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This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your Class 12 knowledge and support exam preparation. Choose a topic below to get started.
| 101. |
X and YAre Partners sharingprofits andlossesin theof 7:3theirCapitalAccountsas at1stApril , 2018stood at X-Rs. 5.00.000 , Y - Rs. 4.00.000partnres are allowedinterestoncapital@5% p.aDrawingof thepartnersduringthe yearended31st MArch , 019 werers. 72,000 ad Rs. 50,000 respectively prfot for theyearbefore allowingintereston capitalandsalary to Y @ Rs. 5.000 per monthswas Rs. 8.00.000 10%of thene profitisto be setaside asGeneral Reserve. passthe journalenterisforappropricarionprepare profitand lossApproproationAccountforthe yearended 31st March, 2019 andcapitalandCurrentaccounts of thepartners . |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XII_V01_C02_S01_031_S01.png" width="80%"/> <br/><br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XII_V01_C02_S01_031_S02.png" width="80%"/><br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XII_V01_C02_S01_031_S03.png" width="80%"/> <br/>WorkingNote :<br/> <a href="https://interviewquestions.tuteehub.com/tag/rs-625947" style="font-weight:bold;" target="_blank" title="Click to know more about RS">RS</a>. 8.00.000(<a href="https://interviewquestions.tuteehub.com/tag/profit-1168589" style="font-weight:bold;" target="_blank" title="Click to know more about PROFIT">PROFIT</a> )-Rs. 80.000 (<a href="https://interviewquestions.tuteehub.com/tag/general-471730" style="font-weight:bold;" target="_blank" title="Click to know more about GENERAL">GENERAL</a> Reserve )-Rs. 60.000 (y'ssalary ) -Rs, 25.000(intereston <a href="https://interviewquestions.tuteehub.com/tag/x-746616" style="font-weight:bold;" target="_blank" title="Click to know more about X">X</a>'s capital)-Rs. 20.000(intereston Y'scapital )=6.15.000</body></html> | |
| 102. |
X andYare partners sharingprofit and losses in theratio of 2: 3withcapitalsof Rs. 2,00,000 and Rs. 1,00,000 respectively passthenecessary Journal enteryor enteriesfor thedistributaion ofprofits / loss for theyear for theyear31stMarch , 2019 in each of theof thealternative cases : caseIfPArtnership Deed is silentas to theintereston capitaland theprofitfor theyear is Rs. 20,000. Case 2.if partnership Deed provides for intereston capital@ 6%p.aandlossfor theyearis Rs. 15,000. Case 3.if partnership Deed provides for interestforintereston capital@ 6% p.a and theprofitfor thetheyear is Rs. 21,000 . Case 4.if partnershipDeedprovides for interestforintereston capital @ 6% p.aas acharge onon profitandtheprofitfor theyear is Rs. 20,000. Case 5.if partnership Deedprovidesfor intereston capital @ 6%p.aas a chargeon profit andth profitfor theyear is Rs. 2,000 Case 6.ifpartners Deedprovides forinterest o capital@ 6%p.aas achargeon profitandth profitfor theyear is Rs. 18.000. |
| Answer» <html><body><p></p>Solution :<img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XII_V01_C02_S01_023_S01.png" width="80%"/><br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XII_V01_C02_S01_023_S02.png" width="80%"/><br/> <a href="https://interviewquestions.tuteehub.com/tag/note-1125278" style="font-weight:bold;" target="_blank" title="Click to know more about NOTE">NOTE</a> : profitand <a href="https://interviewquestions.tuteehub.com/tag/lossappropriationaccount-2801588" style="font-weight:bold;" target="_blank" title="Click to know more about LOSSAPPROPRIATIONACCOUNT">LOSSAPPROPRIATIONACCOUNT</a> willnot bepreparedbecauseinterest on capital iscahrge onprofit and hancedebiteed toprofitand <a href="https://interviewquestions.tuteehub.com/tag/lossaccount-1079421" style="font-weight:bold;" target="_blank" title="Click to know more about LOSSACCOUNT">LOSSACCOUNT</a> after allowingintereston capital , itresults <a href="https://interviewquestions.tuteehub.com/tag/inneither-2739495" style="font-weight:bold;" target="_blank" title="Click to know more about INNEITHER">INNEITHER</a> <a href="https://interviewquestions.tuteehub.com/tag/profit-1168589" style="font-weight:bold;" target="_blank" title="Click to know more about PROFIT">PROFIT</a> nor loss.</body></html> | |
| 103. |
X andY arepartners in a frimsharingprofits in the ratio of 3:2. With effect from1st April, 2019, they agreed to share profits equally. For this purpose, goodwillof thefirmis valued at ₹75,000.You are required to fillup the following Journal entry: |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XII_V01_C04_E01_046_S01.png" width="80%"/><br/><a href="https://interviewquestions.tuteehub.com/tag/working-1459914" style="font-weight:bold;" target="_blank" title="Click to know more about WORKING">WORKING</a> Note : <br/> Calculationof Sacrifices/(Gain) of Parnters, <br/> `{:(,,"X","Y"),(("i"), "Their Old Shares",3//5,2//5),(("ii"),"Their <a href="https://interviewquestions.tuteehub.com/tag/new-1114486" style="font-weight:bold;" target="_blank" title="Click to know more about NEW">NEW</a> Shares", 1//2,1//2),(("iii"),"Sacrifice /(Gain) (i)-(ii)",3//5-1//2= 1//10,,2//5-1//2=-1//10),(,,"Sacrifice","(Gain)"):}`<br/> Thus X, Sacrifices `1//10th` share and Y gain `1//10th` share in profits.</body></html> | |
| 104. |
X and Yarepartnerssharingprofits and Lossesin theratio7:3theircapitalAccountsAs at1stApril2018 Stood AtX -Rs.5.00.000 ,Y - Rs. 4,00,000 Pertners areallowedintereston capitals@5%p.aDrawing of X and YDuringendedallowed 31 stMarch,2019wereRs. 72,000andRs, 50.000Respectively.Profit for theyearbeforeallowinginterest on capital andSalary to Y @ Rs. 5,000Per month amountedTo Rs. 8,00,000. 10 %of thedivisbleprofitisto be setasideas General Reserve . |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XII_V01_C02_S01_032_S01.png" width="80%"/><br/><a href="https://interviewquestions.tuteehub.com/tag/amounttransferred-2415118" style="font-weight:bold;" target="_blank" title="Click to know more about AMOUNTTRANSFERRED">AMOUNTTRANSFERRED</a> to <a href="https://interviewquestions.tuteehub.com/tag/generalreserve-2093337" style="font-weight:bold;" target="_blank" title="Click to know more about GENERALRESERVE">GENERALRESERVE</a> =<a href="https://interviewquestions.tuteehub.com/tag/10-261113" style="font-weight:bold;" target="_blank" title="Click to know more about 10">10</a>%ofDivisibleprofit<br/>=10%Of6,95,000i.e., <a href="https://interviewquestions.tuteehub.com/tag/rs-625947" style="font-weight:bold;" target="_blank" title="Click to know more about RS">RS</a>. 8,00,000 -Rs. 25,000 -Rs.20,000-Rs. 60.000)<br/> =Rs. 69,500.,</body></html> | |
