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This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your Class 11 knowledge and support exam preparation. Choose a topic below to get started.
| 1751. |
Expenditure which increase the earning capacity of fixed asset is a |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/capital-908677" style="font-weight:bold;" target="_blank" title="Click to know more about CAPITAL">CAPITAL</a> <a href="https://interviewquestions.tuteehub.com/tag/expenditure-980222" style="font-weight:bold;" target="_blank" title="Click to know more about EXPENDITURE">EXPENDITURE</a><br/><a href="https://interviewquestions.tuteehub.com/tag/revenue-1188040" style="font-weight:bold;" target="_blank" title="Click to know more about REVENUE">REVENUE</a> Expenditure<br/>Deferred Revenue Expenditure<br/>None of these</p>Solution :Capital Expenditure</body></html> | |
| 1752. |
Expenditure of revenue nature that gives benefit for more than one accounting period is categorised as |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/capital-908677" style="font-weight:bold;" target="_blank" title="Click to know more about CAPITAL">CAPITAL</a> <a href="https://interviewquestions.tuteehub.com/tag/expenditure-980222" style="font-weight:bold;" target="_blank" title="Click to know more about EXPENDITURE">EXPENDITURE</a><br/><a href="https://interviewquestions.tuteehub.com/tag/revenue-1188040" style="font-weight:bold;" target="_blank" title="Click to know more about REVENUE">REVENUE</a> Expenditure<br/><a href="https://interviewquestions.tuteehub.com/tag/deferred-946959" style="font-weight:bold;" target="_blank" title="Click to know more about DEFERRED">DEFERRED</a> Revenue Expenditure<br/>None of these</p>Solution :Deferred Revenue Expenditure</body></html> | |
| 1753. |
Exe Co. which purchased 50 computers from HCL made payment immediately. As a result, HCL granted it a discounted it a discount of Rs. 10,000. It the discount received Trade Discount or Cash Discount? How will you record it in the books of account? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<a href="https://interviewquestions.tuteehub.com/tag/discount-955451" style="font-weight:bold;" target="_blank" title="Click to know more about DISCOUNT">DISCOUNT</a> allowed by HCL is a Cash Discount. It is recorded in the <a href="https://interviewquestions.tuteehub.com/tag/books-900981" style="font-weight:bold;" target="_blank" title="Click to know more about BOOKS">BOOKS</a> of account by crediting it to 'Discount <a href="https://interviewquestions.tuteehub.com/tag/received-1179289" style="font-weight:bold;" target="_blank" title="Click to know more about RECEIVED">RECEIVED</a> Account'.</body></html> | |
| 1754. |
Exe Co. has purchased 50 computers from HCL and is allowed discount of Rs. 10,000 for purchase thereof. Is the discount allowed Trade Discount or a Cash Discount? How will you record it in the books of account? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<a href="https://interviewquestions.tuteehub.com/tag/discount-955451" style="font-weight:bold;" target="_blank" title="Click to know more about DISCOUNT">DISCOUNT</a> <a href="https://interviewquestions.tuteehub.com/tag/allowed-857944" style="font-weight:bold;" target="_blank" title="Click to know more about ALLOWED">ALLOWED</a> by HCL is a Trade Discount. It is not recorded separately in the <a href="https://interviewquestions.tuteehub.com/tag/books-900981" style="font-weight:bold;" target="_blank" title="Click to know more about BOOKS">BOOKS</a> of account. Instead purchase is recorded at net value, i.e., <a href="https://interviewquestions.tuteehub.com/tag/sale-1193496" style="font-weight:bold;" target="_blank" title="Click to know more about SALE">SALE</a> Price less Trade Discount.</body></html> | |
| 1755. |
Excess of ………….. Over ………………. Represents loss sustained during the period. |
| Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<a href="https://interviewquestions.tuteehub.com/tag/opening-1136658" style="font-weight:bold;" target="_blank" title="Click to know more about OPENING">OPENING</a> <a href="https://interviewquestions.tuteehub.com/tag/capital-908677" style="font-weight:bold;" target="_blank" title="Click to know more about CAPITAL">CAPITAL</a>, <a href="https://interviewquestions.tuteehub.com/tag/closing-919708" style="font-weight:bold;" target="_blank" title="Click to know more about CLOSING">CLOSING</a> capital</body></html> | |
| 1756. |
Excess of income over its relatedexpenses which arises from its normal business activity is |
| Answer» <html><body><p>Gain<br/><a href="https://interviewquestions.tuteehub.com/tag/profit-1168589" style="font-weight:bold;" target="_blank" title="Click to know more about PROFIT">PROFIT</a><br/>Revenue<br/>Loss. </p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :Profit</body></html> | |
| 1757. |
