2427 + Interview Questions in Accounts in Class 11 Page 26 InterviewSolution

1251.	Issued cheque for70,000 to pay off on of the creditors. The account to be debited is ............
Answer» SOLUTION :CREDITORS

Discussion

1252.	Issued a cheque for 8,000 to pay rent. The account to be debited is ............
Answer» SOLUTION :RENT

Discussion

1253.	I's Trial balance has the following information: 12% Bank loan Rs. 40,000, interest paid Rs. 40,000 interest paid Rs. 3,800 . Interest debited to the Profit & Losss Account is
Answer» RS. 4,800 Rs. 5,000 Rs. 5,500 Rs. 1,000 Answer :A

Discussion

1254.	Is the basic objective of Book-keeping to maintain systematic records or to ascertain net results of operations of financial transactions?
Answer» Solution :The BASIC OBJECTIVE of book-keeping is to MAINTAIN systematicrecords of FINANCIAL TRANSACTIONS.

Discussion

1255.	Is Trial Balance a part of Double Entry system ?
Answer» SOLUTION :No. It is only a WORKING PAPER.

Discussion

1256.	Is the basic objective of Book Keeping to maintain systematic records or to ascertain net results of operations of financial transactions?
Answer» SOLUTION :The basic objective of Book Keeping is to maintain SYSTEMATIC RECORDS of FINANCIAL transactions.

Discussion

1257.	Is the balance of Petty cash Book as asset or income ?
Answer» SOLUTION :ASSET .

Discussion

1258.	Is the balance of Petty Cash Book an asset or income ?
Answer» Solution :BALANCE of PETTY CASH BOOK is an asset for the firm.

Discussion

1259.	Is reserve a chargeagainstprofitor anappropriating of profit ?
Answer» <P> SOLUTION :It is CREATED not bdebitingto P & LA/c but through P & LAppropriation A/c.As such , it isappropriationof PROFIT because it iscreated afterthe caculationofnet profit.

Discussion

1260.	‘Is it possible to prepare the profit and loss account and the balance sheet from the incomplete book of accounts kept by a trader’? Do you agree? Explain.
Answer» SOLUTION :N//A

Discussion

1261.	Is it possible to prepare a Trial Balance and check the arithmetical accuracy of the books of account under Single Entry System?
Answer» Solution :No, TRIAL Balance cannot be prepared under Single Entry SYSTEM as it does not record the dual ASPECT of each transaction. Therefore, the ARITHMETICAL accuracy of the BOOKS of account cannot be verified.

Discussion

1262.	Is it necessary to prepare chart of accounts before implementing computerised accounting
Answer» Solution :Yes , it is NECESSARY because BASED on it transactions are posted to LEDGER accounts and FINANCIAL statements are prepared.

Discussion

1263.	Is itcorrect than Bank Reconciliation Statement is prepared once i.e., at the end of year ?
Answer» SOLUTION :No, it is not correct. It can be prepared at any time of the YEAR say every MONTH or every quarter or half yearly or yearly

Discussion

1264.	Is Depreciation the result of flucrtuations in the value of fixed assets?
Answer» SOLUTION :No, Depreciation is not result of fluctuations in the VALUE of fixed assets SINCE the fluctuation is concerned with the MARKET price of fixed asset whereas the Deperciation is concerned with the historical cost (i.e., cost of acquiring fixed asset).

Discussion

1265.	Is CGSTand SGST or IGST paid on puchase input GST or output GST? Why?
Answer» Solution :It is INPUT GST because it is paid in purchases and can be SET -off against GST COLLECTED.

Discussion

1266.	Is Cash Book a journal or a ledger ?
Answer» Solution :It is ajournal as WELL as LEDGER . It is a journal SINCE cashand bank transactions are firstrecorded in it and aledger since it serves the purpose of a Cash Account ALOS. When a Cash Book is prepared , no separate Cash Account is opened in the ledger .

Discussion

1267.	Is 'Cash Memo' a source document or an Accounting Voucher?
Answer» SOLUTION :Cash Memo is a SOURCE document prepared by the seller of GOODS for cash.

Discussion

1268.	Is Capital Account a Personal Account or a Real Account ?
Answer» SOLUTION :CAPITAL ACCOUNT is a Personal Account because it represents OWNER of the business.

Discussion

1269.	Is a trial balance conclusive proof of the accuracy of the books of accounts ?
Answer» Solution :A trial balance is not an ABSOLUTE or conclusive PROOF of the accuracy of the books of accounts since there may be certain types of errors which may REMAIN undetected inspite of the AGREEMENT of trial balance.

Discussion

1270.	Invoice is a source voucher for seller of goods on credit.
Answer» SOLUTION : TRUE

Discussion

1271.	Invoice is a source voucher for seller of goods
Answer» for CASH PURCHASES. for CREDIT purchases. for credit SALES. for cash purchases. SOLUTION :for credit sales.