| 105. |
X and Y arepartnersin a firmX isentitedto a salaryof Rs.10,000per month andcommissionof the10%of the netprofitpartners 'salariesbutbeforebutbeforecharingcommissionY isentitedto a salaryofRs. 25,000p.aandcommissionof 10%of thenet profitafter charging all commissionandpartnerssalariesnetprofitbeforeproviding for partnerssalariesand commissionfor theyearended31st March,2019wasRS. 4,20,000showdistributionfo profit . |
| Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :Y's commission `=10//110 ` of2,47,5000 (i.e.,Rs. 4,20,000 and Rs, 80,000 interestis chargeable@<a href="https://interviewquestions.tuteehub.com/tag/6-327005" style="font-weight:bold;" target="_blank" title="Click to know more about 6">6</a>%p.a on thedrawings whatis <a href="https://interviewquestions.tuteehub.com/tag/theamount-1403166" style="font-weight:bold;" target="_blank" title="Click to know more about THEAMOUNT">THEAMOUNT</a> of drawing for a periodof <a href="https://interviewquestions.tuteehub.com/tag/6months-332094" style="font-weight:bold;" target="_blank" title="Click to know more about 6MONTHS">6MONTHS</a> .</body></html> | |
| 106. |
X and Y are partnersin a firm . Their capital accounts show credit balance of Rs. 1,80,000 and Rs. 1, 20, 000 respectively, A new partner Z is admitted with 1//5th share in profits . He bring Rs. 1,40,000 for his capital. Value ofhidden goodwill at the time of Z's admission will be |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/rs-625947" style="font-weight:bold;" target="_blank" title="Click to know more about RS">RS</a>. 2,60,000.<br/>Rs. 2,50,000.<br/>Rs. 2,00,000.<br/>None of these.</p>Answer :a</body></html> | |
| 107. |
X and Y are partners in a firm sharing profits in the ratio of 5 : 3. On March 1, 2017 they admitted Z as a new partner. Thenew profit sharing ratio will be 4 : 3 : 2. Z brought in Rs. 1,00,000 in cash as his share of capital but could not bring any amount forgoodwill in cash. The firm's goodwill on Z's admission was valued at Rs. 1,80,000. Atthe time of Z's admission goodwill existed in the booksof thefirm at Rs. 2,40,000. You are required to pass necessary journal entries in the booksof the firm on Z's admission. |
| Answer» <html><body><p></p>Solution :(a) When Goodwill is adjusted through new <a href="https://interviewquestions.tuteehub.com/tag/partner-1148214" style="font-weight:bold;" target="_blank" title="Click to know more about PARTNER">PARTNER</a>'s Current <a href="https://interviewquestions.tuteehub.com/tag/account-25640" style="font-weight:bold;" target="_blank" title="Click to know more about ACCOUNT">ACCOUNT</a> : <br/><img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/ACC_MCQ_XII_II_SLV_004_S01.png" width="80%"/><br/> Working <a href="https://interviewquestions.tuteehub.com/tag/note-1125278" style="font-weight:bold;" target="_blank" title="Click to know more about NOTE">NOTE</a> : Calculation of Sacrificing Ratio : <br/> Old Ratio - New Ratio <br/> X's Sacrifice= ` 5/8 - 4/9 = (45-32)/72 = 13/72` <br/> Y's Sacrifice = ` 3/8 - 3/9 = (27-24)/72 = 3/72`<br/> Thus , Sacrificing ratio between X andY = 13 : 3<br/> <a href="https://interviewquestions.tuteehub.com/tag/alternate-373425" style="font-weight:bold;" target="_blank" title="Click to know more about ALTERNATE">ALTERNATE</a> SOLUTION :ltBRgt (b) When Goodwill is raised and written off :<br/><img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/ACC_MCQ_XII_II_SLV_004_S02.png" width="80%"/></body></html> | |
| 108. |
X and Y are partners in a firmsharing profits in the ratio of 3:2 .Theydecide to share future profits equally. On thedate of changein theprofit-sharing ratio,Profitand Loss Accountshowed a debit balance of ₹50,000.Pass Journal entry fordistribution of balance in Profitand Loss Accountimmediatelybefore change in theprofit-sharing ratio. |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XII_V01_C04_S01_011_S01.png" width="80%"/></body></html> | |
| 109. |
X and Y are partners in a firm sharing profits and losses in the ratio of 3: 2. With effect from 1st April ,2019they decided to share future profitequally. On the date of change in theprofits- sharingratio-sharing ratio, theProfit and Loss Account showed a creditbalanceof ₹1,50,000. Record the necessary Journalentry for thedistributionof the balance in theProfitand Loss Accountinthe Profit and Loss Accountimmediately before the changein the profit-sharing ratio. |
| Answer» <html><body><p><br/></p>Answer :Dr <a href="https://interviewquestions.tuteehub.com/tag/profit-1168589" style="font-weight:bold;" target="_blank" title="Click to know more about PROFIT">PROFIT</a> and Loss A/c - ₹1,50,000;<a href="https://interviewquestions.tuteehub.com/tag/cr-427229" style="font-weight:bold;" target="_blank" title="Click to know more about CR">CR</a>. <a href="https://interviewquestions.tuteehub.com/tag/x-746616" style="font-weight:bold;" target="_blank" title="Click to know more about X">X</a> 's CapitalA/c - ₹ 90,000 and Y's CapitalA/c - ₹60,000</body></html> | |
| 110. |
X and Y are equal partners in a firm. Their capital accounts show credit balances of Rs 1,80,000 and Rs 1,20,000 respectively, A new partner Z is admitted with 1/5th share in profits. He brings Rs 1,40,000 for his capital, Value of hidden goodwill at the time of Z's admission will be |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/rs-625947" style="font-weight:bold;" target="_blank" title="Click to know more about RS">RS</a> 2,60,000<br/>Rs 2,50,000<br/>Rs 2,00,000<br/>None of these</p>Answer :A</body></html> | |
| 111. |
Working Capital Turnover Ratio of the firm is 0.94 against industry standard of 2. Do you think the firm is performing better in this area as compared to industry? |
| Answer» <html><body><p></p>Solution :No. The <a href="https://interviewquestions.tuteehub.com/tag/firm-989667" style="font-weight:bold;" target="_blank" title="Click to know more about FIRM">FIRM</a>'s performance in the area is not up to the <a href="https://interviewquestions.tuteehub.com/tag/mark-555248" style="font-weight:bold;" target="_blank" title="Click to know more about MARK">MARK</a>. It shows that Working Capital is not used efficiently. It is also <a href="https://interviewquestions.tuteehub.com/tag/indicated-7298716" style="font-weight:bold;" target="_blank" title="Click to know more about INDICATED">INDICATED</a> by high <a href="https://interviewquestions.tuteehub.com/tag/current-940804" style="font-weight:bold;" target="_blank" title="Click to know more about CURRENT">CURRENT</a> Ratio.</body></html> | |
