Profit or loss on revaluation is shared among the partners in:

Who should compensate to whom in case of change in profit sharing ratio of existing partners?

Good will of the firm is valued Rs. 30000. C an incoming partner purchase 1/4 share of total profit Good will be raised in the books.

In the revaluation account an increase in the value of land and building:

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

 Accounting Standard ____ requires goodwill should be recorded in the books of accounts only when some money or money’s worth is paid for it.

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

An account operated to ascertain the loss or gain at the death of a partner is called:

At the time of dissolution:

If no provision is made in agreement regarding the duration of the partnership:

Other name for registered capital is:

The minimum share application money is:

When debentures are issued as secondary securities it is called

Premium on redemption of debentures is in the nature of

What is the limitations of financial statement

The two basis measure of liquidity are

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

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

Rent expense of a non-profit organization paid in advance. Which of the following is the correct classification of rent?

XYZ club has a bar that maintains a separate trading account for its trading activities. Which of the following is the treatment of profit or loss on bar trading activities?

A and B start business on July 1, 2004, each partner contributing Rs. 1,50,000 as his share of capital.  Three months later, on October 1, 2004, B makes an additional contribution of Rs. 1,00,000 which is treated as a loan.  The profit for the period ending March 2005 was Rs. 85,000 before charging any interest or salary.  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 2005.  Prepare the Profit and Loss Appropriation Account for the period ended March 31,2005.

How is interest drawings calculated, if the drawings are made at regular intervals as on the first day of each month?

State with reason, whether at the time of admission of a partner, partnership is dissolved or partnership firm is dissolved.

At what figures, the assets and liabilities appear the books of reconstituted firm in case a revaluation account is prepared?

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

L,M and N are partners sharing profits in the ratio of 3:2:1 respectively.From 1st April,2014 they decided to share profits in the ratio of 2:3:1 The partnership deed provides that in the event of any change in profit sharing ratio, the goodwill should be valued at three years purchase of the average of five years profits.The profits and losses of the precedding five years are
Profit:1------Rs 1,44,000;  II-----Rs 3,60,000; III---- Rs 4,08,000; IV----4,56,000
Loss:V---- Rs 1,68,000.
Showing the working clearly, give the necessary journal entry to record the above change.

P, Q and R were partners in a firm sharing profits in the ratio of 5:4:3.Their capitals were Rs.40,000, Rs.50,000 and Rs.1,00,000 respectively.State the ratio in which the goodwill of the firm amounting to Rs.1,20,000 will be adjusted on the retirement of R.

Can an retiring partners or legal representative of a deceased partner share in the subsequent profit?

All the partners of a firm want to dissolve the firm. Sonu, a partner wants that his loan of Rs 32,000 should be paid off before the payment of Mrs Monu's loan. But Monu, another partner wants that Mrs Monu's loan must be paid before the payment of Sonu's loan. Who is correct?

Realisation account shows profit of Rs1,00,000. In which ratio will it be shared by the partners?

Sundram Ltd purchased furniture for Rs 3,00,000 from Ravindram Ltd Rs 1,00,000 were paid by drawing a promissory note in favour of Ravindram Ltd. the balance was paid by issue of equity shares of Rs 10 each at apremium of 25%.

Pass necessary journal entries in the books of Sundram Ltd. Also, identify the value shown by the company in issuing shares for consideration other than cash,

X Ltd purchased machinery for Rs 5,00,000 from Y Ltd. Half of the amount was paid by accepting a bill of exchange drawn by Y Ltd payable after three months. The balance was paid by issue of equity shares of Rs 10 each at a premium of 25%.

Pass necessary journal entries in the books of X Ltd for these transactions.

What is meant by redemption of debentures at a premium ?

Mention any one difference between premium on issue of debentures and premium on redemption of debentures

Satish is interested in investing in Data Unlimited, a company providing 4G services.However, before investing, his financial advisor who undoubtedly is his wife, advises him to go through the financial statements of the company.Satish falls under which category of user?

Gyan Ltd issued 10,000, 10% debentures of Rs 100 each on 1st October 2014 to be redeemed on 30th September 2021. How will it be shown in the balance sheet?

Given below is the information extracted from the books of Shyam Ltd.:

Prepare a Comparative Statement of Profit and Loss for the year 2012-13 on the basis of the above information.

