2427 + Interview Questions in Accounts in Class 11 Page 35 InterviewSolution

1701.	Following balances were extracted from the books of Shri S. Pal on 31st March, 2019. You are required to prepare a Trial balance. The amount requirdto balance should be entered as capital.
Answer» SOLUTION :

Discussion

1702.	Following balances appeared in the books of Ashok,Delhi on 1st April, 2019: Assets : Cash ₹ 50,000,Stock ₹ 30,000, Machinery ₹ 60,000. Liabilities : Creditor- Rajest ₹ 30,000. The following transactions took place in April, 2019 : CGST and SGST @ 6% each is levied on intra-state transactions nad IGST is levied @ 12% on inter-state transactions. Transactions maked with (*) are not subject ot levy of GST. Pass Journal entries for the above transactions, post them into the Ledger and prepare the Trial Balance on 30th April, 2019.
Answer» ANSWER :TRAIL BALANCE Total-₹1,80,574

Discussion

1703.	Following balances are taken from the books of Niranjan. Prepare Trading and Profit and Loss Account and Balance Sheet for the year ended 31st March 2019. Adjustments: (i) Closing Stock Rs 7,50,000. Depreciate Machinary by 10% and Furniture by 20%. (iii) Wages Rs 50,000 and salaries Rs 20,000 are outstanding . (iv) Write off Rs 50,000 as further Bad debts and create 5% Provision for Doubtful Debts. Also create a reserve for discount on Debtors @ 2%. (v) Investments were made on 1st July 2018 and no interest has been received so far.
Answer» SOLUTION :NA

Discussion

1704.	Following balances are taken from the Trial Balance of a trader as at 31st March, 2019: You are required to show extracts of Profit and Loss Account for the year ending 31st March, 2019 and from the Balance Sheet as on that date after taking into consideration the following: (i) Make a Provision for Doubtful Debts @3% of the Sundry Debtors. (ii) Make a Provision for Discount on Debtors @2%.
Answer» SOLUTION : Notes: 1. Bad Debts appearing in the Trial Balance has already been ADJUSTED in the Sundry Debtors. 2. Closing (New) Provision for Doubtful debts is LESS than the opening (old) provision for doubtful debts after ADJUSTMENT of bad debts, the difference, i.e., Rs 1,000 is credited to Profit and Loss Account.

Discussion

1705.	Following balances appear in the Trial Balance of a firm as on 31st March, 2019: Prepare Trading Account of the firm
Answer» SOLUTION :FREIGHT OUTWARDS beings an indirect expense is SHOWN in Profit and Loss ACCOUNT

Discussion

1706.	Following are the balances extracted from the books Naraina on 31st March, 2019: Additional Information : (i) Closing Stock at cost as on 31st March, 2019 was Rs 2,00,600, whereas its Net Realisable Value (Market value) was Rs 2,05,000. (ii) Depreciate : Business Premises by Rs 3,000 and Furniture and Fittings by Rs 2,500. (iii) Make a provision of 5% on debtors for doubtful debts. (iv) Carry forward Rs 2,000 for unexpeired insurance. (v) Outstanding salary was Rs 15,000.
Answer» Solution :1. CLOSING Stock will be taken at Rs 2,00,600, being lower of COST and Net Realisable Value (MARKET Value) Following the PRUDENCE Concept. 2. Rs 2,000 out of Insurance EXPENSES are Prepaid Insurance.

Discussion

1707.	Following are the balances extracted form the books of Manish on 31st March, 2019 : Prepare Trading and Profit and loss Account and Balance Sheet as at 31st March, 2019 after following adjustments are made : (i) Closing Stock was Rs 16,000. (ii) Depreciate Plant and Machinery @ 10% and Delivery Vehicle @ 15%. (iii) Unpaid Rent amounted to Rs 500.
Answer» SOLUTION :NA

