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  • Question 1

    Give any one purpose for which the amount received as 'Securities Premium' may be utilised.

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  • Question 2

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

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  • Question 3

    What is the maximum amount of discount at which forfeited shares can be re-issued ?

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  • Question 5

    Distinguish between 'Dissolution of Partnership' and Dissolution of Partnership Firm' on the basis of closure of books.

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  • Question 6

    X, Y and Z are partners sharing profits in the ratio of 12,25 and 110. Find the new ratio of remaining partners if Z retires.

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  • Question 7

    What is meant by 'Reconstitution of a Partnership Firm' ?

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  • Question 8

    BG. Ltd. issued 2,000, 12% debentures of Rs 100 each on 1st April 2012. The issue was fully subscribed. According to the terms of issue, interest on the debentures is payable half-yearly on 30th September and 31st March and the tax deducted at source is 10%. Pass necessary journal entries related to the debenture interest for the half-yearly ending 31st March, 2013 and transfer of interest on debentures of the year to the Statement of Profit & Loss.

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  • Question 9

    Saloni and Shrishti were partners in a firm sharing profits in the ratio of 7 : 3. Their capitals were Rs 2,00,000 and Rs 1,50,000 respectively. They admitted Aditi on 1st April, 2013 as a new partner for 1th6share in future profits. Aditi brought Rs 1,00,000 as her capital. Calculate the value of goodwill of the firm and record necessary journal entries for the above transaction on Aditi's admission.

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  • Question 10

    Pass necessary journal entries in the following cases :
    (i) Pharma Ltd. redeemed 2,500, 12% debentures of Rs 100 each issued at a discount of 6% by converting them into equity shares of Rs 100 each issued at a premium of 25%.
    (ii) Jain Ltd. converted 2,000, 12% debentures of Rs 100 each issued at par into equity shares of Rs 100 each issued at a premium of 25%.

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  • Question 11

    Pass necessary journal entries for the following transactions in the books of Rajan Ltd :
    (a) Rajan Ltd. purchased machinery of Rs 7,20,000 from Kundan Ltd. The payment was made to Kundan Ltd. by issue of equity shares of Rs 100 each at 10% discount.

    (b) Rajan Ltd purchased a running business from Vikas Ltd. for a sum of Rs 2,50,000 payable as Rs 2,20,000 in fully paid equity shares of Rs 10 each and balance by a bank draft. The assets and liabilities consisted of the following :
    Plant & Machinery Rs 90,000; Building Rs 90,000; Sundry Debtors Rs 30,000; Stock Rs 50,000; Cash Rs 20,000; Sundry Creditors Rs 20,000.

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  • Question 12

    Satnam and Qureshi after doing their MBA decided to start a partnership firm to manufacture ISI marked electronic goods for economically weaker section of the society. Satnam also expressed his willingness to admit Juliee as partner without capital who is specially abled but a very creative and intelligent friend of him. Qureshi agreed to this. They formed a partnership on 1st April 2012 on the following terms :
    (i) Satnam will contribute Rs 4,00,000 and Qureshi will contribute Rs 2,00,000 as capitals.
    (ii) Satnam, Qureshi and Juliee will share profits in the ratio of 2 : 2 : 1.
    (iii) Interest on capital will be allowed @ 6% p.a.
    Due to shortage of capital Satnam contributed Rs 50,000 on 30th September, 2012 and Qureshi contributed Rs 20,000 on 1st January, 2013 as additional capitals. The profit of the firm for the year ended 31st March, 2013 was Rs 3,37,800.
    (a) Identify any two values which the firm wants to communicate to the society.
    (b) Prepare Profit & Loss Appropriation Account for the year ending 31st March, 2013.