| 112. |
Working Capital is the : |
| Answer» <html><body><p>Cash and Bank Balance <br/>Capital <a href="https://interviewquestions.tuteehub.com/tag/borrowed-901244" style="font-weight:bold;" target="_blank" title="Click to know more about BORROWED">BORROWED</a> from the <a href="https://interviewquestions.tuteehub.com/tag/banks-393664" style="font-weight:bold;" target="_blank" title="Click to know more about BANKS">BANKS</a> <br/>Difference between Current <a href="https://interviewquestions.tuteehub.com/tag/assets-885948" style="font-weight:bold;" target="_blank" title="Click to know more about ASSETS">ASSETS</a> and Current <a href="https://interviewquestions.tuteehub.com/tag/liabilities-1072887" style="font-weight:bold;" target="_blank" title="Click to know more about LIABILITIES">LIABILITIES</a> <br/>Difference between Current Assets and <a href="https://interviewquestions.tuteehub.com/tag/fixed-457597" style="font-weight:bold;" target="_blank" title="Click to know more about FIXED">FIXED</a> Assets</p>Answer :C</body></html> | |
| 113. |
Working Capital is Rs.7,20,000, Trade payables Rs.40,000, Other Current Liabilities Rs.2,00,000, CalculateCurrent Ratio. |
| Answer» <html><body><p>`<a href="https://interviewquestions.tuteehub.com/tag/3-301577" style="font-weight:bold;" target="_blank" title="Click to know more about 3">3</a> :<a href="https://interviewquestions.tuteehub.com/tag/1-256655" style="font-weight:bold;" target="_blank" title="Click to know more about 1">1</a>`<br/>` 4:1`<br/>`<a href="https://interviewquestions.tuteehub.com/tag/5-319454" style="font-weight:bold;" target="_blank" title="Click to know more about 5">5</a> :1`<br/>`7:1`</p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :` 4:1`</body></html> | |
| 114. |
Working Capital is Rs 7,20,000, Trade Payables Rs 40,000, other Current Liabilities Rs 2,00,000, Calculate Current Ratio |
| Answer» <html><body><p>`<a href="https://interviewquestions.tuteehub.com/tag/3-301577" style="font-weight:bold;" target="_blank" title="Click to know more about 3">3</a> : 1`<br/>`4 : 1`<br/>`<a href="https://interviewquestions.tuteehub.com/tag/5-319454" style="font-weight:bold;" target="_blank" title="Click to know more about 5">5</a> : 1`<br/>`<a href="https://interviewquestions.tuteehub.com/tag/7-332378" style="font-weight:bold;" target="_blank" title="Click to know more about 7">7</a> : 1`</p>Answer :B</body></html> | |
| 115. |
William Pens Ltd. Issued 10,000, 7% Debentures of Rs 100 each at a discount of Rs 4. It has a balance in Securities Premium Reserve of Rs 25,000. it will wirte off Discount on Issue of Debentures |
| Answer» <html><body><p>Rs 40,000 from Securities <a href="https://interviewquestions.tuteehub.com/tag/premium-2555" style="font-weight:bold;" target="_blank" title="Click to know more about PREMIUM">PREMIUM</a> <a href="https://interviewquestions.tuteehub.com/tag/reserve-1186088" style="font-weight:bold;" target="_blank" title="Click to know more about RESERVE">RESERVE</a><br/>Rs 40,000 from <a href="https://interviewquestions.tuteehub.com/tag/statement-16478" style="font-weight:bold;" target="_blank" title="Click to know more about STATEMENT">STATEMENT</a> of <a href="https://interviewquestions.tuteehub.com/tag/profit-1168589" style="font-weight:bold;" target="_blank" title="Click to know more about PROFIT">PROFIT</a> and Loss<br/>Rs 25,000 from Securities Premium Reserve and Rs 15,000 from Statement of Profit and Loss (Finance Cost) <br/>Rs 15,000 from Securities Premium Reserve and Rs 25,000 from Statement of Profit and Loss (Finance Cost)</p>Answer :<a href="https://interviewquestions.tuteehub.com/tag/c-7168" style="font-weight:bold;" target="_blank" title="Click to know more about C">C</a></body></html> | |
| 116. |
With the help of the following information, calculate Return on Investment: Net profit after interest and tax Rs. 8,00,000,10% DebenturesRs. 9,00,000, Tax @ 50%, Capital Employed Rs. 2,00,000. |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<a href="https://interviewquestions.tuteehub.com/tag/return-1187910" style="font-weight:bold;" target="_blank" title="Click to know more about RETURN">RETURN</a> on <a href="https://interviewquestions.tuteehub.com/tag/investment-25469" style="font-weight:bold;" target="_blank" title="Click to know more about INVESTMENT">INVESTMENT</a> = 8.45%.</body></html> | |
| 117. |
William Pens Ltd . Issued 10,000,7% Debentures of Rs.100 each at a discount of Rs.4. it has a balance in Securities Premium Reserve of Rs.25, 000. It Will write off Discount on Issue of Debentures |
| Answer» <html><body><p>Rs.40,000 from Securities Premium Reserve<br/>Rs.40,000 from Statement of <a href="https://interviewquestions.tuteehub.com/tag/profit-1168589" style="font-weight:bold;" target="_blank" title="Click to know more about PROFIT">PROFIT</a> and <a href="https://interviewquestions.tuteehub.com/tag/loss-1079380" style="font-weight:bold;" target="_blank" title="Click to know more about LOSS">LOSS</a><br/>Rs. 25,000 from Securities Premium Reserve and Rs. 15,000from Statement of Profit and Loss (Finance <a href="https://interviewquestions.tuteehub.com/tag/cost-25707" style="font-weight:bold;" target="_blank" title="Click to know more about COST">COST</a>)<br/>Rs.15,000 from Securities Premium Reserve and Rs.25,000 from Statement of Profit and Loss (Finance Cost)</p>Answer :<a href="https://interviewquestions.tuteehub.com/tag/c-7168" style="font-weight:bold;" target="_blank" title="Click to know more about C">C</a></body></html> | |
| 118. |
Why would an investor prefer to invest partly in Shares and partly in Debentures of a Company? |
