Q1
mcq
A, B, C are partners sharing profits and losses in the ratio of 4 : 2 : 3. ‘A’ retires. The new profit sharing ratio between B and C will be :
- A. 2 : 3
- B. 4 : 2
- C. 2 : 1
- D. 3 : 2
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Q2
mcq
As per the Indian Partnership Act, 1932, the rate of interest allowed on loans advanced by partners is :
- A. 5% per annum
- B. 8% per annum
- C. 6% per annum
- D. 12% per annum
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Q3
mcq
The amount of Capital of the proprietor, if his Assets are ` 5,00,000 and Liabilities are ` 2,00,000 :
- A. ` 7,00,000
- B. ` 5,00,000
- C. ` 3,00,000
- D. ` 2,00,000
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Q4
mcq
The term “fund” refers to :
- A. Fixed Assets
- B. Current Liabilities
- C. Non-current Assets
- D. Working Capital
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Q5
mcq
Which of the following statement is true ?
- A. Goodwill is a fictitious asset
- B. Goodwill is an intangible asset
- C. Goodwill cannot be acquired
- D. Goodwill is a current asset
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Q6
mcq
In a Common-size Balance Sheet, if the percentage of n on-current Asset is 85, what would be the percentage of Current Assets ?
- A. 15
- B. 185
- C. 100
- D. 115
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Q7
mcq
Cost of Revenue from operations ` 3,00,000; Inventory in the beginning of the year ` 60,000; Inventory at the close of the year ` 40,000. Inventory turnover ratio is :
- A. 6 times
- B. 2 times
- C. 8 times
- D. 3 times
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Q8
mcq
After the Forfeited shares are Reissued, the balanc e in the Forfeited shares account should be transferred to :
- A. Securities Premium account
- B. General Reserve account
- C. Surplus account
- D. Capital Reserve account
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Q9
mcq
Function key F11 is used for :
- A. Company Configuration
- B. Company Features
- C. Statutory and Taxation features
- D. Accounting Vouchers
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Q10
mcq
On retirement of a partner, General Reserve is transferred to the :
- A. Capital account of the continuing partners
- B. Capital account of all the partners
- C. Memorandum Revaluation account
- D. Revaluation account
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Q11
mcq
There are 300 members in a club each paying ` 100 as annual subscription. Subscription due but not received for the Current Year is ` 200. Subscription received in advance is ` 300. Find out the amount of subscription to be shown in the Income and Expenditure account.
- A. ` 29,900
- B. ` 30,000
- C. ` 30,100
- D. ` 30,700
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Q12
mcq
Debt Equity ratio is a measure of :
- A. Profitability
- B. Short term solvency
- C. Efficiency
- D. Long term solvency
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Q13
mcq
Contra Voucher is used for :
- A. Reports
- B. Master entry
- C. Credit purchase of assets
- D. Withdrawal of cash from bank for office use
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Q14
mcq
On Revaluation, the increase in the value of assets leads to :
- A. Loss
- B. Expense
- C. Gain
- D. None of these
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Q15
mcq
The Excess of Assets over Capital is :
- A. Liabilities
- B. Loss
- C. Profit
- D. Cash
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Q16
mcq
Find the odd one out from the following.
- A. Audit fees
- B. Electricity charges
- C. Life membership fees
- D. Telephone charges
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Q17
mcq
If the final amount due to a retiring partner is not paid immediately, it is transferred to :
- A. Retiring partner’s Loan A/c
- B. Bank A/c
- C. Other partners’ Capital A/c
- D. Retiring partner’s Capital A/c
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Q18
mcq
At the time of admission, the goodwill brought by the new partner may be credited to the Capital accounts of :
- A. the new partner
- B. all the partners
- C. the sacrificing partners
- D. the old partners
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Q19
mcq
Which of the following is shown in Profit and Loss Appropriation account ?
- A. Partner’s salary
- B. Office expenses
- C. Interest on bank loan
- D. Salary of staff
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Q20
mcq
When the average profit is ` 50,000 and the normal profit is ` 40,000, Super Profit is :
- A. ` 10,000
- B. ` 25,000
- C. ` 15,000
- D. ` 5,000
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Q21
short answer
State the accounts generally maintained by a small sized sole trader when double entry accounting system is not followed.
