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This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your knowledge and support exam preparation. Choose a topic below to get started.
| 98301. |
Other things remaining the same, an increase in the tax rate on corporate profit will(a) make the debt relatively cheaper(b) make the debt relatively the dearer(c) have no impact on the cost of debt(d) we can’t say |
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Answer» (a) When there is an increase in the tax on corporate profit, the debt becomes relatively cheaper. This is because interest that is to be paid to the debtors is deducted from the total income before calculating the value of tax. Thus, as the value of tax increases, the debt becomes relatively cheaper. |
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| 98302. |
What do you mean by returns to a factor? Explain the reasons for increasing returns to a factor. |
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Answer» Returns to a factor means keeping other inputs constant, the change in physical output by increasing only one physical input. Causes of increasing return:- Following factors lead to increasing returns to a factor- i. Indivisibility of the factors - Increase in units of variable factor leads to better and fuller utilisation of fixed factor. This causes the production to increase at a rapid rate. ii. Efficient utilisation of variable factor - When more units of variable factor are employed with fixed factor, then variable factor is utilised in more efficient way. iii. Optimum combination of factors - In the beginning when quantities of a variable factors are applied to fixed factors, the system moves towards achievement of optimum combination of factors because then underutilised fixed factors (building, machine, land etc) are better and more fully used. Thus lead to increasing returns. iv. Specialisation- With more use of labour, process based division of labour and specialisation becomes possible which increases efficiency and productivity. |
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| 98303. |
Companies with a higher growth potential are likely to(a) pay lower dividends(b) pay higher dividends(c) dividends are not affected(d) none of the above |
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Answer» (a) Companies which have higher growth potential are likely to pay lower dividends. This is because the companies having higher growth potential have greater investment plans and require larger funds for investment. Thus, they retain a greater portion of their earnings to finance the required investment and thereby, pay lower dividends. |
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| 98304. |
What do you mean by returns to a factor? Explain the reasons for increasing returns to a factor. |
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Answer» Returns to a factor means keeping other inputs constant, the change in physical output by increasing only one physical input. Causes of increasing return:- Following factors lead to increasing returns to a factor- i. Indivisibility of the factors - Increase in units of variable factor leads to better and fuller utilisation of fixed factor. This causes the production to increase at a rapid rate. ii. Efficient utilisation of variable factor - When more units of variable factor are employed with fixed factor, then variable factor is utilised in more efficient way. iii. Optimum combination of factors - In the beginning when quantities of a variable factors are applied to fixed factors, the system moves towards achievement of optimum combination of factors because then underutilised fixed factors (building, machine, land etc) are better and more fully used. Thus lead to increasing returns. iv. Specialisation- With more use of labour, process based division of labour and specialisation becomes possible which increases efficiency and productivity. |
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| 98305. |
Explain the likely behaviour of Total Product and Marginal Product when only one input is increased while all other inputs are kept unchanged. |
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Answer» Law of variable proportion or returns to variable factor - This law state that keeping other factors of production constant, when only one variable factor is increased, in the beginning total physical product increases at an increasing rate, then increases at a decreasing rate and ultimately decline. This law is applicable in short period only. This law has three phases- I- Increasing returns to a factor - In this phase MPP increases so TPP increases at an increasing rate. Reasons for increasing returns to a factor are - better utilisation of fixed factor, increase in efficiency of variable factor, indivisibility of fixed factors. II- Diminishing returns to a factor - In this phase MPP decreases but positive so TPP increases at decreasing rate .This phase ends when MPP is zero & TPP is maximum. Reasons for diminishing returns is that factors of production are imperfect substitutes of each other and after optimum combination of factors when more and more units of variable factors are increased, pressure of production start falling on fixed factors and MPP start decreasing. III-Negative returns to a factor - In this phase MPP becomes negative so TPP decreases. It happens when variable factor become too much as compared to fixed factors then coordination between variable and fixed factor become very poor and efficiency of factors decrease. Explanation: The law of variable proportion can be explained with the help of a schedule and a diagram as follows.
