Capital employed by a partnership firm is Rs10,00,000.Its average profit is Rs 1,20,000. The normal rate of return in similar type of business is 10%. What is the amount of super profits?

Profit or loss on revaluation is shared among the partners in:

An incoming partner pays his share of good will in cash, and profit sharing ration of old partner is changed, Good – will be distributed among old partners:

In the revaluation account an increase in the value of land and building:

The circumstances when change in profit sharing ratio is needed:

Reassessment of liabilities means :

The partnership may come to an end due to the:

Partners equity is effected due to:

At the time of dissolution:

For the firm interest on drawing is:

Interest on calls in advance is:

Shareholders are the:

When debentures are issued at a discount, should be written off the discount

Discount or loss on issue of debentures to be written off within 12 months of the date of Balance Sheet is shown as

Share capital is

Reserve and surplus are comes in which head

Cash deposit with the bank with a maturity date after two months belongs to which of the following in the cash flow statement.

 Which of the following is not source of cash?

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

Income and expenditure accounts show

A, B and C wer  partners in a firm sharing profits in 2 : 3 : 5 ratio.  A was guaranteed a minimum profit of Rs. 1,00,000.  Any deficiency on this account was to be borne by C.  The net profit of the firm for the year ended 31.3.2006 was Rs. 4,50,000.  Prepare Profit and Loss Appropriation Account of A, B and C for the year ended 31.3.2006.

Salary or commission paid to a partner is debited to profit and loss appropriation account and not to profit and loss account.Why?

A and B are partners in a firm sharing profits in the ratio of 5:3. They admit C into the partnership for 3/10th share in profits which he takes 2/10th from A and 1/10th from A and 1/10th from B. C brings in Rs.3,000 as premium in cash out of his share of Rs.7,800. Goodwill account does not appear in the books of A and B. Give the necessary journal entries in the books of the new firm.

A,B and C were partners in a firm sharing profit in the ratio of 5:3:2. On 1.4.2005 they admitted D as a new partner for 1/8th share in the profits of the firm. The new profit sharing ratio of A,B,C and D will be 3:2:2:1. On D's admission the goodwill of the firm was valued at Rs.2,40,000. D brought in cash Rs.1,75,000 for his share of capital. He also brought necessary cash as premium for his share of goodwill.

Calculate sacrifice/gain of A,B and C on D's admission. Also pass necessary journal entries for the above transactions in the books of the firm. Show your calculations clearly.

Which partner's capital account is debited at the time of adjusting goodwill through capital accounts?

L,M and N are partners sharing profits in the ratio of 3:2:1 respectively.From 1st April,2014 they decided to share profits in the ratio of 2:3:1 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 precedding five years are
Profit:1------Rs 1,44,000;  II-----Rs 3,60,000; III---- Rs 4,08,000; IV----4,56,000
Loss:V---- Rs 1,68,000.
Showing the working clearly, give the necessary journal entry to record the above change.

How can the amount due to the retiring partner be settled?

P, Q and R are partner sharing profits as 2:2:1 respectively.The firm's books are closed on 31st December every year.On 28th February, 2015, P paid.It is not possible to prepare final accounts for calculations of profits to the date of death.Suggest the ways to Q and R for ascertaining profits.

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.

The book value of assets (other than cash and bank) transferred to realisation account is Rs1,00,000. 50% of the assets are taken over by a partner Amar at a discount of 20%, 40% of the remaining assets are sold at a profit of 305 on cost, 5% of the balance being obsolete realised nothing and remaining assets are handed over to a creditor in full settlement of his claim.

You are required to record the journal entries for realisation of assets. 

X Ltd purchased machinery for Rs 5,00,000 from Y Ltd. Half of the amount was paid by accepting a bill of exchange drawn by Y Ltd payable after three months. The balance was paid by issue of equity shares of Rs 10 each at a premium of 25%.

Pass necessary journal entries in the books of X Ltd for these transactions.

What rate of interest the company pays on calls-in-advance, if it has not prepared its own Articles of Association? 

Is interest payable on debentures issued as collateral security?

What is debenture Trust Deed?

List the major heads under which the asset are presented in the Balance Sheet of a company as per schedule III part-I of the companies Act,2013.

Give two examples of contingent liabilities.

From the information given below, prepare a Comparative Statement of profit  and loss:

Calculate Inventory Turnover Ratio
Sales = Rs.4,00,000 Average stock = Rs. 55,000 Gross Loss ratio = 10%

From the following information, compute Debt-Equity Ratio:

From the following details, calculate debtors turnover ratio and average receivable period in terms of months.

State how cash flow statements are historical in nature.

