Which of the following transaction is always transaction of operating activity ?
- AInterest paid on loan
- BDividend received
- CDividend paid
- ✓Salary expense
Answer: D.
View full solution →Question types
Board Question Paper : August 2020 question types
41 questions across 6 question groups — pick any mix to generate a Elements of Account paper with step-by-step answer keys.
41
Questions
6
Question groups
5
Question types
01
MCQ
10 Q→021 Marks Each
11 Q→033 Marks Each
8 Q→044 Marks Each
6 Q→0511 Marks Each
2 Q→068 Marks Each
4 Q→Sample Questions
Board Question Paper : August 2020 questions
One sample from each question group in this chapter. Select any group above to see the full set with answer keys.
Liquidity ratio is $........$
- AMeasurement of solvency
- BMeasurement of short-term profitability
- CMeasurement of profitability
- ✓Measurement of liquidity
Answer: D.
View full solution →Which of the following ratios are included in traditional classification ?
- ✓Composite ratio
- BLiquidity ratio
- CProfitability ratio
- DSolvency ratio
Answer: A.
View full solution →The amount of premium received on issuing debentures at premium is $........$
- Arevenue profit
- Bcapital loss
- Crevenue loss
- ✓capital profit
Answer: D.
View full solution →At what maximum rate of percentage for premium on the face value of shares can be declared by the company on their issue shares ?
- A$10%$
- B$100%$
- C$25%$
- ✓No limit
Answer: D.
View full solution →Where addition in general reserve is recorded ?
What is the shareholders’ fund ?
In which form ratios can be presented ?
Describe the types of financial analysis on the basis of time.
Describe the types of financial analysis on the basis of parties.
Explain the methods of redemption of debentures.
On $1st$ July, $2017,$ Akshay Limited issued $20,000,8 \%$ debentures of $₹ .300$ each at a premium of $5 \%$. These debentures are redeemed on $30th$ June, $2023$ at $₹ 330$ per debenture.
Write the necessary journal entries -in the books of comapny $($Without Narration$).$
View full solution →Write the necessary journal entries -in the books of comapny $($Without Narration$).$
Write the journal entries only for the issue of debentures from the following transactions $($Without Narration$) :$
$(i)$ Issued $8,000,4.5 \%$ debentures of $₹ 100$ each at par, redeemable also at par.
$(ii)$ Issued $9,000,5.5 \%$ debentures of $₹ 100$ each at discount of $10 \%$, redeemable at par.
$(iii)$ Issued $10,000,8 \%$ debentures of $₹ 200$ each at a premium of $10 \%$ redeemable at par.
View full solution →$(i)$ Issued $8,000,4.5 \%$ debentures of $₹ 100$ each at par, redeemable also at par.
$(ii)$ Issued $9,000,5.5 \%$ debentures of $₹ 100$ each at discount of $10 \%$, redeemable at par.
$(iii)$ Issued $10,000,8 \%$ debentures of $₹ 200$ each at a premium of $10 \%$ redeemable at par.
Pass the journal entries for the balances disclosed in the balance sheet at the time of the dissolution of a partnership firm.
$(i)$ Bad debt reserve
$(ii)$ Depreciation fund
$(iii)$ Discount reserve on debtors.
View full solution →$(i)$ Bad debt reserve
$(ii)$ Depreciation fund
$(iii)$ Discount reserve on debtors.
