Accountancy : Company Accounts and Analysis of Financial Statements 2010 CBSE [ All India ] Set III
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State the nature of Income and Expenditure Account.Marks:1
Income and expenditure account is nominal in nature.
Where would you record interest on drawings when capitals are fluctuating?Marks:1
It will be recorded on the debit side of partner’s capital account.
State the need for treatment of goodwill on retirement of a partner.Marks:1
Retiring partner is entitled to get a share of goodwill for sacrificing share, so treatment of goodwill is needed in case of retirement.
How does the factor “location” affect the goodwill of a firm?Marks:1
Location as a factor enhances better business and sales.
What is meant by issue of shares at par?Marks:1
When shares are issued for an amount equal to the face value of share, they are said to be issued at par.
How does the objectivity become a limitation of ‘Financial Statement Analysis.’?Marks:1
Accounting data is neutral and any conclusion can be drawn from such data. Thus, conclusions are influenced to a certain extent by the personal judgement of the analyst.
Under which type of activity will you classify ‘issue of equity shares at premium’ while preparing cash flow statement?Marks:1
It will be classified under Financing Activity.
Purchase of patents would result in inflow, outflow or no flow of cash. Give your answer with reason.Marks:1
Purchase of patents would result in outflow of cash as it reduces the cash balance.
From the following information calculate the amount of subscriptions outstanding for the year 2008-09.
A club has 250 members each paying annual subscription of Rs 1,000. The receipts and payments account for the year showed a sum of Rs 2,15,000 received as subscriptions. The following additional information is provided.
Subscriptions outstanding on 31st March 2008
Subs. received in advance on 31st March 2009
Subs. received in advance on 31st March 2008
Subscription received during the year (2008-09)
Add. Received in advance for the year (2008-09)
Less. Received for the period 2007-08
Less. Received for the period 2009-10
Subscription due for the year
(250 x 1,000)
Outstanding for the year 2008-09
X Ltd obtained a loan of Rs 6,00,000 from IDBI Bank. The company issued 7,000, 9% Debentures of Rs 100 each as a collateral security for the same. Show how these items will be presented in the balance sheet of the company.Marks:3
Extract Balance Sheet as on ………….
(Secured by issue of 7000, 9% Debentures of Rs 100 each as collateral security)