Income and Expenditure Account (I&E) is similar to the Profit and Loss Account in the sense that while the former is prepared to ascertain surplus or deficit during an accounting period, the latter is prepared to ascertain net profit or net loss incurred during an accounting period. I&E Account is a nominal account and is prepared on the accrual basis. It records all transactions of revenue nature that are related to the current accounting period (whether outstanding or prepaid) for which the books are maintained. All expenses and losses are recorded on the debit side (Expenditure side) and all income and gains are recorded on the credit side (Income side) of I&E Account. The closing balance or the balancing figure of I&E Account is termed as surplus (or deficit), if the sum total of the Income side exceeds (is lesser than) the sum total of the Expenditure side.

Short-term highly liquid investments which are readily convertible into known amount of cash and which are subject to an insignificant risk of change in the value.

At per SEBI Guidelines, an amount equal to 50% of the debenture issue must be transferred to DRR before the redemption begins. In other words, before redemption, at least an amount equal to 50% of the debenture issue must stand to the credit of DRR

On debit side: Drawing, interest on drawing, share of loss, closing credit balance of the capital.
On credit side: Opening credit balance of capital, additional capital introduced, share of profit, interest on capital, salary to a Partner, commission to a Partner.

Inventory turnover ratio = 8 times

The maximum rate of interest as per Table F is 10%.

Such undistributed profits should be transferred to the partner's accounts in their profit sharing ratio.

The main objective of preparing comparative balance sheet is to analyse the changing in the financial position of an enterprise

No, the treatment is not correct. When the capital account are maintained following fixed capital method, the capital account is debited or credited with the drawings out of capital or introduction of capital respectively, All other debits and credits are recorded in the current account

Whenever there is a change in profit sharing ratio,the gaining partner (i.e.,the partner whose share has increased as a result of change ) is required to compensate the sacrificing partner (i.e.. the partner whose share has decreased as a result of change)

(i) No change: Reason: Neither Debt nor shareholders' fund is affected.
(ii) Decrease: Reason: Long-term debt remain same but shareholders' fund is increasing.
(iii) Increase: Reason: Long-term debts are increased but shareholders' funds remain unchanged.

(i)Fixes Assets
(ii)Non-Current investments
(iii)Deferred tax assets(net)
(iv)Long-term loans and advances
(v)Other non-current assets

(i)  Dr.Plant and machinery rs.80,000 and Land and Building Rs.7,20,000; Cr. Mukund Ltd. Rs.7,50,000 and Capital reserve A/c Rs.50,000 (Bal. Fig.),
(ii) Dr. Mukund Ltd, Cr. Cash A/c by Rs.1,50,000 (iii) Dr. Mukund Ltd. Rs.6,00,000; Cr.10% debentures rs.5,00,000 (i.e., 50,000 Debentures X Rs.10); Securities Premium reserve A/c rs.1,00,000 (i.e., 50,000 Debentures X Rs.2).
[Hints: (i) Since purchase consideration is less than net assets taken over, the difference has been credited to Capital Reserve Account.
(ii) No. of debentures to be allotted = \(\frac { Amount \ due \ to \ Venor }{ Issue \ Price \ of \ Dbenture } =\frac { Rs.6,00,000 }{ Rs.10+2 } =50,000 \ Debentures\)

(i) Dr.Cash A/c Rs.50,000 and Machinery A/c Rs.70,000; Cr.Premium for Goodwill A/c Rs.1,20,000.
(ii) Dr.Premium for Goodwill A/c Rs.1,20,000 and F's capital A/c Rs.30,000; Cr.E's Capital A/c Rs.1,50,000.
[Hint: (i)E's sacrifies 5/12 and F's gain 1/12. (ii)F's share of goodwill Rs.1,20,000X3/1X1/12=Rs.30,000]

Divisible Profit Rs. 28,000 transferred to K's Capital Rs. 16,000 and P's Capital Rs. 12,000.