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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.
| 1101. |
On31st March , 2019, the total assets and externalliabilities were ₹ 1,00,000 and ₹3,000 respectively .Duringthe years,the proprietor handintroducedadditional capital of ₹10,000 and had withdrawn ₹6,000 for pesonaluse. He made a profit of ₹10,000during the year. Calculate thecapital as on1st April, 2018. |
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Answer» Solution :Closingcapital = Closing Assets - Closing Liailities(i.e., y's LOAN) = ₹ 1,00,000 - ₹3,000 = ₹97,000. Opening CAPITAL =Closing Capital +DRAWINGS -Additional Capital -PROFITS = ₹ 97,000 + ₹6,000 - ₹ 10,000 - ₹ 10,000 = ₹ 83,000 |
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| 1102. |
On 31st March, 2019 Bank Account is the books of Ramesh shows a creditbalance of Rs. 36,000. On the same date, outstanding cheques amounted to Rs. 14,000 and outstanding deposits amounted to Rs. 20,000. A chanrge for Rs. 5,000 received from a debtor, was subsequently dishonoured. The receipt had been correctly recordded but not entry has yet been the made in the books for the dishonour. On the basis of the above information, determin e the balance as per the Bank Statemet. |
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| 1103. |
On 31st March, 2019, a firm's debtors were Rs 63,000 and its provision for Doubtful Debts was Rs 3,200. It was decided to write off as irrecoverable debts of Rs 2,600 and provide for Doubtful Debts @ 5% on Debtors. Prepare Provision for Doubtful Debts Account and pass the entries in the Profit and Loss Account, and the entry for debtors in the Balance Sheet as at 31st March, 2019. |
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| 1104. |
On 25th March, 2017, a fire broke out in the premises of Kamal Ltd. And destroyed a part of its plant and machinery. On account of this, a sharp decline in production for the next six months is expected. The company did not disclose this fact in its annual for the year ended 31st March, 2017. What is your opinion about his omission? |
| Answer» SOLUTION :The company has VIOLATED the CONVENTION of full disclosure. Loss of PLANT and Machinery in the BOOKS at a price it was acquired. | |
| 1105. |
On 28th March, 2019, stocks costing Rs 80,000 were destroyed by fire. These goods were purchased paying IGST @12% . The stock was insured and the insurance company admitted claim of Rs 85,000 only. Give necessary Journal entries and show how it will be shown in the Final accounts. |
Answer» SOLUTION :  Note: Insurance Co. has admitted the CLAIM and not paid YET. Therefore , Bank ACCOUNT is not debited. 
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| 1106. |
On 1st July, 2015, A Co. Ltd. Purchases second-hand machinery for Rs 20,000 and spends Rs 3,000 or reconditioning and installing it. On 1st January, 2016, the firm purchases new machinery worth Rs 12,000. On 30th June, 2017, the machinery purchased on 1st January, 2016, was sold for Rs 8,000 and on 1st July, 2017, a fresh plant was installed. Payments for this plant was to be made as follows: {:("1st July, 2017","Rs 5,000"),("30t June, 2018","Rs 6,000"),("30th June, 2019","RS 5,500"):} Payments in 2018 and 2019 include interset of Rs 1,000 and Rs 500 respectively. The Company writes off 10% p.a. on the original cost. The accounts are closed every year on 31st March, Show the Machinery Account for the year ended 31st March, 2018. |
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| 1107. |
On 1st April, 2019, the following were Ledger balances of M/s Ram& Co., Delhi: Cash in Hand ₹300, Cash at Bank ₹7,000 , Bills Payable ₹ 1,000 ,Zahir (Dr.) ₹800, Stock ₹4,000 , Gobind (Cr. ) ₹2,000, Sharma (Dr. ) ₹ 1,500, Rahul (Cr.) ₹ 900 ,Capital ₹ 9,700. Transactions during the month of April ,2019 were: Inter-state transactions are subjected to levy of IGST @12% and Intra-state transaction are subjected to levy of CGST and SGST @ 6% each. GST is not levied on transaction marked with (*). Post the above transactions to the Ledger and prepare the Trial Balance on 30th April, 2019 |
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| 1108. |
On 1st Jan., 2015, Mr. Vaderawas appointed as Marketing Manager of the firmwith a salary of Rs. 50,000 per month. State whether this event will be recorded in the books of accounts. |
| Answer» SOLUTION :No. The APPOINTMENT will not be recorded because it has not resulted in any CHANGE in the FINANCIAL position of the firm. (It will be recorded only when the SALARY is paid.) | |
| 1109. |
