Values reflected by the company are
(i) Doing Your Best: A company does its best by analysing the financial ratios and enabling the interested parties in taking better decisions about investing and tending.
(ii) Transparent: A company works towards transparency by simplifying the accounting information for various users.

Following are the characteristics of a company:
(a) Voluntary association: A company is a voluntary association of persons. No law can compel persons to form a company
(b) Separate legal entity: Company is an artificial person. It has a separate legal entity which is separate and distinct from its members.
(c) Common seal: A company may have a common seal which can be affixed on the documents.
(d) Perpetual succession: A company continues for ever. Its continuity is not affected by the changes in its members. It can be wound up only by law.
(e) Limited liability: The liability of the shareholders of the company is limited to the extent of face value of the shares held by the shareholders.
(f) Transferability of shares: The shares of a company are freely transferable except incase of a private company.

Financial statement analysis may be done with any of the following objectives.
(i) To analyse the profitability and earning capacity.
(ii) To study the long term and short term solvency of the business.
(iii) To determine the efficiency in operations and use of assets.
(iv) To determine the trend in sales, production etc.
(v) To forecast for future and prepare budgets.
(vi) To make inter-firm and intra-firm comparisons.

The value involved are Respect for women and women empowerment.

(i) In sole proprietorship, the profit or loss in the profit and loss account is transferred directly to the sole proprietor's capital account. In partnership, profit and loss appropriation account is prepared to which net profit or loss from profit and to which net profit or loss from profit and loss account is transferred.
(ii) In the profit and loss appropriation account, adjustments for interest on capital, interest on drawings, salary and other remuneration due to the partners are shown. Finally, the balance in the appropriation account is transferred to the partner's capital account in the profit sharing ratio.
(iii) Capital account balance of the sole proprietor alone is shown in the balance sheet of sole proprietorship. The balance sheet of a partnership concern shows the balances in the individual capital accounts (an current accounts) of the partners.

(i) Under this method, goodwill is calculated by multiplying the weighted average profit by a certain number of years of purchase.
(ii) Goodwill = Weighted average profit x Number of years of purchase
(iii) In this method, weights are assigned to each year's profit. Weighted profit is ascertained by multiplying the weights assigned with the respective year's profit.
(iv) The sum of the weighted profits is divided by the sum of weights assigned to determine the weighted average profit
Weighted average profit
\(=\frac{Total\ of\ weighted\ profits}{Total\ of\ weights}\)

Calculation of sacrificing ratio
Sacrificing ratio = Old share - New share
Malathi  \(=\frac { 5 }{ 9 } -\frac { 3 }{ 6 } =\frac { 30-27 }{ 54 } \)
\(=\frac { 3 }{ 54 } =\frac { 1 }{ 18 } \)
Shobana \(=\frac { 4 }{ 9 } -\frac { 2 }{ 6 } =\frac { 24-18 }{ 54 } =\frac { 6 }{ 54 } =\frac { 2 }{ 18 } \)
Therefore sacrificing ratio is \(\frac { 1 }{ 18 } :\frac { 2 }{ 18 } \) (or) 1:2

Journal Entry

Date	Particulars	L.F	Debit Rs.	Credit Rs.
	Bank A/c                                   Dr		6,000
	To Malathi's current A/c (1/3)			2,000
	To Shoban's current A/c (2/3)			4,000
	(Cash brought for goodwill credited to old partners capital account in sacrificing ratio)

According treatment for goodwill on admission of a partner is discussed below:
i) When new partner brings cash onwards goodwill
When the new partner brings cash towards goodwill in addition to the amount of capital it is distributed to the existing partners in the sacrificing ratio.
(ii) When the new partner does not bring goodwill in cash or in kind
If the new partner does not bring goodwill in cash or in kind, his share of goodwill must be adjusted through the capital accounts of the partners.
(iii) When the new partner brings only a part of the goodwill in cash or in kind
Sometimes the new partner may bring only a part of the goodwill in cash or assets. In such a case, for the cash or the assets brought the respective account is debited and for the amount not brought in cash or kind, the new partner's capital account is debited
(iv) Existing goodwill
If goodwill already appears in the books of accounts at the time of admission if the partners decide, it can be written off by transferring it to the existing partner's capital account/current account in the old profit sharing ratio.