Discussion

1708.	Following accounts are being maintained in the books of Shri Ashok . Classify them into Personal , Real and Nominal Accounts : (i) Land and Building (ii) Excise Duty (iii) Creditors (iv)Capital (v) Motor Vehicles (vi) Goodwill (vii) Investments (viii) Salary (ix) Debtors (x)Bad Debts (xi) Depreciation (xii) Wages (xiii) Repairs (xiv) Ramesh , a debtor (xv) Interest Received (xvi)Bank Overdraft (xvii) Purchase Returns (xviii) Drawings (xix) Freight (xx) Return Inwards .
Answer» ANSWER :Personal Account - (iii) ; (iv); (IX) ; (xiv) ; (XVI) ; (XVIII) , Real Account - (i) ; (V) ; (vi); (vii) , Nominal Account - (ii) ;(viii); (x) ; (xi) ; (xii) ; (xiii) ; (xv) ;(xvii) ; (xix) ; (xx)

Discussion

1709.	First Computers purchased computers form HCL Ltd .andavailed both Trade Discount and Cash Discount. The transactionrecorded in thebooks of account will be for:
Answer» NET Invoice Value and CASH DISCOUNT. Trade Discount, GROSS Invoice Value and Cash Discount. None of the above. Any of (a) and (b). Solution :Net Invoice Value and Cash Discount.

Discussion

1710.	Find opening capital when Assets=â‚¹ 4,00,000, Profit=â‚¹ 25,000 and Creditors =â‚¹ 2,55,000
Answer» ` â‚¹ 1,20,000` ` â‚¹1,45,000` ` â‚¹1,70,000` ` â‚¹3,75,000` ANSWER :A

Discussion

1711.	Find the correct statement
Answer» CREDIT a DECREASE in assets Credit the increase in EXPENSES DEBIT the increase in revenue Credit the increase in capital Solution :iv

Discussion

1712.	Financial position of Surbhi as on 1st April, 2018 was as under : Plantâ‚¹ 22,000, Stockâ‚¹ 45,000, Creditorsâ‚¹ 12,500, Bank overdraftâ‚¹ 28,800, Cashâ‚¹ 15,700, Debtorsâ‚¹ 27,900 , Bill Payableâ‚¹9,800, Investmentsâ‚¹ 30,000, Building 80,000. Her Capital at the year end will be
Answer» â‚¹ 2,57,000 â‚¹ 51,100 â‚¹ 3,08,600 â‚¹ 1,69,500. Answer :D

Discussion

1713.	Financial Statements consist of
Answer» TRIAL Balance Trading and PROFIT and LOSS Account Balance Sheet Both B and C Solution :Both b and c

Discussion

1714.	Fill in the missing values on the basis of narration:
Answer» Answer :1: Surya; 2: PURCHASES Return A/c; 2A: Input SGST A/c; 2B: Rs. 60; 3: Rahul; 4: Bank A/c; 5: Machinery A/c; 6: Cash A/c; 7: Rs. 15,000; 8: Loss of Stock by Fire A/c; 9: Purchases A/c; 9A: To Input CGST A/c; 10: Bad Debts A/c; 11: Bank A/c; 12: Rs. 19,600; 13: DISCOUNT Allowed A/c; 14: Rs. 400; 15: Rakesh; 16: Cash A/c; 17: Drawings A/c; 18: Purchases A/c;19: Input IGST A/c; 19A: Rs. 1,080; 20: Cash A/c; A/c; 21: Rs. 7,500; 22: Bad Debts A/c; 23: Rs. 2,500; 24: Vivek; 25: Rs. 10,000; 26: Sales Return A/c; 27: Rs. 19,800; 28: Rs. 22,176.

Discussion

1715.	Fill in the correct words : 1. The user oriented programmes designed and development for performing certain specific tasks are called as………… 2. Language syntax is checked by software called as………. 3. The people who write programmes to implement the data processing system design are called as............ 4. ............. is the brain of the computer. 5. ............ and .............are two of the important requirements of an accounting report. 6. An example of responsibility report is ............ .
Answer» Answer :1. APPLICATION software 2. Language processor 3. Programmer 4. CPU 5. Timliness , Relevance 6. Cash position, MANAGEMENT responsibility

