UNIT PART QUESTIONS

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 ADVANCED FINANCIAL ACCOUNTING
QUESTIONS
What is meant by Branch?
What is a Head Office?
Enumerate different kinds of Branchs.
What do you mean by Dependent Branch?
How do you find closing debtors of a dependent branch if not given?
What is meant by stock and debtor system?
What do you mean by Branch adjustment account?
What is meant by whole sale branch?
What is Invoice Price?
What do you mean by Goods-in-Transit?
What is Cash-in-Transit?
List out any two objectives of Branch Accounts.
What is meant by Debtors system?
What do you mean by Petty Cash?
What is meant by Shortage/Surplus?
Write a short note on Branch Expenses Account?
List out any two features of Dependent Branch.
Write a short note on branch stock at invoice price?
How is 'goods in transit' treated in branch accounts.
What do you understand by inter-branch transaction?
What are the objectives of Branch Accounts?
What arre the features of a Dependent Branch?
What are the accounting adjustments requred in Debtors System when goods are sent at invoice price to the branch?
Briefly explain the debtors system of maintaining a branch account in head office books.
List out the methods which can be adopted a prepare the accounts of dependent branches in Head office books.

Explain the features of an Independent Branch.

Briefly explain the stock and debtor system.
Discuss the method of incorporation of branch Trial Balance into Head office Books.
Describe the wholesale branch methods of ascertaining branch profit in head office books.
Explain reasons for sending goods to branches at 'Invoice Price'.
 R.N.Swamy & Co., have opened a branch at Neyveli . The following is the list of transactions between the head offic
for the year ending June 30,1996. All the branch expenses are paid by the head office. Show the branch A/c in H.O. books.
What is meant by Department?
What do you mean by Departmental Accounts?
What is 'Direct expenses' in the context of departmental accounts?
What is 'Apportionmnet of expenses' to departments?
What do you mena by Stock Reserve?
What is 'Indirect expenses' in the context of departmental accounts?
Write a short note on 'Inter departmental Transfer?
What do you understand by inter-departmenatl transfer at 'Loaded Price'?
What is departmental profit and loss account?
What do you mean by general profit and loss account?
List out any two objectives of Departmental accounts.

List out any two difference between Departmental and Branch accouts.

List out any two advantages of departmental accounting.

What are the need for departmental accounts?
Describe the bases on which common expenses are apportioned among departments.
What are the advantages of departmental aaccounts?
Explain the merits of inter departmental transfer.
What are the bases on which common expenses are apportioned among the departments?

What are the objectives of departmental accounts?

Explain the procedure for preparation of departmental accounts.
Distinguish between departments accounts and branche accounts
What are 'Inter departmental transfers'? How are they treated in departmental accounts?
Expalin the need for 'Stock Reserves' in the context of departmental accounts.

What are final accounts?

What is meant by long term liability?
When do you mean by manufacturing accounts?
What is gross profit?
List out any four operating income.
What is balance sheet?
What do you meant by net profit?
What is meant by prepaid expenses?
What do you mean by outstaning expenses?
What is meant by non-operating expenses?
What is meant by factory expenses?
List out any four Direct expenses.
Who is sole trader?
What do you mean by trading account?
What is meant by profit and loss account?
What is mean by liquid assets?
What is mean by accrued income?
What do you mean by contingent liability?
List out any two fictitious assets.
What do you mean by closing stock?
What are the steps involved in preparation of final accounts Explain briefly?
Distinguish between trial balance and balance sheet.
What are the differences between trading account and profit and loss account?
What are the items added to and reduced from the capital of the balance sheet?
Prepare trading account of a trader for the year ending 31st December 1996 from the following data:
Opening stock (01/01/1996) Rs. 50,000
Goods purchased during 1996 Rs.2,80,000
Freight and packing on the above Rs. 20,000
Closing stock (31/12/1996) Rs. 60,000
Sales Rs. 3,80,000
Packing epenses on sales for
distribution Rs. 12,000

Calculate the Gross Profit from the following data:

