Vikram Ltd. forfeited 5,000 shares of Rahul, who had applied for 6,000 shares for non-payment of allotment money of Rs. 5 per share and first and final call of Rs. 2 per share. Only application money of Rs. 3 was paid by him. Out of these 3,000 shares were re-issued @ Rs. 12 per share as fully paid.

On 31st March, 2021 the Balance Sheet of Ram and Shyam who share profits and losses in the ratio of 3: 2 was as follows:

Leena and Rohit are partners in a firm sharing profits in the ratio of 3: 2. On 31st March, 2018, their Balance Sheet was as follows:

Raman and Rohit were partners in a firm sharing profits and losses in the ratio of 2: 1. On 31st March, 2018, their Balance Sheet was as follows:

A and B were partners sharing profits and losses in the ratio of 3: 2. Their Balance Sheet as at 31st March, 2018, was as follows:

Kalpana and Kanika were partners in a firm sharing profits in 3: 1 ratio. They admitted Karuna as a partner for 1/4th share in the future profits. Karuna was to bring Rs. 60,000 for his capital. The Balance Sheet of Kalpana and Kanika as at 1st April, 2021, the date on which Karuna was admitted, was:

Gautam and Yashica are partners in a firm, sharing profits and losses in 3: 1 respectively. The Balance Sheet of the firm as on 31st March, 2018 was as follows:

Badal and Bijli were partners in a firm sharing profits in the ratio of 3 2. Their Balance Sheet as at 31st March, 2019 was as follows:

On 31st March, 2019, the Balance Sheet of A and B, who were sharing profits in the ratio of 3: 2 was as follows:

Ram and Shyam were partners in a firm sharing profits and losses in the ratio of 2: 1. Mohan was admitted for 1/3rd share in the profits. On the date of Mohan's admission, the Balance Sheet of Ram and Shyam showed General Reserve of Rs. 2,50,000 and a credit balance of Rs. 50,000 in Profit and Loss Account. Pass necessary Journal entries on the treatment of these items on Mohan's admission.

At the time of admission of a partner Suresh, assets and liabilities of Ramesh and Naresh were revalued as follows: (a) A Provision for Doubtful Debts @10% was made on Sundry Debtors (Sundry Debtors Rs. 50,000). (b) Creditors were written back by Rs.5,000. (c) Building was appreciated by 20% (Book Value of Building Rs. 2,00,000). (d) Unrecorded Investments were valued at Rs. 15,000. (e) A Provision of Rs. 2,000 was made for an Outstanding Bill for repairs. (f) Unrecorded Liability towards suppliers was Rs. 3,000. Pass necessary Journal entries.

Sushil and Satish are partners in a firm sharing profits in the ratio of 3: 2. Their Balance Sheet as at 31st March, 2021 was as follows:

Ashok and Bhaskar are partners in a firm sharing profits in the ratio of 3: 2. They admitted Chaman as a partner for 1/4th share of profits. At the time of admission of Chaman, Debtors and Provision for Doubtful Debts appeared at Rs. 76,000 and Rs. 8,000 respectively. Rs. 6,000 of the debtors proved bad. A provision of 5% is to be created on Sundry Debtors for doubtful debts. Pass the necessary Journal entries.

Pass entries in the firm's journal for the following on admission of a partner: (i) Machinery be reduced by Rs. 16,000 and Building be appreciated by Rs. 40,000. (ii) A provision be created for Doubtful Debts @ 5% of Debtors amounting to Rs. 80,000. (iii) Provision for warranty claims be increased by Rs. 12,000.(iv) Furniture (Book Value Rs. 50,000) is to be reduced by 40%.(v) Furniture (Book Value Rs. 50,000) is to be reduced by 60%.

Adil and Bhavya are partners sharing profits and losses in the ratio of 7: 5. They admit Cris, their manager, into partnership who is to get 1/6th share in the business. Cris brings in Rs. 1,00,000 for his capital and Rs. 36,000 for the 1/6th share of goodwill which he acquires 1/24th from Adil and 1/8th from Bhavya. Profits for the first year of the new partnership was Rs. 2,40,000. Pass necessary Journal entries for Cris's admission and apportion the profit between the partners.

Geeta and Sunita are partners in a firm sharing profits in the ratio of 3: 2. They admit Anita as a new partner. The new profit-sharing ratio between Geeta, Sunita and Anita will be 5: 3: 2. Anita brought in Rs. 25,000 for his share of premium for goodwill. Pass necessary Journal entries for the treatment of goodwill.

Vimal and Nirmal are partners in a firm sharing profits and losses in the ratio of 3: 2. A new partner Kailash is admitted. Vimal gives 1/5th of his share and Nirmal gives 2/5th of his share in favour of Kailash. For the purpose of Kailash's admission, goodwill of the firm is valued at 75,000 and Kailash brings his share of goodwill in cash which is retained in the business. Journalise the above transactions.

Gold and Silver are partners sharing profits and losses in the ratio of 2: 5. They admit Copper on the condition that he will bring Rs. 14,000 as his share of goodwill to be distributed between Gold and Silver. Copper's share in the future profits or losses will be 1 / 4th. What will be the new profit-sharing ratio and what amount of goodwill brought in by copper will be received by Gold and Silver? 

Amit and Vidya are partners sharing profits in the ratio of 3: 2. They admit Chintan into partnership who acquires 1 / 5th of his share from Amit and 4 / 25th share from Vidya. Calculate New Profit-sharing Ratio and Sacrificing Ratio.

Gautam and Yashica are partners sharing profits and losses in the ratio of 3: 2. They admit Asma into partnership. Gautam gives 1 / 3rd of his share while Yashica gives 1 / 10th from his share to Asma. Calculate new profit-sharing ratio and sacrificing ratio.

Karim and Rehman are partners sharing profits in the ratio of 3: 2. Naval is admitted as a partner. The new profit-sharing ratio among Karim, Rehman and Naval is 4: 3: 2. Find out the sacrificing ratio.

Mahi and Rajat were in partnership sharing profits and losses in the ratio of 4: 3. They admitted Kripa as a new partner. Kripa brought Rs. 60,000 as her share of goodwill premium which was entirely credited to Mahi's Capital Account. On the date of admission, goodwill of the firm was valued at Rs. 4,20,000. Calculate the new profit-sharing ratio of Mahi, Rajat and Kripa. (CBSE 2020)

P and Q were partners in a firm sharing profits in the ratio of 5: 3. R was admitted for 1 / 4th share in the profits, of which he took 75% from P and the remaining from Q. Calculate the sacrificing ratio of P and Q. (CBSE 2020)

S, B and J were partners in a firm. T was admitted as a partner in the partnership firm for 1 / 5th share of profits. Calculate the sacrificing ratio of S, B and J. (CBSE 2019)

Raj, Ram and Ramesh are partners sharing profits and losses in the ratio of 5: 3: 2. They admit Suresh into partnership and give him 1 / 5th share of profits. Find the new profit-sharing ratio.

Mohan and Mahesh are partners in a firm sharing profits and losses in the ratio of 3: 2. Nusrat is admitted as partner with 1 / 4 share in profit. Nusrat takes his share from Mohan and Mahesh in the ratio of 2: 1. Calculate new profit-sharing ratio.

Hari, Kunal and Uma are partners in a firm sharing profits and losses in the ratio of 5: 3: 2. From 1st April, 2018 they decided to share future profits and losses in the ratio of 2: 5: 3. Their Balance Sheet showed a balance of 75,000 in the Profit and Loss Account and a balance of Rs. 15,000 in Investment Fluctuation Fund. For this purpose, it was agreed that: (i) Goodwill of the firm was valued at Rs. 3,00,000. (ii) That investments (having a book value of Rs. 50,000) were valued at Rs. 35,000. (iii) That stock having a book value of Rs. 50,000 be depreciated by 109%. Pass the necessary Journal entries for the above in the books of the firm. (CBSE 2019)

Karim, Rehman and Navel are partners sharing profits and losses in the ratio of 5: 3: 2. Their Balance Sheet as at 31st March, 2022 stood as follows:

Amar and Akhar are partners sharing profits in the ratio of 2: 1. On 31st March, 2022, their Balance Sheet showed General Reserve of Rs. 60,000. It was decided that in future they will share profits and losses in the ratio of 3: 2. Pass necessary Journal entry in each of the following alternative cases: (i) When General Reserve is not to be shown in the new Balance Sheet. (ii) When General Reserve is to be shown in the new Balance Sheet.

A, B and C who are presently sharing profits and losses in the ratio of 5: 3: 2 decide to share future profits and losses in the ratio of 2: 3: 5. Give the journal entry to distribute 'Investments Fluctuation Reserve' of Rs. 20,000 at the time of change in profit-sharing ratio, when investment (market value Rs. 95,000) appears in the books at Rs. 1,00,000.

Ashok, Bhim and Chetan who are sharing profits in the ratio of 5: 3: 2, decide to share profits in the ratio of 2: 3: 5 with effect from 1st April, 2022. Workmen Compensation Reserve appears at Rs. 1,20,000 in the Balance Sheet as at 31st March, 2022 and Workmen Compensation Claim is estimated at Rs. 1,50,000. Pass Journal entries for the accounting treatment of Workmen Compensation Reserve.

X, Y and Z who are presently sharing profits and losses in the ratio of 5: 3: 2 decide to share future profits and losses in the ratio of 2: 3: 5. Give the journal entry to distribute 'Workmen Compensation Reserve' of Rs. 1,20,000 at the time of change in profit-sharing ratio, when there is a claim of Rs. 80,000 against it.

A, B and C who are presently sharing profits and losses in the ratio of 5: 3: 2 decide to share future profits and losses in the ratio of 2: 3: 5. Give the Journal entry to distribute 'Workmen Compensation Reserve' of Rs. 1,20,000 at the time of change in profit-sharing ratio, when: (i) No information is given; (ii) there is no claim against it.

Om and Shiv are partners in a firm sharing profits in the ratio of 4: 1. They decided to share future profits in the ratio of 3: 2 w.e.f. 1st April, 2022. On that day, Profit and Loss Account showed a debit balance of Rs. 1,00,000. Pass Journal entry to give effect to the above.

Nitya and Anand are partners in a firm sharing profits and losses in the ratio of 3: 2. With effect from 1st April, 2022, they decided to share future profits equally. On the date of change in the profit-sharing ratio, the Profit and Loss Account showed a credit balance of Rs. 1,50,000. Record the necessary Journal entry for the distribution of the balance in the Profit and Loss Account immediately before the change in the profit-sharing ratio. 

Karan and Varun were partners in a firm sharing profits and losses in the ratio of 1: 2. Their fixed capitals were Rs. 2,00,000 and Rs. 3,00,000 respectively. On 1st April, 2016 Kishore was admitted as a new partner for 1/4th share in the profits. Kishore brought Rs. 2,00,000 for his capital which was to be kept fixed like the capitals of Karan and Varun. Kishore acquired his share of profit from Varun only. Calculate goodwill of the firm on Kishore's admission and the new profit-sharing ratio of Karan, Varun and Kishore. Also, pass necessary Journal Entry for the treatment of Goodwill on Kishore's admission considering that Kishore did not bring his share of goodwill premium in Cash.

Mandeep, Vinod and Abbas are partners sharing profits and losses in the ratio of 3: 2: 1. From 1st April, 2022 they decided to share profits equally. The Partnership Deed provides that in the event of any change in profit-sharing ratio, goodwill shall be valued at three years' purchase of average profit of last five years. The profits and losses of past five years are: Profit: Year ended 31st March, 2018: Rs. 1,00,000; 2019: Rs. 1,50,000; 2021: Rs. 2,00,000; 2022: Rs. 2,00,000. Loss: Year ended 31st March, 2020: Rs. 50,000. Pass the Journal entry showing the working.

X, Y and Z are partners sharing profits and losses in the ratio of 5: 3: 2. From 1st April, 2022, they decided to share profits and losses equally. The Partnership Deed provides that in the event of any change in the profit-sharing ratio, the goodwill should be valued at two years' purchase of the average profit of the preceding five years. The profits and losses of the preceding years ended 31st March, are:

Asha, Nisha and Disha shared profits and losses in the ratio of 3: 2: 1 respectively. With effect from 1st April, 2022, they agreed to share profits equally. The goodwill of the firm was valued at Rs. 18,000. Pass necessary Journal entries to record the above change.

Ashok, Bhim and Chetan are sharing profits and losses in the ratio of 5: 3: 2. With effect from 1st April, 2022, they decide to share profits and losses in the ratio of 5: 2: 3. Calculate each partner's gain or sacrifice due to the change in ratio.

Om and Shyam are sharing profits and losses equally. With effect from 1st April, 2022, they agree to share profits in the ratio of 4: 3. Calculate individual partner's gain or sacrifice due to the change in ratio.

Three Chartered Accountants Abhijit, Baljit and Charanjit form a partnership, profits being shared in the ratio of 3: 2: 1 subject to the following: (a) Charanjit's share of profit guaranteed to be not less than Rs. 15,000 p.a. (b) Baljit gives a guarantee to the effect that gross fee earned by him for the firm shall be equal to his average gross fee of the preceding five years when he was carrying on profession alone, which on an average works out at Rs. 25,000. The profit for the first year of the partnership are Rs. 75,000. The gross fee earned by Baljit for the firm is Rs. 16,000. You are required to show Profit and Loss Appropriation Account after giving effect to the above.

Asgar, Chaman and Dholu are partners in a firm. Their Capital Accounts stood at Rs. 6,00,000; Rs. 5,00,000 and Rs. 4,00,000 respectively on 1st April, 2021. They shared Profits and Losses in the proportion of 4: 2: 3. Partners are entitled to interest on capital @ 8% per annum and salary to Chaman and Dholu @ Rs. 7,000 per month and Rs. 10,000 per quarter respectively as per the provision of the Partnership Deed. Sholu's share of profit (excluding interest on capital but including salary) is guaranteed at a minimum of Rs. 1,10,000 p.a. Any deficiency arising on that account shall be met by Asgar. The profit for the year ended 31st March, 2021 amounted to Rs. 4,24,000. (Delhi 2013, Modified). Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2022.

P, Q and R entered into partnership on 1st April, 2018 to share profits and losses in the ratio of 12: 8: 5. It was provided that in no case R's share in profit be less then Rs. 30,000 p.a. The profits and losses for the period ended 31st March were: 2020 Profit Rs. 1,20,000 2021 Profit Rs. 1,80,000; 2022 Loss  Rs. 1,20,000. Pass the necessary Journal entries in the books of the firm.

Ashmit, Abbas and Karman are partners sharing profits in the ratio of 3: 2: 1. Abbas is guaranteed minimum profit of Rs. 1,50,000 per annum. The firm incurred loss for the year ended 31st March, 2022 of Rs. 30,000. Prepare Profit & Loss Appropriation Account for the year.

Nimrat, Maira and Kabir are partners sharing profits in the ratio of 2: 2: 1. Nimrat is guaranteed minimum profit of Rs. 1,60,000 per annum. Net Profit for the year ended 31st March, 2022 is Rs. 1,00,000. Prepare Profit & Loss Appropriation Account for the year.

A, B and C are partners in a firm. Their profit-sharing ratio is 2: 2: 1. C is guaranteed a minimum of Rs. 1,00,000 as share of profit every year. Any deficiency arising on that amount shall be met by B. The profits for the two years ended 31st March, 2021 and 2022 were Rs. 4,00,000 and Rs. 6,00,000 respectively. Prepare Profit and Loss Appropriation Account for the two years.

X, Y and Z entered into partnership on 1st October, 2021 to share profits in the ratio of 4: 3: 3. X, personally guaranteed that Z's share of profit after charging interest on capital @ 10% p.a. would not be less then Rs. 80,000 in any year. Capital contributions were: X –Rs. 3,00,000, Y – Rs. 2,00,000 and Z – Rs. 1,50,000. Profit for the year ended 31st March, 2022 was Rs. 1,60,000. Prepare Profit and Loss Appropriation Account.

Mohit and Sobhit are partners sharing profits in the ratio of 3: 2. Rohit was admitted for 1 / 6th share of profit with a minimum guaranteed amount of Rs. 10,000. At the close of the first financial year the firm earned a profit of Rs. 54,000. Find out the share of profit which Mohit, Sobhit and Rohit will get.

Capitals of kajal, Neerav and Alisha as on 31st March, 2022 amounted to Rs. 90,000, Rs. 3,30,000 and Rs. 6,60,000 respectively. Profit of Rs. 1,80,000 for the year ended 31st March, 2022 was distributed in the ratio of 4: 1: 1 after allowing interest on Capital @10% p.a. During the year, each partner withdrew Rs. 3,60,000. The Partnership Deed was silent as to profit-sharing ratio but provided for interest on capital @ 12%. Pass the necessary adjustment entry showing the working clearly.

Ram, Mohan and Sohan were partners sharing profits in the ratio of 2: 1: 1. Ram withdrew Rs. 3,000 every month and Mohan withdrew Rs. 4,000 every month. Interest on drawings @6% p.a. was charged, whereas the partnership deed was silent about interest on drawings. Showing your working clearly, pass the necessary adjustment entry to rectify the error.

Ali the Bahadur are partners in a firm sharing profits and losses as Ali 70% and Bahadur 30%. Their respective capitals as at 1st April, 2021 stand as Ali Rs. 25,000 and Bahadur Rs. 20,000. The partners are allowed interest on capitals @ 5% p.a. Drawings of the partners during the year ended 31st March, 2022 amounted to Rs. 3,500 and Rs. 2,500 respectively. Profit for the year, before charging interest on capital and annual salary of Bahadur @ Rs. 3,000, amounted to Rs. 40,000, 10% of divisible profit is to be transferred to Reserve. Prepare Partners' Current Account and Capital Accounts recording the above transactions.

Sajal and Kajal are partners sharing profits and losses in the ratio of 2: 1. On 1st April, 2021 their Capitals were: Sajal – Rs. 5,00,000 and Kajal – Rs. 4,00,000. Prepare Profit and Loss Appropriation Account and the Partners' Capital Accounts at the end of the year after considering the following items: (a) Interest on Capital is to be allowed @ 5% p.a. (b) Interest on the loan advanced by Kajal for the whole year, the amount of loan being Rs. 3,00,000. (c) Interest on partners' drawings @ 6% p.a. Drawings: Sajal Rs. 1,00,000 and Kajal Rs. 80,000. (d) 10% of the divisible profit is to be transferred to Reserve. Profit, before giving effect to the above, for year ended 31st  March, 2022 is 7,02,600.

Yadu, Vidu and Radhu were partners in a firm sharing profits in the ratio of 4: 3: 3. Their fixed capitals 1st April, 2018 were Rs. 9,00,000, Rs. 5,00,000 and Rs. 4,00,000 respectively. On 1st November, 2018, Yadu gave a loan of Rs. 80,000 to the firm, as per the partnership agreement. (i) The partners were entitled to an interest on capital @ 6% p.a. (ii)Interest on partners' drawings was to be charged@ 8% p.a. The firm earned profit of Rs. 2,53,000 (after interest on Yadu's Loan) during the year 2018-19. Partners drawings for the year amounted to: Yadu – Rs. 80,000, Vidu – Rs. 70,000 and Radhu – Rs. 50,000. Prepare Profit and Loss Appropriation Account for the year ending 31st March, 2019.

