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This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your knowledge and support exam preparation. Choose a topic below to get started.
| 801. |
Show the effect of thefollowing transactionson the Accounting Equation:(i) Statredbusiness with cash ₹50,000. (ii) Salariespaid ₹2,000. (iii)Wages outstanding ₹200. (iv) Interest duebut not paid ₹100. (v) Rentpaid in advance ₹150. |
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| 802. |
Show the effect of thefollowing transactionson the Accounting Equation:(i) Statredbusiness with cash ₹50,000. (ii) Salariespaid ₹2,000. (iii)Wages outstanding ₹200. (iv) Interest duebut not paid ₹100. (v) Rentpaid in advance ₹150. |
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| 803. |
Show the effect through Journal entries: |
Answer» SOLUTION : 
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| 804. |
Show the effect of the following transactions on Assets, Liabilities and Capital through accounting equation: (a) Started business with cash 1,20,000 (b) Rent received 10,000 (c) Invested in share50,000 (d) Received dividend 5,000 (e) Purchase goods on credit from Ragani 35,000 (f) Paid cash for house hold Expenses 7,000 (g) Sold goods for cash (costing 10,000)14,000 (h) Cash paid to Ragani 35,000 (i) Deposited intobank20,000 |
| Answer» SOLUTION :ASSETS = Cash37,000 + SHARES 50,000 + GOODS 25,000 + Bank20,000 = 1,32,000, LIABILITIES = Capital1,32,000 | |
| 805. |
Show the effect of following transaction on the accounting equation:(a) Manoj started business with (i) Cash2,30,000 (ii) Goods 1,00,000 (iii) Building2,00,000 (b) He purchased goods for cash 50,000 (c) He sold goods (costing 20,000) 35,000 (d) He purchased goods from Rahul 55,000 (e) He sold goods to Varun (Costing 52,000)60,000 (f) He paid cash to Rahul in full settlement 53,000 (g) Salary paid by him20,000 (h) Rec eived cash from Varun in full settlement 59,000 (i) Rent outstanding 3,000 (j) Prepaid Insurance 2,000 (k) Commission received by him 13, 000 (l) Amount withdrawn by him for personal use 20,000 (m) Depreciation charge on building 10,000 (n) Fresh capital invested50,000 (o) Purchased goods from Rakhi 10,000 |
| Answer» SOLUTION :ASSETS = Cash 2,42,000 + Goods 1,43,000 +Building 1,90,000 Prepaid Insurouce 2,000 = 5,77,000, Liabilities = Outstanding Rent 3,000+ CREDITOR 10,000 +Capital 5,64,000 = 5,77,000 | |
| 806. |
Show the accounting equation on the basis of the following transaction: (a) Udit started business with: (i) Cash5,00,000 (ii) Goods 1,00,000 (b) Purchased building for cash2, 00,000 (c) Purchased goods from Himani 50,000 (d) Sold goods to Ashu (Cost 25,000)36, 000 (e) Paid insurance premium 3,000 (f) Rent outstanding5,000 (g) Depreciation on building 8,000 (h) Cash withdrawn for personal use 20,000 (i) Rent received in advance5,000 (j) Cash paid to himanion account20,000 (k) Cash received from Ashu 30,000 |
| Answer» SOLUTION : Assets = Cash 2,92,000 + GOODS 1,25,000 + Building 1,92,000 + Debtors6,000= 6,15,000: Laibilities = Creditors 30,000 + OUTSTANDING Rent5,000 +Account receiavable 5,000+ CAPITAL 5,75,000 = 6,15,000 | |
| 807. |
Show the effect of the following transactions andalso prepare a Blacance Sheet : (i) Started business with ₹60,000. (ii)Rentrecevied ₹2,000. (iii) Accrued interest ₹500. (iv) Commissionreceived in advance ₹ 1,000. (v)Amountwithdrawn ₹5,000. |
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| 808. |
Show the effect of the following transactions andalso prepare a Blacance Sheet : (i) Started business with ₹60,000. (ii)Rentrecevied ₹2,000. (iii) Accrued interest ₹500. (iv) Commissionreceived in advance ₹ 1,000. (v)Amountwithdrawn ₹5,000. |
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| 809. |
Show the Accounting Equationfor thefollowingtransactions: |
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| 810. |
Show an AccountingEquation for the followingtransactions: D. Mahaptra commeced businesswith cash ₹50,000 and ₹1,00,000 by cheque, goods ₹ 60,000, machinery ₹ 1,00,000 and furniture ₹ 50,000. (ii) 1/3 rd of the above goods sold at a profit of 10% on cost and half of the payment is received in cash. (iii) Depreciation on machinery provided @ 10%. (iv) Cash withdrawan for personal use ₹ 10,000. (v) Interest on drawings charged @ 5%. (vi) Goods sold to Gupta for ₹ 10,000 and received a Bill Receivable for the same amount for 3 months. (vii) Received ₹ 10,000 from Gupta against the Bills Receivable on its maturity. |
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| 811. |
