dues.
(vii) Expenses of dissolution amounted to Rs.1,7000.
Prepare realisation account, capital accounts of partneRs. and bank account in the books of the firm.

Pass the necessary journal entries for the following transactions on the dissolution of the firm of A and B.

(i) A promised to pay off Mrs A's loan of Rs1,00,000 and took away the stock (Rs1,00,000) at 20%discount.

(ii) B took away half the investment (Rs2,00,000) at 10% discount.

(iii) Debtors (Rs4,00,000) falling due after 10 months were realised at a discount of 6% per annum.

(iv) Creditors and bills payable (Rs7,60,000) falling due after 1 month were paid @6% discount per annum.

(v) Fixed assets realised Rs71,000 and remaining investment realised Rs90,000.

(vi) There was an old furniture which has been written-off completely from the books B agreed to take away the same at the price of Rs6,000.

(vii) Realisation expenses were Rs20,000 paid by A.

A company purchased a running business from Zee Ltd for a sum of Rs 15,00,000 payable Rs 12,00,000 in fully paid shares of Rs 10 each and balance through cheque. The assets and liabilities consisted of the following

You are required to pass necessary journal entries in the company's books.

A Ltd forfeited 300 shares of Rs 10 each fully called-up, held by Zee for non-payment of allotment money of Rs 3 per share and final call of Rs 4 per share. He had paid the application money of Rs 3 per share. These shares were re-issued to Cee for Rs 8 per share. Pass necessary journal entries.

Vishesh Ltd. issued 10,000, 10% debentures of Rs.100 interest on Debentures each on 1st April 2012. the issue was fully subscribed. According to the terms of issue, interest on the debentures is payable half-yearly on 30th September and 31st March and the tax deducted at source is 10%. Pass necessary journal entries related to the debenture interest for the half-yearly ending 31st March, 2013 and transfer of interest on debentures of the year to the Statement of Profit and Loss.

Bharat Ltd. had an authorized capital of Rs.20,00,000 divided into 2,00,000 equity shares of Rs.10 each. The company issued 1,00,000 shares and the dividened paid per share was Rs.2 for the year ended 31.03.2008. The management of company decided to export its products to the neighbouring countries Nepal, Bhutan, Sri Lanka and Bangladesh. To meet the requirement of additional funds the financial manager of the company put up the following three alternatives before its Board of Directors:

 (i) Issue 54,000 equity shares.

 (ii) Obtain a loan from Import and Export Bank of India. The loan was available at 12% per annum interest.

 (iii) To issue 9% Debentures at a discount of 10%.

After comparing the available alternatives the company decided on 01.04.2008 to issue 6,000; 9% debentures of Rs.100 each at a discount of 10% . These debentures were redeemable in four instalments starting from the end of third year. The amount of debentures to be redeemed at the end of third, fourth, fifth and sixth year was as follows:      

Prepare 9% Debenture Account from the years 2008-09 to 2013-14.

A company has called Rs 7 against nominal (face) value of Rs 10 of the share. Will it be shown as subscribed and fully paid or subscribed but not fully paid?

Under what heads and sub-heads, will the following items appear in the balance sheet of a company?
(i) Capital reserve                        (ii) Work-in-progress
(iii) Capital redemption reserve     (iv) Brands/Trademarks
(v) Vehicles

How is a Company's balance sheet different from that of a Partnership firm? Give Two point only.

Calculate Fixed Assets turnover ratio
Cost of goods sold: Rs. 16,80,000
Gross profit = Rs. 5,60,000
Capital employed = Rs. 43,00,000
Working captial = Rs. 80,000

The following information is provided to you:

Trade Receivables turnover ratio:4 times, inventory turnover ratio :8 times, Current ratio:3, Average Trade Receivables: Rs.1,80,000, Working capital turnover ratio:8 times, Cash Revenue from Operations:25% of total revenue from operations, Gross profit ratio:33\({1\over3}\)%.

Closing Inventory: Rs.10,000 in excess of opening Inventory.

Based on the above information calculate any two (a)Revenue from Operations 

(b)Cost of Revenue from Operations and (c)Closing Inventory.

Umesh Ltd.'s Debt Equity Ratio is 2:1. State with reason whether this will increase, decrease or there will be no change in it due to the following transactions:
(i) A trade payable of Rs.5,000 was paid
(ii) Issued equity shares of Rs. 2,00,000.
(iii) Issued 9% Debentures of Rs.1,000.

XYZ Finance Ltd, a company engaged in providing loans and investing into shares has received dividend on shares.The accountant has sought your advice on depicting it in the cash flow statement.Give your advice with reasons.

Payment of dividend is classified or shown as financing activity for both non-finance and finance company.Do you agree?

State the meaning of Income and Expenditure Account.

What are the features of Receipt and Payment Account?

Calculate interest on drawings of Mr.Ghai @ 10% per annum for the year ended 31st March 2018, in each of the following alternative cases
Case I If he Withdrew Rs.15,000 in the beginning of each quarter.
Case II If he Withdrew Rs.15,000 at the end of each quarter.
Case III If he Withdrew Rs.15,000 during the middle of each quarter.