A, B and C were partners in a firm having capitals of Rs. 50,000; Rs. 50,000 and Rs. 1,00,000 respectively. Their Current Account balances were A: Rs. 10,000; B: Rs. 5,000 and C: Rs. 2,000 (Dr.). According to the Partnership Deed the partners were entitled to an interest on Capital @ 10% p.a. C being the working partner was also entitled to a salary of Rs. 12,000 p.a. The profits were to be divided as: (a) The first Rs. 20,000 in proportion to their capitals. (b) Next Rs. 30,000 in the ratio of 5: 3: 2. (c) Remaining profits to be shared equally. The firm earned net profit of Rs. 1,72,000 before charging any of the above items. Prepare Profit and Loss Appropriation Account and pass necessary Journal entry for the appropriation of profits.

Calculate the amount of Manan's monthly drawings for the year ended 31st March, 2022, in the following alternative cases when Partnership Deed allows interest on drawings @10% p.a. : (i) If interest on drawings is Rs. 1,950 and he withdrew a fixed amount in the beginning of each month. (ii) If interest on drawings is Rs. 2,400 and he withdrew a fixed amount in the middle of each month. (iii) If interest on drawings is Rs. 2,750 and he withdrew a fixed amount at the end of each month.

The capital accounts of Tisha and Divya showed credit balances of 10,00,000 and 7,50,000 respectively after taking into account drawings and net profit of Rs. 5,00,000. The drawings of the partners during the year 2021-22 were:(i) Tisha withdrew 25,000 at the end of each quarter.(ii) Divya's drawings were:

Calculate interest on drawings of Ashok @ 10% p.a. for the year ended 31st March, 2022, in each of the following alternative cases: Case 1.  If he withdrew Rs. 7,500 in the beginning of each quarter. Case 2.  If he withdrew Rs. 7,500 at the end of each quarter. Case 3.  If he withdrew Rs. 7,500 during the middle of each quarter.

Abha, Bobby and Vineet are partners sharing profits and losses equally. As per Partnership Deed, Vineet is entitled to a commission of 10% on the net profit after charging such commission. The net profit before charging commission is Rs. 2,20,000.Determine the amount of commission payable to Vineet.

Shiv, Mohan and Gopal are partners sharing profits and losses in the ratio of 2: 2: 1 respectively. Shiv is entitled to a commission of 10% on the net profit. Net profit for the year is Rs. 1,10,000. Determine the amount of commission payable to Shiv.

A and B are partners in the ratio of 3: 2. The firm maintains Fluctuating Capital Accounts and the balance of the same as on 31st March, 2020 amounted to Rs. 1,60,000 and Rs. 1,40,000 for A and B respectively. Their drawings during the year were Rs. 30,000 each. As per Partnership Deed, interest on capital@10% p.a. on opening capitals had been provided to them. Calculate opening capitals of partners given that their profit was Rs. 90,000. Show your workings clearly.

Vinod and Mohan are partners. Vinod 's Capital is Rs. 1,00,000 and Mohan 's Capital is Rs. 60,000. Interest on capital is payable @6% p.a. Mohan is entitled to a salary of Rs. 3,000 per month. Profit for the current year before interest and salary to Mohan is Rs. 80,000.Prepare Profit and Loss Appropriation Account.

Ankit, Bhanu and Charu are partners in a firm sharing profits and losses equally with capital of Rs. 2,50,000 each. On 1st October, 2021, Ankit and Bhanu gave loans of Rs. 2,50,000 each to the firm whereas Charu took a loan of Rs. 1,00,000 from the firm on the same date. It was agreed among the partners that Charu will be charged Interest @ 6% pa. Interest on loan from partners was paid on 10th April, 2022.The firm closes its books on 31st March each year. Pass the Journal entries in the books of the firm for the year ended 31st March, 2022.

Nirmal and Pawan are partners sharing profits in the ratio of 3: 2. The firm had given loan to Pawan of Rs. 5,00,000 on 1st April, 2021. Interest was to be charged @ 10% p.a. The firm took loan of Rs. 2,00,000 from Nirmal on 1st October, 2021. Before giving effect to the above, the firm incurred a loss of Rs. 10,000 for the year ended 31st March, 2022. Determine the amount to be transferred to Profit and Loss Appropriation Account.

Akhil and Bimal are partners sharing profits in the ratio of 3: 2. Akhil gave loan to the firm of Rs. 1,00,000 on 1st October, 2021. On the same date, the firm gave loan to Bimal of Rs. 1,00 000. They do not have an agreement as to interest. Akhil had also given his personal property for firm’s godown at a monthly rent of Rs. 5,000. Firm earns profit of Rs. 1,03,000 (before above adjustments) for the year ended 31st March, 2022. Show the distribution of profit for the year.

Sita and Geeta are partners in a firm sharing profits in the ratio of 3: 2. They had advanced to the firm a sum of Rs. 30,000 as a loan in their profit-sharing ratio on 1st October, 2021. The Partnership Deed is silent on interest on loans from partners. Compute interest payable by the firm to the partners, assuming the firm closes its books every year on 31st March.

P, Q and R are partners sharing profits and losses in the ratio of 3: 3: 2 respectively. Their respective capitals are in their profit-sharing proportions. On 1st April, 2018, the total capital of the firm and the balance of General Reserve are Rs. 80,000 and Rs. 20,000 respectively. During the year 2018-19, the firm made a profit of Rs. 28,000 before charging interest on capital @ 5%. The drawings of the partners are P — Rs. 8,000; Q — Rs. 7,000; and R — Rs. 5,000. On 31st March, 2019, their liabilities were Rs. 18,000. On this date, they decided to dissolve the firm. The assets realised Rs. 1,08,600 and realisation expenses amounted to Rs. 1,800. Prepare necessary Ledger Accounts to close the books of the firm.

At the time of dissolution of a partnership firm, the book value of sundry assets transferred to Realisation Account was Rs. 2,00,000. 50% of these sundry assets were taken by partner A at 20% discount, 40% of remaining assets were sold at a profit of 30% on cost. 5% of the balance was found obsolete and realised nothing. The remaining assets were taken over by a creditor in full settlement of his claim. Pass necessary Journal entries for the above. (C.B.S.E. 2019)

A and B are partners in a firm sharing profits in the ratio of 3: 2. Mrs. B has given a loan of Rs. 40,000 to the firm and A has also given a loan of Rs. 80,000 to the firm. The firm was dissolved and its assets realised Rs. 60,000. State the order of payment of Mrs. B's loan and A's loan assuming that there was no other third-party liability of the firm. (CBSE 2019 C)

Varun and Arun are partners in a firm sharing profits and losses equally. On the date of dissolution of the partnership firm, Varun's wife's loan was Rs. 45,000, whereas Arun's loan was Rs. 65,000. Which loan will be paid first and why? (CBSE 2019)

Pass the necessary journal entry for treatment of Partner's loan appearing on the assets side of the Balance Sheet in case of dissolution of a partnership firm. (CBSE 2019)

Name an item which is transferred to credit side of Realisation Account at the time of dissolution of partnership firm, but does not involve cash payment. (C.B.S.E. 2020)

'Complete the following Statement': When a liability is discharged by a partner, at the time of dissolution, Capital Account is credited because__. (C.B.S.E. Sample Paper 2019)

State any one occasion for the dissolution of the firm on Court's orders. (Delhi 2017 C)

State any two grounds on the basis of which the Court may order for dissolution of a partnership firm. (CBSE 2019)

State any two situations when a partnership firm may be compulsorily dissolved. (C.B.S.E.  2019)

Distinguish between 'Dissolution of Partnership' and 'Dissolution of Partnership Firm' on the basis of 'Economic Relationship'. (Delhi and Al 2016, 2020 C)

Distinguish between 'Dissolution of Partnership' and 'Dissolution of Partnership Firm' on the basis of 'Settlement of Assets and Liabilities'. (Foreign 2014, 2018, CBSE 2019)

Distinguish between 'Dissolution of Partnership' and 'Dissolution of Partnership Firm' on the basis of 'Court's intervention'. (CBSE 2019)

Distinguish between 'Dissolution of Partnership' and 'Dissolution of Partnership Firm' on the basis of closure of books. (CBSE 2019)

State the order of payment of the following, in case of dissolution of partnership firm: (i) to each partner proportionately what is due to him / her from the firm for advances as distinguished from capital (i.e., partner's loan); (ii) to each partner proportionately what is due to him on account of capital; and (iii) for the debts of the firm to the third parties. (CBSE Sample Paper 2019)

What is Dissolution of Partnership?

What is meant by dissolution of a firm?

Riyansh, Garv and Kavleen were partners in a firm sharing profit and loss in the ratio of 8: 7: 5. On 2nd November, 2018, Kavleen died. Kavleen's share of profits till the date of her death was calculated at Rs. 9,375. Pass the necessary journal entry. (CBSE Sample Paper 2019)

Diya, Riya and Tiya were partners sharing profits and losses in the ratio of 2: 3: 5. Tiya died on 28th November, 2019. Her share of profit was taken equally by Diya and Riya. Diya's share of profit in the new firm will be__. (C.B.S.E. 2020)

State the basis of calculating the amount of profit payable to the legal representative of a deceased partner in the year of death. (C.B.S.E. 2019)

In which ratio do the remaining partners acquire the share of deceased partner? (Delhi and AI 2018 C)

At what rate is interest payable on the amount remaining unpaid to the executor of deceased partner? (AI 2013)

Differentiate between 'Profit & Loss Appropriation Account' and 'Profit & Loss Suspense Account'. (Delhi and Al 2015 C)

Name the account which is opened to credit the share of profit of the deceased partner, till the time of his death to his Capital Account. (Delhi 2013)

Why heirs of retiring / deceased partner are entitled to share of goodwill of the firm? (Delhi 2014)

State any one difference between Sacrificing Ratio and Gaining Ratio. (C.B.S.E. 2020 C)

Why does a firm revaluate its assets and reassess its liabilities on retirement or death of a partner? (Foreign 2014)

In which ratio do the remaining partners acquire the share of profit of the retiring partner? (Delhi 2018 C)

At the time of retirement, how is the new profit-sharing ratio among the remaining partners calculated? (CBSE 2019 C)

P, Q and R were partners in a firm. On 31st March, 2018 R retired. The amount payable to R Rs. 2,17,000 was transferred to his loan account. R agreed to receive interest on this amount as per the provisions of Partnership Act, 1932. State the rate at which interest will be paid to R. (CBSE 2019)

Retirement or death of a partner wilt create a situation for the continuing partners, which is known as: (a) Dissolution of Partnership. (b) Dissolution of Partnership Firm; (c) Winding up of business. (d) None of these. (C.B.S.E. Sample Paper 2020)

Neetu, Meetu and Teetu were partners in a firm. On 1st January, 2018, Meetu retired. On Meetu's retirement the goodwill of the firm was valued at Rs. 4,20,000. Pass necessary Journal entry for the treatment of goodwill on Meetu's retirement. (Delhi and A1 2018)

A, B and C were partners in a firm sharing profits and losses in the ratio of 4: 3: 2. B retired and his share was taken over by A and C equally. Calculate the gaining ratio. (C.B.S.E. 2019)

Give two circumstances in which the Gaining Ratio is computed.

Give the formula for calculating 'gaining share' of a partner in a partnership firm.

Why do we calculate Gaining Ratio?

What is meant by 'Gaining Ratio' on retirement of a partner? (C.B.S.E. 2019)

What is meant by retirement of a partner?

Why is the General Reserve distributed among the old partners before new partner is admitted?

A, B, C and D were partners in a firm sharing profits in the ratio of 4: 3: 2: 1. On 1st January, 2015, they admitted E as a new partner for 1 / 10 share in the profits. E brought Rs. 10,000 for his share of goodwill premium which was correctly recorded in the books by the accountant. The accountant showed goodwill at Rs. 1,00,000 in the books. Was the accountant correct in doing so? Give reason in support of your answer. (Delhi 2015)

Vinay and Naman are partners sharing profits in the ratio of 4: 1. Their capitals were Rs. 90,000 and Rs. 70,000 respectively. They admitted Prateek for 1 / 3 share in the profits. Prateek brought Rs. 1,00,000 as his capital. Calculate the value of firm's goodwill. (CBSE 2018, 2018 C)

Under what circumstances premium for Goodwill paid by the incoming partner is not recorded in the books of account? (Delhi 2014 C)

What is meant by 'Hidden Goodwill'? (AI 2017 C)

Kiya and Leela are partners sharing profits in the ratio of 3: 2. Kiran was admitted as a new partner with l/5th share in the profits and brought in Rs. 24,000 as her share of goodwill premium that was credited to the Capital Accounts of Kiya and Leela respectively with Rs. 18,000 and Rs. 6,000. Calculate the new profit-sharing ratio of Kiya, Leela and Kiran. (C.B.S.E. 2019)

At the time of admission of a partner, who decides what will be the share of profit of the new partner out of the firm's profit? (Delhi 2013 C. CBSF. 2019 c)

Amit and Beena were partners in a firm sharing profits and losses in the ratio of 3: 1. Chaman was admitted as a new partner for l/6lh share in the profits. Chaman acquired 2/5th of his share from Amit. How much share did Chaman acquire from Beena? (Delhi and AI 2018)

For which of the following situations, the old profit-sharing ratio of partners is used at the time of admission of a new partner? (a) When new partner brings only a part of his share of goodwill. (b) When new partner is not able to bring his share of goodwill. (c) When, at the lime of admission, goodwill already appears in the balance sheet. (d) When new partner brings his share of goodwill in cash. (C.B.S.E. Sample Paper2020)

State any two reasons for the preparation of 'Revaluation Account' in case of admission of a Partner? (CBSE Sample Paper 2018)

Why is it necessary to revalue assets and liabilities of a firm in case of admission of a partner? (C.B.S.E. Sample Paper 2018)

List any two items that need adjustments in books of account of a firm at the time of admission of a partner. (A1 2014 C)

S, B and j were partners in a firm. T was admitted as a partner in the partnership firm for l/5th share of profits. Calculate the sacrificing ratio of S, B and j. (C.B.S.E. 2019)

In the absence of a Partnership Deed, in which ratio do the old partners sacrifice their share of profit in case of admission of a new partner? (C.B.S.E. 2019)

How is Sacrificing Ratio calculated?

What is meant by New Profit-sharing Ratio in case of admission of a partner?

At the time of admission of a new partner in the firm, the new partner compensates the old partners for their loss of share in the Super Profits of the firm for which he brings in an additional amount which is known as__. (CBSE 2020)

Why should a new partner contribute towards goodwill on his admission? (Delhi 2017 C)

A new partner acquires two main rights in the partnership firm which he joins. State one of the rights.

State any one right acquired by a newly admitted partner. (CBSE 2020 C)

State with reason whether at the time of Admission of a Partner, partnership is dissolved or partnership firm is dissolved. (A1 2013)

What is the effect of admission of a new partner on Partnership?

Give the accounting entry for unrecorded assets in case of reconstitution of a partnership firm.

Give any two circumstances in which sacrificing ratio may be applied. (C.B.S.E. 2019)

Does the change in profit-sharing ratio result into dissolution of the partnership firm? Give reason in support of your answer. (AI 2017 C)

What is meant by 'Reconstitution of a Partnership Firm'? (Delhi and Al 2014)

Nusrat and Sonu were partners in a firm sharing profits in the ratio of 3: 2. During the year ended 31st March, 2015 Nusrat had withdrawn Rs. 15,000. Interest on her drawings amounted to Rs. 300. Pass necessary Journal entry for charging interest on drawings assuming that the capitals of the partners were fixed. (Delhi 2016)

In the absence of provision in the Partnership Deed, in which ratio is the deficiency arising out of guarantee of profit to a partner borne by the other partners? (CBSE 2019)

State two situations in which interest on partners' capital is generally provided. (Foreign 2017, CBSE 2019)

Tom and Harry were partners in a firm sharing profits in the ratio of 5: 3. During the year ended 31st March, 2015 Tom had withdrawn Rs. 40,000. Interest on his drawings amounted to Rs. 2,000. Pass necessary Journal entry for charging interest on drawings assuming that the capitals of the partners were fluctuating. (AI 2016)

Give the average period, in months, for charging interest on drawings of a fixed amount withdrawn at the beginning of each quarter.

Give the average period, in months, for charging interest on drawings of a fixed amount, withdrawn at the end of each quarter. (C.B.S.E. 2020 C)

Dev withdrew Rs. 10,000 on 15th day of every month. Interest on drawings was to be charged @ 12% per annum. Calculate interest on Dev's drawings. (C.B.S.E. 2019)

In case the partners' capitals are fixed, in which account withdrawal of capital is recorded? (C.B.S.E. 2020)

Give two items which may appear on the debit side of Partner's Current Account. (Delhi and AI 2018 C)

Why does the Fixed Capital Account of partners show credit balance even when the firm suffers losses year after year? (CBSE 2020)

State any one difference between Fixed Capital Accounts and Fluctuating Capital Accounts of partners. (Al 2014 C)

Which capital accounts always show a credit balance? (CBSE 2020)

Distinguish between 'Fixed Capital Account' and 'Fluctuating Capital Account' on the Basis of Credit Balance. (Al 2017, COSE 2019)

What is meant by 'Fluctuating Capital' of a partner? (AI 2016 C)

What is meant by 'Fixed Capital' of a partner? (Delhi 2016 C)

Name the accounts which are maintained for the partners when capitals of the partners are fixed. (AI 2014 C)

Ritesh and Hitesh are childhood friends, Ritesh is a consultant whereas Hitesh is an architect. They contributed equal amounts and purchased a building for Rs. 2 crores. After a year, they sold it for Rs. 3 crores and shared the profits equally. Are they doing the business in partnership? Give reason in support of your answer. (Delhi and AI 2018)

Kajal, Neerav and Alisha are partners in a firm sharing profits in the ratio of 3: 2: 1. They decided to admit Rajan, their landlord as a partner in the firm. Rajan brought sufficient amount of capital and his share of goodwill premium. The accountant of the firm passed the entry of rent paid for the building to Rajan in 'Profit and Loss Appropriation Account'. Is he correct in doing so? Give reason in support of your answer. (Al 2015 C)

Give two reasons in favour of having a Partnership Deed.

Gupta and Sharma were partners in a firm. They wanted to admit two more members in the firm. List the categories of individuals other than minors who cannot be admitted by them. (Delhi 2017)

A group of 40 people wants to form a partnership firm. They want your advice regarding the maximum number of persons that can be there in a partnership firm and the Name of the Act under whose provisions, it is given. (AI 2016)

What is the maximum number of partners that a partnership firm can have? Name the Act that provides for the maximum number of partners in a partnership firm.  (Delhi 2016)

What is the minimum number of partners a firm should have?

