List of top Accountancy Questions

Calculate opening and closing Trade Payables from the following information :
Total purchases ₹ 15,00,000;
Cash purchases are 25% of credit purchases;
Trade payables turnover ratio is 4 times;
Closing trade payables are two times of opening trade payables.

From the following information, calculate Cash Flows from Financing Activities :

Particulars	31-03-2024 (₹)	31-03-2023 (₹)
Equity Share Capital	12,00,000	8,00,000
11% Debentures	3,00,000	4,00,000
Securities Premium	1,40,000	1,00,000

Additional Information :
Interest paid on debentures amounted to ₹ 40,000.

Classify the following items under major heads and sub-heads (if any) in the Balance Sheet of the company as per Schedule-III, Part-I of the Companies Act, 2013 :
(i) Computer software
(ii) Outstanding salary
(iii) Work in progress

The Debt Equity Ratio of Manak Enterprises is 2.5 : 1. Which of the following transaction will result in increase in this ratio?
(A) Purchase of goods on credit ₹ 2,00,000.
(B) Payment to creditors ₹ 3,00,000.
(C) Issue of debentures ₹ 6,00,000.
(D) Sale of furniture of the book value of ₹ 4,00,000 at a profit of 10%.

From the following information of CN Ltd., prepare a common size Statement of Profit and Loss for the years ended 31st March, 2023 and 31st March, 2024 :

Statement of Profit (in ₹)

Particulars	2023–24 (₹)	2022–23 (₹)
Revenue from Operations	40,00,000	20,00,000
Less: Purchase of Stock-in-Trade	8,00,000	4,00,000
Less: Other Expenses	4,00,000	2,00,000
Profit Before Tax	28,00,000	14,00,000
Less: Tax @ 50%	14,00,000	7,00,000
Net Profit After Tax	14,00,000	7,00,000

Statement– I : Investing activities are the acquisition and disposal of long-term assets and other investments not included in cash equivalents.
Statement– II : Cash payments to acquire fixed assets including intangibles and capitalised research and development results in cash outflow from investing activities.
Choose the correct option from the following :

Which of the following are operating activities for the purpose of preparing cash flow statement?
Cash payments to suppliers for goods and services.
Dividend received from investments in other enterprises.
Cash receipts from royalties, fees, commissions and other revenues.
Cash repayments of amounts borrowed.

Which of the following statements is incorrect ?
Cash payments to suppliers for goods and services.
Dividend received from investments in other enterprises.
Cash receipts from royalties, fees, commissions and other revenues.
Cash repayments of amounts borrowed.

The tool of analysis of financial statements which indicates the trend and direction of financial position and operating results is _______.

A Ltd. purchased a running business from B Ltd. for a sum of ₹ 6,00,000 payable by issue of 12,000 equity shares of ₹ 10 each at a premium of ₹ 10 per share. The assets and liabilities consisted of the following:}
Sundry Assets ₹ 6,45,000
Sundry Liabilities ₹ 90,000 Pass journal entries in the books of A Ltd.

Ratios that are calculated for measuring the efficiency of operations of the business based on effective utilization of resources are known as _______

Ashish, Vinit and Reema were partners sharing profits and losses in the ratio of 2 : 2 : 1. Their Balance Sheet on 31st March, 2024 was as follows :

Balance Sheet of Ashish, Vinit and Reema as at 31^st March, 2024

Liabilities	Amount (₹)	Assets	Amount (₹)
Capital: Ashish	2,00,000	Patents	80,000
Capital: Vinit	2,00,000	Furniture	3,00,000
Capital: Reema	1,00,000	Stock	1,70,000
General Reserve	50,000	Debtors	80,000
Bills Payable	80,000	Less: Provision for Doubtful Debts	(8,000)
Creditors	40,000	Net Debtors	72,000
		Cash	48,000
Total	6,70,000	Total	6,70,000

(i) Goodwill of the firm was valued at ₹ 60,000 and the same was adjusted into the capital accounts of Ashish and Reema who will share profits in future in the ratio of 3 : 2.
(ii) Value of stock was to be reduced by ₹ 10,000.
(iii) Patents are found undervalued by 20%.
(iv) Vinit was paid ₹ 20,000 immediately on retirement and the balance was transferred to his loan account carrying interest @ 8% p.a.
Pass necessary journal entries on Vinit’s retirement.