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

In year 2015, machine costing RS.2,00,000 was sold at a profit of RS 1,50,000, depreciation charged on machine during the year 2015 amounted to RS.2,50,000.

State the meaning of Income and Expenditure Account.

What is Capital Fund? How is it calculated?

Calculate interest on drawings of Mr.Ghai @ 10% per annum for the year ended 31st March 2018, in each of the following alternative cases
Case I If he Withdrew Rs.15,000 in the beginning of each quarter.
Case II If he Withdrew Rs.15,000 at the end of each quarter.
Case III If he Withdrew Rs.15,000 during the middle of each quarter.

A and B are partners sharing profits in the ratio of 5:3. They admit C for 1/4th share and agree to share future profits between them in the ratio of 2:1. Calculate new profit sharing ratio and sacrificing ratio.

Suman and Poonam were partners in a firm sharing profits and looses in the ratio of 3:2 From 1st April 2015, they decided to change it to 3:1 For this purpose,the goodwill of the firm was valued at Rs 1,20,000 Pass necessary journal  entry for the treatment of goodwill

A,B and C are partners in a firm sharing profits in the ratio of 5:3:2 respectively. Their Balance Sheet as at 31st March, 2013 was as follows :

(iii) A's share of profit till the date of his death will be calculated on the basis of the profit of the year 2012-13.
(ii)Patents were revalued at RS.90,000, Machinery at RS.2,80,000 and Building at RS.2,50,000.
(i) Goodwill was valued at 2 years purchase of average profits of last 4 years which were 2009-10 : RS.1,00,000; 2010-11 : RS.1,60,000; 2011-12 : RS.1,80,000 and 2012-13 : RS.2,00,000.A died on 31st December, 2013 due to illness. It was agreed between the firm and A's executors that the amount due to A will be used for construction of a charitable hospital in a village as per the agreement.
(iv) Interest on capital will be provided at 10% p.a.
(v) Amount due to A's executor will be transferred to Charity Account.
(a) Prepare A's Capital Account to be presented to his executor.
(b) Identify any one value being highlighted in the question.

Anju, Manju and Sanju were partners in a firm sharing profits in the ratio of 2 : 2 : 1. On 28.2.2015, their Balance Sheet was a follow :

On this date, the firm was dissolved.  Anju was appointed to realise the assets.  Anju was to receive 5% Commission on the sale of assets (except cash) and was to bear all expenses of realisation.

Anju realised the assets as follows : Debtors Rs. 60,000, Stock Rs. 35,500, Investment Rs. 16,000, Plant 90% of the book value.  Expenses of relisation amounted to Rs. 7,500.  Commission received in advance was returned to the customers after deducting Rs. 3,000.

Firm has to pay Rs. 8,500 for Outstanding salary, not provided for earlier.  Compensation paid to employees amounted to Rs. 17,000.  This liability was not provided for in the above Balance Sheet.  Rs. 20,000 had to be paid for  provident fund.

Prepare Realisation Account, Capital Accounts of Partners and Bank Account.

Give the journal entries to record the following transactions for forfeiture and re-issue of shares and open share forfeited account in the books of the respective companies. l Ltd forfeited 470 equity shares of Rs 10 each issued at a premium of Rs 5 per share for non-payment of allotment money of Rs 8 per share (including share premium of Rs 5 per share) and the first and final call of Rs 5 per share. Out of these, 60 equity shares were subsequently re-issued at Rs 14 per share. 

DLF Ltd acquired assets of Rs.50,00,000 and took over creditors of Rs.5,00,000 from Vishal Enterprises. DLF Ltd issued 8% debentures of  Rs.100 each at a premium of 25% as purchase consideration. Record necessary journal entries in the books of DLF Ltd.

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.

From the following summarised balance sheets of Raghav Ltd as at 31st March, 2015 and 2014, prepare a comparative balance sheet.

Current assets Rs.1,20,000, current liabilities Rs.24,000, credit revenue from operations Rs.2,40,000, cash revenue from operations Rs.52,000 and sales return Rs.4,000. Calculate the working capital turnover ratio.

From the following Balance Sheets of a company, calculate the Cash Flows from Operating Activities :

Extracts of Receipt and Payment Account for the year ended March 31, 2017 are given below:

Additional Information:
Total number of members: 230.
Annual membership fee: Rs. 125.
Subscriptions outstandings on April 1, 2016: Rs. 2,750.
Prepare a statement showing all relevant items of subscriptions viz., income, advance, outstandings, etc.

