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This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your knowledge and support exam preparation. Choose a topic below to get started.
| 101. |
If the fixed assets account is incorrectly totaled and understated by 600, and the rent account is incorrectly totaled and overstated by 600, then which type of error is this: |
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Answer» If the fixed assets account is incorrectly totaled and understated by 600, and the rent account is incorrectly totaled and overstated by 600, then which type of error is this: |
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| 102. |
Which of the following are not valid with regard to the creditors of any organisation? |
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Answer» Which of the following are not valid with regard to the creditors of any organisation? |
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| 103. |
1.What are inductors explain elaborately and also list some of its applications. |
| Answer» 1.What are inductors explain elaborately and also list some of its applications. | |
| 104. |
An automibile company 'Maruti Suzuki' car sales of three of its car models is given in the table below:Find the numbers to be filled in the missing spaces.Also, if the total revenue of the company has to be distributed among 8 of its founding members, then find what amount will each member get. |
Answer» An automibile company 'Maruti Suzuki' car sales of three of its car models is given in the table below: Find the numbers to be filled in the missing spaces. Also, if the total revenue of the company has to be distributed among 8 of its founding members, then find what amount will each member get. |
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| 105. |
पाँच साल बाद दोनों दोस्तों की मुलाकात किन परिस्थितियों में और कहाँ होती है? |
| Answer» पाँच साल बाद दोनों दोस्तों की मुलाकात किन परिस्थितियों में और कहाँ होती है? | |
| 106. |
Goods sold to Mr. A on credit shall be credited to ___ . |
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Answer» Goods sold to Mr. A on credit shall be credited to |
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| 107. |
Pass the Opening Entry from the following Balance Sheet as at 31st March, 2018 of Vikas: Liabilities ₹ Assets ₹ Capital A/c: Land and Building 1,50,000 Opening Balance 5,05,115 Plant and Machinery 2,50,750 Add: Profit for the year 1,20,115 Chandra & Sons 71,270 6,25,230 Closing Stock 56,250 Less: Drawings 60,000 5,65,230 Cash in Hand 15,700 Salary Payable 15,000 Cash at Bank 75,250 Magic Trades 27,220 Babbar & Co. 11,770 6,19,220 6,19,220 |
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Answer» Pass the Opening Entry from the following Balance Sheet as at 31st March, 2018 of Vikas:
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| 108. |
What is an operating profit? |
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Answer» What is an operating profit? |
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| 109. |
A sold goods to B on 1st September, 2017 for ₹ 16,000. B immediately accepted a 3 months bill. On the due date, B requested that the bill be renewed for a further period of 2 months. A agreed provided interest at 9% p.a. was paid immediately in cash. To this B was agreeable. The second bill was met on the due date. Give the Journal entries in the books of A. |
| Answer» A sold goods to B on 1st September, 2017 for ₹ 16,000. B immediately accepted a 3 months bill. On the due date, B requested that the bill be renewed for a further period of 2 months. A agreed provided interest at 9% p.a. was paid immediately in cash. To this B was agreeable. The second bill was met on the due date. Give the Journal entries in the books of A. | |
| 110. |
What kinds of errors would cause a difference in the trial balance? Also, list examples that would not be revealed by a trial balance? |
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Answer» What kinds of errors would cause a difference in the trial balance? Also, list examples that would not be revealed by a trial balance? |
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| 111. |
Dinesh received from Shridhar an acceptance for ₹ 3,000 on 1st September, 2016 at 3 months. Dinesh got the acceptance discounted at 9% p.a. from his bank. On the due date, Shridhar paid the required amount.Give the Journal entries in the books of Dinesh and Shridhar. |
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Answer» Dinesh received from Shridhar an acceptance for ₹ 3,000 on 1st September, 2016 at 3 months. Dinesh got the acceptance discounted at 9% p.a. from his bank. On the due date, Shridhar paid the required amount. Give the Journal entries in the books of Dinesh and Shridhar. |