In which circumstances court can pass the order for dissolution of a firm ? Explain
From the following information of Krina Company, calculate cash flow from operating activities :
View full solution →| Particulars | $31-03-2018$ | $31-03-2017$ |
| Profit and loss account | $89,000$ | $64,000$ |
| General reserve | $34,000$ | $18,000$ |
| Taxation provision | $22,000$ | $23,000$ |
| Depreciation | $28,000$ | $16,000$ |
| Goodwill | $15,000$ | $19,000$ |
| Debtors | $38,000$ | $18,000$ |
| Creditors | $45,000$ | $22,000$ |
| Bills receivables | $8,000$ | $12,000$ |
| Bills payables | $9,000$ | $15,000$ |
From the following details of Umiya Company Ltd. determine the transaction influencing operating profit and cash flow from investing activities :
View full solution →| Particulars | Amt. (₹) | Particulars | Amt. (₹) |
| Opening balance of furniture | $12,00,000$ | Sale of furniture | $4,00,000$ |
| Closing balance of furniture | $18,00,000$ | Book value of furniture sold | $3,20,000$ |
| Depreciation on furniture | $2,00,000$ |
From the following information of ‘Bharat® Company Ltd. Calculate debtors turnover and collection period in days. What will be answer if collection period is calculatied in terms of weeks and months $?\ ($Assume $360$ days of the years$)$
View full solution →| Particulars | Amt. (₹) | Particulars | Amt. (₹) |
| Total Sales | $4,50,000$ | Credit Sales | $3,65,000$ |
| Opening debtors | $70,000$ | Closing debtors | $50,000$ |
| Opening bills-receivables | $20,000$ | Closing bills-receivables | $6,000$ |
| Opening creditors | $45,000$ | Closing creditors | $48,000$ |
Calculate stock turnover ratio from the following information of ‘Yash’ company Ltd.
View full solution →| Particulars | Amount (₹) |
| Opening stock | $2,00,000$ |
| Sales | $40,00,000$ |
| Purchase expenses | $1,00,000$ |
| Closing stock | $1,50,000$ |
| Purchases | $22,00,000$ |
| Wages | $2,50,000$ |
From the following information prepare comparative profit-loss statement :
View full solution →| Particulars | $31-3-2019 (₹)$ | $31-3-2018 (₹)$ |
| Sales revenue | $30,00,000$ | $18,00,000$ |
| Net purchase for resale | $18,00,000$ | $12,00,000$ |
| Changes in stock | $1,00,000$ | $1,00,000$ |
| Other expenses | ||
| $(\%$ of cost of sales$)$ | $10\%$ | $12\%$ |
| Income-tax | $30\%$ | $30\%$ |
Following is the trial balance of Aroma Ltd. as on $31-3-2019 :$
Additional information :
Provision for tax $₹ 80,000$
Prepare final accounts of the company as per Schedule $- III$ of companies Act, $2013.$
View full solution →| Balance Sheet as on $31-3-2019$ | ||
| Particulars | Debit (₹) | Credit (₹) |
| Inventories | $1,10,000$ | $-$ |
| Fixed assets-tangible | $8,00,000$ | $-$ |
| $5000$ equity shares of | ||
| $₹ 100$ each | $-$ | $5,00,000$ |
| Sales | $-$ | $7,50,000$ |
| Other income | $-$ | $20,000$ |
| Employee benefit expense | $1,30,000$ | |
| Long term borrowings | $3,50,000$ | |
| Finance costs | $17,500$ | $-$ |
| Trade payables | $-$ | $1,00,000$ |
| Trade receivables | $40,000$ | |
| Cash and bank balance | $60,000$ | |
| Depreciation | $22,500$ | |
| Cost of goods sold | $4,00,000$ | |
| Non-current investments | $1,40,000$ | |
| $17,20,000$ | $17,20,000$ | |
Provision for tax $₹ 80,000$
Prepare final accounts of the company as per Schedule $- III$ of companies Act, $2013.$
Heet and Deep are partners sharing profit-loss in their capital ratio. From the following information prepare their final accounts :
Trial Balance of Partnership Firm of Heet and Deep as on $31-3-2018$
Adjustments :
$(1)$ Clossing stock is of $₹ 21,000 ,$ in which stock of stationery of $₹ 2,000$ is included.
$(2)$ On machinery, depreciation rate is to be incresed upto $10 \%$.
