The debit balance of profit and loss account should be

X, Y and Z are partners sharing in the ratio 4 : 3 : 3. X retires and the new profit ratio is 3 : 7. Goodwill of the firm is valued at Rs. 20,000. What will be the journal entry?

The net profits of a business are Rs. 1,50,000, Rs. 1,75,000 and Rs. 2,75,000 in the last 3 years. These include an investment income @ 20% p.a. of Rs. 20,000 every year, but exclude the annual insurance premium payable Rs. 10,000. Goodwill is to be valued at 1½ year purchase of average profits of 3 years. Calculate the value of goodwill.

C is a new partner in a firm consisting of partners A and B. He adds Rs. 150,000 as his 1/4^th share in profits. The capitals of other partners are to be adjusted on the basis of C's contribution and profit share. Find the amount to be added by A and B, if their initial capital amounts were Rs. 180,000 and Rs. 200,000, respectively.

Depreciation charged on machinery is Rs. 40,000. The correct entry is

A sum of Rs. 25,000 is deposited in State Bank of India. The correct entry is

A cheque received from a debtor, Rahul, is of Rs. 9,800 in full settlement of Rs. 10,000. The correct entry is

An old furniture is sold for Rs. 5,000 to Mr. Adarsh in cash. The correct entry is

A B/R, received from Mr. A is endorsed in favour of Mr. B for Rs. 3,000. The correct entry is

A cheque of Rs. 6,000 is received from Mr. Sam (our tenant) on account of rent. The correct entry is

Every banking company incorporated in India is required to transfer at least ________of its profit to the reserve fund.

Form B of the third schedule gives the format of a

________ is/are related to inter-bank transactions.

Schedule 17 enclosed to the bank balance sheet relates to

Rahul invested Rs. 70,000 in a bank at the rate of 6.5% p.a simple interest rate. He received Rs. 85,925 after the end of term. Find out the period for which sum was invested by Rahul.

__________ can be defined as a sequence of periodic payments (or receipts) regularly over a specified period of time.

By calculating the present value of an ordinary annuity,

A school is planning to purchase a bus worth Rs. 5,00,000 after 4 years. They have planned to make savings right from this year. Calculate the yearly savings they are required to make to purchase the bus, if the return on investment is 12%. (Take annuity table value up to 3 places.)

GASB stands for

Accounting standards are issued by

Which of the following is/are the advantage(s) of Accounting Standards?

Accounting standards standardize diverse accounting policies with a view to

As per AS 2, the cost of inventories should comprise

An entity under AS 10 should disclose the information relating to

____________ is presented by a parent (holding company) to provide financial information about the economic activities of the group as a single economic activity.

The objective of _________ is to ensure that approximate recognition criteria and measurement bases are applied to provision contingent liabilities and sufficient information is disclosed in the notes to the financial statements to enable users to understand their nature, timing and amount.

Forex management

A/An ____ price is the rate at which the client/market is prepared to buy a specific currency pair in the forex trading market.

Exchange rate is the value of currency for the purpose of conversion to other currency.

The ask-bid spread depends upon the breadth and depth of the market for that currency and the volatility of the currency.

A _______ is a price quotation to deliver the currency in future.

The forward rate (60 days) for the rupee is 49.05/$, whereas the spot rate for it is 48.20/$. The forward discount on Indian rupee will be

The forward rate (60 days) for the rupee is 47.80/$ and the spot rate for it is 48.20/$. The forward premium on it will be

Which of the following is a liability of a firm?

Which of these transactions will not be recorded in cash book?

Cheques received but deposited on the next day are recorded in

Which of these is not a special purpose journal?

Journal Entries which pertain to outstanding entries, prepaid entries and depreciation entries are called

Commission received in advance is of the nature of

Personal accounts can take the form of

Personal Account shows the credit balance of

The basic concept(s) related to Profit and Loss Account is/are

The underlying accounting principle(s) necessitating amortization of intangible asset(s) is/are

X Ltd. purchased goods for Rs. 5 Iakh and sold 9/10^th of the value of goods for Rs. 6 Iakh. Net expenses during the year were Rs. 25,000. The company reported its net profit as Rs. 75,000. Which of the following concepts is violated by the company?

