12th Standard CBSE Accountancy Public Exam Model Question 2020
By QB365 on 03 Mar, 2020
12th Standard CBSE Accountancy Public Exam Model Question 2020
QB365 - Question Bank Software
Important Questions Part-I
12th Standard CBSE
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Reg.No. :
Accountancy
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Interest on partner’s capital is :
(a)a gain
(b)a loss
(c)an appropriation
(d)None of these
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Goodwill is a/an :
(a)Current asset
(b)Tangible asset
(c)Intangible asset
(d)Fictitious asset
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Good will is valued as two years purchase of the average profits of three previous years are Rs. 15000, the value of good-will be:
(a)Rs. 15000
(b)Rs. 30000
(c)Rs. 20000
(d)Rs. 50000
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Good will of the firm is valued Rs. 30000. C an incoming partner purchase 1/4 share of total profit Good will be raised in the books.
(a)Rs. 30000
(b)Rs. 7500
(c)Rs. 120000
(d)Rs. 7000
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The circumstances when change in profit sharing ratio is needed:
(a)All of these
(b)When new partner admitted
(c)When existing partner’s decide
(d)When existing partner retires
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On the reconstitution of a firm change in the value of assets is called ________
(a)Revaluation of assets
(b)Reassessment of assets
(c)Devaluation of assets
(d)Reassessment of liabilities
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The partnership may come to an end due to the:
(a)Death of a partner
(b)Insolvency of partner
(c)By giving notice
(d)All of the above
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The accounting procedure at the retirement of partner is valued:
(a)Revaluation of assets and liabilities
(b)Ascertaining his share of good will
(c)Finding the amount due to him
(d)All of above
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Retirement or death of a partner.
(a)Is dissolution of partnership agreement
(b)Is dissolution of a firm
(c)May or may not be a dissolution of partnership agreement
(d)None of above
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A person who declares by word of mouth as partner of the firm is called:
(a)Active partner
(b)Estople partner
(c)Dormant partner
(d)Nominal partner
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Share allotment is a:
(a)Personal a/c
(b)real a/c
(c)nominal a/c
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The minimum share application money is:
(a)Rs. 5 per share
(b)5% of nominal value of shares
(c)10% of nominal value of shares
(d)none of the above
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When debentures are issued as secondary securities it is called
(a)Issue for consideration other than cash
(b)Issue as collateral securities
(c)Issued at a discount
(d)Issued at premium
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When debentures are issued at a discount, should be written off the discount
(a)In the year of the issue of debentures
(b)Within 5 years of the issue of debentures
(c)During the life of the debentures
(d)In the year of redemption of debentures
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What are the objectives of financial statement
(a)To provide information about economic resource
(b)To provide information about cash flows
(c)To judge effectiveness of management
(d)All of them
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Stock is not included in
(a)current assets
(b)quick ratio
(c)debt ratio
(d)gross profit
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Purchase of building results in
(a)inflow of cash
(b)outflow of cash
(c)no flow of cash
(d)both inflow and outflow
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Dividend paid by a Trading company is classified under which kind of activity while preparing cash flow statement
(a)Cash flow from operating activities
(b)Cash flow from Investing activities
(c)Cash flow from Financing activities
(d)Cash Equivalent
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Subscription received but not yet earned is considered as a/an
(a)Asset
(b)Liability
(c)Income
(d)Expenditure
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Rs10,000 received as the annual membership subscription. Out of this, Rs.2000 is pertaining to the previous accounting period whereas Rs.1000 is receivable at the end of the current accounting period. Calculate the amount of subscription that will be shown in the income and expenditure account for this accounting
(a)Rs.10,000
(b)Rs.9000
(c)Rs.12,000
(d)Rs.8,000
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List the item which may be debited or credited in capital accounts of the partners when
(i) Capital are fixed
(ii) Capital are fluctuating(a) -
X and Y are partners sharing profits and losses in the ratio of 3 : 2. They employed Z as their manager to whom they paid salary of Rs.4,500 per month.Z had deposited Rs.1,20,000 on which interest was payable @9% per annum. At the end of 2017-2018 after division of the year's profit, it was decided that Z should be treated as partner with effect from 1st April, 2011-2012 with 1/6th share of profits, his deposits being considered as capital carrying interest @6% per annum like capital of other partners.
The firm's profit and losses after allowing interest on capital as a charge wrer-2014-2015 profit Rs.3,54,000, 2015-2016 profit Rs.3,75,600, 2016 - 2017 loss Rs.24,000, 2017- 2018 profit Rs.4,68,000. Record the necessary journal entries to give an effect to the above.(a) -
(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.
(a) -
C and D are partners sharing profits in the ratio of 3:2. They take E as a new partner, who is supposed to bring RS.25,000 against capital and RS.10,000 against goodwill. New profit sharing ratio is 1:1:1. E is able to bring RS.30,000 only. How will this be treated in the books of the firm?
(a) -
State the need for treatment of goodwill on change in profit sharing ratio
(a) -
A firm has three partners ,Akanksha,Mini and Richa.Give the journal entry to distribute 'workmen compensation reserve' of Rs 24,000 at the time of change in profit sharing ratio among them to 2:1:1,when there is no claim against it.Also,identify the value being them highlighted in distributing workmen compensation reserve at the time of change in profit sharing ratio.
