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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.
| 901. |
Ramesh's Trail Balance as on 31st March, 2019 gives the Following information: Show how the above items would appear in the Profit and Loss Account and Balance Sheet. |
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| 902. |
Ramanuj keeps his books under Single Entry System. His assets and liabilities were as under: During 2018-19, he introduced Rs. 10,000 as additional capital. He withdrew Rs. 3,000 every month for his household expenses. Ascertain his Profit for the year ended 31st March, 2019. |
Answer» SOLUTION :
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| 903. |
Ram started business on 1st April, 2018witha capital of ₹2,50,000 and a loanof₹12,500. On 31st March , 2019 his assestwrer ₹50,000 . Findhis capitalas on 31 st March, 2019 and theprofit earned during the year. |
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| 904. |
Ram started business on 1st April, 2018witha capital of ₹2,50,000 and a loanof₹12,500. On 31st March , 2019 his assestwrer ₹50,000 . Findhis capitalas on 31 st March, 2019 and theprofit earned during the year. |
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| 905. |
Ram Prashad keeps his books on Single Entru System and from them and the particulars supplied, the following figures were gathered together on 31st March, 2019: Book Debts Rs. 10,000, Cash in Hand Rs. 510, Stock- in - Trade (estimated) Rs. 6,000, Furniture and Fittings Rs. 1,200, Trade Creditors Rs. 4,000, Bank Overdraft Rs. 1,000. Ram Prashad stated that he started business on 1st April, 2018 with cash Rs. 6,000 paid into bank but stocks valued at Rs. 4,000. During the year he estimated his drawings to be Rs. 2,400.You are required to prepare the statement, showing the profit for the year, after writing off 10% for Depreciation on Furniture and Fittings . |
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| 906. |
Ram Prakash keeps his books on Single Entry System. From the following information provided by him, prepare Trading and Profit and Loss Account for the year ended 31st March, 2019 and Balance Sheet as at that date: Other Information: There were considerable amount of Cash Sales. Credit Purchases during the year amounted Rs. 2,30,000. Provide a provision for Doubtful Debts to the extent of 10% on Debtors. |
Answer» SOLUTION :   
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| 907. |
Ram has purchased goods from Param for cash, the entry will be recorded in the |
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Answer» CASH Book |
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| 908. |
Ram & Co. purchased a machinery for Rs 21,000 on 1st April, 2019. The estimated life of the machinery is 10 years, after which its residual value will be Rs 1,000 only. Find the amount of Annual Depreciation according to the Fixed Instalment Method. Ignore GST. |
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| 909. |
Rakesh has started his business of retail trade at a moderate level on october 1,2018 .He desires that he should prepare first profit and loss account and balance sheet on March 31,2019 and thereafter everyyear on March 31. you have to appraise his decision and ascertion whether his decision is justified. |
| Answer» Solution :RAKESH has made c a correct decision.By doing so he has FOLLOWED the fundamental accounting concept of GOING concern andalso periodicity principle | |
| 910. |
Rajesh does not maintain proper booksof account. From the following particulars, prepare the Trading and Profit and Loss Account for the year ended 31st March, 2019 and the Balance Sheet as on that date: He had Rs. 25,000 as Cash Balancein the beginning of the year. |
Answer» SOLUTION : 
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| 911. |
Rajeev & Co. Bank Reconciliation Statement Situation Ravi Kumar works as a cashier for Rajeev & Co. His responsibilities include recording and maintainingthe firm's cash book and preparing a bankreconciliation statements at the end of the month. The firm's cash book for July 2018 which Ravi has just completed recording and balacing for the mohnth end is shown below ( Note: For the sake of clarity the cash columnhas been omitted.) A copy of the firm's bank statement from the HDFC Bank Ltd.for the month ofJuly has just been received and is also illustrated. The numericaldifference between the two is : Bank statement balance ₹20,030 minus cash book balance₹17,420=₹2,610 This is the difference which Ravi will have to 'reconcile'. To Reconcile the Cash Book with the Bank Pass Book following four steps are taken in practical. |
