2427 + Interview Questions in Accounts in Class 11 Page 4 InterviewSolution

151.	Which of the following error will not affect the trial balance :
Answer» WRONG BALANCING of an account Wrong TOTALLING of an account Omission of an account from the TRIAL balance Writing an amount in the wrong account but on the correct side. Answer :D

Discussion

152.	Which of the followingequationsis correct ?
Answer» ASSESTS + CAPITAL = LIABILITIES ASSETS- Liabilities = Capital Assets + Liabilities= Capital NONE of these. Solution :Assets- Liabilities = Capital

Discussion

153.	Which of the following are goods ?
Answer» Machines manufactured for sale Furniture PURCHASED for sale Books and STATIONERY purchased by a BOOK seller All of the above Solution :All of the above

Discussion

154.	Which of the following are not Errors of Principle and why:
Answer» Vehicle expenses entered in Vehicles Account, Purchase of machinery entered in Purchases Account, Sales of Rs. 2.500 ot Bishan completely omitted from books, Sales to A. Kumar entered in A. Singh's Account? Solution :(III) and (iv) are not ERRORS of principle because, (iii) has not been recorded in the books thus, is an ERROR of omission and (iv) has been recorded in a wrong account with the CORRECT amount.

Discussion

155.	Which of the following answers properly classifies these commonly used accounts: (1) Building (2) Wages (3) Credit sales (4) Credit purchases (5) Electricity charges due but not yet paid (outstanding electricity bills) (6) Godown rent paid in advance (prepaid godown rent) (7) Sales (8) Fresh capital introduced (9) Drawings (10) Discount paid
Answer» SOLUTION :II

Discussion

156.	Which of the following accounts will be credited on giving cash donation ?
Answer» CASH A/c Donation A/C Purchase A/c None of these Solution :Cash A/c

Discussion

157.	Which of the following accounts will be credited on giving cash donation?
Answer» CASH A/c. Donation A/c. Purchases A/c. None of these. Solution :Cash A/c.

Discussion

158.	Which of following errors will be rectified through suspense account:
Answer» Sales return BOOK undercast by  1,000. Sales return by MADHU  1,000 not recorded. Sales return by Madhu RS 1,000. recorded as  100. Sales return by Madhu  1,000 recorded through PURCHASES returns book SOLUTION : (a)

Discussion

159.	Which of the following accounts always shows a debit balance :
Answer» CAPITAL Account Sales Account Purchases RETURN Account None of the above Answer :D

Discussion

160.	Which method of Depreciation assumes that an asset should be depreciated more in the earlier years and less in the later years of use?
Answer» SOLUTION :Diminishing BALANCE Method or Written Down VALUE Method of Depreciation assumes that the asset should be depreciated more in the earlier YEARS and less in the later years of use.

Discussion

161.	Which of the following accounts has a credit balance ?
Answer» CARRIAGE INWARD Discount Received Carriage Account Discount ALLOWED Solution :Discount Received

Discussion

162.	Which item shows a debit balance in the Trial Balance ?
Answer» PURCHASE Return Salary outstanding Sales Prepaid Expense Answer :D

Discussion

163.	Which item is shown as debit balance in the Trial Balance
Answer» CASH in Hand Rent Outstanding Creditors. Bank Overdraft. Answer :A

Discussion

164.	Which Generally Accepted Accounting Principle (GAAP) is followed and which oneis ignored while preparing the accounts under Single Entry System?
Answer» Solution :Money MEASUREMENT CONCEPT is FOLLOWED and Dual Aspect Concept is ignored in SINGLE Entry SystemSystem of accounting.

Discussion

165.	Which fo the following is not a part of double Entry System ?
Answer» CASH BOOK Trial Balance Journal Bank Reconciliation Statement Answer :D

Discussion

166.	Which is the last step of accounting as a process of information?
Answer» RECORDING the transaction Preparation of FINANCIAL statements COMMUNICATION of INFORMATION Analysis and INTERPRETATION of information. Solution :Communication of information

Discussion

167.	Which external user of accounting information is most intersted in knowing the long-term solvency position of the firm?
Answer» Employees Management BANK and FINANCIAL INSTITUTIONS Researchers Solution :Bank and Financial Institutions

Discussion

168.	Which financial statements are prepared under Ind -AS?
Answer» Solution :FINANCIAL Statements prepared under IFRS includs : (i)STATEMENT of Financial Position , (ii) Statement of Comprehensive Income , (iii) Statement of Changes in Equity, (iv) Statement of Cash FLOW , and (v) Notes and Significant ACCOUNTING Policies.

Discussion

169.	Which financial statements are prepared under IFRS?
Answer» SOLUTION :Financial Statements prepared under IFRS includs : (i)Statement of Financial Position , (ii) Statement of Comprehensive Income , (iii) Statement of CHANGES in Equity, (IV) Statement of Cash Flow , and (V) Notes and Significant Accounting Policies.

