A partner has given a loan of Rs.40,000 to firm on 1st July. The Partnership deed is silent as to the interest on partner's loan. State giving reason how much amount of interest on Loan will be allowed on 31st March.

L, M and N are partners.Their fixed capitals as at 31st March, 2014 were: L Rs.50,000, M Rs.1,00,000 and N Rs.1,50,000.Profit for the year 2014-2015 amounting to Rs.60,000 were distributed.Interest on capital was credited @10% per annum instead of 12% per annum.pass the necessary adjusting entry.

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.

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.

Angad, Raman and Harshit are partners in a firm.  They decided to dissolve their firm.  Pass necessary journal entries for the following after various assets (other than cash and bank) and their party liabilities have been transferred to Realisation Account.

(i) There was a stock of Rs. 90,000.  Raman took over 50% of the stock at 10% discount and remaining stock was sold at 40% profit on book value.

(ii) Profit and Loss Account was showing a credit balance of Rs. 15,000 which distributed among the partners.

(iii) A machinery which was not recorded in the books was sold for Rs. 2,000.

(iv) Angad was paid only Rs. 5,000 (in full settlement) for his loan to the firm which amounted to Rs. 5,500.

(v) Realisation expenses amount to Rs. 5,000 paid by Harshit.

(vi) There were 100 shares of Rs. 10 each in D.C.M.  Ltd. acquired at cost of Rs.1,200 which had been written off completely from the books.  These shares are valued at Rs. 9 each and divided among the partners in their profit sharing ratio.

At the time of forfeiture of shares, with what amount the share capital account is debited?

Saya Ltd has 20,000, 7% debentures on 100 each due for redemption on 31 st March, 2015. There is a balance of Rs 3,50,000 in debenture redemption reserve account on the date of redemption Investment, as required by the Companies Act, 2013 is made in fixed deposit bearing interest 6% per annum. Bank deducted TDS @ 10% on its maturity which is 31st March, 2015. Pass journal entries at the time of redemption of debentures.

Under what heads and sub-heads, will the following items appear in the balance sheet of a company?
(i) Shares in X Ltd              ( ii) Securities premium reserve
(iii) Loose tools                  (iv) Prepaid insurance
(v) Work-in-progress           (vi) Outstanding repair bill

Who are mainly interested in liquidity ratios?

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.

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.

Kumar Ltd. purchased assets of Rs.6,30,000 from Bhanu Oil Ltd. Kumar Ltd. issued equity share of Rs.100 each fully paid in consideration. What journal entries will be made, if the shares are issued, (a) at par, and (b) at premium of 20%.

Mona Ltd has issued 20,000, 9"% debentures of Rs 100 each on 31st March, 2014, of which half the amount is due for redemption on 31st March, 2015. The company has its debenture redemption reserve account a balance of 5,00,000. Record the necessary journal entries at the time of redemption of debentures.  

The working capital of Washington Ltd is Rs.10,00,000. Its total debts amount to Rs.25,00,000, out of which long-term debts are of Rs.20,00,000.
Calculate the current ratio of Washington Ltd.