Explore topic-wise InterviewSolutions in .

Discuss the concept of accounting reports? Explain the three steps involved in creating such reports.

The amount of goods unsold included in purchases should not be shown as expense.

_______ are one-time events that may affect revenues, expenses or cash flow but fall outside of the company’s routine core business.

______ is prepared to ascertain the financial result of a business operation over a given period of time and ______ shows the financial position of a business at a particular date.

Do you think that a transaction can break the accounting equation?

Give Journal entries for the following:

(i) Bought goods at the list price of Rs.50,000 from Vinod less 20% trade discount and 2% cash discount and paid 40% by cheque.

(ii) Sold goods to Mohan at list price Rs.1,00,000 less 20% trade discount and 2% cash discount and paid 50% by cheque.

(iii) Paid income tax through cheque Rs.2,000.

A drew a bill on B for Rs. 50,000 for 3 months. Proceeds are to be shared equally. A got the bill discounted at 12% p.a. and remits required proceeds to B. The amount of such remittance for A & B will be:

Ram borrowed Rs. 10,000 from a firm. However, he fails to pay back and defaults. The firm should ensure that this loss is recorded in the books.

Which concept is illustrated in this example?

What do you mean by Posting?

The loss on sale of an asset is debited to

If a company revises the estimated useful life of one of its assets being depreciated, the company will need to reissue its earlier financial statements as the earlier depreciation was incorrect & will have to prepare all its books of accounts again.

Purchase return account is undercasted by Rs 600. In this case which balance of the Trial Balance will show an excess balance?

On January 1, 2011, Arun sold goods for Rs. 30,000 to Sunil. 50% of the payment was made immediately by Sunil on which Arun allowed a cash discount of 2%. For the balance, Sunil drew a bill in favour of Arun payable after 20 days. Since, the date of maturity of bill was a public holiday, Arun presented the bill on a day, as per the provisions of Negotiable Instrument Act which was met by Sunil.

State the date on which the bill was presented by Arun for payment and Journalise the above transactions in the books of Arun and Sunil.

What is petty cash book? Write the advantages of the petty cash book.

The insurance premium paid is recorded as Rs 4,500 in cash book, however the same is shown as Rs 9,000 in passbook. What shall be the effect in BRS if starting point is cash book balance?

Interest on renewal of bill is a revenue of?

Which of the following adjusting entry is correct for prepaid expenses?

Under which concept, recognition of expenses must be made in the same period as associated revenue?

An asset possess which of the following?

From the following balances extracted from the books of Raga Ltd. prepare a trading and profit and loss account for the year ended December 31, 2011 and a balance sheet as on that date.

$\begin{array}{cccc}\text{Account Title}& \text{Amt. (Rs.)}& \text{Account Title}& \text{Amt. (Rs.)}\\ \text{Drawings}& 20,000& \text{Sales}& 2,20,000\\ \text{Land and Buildings}& 12,000& \text{Capital}& 1,01,110\\ \text{Plant and Machinery}& 40,000& \text{Discount}& 1,260\\ \text{Carriage Inwards}& 100& \text{Apprentice Premium}& 5,230\\ \text{Wages}& 500& \text{Bills Payable}& 1,28,870\\ \text{Salary}& 2,000& \text{Purchase Return}& 10,000\\ \text{Sales Return}& 200& & \\ \text{Bank Charges}& 200& & \\ \text{Coal, Gas and Water}& 1,200& & \\ \text{Purchase}& 1,50,000& & \\ \text{Trade Expenses}& 3,800& & \\ \text{Stock (Opening)}& 76,800& & \\ \text{Cash at Bank}& 50,000& & \\ \text{Rates and Taxes}& 870& & \\ \text{Bills Receivable}& 24,500& & \\ \text{Sundry Debtors}& 54,300& & \\ \text{Cash in Hand}& 30,000& & \\ & \overline{\underset{–}{\underset{–}{4,66,470}}}& & \overline{\underset{–}{\underset{–}{4,66,470}}}\end{array}$

The additional information is as under:

1. Closing stock was valued at the end of the year Rs. 20,000.

2. Depreciation on plant and machinery charged 5% and land and building 10%.

3. Discount on debtors 3%.

4. Make a provision 5% on debtors for bad debts.

5. Salary outstanding was Rs. 100 and wages prepaid was Rs. 40.

6. The manager is entitled a commission of 5% on net profit after charging such commission.

A fixed asset costing Rs. 12,000 was sold for Rs. 5,000. At the date of disposal, it's net book value is Rs. 2,000.
What is the profit or loss on disposal of this fixed asset?