(a) -
At what rate is interest payable on the amount remaining unpaid to the executor of deceased partner?
(a) -
Nonu, Monu and Sonu are partners sharing profits and losses in the ratio of 4:3:1 respectively.Monu retires, selling his of profit to Nonu and Sonu for Rs.810, i.e Rs.,360 bring paid by Nonu and Rs.450 being paid by Sonu.The profit of the firm after Monu's retirement is Rs,500.Distribute the given profit between Nonu and Sonu, showing how you arrive at the same.
(a) -
Arihant Ltd was dissolved on 31st MArch, 2015. Raj, a partner wants that his loan of Rs. 32,000 should be paid off before the payment of capitals must be paid before the payment of Raj's Loan. Who is correct?
(a) -
Record necessary journal entries for the following unrecorded assets and liabilities in the books of Riya and Raghav.
(i) There was an old furniture in the firm, which had been written-off completely in the books. This was sold for Rs300.
(ii) Rahul, an old customer whose account for Rs100 was written-off as bad in the previous year, paid 60% of the amount.
(iii) Raghav agreed to take over the firm's goodwill (not recorded in the books of the firm), at a valuation of Rs3,000.
(iv) There was an old typewriter, which ha been written-off completely from the books. It was estimated to realise Rs40. It was taken away by Priya at an estimated price less 25%.
(v) There were 100 Shares of Rs10 each in S Ltd acquired at a cost of Rs2,000, which had been written-off completely from the books. These shares are valued @ Rs6 each and divided among the partners in their profit sharing ratio
(a) -
X Ltd invited applications for 10,000 shares of Rs10 each. Applications were received for 15,000 shares. Name the kind of subscription. Give three alternatives for allotting shares.
(a) -
Sushant Ltd was registered with a capital of Rs 5,00,000 in shares of Rs 10 each and issued 20,000 such shares at a premium of Rs 2 per share, payable as Rs 2 per share on application, Rs 5 per share on allotment (including premium) and Rs2 per share on first call made three moths later. All the money payable on application and allotment was duly received but when the first call was made, one shareholder paid the entire balance on his holding of 300 shares and another shareholder holding 1,000 shares failed to pay the first call money.
Give journal entries to record the above transactions.
(a) -
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.(a) -
State the provision of The Companies Act, regarding debenture redemption reserve.
(a) -
How are the contingent liabilities shown in the balance sheet of a company?
(a) -
Name any five items that can be disclosed under 'current investments'.
(a) -
From the following Statement of Profit and Loss of Purab Ltd. prepare a Comparative Statement of Profit and Loss:
Particulars Note No. 2011-12 2010-11 Revenue from Operations
6,00,000
4,00,000
Expenses
1,50,000
50,000
Other Income
2,00,000
1,00,000
Income tax 50% 50% (a) -
Prepare a comparative statement of profit and loss from the following details.
Particulars Note no 31st March,2015 Amt(Rs) 31st march,2014 Amt(Rs) Revenue from Operations 30,00,000 20,00,000 Other Income (% of revenue from operations) 15% 20% Expenses (% of revenue from operations) 60% 50% (a) -
X Ltd has a quick ratio at 3 : 1. Its management is interested in maintaining this ratio at 4:1. What are the two choices to do so?
(a) -
X Ltd has an operating profit ratio at 15%. Its management is interested in maintaining this ratio at 20%. What are the two choices to do so?
(a) -
What is meant by cash flow statement?
(a) -
'Sale of marketable securities at par' would result into inflow or outflow of cash.Give your answer with reason.
(a) -
What steps are taken to prepare Income and Expenditure Account from a Receipt and Payment Account?
(a) -
What is Capital Fund? How is it calculated?
(a) -
Raj and Sameer are partners sharing profits equally.Raj withdrew regularly Rs 8000 at the end of every month for six months ended 30th September 2017. Calculate interest on drawings @ 5% per annum.
(a) -
T and C are partners in a firm sharing profits in the ratio of 4:3. On 1st April, 2015, they admitted S as a new partner. S brought in RS.10,000 for his capital and RS.2,100 for 1/3rd share of goodwill premium. On S's admission, goodwill appeared in the books of the firm at RS.2,800. Record the necessary journal entries on S's admission.
(a) -
(i)P,Q and R are partners sharing profits and losses in the ratio of 5:3:2 They decide to share future profits in the ratio of 2:3:5 with effect from 1st April,2015. The following items appear in the balance sheet as at 31st March 2015
General reserve Rs 90,000 ,contingency reserve Rs 15,000 profit and loss account (Dr) Rs 60,000
(ii)Pass the necessary journal entries ,when those accounts are not required to be shown in the books of reconstituted firm.(a) -
M,N and O were partners in a firm sharing profits and losses equally. Their Balance Sheet on 31.12.2009 was as Follows:
Liabilities
RS
Assets
RS
Capitals: Plant and Machinery 60,000 M 70,000 Stock 30,000 N 70,000 Sundry Debtors 95,000 O 70,000 2,10,000 Cash at Bank 40,000 General Reserves 30,000 Cash in Hand 35,000 Creditors 20,000 2,60,000 2,60,000 N died on 14th March,2010. According to the Partnership Deed, executors of the deceased partner are entitled to :
(i)Balance of Partner's capital account.
