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Capital advances are advances given for procurement of fixed assets which are ___

Interest coverage ratio is expressed in terms of ___

After transferring liabilities like creditors and bills payables in the realisation account, in the absence of any information regarding the payment, such liabilities are treated as ___

Calculate Total Assets to Debt Ratio from the following information :

$\begin{array}{cccc}\text{Particulars}& \text{Rs.}& \text{Particulars}& \text{Rs.}‘\\ \text{Long-term Borrowings}& 18,00,000& \text{Share Capital}& \text{10,00,000}\\ \text{Long-term Provisions}& 2,00,000& \text{Security Premium Reserve}& \text{3,00,000}\\ \text{Trade Payables}& 5,00,000& \text{General Reserve}& \text{5,00,000}\\ & & \text{Surplus i.e., Balance in}& \\ & & \text{Statement of Profit and Loss}& \text{(2,00,000)}\end{array}$

Following is the Balance Sheet of Jain, Gupta and Malik as on March 31, 2002.

$\text{Balance Sheet}$
$\text{as on March 31,2007}$
$\begin{array}{cccc}\text{Capital and Liabilities}& \text{Amt. (Rs)}& \text{Assets}& \text{Amt. (Rs)}\\ \text{Sundry Creditors}& 19,800& \text{Land and Building}& 26,000\\ \text{Telephone Bills}& 300& \text{Bonds}& 14,370\\ \text{Outstanding}& 8,950& \text{Cash}& 5,500\\ \text{Accounts Payable}& & \text{Bills Receivable}& 23,450\\ \text{Accumulated Profits}& 16,750& \text{Sundry Debtors}& 26,700\\ \text{Capital}& & \text{Stock}& 18,100\\ \text{Jain}40,000& & \text{Office Furniture}& 18,250\\ \text{Gupta}60,000& & \text{Plant and Machinery}& 20,230\\ \text{Malik}\underset{–}{20,000}& 1,20,000& \text{Computers}& 13,200\\ & \overline{\underset{–}{\underset{–}{1,65,800}}}& & \overline{\underset{–}{\underset{–}{1,65,800}}}\end{array}$

The partners have been sharing profits in the ratio of 5 : 3 : 2. Malik decides to retire from business on April 1, 2002 an d his share in the business is to be calculated as per the following terms of revaluation of assets and liabilities : Stock, Rs. 20,000; office furniture, Rs. 14,250; plant and machinery Rs. 23,530; land and building Rs. 20,000; A provision of Rs. 1,700 to be created for doubtful debts. The goodwill of the firm is valued at Rs. 9,000.

The continuing partners agreed to pay Rs. 16,500 as cash on retirement of Malik, to be contributed by continuing partners in the ratio of 3:2. The balance in the capital account of Malik will be treated as loan. Prepare revaluation account, capital accounts and balance sheet of the reconstituted firm.

Zex Ltd. purchases a plant and machinery of Rs. 10,00,000 from Suraj Enterprises. It pays Rs. 2,00,000 through cheque and issues fully paid up equity shares of Rs. 20 each for the balance amount. You are required to pass the necessary journal entries in the books of zex Ltd.

Calculate the amount of gross profit and operating profit on the basis of the following balances extracted from the books of M/s Rajiv & Sons for the year ended 31st March, 2016

$\begin{array}{cc}& \text{Amt (Rs.)}\\ \text{Opening stock}& 50,000\\ \text{Net sales}& 11,00,000\\ \text{Net purchases}& 6,00,000\\ \text{Direct expenses}& 60,000\\ \text{Administration expenses}& 45,000\\ \text{Selling and distribution expenses}& 65,000\\ \text{Loss due to fire}& 20,000\\ \text{Closing stock}& 70,000\end{array}$

The financial data will be comparative only when same accounting principles are used in preparing these statements.

Pinki, Deepti and Kaku are partner's sharing profits in the ratio of 5 : 4 : 1 Kaku is given a guarantee that his share of profits in any given year would not be less than Rs 5,000. Deficiency, if any, would be borne by Pinki and Deepti equally, Profits for the year amounted to Rs 40,000. Record necessary journal entries in the books of the firm showing the distribution of profit.

Aman, Babita and Suresh are partners in a firm. Their profit sharing ratio is 2 : 2 : 1. Suresh is guaranteed a minimum amount of Rs 10,000 as share of profit, every year. Any deficiency on that account shall be met by Babita. The profits for two years ending December 31, 2005 and December 31, 2006 were Rs 40,000 and Rs 60,000 respectively. Prepare the profit and loss appropriation account for the two years.