Sales Rs. 3,00,000
Sales Returns Rs. 10,000
Purchases Rs. 1,00,000
Closing Stock Rs. 50,000
Opening Stock Rs. 20,000
Differentiate between Trial balance and Balance sheet?
Briefly explain different adjustments for preparation of Final Accounts?
Give specimen of profit and loss accounting?
Explain Liquidity order and permanency order of arranging assets and liabilities in balance sheet with specimen balan
From the following information. Prepare Trading and Profit and Loss Account.
Opening Stock Rs. 2,600
Purchases Rs. 13,000
Sales Rs. 24,000
Carriage inwards Rs. 2,000
Return outwards Rs. 1,800
Depreciation on Machinery Rs. 800
Returns inwards Rs. 800
Wages Rs. 1,600
Wages outstanding Rs. 400
Indirect Expenses Rs. 2,300
Closing Stock Rs. 14,000

From the following balances as on 31st 2004, Prepare a Balance Sheet for Mr.Ranjan.
Capital Rs.1,20,000
Cash in hand Rs. 56,000
Building Rs. 1,40,000
Creditors Rs. 80,000
Closing Stock Rs 1,80,000
Debtors Rs. 1,00,000
Machinery Rs 1,60,000
Long-term Loan Rs. 3,20,000
Outstanding Wages Rs. 1,40,000
Investment Rs. 1,40,000
Net Profit Rs. 1,16,000
From the following balances as on 31/12/2004, Prepare Trading and Balance Sheet for Mr.Raj
Capital Rs. 30,000
Cash Rs. 1,000
Furniture Rs. 2,500
Salaries Rs. 5,500
Rent Rs. 1,300
Debtors Rs. 40,000
Trade Expenses Rs. 600
Purchase Rs. 25,000
Bank Rs. 5,600
Creditors Rs. 9,500
Sales Rs. 32,000
Loan Rs. 10,000

Adjustments:
i) Closing Stock Rs.9,000
ii) Salary outstanding Rs.500
iii) Rent paid in advance Rs.100
iv) Provide for doubtful debts at 5%
v) Depreciate Furniture by 10%.
What are the features of manufacturing account?

From the following balances of Arvind, prepare a Trading A/C, Profit and loss A/C and Balance Sheet as at 31st Dece
Credit Balances:
Capital Rs. 72,000
Creditors Rs. 17,440
Bills Payable Rs. 5,054
Sales Rs. 1,56,364
Loan Rs. 24,000
Debit Balances:
Debtors Rs. 7,770
Salaries Rs. 8,000
Discount Rs. 2,000
Write a short note on
i) Closing Stock
ii) Outstanding expnses
iii) Prepaid expenses
iv) Accrued income

Define the term “Depreciation”?

What is a depreciable asset?
What is meant by provision?
What do you mean by annuity method?
What is meant by Depletion?
What is Obsolescence?
State any two causes for depreciations.
What is Scrap value?
List out any two characteristics of depreciation.
What is a Straight line method of depreciation?
What is Diminishing Balance method of depreciation?
What is meant by Lapse of time?
List out any two merits of straightline method.
What is meant by Insurance policy method?
Write a formula for rate of depreciation in straightline method?
What do you mean by revluation method?
List out any two demerits of diminishing balance method.
Write a formula for amount of depreciation in straightline method?
List out any two merits of diminishing balance method.
What is ment by machine hour rate method?
What are the characteristics of depreciation?
How do you compute depreciation rate under straight line method?
What are the demerits of diminishing balance method?
What are the basic factors affecting the amount of depreciation?
A company purchased a seond hand plant for Rs.30,000. It immediately spent on it Rs.5,000. The plant was put to use o
having used it for six years, it was sold for Rs.15,000. You are required to prepare the plant A/C years, providing depreciation
cost.
A firm purchased a plant for Rs 40,000, erection charges Rs 2000. Effective life of the plant is 5 years. Calculate the amount o
year under straight line method.
Ram Brothers purchased a machine on 1 July 1995 at a cost of Rs 14,000 and spent Rs 1,000 on its installation. The firm writ
at 10 % at original cost every year. The books are closed on 31 st December every year. Give journal entries and prepa
depreciation account for 3 years.
A motor cycle purchased on 1 January 1996 for Rs 25,000, deprecated at 10 % on diminishing balance method, was sold on 3
for Rs 16,500. Prepare motor cycle account.

On 1st April 2001, Kumar purchased a second hand machine for Rs 80,000 and spent Rs 20,000 on its cartage, repairs an
residual value at the end of its expected useful of 4 years is estimated at Rs 40.000. On 30 th September 2003, this machine is s
Deprecation is to be provided according to straight line method. Prepare machinery accounts.
A company purchased a plant for Rs.50,000. The useful life of the plant is 10 years and the residual value is Rs.10,000. F
depreciation under the straightline method.