Give the meaning of 'Liability of Partners' as a feature of partnership. (C.B.S.E 2020)

What is the status of partnership firm from an accounting viewpoint?

Does partnership firm has a separate legal entity? Give reason in support of your answer. (Delhi 2017)

What is meant by 'partners', 'firm' and 'firm's name'?

State giving reason, whether issue of shares for consideration other than cash will result into inflow, outflow or no flow of cash. (C.B.S.E. 2020, Kerala)

A Ltd. redeemed Rs.  1,00,000, 9% debentures at 10% premium. What will be the amount of ‘Cash Flows from Financing Activities’? (C.B.S.E. 2020, Kerala)

On 1-10-2018, Micro Ltd. issued 20,000, 8% debentures of Rs. 100 each and paid interest of Rs. 80,000 on these debentures on 31st March, 2019. Calculate the cash flow from financing activities for the period ending 31st March, 2019. (C.B.S.E. 2020, Mumbai, Chennai)

K Ltd., a manufacturing company obtained a loan of Rs. 6,00,000, advanced a loan of Rs. 1.00,000 and purchased machinery for Rs. 5,00,000. Calculate the amount of Cash Flow from financing and investing activities. (C.B.S.E. 2019, M.P.)

M/s Mevo and Sons; a bamboo pens producing company, purchased a machinery For Rs. 9,00,000. It received dividend of Rs. 70,000 on investment in shares. The company also sold an old machine of the book value of Rs. 79,000 at a loss of Rs. 10,000. Compute Cash flow from Investing Activities. (C B S E. Sample Paper 2019)

Mevo Ltd., a financial enterprise had advanced a loan of Rs. 3,00.000, invested Rs. 6,00.000 in shares of the other companies and purchased machinery for Rs. 9,00,000. It received dividend of Rs. 70,000 on investment in shares. The company sold an old machine of the book value of Rs. 79,000 at a loss of Rs. 10,000. Compute Cash flows from Investing Activities. (C.B.S.E. 2019.M.P.)

Under which type of activity will you classify ‘Rent Received’ while preparing cash flow statement? (C.B.S.E. Sample Paper, 2019)

P P Limited is Share Broker Company. G G Limited is engaged in manufacturing of packaged food. P P Limited purchased 5,000 equity shares of Rs. 100 each of Savita Limited. G G Limited also purchased 10,000 equity shares of Rs. 100 each of Savita Limited. For the purpose of preparing their respective Cash Flow Statements, under which category of activities the purchase of shares will be classified by P P Limited and G G Limited? (C.B.S.E. Sample Paper, 2018)

State whether the following will increase, decrease or have no effect cash flow from operating activities while preparing ‘Cash Flow Statement’: (i) Decrease in outstanding employees benefits expenses by Rs. 3,000; (ii) Increase in prepaid insurance by Rs. 2,000. (C.B.S.E. 2017)

Will ‘acquisition of machinery by issue of equity shares’ be considered while preparing ‘Cash Flow Statement’? Give reason in support of your answer.

Normally, what should he the maturity period for a short-term investment from the date of its acquisition to be qualified as cash equivalents? (C.B.S.E. 2017)

Kartik Mutuals, a mutual fund company, provides you the following information:

The Patents of X Ltd. increased from Rs. 3,00,000 in 2013-14 to Rs. 3,50,000 in 2014-15. What will be its treatment while preparing Cash Flow Statement for the year ended 31st March 2015?

 ‘An enterprise may hold securities and loans for dealing or trading purposes in which case they are similar to inventory acquired specifically for resale’. Is the statement correct? Cash flows from such activities will be classified under which type of activity while preparing Cash Flow Statement? (C.B.S.E. 2016)

'G Ltd.’ is carrying on a paper manufacturing business. In the current year, it purchased machinery for Rs. 30,00,000; it paid salaries of Rs. 60,000 to its employees; it required funds for expansion and therefore, issued shares of Rs. 20,00,000. It earned a profit of Rs. 9,00,000 for the current year. Find out Cash Flow from Operating Activities.

‘Shri Ltd.’ was carrying on a business of packaging in Delhi and earned good profits in the past years. The company wanted to expand its business and required additional funds. To meet its requirements the company issued equity shares of Rs. 30,00,000. It purchased a computerised machine of Rs. 20,00.000. It also purchased raw material amounting to Rs. 2,00,000. During the current year, the Net Profit of the company was Rs. 15,00,000. Find out 'Cash Flow from Operating Activities’ from the above transactions.

Nazma Ltd. received interest on an item and the accountant classified it under Investing Activity while preparing Cash Flow Statement. Name another item for which such a treatment is possible.

Hider Ltd., a mutual fund company invested Rs. 5,00,000 in shares of Prayag Ltd. It received dividend of Rs. 45,000 during the year. How will it be depicted in the Cash Flow Statement?

Deepu Ltd., a non financing company received dividend on shares. How will it be presented while preparing ‘Cash Flow Statement’?

While preparing Cash Flow Statement, the accountant of ‘Rachna Ltd.’, a financing company, included ‘Interest received on loan’ in financing activities. Was he correct in doing so? Give reason.

While preparing Cash Flow' Statement of Sharda Ltd. ‘Depreciation provided on fixed assets’ was added to net profit to calculate cash flow from operating activities. Was the accountant correct in doing so? Give reason.

State with reason whether the issue of 9% debentures to a vendor for the purchase of machinery of Rs. 50,000 will result in inflow, outflow or no flow' of cash while preparing Cash Flow Statement.

Finserve Ltd is carrying on a Mutual fund business. It invested Rs. 30,00,000 in share's and Rs. 15,00,000 in debentures of various companies during the year. It received Rs. 3,00,000 as dividend and interest. Find out cash flows from investing activities. (C.B.S.E. Sample Paper, 2015)

Raman Ltd. paid Rs. 60,000 as instalment for machinery purchased on credit which included interest of Rs. 10.000. How will this payment be presented while preparing Cash Flow Statement?

List any two items of operating activities that are typical of and pertaining to film production unit.

List any two items of operating activities that are typical of and pertaining to Hotel Industry.

List any two items of operating activities that are typical of and pertaining to Print Media.

List any two items of operating activities that are typical of and pertaining to Electronic Media.

A company receives a dividend of Rs. 2 Lakhs on its investment in other company’s shares. Will it be cash inflow from operating or investing activities in case of a (i) Finance Company; (ii) Non-finance Company?

Mention the net amount of ‘Source’ or ‘Use’ of cash from the following: ‘Issue of shares for Rs. 16,00,000 against purchase of business comprising of Non-Current Assets Rs. 14,00,000, Current. Assets Rs. 4,00.000 and took over Current Liabilities at Rs. 2,00,000. (C.B.S.E. 2015).

Mention the net amount of ‘Source’ or ‘Use’ of cash when a fixed asset (having book value of Rs. 15,000) is sold at a loss of Rs. 5,000.

While preparing the Cash Flow Statement of Alka Ltd. ‘dividend paid was shown as an operating activity by the accountant of the company. Was he correct in doing so? Give reason. (C.B.S.E. 2015)

A Ltd., engaged in the business of retailing of two wheelers, invested Rs. 50,00,000 in the shares of a manufacturing company. State with reason whether the dividend received on this investment will be Cash Flows from Operating Activities or Investing Activities.

Fine Garments Ltd. is engaged in the export of readymade garments. The company purchased a machinery of Rs. 10,00,000 for the use in packaging of such garments. State giving reason whether the cash flow due to the purchase of machinery will be cash flow from operating activities, investing activities or financing activities?

Net increase in working capital other than cash and cash equivalents will increase, decrease or not change cash flow from operating activities. Give reason in support of your answer. (C.B.S.E. 2017)

Short term investments are not considered while preparing cash flow statement. Why? (C.B.S.E. 2017)

Why is separate disclosure of cash flow from investing activities important while preparing Cash Flow Statement? (C.B.S.E. 2016)

State with reason whether ‘Discount received on making payment to suppliers' would result into inflow, outflow or no flow of cash.

State with reason whether ‘Old furniture written off would result into inflow / outflow or no flow of cash.

Give an example of the activity which remains financing activity for every enterprise. (C.B.S.E. 2020, Mumbai, Chennai)

Give any one example of an activity, which is an investing activity for even type of enterprise. (C.B.S.E. 2017, Comptt.)

State with reason whether ‘Purchase of fixed asset on long term deferred payment’ would result in inflow, outflow or no flow of cash.

Give one transaction which may result into outflow of cash and one which may result into no flow of cash.

Give any two transactions which result into inflow of cash.

Give one difference between an investing activity and a financing activity.

Give one difference between an operating activity and an investing activity.

Under which type of activity will you classify ‘Issue of Equity Shares at Premium’ while preparing cash-flow statement?

State how Cash Flow Statements are historical in nature?

While preparing Cash Flow Statement what type of activity is, ‘Payment of Cash to acquire Debentures by an Investment company’?

While preparing Cash Flow Statement, what type of activity is ‘Payment of Cash to acquire shares of another company by a trading company’?

In which category following items will be classified while preparing the Cash Flow Statement of a Bank? (i) Purchase of Computer (ii) Interest and Dividend received by the Bank.

In which category ‘Rent received ' will be classified while preparing the Cash Flow Statement in case of (i) Real Estate Agent and (ii) Non-Real Estate Agent.

Interest paid by an investment company will come under which kind of activity while preparing Cash-flow statement?

Dividend paid by a Trading or Manufacturing Company is classified under which kind of activity while preparing Cash flow statement?

Dividend paid by a finance company is classified under which kind of activity while preparing Cash flow statement? (C.B.S.E. 2019)

How will you classify deposits by customers in Axis Bank?

How will you classify loans given by Tata Finance Company?

“Loans and advances granted’ by a company will be considered, as which type of activity while preparing Cash Flow Statement. (C.B.S.E. 2018, Comptt.)

When is interest received considered as financing activity?

When is dividend received considered as operating activity?

Give two examples of ‘significant non-cash transactions’.

State why non-cash transactions are ignored while preparing a Cash Flow Statement?

Dividend paid is classified under which kind of activity while preparing cash How statement?

Do you think that Bank deposit with 100 days of maturity will be included in Cash and Cash Equivalents? Give reason.

State with reason whether ‘Short term deposits in Banks' will result in inflow, outflow or no flow of cash.

While preparing cash flow statement, will ‘Cash withdrawn from Bank’ result into inflow, outflow or no flow of cash? Give reason in support of your answer. (C.B.S.E. 2020, Punjab)

State whether cash deposited in bank will result in inflow, outflow or no flow of cash?

Interest received and paid by a finance company is classified under which Kind of activity while preparing a Cash flow statement? (C.B.S. E. 2018)

How will you treat ‘Interest on Debentures’ while preparing a Cash Flow Statement?

Under which type of activity will you classify' ‘Interest paid on long term borrowings’ while preparing Cash Flow Statement?

Payment and receipt of interest and dividend is classified as which type of activity while preparing Cash Flow Statement. (C.B.S.E. 2019)

Where will you show purchase of Goodwill in a Cash Flow Statement?

How will you treat Bank Overdraft in a Cash Flow Statement? (C.B.S.E. 2015)

Under which type of activity will you classify ‘Commission and Royalty Received’ while preparing Cash Flow Statement?

Under which type of activity will you classify ‘Refund of Income Tax received’ while preparing the Cash Flow Statement?

How will you treat payment of tax and payment of dividend in a Cash How statement?

How will you deal increase in the balance of ‘Securities Premium' while preparing a Cash Flow Statement?

For calculating ‘Cash flow from operating activities' why decrease in Trade Receivables or bills receivables are added to operating profits?

What adjustments are required for decrease or increase in Trade Payables/bills payable while calculating ‘Cash flow from operating activities'?

How will you treat decrease in prepaid expenses in the cash How from operating activities?

Why do we add back preliminary expenses to net profit while calculating cash flows from operating activities?

Why do we add back depreciation to net profit while calculating cash flows from operating activities? (C.B.S.E. 2016, C)

How do you treat depreciation in calculating cash flow from operating activities?

How do you treat profit or loss on sale of fixed assets for calculating Cash flow from operating activities?

Under which type of activity will you classify ‘Proceeds from sale of patents’ while preparing Cash Flow Statement?

Under which type of activity will you classify ‘Proceeds from sale of investment’ while preparing Cash Flow Statement?

Classify the following activities as (i) Operating, (ii) Investing or (iii) Financing in case of a ‘Financial Enterprise’: (a) Proceeds from Sale of Investments; (b) Interest received on Debentures held as Investment

State whether depreciation charged by a Company will result in inflow, outflow or no flow of Cash.

State whether the payment of Cash to Trade Payables will result in inflow, outflow' or no flow of Cash.

State whether conversion of debentures into equity shares by a financing company will result in inflow', outflow' or no flow' of cash.

While preparing a Cash Flow Statement, ‘Payment of bonus to the employees' by an insurance company is which type of activity? (C.B.S.E. 2015)

State why Cash Flow Statement is not a substitute for Income Statement?

Give two examples of finance companies.

Net Increase / Decrease in cash and cash equivalents + Cash and Cash equivalents at the beginning of the period = ……………………….

Cash Flow from Operating Activities + Cash Flow from Investing Activities + Cash Flow from Financing Activities =…………………...

List any two financing activities that will result into outflow of cash.

Name any two Financing activities that result into inflow of cash.

Give two examples of Cash Flows from Financing Activities.

What is meant by Financing Activities?

List any two investing activities which result into outflow' of cash.

When does the situation of Inflow of Cash arise in the case of Investing activities?

Name any two investing activities that result into inflow of cash.

Give two examples of Cash Flows from Investing Activities.

What is meant by Investing Activities?

How are various activities classified as per AS-3 (Revised) while preparing Cash Flow' Statement?

What are the two methods which can he employed lo calculate net Cash flows from operating activities?

Give any two examples of cash inflows from operating activities other than cash receipts from sale of goods and rendering of services. (C.B.S.E. Sample Paper. 2018).

Give two examples of Cash Flows from Operating Activities.

What is meant by Operating Activities? (C.B.S.E. 2020, Kerala)

List any two items other than cash in hand and cheques in hand that are included in ‘Cash and Cash Equivalents’. (C.B.S.E. 2020, Punjab)

What is meant by Cash equivalents? (C.B.S.E. 201.6, 2017, 2019, 2020)

Give the meaning of ‘Cash’ for the purpose of preparing Cash Flow Statement. (C.B.S.E. 2019)

When does a Cash Flow arise? (C.B.S.E. 2013, 2015)

What is meant by the term ‘Cash Flows’? (C.B.S.E. 2020, Kerala)

Give one limitation of Cash How Statement.

State any two advantages of preparing Cash Flow Statement.

Give any two objectives of Cash Flow Statements. (C.B.S.E. Sample Paper, 2019)

Under which accounting standard, Cash flow statement is prepared?

What is meant by Cash Flow Statement? (C.B.S.E. 2020, Kolkata, Lucknow)

The Debt Equity ratio of a company is 1: 2. State whether ‘Issue of bonus shares’ will increase, decrease or not change the Debt Equity Ratio. (C.B.S.E. 2019, M.P.; 2020 Mumbai. Chennai)

The Operating ratio of a company is 60%. State whether 'Purchase of goods costing Rs. 20,000’ will increase, decrease or not change the operating ratio. (C.B.S.E. 2019. M.P.)

What will be the operating profit ratio, if operating ratio is 88.94%?

What will be the operating profit ratio, if operating ratio is 83.64%?

Current ratio of Reliance Textiles Ltd. is 1.5 at present. In future it wants to improve this ratio to 2. Suggest any two accounting transactions for improving the current ratio.

What will be the current ratio of a company whose Net Working Capital is Zero? (C.B.S.E. Sample Paper. 2020)

‘Sale of goods Rs. 3,000 for cash will increase the Gross Profit Ratio.’ Is this statement correct? Give reason in support of your answer. (C.B.S.E. 2020. Kolkata, Lucknow)

‘Sale of goods Rs. 23,000 for cash will not affect the operating ratio.’ Is the statement correct? Give reason. (C.B.S.E. 2020. Rajasthan)

‘Purchase of goods Rs. 35,000 for cash will increase the operating ratio.’ Is the statement correct? Give reasons.

What will be the effect of purchase of goods for cash Rs. 3,000 on Gross Profit Ratio? (C.B.S.E. 2020; Kolkata. Lucknow)

What is the difference between ‘Operating Profit’ and ‘Net Profit’?

The gross profit ratio of a company is 50%. Slate with reason whether the decrease in rent received by Rs. 15,000 will increase, decrease or not change the ratio.

What does a low working capital turnover ratio indicates?

What will be the impact of increase in Current liabilities on Working Capital turnover ratio? State with reason.

Trade Payables turnover ratio of a Company is 5 times. What will be the impact of ‘Credit purchase’ of Rs. 50,000 on this ratio? State with reason.

What will be the impact of ‘Payment to Trade Payables’ on Trade Payables turnover ratio? State with reason.

The total debtors of X Ltd. were Rs. 9,00,000. It had created a provision of 10% for bad and doubtful debts. What amount of debtors will be used for calculating the ‘Trade Receivables Turnover Ratio’? (C.B.S.E. 2020, Mumbai, Chennai).

The trade receivables turnover ratio of a company is 6 times. State with reasons whether the ratio will improve, decrease or riot change due to increase in the value of closing inventory by Rs. 50,000.

Trade Receivables turnover ratio of a Company is 3 times, State, giving reason, whether this ratio will (a) increase, (b) decrease, or (c) not alter because of Credit Revenue from Operations of Rs. 50,000.

State giving reason, whether the trade receivables turnover ratio will: (a) increase, (b) decrease, or (c) not alter because of ‘cash collected from trade receivables’.

If Trade Receivables Turnover Ratio is more than the norm set for it, what will it indicate?

What is the accounting treatment of ‘Stores and Spares’ when the company. (C.B.S.E. Sample Paper, 2017)

What is indicated by High Inventory Turnover Ratio?

Inventory turnover ratio of a Company is 3 times. State, giving reason, whether the ratio improves, declines or does not alter because of purchase of goods for Rs. 10,000.

Inventory turnover ratio of a Company is 5 times. State, giving reason, whether the ratio improves, declines or does not change if goods costing Rs. 20,000 is sold for 18,000.

The inventory turnover ratio of a Company is 3 times. State, giving reason, whether the ratio improves, declines or does not change because of increase in the value of closing inventory by Rs. 5,000.

The Debt- Equitv Ratio of A' Ltd. is 1: 2. What is the effect of conversion of debentures into preference shares on this ratio?

What will be impact of ‘purchase of a fixed asset on a credit of 3 months’ on a debt equity ratio of 1: 1?

What will be the impact of ‘issuing Rs. 5,00,000 equity shares to vendors of machinery’ on the Debt-Equity Ratio of 2: 1? (C.B.S.E. 2020. Mumbai, Chennai)

What will be the impact of ‘Issue of shares against the purchase of fixed assets’ on a debt equity ratio of 1: 1?