| Answer» <html><body><p></p>Solution :Shares provied higher return than debentures but Debentures <a href="https://interviewquestions.tuteehub.com/tag/provide-607804" style="font-weight:bold;" target="_blank" title="Click to know more about PROVIDE">PROVIDE</a> a fixed return <a href="https://interviewquestions.tuteehub.com/tag/even-976335" style="font-weight:bold;" target="_blank" title="Click to know more about EVEN">EVEN</a> in case of <a href="https://interviewquestions.tuteehub.com/tag/loss-1079380" style="font-weight:bold;" target="_blank" title="Click to know more about LOSS">LOSS</a>. So by investing in both an investor gets higher return with <a href="https://interviewquestions.tuteehub.com/tag/lower-1080637" style="font-weight:bold;" target="_blank" title="Click to know more about LOWER">LOWER</a> risk.</body></html> | |
| 119. |
Why would an investor prefer to invest in the shares of a company rather than in the Debentures ? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :[Hint: Because shares give voting right/right to take <a href="https://interviewquestions.tuteehub.com/tag/active-367234" style="font-weight:bold;" target="_blank" title="Click to know more about ACTIVE">ACTIVE</a> <a href="https://interviewquestions.tuteehub.com/tag/part-596478" style="font-weight:bold;" target="_blank" title="Click to know more about PART">PART</a> in menagement and also better chances of <a href="https://interviewquestions.tuteehub.com/tag/earning-964156" style="font-weight:bold;" target="_blank" title="Click to know more about EARNING">EARNING</a> higher income.]</body></html> | |
| 120. |
Why would an investor prefer to inverst in share and partly in the debentures of a company ? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :[<a href="https://interviewquestions.tuteehub.com/tag/hint-486738" style="font-weight:bold;" target="_blank" title="Click to know more about HINT">HINT</a>: To have <a href="https://interviewquestions.tuteehub.com/tag/steady-1226685" style="font-weight:bold;" target="_blank" title="Click to know more about STEADY">STEADY</a> <a href="https://interviewquestions.tuteehub.com/tag/income-25499" style="font-weight:bold;" target="_blank" title="Click to know more about INCOME">INCOME</a> with <a href="https://interviewquestions.tuteehub.com/tag/higher-1022060" style="font-weight:bold;" target="_blank" title="Click to know more about HIGHER">HIGHER</a> reture.]</body></html> | |
| 121. |
Why Vertical Analysis is also known as Static Analysis? |
| Answer» <html><body><p></p>Solution :Vertical <a href="https://interviewquestions.tuteehub.com/tag/analysis-25709" style="font-weight:bold;" target="_blank" title="Click to know more about ANALYSIS">ANALYSIS</a> is the <a href="https://interviewquestions.tuteehub.com/tag/study-1230645" style="font-weight:bold;" target="_blank" title="Click to know more about STUDY">STUDY</a> of quantitative relationship existing among the <a href="https://interviewquestions.tuteehub.com/tag/items-1052972" style="font-weight:bold;" target="_blank" title="Click to know more about ITEMS">ITEMS</a> of a single set of Finanical <a href="https://interviewquestions.tuteehub.com/tag/statements-17642" style="font-weight:bold;" target="_blank" title="Click to know more about STATEMENTS">STATEMENTS</a> at a particlular data. This justifies the <a href="https://interviewquestions.tuteehub.com/tag/convention-933064" style="font-weight:bold;" target="_blank" title="Click to know more about CONVENTION">CONVENTION</a> that Vertical Analysis is a StaticAnalysis.</body></html> | |
| 122. |
Why should a new partner contribute towards goodwill on his admission? |
| Answer» <html><body><p></p>Solution :When a partner is admitted in the firm, he geta <a href="https://interviewquestions.tuteehub.com/tag/following-463335" style="font-weight:bold;" target="_blank" title="Click to know more about FOLLOWING">FOLLOWING</a> <a href="https://interviewquestions.tuteehub.com/tag/two-714195" style="font-weight:bold;" target="_blank" title="Click to know more about TWO">TWO</a> rights, <br/> (i) Right to share <a href="https://interviewquestions.tuteehub.com/tag/future-2559" style="font-weight:bold;" target="_blank" title="Click to know more about FUTURE">FUTURE</a> profits of the firm, and <br/> (ii) Right to share in the assets of the firm.</body></html> | |
| 123. |
Why should a new partner contirbute towards goodwill on his admission? |
| Answer» <html><body><p></p>Solution :Since, a new partner gets his <a href="https://interviewquestions.tuteehub.com/tag/share-25805" style="font-weight:bold;" target="_blank" title="Click to know more about SHARE">SHARE</a> of profit from old partners, so he must compensate the old (<a href="https://interviewquestions.tuteehub.com/tag/sacrificing-7711813" style="font-weight:bold;" target="_blank" title="Click to know more about SACRIFICING">SACRIFICING</a>) partnres for the share <a href="https://interviewquestions.tuteehub.com/tag/sacrificed-7302819" style="font-weight:bold;" target="_blank" title="Click to know more about SACRIFICED">SACRIFICED</a> by them. The amount of compensation <a href="https://interviewquestions.tuteehub.com/tag/given-473447" style="font-weight:bold;" target="_blank" title="Click to know more about GIVEN">GIVEN</a> by the new partner is know as goodwill.</body></html> | |
| 124. |
Why receipts irrespective of their natureand the period to which they relate are , shown in Receipts and Payments Accounts ? |
| Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<a href="https://interviewquestions.tuteehub.com/tag/receipts-1179271" style="font-weight:bold;" target="_blank" title="Click to know more about RECEIPTS">RECEIPTS</a> and Payments <a href="https://interviewquestions.tuteehub.com/tag/account-25640" style="font-weight:bold;" target="_blank" title="Click to know more about ACCOUNT">ACCOUNT</a> is a summary of cash and bank transactions of a Not-for-Profit organisation. Sincethe amount received or paid during the accounting period of <a href="https://interviewquestions.tuteehub.com/tag/every-976721" style="font-weight:bold;" target="_blank" title="Click to know more about EVERY">EVERY</a> nature and whether <a href="https://interviewquestions.tuteehub.com/tag/relation-1183220" style="font-weight:bold;" target="_blank" title="Click to know more about RELATION">RELATION</a> to current accounting period or not are recorded in Cash Book, all receipts and payments are shown in the Receipts and Payments Account.</body></html> | |
| 125. |
Why Losse Tools and Stores and Spares are not included in Current Assets while calculating Current Ratio? |
