A, B, C are partners sharing profits and losses in the ratio of 4 : 2 : 3. ‘A’ retires. The new profit sharing ratio between B and C will be :
a.
2 : 3
Correct Answer
b.
4 : 2
c.
2 : 1
d.
3 : 2
Step-by-Step AI Explanation
Verified Method
When partner A retires, the remaining partners B and C continue to share profits in their original ratio of 2:3. Since no new ratio or gaining ratio is provided, the new ratio remains the same as the old ratio for the remaining partners.
Q2mcq
As per the Indian Partnership Act, 1932, the rate of interest allowed on loans advanced by partners is :
a.
5% per annum
b.
8% per annum
c.
6% per annum
Correct Answer
d.
12% per annum
Step-by-Step AI Explanation
Verified Method
As per Section 13(d) of the Indian Partnership Act, 1932, if the partnership deed is silent regarding the rate of interest on loans advanced by a partner, the interest shall be paid at the rate of 6% per annum.
Q3mcq
The amount of Capital of the proprietor, if his Assets are ` 5,00,000 and Liabilities are ` 2,00,000 :
In accounting, the term 'fund' in the context of analysis of financial statements usually refers to Working Capital, which is the difference between Current Assets and Current Liabilities.
Q5mcq
Which of the following statement is true ?
a.
Goodwill is a fictitious asset
b.
Goodwill is an intangible asset
Correct Answer
c.
Goodwill cannot be acquired
d.
Goodwill is a current asset
Step-by-Step AI Explanation
Verified Method
Goodwill is an intangible asset because it represents the reputation of a business, which cannot be seen or touched but has monetary value. Fictitious assets are expenses not yet written off, and current assets are those meant to be converted into cash within a year.
Q6mcq
In a Common-size Balance Sheet, if the percentage of n on-current Asset is 85, what would be the percentage of Current Assets ?
a.
15
Correct Answer
b.
185
c.
100
d.
115
Step-by-Step AI Explanation
Verified Method
In a common-size balance sheet, the total assets are represented as 100%. If non-current assets are 85%, then current assets must be $100 - 85 = 15$ percent.
Q7mcq
Cost of Revenue from operations ` 3,00,000; Inventory in the beginning of the year ` 60,000; Inventory at the close of the year ` 40,000. Inventory turnover ratio is :
a.
6 times
Correct Answer
b.
2 times
c.
8 times
d.
3 times
Step-by-Step AI Explanation
Verified Method
Inventory Turnover Ratio $= \frac{\text{Cost of Revenue from operations}}{\text{Average Inventory}}$. Average Inventory $= \frac{60,000 + 40,000}{2} = 50,000$. Ratio $= \frac{3,00,000}{50,000} = 6 \text{ times}$.
Q8mcq
After the Forfeited shares are Reissued, the balanc e in the Forfeited shares account should be transferred to :
a.
Securities Premium account
b.
General Reserve account
c.
Surplus account
d.
Capital Reserve account
Correct Answer
Step-by-Step AI Explanation
Verified Method
After the re-issue of forfeited shares, the remaining credit balance in the Share Forfeited Account represents a profit of a capital nature, which is transferred to the Capital Reserve account.
Q9mcq
Function key F11 is used for :
a.
Company Configuration
b.
Company Features
Correct Answer
c.
Statutory and Taxation features
d.
Accounting Vouchers
Step-by-Step AI Explanation
Verified Method
In Tally accounting software, the F11 key is used to access 'Company Features'. It allows users to set up general accounting, inventory, and statutory features for the company. F12 is used for Configuration.
Q10mcq
On retirement of a partner, General Reserve is transferred to the :
a.
Capital account of the continuing partners
b.
Capital account of all the partners
Correct Answer
c.
Memorandum Revaluation account
d.
Revaluation account
Step-by-Step AI Explanation
Verified Method
On the retirement of a partner, General Reserve represents accumulated profits earned during the tenure of all partners. Therefore, it is distributed among all partners (including the retiring partner) in their old profit-sharing ratio.
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There are 300 members in a club each paying ` 100 as annual subscription. Subscription due but not received for the Current Year is ` 200. Subscription received in advance is ` 300. Find out the amount of subscription to be shown in the Income and Expenditure account.
a.
` 29,900
b.
` 30,000
c.
` 30,100
d.
` 30,700
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From the following particulars ascertain profit or loss.
Particulars `
Capital as on 1st January 2021 2,60,000
Capital as on 31st December 2021 3,60,000
Additional Capital introduced during the year 20,000
Drawings made during the year 50,000
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Ram and Shyam are partners. Ram withdraws ` 12,000 at the beginning of each half year. Interest on drawings is chargeable @10% p.a. Calculate interest on drawings for the year ending 31st December 2021 using average period method.
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Classify the following expenditure of not-for-profit organisation as Capital or Revenue. (i)Honorarium (ii)Purchase of sports equipment (iii)Purchase of books for library
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Antony and Akbar were partners who shared profits and losses in the ratio of 3 : 2. Balance in their Capital account on 1st January 2018 was, Antony ` 60,000 and Akbar ` 40,000. On 1st April 2018 Antony introduced additional capital of ` 10,000. Akbar introduced additional capital of ` 5,000 during the year. Calculate interest on capital at 6% p.a. for the year ending 31st December 2018.