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| 112. |
M/s. Excel Computers has a debit balance of Rs 50,000 (original cost Rs 1,20,000) in computers account on April 01, 2010. On July 01, 2010 it purchased another computer costing Rs 2,50,000. One more computer was purchased on January 01, 2011 for Rs 30,000. On April 01, 2014 the computer which has purchased on July 01, 2010 became obsolete and was sold for Rs 20,000. A new version of the IBM computer was purchased on August 01, 2014 for Rs 80,000. Show Computers account in the books of Excel Computers for the years ended on March 31 2011, 2012, 2013, 2014 and 2015. The computer is depreciated 10 p.a. on straight line method basis. |
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Answer» M/s. Excel Computers has a debit balance of Rs 50,000 (original cost Rs 1,20,000) in computers account on April 01, 2010. On July 01, 2010 it purchased another computer costing Rs 2,50,000. One more computer was purchased on January 01, 2011 for Rs 30,000. On April 01, 2014 the computer which has purchased on July 01, 2010 became obsolete and was sold for Rs 20,000. A new version of the IBM computer was purchased on August 01, 2014 for Rs 80,000. Show Computers account in the books of Excel Computers for the years ended on March 31 2011, 2012, 2013, 2014 and 2015. The computer is depreciated 10 p.a. on straight line method basis. |
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| 113. |
Rectify the following errors by means of Journal entries:(i) A cheque of ₹ 5,000 received from Ashish was dishonoured and was debited to Discount Account.(ii) Purchases of ₹ 540 from Ramneek was written in Sales Book but was correctly posted to correct side to Ramneek's Account.(iii) Salary paid to Miss Yugakshi ₹ 1,000 was debited to her Personal Account as ₹ 900.(iv) Furniture costing ₹ 500, purchased from Jyoti, was wrongly entered in Purchases Book as ₹ 450. |
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Answer» Rectify the following errors by means of Journal entries: (i) A cheque of ₹ 5,000 received from Ashish was dishonoured and was debited to Discount Account. (ii) Purchases of ₹ 540 from Ramneek was written in Sales Book but was correctly posted to correct side to Ramneek's Account. (iii) Salary paid to Miss Yugakshi ₹ 1,000 was debited to her Personal Account as ₹ 900. (iv) Furniture costing ₹ 500, purchased from Jyoti, was wrongly entered in Purchases Book as ₹ 450. |
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| 114. |
लेखक ने बच्चन के व्यक्तित्व के किन-किन रूपों को उभारा है? |
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Answer» लेखक
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| 115. |
Astha Engineering Works purchased a machine on 1st July, 2015 for ₹ 1,80,000 and spent ₹ 20,000 on its installation.On 1st April, 2016, if purchased another machine for ₹ 2,40,000. On 1st October, 2017, the machine purchased on 1st July, 2015 was sold for ₹ 1,45,000. On 1st January, 2018, another machine was purchased for ₹ 4,00,000 plus IGST 12%.Prepare the Machinery Account for the years ended 31st March, 2016 to 2018 after charging Depreciation 10% p.a. by Diminishing Balance Method.Accounts are closed on 31st March every year. |
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Answer» Astha Engineering Works purchased a machine on 1st July, 2015 for ₹ 1,80,000 and spent ₹ 20,000 on its installation. On 1st April, 2016, if purchased another machine for ₹ 2,40,000. On 1st October, 2017, the machine purchased on 1st July, 2015 was sold for ₹ 1,45,000. On 1st January, 2018, another machine was purchased for ₹ 4,00,000 plus IGST 12%. Prepare the Machinery Account for the years ended 31st March, 2016 to 2018 after charging Depreciation 10% p.a. by Diminishing Balance Method. Accounts are closed on 31st March every year. |
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| 116. |
'An organisation is a collection of interdependent decision-making units that exists to pursue organisational objectives'. In the light of this statement, explain the relationship between information and decisions. Also explain the role of transaction processing system in facilitating the decision-making process in buseness organisations. |
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Answer» 'An organisation is a collection of interdependent decision-making units that exists to pursue organisational objectives'. In the light of this statement, explain the relationship between information and decisions. Also explain the role of transaction processing system in facilitating the decision-making process in buseness organisations. |
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| 117. |
