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# Board Paper of Class 12-Commerce 2021 Accountancy Term-I Delhi(Set 4) (Series : SSJ/2)- Solutions

General Instructions :
1. This question paper contains 60 questions out of which 40 questions are to be attempted. All questions carry equal marks.
2. This question paper consists of three parts – Part I, II and III.
3. Part I is compulsory for all candidates. Attempt either Part II or Part III.
4. Part I comprises of three sections – Section A, B and C.
5. From Part I (Q. No. 1 to 36)– attempt any 14 questions each from Section A and B. Attempt any three questions from Section C.
6. From Part II OR III – (Q.No. 37 to 60) – attempt any four questions from Section A and any five questions from Section B.
7. Attempted first, desired number of questions only, in each Part/Section will be evaluated.
8. There is only one correct option for every multiple choice questions (MCQs). Marks will not be awarded for answering more than one option.
9. There is no negative marking.

• Question 1
The partnership deed should be properly drafted and prepared as per the provisions of the _____ and preferably registered with the ____.
(a) Indian Partnership Act 1932, Registrar of Companies.
(b) Indian Partnership Act 1932, Registrar of firms.
(c) Stamp Act, Registrar of Companies.
(d) Stamp Act, Registrar of Firms. VIEW SOLUTION

• Question 2
A Ltd. forfeited a share of ₹100 issued at a premium of 20% for non payment of first call of ₹30 per share and final call of ₹10 per share. The minimum price at which this share can be reissued is _____.
(a) ₹40 per share
(b) ₹60 per share
(c) ₹100 per share
(d) ₹80 per share VIEW SOLUTION

• Question 3
The difference between the fixed capital method and fluctuating capital method of maintaining partner's capital is whether or not the transactions other than ______ are recorded in the Capital accounts of the partners.
(b) Withdrawal of Capital
(c) Partner's Loan
(d) Both (a) and (b) VIEW SOLUTION

• Question 4
R, S and T were partners sharing profits and losses in the ratio of 5 : 3 : 2. On 31st March, 2021, their books reflected a net profit of ₹3,10,000. As per the terms of the partnership deed they were entitled for interest on Capital which amounted to ₹90,000, ₹60,000 and ₹30,000 respectively for R, S and T. Besides this an annual salary of ₹60,000 each was payable to R and S.
The ratio in which the profits would be appropriated is
(a) 1 : 1 : 1
(b) 5 : 3 : 2
(c) 5 : 4 : 1
(d) 4 : 3 : 2 VIEW SOLUTION

• Question 5
Sushila Ltd. has an 'Authorized Capital', of ₹10,00,000 divided into equity shares of ₹10 each. Subscribed and fully paid up share capital of the company was ₹4,00,000. To meet its new financial requirement, the company issued 20,000 equity shares of ₹10 each. Amount per share was payable as ₹3 on application, ₹3 on allotment; ₹2 on first call and ₹2 on second and the final call. The issue was fully subscribed. The allotment money was payable on or before May 1, 2020; first call money was due on August 1, 2020 and final call money was due on October 1, 2020. X whom 1000 shares were allotted did not pay the allotment and both calls; Y an allottee of 600 shares; did not pay the two calls; and Z whom 300 shares were allotted did not pay the final call.
Subscribed capital presented in the Balance sheet of the Company as per schedule III Part I of the Companies Act, 2013 will be :
(a) ₹9,800
(b) ₹5,90,000
(c) ₹10,00,000
(d) ₹6,00,000 VIEW SOLUTION

• Question 6

X and Y were partners sharing profits in the ratio of 3 : 2. Z was admitted as a new partner for 1/5th share. X sacrificed $\frac{3}{20}$ from his share and Y sacrificed $\frac{1}{20}$ from his share in favour of Z, the new profit sharing ratio would be :
(a) 9 : 7 : 4
(b) 8 : 8 : 4
(c) 6 : 10 : 4
(d) 10 : 6 : 5

VIEW SOLUTION

• Question 7
Lata Ltd. forfeited Maya's shares. Maya who had applied for 600 shares of ₹10 each and was allotted 400 shares failed to pay allotment money of ₹4 per share including premium of ₹2. She had paid only the application money of ₹2 per share. The first and final call was not yet called. The Journal entry for forfeiture of shares by opening calls in arrears account will be:
 (₹) (₹) (a) Share Capital A/c ………………………..         To Share forfeited A/c Dr. 90,000 11,250 1,01,250 (b) Share Capital A/c ……………………….. Securities Premium Reserve A/c          To Share forfeited A/c          To Calls in Arrears A/c Dr. 1,600 800 1,200 1,200 (c) Share Capital A/c ……………………….. Securities Premium Reserve A/c ………..          To Share forfeited A/c          To Calls in Arrears A/c Dr. Dr. 1,600 800 1,800 800 (d) Share Capital A/c ………………………..          To Shares forfeited A/c          To Calls in Arrears A/c Dr. Dr. 2,000 1,800 800​