(ii) Interest on Capital @ 5% p.a.
(iii)Share of goodwill calculated on the basis of twice the average of past three year's profits.
(iv)Share of profits from the closure of the last accounting year till the date of death on the basis of twice the average of three completed year's profits before death.
Profits fro 2007,2007,2008 and 2009 were RS.80,000, RS.1,00,000, respectively. Show the working for deceased partner's share of goodwill and profits till the date of his death. Pass the necessary Journal Entries and prepare N's Capital Account to be rendered to his executors.
(a) -
What Journal entries would be passed for the following transactions on the dissolution of a firm, of partner Rohan and Sohan?
(i) An unrecorded asset realised Rs 10,000.
(ii) Dissolution expenses amounted to Rs2,000
(iii) Creditors, already transferred to realisation account, were paid Rs54,000.
(iv) Stock work Rs2,200 already transferred to realisation account was taken over by a partner Rohan.
(v) Profit on realisation Rs48,000 is to be distributed between partners Rohan and Sohan in the ratio of 7:5.
(a) -
DP Shah Company Ltd made an issue of 1,00,000 equity shares of Rs 10 each at a premium of 30% payable as follows
On application Rs 3.50 per share, on allotment Rs 6.50 per share, balance on first and final call.
Applications were received for 2,00,000 equity shares and the directors made pro-rata allotment. Harsh, who had applied for 1,600 shares did not pay the allotment and final call money, as a result his shares were forfeited. Later on, 60% of the forfeited shares were re-issued at Rs 8 per share fully paid-up.
Pass necessary journal entries for the mentioned transactions in the books of the company.
(a) -
Arihant Ltd purchased a machinery from Vidya Ltd for an agreed purchase consideration of Rs.11,52,000 to be satisfied by the issue of 9% debentures of Rs.100 each at 4%discount. Journalise the transactions.
(a) -
In the question given above, determine the amount that will be shown in the statement of profit and loss against change in inventories of finished goods, work-in-progress and stock-in-trade.
(a) -
Prepare Comparative and Common Size income statement form the following information for the year's enden march 31, 2008 and 2009.
Particulars 2008(Rs.) 2009(Rs.) 1. Net Sales 8,00,000 10,00,000 2. Cost of Goods Sold 60% of sales 60% of sales 3. Indirect Expenses 10% of Gross Profit 10% of Gross profit 4. Income Tax rate 5% 60% (a) -
Current ratio of a company is 3:1 and working capital is Rs.30,000. Calculate the amount of current assets and current liabilities.
(a) -
List any two items of operating activities, that are typical of and pertaining to Film Production House.
(a) -
From the following Receipt and Payment Account for the year ending March 31, 2015 of Negi's Club, prepare Income and Expenditure Account for the same period:
Dr. Receipt and Payment Account for the year ending March 31, 2015 Cr. Expenditure Amount
(Rs.)Amount
(Rs.)Income Amount
(Rs.)Balance c/d Bank 25,000 Purchase of furniture (1.7.14 5,000 Subscriptions Salaries 2,000 2013 1,500 Telephone expenses 300 2014 10,000 Electricity charges 600 2015 500 12,000 Postage and Stationery 150 Donation 2,000 Purchase of books 2,500 Hall rent 300 Entertainment expenses 900 Interest on bank deposits 450 Purchase of 5% government papers (1.7.14 8,000 Entrance fees 1,000 Miscellaneous expenses 600 Balance c/d: Cash 300 Bank 20,400 40,750 40,750 The following additional information is available:
(i) Salaries outstanding – Rs. 1,500;
(ii) Entertainment expenses outstanding – Rs. 500;
(iii) Bank interest receivable – Rs. 150;
(iv) Subscriptions accrued – Rs. 400;
(v) 50 per cent of entrance fees is to be capitalised;
(vi) Furniture is to be depreciated at 10 per cent per annum.(a) -
Vishal and Gaurav are partners and they had Rs.40,000 and Rs.60,000 in their respective account as on 1st January, 2017. Vishal paid in further Rs.5,000 on 1st August,2017 and another Rs.5,000 on 15th November, 2017 Compute the interest on capital to be allowed to Vishal assuming the rate of interest to be 6% per annum.
(a) -
The following is the balance sheet of S and M who share profits and losses in the ratio of 3:2.
Balance Sheet
as at 31st March, 2015Liabilities Amt (RS) Assets Amt (RS) Bills payable 15,000 Cash 30,000 Creditors 30,000 Debtors 15,000 General Reserve 10,000 Land 20,000 Capital A/cs Machinery 45,000 S 30,000 M 25,000 55,000 1,10,000 1,10,000 On the following conditions, T was admitted on 1st April, 2016 as the third partner.
(i) Machinery was found overvalued by 25%.
(ii) S takes overland at RS.22,000.
(iii) M assumes to pay off bills payable at an agreed value of RS.14,000.
(iv) A reserve of 4% is to be created on debtors.
(v) T brings RS.40,000 as his capital and gets 1/5th share in future profits.
(vi) Goodwill of the firm is valued at RS.1,00,000 but he was unable to bring his share of goodwill in cash.
