State the ratio in which the partners share all the accumulated profits, losses and fictitious assets at the time of retirement of a partner.

The current ratio of a company is 3 : 1. State with reason, whether the payment of
Rs.20,000 to the creditors will increase, decrease or not change the ratio.

Inspiring Minds Ltd provides the following information. Calculate cash from financing activities.

Additional Information
(i) Interest paid on debentures RS. 20,000
(ii) Dividend paid RS. 1,00,000
(iii) During the year 2014 - 2015, Inspiring Minds Ltd issued bonus shares in the ratio of 2 : 1 by capitalizing reserve.
Write the values shown by the company in issuing bonus shares.

If 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?

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

X and Y are partners doing a dry cleaning business in Agra, Sharing profits in the ratio 2:1 with capital of Rs.5,00,000 and Rs.4,00,000 respectively. X withdrew the following amounts during the year to pay the hostel expenses of her son.

y withdrew Rs.15,000 on the first day of April, July, October and January to pay rent for the accommodation of his family.He also paid Rs.20,000 per month as rent for the office of partnership which was in a nearby shopping complex.Calculate interest on drawings @ 6% per annum.

P and Q who share profits in the ratio of 3:2 had capitals of RS.4,00,000 and RS.3,00,000 respectively. They agree to admit R into partnership from 1st April, 2015 on the following terms in return for 1/3rd share in future profits.
(i) That R should bring in RS.4,00,000 as capital.
(ii) That as R is unable to bring in his share of goodwill in cash, goodwill of the firm is valued at RS.3,00,000.

Rajeev,Sanjay and  Mohit are partners sharing profits and losses in the ratio of 2:3:5 On 1st April,2015,they decide to change their ratio to 3:3:4 as Rajeev contributes more time to the business

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.

Ayyan Ltd issued 85,000, 12% preference shares Rs 100 each at a premium of Rs 20 per share, payable
(i) Rs 30 on application
(ii) Rs 40 on allotment (including premium)
(iii) Rs 30 on first call
(iv) Rs 20 on second and final call
The company received applications for 1,00,000 shares and the directors approved the following schemes of allotment.
(i) Applicants for 20,000 shares were allotted in full.
(ii) Applicants for 50,000 shares were allotted 50% of the shares applied.
(iii) Applicants for 30,000 shares were allotted \({83}^\frac{1}{2}\) % of the shares applied.
Pass the necessary journal entries

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.

List any two items of operating activities, that are typical of and pertaining to Tyre Industry.

A and B Ltd offered to the public on 1st Apri; 2014, 2,00,00 equity shares and 2,40,000 preference shares of Rs10 each payable as under

Public applied for 2,40,000 equity shares and 90,000 preference shares. Applications for preference shares were accepted in full. Out of applications for equity shares, applications for 20,000 shares were rejected; applications for 1,70,000 shares accepted in full and 30,000 shares were allotted to the remaining applications.
All amounts were received except amount due on call on 2,000 equity shares and 1,000 preference shares. Pass entries in the cash book and journal.

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.

P,Q and R who are presently sharing profits and losses in the ratio of 5:3:2 decide to share future profits and losses in the ratio of 2:3:5 with effect from 1st April,2015.An extract of their balance sheet as at 31st March,2015 is as follows.
                                         Balance Sheet (Extract)
                                         as at 31st March,2015

It is decided that
(i) Land and building be valued at Rs 5,70,000.
(ii) Plant and machinery be depreciated by 15%
(iii) Stock is found overvalued by Rs 76,000
(iv) Provision  for doubtful debts is to be made equal to 5% of the debtors.
(v)An item of Rs 60,000 included in sundry creditors is not likely to be claimed.
(vi)Rent of Rs 8,000 is still outstanding.
(vii) 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.
(viii)Out of total commission received,Rs 6,000 is to be treated as advance commission.This amount was earlier credited to profit and loss account.
(ix) An unaccounted accured income of Rs 2,000 be provided for.
(x) A debtor whose dues of rs 10,000 were written -off as bad debts paid 80% in full settlement.
Pass the necessary journal entries and prepare revaluation account.

Infinity Ltd issued 30,000,10% debentures of Rs.100 each at 6% discount, redeemable at par after 5 years on 1st April, 2014. Issue was fully subscribed. According to the terms of issue, interest is payable on quarterly basis. Interest for the quarter ending 31st March, 2015 was paid on 31st March, 2015.
You are required to pass journal entries for issue of debentures and interest.

The current ratio of a company is 21:1.2. State with reasons which of the following transactions will increase, decrease or not change the ratio.
(i) Redeemed 9% debentures of  Rs.1,00,000 at a premium of 10%.
(ii) Received from debtors Rs.17,000.
(iii)Issued Rs.2,00,000 equity shares to the vendors of machinery.
(iv) Accepted bills of exchange drawn by the creditors Rs.7,000.

From the following trial balance of Aryaman Ltd for the year ended 31st March 2015, prepare statement of profit and loss as per Part II of Schedule III of the Companies Act, 2013.

Additional information
Closing inventory: Materials Rs 2,50,000, work-in-progress Rs 1,30,000, finished goods Rs 2,80,000.Provide for tax @ 35%

Prepare comparative income Statement of Sai Ltd from the following statement of profit and loss.Also Identify the values involved in preparation of comparative statement

Notes to Accounts