Journal entries

Date	Particular		L.F	Debit Rs	Credit Rs
31st	(a)Janaki's Executor's A/c			1,40,000
Dec 2017	To BankA/c				1,40,000
	(Amount due paid immediately)
31st	(b) Janaki's Executor's A/c	Dr		1,40,000
Dec 2017	To Janakis Executor's loan A/c				1,40,000
	(Amount due transferred to loan account)
31st	(c) Janaki's Executor's A/c	Dr
Dec 2017	To Bank A/c			1,40,000	75,000
	To Janaki's Executor's loan A/c				65,000
	(Rs. 75,000 paid and the balance transferred to loan account)

Inventory turnover ratio = \(\frac{Cost\ of\ revenue\ from\ operations}{Average\ inventory}\) = \(\frac{1,20,000}{30,000}\) = 4 times
Cost of revenue from operations
= Opening inventory + Net Purchases + Direct expenses (carriage inwards) – Closing inventory
= 40,000 + 90,000 + 10,000 – 20,000
= Rs.1,20,000
Average inventory = \(\frac{Opening\ inventory + Closing\ inventory}{2}\)
= \(\frac{40,000 + 20,000}{2}\) = Rs.30,000
Inventory conversion period (in months) = \(\frac{Number\ of\ months\ in\ a\ year}{Inventory\ turnover\ ratio}\) = \(\frac{12}{4}\) = 3 months

The direction of a company have an authority of reissue of shares once forfeited by them due to non-payments of calls. They can rreissue the forfeitedshares at par, at premium or at discount. When forfeited shares are reissued at a premium, the amount of such premium will be credited to securities premium account.
If the reissue price is more than the amount. Unpaid on forfeited shares it results in profit and is transferred to capital reserve account.

(i) Inventory conversion period is the time taken to sell the inventory.
(ii) A shorter inventory conversion period indicates more efficiency in the management of inventory.
(iii) It is computed as follows:
Inventory conversion period (in days)
= \(\frac { Number\ of\ days\ in\ a\ year }{ Inventory\ turnover\ ratio } \)
Inventory conversion period (in months)
= \(\frac { Number\ of\ month\ in\ a\ year }{ Inventory\ turnover\ ratio } \).

Journal entry

Date	Particulars		L.F	Debit Rs.	Credit RS.
2019 March 31	Profit and loss appropriation A/c	Dr.		10,000
	General reserve A/c	Dr.		55,000
	Workmen compensation fund A/c	Dr.		17,000
	To Prince’s capital A/c (42,000 × 2/7)				12,000
	To Dev’s capital A/c (42,000 × 4/7)				24,000
	To Sasireka’s capital A/c (42,000 × 1/7)				6,000
	(Accumulated profits and reserve transferred to allpartners’ capital account in the old profit sharing ratio)

Journal entries

Date	Particulars		L.F.	Debit Rs.	Credit Rs.
	Buildings A/c	Dr.		15,000
	To Revaluation A/c (Appreciation in value of buildings recorded)				15,000
	Revaluation A/c	Dr.		5,000
	To Machinery A/c				4,000
	To Provision for doubtful debts A/c (Decrease in assets recorded and provision made)				1,000
	Revaluation A/c	Dr.		10,000
	To Rajesh’s capital A/c				6,000
	To Ramesh’s capital A/c (Profit on revaluation transferred)				4,000

Dr.                                   Revaluation Account                                 Cr.

Particulars	Rs.	Rs.	Particulars	Rs.
To Machinery A/c		4,000	By Buildings A/c	15,000
To Provision for doubtful debts A/c		1,000
To Profit on revaluation transferred to
Rajesh’s capital A/c (3/5)	6,000
Ramesh’s capital A/c (2/5)	4,000	10,000
		15,000		15,000

a. Purchase of super profit method.
Goodwill is calculated by multiplying the super profit by a certain number of years of purchase.
Goodwill Super profit \(\times\) No. of years of purchase.
b. Annuity method: value of Goodwill is calculated by multiplying the super profit with the present of Value of annuity.
Goodwill super profit \(\times\) Present value annuity factor.
c. Capitalisation of super profit method:
Goodwill = \(\frac{Super\ profit}{ Normal\ rate\ of\ return} \times 100\)

(i) No Interest on capital will not allowed as the partnership deed.
(ii) Profit before interest on capital is Rs. 5,000.
Computation of interest on capital:
Ahamed: 60,000 \(\times\) \(\frac{4}{100}\) = Rs. 2,400
Basheer : 40,000 \(\times\) \(\frac{4}{100}\) = Rs. 1,600
Since there is sufficient profit, interest on capital will be provided
(iii) Profit before interest on capital is Rs. 5,000
Computation of interest on capital :
Ahamed: 60,000 \(\times\) \(\frac{6}{100}\) = Rs. 3,600
Basheer: 40,000 \(\times\) \(\frac{6}{100}\) = Rs. 2,400
Since the profit is insufficient, interest on capital will not be provided. Profit of 5,000 will be distributed to the partners on their capital ratio of 3 : 2