| Answer» <html><body><p></p>Solution :Loose <a href="https://interviewquestions.tuteehub.com/tag/tools-25672" style="font-weight:bold;" target="_blank" title="Click to know more about TOOLS">TOOLS</a> and <a href="https://interviewquestions.tuteehub.com/tag/stores-1228345" style="font-weight:bold;" target="_blank" title="Click to know more about STORES">STORES</a> and Spares are not included because they are not <a href="https://interviewquestions.tuteehub.com/tag/held-7620091" style="font-weight:bold;" target="_blank" title="Click to know more about HELD">HELD</a> for conversion into <a href="https://interviewquestions.tuteehub.com/tag/cash-910172" style="font-weight:bold;" target="_blank" title="Click to know more about CASH">CASH</a>.</body></html> | |
| 126. |
Why liquidity ratiois considered to be more dependable than current ratio? Explain. |
| Answer» | |
| 127. |
Why is the General Reserve distiributed among the old partners before new partner is admitted? |
| Answer» <html><body><p></p>Solution :General Reserve <a href="https://interviewquestions.tuteehub.com/tag/represents-1185452" style="font-weight:bold;" target="_blank" title="Click to know more about REPRESENTS">REPRESENTS</a> <a href="https://interviewquestions.tuteehub.com/tag/accumulated-366703" style="font-weight:bold;" target="_blank" title="Click to know more about ACCUMULATED">ACCUMULATED</a> profits relating to the periof prior to the <a href="https://interviewquestions.tuteehub.com/tag/admission-850349" style="font-weight:bold;" target="_blank" title="Click to know more about ADMISSION">ADMISSION</a> of a new partner. It belongs to old partners and, <a href="https://interviewquestions.tuteehub.com/tag/therefore-706901" style="font-weight:bold;" target="_blank" title="Click to know more about THEREFORE">THEREFORE</a>, is <a href="https://interviewquestions.tuteehub.com/tag/distributed-956878" style="font-weight:bold;" target="_blank" title="Click to know more about DISTRIBUTED">DISTRIBUTED</a> among old partners.</body></html> | |
| 128. |
Why is specific disclosure of Cash Flow from Financing Activities important while preparing Cash Flow Statement? |
| Answer» <html><body><p></p>Solution :It is important because the amount of Cash Flow from Financing <a href="https://interviewquestions.tuteehub.com/tag/activities-848359" style="font-weight:bold;" target="_blank" title="Click to know more about ACTIVITIES">ACTIVITIES</a> is useful in assessing <a href="https://interviewquestions.tuteehub.com/tag/claims-917624" style="font-weight:bold;" target="_blank" title="Click to know more about CLAIMS">CLAIMS</a> on <a href="https://interviewquestions.tuteehub.com/tag/future-2559" style="font-weight:bold;" target="_blank" title="Click to know more about FUTURE">FUTURE</a> Cash Flows by the contributors of funds to the <a href="https://interviewquestions.tuteehub.com/tag/enterprise-3569" style="font-weight:bold;" target="_blank" title="Click to know more about ENTERPRISE">ENTERPRISE</a>.</body></html> | |
| 129. |
Why is separate disclosure of Cash Flow from Investing Activities important while preparing Cash Flow Statement? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :It is <a href="https://interviewquestions.tuteehub.com/tag/important-1038039" style="font-weight:bold;" target="_blank" title="Click to know more about IMPORTANT">IMPORTANT</a> because it <a href="https://interviewquestions.tuteehub.com/tag/shows-1206590" style="font-weight:bold;" target="_blank" title="Click to know more about SHOWS">SHOWS</a> the investment made to generate <a href="https://interviewquestions.tuteehub.com/tag/income-25499" style="font-weight:bold;" target="_blank" title="Click to know more about INCOME">INCOME</a> and Cash Flows in future.</body></html> | |
| 130. |
Why is self-generated goodwill not recorded in the books of account? |
| Answer» <html><body><p></p>Solution :Self-generated goodwill is not accounted in the books of acccount because <a href="https://interviewquestions.tuteehub.com/tag/consideration-929955" style="font-weight:bold;" target="_blank" title="Click to know more about CONSIDERATION">CONSIDERATION</a> in money or money's worth is not paid for it. <a href="https://interviewquestions.tuteehub.com/tag/according-366619" style="font-weight:bold;" target="_blank" title="Click to know more about ACCORDING">ACCORDING</a> to AS-26, <a href="https://interviewquestions.tuteehub.com/tag/intangible-499512" style="font-weight:bold;" target="_blank" title="Click to know more about INTANGIBLE">INTANGIBLE</a> <a href="https://interviewquestions.tuteehub.com/tag/assets-885948" style="font-weight:bold;" target="_blank" title="Click to know more about ASSETS">ASSETS</a> only Purchased Goodwill should be accounted in the books of <a href="https://interviewquestions.tuteehub.com/tag/account-25640" style="font-weight:bold;" target="_blank" title="Click to know more about ACCOUNT">ACCOUNT</a>.</body></html> | |
| 131. |
Why is Journal called a Book of Prime Entry? |
| Answer» <html><body><p></p>Solution : A <a href="https://interviewquestions.tuteehub.com/tag/journal-1062252" style="font-weight:bold;" target="_blank" title="Click to know more about JOURNAL">JOURNAL</a> is called a Book of <a href="https://interviewquestions.tuteehub.com/tag/prime-605748" style="font-weight:bold;" target="_blank" title="Click to know more about PRIME">PRIME</a> <a href="https://interviewquestions.tuteehub.com/tag/entry-972873" style="font-weight:bold;" target="_blank" title="Click to know more about ENTRY">ENTRY</a> (<a href="https://interviewquestions.tuteehub.com/tag/also-373387" style="font-weight:bold;" target="_blank" title="Click to know more about ALSO">ALSO</a> called Book of Original Entry) because all business <a href="https://interviewquestions.tuteehub.com/tag/transactions-18175" style="font-weight:bold;" target="_blank" title="Click to know more about TRANSACTIONS">TRANSACTIONS</a> are enteredfirst in this book</body></html> | |
| 132. |