Everything a firms owns, it also owes out to somebody. This co-incidence is explained by the ……………….concept. |
| Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/answer-15557" style="font-weight:bold;" target="_blank" title="Click to know more about ANSWER">ANSWER</a> :<a href="https://interviewquestions.tuteehub.com/tag/dual-749" style="font-weight:bold;" target="_blank" title="Click to know more about DUAL">DUAL</a> <a href="https://interviewquestions.tuteehub.com/tag/aspect-885708" style="font-weight:bold;" target="_blank" title="Click to know more about ASPECT">ASPECT</a></body></html> | |
| 1758. |
Errors of principle effect only one account. |
| Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> : <a href="https://interviewquestions.tuteehub.com/tag/false-459184" style="font-weight:bold;" target="_blank" title="Click to know more about FALSE">FALSE</a></body></html> | |
| 1759. |
Every account has _________sides, debit and credit. |
| Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<a href="https://interviewquestions.tuteehub.com/tag/two-714195" style="font-weight:bold;" target="_blank" title="Click to know more about TWO">TWO</a></body></html> | |
| 1760. |
Errors ofPribciple |
| Answer» <html><body><p>can be <a href="https://interviewquestions.tuteehub.com/tag/known-534098" style="font-weight:bold;" target="_blank" title="Click to know more about KNOWN">KNOWN</a> from the <a href="https://interviewquestions.tuteehub.com/tag/trial-1427200" style="font-weight:bold;" target="_blank" title="Click to know more about TRIAL">TRIAL</a> <a href="https://interviewquestions.tuteehub.com/tag/balance-891682" style="font-weight:bold;" target="_blank" title="Click to know more about BALANCE">BALANCE</a><br/>cannot be known from the Trial Balance. </p><a href="https://interviewquestions.tuteehub.com/tag/answer-15557" style="font-weight:bold;" target="_blank" title="Click to know more about ANSWER">ANSWER</a> :<a href="https://interviewquestions.tuteehub.com/tag/c-7168" style="font-weight:bold;" target="_blank" title="Click to know more about C">C</a></body></html> | |
| 1761. |
Errors of complete omission permit |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/correct-409949" style="font-weight:bold;" target="_blank" title="Click to know more about CORRECT">CORRECT</a> totalling of the <a href="https://interviewquestions.tuteehub.com/tag/balance-891682" style="font-weight:bold;" target="_blank" title="Click to know more about BALANCE">BALANCE</a> Sheet<br/>correct totalling of the Trial balance. <br/>the Trial <a href="https://interviewquestions.tuteehub.com/tag/balanceto-2458926" style="font-weight:bold;" target="_blank" title="Click to know more about BALANCETO">BALANCETO</a> <a href="https://interviewquestions.tuteehub.com/tag/agree-2404370" style="font-weight:bold;" target="_blank" title="Click to know more about AGREE">AGREE</a><br/>None of these.</p>Solution :the Trial Balanceto agree</body></html> | |
| 1762. |
Errors of omisssion permit |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/correct-409949" style="font-weight:bold;" target="_blank" title="Click to know more about CORRECT">CORRECT</a> <a href="https://interviewquestions.tuteehub.com/tag/totalling-3225776" style="font-weight:bold;" target="_blank" title="Click to know more about TOTALLING">TOTALLING</a> of the <a href="https://interviewquestions.tuteehub.com/tag/balance-891682" style="font-weight:bold;" target="_blank" title="Click to know more about BALANCE">BALANCE</a> <a href="https://interviewquestions.tuteehub.com/tag/sheet-641829" style="font-weight:bold;" target="_blank" title="Click to know more about SHEET">SHEET</a>. <br/>correct totalling of the Trial Balance. <br/>the Trial Balance of <a href="https://interviewquestions.tuteehub.com/tag/match-556225" style="font-weight:bold;" target="_blank" title="Click to know more about MATCH">MATCH</a>.<br/>None of these.</p>Solution :the Trial Balance of match.</body></html> | |
| 1763. |
Errors of Complete omission |
| Answer» <html><body><p>are reflected in the <a href="https://interviewquestions.tuteehub.com/tag/trial-1427200" style="font-weight:bold;" target="_blank" title="Click to know more about TRIAL">TRIAL</a> Balance<br/>are not reflected in the Trial Balance<br/>Both (a) and (<a href="https://interviewquestions.tuteehub.com/tag/b-387190" style="font-weight:bold;" target="_blank" title="Click to know more about B">B</a>)<br/><a href="https://interviewquestions.tuteehub.com/tag/none-580659" style="font-weight:bold;" target="_blank" title="Click to know more about NONE">NONE</a> of these . </p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :are not reflected in the Trial Balance</body></html> | |
| 1764. |
Error of principle is not disclosed by the Trial Balance. |
| Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<a href="https://interviewquestions.tuteehub.com/tag/true-713260" style="font-weight:bold;" target="_blank" title="Click to know more about TRUE">TRUE</a></body></html> | |
