List of practice Questions

Identify the type of code used by a trading company Ms. Ahana Ltd.:

CodesAccounts
CA005Super Ltd.
CA006Regina Ltd.
CA007Nasir & Sons Ltd.
State the advantages of ‘Pivot Table’ report.
Name the error which occurs when Excel doesn’t recognize a ‘Text’ formula. Give any two solutions to correct it.
What is data formatting? What tools are used to format data?
Explain ‘ROUND’ function of Excel.
Which function can be used as an alternate to the ‘IF’ function for elaborate test and why? Give the meaning of its types with their syntax.

From the following Statement of Profit and Loss of Nutan Ltd. for the years ended 31st March, 2023 and 2024, prepare a Comparative Statement of Profit and Loss:

Particulars2022–23 (₹)2023–24 (₹)
Revenue from Operations5,00,0006,00,000
Other Income20,00030,000
Expenses4,00,0005,00,000
Tax Rate40%40%
Calculate Trade Receivables from the following:
  • Trade Receivables Turnover Ratio = 4 times
  • Cash Revenue from Operations = ₹ 2,50,000
  • Credit Revenue from Operations = 40% of Total Revenue
  • Opening Trade Receivables = ₹ 50,000
  • Closing Trade Receivables = ₹ 1,50,000
From the following information, calculate cash flow from investing and financing activities:
  • Purchase of Machinery ₹1,60,000
  • Sale of Machinery ₹40,000
  • Interest Paid ₹10,000
  • Dividend Paid ₹15,000
  • Proceeds from Issue of Shares ₹2,00,000
  • Proceeds from Long-Term Borrowings ₹50,000
Which of the following is a part of Asset group ‘Current Assets’ in account group of Assets?
Null value is the special value which represents:
The software of computerised accounting system can be used for any size of business and type of organization as it enables changing the volume of data processing in tune with the change in the size of business. Which feature of Computerised Accounting System is being highlighted in above lines?
A piece of information shown in a graph which is assigned to the data series is known as:
_______ is not a tool of ‘Analysis of Financial Statements’.
In ‘Common size income statement’ each item is expressed as a percentage of ____.
Short-term highly liquid investments qualify as cash equivalents if they are realisable into known amounts of cash from the date of acquisition within a period of :
Which of the following item is not included in cash and cash equivalents?
The Quick Ratio of a company is 1 : 1. Which of the following transactions will result in increase in Quick Ratio?
Statement-I: Snow Limited earned a profit of \rupee 2,00,000 after charging depreciation of \rupee 50,000 on machinery. So, operating profit before working capital changes would be \rupee 2,50,000.
Statement-II: Depreciation is added back to net profit as it does not result in any cash flow.
Choose the correct option from the following:
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) Outstanding Salaries
(ii) Trademarks
(iii) Loose tools
Swar Sangam Limited issued 3,000, 9% debentures of ₹ 500 each at a premium of 10%. The amount was payable as follows:
On Application – ₹ 200 per debenture
On Allotment – Balance (including premium)
The debentures were fully subscribed and all amounts were duly received.
Pass the necessary journal entries for issue of debentures in the books of Swar Sangam Limited.
Pass necessary journal entries for the following transactions on dissolution of the partnership firm of Preeti, Varsha and Kamala after various assets (other than cash) and third party liabilities have been transferred to Realisation Account :
  • [(i)] Preeti took over the debtors of book value of ₹ 90,000 at a discount of 20%.
  • [(ii)] Kamala took over her husband’s loan of ₹ 4,00,000.
  • [(iii)] There were 100 shares of ₹ 10 each in Star Ltd. acquired at a cost of ₹ 2,00,000 which had been written off completely from the books. These shares were valued at ₹ 2,400 each and divided among the partners in their profit sharing ratio.
  • [(iv)] Sundry creditors amounting to ₹ 5,00,000 were settled at a discount of 10%.
  • [(v)] Land and Building of the book value of ₹ 40,00,000 was sold for ₹ 60,00,000 through a broker who charged 5% commission.
  • [(vi)] Varsha paid the dissolution expenses of ₹ 45,000 on behalf of the firm.

Following is the extract of the Balance Sheet of Vikalp Ltd. as per Schedule-III, Part-I of Companies Act as at 31st March, 2024 along with notes to accounts :

(i) The total face value of equity shares issued during the year 2023-24 was :

Anisha, Deepa and Charu were partners sharing profits and losses in the ratio of 5 : 3 : 2. On 31st March, 2024, they decided to change their profit-sharing ratio to 2 : 3 : 5. Each partner’s gain or sacrifice due to change in profit-sharing ratio will be:
Ishan, Jatin and Kapil were partners in a firm sharing profits and losses in the ratio of 5 : 4 : 1. Jatin retired and his share was taken up by Ishan and Kapil in the ratio 1 : 1. The new profit-sharing ratio between Ishan and Kapil after Jatin’s retirement will be: