Q. 5054520. If the net profit earned during the year is ₹ 1,00,000 and the amount of Bills receivables in the beginning and the end of the year is ₹20,000 and ₹ 40,000 respectively, then cash flow from operating activities will be:
(A) ₹60,000
(B) ₹1,00,000
(C) ₹80,000
(D) ₹1,20,000
Answer: (C) ₹80,000
Explanation: Bills Receivable increased from ₹20,000 to ₹40,000 (an increase of ₹20,000). An increase in a current asset means cash is tied up, so it is deducted from Net Profit. 1,00,000 – 20,000 = ₹80,000.
Q. 5054521. Sale of copy rights are considered as a part of
(A) Investing Activities
(B) Financing Activities
(C) Operating Activities
(D) Financing & Operating Activities
Answer: (A) Investing Activities
Explanation: Copyrights are intangible non-current (fixed) assets. The purchase or sale of long-term assets is classified under Investing Activities in the Cash Flow Statement.
Q. 5054522. Romi Ltd. purchased building worth ₹1,50,000 machinery worth ₹1,40,000 and furniture worth ₹10,000 from xyz co. and took over its liabilities of ₹20,000 for a purchase consideration of ₹3,15,000. They paid the purchase consideration by issuing 12% debentures of ₹100 each at a premium of 5%. What will be the number of debentures issued by Romi Ltd.
(A) 4,000
(B) 3,500
(C) 3,000
(D) 2,000
Answer: (C) 3,000
Explanation: The purchase consideration agreed upon is ₹3,15,000. The debentures are issued at a 5% premium, making the issue price per debenture ₹105 (100 + 5). The number of debentures issued = Purchase Consideration / Issue Price = 3,15,000 / 105 = 3,000 debentures.
Q. 5054523. Securities premium Reserve can be utilised
A. to return excess money received on application
B. to write off preliminary expenses
C. to issue partly paid bonus shares
D. for premium paid on Redemption of Debentures or preference shares
E. for buy back of shares
(A) A, B, C only
(B) B, C, E only
(C) C, D, E only
(D) B, D, E only
Answer: (D) B, D, E only
Explanation: According to Section 52(2) of the Companies Act, 2013, Securities Premium Reserve can be utilized for: issuing fully paid bonus shares, writing off preliminary expenses (B), writing off expenses/discount on issue of shares/debentures, providing premium on redemption of redeemable preference shares/debentures (D), and for the buy-back of its own shares (E).
Q. 5054524. What are different types of debentures from the view point of registration
A. Convertible
B. Bearer
C. Redeemable
D. Secured
E. Registered
Choose the correct answer from the options given below:
(A) A & E only
(B) B & C only
(C) B & E only
(D) C & D only
Answer: (C) B & E only
Explanation: From the viewpoint of registration (transferability), debentures are classified into two types: Registered Debentures (names recorded in the company’s register) and Bearer Debentures (transferable by mere delivery).
Q. 5054525. Identify the steps in preparation of final accounts of not for profit organisation (NPO)
A. Prepare Balance Sheet of NPO
B. Prepare Income and Expenditure Account from Receipts and payment Account
C. Prepare Receipts and payment Account
D. Adjust outstanding/prepaid expenditure/Income and determine surplus/ Deficit
E. Prepare cash book
Choose the correct answer from the options given below:
(A) E, C, B, D, A
(B) D, E, A, B, D
(C) A, B, C, D, E
(D) E, C, A, B, D
Answer: (A) E, C, B, D, A
Explanation: The chronological order is: maintaining the Cash Book (E), summarizing it into a Receipts & Payment Account (C), preparing the Income and Expenditure Account (B), processing adjustments to find the surplus/deficit (D), and finally preparing the Balance Sheet (A).