What is Financial Accounting? Describe its nature and scope.
What is ratio analysis? Explain the following ratios: Current ratio, Liquid ratio, Operating Ratio and Operating Profit ratio, Net profit ratio, Return on investment.
What do you mean by the concept of working capital?
What is Financial Accounting? Describe its nature and scope.
Why are Financial Accounts prepared? With your own imaginary figures, prepare financial accounts and prove its relevance.
What is ratio analysis? Explain the following ratios: Current ratio, Liquid ratio, Operating Ratio and Operating Profit ratio, Net profit ratio, Return on investment.
Explain the nature and scope of Financial Accounting. What is the difference between Management Accounting and Financial Accounting?
Explain and illustrate the following ratios in the interpretation of financial statement: Current Ratio, Gross Profit Ratio, Stock turnover, Operating Ratio.
Define capitalization. Explain the two main principles of capitalization.
Explain the nature and scope of Financial Accounting. What is the difference between Management Accounting and Financial Accounting?
Explain and illustrate the following ratios in the interpretation of financial statement: Current Ratio, Gross Profit Ratio, Stock turnover, Operating Ratio.
Define 'Cost of Capital'. How will you determine the Cost of Capital from different sources?
Define Financial Accounting. Explain the nature and scope of Financial Accounting. Differentiate between Financial Accounting and Management Accounting.
What is 'fund flow statement'? Why is it prepared? Explain the preparation of 'Schedule of changes in working capital' and 'fund flow statement'.
Explain the concept and various components of working capital. What factors would you consider in planning the working capital requirements of a firm?
Define Financial Accounting. Explain the nature and scope of Financial Accounting. Differentiate between Financial Accounting and Management Accounting.
Explain the nature and objectives of Financial Management. Discuss various long-term sources of financing.
What are the factors affecting the cash needs of a firm? Explain the various steps involved in scientific cash management.
Analyse the given transactions and state the nature of accounts involved, specifying which account will be debited and credited according to the traditional approach.
Define economic order quantity and cost of debts.
What is meant by capitalization? Explain the causes and consequences of overcapitalization and undercapitalization.
Prepare the Trading and Profit & Loss Account for the year ended 31st March, 2016 and Balance Sheet as on that date considering the provided adjustments.
Analyse transactions and determine the nature of accounts, specifying which account will be debited and which will be credited according to the traditional approach.
Explain how the following transactions would be recorded in a Cash Book with Cash and Bank Columns: Deposit of Cash into Bank, Withdrawal of money from Bank for office use, Deposit of cheques (received from others) into Bank, Dishonour of cheques deposited into Bank.
What is the need and significance of Depreciation? Differentiate, with suitable examples, between Straight Line Method and Diminishing Balance Methods of charging depreciation.
Define goodwill. How does it arise? Explain the treatment of goodwill in partnership accounts on the admission of a new partner: (a) When he brings cash for his share of goodwill and cash is retained in business (b) When he does not bring cash for his share of goodwill. Illustrate your answer by means of Journal entries.
P, Q & R are partners in a firm. The balance sheet of the firm as on 31st Dec. 1984 is as follows: Liabilities Rs. Assets Rs. Sundry creditors 16,000 Cash 2,000 Reserve fund 3,000 Machinery 10,000 Profit & Loss 1,500 Furniture 4,000 Capital A/c: Sundry debtors 10,000 P 4,000 R's capital A/c 1,500 Q 3,000 27,500 27,500 R is insolvent and the partners can realize only Rs. 600 from his property. It was decided to dissolve the firm. The assets of the firm realized - Machinery Rs. 7,500, Furniture Rs. 1,600, Debtors Rs. 6,000. Creditors were paid Rs. 15,200 in full payment. Applying Garner vs. Murray rule, you are required to prepare: (i) Pass journal entries and show ledger accounts when the partner's capitals are fixed. (ii) Show ledger accounts when the partner's capitals are not fixed.
What is depreciation? What is the need for providing depreciation? Describe two methods of providing depreciation. Also explain the effects of depreciation on P&L Account and Balance Sheet.
What do you mean by Final Accounts? What is their necessity?
