Question : Sharma, Verma and Goyal are partners in a firm. On 1st April 2012 the balances in their
Capital Accounts were as follows:
Sharma Rs. 4,00,000; Verma Rs. 4,20,000 and Goyal Rs. 3,70,000. The firm closes its accounts every year on 31st March. Verma died on 30th September 2012. In the event of the death of any partner following are the provisions in the Partnership Deed:
(i) Interest on Capital will be calculated at the rate of 10% p.a.
(ii) The deceased partner; 's legal representative will be paid Rs. 35,000 for his share of goodwill.
(iii) The firm had a Reserve Fund of Rs. 2,10,000. The deceased partner will be paid his share in the Reserve Fund.
(iv) His share of profit till the date of death will be calculated based on sales. It is also specified that the sales during the year 2011-12 were Rs. 15,00,000. The sales from 1st April 2012 to 30th September 2012 were Rs. 3,00,000. The profit of the firm for the year ending 31st March 2012 was Rs. 3,00,000.
Question:
The amount of goodwill distributed amongst the partners are
Option 1: Rs 17,500
Option 2: Rs 35,000
Option 3: Rs 24,000
Option 4: None of the above
Correct Answer: Rs 35,000
Solution : Answer = Rs 35,000
| Verma's capital a/c | |||
| To Verma's executor a/c (b/f) | 5,66,000 | By Bal b/d | 4,20,000 |
| By IOC | 21,000 | ||
| ($4,20,000 \times \frac{10}{100} \times \frac{6}{12}$) | |||
| By Reserve fund | 70,000 | ||
| ($2,10,000 \times \frac{1}{3}$) | |||
| By Sharma & Goyal capitals a/c | 35,000 | ||
| P & L suspense a/c | 20,000 | ||
| 5,66,000 | 5,66,000 | ||
$\frac{3,00,000}{15,00,000}$×3,00,000= 60,000$\times \frac{1}{3}$= 20,000.
Hence, the correct option is 2.
Answer laterQuestion :
At the time of retirement of a partner, profit (gain) on revaluation will be credited to the Capital Accounts of
Option 1: retiring partner.
Option 2:
all partners in their old profit-sharing ratio.
Option 3:
the remaining partners in their old profit-sharing ratio.
Option 4:
the remaining partners in their new profit-sharing ratio.
Correct Answer:
all partners in their old profit-sharing ratio.
Solution : Answer = all partners in their old profit-sharing ratio.
When a partner retires, the gain on the revaluation of assets is credited to the Capital Accounts of all partners in their old profit-sharing ratio. This ensures that all partners benefit from the increased value of the assets and reflects their respective interests in the partnership's assets.
Hence, the correct option is 2.
Question :
Correct the following sentence if it is incorrect:
The current regime seems resolute to create perennial struggle for the downtrodden and that accounts to lots of injustice.
Option 1: perennial struggle for the downtrodden and this accounts to lots of injustice
Option 2: perennial struggle about the downtrodden and this accounts to lots of injustice
Option 3: perennial struggle for the downtrodden and that accounts for lots of injustice
Option 4: perennial struggle for the downtrodden and that accounts to lots of injustice
Option 5: perennial struggle to the downtrodden and that accounts to lots of injustice
Correct Answer: perennial struggle for the downtrodden and that accounts for lots of injustice
Solution : 'Accounts for' is the correct idiomatic usage.
Question : Sharma, Verma and Goyal are partners in a firm. On 1st April 2012 the balances in their Capital Accounts were as follows:
Sharma Rs. 4,00,000; Verma Rs. 4,20,000 and Goyal Rs. 3,70,000. The firm closes its accounts every year on 31st March. Verma died on 30th September 2012. In the event of the death of any partner following are the provisions in the Partnership Deed:
(i) Interest on Capital will be calculated at the rate of 10% p.a.
(ii) The deceased partner; 's legal representative will be paid Rs. 35,000 for his share of goodwill.
(iii) The firm had a Reserve Fund of Rs. 2,10,000. The deceased partner will be paid his share in the Reserve Fund.
(iv) His share of profit till the date of death will be calculated based on sales. It is also specified that the sales during the year 2011-12 were Rs. 15,00,000. The sales from 1st April 2012 to 30th September 2012 were Rs. 3,00,000. The profit of the firm for the year ending 31st March 2012 was Rs. 3,00,000.
Question:
Amount Due to the deceased's partner's capital account will be ......
Option 1: Rs 3,66,000
Option 2: Rs 6,06,000
Option 3: Rs 5,66,000
Option 4: None of the above
Correct Answer: Rs 5,66,000
Solution : Answer = Rs 5,66,000
| Verma's Capital A/c | |||
| By Verma's executor a/c (b/f) | 5,66,000 | By Bal b/d | 4,20,000 |
| By IOC | 21,000 | ||
| ($4,20,000 \times \frac{10}{100} \times \frac{6}{12}$) | |||
| By Reserve fund | 70,000 | ||
| ($2,10,000 \times \frac{1}{3}$) | |||
| By Sharma & Goyal capitals | 35,000 | ||
| By P & L suspense a/c | 20,000 | ||
| 5,66,000 | 5,66,000 | ||
$\frac{3,00,000}{15,00,000}$×3,00,000= 60,000$\times \frac{1}{3}$= 20,000.
Hence, the correct option is 3.
