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Questions and Answers
What is the total amount transferred to the Profit and Loss Appropriation Account from the Profit and Loss Account?
What is the total amount transferred to the Profit and Loss Appropriation Account from the Profit and Loss Account?
How much interest was credited to John's Capital Account?
How much interest was credited to John's Capital Account?
Which partner received the highest amount as their share of profit?
Which partner received the highest amount as their share of profit?
What is the total effective contribution for Sahil?
What is the total effective contribution for Sahil?
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What is the interest charged on drawings for both partners combined?
What is the interest charged on drawings for both partners combined?
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What is the total amount debited to the Interest on Capital Account?
What is the total amount debited to the Interest on Capital Account?
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What ratio is used for the profit-sharing of Sahil, Sukesh, and Mohan?
What ratio is used for the profit-sharing of Sahil, Sukesh, and Mohan?
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How much was charged as interest on drawings at the rate of 8%?
How much was charged as interest on drawings at the rate of 8%?
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What was the total amount transferred to the Capital Reserve from the gain on the re-issued shares?
What was the total amount transferred to the Capital Reserve from the gain on the re-issued shares?
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How much was recorded in the Share Forfeiture A/c for the forfeiture of 400 shares?
How much was recorded in the Share Forfeiture A/c for the forfeiture of 400 shares?
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What is the total amount received in the bank from the application money for shares issued?
What is the total amount received in the bank from the application money for shares issued?
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What was the total amount of Calls in Arrears during the bank entry for forfeiture?
What was the total amount of Calls in Arrears during the bank entry for forfeiture?
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What was the value of securities premium reserve for 160,000 shares issued?
What was the value of securities premium reserve for 160,000 shares issued?
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What entry was made for the re-issue of 300 shares at ₹7 as fully paid?
What entry was made for the re-issue of 300 shares at ₹7 as fully paid?
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Which account was credited with the amount of 80,000 shares at ₹4 during the allotment?
Which account was credited with the amount of 80,000 shares at ₹4 during the allotment?
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How much was debited from the Equity Share Allotment A/c?
How much was debited from the Equity Share Allotment A/c?
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What is the amount shown as 'To Balance c/d' for Leena in the final summary?
What is the amount shown as 'To Balance c/d' for Leena in the final summary?
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What is the total amount for the 'By Revaluation A/c (Profit)' section for Naresh?
What is the total amount for the 'By Revaluation A/c (Profit)' section for Naresh?
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How much was allocated to Madan's Capital A/c from the Advertisement Expenditure A/c?
How much was allocated to Madan's Capital A/c from the Advertisement Expenditure A/c?
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What amount was created for the Provision for Doubtful Debts A/c in the journal entry?
What amount was created for the Provision for Doubtful Debts A/c in the journal entry?
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What is the overall total of 'To Deferred' for all three individuals?
What is the overall total of 'To Deferred' for all three individuals?
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How much was recorded as 'Bad Debts written off' in the journal entries?
How much was recorded as 'Bad Debts written off' in the journal entries?
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What was the balance shown for Naresh in the 'By Balance b/d' section?
What was the balance shown for Naresh in the 'By Balance b/d' section?
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Which amount represents the split between Bad Debts and Provision for Doubtful Debts in the first April journal entry?
Which amount represents the split between Bad Debts and Provision for Doubtful Debts in the first April journal entry?
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What is Vidya's new share after Chintan took 1/10th share from Amit and Vidya?
What is Vidya's new share after Chintan took 1/10th share from Amit and Vidya?
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Which journal entry correctly reflects the writing off of bad debts valued at ₹ 15,000?
Which journal entry correctly reflects the writing off of bad debts valued at ₹ 15,000?
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What is the new profit-sharing ratio of Manav and Narayan after Nath's retirement?
What is the new profit-sharing ratio of Manav and Narayan after Nath's retirement?
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If goodwill is valued at ₹ 60,000 and not previously recorded, what will be the necessary journal entry?
If goodwill is valued at ₹ 60,000 and not previously recorded, what will be the necessary journal entry?
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What is the purpose of adjusting goodwill when a new partner is admitted?
What is the purpose of adjusting goodwill when a new partner is admitted?
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How is each partner's share of goodwill typically calculated upon a partner's retirement?
