KV INS VALSURA SHORT QUESTIONS OF ACCOUNTANCY FOR CLASS XII

Transcription

1 KV INS VALSURA SHORT QUESTIONS OF ACCOUNTANCY FOR CLASS XII 1. Define partnership. 2. What is meant by partnership Deed? 3. Can a partner be exempted from sharing losses in a firm? If yes, under what circumstances 4. In the absence of partnership deed, how are mutual relation of partners governed? 5. Or What are the provisions which affect the accounting treatment in the absence of partnership deed? 6. Why should a firm have a partnership Deed? 7. Distinguish between fixed and fluctuating capital accounts. 8. State the conditions under which the capital balances may change under the system of fixed capital accounts 9. X and Y are partners sharing in 2:3 with capital of Rs. 2,00,000 and Rs. 1,00,000 respectively. Show the distribution of Profit or Loss in the following cases: Case(1) If the partnership deed is silent upon interest on capital and the profit of the firm is Rs. 20,000. Case(2) If Partnership deed provide interest on 6% p.a. and loss for the year is Rs. 15,000 Case(3) If Partnership deed provide interest on 6% p.a. and the trading profit for the year is Rs.21,000. Case(4) If Partnership deed provide interest on 6% p.a. and the partnership deed is silent about the treatment of Interest on capital and trading profit for the year is Rs. 15,000. Case(5) If profit of the firm before charging interest on capital is Rs. 15,000 and there is a clear agreement that interest on capital is 6% p.a. even if it involve the firm in loss. 10. A, B, C and D are partners. Their capital A/c on 1/4/2012 were A Rs. 50,000; B Rs. 40,000; C Rs. 30,000 and D Rs. 20,000. After the accounts for the year ended 31/3/2013 have been prepared. It was discovered that 5% p.a. as provided for in the partnership deed has not been credited to partner s capital a/c. before the distribution of profits. Pass adjusting entry only for rectification. 11. What are the provisions which affect the accounting treatment in the absence of partnership. 12. A partnership deed provides for the payment of interest on capital but there was a loss instead of profit during the year At what rate will the interest on capital be allowed? 13. Why is Goodwill considered as Intangible Asset but not a Fictitious Asset? 14. State any four reasons or occasions for valuation of goodwill in relation to partnership firm reconstituted. 15. Calculate the value of goodwill on the basis of three years purchase of average profit of preceding five years which were as follows Years Profit/Loss(Rs.) 7,00,000 (profit) 16,00,000(profit) 19,00,000(profit) 5,00,000(Loss) 13,00,000(Profit) A business has earned average profits of Rs. 1,00,000 during the last few years and the normal rate of return in similar business is 10%. Find out the value of goodwill by: (i) Capitalization of super profit method. (ii) Super profit method if the goodwill is valued at 3 years purchase of super profit. Total assets of the business were Rs. 10,00,000 and its external liabilities Rs. 1,80,000

