Accountancy

Hina and Neena are partners. During the year ended 31 March 2022, Neena took out ₹10,000 at the START of every month. Interest on drawings is charged at 6% p.a. What is the interest on Neena's drawings for the year?

Vibha and Asha are partners. During the year ended 31 March 2022, Asha withdrew ₹1,000 at the END of every quarter. For charging interest on drawings, the average period to be used is:

Aman and Chaman are partners and have no partnership deed. Aman lent ₹6,00,000 to the firm on 1 July 2021. How much interest on this loan is Aman entitled to for the year ended 31 March 2022?

Akshita Ltd. bought net assets worth ₹4,70,000 and paid for them by issuing fully paid shares of ₹5,00,000. The extra ₹30,000 paid will be ______ to ______ account.

Maira Ltd. took over assets of ₹12,00,000 and liabilities of ₹4,00,000 of Subav Ltd. for an agreed purchase consideration of ₹9,00,000, to be paid by issuing 11% debentures of ₹100 each at a 10% discount. How many debentures will be issued?

Kavita, Savita and Madhu are partners with capitals of ₹6,00,000, ₹4,00,000 and ₹2,00,000. Interest on capital is allowed @ 10% p.a. and the remaining profit is shared Kavita 1/3, Savita 1/2 and Madhu 1/6. Kavita has personally guaranteed that Savita's share of profit (after interest on capital) will never be less than ₹1,00,000. Profit for the year ended 31 March 2022 before interest on capital was ₹3,00,000.
By how much does Savita's share of profit fall short of the guaranteed amount?

Kavita, Savita and Madhu are partners with capitals of ₹6,00,000, ₹4,00,000 and ₹2,00,000. Interest on capital is allowed @ 10% p.a. and the remaining profit is shared Kavita 1/3, Savita 1/2 and Madhu 1/6. Kavita has personally guaranteed that Savita's share of profit (after interest on capital) will never be less than ₹1,00,000. Profit for the year ended 31 March 2022 before interest on capital was ₹3,00,000.
After adjusting the guarantee, how will the profit (after interest on capital) be divided among the partners?

A company forfeited 400 shares of ₹10 each on which ₹8 per share had been called, because the first call of ₹2 per share was not paid. On forfeiture, Share Capital A/c will be debited with:

Xyle Ltd. issued shares of ₹10 each at a 10% premium. It forfeited 700 shares when the allotment money of ₹5 per share (premium included) and the first and final call of ₹3 per share were not paid. On forfeiture, the Share Forfeiture A/c will be credited with:

Rohit Limited issued 2,000, 9% debentures of ₹100 each at ₹95 each. The 9% Debentures A/c will be credited with:

Which statement about debentures is NOT correct?

Aman, Aadhar and Avinash share profits 3 : 2 : 1. Avinash retires on 1 July 2022, when the Balance Sheet shows a debit balance of ₹1,20,000 in Profit and Loss Account. To find the amount due to Avinash, this balance is transferred:

Nidhi, Kunal and Kabir share profits 2 : 1 : 2. Kunal retires; after all adjustments for reserves and revaluation his capital account shows ₹80,000. Nidhi and Kabir agree to pay him ₹1,00,000 in full settlement. Kunal's share of goodwill is:

Assertion (A): Goodwill is an intangible asset.
Reason (R): Goodwill is the value of a firm's reputation for earning future profits above the normal profits.

A and B share profits 7 : 1. A withdrew a fixed ₹12,000 at the beginning of every quarter. Interest on drawings is @ 6% p.a. Which journal entry records the interest on A's drawings at year end?

The part of authorised capital that is actually offered to the public for subscription is called:

Zinki Ltd. issued a share of ₹100 at a 20% premium. It was forfeited because the first call of ₹30 and the final call of ₹10 were not paid. The lowest price at which this share can be reissued is:

Akshita and Anurag share profits 2 : 1. Akshat is admitted for a 1/3 share, taking 2/3 of his share from Akshita and 1/3 from Anurag. The new ratio of Akshita, Anurag and Akshat is:

On dissolution, which of these are transferred to Realisation Account?
(i) Provision for Doubtful Debts
(ii) Partners' Loan
(iii) General Reserve
(iv) Goodwill

P, Q and R share profits 4 : 3 : 1. P dies on 1 September 2022; profit up to the date of death is estimated at ₹80,000. P's share of this profit will be recorded by:

Pooja, Nita and Anita share profits 3 : 2 : 1. Pooja retires and her share is taken by Nita and Anita equally. Their new ratio is:

Suman, Vivek and Vinod share profits 5 : 3 : 2. Suman retires on 1 April 2022. After all adjustments (revaluation, goodwill, reserves), Vivek's capital is ₹3,60,000 (Cr.) and Vinod's ₹1,40,000 (Cr.). The continuing partners decide to make their capitals proportionate to their new profit-sharing ratio. Pass journal entries for the cash brought in or withdrawn, showing workings.