Prepare the revaluation account, partners' capital accounts and balance sheet.(a) -
The balance Sheet of Modi,Gandhi and Yadav who share profits in the ratioof 2:2:1 is given below
Balance Sheet
as at 31st March,2015Liabilities Amt(rs) Assets Amt(Rs) Capital A/cs Goodwill 25,000 Modi 2,00,000 Building 5,50,000 Gandhi 3,00,00 Machinery 1,75,000 Yadav 2,00,000 7,00,000 Furniture and Fittings 20,000 Contingency Reserve 50,000 Debtors 50,000 Workmen Compensation Reserve 75,000 Stock 1,00,000 Sundry Credtors 60,000 Cash 10,000 Outstanding Expenses 10,000 Advertisement Suspense A/c 15,000 9,45,000 9,45,000 On 1st April,2015, they decide that in (i)Stock is for future, they will share profits in the ratio of 3:2:1, the following adjustments are agreed upon.
(i) Stock is found to be undervalued by 10%.
(ii)Building will be appreciated by Rs 50,000.
(iii)Machinery and furniture and fittings will be depreciated by 5% and 10% respectively.
(iv)Goodwill will be valued at 2 year's purchase of average profits of last 3 years which were Rs 2,00,000, Rs 2,25,000 and Rs 3,75,000 respectively.The profit of Rs 3,75,000 includes profit on sale of machinery Rs 5000.
(vi)Claim on account of workmen compensation is estimated to be Rs 60,000.Prepare revaluation account, partners' capital accounts and the balance sheet of the new firm.(a) -
P, Q and R were equal partners.Their balance sheet as at 31st March, 2018 is
Balance sheet as at 31st March 2015 Liabilities Amt(Rs) Assets Amt(Rs) Bills Payable 20,000 Bank 20,00 Creditors 40,000 Stock 20,000 General Reserve 30,000 Furniture 28,000 Profit and Loss A/c 6,000 Debtors 45,000 Capital A/cs (-)Provision for Doubtful debts (5,000) 40,000 P 60,00 Land and Building 1,20,00 Q 40,000 R 32,000 1,3,2,000 2,28,000 2,28,000 Q retired on 1st April 2015.P and R decided to continue the business as equal partners on the following terms.
(i) Goodwill of the firm was valued at Rs.57,600
(ii) The provision for doubtful debts to be maintained @ 10% on debtors
(iii) Land and building to increased to Rs.1,32,000
(iv) Furniture to be reduced by Rs.8,000
(v) Rent outstanding (not provided for as yet)was Rs.1,500
The remaining partners decided to bring in sufficient cash in the business to pay off Q and to maintain a bank balance of Rs.24,800.They also decided to readjust their capitals as per their new profit sharing ratio.
Prepare the necessary ledger accounts and the balance sheet.(a) -
Radha and Mohan were Partners. They decided to dissolve their firm. The goodwill appeared in the books at Rs. 6000. Show journal entries in their books, if goodwill realised Rs. 9,000.
(a) -
Z Ltd was founded with a nominal capital of Rs 3,00,000 divided into 6,000 equity shares of Rs 50 each. 2,000 shares were issued as fully paid to the vendors for purchase consideration. 2,000 shares were offered for public subscription at a premium of Rs 5 per share payable as
On application Rs 15, on allotment Rs 15 (including premium), on first call Rs 10 and on final call Rs 15. Applications were received for 1,950 shares which were duly allotted. A holder of 200 shares failed to pay the first call money and his shares were forfeited. These shares were re-issued @ Rs 35 per share paid-up. Find call has not been made. Give necessary journal entries.
(a) -
Akshat Ltd issued 5,000, 9% debentures on Rs.100 each at par for cash and also raised a loan of Rs.80,000 from America Bank, for which the company placed with the bank Rs.1,00,000, 9% debentures as collateral security. As per the terms, the bank is obliged and bound to immediately release the debentures, as soon as the loan is repaid. How will y u show the debentures in the balance sheet of the company assuming that the company has recorded the issue of debentures as collateral in the books? Identify the value which according to you motivated the bank, to insist the company for issuing debentures as collateral security against the loan.
(a) -
Compute cost of materials consumed from the following information.
Opening inventory of raw material Rs 3,00,000, opening inventory of work-in-progress Rs 4,00,000, raw material purchased Rs 30,00,000, closing inventory of raw material Rs 5,00,000 and closing inventory of work-in-progress Rs 3,00,000.(a) -
Rearrange the following in the form of a comparative income statement or statement of profit and loss.
Particulars 31st March, 2014 Amt(Rs) 31st March,2015 Amt(Rs) Revenue from Operations (Net Sales) 16,00,000 19,20,000 Purchase of Stock-in-trade 9,00,000 11,00,000 Changes in Inventories of stock-in-trade 1,00,000 60,000 Other Expenses Office and And Administration 2,80,000 3,80,000 Selling and Distribution 1,80,000 1,40,000 General Expenses 20,000 10,000 (a) -
From the following information, calculate total assets to debt ratio of M/s Kundan Pharmacy.