$(3)$ Credit sales of $₹ 1,000$, is recorded in the purchase return book by mistake.
$(4) \frac{1}{4}$ share of advertisement expense is to be carry forwarded to the next year.
View full solution →Trial Balance of Partnership Firm of Heet and Deep as on $31-3-2018$
| Debit Balance | Amt. (₹) | Credit Balance | Amt. (₹) |
| Drawings : | Capital accounts : | ||
| Heet | $7,500$ | Heet | $1,40,000$ |
| Deep | $5,000$ | Deep | $1,20,000$ |
| Opening stock | $15,000$ | Sales | $1,20,000$ |
| Purchase | $80,000$ | Goods return debit | $2,000$ |
| Goods return credit | $3,000$ | Payables | $79,000$ |
| Receivables | $27,400$ | Salary outstanding | $700$ |
| Salary $($upto $28-2-2018)$ | $13,200$ | Loan of Heet | $30,000$ |
| Machinery | $71,760$ | Discount received | $6,600$ |
| Depreciation on machine | $6,240$ | Bank overdraft | $2,800$ |
| Building | $80,000$ | Current account : | |
| Wages | $1,600$ | Deep | $14,000$ |
| Insurance premium | $1,800$ | ||
| Discount allowed | $3,200$ | ||
| Interest on loan | $1,200$ | ||
| Furniture | $87,000$ | ||
| Stationery expense | $7,000$ | ||
| Advertisement expense | $36,000$ | ||
| Cash balance | $51,200$ | ||
| Current account : Heet | $17,000$ | ||
| $5,15,100$ | $5,15,100$ |
$(1)$ Clossing stock is of $₹ 21,000 ,$ in which stock of stationery of $₹ 2,000$ is included.
$(2)$ On machinery, depreciation rate is to be incresed upto $10 \%$.
$(3)$ Credit sales of $₹ 1,000$, is recorded in the purchase return book by mistake.
$(4) \frac{1}{4}$ share of advertisement expense is to be carry forwarded to the next year.
Hari Machine Limited issues $12,00,000$ equity shares of $₹ 10$ each on which amount was payable as under :
$₹ 3$ per share on application
$₹ 4$ per share on allotment
$₹ 3$ per share on first and final call.
Company received application for $14,70,000$ shares from public. Excess applications were rejected and money paid on them was refunded.
Apurva, who was alloteed $2,000$ shares, did not pay allotment and final call money. Aasha, who was alloted $1,200$ shares, did not pay final call money.
Company forfeited all the shares on which calls were unpaid and reissued all forfeited shares at $₹ 7$ per share as fully paid up.
Pass necessary journal entries in the books of company for above transactions (Narration not required).
View full solution →$₹ 3$ per share on application
$₹ 4$ per share on allotment
$₹ 3$ per share on first and final call.
Company received application for $14,70,000$ shares from public. Excess applications were rejected and money paid on them was refunded.
Apurva, who was alloteed $2,000$ shares, did not pay allotment and final call money. Aasha, who was alloted $1,200$ shares, did not pay final call money.
Company forfeited all the shares on which calls were unpaid and reissued all forfeited shares at $₹ 7$ per share as fully paid up.
Pass necessary journal entries in the books of company for above transactions (Narration not required).
Anjali Ceramic Limited issued $3,00,000 $equity shares of $₹ 10$ each at a premium of $₹ 150$ per share. Amount called up per share was as under :
On application $₹ 74 ($including $₹ 70$ for premium$)$
On allotment $₹ 44 ($including $₹ 40$ for premium$)$
On final call $₹ 42 ($including $₹ 40$ for premium$)$
Company received application for $3,00,000$ shares. All amnunts due were received except final call on $2000$ shares held by Ashok. Compiti: forfeited Ashok's shares after carrying out necessary formalities and reissued those shares to Bhavika as fully paid up at $₹ 80$ per share.
Pass necessary journal entries for above transactions in the books of company (Narration not required).
