Explain the different system of maintaining the accounts of a dependent branch. How profit is ascertained under each system? Discuss.
Explain the term ‘Default’ and ‘Repossession’ both in relation to ‘hire purchase transaction’ and ‘installment sale transaction’. Describe the difference between accounting treatment under hire purchase system and installment payment system.
Discuss how is goodwill brought in by an incoming partner treated in the books of account? Explain how is goodwill treated when the incoming partner does not bring his share of goodwill in cash?
Can a company issue shares at a discount? If so, explain legal provisions relating to issue of shares at a discount under section 79 of the companies Act.
Describe various ways in which a company can redeem its debentures.
Explain various ratios that helps the management while taking the decision about the solvency position of the firm.
Discuss how are the provisions of tax and proposed dividends treated while ascertaining the amount of funds from operations and preparing Fund Flow statement.