Anu, Manu, Tanu and Kanu share profits 2 : 1 : 2 : 1. From 1 April 2022 they will share 4 : 2 : 3 : 1. On that date goodwill is valued at ₹1,20,000 and General Reserve in the books is ₹36,000. Pass the journal entries, showing workings.

Annex Ltd. offered 1,00,000 shares of ₹10 each at a 10% premium, the full amount payable on application. Applications came for 3,00,000 shares and shares were allotted to all applicants pro-rata. Pass journal entries in the books of Annex Ltd.

Shovan Ltd. took over assets of ₹60,00,000 and liabilities of ₹10,00,000 of Swami Ltd. for an agreed price of ₹45,00,000, paid by issuing 10% debentures of ₹100 each at a 25% premium. Pass journal entries in Shovan Ltd.'s books.

On 1 April 2022 the capital of Ashu and Madhav's firm is ₹1,50,000. Normal rate of return is 10% and average profits are ₹23,500. Find goodwill at three years' purchase of super profits.

Rakshit and Malik share profits 4 : 1. On 1 April 2021 their capitals were ₹1,20,000 and ₹80,000. On 1 December 2021 they decided the firm's total capital should be ₹3,00,000, contributed in the ratio 2 : 1. Interest on capital is allowed @ 6% p.a. Calculate interest on capital for the year ended 31 March 2022.

Sandesh Ltd. has authorised capital of ₹30,00,000 in equity shares of ₹10 each. It invited applications for 70,000 shares and received applications for 69,000 shares. All calls were made and received except the first and final call of ₹2 per share on 3,000 shares, which were then forfeited.
(a) Show 'Share Capital' in the Balance Sheet as per Schedule III, Part I of the Companies Act, 2013.
(b) Prepare the Notes to Accounts.

Sudhir, Deepak and Naveen share profits 2 : 2 : 1. Their Balance Sheet on 31 March 2022:
\[\begin{array}{|l|r|l|r|}\hline \text{Liabilities} & \text{₹} & \text{Assets} & \text{₹}\\\hline \text{Creditors} & 50{,}000 & \text{Land and Building} & 2{,}10{,}000\\ \text{General Reserve} & 1{,}00{,}000 & \text{Machinery} & 1{,}90{,}000\\ \text{Loan} & 1{,}20{,}000 & \text{Stock} & 30{,}000\\ \text{Capitals: Sudhir 1,60,000} & & \text{Investments} & 1{,}70{,}000\\ \quad \text{Deepak 1,50,000} & & \text{Advertisement Suspense A/c} & 1{,}20{,}000\\ \quad \text{Naveen 1,40,000} & 4{,}50{,}000 & & \\ \text{Total} & 7{,}20{,}000 & \text{Total} & 7{,}20{,}000\\\hline\end{array}\]
Sudhir died on 30 June 2022. The deed provides: (i) goodwill = 2½ years' purchase of average profits of the last four years, which were ₹1,80,000; (ii) his share of profit up to death is based on sales – sales for 2021-22 were ₹4,00,000 with profit ₹1,00,000, and sales from 1 April to 30 June 2022 were ₹1,50,000; (iii) interest on capital @ 7% p.a.
Prepare Sudhir's Capital Account to be rendered to his executors.

Pass journal entries for forfeiture and reissue of shares:
(i) BCG Ltd. forfeited 75 shares of ₹10 each, issued at a premium of ₹4, when allotment money of ₹8 per share (premium included) was not paid. The first and final call of ₹4 had not yet been made. The shares were reissued at ₹15 each fully paid.
(ii) Geetika Ltd. forfeited 1,200 shares of ₹50 each issued at par for non-payment of the final call of ₹10 per share. 900 of these were reissued at ₹45 each fully paid.