A and B are partners in a firm sharing profits in the ratio of 3:2. Their Balance Sheet as at 31st March, 2014 stood as under:

On that date they admitted C into partnership for 1/4th Share in the profit on the following terms:

(i)C brings capital proportionate to his share. He brings Rs.7,000 in cash as his share of goodwill.

(ii)Debtors are all good.

(iii)Depreciate stock by 5% and furniture by 10%.

(iv)An outstanding bill for repairs Rs.1,000 will be brought in books.

(v)Half of the investments were to be taken over by A and B in their profit sharing ratio at book value.

(vi)Bank loan is paid off.

(vii)Partners agreed to share future profits in the ratio of 3:3:2

Prepare Revaluation Account, PartnersCapital Accounts and Balance Sheet after admission of C into the partnership.

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,2015

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.

Following is the balance sheet of J, G and M as at 31st March, 2015
                                Balance Sheet
                          as at 31st March, 2015

The partners have been sharing profits in the ratio of 5:3:2.M decides to retire from business on 1st April, 2015 and his share in the business is to be calculated as per the following terms of revaluation of assets and liabilities
Stock        Rs.20,000
Furniture    Rs.14,250
Machinery Rs.23,530
Building     Rs.20,000
Provision of Rs.1,700 is to be created for doubtful debts.
The goodwill of the firm be valued at Rs.9,000.M's share of the goodwill be adjusted without opening the goodwill account in the books.
The continuing partners agreed to pay Rs.16,50 as cash on retirement of M to be contributed by the capital account of M will be treated as loan.Prepare the revaluation account, partners' capital accounts and the balance sheet of reconstituted firm.

X,Y and Z were partners Sharing Profits in the ratio of 2 : 2 : 1.  Their Balance-Sheet as on March 31st 2010, the date on which they dissolve their firm, was as follows :

It was agreed that:

(a) X to take over Furniture at Rs. 8,000, debtors amounting to Rs. 1,20,000 at 1,17,200 and the creditors of Rs. 16,000 were to be paid by him at this figure.

(b) Y is to take over all stock for Rs. 17,000 and some sundry assets at Rs. 72,000 (being 10% less than the book value).

(c) Z to take over remaining sundry assets at 80% of the book value and assume the responsibility of discharge of loan together with accrued interest of Rs. 2,300.

(d) The expenses of realization were Rs. 2,700.  The remaining debtors were sold to a debt collecting agency at 50% of the Book value.

Prepare Realisation A/c, Partners Capital A/cs and Cash A/c.

Parth Ltd was registered with a capital of Rs10,00,000 in shares of Rs20 each. It invited applications for 50,000 shares. The amount is payable as Rs 5 on applications, Rs10 on allotment and Rs 5 on first and final call. Give journal entries for the above transactions and also show the cash book of the firm, when the public has subscribed for 46,500 shares.

On 1st January, 2015, Tanisha Ltd purchased 5,000,15% own debentures on Rs 100 each for immediate cancellation Rs.98, the brokerage being 1%. Pass the necessary journal entries.

Compute cost of materials consumed from the following information.
Opening inventory of raw material Rs 15,00,000,opening inventory of stock-in-trade Rs 4,00,000, raw material purchased Rs 50,00,000, purchase of stock-in-trade Rs 30,00,000, closing inventory of raw material Rs Rs 5,00,000 and closing inventory of stock-in-trade Rs 3,00,000. 

From the following balance sheets of Sun Ltd as at 31st March, 2014 and 2015, prepare a common size balance sheet

From the following particulars, determine debtors at the end of the year.
Revenue from operations (credit sales) (29,200, credit collection period 73 days, debtors (beginning of the year) Rs.5,680.

From the following, calculate the net cash flow from operating activities.
 

Note to Accounts

Additional Information
During the year, a piece of machinery costing Rs.30,000 on which depreciation charged was Rs.10,000 was sold for Rs.10,000.Depreciation provided on fixed assets Rs.30,000.Dividend on equity shares@8% was paid on opening balance.Income tax Rs.22,500 was provided.Additional debentures were issued at par on 1st October 2013 and bank loan was repaid on the same date.At the end of the year, preference shares were redeemed at a premium of 5%.

From the trial balance and other information given below for a school, prepare Income and Expenditure Account for the year ended on 31.3.2017 and a Balance Sheet as on that date:

Additional Information:
(i) Tution fee yet to be received for the year are Rs. 25,000.
(ii) Salaries yet to be paid amount to Rs.30,000.
(iii) Furniture costing Rs. 40000 was purchased on October 1, 2016.
(iv) The book value of the furniture sold was Rs. 50,000 on April 1, 2016
(v) Depreciation is to be charged @ 10% p.a. on furniture, 15% p.a. on Library books, and 5% p.a. on building.