Q1
mcq
In order to form partnership, there should be at least ______ partners.
- A. 3
- B. 2
- C. 7
- D. 10
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Q2
mcq
X, Y, and Z are partners sharing profits in the ratio of 3:2:1. If 'Y' retires, the new profit sharing ratio between 'X' and 'Z' will be
- A. 2:1
- B. 1:3
- C. 3:1
- D. 1:2
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Q3
mcq
Realization Account is prepared in the case of
- A. Admission of a partner
- B. Retirement of a partner
- C. Death of a partner
- D. Dissolution
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Q4
mcq
Equity shareholders are
- A. Owners
- B. Creditors
- C. Lenders
- D. Customers
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Q5
mcq
Current Assets do not include
- A. Short term investment
- B. Trade receivables
- C. Inventories
- D. Short term provisions
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Q6
short answer
1 mark
______ Account is prepared in the case of fixed capital method.
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Q7
short answer
1 mark
Old ratio – sacrifice ratio = _______.
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Q8
short answer
1 mark
Profit on forfeiture of shares is transferred to ________ account.
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Q9
short answer
1 mark
10,000, 12% debentures issued at par, here 12% means _______.
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Q10
short answer
1 mark
Common size statements are also known as ______.
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Q11
short answer
5 marks
Match the following: (a) New profit sharing ratio, (b) Profitability ratio, (c) Leave encashment, (d) Depreciation, (e) Dissolution with options: (i) Employees benefit expenses, (ii) Closing of partnership business, (iii) Future profit, (iv) In percentage, (v) Non-cash expenses, (vi) Old profit.
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Q14
short answer
1 mark
Trend analysis is one of the techniques of analysis of financial statements (True/False).
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Q15
short answer
1 mark
Give an example for solvency ratio.
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Q16
short answer
1 mark
State any one example of investing activities.
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Q17
short answer
2 marks
State any two contents of partnership deed.
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Q18
short answer
2 marks
Write the meaning of Revaluation Account.
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Q19
short answer
2 marks
Give the meaning of calls in arrears.
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Q20
short answer
2 marks
State any two objects of cash flow statement.
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Q21
short answer
2 marks
Give any two examples for 'Non-current assets head'.
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Q22
long answer
6 marks
Pavitra and Suchitra are partners in a firm sharing profits and losses in the ratio of 3:2. Pavitra withdrew the following amounts during the year 2023-24: `2000 on 01-06-2023, `3000 on 30-09-2023, `5000 on 30-11-2023, `6000 on 01-01-2024. Interest on drawings is to be charged at 12% per annum. Calculate the amount of interest to be charged on Pavitra's drawings for the year ending 31-03-2024 under product method.
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Q23
long answer
6 marks
Arathi, Bharathi and Parvathi are partners in a firm sharing profits and losses in the ratio of 5:3:2 respectively. Arathi retires from the firm. Bharathi and Parvathi agreed to share the future profits in the ratio of 3:2. Calculate the gain ratio of Bharathi and Parvathi.
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Q24
long answer
6 marks
Rama, Bheema and Soma are partners sharing profits and losses in the ratio of 5:3:2. Their capital balance on 01-04-2023 stood at `60,000, `50,000 and `40,000 respectively. Bheema died on 31-12-2023. Partnership deed provides the following: a) Interest on capital at 10% p.a. b) Salary to Bheema `3000 per month. c) Bheema's share of goodwill (As per AS-26). d) His share of profit upto the date of death on the basis of previous year's profit: i) His share of goodwill is `21,000. ii) Profit of the firm for the year 2022-23 is `40,000. Prepare Bheema's Capital Account.
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Q25
long answer
6 marks
From the following information, prepare income statement for the year ended 31/03/2024 as per Schedule-III of the Companies Act-2013: Revenue from operations: `6,00,000; Cost of materials consumed: `1,00,000; Salaries to employees: `50,000; Staff Welfare Fund: `20,000; Rent and Taxes: `10,000; Repairs to Furnitures: `20,000; Tax 30%.
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Q26
long answer
6 marks
From the following information, calculate cash flows from the financial activities: Particulars 31/3/2023: Equity share capital 10,00,000, Long term loans 8,00,000; 31/03/2024: Equity share capital 20,00,000, Long term loans 12,00,000. During the year, long term loan repaid `2,00,000. Dividend paid of `50,000.
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Q26
long answer
From the following information, calculate cash flows from the financial activities.
Particulars 31/3/2023 31/03/2024
Equity share capital 10,00,000 20,00,000
Long term loans 8,00,000 12,00,000
During the year, long term loan repaid `2,00,000. Dividend paid of `50,000.
