2009
GUJRANWALA
BOARD
Write
short answers of the following questions:
i)
Define income and
expenditure account.
Ans. The
account through which surplus or deficit of a non-profit making organization is
ascertained, is called income and expenditure
account.
ii) Write
two defects of single entry system.
Ans. (i) It is not possible to
obtain accurate information regarding the results of business operations,
because, nominal
accounts are not been recorded.
(ii)
Both aspects of each transaction have
not been recorded.
(iii)
Information relating to assets and
liabilities cannot be reliable because respective accounts have not been
maintained.
iii) Define
consignment.
Ans. Consignment
is an act of sending the goods by the owner to his agent, who agrees to
collect, store and sell them on the
risk and behalf of the owner on commission basis.
iv) Who
is an active partner?
Ans. One
who has capital in the business and also takes part in the conduct of the
business is known as an active partner.
v) What
is company limited by shares?
Ans. In
a company limited by shares, the capital is divided into number of shares. These
shares can be freely transferred and
sold. The liability of the members is limited to the amount if any, unpaid on
shares held by them.
(vi) What
is listed (scheduled) company?
Ans. A
listed company is one whose securities are listed on stock exchange for purpose
of trading in it.
(vii) What
is partnership deed? U
Ans. The
agreement among the partners which sets out the terms on which they have agreed
to form a partnership is called partnership
deed or partnership agreement.
(viii) What
is the in corporation stage of forming a joint stock company?
Ans. A
company is incorporated when it gets certificate of in corporation from the
registrar of companies. For this purpose, following
documents are to be filed by the promoters of the company.
(a) Memorandum
of association.
(b) Articles
of association.
(c) Address
of head office.
(d) List
of directors.
(e) Consent
in writing of directors.
(f) Directors
contract to purchase qualification shares.
(g) Statutory
declaration of fulfillment of legal conditions of incorporation.
(ix) What
is amortization?
Ans. The
decrease in the value of intangible assets such as patents, copy rights,
goodwill etc.
(x) Explain
two main differences between income and expenditure account and receipts and
payments account.
Ans.
|
Receipts and Payments Account
|
Income and Expenditures Account
|
|
(a) It is a summarized statement of all
cash transactions during an accounting year.
|
(a) It is the account of revenue income and
revenue expenditures of an accounting year.
|
|
(b) Only cash transactions are recorded
here
|
(b) Cash and non-cash transactions are
recorded here.
|
|
(c) Its balance can never be credit.
|
(c) Its balance may either debit or credit.
|
|
(d) It begins with the opening balance.
|
(d) Does not commence with any balance.
|
(xi) Explain
special fund.
Ans. Amount
received for special purposes in non—profit making organizations is kept in special
fund. Legacies and donations may
be received for special purposes.
(xii) If
assets are Rs. 60,000/- and liabilities are Rs. 10,000/- calculate capital.
Ans. A
Capital = Assets —
Liabilities.
=
60,000 - 10,000
=
Rs. 50,000
(xiii) What
is del-credre commission?
Ans. The
extra commission which is paid to consignee, if loss on account of bad debts is
borne by him in case of credit sale.
(xiv) Define
goodwill.
Ans. The
benefit and advantage of good name or reputation of a business. It is the
attractive, force which brings in customers.
.
(xv) Evaluate
goodwill of 3 years purchase of average of 4 years profits / loss given as under.
1st year profit Rs. 5,000/-, 2nd year loss Rs. 3,000/-, 3rd
year profit Rs. 7,000/-, 4th year profit Rs. 7,000/-. 5,000 — 3,000
73300 7,000/-.
Ans. 5000
– 3000 + 7000 + 70000
|
16000
|
=
Rs. 4000
0 Comments
To contact Study for Super-Vision, write your comments. Avoid spamming as your post will not be seen by any one.