Question :
Summarize the following paragraph:
Emotionally strong persons have a great outlook towards life. They are able to bear shocks like emotional deprivation, cheating in love, being duped by frauds etc. Their temperamental strength also accounts for their good health. They have a great control over their blood pressure, their brain and thus, they are likely to remain away from chronic diseases. Their being happy also ensures the happiness of the ones who love them.
Option 1: To be emotionally strong is not less than a virtue.
Option 2:
Emotionally strong people have a reasonably good control over their bodies and lives
Option 3:
Emotionally strong people are never subject to shocks
Option 4:
Being emotionally strong is the most important
Option 5:
Emotionally strong people never fall sick
Correct Answer:
Emotionally strong people have a reasonably good control over their bodies and lives
Solution : The gist of the paragraph is that emotionally strong people have a good control over their health and lives. The other options are extreme or far-fetched.
Answer laterQuestion : Assertion (A): A programme called Pradhan Mantri Jan Dhan Yojana is accessible as of 2014 and encourages people in India to open bank accounts.
Reason: This programme aims to immediately transfer all government programmes' and subsidies' benefits to account holders in addition to encouraging saving habits.
Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
Option 2: Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
Option 3: Assertion (A) is True but Reason (R) is False
Option 4: Assertion (A) is False but Reason (R) is True
Correct Answer: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
Solution : The Pradhan Mantri Jan-Dhan Yojana (PMJDY) is a National Mission for Financial Inclusion that aims to provide affordable access to financial services such as basic savings and deposit accounts, remittance, credit, insurance, and pension.
Aside from encouraging savings habits, this scheme intends to directly transfer all government schemes and subsidies to account holders.
Hence option a is the correct answer.
Question : On firm dissolution, which one of the following accounts should be prepared at the last?
Option 1: Realization account
Option 2: Partner's capital account
Option 3: Partner's loan account
Option 4: Cash account
Correct Answer: Cash account
Solution : Answer = cash account
The cash or bank account is prepared at last. The balance of the cash account and the receipts during the process of dissolution has to be equal to the payments to outsiders and partners. With the cash account, all the accounts will stand closed. It reflects the final disposition of cash assets after settling all liabilities, ensuring an accurate depiction of the firm's financial position at the close of its operations.
Hence, the correct option is 4.
Question : The National Health Accounts (NHA) framework in India aims to:
Option 1: Monitor health expenditure and financial flows in the healthcare sector
Option 2: Provide financial assistance for renewable energy projects
Option 3: Address gender disparities in health services
Option 4: Promote energy conservation in industrial sectors
Correct Answer: Monitor health expenditure and financial flows in the healthcare sector
Solution : The correct answer is (A) Monitor health expenditure and financial flows in the healthcare sector.
The National Health Accounts (NHA) framework in India is a system that tracks and analyzes financial flows related to health expenditure. It provides a comprehensive overview of how funds are allocated and spent in the healthcare sector, including both public and private sources. The NHA framework helps in monitoring health financing, analyzing trends, and assessing the efficiency and effectiveness of healthcare spending. It plays a crucial role in informing policy decisions, resource allocation, and monitoring progress towards achieving healthcare goals.
Question : X, Y and Z were partners sharing profits and losses in the ratio of 4: 3: 2. Y retired on 1st April, 2020. On that date capitals of X, Y and Z after all adjustments stood at Rs. 19,650; Rs. 19,800 and Rs. 9,150 respectively. Total capital of the firm as newly constituted is fixed at Rs. 28,000 between X and Z in the proportion of 5/8th and 3/8th after passing entries in their accounts for adjustments. Amount to be paid or to be brought by the continuing partners is
Option 1: X debited by Rs 2,150, Z credited by Rs 1,350
Option 2: X credited by Rs 2,150 Z debited by Rs 1,350
Option 3: X debited by Rs 2,150 Z debited by Rs 1,350
Option 4: X credited Rs 2,150 and Y credited Rs 1,350
Correct Answer: X debited by Rs 2,150, Z credited by Rs 1,350
Solution : Answer = X debited by Rs 2150, Z credited by Rs 1350
Adjusted Capital of
X = 19650
Z = 9150
= 28800
Total Capital of New Firm
X= $28000\times\frac{5}{8} = 17500$
Z = $28000\times\frac{3}{8} = 10500$
| X | Z | X | Z | ||
| To Bank | 2150 | Bal. B/D | 19650 | 9150 | |
| Bal. C/D | 17500 | 10500 | By Bank | 1350 | |
| 19650 | 10500 | 19650 | 10500 |
X's Capital A/c Dr 2150
To Bank - 2150
Bank A/c Dr 1350
To Z's Capital A/c 1350
Hence, the correct option is 1.
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.
Question : A, B, and C are partners in a business where they split profits and losses 2: 2: 1. C died on March 31, 2022. Each year on December 31st, accounts are closed. Sales for 2021 totaled Rs. 6,00,000, and profits came to Rs. 60,000. From January 1 to March 31, 2022, there were Rs. 2,00,000 sales. The dead partner's share of the sales-based profit for the current year is:
Option 1: Rs.3,000
Option 2: Rs.4,000
Option 3: Rs.20,000
Option 4: Rs.8,000
Correct Answer: Rs.4,000
Solution : % of Profit on sales = 60000 / 600000 = 10%
Hence Profit on Rs.200000 sales which were made from 1 january to 31 march 2022 is Rs.20000 (200000 * 10%)
Profit sharing ratio = 2 : 2: 1
So share of C is Rs.20000 * 1 / 5 = Rs.4000
Hence the correct answer is option 2.
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:
Deceased 's partners share of profit will be ____________or profit and loss suspense account will be______________.
Option 1: debited by Rs 20,000
Option 2: credited by Rs 20,000
Option 3: debited by Rs 60,000
Option 4: Credited by Rs 60,000
Correct Answer: debited by Rs 20,000
Solution : Answer = debited by Rs 20,000
| 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 a/c | 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 1.
Question : What is the purpose of a chart of accounts?
Option 1: it acts as a framework for a business's financial record-keeping procedure
Option 2: it acts as a framework for a business's non-financial record-keeping procedure
Option 3: it acts as a framework for a non-business's record-keeping procedure
Option 4: None of these
Correct Answer: it acts as a framework for a business's financial record-keeping procedure
Solution : The COA acts as the framework for a business's financial record-keeping procedure. It offers a logical framework that makes it easier to add new accounts and remove old ones. Hence, the correct option is 1.
Question : On dissolution of a firm, a partner took over Rs.34,000 investments for Rs.28,000. Which one of the following accounts will be debited/credited with how much amount?
Option 1: Partner's Capital Account Debit with 28,000
Option 2: Partner's Capital Account Credit with 34,000
Option 3: Realisation Account Credit with 34,000
Option 4: Realisation Account debited with 34,000
Correct Answer: Partner's Capital Account Debit with 28,000
Solution : Answer = Partner's Capital Account Debit with 28,000
When an investment valued at Rs 34,000 is taken over by any partner by Rs 28,000. Partner capital account will be debited by Rs 28,000 and credited to the realisation account by Rs 28,000.
Partner's capital a/c......Dr 28,000
To Realisation a/c 28,000.
Hence, the correct option is 1.