Amt(Rs.) Capital employed 15,00,000 Investments 1,75,000 Land 5,00,000 Trade receivables 1,50,000 Cash and cash equivalents 80,000 Equity share capital 6,00,000 8% Debentures 1,75,000 Capital reserve 25,000 Surplus, i.e. balance in the statement of profit and loss Rs(15,000)
(a) -
From the following information, calculate cash flow from investing activities.
Particulars Closing(Rs.) Opening(Rs.) Machinery 8,40,000 8,00,000 Accumulated Depreciation 2,20,000 2,00,000 Patents 3,20,000 5,60,000 Additional Information(i) During the year, a machine costing Rs.80,000, accumulated depreciation Rs.48,000 was sold for Rs.40,000.
(ii) Patents were written-off to the extent of Rs.80,000 and some patents were sold at a profit of Rs.40,000.(a) -
Prepare Income and Expenditure Account of Entertainment Club for the year ending March 31, 2017 and Balance Sheet as on that date from the following information:
Receipt and Payment Account For the
year ending on March 31, 2017Receipts Amount
(Rs.)Amount
(Rs.)Payments Amount
(Rs.)Balance b/d 24,000 Rent and Rates 48,750 Subscriptions Furniture purchased 40,000 2015-16 23,250 Creditors for sports materials 61,000 2016-17 3,36,000 Purchases for sports materials 10,000 2017-18 13,000 3,72,250 Cost of prizes awarded 20,750 Sale of sports materials 26,000 Match expenses 35,150 Entrance fees 40,000 Miscellaneous expenses 1,50,000 General donation 20,250 Balance c/d 1,34,050 Donation for prize fund 14,000 Interest on prize fund Investments 1,500 Miscellaneous receipts 1,700 4,99,700 4,99,700 Additional Information:
Details Apr. 01, 2016 Mar. 31, 2017 Sports materials 20,000 25,000 Furniture 2,00,000 ? 5% Prize fund investments 60,000 ? Creditors for sports materials 7,000 14,750 Subscription in arrears 23,750 ? Prize fund 60,000 ? Rent paid in advance ---- 3,750 Outstanding rent 3,750 Outstanding miscellaneous expenses 11,400 20,100 Miscellaneous expenses paid in advance 3,750 4,250 Book value of sports materials sold was Rs. 20000
Depreciation on furniture is to be provided @ 10%.
Half of the entrance fee is to be capitalised.
There are 1440 members, each paying an annual
subscription @ Rs. 250.
Subscription received in advance on 1.4.2016
were Rs. 7,000.(a)
Section - A
Section - B
Section - C
Section - D
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Important Questions Part-I Answer Keys
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(c)
an appropriation
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(c)
Intangible asset
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(b)
Rs. 30000
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(a)
Rs. 30000
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(a)
All of these
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(a)
Revaluation of assets
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(d)
All of the above
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(d)
All of above
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(a)
Is dissolution of partnership agreement
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(b)
Estople partner
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(c)
nominal a/c
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(b)
5% of nominal value of shares
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(b)
Issue as collateral securities
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(c)
During the life of the debentures
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(d)
All of them
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(b)
quick ratio
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(b)
outflow of cash
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(c)
Cash flow from Financing activities
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(b)
Liability
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(b)
Rs.9000
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(i) When capitals are fixed Withdrawal of capital will be debited and addition of capital will be credited.
(II) When capitals are fluctuating interest on drawings will be debited and interest on capital will be credited. -
Transfer Z's loan z's capital account = Rs.1,20,000; Debit X and Y with Rs.2,16 and Rs.1,440 respectively and credit Z with Rs.3,600.
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(a)New Ratio 3:2:5, Sacrificing ratio 3:2, C's share of a goodwill=Rs.40,000X5/10=Rs.20,000.
(b)(i)Dr.Bank A/c, Cr.Premium for goodwill A/c by Rs.20,000
(ii)Dr.Premium for Goodwill A/c Rs.20,000; Cr.A's Capital A/c Rs.12,000 and B's Capital A/c Rs.8,000 -
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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)
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Interest is payable @6% per annum on the amount remaining unpaid to the executor of deceased partner
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Share of profit Nonu=Rs.7,000, Sonu=Rs.3,500
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Raj is correct, as according to Section 48 Partner's loan is paid before the payment of partners' capitals.
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Oversubscription.
Three alternatives are:
(i) Reject the excess applications received for 5,000 shares.
(ii) Pro-rata allotment in the ratio of 10:15.
(iii) Full allotment to some applications, pro-rata to some applications and reject the remaining applications. -
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(i) Dr.Furniture, Cr.M/s Furniture Mart by Rs.2,20,000.
(ii) Dr.M/s Furniture Mart, Cr.B/P A/c by Rs.1,10,000
(iii) Dr.M/s Furniture Mart Rs.1,10,000; Cr.9% Debentures Rs.1,00,000 and Securities Premium Reserve Rs.10,000. (No. of Debentures issued 1,000, i.e., Rs.\(1,10,000\div 110\) ). -
As per The Companies Act, a company is required to transfer adequate amount out of its profits every year to debenture redemption reserve until such debentures are redeemed.
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Contingent liabilities are shown as a footnote to the balance sheet of a company.
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The items that can be disclosed under 'current investments' are as follows:
(i) Inestment in equity instruments.
(ii) Investment in preference shares.
(iii) Investment in government or trust securities.