Discussion

170.	Which concept , (principle) assumes that a business enterprise will not be liquidated in the near future?
Answer» SOLUTION :GOING CONCERN CONCEPT.

Discussion

171.	Which balance of the bank column in the Cash Book signifies bank overdraft?
Answer» Solution :Credit Balance in the BANK COLUMN of the Cash Book SIGNIFIES bank overdraft.

Discussion

172.	Which basis of accounting is recognised under the Companies Act, 2013.
Answer» SOLUTION :ACCRUAL BASIS of ACCOUNTING.

Discussion

173.	Which balances are called 'Overdraft' of Cash Book and Pass Book ?
Answer» SOLUTION :CASH BOOK Cr. Balance and PASS Book Dr. Balance.

Discussion

174.	Which accounting principle requires that life of a business be broken into smaller parts?
Answer» SOLUTION :ACCOUNTING PERIOD PRINCIPLE.

Discussion

175.	Which accounting principle states thatall anticipated losses should be recorded but all anticipated profits should be ignored?
Answer» SOLUTION :CONVENTION of PRUDENCE.

Discussion

176.	Which accounting equation is incorrect cut of the following?
Answer» LIABILITIES = ASSETS-CAPITAL. Assets = Liabilities - Capital. Capital = ASSETE - Liabilities. Assets = Liabilities + Capital. Solution :Assets = Liabilities - Capital.

Discussion

177.	Which accounting principle requires that personal expenses of proprietor or parthers should be debited to Drawings Account ?
Answer» SOLUTION :ACCOUNTING ENTITY or BUSINESS Entity PRINCIPLE.

Discussion

178.	Which account should be debited for creating provision for doubtful debts?
Answer» SOLUTION :PROFIT and Loss ACCOUNT should be depbited for PROVISION for doubtful debts.

Discussion

179.	Which account should be debited, if wages are paid for installation of a machine ?
Answer» Solution :MACHINERY ACCOUNT should be DEBITED for WAGES paid for installation of machinery.

Discussion

180.	Wherewill youtransferprofiton saleofa fixedasset ?
Answer» Solution :PROFITON saleof a fixed asset ISA capitalprofit and, thereforeit will be TRANSFERRED to CapitalReserve.

Discussion

181.	Where will you record "Rent unpaid " in the Cash Book ?
Answer» SOLUTION :No ENTRY

Discussion

182.	When you proceed to reconcile then Bank Account startingwith Credit CashBook balance how will you deal with the transactions given n Q .8 ?
Answer» Solution :(i) CHEQUE issued butnotyet PRESENTED for PAYMENT are DEDUCTED because bank showsloweroverdrawn balance (ii) Cheques deposited but nor cleard are addedbecause bank shows higher overdrawn balance (iii) Bank charges are added because bank shows higher overdrawn balance (iv) INTRESTED allowed is deducted because bank shwos lower overdrawn balance

Discussion

183.	When total of debit side of an account exceeds the total of its credit side, the account is said to have
Answer» CREDIT BALANCE DEBIT balance debit as WELL as credit balance None of the above. SOLUTION :Debit balance

Discussion

184.	When youproced to reconcile the Bank Account starting with Debit Cash Book balance, how, is the following dealt with and why? (i) Cheques issued but not with any why? (ii) Cheques deposited but not yet credtied. (iii) Bank charges charged by the bank not recorded in the Cas Book. (iv)Interest allowed by the bank not r ecorded inthe Cash Book.
Answer» Solution :(i) Cheques issued but not yetpresente for payment are ADDED because the bank will show higher balance since the cheque have not been paid (ii) cheques deposted butnot CREDITED because the bank will show lower balance as the cheques as the cheques have not been realised by the bank (iii) Bank chargesare deductedbecause the bank has already crediterd thedebitedthe account and THUS, Cash BOOK shows higher balance. (iv)INTEREST allowed is added because the bankhasalready credited the account and thus, Cash Book showslower balance

Discussion

185.	(When Provision for Doubtful Debts is not given in the Trial Balance).Following is the extract form the Trial Balance of Dass as at 31st March, 2019: Additional Information : Create a Provision for Doutful Debts @5% on Sundry Debtors. Pass neccessary entry and show these items in the Profit and Loss Account and Balance sheet.
Answer» Solution : It should be NOTED that the SUNDRY DEBTORS Account will not be affected by creating PROVISION for Doubtful Debts. It means provision does not amount receivable FORM debtors .

Discussion

186.	When payments made by the bank as per the standing instructions of the customer, the balance in the passbook will be more when compared to the cash book.
Answer» SOLUTION :F

Discussion

187.	When pass Book shows a debit balance,it means ______
Answer» SOLUTION :OVERDRAFT as PER PASS BOOK .

Discussion

188.	When market value of an asset is higher than book value, depreciation is not charged.
Answer» SOLUTION :F

Discussion

189.	When Pass Book shows a credit balance,it means ______
Answer» Solution :BALANCE LYING with BANK i.e., amount DUE from the bank

Discussion

190.	When is Closing Stock shown in the Trail Balance?
Answer» Solution :Closing STOCK is shown in the Trial Balance when the adjusting entry for Closing Stock is PASSED in the books of account. It MEANS that closing stock is ADJUSTED against the purchases.