On 1st April, 2018, X started a business with Rs. 40,000 as his capital. On 31st March, 2019, his position was as follows: {:(,," Rs."),("Creditors","....................................................","30.000"),("Bills Payable","....................................................","10,000"),("Bank","....................................................","10,000"),("Debtors","....................................................","50,000"),("Stock","....................................................","40,000"),("Plant","....................................................","68,000"),("Furniture","....................................................","12,000"):} During the year 2018-19, X drew Rs. 24,000. On 1st October, 2018, he introduced further capital amounting to Rs. 30,000. You are required to ascertain proffit or loss made by him during the year 2018-19. Adjustments: (a) Plant is to be depreciated to 10%. (b) A provision of 5% is to be made against debtors. Also prepare the Statement of Affairs as on 31st March, 2019. |
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| 1110. |
On 1st April, 2019, Ankit paid to Sohan by cheque ₹9,600in full sattlement of ₹ 10,000. Pass Journal entry and post it into Ledger Account in the books of Ankit. (i) In the above entry, Sohan has been debited with Bank Account and Discount Received Account . So, in ledger, Sohan's Account will be debited with ₹9,600 as " To Bank A/c and with ₹400 as "To Discount Received A/c". (ii) Bank Account has been credited with Sohan. So, in the ledger, Bank Account will be credited with ₹9,600 as " By Sohan". (iii) Discount Received Account has been credited with Sohan. So, in the ledger, Discount Received Account will be credited ₹400 as " By Sohan ". |
Answer» SOLUTION : 
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| 1111. |
On 1st April 2017, Shiv had a Provision for Doubtful Debts of Rs 650. On 31st March, 2018, total debtors amounted to Rs 18,400 out of which Rs 400 were bad to be written off. It was decided to maintain a Provision for Doubtful Debts at 5% of the debtors. On 31st March,2019, debtors were Rs 10,320 out of which Rs 320 had to be written off as bad debts. Provision for Doubtful Debts is to be maintanied at 5% of the Debtors. Show the Bad Debts Account and Provision for Doubtful debts for the years ended on31st, March, 2018 and 2019. |
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| 1112. |
On 1st April, 2016 Pankaj started the business of selling Refrigerators with a Capitals of Rs 30 lakhs. Entire amount of Capital was deposited into the bank after keeping the amount to be given to the petty Cashier. On the same date, he entered into an agreement with L.G. limited to sell the Refrigeratiors bought from them on one month credit basis. During the year he purchased the following assets making payments through bank: Building2500000 Office Equipments200000 Furniture150000 Refrigerators were to be sold for cash only and the cash proceeds were to be depsoited in the bank on the same day. All expenses except petty expenses were to be paid only through bank. The Petty Cashier was given Rs. 2500 on 1st April 2016 under Imprest system. The petty cashier would be reimburesed the actual expenses of the month on the first day of the next month before depositing the sale proceeds of the day. The following transactions were affected through bank during the year ended 31st March 2017 Purchase1690000 Sales2439700 Salaries66000 Advertising expenses9400 Telephone expenses10200 Electricity expenses7600 Printing and stationery3600 Insurance premium4000 During the year petty cashier was reimbursed for the expenses incurred by him amounting to Rs. 20300. The cash with the petty cashier on 31st March 2017 was Rs. 800 The purchase for the mouth of march. 2017 amounted to Rs. 140000 L.G Limited was paid for purchases as per terms agreed upon. Other Infomations: (i) Salaries have been paid for 11 months (ii) Telephone expenses Rs. 1000 and Electricity expenses Rs. 800 are yet to be paid. (iii) The closing stock as on 31st March 2017 were as follos: RefrigeratorsRs. 350000 StationeryRs. 600 (iv) Charge depreciation on builidng @ 4% and on office Equipments and Furniture @ 20%. Prepare Trail Balance as at 31st march 2017, profit & Loss Account for the year Ended on 31 march 2017 and a Balance sheet as at that date. |