How is each partner's share of goodwill typically calculated upon a partner's retirement?
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What amount is written off when debtors turn bad according to the given information?
What amount is written off when debtors turn bad according to the given information?
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Which partner receives the capital adjustment related to goodwill after Nath retires?
Which partner receives the capital adjustment related to goodwill after Nath retires?
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What was the total cash used in investing activities?
What was the total cash used in investing activities?
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How much did the company receive from the issue of shares?
How much did the company receive from the issue of shares?
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What is the interest paid on debentures?
What is the interest paid on debentures?
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What does the closing cash and cash equivalents amount to?
What does the closing cash and cash equivalents amount to?
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What was the proposed dividend for previous years?
What was the proposed dividend for previous years?
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What is the net profit before tax and extraordinary items?
What is the net profit before tax and extraordinary items?
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What was the cash flow from financing activities?
What was the cash flow from financing activities?
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What was the total cash inflow from the sale of non-current investments?
What was the total cash inflow from the sale of non-current investments?
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Study Notes
Profit Sharing Ratio Changes
- Chintan takes 1/10th from Amit and Vidya in a new profit-sharing agreement
- Vidya's new share is 6/20
Admission of a New Partner
- Paresh and Prabhav have debtors of ₹ 6,20,000 and a provision for doubtful debts of ₹ 20,000
- Debtors worth ₹ 15,000 are written off due to revaluation
- The correct journal entry is:
- Bad Debts A/c Dr. 15,000
- To Sundry Debtors A/c 15,000
- Revaluation A/c Dr 15,000
- To Provision for Doubtful Debts A/c 15,000
Goodwill Calculation
- Manav, Nath, and Narayan share profits and losses in a ratio of 4:3:2.
- Nath retires and goodwill is valued at ₹ 21,600
- The journal entry for goodwill adjustment is:
- Manav's Capital A/c Dr. 3,900
- Narayan's Capital A/c Dr. 3,300
- To Nath's Capital A/c 7,200
- Manav and Narayan's new profit-sharing ratio is 13:11
Goodwill Upon Changing Profit Sharing Ratio
- Janak, Chaman, and Anmol share profits and losses in a ratio of 3:2:1.
- They change their profit-sharing ratio to 2:2:1.
- Goodwill is valued at ₹ 60,000
- The journal entry for goodwill accounting is:
- Chaman's Capital A/c Dr. 4,000
- Anmol's Capital A/c Dr. 1,875
- To Janak's Capital A/c 5,875
Profit & Loss Appropriation Account
- Sahil, Sukesh, and Mohan share profits in a ratio of 3:3:4
- Sahil contributes ₹ 6,00,000
- Sukesh contributes ₹ 6,00,000
- Mohan contributes ₹ 8,00,000
Journal Entries and Calculations
- John and Roberts receive interest on capital at 6%
- Interest on drawings is charged at 8%
- A gain of 600 re-issued shares is transferred to Capital Reserve
Share Capital and Forfeiture
- As. Ltd. issues 3,20,000 shares
- 400 shares are forfeited
- 300 shares are re-issued at 7 as fully paid
Partner's Capital Account
- Leena, Madan, and Naresh are partners.
- Their respective Capital A/c have entries for:
- Deferred Advertisement Expenditure A/c
- Revaluation A/c
- Investments A/c
- Bank A/c
Bad Debts and Revaluation
- P, Q, and R are partners.
- Bad debts worth ₹ 5,000 are written off
- A provision for doubtful debts of ₹ 3,750 is created
Statement of Cash Flows Entries
- Cash outflows are recorded for:
- Purchase of Land & Building
- Purchase of Goodwill
- Loans and Advances Given
- Cash inflows are recorded for:
- Proceeds from Sale of Non-Current Investments
- Proceeds from issue of shares
- Securities Premium
Goodwill Account
- The Goodwill A/c is credited with profit from the Statement of Profit & Loss
- Goodwill is valued at ₹ 6,40,000
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Description
This quiz covers key concepts related to profit-sharing ratio changes, admission of a new partner, and calculations involving goodwill. Test your understanding of journal entries and adjustments in partner shares in a partnership. Can you navigate through the financial implications of these scenarios?
