Explore topic-wise InterviewSolutions in Class 12.

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.

251.

Which areas , according to you are the weak areas of the firm ?

Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/weak-729638" style="font-weight:bold;" target="_blank" title="Click to know more about WEAK">WEAK</a> areas of the firm are :<br/> (i) Inventory Management , <br/> (ii) Inefficiency in <a href="https://interviewquestions.tuteehub.com/tag/colloection-2526657" style="font-weight:bold;" target="_blank" title="Click to know more about COLLOECTION">COLLOECTION</a> from <a href="https://interviewquestions.tuteehub.com/tag/debtors-435558" style="font-weight:bold;" target="_blank" title="Click to know more about DEBTORS">DEBTORS</a> , <br/> (iii) <a href="https://interviewquestions.tuteehub.com/tag/inefficient-2736520" style="font-weight:bold;" target="_blank" title="Click to know more about INEFFICIENT">INEFFICIENT</a> use of working Capital , andltbr. (<a href="https://interviewquestions.tuteehub.com/tag/iv-501699" style="font-weight:bold;" target="_blank" title="Click to know more about IV">IV</a>) Inefficient use of surplus funds.</body></html>
Discussion
252.

Which analysis is considered as static?

Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/horizontal-1029056" style="font-weight:bold;" target="_blank" title="Click to know more about HORIZONTAL">HORIZONTAL</a> <a href="https://interviewquestions.tuteehub.com/tag/analysis-25709" style="font-weight:bold;" target="_blank" title="Click to know more about ANALYSIS">ANALYSIS</a><br/><a href="https://interviewquestions.tuteehub.com/tag/vertical-726181" style="font-weight:bold;" target="_blank" title="Click to know more about VERTICAL">VERTICAL</a> Analysis<br/>Internal Analysis<br/>External Analysis</p>Solution :Vertical Analysis</body></html>
Discussion
253.

Which analysis is considered as static :

Answer» <html><body><p><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<br/>Vertical Analysis<br/>Internal Analysis<br/>External Analysis</p>Answer :<a href="https://interviewquestions.tuteehub.com/tag/b-387190" style="font-weight:bold;" target="_blank" title="Click to know more about B">B</a></body></html>
Discussion
254.

Which analysis is considered as static ?

Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/horizontal-1029056" style="font-weight:bold;" target="_blank" title="Click to know more about HORIZONTAL">HORIZONTAL</a> <a href="https://interviewquestions.tuteehub.com/tag/analysis-25709" style="font-weight:bold;" target="_blank" title="Click to know more about ANALYSIS">ANALYSIS</a><br/><a href="https://interviewquestions.tuteehub.com/tag/vertical-726181" style="font-weight:bold;" target="_blank" title="Click to know more about VERTICAL">VERTICAL</a> Analysis<br/>Internal Analysis<br/>External Analysis</p>Solution :Vertical Analysis</body></html>
Discussion
255.

Which analysis is considered asdynamic?

Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/horizontal-1029056" style="font-weight:bold;" target="_blank" title="Click to know more about HORIZONTAL">HORIZONTAL</a> <a href="https://interviewquestions.tuteehub.com/tag/analysis-25709" style="font-weight:bold;" target="_blank" title="Click to know more about ANALYSIS">ANALYSIS</a><br/>Vertical Analysis<br/>Internal Analysis<br/>External Analysis</p>Solution :Horizontal Analysis</body></html>
Discussion
256.

Which analysis is considered as dynamic

Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/horizontal-1029056" style="font-weight:bold;" target="_blank" title="Click to know more about HORIZONTAL">HORIZONTAL</a> <a href="https://interviewquestions.tuteehub.com/tag/analysis-25709" style="font-weight:bold;" target="_blank" title="Click to know more about ANALYSIS">ANALYSIS</a><br/>Vertical Analysis<br/>Internal Analysis<br/>External Analysis</p>Solution :Horizontal Analysis</body></html>
Discussion
257.

Which analysis is considered as dynamic :

Answer» <html><body><p><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<br/>Vertical Analysis<br/>Internal Analysis<br/>External Analysis</p>Answer :A</body></html>
Discussion
258.

Whichanalysis is based only on one year's data :

Answer» <html><body><p>1 - Cash <a href="https://interviewquestions.tuteehub.com/tag/flow-993213" style="font-weight:bold;" target="_blank" title="Click to know more about FLOW">FLOW</a> Statement<br/>2 - Dividend Analysis<br/>3 - <a href="https://interviewquestions.tuteehub.com/tag/vertical-726181" style="font-weight:bold;" target="_blank" title="Click to know more about VERTICAL">VERTICAL</a> Analysis<br/>4 - <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</p>Answer :C</body></html>
Discussion
259.