The debt-equity ratio of a company is 0.8: 1. State whether the long-term loan obtained by the company will increase, decrease or not change the ratio.

State with reason whether repayment of long-term loan will result in increase, decrease or no change of debt-equity ratio.

State one transaction which results in a decrease in ‘Debt-Equity Ratio’ and no change in ‘Current Ratio’.

What does a low proprietary ratio indicate?

What will a higher debt-equity ratio indicate?

Quick ratio of a company is 1.5: 1. State giving reason whether the ratio will improve, decline or not change on payment of dividend by the company.

State the impact of ‘Hills Receivable discounted dishonoured on due date’ on the liquid ratio of 0.75: 1. Also give reason in support of your answer. (C.B.S.E. 2020. Mumbai. Chennai)

What will be the impact of ‘B/R received from trade receivables’ on a Quick Ratio of 1: 1?

What will be the impact of ‘Bills Payable given to Trade Payables’ on a liquid ratio of I: 1? State with reason.

The quick ratio of a company is 0.5: 0.75. Will cash sales of Rs. 5,000 increase, decrease or not change the ratio? Give reason in support of your answer. (C.B.S.E. 2020, Punjab)

The quick ratio of a company is 0.75: 0.50. Will credit purchase of goods Rs. 10,000 increase, decrease or not change the ratio? Give reason in support of your answer. (C.B.S.E. 2020. Punjab)

What will be the impact of ‘Cash collected from trade receivables’ on a Current ratio of 2: 1? State with reason.

What will be the impact of ‘Cash paid to Trade Payables’ on a Current ratio of 8: 1? State with reason.

What will be the impact of ‘Cash Paid to Trade Payables’ on a Current ratio of 1: 1? State the reason.

What will be the impact of 'Cash Paid to trade Payables on a Current Ratio of 2: 1? State the reason.

The current ratio of a company is 2: I. Stale giving reason whether purchase of goods on credit will increase, decrease or not change the ratio. (C.B.S.E. 2020. Delhi)

Should the bank overdraft be included in current liabilities?

Why prepaid expenses are not considered as liquid assets?

Why prepaid expenses are considered as Current assets?

Why inventory is excluded from liquid assets?

State one transaction which results in an increase in ‘Liquid Ratio’ and no change in ‘Current Ratio’.

Mention two ratios in which one figure is from Profit and Loss Account and one from Balance Sheet.

Can Current Ratio and Quick Ratio be same at any moment?

Give one point of distinction between Current Ratio and Quick Ratio.

Why liquid ratio is considered more dependable than current ratio?

How will you assess the liquidity or short-term financial position of a business?

Mention two ratios in which both the figures are from Balance Sheet.

Mention two ratios in which both the figures are from Profit and Loss Account.

What is Return on Investment Ratio?

What is the significance of Operating Ratio?

What is Operating Ratio? How is it calculated?

What are non-operating expenses?

What are Operating Expenses?

What is Operating Profit? How is it calculated?

What is N.P. Ratio?

What is G.P. Ratio?

Name two ratios to assess the profitability of a business in terms of sales.

What is meant by Profitability Ratios?

What is meant by ‘Profitability of Business’?

What is Working Capital?

What is Working Capital Turnover Ratio?

What is Trade Payables Turnover Ratio?

What does Average Collection Period show?

What is the significance of Trade Receivables Turnover Ratio?

What is the denominator to be used while calculating Trade Receivables Turnover Ratio?

What is the numerator to be used in Trade Receivables Turnover Ratio?

What does Trade Receivables Turnover Ratio indicate?

What is Inventory Turnover Ratio?

Name two important activity ratios.

What does activity ratio show? (C.B.S.E. 2016)

What does Total Assets to Debt Ratio indicate?

What is Total Assets to Debt Ratio?

What does proprietary ratio indicate?

What is proprietary ratio?

What is Debt-Equity Ratio?

Name any two Solvency Ratios.

What is meant by ‘Solvency of Business’? (C.B.S.E. 2016)

What are the other names of liquid ratio?

What is the ideal Quick Ratio?

What are liquid assets?

What is Liquid Ratio?

What is an ideal current ratio?

What are Current Liabilities?

What are Current Assets?

What is Current Ratio?

What is meant by ‘Liquidity of Business’?

Give one limitation of ratio analysis.

Give two uses of Ratio Analysis.

Give two Objectives of Ratio Analysis.

What is ‘-Ratio Analysis’?

What is meant by Ratio?

What is the meaning of Common Size Statement of Profit & Loss?

What is the meaning of Common Size Balance Sheet?

What are Common Size Statements?

What is the advantage of Comparative Balance Sheet?

What is a Comparative Statement of Profit & Loss?

What is a Comparative Balance Sheet?

What are comparative financial statements?

Name two tools of financial analysis.

How share application money pending allotment will be shown in a Company’s Balance Sheet?

How will you treat Bank Overdraft and Cash Credit in the Balance Sheet of a Company?

Under what heads the following Items on the Equity and Liabilities side of the Balance Sheet of a Company will be presented: (i) Proposed Dividend; (ii) Unclaimed Dividend.

How will you show the following items in the Balance Sheet of a Company; (i) Calls in Arrears; (ii) Calls in Advance.

Under what headings will you show the following items in the Balance Sheet of a Company; (i) Preliminary Expenses; (ii) Acceptances (B/P)

Under what heads the following items in the Balance Sheet of a Company will be presented: (i) Sundry Debtors; (ii) Sundry Creditors.

Under what headings will you show the following items in the Balance Sheet of the Company: (i) Goodwill (ii) Loose Tools. (C.B.S. E. 2017, 2018)

Name any two items that can be disclosed under ‘Intangible Assets”.

Name any two items that can be disclosed under “Tangible Assets”.

Name any two items that can be disclosed under ‘Short-term Provisions”.

Name any two items that can be disclosed under ‘Long-term Borrowings’.

Name any two items that can be disclosed under 'Reserve and Surplus’.

Name any two sub-line items (sub-headings) under which “Current Assets’’ shall be classified in the Balance Sheet of a Company.

Name any two sub-line items (sub-headings) under which “Non-Current Assets” shall be classified in the Balance Sheet of a Company.

Name any two sub-line items (sub-headings) under which “Current Liabilities” shall be classified in a Company’s Balance Sheet.

Name any two sub-line items (sub-headings) under which “Non-Current Liabilities” shall be classified in a Company’s Balance Sheet.

Name any two sub-line items (sub-headings) under which “Shareholder’s Funds” shall be classified in a Company’s Balance Sheet.

Name any one line item that can be shown under the major heading “Assets” in a Company’s Balance Sheet.

Name any one line item that can be shown under the major heading “Equity and Liabilities” in a Company’s Balance Sheet.

Give the meaning of ‘Long-term Provisions’.

What is meant by ‘Share Application Money Pending Allotment’?

What is deferred tax liability?

What is deferred tax asset?

What do you understand by the term deferred tax?

Define Trade Payables.

Define Trade Receivables.

If Operating Cycle is 12 months and payment is received in 15 months, how will you classify the asset?

In case Operating Cycle cannot be determined, what is the time period of operating cycle assumed?

What is ‘Operating Cycle’?

How are the assets and liabilities of a Company usually marshalled?

What is the number of major heads of the Equity and Liabilities side of a Company’s Balance Sheet?

What is the number of major heads of the Assets side of a Company’s Balance Sheet?

What is the financial year in case of a Company?

Name any two financial statements of a Company.

What is the balance of Debenture Redemption Reserve transferred to General Reserve?

What is meant by redemption of debentures by lump sum payment?

Name any two Companies are exempted from creating Redemption Reserve’ by the SEBI.

What is meant by redemption of debentures out of Profits?

What is meant by redemption of debentures out of Capital?

Name two sources of finance for redemption of debenture.

What is meant by Redemption of Debentures?

Globe Ltd. issues 20,000, 9% debentures of Rs. 100 each at a discount of 5% redeemable at the end of 5 years at a premium of 6%. For what amount ‘Loss on Issue of Debentures Account’ will be debited?

On 1st April 2017, Sunrise Limited issued 5,000, 8% debentures of Rs. 100 each at a discount of 5%. What will be the total amount of interest for the year ending 31st March 2018?

Pass the necessary journal entry when 10,000 debentures of Rs.  100 each are issued as collateral security against a Bank Loan of Rs. 8,00,000.

‘Interest paid on debentures is a charge against the profits of the company’. Is this statement correct? Give reason in support of your answer. (C.B.S.E. 2020, Kolkata, Lucknow)

Why is premium on the issue of debentures considered a capital profit?

Mention two differences between ‘Premium on Issue of Debentures' and ‘Premium on Redemption of Debentures'.

Are there any legal restrictions, similar to shares, for issue of debentures at a discount?

Are debentures less riskier than shares?

Why would an investor prefer to invest in Shares of a Company rather than in its Debentures?

Why would an investor prefer to invest partly in Shares and partly in Debentures of a Company?

Why would an investor prefer to invest in the Debentures of a Company rather than in its Shares?

Distinguish between shares and debentures on the basis of convertibility (C.B.S. E. Sample Paper, 2018)

Differentiate between ‘Equity Share’ and Debenture on the basis of risk involved. (C.B.S. E. Sample Paper. 2019).

Give any two points of distinction between shareholders and debentureholders.

Give any two points of distinction between a Share and a Debenture.

What is the nature of Interest on Debentures?

Amount raised by a company by debenture is loan or capital?

Why are irredeemable debentures also known as perpetual debentures? (C.B.S.E. Sample Paper. 20I8).

What entry may be passed when debentures are issued as Collateral Security?

What is meant by Issue of Debentures as Collateral Security? (C.B.S.E. 2018, 2020).

 What is meant by Issue of Debentures for Consideration other than Cash?

What is Coupon rate?

What is Zero Coupon Bond’?

What is meant by Fully Convertible Debentures and Partly Convertible Debentures?

What is meant by Non-Convertible Debentures?

What is meant by ‘Convertible Debentures’?

What is meant by ‘Irredeemable Debentures’?

What is meant by ‘Redeemable Debenture’?

What is meant by ‘Bearer Debenture’?

What is meant by registered debenture?

What is meant by unsecured debenture?

What is meant by ‘Secured or Mortgage Debenture’?

Classify debentures from the point of view of convertibility.

Classify debentures from the point of view of redemption.

Classify debentures from the point of view of registration.

Classify debentures from the point of view of security.

Give any two characteristics of debenture.

What is meant by a Debenture?

Determine the maximum permissible discount which a company can allow at the time of reissue of forfeited shares in the following cases: (i) A share of Rs. 100 originally issued at par on which application and allotment money of Rs. 60 has been received. (ii) A share of Rs. 100 originally issued at a premium of Rs. 20 on which application and allotment money (including premium) of Rs. 60 has been received. (iii) A share of Rs. 100 originally issued at a premium of Rs. 20 on which application and allotment money (excluding premium) of Rs. 60 has been received.

Y Ltd. forfeited 100 equity shares of Rs. 10 each for the non-payment of first call of Rs. 2 per share. The final call of Rs. 2 per share was yet to be made. Calculate the maximum amount of discount at which these shares can be re-issued. (C.B.S. E. 2017. Delhi)

A Ltd. forfeited a share of Rs. 100 issued at a premium of 20% for non-payment of first call of Rs. 30 per share and final call of Rs. 10 per share. State the minimum price at which this share can be reissued. (C.B.S.E. Sample Paper. 2017)

Nirman Ltd. issued 50,000 equity shares of Rs. 10 each. The amount was payable as follows:

Joy Ltd. issued 1 ,00.000 equity shares of Rs. 10 each. The amount was payable as follows:

A Ltd. forfeited 100 equity shares of Rs. 10 each issued at a premium of 20% for the non-payment of final call of Rs. 5 including premium. State the maximum amount of discount at which these shares can be re-issued.

Identify the purpose of utilizing the ‘Security Premium Reserve' that would maximise the return to shareholders.

Do you think that Calls in Advance is a part of Share Capital?

D Ltd. invited applications for issuing 10,00,000 equity shares of Rs. 10 each. The public applied for 8,55,000 shares. Can the company proceed for the allotment of shares? Give reason in support of your answer. (C.B.S.E. 2014. Outside Delhi).

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

Distinguish between ‘Over-Subscription’ and ‘Under-Subscription’.

Can ‘Securities Premium Reserve’ be used as working capital? Give reason in support of your answer.

Can ‘securities premium reserve’ be distributed as dividend?

Can a Company issue a share having face value of Rs. 10 at Rs. 97

Give one point of distinction between Reserve Capital and Capital Reserve.

Differentiate between Called-up Share Capital’ and ‘Paid-up Share Capital’. (C.B.S.E.2016 Comptt. Delhi)

Differentiate between ‘Issued Share Capital’ and ‘Subscribed Share Capital’. (C.B.S.E. 2016 Comptt. All India)

Give one point of distinction between Authorised Capital and Issued Capital.

Give the meaning of ‘Subscribed and Fully Paid-up Capital. (C.B.S.E. Sample Paper 2013)

What is the name given to the 'part of capital’ of a company which is Called-up only on winding up?

What is meant by 'Issue of shares for consideration other than cash’? Give an example.

Where would you transfer the balance left in the share forfeited account after the reissue of such shares?

What is maximum amount of discount which may be allowed on reissue of forfeited shares? (C.B.S.E, 2014)

What is meant by surrender of shares?

What is meant by forfeiture of shares?

What is meant by issue of shares for consideration other than cash?

At what rate interest on Calls-in-Advance may be paid by a Company according to Table F of Schedule I of the Companies Act, 2013?

At what rate interest on Calls-in-Arrear can be charged by a Company according to Table F of Schedule I of the Companies Act, 2013?

How are Calls in Advance shown in the Balance Sheet?

What is meant by Calls-in-Advance?

How are Calls-in-arrears shown in the Balance Sheet?

What are calls in Arrears?

What is meant by ‘Minimum Subscription’?

What is pro-rata allotment of shares?

What is Over-subscription? (C.B.S.E. 2019, C)

State two purposes for which securities premium reserve can be used by a Company.

How 'securities premium reserve' appears in the Balance Sheet?

How Share Issue Expenses are shown in the Balance Sheet?

How 'preliminary expenses' appear in the Balance Sheet?

What is meant by 'issue of shares at par'? (C.B.S.E. 2019. C)

What are preliminary expenses?

What is meant by Employee Stock Option Wan? (C.B.S.E. Sample Paper, 2019)

What is meant by Sweat Equity Shares?

What is meant by ‘Private Placement of Shares’? (C.B.S.E. 2019)

What is meant by ‘Capital Reserve’?

Is reserve capital a, part of ‘Unsubscribed Capital' or ‘Uncalled Capital'. (C.B.S.E. 20 I8)

What is meant by Reserve Capital? (C.B.S.E. 2019)

What is meant by called up Capital?

What is Subscribed Capital?

What is meant by Authorised Capital of a Company?

What do you mean by Non-Convertible Preference Shares?

What do you mean by Convertible Preference Shares?

What do you mean by Non-Redeemable Preference Shares?

What do you mean by Redeemable Preference Shares?

What do you mean by Non-Participating Preference Shares?

What do you mean by Participating Preference Shares?

What do you mean by Non-Cumulative Preference Shares?

What do you mean by Cumulative Preference Shares?

What are equity shares?

What are preference Shares?

What are the two types of shares which a Company can issue?

What is a share?

State two essential features of a Public Company.

State two essential features of a Private Company.

State two essential features of a company.

Name an item which is transferred to credit side of Realisation Account at the time of dissolution of partnership firm, but does not involve cash payment. (C.B S.E. 2020, Mumbai Chennai)

State the order of payment of the following, in case of dissolution of partnership firm: (i) to each partner proportionately what is due to him / her from the firm for advances as distinguished from capital (i.e., partners' loan); (ii) to each partner proportionately what is due to him on account of capital; and (iii) for the debts of the firm to the third parties. (C.B.S.E. Sample Paper, 2019)

Stale any two situations when a firm is compulsorily dissolved. (C.B.S.E 2019, M. P.)

State any two contingencies that may result into dissolution of a partnership firm.(C.B.S.E. M. P.)

State any two grounds on the basis of which court may order for the dissolution of partnership firm. (C.B.S.E. 2019, Kerala)

Name the asset that is not transferred to the debit side of Realisation Account, but brings certain amount of cash against its disposal at the time of dissolution of the firm.

Fixed Assets appear in the Balance Sheet of a firm at Rs. 52,000. They realised at a loss of 4% on net collection. State the amount collected from such assets.

On dissolution, the amount of Sundry Assets transferred to Realisation Account is Rs. 1,00,000. 40% of the assets realised 120% of their book value; 25% of the remaining were sold at a discount of 20% and remaining were taken over by Vikas (a partner) at book value. Pass entries.

In settlement of Tarun ’s (a Partner) loan of Rs. 2.5,000 to the firm, a computer not appearing in the hooks is taken over by him at an agreed value of Rs. 30.000. Pass necessary journal entry.

Dissolution expenses amounting to Rs. 15,000 were to be borne by partner Y and the balance by the firm. Dissolution expenses amounted to Rs. 25,000 and the entire amount was paid by Y. Pass journal entry.

Dissolution expenses amounting to Rs. 6,000 were to be borne by partner X and the balance by the firm. Dissolution expenses amounted to Rs. 15,000 and the entire amount was paid by firm. Pass journal entry.

Sundry' Creditors Rs. 2,50,000 and Bills Payable Rs. 35,000 have been transferred to the Credit side of Realisation Account. Sundry Creditors were paid at a discount of 10%. What would be the further treatment if nothing else is mentioned?

Provision for Depreciation Rs. 65,000; Provision for Doubtful Debts Rs. 30,000; and Provident Fund Rs. 1,50,000 has been transferred to the Credit side of Realisation Account. For which item payment is to be made by the firm?

C’s Capital Account has a credit balance of Rs. 2,00,000; Cs Loan Account is showing a debit balance of Rs. 40,000. Bank Balance is Rs. 3,00,000. Show the treatment of C’s Loan A/c.

X, Y and Z are partners in a firm in the ratio of 4: 3; 2. On firm’s dissolution, firm’s total assets are Rs. 70,000, creditors are Rs. 15,000. Realisation expenses are Rs. 2,100. Assets realised 15% more than the book-value. Creditors were paid 2% more. For profit / loss on realisation, y's capital account will be debited / credited with how much amount?

On the basis of the following data how much final payment will be made to a partner on firm’s dissolution? Credit balance of Capital Account Rs. 50,000; Share of loss on realisation Rs. 10,000; Firm’s liability taken over by him for Rs. 8,000.     

On dissolution of a firm, its Balance Sheet revealed capital Rs. 5,00,000; General Reserve Rs. 2,00,000, Creditors Rs. 1,00,000 and cash balance Rs. 20,000. Assets were realised at 60%. What will be loss on realisation?

If opening capitals of partners are A Rs. 2,00,000, B Rs. 3,00,000 and C Rs. 4,00,000 and their drawings during the year are A Rs. 3,000 per month, B Rs. 4,000 per month and C Rs. 5,000 per month and creditors are Rs. 80,000, what will be the amount of assets of the firm?