VIEW SOLUTION

• Question 8
Versha Ltd. purchased the running business of Vikram Ltd. consisting of total assets of  ₹10,00,000 and liabilities of ₹2,00,000. Versha Ltd. paid  ₹2,00,000 immediately in Cash and Balance by issuing 7,000 shares of ₹100 each at a premium of ₹20 per share. The Goodwill A/c will be debited by______.
(a) ₹2,40,000
(b) ₹2,00,000
(c) ₹8,00,000
(d) Nil VIEW SOLUTION

• Question 9
Jupiter Ltd. invited applications for issuing 25,000 equity shares of ₹10 each and received applications for 30,000 shares along with the application money of ₹2 per share. Which of the following alternative can be followed for the allotment of shares ?
(i) Refund the excess application money and allot full shares to rest of the applicants.
(ii) Not to allot any share to some applicants, allot full to some applicants and allot remaining on prorata basis.
(iii) Not to allot any share and refund the total application money to the applicants.

(a) Only (i)
(b) Only (ii)
(c) Only (iii)
(d) Any one of (i) and (ii)
VIEW SOLUTION

• Question 10

Mallika, Meera and Madhu were partners sharing profits in the ratio of 2 : 2 : 1. They decided to share future profits in the ratio of 7 : 5 : 3 with effect from 1st April, 2021. Their Balance Sheet as on that date showed a balance of ₹30,000 in Advertisement suspense account. Amount, that will be debited/credited to the Capital accounts of Malika, Meera and Madhu if they decide to carry forward the amount of Advertisement Suspense Account.
(a) ₹12,000 (Dr); ₹12,000 (Dr) and ₹6,000 (Dr) respectively to the Capital Accounts of Malika, Meera and Madhu:
(b) Debit ₹10,000 each to all partner's Capital Accounts.
(c) Debit Meera's Capital A/c and Credit Mallika's Capital A/c by ₹2,000.
(d) Debit Mallika's Capital A/c and Credit Meera's Capital A/c by ₹2000 each.

VIEW SOLUTION

• Question 11
Arun, Babita and Charu are partners in a firm sharing profits in the ratio of 3 : 3 : 2. They decided to share future profits and losses in the ratio of 1 : 1 : 1 with effect from 1-4-2021. They decided to record the effect of the following without affecting their Book values.
(i) Profit and Loss A/C (Cr) ₹8,000
(ii) General Reserve ₹4,000
The necessary adjusting entry for the same will be:
 ₹ ₹ (a) Charu’s Capital A/c………….. Dr 1,000 To Arun’s Capital A/c 500 To Babita’s Capital A/c 500 (b) Arun’s Capital A/c………….. Dr 500 Babita’s Capital A/c………….. Dr 500 To Charu’s Capital A/c 1,000 (c) Charu’s Capital A/c………….. Dr 1,000 To Babita’s Capital A/c 1,000 (d) Charu’s Capital A/c Dr 3,000 To Arun’s Capital A/c 1,500 To Babita’s Capital A/c 1,500

VIEW SOLUTION

• Question 12
Nominal share capital is:
(a) That part of authorised capital which is issued by the company.
(b) The amount of capital which is actually applied for by the prospective shareholders.
(c) The maximum amount of share capital which a company is authorised to issue.
(d) The amount actually paid by the shareholders. VIEW SOLUTION

• Question 13
Vandana Ltd. issued 6,000 equity shares of ₹10 each at 10% premium. The issue was fully subscribed. Amount per share was payable as follows:
On application ₹3, On allotment ₹3 (including premium), On first call ₹3 and on final call ₹2.  A, a holder of 200 shares paid the entire money along with allotment. The amount received on allotment will be_______.
(a) ₹18,000
(b) ₹19,000
(c) ₹25,000
(d) ₹21,000 VIEW SOLUTION

