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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.
| 1801. |
Distinguish between statement of affairs and balance sheet. |
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| 1802. |
Distinguish Trade Discount from Cash Discount. (Two points) |
| Answer» Solution :Two POINTS of DIFFERENCES between Trade Discount and Cash Discount are:(i) Trade Discountis allowed to encourage large purchases whereas Cash Discount is allowed to encourage prompt payment.(ii) Trade Discount enables the retailer to SELL goods at list PRICE and earn better profit. Cash Discount will improve thecash flow. | |
| 1803. |
Distinguish between revenue expenditure and capital expenditure. |
| Answer» SOLUTION :If the benefit of an expenditure is exhausted within a year, it is treated as REVENUE expenditure (ALSO called expense). Onthe other HAND, if the benefit of an expenditure lasts for more than a year it is treated as capital expenditure (also called an asset). | |
| 1804. |
Distinguish between profit and gain. |
| Answer» Solution :Profit is theexcess of revenues over EXPENSES during an ACCOUNTING PERIOD. It is the result of business TRANSACTIONS which are of REGULAR nature whereas gain arises from events or transactions which are incidental to business such as saleof a fixed asset or winning a lottery prize. | |
| 1805. |
DistinguishbetweenHardwareandSoftware . |
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| 1806. |
Distinguish between fixed assets andcurrent assets. |
| Answer» Solution :Fixed assets REFER to those assets which are HELD for cotinued use in thebusiness and arenot meantforresalewhereascurrent assets are either MEANT forsale or which are EXPECTED to be converted into CASH within one year. | |
| 1807. |
Distinguish between expenses andlosses. |
| Answer» Solution :If the BENEFIT of an EXPENDITURE is exhausted WITHIN a year it is called expense whereas EXCESS of expenses of a PERIOD over its related revenues is termed as loss. | |
| 1808. |
Distinguish between expenses and expenditure. |
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Answer» Solution :Expense is thecost incurred in PRODUCING andselling the goods and services. THUS it includes cost of goods sold and amount paid for salaries, rent,commission eic. On the other hand, expenditure is a wider TERM which includesexpenses also. Expenditure is the amount spent for acquiring ASSETS, goods andservices. |
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| 1809. |
Distinguish between debtors and creditors. |
| Answer» Solution :DEBTORS are THEPERSONS who owe an AMOUNT to theenterprise for the GOODS sold or service to them on credit whereas creditors are thepersons who ARETO be paid an amount by theenterprise for buying from them goods or serviceson credit. | |
| 1810. |
Distinguish between capital and revenue expenditure and state whether the following statements are items of capital or revenue expenditure : (a) Expenditure incurred on repairs and whitewashing at the time of purchase of an old building in order to make it usable. (b) Expenditure incurred to provide one more exit in a cinema hall in compliance with a government order. (a) Registration fees paid at the time of purchase of a building (b) Expenditure incurred in the maintenance of a tea garden which will produce tea after four years. (c) Depreciation charged on a plant. (d) The expenditure incurred in erecting a platform on which a machine will be fixed. (e) Advertising expenditure, the benefits of which will last for four years. |
| Answer» SOLUTION :N/a | |
| 1811. |
Distinguish between Cash Basis and Accrual Basis of Accounting. (two points) |
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Answer» Solution :(i) Both cash and credit transactions are recorded under the Accrual System of Accounting. Under the Cash System of Accounting only cash transactions are recorded. (II) Capital and revenue ITEMS are DISTINGUISHED under the Accrual System of Accounting. Under the Cash System of Accounting no such DISTINCTION is MADE. |
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| 1812. |
Discuss the principle based on the premise "do not anticipate profits but provide for all losses." |