If total assets are Rs. 5,00,000; total liabilities are Rs. 2,00,000; amount realised on sale of assets is Rs. 3,10,000 and realisation expenses are Rs. 2,000 what will be the profit or loss on realisation?

On the basis of following data, how much final payment will be made to a partner on firm's dissolution? Debit balance of Capital Account Rs. 5,000; Share of his profit on realisation Rs. 28,000; Firm's asset taken over by him for Rs. 6,000.

If total assets of a firm are Rs. 6,00,000 and total liabilities are Rs. 1,80,000, what will the capitals of P, Q and R if they share profits in the ratio of their capitals and profit-sharing ratio is 5: 4: 3.

Creditors amounting to Rs. 80,000 are transferred to Realisation Account. What entry will be made on their payment if Rs. 10,000 of the creditors are not to be paid and the remaining creditors agreed to accept 20% less amount?

On dissolution of a firm, a partner’s capital account has a credit balance of Rs. 42,000. His share of profit in realisation account is Rs. 9,000. He has paid firm’s realisation expenses Rs. 3,000. How much amount he will finally get?

On dissolution of a firm, debtors Rs. 17,000 were shown in the Balance Sheet. Out of this Rs. 2,000 became bad. One debtor became insolvent. 70% were recovered from him out of Rs. 5,000. Full amount was recovered from the balance debtors. On account of this item, what will be the loss in realisation account?

At the time of dissolution of a firm, Creditors are 70,000; Partner’s capital is Rs. 1,20,000; Cash Balance is Rs. 10,000. Other assets realised Rs. 1,50,000. What will be the Profit / Loss in the realisation account?

If total assets of a firm are Rs. 12,00,000 and total liabilities are Rs. 2,40,000, what will the capitals of P, Q and R if they share profits in the ratio of their capitals and profit-sharing ratio is 1: 2: 3.

If opening capitals of partners are A Rs. 3,00,000, B Rs. 2,00,000 and C Rs. 1,00,000 and their drawings during the year are A Rs. 50,000, B Rs. 40,000 and C Rs. 30,000 and creditors are Rs. 60,000, what will be the amount of assets of the firm?

If creditors are Rs. 25,000, capital is Rs. 1,50,000 and cash balance is Rs. 10,000, what will be the amount of sundry assets?

Total creditor amount to Rs. 5,00,000. Investments valued Rs. 2,00,000 were not shown in the hooks. One of the creditors took over these investments in full satisfaction of his debt of Rs. 2,20,000. Remaining creditors were paid at 5% discount. Pass entry for payment.

How much amount will be paid to A, if his opening capital is Rs. 2,00,000 and his share of realisation profit amounts to Rs. 10,000 and he has taken over assets valuing Rs. 25,000 from the firm?

P, a partner, is to bear all expenses of realisation for which he is to be paid Rs. 2,000. P had to pay realisation expenses of Rs. 2,500. How much amount will be debited to Realisatio Account?

How much amount will be paid to Creditors for Rs. 25,000 if Rs. 5,000 of the creditors are not to be paid and the remaining creditors agreed to accept 5% less amount?

There was a contingent liability for B/R received from Ashok for Rs. 20,000 and discounted with the bank. Ashok became insolvent and 75 paise in a rupee were received from his estate. How much amount will be debited/credited to Realisation Account?

In the Balance Sheet Total Debtors appear at Rs. 50,000 and Provision for Doubtful Debts appear at Rs. 1,500. How much amount will be realised from Debtors, if bad debts amount to Rs. 10,000 and remaining debtors are realised at a discount of 5%.

If total assets are Rs. 2,00,000; total liabilities are Rs. 40,000; amount realised on sale of assets is Rs.  1,75,000 and realisation expenses are Rs. 3,000, what will be the profit or loss on realisation?

On the basis of following data, how much final payment to a partner on firm’s dissolution will be made? Debit balance of Capital Account Rs. 14,000; Share of his profit on realisation Rs. 43,000; Firm’s asset taken over by him for Rs. 17,000.

On dissolution of a firm, there was an Unrecorded asset or Rs. 2,000 which was taken over by a partner at Rs. 2,500 What entry will be passed?

On dissolution of a firm, Sundry Creditors amounted to Rs. 8,000. These were paid at a discount of 5%. What entry will he passed?

On dissolution of a firm, its Balance Sheet revealed total creditors Rs. 50,000; Total Capital Rs. 48,000; Cash Balance Rs. 3,000. Its assets were realised at 12% less. What will be loss on realisation?

On dissolution of the firm, partner A demands that his loan of Rs. 1,00,000 should be paid before, payment of Capitals of the partners, whereas partners B and C demand that Capitals should be paid before the payment of A' s loan. State the order of payment.

A and B are partners in a firm sharing profits in the ratio of 3: 2. Mrs. A has given a loan of Rs. 20,000 to the firm and the firm also obtained a loan of Rs. 10,000 from B. The firm was dissolved and its assets were realised for Rs. 25,000. State the order of payment of Mrs. A' s Loan and B' s Loan with reason, if there were no creditors of the firm.

How would you treat Employees Provident Fund shown on the liability side a of balance sheet, at the time of dissolution of partnership firm and why?

How is Workmen Compensation Reserve shown in the Balance Sheet of a partnership firm, treated at the time of its dissolution?

When a Creditor takes over an asset whose value is less than the amount due to him in full settlement of his claim, what entry shall be passed?

Why partner’s loan is not transferred to Realisation A/c?

State the reason why a partner’s wife loan is transferred to Realisation A/c?

What entry is passed when an asset is given to a Creditor in full settlement of his dues?

What is the treatment of provisions against assets on dissolution of a firm?

At which value the assets against which provisions exist are transferred to Realisation Account?

Do you think that the loan by a partner’s relative is transferred to Realisation Account at the time of dissolution of a firm? Why?

Do you think that the loan by a partner is transferred to Realisation Account at the lime of dissolution of a firm? Why?

When a liability is to be discharged by a partner, why is his Capital Account credited?

When an asset is taken over by a partner, why is his Capital Account debited?

On dissolution, what entry is passed if a partner takes over an asset of the firm Valued Rs. 10,000 at Rs. 6,000?

Give one distinction between reconstitution of a firm and dissolution of a firm.

Change in Profit Sharing-Ratio amount to dissolution of partnership or partnership firm? Give reason in support of your answer. (C.B.S. E. 2017, Comptt)

Does the change in profit sharing ratio result into dissolution of the partnership firm? Give reason in support of your answer. (C.B.S. E. 2017, Comptt)

Distinguish between 'Dissolution of Partnership’ and ‘Dissolution of Partnership Firm’ on the basis of ‘Economic Relationship’. (C.B.S.E. 2016, Delhi)

How is dissolution of partnership different from dissolution of partnership firm? (C.B.S.E. Sample Paper, 2018)

On dissolution, patents appearing in Balance Sheet are transferred to which account?

On firm ’s dissolution, what entry will be passed when a partner voluntarily gives his personal asset to firm’s creditor as payment?               

On firm’s dissolution, what entry will be made on realisation of goodwill which was shown in Balance Sheet?

On firm’s dissolution, which account should he prepared at the last?

How will the Realisation Account closed, if it discloses a loss?

On dissolution of a firm, what entry is passed on making payment of realization expenses by a partner?

On dissolution of firm, what payment Is made first from the personal assets of a partner?

On dissolution of firm, what entry is passed for payment of an unrecorded liability?

On dissolution, what entry is passed if a partner under takes to make payment of a liability of the firm?

On dissolution of a partnership firm, where is profit or loss on realization transferred?

In the event of dissolution of a partnership firm, where is the provision for doubtful debts transferred?

On dissolution of a firm, where is cash in hand transferred?

On dissolution of a firm, where are assets shown in the balance sheet transferred?

Why is Realisation Account prepared?

On dissolution of a firm, out of the proceeds received from the sale of assets Who will be paid last of all?

What is meant by dissolution of partnership firm?

On dissolution of a firm, out of the proceeds received from the sale of assets Who will be paid first of all.

Give two circumstances under which a partnership is dissolved.

What is meant by dissolution of partnership?

Give two circumstances under which a partnership firm is dissolved.

Rahul, Sahil and Jatin were partners in a firm sharing profits and losses in the ratio of 4: 3: 2. Rahul died on 15th October, 2017. At that time, the capitals of Sahil and Jatin after all the adjustments were Rs. 3,56,000 and Rs. 2,44,000 respectively. Sahil and Jatin decided to adjust their capital according to their new profit-sharing ratio by opening current accounts. Calculate the new Capitals of Sahil and Jatin. (C.B.S.E. 2020; Mumbai, Chennai)

Dinkar, Navita and Vani were partners sharing profits and losses in the ratio of 3: 2: 1. Navita died on 30th June, 2017. Her share of profit for the intervening period was based on the sales during that period, which were Rs. 6,0,0000. The rate of profit during the past four years had been 10% on sales. The firm close sits books on 31st March every year.  (C.B.S.E. 2019, Rajasthan)

Aman, Yatin and Uma were partners and were sharing profits and losses in the ratio of 5: 3: 2. Uma retired and her share was taken over by Aman and Yatin in 5:3 ratio. Calculate the gaining ratio and new ratio of Aman and Yatin. (C.B.S.E.2018, Comptt.)

Jayant, Kartik and Leena were partners in a firm sharing profit and loss in the Ratio 5: 2: 3. died Jayant decided to continue the business. Their gaining-Ratio was 2: 3. Calculate the new profit-sharing Ratio of Jayant and Leena. (C.B.S.E. 2018)

On the retirement of ‘Hari from the firm, of ‘Hari Ram and Sharma’ the balance sheet showed a debit balance of Rs. 12,000 in the profit and loss account. How will you deal with this balance? (C.B.S.E.2015 )

P, Q and R were partners in a firm sharing profits in the ratio of 5: 4: 3 respectively. Their capitals were Rs. 50.000. Rs. 40.000 and Rs. 30,000 respectively. Slate the ratio in which the goodwill of the Firm, amounting to Rs. 6,00,000. Will be adjusted in the capital accounts of the remaining partners on the retirement of Q.

Rachit, Shekhar and Tarun were partners sharing profits in the ratio of 2: 3: 4. Shekhar retired on 1st April, 2018 on which date the Balance Sheet of the firm showed the following position: (i) Investments (Market Value 2,60,000) 3,00,000; (ii) Investment Fluctuation Reserve 1,30,000 Shekhar was of the opinion that Rs. 1,30,000 should be credited to the Capital accounts of all the partners in their profit-sharing ratio whereas Rachit and Tarun were of the opinion that Rs. 90,000 instead of Rs. 1,30,000 should be credited to the Capital accounts of all the partners to which Shekhar ultimately agreed. Explain what argument must have been put forward by Rachit and Tarun that convinced Shekhar

Khushi, Surekha and Vipasa were partners sharing profits and losses in 3: 2: 1. Khushi retired and, on this day, an unrecorded liability of Rs. 1,50,000 was found in the books. Khushi was of the opinion that since she has retired she should not be debited for her share of the liability. Surekha and Vipasa convinced Khushi that unrecorded liability has to be borne by all of them to which Khushi agreed. What argument must have been put forward by Surekha and Vipasa which convinced Khushi?

Abha and Beena were partners sharing profits and losses in the ratio of 3: 2. On April 1st 2013 they decided to admit Chanda for 1 / 5th share in the profits. They had a reserve of Rs. 25.000 which they wanted to show in their new balance sheet. Chanda agreed and the necessary adjustments were made in the books. On October 1st 2013, Abha met with an accident and died. Beena and Chanda decided to admit Abha’s daughter Fiza in their partnership, who agreed to bring Rs. 2,00,000 as capital. Calculate Abha’s share in the reserve on the date of her death. (C.B.S.E. Sample Paper, 2015)

P, Q and R share profits in the ratio of 5: 4: 3. R retires and the new ratio is 5: 3. If is given Rs. 6,000 as goodwill, what will be the journal entry?

P, Q and R are partners sharing profits in the ratio of 5: 4: 3. Q retires and P and R decide to share future profits equally. What will be the Gaining Ratio?

A, B and C are partners sharing profits in the ratio of 5: 2: 1. If the new ratio on the retirement of C is 5: 2, what will be the gaining ratio?

A, B and C are partners sharing profits in the ratio of 1 / 4: 3 / 10: 9 / 20. What will be the new ratio on the retirement of C?

X, T and Z are partners sharing profits in the ratio, of 1 / 2: 2 / 5 and 1 / 10. Find the new ratio of remaining partners if Z retires.

A. B and C are partners sharing profits in the ratio of 1 /2: 1 / 4: 1 / 4 What will be the new ratio on the retirement of B?

Jamuna, Ganga and Krishna are partners in a firm. Krishna retired from the firm. After making adjustments for Reserves and Revaluation of Assets and Liabilities, the balance in Krishna’s capital account was Rs. 1,20,000. Jamuna and Ganga paid Rs. 1,80,000 in full settlement to Krishna. Identify the item for which Jamuna and Ganga paid Rs. 60.000 more to Krishna.

Ramesh wants to retire from the firm. The profit on revaluation on that date Was Rs. 12,000. Mohan and Rahul want to share this in their new profit-sharing ratio 3: 2. Ramesh wants this shared equally. How is this profit to be shared?

In which ratio do the remaining partners acquire the share of profit of the retiring or deceased partner? (C.B.S.E. 2017, 2018 Comptt.)

At the time of retirement of a partner, state the condition when there is no need to compute the gaining ratio.

On the retirement of a partner how is the profit-sharing ratio of remaining partners decided?

Can a retiring partner or Legal Representatives of a Deceased Partner claim a share in the subsequent profits of the firm.

Why a retiring or heirs of a deceased partner are entitled to a share of goodwill of the firm?

Why are assets and liabilities revalued at the time of retirement of a partner?

Why is Gaining Ratio calculated?

State two basis lor determination of Profits from the date oflast Balance Sheet to the date of death/retirement.

What journal entry will be recorded for writing off the goodwill already existing in Balance Sheet at the time of retirement of a partner?

What journal entry' will be recorded for deceased partner’s share in profit from the closure of last balance sheet till the date of his death?

Name two items which are credited to the Capital Account of a partner upon his death.

What is the basis of calculation of deceased partner’s share of profit from the date of last balance sheet to the date of his death? (C.B.S.E. 2019.Kerala)

Slate any two items of deduction that may have to be made from the amount payable to a retiring partner.

At what rate interest is payable on the amount remaining unpaid to the executor of deceased partner? (C.B.S.E. 2019 M.P.)

Name the account which is opened to credit the share of profit of the deceased partner, till the time of his death to his Capital Account.

How goodwill is recorded on the retirement or death of a partner?

For which share of goodwill a partner is entitled at the time of his retirement?

What treatment is made of accumulated profits and losses on the retirement of partner?

What is meant by ‘Gaining Ratio’ on retirement of a partner?

What is meant by retirement of a partner?

A, B and C are partners sharing in the ratio of 3: 2: 1. They admit D for l / 4th share. It is agreed that B would retain his original share. New ratio will be……….  (C.B.S.E. Comptt. 2019)

A and B are in partnership sharing profits and losses in die ratio of 3: 2. They admit C into partnership with l / 5th share which he acquires equally from A and B. Accountant has calculated new profit-sharing ratio as 5: 3: 2. Is accountant correct? (C.B.SE Sample Paper 2020)

A and B were partners in a firm sharing profits in the ratio of 3: 2. C and D were admitted as new partners. A sacrificed 1 / 4th of his share in favour of C and B sacrificed 50% of his share in favour of D. Calculate the new profit-sharing ratio of A, B, C and D. (C.B.S.E. 2019, Kerala)

S, T and U were partners in a firm. They admitted V as anew partner. S and T sacrificed 1 / 3rd and 1 / 4th of their share respectively in favour of V. Calculate the new profit-sharing ratio of S, T, U and V. (C.B.S.E. 2019, Chennai)

Atul and Neera were partners in a firm sharing profits in the ratio of 3: 2. They admitted Mitali as a new partner. Goodwill of the firm was valued at Rs. 2,00,000. Mitali brings her share of goodwill premium of Rs. 20,000 in cash, which is entirely credited to Atul’s Capital Account Calculate the new profit-sharing ratio. (C.B.S.E. 2019, M.P.)

Vinay and Naman are partners sharing profits in the ratio of 4: 1. Their capitals were Rs. 80,000 and Rs. 60,000 respectively. Reserve appeared in the books at Rs. 20,000. They admitted Prateek for 1 / 3 share in the profits. Prateek brought Rs. 1,00,000 as his capital. Calculate the value of firm’s goodwill. (C.B.S.E Comptt. 2018)

List any two items that need adjustments in books of accounts of a firm at the time of admission of a partner: - (i)Adjustment for Goodwill: (ii) Adjustment of Accumulated Profits, Reserves and Losses. A, B, C and D were partners in a firm sharing profits in the ratio of 4: 3: 2: 1. E brought Rs. 10,000 for his share of goodwill premium in cash which was correctly recorded in the books by the accountant. The accountant showed goodwill at Rs. 1,00,000 in the books. Was the accountant correct in doing so? Give reason in support of your answer.

A and B were partners in a firm. They admitted C as a new partner for 20% share in the profits. After all adjustments regarding general reserve, goodwill, gain or loss on revaluation, the balances in capital accounts of A and B were Rs. 3,85,000 and Rs. 4,15,000 respectively. C brought proportionate capital so as to give him 20% share in the profits. Calculate the amount of capital to be brought by C.  (C.B.S.E. Sample Paper, 2017)

A, B and C are the partners sharing profits and losses in the ratio of 5: 3: 2. C retired and his capital balance after adjustments regarding Reserves, Accumulated profits / losses and gain / loss on revaluation was Rs. 2,50,000. C share was paid Rs. 3,00,000 in full of settlement.  Afterwards D was admitted D. for 1 / 5th. (C.B.S.E. Sample Paper, 2017)

Geeta, Sunita and Anita were partners in a firm sharing profits in the ratio of the 5: 3: 2. On 1-1-2015 they admitted Yogita as a new partner Account for 1 / 10th share in the profit was showing a debit balance of Rs. 20,000 which was credited by the accountant of the firm to the capital accounts of Geeta, Sunita and Anita in their profit-sharing ratio. Did the accountant give correct treatment? Give reason in support of your answer.

Karan, Nakul and Asha were partners in a firm sharing profits and losses in the ratio 3: 2: 1. At the time of admission of a partner, the goodwill of the firm was valued at Rs. 2,00,000. The accountant of the firm passed the entry in the books of accounts and thereafter showed goodwill Rs. 2,00,000 as an asset in the Balance Sheet Is he correct in doing so? Why? (C.B.S.E Sample Paper, 2015)

Amit and Beena were partners in a firm sharing profits and losses in the ratio of 3: 1. Chaman was admitted as a new partner for l / 6th share in the profits. Chaman acquired 2 / 5th of his share from Amit. How much share did Chaman acquire from Beena?