Prepare a comparative statement of profit and loss from the following details.

If gross profit ratio of a firm is 33.33%, then what does it indicate?

Calculate operating ratio, if operating profit ratio is 60%.

Dividend received by a finance company will come under which activity while preparing a cash flow statement?

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.

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?

Preeti and Ranta started business on 1st April, 2017 with capital of Rs.15,00,000 and Rs.9,00,000 respectively.On 1st October, 2017, they decided that their capital should be Rs.12,00,000 each. The necessary adjustment in capitals were made by introducing or withdrawing by cheque. Interest on capital is allowed @ 8% per annum. compute interest on capital for the year ending 31st March,2018.

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).

Shristi,Mehak and Ayushi are patterns in a firm, sharing profits in the ratio of 4:5:3 An extract of their balance sheet ,as a 31st December 2014 is given below
                                          Balance Sheet(An extract )
                                           as at December,2014

With effect from 1st January 2015,they decided to share profits equally.Claim on account of workmen compensation is estimated at Rs 6,000 Give the necessary journal entries relating to the adjustment of accumulated profits and losses.

L, M and N are partners in a firm sharing profits in the proportion of 3:2:1.Their balance sheet on 31st March, 2015 stood as follows
                     Balance Sheet
                as at 31st March, 2015

M died on 30th June and her executors are entitled to be paid as under
(i)Capital to her credit at the time of her death and interest thereon @10% per annum.
(ii)Her proportionate share of general reserve.
(iii)Her share of profits for the intervening period will be based on the sales during that period.Sales were calculated as Rs.1,20,000.The rate of profit during past three years had been 10% on sales.
(iv)Goodwill according to her share of profit to be during p[ast by taking twice the amount of profits of the last three years less 20%.The profits of the previous three years were: I=-Rs.8,200,, II=Rs.9,000, III=Rs.9,800.
The investments were sold at par and her executors were paid out.Prepare M's capital account and her executor's account.

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.

DP Shah Company Ltd made an issue of 1,00,000 equity shares of Rs 10 each at a premium of 30% payable as follows

On application Rs 3.50 per share, on allotment Rs 6.50 per share, balance on first and final call.

Applications were received for 2,00,000 equity shares and the directors made pro-rata allotment. Harsh, who had applied for 1,600 shares did not pay the allotment and final call money, as a result his shares were forfeited. Later on, 60% of the forfeited shares were re-issued at Rs 8 per share fully paid-up.

Pass necessary journal entries for the mentioned transactions in the books of the company.

Zee Ltd purchased plant and machinery for Rs.2,00,000 payable as Rs.40,000 in cash and balance by allotment of 6% debentures of Rs.1,000 each at a premium of 25%. Journalise the above transactions.

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 statement of profit and loss, prepare comparative income statement of Sai Ram Ltd.

Following is the statement of profit and loss of Rohan Ltd. Calculate the inventory turnover ratio.
                                  Statement of Profit and Loss
                              for the year ended 31st March 2015

Notes to Accounts

While preparing cash Flow Statement of Alka Ltd. 'dividend paid' was shown as an operating activity by the accountant of the company. Was the correct in doing so? Give reason.

Explain the statement: “Receipt and Payment Account is a summarised version of Cash Book”.

L, M and were partners in a firm in a firm sharing profits in ratio of 3:4:5. their fixed capital were Rs.4,00,000, Rs.5,00,000 and Rs.6,00,000 respectively.the partnership deed provide for the following
(i) Interest on capital @6% per annum
(ii) Salary of Rs.30,000 per annum to N.
(iii) Interest on Partner's drawings will be charged @12% per annum.
During the year ended 31st March,2015, the firm earned a profit of Rs.2,70,000. L withdrew Rs.10,000 on 1st April, 2017, M withdrew Rs.12,000 on 30th September, 2017 and N withdrew Rs.15,000 on 31st December, 2017. Prepare profit and loss appropriation account for the year ended 31st March, 2018.