Describe the causes for depreciation.

Explain the merits and demerits of straightline methods.
Enumerate the various methods of charging depreciation.
Explain the objectives and need of depreciation.
Differentiate straight line method and diminishing balance method
Machinery was purchased on 1-1-1986 for Rs.40,000. On 30th june, another second hand machine was purchased fo
Rs.5,000 was spent for repairs. On 30th june 1987 the second machine was sold for Rs.15,000. Prepare machinery a
allowing depreciation of 10% p.a. on the written down value method.
On 1st April 2001, Kumar purchased a second hand machine for Rs 80,000 and spent Rs 20,000 on its cartage, repairs an
residual value at the end of its expected useful of 4 years is estimated at Rs 40.000. On 30 th September 2003, this machine is s
Deprecation is to be provided according to straight line method. Prepare machinery accounts.

A company purchased a second hand plant for Rs.30,000 and immediately spent Rs.5,000 on repairs. The plant was p
January 1985. After using it for six years it was sold for Rs.15,000. You are required to prepare the plant account fo
providing depreciation at 10% on diminishing balance method. Accounts are closed on 31st december.
A machine puprchased on 1st july 1983 at a cost of Rs.14,000 and Rs.1,000 was spent on its installation. The deprec
off at 10% on the original cost every year. The books are closed on 31st December each year. The machine was sold
31st March 1986. Show the machinery account for all the years.
A second hand machine was purchased on 01.01.1990 forRs.30,000 and the repair charges amounted to Rs.6,000. It w
cost of Rs.4,000. on 1st July 1991 another machine was purchased for Rs.26,000 on 1st July 1992 the 1st machine wa
Rs.30,000. on the same day, one more machine was bought for Rs.25,000. On 31.12.92 the machine bought on 1st Ju
for Rs.23,000. Accounts are closed every year on 31st December. Depreciation is written off at 15% per annum. Prep
account in straightline method for three years ending 1992.

What is Hire Purchase?

What is 'Cash Price'?
What is meant by Hire Purchase Price?
What do you mean by Down Payment?
Who is a Hire vendor?
What is 'Asset accrual Method'?
What do you mean by Default?
What is meant by 'Repossession'?
What do you mean by 'Complete Repossion'?
What is 'Partial Repossion'?
What do you mean by 'Repossessed Stock'?
What is meant by 'Hire Purchase Trading Account'?
What is 'Shop Stock'?
What is Hire Purchase System?
What is meant by Instalment Purchase System?
What do you mean by 'Interest Suspense Account'?
Who is 'Hirer'?
What do you mean by Interest?
What is meant by Credit Purchase with Interest Method?
List out any two difference between Hire Purchase System and Instalment System.
State the content of the hire purchase agreement as per Hire Purchase Act 1972?
Explain the Hire Purchase trading account.
What are the characteristics of Hire Purchase System?
How do you ascertain the value of repossessed stock in case of Complete repossession and Partial repossession?
On 1-1-1990 X bought some trucks under hire purchase system for Rs.51,000 payable by three equal instalments com
and interest, the latter being a normal rate of 5% per annum. The present value of an annuity of one rupee for three ye
2.72325.
Raman purchase a motor car from Bharthan whose cash price is Rs.56,000 on 1-1-1993. Rs.15,000 is paid on signing
the balance is to be paid in three equal annual instalments of Rs. 15000 each. The rate of interest is 5% p.a. Calculate
interest included in each instalment.