| 1765. |
Error of complete omission is disclosed by the Trial Balance. |
| Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<a href="https://interviewquestions.tuteehub.com/tag/false-459184" style="font-weight:bold;" target="_blank" title="Click to know more about FALSE">FALSE</a></body></html> | |
| 1766. |
Error not shown by Trial Balance are: |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/errors-15514" style="font-weight:bold;" target="_blank" title="Click to know more about ERRORS">ERRORS</a> of <a href="https://interviewquestions.tuteehub.com/tag/principle-1166255" style="font-weight:bold;" target="_blank" title="Click to know more about PRINCIPLE">PRINCIPLE</a>. <br/><a href="https://interviewquestions.tuteehub.com/tag/compensating-2531812" style="font-weight:bold;" target="_blank" title="Click to know more about COMPENSATING">COMPENSATING</a> Errors. <br/>Errors of Complete <a href="https://interviewquestions.tuteehub.com/tag/omission-1130895" style="font-weight:bold;" target="_blank" title="Click to know more about OMISSION">OMISSION</a>. <br/>All of the above. </p>Solution :All of the above.</body></html> | |
| 1767. |
Entire life on the firm is divided into time intervals for the measurement of profits in accordance with 'Going Concern Assumption'. |
| Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/answer-15557" style="font-weight:bold;" target="_blank" title="Click to know more about ANSWER">ANSWER</a> :<a href="https://interviewquestions.tuteehub.com/tag/false-459184" style="font-weight:bold;" target="_blank" title="Click to know more about FALSE">FALSE</a></body></html> | |
| 1768. |
Enter the following transactions in the subsidiary books, post them into the Ledger and prepare a Trial Balance: |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XI_C13_S01_001_S01.png" width="80%"/> <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XI_C13_S01_001_S02.png" width="80%"/> <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XI_C13_S01_001_S03.png" width="80%"/> <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XI_C13_S01_001_S04.png" width="80%"/> <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XI_C13_S01_001_S05.png" width="80%"/></body></html> | |
| 1769. |
Enter the following transaction in a double column cash book of M/s.Mohit Traders for January 2017: |
| Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/answer-15557" style="font-weight:bold;" target="_blank" title="Click to know more about ANSWER">ANSWER</a> :<a href="https://interviewquestions.tuteehub.com/tag/cash-910172" style="font-weight:bold;" target="_blank" title="Click to know more about CASH">CASH</a> in <a href="https://interviewquestions.tuteehub.com/tag/hand-1015171" style="font-weight:bold;" target="_blank" title="Click to know more about HAND">HAND</a> <a href="https://interviewquestions.tuteehub.com/tag/rs-625947" style="font-weight:bold;" target="_blank" title="Click to know more about RS">RS</a> 3,500 Cash at <a href="https://interviewquestions.tuteehub.com/tag/bank-13461" style="font-weight:bold;" target="_blank" title="Click to know more about BANK">BANK</a> Rs 2,300</body></html> | |
| 1770. |
Endorsing a bill means transferring the bill to another person by holder. |
| Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> : <a href="https://interviewquestions.tuteehub.com/tag/true-713260" style="font-weight:bold;" target="_blank" title="Click to know more about TRUE">TRUE</a></body></html> | |
| 1771. |
During the financial year 2018-19, Ashok had cash sales of Rs. 3,90,000 and credit sales of Rs. 1,60,000. His expenses for the year were Rs. 2,70,000, outof which Rs. 80,000 is still to be paid. Find out Ashok's income for 2018-19 following the cash Basis of Accounting. |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :`{:(,,"Rs."),("Revenues (inflow of cash, i.e., cash <a href="https://interviewquestions.tuteehub.com/tag/sales-25569" style="font-weight:bold;" target="_blank" title="Click to know more about SALES">SALES</a>)",,"3,90,000"),("Less : Expenses (<a href="https://interviewquestions.tuteehub.com/tag/outflow-1142710" style="font-weight:bold;" target="_blank" title="Click to know more about OUTFLOW">OUTFLOW</a> of cash)(Rs. 2,70,000-Rs. 80,000)",,"1,90,000"),("Net <a href="https://interviewquestions.tuteehub.com/tag/income-25499" style="font-weight:bold;" target="_blank" title="Click to know more about INCOME">INCOME</a>",,ulbar(ul("2,00,000"))):}` <br/> Note : Credit sales and outstanding expenses will not be considered under . Cash Basis of Accounting.</body></html> | |
| 1772. |
Eicher Ltd. intentionally madeexcess provisionfor doubtful debts. What term will be used forexcess provision ? |
| Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/answer-15557" style="font-weight:bold;" target="_blank" title="Click to know more about ANSWER">ANSWER</a> :<a href="https://interviewquestions.tuteehub.com/tag/reserve-1186088" style="font-weight:bold;" target="_blank" title="Click to know more about RESERVE">RESERVE</a>.</body></html> | |
| 1773. |
During the life- time of an entity ,accounting produces finamcial statements in accordance with which of the following accounting concept? |
| Answer» <html><body><p>Matching<br/>Conservatism<br/><a href="https://interviewquestions.tuteehub.com/tag/accounting-637" style="font-weight:bold;" target="_blank" title="Click to know more about ACCOUNTING">ACCOUNTING</a> <a href="https://interviewquestions.tuteehub.com/tag/period-1151023" style="font-weight:bold;" target="_blank" title="Click to know more about PERIOD">PERIOD</a><br/>Cost</p>Solution :Accounting period</body></html> | |
| 1774. |
During the year the company purchased ballpoint pens of ₹500. These were issued to employees and were still in use at the end of theyear. Which accounting concept you would follow in dealing with this item? |
| Answer» <html><body><p></p>Solution :Materiality <a href="https://interviewquestions.tuteehub.com/tag/convention-933064" style="font-weight:bold;" target="_blank" title="Click to know more about CONVENTION">CONVENTION</a> will be <a href="https://interviewquestions.tuteehub.com/tag/followed-2079285" style="font-weight:bold;" target="_blank" title="Click to know more about FOLLOWED">FOLLOWED</a> in dealing with this <a href="https://interviewquestions.tuteehub.com/tag/item-1052941" style="font-weight:bold;" target="_blank" title="Click to know more about ITEM">ITEM</a>. As per this concept, items having an insignificant effect or being irrelevant to the users of financial statements need not be disclosed. Hence, it will be treated as expense and will debited to Stationery Account.</body></html> | |
| 1775. |
Due to which Concept qualitative transactions are not recorded in the books : |
| Answer» <html><body><p>Business <a href="https://interviewquestions.tuteehub.com/tag/entity-972730" style="font-weight:bold;" target="_blank" title="Click to know more about ENTITY">ENTITY</a> Concept <br/>Money <a href="https://interviewquestions.tuteehub.com/tag/measurement-19276" style="font-weight:bold;" target="_blank" title="Click to know more about MEASUREMENT">MEASUREMENT</a> Concept <br/><a href="https://interviewquestions.tuteehub.com/tag/historical-487197" style="font-weight:bold;" target="_blank" title="Click to know more about HISTORICAL">HISTORICAL</a> <a href="https://interviewquestions.tuteehub.com/tag/cost-25707" style="font-weight:bold;" target="_blank" title="Click to know more about COST">COST</a> Concept <br/>Dual Aspect Concept </p>Answer :B</body></html> | |
| 1776. |
Due to major loss in the current year, the accountatn of the firm has not charged deprecition on fixed tangible assets. Whether his decision not to charge depriciation is correct ? What will be the impact of the decision on financial statements? |
| Answer» <html><body><p></p>Solution :Depreciation is the process of allocating cost of fixed assets over its estimated useful <a href="https://interviewquestions.tuteehub.com/tag/life-541672" style="font-weight:bold;" target="_blank" title="Click to know more about LIFE">LIFE</a>. There fore, depreciation being an expanese should be debited to the profit and loss account. <br/> Impact of not charging depreciation on fixed assets will <a href="https://interviewquestions.tuteehub.com/tag/result-1187343" style="font-weight:bold;" target="_blank" title="Click to know more about RESULT">RESULT</a> in <a href="https://interviewquestions.tuteehub.com/tag/higher-1022060" style="font-weight:bold;" target="_blank" title="Click to know more about HIGHER">HIGHER</a> profit or lower loss .It will <a href="https://interviewquestions.tuteehub.com/tag/also-373387" style="font-weight:bold;" target="_blank" title="Click to know more about ALSO">ALSO</a> result in showing fixed assets in the balance sheet at higher <a href="https://interviewquestions.tuteehub.com/tag/valu-1442456" style="font-weight:bold;" target="_blank" title="Click to know more about VALU">VALU</a>.</body></html> | |
| 1777. |
During the financial 2018-19, Mohan had cash sales of Rs. 90,000 and credit sales of Rs. 60,000 . His expenses for the year were Rs. 70,000 out of which Rs. 30,000 is still to be paid. Find out Mohan's income for 2018-19 following the Cash Basis of Accounting. |
| Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/answer-15557" style="font-weight:bold;" target="_blank" title="Click to know more about ANSWER">ANSWER</a> :<a href="https://interviewquestions.tuteehub.com/tag/rs-625947" style="font-weight:bold;" target="_blank" title="Click to know more about RS">RS</a>. 50,000.</body></html> | |
| 1778. |
