Explore topic-wise InterviewSolutions in .

Does debit always mean increase and credit always mean decrease?

A cash book with cash & bank column is commonly referred as

Describe the role of accounting in the modern world.

From the following information, calculate the amount to be paid to creditors

$\begin{array}{cc}& \text{(Rs.)}\\ \text{Sundry creditors as on March 31, 2005}& 1,80,425\\ \text{Discount received}& 26,000\\ \text{Discount allowed}& 24,000\\ \text{Return outwards}& 37,200\\ \text{Return inward}& 32,200\\ \text{Bills accepted}& 1,99,000\\ \text{Bills endorsed to creditors}& 26,000\\ \text{Creditors as on April 1, 2006}& 2,09,050\\ \text{Total purchase}& 8,97,000\\ \text{Cash purchase}& 1,40,000\end{array}$

What are the informational needs of internal users?

A business has compiled the following information for the year ended 31st March, 2018:

The gross profit as a percentage of sales is 25% on sales.
Based on these figures, what is the amount of closing stock as at the end of the year?

Amount invested by the owner in the firm is known as capital. It can be in form of:

Is it correct to say that sales book is a record prepared from invoices issued to customers?

If the accounting information is not clearly presented, which of the qualitative characteristic of the accounting information is violated?

All the entries of petty cash expenses are recorded on the ___ side of the petty cash book.

Analyse the effect of each transaction and prove that the accounting equation (A = L + C) always remains balanced.
(i) Introduced Rs. 4,00,000 as cash and Rs. 25,000 by stock.
(ii) Purchased plant for Rs. 1,50,000 by paying Rs. 7,500 in cash and balance at a later date.
(iii) Deposited Rs. 3,00,000 into the bank.
(iv) Purchased office furniture for Rs. 50,000 and made payment by cheque.
(v) Purchased goods worth Rs. 40,000 for cash and for Rs. 17,500 on credit.
(vi) Goods amounting to 22,500 was sold for Rs. 30,000 on cash basis
(vii) Goods costing to Rs. 40,000 was sold for Rs. 62,500 on credit basis.
(viii) Cheque issued to the supplier of goods worth Rs. 17,500.
(ix) Cheque Received from customer amounting to Rs. 37,500.
(x) Withdrawn by the owner for personal use Rs. 12,500.

Explain summary of this chapter and provide important objectives of this chapter

If the total of the credit side exceeds the total of debit side, then after balancing of the account, which of the following will be true?

Following information is given below. Prepare the statement of profit or loss

$\begin{array}{cc}\text{Items}& (Rs.)\\ \text{Capital at the end of the year}& 5,00,000\\ \text{Capital in the beginning of the year}& 7,50,000\\ \text{Drawings made during the period}& 3,75,000\\ \text{Additional Capital introduced}& 50,000\end{array}$

Manish A/c is credited by Rs. 4500 while Manish A/c was to be debited by the same amount. Which of the following is correct?

Which is an information system based on the accounting database of an organisation, helping in storage, processing, summarising and reporting information about an organisation ?

Accrued income is credited to the profit and loss account and shown in the balance sheet as a current asset. Why?

A purchase of Rs 25,000 & a sale of Rs 50,000 has been omitted to be recorded in the books of accounts. What shall be the effect of these two transactions on the net profit of the organisation.

Salman buys 50 shares of face value Rs.100 available at Rs.132.

Ravi Sold goods for Rs. 40,000 to Sudershan on February 13, 2011. He drew four bills of exchange upon Sudershan. The first bill was for Rs. 5,000 payable after one month. The second bill was for Rs. 10,000 payable after 40 days; the third bill was for Rs. 12,000 payable after three months and fourth bill was for the balance amount payable after 19 days. Sudershan accepted all the bills and returned the same to Ravi. Ravi discounted the first bill with his bank at 6% per annum. He endorsed the second bill to his creditor Mustaq for the full settlement of a debt of Rs. 10,200. the third bill was kept by Ravi with him till the date of maturity. Five days before the maturity of the fourth bill, Ravi sent the bill to his bank for collection. All the four bills were dishonoured by Sudershan on maturity. Sudershan settled Ravi's Claim in cash three days after the dishonour of each bill along with interest at the rate of 12% per annum for the terms of the bills.
You are requested to record the necessary Journal entries in the books of Ravi, Sudershan, Mustaq and Bank for the above transactions. Also prepare Sudershan's Account and Mustaq's account in the books of Ravi.

Give meaning of increasing returns to a factor.

Alan, a sports shop owner bought cricket bats in May for which he needs to pay in June. When should Alan record this transaction under accrual basis of accounting?

The public library allocated revenues it recieved from the recently passed tax initiative to the purchasing of more than 2000 books and 50 computers.

True and fair profit or loss of a company can be known by _________.

Depreciation arises because of …………..

What is the purpose of posting JF numbers that are entered in the journal at the time entries are posted to the accounts?

From the following trial balance prepare trading account, profit and loss account, and balance sheet for the year ended 31st December, 2016.

