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X and Y share profits in the ratio of 5 : 3 . Their Balance Sheet as at 31st March, 2018 was:

Mohan Lal and Sohan Lal were partners in a firm sharing profits and losses in 3:2 ratio. They admitted Ram Lal for 1/4 share on 1.1.2013. It was agreed that goodwill of the firm will be valued at 3 years purchase of the average profits of last 4 years which were Rs. 50,000 for 2013, Rs. 60,000 for 2014, Rs. 90,000 for 2015 and

Rs. 70,000 for 2016. Ram Lal did not bring his share of goodwill premium in cash. Record the necessary journal entries in the books of the firm on Ram Lal’s admission when:

a) Goodwill already appears in the books at Rs. 2,02,500.

b) Goodwill appears in the books at Rs. 2,500.

c) Goodwill appears in the books at Rs. 2,05,000.

From the following
Receipt and Payment Account of a club, prepare Income and Expenditure
Account for the year ended December 31, 2006 and the Balance Sheet as
on that date.

Additional
Information:

Closing Trade Receivables ₹ 4,00,000; Cash Sales being 25% of Credit Sales; Excess of Closing Trade Receivables over Opening Trade Receivables ₹ 2,00,000; Revenue from Operations, i.e., Revenue from Operations, i.e., Net Sales ₹ 15,00,000. Calculate Trade Receivables Turnover Ratio



[Hint: 1. Net Credit Sales = Total Sales − Cash Sales

2. Opening Trade Receivables = Closing Trade Receivables − Excess of Closing Trade Receivables over Opening Trade Receivables.]

Rajan and Rajani are partners in a firm. Their capitals were Rajan Rs. 3,00,000; Rajani Rs. 2,00,000. During the year 2002, the firm earned a profit of Rs.1,50,000. Calculate the value of goodwill of the firm assuming that the normal rate of return is 20%.

In case of other enterprises cash flow arising from interest paid should be classified as cash flow from ___ while dividends and interest received should be stated as cash flow from___.

What is financial risk? Why does it arise?

Company A has Rs. 12 Lakhs of net sales over the past 12 months. The average working capital during that time was Rs. 2 Lakhs. Calculate Working capital Turnover ratio.

The Balance Sheet of Virendra Paper Ltd. as at 31st March, 2019 is given below:

Notes to Accounts

Prepare Trial Balance from the following information :

Prepaid Expenses Rs. 5,000, Profit & Loss A/c (Profit) Rs. 8,000, Outstanding Rent Rs. 2,000, Bad Debts Recovered Rs. 4,000, Interest on Investment Rs. 1,000, Due to Mohan Rs. 5,000, Bank overdraft Rs. 2,000, Discount Allowed Rs. 800, Due from Vinod Rs. 1,200, Investment Rs. 15,000, Patents Rs.4,000, Machinery Rs.6,000, Capital Rs. 10,000.

The return on debentures is called ___

The maximum number of share that can be issued in a single issue combinely is called __________________.

________________ = operating profits + non-operating income - non-operating expenses

Q21. Consider the following statements:

1. Debentures are long-term financial instruments which acknowledge a debt obligation towards the issuer.

2. The debentures which can’t be converted into shares or equities are called non-convertible debentures (or NCDs).

Which of the following statements are correct?

Kumar Ltd purchases assets of Rs 6,30,000 from Bhanu Oil Ltd. Kumar Ltd. issued equity share of Rs 100 each fully paid in consideration. What journal entries will be made, if the share are issued, (a) at par, (b) at discount of 10 % and (c) at premium of 20%.

Past adjustments refer to those adjustments which affect the distribution of ___.