Depreciating fixed assets over their useful life is an example of which of the following concepts/conventions?

The amount spent in order to produce and sell the goods and services which produce the revenue is called

Given:

Assets at the end

Liabilities at the end| Rs. 50,000

Rs. 65,000

Rs. 6,000|

Calculate the capital at the end.

A had a capital of Rs. 75,000. He also had goods amounting to Rs. 15,000 which he had purchased on credit and the payment had not been made. The value of the total assets of the business is

When bill discounted with the bank is dishonoured,

Which of these is not an essential feature of a bill of exchange?

Drawee means a person who

The Acceptor of Bills of Exchange is the

Bills receivable account is a

Dishonour of cheque is recorded in

A has discounted a 3 month’s bill @ 10% p.a. from bank and has been given a credit of Rs. 11,700 but the bill was dishonoured and a notary charge of 50 was paid by bank. The amount by which A’s account will be debited by bank is

Raja’s acceptance to Dinesh for Rs. 8,000 renewed @ 18% per annum for 3 months on the condition that Rs. 2,000 are paid in cash immediately. The amount of interest will be

Ram and Shyam were friends and in need of funds. On 1.1.2006, Ram drew a bill for Rs. 2,00,000 for six months on Shyam. On 4.1.2006, Ram got the bill discounted at 10% p.a. and remitted 40% of the proceeds to Shyam. The cheque sent to Shyam is for

Legal expenses incurred in defending a suit for breach of contract to supply goods come under

Capital expenditure is an expenditure which

Which of the following will lead to understatement of net profit?

Which of the following is not a process in the preparation of a trial balance?

The trial balance of M/s Ram & Co. shows closing stock of Rs. 30,000. It will be recorded in

Balances of accounts are transferred to

Which of the following errors is an error of principle?

While checking the accounts of ABC, the following discrepancies were noticed, even though the Trial Balance was made to balance by putting the difference to Suspense Account.

(i) Sales day book for the month of June 2012 was found overcast by Rs. 7,000. (ii) A credit purchase of Rs. 3,000 was omitted to be recorded in the days book. (iii) Rs. 4,300 received from A credited to A's account as Rs. 3,400. (iv) Purchase of Office Equipment worth Rs. 5,000 included in trading purchases.

From the above details, what would have been the difference in Trial Balance which was made to balance by opening Suspense Account?

Which of the following errors is an error of omission?

The law limits the commission payable on the issue of debentures to

There must be at least __________ gap between two calls.

The amount of calls in arrears is reduced from ___________ to arrive at __________.

Premium on issue of shares is shown under the head

Capital Reserve comes under

________ is stated in the Memorandum of Association as the share capital of the company.

Subscribed capital refers to the part of the issued capital that has actually been subscribed by the public and subsequently allotted to them by the directors of the company and is

The premium on issue of shares must be treated as

Srei Ltd. issued Rs.1,25,000 equity shares of Rs. 10 each. The amount payable on these shares is as follows:

– 2 on appIication – 3 on allotment – 2 onfirstcalI – Balance in final call

Suman, who has Rs. 5,000 shares, paid full value of shares with the allotment money. The amount to be debited to the bank account at the time of receipt of first call money will be

Dividend paid before the end of the financial year is known as

Interest accrued but not due means

Which among the following statements is not correct?

A purchase of Rs. 6800 has been made by the firm but the amount has been posted to creditor’s account for Rs. 6000. For rectification, the journal entry would be

Ratio analysis focuses on

_________ is/are interested in the operational efficiency, earning capacities and financial health of the business.

__________ give some yardstick to measure the profit in relative terms with reference to sales, assets or capital employed.