• Question 14
Amit and Sumit were partners in a firm with capitals of ₹3,00,000 and ₹2,00,000 respectively. The normal rate of return was 20% and the capitalised value of average profits was ₹8,50,000. The Goodwill of the firm by capitalization of average profits method will be ______.
(a) ₹10,00,000
(b) ₹1,50,000
(c) ₹3,50,000
(d) ₹5,00,000 VIEW SOLUTION

• Question 15
Any change in the relationship of existing partners which results in an end of the existing agreement and entering into a new agreement is called
(a) Revaluation of Partnership Firm
(b) Reconstitution of Partnership Firm
(c) Dissolution of Partnership Firm
(d) Amalgamation of Partnership Firms VIEW SOLUTION

• Question 16
Mani and Neeru are partners in a firm sharing profits in the ratio of 5 : 3. On 1-4-2021, they admitted Lily as a new partner on the following terms :
(i) The new profit sharing ratio will be 2 : 3 : 3.
(ii) Lily will bring ₹1,00,000 for her capital and the necessary amount of goodwill premium in cash.
(iii) Goodwill of the firm was valued at ₹1,40,000.
The Journal Entry for treatment of goodwill premium brought by Lily will be

 ₹ ₹​ (a) Premium for Goodwill A/c ............ Dr. 52,500 To Mani’s Capital A/c 37,500 To Neeru’s Capital A/c 15,000 (b) Premium for Goodwill A/c ............ Dr. 52,500 To Mani’s Capital A/c 52,500 (c) Premium for Goodwill A/c ............ Dr. 52,500 Neeru’s Capital A/c ............ Dr. 12,500 To Mani’s Capital A/c 65,000 (d) Lily’s Current A/c ............ Dr. 1,40,000 To Mani’s Capital A/c 1,00,000 To Neeru’s Capital A/c 40,000​
VIEW SOLUTION

• Question 17
The company has to get minimum subscription within ________ from the date of issue of the prospectus. When minimum subscription has been received, the directors of the company proceed to make _________ which implies a valid contract between the company and the applicants who now become the allottees and assume the status of shareholders or members.
(a) 120 days, allotment of shares.
(b) 130 days, application of shares.
(c) 14 days, allotment of shares.
(d) 15 days, allotment of shares. VIEW SOLUTION

• Question 18
At the time of admission of a new partner, general reserve appearing in the old balance sheet  is transferred to :
(a) all partner's capital accounts
(b) new partner's capital accounts
(c) old partner's capital accounts
(d) revaluation account VIEW SOLUTION

• Question 19
Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R) :
Assertion (A) : It is necessary to revalue assets and liabilities of a firm in case of admission of a partner.
Reasons (R) : It is because the incoming partner is neither put to an advantage nor to a disadvantage due to change in the value of assets and liabilities.
In the context of the above statements identify the correct option.
(a) Both (A) and (R) are correct, and (R) is the correct reason of (A).
(b) Both (A) and (R) are correct, but (R) is not the correct reason of (A).
(c) Only (R) is correct.
(d) Both (A) and (R) are wrong. VIEW SOLUTION

• Question 20
A and B are partners in a firm sharing profit in the ratio of 3 : 2. Their Balance Sheet as on 31st March, 2021 was as follows:

 Liabilities Amount ₹ Assets Amount ₹ A’s Capital 30,000 Drawing: A: 4,000 B’s Capital 10,000 B: 2,000 6,000 Other Assets 34,000 40,000 40,000

Net profit of the year ended 31-3-2021, ₹5,000 was divided without providing for interest on capital @ 10% p.a. What will be the amount of interest on A's Capital?
(a) ₹3,000
(b) Nil
(c) ₹3,100
(d) ₹2,700 VIEW SOLUTION

• Question 21
Money received in advance from shareholders before it is actually called up by the directors is :
(a) debited to calls in advance account.
(b) credited to calls in advance account.
(c) debited to calls account.
(d) credited to calls account. VIEW SOLUTION

• Question 22
Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R) :
Assertion (A) : Maximum amount of discount allowed at the time of reissue of forefeited shares not exceed the forfeited amount.
Reason (R) : The excess amount of forfeited shares account is transferred to capital reserve account.
In the context of the above statements, identify the correct option.
(a) (A) is correct, but (R) wrong.
(b) Both (A) and (R) correct.
(c) (A) is wrong, but (R) is correct.
(d) Both (A) and (R) are wrong. VIEW SOLUTION

• Question 23
Devi withdrew ₹12,000 at the middle of every month. Interest on drawings was to be charged @ 12% per annum. Amount of interest on Devi's drawings will be:
(a) ₹14,400
(b) ₹8,640
(c) ₹7,200
(d) ₹1,200 VIEW SOLUTION