The capital of the firm of Rajat and Karan is ₹ 15,00,000 and the market rate of interest is 12%. Annual salary of Rajat and Karan is ₹ 20,000 and ₹ 30,000 respectively. The profits for the last three years were ₹ 2,40,000, ₹ 2,80,000 and ₹ 3,20,000. Goodwill of the firm is to be valued on the basis of two years’ purchase of last three years’ average super profits. Calculate the goodwill of the firm.

Raja, Bharat and Vedika were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Their Balance Sheet as on 31st March, 2024 was as follows :
Balance Sheet of Raja, Bharat and Vedika as on 31st March, 2024

Liabilities Amount (₹)	Amount (₹)	Assets
Creditors	80,000	Bank
General Reserve	50,000	Stock
Capitals: Raja Bharat Vedika	1,10,000 1,00,000 90,000	Debtors Furniture Machinery
Total	4,30,000	Total

Pass necessary Journal entries for the following transactions on the dissolution of a firm after the transfer of assets and liabilities has been made to Realisation Account:
(i) Debtors of ₹ 60,000; provision for doubtful debts ₹ 2,000. ₹ 56,000 were collected.
(ii) Creditors were ₹ 80,000; settled at ₹ 76,000.

Pass necessary journal entries for issue of debentures for the following transactions:
(i) Kiero Ltd. issued 80,000, 9% debentures of ₹ 100 each at par, redeemable at a premium of 10%.
(ii) Naro Ltd. issued 50,000, 10% debentures of ₹ 100 each at a premium of 5%, redeemable at a premium of 10%.

On 1st April, 2023, Bhanu and Dhruv were partners in a firm sharing profits and losses in the ratio of 3 : 2. On that date their capitals were ₹ 1,80,000 and ₹ 1,20,000 respectively. They admitted Rajat as a new partner with 1/4th share in the profits. Rajat brought ₹ 2,00,000 as his capital. The new profit sharing ratio was 2 : 1 : 1. Calculate the value of goodwill of the firm and record the necessary journal entry for adjustment of goodwill.

Nita, Vidur and Mita were partners in a firm sharing profits and losses in the ratio of 3 : 4 : 1. On 1st April 2024, they decided to admit Samir as a new partner. The new profit sharing ratio between Nita, Vidur, Mita and Samir will now be 1 : 1 : 1 : 1. The balance sheet of Nita, Vidur and Mita before Samir’s admission showed machinery at ₹ 6,00,000. On the date of admission, it was found that the machinery is overvalued by 20%. The value of machinery shown in the new Balance Sheet after Samir’s admission will be :

Ashmit, Veena and Rohan were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Veena retired on 31st March, 2024. The capital accounts of Ashmit, Veena and Rohan showed a credit balance of ₹ 2,00,000, ₹ 1,80,000 and ₹ 1,20,000 respectively after making all adjustments relating to revaluation, goodwill, reserves etc. Veena was paid in cash brought in by Ashmit and Rohan in such a way that their capitals were in proportion to their new profit sharing ratio. The new capitals of Ashmit and Rohan will be :

₹10 per share on 4,000 shares were forfeited for non-payment of final call of ₹2 and application and allotment money was paid. These shares were reissued at ₹8 per share. The minimum amount transferred to Capital Reserve will be:

When a partner brings capital at the time of admission, it is credited to:

Varun, Aryan and Nimit were partners in a firm sharing profits in the ratio 2 : 2 : 1. Aryan retired and surrendered 1/3 of his share to Varun and remaining to Nimit. What will be the new ratio between Varun and Nimit?

Vishesh, Manik and Amit were partners in the ratio 5 : 4 : 1. Amit retired on 31st March, 2024. Vishesh and Manik decided to share Amit’s share in the ratio 2 : 3. What will be the new profit sharing ratio between Vishesh and Manik?

Debentures in respect of which all details including names, addresses and particulars of holding of the debenture holders are entered in a register kept by the company are called :

Misha, Sarita and Isha were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. With effect from 1st April 2024, they decided that they will share profits and losses equally. The gain or sacrifice by the partners due to change in profit sharing ratio will be :