Why is it necessary to revalue the assets and liabilities of a firm on its reconstituation? Explain briefly. |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :At the time of reconstitusion of the firm, assets and liabilities of the firm are revalued. The net gain (or loss) <a href="https://interviewquestions.tuteehub.com/tag/due-433472" style="font-weight:bold;" target="_blank" title="Click to know more about DUE">DUE</a> to revaluation of assets and liabilities is shared by the existing partners in their old profit-sharing ratio. Gain (or loss) on reveluation is computed by <a href="https://interviewquestions.tuteehub.com/tag/opening-1136658" style="font-weight:bold;" target="_blank" title="Click to know more about OPENING">OPENING</a> 'Revaluation Account' at the time of <a href="https://interviewquestions.tuteehub.com/tag/admission-850349" style="font-weight:bold;" target="_blank" title="Click to know more about ADMISSION">ADMISSION</a> or retirement of a partner. The objective acheived in this process is that the net benefit of increase (or decrease) in the value of assets and liabilities due to the efforts of the existing partners is shared by then only.</body></html> | |
| 133. |
Why is it necessary to revalue assets and liabilities of a firm in case of admission of a partner? |
| Answer» <html><body><p></p>Solution :It is <a href="https://interviewquestions.tuteehub.com/tag/necessary-1112675" style="font-weight:bold;" target="_blank" title="Click to know more about NECESSARY">NECESSARY</a> to <a href="https://interviewquestions.tuteehub.com/tag/revalue-7319954" style="font-weight:bold;" target="_blank" title="Click to know more about REVALUE">REVALUE</a> <a href="https://interviewquestions.tuteehub.com/tag/assets-885948" style="font-weight:bold;" target="_blank" title="Click to know more about ASSETS">ASSETS</a> and <a href="https://interviewquestions.tuteehub.com/tag/liabilities-1072887" style="font-weight:bold;" target="_blank" title="Click to know more about LIABILITIES">LIABILITIES</a> of a firm in case of admission of a partner so that the incoming partner is <a href="https://interviewquestions.tuteehub.com/tag/neither-1113494" style="font-weight:bold;" target="_blank" title="Click to know more about NEITHER">NEITHER</a> put to an advantage nor to disadvantage due to change in the market value of assets and liabilities.</body></html> | |
| 134. |
Why is it necessary to revalue assets and liabilities of a firm in case of admission of a partner ? |
| Answer» <html><body><p></p>Solution :It is necessary to <a href="https://interviewquestions.tuteehub.com/tag/revalue-7319954" style="font-weight:bold;" target="_blank" title="Click to know more about REVALUE">REVALUE</a> assets and liabilities of a <a href="https://interviewquestions.tuteehub.com/tag/firm-989667" style="font-weight:bold;" target="_blank" title="Click to know more about FIRM">FIRM</a> in case of admission of a partner so that the incoming partner is neither put to an advatage not to disadvantage due to change in the <a href="https://interviewquestions.tuteehub.com/tag/market-25464" style="font-weight:bold;" target="_blank" title="Click to know more about MARKET">MARKET</a> <a href="https://interviewquestions.tuteehub.com/tag/vlaue-1447525" style="font-weight:bold;" target="_blank" title="Click to know more about VLAUE">VLAUE</a> of assets and liabilities .</body></html> | |
| 135. |
Why is it necessary to prepare Trial Balance ? |
| Answer» <html><body><p></p>Solution : Trial Balance is a statement of debit and credit balances of <a href="https://interviewquestions.tuteehub.com/tag/accounts-14064" style="font-weight:bold;" target="_blank" title="Click to know more about ACCOUNTS">ACCOUNTS</a> in the <a href="https://interviewquestions.tuteehub.com/tag/ledger-1070861" style="font-weight:bold;" target="_blank" title="Click to know more about LEDGER">LEDGER</a>. It is necessary to prepare a Trial Balance because: <br/> I) it tests the arithmetical accuracy of the transactions <a href="https://interviewquestions.tuteehub.com/tag/recorded-2240050" style="font-weight:bold;" target="_blank" title="Click to know more about RECORDED">RECORDED</a> in the <a href="https://interviewquestions.tuteehub.com/tag/books-900981" style="font-weight:bold;" target="_blank" title="Click to know more about BOOKS">BOOKS</a> of accounts,and <br/> ii)it <a href="https://interviewquestions.tuteehub.com/tag/helps-1018140" style="font-weight:bold;" target="_blank" title="Click to know more about HELPS">HELPS</a> in preparing the financial statements</body></html> | |
| 136. |
Why is it necessary for Ms. Parul and Ms. Aruna to enter into partnership Deed? |
| Answer» <html><body><p></p>Solution : It is necessary for them to <a href="https://interviewquestions.tuteehub.com/tag/enter-446119" style="font-weight:bold;" target="_blank" title="Click to know more about ENTER">ENTER</a> into <a href="https://interviewquestions.tuteehub.com/tag/partnership-13081" style="font-weight:bold;" target="_blank" title="Click to know more about PARTNERSHIP">PARTNERSHIP</a> Deed so that a <a href="https://interviewquestions.tuteehub.com/tag/dispute-956214" style="font-weight:bold;" target="_blank" title="Click to know more about DISPUTE">DISPUTE</a> does not arise between them.</body></html> | |
| 137. |
Why is it important to know Cash Flow from Operating Activity? |
| Answer» <html><body><p></p>Solution :It is important because Operating <a href="https://interviewquestions.tuteehub.com/tag/activities-848359" style="font-weight:bold;" target="_blank" title="Click to know more about ACTIVITIES">ACTIVITIES</a> are principal revenue producing activities of the enterprise. If cash tiow under the activity is negative, it is a cause of concern. It <a href="https://interviewquestions.tuteehub.com/tag/shows-1206590" style="font-weight:bold;" target="_blank" title="Click to know more about SHOWS">SHOWS</a> that the enterprise is not generating <a href="https://interviewquestions.tuteehub.com/tag/adequate-361874" style="font-weight:bold;" target="_blank" title="Click to know more about ADEQUATE">ADEQUATE</a> cash to maintain its operations and also servicing of loans and capital.</body></html> | |
| 138. |
Why is 'Goodwill' considered and 'Intangible Asset' but not a 'Fictitious Assets'? |