$\begin{array}{cccc}\text{Account Title}& \text{Amt. (Rs.)}& \text{Account Title}& \text{Amt. (Rs.)}\\ \text{Capital}& 10,00,000& \text{Sundry Creditors}& 97,000\\ \text{Life Insurance Premium}& 8,000& \text{Sales}& 12,00,000\\ \text{Plant and Machinery}& 2,50,000& \text{Returns Outwards}& 10,000\\ \text{Stock in the Beginning}& 1,50,000& \text{Discount (Dr.)}& 8,000\\ \text{Purchases}& 8,72,000& \text{Discount (Cr.)}& 12,000\\ \text{Return Inwards}& 20,000& \text{Rent or Premises Sublet}& 10,000\\ \text{Sundry Debtors}& 2,10,000& \text{Lighting}& 5,000\\ \text{Furniture}& 92,000& \text{Salaries}& 2,13,000\\ \text{Freehold Property}& 4,00,000& \text{Cash}& 1,58,000\\ \text{Freight and Duty}& 20,000& \text{Loan from Bank at}10\%\text{per annum on}& \\ \text{Carriage Inwards}& 8,000& \mathrm{1.1.2016}& 1,00,000\\ \text{Carriage Outwards}& 2,000& \text{Bank Interest (Dr.)}& 9,000\\ \text{Trade Expenses}& 4,000& & \end{array}$

Adjustments:

(i) Stock on 31st December, 2016 was valued at Rs. 3,00,000.

(ii) Stock for Rs. 50,000 was burnt by fire on 25th December, 2016 and the Insurance company admitted the claim of Rs. 30,000.

(iii) Good worth Rs. 15,000 were distributed as free samples, goods worth Rs. 12,000 were used for personal purposes by the proprietor and goods worth Rs. 8,000 were given away as charity.

(iv) Use of goods in business worth Rs. 20,000.

(v) Machine worth Rs. 50,000 burnt by fire on 30th December, 2016 which was not insured.

Rent has been paid on 1st January 2018 for a period of 6 months amounting to Rs 60,000 10,000 per month. By what amount shall the prepaid expenses account be debited, while passing the adjustment entry?

Which of the following expenses would you regard as part of the cost of goods sold?

Wages paid for installation of machinery Rs 7000 was debited to Installation expense account. The rectifying entry to correct the same shall be?

Give any three examples of revenues.

Mr. Kapil does not keep proper records of his business and he provided the following information.

You are required to prepare a statement showing the profit or loss for the year 2011-12.
Opening Capital (01-04-2011) , 50,000

Closing Capital (31-03-2012) , 1,00,000

Additional capital introduced (2011-12) , 20,000

Drawings made during the year (2011-12) , 40,000

From the following details, find the amount of Capital:

What are the attributes of an Asset?

An error involving wrong totaling of special books shall be revealed by the Trial Balance. Is this statement correct?

Rectify the following errors.

(i) Sales book overcast by Rs. 700.

(ii) Purchase book overcast by Rs. 500.

(iii) Sales return book overcast by Rs. 300.

(iv) Purchase return book overcast by Rs. 200.

(v) Sales book undercast by Rs. 300.

(vi) Purchase book undercast by Rs. 400.

(vii) Return inwards book undercast by Rs. 200.

(viii) Return outwards book undercast by Rs. 100.

As per Receipts and Payments Account for the year ended on March 31,2012, the subscriptions received is Rs 2,50,000. Additional information given is as follows:

(i) Subscription Outstanding on 1.4.2011; Rs 50,000.

(ii) Subscription Outstanding on 31.3.2012; Rs 35,000.

(iii) Subscription Received in Advance as on 1.4.2011; Rs 25,000.

(iv) Subscription Received in Advance as on 31.3.2012; Rs 30,000. Ascertain the amount of income from subscriptions for the year 2011-12.

Vishal purchased from Karan Sports Ltd. 200 balls Rs. 50 each on which he is given a 20% trade discount. He is further given a 2% cash discount as he made payment for the purchases immediately. Determine the amount that Vishal will debit to the purchase account?

Explain the factors which necessitated systematic accounting.

The following errors were found in the book of Rajan & Sons. Give the necessary entries to correct them.

(i) Repairs made were debited to building account Rs. 100.

(ii) Rs. 200 paid for rent, debited to landlord's account.

(iii) Salary Rs. 250 paid to a clerk due to him has been debited to his personal account.

(iv) Rs. 200 received from Rina & co has been wrongly entered as from Reena & Co.

(v) Rs. 1,400 paid in cash for a typewriter was charged to office expenses account.

(vi) Credit sales to Mohan Rs. 7,000 were posted to Karan.

(viii) Credit purchase from Rohan Rs. 9,000 were posted to Gobind.

(viii) Goods returned to Rakesh Rs. 4,000 were posted to Naresh.

(ix) Goods returned from Mahesh Rs. 1,000 were posted to Manish.

(x) Cash sales Rs. 2,000 were posted to commission account.

Repairs to which of the following shall NOT be debited to Repairs Account?

A piece of machinery worth Rs. 4,00,000 is charged depreciation (Straight line method) at 10%.
Which account shall be credited for recording depreciation when accumulated depreciation account is maintained?

A bill of exchange drawn by X on Y bears across its face two parallel transverse lines.
Whih of the following is correct interpretation of the above statement?

In order to see whether there is profit or loss in the asset sold, the company should compare the sale value with _________

___ is a totaling error and total shown is less than the actual total.

The set of computer programmes designed and developed for performing certain specified tasks are called as ________________.

Who is a notary public? Enumerate the facts which are noted by norary when a bill is dishonoured.

The normal balance of the capital account is

A draws bill upon B. B accepts the bill payable after two months. A discounted the bill with Bank. Who will be the payee in this scenario?