Ankit Ltd. issued 8,000 equity shares of Rs. 10 each, payable as Re. 1 on application, Rs. 3 on allotment, Rs. 2 on first call and the balance on final call. But Ranu, who holds 100 equity shares, did not pay first and final call amount on these shares and Subhash, who holds 60 shares, did not pay final call amount. All other amounts were duly received. Pass the necessary Journal entries in the books of the company.
What is Bank Reconciliation Statement? Explain the purpose of preparing such a statement.
How would the following errors in the books of account: Rs. 5000 received from a customer posted to credit of partner; Rs. 2500 sales to Ahmed, posted the debit of Commission Account; The Sales Returns Book was undercost by Rs. 2000; Rs. 6000 paid for furniture was debited to Repairs Account; Closing stock was overcost by Rs. 12000; Rs. 173 discount allowed has been posted as Rs. 317.
Dr. Gupta commenced practice on 1st January, 2010. His receipts and Payments Account for the year was as follows: Receipts - To Cash introduced Rs. 10,000; To Visits Rs. 32,000; To Receipts from dispensing Rs. 20,000; To Miscellaneous Receipts Rs. 200. Payments - By Furniture Rs. 9,000; By Purchase of Drugs Rs. 6,000; By Rent Rs. 3,000; By Conveyance Rs. 2,000; By Lighting Rs. 500; By Journals Rs. 400; By Drawings Rs. 24,000; By Balance end Rs. 13,300. Amounts still receivable on account of visits and dispensing are Rs. 2000 and Rs. 1200 respectively, salary of compounder still payable is Rs. 400, 40% of conveyance is for domestic purposes. Stock of drugs still on hand is Rs. 1600, amount still payable for their purchase is Rs. 400. Furniture is subject to depreciation at 10%. Prepare the Receipts and Expenditure of Dr. Gupta for 2010 and his Balance Sheet as at its end.
Z Ltd. follows LIFO system. From the particulars given below, ascertain the cost of sales and closing inventory under CPP method.
PLtd. acquired 75% of shares of A Ltd. on 31st Dec 2019 when the P & L a/c was 6000(Cr). Later on A Ltd. purchased all the shares of B Ltd. on 31st Dec 2020, when the profit of B Ltd. was 4,800(Cr). Prepare the consolidated balance sheet.
Define holding company and subsidiary company. What is consolidated Balance Sheet and how is it prepared?
The following are the balance sheet of P Ltd. and S Ltd. as on 31st March, 2020. On 1st April, 2020, P Ltd. takes over S Ltd. on the following terms: (i) P Ltd. will issue 3,50,000 equity shares of 10 each at par to the equity shareholders of S Ltd. (ii) P Ltd. will issue 11,000, 11% preference shares of 100 each at par to the preference shareholders of S Ltd. (iii) The debentureholders of S Ltd. will be converted into an equal number of 12.5% debentures of the same denomination. (iv) The liquidation expenses of S Ltd. amounting 40,000 will be paid by P Ltd. in cash. (v) The statutory reserves of S Ltd. are to be maintained for two more years. You are required to give journal entries in the books of P Ltd. assuming that the amalgamation is in the nature of merger.
X Company having a capital of 5,000 equity shares of 10 of each, went into voluntary liquidation on 31st December, 2019. 40,000 was realized from its assets excluding amount realized by sale of securities held by the secured creditors. The following was the position: Secured creditors (assets realized 10,000), Unsecured creditors (including pref. creditors of 4,000), Debentures having a floating charge on the assets of the company, Liquidation expenses, Liquidator's Remuneration 3% on the assets realized and 2% on the amount paid to unsecured creditors. Prepare final statement of Account of liquidator.
Define a holding and subsidiary company and state what documents relating to subsidiary company should be attached to the Balance Sheet of holding company.
What do you mean by goodwill? Discuss in brief the various methods of valuation of goodwill.
Calculate the cost of sales adjustment (COSA) from the following data: Opening stock Rs. 20,000 Index No. 100 (Opening) Purchases Rs. 1,60,000 Index No. 110 (Average) Closing stock Rs. 30,000 Index No. 120 (Closing).