Discussion

1272.	Invoice is a source voucher for purchaser of goods on _________
Answer» SOLUTION :CREDIT

Discussion

1273.	Invoice is a source voucher for purchaser of goods
Answer» for CASH PURCHASES. for cash sales. for CREDIT sales. for credit purchases. SOLUTION :for credit purchases.

Discussion

1274.	Invoice is a source voucher for
Answer» CASH PURCHASES. Credit purchases. Both (a) and (B). neither (a) nor (b). SOLUTION :Credit purchases.

Discussion

1275.	Internal users of accounting information are :
Answer» POTENTIAL investors Creditors Management Employees Answer :C

Discussion

1276.	Interest received on loan is an income for the business.
Answer» SOLUTION : TRUE

Discussion

1277.	Interest Received is classified as
Answer» ASSET ACCOUNT REVNUE Account Capital Account Liability Account. Solution :Revnue Account

Discussion

1278.	Intereston Drawing charged isâ‚¹ 1,500. In accounting equation, it will be shown as
Answer» INCREASE CAPITAL byâ‚¹ 1,500 and decrease CASH byâ‚¹ 1,500 Increase and Decrease capital byâ‚¹ 1,500. Increase capital and INTEREST on Drawing byâ‚¹ 1,500 Decrease capital and cash byâ‚¹ 1,500. Solution :Increase and Decrease capital byâ‚¹ 1,500.

Discussion

1279.	Interest allowedby bank and not recorded in the books of account are _______ from Credit Cash Book balance when Bank Reconciliation Statement is prepared.
Answer» SOLUTION :DEDUCTED

Discussion

1280.	Interest allowed by bank and not recorded in the books of account are _______ to Debit Cash Book balance to prepare Bank Reconciliation Statement .
Answer» SOLUTION :ADDED

Discussion

1281.	Insurance premium paid to insure the machinery is a revenue expenditure.
Answer» SOLUTION : TRUE

Discussion

1282.	Insurance premium paid during the year is Rs10,000 and prepaid insurance at the year end is Rs 3,000. Insurance expense shown in Profit and Loss Account will be
Answer» `RS 13,000`. `Rs 10,000`. `Rs 3,000`. `Rs 7,000`. SOLUTION :NA

Discussion

1283.	Insurance premium paid to insure the machinery is
Answer» REVENUE EXPENDITURE CAPITAL Expenditure Deferred Revenue Expenditure None of these Solution :Capital Expenditure

Discussion

1284.	Insurance Premium paid during the year is Rs 10,000 and Opening Prepaid insurance is Rs 3,000. Insurance Expenses shown in the Profit and Loss Account will be
Answer» `RS 13,000`. `Rs 7,000`. `Rs 3,000`. `Rs 10,000`. SOLUTION :`Rs 13,000`.

Discussion

1285.	Input Credit of GST paid on Food and Beverages is allowed. It, therefore , is a cost.
Answer» SOLUTION : TRUE

Discussion

1286.	Insurance claim received for loss of goods is a revenue receipt.
Answer» SOLUTION : TRUE

Discussion

1287.	Input Credit of GST paid is not allowed on goods given as donation.
Answer» SOLUTION : TRUE

Discussion

1288.	Input Credit of GST paid directly into Government Account under Reverse charge is
Answer» not ALLOWED allowed MAY or may not be allowed NONE of the above. Solution :allowed

Discussion

1289.	Information in financial reports is based on _______ transaction and _______
Answer» SOLUTION :FINANCIAL, EVENTS

Discussion

1290.	Indirect Expenses aredebited to _________
Answer» SOLUTION :PROFIT and LOSS ACCOUNT

Discussion

1291.	Indirect Expanses are debited to
Answer» TRADING Account Profit and LOSS Account Balance Sheet None of these. SOLUTION :NA

Discussion

1292.	Indicate how Accounting Equation is affected if payment is made to a crediter?
Answer» SOLUTION :CASH DECREASES and so does the LIABILITY (CREDITOR).

Discussion

1293.	Indicate how Accounting Equation is affected if machinery is purchased for cash?
Answer» SOLUTION : It will RESULT in CASH being REDUCED and Machinery Account being increased.

Discussion

1294.	Indicate against each amount wheather it is a debit or a credit balance, and prepare a trial balance as at March 31, 2014 based on the following balances
Answer» SOLUTION :TRAIL BALANCE TOTAL 5,17,000

Discussion

1295.	Inderpal has shown interest earned and interest paid at net amount in the profit and loss account .Is he correct in doing so ?
Answer» SOLUTION :No , he is not correct because FULL desclosure principle is not followed .Interest earned is an income whereas interest paid in an EXPENSE .By netting it, correct expense and correct income is not shown in the PROFIT and loss account

Discussion

1296.	Indicate how Accounting Equation is affected if cash is roceived against services rendered?
Answer» SOLUTION :CASH INCREASES and so does the CAPITAL.

