Q2
mcq
1 mark
Rani, Maharani and Laxmi were partners in a firm sharing profits and losses in the ratio of 3 : 3 : 2. On 1st April, 2024 they admitted Reena as a new partner for th share in the profits of the firm. Reena acquired her share from Rani and Maharani in the ratio of 3 : 2. The new profit sharing ratio between Rani, Maharani, Laxmi and Reena will be : 1
- A. 51 : 59 : 40 : 50
- B. 51 : 59 : 50 : 40
- C. 59 : 51 : 50 : 40
- D. 40 : 51 : 59 : 50
Solution hidden
Log in to view solution →
Q2
mcq
1 mark
Ravita, Savita, Kavita and Babita were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2 : 2. On 1st April, 2024 Savita retired and her share was acquired equally by the remaining partners. The new profit sharing ratio between Ravita, Kavita and Babita will be : 1
- A. 2 : 1 : 1
- B. 1 : 2 : 1
- C. 1 : 1 : 2
- D. 3 : 3 : 2
Solution hidden
Log in to view solution →
Q3
mcq
1 mark
On dissolution of a firm, there was an unrecorded asset of 15,000 which was taken over by a partner at 13,000. Partner should be debited by : 1
- A. 15,000
- B. 28,000
- C. 2,000
- D. 13,000
Solution hidden
Log in to view solution →
Q4
mcq
1 mark
Sun and Moon were partners in a firm sharing profits and losses equally. Their fixed capitals were 5,00,000 each. After the accounts for the year ended 31st March, 2024 were prepared, it was discovered that interest on capital was not provided in the partnership deed. The rectifying adjustment entry for the same will be : 1
- A. No Entry
- B. Current A/c Dr. 50,000 Current A/c 50,000
- C. Moon Current A/c Dr. 50,000 To Sun Current A/c 50,000
- D. Current A/c Dr. 50,000 Current A/c Dr. 50,000 To Profit and Loss Appropriation A/c 1,00,000
Solution hidden
Log in to view solution →
Q5
mcq
1 mark
John and Harry were partners in a firm sharing profits and losses in the ratio of 2 : 1. On 1st April, 2023, they admitted Dinesh as a new partner for th share in the profits of the firm with a guarantee that his share in the profits shall be at least 1,00,000. The net profit of the firm for the year ended 31st March, 2024 was 2,80,000. The share of profit to be distributed among John and Harry in the profits of the firm after giving the guaranteed amount of profit to Dinesh will be : 1
- A. 1,40,000
- B. 1,20,000
- C. 1,00,000
- D. 70,000
Solution hidden
Log in to view solution →
Q6
mcq
1 mark
Jeeta Ltd. forfeited 300 shares of 100 each for the non-payment of final call of 10 per share. The amount credited to share forfeiture account will be : 1
- A. 30,000
- B. 27,000
- C. 9,000
- D. 3,000
Solution hidden
Log in to view solution →
Q6
mcq
1 mark
Meeta Ltd. invited applications for issuing 30,000 equity shares of 10 each. Applications for 29,500 shares were received. Allotment was made in full. A shareholder holding 100 shares failed to pay the first call of 2 per share. His shares were forfeited. The second call of 3 per share was not yet made. The amount debited to share capital account, on the forfeiture of shares will be : 1
- A. 3,00,000
- B. 2,95,000
- C. 700
- D. 300
Solution hidden
Log in to view solution →
Q7
mcq
1 mark
The debentures that can be transferred by way of delivery and the company does not keep any record of the debentures holders are called : 1
- A. Redeemable debentures
- B. Convertible debentures
- C. Zero Coupon Rate debentures
- D. Bearer debentures
Solution hidden
Log in to view solution →
Q8
mcq
1 mark
Sudha, a partner withdrew 12,000 on 31st October, 2023 for her personal use. Interest on drawings is charged @ 6% p.a. The interest on drawings upto 31st March, 2024 will be : 1
- A. 300
- B. 30
- C. 3,000
- D. 150
Solution hidden
Log in to view solution →
Q8
mcq
1 mark
The partnership deed should be prepared as per the provisions of which of the following Acts ? 1
- A. The Companies Act, 2013
- B. The Indian Partnership Act, 1932
- C. The Indian Stamp Act
- D. The Cooperative Societies Act
Solution hidden
Log in to view solution →
Q9
mcq
1 mark
Manoj, Dilip and Rajinder were partners in a firm sharing profits and losses in the ratio of 7 : 3 : 5. Their fixed capitals were 10,00,000, 8,00,000 and 6,00,000, respectively. The partnership deed provided for
- B. Profit and Loss Appropriation Account
- C. Interest on Drawings Account
- D. Profit and Loss Account
Solution hidden
Log in to view solution →
Q10
short answer
On the dissolution of the partnership firm of Raman, Hari and Suresh, realisation expenses 17,000 were paid by a debtor of 75,000 on behalf of the firm. The remaining amount was received from him along with interest of 2,000 for delayed payment. Realisation ...