$$\begin{array}{cccc}\text{Particulars}& \text{Amt.}& \text{Particulars}& \text{Amt}\\ \text{Opening Stock}& 5,000& \text{Sales}& 50,000\\ \text{Purchases}& 25,000& \text{Closing Stock}& 7,500\\ \text{Direct Expenses}& 2,500& & \\ \text{Gross Profit}& \underset{–}{25,000}& & \underset{–}{}\\ & \underset{–}{57,500}& & \underset{–}{57,500}\\ \text{Administrative Expenses}& 7,500& \text{Gross Profit}& 25,000\\ \text{Interest}& 1,500& & \\ \text{Selling Expensses}& 6,000& & \\ \text{Net Profit}& \underset{–}{10,000}& & \underset{–}{}\\ & \underset{–}{25,000}& & \underset{–}{25,000}\end{array}$$

$$\begin{array}{cccc}\text{Capital and Liabilities}& \text{Amt.}& \text{Assets}& \text{Amt}\\ \text{Share Capital}& 50,000& \text{Land and Building}& 25,000\\ \text{Current Liabilities}& 20,000& \text{Plant and Machinery}& 15,000\\ \text{Profit and Loss}& 10,000& \text{Stock}& 7,500\\ & & \text{Sundry Debtors}& 7,500\\ & & \text{Bills Receivables}& 6,250\\ & & \text{Cash in hand and at bank}& 8,750\\ & & \text{Furniture}& 10,000\\ & \underset{–}{}& & \underset{–}{}\\ & \underset{–}{80,000}& & \underset{–}{80,000}\end{array}$$

Calculate:
(i) Gross Profit Ratio
(ii) Current Ratio
(iii) Acid Test Ratio
(iv) Stock Turnover Ratio
(v) Fixed Assets Turnover Ratio

Differentiate between sacrificing ratio and gaining ratio.

Under ___ method , the capital account always shows a credit balance.

Mona Earth Mover Limited decided to issue 12,000 shares of Rs.100 each payable at Rs.30 on application, Rs.40 on allotment, Rs.20 on first call and balance on second and final call. Applications were received for 13,000 shares. How much amount shall be entered in share application account?

When the shares are issued at a price less than the face value of the share, it is known as shares issued at___

State the steps other than rejecting application that a company can take in case of over subscription.

From the information given below ascertain the profit for the year

$\begin{array}{cc}\text{Items}& (Rs.)\\ \text{Capital at the beginning of the year}& 70,000\\ \text{Additional capital introduced during the year}& 17,500\\ \text{Stock}& 59,500\\ \text{Sundry Debtors}& 25,900\\ \text{Business permises}& 8,600\\ \text{Machinery}& 2,100\\ \text{Sundry Creditors}& 33,400\\ \text{Drawing made during the year}& 26,400\end{array}$

Why is Reserves and Surplus credited to the old Partners' Capital Accounts in their old profit sharing ratio at the time of admission of a partner?

Profit or loss appropriation account is an extension of ___

Which of the following would be considered a cash-flow item from a "financing" activity?

A and B are partners sharing profits in the ratio of 2:1. C is admitted as a new partner and the new ratio is decided as 5:3:2. The assets and liabilities are revalued as:

(i) Building was appreciated by 25% (Book value of Building Rs 4,00,000).

(ii)The provision for doubtful debts was reduced from Rs 5,000 to Rs 3,000.

(iii) A provision for Rs 4,000 was to be made for an outstanding bill for repairs.

(iv) Unrecorded investments were worth Rs 10,000

(v) Unrecorded liability towards suppliers was Rs 12,000

Pass the necessary journal entries.

Normal Profit =

The inventory turnover ratio is ________ ratio.

Under ___ Method, all adjustments for drawings, salary, interest on capital, salary interest on capital, etc. are made in the capital account.

Calculate the Gross Profit Ratio from the following information : -

$\begin{array}{ccc}& \text{2016}& \text{2017}\\ & \text{Rs.}& \text{Rs.}\\ \text{Sales (Revenue from Operations)}& 1,20,000& 1,80,000\\ \text{Gross Profit}& 30,000& 36,000\end{array}$

Meena purchased Simmi's business from 1st April, 2015. The Profits disclosed by Simmi's Business for the last three years were as follows :

Year ending 31st March 2013 - Rs 40,000 (Including an Abnormal gain of Rs 5,000)

Year ending 31st March 2014 - Rs 50,000 (After charging an Abnormal Loss of Rs 10,000)

Year ending 31st March 2015 - Rs 45,000 (Excluding Rs 5,000 as annual Insurance Premium of firm's Property now Insured)

Calculate the Value of firm's goodwill on the basis of 2 years Purchase of the average Profit for the last three years.

Naresh, David and Aslam are partners sharing profits in the ratio of 5 : 3 : 7. On April 1st, 2012, Naresh gave a notice to retire from the firm. David and Aslam decided to share future profits in the ratio of 2:3. The adjusted capital accounts of David and Aslam show a balance of Rs 33,000 and Rs 70,500 respectively. The total amount to be paid to Naresh is Rs 90,500. This amount is to be paid by David and Aslam in such a way that their capital become proportionate to their new profit sharing ratio. Pass necessary journal entries for the above transactions in the books of the firm. Show your working clearly.

What role does CRR play in the creation of credit by the commercial banks?

Unfavourable balance on current account leads to high receipts of foreign exchange in the capital account. Do you agree?

What do you mean by accumulated profits and losses?

