Explain the nature and scope of Financial Accounting. What is the difference between Management Accounting and Financial Accounting?
Define 'Cost of Capital'. How will you determine the Cost of Capital from different sources?
Write short notes on any three of the following: Accounting Standards in India, Double Entry System, Break-even analysis, Cost of debt, Cash Management, Inventory Management.
Define Financial Accounting. Explain the nature and scope of Financial Accounting. Differentiate between Financial Accounting and Management Accounting.
Give the journal entries for various transactions as described.
Based on the trading results provided, calculate P/V Ratio, Fixed Cost, Break-Even Point, profit for a given sales figure, and the sales needed for a desired profit.
Define Financial Accounting. Explain the nature and scope of Financial Accounting. Differentiate between Financial Accounting and Management Accounting.
Explain the objectives of Ratio Analysis. Discuss various ratios used to examine the liquidity and solvency positions of a firm.
What are the factors affecting the cash needs of a firm? Explain the various steps involved in scientific cash management.
What are the basic concepts of financial accounting? Explain their importance.
Prepare a flexible budget for the production at 80% and 100% activity based on the provided data regarding raw materials, direct labour, direct expenses, factory expenses, and administration expenses.
From the given balance sheets of X Ltd., propose a schedule of changes in working capital and a statement of flow of fund.
Write Journal entries of the following: Goods worth 5,000 and Cash 2,000 were stolen by an employee. Provide 15% depreciation on Furniture costing 10,000.
Mention the necessary entries in the books of the buyer as well as the seller when goods are sold on the hire-purchase system.
Prepare the Trading and Profit & Loss Account for the year ended 31st March, 2016 and Balance Sheet as on that date taking into account the provided adjustments.
Differentiate between owned capital and borrowed capital.
What do you understand by receivable management? Explain its importance and the factors affecting the size of receivables.
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.
Shiva Ltd. invited applications for equity shares with payments in installments. Pass the Journal entries of the transactions assuming all sums have been received.
Eti Ltd. issued equity shares with payments in installments. Some shares were forfeited due to non-payment and reissued at a discount. Pass the necessary Journal entries in the books of Eti Ltd.
Difference between an income and expenditure account and receipts and payment account.
A firm purchases a plant for a sum of Rs. 10,000 on 1st January, 1995. Installation charges are Rs. 2,000. Plant is estimated to have a scrap value of Rs. 1,000 at the end of its useful life of five years. You are required to prepare the 'Plant Account' for five years charging depreciation according to straight line method.
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.
What do you mean by Accounting Assumptions? Explain fully.
Chandra Ltd. purchased a second-hand machine for Rs. 8,000 on 1st April, 2008. They spent Rs. 3,500 on its overhaul and installation. Depreciation is written off 10% p.a. on the original cost. On 30th June, 2011, the machine was found to be unsuitable and sold for Rs. 6,500. Prepare the Machinery Account from 2008 to 2011, assuming that accounts are closed on 31st December.
What do you mean by Final Accounts? What is their necessity?
What is Bank Reconciliation Statement? Explain the purpose of preparing such a statement.
What is a Trading Account? How does it differ from a Manufacturing Account?
Megha and Swati share profits & losses equally. The Balance Sheet of the partners stood at 31st December 2011 as follows: Liabilities - Creditors Rs. 23,000; Loan by Swati Rs. 30,000; Megha's Capital Rs. 10,000; Swati's Capital Rs. 40,000. Assets - Buildings Rs. 50,000; Debtors Rs. 31,000; Stock Rs. 22,000. They decided to dissolve the Partnership. The realisation of Assets were Building 60%, Debtors 70%, Stock 75%. Prepare necessary accounts.
What do you understand by Amalgamation of companies? What accounting entries are made in the books of Amalgamating company and Amalgamated company?
X Limited adopts FIFO method. From the detail given below, ascertain the value of cost of sales and closing stock under C.P.P. method.
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.
What do you understand by amalgamation of Companies? Discuss the merits and demerits of amalgamation.
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 accounting entries are made in the books of Amalgamating company and Amalgamated company?