Accountancy : Company Accounts and Analysis of Financial Statements 2010 CBSE [ All India ] Set III
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Q1
State the nature of Income and Expenditure Account.
Marks:1View AnswerAnswer:
Income and expenditure account is nominal in nature.
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Q2
Where would you record interest on drawings when capitals are fluctuating?
Marks:1View AnswerAnswer:
It will be recorded on the debit side of partner’s capital account.
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Q3
State the need for treatment of goodwill on retirement of a partner.
Marks:1View AnswerAnswer:
Retiring partner is entitled to get a share of goodwill for sacrificing share, so treatment of goodwill is needed in case of retirement.
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Q4
How does the factor “location” affect the goodwill of a firm?
Marks:1View AnswerAnswer:
Location as a factor enhances better business and sales.
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Q5
What is meant by issue of shares at par?
Marks:1View AnswerAnswer:
When shares are issued for an amount equal to the face value of share, they are said to be issued at par.
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Q6
How does the objectivity become a limitation of ‘Financial Statement Analysis.’?
Marks:1View AnswerAnswer:
Accounting data is neutral and any conclusion can be drawn from such data. Thus, conclusions are influenced to a certain extent by the personal judgement of the analyst.
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Q7
Under which type of activity will you classify ‘issue of equity shares at premium’ while preparing cash flow statement?
Marks:1View AnswerAnswer:
It will be classified under Financing Activity.
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Q8
Purchase of patents would result in inflow, outflow or no flow of cash. Give your answer with reason.
Marks:1View AnswerAnswer:
Purchase of patents would result in outflow of cash as it reduces the cash balance.
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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 2,15,000 received as subscriptions. The following additional information is provided.Details
Rs
Subscriptions outstanding on 31st March 2008
45,000
Subs. received in advance on 31st March 2009
35,000
Subs. received in advance on 31st March 2008
12,000
Marks:3View AnswerAnswer:
Details
Rs
Rs
Subscription received during the year (2008-09)
2,15,000
Add. Received in advance for the year (2008-09)
12,000
Less. Received for the period 2007-08
(45,000)
Less. Received for the period 2009-10
(35,000)
(68,000)
Subscription due for the year
2,50,000
(250 x 1,000)
Outstanding for the year 2008-09
1,03,000
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Q10
X Ltd obtained a loan of Rs 6,00,000 from IDBI Bank. The company issued 7,000, 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 7000, 9% Debentures of Rs 100 each as collateral security)
6,00,000