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Answer» Solution :The project work is (i) to prepare a Bank account of the business of Mr. Pankaj from the very start of his business, (ii) to prepare a trial BALANCE, (iii) to prepare Profit & Loss Account for the Year ENDED 31st march 2017 (iv) To prepare a Balance sheet as on 31 march 2017 The necessary data is provided and is used for the purpose of project work. The project work is planned ANDD EXECUTED as FOLLOWS , (i) Prepare Bank Account, (ii) Prepare Trial Balance, (iii) Prepare profit & Loss Account for the year ended 31st March 2017 (iv) prepare Balance sheet at 31st march 2017  
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| 1113. |
On 1st April, 2015, Grand Ltd. purchased a machinery for Rs 3,00,000 and incurred Rs 21,000 towards freight and insurance, Rs 3,000 towards carriage inwards and Rs 6,000 towards installation charges. It has estimated that the machinery will have a scrap value of Rs 30 000 at the end of the useful life which is four years. What will be the annual depreciation and the value of machinery after four years according to the Straight Line Method? Ignore GST. |
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| 1114. |
Omission of paise and showing the round figuresin financial statements is based on …………….. |
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Answer» Conservation convention |
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| 1115. |
Noting Charges Accountis debited by |
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Answer» DRAWER |
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| 1116. |
Normally, the following accounts are balanced : |
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Answer» PERSONAL A/c & NOMINAL A/c |
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| 1117. |
Nominal Accounts are related to |
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Answer» ASSETS and LIABILITIES |
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| 1118. |
Net Sales for the year ended 31st March, 2019 is Rs 9,00,000. If Gross Profit is 25% of Cost, find Gross Profit and Cost of Goods Sold |
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Answer» Solution :GROSS Profit `= 25%` of COST `:.` If Cost is Rs 100, Gross Profit `= Rs 25` and Sales = Rs 125 If Sale is Rs 9,00,000, Gross Profit `= Rs 9,00,000 xx Rs 25//Rs 125 = Rs 1,80,000` Cost of GOODS SOLD `= Rs 9,00,000 - Rs 1,80,000 = Rs 7,20,000` |
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| 1119. |
Net worth of an organisation means the excess of its total assets over total liabilities. |
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| 1120. |
Net Sales for the year ended 31st March, 2019 is Rs 9,00,000. If Gross Profit is 30% on Sales, find Cost of Goods Sold |
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Answer» Solution :GROSS PROFIT `= RS 9,00,000 xx 30//100 = Rs 2,70,000` COST of Goods Sold `= Rs 9,00,000 - Rs 2,70,000 = Rs 6,30,000` |
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| 1121. |
Net Sales during the year 2011 is Rs 2,85,000. Gross Profit is 25% on Sales. Find out Cost of Goods Sold |
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Answer» Solution :GROSS Profit `= Rs 2,85,000 XX 25//100 = Rs 71,250` Cost of GOODS SOLD `= Rs 2,85,000 - Rs 71,250 = Rs 2,13,750` |
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| 1122. |
Net profit is equal to Capital at the end + Drawing - Additional capital introduced -Capital in the beginning. |
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| 1124. |
Name two types of Petty Cash Book. |
| Answer» Solution :SIMPLE Petty Cash BOOK and ANALYTICAL Petty Cash Book. | |
| 1125. |
Name two types of errors with example which do not affect the Trial Balance. |
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Answer» Solution :(i) Errors of Principle: Example-Recording of MACHINERY purchased as PURCHASES. (ii) Errors of COMPLETE Omission: Example-Goods purchased from Sita RAM of Rs. 5,000 but not recorded in the books of account. |
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| 1126. |
Name two Long-term Liabilities |
| Answer» SOLUTION :Long-term LOANS and DEBENTURES | |
| 1127. |
Name two items which are written in plus column while starting with Overdraft balance of Pass Book. |
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Answer» Solution :(i) CHEQUES PAID into bank for collection but not yet CREDITED by bank. (II) Bank Charges and commission CHARGED by bank. |
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| 1128. |
Name two items which are written in plus column while starting with Overdraft balance of Cash Book. |
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Answer» Solution :(i) Cheques issued or drawn but not YET PRESENTED for payment. (ii) INTEREST allowed by bank not recorded in CASH BOOK. |