A Van was purchased on 1st April, 2015 for ₹ 60,000 and ₹ 5,000 was spent on its repair and registration. On 1st October, 2016 another van was purchased for ₹ 70,000. On 1st April, 2017, the first van purchased on 1st April, 2015 was sold for ₹ 45,000 and a new van costing ₹ 1,70,000 was purchased on the same date. Show the Van Account from 2015-16 to 2017-18 on the basis of Straight Line Method, if the rate of Depreciation charged is 10% p.a. Assume that books are closed on 31st March every year. |
| Answer» A Van was purchased on 1st April, 2015 for ₹ 60,000 and ₹ 5,000 was spent on its repair and registration. On 1st October, 2016 another van was purchased for ₹ 70,000. On 1st April, 2017, the first van purchased on 1st April, 2015 was sold for ₹ 45,000 and a new van costing ₹ 1,70,000 was purchased on the same date. Show the Van Account from 2015-16 to 2017-18 on the basis of Straight Line Method, if the rate of Depreciation charged is 10% p.a. Assume that books are closed on 31st March every year. | |
| 118. |
Journalise the following transaction 2016 Jan 1 Rajesh started business with cash Rs. 1,00,000 and a building valued at Rs. 5,00,000 Jan 3 Purchased goods amounting to Rs. 2,00,000 out of which goods of Rs. 1,80,000 were purchased on credit from Smith Jan 5 Sold goods to Anil 44,000 Jan 9 Goods returned by Anil 4,000 Jan 11 Goods purchased from Karan 63,000 Jan 15 Goods returned to Karan 3,000 Jan 22 Purchased goods for cash 2,000 Jan 22 Paid cartage 100 Jan 30 Paid interest on loan 1,000 |
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Answer» Journalise the following transaction 2016 |
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| 119. |
Describe the advantages of sub-dividing the journal. |
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Answer» Describe the advantages of sub-dividing the journal. |
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| 120. |
Vinod, Vijay and Venkat are partners sharing profits and losses in the ratio of 3 : 2 : 1. They decided to dissolve their firm on 31st March, 2019, the date on which their Balance Sheet stood as: Liabilities Amount (₹) Assets Amount (₹) Creditors 17,000 Bank 3,500 Bills Payable 12,000 Stock 19,800 Vinod's Loan 5,300 Debtors 15,000 General Reserve 6,000 Less: Provision for Doubtful Debts 1,000 14,000 Capital A/cs: Investments 4,000 Vinod 25,000 Furniture 10,000 Vijay 11,000 Machinery 33,000 Venkat 8,000 44,000 84,300 84,300 The following additional information is given:(a) The Investments are taken by Vinod for ₹ 5,000 in settlement of his loan(b) Assets realised as follows: ₹ Stock 17,500 Debtors 14,500 Furniture 6,800 Machinery 30,300 (c) Expenses on realisation amounted to ₹ 2,000.Close the books of the firm giving relevant Ledger Accounts. |
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Answer» Vinod, Vijay and Venkat are partners sharing profits and losses in the ratio of 3 : 2 : 1. They decided to dissolve their firm on 31st March, 2019, the date on which their Balance Sheet stood as:
The following additional information is given: (a) The Investments are taken by Vinod for ₹ 5,000 in settlement of his loan (b)
(c) Expenses on realisation amounted to ₹ 2,000. Close the books of the firm giving relevant Ledger Accounts. |
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| 121. |
'Accounting information should be comparable. Do you agree with this statement? Give two reasons. |
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Answer» 'Accounting information should be comparable. Do you agree with this statement? Give two reasons. |
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| 122. |
A firm has not recorded the bad debts by mistake. Which of the following is the effect of bad debts omission? |
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Answer» A firm has not recorded the bad debts by mistake. Which of the following is the effect of bad debts omission? |
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| 123. |
Mr. Biggs bought several lots of inventory throughout a period for the following amounts Rs. 1,100, Rs. 2,200, Rs. 3,300, Rs. 4,400. He made sales on credit throughout this period of Rs. 1,100, Rs. 2,200, Rs. 3,300, Rs. 4,400. He sells inventory at cost plus 25%. His closing inventory at the end of the period is valued at: |
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Answer» Mr. Biggs bought several lots of inventory throughout a period for the following amounts Rs. 1,100, Rs. 2,200, Rs. 3,300, Rs. 4,400. He made sales on credit throughout this period of Rs. 1,100, Rs. 2,200, Rs. 3,300, Rs. 4,400. He sells inventory at cost plus 25%. His closing inventory at the end of the period is valued at: |
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| 124. |
Briefly explain the difference between Manual & Computerised Accounting. |
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Answer» Briefly explain the difference between Manual & Computerised Accounting. |