Due to which of the following, contingent liabilities are shown in the Balance Sheet : |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/dual-749" style="font-weight:bold;" target="_blank" title="Click to know more about DUAL">DUAL</a> Aspect Concept <br/>Convention of Full <a href="https://interviewquestions.tuteehub.com/tag/disclosure-955394" style="font-weight:bold;" target="_blank" title="Click to know more about DISCLOSURE">DISCLOSURE</a> <br/>Convention of Materiality <br/><a href="https://interviewquestions.tuteehub.com/tag/going-1008806" style="font-weight:bold;" target="_blank" title="Click to know more about GOING">GOING</a> <a href="https://interviewquestions.tuteehub.com/tag/concern-25789" style="font-weight:bold;" target="_blank" title="Click to know more about CONCERN">CONCERN</a> Concept </p><a href="https://interviewquestions.tuteehub.com/tag/answer-15557" style="font-weight:bold;" target="_blank" title="Click to know more about ANSWER">ANSWER</a> :B</body></html> | |
| 1779. |
Drawings Account is a Personal Account. |
| Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> : <a href="https://interviewquestions.tuteehub.com/tag/true-713260" style="font-weight:bold;" target="_blank" title="Click to know more about TRUE">TRUE</a></body></html> | |
| 1780. |
Drawing by the proprietor in cash is debited to drawing account and credited to cash account .Is the accounting entry correct? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<a href="https://interviewquestions.tuteehub.com/tag/yes-749457" style="font-weight:bold;" target="_blank" title="Click to know more about YES">YES</a> it is <a href="https://interviewquestions.tuteehub.com/tag/correct-409949" style="font-weight:bold;" target="_blank" title="Click to know more about CORRECT">CORRECT</a></body></html> | |
| 1781. |
Draw the Balance Sheet of R. Kumar as at 31st March, 2019 from the following information in the order of permanence: Cash in Hand Rs 11,200, Sundry Creditors Rs 28,800, Bills Payable Rs 3,500, Bills Receivable Rs 5,300, Sundry Debtors Rs 18,000 Machinery as on 1st April, 2018 Rs 85,000 and Depreciation provided for the year Rs 8,500, Furniture and Fixtures as on 1st April, 2018 Rs 21,000 and Depreciation provided for the year Rs 2,100, Closing Stock Rs 15,400. Proprietor's Capital Account Rs 90,000, His drawing during the year Rs 8,000. Net Profit as per Profit and Loss Account Rs 31,000 |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XI_C18_E01_021_S01.png" width="80%"/></body></html> | |
| 1782. |
Drawings Account is a |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/personal-590834" style="font-weight:bold;" target="_blank" title="Click to know more about PERSONAL">PERSONAL</a> <a href="https://interviewquestions.tuteehub.com/tag/account-25640" style="font-weight:bold;" target="_blank" title="Click to know more about ACCOUNT">ACCOUNT</a> <br/><a href="https://interviewquestions.tuteehub.com/tag/real-1178490" style="font-weight:bold;" target="_blank" title="Click to know more about REAL">REAL</a> Account <br/><a href="https://interviewquestions.tuteehub.com/tag/nominal-571419" style="font-weight:bold;" target="_blank" title="Click to know more about NOMINAL">NOMINAL</a> Account <br/><a href="https://interviewquestions.tuteehub.com/tag/none-580659" style="font-weight:bold;" target="_blank" title="Click to know more about NONE">NONE</a> of these</p>Solution :Personal Account</body></html> | |
| 1783. |
Dr. Sanjeet Saksena started his clinic in Hamdard Nagar, New Delhi, under the name, Get Well Clinic introducing ₹ 5,50,000 as capital. He deposited the cheque in bank account opened in the name ofGet well Clinic in Axis Bank. Enclosed herwith are the original papres relating to his transactions and other information related to teh profession/business of the month of August, 2018 CGST and SGST @ 6% each is levied on medicines dispensed. Cash recived from Medical Consultancy Services and Sales of Medicine (expect the amount of GST Collected ) is deposited into bank on the next working day. Total Salary of staff is ₹ 40,000per month that is payable on the 3rd of the next month. Depreciation is charged on machinery @ 10% p.a. and on Furniture and Fixtures @20% p.a. Stock of Medicine at the end of the month is ₹ 16,800. Books are maintained following accrual basis of accounting. All the bills were paid through cheque on the same day. Source documents of the transactions are produced below for processing through various stages of the book -keeping cycle. Prepare accounting voucher for each financial transaction and enter , the transaction in the Journal, post them into Ledger, balance the accounts, prepare Bank Reconciliation Statement, draw up a Trail Balance and prepare the final accounts to assess the progress made by Dr. Sanjeet Saksena during the first month. |
