List of top Accountancy Questions

Anup, Bharti and Manoj were partners in a firm sharing profits and losses in the ratio of 11:8:1. From 1st April, 2025, they decided to share the future profits in the ratio of 2:2:1. The gain or sacrifice of each partner due to change in profit sharing ratio will be:

Persons who have entered into partnership with one another are collectively called:

Divya and Bholi were partners in a firm sharing profits and losses in the ratio of 3:1. On 1st April, 2024, their fixed capitals were Rs 8,00,000 and Rs 6,00,000 respectively. On 30th September, 2024, Bholi introduced Rs 50,000 as additional capital. Partnership deed provided that interest on capital will be allowed @ 12% p.a. Interest on Bholi's capital for the year ended 31st March, 2025 was:

Arun, Varun and Tarun were partners in a firm sharing profits and losses in the ratio of 5:3:2. On 31st March, 2025, Arun died. Varun and Tarun decided to share future profits equally. The gaining ratio of Varun and Tarun will be:

On 1st April, 2024, Mobi Ltd. issued 3,000, 9% Debentures of Rs 1,000 each at a premium of 5%. The total amount of interest due on debentures for the year ended 31st March, 2025 will be:

Paramount Ltd. forfeited 2,000 equity shares of Rs 100 each, Rs 80 called up, issued at a premium of 10%, for non-payment of first call of Rs 20 per share. On forfeiture of these shares, Equity Share Capital Account will be ____ by ____.

A company may reserve a portion of its uncalled capital to be called only in the event of winding up of the company. Such uncalled amount is called:

Chaman, Raman and Suman were partners in a firm sharing profits and losses in the ratio of 5:3:2. With effect from 1st April, 2025, they decided to share the future profits in the ratio of 2:3:5. For this purpose, it was agreed that the goodwill of the firm be valued at Rs 1,00,000. The treatment of goodwill without opening goodwill account will be:

Rudali Ltd. invited applications for issuing 2,00,000 equity shares of Rs 10 each at a premium of Rs 2 per share. Rs 5 per share (including premium) was payable on application. Applications for 2,60,000 shares were received. An applicant for 5,000 shares paid his entire share money along with application. The amount received on application was:

Assertion (A): In case of admission of a new partner in the partnership firm, there is a need to ascertain the new profit sharing ratio among all the partners.

Reason (R): On admission of a new partner, the profit sharing ratio among the old partners will change, keeping in view their respective contribution to the profit sharing ratio of the incoming partner.

Choose the correct option from the following:

Dharam and Karan were partners in a firm sharing profits and losses in the ratio of 7:3. On 1st April, 2025, they admitted Vinod as a new partner in the firm. Dharam surrendered 1/3rd of his share in favour of Vinod and Karan surrendered 1/4th of his share in favour of Vinod. The new profit sharing ratio will be:

Damodar, Rao and Shridharan were partners in a firm sharing profits and losses in the ratio of 3:1:1. Their fixed capitals were Rs 4,00,000; Rs 3,00,000 and Rs 2,00,000 respectively. Interest on capital is allowed at the rate of 6% per annum. Journal entry for allowing interest on Rao's capital will be:

Atul, Bajaj and Madan were partners in a firm sharing profits and losses in the ratio of 1:2:5. The partnership deed provides that interest on a partner's drawings shall be charged @ 18% per annum. During the year ended 31st March, 2025, Bajaj withdrew Rs 7,000 at the end of each quarter. Interest on Bajaj's drawings will be:

Radhey Ltd. has an authorized capital of Rs 50,00,000 divided into equity shares of Rs 100 each. The company invited applications for issuing 45,000 shares. Applications for 44,000 shares were received and allotment in full was made to all the applicants. All calls were made and duly received except on 500 shares on which the final call of Rs 20 per share was not received. The company forfeited 400 shares on which the final call was not received.

Which error occur when a column is not wide enough or a negative date or time is used? State the various steps to correct this error.

Classify the following items under major heads and sub-heads (if any) in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013:

(i) Loose tools

(ii) Design

(iii) Capital work in progress

From the following information of CK Ltd, prepare a Common Size Statement of Profit and Loss for the year ended 31st March, 2024 and 31st March, 2025:

Mohit, Anisha and Shivam were partners in a firm sharing profits and losses in the ratio of 4:3:2. On 30th September, 2023 Mohit died. After all necessary adjustments, Mohit's capital account showed a credit balance of Rs 4,50,000. On 1st October 2023, Mohit's executors were paid Rs 50,000 in cash and the balance in two equal yearly instalments starting from 30th September, 2024 with interest @ 6% p.a. on the unpaid amount. The firm closes its books on 31st March every year.

Prepare Mohit's Executors account till the Amount is finally paid.

Nandini and Reva were partners in a firm sharing profits and losses in the ratio of 5:3. Nandini withdrew the following amounts from the firm for her personal use during the year ending 31st March 2025:

(i) For the first five months, she withdrew Rs 2,000 at the end of each month.

(ii) For the remaining months, she withdrew Rs 3,000 at the beginning of each month.

Interest on drawings was to be charged @ 6% p.a. The books of the firm are closed on 31st March every year. Calculate interest on Nandini's drawings for the year ending 31st March, 2025.

Average profits of a firm during the last few years were Rs 3,20,000. The normal rate of return in a similar business is 10%. If the goodwill of the firm is Rs 8,00,000 at four years purchase of super profit, find the capital employed by the firm.

Shiv, Riya and Rohit were partners in a firm. On 1st October, 2024 Rohit had given a loan Rs 2,00,000 to the firm, at an interest rate of 10% p.a. as per the partnership agreement. The accountant of the firm is emphasizing that interest on loan will be paid at 6% p.a. The amount of interest on loan paid to Rohit for the year ended 31st March, 2025 will be:

Suvasita Ltd. has an authorized capital of Rs 40,00,000 divided into equity shares of Rs 100 each. The company invited applications for 36,000 shares. Applications for 35,000 shares were received and shares were allotted in full to all the applicants. All calls were made and were duly received except on 400 shares on which the final call of Rs 20 per share was not received. The company forfeited 300 of these shares on which final call was not received.

From the following information, prepare a comparative statement of profit and loss of Nexa Ltd. for the year ended 31st March, 2025.

= SUM (E2E3) will give an error while using spreadsheet. Identify the error and state the various steps to correct this type of error.

Gautam, Kunal and Abhay were partners in a firm sharing profits and losses in the ratio of 3:2:2. On 31st July, 2023, Gautam died. After all necessary adjustments, Gautam's capital account showed a credit balance of Rs 7,00,000. On 1st August, 2023 Gautam's executors were paid Rs 1,00,000 in cash and the balance was to be paid in two equal yearly instalments starting from 31st July, 2024, with interest @ 6% p.a. on the unpaid amount. The firm closes its books on 31st March every year.

Prepare Gautam's Executors Account till the amount is finally paid.