Goodwill in Partnership Accounts — Accountancy STD 12 — Question

Muthu Ltd. issued 50,000 shares of ₹ 10 each payable as follows; ₹ 2 on the application; ₹ 4 on allotment; ₹ 4 on first and final, call.
All money payable was duly received except one shareholder holding 1,000 shares failed to pay the call money. Pass the necessary journal entries for calls by using calls in the arear account.

Kavitha is a partner in a firm. She withdraws ₹ 2,500 p.m. regularly. Interest on drawings is charged @ 4% p.a. Calculate the interest on drawings using average period, if she draws

1. at the beginning of every month
2. in the middle of every month
3. at the end of every month

What is meant by ‘Tally ERP9”?

Calculate quick ratio: Total current liabilities ₹ 2,40,000; total current assets ₹ 4,50,000; Inventories ₹ 70,000; Prepaid Expenses ₹ 20,000

From the following information, calculate the value of goodwill under the annuity method:

Particulars	₹
Average profit	14,000
Normal Profit	4,000
Normal rate of return	15%
Years of purchase of goodwill	5

Present value of ₹ 1 for 5 years at 15% per annum as per the annuity table is 3.352

What are the ways in which the final amount due to an outgoing partner can be settled?

Following is the extract of balance sheet of Abdul Ltd., as on 31st March, 2019:

Particulars	Rs.
I EQUITY AND LIABILITIES
1. Shareholders’ Funds
a) Share capital	2,00,000
b) Reserves and surplus	50,000
2. Non-Current liabilities
Long-term borrowings	1,50,000
3. Current liabilities
(a) Trade Payable	1,30,000
(b) Reserves and surplus	5,000
(c) Short–term provisions	20,000
Total	5,55,000

Net profit before interest and tax for the year was ₹ 60,000. Calculate the return on capital employed for the year.

Explain the objectives of ratio analysis.

Write a short note on cash flow analysis?

What are the liquidity ratios?