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Question 2

What are the key concepts of Partnership?

Answer 2

Partnership, Partnership Deed, Fixed vs. Fluctuating Capital, Interest on Capital, Interest on Drawings, Salary to Partners.

Question 3

What is the formula for Interest on Capital?

Answer 3

Interest on Capital = (Capital × Rate × Time) / 100.

Question 4

What is the formula for Interest on Drawings?

Answer 4

Interest on Drawings = (Drawings × Rate × Time) / 100.

Question 5

How do you calculate Partner’s Share of Profit?

Answer 5

Partner’s Share of Profit = Total Profit × Profit Sharing Ratio.

Question 6

What is the journal entry for Interest on Capital?

Answer 6

Interest on Capital: Profit & Loss Appropriation A/c Dr. → To Partner’s Capital A/c.

Question 7

What is the Gaining Ratio?

Answer 7

Gaining Ratio = New Ratio – Old Ratio.

Question 8

What is the Sacrificing Ratio?

Answer 8

Sacrificing Ratio = Old Ratio – New Ratio.

Question 9

What is the formula for Goodwill Compensation?

Answer 9

Goodwill Compensation = Goodwill Value × Sacrificing Ratio.

Question 10

How do you calculate Adjusted Capital?

Answer 10

Adjusted Capital = Old Capital + Share of Reserves - Goodwill Adjustment.

Question 11

Provide an example of Gaining Ratio calculation.

Answer 11

If A & B share profits in 3:2 and change to 2:3, the gaining ratio = (2/5 - 3/5) and (3/5 - 2/5) = 1:1.

Question 12

What are the key concepts for Admission of a Partner?

Answer 12

New Profit-Sharing Ratio Calculation, Goodwill Adjustment, Revaluation of Assets & Liabilities.

Question 13

What is the formula for New Partner’s Share?

Answer 13

New Partner’s Share = 1 - (Old Partners’ Combined Share).

Question 14

What is the journal entry for Goodwill Brought in Cash?

Answer 14

Cash/Bank A/c Dr. → To Goodwill A/c.

Question 15

What are the key concepts for Retirement and Death of a Partner?

Answer 15

Calculation of Gaining Ratio, Settlement of Retiring Partner’s Dues, Adjustment of Goodwill, Revaluation, and Accumulated Profits.

Question 16

What is the formula for Due to Retiring Partner?

Answer 16

Due to Retiring Partner = Capital + Reserves + Goodwill Share + Share of Profit/Loss.

Question 17

What is the journal entry for Retirement?

Answer 17

Retiring Partner’s Capital A/c Dr. → To Cash/Bank A/c.

Question 18

What are the key concepts for Dissolution of Partnership Firm?

Answer 18

Realisation Account, Settlement of Liabilities and Assets, Treatment of Partner’s Loan and Capital.

Question 19

What is the formula for Realisation Profit/Loss?

Answer 19

Realisation Profit/Loss = Total Realisation - Liabilities Paid - Expenses.

Question 20

What is the journal entry for Closing Assets?

Answer 20

Realisation A/c Dr. → To Assets A/c.

Question 21

What are the key concepts for Accounting for Share Capital?

Answer 21

Issue of Shares: At Par, At Premium, At Discount, Forfeiture and Reissue of Shares.

Question 22

What is the formula for Share Capital?

Answer 22

Share Capital = No. of Shares × Face Value per Share.

Question 23

What is the journal entry for Share Issue at Premium?

Answer 23

Bank A/c Dr. → To Share Capital A/c
To Securities Premium A/c.

Question 24

What are the key concepts for Accounting for Debentures?

Answer 24

Issue of Debentures, Interest on Debentures, Redemption of Debentures.

Question 25

What is the formula for Interest on Debentures?

Answer 25

Interest on Debentures = (Debenture Value × Interest Rate × Time) / 100.

Question 26

What is the journal entry for Issue of Debentures?

Answer 26

**Bank A/c Dr.** → **To Debentures A/c** **To Premium on Debentures A/c**.

Question 27

What are the key concepts of Financial Statements of a Company?

Answer 27

Balance Sheet: Assets, Liabilities, Profit & Loss Statement.

Question 28

What is the formula for Net Profit?

Answer 28

Net Profit = Revenue - Expenses.

Question 29

What is the formula for Gross Profit?

Answer 29

Gross Profit = Sales - Cost of Goods Sold.

Question 30

What are the key concepts for Financial Statement Analysis Tools?

Answer 30

Comparative Statements, Common-Size Statements, Cash Flow Statement.

Question 31

What is the formula for Percentage Change in Comparative Statement Analysis?

Answer 31

Percentage Change = [(New Value - Old Value) / Old Value] × 100.

Question 32

What are the key ratios in Ratio Analysis?

Answer 32

Liquidity Ratios, Solvency Ratios, Profitability Ratios.

Question 33

What is the formula for Current Ratio?

Answer 33

Current Ratio = Current Assets / Current Liabilities.

Question 34

What is the formula for Quick Ratio?

Answer 34

Quick Ratio = (Current Assets - Inventory) / Current Liabilities.

Question 35

What is the formula for Debt to Equity Ratio?

Answer 35

Debt to Equity Ratio = Total Debt / Shareholders’ Equity.

Question 36

What is the formula for Gross Profit Ratio?

Answer 36

Gross Profit Ratio = (Gross Profit / Net Sales) × 100.

Question 37

What is the formula for Net Profit Ratio?

Answer 37

Net Profit Ratio = (Net Profit / Net Sales) × 100.

Question 38

What are the key concepts of Cash Flow Statement?

Answer 38

Operating, Investing, and Financing Activities.

Question 39

What is the formula for Net Cash Flow?

Answer 39

Net Cash Flow = Cash from Operating Activities + Cash from Investing Activities + Cash from Financing Activities.

Question 40

What are the key concepts of Computerized Accounting?

Answer 40

Introduction to Tally & Accounting Software, Data Entry and Report Generation.