List of practice Questions

Write two objectives of Ratio Analysis.
Write any two characteristics of partnership.
Write any two circumstances when a court can issue order for dissolution of a firm.
Write any two circumstances for compulsory dissolution of a firm.
Anu, Vanu and Tanu are partners in the ratio of 4 : 3 : 2. Anu retires. Vanu and Tanu decide to share future profits in the ratio of 5 : 3. Calculate Gaining Ratio.
X, Y and Z are partners in the ratio of 3 : 2 : 1. X retires and his share is taken up by Y and Z in the ratio of 3 : 2. Calculate new profit sharing ratio.
Explain types of debentures from the point of view of convertibility.
Explain types of debentures from the point of view of security.
What is meant by Authorised Capital?
Bank overdraft is transferred to Bank account on the dissolution of a firm.
Paid-up capital can exceed called-up capital.
Capital Reserves are created from Capital Profits.
Proposed dividend is shown as contingent liability.
The financial statements of a business include Cash Flow Statement.
Debenture is a part of owned capital.
What is partnership deed?
Fill in the blanks:
(i) Partnership originates with \(\underline{\hspace{2cm}}\).
(ii) In fixed capital method, the capital accounts always show \(\underline{\hspace{2cm}}\) balance.
(iii) Premium brought by new partner is distributed to old partners in \(\underline{\hspace{2cm}}\) ratio.
(iv) \(\underline{\hspace{2cm}}\) type of goodwill fetches highest value.
(v) The annual reports of a company are issued to its \(\underline{\hspace{2cm}}\).
(vi) Common size analysis is also known as \(\underline{\hspace{2cm}}\) analysis.
(vii) Sale of property is \(\underline{\hspace{2cm}}\) type of activity.
The return on debentures is called –
The profit sharing ratio of A, B and C is \( \frac{5}{10} : \frac{6}{20} : \frac{4}{20} \). What will be the new profit sharing ratio if C retires?
The change in the value of assets and liabilities on reconstitution is recorded in which account?
Which account is also prepared along with capital account in fixed capital method?
How much interest is payable on the loan of a partner in the absence of partnership deed?
On the death of a partner, his claim is transferred to which account?
Which ratios are primarily measures of return?
Which ratios provide information critical to the long-run operation of the firm?