| Answer» SOLUTION :DISCUSS the CONVENTION of PRUDENCE. | |
| 1813. |
Discuss the need of preparing a balance sheet. |
| Answer» SOLUTION :N/a | |
| 1814. |
Discount Received has |
| Answer» Solution :Credit balance | |
| 1815. |
Discounting charges are paid |
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Answer» by the DRAWER |
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| 1816. |
Discount allowed' is classified as a |
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Answer» REAL ACCOUNT |
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| 1817. |
Direct collections received by the bank on behalf of the customers would increase the balance as per the bank passbook when compared to the balance as per the cash book. |
| Answer» SOLUTION :T | |
| 1818. |
Disagreement of Trial Balance indicates that an ______ has been committed. |
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| 1819. |
Dilip, proprietor of Ultra Sales. Had written off rs 20,000 receivable from Jatin as bad debts, he was unable to pay. In the current year. Dilip received rs 5,000 from Jatin. Pass Journal entry and show how it will be shown in the profit and Loss account. |
Answer» SOLUTION : 
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| 1820. |
Differentiate between Revenue Reserved and Capital Reserve on the basis of source. |
| Answer» SOLUTION :REVENUE Reserves is created out of BUSINESS profits WHEREASA Capital Reserve is created out of capital profits. | |
| 1821. |
Differentiate betweenreserveand provisionon thebasisofcharge or appropriation. |
| Answer» SOLUTION :Reserveis anappropriation ofprofitwhereasprovision ischarge againstprofit. | |
| 1822. |
Difference in Trial Balance is debited or credited to the Suspense Account , which is transferred to Profit and Loss Account. |
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| 1823. |
Differentiate between Assets andGoods on thebasis of any two points. |
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Answer» SOLUTION :(i) Goods are purchased for resale WHEREAS assets are HELD for CONTINUED use in thebusiness. (ii) Goods are alwasys tangible i.e., they can be SEEN and touched whereas assets may be both tangible andintangible. |
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| 1824. |
Determine Total Sales and Total Purchases from the following information: |{:(,"Rs."),("Opening Debtors","11,400"),("Cash received","48,300"),("Dicount allowed","1,500"),("Bad Debts written off","300"),("Sales Return","800"),("Bills Receivable received","6,100"),("Closing Debtors","10,800"):}||{:(,"Rs."),("Opening Creditors","6,800"),("Cash Paid to Creditors","25,100"),("Discount recevied","300"),("Purchases return","600"),("Bills Payable issued","3,100"),("Closing Creditors","5,400"),(,):}| Additional Information : Cash Sales - Rs. 1,00,000 and Cash Pruchases Rs.- 50,000. |
Answer» SOLUTION :CALCULATION of Credit SALES:  Total Sales = CASH Sales + Credit Sales = Rs. 1,00,000 + Rs. 56,400 = Rs. 1,56,400. Calculation of Total Pruchases :  Total Purchases + Credit Purchases = Rs. 50,000 + Rs. 27,700 = Rs. 77,700. |
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| 1825. |
Develop anAccounting Equation from the following transactions : |
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| 1826. |
Develop anAccounting Equation from the following transactions : |
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| 1827. |
Determine the missing values of the Cash Book with Bank Column of Yashika on the basis of following transactions: {:(2018,,,Rs.,|,2018,,,Rs.),("Sept.",1,"Cash in Hand",7","500,|,"Sept",15,"Good Purchased and Paid by Cheque",2","000),(,,"Bank Overdraft",3","500,|,"sept",20,"Paid Rent",500),("Sept",2,"Paid Wages",200,|,"Sept",25,"Drew from bank for personal use",400),("Sept",5,"Cash Sales",7","000,|,"Sept",30,"Drew from bank for personal use",1000),("Sept",10,"Cash Deposited inot Bank",4","000,|,,,,):} |
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| 1828. |
