InterviewSolution

Explore topic-wise InterviewSolutions in .

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.

1.	Prepare Accounting Equation from the following : - 1. Started business with cash Rs. 75,000 and goods Rs. 25,000. 2. Paid for Rent Rs. 2,000. 3. Bought goods for cash Rs. 30,000 and on credit for Rs. 44,000. 4. Goods costing Rs. 50,000 sold at a profit of 25% out of which Rs. 27,500 received in Cash. 5. Purchased a Motor - cycle for personal use Rs. 20,000.
Answer» Assets : Cash Rs. 50,00 + Stock Rs. 49,000 + Debtors Rs. 35,000 = Liabilities : Creditors Rs. 44,000 + Capital Rs. 90,500.

2.	Show the accounting equation on the basis of following transactions : (i) Commenced business with Cash Rs.20,000, Goods Rs. 50,000 and Furniture Rs. 30,000. (ii) Purchased goods from Gopal on Credit Rs.40,000. (iii)Sold goods for Cash Rs.40,000 (Costing Rs. 30,000). (iv) Sold goods to Ram on Credit Rs. 65,000 (Costing Rs. 50,000). (v) Withdrew for personal use goods costing Rs. 5,000. (vi) Purchased typewriter for personal use of the proprietor Rs. 20,000. (vii) Purchased chairs for office use for Cash Rs. 10,000. (viii) Paid for printing Rs. 500 and received Commission Rs.1,200. (ix) Introduced fresh Captial Rs. 40,000. (x) Paid to Gopal Rs. 30,000.
Answer» Assets : Cash Rs. 40,700 + Stock Rs. 5,000 + Furniture Rs. 40,000 +Debtors Rs. 65,000 = Liabilities : Creditors Rs. 10,000 + Capital Rs. 1,40,700.

3.	Prepare Accounting Equation from the following : (a) Started business with Cash Rs. 2,00,000. (b) Purchased goods for Cash Rs. 60,000 and on Credit Rs. 1,50,000. (c ) Sold goods for Cash costing Rs. 40,000 at a profit of 20% and on Credit costing Rs. 72,000 at a profit of 25%. (d) Paid for Rent Rs. 5,000.
Answer» Assets : Cash Rs. 1,83,000 +Stock Rs. 98,000 + Debtors Rs. 90,000 = Liabilities : Creditors Rs. 1,50,000 + Capital Rs. 2,21,000

4.	Prepare accounting equation from the following : (i) Started a business with cash Rs.1,00,000 and goods worth Rs.20,000. (ii) Sold 50% of above goods at a profit of Rs. 2,000 on credit to Ram. (iii) Rent paid Rs.5,000. (iv) Ram paid 50% of his balance in cash.
Answer» Cash Rs.1,01,000 + Stock Rs.10,000 + Ram Rs. 6,000 = Liabilities : Capital Rs. 1,17,000.

5.	Show the accounting equation on the basis of the following transactions and also show the Balance Sheet : (i) Started business with Cash Rs.60,000 and Goods Rs.30,000. (ii)Purchased goods for Cash Rs.40,000 and on Credit Rs. 25,000. (iii) Goods costing Rs. 48,000 sold at a profit of `33 1/3%`. Three -fourth payment received in Cash (iv) Goods costing Rs. 20,000 sold at a loss of 5% , out of which Rs. 12,000 received in Cash. (v) Paid Rent Rs. 4,000 and Salary Rs. 6,000. (vi) Received Cash from Debtors Rs.15,000. (vii) Paid telephone bill amounting to Rs.800.
Answer» Assets : Cash Rs.48,200 + Stock Rs.27,000 + Debtors Rs. 8,000 = Liabilities : Creditors Rs. 25,000 + Capital Rs. 94,200 , Balance Sheet Total Rs,1,19,200.

6.	Prepare the Accounting Equation on the basis of the following : (a) Started business with cash Rs. 1,40,000 and Stock Rs. 2,50,000. (b) Sold goods (costing Rs. 50,000) at a profit of 25% on cost. (c ) Deposited into bank account Rs. 1,80,000. (d) Purchased goods from Mohan Rs. 80,000.
Answer» Assets : Cash Rs. 22,500 + Stock Rs. 2,80,000 + Bank Rs. 1,80,000 = Creditors Rs. 80,000 + Capital Rs. 4,02, 500.

7.	Prepare accounting equation from the following : (a) Started business with cash Rs. 50,000 and goods Rs.30,000. (b) Purchased goods for cash Rs. 30,000 and on credit from Karan Rs. 20,000. (c ) Goods costing Rs.40,000 were sold for Rs. 55,000 for cash. (d) Withdrew cash for personal use Rs. 10,000. (e) Rent outstanding Rs.2,000.
Answer» Assets : Cash Rs. 65,000 + Stock Rs.40,000 = Liabilties : Creditors Rs. 20,000 + Outstanding Rent Rs.2,000 + Capital Rs. 83,000.

