Write the word/phrase/term, which can substitute the following sentence (Weightage 5 Marks)
1. Partnership Final Account
1) Persons who form the partnership firm.
2) Amount of cash or goods withdrawn by partners from the business from time to time.
3) An association of two or more persons according to the Indian partnership Act 1932.
Ans. Partnership Firm
4) Act under which partnership firms are regulated.
Ans. Indian Partnership Act 1932.
5) Process of entering the name of a partnership firm in the register of Registrar.
6) Partnership agreement in written form.
Ans. Partnership Deed
7) Under this method capital, balances of partners remain constant.
Ans. Fixed Capital Method
8) Proportion in which partners share profit.
Ans. Profit Sharing Ratio
9) Such capital method in which only Capital Account is maintained for each partner.
Ans. Fluctuating Capital Method
10) The account to which all adjustments are made when capital is fixed.
Ans. Current Account
11) Expenses which are paid before they are due.
Ans. Prepaid Expenses
12) The accounts that are prepared at the end of each accounting year.
Ans. Final Accounts
13) An asset which can be converted into cash easily.
Ans. Current Assets or Liquid Assets
14) Order in which fixed assets are recorded first in the Balance Sheet.
Ans. Order of liquidation
15) The account in which selling expenses of the business are recorded.
Ans. Profit and Loss account
16) Debit balance of Trading Account.
Ans. Gross Loss
17) Credit balance of Profit and Loss Account.
Ans. Net Profit
2. Not for Profit’ Concern
1) The Form of Organization providing services to society only.
Ans: – Not for profit concern
2) An account which is prepared by Not for Profit concern instead of Profit and Loss Account.
Ans: – Income and Expenditure Account.
3) Donation received for a specific purpose.
Ans: – Specific donation / Capital receipt
4) The receipts which are not recurring in nature.
Ans: – Capital Receipt
5) An Account which records only revenue items in case of Not for profit concern.
Ans: – Income and Expenditure Account.
6) Accounts which records only cash transactions in case of Not for Profit Concern.
Ans: – Receipts and Payments Account.
7) The income which is earned during the year but not received during the year.
Ans: – Outstanding income.
8) The credit balance of Income and Expenditure Account.
Ans: – Surplus
9) To excess of total assets over total liabilities of a Not for Profit concern.
Ans: – Capital Fund.
10) All such receipts which are non-recurring in nature and not forming a part a regular flow of income.
Ans: – Capital receipts.
3. Admission of Partner
1) Method under which calculation of goodwill is done on the basis of extra profit earned above the normal profit
Ans:- Super Profit Method
2) An account opened to adjust the value of assets and liabilities at the time of admission of a partner
Ans:- Revaluation A/c or Profit and Loss A/c
3) Reputation of business measured in terms of money
4) The ratio in which general reserve is distributed to the old partners.
Ans:- Old Ratio
5) Name the method of the treatment of goodwill where new partner will bring his share of goodwill in cash.
Ans:- Premium Method
6) The proportion in which old partners make a sacrifice.
Ans:- Sacrifice Ratio
7) Capital employed × NRR/100
Ans:- Normal Profit
8) An account that is debited when the partner takes over the asset.
Ans:- Partner’s Capital A/c or Partner’s Current A/c
9) Profit and Loss Account balance appearing on the liability side of the Balance Sheet.
Ans:- Undistributed Profit or Accumulated Profit
10) Old ratio – New ratio
Ans:- Sacrifice Ratio
4. Retirement of Partner
1) Credit balance of Profit and Loss Adjustment Account.
Ans- Profit on revaluation Accounts.
2) The ratio in which the continuing partners are benefited due to the retirement of the partner.
Ans- Gain Ratio
3) Debit balance of revaluation Account.
Ans- Loss on revaluation
4) The ratio which is obtained by deducting the Old Ratio from New Ratio.
ans- Gain Ratio
5) Money value of business reputation earned by the firm over a number of years.
6) Partner’s Account where Loss or Profit on revaluation is transferred.
Ans- Capital/Current Account.