Solution hidden
Log in to view solution →
Q11
mcq
1 mark
Paratigm Ltd. issued 40,000, 11% debentures of 100 each at a discount 4,00,000. The amount of premium on redemption of debentures was :
- A. 4,00,000
- B. 2,00,000
- C. 4,40,000
- D. 20,000
Solution hidden
Log in to view solution →
Q12
mcq
1 mark
On 1st April, 2023, Viya Ltd. issued 20,000, 10% debentures of 100 each at a premium of 10%. The total amount of interest on debentures for the year ended 31st March, 2024 will be :
- A. 2,000
- B. 2,20,000
- C. 2,00,000
- D. 20,000
Solution hidden
Log in to view solution →
Q12
mcq
1 mark
Radhya Ltd. issued 5,000, 9% debentures of 100 each at 97 per debenture. The 9% debentures account will be credited by :
- A. 4,85,000
- B. 5,00,000
- C. 4,50,000
- D. 50,000
Solution hidden
Log in to view solution →
Q13
mcq
1 mark
X Ltd. invited applications for issuing 90,000 equity shares of 100 each. The amount per share was payable as follows:
On Application 20
On Allotment 50
On First and final call Balance
Applications for 2,00,000 shares were received. An applicant who had applied for 5,000 shares paid the entire share money with the application. The total application money received by the company was :
- A. 44,00,000
- B. 40,00,000
- C. 18,00,000
- D. 90,00,000
Solution hidden
Log in to view solution →
Q14
mcq
1 mark
A, B and C were partners in a firm sharing profits and losses in the ratio of 8 : 5 : 3. It was decided that with effect from 1st April, 2024, profits and losses will be shared in the ratio of 6 : 5 : 5. Due to change in the ____________.
- A. gain
- B. gain
- C. sacrifice
- D. sacrifice
Solution hidden
Log in to view solution →
Q15
mcq
1 mark
On 1st April, 2024, the Balance Sheet of Radha and Mohan showed a loan of 10,000 given by Mohan to the firm. The firm was ____________ which of the following account ?
- A. Realisation Account
- D. Bank Account
Solution hidden
Log in to view solution →
Q16
mcq
1 mark
Ajay and Parth were partners in a firm sharing profits and losses in the ratio of 2 : 1. On 1st April, 2024, they admitted Vinod as a new partner in : 1 : 1.
Solution hidden
Log in to view solution →
Q17
short answer
3 marks
Suman and Lata were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1st April, 2023, their capital accounts showed balances of 1,50,000 and 2,00,000, respectively. The partnership deed provided for interest on capital @ 8% p.a. Show the treatment of interest on capital in the following cases if:
(i) The firm earned a profit of 14,000 for the year ended 31st March, 2024.
(ii) The firm earned a profit of 60,000 for the year ended 31st March, 2024.
Solution hidden
Log in to view solution →
Q18
short answer
3 marks
Abha and Sara were partners in a firm. Their capitals were : Abha 3,00,000 and Sara 2,00,000. The normal rate of return in similar business is 10%. The profits of the firm of Abha and Sara for the last three years were :
2021-22: 60,000
2022-23: 90,000
2023-24: 1,20,000
Calculate goodwill of the firm on the basis of average profit method.