Discussion

1716.	Fill in the correct words : (i)Depreciation is decline in the value of ........... (ii) Installation, freight and transport expenses are a part of ........... (ii) Provision is a ........... against profit. (iv) Reserve created for maintaining a stable rate of dividend is termed as...........
Answer» SOLUTION : (i) ASSETS (ii) Acquisition cost (iii) CHARGE (iv) Dividend equilisation fund

Discussion

1717.	Fill in the blanks : (i) Amount which the proprietor has invested in a business is known as …………… (ii) Amount which the firm owes to outsiders is knows as …………… (iii) …………….. Is the cost incurred in producing goods andservices. (iv) Revenue means the income of a ................ nature. (v) Theterm 'sales ' is used only for the sales of ..................... and is never used for the sale of ................. (vi) The persons who still owe some amount to the business are termed as ................. (vii) The persons to whom money is owing by the firm aretermed as ................... (viii) Assets held for continued use in thebusiness and not meant for resale are termed as ..................... (ix) ................... are those assets which have a physical existence and which can be seen or felt. (x) .................. refer to those liabilities which areto be paid normally within one year.
Answer» SOLUTION :(i) Capital(ii) Liability(III) Expenses (iv) REGULAR or recurring(V) Goods, Assets(vi) Debtors (vii) Creditors(viii) FIXED Assets(ix) Tangible Assets (x) Current Liabilities.

Discussion

1718.	Favourable bank balance as per the cash book will be less than the bank passbook balance when there are unpresented cheques for payment.
Answer» SOLUTION :T

Discussion

1719.	Favourable bank balance means:
Answer» Credit BALANCE in the CASH book (B Credit balance in PASSBOOK DEBIT balance in the cash book Both (b) and (c) Solution :C

Discussion

1720.	Favourable bank balance as per Cash Book will be less than pass book balance when there are cheques issued but not presented for payment.
Answer» ANSWER :1

Discussion

1721.	Fall in the value of an asset due to its use is termed as________
Answer» SOLUTION :DEPRECIATION

Discussion

1722.	External users of accounting information are not :
Answer» Lenders Officers Employees Public Answer :B

Discussion

1723.	External users of accounting information are :
Answer» RESEARCHERS Government Potential investors All of the above Answer :D

Discussion

1724.	Explain Verifiable Objective Concept.
Answer» SOLUTION :ACCORDING to the Verifiable ObjectiveConcept , accounting should be free from PERSONAL bias MEASUREMENTS that are based on verifiable evidencesare REGARDED as objective.

Discussion

1725.	Explain the term 'Deferred Revenue Expenditure' with the help of an example. OR Give any one example of 'Deferred Revenue Expenditure'
Answer» Solution :Deferred Revenue EXPENDITURE is that expenditure that is revenue in nature but the benefit of which extends beyond the accounting YEAR in which it is incurred. Example of Deferred Revenue Expenditure. Large expenditure incurred on advertising to introduce a new product in the market.

Discussion

1726.	Explain the method of posting a Petty Cash Book.
Answer»

Discussion

1727.	Explain the meaning of Imprest System of Petty Cash Book.
Answer»

Discussion

1728.	Explain themainparts of computersystemwithth helpof adiagram.
Answer»

Discussion

1729.	Explain the following terms: (i) Revenue, (ii) Debtors, (iii) Fictitious Assets and (iv) Working Capital
Answer» Solution :i) Revenue - Revenue is the income that a business has from its normal business activities, usually from the sale of goods and services to customers. ii) DEBTOR - A debtor is a person, company, or other entity that owes money. In other words, the debtor has a debt or LEGAL OBLIGATION to pay the amount owed. iii) Fictitious assets-fictitious assets are deffered revenue expenditure whose benefit is derived over LONG period of time.Even accumulated losses are also fictitious assets as they are written off over a period of time. iv) Working Capital - The difference between the Current Assets and Current Liabilities is known as Working Capital

Discussion

1730.	Explain the following terms : (a) Revenue(b) Trade Payables (c ) Fictitious Assets(d) Working Capital
Answer» SOLUTION :WORKING CAPITAL = CURRENT Assets - Current Liabilities.