The following is the balance sheet of Tanu and Manu, who shares profit and losses in the ratio of 5:3. On December 31, 2012
$$\begin{array}{cccccccc}& & & & \text{Balance Sheet of Tanu and Manu}& & & \\ & & & & \text{as on December 31, 2012}& & & \end{array}$$

$$\begin{array}{ccccc}\text{Capital and Liabilities}& & \text{Amt. (Rs.)}& \text{Assets}& \text{Amt. (Rs.)}\\ \text{Sundry Creditors}& & 62,000& \text{Cash at Bank}& 16,000\\ \text{Bills Payable}& & 32,000& \text{Sundry Debtors}& 55,000\\ \text{Bank Loan}& & 50,000& \text{Stock}& 75,000\\ \text{Reserve Fund}& & 16,000& \text{Motor Car}& 90,000\\ \text{Capitals:}& & & \text{Machinery}& 45,000\\ \text{Tanu}& 1,10,000& & \text{Investment}& 70,000\\ \text{Manu}& \underset{–}{90,000}& \underset{–}{2,00,000}& \text{Fixtures}& \underset{–}{9,000}\\ & & 3,60,000& & 3,60,000\end{array}$$
On the above date, the firm is dissolved and the following agreement was made, Tanu agree to pay the bank loan and took away the sundry debtors. Sundry creditors accepts stock and paid Rs. 10,000 to the firm. machinery is taken over by Manu for Rs. 40,000 and agreed to pay of bills payable at a discount of 5%. Motor Car was taken over by Tanu for Rs. 60,000, Investment realised Rs. 76,000 and fixtures Rs. 4,000.
The expenses of dissolution amounted to Rs. 2,200.
Prepare realisation account, bank account and partners' capital account.

Arun and Arora were partners in a firm sharing profits in the ratio of 5:3, their fixed capital on 1-4-2010 were: Arun Rs 60,000 and Arora Rs 80,000. They agreed to allow interest on capital 12 % p.a. and to charge on drawing 15% p.a. The profit of the firm for the year ended 31-3-2011 before all the above adjustments were Rs 12,600. The drawing made by Arun were Rs 2,000 and by Arora Rs 4,000 during the year. Prepare Profit and Loss Appropriation A/c of Arun and Arora. Show your calculation clearly. The interest on capital will be allowed even if the firm incurs loss.

A company had Rs 10,00,000, $12\%$ Debentures outstanding as on 1st April 2017. During the year company took a loan of Rs 2,00,000 from the State Bank of India for which the Company placed with the bank debentures for Rs 2,50,000 as Collateral Security. Pass journal entries, if any. Also show how the debentures and Bank Loan will appear in the company's Balance Sheet as at 31st March 2018.

What is the amount of Interest on drawings for Ram at 10% p.a. for the year ended 31st March, if he withdrew Rs 6,000 at the beginning of each quarter.

As per the provisions of the Companies Act, 2013, the company must set aside a portion of profits every year and transfer it to___for redemption of debentures until the debentures

Gopalji, a Director of Gopal Agro Products Ltd. proposed in a Board meeting that to inculcate the habit of savings among people he wanted to bring a special issue of shares. His proposal was accepted by the company. The company issued 40,000 equity shares of Rs 100 each. The share money per share was payable as :

On Application Rs 30

On Allotment Rs 50

On First and Final Call Rs 20

Ramesh, a farmer holding 80 shares could not pay his call money on time. Suresh, another farmer holding 50 shares, paid the call money also with allotment.

Ramesh paid the amount due to him after four months explaining the reason for delay; the company did not charge any interest from him.

(a) Calculate the amount received by the company on allotment.

(b) Identify the value which the company is trying to communicate to the society.

Idenitfy out of the following transactions that are shown as Financing Activity:

1. Repayment of loan taken
2. Proceeds from issue of shares
3. Debentures subscribed by the company
4. Redemption of preference share
5. Interest paid
6. Dividend paid
7. Issue of bonus shares

State any one purpose for admitting a new partner in a firm.

If three partners A, B & C are sharing profits as 5:3:2, then on the death of a partner A, how much B & C will pay to A's executor on account of goodwill. Goodwill is to be calculated on the basis of 2 years' purchase of the last 3 years average profits. Profits for the last three years are: 6,58,000; 6,92,000; and 8,10,000.

Safety Locks Ltd, issued to public 2,500 12% Debentures of 100 each at 10% premium. What shall be the amount of premium ?

Calculate Current Ratio if Stock is Rs. 6,00,000; Liquid Assets Rs. 24,00,000; Quick Ratio 2 : 1.

Forfeiture of shares is the action taken by the company to ______________.

From the following information, calculate the amount of loan raised

$\begin{array}{ccc}& \text{1st april 2018 (Rs.)}& \text{31st march 2019 (Rs.)}\\ \text{Long term loans}& 2,00,000& 2,50,000\end{array}$

During the year the company repaid the loan amounting to Rs 1,00,000.

An asset shall be classified as _______ if it is expected to be realized in the company’s normal operating cycle.

Debenture Redemption Reserves account is transferred to which account?

What is the entry passed when life membership fee is received?

The first instalment which the appplicants have to pay along with the applications for shares is known as ___