Solution hidden
Log in to view solution →
Q18
long answer
3 marks
(b) Vijay, Ravi and Raman were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. On 1st April, 2024, they admitted Kamal as a new partner for his share in the profits. It was decided that new profit sharing ratio will be 4 : 2 : 3 : 1. On admission, the goodwill of the firm was valued at 6,00,000. Kamal brought his share of goodwill premium in cash.
(i) Calculate the sacrificing ratio.
(ii) Pass necessary journal entries for the treatment of goodwill on Kamal admission.
Show your working notes clearly.
Solution hidden
Log in to view solution →
Q19
long answer
3 marks
(a) KM Ltd. acquired assets worth 7,20,000 and took over liabilities of 2,00,000 of LS Ltd. for a purchase consideration of 9,60,000. KM Ltd. issued 12% debentures of 100 each at a discount of 4% in favour of LS Ltd. for payment of purchase consideration. Pass necessary journal entries for the above transactions in the books of KM Ltd.
Solution hidden
Log in to view solution →
Q19
long answer
3 marks
(b) Varsha Ltd. invited applications for issuing 2,000, 12% debentures of 100 each at a premium of 30 per debenture. Full amount was payable on application. Applications were received for 5,000 debentures. Applications for 3,000 debentures were rejected and application money was refunded. Debentures were allotted to the remaining applicants. Pass necessary journal entries for the above transactions in the books of Varsha Ltd.
Solution hidden
Log in to view solution →
Q20
long answer
3 marks
Aman, Govind and Guru were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Sudarshan was admitted for his share in the profits of the firm. The new profit sharing ratio between Aman, Govind, Guru and Sudarshan was agreed at 9 : 5 : 4 : 6. The total capital of the new firm was agreed upon as 3,60,000. Sudarshan will bring 1/4th of this as his capital. The capitals of the other partners were also to be adjusted according to the new profit sharing ratio. The capitals of Aman, Govind and Guru after all adjustments stood at 60,000, 80,000 and 45,000 respectively.
Calculate the new capitals of Aman, Govind and Guru. Also pass necessary journal entries for the above transactions in the books of the firm.
Solution hidden
Log in to view solution →
Q21
long answer
4 marks
Sudha, Sudama and Sulochna were partners in a firm sharing profits equally. On 31st March, 2020, Sudha retired. On the date of retirement 2,40,000 became due to her. Sudama and Sulochana agreed to pay Sudha in four equal yearly instalments plus interest @ 10% p.a. on the unpaid balance starting from 31st March, 2021. The firm closes its books on 31st March every year.
Solution hidden
Log in to view solution →
Q22
long answer
4 marks
On 1st April, 2023, GI Ltd. issued 40,000, 12% debentures of 100 each at a premium of 10%, redeemable at par after five years. The company closes its books on 31st March every year. Interest on debentures is payable half-yearly on 30th September and 31st March every year. Pass necessary journal entries in the books of the company for issue of debentures and payment of interest for the year ended 31st March, 2024.
Solution hidden
Log in to view solution →
Q23
long answer
6 marks
Radhika Ltd. invited applications for issuing 40,000 equity shares of $100 each at a premium of $50 per share. The amount was payable as follows:
On Application and Allotment: $40 per share (including $10 premium)
On First call: $45 per share (including $5 premium)
On Second and final call: Balance
Applications for 39,000 shares were received. Allotment was made in full to all the applicants. Dinu, to whom 100 shares were allotted, failed to pay the first call money. His shares were immediately forfeited. The forfeited shares were re-issued thereafter at $70 per share fully paid up. The second and final call was not yet made.
Pass necessary journal entries for the above transactions in the books of Radhika Ltd.