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| 125. |
A draws a bill on B for Rs. 4,500 for mutual accommodation in the ratio 2:1. A got it discounted at Rs. 4,230 and remitted 1/3rd of the proceeds to B. At the time of maturity, how much amount A should remit to B such that B can pay off bill? |
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Answer» A draws a bill on B for Rs. 4,500 for mutual accommodation in the ratio 2:1. A got it discounted at Rs. 4,230 and remitted 1/3rd of the proceeds to B. At the time of maturity, how much amount A should remit to B such that B can pay off bill? |
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| 126. |
Which among the following statement(s) is /are correct about Ways And Means Advances (WMA) and Overdraft:- Codes : |
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Answer» Which among the following statement(s) is /are correct about Ways And Means Advances (WMA) and Overdraft:- Codes : |
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| 127. |
Which of the following instrument is not a negotiable instrument : |
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Answer» Which of the following instrument is not a negotiable instrument : |
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| 128. |
Balance sheet is prepared on a __________. |
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Answer» Balance sheet is prepared on a __________. |
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| 129. |
The following were the balances extracted from the books of Yogita as on 31st March, 2016. ParticularsDebit (Rs.)ParticularsCredit (Rs.)Cash in Hand 540Sales98,780Cash at Bank 2,630Return Outwards 500Purchases40,675Capital Account62,000Return Inwards 680Sundry Creditors 6,300Wages 8,480Rent 9,000Fuel and Power 4,730Carriage on Sales 3,200Carriage on Purchases 2,040Opening Stock 5,760Building32,000Freehold Land10,000Machinery20,000Salaries15,000Patents 7,500General Expenses 3,000Insurance 600Drawings 5,245Sundry Debtors14,500 Taking into account the following adjustments, prepare the trading and profit and loss account and balance sheet as at 31st March, 2016. (i) Stock in hand on 31st March, 2016 was Rs. 6,800. (ii) Machinery is to be depreciated 10% and patents 20%. (iii) Salaries for the month of March, 2013 amounting to Rs. 1,500 were outstanding. (iv) Insurance includes an annual premium of Rs. 170 on a policy expiring on 30th September, 2016. (v) Further bad debts are Rs. 725. Create a provision of 5% on debtors. (vi) Rent receivable Rs. 1,000. |
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Answer» The following were the balances extracted from the books of Yogita as on 31st March, 2016. ParticularsDebit (Rs.)ParticularsCredit (Rs.)Cash in Hand 540Sales98,780Cash at Bank 2,630Return Outwards 500Purchases40,675Capital Account62,000Return Inwards 680Sundry Creditors 6,300Wages 8,480Rent 9,000Fuel and Power 4,730Carriage on Sales 3,200Carriage on Purchases 2,040Opening Stock 5,760Building32,000Freehold Land10,000Machinery20,000Salaries15,000Patents 7,500General Expenses 3,000Insurance 600Drawings 5,245Sundry Debtors14,500 Taking into account the following adjustments, prepare the trading and profit and loss account and balance sheet as at 31st March, 2016. (i) Stock in hand on 31st March, 2016 was Rs. 6,800. (ii) Machinery is to be depreciated 10% and patents 20%. (iii) Salaries for the month of March, 2013 amounting to Rs. 1,500 were outstanding. (iv) Insurance includes an annual premium of Rs. 170 on a policy expiring on 30th September, 2016. (v) Further bad debts are Rs. 725. Create a provision of 5% on debtors. (vi) Rent receivable Rs. 1,000. |
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| 130. |
Define accounting and state its objectives. |
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Answer» Define accounting and state its objectives. |
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| 131. |
A company purchased a vehicle for Rs 6000. It will be used for 5 years and its residual value is expected to be Rs 1000. What is the annual amount of deprecation using straight line method of depreciation? |
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Answer» A company purchased a vehicle for Rs 6000. It will be used for 5 years and its residual value is expected to be Rs 1000. What is the annual amount of deprecation using straight line method of depreciation? |
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| 132. |
The realisation concept determines when goods sent on credit to customers are to be included in the sales figure for the purpose of computing the profit or loss for the accounting period. Which of the following tends to be used in practice to determine when to include a transaction in the sales figure for the period. When the goods have been: a. dispatched b. invoiced c. delivered d. paid for Give reasons for your answer. |