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| 98306. |
Dividends received by a foreigner from investment in shares of an Indian company. |
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Answer» It is a factor income to abroad and should be subtracted from domestic income. |
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| 98307. |
Profits earned by a branch of an Indian bank in Canada. |
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Answer» It is a factor income from abroad and should be added to domestic income to get national income. |
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| 98308. |
Scholarship given to Indian students studying in India by a foreign company. |
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Answer» It is a transfer payment and hence not included in National Income. |
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| 98309. |
A monkey of 50 kg climbs a rope having maximum torsion 3.50 N Case A: Monkey climbs up with 5 ms-2Case B: Monkey climbs down with 4 ms-2In which case Rope will not break(a) Case B: Break, Case A: break(b) Case A: Not Break, Case B : break(c) Case A: Break, Case B: Not break(d) Case B: Not Break, Case A: Not break |
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Answer» (c) Case A: Break, Case B: Not break Breaking tension = 350N Case A TA = m (g + a) = 50 (10 + 5) = 750 N Case B TB = m(g - a) = 50 (10 - 4) = 300 N ∴ Rope will break in case A |
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| 98310. |
A company's current ratio is 3 : 1 and liquidity ratio is 1.2 : 1. If its current liability are ₹ 2,00,000. What will be the value of inventory? a) ₹ 2,40,000 b) ₹ 3,60,000 c) ₹ 4,00,000 d) ₹ 40,000 |
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Answer» b) ₹ 3,60,000 |
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| 98311. |
A company's current ratio is 3 : 1 and liquidity ratio is 1.2 : 1. If its current liability are ₹ 2,00,000. What will be the value of inventory?a) ₹ 2,40,000 b) ₹ 3,60,000 c) ₹ 4,00,000 d) ₹ 40,000 |
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Answer» Correct option is b) ₹ 3,60,000 |
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| 98312. |
Match the items given in Column I with the headings/ subheadings (Balance sheet) as defined in Schedule III of Companies Act2013.Column IColumn II(i)Loose tools(a)Long term borrowings(ii)Cheque in hand(b)Fixed assets- Intangible(iii)Term loan from Bank(c )Inventories(iv)Computer software(d)Cash & Cash equivalentsChoose the correct option:a) (i)-(c ),(ii)-(d),(iii)- (a ), (iv)-(b) b) (i)-(d), (ii)-(c),(iii)- (b), (iv)- (a) c) (i)-(a),(ii)-(b),(iii)-(c) ,(iv)-(d) d) (i)-(b),(ii)-(a),,(iii)-(d), (iv)-(c ) |
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Answer» a) (i)-(c ),(ii)-(d),(iii)- (a ), (iv)-(b) |
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| 98313. |
Z Ltd liquidity ratio is 2.5 : 1. inventory is ₹ 6,00,000. current ratio 2.5 : 1. find current liabilities.a) ₹ 4,00,000 b) ₹ 6,00,000 c) ₹ 2,50,000 d) ₹ 4,50,000 |
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Answer» Correct option is a) ₹ 4,00,000 |
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| 98314. |
In which voucher type credit purchase of furniture is recorded in Tally _______. (a) Receipt voucher (b) Journal voucher (c) Purchase voucher(d) Payment voucher |
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Answer» (b) Journal voucher |
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| 98315. |
Match the items given in Column I with the headings/ subheadings (Statement of Profit & Loss) as defined in Schedule III of Companies Act2013.Column IColumn II(i) Sale of goods(a)Depreciation & amortisation(ii)Interest earned(b)Finance cost(iii) Salaries & wages(c) Revenue from operation(iv) Goodwill written off(d) Other incomeChoose the correct option: a) (i)-(a),(i)- (b), (iii)-(c ), (iv)- (d) b) (i)-(c ),(ii)-(d), (iii)-(b), (iv)- (a) c) (i)- (d),(ii)-(c),(iii)-(a) ,(iv)- (b) (d) i)-(b) ,(ii)- (a),(iii)-(d), (iv)-(c) |
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Answer» b) (i)-(c ),(ii)-(d), (iii)-(b), (iv)- (a) |
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| 98316. |
Match the items given in Column I with the headings/ subheadings ( Balance sheet & Statement of Profit & Loss) as defined in Schedule III of Companies Act2013.Column IColumn II(i) Commission paid on deposit mobilizationa)Other current assets(ii)Un amortised loss on issue of debentures (to be written off within 12 months of the date of Balance sheet)(b)Other income(iii) Loss on sale of Vehiclesc) Finance cost(iv)Profit on sale of investments(d) Other ExpensesChoose the correct option: a) (i)-(b),(ii)-(a) ,(iii)- (d), (iv)-(c ) b) (i)-(a),(ii)-)b), (iii)-(c ), (iv)- (d) c) (i)-(d), (ii)- (c ),(iii)-(b), (iv)- (a)d) i)-(c),(ii)- (a) ,(iii)-(d) ,(iv)-(b) |