The only vehicle owned by a company is reported at its cost of Rs. 50,000 in the Motor Vehicle account, while the depreciation on the vehicle written off in each of the three years of use is reported in an Accumulated depreciation account at Rs. 25,000.

Which of the following statements is incorrect regarding when the whole of Rs. 25,000 need to be transferred away from the Accumulated depreciation account.

Rs 1000 paid for installation of a new machine is debited to Repairs account. Which accounts shall be debited & credited?

What is the reason for the creation of a provision for discount on debtors?

What is meant by a 'statement of affairs'? How can the profit or loss of a trade be ascertained with the help of a statement of affairs?

Write formula of finding selling and cost price when profit or loss percent is given.

The fundamental difference between the Main Cash Book and the Petty Cash Book is that only petty expenses are recorded in the Petty Cash Book. No receipt with the exception of money received from ___are recorded.

Which of the following comes under category assets?

The left hand side which is also known as assets side of the equation shows which of the following?

Write a short note on Hardware and Software.

Give journal entries to rectify the following errors assuming that suspense account had been opened.

(a) Goods distributed as free sample Rs. 5,000 were not recorded in the books.

(b) Goods were withdrawn for personal use by the proprietor Rs. 2,000 were not recorded in the books.

(c) Bill receivable received from a debtor Rs. 6,000 was not posted to his account.

(d) Total of return inwards book Rs. 1,200 was posted to return outwards account.

(e) Discount allowed to Reema Rs. 700 on receiving cash from her was recorded in the books as Rs. 70.

A set of programmes which control such internal functions as reading data from input devices, transmitting processed data to output devices and also checking the system to ensure that its components are functioning properly is called as ____________.

Explain briefly the procedure of calculating the date of maturity of a bill of exchange. Give an example.

State any two objectives of 'Analysis of financial statement'.

Explain the functions of commercial banks.

"In case of a long-term asset, repair and maintenance expenses are expected to rise in later years than in the earlier year." Which method, is suitable for charging depreciation if the management does not want to increase the burden on profits and loss account on account of depreciation and repair.

On 31st December 2011, the Pass Book of a merchant shows the credit balance to be 3,357. The cheques and drafts sent to the bank but not collected and credited amounted to = 790 and three cheques drawn for RS 300, 150 and 200 respectively were not presented for payment till 31st January next year.

Bank has paid a bill payable amounting to = 1,000 but it has not been entered in the Cash Book and a bill receivable of = 500 which was discounted with the bank was dishonoured by the drawee on due.date.

The bank has charged = 13 as its commission for collecting outstation cheques and has allowed interest = 10 on the trader's balance.

Prepare a Bank Reconciliation Statement and show the balance as shown in the Cash Bank.

Which account is credited while creating a provision for doubtful debts in the books?

N.P. Jewelers received an order to supply gold ornaments worth Rs 5,00,000. They supplied ornaments worth Rs 2,00,000 up to the year ending 31st March 2018 and rest of the ornaments were supplied in April 2018. What shall be the revenue of N.P. Jewelers for the year ending 31st March 2018?

4 mens or 6 woman earn Rs. 360 in one day. Find how much will:

1)a man earn in one day?

2)a women earn in one day?

3)6 men and 4 women earn in one day?

(this sun is to be solved in direct and indirect variations using arrow mark)

The cheque which is deposited into bank but not cleared at the end of a particular year is called?

Distinguish between Reserve and Provision.

Two or more errors when committed in such a way that there is increase or decrease in the debit side due to an error, also there is corresponding decrease or increase in the credit side due to another error by the same amount. These errors ae known as:

The amount which the owner withdraw from business for personal use is known as ______

Cost which is related to specific cost object and economically traceable, will be classified as :

Depreciation does not depend on the fluctuations that takes place in ……………………….

The process of transferring the debit & credit items from a journal to their respective accounts in ledger is called?

A shoe manufacturing company sold shoes worth Rs.10,000 to one of it's customer on credit. Which account should be debited and which account is credited?

What do you understand when one refers to as "net book value" of a non current asset?