Q4) A, B and C were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 3. Their fixed capitals were Rs. 10,00,000, Rs. 2,00,000 and Rs. 3,00,0000 respectively. For the year 1996 interest on capital was credited to them @ 10% instead of 9% p.a.. Showing your working notes clearly pass the necessary adjusting journal entry.

Q5) X, Y and Z were partners in a firm sharing profits in 4 : 3 : 2 ratio. They had a joint life policy of Rs. 1,80,000 on which the annual premium paid was considered as an expense. On 1st January, 1996 X died. On that date there was a debit balance of Rs. 45,000 in their profit and loss account. Pass the necessary journal entries on X's death. (Marks 4)

Q6) L, M and O were partners in a firm sharing profits in 1 : 3 : 2 ratio. L retired and the new profit sharing ratio between M and O was 1 : 2. On L's retirement the goodwill of the firm was valued at Rs. 1,20,000. Pass necessary journal entry for the treatment of goodwill without opening goodwill account on L's retirement. (Marks 4)

Q11) The following is the position of Current Assets and Current Liabilities of X Ltd.

The company incurred a loss of Rs. 50,000 during the year. Calculate cash from operations.

Q12) "Comparison with the help of ratios is not possible if different firms follow different accounting policies." Comment. (Marks 4)

Q13) A company has a loan of Rs. 30,00,000 as part of its capital employed. Interest payable on the loan is 12% and the ROI of the company is 25%. The rate of income tax is 40%. What is the gain to the shareholders due to the loan raised by the company? (Marks 5)