Rochelle and Mandana are partners sharing profits and losses in the ratio of 3:2. Keith is admitted as a partner for 1/5 share. Make entries in the firm's journal, the following adjustments.
(i) The value of buildings increased by RS.2,00,000.
(ii) The landlord has decided to waive the outstanding rent, of RS.5,000 appearing in the books.
(iii) Prepaid insurance RS.2,500 is to be brought into account.
(iv) Investments and investment fluctuation fund appear in the balance sheet at RS.50,000 and RS.5,000 respectively. Presently, the value of investments is RS.42,000.
(v) On 31st December, 2015, goods of RS.20,000 were received by the firm on account of credit purchases. This transaction has not yet been recorded in the books of the firm. (Unrecorded creditors of RS.20,000 and unrecorded stock of RS.20,000).

(i)P,Q and R are partners sharing profits and losses in the ratio of 5:3:2  They decide to share future profits in the ratio of 2:3:5 with effect from 1st April,2015. The following items appear in the balance sheet as at 31st March 2015
General reserve Rs 90,000 ,contingency reserve Rs 15,000 profit and loss account (Dr) Rs 60,000
(ii)Pass the necessary journal entries ,when those accounts are not required to be shown in the books of reconstituted firm.

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.

P, Q and R are partners in a firm in the ratio of 5 : 3 : 2. On 31st December, 2010 the firm was dissolved.  On dissolution, the following particulars are available :

(i) Assets realised Rs. 1,70,000 after a loss of Rs. 20,000.

(ii) Liabilities were paid Rs. 27,000 including an unrecorded liability of Rs. 1,000.

(iii) Realisation expenses paid Rs. 700.

(iv) On the date of dissolution, partners' capital was in the ratio of 2 : 2 : 1.

Prepare Realisation Account, Partners' Capital Accounts and Cash Account.

A company forfeited 100 equity shares of Rs 10 each issued at a premium of 20% for non-payment of final call of Rs 5 including the premium. Show the journal entry to be passed for forfeiture of shares.

Arihant Ltd purchased a machinery from Vidya Ltd for an agreed purchase consideration of  Rs.11,52,000 to be satisfied by the issue of 9% debentures of Rs.100 each at 4%discount. Journalise the transactions.

Calculate revenue from operations, other income and total revenue of a financial company from the following information.Interest received on loans disbursed Rs 10,20,000, dividend received on investment in equity Rs 1,80,000, profit on sale of assets of business Rs 2,00,000, other incomes Rs 10,000.

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

Net sales of Kamayani Sarees was Rs.3,75,000. It's gross profit amounted to Rs.75,000. The opening inventory was Rs.25,000, which was Rs.5,000 more than the closing inventory. Calculate it's stock turnover ratio.

Following Particular are taken from note to accounts to the Balance Sheets of Vijay Ltd. as on 31.03.2014 and 31.03.2015.  Prepare a Cash Flow Statement.

Additional Information :
(i) During the year, Rs. 50,000 depreciation was charged on fixed tangible assets.
(ii) A piece of machinery included in fixed assets, costing Rs. 10,000 in which depreciation charged was Rs. 4,000 sold for Rs. 5,000

From the following extract of Receipt and Payment Account and the additional information, compute the amount of income from subscriptions and show as how they would appear in the Income and Expenditure Account for the year ending March 31, 2015 and the Balance Sheet.

Receipt and Payment Account for the year ending  March 31, 2015

Additional Information: Rs.
1. Subscriptions outstanding March 31, 2014 8,500
2. Total Subscriptions outstanding March 31, 2015 18,500
3. Subscriptions received in advance 4,000 as on March 31, 2014.

Average net profit firm is Rs.3,00,000.Total tangible assets in the firm are Rs.28,00,000 and outside liabilities are Rs.8,00,000.In the same type of business, the normal rate of returns is 10% of the capital employed.
Calculate value of goodwill by capitalisation of super profit method.

On 1st April, 2012, Sahil and Charu entered into partnership for sharing profits in the ratio of 4:3 They admitted Tanu as a new partner on 1st April, 2014  for 1/5th share which she acquired equally from Sahil and Charu. Sahil, Charu and Tanu earned profits at a higher rate than the normal rate of return for the year ended 31st March, 2015. Therefore, they decided to expand their business. To meet the requirements of additional capital, they admitted Puneet as a new partner on 1st April, 2015 for 1/7th share in profits which he acquired from Sahil and Charu in 7:3 ratio.
Calculate
(i) New profit sharing ratio of Sahil, Charu and Tanu for the year 2014-15.
(ii) New profit sharing ratio of Sahil, Charu, Tanu and Puneet on Puneet's admission.