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Answer» The
Give
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| 133. |
What are adjusting entries? Why are they necessary for preparing final accounts? |
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Answer» What are adjusting entries? Why are they necessary for preparing final accounts? |
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| 134. |
A collection of information is called ____. |
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Answer» A collection of information is called ____. |
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| 135. |
Pass the Journal entries for the following transactions on the dissolution of the firm of P and Q after various assets (other than cash) and outside liabilities have been transferred to Realisation Account:(a) Stock ₹ 2,00,000. 'P' took over 50% of stock at a discount of 10%. Remaining stock was sold at a profit of 25% on cost.(b) Debtors ₹ 2,25,000. Provision for Doubtful Debts ₹ 25,000. ₹ 20,000 of the book debts proved bad.(c) Land and Building (Book value ₹ 12,50,000) sold for ₹ 15,00,000 through a broker who charged 2% commission.(d) Machinery (Book value ₹ 6,00,000) was handed over to a creditor at a discount of 10%.(e) Investment (Book value ₹ 60,000) realised at 125%.(f) Goodwill of ₹ 75,000 and prepaid fire insurance of ₹ 10,000.(g) There was an old furniture in the firm which had been written off completely in the books. This was sold for ₹ 10,000.(h) 'Z' an old customer whose account for ₹ 20,000 was written off as bad in the previous year, paid 60%.(i) 'P' undertook to pay Mrs. P's loan of ₹ 50,000.(j) Trade creditors ₹ 1,60,000. Half of the trade creditors accepted Plant and Machinery at an agreed valuation of ₹ 54,000 and cash in full settlement of their claims after allowing a discount of ₹ 16,000. Remaining trade creditors were paid 90% in final settlement. |
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Answer» Pass the Journal entries for the following transactions on the dissolution of the firm of P and Q after various assets (other than cash) and outside liabilities have been transferred to Realisation Account: (a) Stock ₹ 2,00,000. 'P' took over 50% of stock at a discount of 10%. Remaining stock was sold at a profit of 25% on cost. (b) Debtors ₹ 2,25,000. Provision for Doubtful Debts ₹ 25,000. ₹ 20,000 of the book debts proved bad. (c) Land and Building (Book value ₹ 12,50,000) sold for ₹ 15,00,000 through a broker who charged 2% commission. (d) Machinery (Book value ₹ 6,00,000) was handed over to a creditor at a discount of 10%. (e) Investment (Book value ₹ 60,000) realised at 125%. (f) Goodwill of ₹ 75,000 and prepaid fire insurance of ₹ 10,000. (g) There was an old furniture in the firm which had been written off completely in the books. This was sold for ₹ 10,000. (h) 'Z' an old customer whose account for ₹ 20,000 was written off as bad in the previous year, paid 60%. (i) 'P' undertook to pay Mrs. P's loan of ₹ 50,000. (j) Trade creditors ₹ 1,60,000. Half of the trade creditors accepted Plant and Machinery at an agreed valuation of ₹ 54,000 and cash in full settlement of their claims after allowing a discount of ₹ 16,000. Remaining trade creditors were paid 90% in final settlement. |
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| 136. |
What do you understand by database? How does it differ from DBMS? |
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Answer» What do you understand by database? How does it differ from DBMS? |
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| 137. |
On 1st July, 2015, Sohan Lal & Sons purchased a plant costing ₹ 60,000. Additonal plant was purchased on 1st January, 2016 for ₹ 40,000 and on 1st October, 2016, for ₹ 20,000, paying CGST and SGST 6% each. On 1st April, 2017, one-third of the plant purchased on 1st July, 2015, was found to have become obsolete and was sold for ₹ 6,000, charging CGST and SGST 6% each.Prepare the Plant Account for the first three years in the books of Sohan Lal & Sons. Depreciation is charged 10% p.a. on Straight Line Method. Accounts are closed on 31st March each year. |
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Answer» On 1st July, 2015, Sohan Lal & Sons purchased a plant costing ₹ 60,000. Additonal plant was purchased on 1st January, 2016 for ₹ 40,000 and on 1st October, 2016, for ₹ 20,000, paying CGST and SGST 6% each. On 1st April, 2017, one-third of the plant purchased on 1st July, 2015, was found to have become obsolete and was sold for ₹ 6,000, charging CGST and SGST 6% each. Prepare the Plant Account for the first three years in the books of Sohan Lal & Sons. Depreciation is charged 10% p.a. on Straight Line Method. Accounts are closed on 31st March each year. |
