List of top Accountancy Questions

Pass necessary journal entries for the following transactions on the dissolution of the firm of Sanya and Manya after various assets (other than cash) and external liabilities have been transferred to Realisation Account :

(i) Machinery of the book value of Rs 90,000 was sold for Rs 1,00,000 through a broker who charged 4% commission.
(ii) Stock was worth Rs 52,000 out of which stock worth Rs 42,000 was taken over by Sanya at Rs 45,000 and the balance of the stock was sold for Rs 11,000.
(iii) Debtors of Rs 23,000 were sold to a debt collection agency who charged commission of Rs 1,500.
(iv) Furniture of Rs 49,000 was accepted by Manya against settlement of her loan of Rs 55,000.

Pass necessary journal entries in the books of Elegant Ltd. for issue of debentures in the following cases :

(i) Issued 7,000, 10% Debentures of Rs 100 each at a discount of 5%, redeemable at a premium of 10% after 6 years.
(ii) Issued 8,000, 11% Debentures of Rs 100 each at a premium of 10%, redeemable at a premium of 5% after 6 years.

Aadi, Priya and Vicky were partners in a firm, sharing profits and losses in the ratio of 3 : 1 : 1. Priya died on 30th June, 2022. After all the necessary adjustments, her Capital to Account showed a credit balance of Rs 6,90,000. Priya's executors were paid Rs 90,000 cash on 1st July, 2022 and the balance amount to be paid in three equal yearly instalments, starting from 30th June, 2023 with interest @ 6% p.a. on the unpaid amount. The firm closes its books on 31st March every year.

Prepare Priya's Executor's Account till 31st March, 2024.

Utsav Ltd. issued Rs 50,00,000, 9% Debentures of Rs 100 each on 1st April, 2024 at a premium of 10%. Give necessary journal entries in the books of Utsav Ltd. relating to debenture interest for the year ending 31st March, 2025, assuming that the interest was paid half-yearly on 30th September and 31st March every year.

The Capital Accounts of Mala and Vaibhav stood at Rs 3,00,000 and Rs 2,00,000 respectively, after the necessary adjustments in respect of drawings and net profits for the year ended 31st March, 2025. It was later discovered that interest on drawings @ 6% p.a. was not taken into account while calculating the net profit. The drawings of the partners were : Mala Rs 10,000 drawn at the beginning of each quarter and Vaibhav Rs 10,000 drawn at the end of each half year. The profits for the year ended 31st March, 2025 amounted to Rs 3,00,000. The profit sharing ratio of Mala and Vaibhav was 3 : 2.

Pass the necessary adjusting entry. Show your working clearly.

The books of partners Nitish and Anshul showed that their capital employed on 31st March, 2025 was Rs 5,00,000. The average profit of the last five years was Rs 60,000. The normal rate of return in a similar business is 10%. Calculate the value of goodwill of the firm on the basis of capitalisation of average profit method.

Vidur and Kavita were partners in a firm. Their capitals were Rs 5,00,000 and Rs 4,00,000 respectively. The business earned average profits of Rs 1,20,000 during the last few years. The normal rate of return in a similar business is 10%. Calculate the value of goodwill of the firm by capitalisation of super-profits method.

Mallika Ltd. took over assets of Rs 40,00,000 and liabilities of Rs 4,00,000 of Pari Ltd. for a purchase consideration of Rs 45,00,000. The payment of the purchase consideration was made by issue of 11% Debentures of Rs 100 each at a discount of 10% to Pari Ltd..

Pass the necessary journal entries for the above transactions in the books of Mallika Ltd..

Hina, Sia and Anu were partners in a firm, sharing profits and losses in the ratio of 2 : 3 : 4. The firm was dissolved on 31st March, 2025. Hina was appointed to look after the dissolution work for which she was allowed a remuneration of Rs 30,000. Hina agreed to bear realisation expenses. Actual realisation expenses amounted to Rs 35,000, which were paid by Hina. For realisation expenses, the Realisation Account will be debited by :

The debentures which can be transferred by the way of delivery and the company does not keep any record of the debentures holders are called ___________ debentures.

