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Accounting Business Laws Quantitative Aptitude Business Economics
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Accounting Business Laws Quantitative Aptitude Business Economics
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Why does a trial balance that agrees not prove the books are correct?
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Paper Marks Readiness Paper 1 58/100 Paper 2 71/100 Paper 3 44/100 Paper 4 66/100
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Why is the sacrifice ratio not the same as the old profit sharing ratio?
Because it measures what each old partner gives up: old share minus new share. Section: Admission of a partner.
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Concept exhibits A forfeited share needs two entries, and the re-issue decides the capital reserve.
Paper 1
Admitting a partner changes three things, and each has its own sharing ratio.
Paper 1
Every agreement under the Contract Act lands in one of four boxes. Remember who can enforce it.
Paper 2
Questions students get wrong, with the working Every snap shows the logic so you can solve the next one yourself.
Paper 1 · Depreciation
Machine bought on 1 April 2023 for Rs 1,00,000, depreciated at 10% on written down value. What is its book value on 31 March 2026?
1. Year 1: 10% of 1,00,000 = 10,000. Left: 90,0002. Year 2: 10% of 90,000 = 9,000. Left: 81,0003. Year 3: 10% of 81,000 = 8,100. Left: 72,900Rs 72,900. Straight line would wrongly give Rs 70,000.
Paper 2 · Contract Act
A promises to give B Rs 500 as a gift, with nothing in return. Can B enforce it?
1. Check consideration. There is none.2. Section 25 makes it void, unless an exception applies.3. The gift exception needs writing, registration and natural love and affection between near relatives.Not enforceable. A bare promise to a friend is void.
Paper 3 · Effective rate
12% a year, compounded quarterly. What is the effective annual rate?
1. Quarterly rate = 12% / 4 = 3%2. Growth in a year = 1.03 to the power 4 = 1.12553. Subtract 1 and write as a percentage12.55%, not 12%.
Paper 4 · Elasticity
Price rises 10% and quantity demanded falls 20%. Is demand elastic and what happens to revenue?
1. Elasticity = 20% / 10% = 2, so demand is elastic2. New revenue = 1.10 x 0.80 = 0.88 of oldElastic. Revenue falls by 12%.
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