Which analysis depicts the relationship between two figures :

Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/ratio-13379" style="font-weight:bold;" target="_blank" title="Click to know more about RATIO">RATIO</a> Analysis<br/>Trend Analysis<br/>Cumulative <a href="https://interviewquestions.tuteehub.com/tag/figures-987769" style="font-weight:bold;" target="_blank" title="Click to know more about FIGURES">FIGURES</a> and averages<br/>Dividend Analysis</p>Answer :A</body></html>
Discussion
260.

Which account shows the net result of revaluation of assets and reassessment of liabilities?

Answer» <html><body><p></p>Solution :Revaluation Account <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 net <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 revaluation of assets and reassessment of <a href="https://interviewquestions.tuteehub.com/tag/liabilities-1072887" style="font-weight:bold;" target="_blank" title="Click to know more about LIABILITIES">LIABILITIES</a>.</body></html>
Discussion
261.

Which account shows surplus or deficit in case of Not-for-Profit Organisation?

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/income-25499" style="font-weight:bold;" target="_blank" title="Click to know more about INCOME">INCOME</a> and <a href="https://interviewquestions.tuteehub.com/tag/expenditure-980222" style="font-weight:bold;" target="_blank" title="Click to know more about EXPENDITURE">EXPENDITURE</a> <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>
Discussion
262.

Which account shall be debited for goods distributed as free samples?

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/advertisement-850826" style="font-weight:bold;" target="_blank" title="Click to know more about ADVERTISEMENT">ADVERTISEMENT</a> <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>
Discussion
263.

Where would you transfer the balance left in the share forfeited account after the reissue of such shares ?

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> :Balance <a href="https://interviewquestions.tuteehub.com/tag/left-1070879" style="font-weight:bold;" target="_blank" title="Click to know more about LEFT">LEFT</a> in share forfeited <a href="https://interviewquestions.tuteehub.com/tag/account-25640" style="font-weight:bold;" target="_blank" title="Click to know more about ACCOUNT">ACCOUNT</a> after the reissue of such shares represents a capital profit, which is <a href="https://interviewquestions.tuteehub.com/tag/transferred-2310410" style="font-weight:bold;" target="_blank" title="Click to know more about TRANSFERRED">TRANSFERRED</a> to 'Capital <a href="https://interviewquestions.tuteehub.com/tag/reserve-1186088" style="font-weight:bold;" target="_blank" title="Click to know more about RESERVE">RESERVE</a> Account'.</body></html>
Discussion
264.

Which account is debited for creating Provision for Doubtful Debts on Debtors?

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> : Profit and Loss Account is debited to create a Provision for <a href="https://interviewquestions.tuteehub.com/tag/doubtful-432836" style="font-weight:bold;" target="_blank" title="Click to know more about DOUBTFUL">DOUBTFUL</a> Debts on <a href="https://interviewquestions.tuteehub.com/tag/debtors-435558" style="font-weight:bold;" target="_blank" title="Click to know more about DEBTORS">DEBTORS</a></body></html>
Discussion
265.

Where would you record 'inteerest on drawongs' when capital is fixed?

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 deited to the <a href="https://interviewquestions.tuteehub.com/tag/current-940804" style="font-weight:bold;" target="_blank" title="Click to know more about CURRENT">CURRENT</a> <a href="https://interviewquestions.tuteehub.com/tag/accounts-14064" style="font-weight:bold;" target="_blank" title="Click to know more about ACCOUNTS">ACCOUNTS</a> of <a href="https://interviewquestions.tuteehub.com/tag/partners-1148238" style="font-weight:bold;" target="_blank" title="Click to know more about PARTNERS">PARTNERS</a>.</body></html>
Discussion
266.

Where it is agreed that a partner will be paid a lump sum amount for dissolution , if the payment is made by the firm , the payment is debited to

Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/realisation-1178917" style="font-weight:bold;" target="_blank" title="Click to know more about REALISATION">REALISATION</a> <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/><a href="https://interviewquestions.tuteehub.com/tag/concernedstrong-2536362" style="font-weight:bold;" target="_blank" title="Click to know more about CONCERNED">CONCERNED</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>'s <a href="https://interviewquestions.tuteehub.com/tag/capital-908677" style="font-weight:bold;" target="_blank" title="Click to know more about CAPITAL">CAPITAL</a> Account .<br/>All Partner's Capital Accounts.<br/></p>Solution :Concerned Partner's Capital Account .</body></html>
Discussion
267.