Goodwill = Average profit × Number of years of purchase
Average profit = \(\frac { Total\ profit }{ Number\ ofyear } \)
Average profit = \(\frac { 15,000+17,000-6,000+14,000 }{ 4 } \)
= \(\frac { 40,000 }{ 4 } \) = Rs. 10,000
Goodwill = Average profit \(\times\) Number of years of purchase
= 10,000 × 5 = Rs. 50,000

Dr Income and Expenditure Account for the year ended 31^st March, 2019 Cr

Expenditure	Rs	Rs	Income	Rs
To Sports materials
consumed:
Opening stock	16,000
Add: Purchased in the current year	84,000
	1,00,000
Less: Closing stock	10,000	90,000

Balance Sheet as on 31^st March, 2019

Liabilities	Rs	Assets	Rs
		Stock of Sports materials	10,000

Dr. Income and Expenditure Account for the year ended 31^st March, 2017 Cr

Expenditure	Rs.	Income	Rs.	Rs.
		By Subscription	25,000
		Less: Subscription for the year 2015-16	2,000
			23,000
		Less: Subscription for the year 2017-18	1,500
			21,500
		Add: Outstanding subscription for the year 2016-17	500	22,000

Balance sheet as on 31^st March, 2017

Liabilities	Rs.	Assets	Rs.
Subscription received in advance for the year 2017-18	1,500	Outstanding subscription for the year 2016-2017	500

Dr                      Total Debtors account                Cr

Particulars	Rs.	Particulars	Rs
To Balance b/d	1,30,000	By Cash	4,20,000
To Credit sales	5,40,000	By Sales return	35,000
(Balancing figure)		By Bad debits	15,000
		By Balance c/d	2,00,000
	6,70,000		6,70,000

Total sales =Cash sales + Credit sales
=4,60,000 + 5,40,000
=Rs.10,00,000

Statement of profit or loss for the year ended 31^st March, 2018

Particulars	Rs
Closing capital (as on 31.3.2018)	2,75,000 20,000
Add: Drawings during the year (balancing figure)
	2,95,000 30,000
Less: Additional capital introduced during the year
Adjusted closing capital	2,65,000 2,50,000
Less: Opening capital (as on 1.4.2017)
Profit made during the year	15,000

Basic Sacrificing ratio Gaining ratio 1. Meaning It is the proportion of the profit which is sacrificed by the old partners in favour of a new partner It is the proportion of the profit which is gained by the continuing partners from the retiring partner 2. Purpose It is calculated to determine the amount to be adjusted towards goodwill for the sacrificing partners It is calculated to determine the amount to be adjusted towards goodwill for the gaining partners 3. Method of Calculation It is the difference between the old ratio and the new ratio Sacrificing ratio = Old profit sharing ratio - New profit sharing ratio It is the difference between the new ratio and the old ratio Gaining ratio = New profit sharing ratio - Old profit sharing ratio 4. Time of calculation It is calculated at the time of admission of a new partner It is calculated at the time of retirement of a partner

Common-size balance sheet of Maria Ltd as on 31^st March, 2018

Particulars	Absolute amount	Percentage of total assets
	Rs.
I EQUITY AND LIABILITIES
Shareholders’ funds	4,00,000	50
Non-current liabilities	3,20,000	40
Current liabilities	80,000	10
Total	8,00,000	100
II ASSETS
Non-current assets	6,00,000	75
Current assets	2,00,000	25
Total	8,00,000	100

This type of a voucher basically analyses a business transaction from the accounting stand point and is used for recording purposes
These are commonly prepared by accountants on the basis of supporting vouchers and approved by a different individual. They are further subdivided into two, Cash and Non-cash vouchers.
Examples of cash type :
1. Credit Vouchers
2.  payment Vouchers
3. Contra Vouchers
4. Purchase Vouchers
5. Sales Vouchers
6. journal vouchers
Examples of the Non-cash type :
1. Debit note
2. Credit note
3. Invoice

(i) No interest on capital is payable to any partner
(ii) No interest is chargeable on drawings made by the partner
(iii) Profits should be distributed equally
(iv) No remuneration is payable to any partner
(v) Interest on loan is payable at 6% per annum of Rs. 50,000