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| 138. |
The initial money Akash had (before the beginning of the game sessions) was Rs. X. At no point did he have to borrow any money. What is the minimum possible value of X? |
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Answer» The initial money Akash had (before the beginning of the game sessions) was Rs. X. At no point did he have to borrow any money. What is the minimum possible value of X? |
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| 139. |
A shopkeeper bought an almirah for Rs 455 and sold it for Rs 525. What was his gain? |
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Answer» A shopkeeper bought an almirah for Rs 455 and sold it for Rs 525. What was his gain? |
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| 140. |
Price elasticity of demand is (-1). The consumer buys 50 units at price Rs 2 per unit. How many units will he buy if price rises to Rs 4 per unit? Answer this with the help of total expenditure method of determining price elasticity of demand. |
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Answer» Price elasticity of demand is (-1). The consumer buys 50 units at price Rs 2 per unit. How many units will he buy if price rises to Rs 4 per unit? Answer this with the help of total expenditure method of determining price elasticity of demand. |
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| 141. |
How does the matching principle apply to depreciation? |
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Answer» How does the matching principle apply to depreciation? |
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| 142. |
Prepare the Trial Balance of Ankit as on 31st March, 2019. He has omitted to open a Capital Account: ₹ ₹ Bank Overdraft 85,000 Purchases 4,45,000 Sales 8,10,000 Cash in Hand 8,500 Purchases Return 22,500 Creditors 2,15,000 Debtors 4,00,500 Sales Return 15,750 Wages 96,000 Equipment 25,000 Capital ? Opening Stock 3,00,500 |
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Answer» Prepare the Trial Balance of Ankit as on 31st March, 2019. He has omitted to open a Capital Account:
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| 143. |
A and B were partners in a firm sharing profits in 3 : 1 ratio. They admitted C as a partner for 1/4th share in the future profits. C was to bring ₹ 60,000 for his capital. The Balance Sheet of A and B as at 1st April, 2019, the date on which C was admitted, was: Liabilities ₹ Assets ₹ Capital A/cs: Land and Building 40,000 A 50,000 Plant ad Machinery 70,000 B 80,000 1,30,000 Stock 30,000 General Reserve 10,000 Debtors 35,000 Creditors 70,000 Less: Provision for Doubtful Debts 1,000 34,000 Investments 26,000 Cash 10,000 2,10,000 2,10,000 The other terms agreed upon were:(a) Goodwill of the firm was valued at ₹ 24,000.(b) Land and Building were valued at ₹ 65,000 and Plant and Machinery at ₹ 60,000.(c) Provision for Doubtful Debts was found in excess by ₹ 400.(d) A liability of ₹ 1,200 included in Sundry Creditors was not likely to arise.(e) The capitals of the partners be adjusted on the basis of C's contribution of capital to the firm.(f) Excess of shortfall, if any, be transferred to Current Accounts.Prepare Revaluation Account, Partners' Capital Accounts and Balance Sheet of the new firm. |
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Answer» A and B were partners in a firm sharing profits in 3 : 1 ratio. They admitted C as a partner for 1/4th share in the future profits. C was to bring ₹ 60,000 for his capital. The Balance Sheet of A and B as at 1st April, 2019, the date on which C was admitted, was:
The other terms agreed upon were: (a) Goodwill of the firm was valued at ₹ 24,000. (b) Land and Building were valued at ₹ 65,000 and Plant and Machinery at ₹ 60,000. (c) Provision for Doubtful Debts was found in excess by ₹ 400. (d) A liability of ₹ 1,200 included in Sundry Creditors was not likely to arise. (e) The capitals of the partners be adjusted on the basis of C's contribution of capital to the firm. (f) Excess of shortfall, if any, be transferred to Current Accounts. Prepare Revaluation Account, Partners' Capital Accounts and Balance Sheet of the new firm. |
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| 144. |
Compute Trade Receivables Turnover Ratio from the following: 31st March, 2018(₹) 31st March, 2019(₹) Revenue from Operations (Net Sales) 8,00,000 7,00,000 Debtors in the beginning of year 83,000 1,17,000 Debtors at the end of year 1,17,000 83,000 Sales Return 1,00,000 50,000 |
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Answer» Compute Trade Receivables Turnover Ratio from the following:
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| 145. |
Define Source Documents. |
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Answer» Define Source Documents. |