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Q22
short answer
Give four examples for revenue expenditure of not-for-profit organisation.
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Q23
short answer
State any two circumstances under which goodwill of a partnership firm is valued.
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Q24
short answer
Give the journal entry to be passed to transfer the amount due to the deceased partner to the executor of the deceased partner.
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Q28
short answer
From the following particulars ascertain profit or loss.
Particulars `
Capital as on 1st January 2021 2,60,000
Capital as on 31st December 2021 3,60,000
Additional Capital introduced during the year 20,000
Drawings made during the year 50,000
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Q29
short answer
Ram and Shyam are partners. Ram withdraws ` 12,000 at the beginning of each half year. Interest on drawings is chargeable @10% p.a. Calculate interest on drawings for the year ending 31st December 2021 using average period method.
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Q30
short answer
Value of the goodwill of Arul Enterprises is ` 1,20,000, Average profit is ` 40,000. Calculate the number of years of purchase.
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Q31
short answer
What are the differences between double entry system and incomplete records ?
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Q32
short answer
Classify the following expenditure of not-for-profit organisation as Capital or Revenue. (i)Honorarium (ii)Purchase of sports equipment (iii)Purchase of books for library
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Q33
short answer
Antony and Akbar were partners who shared profits and losses in the ratio of 3 : 2. Balance in their Capital account on 1st January 2018 was, Antony ` 60,000 and Akbar ` 40,000. On 1st April 2018 Antony introduced additional capital of ` 10,000. Akbar introduced additional capital of ` 5,000 during the year. Calculate interest on capital at 6% p.a. for the year ending 31st December 2018.
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Q34
short answer
State any six factors determining Goodwill.
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Q35
short answer
Sam and Jose are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1st April 2018, they admitted Joel as a partner. On the date of Joel’s admission, goodwill appeared in the books of the firm as ` 20,000. Assuming that the accounts are maintained on Fluctuating Capital method, pass the necessary journal entries if the partners decided to : (a)Write off the entire amount of existing goodwill. (b)Write off ` 10,000 of the existing goodwill.
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Q37
short answer
From the following particulars of Kumar Ltd., prepare a Common-size income statement for the year ended 31st March 2018.
Particulars 2017-18 `
Revenue from operations 5,00,000
Other income 20,000
Expenses 3,00,000
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Q38
short answer
Vivin, Hari and Joy are partners sharing profits and losses equally. On 31-3-2017 Hari retired. On the date of retirement, the books of the firm showed a general reserve of ` 60,000. Pass the journal entries to transfer the general reserve.
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Q39
short answer
Mention the commonly used Voucher types in Tally ERP 9.
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Q40
short answer
Inventory and Prepaid expenses are not considered as Liquid Assets - State reasons.
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Q41
long answer
From the following particulars, calculate total sales. Particulars ` Particulars ` Debtors on 1st April 2018 2,50,000 Bills receivable dishonoured 15,000 Bills receivable on 1st April 2018 60,000 Returns inward 50,000 Cash received from debtors 7,25,000 Bills receivable on 31st March 2019 90,000 Cash received for bills receivable 1,60,000 Sundry debtors on 31st March, 2019 2,40,000 Bad debts 30,000 Cash sales 3,15,000
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Q42
long answer
Explain any five applications of computerised accounting system.