• Question 24
Vista Ltd. forfeited 200 shares held by Ravi for non-payment of allotment money of ₹40 per share (including premium of ₹10 per share). The first and final call of ₹20 per share was not yet called. In the forfeiture entry share capital account will be:
(a) Debited by ₹20,000
(b) Debited by ₹18,000
(c) Debited by ₹16,000
(d) Credited by ₹16,000 VIEW SOLUTION

• Question 25
If the purchase consideration is less than the amount of net assets taken over, which account will be credited for the differenced amount?
(a) Goodwill Account
(b) Vendor's Account
(c) Capital Reserve Account
(d) Asset Accounts VIEW SOLUTION

• Question 26
Uncalled Capital is that portion of the _________ which has not yet been called up and the portion of such uncalled capital to be called only in the event of winding up of the company is called __________.
(a) Subscribed Capital; Reserve Capital
(b) Issued Capital; Reserve Capital
(c) Authorised Capital; Capital Reserve
(d) Registered Capital; Capital Reserve VIEW SOLUTION

• Question 27
Given below are two statements, one labelled as Assertion (A) and other labelled as Reason (R) :
Assertion (A) : The fixed capital account balance of a partner may change due to additional Capital introduced or capital withdrawn or both, during the year.
Reason (R) : Under fixed capital method, the partner's capital accounts balance always remains some.
In the context of the above two statements which of the following is correct?
(a) Both (A) and (R) are correct.
(b) (A) is correct, but (R) wrong.
(c) (A) is wrong, but (R) is correct.
(d) Both (A) and (R) are wrong. VIEW SOLUTION

• Question 28
Vamini Ltd. forfeited 3,000 shares of ₹10 each, ₹8 called up for non-payment of allotment money of ₹5 per share. All the forfeited shares were reissued to Atul at ₹8 per share fully paid. The amount debited to share forfeiture Account at the time of reissue will be:
(a) ₹9,000
(b) ₹6,000
(c) ₹3,000
(d) ₹15,000 VIEW SOLUTION

• Question 29
Seema and Teena are partners in a firm sharing profits and losses in the ratio of 3 : 2. They agreed to admit Reena into partnership for $\frac{1}{5}\mathrm{th}$ share of profits on 1st April, 2021. On that date, workmen's compensation fund stood in the balance sheet at ₹50,000. The liability against workmen's compensation fund is determined at ₹20,000 which is to be paid later in the year.
What will be the Journal Entry for the treatment of Workmen compensation fund on the admission new partner Reena?
 ₹ ₹ (a) Workmen Compensation fund A/c................ Dr   30,000 To Seema's Capital A/c       To Teena's Capital A/c 18,000 12,000 (b) Workmen Compensation fund A/c................ Dr   50,000 To Revaluation A/c       To Seema's Capital A/c       To Teena's Capital A/c 20,000 18,000 12,000 (c) Workmen Compensation fund A/c................ Dr   50,000 To Workmen Compensation Claim A/c       To Seema's Capital A/c       To Teena's Capital A/c 20,000 18,000 12,000 (d) Workmen Compensation fund A/c................. Dr   50,000 To Seema's Capital A/c       To Teena's Capital A/c 30,000 20,000
VIEW SOLUTION

• Question 30
Gopal and Govind are partners in a firm sharing profits equally. They admitted Chetan for $\frac{1}{3}\mathrm{rd}$ share in profits. On admission debtor whose dues of ₹5,000 were earlier written off as bad-debts, paid ₹4,000 in full settlement. Bad debts recovered ₹4,000 will be debited to ______and credited to _______.
(a) Cash/Bank A/c, Revaluation A/c
(c) Cash/ Bank A/c, Bad debts A/c
(d) Revaluation A/c, Bad debts recovered A/c VIEW SOLUTION

• Question 31
Ram and Krishna were partners sharing profits and losses in the ratio of 2 : 1. They admitted Shanker as a partner for 1/5th share in the profits. For this purpose the Goodwill of the firm was to be valued on the basis of three times of last five years average profits. The profits for the last five years were:
 Year 2016-17 2017-18 2018-19 2019-20 2020-21 Profit (₹) 50,000 40,000 75,000 (25,000) 50,000

Profit of 2017-18 was calculated after charging ₹ 10,000 for abnormal loss of goods by fire. The value of Goodwill of the firm is
(a) ₹1,28,000
(b) ₹2,00,000
(c) ₹1,90,000
(d) ₹1,20,000 VIEW SOLUTION

• Question 32
Santa and Banta are partners in a firm charging profits in the ratio of 3 : 2. Kanta was admitted as a new partner for $\frac{1}{5}\mathrm{th}$ share of profits. On Kanta's admission it was decided that machinery would be appreciated by 10% (Book value ₹80,000) and Building would be appreciated by 20% (Book value ₹2,00,000). Unrecorded Debtors of ₹1,250 would be brought to books. There was a liability of ₹2,750 included in Sundry Creditors that is not be paid. What will be the gain/loss on Revaluation?