Pankaj, Naresh and Saurabh are partners sharing profit in the ratio of 3 : 2 :1. Naresh retired from the firm due to his illness. On that date, the Balance Sheet of the firm was as follows

$\begin{array}{ccccccc}& & & & & & \\ & & & & \text{Balance Sheet}& & \\ \text{Dr}& & & & \text{as on March 31, 2007}& & \text{Cr}\end{array}\begin{array}{cccccc}\text{Capital and Liabilities}& & \text{Amt.(Rs)}& \text{Assets}& & \text{Amt.(Rs)}\\ \text{General Reserve}& & \text{12,000}& \text{Bank}& & \text{7,600}\\ \text{Sundry Creditors}& & \text{15,000}& \text{Debtors}& \text{6,000}& \\ \text{Bills Payable}& & \text{12,000}& \text{(-)Provision for}& \underset{–}{\left(400\right)}& \text{5,600}\\ \text{Outstanding Salary}& & \text{2,200}& \text{Doubtful Debts}& & \\ \text{Provision for Legal Damages}& & \text{6,000}& \text{Stock}& & \text{9,000}\\ \text{Capitals}& & & & & \\ \text{Pankaj}& \text{46,000}& & \text{Furniture}& & \text{41,000}\\ \text{Naresh}& \text{30,000}& & \text{Premises}& & \text{80,000}\\ \text{Saurabh}& \underset{–}{20,000}& \text{96,000}& & & \\ & & \overline{\underset{–}{\underset{–}{1,43,200}}}& & & \overline{\underset{–}{\underset{–}{1,43,200}}}\end{array}$

Additional Information

(i) Premises have appreciated by 20%, stock depreciated by 10% and provision for doubtful debts was to be made 5% on debtors. Further, provision for legal damages is to be made for Rs. 1,200 and furniture brought up to Rs.45,000.

(ii) Goodwill of the firm be valued at Rs. 42,000.

(iii) Rs. 26,000 from Naresh's Capital account be transferred to his loan account and balance be paid through bank; if required, necessary loan may be obtained from Bank.

(iv) New profit sharing ratio of Pankaj and Saurabh is decided to be 5:1.

Give the necessary ledger accounts the balance sheet of the firm after Naresh's retirement.

Interest on debentures is calculated on ___

Notes to accounts:

Additional Information:

During past adjustment, it is not compulsory that capital accounts of all partners are affected.

State the meaning of Income and Expenditure Account.

Which among the following are causes of rise in public expenditure?

From the following
particulars taken from the Cash Book of a health club, prepare a
Receipts and Payments Account.

Ravi Ltd., forfeited 800 shares of Rs. 10 each, Rs. 7.50 paid, for non-payment of Final call of Rs. 2.50 per share. Out of these, 600 shares were re-issued at Rs. 6 per share as fully paid up. Calculate the amount to be transferred to Capital Reserve?

Aakriti and Bindu entered into partnership for making garment on April 01, 2016 without any Partnership agreement. They introduced Capitals of Rs 5,00,000 and Rs 3,00,000 respectively on October 01, 2016. Aakriti Advanced. Rs 20,000 by way of loan to the firm without any agreement as to interest. Profit and Loss account for the year ended March 2017 showed profit of Rs 43,000. Partners could not agree upon the question of interest and the basis of division of profit. You are required to divide the profits between them giving reason for your solution.

Calculate Operating Ratio from the following information:

Operating Cost ₹ 6,80,000; Gross Profit 25%; Operating Expenses ₹ 80,000.

Differentiate between redemption of debentures out of capital and out of profits.

Total Assets to Debt Ratio = _____

A corporation's net income will cause an increase to which of the following?

(a) Ravi Ltd. forfeited 800 shares of Rs 10 each, Rs 7.50 paid, for non-payment of Final Call of Rs 2.50 per share. Out of these, 600 shares were re-issued as fully paid up in such a way that Rs 2,100 were transferred to capital reserve. Pass necessary journal entries.

(b) X Ltd. forfeited 800 shares of Rs 10 each, Rs 7.50 called-up, for non-payment of Final Call of Rs 2.50 per share. Out of these, 600 shares were re-issued for Rs 6 per share as Rs 7.50 paid up. Pass necessary journal entries.

(c) 400 shares of Rs 10, on which Rs 8 has been called and Rs 6 has been paid, are forfeited. Out of these, 300 are re-issued for Rs 7 as fully paid. Pass necessary journal entries.

Which of the following components is/are included in Net Factor Income from Abroad ?

Code:

A and B were partners in a firm sharing profits and losses in the
ratio of 3:2. They admit C into the partnership with 1/6 share in the
profits. Calculate the new profit sharing ratio?