Show an AccountingEquation for the followingtransactions: D. Mahaptra commeced businesswith cash ₹50,000 and ₹1,00,000 by cheque, goods ₹ 60,000, machinery ₹ 1,00,000 and furniture ₹ 50,000. (ii) 1/3 rd of the above goods sold at a profit of 10% on cost and half of the payment is received in cash. (iii) Depreciation on machinery provided @ 10%. (iv) Cash withdrawan for personal use ₹ 10,000. (v) Interest on drawings charged @ 5%. (vi) Goods sold to Gupta for ₹ 10,000 and received a Bill Receivable for the same amount for 3 months. (vii) Received ₹ 10,000 from Gupta against the Bills Receivable on its maturity. |
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| 812. |
Show the Accounting Equationfor thefollowingtransactions: |
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| 813. |
Shivreet has stationery stock amounting to 500 as atthe end of the financial year his accountant has written it off to profit and loss account .But shivreet has asked hin to show it as stock of stationery.Is he right in doing so? |
| Answer» Solution :Accounting is guided by the materiality concept .since the AMOUNT of sttionery stock is not meterial it should be wirtten off to profit and loss ACCOUNT . Materiality stock of STATIONERY being not meterial it is better to write it off. | |
| 814. |
Shanti maintains her boods of account from incomplete records. Her books provide the following information: {:("Particulars","1st April, 2018 (Rs.)","31st March, 2019 (Rs.)"),("Cash","1,200","1,600"),("Bills Receivable","...","2,400"),("Debtors","16,800","27,200"),("Stock","22,400","24,200"),("Investments","...","8,000"),("Furniture","7,500","8,000"),("Creditors","14,000","15,200"):} She withdrew Rs. 300 per month for personal expenses. She sold her investments of Rs. 16,000 at 2% premium and introduced that amount into business. You are required to prepare a Statement of Profit of Loss for the year ending 31st March, 2019. |
Answer» SOLUTION :
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| 817. |
Scap value of an asset means the ________ that will be realised on sale at the end of its__________ |
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| 818. |
Sanjiv's Trial Balance as on 31st March, 2019 shows the following information : Sanjiv took goods costing Rs 20,000 for his personal use but entry was not passed in the books of account. Show the treatment in the Final Accounts. |
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| 819. |
Sanjay started a firm on 1st April, 2018 with a capital of Rs. 10,000. On 1st July, 2018 he borrowed from his wifea sum of Rs. 4,000 @9% p.a. (interest not yet paid) for business and introduces a further capital of his own amounted to Rs. 1,500. On 31st March, 2019 his position was: Cash Rs. 600, Stock Rs. 9,400, Debtors Rs. 7,000 and Creditors Rs. 6,000. Ascertain his Profit of Loss taking into account Rs. 2,000 for his drawings during the year. |
Answer» SOLUTION :
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| 822. |
Sales is equal to |
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Answer» COST of Goods sold - GROSS Profit. |
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| 824. |
Sales Book |
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Answer» is a partof the journal . |
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| 825. |
Sales are equal to |
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Answer» COST of GOODS SOLD + GROSS PROFIT |
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| 826. |
Sales are calculated by adding |
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Answer» CASH SALES and cash RECEIVED from debtors. |
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| 827. |
Sales Account is a |
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Answer» REVENUE ACCOUNT |
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| 828. |
Sale of office furniture is credited to |
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Answer» SALES ACCOUNT. |
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| 829. |
Sale of Machinery by Suresh , a dealer in stationery to Sumit for₹ 1,20,000 is recorded in |
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Answer» Cash BOOK |
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| 830. |
Sale of old furniture to Paresh for cash should be debited to Paresh's Account. |
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| 832. |
Sale of Machinery by Amit, a dealer in machinery for₹1,20,000 is recorded in |
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Answer» Cash BOOK |
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| 833. |
Sale of goods to Ram for cash is debited to |