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Q43
long answer
From the following particulars of Trichy Educational Society, prepare Receipts and Payments account for the year ended 31st December, 2018. Particulars ` Particulars ` Opening cash balance as on (1.1.2018) 20,000 Locker rent received 12,000 Investments made 80,000 Sale of furniture 5,000 Honorarium paid 3,000 General expenses 7,000 Donation received 80,000 Postage 1,000 Audit fees paid 2,000 Subscription received 10,000
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Q44
long answer
Rajan Ltd., purchased machinery of ` 6,00,000 from Jegan Traders. It issued equity shares of ` 10 each fully paid in satisfaction of their claim. What entries will be made if such issue is made ? (i)at par (ii)at a premium of 50%
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Q45
long answer
From the following Receipts and Payments account of Trichy Recreation club, prepare Income and Expenditure account for the year ended 31.03.2018. Receipts ` Payments ` To opening balance cash in hand 11,000 By furniture purchased 10,000 By Rent 2,800 To Dividend received 27,600 By Secretary's honorarium 15,000 To Sale of old newspapers 3,000 By postage 1,700 To Members' subscription 31,000 By General expenses 4, 350 To Locker rent 8,000 By Printing and Stationery 45,000 To Interest on investment 1,250 By Audit fees 5,000 To Sale of furniture (Book value ` 4,400) 5,000 By Closing balance Cash in hand 3,000 86,850 86,850
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Q46
long answer
From the following particulars, prepare comparative statement of financial position of Kala Ltd. 31st March, 2017 31st March, 2018 ` ` I. EQUITY AND LIABILITIES 1. Shareholders' Fund (a) Share Capital 3,00,000 3,60,000 (b) Reserves and Surplus 50,000 50,000 2. Non-current liabilities Long-term borrowings 50,000 40,000 3. Current liabilities Trade payables 20,000 12,000 Total 4,20,000 4,62,000 II. ASSETS 1. Non-current assets (a) Fixed assets 2,50,000 2,90,000 (b) Non-current investments 50,000 40,000 2. Current assets Inventories 80,000 1,00,000 Cash
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Q47
long answer
Naresh, Mani and Muthu are partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. On 31st March 2019, Muthu retires from the firm. On the date of Muthu’s retirement, goodwill appeared in the books of the firm at ` 40,000. By assuming fluctuating capital method, pass the necessary journal entries if the partners decide to : (i)Write off the entire amount of existing goodwill. (ii)Write off half of the amount of existing goodwill.
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Q48
long answer
Calculate trend percentages from the following particulars of Kurinji Ltd. 2015-16, 2016-17, 2017-18. Revenue from operations: 120, 132, 156. Other income: 50, 38, 65. Expenses: 100, 135, 123.
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Q49
long answer
State the differences between Fixed Capital method and Fluctuating Capital method.
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Q50
long answer
From the following information relating to Arul Enterprises, calculate the value of goodwill on the basis of 2 years purchase of the average profits of 3 years. (i)Profits for the years ending 31st December 2016, 2017 and 2018 were ` 46,000, ` 44,000 and ` 50,000 respectively. (ii)A non-recurring income of ` 5,000 is included in the profits of the year 2016. (iii)The closing stock of the year 2017 was overvalued by ` 10,000.
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Q51
long answer
Progress Ltd., issued 30,000 ordinary shares of ` 10 each, payable ` 2 on application, ` 4 on allotment, ` 2 on first call and ` 2 on second and final call. All the shares are subscribed and amount was duly received. Pass journal entries.
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Following is the Balance Sheet of Magesh Ltd., as on 31st March 2019. Particulars ` I. EQUITY AND LIABILITIES 1. Shareholder's fund Equity share capital 20,00,000 2. Non-current liabilities Long term borrowings 5,00,000 3. Current liabilities (a) Short-term borrowings 1,70,000 (b) Trade payable 2,50,000 (c) Other current liabilities Expenses payable 30,000 (d) Short-term Provisions 50,000 Total 30,00,000 II. ASSETS 1. Non-current assets Fixed assets (a) Tangible assets 15,00,000 2. Current assets (a) Inventories 4,50,000 (b) Trade receivable 7,00,000 (c) Cash and Cash equivalents 3,00,000 (d) Other current assets Prepaid expenses 50,000 Total 30,00,000
Q52
short answer
Calculate: Current ratio. Refer to the balance sheet data for Magesh Ltd as on 31st March 2019: Equity Share Capital: 20,00,000; Long term borrowings: 5,00,000; Short-term borrowings: 1,70,000; Trade payable: 2,50,000; Expenses payable: 30,000; Short-term Provisions: 50,000; Tangible assets: 15,00,000; Inventories: 4,50,000; Trade receivable: 7,00,000; Cash and Cash equivalents: 3,00,000; Prepaid expenses: 50,000.
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