Prerna and Riya were partners in a firm, sharing profits and losses in the ratio of 4 : 3. Arun was admitted as a new partner for 1/5th share in the profits of the firm. Arun brought Rs 80,000 as his share for premium for goodwill and proportionate capital. The capitals of Prerna and Riya, after all adjustments, were Rs 2,50,000 and Rs 1,50,000 respectively. The capital brought in by Arun was :

Aarti, Nikita and Sakshi were partners in a firm, sharing profits and losses in the ratio of 2 : 3 : 5. Nikita retired. Her share of profit was taken up by Aarti and Sakshi in the ratio of 2 : 1. The new profit sharing ratio between Aarti and Sakshi will be :

Glow Ltd. forfeited 900 equity shares of Rs 100 each for non-payment of second and final call of Rs 20 per share. These shares were reissued as fully paid up at maximum permissible discount as per Companies Act, 2013. The amount transferred to the Capital Reserve Account was :

Kartik and Yogesh were partners in a firm, sharing profits and losses in the ratio of 2 : 1. Their capitals were Rs 6,00,000 and Rs 4,00,000 respectively. Interest on capital is allowed @ 8% p.a. The firm earned a profit of Rs 60,000 for the year ended 31st March, 2025. Interest on capital credited to the partners will be :

Gautam and Sunita were partners in a firm, sharing profits and losses in the ratio of 3 : 1. Their capitals were Rs 5,00,000 and Rs 2,00,000 respectively. On 1st April, 2025, they admitted Namita as a new partner in the firm for 1/4th share in the future profits. Namita brought Rs 3,00,000 as her capital. The goodwill of the firm on Namita's admission was :

Adish, Bina and Chand were partners in a firm, sharing profits and losses in the ratio of 4 : 2 : 1. Bina's share of profit at the end of the year amounted to Rs 1,40,000. Adish's share in the profit was :

Farid, Madhur and Tarush were partners in a firm, sharing profits and losses in the ratio of 5 : 3 : 2. The firm closes its books on 31st March every year. Tarush died on 30th November, 2025. As per the partnership deed, the executors of the deceased partner are entitled to his share of the profits till the date of death, calculated on the basis of last year's profit. Profit for the year ended 31st March, 2025 was Rs 3,60,000. Tarush's share of profit was :

Vani Ltd. purchased furniture of Rs 6,60,000 from Max Ltd. The payment was made by issue of 11% Debentures of Rs 100 each at a premium of 10%. The number of debentures issued in favour of Max Ltd. were :

A portion of the uncalled capital reserved by a company to be called only in the event of winding up of the company, is called :

Reema and Leena were partners in a firm, sharing profits and losses in the ratio of 4 : 1. On 1st April, 2024, Maya was admitted as a new partner for 1/4th share in the profits of the firm. Maya was guaranteed a minimum profit of Rs 1,20,000. Any deficiency on this account was be borne by Reema and Leena in the ratio of 3 : 2. During the year ended 31st March, 2025, the firm earned a net profit of Rs 4,00,000. The amount of deficiency borne by Leena will be :

Lily Ltd. forfeited 1,000 shares of Rs 100 each issued at a premium of 10% on which application money of Rs 40 per share had been paid. Out of these, 500 shares were reissued as fully paid up for Rs 80 per share. The amount transferred to the Capital Reserve Account was :

There are two statements Assertion (A) and Reason (R):

Assertion (A) : At the time of dissolution of partnership firm, Realisation Account is prepared.

Reason (R) : When the firm is dissolved, its books of accounts are to be closed and the profit or loss arising on realisation of its assets and discharge of its liabilities is to be computed.

Choose the correct option from the following :

Avi and Gita were partners in a firm, sharing profits and losses in the ratio of 2 : 1. They admitted Suhaan as a new partner for 1/4th share in the profits of the firm. Suhaan acquired his share from Avi and Gita in the ratio of 1 : 2. The new profit sharing ratio between Avi, Gita and Suhaan will be :

Atul and Raj were partners in a firm, sharing profits and losses in the ratio of 4 : 3. Ira was admitted as a new partner for 1/4th share in the profits of the firm. Ira brought Rs 3,50,000 as her capital and Rs 1,00,000 as her share of goodwill premium. The value of firm's goodwill was :

Nitya Ltd. issued 9,000, 11% Debentures of Rs 100 each at Rs 97 per debenture. On issue of these debentures, 11% Debentures Account was credited by :