Explore topic-wise InterviewSolutions in .

Pronto Pack Ltd. sells its old packaging machine for Rs. 300 on 31 December 2005. The machine was bought during the year ended 31 December 2000 for Rs. 10,000. Depreciation on plant and machinery is charged at 20% on a straight-line basis. The effect due to disposal of machine is:

Vimal purchased goods Rs. 25,000 from Kamal on January 15, 2011 and accepted a bill of exchange drawn upon him by Kamal payable after two months. On the date of the maturity, the bill was duly presented for payment. Vimal dishonoured the bill.
Record the necessary Journal entries in the books of Kamal and Vimal when
I. The bill was retained by Kamal till the date of its maturity.
II. The bill was immediately discounted by Kamal with his bank at the rate of 6% per annum.
III. The bill was endorsed by Kamal in favour of his creditor sharad. Five days before its maturity the bill was sent by Kamal to his bank for collection.

Which of the following are affected if the closing stock is given in adjustments?

Incomes received in advance are regarded as ________

Q24. Mafatbhai Shah of Ahmedabad, a mega city known for hard bargaining, goes to buy a flat-screen colour TV. The retailer quotes the marked price of Rs.17820 plus 8% Gujarat Sales Tax and informs Mafatbhai that delivery at home would require payment of additional Rs.200. Mafatbhai makes a lump-sum counter offer of Rs.17800. Assuming that Rs.200 is the actual transportation cost, what is the marked price implied in Mafatbhai's counter offer?

If A draws the bill on B, B accepts the bill and returned the bill back to A. A endorses the bill in favour of C. In whose books of Accounts the adjustment is required when bill is dishonoured?

Identify the correct sequence of accounting process:

Original cost= Rs 126000, Salvage value= Rs 6000, Dep for 2nd year under 10% WDV Method is ___

On 31st March 2017, Ram purchased goods worth Rs 10,000 from market & sold them for Rs 15,000 on the same day. On 1st April, he purchased goods worth Rs 20,000 & sold them for Rs 25,000 on 5th April. There are no more transactions uptill 31st Dec 2017. What shall be the profit for the Financial Year & Calendar Year respectively?

Mr. Raghav has rented a house. Ground Floor of the house is used for his business i.e. Grocery Shop & First floor of this house is used for his residence. The total rent for the house for a particular month was Rs 1,00,000. How much of this shall be recorded in books as an expense for the business?

As an employee, a common way to get funds from Petty Cash is to:

The bank balance in the cash book ___ by cheque drawn & ___ by cheque deposited.

Q10. Consider the following statements regarding the Insolvency and Bankruptcy Code, 2016.

i. The Code outlines separate insolvency resolution processes for individuals, companies and partnership firms.

ii. The process has to be initiated by the debtor only.

iii. Insolvency and Bankruptcy Board of India was established to oversee the insolvency proceedings in the country and regulate the entities registered under it.

The qualitative method used by the central bank to control credit affects the

According to which concept, the financial records should always be published in a definite time period?

Which of the following represents the entity`s financial performance over a period of time ?

Which of the following statement is true?

Which of the following is incorrect with regards to suspense account in rectification of errors?

State the three parties involved in a bill of exchange.

Mr Arun paid the salary of his helper in shop amounting to Rs 25,000 per month for 2 months i.e. March & April 2018 in the month of March only. Which of the following is the correct adjustment entry for the same?

What is meant by Debit Vouchers?

Which of the following is not an asset?

Which of the following is correct which regards to rectification?

Is it correct to say that purchases book is a record prepared from the invoices received from suppliers?

What shall be the value of debit in machinery account in this case?

Cost of Machine: Rs 100000

Taxes : Rs 10,000

Carriage Inwards : Rs 500

Wages for Installation : Rs 500

Define Accounting Standards. Explain their need.

Sale of old furniture on credit shall be recorded in which of the following specialized journals?

What entry (debit or credit) would you make to (a) increase revenue, (b) decrease in expense, (c) record drawings, (d) record the fresh capital introduced by the owner.

Explain the process of preparing a bank reconciliation statement with amended cash balance.

If a firm is using ______ method, the amount of depreciation is constant while if the method of depreciation is _____, the amount of depreciation is initially higher.

Give the formula to calculate the annual depreciation as per 'straight line method'.