Where is specific donation received shown to the final accounts of a Not-for-Profit Organisation ?

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> :N/a</body></html>
Discussion
268.

Where will you record interest on drawing :

Answer» <html><body><p>Debit <a href="https://interviewquestions.tuteehub.com/tag/side-1206832" style="font-weight:bold;" target="_blank" title="Click to know more about SIDE">SIDE</a> of Profit &amp; Loss <a href="https://interviewquestions.tuteehub.com/tag/appropriation-882828" style="font-weight:bold;" target="_blank" title="Click to know more about APPROPRIATION">APPROPRIATION</a> Account <br/><a href="https://interviewquestions.tuteehub.com/tag/credit-938523" style="font-weight:bold;" target="_blank" title="Click to know more about CREDIT">CREDIT</a> Side of Profit &amp; Loss Appropriation Account <br/>Credit Side of Profit &amp; LossAccount <br/>Debit Side of Profit &amp; Loss Account</p>Answer :A::B::C::D</body></html>
Discussion
269.

Where will you show purchase of Goodwill in a Cash Flow Statement ?

Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/cash-910172" style="font-weight:bold;" target="_blank" title="Click to know more about CASH">CASH</a> <a href="https://interviewquestions.tuteehub.com/tag/flow-993213" style="font-weight:bold;" target="_blank" title="Click to know more about FLOW">FLOW</a> from Operating Activities <br/>Cash Flow from Investing Activities <br/>Cash flow from <a href="https://interviewquestions.tuteehub.com/tag/financing-989014" style="font-weight:bold;" target="_blank" title="Click to know more about FINANCING">FINANCING</a> Actvities <br/>Cash Equivalent </p><a href="https://interviewquestions.tuteehub.com/tag/answer-15557" style="font-weight:bold;" target="_blank" title="Click to know more about ANSWER">ANSWER</a> :<a href="https://interviewquestions.tuteehub.com/tag/b-387190" style="font-weight:bold;" target="_blank" title="Click to know more about B">B</a></body></html>
Discussion
270.

Where is general donation received shown is the final accounts of a Not-for-Profit Organisation ?

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> :N/a</body></html>
Discussion
271.

Where is 'Calls-in-Advance' shown in the Balance Sheet?

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 will be <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 Other <a href="https://interviewquestions.tuteehub.com/tag/current-940804" style="font-weight:bold;" target="_blank" title="Click to know more about CURRENT">CURRENT</a> <a href="https://interviewquestions.tuteehub.com/tag/liability-541457" style="font-weight:bold;" target="_blank" title="Click to know more about LIABILITY">LIABILITY</a>.</body></html>
Discussion
272.

Where is 'Debenture Redemption Reserve' transferred after the redemption of all debentures?

Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/capital-908677" style="font-weight:bold;" target="_blank" title="Click to know more about CAPITAL">CAPITAL</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> Account <br/>General Reserve Account <br/><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 Profit and Loss <br/><a href="https://interviewquestions.tuteehub.com/tag/sinking-1210444" style="font-weight:bold;" target="_blank" title="Click to know more about SINKING">SINKING</a> Funds Account</p>Answer :B</body></html>
Discussion
273.

When there is change in the profit sharing ratio amongst existing partners, does it require adjustment for goodwill?

Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/yes-749457" style="font-weight:bold;" target="_blank" title="Click to know more about YES">YES</a>. Because the gaining partner will be acquiring 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> of future profits which otherwise would belong to the <a href="https://interviewquestions.tuteehub.com/tag/sacrificing-7711813" style="font-weight:bold;" target="_blank" title="Click to know more about SACRIFICING">SACRIFICING</a> partner. Hence, the gaining partner must compensatethe sacrificing partner by paying the <a href="https://interviewquestions.tuteehub.com/tag/proportionate-1170321" style="font-weight:bold;" target="_blank" title="Click to know more about PROPORTIONATE">PROPORTIONATE</a> amount of goodwill.</body></html>
Discussion
274.