Solution hidden
Log in to view solution →
Q24
long answer
6 marks
Sona Ltd. invited applications for issuing 60,000 equity shares of $50 each. The amount was payable as follows:
On Application: $20 per share
On Allotment: $25 per share
On First and final call: Balance
Applications for 90,000 shares were received. Applications for 10,000 shares were rejected and application money refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received with applications was adjusted towards sums due on allotment. Rahul, to whom 600 shares were allotted, failed to pay the allotment money and his shares were forfeited immediately. Afterwards, the first and final call was made. Mona, to whom 1,000 shares were allotted, failed to pay the first and final call. Her shares were also forfeited.
Pass necessary journal entries in the books of Sona Ltd. for the above transactions.
Solution hidden
Log in to view solution →
Q24
short answer
6 marks
Singh will bring $1,50,000 as his capital and $50,000 as his share of goodwill premium.
(ii) The value of stock will be reduced by 10% and Land and Building will be appreciated by 10%.
(iii) Furniture will be revalued at $90,000.
(iv) A provision for doubtful debts will be created on sundry debtors at 5%.
(v) Investments worth $10,000 not mentioned in the Balance Sheet will be taken into account.
(vi) A creditor of $1,000 is not likely to claim his money and is to be written off.
Pass necessary journal entries for the above transactions in the books of the firm.
Solution hidden
Log in to view solution →
Q24
short answer
6 marks
Arti, Bharti and Gayatri were partners in a firm sharing profits and losses in ratio of 5 : 3 : 2. Their Balance Sheet as at 31st March, 2024 was as follows:
Balance Sheet of Arti, Bharti and Gayatri as at 31st March, 2024
Liabilities Amount () Assets Amount ()
Creditors $1,50,000$ Cash at Bank $1,30,000$
General Reserve $1,30,000$ Debtors $70,000$
Workmen Compensation Fund $75,000$ Stock $1,05,000$
Capitals:
Arti $2,00,000$ Machinery $1,40,000$
Bharti $1,00,000$ Building $2,00,000$
Gayatri $50,000$ $3,50,000$ Patents $5,000$
Profit and Loss A/c $80,000$ $7,30,000$ $7,30,000$
On the above date, Arti retired from the firm on the following terms:
Solution hidden
Log in to view solution →
Q25
short answer
6 marks
Madhavan, Chatterjee and Pillai were partners in a firm sharing profits and losses in ratio of 2 : 1 : 2. On 31st March, 2024, their Balance Sheet was as follows:
Balance Sheet of Madhavan, Chatterjee and Pillai as at 31st March, 2024
Liabilities Amount () Assets Amount ()
Creditors $1,10,000$ Cash at Bank $4,05,000$
Outstanding Expenses $17,000$ Stock $2,20,000$
Capitals:
Debtors $95,000$
Madhavan $2,00,000$ Less : Provision for Doubtful Debts $5,000$ $90,000$
Chatterjee $1,00,000$ Land and Building $1,82,000$
Pillai $2,00,000$ $5,00,000$ Plant and Machinery $1,00,000$
$9,97,000$ $9,97,000$
On the above date, the firm was dissolved and the following transactions took place:
(i) Debtors were taken over by the creditors in full settlement of their account.
(ii)
Solution hidden
Log in to view solution →
Q26
mcq
1 mark
ABC Ltd. was registered with authorised capital of $1,00,00,000$ divided into 10,00,000 equity shares of $10$ each. On 1st April, 2024, the company offered to the public for subscription, 1,00,000 shares. Applications for 99,000 shares were received and allotment was made in full to all the applicants. A shareholder holding 9,000 shares failed to pay the final call of $3$ per share.
Answer the following questions:
- A. (A) $10,00,000$
- B. (B) $9,90,000$
- C. (C) $1,00,00,000$
- D. (D) $99,45,000$
Solution hidden
Log in to view solution →
Q27
mcq
1 mark
(a) Operating ratio of a company is 63%. Its gross profit ratio is 20%. What will be its operating profit ratio ?
