Accountancy : Company Accounts and Analysis of Financial Statements 2008 CBSE [ DELHI ] Set I
To Access the full content, Please Purchase
-
Q1
Quick ratio of a company is 1.5:1. State giving reason whether the ratio will improve, decline or not change on payment of dividend by the company. Marks:1View AnswerAnswer:
When the company pays dividend the quick ratio of a company improves.
For example, if the quick ratio is 30,000/20,000(= 1.5:1) and the dividend paid is Rs.10,000 then it will be deducted from both the sides Quick Assets (in the form of cash/bank) and Current Liabilities (in the form of proposed dividend). Thus the new ratio will be 2:1. -
Q2
State whether conversion of debentures into equity shares by a financing company will result in inflow, outflow or no flow of cash. Marks:1View AnswerAnswer:
Conversions of debentures into equity shares will inflow the cash in an organisation. -
Q3
Dividend paid by a finance company is classified under which kind of activity while preparing cash flow statement. Marks:1View AnswerAnswer:
Dividend paid by a finance company is classified under Operating Activity. -
Q4
Give two main sources of income of a ‘Not for Profit Organisations’.
Marks:1View AnswerAnswer:
Two main sources of income of a Not for Profit Organisations' are given below:
1. Admission fee of small amount
2. Donation -
Q5
A and B are partners in a firm without a partnership deed. A is an active partnership deed. A is an active partner and claims a salary of Rs. 18,000 per month. State with reasons whether the claim is valid or not.
Marks:1View AnswerAnswer:
It is not valid because in the absence of partnership deed no remuneration is to be paid to any partner for taking part in the conduct of business.
-
Q6
Define gaining ratio.
Marks:1View AnswerAnswer:
Gaining Ratio = New ratio – Old ratio
It is the ratio in which the remaining partners acquire the outgoing partners share. -
Q7
State any two occasions when reconstitution of a partnership first takes place.
Marks:1View AnswerAnswer:
Two occasions when reconstitution of a partnership first takes place are given here :
a) Change in the profit sharing ratio among the existing partners
b) Admission of new partner. -
Q8
Give the meaning of ‘Calls in Arrears’.
Marks:1View AnswerAnswer:
Calls in Arrears:- It is the amount not yet received by the company against the call or calls demanded.
-
Q9
List the major headings on the asset side of the Balance Sheet of a company as per schedule VI Part I of the Companies Act 1956. Marks:3View AnswerAnswer:
The major heading on the asset side of the Balance Sheet as per schedule VI Part I of the Companies Act 1956 is given below: Assets Fixed Assets Investments: Current Assets; Loans and Advances: Miscellaneous- Expenditure: Profit and Loss Account (debit balance: If any) -
Q10
On the basis of the information given below calculate the amount of Stationery to be debited to the ‘Income and Expenditure ‘Account’ of Good Health Sports Club for the year ended 31st March 2007:
-
Stock of Stationery
Creditors for Stationery
1.4.2006
31.3.2007
Rs.
8,000
9,000
Rs.
6,000
11,000
Stationery purchased during the year ended 31.3.2007 was Rs. 47,000.
Marks:3View AnswerAnswer:
Calculation of Amount to be debited in Income and Expenditure account.
Particulars
Amount (Rs.)
Stationery purchased during the year.
Add Opening stock of Stationery (i.e. on 1.4.2006)
Less Closing stock Stationery (i.e. on 31.3.2007)
Less Opening Creditors for Stationery (i.e. on 1.4.2006)
Add Closing Creditors for Stationery (i.e. on 31.3.2007)
47,000
8,000
6,000
9,000
11,000Amount to be debited in Income and Expenditure account.
51,000
-