(When Trade Investments are Given) . Calculate capital employed by the above two approaches with the help of following Balance Sheet:

Answer» <html><body><p></p>Solution :Capital <a href="https://interviewquestions.tuteehub.com/tag/employed-2611124" style="font-weight:bold;" target="_blank" title="Click to know more about EMPLOYED">EMPLOYED</a> <br/> `{:("(i)Capital Employed by Liabilities <a href="https://interviewquestions.tuteehub.com/tag/side-1206832" style="font-weight:bold;" target="_blank" title="Click to know more about SIDE">SIDE</a> Approach:",,),("Partners' Capitals:" ,"Rs.","Rs."),("Aman","1,00,000",),("Bhaskar",ul("1,00,000"),"2,00,000"),("Add: Reserves",,ul(" 90,000")),(,,"2,90,000"),("Less: <a href="https://interviewquestions.tuteehub.com/tag/fictitious-987269" style="font-weight:bold;" target="_blank" title="Click to know more about FICTITIOUS">FICTITIOUS</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> (Advertisement Suspense)","10,000",),("Goodwill",ul("30,000"),ul(" 40,000")),("Capital Employed",,ulul("2,50,000")):}` <br/> `{:("(ii)Asset Side Approach:","Rs.","Rs."),("All Assets (Total of Assets Side)" ,,"3,90,000"),("Less: Ficitious Assets (Advertisement Suspense)","10,000",),("Goodwill","30,000",),("Sundry Creditors","90,000",),("Outstanding Expenses",ul("10,000"),ul("1,40,000")),("Capital Employed",,ulul("2,50,000")):}` <br/> Whilw calculating Capital Employed, Trade Investments are <a href="https://interviewquestions.tuteehub.com/tag/taken-659096" style="font-weight:bold;" target="_blank" title="Click to know more about TAKEN">TAKEN</a> as part of capital employed whereas Non-trade Investments are not.</body></html>
Discussion
275.

When the Receipts and Payments Account is converted into an Income and Expenditure Account, an accouting concept is to be followed for the provisions of the Accruals and Outstanding. Name the concept that is followed.

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/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 <a href="https://interviewquestions.tuteehub.com/tag/accounting-637" style="font-weight:bold;" target="_blank" title="Click to know more about ACCOUNTING">ACCOUNTING</a>' is to be <a href="https://interviewquestions.tuteehub.com/tag/followed-2079285" style="font-weight:bold;" target="_blank" title="Click to know more about FOLLOWED">FOLLOWED</a>.</body></html>
Discussion
276.

When there is change in profit sharing ratio amongst existing partners, should the assets and liabilities be revalued?

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> :Yes. Because the profit or loss on revaluation should by <a href="https://interviewquestions.tuteehub.com/tag/credited-7316860" style="font-weight:bold;" target="_blank" title="Click to know more about CREDITED">CREDITED</a> or debited to the <a href="https://interviewquestions.tuteehub.com/tag/accounts-14064" style="font-weight:bold;" target="_blank" title="Click to know more about ACCOUNTS">ACCOUNTS</a> of 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>
Discussion
277.

When the incoming partner brings in his share of premium for goodwill in cash, it is adjusted by crediting to

Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/incoming-7266786" style="font-weight:bold;" target="_blank" title="Click to know more about INCOMING">INCOMING</a> Partner's Capital Account.<br/>Premium for <a href="https://interviewquestions.tuteehub.com/tag/goodwill-475103" style="font-weight:bold;" target="_blank" title="Click to know more about GOODWILL">GOODWILL</a> Account.<br/>Sacrificing Partners' Capital <a href="https://interviewquestions.tuteehub.com/tag/accounts-14064" style="font-weight:bold;" target="_blank" title="Click to know more about ACCOUNTS">ACCOUNTS</a>.<br/>None of the above.</p>Solution :Sacrificing Partners' Capital Accounts.</body></html>
Discussion
278.

When the partners' capitals are fixed, where will the drawings made by a partner be recorded?

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> :When the partners' capitals are fixed, <a href="https://interviewquestions.tuteehub.com/tag/drawings-959513" style="font-weight:bold;" target="_blank" title="Click to know more about DRAWINGS">DRAWINGS</a> <a href="https://interviewquestions.tuteehub.com/tag/made-3718337" style="font-weight:bold;" target="_blank" title="Click to know more about MADE">MADE</a> by a partner will be debited to the Partner's <a href="https://interviewquestions.tuteehub.com/tag/current-940804" style="font-weight:bold;" target="_blank" title="Click to know more about CURRENT">CURRENT</a> Account.</body></html>
Discussion
279.

When the firm has agreed to pay the partner a fixed amount for realisation work irrespective of the actualamount spent, such fixed amount is debited to (Realisation/Capital) Account andCredited to (Capital/Bank) Account.

Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/answer-15557" style="font-weight:bold;" target="_blank" title="Click to know more about ANSWER">ANSWER</a> :A::<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>
Discussion
280.