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  • Question 13

    Virad, Vishad and Roma were partners in a firm sharing profits in the ratio of 5 : 3 : 2 respectively. On March 31, 2013, their Balance Sheet was as under:
     

    Balance Sheet of Virad, Vishad and Roma as on March 31, 2013

    Liabilities

    Amount

    Rs

    Assets

    Amount

     Rs

    Capitals :

     

    Buildings

    2,00,000

    Virad

    3,00,000

     

    Machinery

    3,00,000

    Vishad

    2,50,000

     

    Patents

    1,10,000

    Roma

    1,50,000

    7,00,000

    Stock

    1,00,000

    Reserve Fund

    60,000

    Debtors

    80,000

    Creditors

    1,10,000

    Cash

    80,000

     

    8,70,000

     

    8,70,000

     

     

     

     


    Virad died on October 1, 2013. It was agreed between his executors and the remaining partner's that:

    (a) Goodwill of the firm be valued at 212years purchase of average profits for the last three years. The average profits were Rs 1,50,000.
    (b) Interest on capital be provided at 10% p.a.
    (c) Profit for the year 2013−14 be taken as having accrued at the same rate as that of the previous year which was Rs 1,50,000.
    Prepare Virad's Capital Account to be presented to his Executors as on October 1, 2013.

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  • Question 14

    On 1st April, 2012, Janta Ltd. Was formed with an authorized capital of Rs 50,00,000 divided into 1,00,000 equity shares of Rs 50 each. The company issued prospectus inviting applications for 90,000 shares. The issue price was payable as under:
    On Application: Rs 15
    On Allotment : Rs 20
    On Call : Balance amount
    The issue was fully subscribed and the company allotted shares to all the applicants. The company did not make the call during the year.
    Show the following:
    (a) Share capital in the Balance Sheet of the company as per revised Schedule-VI, Part-I of the Companies Act, 1956.
    (b) Also prepare 'Notes to Accounts' for the same.

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  • Question 15

    Abdul, Kadir and Kasim were partners in a firm supplying food items. They were sharing profits in the ratio of 5 : 3 : 2. Their capitals on 1st April, 2010 were Rs 1,00,000, Rs 1,50,000 and Rs 3,00,000 respectively. After the floods in Uttaranchal, all partners decide to personally help the flood victims.

    For this Abdul withdrew Rs 20,000 from the firm on 1st September, 2012, Kadir instead of withdrawing cash from the firm took some food items amounting to Rs 24,000 from the firm and distributed to the flood victims. On the other hand, Kasim withdrew Rs 1,00,000 from his capital on 1st January, 2013 and provided a Mobile Medical Van for medical facilities in the flood affected area.

    The partnership deep provides for charging interest on drawings @ 6% p.a. After the Final Accounts were prepared, it was discovered that interest on drawings had not been charged.

    Give the necessary adjusting journal entry and show the working notes clearly. Also state any two values that the partners wanted to communicate to the society.

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  • Question 16

    Jayant and Ramakant were partners in a firm. On 31st March, 2013 their Balance Sheet was as follows:
     

    Balance Sheet of Jayant and Ramakant as on 31st March, 2013

    Liabilities

    Amount

    Rs

    Assets

    Amount

     Rs

    Creditors

    75,0000

    Bank

    70,000

    Workman Compensation Fund

    45,000

    Debtors

    2,00,000

    Jayant’s Current Account

    15,000

    Stock

    20,000

    Capital’s :

     

    Furniture

    20,000

    Jayant

    3,00,000

    Machinery

    3,12,000

    Ramakant

    2,00,000

    Ramakant’s Current Account

    13,000

     

    6,35,000

     

    6,35,000

     

     

     

     


    On the above date the firm was dissolved:
    (i) Jayant took over 40% of stock at 20% less than its book value and the remaining stock was sold for Rs 15,000. Furniture realized Rs 20,000.
    (ii) An unrecorded asset was sold for Rs 3,000. Machinery was sold at a loss of Rs 75,000.
    (iii) Debtors were realized at a discount of Rs 10,000.
    (iv) There was an outstanding bill for repairs for which Rs 38,000 were paid.
    Prepare Realisation Account.