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Answer» d) i)-(c),(ii)- (a) ,(iii)-(d) ,(iv)-(b) |
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| 98317. |
Debt equity ratio is 2 ; 1, which of the following will decrease this:a) Issue of new shares for cash b) Conversion of debentures into equity shares c) Sale of fixed asset at a profit d) Purchase of fixed asset on long term referred payment basisi) a, b, c, d ii) only a & biii) only a, b, c iv) only d |
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Answer» Correct option is iii) only a, b, c |
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| 98318. |
Which of the following tools of financial statement analysis is suitable when data relating to several years are to be analyzed _______. (a) Cash flow statement (b) Common size statement (c) Comparative statement (d) Trend analysis |
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Answer» (d) Trend analysis |
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| 98319. |
Calculate operating profit ratio under the following casesCase 1: Revenue from operations Rs. 16,00,000 operation profit Rs. 4,00,000Case 2: Revenue from operations Rs. 40,00,000 operating cost Rs. 28,00,000 Case 3: Revenue from operations Rs. 20,00,000 Gross profit 25% on revenue from operations; operating expenses Rs. 2,00,000. |
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Answer» Case 1: Operating profit ratio = (Operating profit)/(Revenue form operating) x 100 = 4,00,000/16,00,000 x 100 = 25% Case 2: Operating profit ratio = (Operating profit)/(Revenue from operating) x 100 Operating profit = Revenue form operations - operating cost = 40,00,000 - 28,00,000 = Rs. 12,00,000 \(\therefore\) Operating profit ratio = (Operating profit)/(Revenue from operating) x 100 Operating profit = Gross profit – Operating expenses Gross profit = 25% of 20,00,000 = Rs. 5,00,000 Operating profit = 5,00,000 – 2,00,000 = Rs. 3,00,000 ∴ Operating profit ratio = 3,00,000/20,00,000 x 100 = 15% |
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| 98320. |
Calculate cost of revenue from operations from the following:Revenue from operations ₹ 12,00,000. Operating ratio 75%. Operating expense ₹ 1,00,000.a) ₹ 11,00,000 b) ₹ 10,50,000 c) ₹ 7,50,000 d) ₹ 8,00,000 |
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Answer» Correct option is d) ₹ 8,00,000 |
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| 98321. |
Read the following and answer the questions give below:Cost of Revenue from Operations - ₹ 3,00,000Opening Debtors - ₹ 50,000(Cost of Goods Sold)Closing Debtors - ₹ 1,00,000Gross Profit on Cost – 25%Opening Creditors- ₹ 1,20,000Cash Sales – 20% of Total SalesClosing Creditors - ₹ 1,60,000Total Purchases ₹ 8,50,000Cash Purchases ₹ 1,00,000Purchase Return ₹ 50,0001 How much is Credit Revenue from Operations? i) ₹ 3,75,000 ii) ₹ 3,00,000 iii) ₹ 1,50,000 iv) ₹ 75,000 2 Find Average Collection Period? i) 3 months ii) 4 months iii) 2 monthsiv) 3.5 months3 Find Trade Payable Turnover Ratio? i) 6.5 times ii) 5.5 times iii) 5 times iv) 5.25 times 4 Calculate Average Payable Period? i) 56 days ii) 73 days iii) 66 days iv) 69 days |
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Answer» 1 ii) ₹ 3,00,000 2 i) 3 months 3 iii) 5 times 4 ii) 73 days |
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| 98322. |
List the tools of financial statement analysis. |
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Answer» The following are the commonly used tools of financial statement analysis. • Comparative statement • Common size statement • Trend – analysis • Funds flow analysis • Cash flow analysis |
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| 98323. |
Calculate gross profit ratio, net profit ratio, stock turnover ratio, opening stock Rs. 1,00,000; Purchases Rs.3,50,000; Gross profit Rs.1,50,000; Net profit 90,000; Revenue from operations Rs.4,50,000; closing stock Rs. 1,50,000. |
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Answer» (a) Gross profit ratio = (Gross profit) / (Revenue form operations) x 100 Gross profit = Rs. 1,50,000. Revenue form operations = Rs. 4,50,000 \(\therefore\) Gross profit ratio = 1,50,000/4,50,000 x 100 = 33.33% (b) Net profit Ratio = (Net profit)/(Revenue form operations) x 100 = 90,000/4,50,000 x 100 = 20% (c) Stock turnover Ratio = (Cost of revenue form operations)/(Average inventory) Cost of revenue from operations = Revenue from operations – gross profit = 45,00,000 – 1,50,000 = Rs. 3,00,000 Average inventory = (Opening inventory + Closing inventry )/2 = (1,00,000 + 1,50,000)/2 = 2,50,000/2 = Rs. 1,25,000 \(\therefore\) invenrty turnover ratio = 3,00,000/1,25,000 = 2.4 times |
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| 98324. |