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| 1129. |
Name two items which are written in Plus Column while starting with Credit balance of Pass Book. |
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Answer» SOLUTION :(i) Cheques paid into bank for collection but not YET cleared by bank. (ii) Bank charges and COMMISSION CHARGED by bank. |
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| 1130. |
Name two items which are written in plus column while starting with Debit balance of Cash Book. |
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Answer» Solution :(i) CHEQUES issued or drawn but not yet presented for PAYMENT. (ii) Interest ALLOWED by BANK not recorded in Cash Book. |
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| 1131. |
Name two items which are written in Minus column while starting with Overdraft balance of Pass Book. |
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Answer» SOLUTION :(i) Cheques ISSUED or draawn but not YET presented for payment. (ii) Amount directly deposited by the CUSTOMERS in our bank ACCOUNT. |
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| 1132. |
Name two items which are written in Minus column while starting with Overdraft balance of Cash Book. |
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Answer» SOLUTION :(i) Cheques paid into bank for COLLECTION but not YET credited by bank. (II) Direct payment made by the bank according to the standing insanding instuctions of CUSTOMERS. |
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| 1133. |
Name two items which are written in Minus Column while starting with Credit Balance of Pass Book. |
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Answer» SOLUTION :(i) Cheques issued or DRAWN but not yet presented for payment. (ii) Amount directly DEPOSITED by coustomers in out bank account. |
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| 1134. |
Name two items which are written in minus column while starting with Debit balance of Cash Book. |
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Answer» Solution :(i) CHEQUES paid into BANK for collection but not yet CREDITED by bank. (ii) Direct PAYMENT made by the bank according to the standing insanding instuctions of customers. |
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| 1135. |
Name two informationsystems usedin anorganisation . |
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Answer» SOLUTION :(i) Executivesupport SYSTEM (ii)MANAGEMENT Information SYSYTEM |
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| 1136. |
Name two errors which cannot be disclosed by preparing a Trial Balance. |
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Answer» SOLUTION :(i) ERROR of OMISSION. (II) Error of COMMISSION. |
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| 1137. |
NametwoApplicationsoftwares. |
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| 1138. |
Name three Current Liabilities |
| Answer» SOLUTION :1) Creditors, 2) Bills PAYABLE and 3) Outstanding Expenses | |
| 1140. |
Name the types of Column Book. |
| Answer» Solution :Simple of SIGNAL Column CASH BOOK and Two-column Cash Book with Cash and Bank COLUMNS. | |
| 1141. |
Name the two main accounts maintained in 'Accounts from Incomplete Records'. |
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Answer» SOLUTION :(i) CASH ACCOUNT, (II) PERSONAL account of debtors/creditors. |
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| 1142. |
Name the side on which increase in Capital Account is recorded . |
| Answer» SOLUTION :CREDIT SIDE . | |
| 1144. |
Namethe reserve that canbe usedin distribution of dividend. |
| Answer» SOLUTION :RevenueReserve. | |
| 1145. |
Name the external user of accounting information from whom the firm purchases goods on credit. |
| Answer» SOLUTION :SUPPLIER of GOODS. | |
| 1146. |
Name the external users directly concerned with accounting information. |
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Answer» Solution :(i) CREDITORS, (ii) Bankers or FINANCIAL INSTITUTIONS, and (III) GOVERNMENT and its Authorities. |
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| 1147. |
Name the errors for rectification of which Suspense Account is used. |
| Answer» SOLUTION :One-sided ERRORS. | |
| 1148. |
Name the error committed by violating the rules of Accounting. |
| Answer» SOLUTION :ERROR of PRINCIPLE. | |
| 1149. |
Name the error committed by violating the rule of Accounting. |
| Answer» SOLUTION :ERROR of PRINCIPLE. | |
| 1150. |
Name the branch of commerce, which keeps a record of monetary transactions in a set of books. |
| Answer» SOLUTION :BOOK KEEPING. | |