Accountancy

Sara and Tara are partners. On 1st April 2023 their capitals were ₹6,00,000 and ₹4,00,000. On 1st October 2023 Tara took out ₹1,00,000 for her personal use. The deed allows interest on capital at 8% p.a. What interest on capital will Tara get for the year ended 31st March 2024?

Assertion (A): Every partner who carries on the firm's business is a principal and also an agent of all the other partners.
Reason (R): All partners are linked by a relationship of mutual agency.

VL Ltd. offered 90,000 equity shares of ₹10 each at a 10% premium; the full amount was due on application. Applications came for 1,00,000 shares and all applicants were allotted shares on a pro-rata basis. How much was received on application?

VX Ltd. issued 30,000, 8% debentures of ₹100 each at a 10% discount, redeemable at some premium. On issue, Loss on Issue of Debentures Account was debited with ₹4,50,000. What was the premium on redemption?

Kartik, Inder and Lalit share profits 4 : 3 : 2. From 1st April 2024 they change the ratio to 2 : 3 : 4. Goodwill is valued at ₹1,80,000. Which single journal entry records the effect?

Nidhi, Pranav and Ishu share profits 5 : 4 : 1. From 1st April 2024 the ratio becomes 4 : 1 : 5. On that date the Profit and Loss Account shows a debit balance of ₹4,00,000. Which entry is correct?

Moksh and Pran share profits 1 : 2, with capitals ₹5,00,000 and ₹3,00,000. Tushar is admitted on 1st April 2024 for 1/4 share and brings ₹4,00,000 as capital. Find the goodwill of the firm (hidden goodwill).

Money received from shareholders before the directors have actually called it up is:

Debentures whose holders' names, addresses and holding details are recorded in a register maintained by the company are called:

The part of the called-up capital that has actually been received from shareholders is known as:

Misha, Sarita and Isha share profits 3 : 2 : 1. From 1st April 2024 they decide to share equally. What is each partner's gain or sacrifice?

Sia, Tisha and Aryan share profits 4 : 7 : 1. Books close on 31st March. Tisha dies on 1st July 2024. In what ratio will Sia and Aryan take over Tisha's share (nothing else agreed)?

Anuj and Kartik share profits 5 : 4. Anuj drew ₹20,000 at the start of every alternate month beginning 1st April 2023, during the year ended 31st March 2024. Interest on drawings is 6% p.a. Find the interest on Anuj's drawings.

Vishesh, Manik and Amit share profits 5 : 4 : 1. Amit retires on 31st March 2024 and Vishesh and Manik take his share in the ratio 2 : 3. Find the new ratio of Vishesh and Manik.

Varsha, Aryan and Nimit share profits 2 : 2 : 1. Varsha retires, giving one-third of her share to Aryan and the rest to Nimit. Find the new ratio of Aryan and Nimit.

Under the fixed capital method, a partner's drawings are recorded on the:

4,000 shares of ₹10 each were forfeited because the second and final call of ₹2 per share was not paid. What is the minimum amount the company must collect when it reissues these shares?

On 1st April 2023 Veebee Ltd. issued 20,000, 13% debentures of ₹100 each at a 10% discount, redeemable at a 5% premium after 4 years. What is the total debenture interest for the year ended 31st March 2024?

Arushi, Vivaan and Mitali's firm was dissolved on 31st March 2024. Debtors were ₹60,000 with a provision for doubtful debts of ₹3,000. Debtors of ₹8,000 turned out bad and the rest were collected in full. How much was realised from debtors?

Ashmit, Veena and Rohan share profits 3 : 2 : 1. Veena retires on 31st March 2024. After all adjustments the capitals of Ashmit, Veena and Rohan are ₹2,00,000, ₹1,80,000 and ₹1,20,000. Veena is paid off with cash brought in by Ashmit and Rohan so that their capitals become proportionate to their new ratio. What are their new capitals?

Nita, Vidur and Mita (3 : 4 : 1) admit Samir on 1st April 2024; the new ratio is 1 : 1 : 1 : 1. Machinery appears at ₹6,00,000, but it is found to be overvalued by 20%. At what value will machinery appear in the new Balance Sheet?

Zaina, Yash and Kiran share profits 2 : 2 : 1. Zaina dies on 1st July 2024. The deed says her share of profit up to death is to be worked out on the basis of sales. Sales for 2023-24 were ₹4,00,000 and from 1st April to 30th June 2024 were ₹1,50,000. Profit for 2023-24 was ₹1,00,000. Books close on 31st March. Calculate Zaina's share of profit till death and pass the journal entry.

Amish, Nitish and Misha have shared profits 2 : 2 : 1 for some years. Misha wants equal shares, applied retrospectively to the last three years, and the others agree. Profits: 2021-22 ₹1,15,000; 2022-23 ₹1,24,000; 2023-24 ₹2,11,000. Pass a single adjustment entry and show workings.

Vidhi, Manas and Ansh share profits 2 : 3 : 5. Ansh is guaranteed a minimum profit of ₹1,20,000 in any year; any shortfall is borne equally by Vidhi and Manas. Profit for the year ended 31st March 2024 is ₹2,00,000. Pass journal entries for the division of profit.