What will be the correct sequence of arrangement of items in the Notes to Accounts.(i) Subscribed but not fully paid up capital (ii) Authorised Capital (iii) Subscribed and fully paid up capital (iv)Issued capital Options: a) (ii),(iv),(iii), (i) b) (i) ,(ii),(iii), (iv) c) (iii),(i),(iv), (iii) d) (iv),(ii),(i), (iii) |
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Answer» a) (ii),(iv),(iii), (i) |
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| 98325. |
What will be the correct sequence of arrangement of items (i) Profit before tax (ii) Revenue from operations(iii) Profit after tax(iv) Expenses Options: a) (i),(ii),(iii),(iv) b) (ii),(i),(iv),(iii) c) (ii),(iv),(i),(iii) d) (iv), (iii),(ii),(i) |
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Answer» Correct option is c) (ii),(iv),(i),(iii) |
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| 98326. |
Cash revenue from Operations ₹ 1,00,000; Credit Revenue from Operations ₹ 3,00,000. Gross profit 30% on Revenue from Operations; Inventory turnover Ratio = 2 times. If the opening Inventory is 75% of Closing Inventory and Closing Inventory is 30% of Revenue from Operations1 Calculate the cost of Revenue from Operations? i) ₹ 3,00,000 ii) ₹ 1,20,000 iii) ₹ 4,00,000iv) ₹ 2,80,0002 Find Average Inventory? i) ₹ 2,00,000 ii) ₹ 60,000iii) ₹ 1,05,000 iv) ₹ 1,50,000 3 What is effect of increase in value of closing inventory by ₹ 20,000, If the inventory turnover ratio is three times? i) Increase ii) Decrease iii) Neither increase nor decrease iv) May or may not increase 4 Find the opening inventory and closing inventory if opening inventory is 75% of closing inventory and closing inventory is 30% of revenue from operations. i) ₹ 90,000 & ₹ 1,20,000 ii) ₹ 1,20,000 & ₹ 90,000 iii) ₹ 3,00,000 & ₹ 1,00,000 iv) ₹ 1,00,000 & ₹ 2,00,000 |
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Answer» 1 iv) ₹ 2,80,000 2 iii) ₹ 1,05,000 3 ii) Decrease 4 i) ₹ 90,000 & ₹ 1,20,000 |
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| 98327. |
Calculate inventory turnover ratio: Opening stock = Rs. 30,000; Closing stock = Rs. 50,000; Purchases = Rs. 1,20,000 |
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Answer» Inventory turn over ratio = (Cost of revenue form operations)/(Average inventory) Cost of revenue form operations = Opening stock + purchase - closing inventory = 30,000 + 1,20,000 - 50,000 = Rs. 1,00,000 Average inventory = (Opening inventory + Closing inventory)/2 = (30,000 + 50,000)/2 = 80,000/2 Rs. = 40,000 Inventory turn over ratio = 1,00,000/40,000 = 2.5 times |
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| 98328. |
What will be the correct sequence of arrangement of items (i) Profit before tax (ii) Revenue from operations (iii) Profit after tax (iv) Expenses Options: a) (i),(ii),(iii),(iv) b) (ii),(i),(iv),(iii) c) (ii),(iv),(i),(iii) d) (iv), (iii),(ii),(i) |
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Answer» c) (ii),(iv),(i),(iii) |
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| 98329. |
Read the following and answer the questions give below1 Find operating ratio? i) 60%ii) 81.66% iii) 66.6% iv) 72% 2 How much is the operating profit ratio?i) 18.34% ii) 24%iii) 20% iv) 30% 3 How much should be total of operating ratio and operating profit ratio? i) They are not related to each other. ii) Total can be any value. iii) 100% iv) 120% 4 What is the amount of net profit? i) ₹ 4,00,000 ii) ₹ 4,80,000 iii) ₹ 3,80,000 iv) ₹ 5,00,000 |
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Answer» 1 ii) 81.66% 2 i) 18.34% 3 iii) 100% 4 i) ₹ 4,00,000 |
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| 98330. |
Read the following and answer the questions give below:₹ 2019-20₹ 2020-21Inventory on 31st March₹ 7,00,000₹ 17,00,000Revenue from Operations₹ 50,00,000₹ 17,00,000Gross profit 25% on cost of revenue from operationsIn the year 2019-20, inventory increased by ₹2,00,0001. Calculate inventory turnover ratio for the year 2019-20? i) 6.07 times ii) 6.67 times iii) 5 times iv) 8.33 times 2. Find cost of revenue from operations for the year 2020-21? i) ₹ 40,00,000ii) ₹ 50,00,000 iii) ₹ 75,00,000 iv) ₹ 60,00,000 3. Inventory turnover ratio is a part ofi) Solvency ratio ii) Liquidity ratio iii) Activity ratio iv) Profitability ratio 4. Which years inventory ratio is better for the above firm? i) 2019-20 ii) 2020-21iii) Both are equal iv) Neither 2019-20 nor 2020-21 |
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Answer» 1. ii) 6.67 times 2. iv) ₹ 60,00,000 3. iii) Activity ratio 4. i) 2019-20 |
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| 98331. |
Calculate Current Ratio of a company from the following information: Inventory (Stock) Turnover Ratio: 4 Times Inventory (Stock) in the beginning was Rs. 20,000 less than Inventory, at the end. Revenue from Operations (Net Sales) Rs. 6,00,000 Gross Profit Ratio 25% Current Liabilities Rs. 60,000 Quick Ratio 0.75 : 1 |
