State the purpose of preparing a 'cash flow statement'.

Give one transaction which may result into outflow of cash and one which may result into no flow of cash.

Which values are reflected by a business in preparing a cash flow statement?

What are the various activities classified as per AS-3(revised) related to cash flow statement?

State one objective of cash flow statement.

Quick ratio of a company is 1.5:1. State giving reason whether the ratio will improve, decline or not change on payment of dividend by the company.

The debt-equity ratio of a company is 0.8:1. State whether the long-term loan obtained by the company will improve, decrease or not change the ratio.

What will be the operating profit ratio if operating ratio is 83.64%? 

The gross profit ratio of a company is 50%. State with reason whether the rent received by Rs.15,000 will increase, decrease or not change the ratio.

A business has a current ratio of 3:1. Its networking capital is Rs.4,00,000 and its stocks are valued at Rs.2,50,000. Calculate the quick ratio. Is it satisfactory? Identify the value shown by the company in maintaining such a quick ratio

Why is the government interested in analysing financial statements ? 

State any one limitation of financial Statement Analysis.

State how qualitative aspects are ignored in financial statement analysis

What is meant by Common-size Statement of Profit and Loss'?

Give the example of Horizontal Analysis.

Name the two basic financial statements of a company as per Schedule III part I of the Companies Act,2013.

What is the number of major heads which appear for the equity and liabilities items of company's Balance Sheet?

Which Schedule and act prescribes the form for Companies Balance Sheet?

Define operating cycle

What is an accounting period in case of a company?

What is meant by 'Debenture'? 

What is meant by convertible debentures? 

Why would an investor prefer to invest in debentures of a company rather than in its shares? 

Give the meaning of issue of debentures as a collateral security.

What is meant by irredeemable debentures? 

Give the definition of a share.

Give the meaning of 'registered capital' of a company.

What is meant by 'reserve capital' ?

What is meant by capital reserve?

Give the meaning of 'Minium Subscription'.

Give any one difference between reconstitution of firm and dissolution of a firm.

Distinguish between 'Dissolution of Partnership' and 'Dissolution of Partnership Firm' on the basis of  Settlement of accounts.

Why is the balance at bank never transferred to the realisation account on the dissolution of partnership firm?

How are assets taken over by a partner be recorded in the partnership books on dissolution?

Mention the account where you transfer the amount of cash in hand at the time of dissolution of firm.

What is the need for treatement of goodwill on the death of a partner ?

State any two deductions that may have to be made from the amount payable to the legal representative of a deceased partner.

Name the account which is opened to credit the share of profit of the deceased partner, till the time of his death to his Capital account.

At what rate is interest payable on the amount remaining unpaid to the executor of deceased partner ?

Why heirs of a retiring/deceased partner are entitled to a share of goodwill of the firm ?

What is meant by change in profit sharing ratio?

What is meant by sacrificing partner?

Give two circumstances in which sacrifice ratio may be applied.

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

Why are the 'Reserve and Surplus' distributed at the time of reconstitution of the firm?

L and M are partners in a firm sharing profits and losses in the ratio of 7:3. They admit N on 3/7 share which has takes 2/7 from L and 1/7 from M. Calculate the new profit sharing ratio.

R and T are partners in a firm sharing profits in the ratio of 3:2. S join the firm , R giving him 1/4th of his share and T giving 1/5th of his share. Find the new profit sharing ratio of partners.

P and Q are partners in a firm sharing profits in the ratio of 7:5. They admit R as a partner in the firm. The new profit sharing ratio among P,Q and P,Q and R is 1:1:2. Calculate the sacrificing ratio.

On 1.3.2006 A and C admitted D into the partnership, their profit sharing ratio being 5:4:3 respectively. Assuming before admission, the profit sharing ratio of A and C was equal find the sacrifice ratio.

A and B are partners in a firm sharing profits and losses in the ratio of 3:2. They admit C into partnership for 1/5th share. C brings Rs.30,000 as capital and Rs.10,000 as goodwill. At the time of admission of C goodwill appears in the balance sheet of A and B at Rs.3,000. New profit sharing of the partners shall be 5:3:2. Pass necessary entries in the books of new firm.

What is meant by unlimited liability of a partner ?

State the provisions of Indian Partnership Act, 1932 regarding interest on parther's capital and interest on partner's loan when there is no partnership deed.

Ram and Mohan are partners in a firm without any partnership deed.  Their capitals are Ram Rs. 8,00,000 and Mohan  Rs. 6,00,000.  Ram is an active partner and looks after the business.  Ram wants that profit should be shared in proportion of capitals.  State with reason whether his claim is valid or not.

Why is "Goodwill" considered an 'intangible Asset' but not 'Fictitious Asset'?

What is normal profit ?

How does the factor 'location' after the goodwill of a firm ?

State the ratio in which the partners share the accumulated profits when there is a change in the profit sharing ratio amongest existing partners.

A,T and R were partners in a firm sharing profits in the ratio of 5:6:7 respectively. State the ratio in which the goodwill of the firm amounting to RS.16,00,000 will be adjusted in the capital accounts of A and T in case of R's death.

Distinguish between 'Dissolution of Partnership' and 'Dissolution of Partnership Firm' on the basis of Court's of intervention.

What is meant by over-subscription.

Why should a firm have a partnership deed?

State the ratio in which the partners share profits or losses on revaluation of assets and liabilities, when there is a change the profit sharing ratio amongest existing partners? 

State any two deductions that may have to be made from the amount payable to the legal representative of a deceased partner.

State the liability of partners in case of dissolution of firm.

A Ltd. forfeited 100 equity shares of Rs.10 each issued at a premium of 20% for the non-payment of final call of Rs.5 including premium. State the maximum amount of discount of discount at which these shares can be re-issued.

What is meant by unlimited liability of a partner ?

What is meant by change in profit sharing ratio?

State any two deductions that may have to be made from the amount payable to the legal representative of a deceased partner.

Distinguish between 'Dissolution of Partnership' and 'Dissolution of Partnership Firm' on the basis of  Settlement of accounts.

What is meant by capital reserve?

State the nature of business afftect the value of goodwill of a firm ?

Give two circumstances in which sacrifice ratio may be applied.

Why heirs of a retiring/deceased partner are entitled to a share of goodwill of the firm ?

A and B are partners in a firm sharing profits in the ration of 3 : 2, Mrs A has given a loan of Rs. 20,000 to the firm and the firm also obtained a loan of Rs. 10,000 from B.  The firm was dissolved and its assets were realised for Rs. 25,000.  State the order of payment of Mrs A's  Loan and B's Loan with reason, if there are no creditors of the firm.

At what rate can the company charge interest on 'calls-in-arrears' according to Table F of the Companies Act, 2013.

What is meant by 'Debenture'? 

What is the nature of interest on debentures? 

Why would an investor prefer to invest in debentures of a company rather than in its shares? 

What is meant by issue of debentures as a collateral security? 

What is meant by irredeemable debentures? 

Under what heads and sub-heads the following items will appear in the Balance Sheet of a company as per Schedule III Part-I of companies Act 2013:
(i)Tax Reserve
(ii)Interest on calls in Advance
(iii)Stores and Spares

Under what heads and sub-heads the following items will appear in the Balance sheet of a company as per Schedule III part-I of the companies Act 2013:
(i)Mining Rights
(ii)Encashment of employees earned leave payable on retirement
(iii)Vehicles

Under which major sub-headings the following items will be placed in the Balance Sheet of a company as per Schedule III Part I of the Companies Act 2013:
(i)Bonds
(ii)Capital Redemption Reserve
(iii)Short-term Provisions
(iv)Balance of the statement of profit and Loss
(v)Provision for Warranties
(vi)Brand/Trade Marks

Kotak Finance Ltd, a finance company, has invested its surplus funds in 15% deposit with Reliance Housing Ltd. Is the interest received on the deposit revenue from operations or other revenue?

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.

State why the creditors for goods are interested in analysing financial statements.

How is analysis of financial statements to important to she shareholders of the company ?

Name two parties interested in Financial Statement Analysis.

State the interest of investors in the analysis of financial statements.

State how financial statement analysis is considered historical in nature.

Quick ratio of a company is 1.5:1. State giving reason whether the ratio will improve, decline or not change on payment of dividend by the company.

The debt-equity ratio of a company is 0.8:1. State whether the long-term loan obtained by the company will improve, decrease or not change the ratio.