Pawan and Jayshree are partners. Bindu is admitted for l / 4th share. What is the ratio in which Pawan and Jayshree will sacrifice their share in favour of Bindu?

P and Q are partners sharing profits in the ratio of 5: 3. R is admitted and the new ratio is 4: 3 :2. What will be the sacrificing ratio?

A and B were partners in a firm sharing profits and losses in the ratio of 5: 3. They admitted C as a new partner. The new profit-sharing ratio between A, B and C was 3: 2: 3. A surrendered 2 / 5th of his share in favour of C. Calculate B' s sacrifice.

A and B were partners in a firm sharing profits and losses in die ratio of 4: 3. They admitted C as a new partner. The new profit-sharing ratio between A, B and C was 3: 2: 2. A surrendered 1 / 4 of his share in favour of C. Calculate B*s sacrifice.(C.B.S.E 2017, Delhi)'

X and Y are partners sharing profits in fee ratio of 3: 1. They admit Z as a partner. X surrenders l / 3rd of his share and Y l / 4th of his share in favour of Z.  What will be the new profit-sharing ratio?

A and B share profits in the ratio of 2: 1. C is admitted with l / 3rd share in profits. C acquires 2 / 3 of his share from A and 1 / 3 of his share from B. What will be the new profit-sharing ratio?

A and B who shared profits in the ratio of 3: 1 admit C as a partner for l / 5th share in profits, which he acquires equally from the old partners. What will be the new profit-sharing ratio?

A, B and C are partners sharing profits in the ratio of 5: 3: 2. D is admitted for l / 5th share. What will be the new profit-sharing ratio?

X and Y shared profits in the ratio of 3: 1. They admit Z to one-third share in the future profits. What will be the new profit-sharing ratio?

State with reason whether at the time of admission of a partner, partnership is dissolved or partnership firm is dissolved.

Why are assets and liabilities revalued on the admission of a new partner?

Why should a new partner contribute towards goodwill on his admission? (C.B.S.E. 2017, Comptt.)

What is meant by “Hidden Goodwill”? (C.B.S.E. 2017, Comptt.)

Under what circumstances premium for goodwill paid by the incoming partner would never be recorded in the books of account?

State the need for treatment of Goodwill on admission of a partner.

Give the journal entry to distribute General Reserve and Profit and Loss Account balance appearing on the liabilities side of Balance Sheet.

What are accumulated losses?

What are accumulated profits?

State the ratio in which the partners share the gain or loss on revaluation of assets and liabilities.

State any two reasons for the preparation of ‘Revaluation Account’ on the admission of a partner.

What is a Revaluation Account?

What treatment is made of accumulated profits and losses on the admission of a new partner?

Unless given otherwise, what will be the ratio of sacrifice of the old partner  in the case of admission of a new partner? (C.B.S.E. 2019 Chennai)

Why is sacrifice ratio calculated?

State the ratio in which the old partners share the amount of cash brought in by the new partner as premium for goodwill.

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

Give the two main rights acquired by the new partner.

At the time of admission of a partner, who decides the share of profit of the new partner out of the firm’s profit?

How can a new partner be admitted?

Give the accounting entry for an unrecorded liability in case of reconstitution of partnership firm.

Give the accounting entry for unrecorded assets in case of reconstitution of a partnership firm. (C.B.S.E. 2019, Delhi)

Why are “Reserves & Surplus” distributed at the time of reconstitution of the firm?

What is the nature of ‘Revaluation Account’?

When there is change in profit sharing ratio amongst existing partners, should the assets and liabilities be revalued?

When there is change in the profit-sharing ratio amongst existing partners, does it require adjustment for goodwill?

Distinguish between average profits and super profits.

How does the market situation affect the value of goodwill of a firm?

How does the market situation affect the value of goodwill of a firm?

How does the factor ‘quality of product’ affect the goodwill of a firm?

How does the factor ‘Efficiency of Management' affect the goodwill of firm?

How does the factor ‘Location’ affect the goodwill of a firm?

Why is ‘Goodwill’ considered an ‘Intangible Asset’ but not a ‘Fictitious Asset’? (ISC 2020)

How are the accumulated profits and losses distributed when there is change in profit sharing ratio amongst existing partners?

State the ratio in which the partners share profits or losses on revaluation of assets and liabilities, when there is a change in profit sharing ratio amongst existing partners?

How the goodwill is valued under the Capitalisation of Super Profit method?

Enumerate two main steps involved in valuing the goodwill according to super profit method.

How the goodwill is valued under the Capitalisation of Average Profits method?

How the goodwill is valued under the super profit’s method?

What is meant by Super Profits?

Name any two factors affecting goodwill of a partnership firm.

How the goodwill is valued under the average profit’s method?

Give two characteristics of Goodwill.

Define Goodwill.

Give two circumstances in which gaining ratio may be applied.

What is meant by Gaining Partners?

Give the formula for calculating Gaining Ratio of a partners in a partnership firm.

Define Gaining Ratio?

Give two circumstances in which sacrificing ratio may be applied.

What is meant by Sacrificing Partners?

What is the formula for calculating sacrificing ratio?

What is Sacrificing Ratio?

What is meant by change in profit-sharing

State any three circumstances other than:-(i) admission of a new partner; (ii) retirement of a partner and (iii) death of a partner, when need for valuation of goodwill of a firm may arise.

What is meant by reconstitution of partnership firm?

Mohit, Shobhit and Rohit are partners sharing profits and losses in the ratio 2: 1: 1. Rohit is guaranteed n profit of Rs. 14,000. The firm earned a profit of Rs. 20,000 during the year. Calculate the amount of deficiency borne by Mohit and Shobhit. (C.B.S.E. 2020; Punjab)

Raj Seema started a partnership firm on 1st july , 2018. They agreed that Seema was entitled to a commission of 10% of the net profit after agreed charging Raj’s salary of Rs. 2,500 per quarter and Seema’s commission. The net profit before charging Raj’s salary and Seema’s commission for the year ended 31st March, 2019 was Rs. 2,27,500. Calculate Seema’s commission. (C.B.S.E. 2019, Comptt.)

In the absence of provision in the partnership deed, in which ratio is the deficiency arising out of guarantee of profit to a partner born by the other partners? (C.B.S.E. 2019, Chennai)

Chhavi and Neha were partners in a firm sharing profits and losses equally. Chhavi withdrew a fixed amount of Rs. 6,000 at the beginning of each quarter. Interest on drawings is charged @ 6% p.a. Pass necessary journal entry for charging interest on drawings at the end of the year. (C.B.S.E. 2019, M.P.)

Ritesh and Hitesh are childhood friends. Ritesh is a consultant whereas Hitesh is an architect. They contributed equal amounts and purchased a building for Rs. 2 crores. After a year, they sold it for Rs. 3 crores and shared the profits equally. Are they doing the business in partnership? Give reason in support of your answer.

P and Q were partners in a firm sharing profits and losses equally. Their fixed capitals were Rs. 2,00,000 and Rs. 3,00,000 respectively. The partnership deed provided for interest on capital @ 12% per annum. For the year ended 31st March, 2016, the profits of the firm were distributed without providing interest on capital. Pass necessary adjustment entry to rectify the error. (C.B.S.E. 2017, Outside Delhi)

A and B are partners. The net divisible profit as per Profit and Loss Appropriation A/c is Rs. 2,50,000. The total interest on partner’s drawings is Rs. 4,000. A’s salary is Rs. 4,000 per quarter and B' s salary is Rs. 40,000 per annum. Calculate the net profit / loss earned during the year. (C.B.S.E. Sample Paper, 2017)

Anna and Bobby were partners sharing profits and losses in the ratio of 5: 3. On 1st April, 2014, their Capital Accounts showed balances of Rs. 3,00,000 and Rs. 2,00,000 respectively. Calculate the amount of profit to be distributed between the partners if the Partnership Deed provided for Interest on Capital @10% p.a. and the firm earned a profit of Rs. 45,000 for the year ended 31st March, 2015. (C.B.S.E. 2016, Comptt. Outside Delhi)

How will a firm deal with a situation when its partnership deed provides for interest on capital, but the profit earned by it is not enough to do so, at the rate mentioned in the deed?

Abha and Bharat were partners. They shared profits and losses equally. On 1st April, 2014 their Capital Accounts showed balances of Rs. 3,00,000 and Rs. 2,00,000 respectively. Calculate the amount of Profit to be distributed Between the partners in the partnership deed provide for Interest on Capital @10% p.a. and the firm earned a profit of Rs. 50,000 for the year ended 31st March, 2015. (C.B.S.E. 2016, Comptt.)

Kanha, Neeraj and Asha were partners in a firm. They admitted Raghav their landlord as a partner in the firm. Raghav brings sufficient amount of capital and goodwill premium for his share in the profits. Raghav had given a loan of Rs. 1,00.000 @ 10% p.a. interest in the partnership firm before he came the partner. Now the accountant of the firm is emphasising that the interest on loan should he paid @6% p.n. Is he right in doing so? Give reason in support of your answer. (C.B.S.E. 2015 Comptt.)

State the closing entries for: (a) rent paid to a partner; (b) interest on loan allowed to partners.

In what way would you deal with rent paid to a partner for the use of his premises by the firm in which he is a partner and why?

Would a ‘charitable dispensary’ run by 8 members be deemed a partnership firm? Give reason in support of your answer.

A, B and C are partners decided that no interest on drawings is to be charged to any partner. But after one year ‘C’ wants that interest on drawings should be charged to every partner. State how ‘C’ can do this.

Padam and Virender were partners in a firm with no partnership deed. Their drawings during the year ended 31st March, 2015 amounted to Rs. 5,00,000 and Rs.  2,00,000 respectively. Virender was of the opinion that the firm should drawings @ 6% p.a. However, Padam disagreed to it. Padam convinced Virender that interest cannot be charged on drawings. What argument must have been put forward by Padam that convinced Virender?

Ruchika and Surekha entered into partnership with capitals of Rs. 30,00.000 and Rs. 15,00,000 respectively. They did not enter into partnership deed. At the end of accounting year, Ruchika claimed interest on capital @6% p.a. but Surekha convinced Ruchika that interest cannot be allowed on capital. Explain how Surekha would have convinced Ruchika?

B has drawn Rs. 50,000 from the firm for his personal use during the year. Firm wants to charge 6% p.a. interest on this amount. Can the interest be charged, if partnership deed is silent in this matter?

A claims 6% p.a. interest on his capital. Is his claim valid if partnership deed is silent in this matter?

X has given a loan of Rs. 50,000 to the firm. He claims 10% p.a. interest. Is his claim valid in case partnership deed is silent in this matter?

Suresh and Ramesh are partners in a firm with capitals of Rs. 3,00,000 and 4,00,000 respectively. They do not have a partnership deed. Ramesh wants to share the profits in the ratio of Capitals. State with reason whether the claim is valid?

X and Y are partners. Y wants to admit his son K into business. Can K become the partner of the firm? Give reason.

The partnership deed is silent on payment of salary' to partners. Amita, a partner claimed that since she managed the business, she should get a monthly salary of Rs. 10,000. Is she entitled for the salary? Give reason.

Alka, Barkha and Charu are partners in a firm having no partnership agreement. Alka, Barkha and Charu contributed Rs. 2,00.000, Rs. 3.00,000 and Rs. 1,00,000 respectively. Alka and Barkha desire that the profits should be divided in the ratio of capital contribution. Charu does not agree to this. How will you settle the dispute?

A. B, C and D are partners. A, B and C desire that D should not participate in the conduct of the business of the firm. Can they prevent D?

A and B jointly purchased a plot of land. Will they be called partners?

Mention a case where Profit & Loss Appropriation Account will be prepared even if Profit & Loss Account discloses net loss.

Why is Profit and Loss Appropriation Account prepared by a Partnership Firm?

Do all forms of business organisations prepare a Profit and Loss Appropriation Account?

Give one point of difference between Profit and Loss Account and Profit and Loss Appropriation Account.

State the two situations under which interest on capital is generally provided. (C.B.S.E. 2019, Delhi)

A partnership deed provides for the payment of interest on capital but there was a loss instead of profits during the year 2018-2019. At what rale will the interest on capital be allowed?

State the provisions of the Indian Partnership Act., 1932, regarding charging of interest on drawings from a partner when: (a) The firm has a partnership deed; (b) The firm does not have a partnership deed.

Give one reason why partners are charged interest on drawings.

What is the purpose of allowing interest on partners’ capital?

Why is it that the Capital Account of a partner does not show a “Debit Balance’’ inspite of regular and consistent losses year after year?

Can a partner be exempted from sharing the losses in a firm? If yes, under what circumstances?

Give the adjusting entry and the closing entry for recording commission allowed to a partner, when the firm follows the fixed capital method. (I.S.C. 2015)

Why is it necessary to have a partnership deed?

Distinguish between ‘Fixed Capital Account’ and fluctuating Capital Account’ on the basis of credit balance.

List any two circumstances under which the fixed capital of partners may change.

In the absence of any provision in the partnership deed, at what rate is a working partner entitled for remuneration?

What share of profits would a ‘sleeping partner’ who has contributed 75% of the Total Capital get in the absence of a deed?

Why is it important, to have a partnership deed in writing?

Is it necessary to have a partnership agreement in writing?

Why salary and commission paid to partners are recorded in Profit & Loss Appropriation Account instead of Profit & Loss Account?

Name any two items which are shown on the credit of Profit and Loss Appropriation Account.

Name any two items which are shown on the debit of Profit and Loss Appropriation Account.

Name the method of calculating interest on Drawings of the Partners if the different amounts are withdrawn on different dates.

If a fixed amount is withdrawn on the last day of every quarter, for what period the interest on total drawings will be calculated?

If a fixed amount is withdrawn on the first day of every quarter, for what period the interest on total drawings will be calculated. (C.B.S.E. Sample Paper 2019)

If a fixed amount is withdrawn on the last day of every month, for what period the interest on total drawings will be calculated?

If a fixed amount withdrawn on 15th day of every month, for what period the interest on total Drawings will be calculated?

If a fixed amount is withdrawn on the first day of every month, for what period the interest on total drawings will be calculated?

Why does the Fixed Capital Account of partners show credit balance even when the firm suffers losses year after year? (C.B.S.E. 2020, Mumbai, Chennai)

In case the partner 's capital accounts are fixed; withdrawal of capital is recorded in which account?(C.B.S. E. 2020, Mumbai, Chennai)

When salary to partners, interest on capital, drawings, interest on drawings, Interest on Drawing etc. are recorded in capital accounts of partners, which method we are following to maintain the capital account?

Name the methods according to which partner’s capital accounts are maintained.

In case of fluctuating capitals, where will you record drawings and interest on drawings?

List any two items that may appear on the credit side of the Capital Account of a partner when the capitals are fluctuating.

List any two items that may appear on the debit side of the Capital Account of a partner when the capitals are fluctuating.

Mention two items that may appear on the credit side of a Partner’s Fixed Capital Account.

Mention two items that may appear on the debit side of a Partner's Fixed Capital Account.

If the partner’s capitals are fixed, where will you record interest on drawings and share of profit of a partner?

Write two items of debit side of Current Accounts.

Write two items of credit side of Current Accounts.

What is partner’s Current Account?

What Accounts are maintained, (a) when the capitals are fixed? (b) when the capitals are fluctuating?

What is meant by fluctuating capital of partners?

What is meant by fixed capital of partners?

Kavita and Laxmi run a charitable dispensary. Kavita wants to have a partnership deed. What is your opinion?

In the absence of partnership deed, at which rate interest is allowed on a partner’s loan?

In the absence of partnership deed, what is the ratio in which the profits of a firm are divided among the partners?

Is a sleeping* partner liable to the acts of other partners?

State the provisions of Indian Partnership Act regarding the payment of remuneration to a partner for the services rendered.

How are mutual relations of partners governed in the absence of Partnership Deed?

What is partnership deed?

A partnership firm has 50 members. All the partners have agreed to admit Ram and Mohan as new partners. Can Ram and Mohan be admitted? Give Reason in support of your answer. (C.B.S.E. Sample Paper, 2017)

A group of 40 people wants to form a partnership firm. They want your advice regarding the maximum number of persons that can be there in a partnership firm and the name of the Act under whose provisions it is given. (C.B.S.E 2016, All India)

Gupta and Sharma were partners in a firm. They wanted to admit two more members in the firm. list the categories of individual other than minors who cannot be admitted by them.

What is the maximum number of partners that a partnership firm can have? Name the Act that provides for the maximum number of partners in a partnership firm.

What can be the minimum number of partners in a firm?

The business of a partnership firm may be carried on by all the partners or any one of them acting for all. One of the important implications of this statement is that every partner is entitled to participate in the conduct of the affairs of its business. State the second important implication of this statement. (C.B.S.E. 2020. Kerala)

What is meant by “Unlimited Liability of a Partner”?

Six friends started a partnership business by investing Rs. 2.00,000 each. They decided to share profit equally. Name the terms by which they will be called individually and collectively.

Does partnership firm has a separate legal entity? Give reason in support of your answer.

What is meant by ‘mutual agency' in case of partnership? (C.B.S.E. 2019. Chennai)

State the 'liability of a partner’ in a partnership firm.(C.B.S.E. 2019. Delhi)

Ankit, Bhanu and Charu are partners in a firm sharing profits and losses equally with capital of Rs. 2,50,000 each. On 1st October, 2021, Ankit and Bhanu gave loans of Rs. 2,50,000 each to the firm whereas Charu took a loan of Rs. 1,00,000 from the firm on the same date. It was agreed among the partners that Charu will be charged Interest @ 6% pa. Interest on loan from partners was paid on 10th April, 2022. The firm closes its books on 31st March each year. Pass the Journal entries in the books of the firm for the year ended 31st March, 2022.

Nirmal and Pawan are partners sharing profits in the ratio of 3: 2. The firm had given loan to Pawan of Rs. 5,00,000 on 1st April, 2021. Interest was to be charged @ 10% p.a. The firm took loan of Rs. 2,00,000 from Nirmal on 1st October, 2021. Before giving effect to the above, the firm incurred a loss of Rs. 10,000 for the year ended 31st March, 2022. Determine the amount to be transferred to Profit and Loss Appropriation Account.

Akhil and Bimal are partners sharing profits in the ratio of 3: 2. Akhil gave loan to the firm of Rs. 1,00,000 on 1st October, 2021. On the same date, the firm gave loan to Bimal of Rs. 1,00 000. They do not have an agreement as to interest. Akhil had also given his personal property for firm’s godown at a monthly rent of Rs. 5,000. Firm earns profit of Rs. 1,03,000 (before above adjustments) for the year ended 31st March, 2022. Show the distribution of profit for the year.

Sita and Geeta are partners in a firm sharing profits in the ratio of 3: 2. They had advanced to the firm a sum of Rs. 30,000 as a loan in their profit-sharing ratio on 1st October, 2021. The Partnership Deed is silent on interest on loans from partners. Compute interest payable by the firm to the partners, assuming the firm closes its books every year on 31st March.