Discussion

1731.	Explain the factors which necessiated systematic accounting.
Answer» Solution :Main purpose of accounting is to provide information to a variety of users for taking various DECISIONS. Hence the information should have the quality of reliability, understandability and comparability which is possibleonly if the accounting is carried out systematically i.e., based on principles and rules of accounting. Further, the ROLE of accounting has been CHANGING with the changes in economic development and increasing social demands, which requires analyses of accounting data and preparation of reports. Systematic recording is also needed for ASSESSMENT of various taxes such as Goods and Service Tax (GST), Income Tax etc.

Discussion

1732.	Explain the concept of cost of goods sold?
Answer» SOLUTION :N/a

Discussion

1733.	Explain Principle of Matching Revenue with Cost.
Answer» SOLUTION :According to the Matching CONCEPT , cost incurred to earn revenue should be RECOGNISED as EXPENSE in the PERIOD when revenue is recognised as earned .

Discussion

1734.	Explain Revenue Recognition Concept.
Answer» Solution :According to the REVENUE Recognition CONCEPT, revenue is CONSIDERED to have been realised when a transaction has been ENTERED into and the obligation to RECEIVE the amount has been established.

Discussion

1735.	Explain Money Measurement Concept.
Answer» Solution :ACCORDING to the MONEY Measurement CONCEPT , transactions and events that can be measured in TERMS of money are recorded are recorded in the BOOKS of account.

Discussion

1736.	Explain in short the meaning of an Acccunting Equation.
Answer»

Discussion

1737.	Explain how the following may be ascertained from incomplete records:
Answer» Opening CAPITAL and closing capital Credit sales and credit purchases PAYMENTS to CREDITORS and collection from DEBTORS Closing balance of cash Solution :N//A

Discussion

1738.	Explain Going Concern Concept.
Answer» SOLUTION :According to the GoingConcern Concept , it is assumed that the business will continue for a FORESEEABLE future and there is no intention to close or scale down the operations SIGNIFICANTLY.

Discussion

1739.	ExplainHistorical Cost Concept.
Answer» SOLUTION :According to the HISTORICAL COST Concept assets are recorded in the books of account at the prices paid to acquire them and it is the BASIS for all subsequent accounting of the assets .

Discussion

1740.	Explain Dual Aspect Concept.
Answer» Solution :Every transaction has two ASPECTS a debit and a CREDIT of equal AMOUNT. It means for every debit there is a credit of equal amount in one or more accounts and VICE versa. According to Dual Aspect Concept, both the aspects are recorded in the BOOKS of account.

Discussion

1741.	Explain Consistency Convention.
Answer» SOLUTION :ACCORDING to the Consistency CONVENTION ,ACCOUNTING practices once selected and dopted should be applied consistently YEAR after year.

Discussion

1742.	Explain Capital briefly
Answer» SOLUTION :CAPITAL is the amount INVESTED by the PROPRIETOR or the partner in the business

Discussion

1743.	Explain Business Entity Concept,
Answer» SOLUTION :ACCORDING to the Business Entity Concept, propritor of the business is a separate and distinct entity from business . The TRANSACTIONS are recorded in the books of account from the POINT of view of business , not from the point of view of the proprietor.

Discussion

1744.	Explain any three of the following accounting convention : (i) Full Disclosure, (ii) Consistency, (iii) Materiality and (iv) Conservatism.
Answer» SOLUTION :(i) According to the Convention of Full Disclosure , all significant information relating to theeconomic affairs of the entity should be reported in the FINANCIAL statementsin an understandable manner. (ii) According to the Convention of Consistency , accountingpractices once selected and ADOPTED should be consistently applied year after year. (iii) According to the Convention ofMateriality ,a transaction should be reported in the financial STATEMENTS on the basis of its materiality . An item is material if it can influence the decision of the user. (iv) According to the Convention of Conservatism , antiicipated losses should be accounted while anticipated incomes should not be accounted.

Discussion

1745.	Explain Accrual Concept.
Answer» SOLUTION :According to the Accrual CONCEPT ,a transaction is RECORDED in the books of ACCOUNT at sales made on credit will be recorded in the books of on the date of sales, not when the AMOUNT is received.