(iv) Investment in debentures or bonds.
(v) Investment in mutual funds. -
Percentage : Revenue from Operations 50%, Other Income 100%,Expenses 200%,PBT 44.44% Others 44.44%
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Choices to do so are (any two):
(i) To pay a current liability.
(ii) To sell stock-in-trade.
(iii) To issue equity/debt for cash.
(iv) To sell fixed assets for cash. -
Choices to do so are (any two):
(i) To increase selling prices of stock-in-trade.
(ii) To reduce cost of revenue from operations.
(iii) To reduce operating expenses.
(iv) To increase selling prices of stock-in-trade and to reduce cost of revenue from operations and operating expenses. -
Cash flow statement is a statement showing the changes in financial position of a business concern during different intervals of time in terms of cash and cash equivalents.
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The following steps are taken to prepare Income and Expenditure Account (I&E) from Receipts and Payment Account (R&P).
Step 1: All the revenue expenditures paid for the current accounting period are transferred from the Payments side of R&P to the Expenditure side of I&E.
Step 2: All the revenue receipts for the current accounting period are transferred from the Receipts side of R&P to the Income side of I&E.
Step 3: Expenses outstanding for the current period and expenses paid in advance (prepaid expenses) for the current period in the preceding accounting periods are to be added (adjusted) to their related expenses in the Step 1.
Step 4: Income outstanding (accrued income) for the current period and income received in advance for the current period in the preceding accounting periods are to be added (adjusted) to their related incomes in Step 2.
Step 5: Non-cash items like depreciation, appreciation for the current accounting period are to be adjusted in the I&E.
Step 6: After adjusting all the revenue items for the current accounting period, the Income and the Expenditure sides are totaled. If the sum total of the Income side exceeds (or is lesser than) the sum total of the Expenditure side, then the balancing figure is termed as surplus (or deficit). -
Capital fund is the excess of NPOs, assets over its liabilities. In other words, the excess of assets over the liabilities for a profit earning organisation is termed as capital and the same for an NPO is termed as capital fund. Any surplus or deficit ascertained from Income and Expenditure account is added to (deducted from) the capital fund. It is also termed as Accumulated Fund.
Calculation of Capital FundCapital Fund at the beginning of the year ** Add: Surplus from Income and Expenditure Account ** Add: Subscription Amount (Capitalised amount) ** Add: Life membership fee. ** ** Less: Deficit from Income and Expenditure Account ** Capital Fund at the end of the year *** -
Interest on drawings = Rs 500
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Transfer to capital reserve = Rs 2,400
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Number of debentures issued = 6,000
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Change in inventories will be (89,500).
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Comparative Income Statement: Particular 2008 amount 2009 amount Change in amount Change in Percentage Net Sales 8,00,000 10,00,000 2,00,000 25% Less: C.O.G.S 4,8,000 6,00,000 1,20,000 25% Gross Profit 3,20,000 4,00,000 80,000 25% Less: Indirect Experenses 32,000 40,000 8,000 25% Operating Profit/PBT 2,88,000 3,60,000 72,000 25% Less: tax 1,44,000 2,16,000 72,000 50% Priofit after tax 1,44,000 1,44,000 __________ __________ Common Size Income Statement Particular 2008 amount 2009 amount Percentage of Net Sales in P.Y Percentage Net Sales in C.Y Net Sales 8,00,000 10,00,000 100% 100% Less: C.O.G.S 4,8,000 6,00,000 60% 60% Gross Profit 3,20,000 4,00,000 40% 25% Less: Indirect Experenses 32,000 40,000 4% 25% Operating Profit/PBT 2,88,000 3,60,000 36% 25% Less: tax 1,44,000 2,16,000 18% 50% Priofit after tax 1,44,000 1,44,000 18% 14.4% -
Current assets = Rs.45,000 ; Current liabilities = Rs.15,000
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For film production house, operating activities will be (i) making films and (ii) selling to its distributors.
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Dr. Books of Negi's Club Income and Expenditure Account for the year ending 31.3.2015 Cr.