8.	Prepare Accounting Equation on the basis of the following transactions : (a) Started business with cash Rs. 70,000. (b) Credit purchase of good Rs. 18,000. (c ) Payment made to creditors in full settlement Rs. 17,500. (d) Purchase of machinery for cash Rs. 20,000.
Answer» Assets : Cash Rs.32,500 + Stock Rs. 18,000 + Machinery Rs. 20,000 = Capital Rs. 70,500.

9.	If a transactions has the effect of decreasing an asset, is the decrease recorded as a debit or as a credit? If the transaction has the effect of decreasing a liability , is the decrease recorded as a debit or as a credit ?
Answer» Decrease in Asset will be recorded on credit side. Decrease in Liability will be recorded on debit side.]

10.	If total assets of a business are Rs. 10,00,000 and capital is Rs. 4,00,000, calculate creditors.
Answer» Creditors Rs.6,00,000

11.	If the Capital of a business is Rs.1,00,000 and outside liabilities are Rs.60,000, Calsulate total assets of the business.
Answer» Assets = Liabilities + Capital = Rs.60,000 + Rs.1,00,000 = Rs.1,60,000

12.	If the Capital of a business is Rs. 1,20,000 and Qutside liabilities are Rs. 20,000, calculate total assets of the business.
Answer» Total Assets Rs. 1,40,000.

13.	If the Capital of a business is Rs.5,00,000 and Outside liabilities are Rs.2,00,000, calculate total assets of the business.
Answer» Total Assets Rs.7,00,000.

14.	Which of the following equations are correct ? `{:(I.,"Assets",=,"Capital",+,"Liabilities"),(II.,"Assets",=,"Capital",-,"Liabilities"),(III.,"Assets",=,"Liabilities",-,"Capital"),(IV.,"Capital",=,"Assets",-,"Liabilities"),(V.,"Capital",=,"Assets",+,"Liabilities"),(VI.,"Liabilities",=,"Capital",+,"Assets"),(VII.,"Liabilities",=,"Capital",-,"Assets"),(VIII.,"Liabilities",=,"Assets",-,"Capital"):}`
Answer» Correct Answer - I, IV, VIII.

15.	A commenced business on 1st April,2011 with a Capital of Rs. 5,00,000. On 31st March, 2012, hisn assets were worth Rs. 7,80,000 and liabilities Rs. 70,000. Find out his closing capital and profits earned during the year.
Answer» `{:("Closing Capital",=,"Closing Assets - Closing Liabilities"),(,=,"Rs.7,80,000 - Rs.70,000 = Rs.7,10,000"),("Profit",=,"Closing Capital - Opening Capital"),(,=,"Rs.7,10,000 - Rs.5,00,000 = Rs.2,10,000"):}`

16.	(a) Surender Mohan started business on 1st April, 2011 with Capital of Rs. 7,50,000 and a loan of Rs. 2,00,000 taken from Punjab National Bank. On 31 st March, 2012 his assets were Rs.15,00,000. Find out his Capital on 31st March, 2012 and profit made or losses incurred during the year 2011-12. (b) If in the above illustration, the proprietor had introduced additional capital of Rs. 1,25,000 and had withdrawn Rs. 40,000 for personal purposes, find out the profit.
Answer» `{:((a),"Closing Capital",=,"Closing Liabilities"),(,,=,"Rs.15,00,000 - Rs.2,00,000"),(,,=,"Rs.13,00,000"),(,"Profit",=,"Closing Capital- Opening Capital"),(,,=,"Rs.13,000,000 - Rs.7,50,000"),(,,=,"Rs.5,50,000"),((b),"Profit",=,"Closing Capital + Drawing - Additional - Additional Capital - Opening Capital"),(,,=,"Rs.13,00,000 + Rs. 40,000 - Rs.1,25,000 - Rs.7,50,000"),(,,=,"Rs.4,65,000"):}`

17.	(a) Yogesh commenced business on 1st April, 2011 with a Capital of Rs. 5,00,000 and a loan of Rs. 1,00,000 borrowed from Citi Bank . On 31st March, 2012 , his assets were Rs. 8,00,000. Calculate his closing capital and profits earned during the year. (b) If in the above case, the proprietor had introduced fresh capital of Rs. 40,000 and had withdrawn Rs. 10,000 for personal purposes, calculate his profits.
Answer» (a) Closing Capital Rs. 7,00,000, Profit Rs. 2,00,000. (b ) Profit Rs. 1,70,000.

18.	What will be the effect of the following on the Accounting Equation :- 1. Purchased goods for Rs.20,000 from Mahesh on Credit. 2. Sold goods to Suresh costing Rs.8,000 for Rs. 10,000 in cash. 3. Paid Wages Rs.500. 4. Withdrew in cash for private use Rs. 2,000. 5 Paid to creditors Rs. 5,000.
Answer» 1. + Stock + Creditors 2. + Cash - Stock + Capital 3. - Cash - Capital 4. - Cash - Capital 5. - Cash - Creditors]