2 16. The profits of a firm for the year ended 31 st March for the last five years were Years Profit (Rs.) 40,000 48,000 60,000 50,000 36, Calculate the value of goodwill on the basis of three years purchase of the weighted average profit after assigning weights 1, 2, 3, 4 and 5 respectively for the profits of year 2008, 2009, 2010, 2011 and 2012 The average net profit expected in future by K. Lal and co. are Rs. 30,000 per year. The average capital employed in the business by the firm is Rs. 2,00,000. The normal rate of return on capital employed in a similar business is 10% calculate the goodwill of firm by (i) Super Profit Method on the basis of tow year purchase (ii) Capitalization of Super Profit Method 18. State any two occasions on which a firm can be reconstituted. 19. What is meant by reconstitution of partnership firm? 20. What adjustments are made on change in the profit sharing ratio 21. State the ratio in which the partners share the accumulated profits when there is a change in the profit sharing ratio amongst existing partners. 22. A, B and C were partners in a firm sharing profits in ratio of 5:3:2. They decided to share future profits equally. Goodwill of the firm was valued at Rs. 1,20,000 but they decided that no goodwill adjustment be made for gain in profit share of B and C. identify the values involved in changing the profit sharing ratio of partners. 23. State any one purpose for admitting a new partner in firm. 24. State one right acquired by a newly admitted partner. 25. State the rights which a newly admitted partner acquires in the firm. 26. A and B are Partners sharing profits and losses in 3:2. They admit C into partnership for 1/5 th share. C brings Rs. 30,000 as capital and Rs. 10,000 as his share of premium. Pass journal entries 27. A and B are partners sharing profits and losses in the ratio of 5:3. They admitted C as a new partner. A surrendered 1/3 rd of his share in favour of C and B surrendered 1/4 th of share in favour of C. C brought Rs. 1,50,000 for his share of capital and Rs. 58,000 for his share of goodwill. Calculate new profit sharing ratio of A,B and C, Sacrificing ratio of A and B and pass necessary journal entries 28. A and B are Partners sharing profits and losses in 3:2. They admit C into partnership for 1/5 th share. C brings Rs. 60,000 as capital and Rs. 20,000 as his share of premium. At the time of admission of C, goodwill appears in the B/S of A and B at Rs. 5,000. Pass necessary journal entries if old partners withdraw 25% of the amount of goodwill bought by C. 29. A and B are partners in a firm sharing profits and losses in the ratio of 3:2. They admitted C as a new partner for 3/7 th share in the profits and the new profit sharing ratio will be 2:2:3. C brought Rs. 2,00,000 as his capital and Rs. 1,50,000 as premium for goodwill. Half of their share of premium was withdrawn by A and B from the firm. Calculate sacrificing ratio and pass necessary journal entries. 30. How can a partner retire from a firm? 31. Ram, Mohan and Sohan were partners in a firm sharing profits in the ratio of 4:3:2. Mohan retired. His share was taken over equally by Ram and Sohan. In which ratio will the profit or loss on revaluation of assets and liabilities on the retirement of Mohan be transferred to the capital accounts of the partners

3 32. Give the journal entry to distribute Workman Compensation Reserve of Rs. 70,000 at the time of retirement of Neeti when there is a claim of Rs. 25,000 against it. The firm has three partners Raveena, Neeti and Rajat. 33. A, B and C were partners, sharing profits in the ratio of 1/2, 2/5 and 1/10. Find the new ratio of the remaining partners if (a) A retires, (b) B retires (c) C retires 34. A, B and C are partners sharing profits and losses in the ratio of 5:3:2. B retires. His share is taken by A and C in the ratio of 2:1. Calculate new profit sharing ratio. 35. A, B and C are partners sharing profits in the ratio of 2:2:1. B retires and his share is taken by C. Calculate new profit sharing ratio. 36. Shiv, Mohan and Hari were partners in a firm sharing profits in the ratio of 5:5:4. Mohan retired and his share was divided equally between Shiv and Hari. Calculate new profit sharing Ratio. 37. Kangli, Mangli and Jangli are three partners sharing profits in the ratio of 4:3:2. Kangli retires. Assuming Mangli and Jangli will share profits in future in the ratio of 5:3, determine the gaining ratio. 38. Surender, Ramesh, Naresh and Mohan are partners in a firm sharing profits in 2:1:2:1. On the retirement of Naresh, goodwill was valued at Rs. 72,000. Surender, Ramesh and Mohan decided to share future profits equally. You are required to make adjustment entries for goodwill without opening Goodwill Account. 39. X, Y and Z are partners sharing profits in the ratio of 2:3:5. Goodwill is appeared in their books at a value of RS. 50,000. X retires and on the day of X s retirement, goodwill is valued at Rs. 45,000. Y and Z decided to share the future profits equally. Pass necessary journal entries. 40. A, B and C are partners in a firm whose books are closed on 31 st March each year. A died on 30 th june,2009 and according to the agreement the share of profits of a deceased partner up to the date of the death is to be on the basis of the average profits for the last five years. The net profits of the last 5 years have been 2005 Rs. 14,000; 2006 Rs. 18,000; 2007 Rs. 16,000; 2008 Rs. 10,000(loss); and 2009 Rs. 16,000. Calculate A s share of the profits up to the date of death and pass necessary journal entry. 41. What is meant by Dissolution of a Firm? 42. Under what circumstances can a partnership firm be dissolved? 43. What are the mode of Dissolution of a firm? 44. What is the difference between Dissolution of A Firm and Dissolution of A Partnership. 45. Pass Journal Entries for the following transactions 1) Realization expenses amounted to Rs. 10,000. 2) Realization expenses amounted to Rs. 5,000 were paid by a partner. 3) Realization expenses amounted to Rs. 5,000 were paid by the firm on behalf of a partner.