What will be the operating profit ratio if operating ratio is 83.64%? 

A business has a current ratio of 3:1. Its networking capital is Rs.4,00,000 and its stocks are valued at Rs.2,50,000. Calculate the quick ratio. Is it satisfactory? Identify the value shown by the company in maintaining such a quick ratio

A business has a current ratio of 3:1 and quick ratio of 1:2:1. If the working capital is Rs.1,80,000, calculate the total current assets and value of inventory.

What is meant by cash flow statement?

Payment of salary to staff is classified or shown as operating activity for both non-finance and finance company.Do you agree?

Under which type of activity will you classify 'issuing 9% debentures' while preparing cash flow statement.

From the following information, calculate cash flow from investing activities and financing activities.

During the year, furnitures costing Rs.8,000 was sold at a profit of Rs.6,000.Depreciation on furniture charged during the year amounted to Rs.10,000.

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

What is meant by unlimited liability of a partner ?

Is dissolution of firm and dissolution of partnership one and the same thing?

Give any one purpose for which the amount received as 'Securities Premium' may be utilised.

Why is the management interested in analysing financial statements ?

How the 'Earning capacity of a business' is assessed by "Financial Statement Analysis"?

A Ltd. purchased the business of B Ltd. for Rs.90,000. Payment was made by issue of 12% debentures of Rs.10 each. What journal entries will be made when

(i) debentures are issued at 20% premium?

(ii) debentures are issued at 10% discount?

Y Ltd. Purchased machinery Rs.55,000 from Z Ltd. 10% was paid by Y Ltd. by accepting a bill of exchange in favour of Z Ltd. and the balance was paid by issue of 9% debentures of Rs.100 each at par, redeemable after five years. Pass necessary journal entries in the books of Y Ltd.

Deepak Ltd. Purchased furniture Rs.2,20,000 from M/s Furniture Mart. 50% of the amount was paid to Furniture Mart by accepting a bill of exchange and for the balance the company issued 9% debentures of Rs.100 each at a premium of 10% in favour of Furniture Mart.

Pass necessary journal entries in the books of Deepak Ltd. for the above transactions.

Give journal entries in each of the following cases if the face value of a debenture is Rs.100.

 (i) A debenture issued at Rs.110 repayable at Rs.100

 (ii)  A debenture issued at Rs.100 repayable at Rs.105

 (iii)  A debenture issued at Rs.105 repayable at Rs.105

Alfa  Ltd. issued 10,000,9% debentures of Rs.100 each. Pass the necessary journal entries for issuing of debentures in the following cases:

(i) When debentures are issued at par and redeemable at par.

(ii) When the debentures are issued at par and redeemable at premium of 10%.

(iii) When debentures are issued at a premium of 25% to the vendors for the purchase of machinery worth Rs.12,50,000.

(iv) When debentures are issued at a premium of Rs.250 each and are redeemed at par.

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

Why are the 'Reserve and Surplus' distributed at the time of reconstitution of the firm?

On 1.3.2006 A and C admitted D into the partnership, their profit sharing ratio being 5:4:3 respectively. Assuming before admission, the profit sharing ratio of A and C was equal find the sacrifice ratio.

A and B are partners in a firm sharing profits and losses in the ratio of 3:2. They admit C into partnership for 1/5th share. C brings Rs.30,000 as capital and Rs.10,000 as goodwill. At the time of admission of C goodwill appears in the balance sheet of A and B at Rs.3,000. New profit sharing of the partners shall be 5:3:2. Pass necessary entries in the books of new firm.

Ram and Mohan were partners in a firm sharing profits in the ratio of 4:1. On 01.03.2015 they admitted Sohan as a new partner for 1/3rd share in the profits of the firm. They fixed the new profit sharing ratio 4:2:3. On the date of Sohan;s admission, the firm had a Contingency Reserve balance of Rs.20,000 and profit and Loss account balance of Rs.32,00(Dr.). The firm also had a reserve of Rs.1,00,000. Sohan is to bring Rs.60,000 as premium for his share of goodwill. Showing your calculations clearly, pass necessary journal entries to record the above transactions. 

Quick ratio of a company is 1.5:1. State giving reason whether the ratio will improve, decline or not change on payment of dividend by the company.

