1. Explain the treatment of goodwill in the books of accounts on admission of a new partner.

2. What do you mean by ‘‘insolvency’’ of a partner? Explain the principles in the case of Garners Vs Murray.

3. Fire occurred in the premises on 1.1.2002 and the business books and records were saved. The following information was obtained.
Purchases for the year ending 30.6.2001 Rs. 60,000
Sales for the year ending 30.6.2001 Rs. 90,000
Purchases from 1.7.01 to 31.12.01 Rs. 35,000
Sales from 1.7.01 to 31.12.01 Rs. 50,000
Stock on 30.6.01 Rs. 28,000
Stock on 30.6.2000 Rs. 40,000

Calculate the amount of claim to be presented to the Insurance Company in respect of the loss by fire.

4. Explain the various methods of redemption of debentures.

5. Write notes on revolution of assets and liabilities in case of retirement.

6. What is a share? What are the conditions which should be fulfilled for issues of shares at a discount?

7. What is goodwill? How is it treated on the admission of a partner?

8. What do you understand by a debenture? Describe briefly the different types of debentures.

9. What are departmental accounts? What are the objects and advantages of preparing these accounts? Explain the basis of allocation of expenses over various departments.

10. Distinguish between Hire Purchase system and Installment Purchase system. Discuss briefly the accounting aspects of them.

11. What is admission of a partner? What are the adjustments to be made while admitting a new partner?