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  • Question 17

    XYZ Ltd. invited applications for 40,000 equity shares of Rs 100 each at a discount of 6%. The amount was payable as follows:
    On Application and Allotment − Rs 90 per share
    On First and Final call − the balance amount.
    Application for 60,000 shares were received. Applications for 10,000 shares were rejected and shares were allotted on pro-rata basis to remaining applicants. Excess application money received on application and allotment was adjusted towards sums due on first and final call. The calls were made. A shareholder, who applied for 50 share, failed to pay the first and final call money. His shares were forfeited. All the forfeited shares were re-issued at Rs 97 per share fully paid up.
    Pass necessary journal entries for the above transactions in the books of XYZ Ltd.
     

    OR


    AB Ltd. invited applications for issuing 75,000 equity shares of Rs 100 each at a premium of Rs 30 per share. The amount way payable as follows:
    On Application and Allotment − Rs 85 per share (including premium)
    On First and Final call − the balance Amount
    Applications for 1,27,500 shares were received. Applications for 27,500 shares were rejected and share were allotted on pro-rata basis to the remaining applicants. Excess money received on application and allotment was adjusted towards sums due to first and final call. The calls were made. A shareholder, who applied for 1,000 shares, failed to pay the first and final call money. His shares were forfeited. All the forfeited shares were reissued at Rs 150 per share fully paid up.
    Pass necessary journal entries for the above transactions in the books of AB Ltd.

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  • Question 18

    Mohan and Mahesh were partners in a firm sharing profits in the ratio of 3 : 2. On 1st April, 2012 they admitted Nusrat as a partner in the firm. The Balance Sheet of Mohan and Mahesh on that date was as under :
     

    Balance Sheet of Mohan and Mahesh as on 1st April, 2012

    Liabilities

    Amount

    Rs

    Assets

    Amount

    Rs

    Creditors

    2,10,000

    Cash in hand

    1,40,000

    Workmen's Compensation Fund

    2,50,000

    Debtors

    1,60,000

    General Reserve

    1,60,000

    Stock

    1,20,000

    Capitals:

     

    Machinery

    1,00,000

    Mohan

    1,00,000

     

    Building

    2,80,000

    Mahesh

    80,000

    1,80,000

     

     

     

    8,00,000

     

    8,00,000

     

     

     

     


    It was agreed that:

    (i) The value of Building and Stock be appreciated to Rs 3,80,000 and Rs 1,60,000 respectively.
    (ii)The liabilities of workmen's compensation fund was determined at Rs 2,30,000.
    (iii) Nusrat brought in her share of goodwill Rs 1,00,000 in cash.
    (iv) Nusrat was to bring further cash as would make her capital equal to 20% of the combined capital of Mohan and Mahesh after above revaluation and adjustments are carried out.
    (v) The future profit sharing ratio will be Mohan 2th5, Mahesh 2th5, Nusrat 1th5.


    Prepare Revaluation Account, Partner's Capital Accounts and Balance Sheet of the new firm. Also show clearly the calculation of Capital brough by Nusrat.
     

    OR


    Kushal Kumar and Kavita were partners in a firm sharing profits in the ratio of 3 : 1 : 1.
    On 1st April, 2012 their Balance Sheet was as follows :
     

    Balance Sheet of Kushal, Kumar and Kavita as on 1st April, 2012

    Liabilities

    Amount

    Rs

    Assets

    Amount

    Rs

    Creditors

    1,20,000

    Cash

    70,000

    Bills Payable

    1,80,000

    Debtors

    2,00,000

     

    General Reserve

    1,20,000

    Less: Provision

    10,000

    1,90,000

    Capitals:

     

    Stock

    2,20,000

    Kushal

    3,00,000

     

    Furniture

    1,20,000

    Kumar

    2,80,000

     

    Building

    3,00,000

    Kavita

    3,00,000

    8,80,000

    Land

    4,00,000

     

    13,00,000

     

    13,00,000

     

     

     

     


    On the above date Kavita retired and the following was agreed :

    (i) Goodwill of the firm was valued at Rs 40,000.
    (ii) Land was to be appreciated by 30% and building was to be depreciated by Rs 1,00,000.
    (iii) Value of furniture was to be reduced by Rs 20,000.
    (iv) Bad debts reserve is to be increased to Rs 15,000.
    (v) 10% of the amount payable to Kavita was paid in cash and the balance was transferred to her Loan Account.
    (vi) Capitals of Kushal and Kumar will be in proportion to their new profit sharing ratio. The surplus/deficit, if any in their Capital Accounts will be adjusted through Current Accounts.