5. Death of Partner
1) Excess of credit side over the debit side of profit and loss adjustment account.
2) A Person who represents the deceased partner on the death of the Partner.
Ans:- Legal Heir’s or Executor
3) Accumulated past profit kept in the form of reserve.
Ans:- Reserve fund or General reserve.
4) The Partner who died.
Ans:- Deceased partner.
5) The proportion in which the continuing partners benefit due to the death of a partner.
Ans:- Gain/Benefit ratio
6. Dissolution of Partnership Firm
1) Debit balance of Realisation account.
Ans:- Realisation Loss
2) Winding up of partnership business.
Ans:- Dissolution of partnership
3) An account opened to find out the Profit or Loss on realisation of Assets and settlement of Liabilities.
Ans:- Realisation A/c
4) Debit balance of an Insolvent Partner’s Capital Account.
Ans:- Capital Deficiency
5) Credit balance of realisation Account.
Ans:- Realisation Profit
6) Conversion of asset into cash on dissolution of firm
7) Liability likely to arise in future on the happening of certain events
Ans:- Contingent Liabilities.
8) Assets which are not recorded in the books of account
Ans:- Unrecorded Assets
9) The account which shows realisation of assets and discharge of liabilities.
Ans:- Realisation A/c
10) Expenses incurred on dissolution of firm.
7. Bills of Exchange
1) Three extra days which are allowed over and above the term of bill.
Ans:- Grace days.
2) Fees charged by Notary Public for getting the fact of dishonour noted.
Ans :- Noting Charges.
3) Amount which is not recoverable from Drawee on account of insolvency.
Ans:- Bad debts.
4) A person who is entitled to receive the amount of bill of exchange
5) A person in whose favour a bill endorsed.
6) Officer appointed by government for noting of dishonour of bill.
Ans:- Notary Public.
7) Cancellation of bill on maturity in return of a new bill for extended period of credit.
Ans:- Renewal of Bill.
8) Bill of exchange drawn and accepted without any valuable consideration.
Ans:- Accommodation bill.
9) Person who is in possession of Bill of Exchange.
10) Conversion of Bill of Exchange into its present value.
Ans:- Discounting of the bill.
8. Company Accounts – Issue of Shares
1) Amount called-up on shares by the company but not received.
2) Issue of share at its face value
Ans: Issue at par.
3) The person who purchase the shares of a company.
4) The form of business organisation where huge amount of capital can be raised.
Ans: Joint-stock company.
5) The capital which is subscribed by the public.
Ans: Subscribed capital.
6) The shares having preferential right at the time of winding up of the company
Ans: Preference shares.
7) The shares on which dividend is not fixed.
Ans: Equity shares.
8) The part of subscribed capital which is not called-up by the company.
Ans: Uncalled capital.
9. Analysis of Financial Statements
1) The statement showing profitability of two different periods
Ans: Comparative Income Statement.
2) The ratio measures the relationship between Gross Profit and Net Sales.
Ans: Gross Profit Ratio
3) Critical evaluation of financial statements to measure profitability.
Ans: Analysis of Financial Statement
4) A particular mathematical number showing relationship between two accounting figures.
5) An asset which can be converted into cash immediately
Ans: Liquid Asset
6) The ratio measuring the relationship between net profit and ownership capital employed.
7) The statement showing financial position for different periods of previous year and current year.
Ans: Comparative Balance Sheet
8) Statement showing changes in cash and cash equivalent during a particular period.
Ans: Cash Flow Statement
9) Activity related to acquisition of long term assets and investment.
Ans: Financing Activities
10) The ratio that establishes relationship between Quick Assets and Current Liabilities
Ans: Liquid Ratio
10. Computer In Accounting
1) The details of Bills receivable are maintained in this record.
Ans: Sundry Debtors
2) Tally software is classified into this category
3) The short key used to save or accept the information.
Ans: Ctrl + A
4) It is a damaged software, cracked, nearly fully functional.
Ans: Pirated Software
5) The process by which all the calculations are automatically done by the accounting software.