Related InterviewSolutions

• Distinguish between Opening Stock and Closing Stock
• Differentiate between Assets and Goods on the basis of any two points.
• Explain the following terms : (a) Revenue (b) Trade Payables (c ) Fictitious Assets (d) Working Capital
• Distinguish between expenses and losses.
• Godrej Ltd. Imported from Germany one machinery for sale in India and another machinery for production purpose. Will you treat them goods or fixed assets?
• Mr Prem commenced business of trading in electronic goods with an initial capital of Rs 15,00,000. out of the said Rs 15,00,000, he paid Rs 10,00,000 towards purchase of electronic goods. He further spent Rs 2,00,000 on furnishing the shop and Rs 35,000 for purchase of computer and printer. Rs 10,000 is yet to be paid to supplier of computer. He sold goods costing Rs 5,00,000 for Rs 7,00,000 in cash and goods costing Rs 2,50,000 for Rs 3,10,000 on credit. Goods sold on credit for Rs 25,000 were returned being defective. These goods (costing Rs 20,000) were returned to the supplier. Looking into the response, he decided to trade in home appliances also and further invested Rs 5,00,000. He purchased electronic goods and home appliances for Rs 8,00,000 out of which purchaese of Rs 2,00,000 were on credit. Due to an earthquake, 2 LCD Televisions costing Rs 50,000 were completely destroyed Mr. Prem received an insurance claim of Rs 30,000. A customer purchased goods costing Rs 2,25,000 for Rs 3,00,000 and was allowed discount of Rs 15,000. He was further allowed discount of Rs 5,000 for payment within agreed time. He paid salary to Shyam of Rs 55,000 were yet to be paid. He insured the goods and paid insurance premium of Rs 10,000. out of this, Rs 5,000 are for the next year. Yor are required to answer the following questions on the basis of the above : (i) What is the amount of capital invested in the business by Mr. Prem ? (ii) What is the amount invested by Mr. Prem in fixed assets ? (iii) What is the amount of total purchases ? (iv) What is the amount of long -term liabilities ? (v) What is the amount of current liabilities ? (vi) What is the amount of prepaid expenses ? (vii) What is the amount of outstanding expenses ? (viii) What is the income earned by Mr.Prem ? (ix) How much profit is earned by Mr. Prem ? (x) What is the amount due form debtors ? (xi) What is the amount due to creditors ? (xii) What is the value of Closing Stock ? (xiii) What is the value of net purchases ? (xiv) What is the amount of Trade Discount allowed ? (xv) Has Mr. Prem allowed Cash Discount ? If yes, what is the amount ? (xvi) What is the amount of Drawings ? (xvii) What is the amount of Sales Return ? (xviii) What is the amount of Purchases Return ?
• Explain the meaning of any three of the following terms: (i) Liability, (ii) Stock, (iii) Business Transaction and (iv) Drawings
• Which of the following is not an expense ?A. FurnitureB. SalaryC. RentD. Electricity Expenses
• Which of the following is not a busincess transaction ?A. Bought furniture of Rs 25,000 for businessB. Paid for salaries of employees, Rs 20,000C. Cash withdrawn from personal bank account, Rs 10,000 for domestic use.D. All of the above
• A liability arises because ofA. cash transactionsB. Credit transactionsC. cash as well as credit transactionsD. None of these