Bose, Sarkar and Chatterjee are partners in a firm and do not have a partnership deed. Bose introduced further capital of Rs. 5,00,000 on 1st October, 2021. Whereas Chatterjee took a loan of Rs. 50,000 from the firm on 1st October, 2021. Disputes have arisen among them on the following issues: (a) Bose demands interest @ 10% p.a. on Rs. 5,00,000 being his extra capital. (b) Sarkar desires that his son Deep should be admitted as partner and he will give his half of his share. Bose and Chatterjee do not agree. (c) Bose and Sarkar are of the view that Chatterjee should be charged interest on loan from the firm at the lending rate of the banks, which is 12% p.a. (d) Sarkar has withdrawn Rs. 50,000 from the firm for his personal use. Bose and Chatterjee are of the view that Sarkar should be charged interest @ 10% p.a. You are required to give solution to each issue of dispute.

Mahesh, Ramesh and Suresh are partners in a firm. They do not have a Partnership Deed. At the end of the first year of the business. they faced the following problems: (a) Mahesh wants that interest on capital should be allowed to the partners but Ramesh and Suresh do not agree. (b) Ramesh wants that the partners should be allowed to draw salary but Mahesh and Suresh do not agree. (c) Mahesh and Ramesh want that Suresh should pay interest on loan given to him by the firm but Suresh does not agree. (d) Mahesh and Ramesh having contributed larger amounts of capital, desire that the profits should be distributed in the ratio of their capital contribution but Suresh does not agree. State how you will settle this dispute if the partner approach you for the purpose.

From the following Balance Sheet as at 31st March, 2019 and Statement of Profit and Loss for the year ended 31st March, 2019 of RSB Ltd. and additional information, prepare Cash Flow Statement:  

Prepare Cash Flow Statement from the following:

From the following Balance Sheet of Samta Ltd., as at 31st March, 2019, prepare Cash Flow Statement:

From the following Balance Sheet and information of Sun Ltd., prepare Cash Flow Statement:

From the following Balance Sheet of Mishi Ltd. as at 31st March, 2019, prepare Cash Flow Statement:

From the following Balance Sheet of SRS Ltd. and the additional information as on 31st March, 2016, prepare a Cash Flow Statement:

From the following Balance Sheet of Akash Ltd. as at 31st March 2014:

From the following Balance Sheet, prepare Cash Flow Statement:

Following is the summarised Balance Sheet of Philips India Ltd. as at 31st March 2018:

Prepare Cash Flow Statement from the following Balance Sheet:

From the following Balance Sheet of JY Ltd. as at 31st March 2017, prepare a Cash Flow Statement:

Following are the Balance Sheets of Krish tec Ltd. for the years ended 31st March 2012 and 2011:

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

Following was the Balance Sheet of M.M. Ltd. as at 31st March, 2015:

From the following Balance Sheet of Kumar Ltd. as at 31st March, 2019, prepare Cash Flow Statement:

Following is the Balance Sheet of Mevanca Limited as at 31st March, 2017:

Following are the Balance Sheets of Solar Power Ltd. as at 31st March, 2014 and 2013:

Prepare a Cash Flow Statement on the basis of the information given in the Balance Sheet of Libra Ltd. as at 31st March, 2013 and 31st March 2012:

Following is the Balance Sheet of Fine Products Ltd. as at 31st March, 2019:

From the following Balance Sheet of Young India Ltd., prepare Cash Flow Statement:

From the following information, prepare Cash Flow Statement:

From the following information, calculate Net Cash Flow from Operating Activities and Financing Activities:

XYZ. Ltd. provided the following information, calculate Net Cash Flow from Financing Activities:

From the following information, calculation Cash Flow from Operating Activities and Investing Activities:

From the following information, calculate Cash Flow from Investing and Financing Activities:

From the following extracts of Balance Sheet of Exe Ltd., calculate Cash Flow from Financing Activities:

From the following information, calculate Cash Flow from Financing Activities:

From the following particulars, calculate Cash Flow from Investing Activities

From the following information, calculate Cash Flow from Investing Activities:

Calculate Cash Flow from Investing Activities from the following information:

From the following extracts of a company, calculate Cash Flow from Investing Activities:

From the following information, calculate Cash Flow from Investing Activities:

From the following Balance Sheet of Combi last Ltd. for the year ended 31st March, 2019 and additional information, calculate Cash Flow from Investing Activities:

From the following information, calculate Cash Flow from Investing Activities:

From the following details. Calculate Cash Flow from Investing Activities:

From the following details. Calculate Cash Flow from Investing Activities

Mars Ltd. has Plant and Machinery whose written down value on 1st April, 2017 was Rs. 9,60,000 and on 31st March, 2018 was Rs. 10,50,000. Depreciation for the year was Rs. 35,000. In the beginning of the year, a part of plant was sold for Rs. 45,000 which had a written down value of Rs. 30,000. Calculate Cash Flow from Investing Activities

Calculate Cash Flow from Operating Activities from the following information: INCOME STATEMENT (STATEMENT OF PROFIT AND LOSS) for the year ended 31st March, 2019.

Compute Cash Flow from Operating Activities from the following: (i) Profit for the year ended 31st March, 2019 is Rs. 10,000 after providing for depreciation of Rs. 2,000. (ii) Current Assets and Current Liabilities of the business for the year ended 31st March, 2018 and 2019 are as follows:

Charles Ltd. earned a profit of Rs. 1,00,000 after charging depreciation of 20,000 on assets and a transfer to General Reserve of Rs. 30,000. Goodwill amortised was Rs. 7,000, and gain on sale of machinery was Rs. 3,000. Other information available is (changes in the value of Current Assets and Current Liabilities): trade receivables showed an increase of Rs. 3,000; trade payables an increase of Rs. 6,000; Prepaid expenses an increase of Rs. 200; and outstanding expenses a decrease of Rs. 2,000. Ascertain Cash Flow from Operating Activities.

Compute Cash Flow from Operating Activities from the following:

Following information is related to ABC Ltd.: STATEMMENT OF PROFIT AND LOSS for the year ended 31st March, 2019

Calculate Cash Flow from Operating Activities from the following information.

Grand Hospitality Ltd., reported Net Profit after Tax of Rs. 6,40,000 for the year ended 31st March, 2019. The relevant extract from Balance Sheet as at 31st March, 2019 is:

Calculate Cash Flow from Operating Activities from the following:

Compute Cash Flow from Operating Activities from the following information:

Calculate Cash Flow from Operating Activities from the following details:

From the following Balance Sheet of Double Tree Ltd. as at 31st March, 2019 and additional information, calculate Operating Profit before Working Capital Changes: 

From the following information, calculate Operating Profit before Working Capital Changes:

From the following information, calculate Net Profit before Tax and Extraordinary Items:

Calculate Net Profit before Tax and Extraordinary Items of Premier Sales Ltd. from its Balance Sheet as at 31st March, 2019: 

Following is the extract from the Balance Sheet of Zee Ltd .:

Following are the extracts from the Balance Sheet of MAH Ltd. as at 31st March, 2019:

For each of the following transactions, calculate the resulting Cash Flow and state the nature of Cash Flow, i.e., whether it is Operating, Investing or Financing: (a) Acquired machinery for Rs. 2,50,000 paying 20% by cheque and executing a bond for the balance payable. (b) Paid Rs. 2,50,000 to acquire shares in Informa Tech Ltd. and received a dividend of Rs. 50,000 after acquisition. (c) Sold machinery of original cost of Rs. 2,00,000 with an accumulated depreciation of Rs. 1,60,000 for Rs. 60,000.

State which of the following would result in inflow / outflow or no flow of Cash and Cash Equivalents: (a) Sale of Fixed Assets, Book Value Rs. 1,00,000 at a profit of Rs. 10,000. (b) Sale of goods against cash. (c) Purchase of machinery for cash. (d) Purchase of Land and Building for Rs. 10,00,000. Consideration paid by issue of debentures. (e) Issued fully paid Bonus Shares. (f) Cash withdrawn from bank. (g) Payment of Interim Dividend. (h) Proposed Dividend.

Identify the transactions as belonging to: (i) Operating Activities, (ii) Investing Activities, (iii) Financing Activities and (iv) Cash and Cash Equivalents:

From the following information, calculate Return on Investment (or Return on Capital Employed):

From the following information related to Naveen Ltd., calculate (a) Return on Investment and (b) Total Assets to Debt Ratio: Information: Fixed Assets Rs. 75,00,000; Current Assets Rs. 40,00,000; Current Liabilities Rs. 27,00,000; 12% Debentures Rs. 80,00,000 and Net Profit before Interest, Tax and Dividend Rs. 14,50,000. 

From the following, calculate (a) Debt to Equity Ratio; (b) Total Assets to Debt Ratio; and (c) Proprietary Ratio:

On the basis of the following information calculate: (i) Debt to Equity Ratio. (ii) Working Capital Turnover Ratio. Information:

From the information given below, calculate any three of the following ratio:(i) Gross Profit Ratio. (ii) Working Capital Turnover Ratio. (iii) Debt to Equity Ratio. (iv) Proprietary Ratio.

Calculate following ratios on the basis of the following information: (i) Gross Profit Ratio. (ii) Current Ratio. (iii) Acid Test Ratio. (iv) Inventory Turnover Ratio.

From the following calculate:(a) Current Ratio; and  (b) Working Capital Turnover Ratio.

From the following information, calculate Inventory Turnover Ratio; Operating Ratio and Working Capital Turnover Ratio: Opening Inventory Rs. 28,000; Closing Inventory Rs. 22,000; Purchases Rs. 46,000; Revenue from Operations, i.e., Net Sales Rs. 80,000; Return Rs. 10,000; Carriage Inwards Rs. 4,000; Office Expenses Rs. 4,000; Selling and Distribution Expenses Rs. 2,000; Working Capital Rs. 40,000. 

From the following information, calculate any two of the following ratios: (i) Current Ratio; (ii) Debt to Equity Ratio; and (iii) Operating Ratio. Revenue from Operations (Net Sales) Rs. 1,00,000; cost of Revenue from Operations (Cost of Goods Sold) was 80% of sales; Equity Share Capital Rs. 7,00,000; General Reserve Rs. 3,00,000; Operating Expenses Rs. 10,000; Quick Assets Rs. 6,00,000; 9% Debentures Rs. 5,00,000; Closing Inventory Rs. 50,000; Prepaid Expenses Rs. 10,000 and Current Liabilities Rs. 4,00,000.

Following information is given about a company: 

Opening Inventory Rs. 80,000; Purchases Rs. 4,30,900; Direct Expenses Rs. 4,000; Closing Inventory Rs. 1,60,000; Administrative Expenses Rs. 21,100; Selling and Distribution Expenses Rs. 40,000; Revenue from Operations, i.e., Net Sales Rs. 10,00,000. Calculate Inventory Turnover Ratio; Gross Profit Ratio; and Opening Ratio.

State with reason whether the following transactions will increase, decrease or not change the 'Return on Investment' Ratio: (i) Purchase of machinery worth Rs. 10,00,000 by issue of equity shares. (ii) Charging depreciation of Rs. 25,000 on machinery. (iii) Redemption of debentures by cheque Rs. 2,00,000. (iv) Conversion of 9% Debentures of Rs. 1,00,000 into equity shares.

Following is the Balance Sheet of the Bharati Ltd. as at 31st March, 2019:

From the following Balance Sheet of Global Ltd., you are required to calculate Return on Investment for the year 2018-19:

Y Ltd.'s profit after interest and tax was Rs. 1,00,000. Its Current Assets were Rs. 4,00,000; Current Liabilities Rs. 2,00,000; Fixed Assets Rs. 6,00,000 and 10% Long-term Debt Rs. 4,00,000. The rate of tax was 20%. Calculate 'Return on Investment' of Y Ltd.

Net Profit before Interest and Tax Rs. 4,00,000; 15% Long-term Debt Rs. 8,00,000; Shareholders' Funds Rs. 4,00,000. Calculate Return on Investment.

Net Profit before Interest and Tax Rs. 6,00,000; Net Fixed Assets Rs. 20,00,000; Net Working Capital Rs. 10,00,000; Current Assets Rs. 11,00,000. Calculate Return on Investment.

Net Profit before Interest and Tax Rs. 2,50,000; Capital Employed Rs. 10,00,000. Calculate Return on Investment.

Calculate Return on Investment (ROI) from the following details: Net Profit after Tax Rs. 6,50,000; Rate of Income Tax 50%; 10% Debentures of Rs. 100 each Rs. 10,00,000; Fixed Assets at cost Rs. 22,50,000; Accumulated Depreciation on Fixed Assets up to date Rs. 2,50,000; Current Assets Rs. 12,00,000; Current Liabilities Rs. 4,00,000.

Revenue from Operations Rs. 4,00,000; Gross Profit Ratio 25%; Operating Ratio 90%. Non-operating Expenses Rs. 2,000; Non-operating Income Rs. 22,000. Calculate Net Profit Ratio.

Revenue from Operations, i.e., Net Sales Rs. 8,20,000; Return Rs. 10,000; Cost of Revenue from Operations (Cost of Goods Sold) Rs. 5,20,000; Operating Expenses Rs. 2,09,000; Interest on Debentures Rs. 40,500; Gain (Profit) on Sale of a Fixed Asset Rs. 81,000. Calculate Net Profit Ratio.

Revenue from Operations, i.e., Net Sales Rs. 6,00,000. Calculate Net Profit Ratio.

Cash Sales Rs. 2,20,000; Credit Sales Rs. 3,00,000; Sales Return Rs. 20,000; Gross Profit Rs. 1,00,000; Operating Expenses Rs. 25,000; Non-operating incomes Rs. 30,000; Non-operating Expenses Rs. 5,000. Calculate Net Profit Ratio.

Operating Cost Rs. 3,40,000; Gross Profit Ratio 20%; Operating Expenses Rs. 20,000. Calculate Operating Profit Ratio.

Revenue from Operations Rs. 9,00,000; Gross Profit 25% on Cost; Operating Expenses Rs. 45,000. Calculate Operating Profit Ratio

Calculate Operating Profit Ratio, in each of the following alternative cases: Case 1:  Revenue from Operations (Net Sales) Rs. 10,00,000; Operating Profit Rs. 1,50,000. Case 2:  Revenue from Operations (Net Sales) Rs. 6,00,000; Operating Cost Rs. 5,10,000. Case 4:  Revenue from Operations (Net Sales) Rs. 3,60,000; Gross Profit 20% on Sales; Operating Expenses Rs. 18,000. Case 4: Revenue from Operations (Net Sales) Rs. 4,50,000; Cost of Revenue from Operations Rs. 3,60,000; Operating Expenses Rs. 22,500. Case 5: Cost of Goods Sold, i.e., Cost of Revenue from Operations Rs. 8,00,000; Gross Profit 20% on Sales; Operating Expenses Rs. 50,000.

What will be the Operating Profit Ratio, if Operating Ratio is 82.59%?

Calculate Operating Profit Ratio from the Following:

Calculate Operating Profit Ratio from the following information: 

Calculate Operating Ratio from the following information: Operating Cost Rs. 6,80,000; Gross Profit 25%; Operating Expenses Rs. 80,000. 

Calculate Cost of Revenue from Operations from the following information: Revenue from Operations Rs. 12,00,000; Operating Ratio 75%; Operating Expenses Rs. 1,00,000.

From the following information, calculate Operating Ratio:

(i) Cost of Revenue from Operations (Cost of Goods Sold) Rs. 2,20,000; Revenue from Operations (Net Sales) Rs. 3,20,000; Selling Expenses Rs. 12,000; Office Expenses Rs. 8,000; Depreciation Rs. 6,000. Calculate Operating Ratio. (ii) Revenue from Operations, Cash Sales Rs. 4,00,000; Credit Sales Rs. 1,00,000; Gross Profit Rs. 1,00,000; Office and Selling Expenses Rs. 50,000. Calculate Operating Ratio.

Cost of Revenue from Operations (Cost of Goods Sold) Rs. 3,00,000. Operating Expenses Rs. 1,20,000. Revenue from Operations: Cash Sales Rs. 5,20,000; Return Rs. 20,000. Calculate Operating Ratio.

Gross Profit Ratio of a company is 25%. State giving reason, which of the following transactions will (a) increase or (b) decrease or (c) not alter the Gross Profit Ratio. (i) Purchases of Stock-in-Trade Rs. 50,000. (ii) Purchases Return Rs. 15,000. (iii) Cash Sale of Stock-in-Trade Rs. 40,000. (iv) Stock-in-Trade costing Rs. 20,000 withdrawn for personal use. (v) Stock-in-Trade costing Rs. 15,000 distributed as free sample.

(i) Revenue from Operations: Cash Sales Rs. 4,20,000; Credit Sales Rs. 6,00,000; Return Rs. 20,000. Cost of Revenue from Operations or Cost of Goods Sold Rs. 8,00,000. Calculate Gross Profit Ratio. (ii) Average Inventory Rs. 1,60,000; Inventory Turnover Ratio is 6 Times; Selling Price 25% above cost. Calculate Gross Profit Ratio. (iii) Opening Inventory Rs. 1,00,000; Closing Inventory Rs. 60,000; Inventory Turnover Ratio 8 Times; Selling Price 25% above cost. Calculate Gross Profit Ratio.

Calculate Gross Profit Ratio from the following data: Average Inventory Rs. 3,20,000; Inventory Turnover Ratio 8 Times; Average Trade Receivables Rs. 4,00,000; Trade Receivables Turnover Ratio 6 Times; Cash Sales 25% of Net Sales.

From the following information, calculate Gross Profit Ratio:

Calculate Gross Profit Ratio from the following data: Cash Sales are 20% of Total Sales; Credit Sales are Rs. 5,00,000; Purchases are Rs. 4,00,000; Excess of Closing Inventory over Opening Inventory Rs. 25,000.

Compute Gross Profit Ratio from the following information: Revenue from Operations, i.e., Net Sales : Rs. 4,00,000; Gross Profit 25% on Cost.

From the following, calculate Gross Profit Ratio:Gross Profit: Rs. 50,000; Revenue from Operations Rs. 5,00,000; Sales Return: Rs. 50,000.

Compute Gross Profit Ratio from the following information: Cost of Revenue from Operations (Cost of Goods Sold) Rs. 5,40,000; Revenue from Operations (Net Sales) Rs. 6,00,000.

A company earns Gross Profit of 25% on cost. For the year ended 31st March, 2017 its Gross Profit was Rs. 5,00,000; Equity Share Capital of the company was Rs. 10,00,000; Reserves and Surplus Rs. 2,00,000; Long-term Loan Rs. 3,00,000 and Non-current Assets were Rs. 10,00,000. Compute the 'Working Capital Turnover Ratio' of the company.

Calculate Working Capital Turnover Ratio from the following information: Revenue from Operations Rs. 30,00,000; Current Assets Rs. 12,50,000; Total Assets Rs. 20,00,000; Non-current Liabilities Rs. 10,00,000, Shareholders' Funds Rs. 5,00,000.