Delight Ltd. took over assets worth ₹4,00,000 and liabilities of ₹70,000 of Marvel Ltd. for a purchase consideration of ₹3,60,000, paid by issuing 11% debentures of ₹100 each at a 20% premium. Pass journal entries in Delight Ltd.'s books.

Prime Ltd. took over assets of ₹6,00,000 and liabilities of ₹1,00,000 of Rabi Ltd. for ₹3,60,000, paying by 10% debentures of ₹100 each issued at a 10% discount. Pass journal entries in Prime Ltd.'s books.

Rajat and Karan's firm has capital of ₹15,00,000; the market rate of return is 12%. Their annual salaries are ₹20,000 and ₹30,000. Profits of the last three years: ₹2,40,000, ₹2,80,000 and ₹3,20,000. Value goodwill at two years' purchase of the average super profit of the last three years.

Pass journal entries for the issue of debentures:
(i) Kiero Ltd. issued 80,000, 9% debentures of ₹100 each at par, redeemable at a 10% premium.
(ii) Naro Ltd. issued 50,000, 10% debentures of ₹100 each at a 5% premium, redeemable at a 10% premium.

Raja, Bharat and Vedika share profits 2 : 2 : 1. Their Balance Sheet on 31st March 2024 shows Creditors ₹80,000, General Reserve ₹50,000 and Capitals Raja ₹1,10,000, Bharat ₹1,00,000, Vedika ₹90,000 (assets: Bank 15,000, Stock 70,000, Debtors 85,000, Furniture 1,20,000, Machinery 1,40,000; total ₹4,30,000). Vedika dies on 31st July 2024. Her representatives get: (i) her capital balance; (ii) interest on capital at 8% p.a.; (iii) her share of profit to the date of death on the basis of last year's profit, which comes to ₹3,000; (iv) her share of goodwill at two years' purchase of the average profit of the last three years (average ₹40,000). Her drawings till death were ₹12,000. Prepare Vedika's Capital Account to be rendered to her executors.

PL Ltd. has an authorised capital of ₹10,00,000 (1,00,000 equity shares of ₹10). It offered 90,000 shares to the public, received applications for 82,000 shares and allotted all of them. Everything was received except the first and final call of ₹2 per share on 2,000 shares allotted to Atishay; these shares were forfeited.
(i) Calls in Arrears shown in Notes to Accounts: (A) ₹4,000 (B) ₹16,000 (C) Nil (D) ₹20,000
(ii) Number of shares after forfeiture: (A) 98,000 (B) 88,000 (C) 82,000 (D) 80,000
(iii) Amount shown as Share Forfeiture: (A) ₹16,000 (B) ₹4,000 (C) ₹20,000 (D) Nil
(iv) Amount shown as Issued Capital: (A) ₹10,00,000 (B) ₹9,00,000 (C) ₹8,20,000 (D) ₹8,00,000
(v) Share Forfeiture balance is shown in Notes to Accounts under: (A) Authorised capital (B) Issued capital (C) Subscribed capital (D) Not shown
(vi) Share Capital in the Balance Sheet: (A) ₹8,00,000 (B) ₹8,16,000 (C) ₹9,16,000 (D) ₹7,90,000

Vibha and Ajit's firm is dissolved; assets (other than cash) and outside liabilities have been transferred to Realisation Account. Pass journal entries for:
(i) Creditors of ₹46,000 accepted ₹9,000 cash and furniture worth ₹32,000 in full settlement.
(ii) Stock was ₹20,000; Ajit took 40% of it at a 10% discount and the rest was sold for ₹18,000.
(iii) Vibha was to look after the dissolution for a remuneration of ₹16,000 and was to bear the expenses; actual expenses ₹15,000 were paid by her.
(iv) Ajit's loan of ₹45,000 was settled at ₹42,000.
(v) An unrecorded machine was taken over by Vibha at ₹23,000 (expected value ₹28,000).
(vi) Profit and Loss Account had a debit balance of ₹20,000.

Altima Ltd. invited applications for 2,00,000 equity shares of ₹10 each at a premium of ₹4: ₹7 (including ₹1 premium) on application-cum-allotment and the balance on first and final call. Applications came for 2,40,000 shares; those for 30,000 shares were rejected and the rest were allotted pro-rata. Excess application money was refunded. Manvi, holding 4,000 shares, did not pay the call and her shares were forfeited. All forfeited shares were reissued at ₹4 per share fully paid. Pass journal entries.

Pass journal entries for forfeiture and reissue:
(i) Macil Ltd. forfeited 3,000 shares of ₹100 each issued at a 20% premium for non-payment of allotment money of ₹30 per share and first call of ₹40 per share (including ₹10 premium). The second and final call of ₹30 (including ₹10 premium) had not been called. 2,000 of these shares were reissued as ₹80 paid up per share for ₹90 per share received.
(ii) Avian Ltd. forfeited 10,000 shares of ₹10 each on which the first call of ₹4 was unpaid; the final call of ₹1 was not yet made. 4,000 of these were reissued to Ajay as fully paid for ₹9 per share.