View full solution →On application $₹ 74 ($including $₹ 70$ for premium$)$
On allotment $₹ 44 ($including $₹ 40$ for premium$)$
On final call $₹ 42 ($including $₹ 40$ for premium$)$
Company received application for $3,00,000$ shares. All amnunts due were received except final call on $2000$ shares held by Ashok. Compiti: forfeited Ashok's shares after carrying out necessary formalities and reissued those shares to Bhavika as fully paid up at $₹ 80$ per share.
Pass necessary journal entries for above transactions in the books of company (Narration not required).
Harita, Anita and Rita are partners sharing profit and loss in the ratio of $4: 3 : 2$. Balance sheet of the firm as on $31-3-2017$ was as under :
Harita retired on $1-4-2017.$ Terms of retirement is as under :
$(1)$ Value of I and-building is ₹ $1,80,000$
$(2)$ Value of machinery is to be reduced by $₹ 15,000$
$(3)$ Provision for doubtful debt is to be kept at $10 \%$ on debtors.
$(4)\ ₹ 5,000$ is not payable to creditor.
$(5)$ Valuation of Goodwill is ₹ $1,80,000$
$(6)$ New profit-loss sharing ratio of Anita and Rita is $2: 1$.
$(7)\ ₹ 20,000$ are to be paid to Harita and balance will be kept as loan.
Prepare Revaluation Account, Partners' Capital Accunt and Balance Sheet after retirement.
View full solution →Harita retired on $1-4-2017.$ Terms of retirement is as under :
$(1)$ Value of I and-building is ₹ $1,80,000$
$(2)$ Value of machinery is to be reduced by $₹ 15,000$
$(3)$ Provision for doubtful debt is to be kept at $10 \%$ on debtors.
$(4)\ ₹ 5,000$ is not payable to creditor.
$(5)$ Valuation of Goodwill is ₹ $1,80,000$
$(6)$ New profit-loss sharing ratio of Anita and Rita is $2: 1$.
$(7)\ ₹ 20,000$ are to be paid to Harita and balance will be kept as loan.
Prepare Revaluation Account, Partners' Capital Accunt and Balance Sheet after retirement.
Dhruva and Prakash are partners in a firm sharing profit and loss in the ratio of $3 : 2$ Balance Sheet of their firm as on $31-3-2017$ is as under :
They admitted Pranshi as a new partner on $1-4-2017$ on the following conditions :
$(1)$ Pranshi will bring ₹ $10,00,000$ as he capital and $₹ 2,00,000$ as her share of goodwill in cash.
$(2)$ Value of land-building is to be increased by $₹ 1,60,000$.
$(3)$ Value of machinery is to be reduced up to ₹ $3,20,000$.
$(4)$ Provision for doubtful debt is to be kept $10 \%$ on debtors.
$(5)$ Provision for outstanding repairing expense is to be made $₹ 16,000$
$(6)$ New profit and loss sharing ratio of all partners is to be kept at $2: 1: 2$.
From the above particulars, prepare Revaluation account, Partners' capital account, Cash-bank account and new balance sheet after admission.
View full solution →They admitted Pranshi as a new partner on $1-4-2017$ on the following conditions :
$(1)$ Pranshi will bring ₹ $10,00,000$ as he capital and $₹ 2,00,000$ as her share of goodwill in cash.
$(2)$ Value of land-building is to be increased by $₹ 1,60,000$.
$(3)$ Value of machinery is to be reduced up to ₹ $3,20,000$.
$(4)$ Provision for doubtful debt is to be kept $10 \%$ on debtors.
$(5)$ Provision for outstanding repairing expense is to be made $₹ 16,000$
$(6)$ New profit and loss sharing ratio of all partners is to be kept at $2: 1: 2$.
From the above particulars, prepare Revaluation account, Partners' capital account, Cash-bank account and new balance sheet after admission.
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