4 4) A partner was paid remuneration (including expenses ) of Rs. 7,500 to carry out dissolution of the firm. Actual expenses were Rs. 10,000 5) Dissolution expenses were Rs. 8,000. Out of the said expenses, Rs. 3,000 were to be borne by the firm and the balance by a partner. Rs. 8,000 are paid by the firm. 6) Dissolution expenses were Rs. 8,000; Rs. 3,000 were to be borne by the firm and the balance by a patner. The expenses were paid by a partner. 7) Realization expenses of Rs. 5,000 were to be borne and paid by a partners. 46. pass Journal Entries for the following transactions 1. K, a creditor, to whom Rs. 6,000 were due to be paid accepted office equipment at Rs. 4,000 and the balance was paid to him in cash. 2. L, a creditor to whom Rs. 16,000 were due to be paid took over Machinery at Rs. 20,000. Balance was paid by him in cash. 3. An unrecorded Liability of the firm Rs. 7,800 was paid by Partner A. 4. Realisation expenses were to be borne by Partner A for which he was allowed a commission of 2% of net cash realized from dissolution was Rs. 1,00,000 and actual realization expenses were Rs. 7, Expenses of realization Rs. 7,400 were to be borne by partner B. B used firm s cash for paying these expenses. 6. There was a debit balance of RS. 7,500 in profit and Loss A/c. 7. Machinery of the book value of RS. 20,000 was taken over by partner A at a discount of 10%. He also took over land and building valued at RS. 5,00,00 for Rs. 6,00, Give any two points of distinction between Reserve Capital and Capital Reserve. Can Securities Premium be used as working Capital? Give reason in support of your answer? 48. OR State any two purposes for which securities premium can be utilized? 49. What is Right Issue? 50. Define a Debenture. 51. What is meant by Debenture issued at A collateral Security? 52. MG Ltd invited application for 1,00,000; 9% debentures of Rs. 10 each. All the debentures were subscribed and allotted. Pass journal entries in the books of the company if the full amount was payable on application in following case. 1. Case 1:- if such debentures are issued at par. 2. Case 2:- if such debentures are issued at 6% discount. 3. Case 3:- if such debentures are issued at 10% premium. 53. Give journal entries for issue of debentures in the following cases and also prepare balance sheet in each case. 1) Case 1:- Issued 1,000 7% debentures of Rs. 100 each at par, redeemable at par. 2) Case 2:- Issued 2,000 7% debentures of Rs. 100 each at a premium of 5%, redeemable at par 3) Case 3:- Issued 1,500 7% debentures of Rs. 100 each at a discount of 5%, redeemable at par 4) Case 4:- Issued 1,200 7% debentures of Rs. 100 each at par, redeemable at 5% premium. 5) Case 5:- Issued 1,300 7% debentures of Rs. 100 each at a discount of 5%, redeemable at a premium of 5%. 6) Case 6:- Issued 1,400 7% debentures of Rs. 100 each at a premium of 5%, redeemable at a premium of 8%. 54. Enumerate the methods of redemption of debentures. 55. State the meaning of Redemption of Debentures Out of Profit. 56. under what heads and sub heads will the following items appear in the balance sheet of a company as per Revised Schedule VI Part I of the Companies Act, (a) Debentures (b) Loose tools (c) Calls in advance (d) Mining Rights (e) Vehicles (Motor Car) (f) Tax Reserve (g) Interest on calls in advance

5 (h) Premium on redemption of debentures (i) Balances with Banks (j) Subsidy reserve (k) Provision for doubtful debts (l) Long term investments (m) Bill of Exchange (n) Discount on issue of Shares/debentures (o) Security premium (p) Unclaimed Dividend (q) Sundry Creditors (r) provision for tax (s) Preliminary Expenses (t) Interest Accrued on Investments (u) Goodwill (v) Encashment of employees earned leave payable on retirement 57. Explain the objectives of financial analysis. 58. Explain any two limitations of financial analysis. 59. What is meant by comparative financial statements? 60. Name any two ratios which are calculated to test the solvency of a company. 61. What is a cash flow statement? 62. What do you mean by cash equivalents? 63. State any two objectives of preparing cash flow statement? 64. Dividend received by mutual fund company will be shown in which activity. 65. Interest paid by finance company will come under which activity while preparing cash flow statement?