| Answer» <html><body><p></p>Solution :<img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XI_PW_S01_002_S01.png" width="80%"/> <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XI_PW_S01_002_S02.png" width="80%"/> <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XI_PW_S01_002_S03.png" width="80%"/> <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XI_PW_S01_002_S04.png" width="80%"/> <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XI_PW_S01_002_S05.png" width="80%"/> <br/> For the purpose of convience the voucher is prepared for the daily Medical Consultancy Services as per Patient's Register. <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XI_PW_S01_002_S06.png" width="80%"/> <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XI_PW_S01_002_S07.png" width="80%"/> <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XI_PW_S01_002_S08.png" width="80%"/> <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XI_PW_S01_002_S09.png" width="80%"/> <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XI_PW_S01_002_S10.png" width="80%"/> <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XI_PW_S01_002_S11.png" width="80%"/> <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XI_PW_S01_002_S12.png" width="80%"/> <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XI_PW_S01_002_S13.png" width="80%"/> <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XI_PW_S01_002_S14.png" width="80%"/> <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XI_PW_S01_002_S15.png" width="80%"/> <br/> Before preparing the Trial Balance and the Financial Statment we will <a href="https://interviewquestions.tuteehub.com/tag/prepare-604982" style="font-weight:bold;" target="_blank" title="Click to know more about PREPARE">PREPARE</a> Bank Reconciliation Statement.<br/> To Reconcile the Cash Book with Bank Statement following four steps are taken in practical.<br/> Step 1: Tick the items in Bank Statement. Entries have been ticked in the Bank column in Cash Book . <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XI_PW_S01_002_S16.png" width="80%"/> <br/> The unticked item on the bank statement indicate items that have gone through the Bank Account but have not been yet recorded in <a href="https://interviewquestions.tuteehub.com/tag/get-11812" style="font-weight:bold;" target="_blank" title="Click to know more about GET">GET</a> Well Clinic Account. However, transaction dated 29th August, 2018 for amount 54,200 is wrongly debited in the bank statement. <br/> In Step 2. we will update the Cash Book with the correct entries that is in Bank Statement but it is not recorded in Cash Book yet. <br/> Step 2: Corrected Cash Book with Bank Column Only <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XI_PW_S01_002_S17.png" width="80%"/> <br/> A new Account with Bank charges will be <a href="https://interviewquestions.tuteehub.com/tag/opened-2895201" style="font-weight:bold;" target="_blank" title="Click to know more about OPENED">OPENED</a>. That is opened in the ledger book above. The balance of the Bank column now stand ₹ 4,19,820. It still differs from Pass Book balance of ₹3,61,820. <br/> Step <a href="https://interviewquestions.tuteehub.com/tag/3-301577" style="font-weight:bold;" target="_blank" title="Click to know more about 3">3</a>: Identify the remaining unticked item in the cash book and the wrong item in the pass book. These are :<br/> `{:("Deposit","August 29,2018","Wrongly Debited into Pass Book ","54,200"),("Payment","August 16,2018","Cheque <a href="https://interviewquestions.tuteehub.com/tag/issued-2752319" style="font-weight:bold;" target="_blank" title="Click to know more about ISSUED">ISSUED</a> to Sumit Furniture","50,400"):}` <br/> Step 4. Prepare the Bank Reconciliation Statement<br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XI_PW_S01_002_S18.png" width="80%"/> <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XI_PW_S01_002_S19.png" width="80%"/></body></html> | |
| 1784. |
Dravid's Trial Balance gives following information : Discount Allowed Rs. 500, Provision for Discount on Debtor Rs. 1,100. Provision for Discount on Debtor should be Rs. 1,800 at the end year.Amount that should be debited to the Profit & Loss Account is |
| Answer» <html><body><p><a href="https://interviewquestions.tuteehub.com/tag/rs-625947" style="font-weight:bold;" target="_blank" title="Click to know more about RS">RS</a>. 1,200<br/>Rs. 3,200<br/>Rs. 700<br/>Rs. 2,200</p>Answer :A</body></html> | |
| 1785. |
Dr. Arvind Kishore, a homeopath doctor in practice has been advised by his Accountant to maintain his accounts on Accrual Basis instead of the presently followed Cash Basis of Accounting. Do you agree with the advice of the Accountant ? Give reasons. |
| Answer» <html><body><p></p>Solution :No, I do not <a href="https://interviewquestions.tuteehub.com/tag/agree-2404370" style="font-weight:bold;" target="_blank" title="Click to know more about AGREE">AGREE</a>. Cash Basis of <a href="https://interviewquestions.tuteehub.com/tag/accounting-637" style="font-weight:bold;" target="_blank" title="Click to know more about ACCOUNTING">ACCOUNTING</a> is more appropriate for Dr. Arvind Kishore because a medical practitioner receives his fee immediatelyafter <a href="https://interviewquestions.tuteehub.com/tag/giving-1007655" style="font-weight:bold;" target="_blank" title="Click to know more about GIVING">GIVING</a> consultancy .</body></html> | |