X purchased machinery under hire purchase agreement from Y. The cash price of the machinery was Rs.15,500. The
be made as follows on signing the agreement 3000; First year end 5000; Second year end 5000; Third year end 5000.
interest for each year.
Calculate cash price of a machine from the following information. Down payment Rs.10,000; Four annual instalment
each year Rs.10,000; Rate of imterest 5% p.a
On1-1-1986, X purchased machinery on hire purchase system. The payment is to be made Rs.4,000 down (on signin
contract) and Rs.4,000 annually for three years. The cash price of the machinery is Rs.14,900 and the rate of interest
the interest in each year's instalment.
Mr. X purchased a motor car on hire purchase system payable Rs.40,000 annually for 10 years. The rate of interest is
presrent value of an annuity of Re. 1 for 10 years at 5% is Rs.7.7217, calculate cash price.
Distinguish between the Hire Purchase System and Instalment System.
Give specimen journal entries for Hire Purchase system in the books buyer and Hire vendor.
Enumerate the methods of computing interest under the Hire Purchase system.
Briefly explain instalment Purchse system.
State the main features of Hire Purchase System.
The Madras trading Co. purchased a motor car from Bombay motor Co. on hire purchase agreement on 1.1.1980. pay
Rs.10,000 and agreeing to pay further three instalments of Rs.10,000 each on 31st December each year. The cash pri
Rs.37,250 and the Bombay motor Co. charges interest at 5% p.a. The Madras Trading Co. writes off 10% p.a as depr
reducing balance method. Journal entries in the books of buyer.
On 1-1-1990 velan bought a machine from devi on the instalment system. The cost price of the machine was Rs.17,43
payment was made to be made as follows: Rs.5,000 to be paid on signing of the agreement and the balance in three in
Rs.5,000 each at the end of the each year. It is agreed to charge interest at the rate of 10% by Devi, Velan has decided
15% annually on the diminishing balance on the value of the assets. Show the each year interest and depreciation amo

On1-1-1991Ravi Kumar purchased a machine on hire purchase system. The total cash price of the machine was Rs.1
20,000 has to be paid down and the balance in four equal annual instalments of Rs.22,000 each. It should be noted th
instalments includes interest on outstanding balance. Find out the amount of interest.

X purchased a typewriter on hire purchsase system. As per terms, he is required to pay Rs.800 down, Rs.400 at the en
year Rs.300 at the end of the second year and Rs.700 at the end of the third year. Interest charged at 5% p.a. Calculate
price of the typewriter and the amount of the interest payable in each instalment.
UNIT PART QUESTIONS
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 ADVANCED FINANCIAL ACCOUNTING
QUESTIONS
What is meant by Branch?
What is a Head Office?
Enumerate different kinds of Branchs.
What do you mean by Dependent Branch?
How do you find closing debtors of a dependent branch if not given?
What is meant by stock and debtor system?
What do you mean by Branch adjustment account?
What is meant by whole sale branch?
What is Invoice Price?
What do you mean by Goods-in-Transit?
What is Cash-in-Transit?
List out any two objectives of Branch Accounts.
What is meant by Debtors system?
What do you mean by Petty Cash?
What is meant by Shortage?
Write a short note on Branch Expenses Account?
List out any two features of Dependent Branch.
Write a short note on branch stock at invoice price?
How is 'goods in transit' treated in branch accounts.
What do you understand by inter-branch transaction?
What are the objectives of Branch Accounts?
What arre the features of a Dependent Branch?
What are the accounting adjustments requred in Debtors System when goods are sent at invoice price to the branch?
Briefly explain the debtors system of maintaining a branch account in head office books.
List out the methods which can be adopted a prepare the accounts of dependent branches in Head office books.
The Kanpur Shoe Company opened a branch at Delhi in 1998. From the following particulars prepare Delhi Branch A/C for th
Goods sent to branch Rs.15,000
Cash sent to branch for expenses Rs. 6,000
Cash received from the branch Rs. 24,000
Stock on 31-12-1998 Rs. 2,300
Petty Cash in hand Rs. 40

R.N Swamy &Co have opened a branch at Neyveli. The following is a list of transactions between the head office and the bran
ending hune 30, 1996.
Stock at branch on 31st july 1995 Rs. 3,000
Goods supplied to branch during the year Rs.48,000
Salaries Rs. 2,400
Rent Rs. 720
Telephone Rs. 200
Petty expenses Rs. 300
Remittence received from the branch during the year Rs.55,000
Stock on 30th june 1996 Rs. 2,500
Balance of petty cash Rs. 20
All the branch expenses are paid by head office. Show the branch A/C in H.O. books.
Indian traders, Bombay opened a branch at Baroda on 1.1.1988. The following information is available in respect of the branch
1988.
Goods sent to branch Rs.75,000
Cash sales at branch Rs. 50,000
Credit sales at the branch Rs. 60,000
Slaries Rs. 15,000
Office expenses Rs. 12,000
Cash remittance to branch towards petty cash Rs. 6,000
Petty cash on 31.12.1988 Rs. 500
Debtors on 31.12.1988 Rs. 5,000
Stock on 31.12.1988 Rs. 27,000
Prepare Branch Account to show the profit or loss from the branch for the year 1988.