Discussion

191.	When is Capital Account credited ?
Answer» Solution :Capital ACCOUNT is CREDITED when the proprietor introduces further capital or with the AMOUNT of profit .

Discussion

192.	Whenis Capital Account debited ?
Answer» SOLUTION :Capital ACCOUNT is debited when the proprietor makes a DRAWINGS or with the AMOUNT of loss .

Discussion

193.	When GST is not charged by the seller of Goods and / or Services but is paid into the Government Account directly by the purchaser of Goods and / or Services, it is termed as _________
Answer» SOLUTION :REVERSE CHARGE

Discussion

194.	When goods are sold on credit the seller prepares an _______
Answer» SOLUTION :INVOICE

Discussion

195.	When goods are sold on credit the seller prepares
Answer» CASH MEMO. INVOICE. ACCOUNTING Voucher. None of these. Solution :Invoice.

Discussion

196.	When goods are purchased against cash, the purchaser will get
Answer» CASH MEMO. INVOICE. ACCOUNTING Voucher. None of these. Solution :Invoice.

Discussion

197.	When goods are purchased against cash, the purchaser will get _________
Answer» SOLUTION :CASH MEMO

Discussion

198.	When closing stock appears in the Trial Balance ?
Answer» SOLUTION :It APPEAR in the Trial BALANCE if it has been DEDUCTED from purchases.

Discussion

199.	When closing capital is greater than opening capital, it means
Answer» Profit. LOSS. Loss if there is no DRAWING. None of these. Solution :Loss if there is no drawing.

Discussion

200.	When closing capital is greater than opening capital it means
Answer» PROFIT. Loss. Profit if FRESH CAPITAL is not INTRODUCED. No Profit, no Loss. Solution :Profit if fresh capital is not introduced.

Discussion

Explore topic-wise InterviewSolutions in .

Which of the following error will not affect the trial balance :

Which of the followingequationsis correct ?

Which of the following are goods ?

Which of the following are not Errors of Principle and why:

Which of the following accounts will be credited on giving cash donation ?

Which of the following accounts will be credited on giving cash donation?

Which of following errors will be rectified through suspense account:

Which of the following accounts always shows a debit balance :

Which method of Depreciation assumes that an asset should be depreciated more in the earlier years and less in the later years of use?

Which of the following accounts has a credit balance ?

Which item shows a debit balance in the Trial Balance ?

Which item is shown as debit balance in the Trial Balance

Which Generally Accepted Accounting Principle (GAAP) is followed and which oneis ignored while preparing the accounts under Single Entry System?

Which fo the following is not a part of double Entry System ?

Which is the last step of accounting as a process of information?

Which external user of accounting information is most intersted in knowing the long-term solvency position of the firm?

Which financial statements are prepared under Ind -AS?

Which financial statements are prepared under IFRS?

Which concept , (principle) assumes that a business enterprise will not be liquidated in the near future?

Which balance of the bank column in the Cash Book signifies bank overdraft?

Which basis of accounting is recognised under the Companies Act, 2013.

Which balances are called 'Overdraft' of Cash Book and Pass Book ?

Which accounting principle requires that life of a business be broken into smaller parts?

Which accounting principle states thatall anticipated losses should be recorded but all anticipated profits should be ignored?

Which accounting equation is incorrect cut of the following?

Which accounting principle requires that personal expenses of proprietor or parthers should be debited to Drawings Account ?

Which account should be debited for creating provision for doubtful debts?

Which account should be debited, if wages are paid for installation of a machine ?

Wherewill youtransferprofiton saleofa fixedasset ?

Where will you record "Rent unpaid " in the Cash Book ?

When you proceed to reconcile then Bank Account startingwith Credit CashBook balance how will you deal with the transactions given n Q .8 ?

When total of debit side of an account exceeds the total of its credit side, the account is said to have

When payments made by the bank as per the standing instructions of the customer, the balance in the passbook will be more when compared to the cash book.

When pass Book shows a debit balance,it means ______

When market value of an asset is higher than book value, depreciation is not charged.

When Pass Book shows a credit balance,it means ______

When is Closing Stock shown in the Trail Balance?

When is Capital Account credited ?

Whenis Capital Account debited ?

When GST is not charged by the seller of Goods and / or Services but is paid into the Government Account directly by the purchaser of Goods and / or Services, it is termed as _________

When goods are sold on credit the seller prepares an _______

When goods are sold on credit the seller prepares

When goods are purchased against cash, the purchaser will get

When goods are purchased against cash, the purchaser will get _________

When closing stock appears in the Trial Balance ?

When closing capital is greater than opening capital, it means

When closing capital is greater than opening capital it means