| 1786. |
Double entry accounting requires that : (i) All transactions that create debits to asset accounts must create credits to liability or capital accounts, (ii) A transaction that requires a debit to a liability account require a credit to an asset account, (iii) Every transaction must be recorded with equal debits equal total credits. |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :(<a href="https://interviewquestions.tuteehub.com/tag/iii-497983" style="font-weight:bold;" target="_blank" title="Click to know more about III">III</a>)</body></html> | |
| 1787. |
Dr. stand for ______ and Cr. Stand for _______ |
| Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<a href="https://interviewquestions.tuteehub.com/tag/debit-945425" style="font-weight:bold;" target="_blank" title="Click to know more about DEBIT">DEBIT</a>, <a href="https://interviewquestions.tuteehub.com/tag/credit-938523" style="font-weight:bold;" target="_blank" title="Click to know more about CREDIT">CREDIT</a></body></html> | |
| 1788. |
Double column cash book records transaction relating to ………and ………. |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<a href="https://interviewquestions.tuteehub.com/tag/cash-910172" style="font-weight:bold;" target="_blank" title="Click to know more about CASH">CASH</a>, <a href="https://interviewquestions.tuteehub.com/tag/bank-13461" style="font-weight:bold;" target="_blank" title="Click to know more about BANK">BANK</a></body></html> | |
| 1789. |
Does Profit and Loss Account show the financial position of the enterprise ? |
| Answer» <html><body><p></p>Solution :Profit and <a href="https://interviewquestions.tuteehub.com/tag/loss-1079380" style="font-weight:bold;" target="_blank" title="Click to know more about LOSS">LOSS</a> Account does not show the financial position of an enterprise. It <a href="https://interviewquestions.tuteehub.com/tag/shows-1206590" style="font-weight:bold;" target="_blank" title="Click to know more about SHOWS">SHOWS</a> the financial performance, i.e., net profit <a href="https://interviewquestions.tuteehub.com/tag/earned-7273289" style="font-weight:bold;" target="_blank" title="Click to know more about EARNED">EARNED</a> or net loss incurred by an enterprise during a particular period.</body></html> | |
| 1790. |
Does debit always mean increase and credit always mean decrease? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :No</body></html> | |
| 1791. |
Does cash basis of accounting violates GAAP? If yes, how? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :Yes. It does not follow matching <a href="https://interviewquestions.tuteehub.com/tag/principle-1166255" style="font-weight:bold;" target="_blank" title="Click to know more about PRINCIPLE">PRINCIPLE</a> and <a href="https://interviewquestions.tuteehub.com/tag/accrual-847173" style="font-weight:bold;" target="_blank" title="Click to know more about ACCRUAL">ACCRUAL</a> concept.</body></html> | |
| 1792. |
Do you think that invoice is a source document? |
| Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<a href="https://interviewquestions.tuteehub.com/tag/yes-749457" style="font-weight:bold;" target="_blank" title="Click to know more about YES">YES</a>.</body></html> | |
| 1793. |
Does cash basis of accounting violates GAAP ? If Yes, how? |
| Answer» <html><body><p></p>Solution :Yes, <a href="https://interviewquestions.tuteehub.com/tag/cash-910172" style="font-weight:bold;" target="_blank" title="Click to know more about CASH">CASH</a> basis of accounting <a href="https://interviewquestions.tuteehub.com/tag/violates-7721938" style="font-weight:bold;" target="_blank" title="Click to know more about VIOLATES">VIOLATES</a> <a href="https://interviewquestions.tuteehub.com/tag/gaap-467699" style="font-weight:bold;" target="_blank" title="Click to know more about GAAP">GAAP</a> as it does not follow <a href="https://interviewquestions.tuteehub.com/tag/matching-11928" style="font-weight:bold;" target="_blank" title="Click to know more about MATCHING">MATCHING</a> principle and accrual concept.</body></html> | |
| 1794. |
