Accountancy : Company Accounts and Analysis of Financial Statements 2010 CBSE [ All India ] Set II
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Q1
Distinguish between Income and Expenditure A/c and Receipts and Payments A/c on the basis of nature.
Marks:1View AnswerAnswer:
1. Receipts and payments a/c is a Real Account.
2. Income and expenditure a/c is a Nominal Account. -
Q2
Where would you record ‘Interest on drawings’ when capitals are fixed?
Marks:1View AnswerAnswer:
Debit side of partner’s current account.
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Q3
A, B and C decided that interest on capitals will be provided to each partner @ 5% p.a. But after one year C wants that no interest on capital is to be provided to any partner. State how C can do this?
Marks:1View AnswerAnswer:
He can do this if it is consented in partnership deed, otherwise he cannot.
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Q4
How does the ‘Quality of products’ affect the goodwill of a firm?
Marks:1View AnswerAnswer:
High quality of products means high sales and profits resulting in high goodwill of the firm.
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Q5
What is meant by ‘Pro-rata allotment of shares’?
Marks:1View AnswerAnswer:
Pro-rata allotment means proportionate allotment of shares. It is done when shares are over subscribed.
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Q6
How is ‘window dressing’ a limitation of Financial Statement Analysis?
Marks:1View AnswerAnswer:
Window dressing implies manipulating financial statements and not showing the actual position. The users are mislead by financial statements and they draw wrong conclusions from it.
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Q7
Under which type of activity will you classify ‘Proceeds from sale of machinery’ while preparing cash flow statement?
Marks:1View AnswerAnswer:
It will be classified under Investing Activity.
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Q8
‘Interest received on debentures’ would result in inflow, outflow or no flow of cash. Give your answer with reason.
Marks:1View AnswerAnswer:
It will result in inflow of cash as interest is received and it is classified under investing activities.
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Q9
From the following information calculate the amount of subscriptions outstanding for the year 2008-09.
A club has 250 members each paying annual subscription of Rs 1,000. The receipts and payments account for the year showed a sum of Rs 1,65,000 received as subscriptions. The following additional information is provided.
Details
Rs
Subscriptions outstanding on 31st March 2008
25,000
Subs. received in advance on 31st march 2009
35,000
Subs. received in advance on 31st march 2008
32,000
Marks:3View AnswerAnswer:
Details
Rs
Rs
Subscription received during the year (2008-09)
1,65,000
Add. Received in advance for the year (2008-09)
32,000
Less. Received for the period 2007-08
(25,000)
Less. Received for the period 2009-10
(35,000)
(28,000)
Total subscription for the year
2,50,000
(250 x 1,000)
Outstanding for the year 2008-09
1,13,000
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Q10
X Ltd obtained a loan of Rs 3,00,000 from IDBI Bank. The company issued 4,000, 9% Debentures of Rs 100 each as a collateral security for the same. Show how these items will be presented in the balance sheet of the company.
Marks:3View AnswerAnswer:
Extract Balance Sheet as on ………….
Liabilities
Rs
Assets
Rs
Secured Loan
(Secured by issue of 4000, 9% Debentures of Rs 100 each as collateral security)
3,00,000
