Accountancy : Company Accounts and Analysis of Financial Statements 2008 CBSE [ Delhi ] Set II
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Q1
State two characteristics of a ‘Not for Profit Organisation’. Marks:1View AnswerAnswer:
Two characteristics of a ‘Not for Profit Organisation’ are given here:
(1)The main aim of not-for-profit organizations is not to earn profits but to render different kinds
of services.(2) The examples of not-for-profit organizations are UNICEF , CRY , helpage India etc. -
Q2
Suresh and Ramesh are partners in firm with capitals of Rs. 3,00,000 and 4,00,000 respectively. They do not have a partnership deed. Ramesh wants to share the profits in the ratio of Capitals. State with reasons whether the claim is valid? Marks:1View AnswerAnswer:
In the absence of partnership agreement profits and losses are to be shared equally and not in the ratio of capitals. Hence Ramesh is wrong. -
Q3
What is ‘sacrificing ratio’? Marks:1View AnswerAnswer:
Sacrificing ratio is the difference between old share and new share. -
Q4
State any one of the rights that a newly admitted partner acquires in the firm. Marks:1View AnswerAnswer:
Newly admitted partner has the right to share profits or losses in the agreed ratio. -
Q5
Give the meaning of ‘Calls in Advance’. Marks:1View AnswerAnswer:
It refers to amount paid by allottees for the calls not yet due. -
Q6
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. -
Q7
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. -
Q8
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. -
Q9
On the basis of information given below calculate the amount of medicines to be debited in the ‘Income and Expenditure Account’ of Good Health Hospital for the year ended 31.3.2007: 1.4.2006 Stock of Medicines Creditors for Medicines Rs. 1,75,750 15,06,900 Rs. 1,44,650 18,20,700 Medicine purchased during, the year ended 31.3.2007 were Rs. 60,80,700. Marks:3View AnswerAnswer:
Calculation of Amount to be debited in Income and Expenditure account. Particulars Amount (Rs.) Medicine purchased during the year. Add Opening stock of medicine (i.e. on 1.4.2006) Less Closing stock of medicine (i.e. on 31.3.2007) Less Opening Creditors for medicine (i.e. on 1.4.2006) Add Closing Creditors for medicine (i.e. on 31.3.2007) 60,80,700 1,75,750 (1,44,650) (15,06,900) 18,20,700 Amount to be debited in Income and Expenditure account. 64,25,600 -
Q10
Poonam Ltd forfeited 400, 8% preference shares of Rs. 100 each issued at a discount of 10%, for the non-payment of first call of Rs. 20 each. The second and final call of Rs. 20 per share has not yet been made. The forfeited shares were re-issued at Rs. 44,000 fully paid up. Pass necessary journal entries for the forfeiture and re-issue of shares. Marks:3View AnswerAnswer:
Books of Poonam Ltd Particulars LF Dr. Amount Cr. Amount 8% preference Share Capital a/c Dr To Share forfeiture a/c To discount a/c To Share first call a/c (Being shares forfeited for non payment of first call) 32,000 20,000 4,000 8,000 Bank a/c Dr. To 8% preference Share Capital a/c To securities premium a/c (Being 8% pref. Shares reissued) 44,000 40,000 4,000 Share forfeiture a/c Dr. To capital reserve a/c (Being share forfeiture t/f to capital reserve) 20,000 20,000