A and B were partners sharing profits in the ratio of 3:2. On 31st December, 2015, their balance sheet was as follows
                                    Balance Sheet
                           as at 31st December, 2015

On the above date, C was admitted into partnership on the following terms
(i) C was to pay RS.40,000 as capital and RS.20,000 as goodwill for 1/4th share in profits.
(ii) Land and Buildings were to be revalued at RS.90,000 and plant and machinery at RS.50,000. Stock was to be written down by RS.4,000. Creditors included RS.1,000 no longer payable.
(iii) Capital of partners of the new firm were to be in the profit sharing ratio and for this purpose current accounts were to be opened.
Prepare revaluation account, partners' capital accounts and balance sheet.

Kumar,Gupta and Kavita were partners in a firm sharing profits and loses equally.The firm was engaged in the storage and distribution of canned juice and its godowns were located at three different places in the city.Each godown was being managed individually by Kumar Gupta and Kavita Because of increase in business activities at the godown managed by Gupta, he had to devote more time.Gupta demanded that his share in the profits of the firm be increased,to which Kumar and Kavita agreed. The new profit sharing ratio was agreed to be 1:2:1.
For this  purpose,the goodwill of the firm was valued at two years purchase of the average profits of last five years.
The profits of the last five years were as follows                              

,You are required to 
(i)Calculate the goodwill of the firm.
(ii) Pass necessary journal entry for the treatment of goodwill on change in profit sharing ratio of Kumar, Gupta and Kavita.

Following is the balance sheet of Ram, Mohan and Sohan as at 31st December, 2010.
                                  Balance Sheet
                          as at 31st December, 2010

Ram, Mohan and Sohan shared profit and losses in the ratio 2:2:1.Sohan died on 31st March, 2011.Under the partnership agreement, the executors of Sohan were entitled to
(i)Amount standing to the credit of his capital account.
(ii)Interest on capital which amounted to Rs.150.
(iii)His share of goodwill Rs.5,000.
(iv)His share of profit from the closing of last financial year to the date of death which amounted to Rs.750.
Sohan's executors were paid Rs.1,400 on 1st April, 2011 and the balance in four equal yearly instalments from 31st March, 2012 with interest @6% per annum.
Pass necessary journal entries and draw up Sohan's account to be rendered to his executors and Sohamn's executor's account till it is finally paid.

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.

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.

Manish Ltd issued Rs 38,00,000, 8% debentures of Rs 100 each on 1st April, 2013. The terms of issue stated that the debentures were to be redeemed at a premium of 5% on 30th June, 2015. The company decided to transfer out of profits Rs 5,00,000 to debenture redemption reserve on 31st March, 2014 and Rs 4,50,000 on 31st March, 2015.
Pass necessary journal entries regarding the issue and redemption of debentures, without providing for either the interest or loss on issue of debentures.

Calculate revenue from operations, other income and total revenue of a financial company from the following information.
Miscellaneous income Rs 10,000, interest on loans Rs 60,00,000, divident Rs 2,00,000, profiton sale of building Rs 30,00,000.

Rearrange the following in the form of a comparative income statement or statement of profit and loss.

Calculate inventory turnover ratio from the data given below
Inventory at the beginning of the year Rs.10,000, inventory at the end of the year Rs.5,000, carriage Rs.2,500 revenue from operations i.e. sales Rs.50,000, purchases Rs.25,000.

From the following, calculate the net cash flow from operating activities.
 

Note to Accounts

Additional Information
During the year, a piece of machinery costing Rs.30,000 on which depreciation charged was Rs.10,000 was sold for Rs.10,000.Depreciation provided on fixed assets Rs.30,000.Dividend on equity shares@8% was paid on opening balance.Income tax Rs.22,500 was provided.Additional debentures were issued at par on 1st October 2013 and bank loan was repaid on the same date.At the end of the year, preference shares were redeemed at a premium of 5%.

Receipt and Payment Account of Maitrey Sports Club showed that Rs 68,500 were received by way of subscriptions for the year ended on March 31, 2017.
The additional information was as under:
1. Subscription Outstanding as on March 31, 2016 were Rs 6,500,
2. Subscription received in advance as on March 31, 2016 were Rs 4,100,
3. Subscription Outstanding as on March 31, 2017 were Rs 5,400,
4. Subscription received in advance as on March 31, 2017 were Rs 2,500.
Show how that above information would appear in the final accounts for the year ended on March 31, 2017 of Maitrey Sports Club.