The balance sheet of Raj,Rohit and Rohan who are sharing profits in the ratio of 2:3:1, as at 31st March,2015 is given below
                                        Balance sheet 
                                      as at March,2015

Raj,Rahul and Rohan decide to alter their profit sharing ratio as 3:2:1 from 31st April 2015.
(i) Goodwill is to be valued at 2 years purchase of average of last three completed years The profits were-------Year 1 Rs 96,000 year II Rs 1,86,000  year III Rs 2,76,000.
(ii)Land and building was found undervalued by Rs 40,000 and stock was found overvalued by Rs 76,000.
(iii)Provision for doubtful debts is to be made equal to 5% of the debtors.
(iv) Claim on account of workmen compensation is Rs 16,000.
(v) 10% of the sundry creditors be written back as no longer payable.
(vi) Out of the amount of insurance  which was debited entirely to profit and loss account,Rs 10,000 be carried forward as an unexpired insurance.
Prepare the necessary ledger accounts and the balance sheet.

Nandan, Jhon and Rose are partners sharing profits in the ratio of 4:3:2.On 1st April, 2015, John gave a notice to retire from the firm.Nandan and Rosa decided to share future profits in the ratio of 1:1.The capital accounts of Nandan and Rosa after all adjustments showed a balance of Rs.43,000 and Rs.80,500 respectively.The total amount to be paid to John was Rs.95,500.This amount was to be paid by Nandan and Rosa in such a way that their capitals become proportionate to their new profit sharing ratio.Pass necessary journal entires in the books of the firm for the above transaction.show your working clearly.

Pass the necessary journal entries for the following transactions on the dissolution of the firm of A, B and C (who were sharing profits in the ratio of 4:3:3) after the transfer of all asset (other than cash) and external liabilities to realisation account.
(i) K, a creditor, to whom Rs6,000 were due to be paid, accepted office equipment Rs4,000 and the balance was paid to him in cash.
(ii) L, a creditor, to whom Rs16,000 were due to be paid, took over machinery at Rs20,000. Balance was paid by him in cash.
(iii) M, an unrecorded creditor of Rs9,000 was paid by A at a discount of 10%.
(iv) The amount of sundry liabilities (including creditors) was Rs2,00,000 appearing on the balance sheet, paid off in full
(v). An unrecorded computer of Rs5,000 was taken over by B at discount of 10%
(vi) C's loan of Rs10,000 was discharged along with accrued interest of Rs200(Not Yet recorded)
(vii) The loss on dissolution was Rs10,000.

Cambridge Ltd issued 50,000 shares of Rs 10 each at a premium of Rs 2 per share, payable as follows

Rs 3 on application, Rs 6 on allotment (including premium) and Rs 3 on call.

Applications were received for 75,000 shares and a pro-rata allotment was made as follows To the applications of 40,000 shares, 30,000 shares were issued and for the rest, 20,000 shares were issued. All money due were received except the allotment and call money from Tom who had applied for 1,200 shares (out of group of 40,000). All his shares were forfeited. The forfeited shares were re-issued for Rs 7 per share fully paid-up.

Pass necessary journal entries for the above transactions.

Bhim Ltd issued 20,000, 9% debentures of Rs.50 each at a discount of 8% redeemable at par at any time after 9 years. Record necessary entries in the books of Bhim Ltd.

Compute cost of materials consumed from the given information.

From the following statement of profit and loss of Fenox Ltd for the year ended 31st march,2015, prepare a comparative statement of profit and loss.

Rate of income tax was 40%

The credit sales of Mis Sun Farms Ltd amounted to Rs.10,50,000. Its debtors and bills receivables at the end of the accounting period amounted to Rs.1,00,000 and Rs.75,000 respectively. Calculate its debtor's turnover ratio and also collection period in terms of days, weeks and months.

From the following information, prepare a cash flow statement.

Notes to Accounts

Additional Information
(i) During the year, plant and machinery with a net book value of Rs.22,500 (accumulated depreciation Rs.67,500) were sold for Rs.18,000.
(ii) During the year, investment costing Rs.1,80,000 was sold at a profit of 121/2% on cost, which is transferred to capital reserve and also investment costing Rs.1,80,000 was purchased.
(iii) Tax of Rs.1,23,750 was paid during the year.
(iv) At the beginning of the year, debentures of Rs.2,25,000 were redeemed at par.
(v) Interest on debentures paid during the year Rs.49,500.
Identify the values being conveyed by the company by paying income tax.

Receipt and Payment Account of Shankar Sports club is given below, for the year ended March 31, 2017

Prepare Income and Expenditure Account and Balance Sheet with help of following Information:
Subscription outstanding on March 31, 2016 is Rs 1, 200 and Rs 2,300 on March 31, 2017, opening stock of postage stamps is Rs 300 and closing stock is Rs 200, Rent Rs 1,500 related to 2015 and Rs 1,500 is still unpaid.
On April 01, 2016 the club owned furniture Rs 15,000, Furniture valued at Rs 22,500
On March 31, 2017. The club took a loan of Rs 20,000 (@ 10% p.a.) in 2017.