| Answer» Current Ratio = 2.79 : 1. Closing Inventory (Stock) = Rs. 1,22,500, Quick Assets = Rs. 45,000. Current Assets = Closing Inventory (Stock) + Quick Assets = Rs. 1,22,500 + Rs.45,000 = Rs. 1,67,500. | |
| 98332. |
Match the following:i)Current Liabilities + Working Capital(a)Capital Employedii)Total Assets - Current Liabilities(b)Share Holders Fundsiii)Share Capital + Reserves & Surplus(c)Current Assets1. (i)(a) (ii)(c) (iii)(b) 2. (i)(b) (ii)(a) (iii)(c) 3. (i)(c) (ii)(a) (iii)(b) 4. (i)(c) (ii)(b) (iii)(a) |
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Answer» 3. (i)(c) (ii)(a) (iii)(b) |
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| 98333. |
Proprietary ratio is 0.4: 1. What will be the impact on the following:1. (i)(b) (ii)(c) (iii)(c) 2. (i)(a) (ii)(c) (iii)(a) 3. (i)(c) (ii)(a) (iii)(b) 4. (i)(b) (ii)(b) (iii)(a) |
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Answer» Correct option is 1. (i)(b) (ii)(c) (iii)(c) |
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| 98334. |
Read the following and answer the questions give below:1 Calculate inventory turnover ratio for the year 2019-20? i) 6.07 times ii) 6.67 times iii) 5 times iv) 8.33 times 2 Find cost of revenue from operations for the year 2020-21? i) ₹ 40,00,000 ii) ₹ 50,00,000 iii) ₹ 75,00,000 iv) ₹ 60,00,000 3 Inventory turnover ratio is a part of i) Solvency ratio ii) Liquidity ratio iii) Activity ratio iv) Profitability ratio 4 Which years inventory ratio is better for the above firm? i) 2019-20 ii) 2020-21 iii) Both are equal iv) Neither 2019-20 nor 2020-21 |
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Answer» 1 ii) 6.67 times 2 iv) ₹ 60,00,000 3 iii) Activity ratio 4 i) 2019-20 |
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| 98335. |
Following extract belongs to a company. Inventory in the beginning of the Year ₹ 60,000. Inventory at the end of the year ₹ 1,00,000. Inventory turnover ratio 8 times. Selling price 25% above cost. Compute gross profit? a) ₹ 12,00,000 b) ₹ 1,60,000 c) ₹ 2,00,000 d) ₹ 1,80,000 |
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Answer» b) ₹ 1,60,000 |
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| 98336. |
Proprietary ratio is 0.4: 1. What will be the impact on the following:(i) Issue of equity shares against purchase of machinery(a) no change(ii) Issue of debentures against purchase of machinery(b) decrease(iii) Sale of fixed assets costing ₹ 5,00,000 for ₹ 4,00,000(c) increase1. (i)(b) (ii)(c) (iii)(c) 2. (i)(a) (ii)(c) (iii)(a) 3. (i)(c) (ii)(a) (iii)(b) 4. (i)(b) (ii)(b) (iii)(a) |
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Answer» 1. (i)(b) (ii)(c) (iii)(c) |
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| 98337. |
Quick asset does not include: a) Cash in Hand b) Prepaid Expenses c) Marketable Securities d) Trade and Receivables i) (a), (b), (d) ii) only (c) iii) only (b)iv) (b) & (c) |
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Answer» Correct option is iii) only (b) |
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| 98338. |
The term current asset does not include |
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Answer» The term “current asset” does not include Furniture. |
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| 98339. |
Read the following text. Based on the information given , you are required to answer Q.No.5 to Q No.8:X Ltd. invited applications for issuing 80,000 equity shares of ₹ 10 each at a premium of 20%. The amount was payable as follows:On application ₹ 6 (including premium) per share.On allotment ₹ 3 per share and The balance on first and final call.Applications for 90,000 shares were received. Applications for 5,000 shares were rejected and pro-rata allotment was made to the remaining applicants. Over payments received on application was adjusted towards sums due on allotment. All Calls were made and were duly received except the allotment and first and final call on 1,600 shares allotted to Vijay. These shares were forfeited and the forfeited shares were re-issued for ₹ 18,400 fully paid up.1. Name the kind of subscription in the above case. (A)Minimum subscription (B)Under subscription (C)Over subscription (D)Full subscription 2. State the total overpayments received on application adjusted towards sums due on allotment- (A)₹60,000 (B) ₹30,000 (C) ₹15,000 (D) ₹50,000 3. Number of shares applied by Vijay is- (A) 2000 (B) 1600 (C) 1800 (D) 17004. How much is the share forfeited amount transferred to Capital Reserve? (A) ₹2,400 (B) ₹7,000 (C) ₹6,400 (D) ₹18,400 |
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Answer» Correct option is 1 (C)Over subscription 2 (B) ₹30,000 3 (D) 1700 4 (B) ₹7,000 |
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| 98340. |