(a) Loss ₹28,000
(b) Loss ₹40,000
(c) Profit ₹28,000
(d) Profit ₹40,000 VIEW SOLUTION

• Question 33
Vinod Ltd. having authorized Capital ₹1,00,00,000 divided into equity shares of ₹100 each, invited applications for issuing 25,000 equity shares at par. The amount per share was payable as follows: On Application ₹20 per share, on Allotment ₹30 per share, on First call ₹25 per share and on second and final call ₹25 per share. Applications were received for 24,000 shares and the shares were allotted to all the applicants. All calls were made and were received as follows:  On 18,000 shares – Full amount On 2,000 shares – ₹75 per share On 2,500 shares – ₹50 per share On 1,500 shares – ₹20 per share
The company forfeited those shares on which less than ₹75 per share were received. The forfeited shares were reissued at ₹95 per share fully paid up.

How much amount was received on allotment?
(a) ₹6,75,000
(b) ₹7,20,000
(c) ₹6,00,000
(d) ₹4,80,000 VIEW SOLUTION

• Question 34
Vinod Ltd. having authorized Capital ₹1,00,00,000 divided into equity shares of ₹100 each, invited applications for issuing 25,000 equity shares at par. The amount per share was payable as follows: On Application ₹20 per share, on Allotment ₹30 per share, on First call ₹25 per share and on second and final call ₹25 per share. Applications were received for 24,000 shares and the shares were allotted to all the applicants. All calls were made and were received as follows:
 On 18,000 shares – Full amount On 2,000 shares – ₹75 per share On 2,500 shares – ₹50 per share On 1,500 shares – ₹20 per share

The company forfeited those shares on which less than ₹75 per share were received. The forfeited shares were reissued at ₹95 per share fully paid up.

How much total amount was credited to share forfeiture account on forfeiture of shares?
(a) ₹3,80,000
(b) ₹1,35,000
(c) ₹1,55,000
(d) ₹2,45,000 VIEW SOLUTION

• Question 35
Mountain Enterprises is a partnership firm with Manu, Mamta and Moti as partners. The firm is engaged in production and sales of electrical items and equipment. Their capital contributions were ₹50,00,000; ₹50,00,000 and ₹80,00,000 respectively. They decided to share the profit in the ratio of 5 : 5 : 8. They are now looking forward to expand their business. It was decided that they would bring in sufficient cash to double their respective capitals.
This was duly followed by Manu and Mamta but due to unavoidable reasons Moti could not do so and ultimately it was agreed that to bridge the shortfall in the required capital a new partner should be admitted who would bring in the amount that Moti could not bring and that the new partner would get share of  profits equal to half of Moti's share which would be sacrificed by Moti Only.
Consequent to this agreement Malini was admitted and she brought in the required capital and ₹30,00,000 as premium for goodwill.
What is the new profit sharing ratio of Manu, Mamta, Moti and Malini?
(a) 1 : 1 : 1 : 1
(b) 5 : 5 : 8 : 8
(c) 5 : 5 : 4 : 4
(d) 6 : 4 : 4 : 4 VIEW SOLUTION

• Question 36
Mountain Enterprises is a partnership firm with Manu, Mamta and Moti as partners. The firm is engaged in production and sales of electrical items and equipment. Their capital contributions were ₹50,00,000; ₹50,00,000 and ₹80,00,000 respectively. They decided to share the profit in the ratio of 5 : 5 : 8. They are now looking forward to expand their business. It was decided that they would bring in sufficient cash to double their respective capitals.
This was duly followed by Manu and Mamta but due to unavoidable reasons Moti could not do so and ultimately it was agreed that to bridge the shortfall in the required capital a new partner should be admitted who would bring in the amount that Moti could not bring and that the new partner would get share of  profits equal to half of Moti's share which would be sacrificed by Moti Only.
Consequent to this agreement Malini was admitted and she brought in the required capital and ₹30,00,000 as premium for goodwill.
What is the value of the goodwill of the firm?
(a) ₹1,35,00,000
(b) ₹1,50,00,000
(c) ₹30,00,000
(d) ₹1,60,00,000 VIEW SOLUTION