_______ ratio is also known as overall profitability ratio or return on capital employed.

Return on Shareholder’s Funds =

A ________ ratio is an indicator of overtrading of total assets, and a ________ ratio reveals idle capacity.

________ is the ratio of total current assets to total current liabilities.

________ ratio is also known fixed charges cover for interest as well as principal amount.

_________ is the indicator of long term solvency position of an enterprise.

The ideal quick ratio is

An amount of Rs. 6,000 is credited twice in the bank column of cash book. Taking credit balances as per pass book as the starting point, what adjustment needs to be done to arrive at the balance as per cash book?

Credit balance as per cash book means

If you start with cash book favourable balance in Bank Reconciliation Statement, which item will be added?

A bank account is a personal account and the account-holders record their transaction with the bank in a similar manner as they do with any other person.

The money deposited with bank is _______ to bank account while money withdrawn from the bank is _______ to bank account.

Providing a _________ is the bank's way of keeping the customers informed of the entries made in their accounts.

When the interest and dividend are credited by the bank, the amount is recorded in the bank column of cash book

Bank reconciliation statement as on 30.6.2006

The balance to be shown in the balance sheet is

Purchase of Rs. 1,870 by cheques has been wrongly posted in the cashbook as Rs. 1,780. This has the effect of

Debit balance as per cash book is Rs. 3,000. Cheque issued but not presented for payment Rs. 500, interest collected by bank Rs. 400 and deposit by a customer directly into his bank Rs. 250. Bank reconciliation statement will show balance of ____ as per passbook.

A bond of face value Rs. 5,000 carries a coupon interest rate of 12%. It is quoted in the market at Rs. 4,500. What is the current yield of the bond?

A project requires an initial investment of Rs. 20,000 with annual cashflow of Rs. 4,000. Compute the pay-back period.

Time value of money means

Internal rate of return is the rate of __________ in NPV equation at which the present value of cash flows of a project equals its initial outlay.

Which of the following is/are the advantage(s) of NPV and IRR methods?

Sensitivity analysis for NPV determination identifies

Mr. Rishi sells goods at 20% above cost. His sales were Rs. 10,20,000 during the year. However, he sold damaged goods for Rs. 20,000 costing Rs. 30,000. This sale is included in Rs. 10,20,000. The amount of gross profit is

Somnath Enterprises wishes to earn a 20% profit margin on selling price. How much should they charge on cost to achieve the required margin?

The following details relate to a trading concern for the year 2010:

Opening stock Rs. 4,000. Purchases and sales during the year Rs. 36,000 and Rs. 35,000, respectively. Profit on sales is 20%. 50% of the closing stock was found to be obsolete and estimated to fetch only 50% of cost. The value for the closing stock at the end of the year will be

At the end of the year 2008-09, the ledger of a firm shows the following balances in their balance sheet:

The total balance sheet would be

Balance sheet total will be

From the following details, find out the amount to be debited to Profit and Loss Account as provision for bad & doubtful debts during 2012-13:

Debtors Rs. 30,000 as on 31.03.2013; Bad debt during the year Rs. 1,500; Provision for bad debts as on 01.04.2012 Rs. 2,000; Provision for doubtful debts to be kept at 5% of total debtors.

Sundry debtors on 31st March, 2006 are Rs. 55,200. Further bad debts are Rs. 200. Provision for doubtful debts is to be made on debtors at the rate of 5% and also, provision of discount is to be made on debtors at the rate of 2%. The amount of provision of doubtful debts will be

The purpose of accounting is to provide information used in

________ are mostly used in scientific and mechanical fields and they provide data in a continuous form.

________ is a compilation of related data records maintained in some pre-arranged order.

The concept of automated banking through Automated Teller machines (ATMs) is the result of

Core bank component includes

(i) financial institution infrastructure (ii) product build (iii) customers management and customers overview (iv) account administration (v) payments (vi) management information

A multiple user computer system is beneficial because

Compilation of related data records maintained in some pre-arranged order is known as

ATMs are capable of