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| 146. |
Following is the Balance Sheet of Arvind and Balbir as at 31st March, 2019: Liabilities Amount (₹) Assets Amount (₹) Trade Creditors 45,000 Cash 750 Bills Payable 12,000 Bank 12,000 Mrs. Arvind's Loan 7,500 Stock 7,500 Mrs. Balbir's Loan 15,000 Investments 15,000 Reserve Fund 15,000 Book Debts 30,000 Investments Fluctuation Reserve 1,500 Less: Provision for Doubtful Debts 3,000 27,000 Capital A/cs: Building 22,500 Arvind 15,000 Plant 30,000 Balbir 15,000 30,000 Goodwill 6,000 Profit and Loss A/c 5,250 1,26,000 1,26,000 The firm was dissolved on the above date under the following arrangement:(a) Arvind promised to pay off Mrs. Arvind's Loan and took Stock at ₹ 6,000.(b) Balbir took half the Investments 10% discount.(c) Book Debts realised ₹ 28,500.(d) Trade Creditors and Bills Payable were due on average basis of one month after 31st March, but were paid immediately on 31st March 2% discount per annum.(e) Plant realised ₹ 37,500; Building ₹ 60,000; Goodwill ₹ 9,000 and remaining Investments ₹ 6,750.(f) An old typewriter, written off completely from the firm's books, now estimated to realise ₹ 450. It was taken by Balbir at this estimated price.(g) Realisation expenses were ₹ 1,500.Show Realisation Account, Capital Accounts of Partners and Bank Account. |
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Answer» Following is the Balance Sheet of Arvind and Balbir as at 31st March, 2019:
The firm was dissolved on the above date under the following arrangement: (a) Arvind promised to pay off Mrs. Arvind's Loan and took Stock at ₹ 6,000. (b) Balbir took half the Investments 10% discount. (c) Book Debts realised ₹ 28,500. (d) Trade Creditors and Bills Payable were due on average basis of one month after 31st March, but were paid immediately on 31st March 2% discount per annum. (e) Plant realised ₹ 37,500; Building ₹ 60,000; Goodwill ₹ 9,000 and remaining Investments ₹ 6,750. (f) An old typewriter, written off completely from the firm's books, now estimated to realise ₹ 450. It was taken by Balbir at this estimated price. (g) Realisation expenses were ₹ 1,500. Show Realisation Account, Capital Accounts of Partners and Bank Account. |
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| 147. |
On April 01, 2010, Bajrang Marbles purchased a Machine for Rs 2,80,000 and spent Rs 10,000 on its carriage and Rs 10,000 on its installation. It is estimated that its working life is 10 years and after 10 years its scrap value will be Rs 20,000. (a) Prepare Machine account and Depreciation account for the first four years by providing depreciation on straight line method. Accounts are closed on March 31st every year. (b) Prepare Machine account, Depreciation account and Provision for depreciation account (or accumulated depreciation account) for the first four years by providing depreciation using straight line method accounts are closed on March 31 every year. |
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Answer» On April 01, 2010, Bajrang Marbles purchased a Machine for Rs 2,80,000 and spent Rs 10,000 on its carriage and Rs 10,000 on its installation. It is estimated that its working life is 10 years and after 10 years its scrap value will be Rs 20,000.
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| 148. |
Mohan Singh draws a bill on Jagat for ₹ 1,000 payable 2 months after date. Immediately after its acceptance, Mohan Singh sends the bill to his bank for collection. On due date, bank gets the payment. Make the entries in the books of all the parties. |
| Answer» Mohan Singh draws a bill on Jagat for ₹ 1,000 payable 2 months after date. Immediately after its acceptance, Mohan Singh sends the bill to his bank for collection. On due date, bank gets the payment. Make the entries in the books of all the parties. | |
| 149. |
Whatare adjusting entries? Why are they necessary for preparing the finalaccounts? |
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Answer» What |
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| 150. |
Pass Journal entries for the following transactions at the time of dissolution of the firm:(a) Loan of ₹ 10,000 advanced by a partner to the firm was refunded.(b) X, a partner, takes over an unrecorded asset (Typewriter) at ₹ 300.(c) Undistributed balance (Debit) of Profit and Loss Account ₹ 30,000. The firm has three partners X,Y and Z.(d) Assets of the firm realised ₹ 1,25,000.(e) Y who undertakes to carry out the dissolution proceedings is paid ₹ 2,000 for the same.(f) Creditors are paid ₹ 28,000 in full settlement of their account of ₹ 30,000. |
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Answer» Pass Journal entries for the following transactions at the time of dissolution of the firm: |
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