State the objectives of ‘Analysis of Financial Statements’.
Objectives of ‘Analysis of Financial Statements’ is as follows:
1) To assess the earning capacity and profitability of the organisation.
2) To assess the efficiency of managers as well as business by calculating finanical rations and look at the trend at their variations.
3) To provide meaningful information about changes in the financial data over time via comparisions of related datas.
4) To assess the solvency position of the organisation to know the ability to pay its short term and long term debt.
5) To assess the future of the organisation by preparing budgets and forecasting.
What is Capital Fund? How is it calculated?
What is sacrificing ratio? Why is it calculated?
If a fixed amount is withdrawn on the first day of every quarter, for what period the interest on total amount withdrawn will be calculated?
Why there is need for the revaluation of assets and liabilities on the admission of a partner?
What is subscription? How is it calculated?
List the items which may be debited or credited in capital accounts of the partners when:
(i) Capitals are fixed.
(ii) Capital are fluctuating.
Why is Profit and Loss Adjustment Account prepared? Explain.
If some goodwill already exists in the books and the new partner brings in his share of goodwill in cash, how will you deal with existing amount of goodwill?
Why it is considered desirable to make the partnership agreement in writing.
On what occasions sacrificing ratio is used?
State the meaning of Income and Expenditure Account.
What is Capital Fund? How is it calculated?
List the items which may be debited or credited in capital accounts of the partners when:
(i) Capitals are fixed.
(ii) Capital are fluctuating.
On what occasions sacrificing ratio is used?
Rani and Suman are in partnership with fixed capitals of Rs, 80,000 and Rs.60,000, respectively. During the year 2015-16, Rani withdrew Rs. 10,000 from her capital and Suman Rs. 15,000. Profits before charging interest on capital was Rs. 50,000. Rani and Suman shared profits in the ratio of 3:2. Calculate the amounts of interest on their capitals @ 12% p.a. for the year ended March 31, 2016.
Give two circumstances under which the fixed capitals of partners may change.
Discuss the main provisions of the Indian Partnership Act 1932 that are relevant to partnership accounts if there is no partnership deed.
State the accounting treatment at the time of dissolution of a firm for:
i. Unrecorded assets ii. Unrecorded liabilities
Reproduce the format of Realisation Account.
What is sacrificing ratio? Why is it calculated?