The debt-equity ratio of a company is 0.8:1. State whether the long-term loan obtained by the company will improve, decrease or not change the ratio.

The inventory turnover ratio of a company is 3 times. State, giving reason, whether the ratio improves, declines or does not change because of increase in the value of closing inventory by Rs.5,000.

The trade receivables turnover ratio of a company is 6 times. State with reason whether the ratio will improve, decrease or not change due to increase in the value of closing inventory by Rs.50,000.

What will be the operating profit ratio if operating ratio is 83.64%? 

State the purpose of preparing a 'cash flow statement'.

State whether conversion of debentures into equity shares by a financing company will result in inflow, outflow or no flow of cash.

Under which type of activity will you classify 'commission and royalty received' while preparing cash flow statement?

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

Give an example of the activity which remains financing activity for every enterprise.

Quick ratio of a company is 1.5:1. State giving reason whether the ratio will improve, decline or not change on payment of dividend by the company.

The debt-equity ratio of a company is 0.8:1. State whether the long-term loan obtained by the company will improve, decrease or not change the ratio.

The inventory turnover ratio of a company is 3 times. State, giving reason, whether the ratio improves, declines or does not change because of increase in the value of closing inventory by Rs.5,000.

The trade receivables turnover ratio of a company is 6 times. State with reason whether the ratio will improve, decrease or not change due to increase in the value of closing inventory by Rs.50,000.

What will be the operating profit ratio if operating ratio is 83.64%? 

Why is the government interested in analysing financial statements ? 

How the solvency of business is assessed by ' Financial Statement Analysis' ?

State why shareholders are interested in Financial Statement Analysis

State the interest of investors in the analysis of financial statements.

State how financial statement analysis is considered historical in nature.

Name the two basic financial statements of a company as per Schedule III part I of the Companies Act,2013.

What is the number of major heads which appear for the assets items of company's Balance Sheet?

Which section of the Companies Act 2013, requires the Balance Sheet to be prepared in the prescribed form?

Name any two items which are shown under the heading 'Shareholders' Funds'.

Under what heads and sub-heads the following items will appear in the Balance Sheet of a company as per Schedule III Part-I of companies Act 2013:
(i)Tax Reserve
(ii)Interest on calls in Advance
(iii)Stores and Spares

What is meant by 'Debenture'? 

What is meant by convertible debentures? 

What is the nature of interest on debentures? 

Why would an investor prefer to invest in debentures of a company rather than in its shares? 

Give the meaning of issue of debentures as a collateral security.

Give the definition of a share.

What is meant by capital reserve?

What is meant by over-subscription.

What arr preliminary expenses?

State the steps other than rejecting applications that a company can take in case of over subscription.

In case of dissolution of a firm which liabilities are to be paid first.

A and B are partners in a firm sharing profits in the ration of 3 : 2, Mrs A has given a loan of Rs. 20,000 to the firm and the firm also obtained a loan of Rs. 10,000 from B.  The firm was dissolved and its assets were realised for Rs. 25,000.  State the order of payment of Mrs A's  Loan and B's Loan with reason, if there are no creditors of the firm.

Distinguish between 'Dissolution of Partnership' and 'Dissolution of Partnership Firm' on the basis of Court's of intervention.

Mention any one difference between revaluation account and realisation account.

Pass the necessary Journal entries for the following transactions on the dissolution of the firm of Sudha and Shiva after the various assets (other than cash) and outside liabilities have been transferred to Realisation Account:

  (i) Sudha agreed to pay off her husband's loan Rs. 19,000

  (ii)A debtor whose debt of Rs. 9,300 was written off in the books paid Rs. 7,500 in full settlement.

  (iii) Shiva took over all investment at Rs. 13,300.

  (iv) Sundry creditors Rs. 10,000 were paid at 9% discount.

  (v) Realisation expenses Rs. 3,400 were paid by Sudha for which she was allowed Rs. 3,000.

  (vi) Loss on realisation Rs. 9,400 was divided between Sudha and Shiva in 3 : 2 ratio.

State any two deductions that may have to be made from the amount payable to the legal representative of a deceased partner.

At what rate is interest payable on the amount remaining unpaid to the executor of deceased partner ?

Why does a firm revaluate its assets and reassess its liabilities on retirement or death of a partner ?