Discussion

1297.	Ind-AS are based on
Answer» Rules PRICIPLES Both (a) and (B) NONE of these. Solution :Priciples

Discussion

1298.	Ind - AS are
Answer» RULE bases ACCOUNTING STANDARDS. principle BASED accounting standards. PARTIALLY rule based and partially prinsiple based accounting standards. None of these. Solution :principle based accounting standards.

Discussion

1299.	Ind-AS are ___________ based accounting standards.
Answer» SOLUTION :PRINCIPLE.

Discussion

1300.	Ind-AS apply to
Answer» Companies LISTED on Stock Exchange Companies having net worth of â‚¹250 crores or more. Subsidiaries, Holding, JOINT Ventures and ASSOCIATES of above TWO categories ofCompanies. All of the above. Solution :All of the above.

Discussion

Explore topic-wise InterviewSolutions in .

Issued cheque for70,000 to pay off on of the creditors. The account to be debited is ............

Issued a cheque for 8,000 to pay rent. The account to be debited is ............

I's Trial balance has the following information: 12% Bank loan Rs. 40,000, interest paid Rs. 40,000 interest paid Rs. 3,800 . Interest debited to the Profit & Losss Account is

Is the basic objective of Book-keeping to maintain systematic records or to ascertain net results of operations of financial transactions?

Is Trial Balance a part of Double Entry system ?

Is the basic objective of Book Keeping to maintain systematic records or to ascertain net results of operations of financial transactions?

Is the balance of Petty cash Book as asset or income ?

Is the balance of Petty Cash Book an asset or income ?

Is reserve a chargeagainstprofitor anappropriating of profit ?

‘Is it possible to prepare the profit and loss account and the balance sheet from the incomplete book of accounts kept by a trader’? Do you agree? Explain.

Is it possible to prepare a Trial Balance and check the arithmetical accuracy of the books of account under Single Entry System?

Is it necessary to prepare chart of accounts before implementing computerised accounting

Is itcorrect than Bank Reconciliation Statement is prepared once i.e., at the end of year ?

Is Depreciation the result of flucrtuations in the value of fixed assets?

Is CGSTand SGST or IGST paid on puchase input GST or output GST? Why?

Is Cash Book a journal or a ledger ?

Is 'Cash Memo' a source document or an Accounting Voucher?

Is Capital Account a Personal Account or a Real Account ?

Is a trial balance conclusive proof of the accuracy of the books of accounts ?

Invoice is a source voucher for seller of goods on credit.

Invoice is a source voucher for seller of goods

Invoice is a source voucher for purchaser of goods on _________

Invoice is a source voucher for purchaser of goods

Invoice is a source voucher for

Internal users of accounting information are :

Interest received on loan is an income for the business.

Interest Received is classified as

Intereston Drawing charged isâ‚¹ 1,500. In accounting equation, it will be shown as

Interest allowedby bank and not recorded in the books of account are _______ from Credit Cash Book balance when Bank Reconciliation Statement is prepared.

Interest allowed by bank and not recorded in the books of account are _______ to Debit Cash Book balance to prepare Bank Reconciliation Statement .

Insurance premium paid to insure the machinery is a revenue expenditure.

Insurance premium paid during the year is Rs10,000 and prepaid insurance at the year end is Rs 3,000. Insurance expense shown in Profit and Loss Account will be

Insurance premium paid to insure the machinery is

Insurance Premium paid during the year is Rs 10,000 and Opening Prepaid insurance is Rs 3,000. Insurance Expenses shown in the Profit and Loss Account will be

Input Credit of GST paid on Food and Beverages is allowed. It, therefore , is a cost.

Insurance claim received for loss of goods is a revenue receipt.

Input Credit of GST paid is not allowed on goods given as donation.

Input Credit of GST paid directly into Government Account under Reverse charge is

Information in financial reports is based on _______ transaction and _______

Indirect Expenses aredebited to _________

Indirect Expanses are debited to

Indicate how Accounting Equation is affected if payment is made to a crediter?

Indicate how Accounting Equation is affected if machinery is purchased for cash?

Indicate against each amount wheather it is a debit or a credit balance, and prepare a trial balance as at March 31, 2014 based on the following balances

Inderpal has shown interest earned and interest paid at net amount in the profit and loss account .Is he correct in doing so ?

Indicate how Accounting Equation is affected if cash is roceived against services rendered?

Ind-AS are based on

Ind - AS are

Ind-AS are ___________ based accounting standards.

Ind-AS apply to

Information in financial reports is based on _ transaction and _