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Q27
long answer
12 marks
Arun and Varun are partners sharing profits and losses in the ratio of 3:2 respectively. Their Balance Sheet as on 31/03/2024 was as follows:
[Table: Liabilities: Creditors 46,000, Bills Payable 20,000, General Reserve 30,000, Profit & Loss Account 15,000, Capital Accounts (Arun 80,000, Varun 40,000) 1,20,000. Assets: Cash 16,000, Debtors 50,000, Stock 35,000, Furniture 20,000, Machinery 30,000, Buildings 80,000]
On 01-04-2024, they admitted Kiran into partnership.
a) Kiran should bring in `40,000 as capital for 1/6th share and `30,000/- towards goodwill (As per AS-26)
b) Goodwill amount is withdrawn by the old partners
c) Depreciate machinery and furniture by 5% each
d) Value of building is appreciated by 15%
e) Maintain PDD at 10% on debtors
Prepare:
i) Revaluation Account
ii) Partners' Capital Account
iii) New Balance Sheet of the firm as on 01/04/2024
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Q28
long answer
12 marks
Anushree and Thanushree are partners sharing profits and losses in the ratio of 3:1. Their Balance Sheet as on 31/03/2024 was as under.
[Table: Liabilities: Loan 3,000, Creditors 3,000, Reserve Fund 8,000, Capital Account (Anushree 40,000, Thanushree 20,000) 60,000. Assets: Cash at Bank 6,000, Stock 10,000, Furniture 20,000, Debtors 4,000, Plant & Machinery 22,000, Profit and Loss Account 12,000]
On the above date they decided to dissolve the firm.
Additional information:
a) Anushree took over plant and machinery at an agreed value of `25,000.
b) Stock and debtors were realized for `9,000 and `3,500 respectively.
c) Furniture took over by Thanushree at `18,000.
d) Liabilities were paid in full by the firm.
e) Realisation expenses were `500.
Prepare:
i) Realisation account
ii) Partners capital account
iii) Bank account
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Q29
long answer
12 marks
Royal Company Ltd. issued 20,000 equity shares of `10 each at a premium of `1 per share. The amount was payable as follows:
` 2 on application
` 5 on allotment (including premium)
` 4 on first and final call
All the shares were subscribed and the money duly received except the first and final call on 500 shares.
The directors forfeited these shares and reissued at `8 each as fully paid-up.
Pass the necessary journal entries.
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Q30
long answer
12 marks
Give the journal entries for the issue of debentures for the following cases in the books of XYZ Co. Ltd.
a) Issue of 2,00,000, 12% Debentures of ` 100 each at par and redeemable also at par.
b) Issue of 2,000, 12% Debentures of `100 each issued at par but redeemable at premium of 5%.
c) Issue of 2,00,000, 12% Debentures of `100 each at a premium of 5% and redeemable at par.
d) 2,000, 12% debentures of `100 each issued at a discount of 5% and redeemable at par.
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Q31
long answer
12 marks
From the following information, prepare comparative Balance Sheet as of ABC Co. Ltd.
[Table: Equity and Liabilities: Share capital (15L, 20L), Reserves (4L, 3L), Long term borrowings (6L, 9L), Trade payables (2L, 3L). Assets: Buildings (10L, 12L), Goodwill (6L, 9L), Current investment (4L, 3L), Trade receivables (2L, 3L), Cash and Cash equivalents (5L, 8L)]
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Q31
long answer
From the following information, prepare comparative Balance Sheet as of ABC Co. Ltd.
Particulars | 31-03-2023 | 31-03-2024
Equity and Liabilities:
Share capital | 15,00,000 | 20,00,000
Reserves | 4,00,000 | 3,00,000
Long term borrowings | 6,00,000 | 9,00,000
Trade payables | 2,00,000 | 3,00,000
Total | 27,00,000 | 35,00,000
Assets
Buildings | 10,00,000 | 12,00,000
Goodwill | 6,00,000 | 9,00,000
Current investment | 4,00,000 | 3,00,000
Trade receivables | 2,00,000 | 3,00,000
Cash and Cash equivalents | 5,00,000 | 8,00,000
Total | 27,00,000 | 35,00,000
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Q32
long answer
12 marks
From the following information, calculate:
a) Inventory turnover ratio
b) Trade receivables turnover ratio
c) Current ratio
d) Gross profit ratio
e) Operating ratio
f) Net profit ratio
[Table: Revenue from operations 12,00,000; Gross profit 4,00,000; Average inventory 1,00,000; Net credit revenue from operations 6,00,000; Average trade receivables 2,00,000; Current assets 2,00,000; Current liabilities 1,00,000; Operating expenses 1,00,000; Net profit 1,00,000]
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