An entity gets a bank loan of Rs 1,00,000. What elements of the accounting equation shall get affected by this?

Profit on sale of fixed assets is __________.

Name the three types of procedures which constitute part of the computer system.

Which of the following account(s) will be affected, while rectifying the error of carriage charges, paid for a new plant purchased mistakenly debited to carriage account?

From the following information, prepare the profit and loss account for the ending on 31st March, 2016

$\begin{array}{cccc}\text{Particulars}& \text{Amt (Rs.)}& \text{Particulars}& \text{Amt (Rs.)}\\ \text{Gross profit}& 62,00,000& \text{Salaries and wages}& 20,00,000\\ \text{Discount received}& 1,00,000& \text{Discount allowed}& 2,00,000\\ \text{Interest on loan paid}& 2,50,000& \text{Interest received}& 3,00,000\\ \text{Commission received}& 2,00,000& \text{Commission to salesmen}& 1,50,000\\ \text{Rent, rates and taxes}& 4,00,000& \text{Rent received}& 1,00,000\\ \text{Fire insurance premium}& 3,60,000& \text{Carriage outwards}& 1,00,000\\ \text{Freight outwards}& 50,000& \text{Repairs and maintenance}& 60,000\\ \text{Printing and stationery}& 60,000& \text{Travelling expenses}& 1,60,000\\ \text{Entertainment expenses}& 1,20,000& \text{Water and electricity}& 1,20,000\\ \text{Postage and telegram}& 50,000& \text{Advertising and publicity}& 4,00,000\\ \text{Sales promotion expenses}& 40,000& \text{Telephone expenses}& 1,00,000\\ \text{Bad debts}& 1,00,000& \text{Packing expenses}& 50,000\\ \text{Audit fees}& 2,00,000& \text{Bank charges}& 40,000\\ \text{Depreciation on furniture:}& & \text{Legal charges}& 1,00,000\\ \text{Sales office}& 1,00,000& \text{Miscellaneous expenses}& 1,00,000\\ \text{Administrative office}& 2,00,000& \text{Loss on sale of fixed assets}& 50,000\\ \text{Miscellaneous incomes}& 2,00,000& \text{Loss by theft}& 5,00,000\\ \text{Profit on sale of fixed assets}& 8,50,000& \text{Dividend received on shares}& 30,000\\ \text{Loss by fire}& 1,00,000& \text{Income from investments}& 20,000\\ \text{Loss by embezzlement}& 1,00,000& & \\ & & & \end{array}$

When an amount is posted on the wrong side, is this error revealed by Trial Balance?

Differentiate between book-keeping and accounting.

Explain how the following may be ascertained from incomplete records

(a) Opening capital and closing capital

(b) Credit sales and credit purchases

(c) Payments to creditors and collection from debtors

(d) Closing balance of cash

Debit note is the basis for recording a transaction in which of the following?

Rectify the following errors assuming that suspense account was opened. Ascertain the difference in trial balance.

(a) Depreciation provided on machinery Rs. 4,000 was not posted to depreciation account.

(b) Bad debts are written off Rs. 5,000 were not posted to debtor's account.

(c) Discount allowed to a debtor Rs. 100 on receiving cash from him was not posted to discount allowed account.

(d) Goods were withdrawn by the proprietor for personal use Rs. 800 were not posted to drawings account.

(e) Bill receivable for Rs. 2,000 received from a debtor was not posted to bills receivable account.

In the single entry system, state any one method which is used to ascertain profit or loss.

Distinguish between bill of exchange and promissory note.

On 15th January, 2016, Sachin sold goods for Rs. 30,000 to Narain and drew upon latter a bill for the same amount payable after 3 months. The bill was accepted by Narain. The bill was discounted by Sachin from his bank for Rs. 29.250 on 31st January, 2016. On maturity, the bill was dishonoured. He further agreed to pay Rs. 10,500 in cash including Rs. 500 interest and accept a new bill for 2 months for the remaining Rs. 20,000. The new bill was endorsed by Sachin in favour of his creditor Kapil for debt of Rs. 20,000. The new bill was duly met by Narain on maturity. Give the journal entries in the books of Sachin.

Which of the following would not appear as a direct cost?

When will adjustment of closing stock be required to be done?

Which of the following is correct regarding accumulated depreciation?

What is the summary of similar transactions called?

The level of secrecy is relatively low in _______ accounting software