A firm had a Current Assets of ₹ 4,00,000. It then paid a current liability of ₹ 80,000. After this payment the current ratio was 2 :1. Answer the following1) How much is Current liabilities after payment of ₹ 80,000? i) ₹ 3,20,000 ii) ₹ 1,60,000 iii) ₹ 80,000 iv) ₹ 2,00,000 2) Determine working capital before and after payment of ₹ 80,000? i) ₹ 3,20,000 and ₹ 1,60,000 ii) ₹ 3,20,000 and ₹ 3, 20,000 iii) ₹ 1,60,000 and ₹ 1,60,000 iv) ₹ 2,40,000 and ₹ 1,60,000 3) Liquid asset does not include the following i) Trades receivables ii) Short term loans and advances iii) Inventory and pre-paid expensesiv) Current investments 4) What is the ideal current ratio and quick ratio?i) 3 : 1 and 2 : 1 ii) 2 : 1 and 1 : 1 iii) 1 : 1 and 2 : 1 iv) 2 : 1 and 2 : 1 |
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Answer» 1 ii) ₹ 1,60,000 2 iii) ₹ 1,60,000 and ₹ 1,60,000 3 iii) Inventory and pre-paid expenses 4 ii) 2 : 1 and 1 : 1 |
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| 98341. |
Read the hypothetical text and answer the following questions . Sonu and Monu are partners sharing profits and losses in the ratio of 2:1. Their capital Accounts as at 1st April, 2015 were ₹ 10,00,000 and ₹ 8,00,000 respectively. The partners are allowed interest on capital @ 5% p.a. Drawings of the partners during the year ended 31st March, 2016 were ₹ 1,44,000 and ₹ 1,00,000 respectively. Monu is entitled to get a salary of ₹ 10,000 p.m. Profit for the year before allowing interest on capital and salary was ₹ 16,00,000. 10% of the net profit is to be transferred to General Reserve.1. Find the amount which is to be transferred to General Reserve Account? a) ₹ 80,000 b) ₹ 1,20,000 c) ₹ 1,60,000 d) ₹ 2,00,0002. What is the distributable amount of profit which is to be credited to Partners’ Capital Accounts? a) ₹ 16,00,000 b) ₹ 14,40,000 c) ₹ 12,30,000 d) ₹ 10,00,0003. Find the closing capital of Sonu? a) ₹ 12,70,000 b) ₹ 17,26,000 c) ₹ 16,00,000 d) ₹ 10,00,0004. What is the share of Monu’s profit to be credited to his Capital Account? a) ₹ 14,40,000 b) ₹ 12,30,000 c) ₹ 4,10,000 d) ₹ 8,20,000 |
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Answer» 1. a) ₹ 80,000 2. b) ₹ 14,40,000 3. c) ₹ 16,00,000 4. d) ₹ 8,20,000 |
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| 98342. |
Which of the following is false? (a) Issued capital can never be more than the authorized capital (b) In the case of under subscription, issued capital will be less than the subscribed capital (c) Reserve capital can be called at the time of winding up (d) Paid up capital is part of called up capital |
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Answer» (b) In the case of under subscription, issued capital will be less than the subscribed capital |
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| 98343. |
A firm had a Current Assets of ₹ 4,00,000. It then paid a current liability of ₹ 80,000. After this payment the current ratio was 2 :1. Answer the following 1. How much is Current liabilities after payment of ₹ 80,000? i) ₹ 3,20,000 ii) ₹ 1,60,000 iii) ₹ 80,000 iv) ₹ 2,00,000 2. Determine working capital before and after payment of ₹ 80,000? i) ₹ 3,20,000 and ₹ 1,60,000 ii) ₹ 3,20,000 and ₹ 3, 20,000 iii) ₹ 1,60,000 and ₹ 1,60,000 iv) ₹ 2,40,000 and ₹ 1,60,000 3. Liquid asset does not include the following i) Trades receivables ii) Short term loans and advances iii) Inventory and pre-paid expenses iv) Current investments 4. What is the ideal current ratio and quick ratio? i) 3 : 1 and 2 : 1 ii) 2 : 1 and 1 : 1 iii) 1 : 1 and 2 : 1 iv) 2 : 1 and 2 : 1 |
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Answer» 1. ii) ₹ 1,60,000 2. iii) ₹ 1,60,000 and ₹ 1,60,000 3. iii) Inventory and pre-paid expenses 4. ii) 2 : 1 and 1 : 1 |
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| 98344. |
Read the hypothetical text and answer the following questions. Mahesh, Dinesh and Suresh are equal partners with capitals of ₹ 5,00,000, ₹ 3,00,000 and ₹ 2,00,000 respectively. Mahesh withdrew ₹ 60,000 in the beginning of each quarter for the year ended 31st March, 2020. Dinesh withdrew ₹ 60,000 at the end of each quarter for the year ended 31st March,2020. Suresh withdrew ₹ 90,000 in the middle of each quarter for the year ended 31st March,2020. Interest on drawings is charged @ 10% p.a.1. What is the total amount of drawings of all the partners? a) ₹ 9,00,000b) ₹ 8,40,000 c) ₹ 8,60,000 d) ₹ 9,20,0002. What is the average period of Dinesh’s drawings? a) 4.5 months b) 6 months c) 7.5 months d) 12 months3. Mahesh’s interest on drawings is…………………………. a) ₹ 12,000 b) ₹ 13,500 c) ₹ 10,000 d) ₹ 15,0004. What is the total amount of interest on drawings of all the partners? a) ₹ 42,000 b) ₹ 40,000 c) ₹ 45,000 d) ₹ 48,000 |
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Answer» 1. b) ₹ 8,40,000 2.a) 4.5 months 3. d) ₹ 15,000 4. a) ₹ 42,000 |