Expenditure Amount
(Rs.)Amount
(Rs.)Income Amount
(Rs.)Amount
(Rs.)Salaries 2,000 Subscriptions 10,400 Add: Outstanding 1,500 3,500 Donation 2,000 Telephone expenses 300 Entrance Fees (50% of Rs. 1,000) 500 Electricity charges 600 Bank interest 450 Postage and Stationery 150 Add: Outstanding interest 150 600 Entertainment expenses 900 Interest on investment 200 Add: Outstanding expenses 500 1,400 Hall rent 300 Miscellaneous expenses 600 Depreciation on furniture 375 Surplus 7,075 (Excess of Income over Expenditure) 14,000 14,000 -
Interest on capital to be allowed to Vishal will be calculated as follows
On Rs.40,000 for full year = 40,000\(\times \frac { 6 }{ 100 } =\) Rs.2,400
On Rs.5,000 for 5 months = 5,000\(\times \frac { 6 }{ 100 } \times \frac { 5 }{ 12 } =\) Rs.125
On rs..5,000 for 11/2 months = 5,000\(\times \frac { 6 }{ 100 } \times \frac { 1.5 }{ 12 } =\) Rs.37.50
total interest allowed to Vishal (2,400 + 12 5+ 37.50) = Rs.2,562.50 -
Loss on revaluation=RS.8,850; Capitals: S=RS.20,690, M=RS.47,460, T=RS.20,000; Balance sheet total=RS.1,18,150
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Profit on revaluation = Rs 46,750; Value of good will=Rs 5,30,000; Blance of capital accounts: Modi=Rs 1,75,700, Gandhi=Rs 3,64,033, Yadav=Rs 2,32,017; Balance sheet total=Rs 9,51,750
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Dr Revaluation Account Cr
Particulars Amt(Rs) Particulars Amt(Rs) To furniture A/c 8,000 By Provision for Doubtful Debts A/c 500 To Outstanding Rent A/c 1,500 By Land and Building A/c 12,000 To Gain (Profit) on Revaluation Transferred to P's Capital A/c 1,000 Q's Capital 1,000 R's Capital 1,000 3,000 12,500 12,500 Dr Partners' Capital Account Cr
Particulars P(Rs) Q(Rs) R(Rs) Particulars P(Rs) Q(Rs) R(Rs) To Q's Capital A/c 9,600 - 9,600 By balance b/d 60,000 40,000 32,000 (Goodwill) By General Reserve A/c 10,000 10,000 10,000 To Bank A/c - 72,200 - By Profit and Loss A/c 2,000 2,000 - To Balance c/d (WN) 87,900 - 87,900 By P's Capital A/c - 9,600 - By R's Capital A/c - 9,600 - By Revaluation A/c (Profit) 1,000 1,000 1,000 By Bank A/c 24,500 - 52,500 97,500 72,200 97,500 97,500 72,200 97,500 Dr Bank Account Cr
Date Particulars Amt(rs) Date Particulars Amt(Rs) 2015 2015 Apr 1 To Balance b/d 20,000 Apr 1 By Q's Capital A/c 72,200 Apr 1 To P's Capital A/c 24,500 Apr 1 By Balance c/d 24,800 Apr 1 To R's Capital A/c 52,500 97,000 97,000 Balance Sheet as at 1st April 2015 Liabilities Amt(rs) Assets Amt(Rs) Capital A/cs Land and Byuilding 1,32,000 P 87,900 Furniture 20,000 R 87,900 1,75,800 Stock 20,000 Creditors 40,000 Debtors 45,000 Bills Payable 20,000 (-)Provision for Doubtful Debts (4,500) 40,500 Outstanding Rent 1,500 Bank 24,800 2,37,000 2,37,000 -
Date Particulars LF Amt(Dr) Amt(Cr) Realisation A/c Dr 6,000 To Goodwill A/c 6,000 (Being transfer of goodwill to realisation account) Cash/BankA/c Dr 9,000 To Realisation A/c 9,000 (Being amount realised from sale of goodwill) -
JOURNAL
Date Particulars LF Amt (Dr) Amt (Cr) Sundry Assets A/c Dr 1,00,000 To Vendor's A/c \((2,000\times 50)\) 1,00,000 (Being assets purchased from vendor) Vendor's A/c Dr 1.00,000 To Equity Share Capital A/c 1,00,000 (Being 2,000 shares of Rs 50 each issued to vendor) Bank A/c \((1,950\times15)\) Dr 29,250 To Equity Share Application A/c 29,250 (Being application money received on 1,950 equity shares @ Rs 15 each) Equity Share Application A/c Dr 29,250 To Equity Share Capital A/c 29,950 (Being application money received transferred to equity share capital account) Equity Share Allotment A/c Dr 29,250 To Equity Share Capital A/c \((1,950\times10)\) 19,500 To Securities Premium Reserve A/c \((1,950\times5)\) 9,750 (Being allotment money due on 1,950 shares @ Rs 15 each including premium) Bank A/c Dr 29,250 To Equity Share Allotment A/c 29,950 (Being allotment money duly received) Equity Share First Call A/c Dr 19,500 To Equity Share Capital A/c \((1,950\times10)\) 19,500 (Being first call money due to the holders of 1,950 shares @ Rs 10 each) Bank A/c\((1,750\times10)\) Dr 17,500 To Equity Share First Call A/c 17,500 (Being call money duly received except for 200 shares) Equity Share Capital A/c \((200\times35)\) Dr 7,000 To Equity Share First Call A/c\((200\times10)\) 2,000 To Equity Share Forfeiture A/c \((200\times25)\) 5,000 (Being 200 shares forfeited due to non-payment of first call) Bank A/c \((200\times35)\) Dr 7,000 To Equity Share Capital A/c 7,000 (Being re-issue of 200 shares @ Rs 35 each) Equity Share Forfeiture A/c 5,000 To Capital Reserve A/c 5,000 (Being profit on forfeiture transferred to capital reserve account) -