When Revaluation Account is opened and the balance sheet is preparedafter the new partnership agreement the assets and liabilites are recorded at

Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/historical-487197" style="font-weight:bold;" target="_blank" title="Click to know more about HISTORICAL">HISTORICAL</a> cost.<br/>Current cost.<br/>Realisable value<br/><a href="https://interviewquestions.tuteehub.com/tag/revaluation-1188020" style="font-weight:bold;" target="_blank" title="Click to know more about REVALUATION">REVALUATION</a> <a href="https://interviewquestions.tuteehub.com/tag/amounts-374805" style="font-weight:bold;" target="_blank" title="Click to know more about AMOUNTS">AMOUNTS</a>.</p>Solution :Revaluation amounts.</body></html>
Discussion
281.

When shares are forfeited, share Capital Account is debited with

Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/nominal-571419" style="font-weight:bold;" target="_blank" title="Click to know more about NOMINAL">NOMINAL</a> <a href="https://interviewquestions.tuteehub.com/tag/value-1442530" style="font-weight:bold;" target="_blank" title="Click to know more about VALUE">VALUE</a> of <a href="https://interviewquestions.tuteehub.com/tag/shares-1204908" style="font-weight:bold;" target="_blank" title="Click to know more about SHARES">SHARES</a><br/>called-up value of shares<br/>paid-up value of shares<br/>market value of shares</p>Solution :called-up value of shares</body></html>
Discussion
282.

When shares are forfeited , share Capital Account is debited with

Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/nominal-571419" style="font-weight:bold;" target="_blank" title="Click to know more about NOMINAL">NOMINAL</a> <a href="https://interviewquestions.tuteehub.com/tag/value-1442530" style="font-weight:bold;" target="_blank" title="Click to know more about VALUE">VALUE</a> of <a href="https://interviewquestions.tuteehub.com/tag/shares-1204908" style="font-weight:bold;" target="_blank" title="Click to know more about SHARES">SHARES</a>.<br/><a href="https://interviewquestions.tuteehub.com/tag/called-907796" style="font-weight:bold;" target="_blank" title="Click to know more about CALLED">CALLED</a>- up value of shares.<br/>paid - up value of shares.<br/>market value of shares.</p>Solution :called- up value of shares.</body></html>
Discussion
283.

When Revaluation Account is opened and the balance sheet is prepared after the new partnership agreement, the assets and liabilitiles are recorded at

Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/historical-487197" style="font-weight:bold;" target="_blank" title="Click to know more about HISTORICAL">HISTORICAL</a> cost<br/>Current cost<br/>Realisable value<br/><a href="https://interviewquestions.tuteehub.com/tag/revalued-7710507" style="font-weight:bold;" target="_blank" title="Click to know more about REVALUED">REVALUED</a> <a href="https://interviewquestions.tuteehub.com/tag/amounts-374805" style="font-weight:bold;" target="_blank" title="Click to know more about AMOUNTS">AMOUNTS</a></p>Solution :Revalued amounts</body></html>
Discussion
284.

When realisation expenses are paid by the firm on behalf of a partner, such expenses are debited to:

Answer» <html><body><p>Realisation <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/>Partner’s <a href="https://interviewquestions.tuteehub.com/tag/capital-908677" style="font-weight:bold;" target="_blank" title="Click to know more about CAPITAL">CAPITAL</a> Account<br/>Partner’s <a href="https://interviewquestions.tuteehub.com/tag/loan-1076737" style="font-weight:bold;" target="_blank" title="Click to know more about LOAN">LOAN</a> Account <br/>None of the above. </p>Answer :D</body></html>
Discussion
285.

(When Non-trade Investments are Given). Calculate capital employed by Liabilities Side Approachand Assets Side Approach from the following Balance Sheet:

Answer» <html><body><p></p>Solution :Capital Employed <br/> `{:("(i)Liabilities Side Approach:",,),("<a href="https://interviewquestions.tuteehub.com/tag/partners-1148238" style="font-weight:bold;" target="_blank" title="Click to know more about PARTNERS">PARTNERS</a>' Capitals" ,"Rs.","Rs."),("Amrit","2,00,000",),("Sudhir",<a href="https://interviewquestions.tuteehub.com/tag/ul-1435627" style="font-weight:bold;" target="_blank" title="Click to know more about UL">UL</a>("2,00,000"),"4,00,000"),("Add: Reserves",,ul("1,80,000")),(,,"5,80,000"),("Less: Investments (Non-trade)*","1,00,000",),("<a href="https://interviewquestions.tuteehub.com/tag/fictitious-987269" style="font-weight:bold;" target="_blank" title="Click to know more about FICTITIOUS">FICTITIOUS</a> Assets-Deferred Revenue Expenditure"," 20,000",),("(Advertisement Suspense)",,),("Goodwill",ul("60,000"),ul("1,80,000")),("Capital Employed",,ulul("4,00,000")):}` <br/> `{:("(<a href="https://interviewquestions.tuteehub.com/tag/ii-1036832" style="font-weight:bold;" target="_blank" title="Click to know more about II">II</a>)Asset Side Approach:","Rs.","Rs."),("Total Assets" ,,"7,80,000"),("Less: Ficitious Assets-Deferred Revenue Expenditure ",,),("(Advertisement Suspense) "," 20,000",),("Goodwill"," 60,000",),("Investments (Non-trade)*","1,00,000",),("Sundry <a href="https://interviewquestions.tuteehub.com/tag/creditors-938665" style="font-weight:bold;" target="_blank" title="Click to know more about CREDITORS">CREDITORS</a>","1,80,000",),("Outstanding Expenses",ul(" 20,000"),ul("3,80,000")),("Capital Employed",,ulul("4,00,000")):}`</body></html>
Discussion
286.