Kumar,Verma and Naresh were partners in a firm sharing profit and loss in the ratio of 3:2:2. On 23rd January, 2015, Verma died. Verma's share of profit till the date of his death was calculated RS.2,350.

Pass necessary journal entry for the same in the books of the firm.

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.

What is meant by change in profit sharing ratio?

Give two circumstances in which sacrifice ratio may be applied.

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

State the ratio in which the partners share the accumulated profits when there is a change in the profit sharing ratio amongest existing partners.

Anita, Asha and Amrit are partners sharing profits in the ratio of 3:2:1 respectively. From 1st January 2010, they decided to share profits in the ratio of 1:3:2. 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 preceding five years are: Profits 2005-Rs 1,20,000; -Rs 3,00,000; 2007-Rs 3,40,000; 2008-Rs 3,80.000; 2009-Rs 1,40,000 (Loss).

Showing the working clearly, give the necessary journal entry to record the above change.

L and M are partners in a firm sharing profits and losses in the ratio of 7:3. They admit N on 3/7 share which has takes 2/7 from L and 1/7 from M. Calculate the new profit sharing ratio.

R and T are partners in a firm sharing profits in the ratio of 3:2. S join the firm , R giving him 1/4th of his share and T giving 1/5th of his share. Find the new profit sharing ratio of partners.

P and Q are partners in a firm sharing profits in the ratio of 7:5. They admit R as a partner in the firm. The new profit sharing ratio among P,Q and P,Q and R is 1:1:2. Calculate the sacrificing ratio.

Hari, Ravi and kavi were partners in a firm sharing profits in the ratio of 3:2:1. They admitted Guru as a new partner for 1/7th share in the profits. The new profit sharing ratio will be 2:2:2:1 respectively. Guru brought Rs.3,00,000 for his capital and Rs.45,000 for his 1/7th share of goodwill. Showing your workings clearly,pass necessary journal entries in the books of the firm for the above mentioned transactions.

(a)A and B are partners in a firm sharing profits in the ratio of 3:2. C is admitted as a partner. A and B surrender 1/2 of their respective shares in favour of C. Find the new profit sharing ratio and also the sacrificing ratio.

(b)C is a bring his share of premium for goodwill in cash. The goodwill of the firm is estimated at Rs.40,000. Pass necessary entries for the record od goodwill in the above case.

What is meant by unlimited liability of a partner ?

State the provisions of Indian Partnership Act, 1932 regarding interest on parther's capital and interest on partner's loan when there is no partnership deed.

Ram and Mohan are partners in a firm without any partnership deed.  Their capitals are Ram Rs. 8,00,000 and Mohan  Rs. 6,00,000.  Ram is an active partner and looks after the business.  Ram wants that profit should be shared in proportion of capitals.  State with reason whether his claim is valid or not.

List two items that may appear on the credit side of a partner's fixed capital account.

Why should a firm have a partnership deed?

R, S and T entered into a partnership of manufacturing and distributing educational CDs on April  1,2006.  R looked after the business development, S content development and T finance the project.  At the end of the year (31-3-2007) T wanted an interest of 12% p.a. on the capital employed by him.  The other partners were not inclined to this.  How would you resolve this within the ambit of the Indian Partnership Act, 1932 ?

What are super profits ?

State the ratio in which the partners share the accumulated profits when there is a change in the profit sharing ratio amongest existing partners.

Why heirs of a retiring/deceased partner are entitled to a share of goodwill of the firm ?

State the liability of partners in case of dissolution of firm.

What is the need for treatement of goodwill on the death of a partner ?

Name the account which is opened to credit the share of profit of the deceased partner, till the time of his death to his Capital account.

Why heirs of a retiring/deceased partner are entitled to a share of goodwill of the firm ?

A,T and R were partners in a firm sharing profits in the ratio of 5:6:7 respectively. State the ratio in which the goodwill of the firm amounting to RS.16,00,000 will be adjusted in the capital accounts of A and T in case of R's death.

Kumar,Verma and Naresh were partners in a firm sharing profit and loss in the ratio of 3:2:2. On 23rd January, 2015, Verma died. Verma's share of profit till the date of his death was calculated RS.2,350.

Pass necessary journal entry for the same in the books of the firm.