Accountancy : Company Accounts and Analysis of Financial Statements 2010 CBSE [ Delhi ] Set I
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Q1
State the basis of accounting on which a Receipts and Payments Account is prepared in case of a not for profit organisation.
Marks:1View AnswerAnswer:
Cash basis of accounting.
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Q2
What is meant by ‘Unlimited liability of a Partner’?
Marks:1View AnswerAnswer:
It means that the personal assets of the partner can be utilised for paying firm’s debts, if the assets of a partnership firm are not sufficient to pay its liabilities.
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Q3
State the need for treatment of goodwill on admission of a partner.
Marks:1View AnswerAnswer:
To compensate the sacrificing partners for their sacrifice in favour of new partner.
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Q4
What are preliminary expenses?
Marks:1View AnswerAnswer:
Expenses incurred prior to incorporation of a company.
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Q5
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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Q6
State one objective of ‘Financial Statement Analysis.’
Marks:1View AnswerAnswer:
To assess profitability of the firm.
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Q7
Under which type of activity will you classify ‘Issuing 9% Debentures’ while preparing cash flow statement?
Marks:1View AnswerAnswer:
It will be classified under Financing Activity.
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Q8
Declaration of final dividend would result in inflow, outflow or no flow of cash. Give your answer with reason.
Marks:1View AnswerAnswer:
No flow of cash as dividend is declared only and not yet paid.
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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 2,65,000 received as subscriptions. The following additional information is provided.Details
Rs
Subscriptions outstanding on
40,000
Subs. received in advance on 31st march 2009
30,000
Subs. received in advance on 31st march 2008
12,000
Marks:3View AnswerAnswer:
Details
Rs
Rs
Subscription received during the year (2008-09)
2,65,000
Add. Received in advance for the year (2008-09)
12,000
Less. Received for the period 2007-08
(40,000)
Less. Received for the period 2009-10
(30,000)
(58,000)
Subscription due for the year
2,50,000
(250 x 1,000)
Outstanding for the year 2008-09
43,000
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Q10
S.S.S. Ltd. has a paid up share capital of Rs 60,00,000 and a balance of Rs 15,00,000 in the Securities Premium Account. The company management do not want to carry over this balance. State the purposes for which this balance can be utilised.
Marks:3View AnswerAnswer:
As per section 78 of Indian Companies Act 1956, the amount of securities premium may be utilised for:
(a) Issuing fully paid bonus shares.
(b) Writing off preliminary expenses of the company.
(c) Buy back of own shares as per section 77- A.