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| 98345. |
Read the following text. Based on the information given ,you are required to answer Q.No.1 to Q No.4:Janta Ltd. had an authorized capital of 2,00,000 equity shares of ₹ 10 each. The company offered to the public for subscription 1,00,000 shares. Applications were received for 97,000 shares. The amount was payable as follows on application was ₹ 2 per share, ₹ 4 was payable each on allotment and first and final call. Shankar, a shareholder holding 600 shares failed to pay the allotment money. His shares were forfeited. The company did not make the first and final call.1. Name the type of share capital which is shown in the Memorandum of Association of the company- (A) Issued capital (B) Subscribed Capital (C) Authorised Capital (D) Paid up capital 2. The amount forfeited on forfeiture of Shankar’s shares is --- (A) ₹6,000 (B)₹1,200 (C)₹3,600 (D)₹2,400 3. Janta Ltd is--- (A)Private Company (B)Public Company (C)Government Company (D)Public Corporation 4.When shares are forfeited, the Share Capital Account is debited with ___________ and the Share Forfeiture Account is credited with ____________.(A) Paid up capital of shares forfeited; Called up capital of shares forfeited (B) Called up capital of shares forfeited; Calls in arrear of shares forfeited (C) Called up capital of shares forfeited; Amount received on shares forfeited (D) Calls in arrears of shares forfeited; Amount received on shares forfeited |
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Answer» Correct option is 1 (C) Authorised Capital 2 (B)₹1,200 3 (B)Public Company 4 (C) Called up capital of shares forfeited; Amount received on shares forfeited |
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| 98346. |
X Ltd. invited applications for issuing 80,000 equity shares of ₹ 10 each at a premium of 20%. The amount was payable as follows: On application ₹ 6 (including premium) per share. On allotment ₹ 3 per share and The balance on first and final callApplications for 90,000 shares were received. Applications for 5,000 shares were rejected and pro-rata allotment was made to the remaining applicants. Over payments received on application was adjusted towards sums due on allotment. All Calls were made and were duly received except the allotment and first and final call on 1,600 shares allotted to Vijay. These shares were forfeited and the forfeited shares were re-issued for ₹ 18,400 fully paid up.1. Name the kind of subscription in the above case. (A) Minimum subscription (B) Under subscription (C) Over subscription (D) Full subscription2. State the total overpayments received on application adjusted towards sums due on allotment- (A) ₹60,000 (B) ₹30,000 (C) ₹15,000 (D) ₹50,0003. Number of shares applied by Vijay is- (A) 2000 (B) 1600 (C) 1800 (D) 17004. How much is the share forfeited amount transferred to Capital Reserve? (A) ₹2,400 (B) ₹7,000 (C) ₹6,400 (D) ₹18,400 |
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Answer» 1. (C) Over subscription 2. (B) ₹30,000 3. (D) 1700 4. (B) ₹7,000 |
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| 98347. |
Read the following and answer the questions give below:1. How much is the long-term debts? i) ₹ 8,00,000ii) ₹ 5,00,000 iii) ₹ 3,00,000iv) ₹ 8,70,000 2. Find the value of share holders’ fund?i) ₹ 5,30,000 ii) ₹ 3,80,000 iii) ₹ 6,40,000 iv) ₹ 6,00,000 3. What will be Debt Equity ratio? i) 0.83 : 1 ii) 1.33 : 1 iii) 1.25 : 1 iv) 2 : 1 4. State True or False. In the above case the Debt Equity ratio shows a risky financial position of the company.i) True ii) False |
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Answer» 1. i) ₹ 8,00,000 2. iii) ₹ 6,40,000 3. iii) 1.25 : 1 4. ii) False |
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| 98348. |
Read the following hypothetical text and answer the given questions: Amit and Mahesh were partners in a fast-food corner sharing profits and losses in ratio 3:2. They sold fast food items across the counter and did home delivery too. Their initial fixed capital contribution was Rs.1,20,000 and Rs.80,000 respectively. At the end of first year their profit was Rs.1,20,000 before allowing the remuneration of Rs.3,000 per quarter to Amit and Rs.2,000 per half year to Mahesh. Such a promising performance for first year was encouraging, therefore, they decided to expand the area of operations. For this purpose, they needed a delivery van, a few Scotties and an additional person to support. Six months into the accounting year they decided to admit Sundaram as a new partner and offered him 20% as a share of profits along with monthly remuneration of Rs.2,500. Sundaram was asked to introduce Rs.1,30,000 for capital and Rs.70,000 for premium for goodwill. Besides this Sundaram was required to provide Rs.1,00,000 as loan for two years. Sundaram readily accepted the offer. The terms of the offer were duly executed and he was admitted as a partner. 