From the following particulars ascertain the profit or loss from the branch.
Opening stock at the branch Rs. 45,000
Goods sent to the branch Rs. 1,35,000
Sales at the branch Rs.1,80,000
Expenses:
Salaries Rs. 15,000
Other expenses Rs. 6,000
The branch manager is entitled to a commission of 5% before charging such commission. Closing stock could not be ascert
known that the branch usually sells at cost plus 20%.

Sun Limited, opened in 1996 a branch at Maduarai. It invoiced goods to the branch at cost plus 25%. Information about 1996
Goods sent to the branch (invoice price) Rs.50,000
Cash sent to branch for expenses Rs. 8,000
Sales: Cash Rs.22,000
Credit Rs.23,000
Cash recived form debtors Rs.20,000
Bad debts written off Rs. 600
Stock on 31 st December (invoice price) Rs. 4,800
Give journal entries in the head office books for 1996.

Explain the features of an Independent Branch.

Briefly explain the stock and debtor system.
Discuss the method of incorporation of branch Trial Balance into Head office Books.
Describe the wholesale branch methods of ascertaining branch profit in head office books.
Explain reasons for sending goods to branches at 'Invoice Price'.

From the following details of a branch, prepare branch account in the books of head office and find out the frofit or loss made b
Goods sent to branch at cost Rs.50,000
Goods reutrned from branch at cost Rs. 3,000
Expenses paid by H.O Rs. 10,000
Remittance received from branch Rs. 45,000
Received from debtors by branch Rs. 42,000
Cash Sales Rs. 2,500
Credit Sales Rs. 51,000
Closing stock with the branch Rs. 17,000
Branch debtors (Closing balance) Rs. 7,700
Discount allowed to debtors by branch Rs. 1,800
Relax Limited supplies goods to its New Delhi Branch at cost plus 25%. All cash sales at branch are daily remitted to Head off
directly pays all the branch expenses. The result of the branch operations for the year ended 31.12.1993 were as follows.
Stock of goods at branch (1.1.93) (invoice price) Rs. 3,000
Goods supplied at invoice price Rs.24,000
Remittance from the branch Rs.25,000
Salaries and wages Rs. 1,900
Rent and Rates Rs. 600
Sundry expenses Rs. 2,000
Returns from the branch (invoice price) Rs. 150
Stock of goods at branch (31.12.93) (invoice price) Rs. 8,000

Layal shoe company opened a branch at Madras on 1.1.1989. From the following particulars, the Madras Branch account for th
Goods sent to Madras Branch Rs. 15,000
Cash sent to branch for
Rent Rs. 1,800
Salaries Rs. 3,000
Other expenses Rs. 1,200
Cash received from the branch Rs. 24,000
Stock on 31 st December Rs. 2,300
Petty cash in hand on 31st December Rs. 40

