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CUET (UG) entrance exam Question Bank Solutions for Accountancy

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Accountancy
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Where is the Interest in drawings recorded in the Current Account?

[2] Accounting for Partnership
Chapter: [2] Accounting for Partnership
Concept: undefined >> undefined

Chaman, Raman, and Suman are partners sharing profits in the ratio of 5:3:2. Raman retires. The new profit-sharing ratio between Chaman and Suman will be 1:1. The goodwill of the firm is valued at ₹1,00,000. Raman's share of goodwill will be adjusted.

[3] Reconstitution of Partnership
Chapter: [3] Reconstitution of Partnership
Concept: undefined >> undefined

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Which of the following will not be recorded in the Current Account?

[2] Accounting for Partnership
Chapter: [2] Accounting for Partnership
Concept: undefined >> undefined

Pick the odd one out.

[10] Accounting Using Database Management System (DBMS)
Chapter: [10] Accounting Using Database Management System (DBMS)
Concept: undefined >> undefined

Right issue of shares is issued to ______

[5] Accounting for Share and Debenture Capital
Chapter: [5] Accounting for Share and Debenture Capital
Concept: undefined >> undefined

Identify the journal entry for transferring salaries paid to the Active Partner A to the Profit and loss Appropriation A/c.

[2] Accounting for Partnership
Chapter: [2] Accounting for Partnership
Concept: undefined >> undefined

Read the following information and answer the given question:

Krishika alumni of IIM Ahemdabad initiated her startup Krishika Ltd. in 2018. The profits of Krishika Ltd. in the year 2019-20 after all appropriations was ₹ 31,25,000. This profit was arrived after taking into consideration the following items:

S. No. Particulars Amount (₹)
1. Gain on sale of fixed tangible assets 12,50,000
2. Goodwill written off 7,80,000
3. Transfer to General Reserve 8,75,000
4. Provision for taxation 4,37,500

Additional information:

Particulars 31.3.2020 (₹) 31.3.2019 (₹)
Prepaid Expenses 7,50,000 5,00,000
Inventory 10,50,000 8,20,000
Trade Payable 4,50,000 3,50,000
Trade Receivables 6,20,000 5,90,000

Net Profit before Tax will be ₹ ______.

[2] Accounting for Partnership
Chapter: [2] Accounting for Partnership
Concept: undefined >> undefined

Govind, Hari and Pratap are partners. On the retirement of Govind, the goodwill already appears on the Balance Sheet at ₹24,000. The goodwill will be written off ______

[3] Reconstitution of Partnership
Chapter: [3] Reconstitution of Partnership
Concept: undefined >> undefined

Read the following information and answer the given question:

Krishika alumni of IIM Ahemdabad initiated her startup Krishika Ltd. in 2018. The profits of Krishika Ltd. in the year 2019-20 after all appropriations was ₹ 31,25,000. This profit was arrived after taking into consideration the following items:

S. No. Particulars Amount (₹)
1. Gain on sale of fixed tangible assets 12,50,000
2. Goodwill written off 7,80,000
3. Transfer to General Reserve 8,75,000
4. Provision for taxation 4,37,500

Additional information:

Particulars 31.3.2020 (₹) 31.3.2019 (₹)
Prepaid Expenses 7,50,000 5,00,000
Inventory 10,50,000 8,20,000
Trade Payable 4,50,000 3,50,000
Trade Receivables 6,20,000 5,90,000

Operating profit before working capital changes will be ₹ ______.

[2] Accounting for Partnership
Chapter: [2] Accounting for Partnership
Concept: undefined >> undefined

Read the following information and answer the given question:

Krishika alumni of IIM Ahemdabad initiated her startup Krishika Ltd. in 2018. The profits of Krishika Ltd. in the year 2019-20 after all appropriations was ₹ 31,25,000. This profit was arrived after taking into consideration the following items:

S. No. Particulars Amount (₹)
1. Gain on sale of fixed tangible assets 12,50,000
2. Goodwill written off 7,80,000
3. Transfer to General Reserve 8,75,000
4. Provision for taxation 4,37,500

Additional information:

Particulars 31.3.2020 (₹) 31.3.2019 (₹)
Prepaid Expenses 7,50,000 5,00,000
Inventory 10,50,000 8,20,000
Trade Payable 4,50,000 3,50,000
Trade Receivables 6,20,000 5,90,000

Cash from operating activities before tax will be ₹ ______.

[2] Accounting for Partnership
Chapter: [2] Accounting for Partnership
Concept: undefined >> undefined

Read the following information and answer the given question:

Krishika alumni of IIM Ahemdabad initiated her startup Krishika Ltd. in 2018. The profits of Krishika Ltd. in the year 2019-20 after all appropriations was ₹ 31,25,000. This profit was arrived after taking into consideration the following items:

S. No. Particulars Amount (₹)
1. Gain on sale of fixed tangible assets 12,50,000
2. Goodwill written off 7,80,000
3. Transfer to General Reserve 8,75,000
4. Provision for taxation 4,37,500

Additional information:

Particulars 31.3.2020 (₹) 31.3.2019 (₹)
Prepaid Expenses 7,50,000 5,00,000
Inventory 10,50,000 8,20,000
Trade Payable 4,50,000 3,50,000
Trade Receivables 6,20,000 5,90,000

Cash flow from operating activities will be ₹ ______.

[2] Accounting for Partnership
Chapter: [2] Accounting for Partnership
Concept: undefined >> undefined

When the value of goodwill is not specified at the time of admission of a partner is called ______.

[3] Reconstitution of Partnership
Chapter: [3] Reconstitution of Partnership
Concept: undefined >> undefined

Mohit and Govind were partners in a firm with a ratio of 1:2. They admitted Ravi for 1/5th share in profits. He brought ₹2,50,000 for capital but could not bring goodwill. The goodwill of the firm was valued at ₹3,00,000. What Journal Entry will be passed for the treatment of goodwill?

[3] Reconstitution of Partnership
Chapter: [3] Reconstitution of Partnership
Concept: undefined >> undefined

The Journal Entry to transfer interest on capital to Profit and Loss Appropriation Account would be:

[2] Accounting for Partnership
Chapter: [2] Accounting for Partnership
Concept: undefined >> undefined

What will be the interest on drawing @ 12.5% p.a. for Abhishek if he withdraws ₹ 5,000 once in month?

[2] Accounting for Partnership
Chapter: [2] Accounting for Partnership
Concept: undefined >> undefined

Pick the odd one out: 

[2] Accounting for Partnership
Chapter: [2] Accounting for Partnership
Concept: undefined >> undefined

If 12% Preference share capital ₹ 20,00,000 were redeemed at a premium of 5%, while preparing Cash Flow Statement, Cash Flow will be ______.

[5] Accounting for Share and Debenture Capital
Chapter: [5] Accounting for Share and Debenture Capital
Concept: undefined >> undefined

If the interest on capital is omitted, what will be the journal entry during the situation?

[2] Accounting for Partnership
Chapter: [2] Accounting for Partnership
Concept: undefined >> undefined

Identify the formula for calculating goodwill with the help of capitalised method of super profit.

[3] Reconstitution of Partnership
Chapter: [3] Reconstitution of Partnership
Concept: undefined >> undefined

When the profits are guaranteed by the partners on the old profit sharing ratio, which of the following is not true?

[2] Accounting for Partnership
Chapter: [2] Accounting for Partnership
Concept: undefined >> undefined
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