1. Remuneration will be transferred to _______________ of Amit and Mahesh at the end of the accounting period. a. Capital account. b. Loan account. c. Current account. d. None of the above. 2. Upon the admission of Sundaram the sacrifice for providing his share of profits would be done: (a) by Amit only. (b) by Mahesh only. (c) by Amit and Mahesh equally. (d) by Amit and Mahesh in the ratio of 3:2. 3. Sundaram will be entitled to a remuneration of _____________at the end of the year. 4. While taking up the accounting procedure for this reconstitution the accountant of the firm Mr. Suraj Marwaha faced a difficulty. Solve it be answering the following: For the amount of loan that Sundaram has agreed to provide, he is entitled to interest thereon at the rate of ____________. |
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Answer» 1. (c) Current Account 2. (d) By Amit and Mahesh in the ratio of 3:2 3. Rs.15,000 4 6% p.a |
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| 98349. |
Janta Ltd. had an authorized capital of 2,00,000 equity shares of ₹ 10 each. The company offered to the public for subscription 1,00,000 shares. Applications were received for 97,000 shares. The amount was payable as follows on application was ₹ 2 per share, ₹ 4 was payable each on allotment and first and final call. Shankar, a shareholder holding 600 shares failed to pay the allotment money. His shares were forfeited. The company did not make the first and final call.1. Name the type of share capital which is shown in the Memorandum of Association of the company- (A) Issued capital (B) Subscribed Capital (C) Authorised Capital (D) Paid up capital2. The amount forfeited on forfeiture of Shankar’s shares is --- (A) ₹6,000 (B)₹1,200 (C)₹3,600 (D)₹2,4003. Janta Ltd is--- (A)Private Company (B)Public Company (C)Government Company (D)Public Corporation4.When shares are forfeited, the Share Capital Account is debited with ___________ and the Share Forfeiture Account is credited with ____________.(A) Paid up capital of shares forfeited; Called up capital of shares forfeited (B) Called up capital of shares forfeited; Calls in arrear of shares forfeited (C) Called up capital of shares forfeited; Amount received on shares forfeited (D) Calls in arrears of shares forfeited; Amount received on shares forfeited |
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Answer» 1. (C) Authorised Capital 2. (B)₹1,200 3. (B)Public Company 4. (C) Called up capital of shares forfeited; Amount received on shares forfeited |
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| 98350. |
Amit and Mahesh were partners in a fast food corner sharing profits and losses in the ratio 3:2 .They sold fast food items across the continent and home delivery too.Their initial fixed capital contribution was Rs 1,20,000 and Rs 80,000 respectively.At the end of first year their profit was Rs 1,20,000 before allowing the remuneration of Rs 3,000 per quarter to Amit and Rs 2,000 per half year to Mahesh. Such a promising performance for the first year was encouraging, therefore, they decided to expand the area of operations.For this purpose they needed a delivery Van, a few bikes and an additional person to support. Six months into the accounting year, they decided to admit Sundaram as a new partner and offered him 20% as a share of profits along with monthly remuneration of rupees ₹ 2,500. Sundaram was asked to introduce ₹ 1,30,000 for capital and ₹70,000 for premium for Goodwill. Additionally, Sundaram was required to provide ₹ 1,00,000 as loan for two year Sundaram readily accepted the offer and the terms of the offer were duly executed and he was admitted as a partner.1. Remuneration will be transferred to _________ of Amit and Mahesh at the end of the accounting period (a) capital account (b) loan account (c) current account (d) none of the above 2. Upon the admission of Sundaram the sacrifice for providing his share of profits would be done: (a) by Amit only (b) by Mahesh only (c) by Amit and Mahesh equally (d) by Amit and Mahesh in the ratio of 3:2 3. Sundaram will be entitled to a remuneration of _______ at the end of the year (a) ₹ 15,000 (b) ₹ 20,000 (c) ₹ 40,000 (d) ₹ 30,000 4. While talking up the accounting procedure for the reconstitution the accountant of the firm Mr Suraj Marwaha faced a difficulty. Solve it by answering the following. For the amount of loan that Sundaram has agreed to provide he is entitled in the interest thereon at the rate of (a) 6% p.a (b) 7% p.a (c) 8% p.a (d) 9% p.a |
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Answer» 1. (c) current account 2. (d) by Amit and Mahesh in the ratio of 3:2 3. (a) ₹ 15,000 (b) ₹ 20,000 4. (a) 6% p.a |
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