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Sam and Jose are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1st April 2018, they admitted Joel as a partner. On the date of Joel’s admission, goodwill appeared in the books of the firm as ` 20,000. Assuming that the accounts are maintained on Fluctuating Capital method, pass the necessary journal entries if the partners decided to : (a)Write off the entire amount of existing goodwill. (b)Write off ` 10,000 of the existing goodwill.
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From the following particulars of Kumar Ltd., prepare a Common-size income statement for the year ended 31st March 2018.
Particulars 2017-18 `
Revenue from operations 5,00,000
Other income 20,000
Expenses 3,00,000
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Vivin, Hari and Joy are partners sharing profits and losses equally. On 31-3-2017 Hari retired. On the date of retirement, the books of the firm showed a general reserve of ` 60,000. Pass the journal entries to transfer the general reserve.
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From the following particulars, calculate total sales. Particulars ` Particulars ` Debtors on 1st April 2018 2,50,000 Bills receivable dishonoured 15,000 Bills receivable on 1st April 2018 60,000 Returns inward 50,000 Cash received from debtors 7,25,000 Bills receivable on 31st March 2019 90,000 Cash received for bills receivable 1,60,000 Sundry debtors on 31st March, 2019 2,40,000 Bad debts 30,000 Cash sales 3,15,000
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From the following particulars of Trichy Educational Society, prepare Receipts and Payments account for the year ended 31st December, 2018. Particulars ` Particulars ` Opening cash balance as on (1.1.2018) 20,000 Locker rent received 12,000 Investments made 80,000 Sale of furniture 5,000 Honorarium paid 3,000 General expenses 7,000 Donation received 80,000 Postage 1,000 Audit fees paid 2,000 Subscription received 10,000
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Rajan Ltd., purchased machinery of ` 6,00,000 from Jegan Traders. It issued equity shares of ` 10 each fully paid in satisfaction of their claim. What entries will be made if such issue is made ? (i)at par (ii)at a premium of 50%
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From the following Receipts and Payments account of Trichy Recreation club, prepare Income and Expenditure account for the year ended 31.03.2018. Receipts ` Payments ` To opening balance cash in hand 11,000 By furniture purchased 10,000 By Rent 2,800 To Dividend received 27,600 By Secretary's honorarium 15,000 To Sale of old newspapers 3,000 By postage 1,700 To Members' subscription 31,000 By General expenses 4, 350 To Locker rent 8,000 By Printing and Stationery 45,000 To Interest on investment 1,250 By Audit fees 5,000 To Sale of furniture (Book value ` 4,400) 5,000 By Closing balance Cash in hand 3,000 86,850 86,850
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From the following particulars, prepare comparative statement of financial position of Kala Ltd. 31st March, 2017 31st March, 2018 ` ` I. EQUITY AND LIABILITIES 1. Shareholders' Fund (a) Share Capital 3,00,000 3,60,000 (b) Reserves and Surplus 50,000 50,000 2. Non-current liabilities Long-term borrowings 50,000 40,000 3. Current liabilities Trade payables 20,000 12,000 Total 4,20,000 4,62,000 II. ASSETS 1. Non-current assets (a) Fixed assets 2,50,000 2,90,000 (b) Non-current investments 50,000 40,000 2. Current assets Inventories 80,000 1,00,000 Cash
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Naresh, Mani and Muthu are partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. On 31st March 2019, Muthu retires from the firm. On the date of Muthu’s retirement, goodwill appeared in the books of the firm at ` 40,000. By assuming fluctuating capital method, pass the necessary journal entries if the partners decide to : (i)Write off the entire amount of existing goodwill. (ii)Write off half of the amount of existing goodwill.
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Calculate trend percentages from the following particulars of Kurinji Ltd. 2015-16, 2016-17, 2017-18. Revenue from operations: 120, 132, 156. Other income: 50, 38, 65. Expenses: 100, 135, 123.
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From the following information relating to Arul Enterprises, calculate the value of goodwill on the basis of 2 years purchase of the average profits of 3 years. (i)Profits for the years ending 31st December 2016, 2017 and 2018 were ` 46,000, ` 44,000 and ` 50,000 respectively. (ii)A non-recurring income of ` 5,000 is included in the profits of the year 2016. (iii)The closing stock of the year 2017 was overvalued by ` 10,000.
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Progress Ltd., issued 30,000 ordinary shares of ` 10 each, payable ` 2 on application, ` 4 on allotment, ` 2 on first call and ` 2 on second and final call. All the shares are subscribed and amount was duly received. Pass journal entries.
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Calculate: Current ratio. Refer to the balance sheet data for Magesh Ltd as on 31st March 2019: Equity Share Capital: 20,00,000; Long term borrowings: 5,00,000; Short-term borrowings: 1,70,000; Trade payable: 2,50,000; Expenses payable: 30,000; Short-term Provisions: 50,000; Tangible assets: 15,00,000; Inventories: 4,50,000; Trade receivable: 7,00,000; Cash and Cash equivalents: 3,00,000; Prepaid expenses: 50,000.
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