The following information relates to Madurai branch

Stock on 1.1.1994 Rs.11,200
Branch debtors on 1.1.1994 Rs. 6,300
Goods sent to Branch Rs.51,000
Cash sent to Branch for:-
Rent Rs. 1,500
Salaries Rs.3,000
Petty Cash Rs. 500
Sales at Branch :
Cash Rs. 25,000
Credit Rs. 39,000
Cash received from Debtors Rs. 41,200
Stock on 31.12.1994 Rs. 13,600
Prepare Branch account for the year 1994.
Ganesh traders, Bangalore have a branch at Madras to which goods are sent at cost price to be sold for cash and credit
Stock on 1-1-1991 Rs. 27,000
Debtors on 1-1-1991 Rs. 9,000
Bank balance on 1-1-91 Rs. 8,400
Cash sales Rs. 14,400
Goods returned by customers Rs. 540
Discount allowed to customers Rs. 1,320
Cash remitted to H.O. by branch Rs. 75,000
Wages and salaries paid by branch Rs. 1,200
Miscellaneous expenses paid by branch Rs. 600
Stock on 31-12-1991 Rs. 19,260
Goods sent to branch Rs. 54,000
Goods returned to H.O. by branch Rs. 1,080
Credit sales Rs. 72,000
Cash collected from customers Rs. 66,000
Bad debts writen off Rs. 780
Rent,Rates and Insurance paid by H.O. Rs. 1,500
From the above particulars, you are required to prepare;
A) Branch stock account B) Branch debtors account C) Branch expenses account
D) Branch profit and loss account E) Branch bank account.
What is meant by Department?
What do you mean by Departmental Accounts?
What is 'Direct expenses' in the context of departmental accounts?
What is 'Apportionmnet of expenses' to departments?
What do you mena by Stock Reserve?
What is 'Indirect expenses' in the context of departmental accounts?
Write a short note on 'Inter departmental Transfer?
How do you understand by inter-departmenatl transfer at 'Loaded Price'?
What is departmental profit and loss account?
What do you mean by general profit and loss account?
List out any two objectives of Departmental accounts.
What is 'Indirect expenses' in the context of departmental accounts?
List out any two need for departmental accounting.
Write any two examples of direct expenses?
How do allocate the following expenses.
i) Carriage Inward
ii) Depreciation on fixed assets
List out any two difference between Departmental and Branch accouts.
Write any two examples of indirect expenses?
How do allocate the following expenses
i) Salary
ii) Lighting
What is selling expenses?
List out any two advantages of departmental accounting.
What are the need for departmental accounts?
Describe the bases on which common expenses are apportioned among departments.
What are the advantages of departmental aaccounts?
Explain the merits of inter departmental transfer.
What are the bases on which common expenses are apportioned among the departments?
What are the objectives of departmental accounts?
Explain the procedure for preparation of departmental accounts.
Distinguish between departments accounts and branche accounts
What are 'Inter departmental transfers'? How are they treated in departmental accounts?
Expalin the need for 'Stock Reserves' in the context of departmental accounts.
What is Hire Purchase?
What is 'Cash Price'?
What is meant by Hire Purchase Price?
What do you mean by Down Payment?
Who is a Hire vendor?
What is 'Asset accrual Method'?
What do you mean by Default?
What is meant by 'Repossession'?
What do you mean by 'Complete Repossion'?
What is 'Partial Repossion'?
What do you mean by 'Repossessed Stock'?
What is meant by 'Hire Purchase Trading Account'?
What is 'Shop Stock'?
What is Hire Purchase System?
What is meant by Instalment Purchase System?
What do you mean by 'Interest Suspense Account'?
Who is 'Hirer'?
What do you mean by Interest?
What is meant by Credit Purchase with Interest Method?
List out any two difference between Hire Purchase System and Instalment System.
State the content of the hire purchase agreement as per Hire Purchase Act 1972?
Explain the Hire Purchase trading account.
What are the characteristics of Hire Purchase System?
How do you ascertain the value of repossessed stock in case of Complete repossession and Partial repossession?
On 1-1-1990 X bought some trucks under hire purchase system for Rs.51,000 payable by three equal instalments com
and interest, the latter being a normal rate of 5% per annum. The present value of an annuity of one rupee for three ye
2.72325.
Raman purchase a motor car from Bharthan whose cash price is Rs.56,000 on 1-1-1993. Rs.15,000 is paid on signing
the balance is to be paid in three equal annual instalments of Rs. 15000 each. The rate of interest is 5% p.a. Calculate
interest included in each instalment.
X purchased machinery under hire purchase agreement from Y. The cash price of the machinery was Rs.15,500. The
be made as follows on signing the agreement 3000; First year end 5000; Second year end 5000; Third year end 5000.
interest for each year.
Calculate cash price of a machine from the following information. Down payment Rs.10,000; Four annual instalment
each year Rs.10,000; Rate of imterest 5% p.a
On1-1-1986, X purchased machinery on hire purchase system. The payment is to be made Rs.4,000 down (on signin
contract) and Rs.4,000 annually for three years. The cash price of the machinery is Rs.14,900 and the rate of interest
the interest in each year's instalment.
Mr. X purchased a motor car on hire purchase system payable Rs.40,000 annually for 10 years. The rate of interest is
presrent value of an annuity of Re. 1 for 10 years at 5% is Rs.7.7217, calculate cash price.
Distinguish between the Hire Purchase System and Instalment System.
Give specimen journal entries for Hire Purchase system in the books buyer and Hire vendor.
Enumerate the methods of computing interest under the Hire Purchase system.
Briefly explain instalment Purchse system.
State the main features of Hire Purchase System.
The Madras trading Co. purchased a motor car from Bombay motor Co. on hire purchase agreement on 1.1.1980. pay
Rs.10,000 and agreeing to pay further three instalments of Rs.10,000 each on 31st December each year. The cash pri
Rs.37,250 and the Bombay motor Co. charges interest at 5% p.a. The Madras Trading Co. writes off 10% p.a as depr
reducing balance method. Journal entries in the books of buyer.
Give specimen in Hire Purchase Trading Account.