Question : The interest on Partner's Capital Accounts is to be credited to
Option 1: Profit and Loss A/c
Option 2: Interest A/c
Option 3: Partner's Capital A/c
Option 4: None of these
Correct Answer: Partner's Capital A/c
Solution : Partner's Capital Accounts record the interest on the partner's capital to the credit side of it. Hence, the correct option is 3.
Question : When studying medieval travel accounts, it is important to consider the:
Option 1: Traveler's favorite color
Option 2: Type of transportation used
Option 3: Historical and cultural context
Option 4: Weather conditions during the journey
Correct Answer: Historical and cultural context
Solution : When studying medieval travel accounts, it is important to consider the historical and cultural context in which the travels took place. Understanding the background and circumstances of the time can provide valuable insights into the motivations, experiences, and perspectives of the travelers.
Question : Chain and Harsha were partners in a firm sharing profits in the ratio of 3: 2. On 1-4-2014 their Balance Sheet was as follows :
| Balance Sheet of Charu and Harsha as on 1st April, 2014 | |||
| Liabilities | Amount(Rs) | Assets | Amount(Rs) |
| Creditors | 17,000 | Cash | 6,000 |
| General Reserve | 4,000 | Debtors | 15,000 |
| Workmen Compensation Fund | 9,000 | Investments | 20,000 |
| Investment Fluctuation Fund | 11,000 | Plant | 14,000 |
| Provision for bad debts | 2,000 | Land & buildings | 38,000 |
| Capitals: | |||
| Charu- 30,000 | |||
| Harsha- 20,000 | 50,000 | ||
| 93,000 | 93,000 | ||
On the above date Vaishali was admitted for 1/4 th share in the profits of the firm on the following terms :
(a) Vaishali will bring Rs.20,000 for her capital and Rs.4,000 for her share of goodwill premium.
(b) All debtors were considered good.
(c) The market value of investments was Rs. 15,000.
(d) There was a liability of Rs.6,000 for workmen compensation.
(e) Capital accounts of Charu and Harsha are to be adjusted on the basis of Vaishali's capital by opening current accounts.
Question:
Amount distributed amongst the old partners In respect of workmen's compensation fund will be
Option 1: Crediting old partners capital Account with Rs 2,000 and Rs 1,000
Option 2: crediting the old partner's capital account with Rs 1,800 and Rs 1,200
Option 3: debiting old partner's capital account with Rs 1,800 and Rs 1,200
Option 4: None of the above
Correct Answer: crediting the old partner's capital account with Rs 1,800 and Rs 1,200
Solution : Answer = crediting the old partner's capital account with Rs 1,800 and Rs 1,200
| Charu | Harsha | Vaishali | Charu | Harsha | Vaishali | ||
| By Bal. B/D | 30000 | 20,000 | - | ||||
| Revaluation(profit) | 1200 | 800 |
- |
||||
| Reserve | 2400 | 1600 | - | ||||
| W.C. Res | 1800 | 1200 | - | ||||
| I.F. Res | 3600 | 2400 | - | ||||
| Bank | - | - | 20,000 | ||||
| Premium for Goodwill | 2400 | 1600 | - | ||||
| Bal. C/D | 41400 | 27600 | 20000 | ||||
| 41400 | 27600 | 20000 | 41400 | 27600 | 20000 |
| Charu | Harsha | Vaishali | Charu | Harsha | Vaishali | ||
| Current A/c | 5400 | 3600 | - | By Bal. B/D | 41400 | 27600 | 20,000 |
| Bal. C/D | 36000 | 24000 | 20,000 | ||||
| 41400 | 27600 | 20000 | 41400 | 27600 | 20000 |
Hence, the correct option is 2.
Question : How did Indian accounts of the Revolt of 1857 contribute to the nationalistic narrative in India?
Option 1: By glorifying British rule
Option 2: By highlighting the unity among Indians
Option 3: By emphasizing the economic benefits of the revolt
Option 4: By downplaying the violence
Correct Answer: By highlighting the unity among Indians
Solution : Correct Option: 2
Explanation: Indian accounts of the Revolt of 1857 often highlighted the unity among different communities and leaders, contributing to the nationalistic narrative in India and fostering a sense of collective resistance against colonial rule.
Question : Which authority recommends the principles governing the grants in -aid of revenues of the states out of the consolidated fund of india?
Option 1: public accounts committee
Option 2: union ministry of finance
Option 3: Finance Commission
Option 4: inter-state council
Correct Answer: Finance Commission
Solution : The Correct Answer is Finance Commission
A constitutional body, the Finance Commission is established by the President. The Central Finance Commission (CFC) is required by Article 280(3)(C) of the Constitution to recommend actions to increase the Consolidated Fund of a State to supplement the resource of Municipalities based on the recommendations of the respective SFCs. It lays out the guidelines by which the Centre should distribute grants in aid to states from the Consolidated Fund of India and suggests steps to boost state resources.
Question : How did British accounts of the Revolt of 1857 differ from Indian accounts?
Option 1: British accounts focused on the economic causes, while Indian accounts emphasized religious factors
Option 2: British accounts portrayed the revolt as a mutiny, while Indian accounts viewed it as a war of independence
Option 3: British accounts highlighted the role of women, while Indian accounts ignored it
Option 4: British accounts were written in English, while Indian accounts were in regional languages
Correct Answer: British accounts portrayed the revolt as a mutiny, while Indian accounts viewed it as a war of independence
Solution : Correct Option: 2
Explanation: British accounts of the Revolt of 1857 often portrayed it as a 'mutiny' or a localized rebellion, while Indian accounts tended to view it as a broader war of independence against colonial rule.