Answer» SOLUTION :Step 1. Tick the ITEMS in both Cash Bookand Bank Statement.  Step 2: The unticked i.e., deposit of ₹ 1,790 and bank charges of ₹ 120 will be accounted in the Cash Book :  The balance of bank column now stand at ₹ 19,090, which differs from bank STATEMENTS balance of ₹ 20,030. This remaining difference is dealt with in the Bank Reconciliation Statements. Step:3 Identify the remaining unticked items from the cash book. These are : `{:("Receipts July31 Piyush Bros. ₹630",|," Payment","July 2"," Bittoo & Co. (CHEQUE no. 004451)","₹ 1,300"),(,|,,"July 8","Maninder Ltd. (cheque no. 004453)","₹ 270"):}` These items should appear on NEXT month's bank statement as they are because of timing differences. These are the item which willappear in the Bank Reconciliation Statement . Step. : Preparation of the Bank Reconciliation Statement 
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| 912. |
Rajan who trades in electronic goods, gifited a television to his daughter. Will it be recorded in the books of account? |
| Answer» SOLUTION :YES, it will be recorded in the books of account, as drawings by RAJAN. | |
| 913. |
Raja Ltd. Purchased securities for ₹50 lakh. At the end of the year, the market value of such securities was ₹40 lakh. While preparing the financial statement, the company valued the securities at cost i.e. at ₹50 lakh. Is it a correct treatment? |
| Answer» Solution :No. it is not a correct treatment. The COMPANY has VIOLATED the convention fo PRUDENCE according to which current assets are valued at cost PRICE or realisable value whichever is less. | |
| 914. |
Rahul’s trial balance provide you the following information : It is desired to maintain a provision for bad debts of Rs. 1,000 State the amount to be debited/credited in profit and loss account : |
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Answer» RS. 5,00 (DEBIT) |
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| 915. |
Rahul sold 100 Cricket Bats to V. Sports @ Rs. 5,000 each less 25% Trade Discount plus IGST @ 12% and 2% Cash Discount if V. Sports paid the amount in 14 days of sale. V. Sports paid the amount within 14 days. What will be the amount that Rahul should creditto Sales Account? |
| Answer» SOLUTION :RAHUL will credit Rs. 3,75,000 to Sales Account, i.e., the amount of Gross Sales LESS Trade DISCOUNT. Cash Discount allowed is an expense and is debited to Discount Allowed Account. | |
| 916. |
Rahul , the proprietor of M/s . R. K .& Co. purchased an air - conditioner and installed it at his residence. The payment was made by issuing a cheque from the accountof M/s R. K. & Co. The Accountant debited the Drawings Account with the amount whereas Rahul is of the view that should be debited to the FixedAssets . In your view , who is correct and why ? |
| Answer» Solution :The ACCOUNTANT is correct because ACCORDING to the Business ENTITY Concept business is separate and distinct from the owners . Since , the air - conditioner has been installed at the RESIDENCE of the proprietor , i.e., for his personal use , it is drawings by the owner. | |
| 917. |
Rahul 's Trial Balance as on 31st March, 2019 has the following information : Additional Information (i) Salary for the monthof marhc, 2019 is yet to be paid. (ii) Eleectricity Bill for March, 2019 amounted to Rs 5,200 was received on 2nd April, 2019. Determine the amount of Salary and Electircity expenses to be provided and show how the two amounts will be shown i the Final Accounts ? |
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| 918. |
Rahul of Chennai sold goods to Reva of Channai of Rs 10,000. Whatever he will charge CGST and SGST or IGST ? Why? |
| Answer» Solution :The SALE is INTRA- state sale, therefore, both CGST and SGST will be charged. | |
| 919. |
Raghunath had the followingtaransacitonsin anaccounting year : (i)Commenced business with cash ₹ 50,000. (ii) Paidinto bank ₹10,000. (iii) Purcahsedgoods for cash ₹20,000 and credit ₹30,000. (iv) Soldgoods forcash ₹40,000 costing₹30,000. (v)Rentpaid ₹500. (vi) Rentoutstanding ₹100. (vii)Bought furniture ₹5,000 on credit. (viii) Bought refrigerator for personal use ₹5,000. (ix) Purchased motorcycle forcash ₹20,000. Create an AccountingEquation to show theeffectof the aboveand also shown his Balcnce Sheet. |
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| 920. |
Raghunath had the followingtaransacitonsin anaccounting year : (i)Commenced business with cash ₹ 50,000. (ii) Paidinto bank ₹10,000. (iii) Purcahsedgoods for cash ₹20,000 and credit ₹30,000. (iv) Soldgoods forcash ₹40,000 costing₹30,000. (v)Rentpaid ₹500. (vi) Rentoutstanding ₹100. (vii)Bought furniture ₹5,000 on credit. (viii) Bought refrigerator for personal use ₹5,000. (ix) Purchased motorcycle forcash ₹20,000. Create an AccountingEquation to show theeffectof the aboveand also shown his Balcnce Sheet. |
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| 921. |