Pushkar Ltd. invited applications for 30,000 shares of ₹100 each at a 20% premium, payable: application ₹40 (incl. ₹10 premium), allotment ₹30 (incl. ₹10 premium), first call ₹30, second and final call the balance. Applications were received for 40,000 shares; applicants for 35,000 shares were allotted pro-rata and the rest refused. Excess application money was adjusted against allotment. Yogesh, who applied for 700 shares, did not pay allotment and his shares were forfeited right after allotment. The first call was then made and fully received; the final call was not made. Pass journal entries.

Yuv and Veer share profits 3 : 1. Balance Sheet on 31 March 2022:
\[\begin{array}{|l|r|l|r|}\hline \text{Liabilities} & \text{₹} & \text{Assets} & \text{₹}\\\hline \text{Creditors} & 41{,}000 & \text{Plant and Machinery} & 60{,}000\\ \text{General Reserve} & 80{,}000 & \text{Building} & 40{,}000\\ \text{Outstanding Expenses} & 12{,}000 & \text{Investments} & 60{,}000\\ \text{Capitals: Yuv 79,000} & & \text{Stock} & 50{,}000\\ \quad \text{Veer 48,000} & 1{,}27{,}000 & \text{Debtors 38,000 less Provision 4,000} & 34{,}000\\ & & \text{Cash} & 16{,}000\\ \text{Total} & 2{,}60{,}000 & \text{Total} & 2{,}60{,}000\\\hline\end{array}\]
Yash is admitted on 1 April 2022 for a 1/4 share: (i) he brings proportionate capital and ₹4,000 as his goodwill premium in cash; (ii) investments are valued at ₹68,000; (iii) plant and machinery is depreciated by 10%.
Prepare the Revaluation Account and Partners' Capital Accounts.

Reyansh, Aayushman and Sabhya share profits 5 : 3 : 2. Balance Sheet on 31 March 2022:
\[\begin{array}{|l|r|l|r|}\hline \text{Liabilities} & \text{₹} & \text{Assets} & \text{₹}\\\hline \text{Sundry Creditors} & 2{,}20{,}000 & \text{Cash} & 1{,}60{,}000\\ \text{General Reserve} & 1{,}20{,}000 & \text{Debtors 1,80,000 less Provision 20,000} & 1{,}60{,}000\\ \text{Capitals: Reyansh 6,00,000} & & \text{Stock} & 2{,}00{,}000\\ \quad \text{Aayushman 5,00,000} & & \text{Machinery} & 6{,}00{,}000\\ \quad \text{Sabhya 3,00,000} & 14{,}00{,}000 & \text{Building} & 4{,}00{,}000\\ & & \text{Patents} & 1{,}20{,}000\\ & & \text{Profit and Loss A/c} & 1{,}00{,}000\\ \text{Total} & 17{,}40{,}000 & \text{Total} & 17{,}40{,}000\\\hline\end{array}\]
Reyansh retires on this date: (i) goodwill is valued at ₹12,00,000; (ii) Aayushman and Sabhya will share future profits 2 : 3; (iii) an unrecorded creditor of ₹40,000 is to be recorded; (iv) debtors of ₹30,000 are to be written off as bad; (v) the amount due to Reyansh is transferred to his loan account.
Pass journal entries.

Aadish and Shreyansh share profits 3 : 2. Balance Sheet on 31 March 2022:
\[\begin{array}{|l|r|l|r|}\hline \text{Liabilities} & \text{₹} & \text{Assets} & \text{₹}\\\hline \text{Creditors} & 90{,}000 & \text{Cash at Bank} & 20{,}000\\ \text{Mrs. Aadish's Loan} & 30{,}000 & \text{Stock} & 24{,}000\\ \text{Shreyansh's Loan} & 30{,}000 & \text{Investments} & 30{,}000\\ \text{General Reserve} & 45{,}000 & \text{Debtors 20,000 less Provision 2,000} & 18{,}000\\ \text{Capitals: Aadish 1,00,000} & & \text{Plant} & 1{,}00{,}000\\ \quad \text{Shreyansh 97,000} & 1{,}97{,}000 & \text{Advertisement Suspense} & 2{,}00{,}000\\ \text{Total} & 3{,}92{,}000 & \text{Total} & 3{,}92{,}000\\\hline\end{array}\]
The firm is dissolved on that date: (i) debtors realise ₹17,000 and plant 10% above book value; (ii) Aadish agrees to pay Mrs. Aadish's loan and takes the stock at ₹20,000; (iii) Shreyansh takes half the investments at 10% below book value, and the other half realise ₹4,500; (iv) creditors are paid at a 10% discount; (v) realisation expenses are ₹7,000.
Prepare the Realisation Account.