| Answer» <html><body><p></p>Solution :Goodwill cannot be seen or <a href="https://interviewquestions.tuteehub.com/tag/touched-7264694" style="font-weight:bold;" target="_blank" title="Click to know more about TOUCHED">TOUCHED</a>, it can only be felt. Hence, it is treated as an <a href="https://interviewquestions.tuteehub.com/tag/intangible-499512" style="font-weight:bold;" target="_blank" title="Click to know more about INTANGIBLE">INTANGIBLE</a> <a href="https://interviewquestions.tuteehub.com/tag/asset-885901" style="font-weight:bold;" target="_blank" title="Click to know more about ASSET">ASSET</a>. But it is not a ficitious asset because ficitious <a href="https://interviewquestions.tuteehub.com/tag/assets-885948" style="font-weight:bold;" target="_blank" title="Click to know more about ASSETS">ASSETS</a> do not have a value whereas goodwill has a value and it can be <a href="https://interviewquestions.tuteehub.com/tag/purchased-2962400" style="font-weight:bold;" target="_blank" title="Click to know more about PURCHASED">PURCHASED</a> or sold with any other asset.</body></html> | |
| 139. |
Why is difference between opening and closing inventories of materials not shown against Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade? |
| Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :It is not shown in Changes in Inventories of Finished <a href="https://interviewquestions.tuteehub.com/tag/goods-1009877" style="font-weight:bold;" target="_blank" title="Click to know more about GOODS">GOODS</a>, Work-in-Progress and Stock-in-Trade because it is accounted in Cost of <a href="https://interviewquestions.tuteehub.com/tag/materials-1089380" style="font-weight:bold;" target="_blank" title="Click to know more about MATERIALS">MATERIALS</a> Consumed.</body></html> | |
| 140. |
Why is depreciation added back to net profit while preparing 'Cash Flow Statement'? |
| Answer» <html><body><p></p>Solution :Depreciation is <a href="https://interviewquestions.tuteehub.com/tag/added-367625" style="font-weight:bold;" target="_blank" title="Click to know more about ADDED">ADDED</a> back to net profit while preparing Cash Flow Statement becauseit does not involve <a href="https://interviewquestions.tuteehub.com/tag/outflow-1142710" style="font-weight:bold;" target="_blank" title="Click to know more about OUTFLOW">OUTFLOW</a> of cash but results in <a href="https://interviewquestions.tuteehub.com/tag/decrease-946104" style="font-weight:bold;" target="_blank" title="Click to know more about DECREASE">DECREASE</a> in <a href="https://interviewquestions.tuteehub.com/tag/profits-1168748" style="font-weight:bold;" target="_blank" title="Click to know more about PROFITS">PROFITS</a>.</body></html> | |
| 141. |
Why is Cash Flow Statement prepared?OrWhat is the objective of preparing a Cash Flow Statement?OrState the primary objective of preparing Cash Flow Statement. |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<a href="https://interviewquestions.tuteehub.com/tag/cash-910172" style="font-weight:bold;" target="_blank" title="Click to know more about CASH">CASH</a> Flow Statement is prepared to determine the cash <a href="https://interviewquestions.tuteehub.com/tag/flows-993448" style="font-weight:bold;" target="_blank" title="Click to know more about FLOWS">FLOWS</a> of an <a href="https://interviewquestions.tuteehub.com/tag/enterprise-3569" style="font-weight:bold;" target="_blank" title="Click to know more about ENTERPRISE">ENTERPRISE</a> during a <a href="https://interviewquestions.tuteehub.com/tag/specific-1220917" style="font-weight:bold;" target="_blank" title="Click to know more about SPECIFIC">SPECIFIC</a> period from its Operating, Investing and Financing Activities.</body></html> | |
| 142. |
Why Is Closing Stock valued at lower of cost or net realisable value? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<a href="https://interviewquestions.tuteehub.com/tag/closing-919708" style="font-weight:bold;" target="_blank" title="Click to know more about CLOSING">CLOSING</a> <a href="https://interviewquestions.tuteehub.com/tag/stock-1227804" style="font-weight:bold;" target="_blank" title="Click to know more about STOCK">STOCK</a> is <a href="https://interviewquestions.tuteehub.com/tag/valued-2321544" style="font-weight:bold;" target="_blank" title="Click to know more about VALUED">VALUED</a> at lower of Cost or net realisable value because of the Prudence <a href="https://interviewquestions.tuteehub.com/tag/concept-928138" style="font-weight:bold;" target="_blank" title="Click to know more about CONCEPT">CONCEPT</a> of accounting</body></html> | |
| 143. |
Why have you shown₹ 23,755 lakhs being dividend related to financial year ended 31st March, 2014 as outflow of cash in the financial year ended 31st March, 2015 ? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :It is <a href="https://interviewquestions.tuteehub.com/tag/shown-1206565" style="font-weight:bold;" target="_blank" title="Click to know more about SHOWN">SHOWN</a> as an <a href="https://interviewquestions.tuteehub.com/tag/outflow-1142710" style="font-weight:bold;" target="_blank" title="Click to know more about OUTFLOW">OUTFLOW</a> during the year because proposed dividend is <a href="https://interviewquestions.tuteehub.com/tag/paid-1145567" style="font-weight:bold;" target="_blank" title="Click to know more about PAID">PAID</a> after it is apporved by the shareholders .Since proposed dividend pf 2014 is approved by the shareholders subsequnt to 31 stmarch, 2014 it <a href="https://interviewquestions.tuteehub.com/tag/must-2185568" style="font-weight:bold;" target="_blank" title="Click to know more about MUST">MUST</a> have been paid in financial year ended 31st march 2015.</body></html> | |
| 144. |
Why heirs of retring/deceased partner are entitled to share of goodwill of the firm ? |
| Answer» <html><body><p></p>Solution :The <a href="https://interviewquestions.tuteehub.com/tag/retiring-2991935" style="font-weight:bold;" target="_blank" title="Click to know more about RETIRING">RETIRING</a> <a href="https://interviewquestions.tuteehub.com/tag/partner-1148214" style="font-weight:bold;" target="_blank" title="Click to know more about PARTNER">PARTNER</a>/heirs of deceased partner are entitled to the <a href="https://interviewquestions.tuteehub.com/tag/share-25805" style="font-weight:bold;" target="_blank" title="Click to know more about SHARE">SHARE</a> of <a href="https://interviewquestions.tuteehub.com/tag/goodwill-475103" style="font-weight:bold;" target="_blank" title="Click to know more about GOODWILL">GOODWILL</a> earned by the firm is the <a href="https://interviewquestions.tuteehub.com/tag/result-1187343" style="font-weight:bold;" target="_blank" title="Click to know more about RESULT">RESULT</a> of the efforts of the all the existing partners in the past.</body></html> | |