Do you think that the Convention of conversation results in creation of secret reserves? |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/yes-749457" style="font-weight:bold;" target="_blank" title="Click to know more about YES">YES</a> convention of conservation willhave two <a href="https://interviewquestions.tuteehub.com/tag/effects-449163" style="font-weight:bold;" target="_blank" title="Click to know more about EFFECTS">EFFECTS</a> : (i) Profit and <a href="https://interviewquestions.tuteehub.com/tag/loss-1079380" style="font-weight:bold;" target="_blank" title="Click to know more about LOSS">LOSS</a> Account discloses lower <a href="https://interviewquestions.tuteehub.com/tag/profits-1168748" style="font-weight:bold;" target="_blank" title="Click to know more about PROFITS">PROFITS</a> in comparison to the <a href="https://interviewquestions.tuteehub.com/tag/actual-361632" style="font-weight:bold;" target="_blank" title="Click to know more about ACTUAL">ACTUAL</a> profits. (ii) Balance Sheet will disclose understatement of assets and overstatement of liabilities. These two effects result in creation of secret reserves.</body></html> | |
| 1795. |
Do you think that a Provision is a charge against profit? |
| Answer» <html><body><p></p>Solution :Yes, a Provision is a <a href="https://interviewquestions.tuteehub.com/tag/charge-914384" style="font-weight:bold;" target="_blank" title="Click to know more about CHARGE">CHARGE</a> against profit for the purpoes of providing for any <a href="https://interviewquestions.tuteehub.com/tag/liability-541457" style="font-weight:bold;" target="_blank" title="Click to know more about LIABILITY">LIABILITY</a> or <a href="https://interviewquestions.tuteehub.com/tag/loss-1079380" style="font-weight:bold;" target="_blank" title="Click to know more about LOSS">LOSS</a>.</body></html> | |
| 1796. |
Do you think thata transcationcan break theAcountingEquation? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :No, a <a href="https://interviewquestions.tuteehub.com/tag/transactions-18175" style="font-weight:bold;" target="_blank" title="Click to know more about TRANSACTIONS">TRANSACTIONS</a> can only changetheAccountingEquationsbut cannot <a href="https://interviewquestions.tuteehub.com/tag/break-903849" style="font-weight:bold;" target="_blank" title="Click to know more about BREAK">BREAK</a> it.</body></html> | |
| 1797. |
Do you agree that a Sales Book is used to record invoices issued to customers in respect of goods sold on credit and not cash ? Give reasons. |
| Answer» <html><body><p></p>Solution :Yes. Sales can be <a href="https://interviewquestions.tuteehub.com/tag/either-7265046" style="font-weight:bold;" target="_blank" title="Click to know more about EITHER">EITHER</a> in cash or on credit . Credit sales are recorded in theSales <a href="https://interviewquestions.tuteehub.com/tag/book-900767" style="font-weight:bold;" target="_blank" title="Click to know more about BOOK">BOOK</a> and cash sales in the Cash Book. The <a href="https://interviewquestions.tuteehub.com/tag/source-1219297" style="font-weight:bold;" target="_blank" title="Click to know more about SOURCE">SOURCE</a> documents for <a href="https://interviewquestions.tuteehub.com/tag/recording-1180449" style="font-weight:bold;" target="_blank" title="Click to know more about RECORDING">RECORDING</a> entries in the Sales Book are invoices or <a href="https://interviewquestions.tuteehub.com/tag/bills-897480" style="font-weight:bold;" target="_blank" title="Click to know more about BILLS">BILLS</a> issued to customers. Entries are recorded with the net amount of the invoice after deducting trade discount.</body></html> | |
| 1798. |
Do you agree that Depreciation is a permanent, continuing and gradual reduction in the book value of fixed asset? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<a href="https://interviewquestions.tuteehub.com/tag/yes-749457" style="font-weight:bold;" target="_blank" title="Click to know more about YES">YES</a>, Depreciation is permanent, <a href="https://interviewquestions.tuteehub.com/tag/continuing-7274119" style="font-weight:bold;" target="_blank" title="Click to know more about CONTINUING">CONTINUING</a> and gradual shrinkage in the book value of a <a href="https://interviewquestions.tuteehub.com/tag/fixed-457597" style="font-weight:bold;" target="_blank" title="Click to know more about FIXED">FIXED</a> asset.</body></html> | |
| 1799. |
Do you agree that Liabilities side of the balance sheet represetnn credit balances? |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :Yes <a href="https://interviewquestions.tuteehub.com/tag/liability-541457" style="font-weight:bold;" target="_blank" title="Click to know more about LIABILITY">LIABILITY</a> <a href="https://interviewquestions.tuteehub.com/tag/accounts-14064" style="font-weight:bold;" target="_blank" title="Click to know more about ACCOUNTS">ACCOUNTS</a> always have credit balancies</body></html> | |
| 1800. |
Dividendequalisationreserve isan example of generalreserve. |
| Answer» <html><body><p><br/></p><a href="https://interviewquestions.tuteehub.com/tag/answer-15557" style="font-weight:bold;" target="_blank" title="Click to know more about ANSWER">ANSWER</a> :<a href="https://interviewquestions.tuteehub.com/tag/false-459184" style="font-weight:bold;" target="_blank" title="Click to know more about FALSE">FALSE</a></body></html> | |