When is interest received considered as financing activity?

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/interest-13407" style="font-weight:bold;" target="_blank" title="Click to know more about INTEREST">INTEREST</a> received on Calls-in-Arrears by a <a href="https://interviewquestions.tuteehub.com/tag/company-924982" style="font-weight:bold;" target="_blank" title="Click to know more about COMPANY">COMPANY</a> is considered as financing <a href="https://interviewquestions.tuteehub.com/tag/activity-25667" style="font-weight:bold;" target="_blank" title="Click to know more about ACTIVITY">ACTIVITY</a>.</body></html>
Discussion
287.

When is an asset shown as 'Current Asset' and when as 'Non-current Asset'?

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> :An asset is shown as 'current asset' when it <a href="https://interviewquestions.tuteehub.com/tag/satisfies-1195235" style="font-weight:bold;" target="_blank" title="Click to know more about SATISFIES">SATISFIES</a> any of the following four criterias:<br/>•It is expected to be realised or is intended for sale or consumption in the <a href="https://interviewquestions.tuteehub.com/tag/company-924982" style="font-weight:bold;" target="_blank" title="Click to know more about COMPANY">COMPANY</a>'s normal operating cycle.<br/>•It is held primarily for the <a href="https://interviewquestions.tuteehub.com/tag/purpose-1173268" style="font-weight:bold;" target="_blank" title="Click to know more about PURPOSE">PURPOSE</a> of being traded.<br/>•It is expected to be realised within 12 months from the <a href="https://interviewquestions.tuteehub.com/tag/reporting-1185335" style="font-weight:bold;" target="_blank" title="Click to know more about REPORTING">REPORTING</a> date.<br/>•It is Cash and Cash Equivalents unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.<br/>All other assets are shown as 'Non-current Assets'.</body></html>
Discussion
288.

When is a receivable classified as 'Trade Receivables?

Answer» <html><body><p></p>Solution :An amount receivable for sale of <a href="https://interviewquestions.tuteehub.com/tag/goods-1009877" style="font-weight:bold;" target="_blank" title="Click to know more about GOODS">GOODS</a> and/or services rendered in the normal course of business is classified or <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 <a href="https://interviewquestions.tuteehub.com/tag/trade-711631" style="font-weight:bold;" target="_blank" title="Click to know more about TRADE">TRADE</a> <a href="https://interviewquestions.tuteehub.com/tag/receivables-1179278" style="font-weight:bold;" target="_blank" title="Click to know more about RECEIVABLES">RECEIVABLES</a>.</body></html>
Discussion
289.

When is a payable classified as 'Trade Payable'?

Answer» <html><body><p></p>Solution :Trade amount payable against <a href="https://interviewquestions.tuteehub.com/tag/purchase-1172709" style="font-weight:bold;" target="_blank" title="Click to know more about PURCHASE">PURCHASE</a> of goods and/or services <a href="https://interviewquestions.tuteehub.com/tag/taken-659096" style="font-weight:bold;" target="_blank" title="Click to know more about TAKEN">TAKEN</a> in the <a href="https://interviewquestions.tuteehub.com/tag/normal-1123860" style="font-weight:bold;" target="_blank" title="Click to know more about NORMAL">NORMAL</a> course of <a href="https://interviewquestions.tuteehub.com/tag/business-21797" style="font-weight:bold;" target="_blank" title="Click to know more about BUSINESS">BUSINESS</a> is classified as Trade Payable.</body></html>
Discussion
290.

When is a liability shown as 'Current Liability' and when as 'Non-current Liability'?