Determine the missing values of the Cash Book with Bank Column of Poushli on the basis of following transactions: {:(2019,,,Rs.),("March",1,"Cash in Hand",2","20","000),(,,"Cash at Bank",60","000),("March",3,"Deposited in Bank",80","000),("March",4,"Good purchased and issued a cheque for the same",34","000),("March",7,"Cash purchases",16","000),("March",8,"Paid Commission by cheque",12","000),("March",9,"Withdrew from bank for personal use",2","500),("March",12,"Received from Ved in full settlement of his account of Rs.60,000, half of the amount was deposited into bank on the same day",),("March",16,"Interest collected by Bank",14","000),("March",20,"Cash Sales",42","000),("March",22,"Goods sold to Mona & Co.",40","000),("March",23,"Received cheque from Mona & Co. after discount of" Rs.300,36","000),("March",26,"Deposited to cheque received from Mona & Co.into Back",35","700):} |
Answer» Solution : Notes: 1. Goods sold to Mona & Co. on 22ND March, 2019 is not recorded in Case BOOK, it being a credit sales. 2. Cheque received from Mona & Co. for Rs. 35,700 on 23rd March, 2019 will be recorded in the joumal Proper. `{:("Cheque in Hand A/C",...Dr,Rs.35","700),("Discount ALLOWED A/c",...Dr,Rs.300),("To mona & Co.",,Rs.36","000):}` When the cheque is deposited into BANK (26th March, 2019) it will be recorded in the Bank column on the DEBIT side of Cash Book. |
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| 1829. |
Determine the missing amounts on the basis of the Accounting Equation : {:("Asset","Liabilities","Capital"),("(a)______","₹ 30,000","₹ 70,000"),("₹ 1,50,000","₹ 30,000","_____"),("(c) ₹ 1,75,000","_____","₹ 1,00,000"):} |
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Answer» ( C) ₹ 75,000 |
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| 1830. |
Determine the missing information in the following books of Drawer and Drawee : |
Answer» Solution :The PAYMENT MADE by B on 4th March, 2019 i.e. a month before the DUE date. Hence, AMOUNT of REBATE will be ₹( i.e. ` ₹ 10,000 xx 6//100 xx 1//12`)
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| 1831. |
Determine the missing information in the following books of Drawer and Drawee : |
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Answer» SOLUTION :Discounting chatges , i.e. ₹ ` 30,000 XX 12//100 xx 3//12 = ₹ 900` THUS , CASH received = ₹ 30,000 - ₹ 900 = ₹ 29, 100. 
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| 1832. |
Determine the missing amounts on the basis of the Accounting Equation : {:("Asset",=,"Liabilities",+,"Capital"),("(a)₹ 20,000",=,"₹ 15,000",+,"_____"),("(b)_____",=,"₹ 5,000",+,"₹ 10,000"),("(c)₹ 10,000",=,"_____",+,"₹ 8,000"):} |
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| 1833. |
Determinethemissingamountson the basis ofthe AccounitngEquation: |
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| 1834. |
Determinethemissingamountson the basis ofthe AccounitngEquation: |
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| 1835. |
Determine the appropriate missing value (figure) by preparing the Total Creditors Account from the following information: |{:(,"Rs."),("Cash Purchases","17,000"),("Creditors as on 1st April, 2018","8,000"),("Cash paid to Creditors","31,000"):}||{:(,"Rs."),("Purchases Return","1,000"),("Creditors as on 31st March, 2019","13,400"),(,):}| |
Answer» SOLUTION :
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| 1836. |
Determine, if the following are Assets, Liabilities, Capital, Revenue from Operations, Revenues, Expenses or none (a) Machinery, (b) Purchases, (c) Stock, (d) Creditors, (e) Capital, (f) Salary paid to a clerk, (g) Sales, (h) Furniture, (i) Interset received and (j) Rent paid |
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| 1837. |
Deprication method is adopted in the case of |
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Answer» Wasting ASSETS like MINE and quarries |
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| 1839. |
Depreciation must be charged so as to ascertain true profit or loss of the business |
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| 1840. |
Depreciation provides fund for ________ |
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| 1841. |
Depreciation provides fund for replacement |
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| 1846. |
Depreciation is debited to Profit and Loss Account and deducted from the fixed assets in the Balance Sheet. |
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