| Answer» Solution :Cash A/c | |
| 834. |
Sale of goods to Ram for cash is debited |
| Answer» Solution :Cash A/c | |
| 835. |
Sale of goods by Mohan to Sohan for ₹ 1,000 will be recorded in the Sales Book . |
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| 836. |
Sale made within the state is _________ sale. |
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| 837. |
Sale Account in the ledger shows |
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Answer» All SALE of GOODS |
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| 838. |
Sale is recognised as revenue |
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Answer» when the CONTRACT for SALE is entered into |
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| 839. |
Salary Outstanding A/c on the basis of classification of accounts is _______ |
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| 840. |
Salary due for the month of March will appear in….. Side of cash book |
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Answer» RECEIPT |
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| 841. |
Salaries paid would be charged to which account - Trading A/c or Profit and Loss A/c? |
| Answer» SOLUTION :PROFIT and LOSS ACCOUNT | |
| 842. |
Salaries and Wages Account is shown in |
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Answer» Trading ACCOUNT |
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| 843. |
Salaries Account is |
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Answer» an EXPENSE ACCOUNT |
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| 844. |
Rs. 2,000 received from Smith whose account was previously written off as Bad Debt should be credited to |
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Answer» BAS DEBTS RECOVERED ACCOUNT. |
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| 845. |
Roshan, whose accounts are maintained by Single Entry System, acquired a retail business on 1st April, 2018. He has Rs. 40,000 of his own and he borrowed Rs. 20,000 from his wife. He paid Rs. 15,000 for Goodwill, Rs. 5,000 for Furniture and Rs. 35,000 for Stock. Total cash received by him during the financial year from the Debtors was Rs. 2,30,000. His payments were: {:(,"Rs."),("Purchases","1,56,000"),("Salary and Wages"," 21,400"),("Trade Expenses","7,200"),("Rent:",),("For business house","5,920"),("For private house","2,960"),("Payable made for domestic purposes and drawings"," 26,400"):} At the end of the year, the stock was Rs. 37,5000. He owed Rs. 13,500 to Creditors for goods and his customers owed to him Rs. 15,000. Provide 5% for Depreciation of Furniture, Interest at 5% on wife,s Loan and Rs. 1,000 for Doubtful Debts. Prepare the Cash Account, the Profit and Loss Account for the year ended 31st March, 2019 and the Balance Sheet at the close of the year. |
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| 846. |
Rs. 200 received from Smit whose account was prviously written off as Bad Debt should be credited to |
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Answer» Bad DEBTS RECOVERED Account. |
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| 847. |
Roshan purchased form Prem 500 items @ Rs.100each at 20% Trade Discount plus CGST and SGST @ 6% each. He is further given 2% Cash Discount as he made payment for the purchases immediately. Determine the amount that Roshan will debit to Purchases Account. |
| Answer» Solution :Roshan will debit Rs. 40,000 to Purchases Account, i.e., the AMOUNT of Purchases after Trade Discount. He will also debit INPUT CGST Account and Input SGST Account by Rs. 2, 400 each. Cash Discount RECEIVED is an income for Roshan. It will be credited to Discount Received Account. | |
| 848. |
Rs. 2,000 paid as wages for installing a machine should be debited to |
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Answer» WAGES ACCOUNT. |
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| 849. |
Rohit has the following transactions : (a) Commenced business with cash 1,50,000 (b) Purchased machinery on credit 40,000 (c) Purchased goods for cash 20,000 (d) Purchased car for personal use 80,000 (e) Paid to creditors in full settlement 38,000 (f) Sold goods for cash costing5,000 4,500 (g) Paid rent 1,000 (h) Commission received in advance 2,000 Prepare the Accounting Equation to show the effect of the above transactions on the assets, liabilities and capital. |
| Answer» Solution :ASSETS = Cash 17,500 + Machine40,000 + GOODS 15,000 72,500, LIABILITIES = Commission 2,000 + Capital 70,500= 72,500 | |
| 850. |
Robert's Account is a |
| Answer» Solution :Personal Account | |