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 liability is shown as 'current liability' when it <a href="https://interviewquestions.tuteehub.com/tag/satisfies-1195235" style="font-weight:bold;" target="_blank" title="Click to know more about SATISFIES">SATISFIES</a> any of the following four criterias:<br/>• It is expected to be settled in the company's normal operating cycle.<br/>• It is <a href="https://interviewquestions.tuteehub.com/tag/held-7620091" style="font-weight:bold;" target="_blank" title="Click to know more about HELD">HELD</a> primarily for the purpose of being traded.<br/>• It is due to be settled within <a href="https://interviewquestions.tuteehub.com/tag/12-269062" style="font-weight:bold;" target="_blank" title="Click to know more about 12">12</a> months from the reporting date. <br/>• The company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.<br/>All other <a href="https://interviewquestions.tuteehub.com/tag/liabilities-1072887" style="font-weight:bold;" target="_blank" title="Click to know more about LIABILITIES">LIABILITIES</a> are shown as 'Non-current Liabilities'.</body></html>
Discussion
291.

When guarantee is given to a partner by the other partners, deficiency on such guarantee will be borne by

Answer» <html><body><p>All of the other <a href="https://interviewquestions.tuteehub.com/tag/partners-1148238" style="font-weight:bold;" target="_blank" title="Click to know more about PARTNERS">PARTNERS</a>.<br/>Partnership firm.<br/>Partners who <a href="https://interviewquestions.tuteehub.com/tag/gave-2092809" style="font-weight:bold;" target="_blank" title="Click to know more about GAVE">GAVE</a> the <a href="https://interviewquestions.tuteehub.com/tag/guarantee-477663" style="font-weight:bold;" target="_blank" title="Click to know more about GUARANTEE">GUARANTEE</a>. <br/><a href="https://interviewquestions.tuteehub.com/tag/none-580659" style="font-weight:bold;" target="_blank" title="Click to know more about NONE">NONE</a> of these.</p>Solution :Partners who gave the guarantee.</body></html>
Discussion
292.

When Goodwill is not -purchased, Goodwill can

Answer» <html><body><p>not be <a href="https://interviewquestions.tuteehub.com/tag/accounted-7264122" style="font-weight:bold;" target="_blank" title="Click to know more about ACCOUNTED">ACCOUNTED</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><br/>be accounted in the books<br/>be <a href="https://interviewquestions.tuteehub.com/tag/partially-7321885" style="font-weight:bold;" target="_blank" title="Click to know more about PARTIALLY">PARTIALLY</a> accounted in the books<br/>be accounted as <a href="https://interviewquestions.tuteehub.com/tag/per-590802" style="font-weight:bold;" target="_blank" title="Click to know more about PER">PER</a> the <a href="https://interviewquestions.tuteehub.com/tag/agreement-851812" style="font-weight:bold;" target="_blank" title="Click to know more about AGREEMENT">AGREEMENT</a> of the partners</p>Solution :not be accounted in the books</body></html>
Discussion
293.

When Goodwill is not purchased, Goodwill can

Answer» <html><body><p>not be <a href="https://interviewquestions.tuteehub.com/tag/accounted-7264122" style="font-weight:bold;" target="_blank" title="Click to know more about ACCOUNTED">ACCOUNTED</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>.<br/>be accounted in the books.<br/>be <a href="https://interviewquestions.tuteehub.com/tag/partially-7321885" style="font-weight:bold;" target="_blank" title="Click to know more about PARTIALLY">PARTIALLY</a> accounted in the books.<br/>beaccounted as <a href="https://interviewquestions.tuteehub.com/tag/per-590802" style="font-weight:bold;" target="_blank" title="Click to know more about PER">PER</a> the <a href="https://interviewquestions.tuteehub.com/tag/agreement-851812" style="font-weight:bold;" target="_blank" title="Click to know more about AGREEMENT">AGREEMENT</a> of the partners.</p>Solution :not be accounted in the books.</body></html>
Discussion
294.

When Goodwill is not purchased goodwill account can :

Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/never-570518" style="font-weight:bold;" target="_blank" title="Click to know more about NEVER">NEVER</a> be raised in the books <br/>Be raised in the books <br/>Be partially raised in the books <br/>Be raised as per the agreement of 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> </p><a href="https://interviewquestions.tuteehub.com/tag/answer-15557" style="font-weight:bold;" target="_blank" title="Click to know more about ANSWER">ANSWER</a> :A</body></html>
Discussion
295.

When does the Flow of Cash take place?

Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/flow-993213" style="font-weight:bold;" target="_blank" title="Click to know more about FLOW">FLOW</a> of <a href="https://interviewquestions.tuteehub.com/tag/cash-910172" style="font-weight:bold;" target="_blank" title="Click to know more about CASH">CASH</a> takes place when the net effect of transaction is increased or <a href="https://interviewquestions.tuteehub.com/tag/decreased-7266469" style="font-weight:bold;" target="_blank" title="Click to know more about DECREASED">DECREASED</a> in the amount of Cash and Cash <a href="https://interviewquestions.tuteehub.com/tag/equivalents-974752" style="font-weight:bold;" target="_blank" title="Click to know more about EQUIVALENTS">EQUIVALENTS</a>.</body></html>
Discussion
296.

When debentures of .Rs 1,00, 000 are issued as Collateral Security against a loan of .Rs 1,50,00 , the entryfor issue of debentures will be:

Answer» <html><body><p>Credit Cebentures .<a href="https://interviewquestions.tuteehub.com/tag/rs-625947" style="font-weight:bold;" target="_blank" title="Click to know more about RS">RS</a> 1,50,000 and debit bank A/<a href="https://interviewquestions.tuteehub.com/tag/c-7168" style="font-weight:bold;" target="_blank" title="Click to know more about C">C</a>.Rs 1,50,000<br/>Debit Debenture <a href="https://interviewquestions.tuteehub.com/tag/suspense-1236136" style="font-weight:bold;" target="_blank" title="Click to know more about SUSPENSE">SUSPENSE</a> A/c .Rs 1,00,000 and Credit Bank A/c .Rs1,00,000<br/>Debit debenture Suspense A/c .Rs 1,00,000 and CreditDebentures A/c .Rs 1,00,000<br/>Debit Cash A/c .Rs 1,50,000 and Credit Bank A/c .Rs 1,50,000</p>Answer :C</body></html>
Discussion
297.

When debentures are to be redeemed at premium an extra entry has to be made at thetime of issue of debentures, which a/c should be credited in this entry ?

Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/loss-1079380" style="font-weight:bold;" target="_blank" title="Click to know more about LOSS">LOSS</a> on issue of <a href="https://interviewquestions.tuteehub.com/tag/debentures-945417" style="font-weight:bold;" target="_blank" title="Click to know more about DEBENTURES">DEBENTURES</a> a/c<br/>Debentures redemption premium a/c<br/>Bank a/c<br/>Debenture holder's a/c</p>Answer :<a href="https://interviewquestions.tuteehub.com/tag/b-387190" style="font-weight:bold;" target="_blank" title="Click to know more about B">B</a></body></html>
Discussion
298.

When debentures are issued at a discount , the discount is written off

Answer» <html><body><p>after <a href="https://interviewquestions.tuteehub.com/tag/debentures-945417" style="font-weight:bold;" target="_blank" title="Click to know more about DEBENTURES">DEBENTURES</a> have been redeemed.<br/>in the <a href="https://interviewquestions.tuteehub.com/tag/year-1464599" style="font-weight:bold;" target="_blank" title="Click to know more about YEAR">YEAR</a> when debentures are <a href="https://interviewquestions.tuteehub.com/tag/issued-2752319" style="font-weight:bold;" target="_blank" title="Click to know more about ISSUED">ISSUED</a>.<br/>during the <a href="https://interviewquestions.tuteehub.com/tag/life-541672" style="font-weight:bold;" target="_blank" title="Click to know more about LIFE">LIFE</a> of the debentures.<br/>None of these.</p>Solution :in the year when debentures are issued.</body></html>
Discussion
299.

When debentures are issued at a discount, the discount is written off

Answer» <html><body><p>after <a href="https://interviewquestions.tuteehub.com/tag/debentures-945417" style="font-weight:bold;" target="_blank" title="Click to know more about DEBENTURES">DEBENTURES</a> have been redeemed<br/>in the <a href="https://interviewquestions.tuteehub.com/tag/year-1464599" style="font-weight:bold;" target="_blank" title="Click to know more about YEAR">YEAR</a> when debentures are <a href="https://interviewquestions.tuteehub.com/tag/issued-2752319" style="font-weight:bold;" target="_blank" title="Click to know more about ISSUED">ISSUED</a><br/>during the <a href="https://interviewquestions.tuteehub.com/tag/life-541672" style="font-weight:bold;" target="_blank" title="Click to know more about LIFE">LIFE</a> of the debentures<br/>None of these</p>Solution :in the year when debentures are issued</body></html>
Discussion
300.

When creditor accepts an asset whose value is more than the amount due to him, hewill —— (pay/not pay) the excess amount which will be credited —— Account.

Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/answer-15557" style="font-weight:bold;" target="_blank" title="Click to know more about ANSWER">ANSWER</a> :A</body></html>
Discussion