| 145. |
Why Horizontal Analysis is considered dynamic in nature? |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/horizontal-1029056" style="font-weight:bold;" target="_blank" title="Click to know more about HORIZONTAL">HORIZONTAL</a> Analysis is dynamic in nature since it is a <a href="https://interviewquestions.tuteehub.com/tag/time-19467" style="font-weight:bold;" target="_blank" title="Click to know more about TIME">TIME</a> series analysis. It shows comparison of financial data for <a href="https://interviewquestions.tuteehub.com/tag/several-1203547" style="font-weight:bold;" target="_blank" title="Click to know more about SEVERAL">SEVERAL</a> years against a <a href="https://interviewquestions.tuteehub.com/tag/chosen-2515513" style="font-weight:bold;" target="_blank" title="Click to know more about CHOSEN">CHOSEN</a> base <a href="https://interviewquestions.tuteehub.com/tag/year-1464599" style="font-weight:bold;" target="_blank" title="Click to know more about YEAR">YEAR</a>.</body></html> | |
| 146. |
Why does a firm revaluate its assets and reassess its liabilities on retirement or death of a partner ? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :At the time of retirement of <a href="https://interviewquestions.tuteehub.com/tag/death-435466" style="font-weight:bold;" target="_blank" title="Click to know more about DEATH">DEATH</a> of a partner, assects are <a href="https://interviewquestions.tuteehub.com/tag/revalued-7710507" style="font-weight:bold;" target="_blank" title="Click to know more about REVALUED">REVALUED</a> and liabilities are reassessed so that the gain (profit) or <a href="https://interviewquestions.tuteehub.com/tag/loss-1079380" style="font-weight:bold;" target="_blank" title="Click to know more about LOSS">LOSS</a> arising on account of such revalution up to the deat of retirement or death of a partner may be ascertained and adjusted in the Capital Accounts of all the <a href="https://interviewquestions.tuteehub.com/tag/partners-1148238" style="font-weight:bold;" target="_blank" title="Click to know more about PARTNERS">PARTNERS</a> in their old profit-sharing ratio.</body></html> | |
| 147. |
Why does a 'Non-for-Profit Organisation' prepare an 'Income and Expenditure Account' instead of 'Profit and Loss Account'? |
| Answer» <html><body><p></p>Solution :Since a 'Not-for-Profit Organisation' is not run to <a href="https://interviewquestions.tuteehub.com/tag/earn-444812" style="font-weight:bold;" target="_blank" title="Click to know more about EARN">EARN</a> profit it does not prepare Profit and Loss <a href="https://interviewquestions.tuteehub.com/tag/account-25640" style="font-weight:bold;" target="_blank" title="Click to know more about ACCOUNT">ACCOUNT</a> but for evaluating the <a href="https://interviewquestions.tuteehub.com/tag/financial-988642" style="font-weight:bold;" target="_blank" title="Click to know more about FINANCIAL">FINANCIAL</a> results (i.e., surplus or deficit <a href="https://interviewquestions.tuteehub.com/tag/arising-7662809" style="font-weight:bold;" target="_blank" title="Click to know more about ARISING">ARISING</a> from the activities of a non-profit organisation), it prepares Income and Expenditure Account at the end of the year.</body></html> | |
| 148. |
Why do you think lower Trade Payables Turnover Ratio is not good for the firm? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> : Lower Trade Payables Turnover <a href="https://interviewquestions.tuteehub.com/tag/ratio-13379" style="font-weight:bold;" target="_blank" title="Click to know more about RATIO">RATIO</a> indicates thatCreditors are not paid on <a href="https://interviewquestions.tuteehub.com/tag/time-19467" style="font-weight:bold;" target="_blank" title="Click to know more about TIME">TIME</a> meaning <a href="https://interviewquestions.tuteehub.com/tag/delay-947451" style="font-weight:bold;" target="_blank" title="Click to know more about DELAY">DELAY</a> in <a href="https://interviewquestions.tuteehub.com/tag/payments-1149318" style="font-weight:bold;" target="_blank" title="Click to know more about PAYMENTS">PAYMENTS</a> to tradeCreditors</body></html> | |
| 149. |
Why do we recognise 'income earned but not received' and 'expenses incurred but not paid' in the books of account? |
| Answer» <html><body><p></p>Solution :They are recognised because of the <a href="https://interviewquestions.tuteehub.com/tag/accrual-847173" style="font-weight:bold;" target="_blank" title="Click to know more about ACCRUAL">ACCRUAL</a> <a href="https://interviewquestions.tuteehub.com/tag/concept-928138" style="font-weight:bold;" target="_blank" title="Click to know more about CONCEPT">CONCEPT</a> of accounting, which <a href="https://interviewquestions.tuteehub.com/tag/requires-7264857" style="font-weight:bold;" target="_blank" title="Click to know more about REQUIRES">REQUIRES</a> that transactions be recorded in the books of account when they are <a href="https://interviewquestions.tuteehub.com/tag/entered-2072095" style="font-weight:bold;" target="_blank" title="Click to know more about ENTERED">ENTERED</a> into and not when they are <a href="https://interviewquestions.tuteehub.com/tag/settled-3021992" style="font-weight:bold;" target="_blank" title="Click to know more about SETTLED">SETTLED</a>.</body></html> | |
| 150. |
Why do we calculate Gaining Ratio? |
| Answer» <html><body><p></p>Solution :The objective of calculating <a href="https://interviewquestions.tuteehub.com/tag/gaining-1003228" style="font-weight:bold;" target="_blank" title="Click to know more about GAINING">GAINING</a> Ratio is to <a href="https://interviewquestions.tuteehub.com/tag/find-11616" style="font-weight:bold;" target="_blank" title="Click to know more about FIND">FIND</a> out the <a href="https://interviewquestions.tuteehub.com/tag/compensation-925503" style="font-weight:bold;" target="_blank" title="Click to know more about COMPENSATION">COMPENSATION</a> to be paid by each of the <a href="https://interviewquestions.tuteehub.com/tag/remaining-1184297" style="font-weight:bold;" target="_blank" title="Click to know more about REMAINING">REMAINING</a> partners to the retirng/deceased <a href="https://interviewquestions.tuteehub.com/tag/partner-1148214" style="font-weight:bold;" target="_blank" title="Click to know more about PARTNER">PARTNER</a>.</body></html> | |