Balance Sheet
as at...Particulars Note No. Amt(Rs) I. Equity and liabilities 1.Non-current Liabilities Long-term Borrowings 1 5,80,000 5,80,000 Particulars Amt(Rs) 1. Long-termBorrowings Loan from Bank 80,000 Debentures 5,000, 9% Debentures of Rs.100 each 5,00,000 1,000, 9% Debentures of Rs.100 each Issued as Collateral Security 1,00,000 (-)Debenture Suspense (1,00,000) - 5,80,000 -
Cost of materials consumed=Opening inventory of raw material+Purchase of raw material-Closing inventory of raw material
= Rs 3,00,000+Rs 30,00,000-Rs 5,00,000
= Rs 28,00,000 -
Comparative Statement of Profit and Loss
for the years ended 31st march, 2014 and 2015Particulars 31st March 2014 Amt(Rs) 31st March 2015 Amt(Rs) Absolute change
(Increase or Decrease) (Rs)
Percentage
Change
(Increase or Decrease) (Rs)
I. Revenue from Operations(Net Sales) 16,00,000 19,20,000 3,20,000 20.00 II. Expenses (a) Purchase of Stock-in-trade 9,00,000 11,00,000 2,00,000 22.22 (b) Changes in Inventories of Stock-in-trade 1,00,000 60,000 (40,000) (40.00) (c) Other Expenses 4,80,000 5,30,000 50,000 10.42 Total Expenses 14,80,000 16,90,000 2,10,000 14.19 III. Profit before and after Tax(1-III) 1,20,000 2,30,000 1,10,000 91.67 -
Total assets to debt ratio=\(\quad \frac { Total\quad assets* }{ Debt** }\)
\( =\frac { 9,05,000 }{ 8,90,000 } =1.02:1\)
*Total assets = Investments + Land + Trade receivables + Cash and cash equivalents
= 1,75,000 + 5,00,000 + 1,50,000 + 80,000
=Rs.9,05,000
Shareholders' funds = Equity share capital + Capital reserve + Surplus
=6,00,000+25,000-15,000
=Rs.6,10,000
**Debt = Capital employed - Shareholders' funds
=15,00,000-6,10,000=Rs.8,90,000 -
Cash Flow from Investing Activities
Particulars Amt(Rs.) Proceeds from Sale of Machinery 40,000 Payment on Purchase of Machinery (WN 1) (1,20,000) Proceeds from Sale of Patents (WN 3) 2,00,000 Cash Flow from Investing Activities 1,20,000 -
Books of Entertainment Club Income and
Expenditure Account for the year ending March 31, 2017Expenditure Amount
(Rs.)Amount
(Rs.)Income Amount
(Rs.)Amount
(Rs.)Rent 48,750 Subscriptions 3,36,000 Less: Opening Outstanding 3,750 Add: Received in advance 01.04.2016 7,000 45,000 Add: Outstanding (2015–2016) 17,000 3,60,000 Less: Closing rent paid in advance Sports Materials 3,750 41,250 (Rs.3,60,000–Rs.3,43,000) Opening stock 20,000 General donations 20,250 Add: Payments to creditor 61,000 Entrance fees 20,000 81,000 Sports materials Add: Closing creditor 14,750 (Profit on sale)(i.e. 26,000–20,000) 6,000 95,750 Miscellaneous receipts 1,700 Add: Cash purchase 10,000 1,05,750 Less: Opening creditor 7,000 98,750 Less: Sports material Sold 20,000 78,750 Less: Closing stock 25,000 53,750 Match expenses 35,150 Depreciation on furniture 24,000 Miscellaneous expenses: Paid 1,50,000 Less: Outstanding (Opening) 11,400 1,38,600 Paid in advance (Opening) 4,250 1,34,350 Add: Outstanding (Closing) 20,100 1,54,250 Paid in advance (Closing) 3,750 Surplus (Excess of income over expenditure) 95,600 4,07,950 4,07,950 Balance Sheet of Entertainment Club as on March 31, 2016 Liabilities Amount
(Rs.)Amount
(Rs.)Assets Amount
(Rs.)Capital Fund (Balancing figure) 2,42,350 Furniture 2,00,000 Prize fund 60,000 5% Prize Fund Investments 60,000 Creditors for 7,000 Subscription Receivable
(i.e. outstanding)23,750 Sports Materials Subscription Received in Advance 7,000 Stock of Sports Materials 20,000 Outstanding Expenses: Miscellaneous Expenses 3,750 Rent 3,750 Paid in Advance Miscellaneous Expenses 11,400 15,150 Cash in hand 24,000 3,31,500 3,31,500 Balance Sheet of Entertainment as on March 31, 2017 Liabilities Amount
(Rs.)Amount
(Rs.)Assets Amount
(Rs.)Amount
(Rs.)Capital fund 2,42,350 Furniture: Add: Surplus 95,600 Opening balance 2,00,000 Entrance fees 20,000 3,57,950 Additions 40,000 Prize fund 60,000 2,40,000 Add: Donations 14,000 Less: Depreciation 24,000 2,16,000 Interest received 1,500 5% Prize fund investments 60,000 Interest accrued* 1,500 Subscription receivable 77,000 (i.e. Outstanding): Less: Prizes awarded 20,750 56,250 (2015-2016) 500 Creditors for sports materials 14,750 (2016-2017) 17,000 17,500 Subscription received in advance 13,000 Stock of sports materials 25,000 Outstanding miscellaneous expenses 20,100 Miscellaneous expenses 4,250 Paid in advance Prepaid rent 3,750 Accrued interest on Prize fund investments 1,500 Cash in hand 1,34,050 4,62,050 4,62,050
Section - A
Section - B
Section - C
Section - D