- A. 27%
- B. 23%
- C. 43%
- D. 83%
Solution hidden
Log in to view solution →
Q28
mcq
1 mark
Ratios that are calculated for measuring the efficiency of operations of business based on effective utilisation of resources are called :
- A. Activity Ratios
- B. Profitability Ratios
- C. Solvency Ratios
- D. Liquidity Ratios
Solution hidden
Log in to view solution →
Q28
mcq
1 mark
A cell reference that either holds row or column constant when the formula or function is copied to another location is known as :
- A. Mixed cell reference
- B. Relative cell reference
- C. Ranges
- D. Absolute cell reference
Solution hidden
Log in to view solution →
Q30
long answer
6 marks
Kishore and Ranjan were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1st April, 2024, their Balance Sheet was as follows:
Balance Sheet of Kishore and Ranjan as at 1st April, 2024
Liabilities: Sundry Creditors $1,80,000$; General Reserve $20,000$; Capitals — Kishore $6,00,000$, Ranjan $4,00,000$; Total $12,00,000$
Assets: Cash in hand $30,000$; Debtors $1,20,000$; Stock $1,50,000$; Furniture $1,00,000$; Land and Building $8,00,000$; Total $12,00,000$
On the above date, Singh was admitted as a new partner on the following terms:
Solution hidden
Log in to view solution →
Q30
mcq
1 mark
Statement I : In case of non-financial enterprises, payment of interest and dividends are classified as financing activities, whereas receipt of interest and dividends are classified as investing activities. Statement II : Investing and financing transactions that require the use of cash or cash equivalents, should be excluded from cash flow statement. Choose the correct alternative from the following :
- A. Both the statements are false.
- B. Both the statements are true.
- C. Statement I is false and Statement II is true.
- D. Statement I is true and Statement II is false.
Solution hidden
Log in to view solution →
Q30
mcq
1 mark
In a graph, the area bounded by different axes is known as :
- A. Data point
- B. Axis title
- C. Plot area
- D. Legend
Solution hidden
Log in to view solution →
Q31
short answer
Singh will bring $1,50,000 as his capital and $50,000 as his share of goodwill premium.
Solution hidden
Log in to view solution →
Q31
short answer
3 marks
Under which major headings and sub-headings (if any) will the following items be presented in the Balance Sheet of a company as per Schedule III, Part I of the Companies Act, 2013 ? (a) Livestock (b) Loose Tools (c) Design
Solution hidden
Log in to view solution →
Q31
short answer
3 marks
Explain the ways in which accounting software provide data security, safety and confidentiality.
Solution hidden
Log in to view solution →
Q32
short answer
The value of stock will be reduced by 10% and Land and Building will be appreciated by 10%.
Solution hidden
Log in to view solution →
Q32
long answer
3 marks
From the following Balance Sheet of Nayak Ltd. prepare a Comparative Balance Sheet :
Balance Sheet of Nayak Ltd. as at 31st March, 2024
Particulars
31.3.2024 31.3.2023
I Equity and Liabilities :
1. Share Capital 6,00,000 4,00,000
2. Non-Current Liabilities
Long-term borrowings 2,25,000 1,50,000
3. Current Liabilities
Trade Payables 75,000 50,000
Total 9,00,000 6,00,000
II Assets:
1. Non-Current Assets
Property, Plant and Equipment and Intangible Assets 6,75,000 4,50,000
2. Current Assets
(a) Inventories 1,50,000 1,00,000
(b) Cash and Cash Equivalents 75,000 50,000
Total 9,00,000 6,00,000
Solution hidden
Log in to view solution →
Q32
long answer
3 marks
From the following Balance Sheet of Nayak Ltd. prepare a Comparative Balance Sheet :
Solution hidden
Log in to view solution →
Q32
short answer
In an accounting software how many pre-defined account groups exist ? State their further division with reference to number
Solution hidden
Log in to view solution →
Q33
long answer
4 marks
(a) State the steps to prepare a chart.
OR
(b) What is meant by internal margin while using MS Excel? State the options available.
Solution hidden
Log in to view solution →
Q34
short answer
A provision for doubtful debts will be created on sundry debtors at 5%.
