Accountancy : Company Accounts and Analysis of Financial Statements 2010 CBSE [ Delhi ] Set III
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Q1
Name the term used for denoting “Excess of income over expenditure.”
Marks:1View AnswerAnswer:
It denotes surplus.
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Q2
A, B and C are partners. They decided that no interest on drawings is to be charged to any partner. But after one year C wants that interest on drawings should be charged to every partner. State how C can do this?
Marks:1View AnswerAnswer:
‘C’ can do this only with the consent of all the partners.
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Q3
Why reserves and surpluses are distributed at the time of reconstitution of partnership firm?
Marks:1View AnswerAnswer:
Reserves and surpluses are kept aside of profits belonging to old partners of earlier years, so they are distributed at the time of reconstitution.
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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 are calls in advance?
Marks:1View AnswerAnswer:
It refers to calls not due, but paid by shareholders in advance. Thus, amount of future calls is received in advance by the company.
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Q6
How the earning capacity of the business is assessed by ‘Financial Statement Analysis.’?
Marks:1View AnswerAnswer:
Efficiency of business is measured in terms of profits. Thus, profitability ratios such as gross profit ratio, operating ratio, net profit ratio etc. are computed to analyse the earning capacity of a business.
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Q7
Under which type of activity will you classify ‘cash received from debtors’ while preparing cash flow statement?
Marks:1View AnswerAnswer:
It will be classified under Operating Activity.
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Q8
Interest paid on debentures would result in inflow, outflow or no flow of cash. Give your answer with reason.
Marks:1View AnswerAnswer:
Interest paid on debentures 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 300 members each paying annual subscription of Rs 1,000. The receipts and payments account for the year showed a sum of Rs 2,85,000 received as subscriptions. The following additional information is provided.Details
Rs
Subscriptions outstanding on
50,000
Subs. received in advance on
30,000
Subs. received in advance on
24,000
Marks:3View AnswerAnswer:
Details
Rs
Rs
Subscription received during the year (2008-09)
2,85,000
Add. Received in advance for the year (2008-09)
24,000
Less. Received for the period 2007-08
(50,000)
Less. Received for the period 2009-10
(30,000)
(56,000)
Subscription due for the year
3,00,000
(300 x 1,000)
Outstanding for the year 2008-09
71,000
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Q10
S.S.S. Ltd. forfeited 1000 equity shares of Rs 100 for the non payment of first call of Rs 20 per share and second and final call of Rs 25 per share. State:
(i) Can these shares be reissued?
(ii) If yes, state the minimum amount at which these shares can be re-issued.
(iii) If these shares were reissued at Rs 50 per share fully paid up, what will be the amount of Capital Reserve?Marks:3View AnswerAnswer:
(i) Yes, these shares can be re-issued.
(ii) These shares can be reissued at the minimum amount of Rs 45,000 (up to the unpaid amount on such shares).
(iii) The amount of capital reserve will be Rs 5,000 (50,000 – 45,000).
