CA Accounting question: Professional stage: Knowledge Level Subject: Accounting Sole trader and partnership financial statements (Chapter-13)

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Professional stage: Knowledge Level
Subject: Accounting
Sole trader and partnership financial statements (Chapter-13)

Q1.  What are differences between sole trader & Company financial statement? (P-354,
section overview)
Q2.  How calculate the net assets under sole trade financial statements? (P-354)
Q3.  In 2005 Waris takes drawings of Tk.40,000/- and ends 2005 with net assets of
Tk.8,50,000/- and opening capital of Tk.7,08,000. He did not introduce any capital in the
year. What was net profit of Waris in 2005?
Q4.  How a sole trader convert in to a company? (P-357, section overview)
Q5.  Why would a sole trader wish to register as a limited liability company? (P-357, S-2.1)
Q6.  Arun, a sole trader, has agreed to sell his business to Wymax Ltd for Tk.1,00,000/-, the
consideration to be paid in Tk.0.50 shares valued at Tk.0.80. The following information is
available about Arun’s business as at the sale date:
Particulars Amount (Tk.)
Fixed assets (net book value)  49,500/-
Stock 4,200/-
Debtors 5,740/-
Cash 1,850/-
Creditors 2,860/-
Wymax Ltd values Arun’s fixed assets at Tk.60,000/- and stock at Tk.3,000/-; Arun is to
retain the cash and pay off the creditors.
a) What is the gain on realization in Arun’s books?
b) With how many shares in Wymax Ltd will Arun be issued?
Q7.  What issues are included in the partnership agreement? (P-362, S-4.1)
Q8.  How does accounting for partnerships differ from accounting for sole traders? (P-365, S-5.1)
Q9.  What are differences between capital and current account? (P-366)
Q10.  What is the procedure for conversion or sale of a partnership to a company? (P-374, S-7)
Q11.  Definition: Partnership (P-362), appropriation of profit (P-365), current account (365)