Solution hidden
Log in to view solution →
Q34
long answer
6 marks
$=SUM(B2B3)$ will give an error while using a spreadsheet. Identify the error and state the steps to correct it.
Solution hidden
Log in to view solution →
Q35
short answer
Investments worth $10,000$ not mentioned in the Balance Sheet will be taken into account.
Solution hidden
Log in to view solution →
Q36
short answer
A creditor of $1,000$ is not likely to claim his money and is to be written off.
Solution hidden
Log in to view solution →
Q41
mcq
1 mark
The issued capital of ABC Ltd. is :
- A. 1,00,000
- B. 99,000
- C. 94,500
- D. 10,00,000
Solution hidden
Log in to view solution →
Q42
mcq
1 mark
The amount of calls-in-arrears will be :
- A. 27,000
- B. 90,000
- C. 2,97,000
- D. Nil
Solution hidden
Log in to view solution →
Q43
mcq
1 mark
ABC Ltd. will be :
- A. 9,63,000
- B. 98,73,000
- C. 9,90,000
- D. 1,00,00,000
Solution hidden
Log in to view solution →
Q45
mcq
1 mark
Which of the following is not a purpose of analysis of financial statements ?
- A. To assess the current profitability and the operational efficiency of the firm.
- B. To ascertain the relative importance of different components of financial position of the firm.
- C. To just study the reports of the company.
- D. To judge the ability of the firm to repay its debt.
Solution hidden
Log in to view solution →
Q47
mcq
1 mark
The activities that result in changes in the size and composition of __________.
Solution hidden
Log in to view solution →
Q48
mcq
1 mark
Which of the following transactions will not result in the inflow of cash ?
- A. Cash deposited in the bank 80,000
- B. Payment of salaries 50,000
- C. Issue of 9% debentures 10,00,000
- D. Purchase of machinery 2,00,000
Solution hidden
Log in to view solution →
Q53
short answer
4 marks
The current ratio of Jack Ltd. is $3.2 : 1$ and the quick ratio is $1.5 : 1$. The excess of current assets over quick assets was represented by inventories which were 68,000. Calculate :
(i) Current Assets
(ii) Quick Assets
(iii) Current Liabilities
Solution hidden
Log in to view solution →
Q54
long answer
The following information has been extracted from the books of Ram Lal Ltd. :
Particulars
31.3.2024
31.3.2023
Surplus : Balance in Statement of Profit and Loss
17,00,000
8,00,000
Patents
50,000
Sundry Debtors 5,80,000
4,20,000
Sundry Creditors 1,40,000
60,000
Cash and Cash Equivalents 2,00,000
90,000
Additional Information :
Interim dividend paid during the year was 1,20,000.
Calculate Cash Flows from Operating Activities.
Solution hidden
Log in to view solution →
Q55
long answer
6 marks
The following information has been extracted from the books of Lata Ltd. :
Particulars
31.3.2024
31.3.2023
Machinery (Cost) 70,00,000
50,00,000
Accumulated Depreciation 10,00,000
8,00,000
Additional Information :
(i) During the year a piece of machinery costing 1,40,000 on which accumulated depreciation was 90,000, was sold at a gain of 10,000.
(ii) Depreciation charged during the year amounted to 2,90,000.
Calculate Cash Flows from Investing Activities.
Solution hidden
Log in to view solution →
Q56
mcq
1 mark
Name the accounting information sub-system which deals with payment of wages and salaries of employees.
- A. Costing sub-system
- B. Expense accounting sub-system
- C. Payroll accounting sub-system
- D. Tax accounting sub-system
Solution hidden
Log in to view solution →
Q57
mcq
1 mark
When the accumulated data from various sources is processed in one slot it is called :
- A. Batch processing
- B. Data validation
- C. Real time processing
- D. Processing and Revalidation
Solution hidden
Log in to view solution →
Q59
mcq
1 mark
Which of the following is not contained in Account group Current Liabilities in the Account group of Balance Sheet ?
- A. Bank Overdraft
- B. Duties and Taxes
- C. Provisions
- D. Sundry Creditors
Solution hidden
Log in to view solution →