Capital Employed Rs. 12,00,000; Net Fixed Assets Rs. 8,00,000; Cost of Goods Sold or Cost of Revenue from Operations Rs. 40,00,000; Gross Profit is 20% on Cost. Calculate Working Capital Turnover Ratio.

Gross Profit at 25% on cost; Gross profit Rs. 5,00,000; Equity Share Capital Rs. 10,00,000; Reserves and Surplus Rs. 2,00,000; Long-term Loan Rs. 3,00,000; Fixed Assets (Net) Rs. 10,00,000. Calculate Working  Capital Turnover Ratio

Equity Share Capital Rs. 15,00,000; Gross Profit on Revenue from Operations, i.e., Net Sales 33.13%; Cost Revenue from Operations or Cost of Goods Sold Rs. 20,00,000; Current Assets Rs. 10,00,000; Current Liabilities Rs. 2,50,000. Calculate Working Capital Turnover Ratio. 

Revenue from Operations: Cash Sales Rs. 5,00,000; Credit Sales Rs. 6,00,000; Sales Return Rs. 1,00,000. Current Assets Rs. 3,00,000; Current Liabilities Rs. 1,00,000. Calculate Working Capital Turnover Ratio.

From the following information, calculate Working Capital Turnover Ratio:

Calculate Trade Payables Turnover Ratio for the year 2018-19 in each of the alternative cases: Case 1 : Closing Trade Payables Rs. 45,000; Net Purchases Rs. 3,60,000; Purchases Return Rs. 60,000; Cash Purchases Rs. 90,000. Case 2: Opening Trade Payables Rs. 15,000; Closing Trade Payables Rs. 45,000; Net Purchases Rs. 3,60,000.  Case 3: Closing Trade Payables Rs. 45,000; Net Purchases Rs. 3,60,000. Case 4: Closing Trade Payables (including Rs. 25,000 due to a supplier of machinery) Rs. 55,000; Net Credit Purchases Rs. 3,60,000.

Calculate Trade payables Turnover Ratio from the following information: Opening Creditors Rs. 1,25,000; Opening Bills Payable Rs. 10,000; Closing Creditors Rs. 90,000; Closing bills Payable Rs. 5,000; Purchases Rs. 9,50,000; Cash Purchases Rs. 1,00,000; Purchases Return Rs. 45,000.

Calculate Trade Payables Turnover Ratio and Average Debt payment Period from the following information: 

From the information given below, calculate Trade Receivables Turnover Ratio: Credit Revenue from Operations, i.e., Credit Sales Rs. 8,00,000; Opening Trade Receivables Rs. 1,20,000; and Closing Trade Receivables Rs. 2,00,000. State giving reason, which of the following would increase, decrease or not change Trade Receivables Turnover Ratio: (i) Collection from Trade Receivables Rs. 40,000. (ii) Credit Revenue from Operations, i.e., Credit Sales Rs. 80,000. (iii) Sales Return Rs. 20,000. (iv) Credit Purchase Rs. 1,60,000.

Calculate Trade Receivables Turnover Ratio in each of the following alternative cases: Case 1: Net Credit Sales Rs. 4,00,000; Average Trade Receivables Rs. 1,00,000. Case 2: Revenue from Operations (Net Sales) Rs. 30,00,000; Cash Revenue from Operations, i.e., Cash Sales  Rs. 6,00,000; Opening Trade Receivables  Rs. 2,00,000; Closing Trade Receivables Rs. 6,00,000. Case 3: Cost of Revenue from Operations or Cost of Goods Sold Rs. 3,00,000; Gross Profit on Cost 25%; Cash Sales 20% of Total Sales; Opening Trade Receivables Rs. 50,000; Closing Trade Receivables Rs. 1,00,000. Case 4: Cost of Revenue from Operations or Cost of Goods Sold Rs. 4,50,000; Gross Profit on Sales 20%; Cash Sales 25% of Net Credit Sales, Opening Trade Receivables Rs. 90,000; Closing Trade Receivables Rs. 60,000.

From the following information, calculate Opening and Closing Trade Receivables, if Trade Receivables Turnover Ratio is 3 Times: (i) Cash Revenue from Operations is 1/3rd of Credit Revenue from Operations. (ii) Cost of Revenue from Operations is Rs. 3,00,000. (iii) Gross Profit is 25% of the Revenue from Operations. (iv) Trade Receivables at the end are 3 Times more than that of in the beginning. 

A limited company made Credit Sales of Rs. 4,00,000 during the financial period. If the collection period is 36 days and year is assumed to be 360 days, calculate: (i) Trade Receivables Turnover Ratio; (ii) Average Trade Receivables; (iii) Trade Receivables at the end when Trade Receivables at the end are more than that in the beginning by Rs. 6,000.

A firm normally has trade Receivables equal to two months' credit Sales. During the coming year it expects Credit Sales of Rs. 7,20,000 spread evenly over the year (12 months). What is the estimated amount of Trade Receivables at the end of the year?

Closing Trade Receivables Rs. 4,00,000; Cash Sales being 25% of Credit Sales; Excess of Closing Trade Receivables over Opening Trade Receivables Rs. 2,00,000; Revenue from Operations, i.e., Revenue from Operations, i.e., Net Sales Rs. 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.]

Closing Trade Receivables Rs. 1,20,000, Revenue from Operations Rs. 14,40,000. Provision for Doubtful Debts Rs. 20,000. Calculate Trade Receivables Turnover Ratio.

From the following particulars, determine Trade Receivables Turnover Ratio:

Rs. 1,75,000 is the Credit Revenue from Operations, i.e., Net Credit Sales of an enterprise. If Trade Receivables Turnover Ratio is 8 times, calculate Trade Receivables in the Beginning and at the end of the year. Trade Receivables at the end is Rs. 7,000 more than that in the beginning.

Compute Trade Receivables Turnover Ratio from the following:

Closing Trade Receivables Rs. 1,00,000; Cash Sales being 25% of Credit Sales; Excess of Closing Trade Receivables over Opening Trade Receivables Rs. 40,000; Revenue from Operations, i.e., Net Sales Rs. 6,00,000. Calculate Trade Receivables Turnover Ratio.

Calculate Trade Receivables Turnover Ratio from the following information:

Calculate Trade Receivables Turnover Ratio.

From the following Statement of Profit and Loss for the year ended 31st March, 2019 of Rex Ltd., calculate Inventory Turnover Ratio:

Calculate Inventory Turnover Ratio in each of the following alternative cases: Case 1: Cash Sales 25% of Credit Sales; Credit Sales Rs. 3,00,000; Gross Profit 20% on Revenue from Operations, i.e., Net Sales; Closing Inventory Rs. 1,60,000; Opening Inventory Rs. 40,000. Case 2:  Cash Sales 20% of Total Sales; Credit Sales Rs. 4,50,000; Gross Profit 25% on Cost; Opening Inventory Rs. 37,500; Closing Inventory Rs. 1,12,500.

From the following Information, calculate Inventory Turnover Ratio: Credit Revenue from Operations Rs. 3,00,000; Cash Revenue from Operations Rs. 1,00,000, Gross Profit 25% of Cost, Closing Inventory was 3 times the Opening Inventory. Opening Inventory was 10% of Cost of Revenue from Operations.

Rs. 3,00,000 is the Cost of Revenue from Operations (Cost of Goods Sold). Inventory Turnover Ratio 8 times; Inventory in the beginning is 2 times more than the inventory at the end. Calculate value of Opening and Closing Inventories

Inventory Turnover Ratio 5 times; Cost of Revenue from Operations (Cost of Goods Sold) Rs. 18,90,000. Calculate Opening Inventory and Closing Inventory if Inventory at the end is 2.5 times more than that in the beginning.

Following figures have been extracted from Shivalika Mills Ltd :- Inventory in the beginning of the year Rs. 60,000. Inventory at the end of the year Rs. 1,00,000.  Inventory Turnover Ratio 8 times. Selling price 25% above cost. Compute amount of Gross Profit and Revenue from Operations (Net Sales).

From the following information, determine Opening and Closing inventories: Inventory Turnover Ratio 5 Times, Total sales Rs. 2,00,000, Gross Profit Ratio 25%. Closing Inventory is more by Rs. 4,000 than the Opening Inventory.

From the following information, calculate value of Opening Inventory:

Calculate Inventory Turnover Ratio from the data given Below: 

Calculate Inventory Turnover Ratio from the following information: Opening Inventory Rs. 40,000; Purchases Rs. 3,20,000; and Closing Inventory Rs. 1,20,000. State, giving reason, which of the following transactions would (i) increase, (ii) decrease, (iii) neither increase nor decrease the Inventory Turnover Ratio: (a) Sale of goods for Rs. 40,000 (Cost Rs. 32,000). (b) increase in the value of Closing Inventory by Rs. 40,000. (c) Goods purchased for Rs. 80,000. (d) Purchases Return Rs. 20,000. (e) goods costing Rs. 10,000 withdrawn for personal use. (f) Goods costing Rs. 20,000 distributed as free samples.

Rs. 2,00,000 is the Cost of Revenue from Operations (Cost of Goods Sold), during the year. If Inventory Turnover Ratio is 8 times, calculate inventories at the end of the year. Inventories at the end is 1.5 times that of in the beginning.

From the following data, calculate Inventory Turnover Ratio: Total Sales Rs. 5,00,000; Sales Return Rs. 50,000; Gross Profit Rs. 90,000; Closing Inventory Rs. 1,00,000; Excess of Closing Inventory over Opening Inventory Rs. 20,000.

Revenue from Operations Rs. 4,00,000; Gross Profit Rs. 1,00,000; Closing Inventory Rs. 1,20,000; Excess of Closing Inventory over Opening Inventory Rs. 40,000. Calculate Inventory Turnover Ratio.

From the following information, calculate Inventory Turnover Ratio:

Calculate Inventory Turnover Ratio from the following:

Calculate Inventory Turnover Ratio from the following information: Opening Inventory is Rs. 50,000; Purchases Rs. 3,90,000; Revenue from Operations, i.e., Net Sales Rs. 6,00,000; Gross Profit Ratio 30%.

Cost of Revenue from Operations (Cost of Goods Sold) Rs. 5,00,000; Purchases Rs. 5,50,000; Opening Inventory Rs. 1,00,000. Calculate Inventory Turnover Ratio.

From the following details, calculate Inventory Turnover Ratio:

From the following information, calculate Interest Coverage Ratio:

If Profit before Interest and Tax is Rs. 5,00,000 and interest on Long-term Funds is Rs. 1,00,000, find Interest Coverage Ratio.

State with reason, whether the Proprietary Ratio will improve, decline or will not change because of the following transactions if Proprietary Ratio is 0.8: 1: (i) Obtained a loan of Rs. 5,00,000 from State Bank of India payable after five years. (ii) Purchased machinery of Rs. 2,00,000 by cheque. (iii) Redeemed 7% Redeemable Preference Shares Rs. 3,00,000. (iv) Issued equity shares to the vendor of building purchased for Rs. 7,00,000. (v) Redeemed 10% redeemable debentures of Rs. 6,00,000.

Calculate Proprietary Ratio from the following: 

From the following information, calculate Proprietary Ratio:

From the following information, calculate Proprietary Ratio:

From the following information, calculate Total Assets to Debt Ratio:

Total Debt Rs. 12,00,000; Shareholders' Funds Rs. 2,00,000; Reserves and Surplus Rs. 50,000; Current Assets Rs. 5,00,000; Working Capital Rs. 1,00,000. Calculate Total Assets to Debt Ratio.

Calculate Total Assets to Debt Ratio from the following information:

Total Debt Rs. 15,00,000; Current Liabilities Rs. 5,00,000; Capital Employed Rs. 15,00,000. Calculate Total Assets to Debt Ratio. 

Total Debt Rs. 60,00,000; Shareholders' Funds Rs. 10,00,000; Reserves and Surplus Rs. 2,50,000; Current Assets Rs. 25,00,000; Working Capital Rs. 5,00,000. Calculate Total Assets to Debt Ratio.

Shareholders' Funds  Rs. 1,60,000; Total Debts Rs. 3,60,000; Current Liabilities Rs. 40,000. Calculate Total Assets to Debt Ratio.

Calculate Total Assets to Debt Ratio from the following information: Long-term Debts Rs. 4,00,000; total Assets Rs. 7,70,000.

From the following Balance Sheet of ABC Ltd. as at 31st March, 2019, Calculate Debt to Equity Ratio:

Assuming That the Debt-to-Equity Ratio is 2 : 1, state giving reasons, which of the following transactions would (i) increase; (ii) Decrease; (iii) Not alter Debt to Equity Ratio: (i) Issue of new shares for cash. (ii) Conversion of debentures into equity shares (iii) Sale of a fixed asset at profit. (iv) Purchase of a fixed asset on long-term deferred payment basis. (v) Payment to creditors.

Debt to Equity Ratio of a company is 0.5:1. Which of the following suggestions would increase, decrease or not change it:

Calculate Debt to Equity Ratio from the following information:

Balance Sheet had the following amounts as at 31st March, 2019:

Capital Employed  Rs.8,00,000; Shareholders' Funds Rs. 2,00,000. Calculate Debt to Equity Ratio.

Total Assets Rs. 12,50,000; Total Debts Rs. 10,00,000; Current Liabilities Rs. 5,00,000. Calculate Debt to Equity Ratio.

From the following information, calculate Debt to Equity Ratio:

Total Assets Rs. 2,60,000; Total Debts Rs. 1,80,000; Current Liabilities Rs. 20,000. Calculate Debt to Equity Ratio. 

Calculate Debt to Equity Ratio: Equity Share Capital Rs. 5,00,000; General Reserve Rs. 90,000; Accumulated Profits Rs. 50,000; 10% Debentures Rs. 1,30,000; Current Liabilities Rs. 1,00,000.

From the following calculate: (i) Current Ratio; and (ii) Quick Ratio:

Following is the Balance Sheet of Crescent Chemical Works Limited as at 31st March, 2019:

Capital Employed Rs. 10,00,000; Fixed Assets Rs. 7,00,000; Current Liabilities Rs. 1,00,000. There are no Long-term Investments. Calculate Current Ratio.

X Y Z Limited's Inventory is Rs. 3,00,000. Total Liquid Assets are Rs. 12,00,000 and Quick Ratio is 2: 1. Work out Current Ratio.

The Quick Ratio of a company is 0.8: 1. State with reason, whether the following transactions will increase, decrease or not change the Quick Ratio: (i) Purchase of loose tools for Rs. 2,000; (ii) Insurance premium paid in advance Rs. 500; (iii) Sale of goods on credit Rs. 3,000; (iv) Honored a bills payable of Rs. 5,000 on maturity.

Quick Ratio of a company is 2: 1. State giving reasons, which of the following transactions would (i) improve, (ii) reduce, (iii) Not change the Quick Ratio: (a) Purchase of goods for cash; (b) Purchase of goods on credit; (c) Sale of goods (costing Rs. 10,000) for Rs. 10,000; (d) Sale of goods (costing Rs. 10,000) for Rs. 11,000; (e) Cash received from Trade Receivables.

Current Assets of a company is are Rs. 5,00,000. Its Current Ratio is 2.5 : 1 and Quick Ratio is 1: 1. Calculate value of Current Liabilities, Liquid Assets and Inventory.

A Ltd.'s Liquidity Ratio is 2.5: 1. Inventory is Rs. 6,00,000. Current Ratio is 4: 1. Find out the Current Liabilities.

Current Liabilities of a company are Rs. 1,50,000. Its Current Ratio is 3 : 1 and Acid Test Ratio (Liquid Ratio) is 1 : 1. Calculate values of Current Assets, Liquid Assets and Inventory.

Current Ratio 4; Liquid Ratio 2.5; Inventory Rs. 6,00,000. Calculate Current Liabilities, Current Assets and Liquid Assets.

X Ltd. has Current Ratio of 4.5 : 1 and a Quick Ratio of 3 : 1. If its inventory is Rs. 36,000, find out its total Current Assets and total Current Liabilities.

X Ltd. has a Current Ratio of 3.5: 1 and Quick Ratio of 2: 1. If the Inventories is Rs. 24,000; calculate total Current Liabilities and Current Assets.

Current Liabilities of a company are Rs. 6,00,000. Its Current Ratio is 3: 1 and Liquid Ratio is 1: 1. Calculate value of Inventory

Current Assets Rs. 3,00,000; Inventories Rs. 60,000; Working Capital Rs. 2,52,000. Calculate Quick Ratio.

Quick Assets  Rs. 1,50,000; Inventory (Stock) Rs. 40,000; Prepaid Expenses Rs. 10,000; Working Capital Rs. 1,20,000. Calculate Current Ratio.

From the following information, calculate Liquid Ratio:

State giving reasons, which of the following transactions would improve, reduce or not change the Current Ratio, if Current Ratio of a company is (i) 1: 1; or (ii) 0.8: 1(a) Cash paid to Trade Payables.(b) Purchase of Stock-in-Trade on credit.(c) Purchase of Stock-in-Trade for cash.(d) Payment of Dividend payable.(e) Bills Payable discharged.(f) Bills Receivable endorsed to a Creditor.(g) Bills Receivable endorsed to a Creditor dishonoured.

State giving reason, whether the Current Ratio will improve or decline or will have no effect in each of the following transactions if Current Ratio is 2: 1 (a) Cash paid to Trade Payables. (b) Bills Payable discharged. (c) Bills Receivable endorsed to a creditor. (d) Payment of final Dividend already declared. (e) Purchase of Stock-in-Trade on credit. (f) Bills Receivable endorsed to a Creditor dishonored. (g) Purchases of Stock-in-Trade for cash. (h) Sale of Fixed Assets (Book Value of Rs. 50,000) for Rs. 45,000. (i) Sale of Fixed Assets (Book Value of Rs. 50,000) for Rs. 60,000.

A firm had Current Assets of Rs. 5,00,000. It paid Current Liabilities of Rs. 1,00,000 and the Current Ratio became 2: 1. Determine Current Liabilities and Working Capital before and after the payment was made.

Ratio of Current Assets (Rs. 8,75,000) to Current Liabilities (Rs. 3,50,000) is 2.5: 1. The firm wants to maintain Current Ratio of 2: 1 by purchasing goods on credit. Compute amount of goods that should be purchased on credit.

Ratio of Current Assets (Rs. 3,00,000) to Current Liabilities (Rs. 2,00,000) is 1.5: 1. The accountant of the firm interested is maintain in  a Current Ratio of 2: 1 by paying off a part of the Current Liabilities. Compute amount of the Current Liabilities that should be paid so that the Current Ratio at the level of 2: 1 may be maintained.

Current Liabilities of a company were Rs. 1,75,000 and its Current Ratio was 2: 1. It paid Rs. 30,000 to a Creditor. Calculate Current Ratio after payment.

A company had Current Assets of Rs. 4,50,000 and Current Liabilities of Rs. 2,00,000. Afterwards it purchased goods for Rs. 30,000 on credit. Calculate Current Ratio after the purchase