Aryan and Adya share profits 3 : 1. Balance Sheet on 31st March 2024 — Liabilities: Capitals Aryan ₹3,20,000, Adya ₹2,40,000; Workmen's Compensation Reserve ₹20,000; Bank Loan ₹60,000; Creditors ₹48,000 (total ₹6,88,000). Assets: Machinery ₹3,90,000; Furniture ₹80,000; Debtors ₹90,000 less provision ₹1,000 = ₹89,000; Stock ₹77,000; Cash ₹32,000; Profit & Loss A/c (debit) ₹20,000. Dev is admitted on 1st April 2024 for 1/5 share: (i) Dev brings capital proportionate to his share; (ii) goodwill is ₹2,00,000 and Dev brings his share of premium in cash; (iii) machinery revalued at ₹4,50,000; (iv) provision for doubtful debts to be 5% of debtors; (v) a liability of ₹3,500 in creditors will not arise. Prepare Revaluation Account and Partners' Capital Accounts.

Ashish, Vinit and Reema share profits 2 : 2 : 1. Balance Sheet on 31st March 2024 — Liabilities: Capitals Ashish ₹2,00,000, Vinit ₹2,00,000, Reema ₹1,00,000; General Reserve ₹50,000; Bills Payable ₹80,000; Creditors ₹40,000 (total ₹6,70,000). Assets: Patents ₹80,000; Furniture ₹3,00,000; Stock ₹1,70,000; Debtors ₹80,000 less provision ₹8,000 = ₹72,000; Cash ₹48,000. Vinit retires: (i) goodwill ₹60,000 is adjusted through the capitals of Ashish and Reema, who will share future profits 3 : 2; (ii) stock is reduced by ₹10,000; (iii) patents are undervalued by 20%; (iv) Vinit is paid ₹20,000 at once and the balance goes to his loan account at 8% p.a. Pass journal entries.

Which tool of financial statement analysis shows the trend and direction of a firm's financial position and operating results?

Ratios that measure how efficiently a business uses its resources in its operations are called:

Which of these is NOT an advantage of a Computerised Accounting System?

Codification (coding of accounts) is needed for:

Manak Enterprises has a debt-equity ratio of 2.5 : 1. Which transaction will increase this ratio?

In Excel, which button do you click to see all available shape styles for a chart element?

Which of these are operating activities for a cash flow statement?
(i) Cash paid to suppliers for goods and services
(ii) Dividend received from investments in other enterprises
(iii) Cash received from royalties, fees, commission and other revenue
(iv) Repayment of borrowings

Which statement is INCORRECT (for a non-financial company)?

To safeguard assets and make the best use of a business's resources, it should:

Which item is NOT included in the account group 'Loans (Liabilities)' of the Balance Sheet groups?

Statement I: Investing activities are the acquisition and disposal of long-term assets and other investments not included in cash equivalents.
Statement II: Cash paid to acquire fixed assets, including intangibles and capitalised research and development, is a cash outflow from investing activities.

Which voucher is normally used for adjustment (non-cash) transactions?

Show the major head and sub-head (if any) of these items in a company's Balance Sheet as per Schedule III, Part I of the Companies Act, 2013:
(i) Computer software
(ii) Outstanding salary
(iii) Work in progress

Explain 'Data', 'Information' and 'Transaction'.

Prepare a Common Size Statement of Profit and Loss of CN Ltd. for the years ended 31st March 2023 and 2024 from: Revenue from operations 2023-24 ₹40,00,000, 2022-23 ₹20,00,000; Purchase of stock-in-trade ₹8,00,000 and ₹4,00,000; Other expenses ₹4,00,000 and ₹2,00,000; Tax at 50%.

List six features of accounting software.

Find opening and closing trade payables: total purchases ₹15,00,000; cash purchases are 25% of credit purchases; trade payables turnover ratio 4 times; closing trade payables are twice the opening trade payables.

Calculate Return on Investment: Shareholders' funds ₹16,00,000; 10% Debentures ₹8,00,000; Current liabilities ₹2,00,000; Current assets ₹5,00,000; Non-current assets ₹21,00,000; Net profit after tax ₹3,00,000; tax ₹1,00,000.

Data from a Notepad file can be saved as an Excel file, which shows that an Excel cell can hold different types of data. Name and explain the four types of data in a worksheet cell.

What is 'Data Validation' in Excel? What does the 'Error Alert' tab allow you to do?

(a) Calculate cash flows from investing activities: Machinery (at cost) 31-3-2024 ₹3,80,000, 31-3-2023 ₹3,00,000; Accumulated depreciation ₹62,000 and ₹45,000. A machine costing ₹50,000 (accumulated depreciation ₹20,000) was sold at a profit of 10% (on book value).
(b) Calculate cash flows from financing activities: Equity share capital ₹12,00,000 (2024) and ₹8,00,000 (2023); 11% Debentures ₹3,00,000 and ₹4,00,000; Securities premium ₹1,40,000 and ₹1,00,000. Interest paid on debentures ₹40,000.

Chart elements can be formatted and edited as needed. What options does a user have when changing the 'shape style' of a chart element?