On 1-1-1990 velan bought a machine from devi on the instalment system. The cost price of the machine was Rs.17,43
payment was made to be made as follows: Rs.5,000 to be paid on signing of the agreement and the balance in three in
Rs.5,000 each at the end of the each year. It is agreed to charge interest at the rate of 10% by Devi, Velan has decided
15% annually on the diminishing balance on the value of the assets. Show the each year interest and depreciation amo

On1-1-1991Ravi Kumar purchased a machine on hire purchase system. The total cash price of the machine was Rs.1
20,000 has to be paid down and the balance in four equal annual instalments of Rs.22,000 each. It should be noted th
instalments includes interest on outstanding balance. Find out the amount of interest.
X purchased a typewriter on hire purchsase system. As per terms, he is required to pay Rs.800 down, Rs.400 at the en
year Rs.300 at the end of the second year and Rs.700 at the end of the third year. Interest charged at 5% p.a. Calculate
price of the typewriter and the amount of the interest payable in each instalment.
Define partnership?
List out any two features of partnership
What is revaluation account?
What is a memorandum revaluation account?
What is goodwill?
What do mean by interest on drawings?
What is sacrifice ratio?
What do you undrstand by 'Hidden goodwill'?
What do mean by interest on capital?
What is divisible profits of a firm?
What is gaining ratio ?
What is 'Revaluation of assets and Liabilities?
Mention any five contents of a 'Partnership deed'?
What do you mean by partnership?
What is join life policy?
What is meant by Surrender value?
What do you mean by 'Retirement' of a partner?
What is Revaluation account?
What do you mean by super profit?
List out any two types of goodwill.
  What is partnership Deed? Describe its contents?

Explain the difference methods of valuation of goodwill?

Explain the difference methods of trading good will on the admission of a new partner?
How do you treat goodwill on retirement of partner?
 X and Y are partners sharing profits in the Ratio of 3:2. They admit Z as a partner for 1/5 th share in future pro
Ratio.

What are the factors affecting the value of goodwill?

What are the items debited or credited to a dead partner's capital account?
What way in which payment may be made to executors or legal heirs of a dead partner?
Expalin 'Retirement cum admission.
What is meant dissolution of partnership?
what is meant dissolution of partnership firm?
Enumerate modes of dissoulution of a firm.
What is meant by 'Realisation account'?
Write a short note on unrecorded assets?
Who is called as an insolvent?
What do you mean by 'Ganer Vs Murray Rule?
What do you understand by 'Capital Ratio?
What is 'Fixed Capital Ratio?
What is 'Fluctuating Capital Ratio'?
What is 'Deficiency Account' in the context of 'All partners insolvency?
How do you close creditors accounts in dissolution when all partners are insolvent?
What do you mean by 'Piecemeal Distribution?
What do you understand by 'Proportionate capital method' used in piece meal distribution of cash?
What is meant by 'Maximum loss methods' used in piecemeal distribution of cash?
What is partnership Deed?
Define dissolution of partnership.
Write the journal entries for closing Assets Accounts?
Write a short note on unrecorded liabilities?
List out any two methods of dissolution by court.
Distinguish between dissolution of partnership and dissolution of partnership firm.
What are the different modes of dissolution of a partnership firm?
What is 'Realisation account'? Differentiate it from a 'Revaluation A/C.
How do you deal with unrecorded assets and liabilities on dissolution? Give examples.
How cash is distributed under maximum loss method of piecemeal distribution?

Describe the different modes or ways in which partnership from may be dissolved.
Give specimen journal entries for dissolution of a partnership firm.
Explain the process of dissolution in different stages.
Expain in detail the rule laid down in 'garner Vs Murray' case and its effect off closing of accounts of dissolved firm.
Explain the accounting treatment in detail when all the partners of a firm are insolvent.