R Ltd. Purchased 500 Sq. Metre Land for ₹1.5 crore to build a factory. At the end of year, the market value of land was ₹1.35 crore. R Ltd. Treated ₹ 15 Lakh as loss and recorded the land at ₹1.35 crore. Is it a correct treatment? |
| Answer» Solution :No. It is not a CORRECT TREATMENT. Accordingto COST Concept, a FIXED asset is recorded in the books at a price it was acquired. | |
| 922. |
Quality of manpower is not shown in the Financial Statements because of Revenue Principle. |
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| 923. |
Qualitative characteristicof Accounting includes |
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Answer» RELIABILITY and Relevance. |
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| 924. |
Put the following on the proper side of a Cash Account , a Debtor's Account and a Creditor's Account : {:(,,,"₹") , ((i), "Sold goods to Sanjay on credit" ,, 50","000) , ((ii) , "Sold goods to Mohan for cash" ,, 20","000 ) , ((iii) , "Purchased goods from Ram on credit " ,, 25","000) , ((iv) , "Cash received from Sanjay" ,, 19","000) , ((v) ,"Goods returned by Sanjay" ,,2","000) , ((vi) , "Paid rent" ,, 500) , ((vii), "Cash paid to Ram" ,, 15","000):} |
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| 925. |
Purchasing car for personal use by proprietor will Increase Assets and Capital. |
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| 926. |
Purchases Book is a record prepared from the invoices received from suppliers. Is it correct ? Give reasons. |
| Answer» Solution :Yes. PURCHASES can be either in cash or on credit. Credit purchases are recorded in THEPURCHASES Book. The SOURCE documents for recording entries in the Purchases Book are invoices or bills received from the suppliers of goods. The entries are made with the net amount of the INVOICE after deductingtrade DISCOUNT. | |
| 927. |
Purchases of machinery for production is |
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Answer» REVENUE EXPENDITURE |
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| 928. |
Purchased office stationary for 18,000. The account to be credited is ........... |
| Answer» SOLUTION :CASH | |
| 930. |
Purchases' are classified as |
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Answer» EXPENSE ACCOUNT |
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| 931. |
Purchased new machine for1,70,000 and issued cheque for the same. The account to be debited is ............ |
| Answer» SOLUTION :MACHINE | |
| 933. |
Purchase refers to the purchase of |
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Answer» GOODS for RESALE |
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| 934. |
Purchase refers to the buying of |
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Answer» STATIONERY for OFFICE use |
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| 935. |
Purchase of office furniture for Rs. 1,200 was debited to the General Expenses Account. It is |
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Answer» a CLERICAL ERROR. |
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| 936. |
Purchase of office furniture of ₹ 1,200 has been debited to the General Expenses Account . It is |
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Answer» a CLERICAL ERROR. |
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| 937. |
Purchase of Machineryby Amit, a delaer in machinery from Yogesh for ₹ 1,00,000 is recorded in |
| Answer» Solution :Purchase Book | |
| 939. |
Purchase of Machinery by Abhay, a dealer in stationery from Yogesh for₹ 1,00,000 is recorded in |
| Answer» Solution :Journal Proper. | |
| 940. |
Purchase of machina by cash means |
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Answer» DECREASE in ASSET and decrease in LIABILITY. |
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| 941. |
Purchase of furniture on credit should be recorded in |
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Answer» Journa |
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| 942. |
Purchase of furniture on credit means |
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Answer» DECREASE in ASSET and INCREASE in LIABILITY. |
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| 944. |
Purchase book is used to record : |
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Answer» PURCHASES of goods |
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| 945. |
Purchase Account in the ledger shows |
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Answer» All purchases of goods |
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| 949. |
Provisions are |
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Answer» EXTERNAL transactions. |
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| 950. |
Provision is |
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Answer» an APPROPRIATION out of PROFIT |
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