Pass journal entries for the issue of debentures:
(a) Gagan Ltd. issued ₹10,00,000, 9% debentures of ₹100 each at a 5% premium, redeemable at par after four years.
(b) KS Ltd. issued ₹10,00,000, 10% debentures of ₹100 each at par, redeemable at a 10% premium after four years.
(c) QR Ltd. issued ₹10,00,000, 9% debentures of ₹100 each at a 10% discount, redeemable at a 5% premium after five years.

Which equation is correct?

Which of these is a tool of Analysis of Financial Statements?
(i) Cash Flow Statement (ii) Statement of Profit and Loss (iii) Notes to Accounts (iv) Balance Sheet

Codification (giving codes to accounts) is needed for:

Which type of accounting software suits an organisation with a very small volume of transactions and needing high adaptability?

Current assets ₹20,00,000; non-current assets ₹40,00,000; long-term borrowings ₹25,00,000; proprietary ratio 25%. Proprietors' funds are:

The result of an arithmetic expression or function is called:

In the cash flow statement of a financial enterprise, 'dividend paid' is shown under:

For a non-financial enterprise, 'interest received on investments' is shown in the cash flow statement under:

Processing data collected from various sources all at one go is called:

Which are financing activities?
(i) Issue of equity shares (ii) Cash received from debtors (iii) Redemption of debentures (iv) Cash paid to trade payables

Which accounting information sub-system is linked with other sub-systems to obtain information on costs and expenses?

The process of checking input data against some unknown data is called:

Show the major head and sub-head (if any) under which these items appear in a company's Balance Sheet (Schedule III, Part I, Companies Act 2013):
(a) Licences and franchise
(b) Loans repayable on demand
(c) Accrued income

Which error appears when Excel does not recognise text in a formula? State the steps to correct it.

'A technique of regrouping accounting data by working out arithmetical relationships between figures.' Name this technique and give two advantages of it.

Explain: (i) Memo Voucher (ii) Post-dated Voucher (iii) User-defined Voucher.

Calculate the Gross Profit Ratio: Inventory Turnover Ratio 6 times; Average Inventory ₹4,00,000; goods are sold at a profit of 25% on cost.

A company's current ratio is 2 : 1. Giving reasons, state whether each transaction will improve, reduce or not change the ratio:
(a) Goods purchased on credit ₹40,000
(b) Furniture of book value ₹8,000 sold at a loss of ₹2,000
(c) Cash received from trade receivables ₹15,000
(d) Equity shares issued ₹6,00,000

What is data formatting? Which tools are used to format data? Explain.

List eight uses of accounting software.

Two entrepreneurs started an online car-buying portal in 2011 and converted it into 'Car Easy Ltd.' in 2018. From its Balance Sheet, calculate Cash Flows from Operating Activities for 2021-22.
\[\begin{array}{|l|r|r|}\hline \text{Particulars} & \text{31.3.2022 (₹)} & \text{31.3.2021 (₹)}\\\hline \text{Share Capital} & 9{,}00{,}000 & 3{,}00{,}000\\ \text{Reserves and Surplus (balance of P\&L)} & 75{,}000 & 3{,}60{,}000\\ \text{Long-term Borrowings: 10\% Debentures} & 2{,}40{,}000 & 1{,}80{,}000\\ \text{Trade Payables} & 18{,}000 & 60{,}000\\ \text{Short-term Provisions: Provision for Tax} & 2{,}04{,}000 & 2{,}10{,}000\\ \text{Fixed Assets: Machinery (cost)} & 11{,}52{,}000 & 6{,}45{,}000\\ \quad \text{Less Accumulated Depreciation} & (1{,}44{,}000) & (69{,}000)\\ \text{Inventories} & 3{,}54{,}000 & 3{,}87{,}000\\ \text{Cash and Cash Equivalents} & 75{,}000 & 1{,}47{,}000\\ \text{Total of Balance Sheet} & 14{,}37{,}000 & 11{,}10{,}000\\\hline\end{array}\]
Additional information: (i) 10% debentures were issued on 31 March 2021 (opening ones); (ii) tax of ₹80,000 was paid during the year.

What is the 'Present Value' of an investment? Explain the financial function used to calculate it.