    Prepare Revaluation Account, Partner's Capital Accounts and Balance Sheet of Kushal and Kumar after Kavita's retirement.

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  • Question 19

    State any one limitation of 'Analysis of Financial Statements'.

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  • Question 20

    What is meant by 'Cash Equivalents' while preparing Cash Flow Statement?

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  • Question 21
    State the objective of preparing 'Cash Flow Statement'. VIEW SOLUTION
  • Question 22

    Under which major sub-headings the following items will be placed in the Balance Sheet of a company as per revised Schedule-VI, Part-I of the Companies Act, 1956:
    (i) Accrued Incomes
    (ii) Loose Tools
    (iii) Provision for employees benefits
    (iv) Unpaid dividend
    (v) Short-term loans
    (vi) Long-term loans.

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  • Question 23

    From the following 'Statement of Profit & Loss' for the year ended 31st March, 2013, prepare a 'Comparative Statement of Profit & Loss' of Vidya Ltd.

    Particulars Note No. 2012-2013
    Rs
    2011-2012
    Rs
    Revenue from operations
    Other Incomes
    Expenses
      14,00,000
      4,00,000
    11,00,000
    11,00,000
      3,00,000
    12,00,000

    Rate of income tax was 50%.

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  • Question 24

    (a) From the following information, compute Debt-Equity Ratio:

      Rs
    Long Term Borrowings 4,00,000
    Long Term Provisions 2,00,000
    Current Liabilities 1,00,000
    Non-current-Assets 7,20,000
    Current-Assets 1,80,000


    (b) The current ratio of Y Ltd. is 2 : 1. State with reason which of the following transactions would (i) increase; (ii) decrease or (iii) not change the ratio.
    (1) Trade receivables included debtors of Rs 40,000 which were received.
    (2) Company purchased furniture of Rs 45,000. The vendor was paid by issue of equity shares of Rs 10 each at par.

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  • Question 25

    Prepare a Cash Flow Statement on the basis of the information given in the Balance Sheets of Liva Ltd. as at 31-3-2013 and 31-3-2012 :
     

    Particulars

    Note

    No.

    31-3-2013

    Rs

    31-3-2012

    Rs

    I. Equity and Liabilities

    (1) Shareholders Funds

     

     

     

    (a) Share Capital

     

    2,10,000

    1,80,000

    (b) Reserves & Surplus

     

    1,32,000

    24,000

    (2) Non-current Liabilities

    1

     

     

    (a) Long term-borrowings

     

    1,50,000

    1,50,000

    (3) Current Liabilities

     

     

     

    (a) Trade Payables

     

    75,000

    27,000

    Total

     

    5,67,000

    3,81,000

     

     

     

     

    II. Assets

    (1) Non-current Assets

     

     

     

    (a) Fixed Assets

     

     

     

    (i) Tangible Assets

     

    2,94,000

    2,52,000

    (b) Non-current Investments

     

    48,000

    18,000

    (2) Current Assets

     

     

     

    (a) Current-Investments (marketable)

     

    54,000

    60,000

    (b) Inventories

     

    1,07,000

    24,000

    (c) Trade Receivables

     

    40,000

    17,500

    (d) Cash and Cash-equivalents

     

    24,000

    9,500

    Total

     

    5,67,000

    3,81,000

     

     

     

     


    Notes to Accounts :
    Note − 1

    Particulars 2013
    Rs
    2012
    Rs
    Reserves and Surplus
    Surplus (balance in statement of profit and loss)
    1,32,000 24,000
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