• Question 37
Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R) :
Assertion (A) : Current Ratio establishes relationship between Current Assets and Current Liabilities.
Reason (R) : The objective of this ratio is to measure the ability of the firm to meet its short term obligations as and when due without relying upon the realisation of inventories.
In the context of the above two statements choose the correct option.
(a) (A) is true but (R) is false.
(b) Both (A) and (R) are true, and (R) is a correct explanation of (A).
(c) Both (A) and (R) are false.
(d) (A) is false, but (R) is true. VIEW SOLUTION

• Question 38
Match the items given in Column I with the correct heading/sub-heading given in column II.  Column I Column II A. 9% Debenture redeemable during the current year i. Intangible assets B. Loose tools ii. Current liabilities C. Copyright iii. Cash and Cash equivalents D. Cash at bank iv. Inventories
 A B C D (a) i ii iii iv (b) iii ii iv i (c) iv iii ii i (d) ii iv i iii

VIEW SOLUTION

• Question 39
What will be the impact of issuing ₹5,00,000 equity shares to vendors for Building purchased on the debt and equity of X Ltd.?
(a) Debt will increase and equity will decrease.
(b) Debt will remain same and equity will increase.
(c) Debt will decrease and equity will increase.
(d) Debt will remain same and equity will decrease. VIEW SOLUTION

• Question 40
___________ ratios indicate the speed at which activities of the business are being performed.
(a) Profitability
(b) Turnover
(c) Solvency
(d) Liquidity VIEW SOLUTION

• Question 41
If operating ratio is 65%, Operating profit ratio will be ________.
(a) 20%
(b) 25%
(c) 35%
(d) 30% VIEW SOLUTION

• Question 42
Financial statement analysis includes ________ and _______ of financial statements:
(a) Analysis, preparation
(b) Preparation, interpretation
(c) Preparation, analysis
(d) Analysis, interpretation VIEW SOLUTION

• Question 43
From the following information, calculate Interest Coverage Ratio:
Net profit after tax ₹6,00,000
10% Debentures ₹50,00,000
Tax Rate 40%
(a) 1.2 times
(b) 3 times
(c) 2 times
(d) 5 times VIEW SOLUTION

• Question 44
Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R):
Assertion (A):
A high debt-equity ratio is risky.
Reason (R): It may put the firm into difficulty to pay long term debts.
​In the context of the above two statements choose the correct option.
(a) (A) is correct, but (R) is wrong.
(b) Both (A) and (R) are correct.
(c) (A) is wrong, but (R) is correct.
(d) Both (A) and (R) are wrong. VIEW SOLUTION

• Question 45
Gross profit ratio of a company was 25%. Its credit revenue from operations was ₹16,00,000 and its cash revenue from operations was 20% of the total revenue from operations. If the indirect expenses of the company were ₹50,000, its net profit ratio will be:
(a) 27.5%
(b) 20%
(c) 22.5%
(d) 25%  VIEW SOLUTION

• Question 46

From the following information, calculate Inventory Turnover ratio:
Revenue from operations ₹2,00,000
Average Inventory ₹ 20,000
Gross profit ratio 10%
(a) 9 times
(b) 10 times
(c) 12 times
(d) 20 times

VIEW SOLUTION

• Question 47
Ajanta Ltd. issued 10% Debenture of ₹8,00,000 on 1st April, 2019 which are redeemable in five equal yearly installments starting from 1st April, 2022. How would this information be presented in the Balance Sheet as at 31st March, 2021.
(a) ₹8,00,000 as Long term borrowings.
(b) ₹8,00,000 as Other Non-current liability.
(c) ₹8,00,000 as Current liability.
(d) ₹1,60,000 as other Current liability and ₹6,40,000 as Long term borrowing.
VIEW SOLUTION

• Question 48
Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R):
Assertion (A):
Return on investment explains the overall utilization of funds by a business enterprise.
Reason (R): It measures return (Net Profit before interest and tax) on total funds (Capital employed).
In the context of these statements, choose the correct option
(a) Both (A) and (R) are true but (R) is not the correct explanation of (A).
(b) Both (A) and (R) are true and (R) is correct explanation of (A).
(c) Both (A) and (R) are false.
(d) (A) is false, but (R) is true VIEW SOLUTION
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