Discussion

1746.	Explain Accounting Standards briefly.
Answer» Solution :ACCOUNTING STANDARDS are a SET of guidelines , i.e, Generally AcceptedAccounting Principles , issued by the accounting body of the countryi.e., The Institute ofCharteredAccountants of India , that are followed for preparation and PRESENTATION of financialstatements . The objective of setting Accounting Standards is to bring uniformity in accounting practices and to ensure transparency , consistency and comparability .

Discussion

1747.	Expenses on overhauling a second-hand machine purchased is
Answer» REVENUE EXPENDITURE Capital Expenditure Deferred Revenue Expenditure None of these Solution :Revenue Expenditure

Discussion

1748.	Explain Accounting Period Concept.
Answer» Solution :ACCORDINGTO the Accounting PERIOD Concept , life of the business is BROKEN into smaller periods (ONE year) so that itsperformance is measuredat regular INTERVALS.

Discussion

1749.	Expenses incurred but not yet paid are accounted because of _________
Answer» SOLUTION :ACCRUAL CONCEPT

Discussion

1750.	Expenses incurredbut not yet paid are accounted because of
Answer» Matching PRINCIPLE Dual Aspect Principle. Accrual Concept MATERIALITY Principle SOLUTION :Accrual Concept

Discussion

Explore topic-wise InterviewSolutions in .

Following balances were extracted from the books of Shri S. Pal on 31st March, 2019. You are required to prepare a Trial balance. The amount requirdto balance should be entered as capital.

Following balances appear in the Trial Balance of a firm as on 31st March, 2019: Prepare Trading Account of the firm

First Computers purchased computers form HCL Ltd .andavailed both Trade Discount and Cash Discount. The transactionrecorded in thebooks of account will be for:

Find opening capital when Assets=â‚¹ 4,00,000, Profit=â‚¹ 25,000 and Creditors =â‚¹ 2,55,000

Find the correct statement

Financial Statements consist of

Fill in the missing values on the basis of narration:

Fill in the correct words : (i)Depreciation is decline in the value of ........... (ii) Installation, freight and transport expenses are a part of ........... (ii) Provision is a ........... against profit. (iv) Reserve created for maintaining a stable rate of dividend is termed as...........

Favourable bank balance as per the cash book will be less than the bank passbook balance when there are unpresented cheques for payment.

Favourable bank balance means:

Favourable bank balance as per Cash Book will be less than pass book balance when there are cheques issued but not presented for payment.

Fall in the value of an asset due to its use is termed as________

External users of accounting information are not :

External users of accounting information are :

Explain Verifiable Objective Concept.

Explain the term 'Deferred Revenue Expenditure' with the help of an example. OR Give any one example of 'Deferred Revenue Expenditure'

Explain the method of posting a Petty Cash Book.

Explain the meaning of Imprest System of Petty Cash Book.

Explain themainparts of computersystemwithth helpof adiagram.

Explain the following terms: (i) Revenue, (ii) Debtors, (iii) Fictitious Assets and (iv) Working Capital

Explain the following terms : (a) Revenue(b) Trade Payables (c ) Fictitious Assets(d) Working Capital

Explain the factors which necessiated systematic accounting.

Explain the concept of cost of goods sold?

Explain Principle of Matching Revenue with Cost.

Explain Revenue Recognition Concept.

Explain Money Measurement Concept.

Explain in short the meaning of an Acccunting Equation.

Explain how the following may be ascertained from incomplete records:

Explain Going Concern Concept.

ExplainHistorical Cost Concept.

Explain Dual Aspect Concept.

Explain Consistency Convention.

Explain Capital briefly

Explain Business Entity Concept,

Explain any three of the following accounting convention : (i) Full Disclosure, (ii) Consistency, (iii) Materiality and (iv) Conservatism.

Explain Accrual Concept.

Explain Accounting Standards briefly.

Expenses on overhauling a second-hand machine purchased is

Explain Accounting Period Concept.

Expenses incurred but not yet paid are accounted because of _________

Expenses incurredbut not yet paid are accounted because of