2427 + Interview Questions in Accounts in Class 11 Page 48 InterviewSolution

2351.	A cheque of â‚¹ 1,120 receivedfrom a debtor recorded twice in the Cash Book . When balance as per Cash Book is the starting point
Answer» â‚¹ 1,120 to be added â‚¹ 1,120 to be SUBTRACTED. No ADJUSTMENT is REQUIRE. NONE of these . SOLUTION :â‚¹ 1,120 to be subtracted.

Discussion

2352.	A firm may hold stock which is heavily in demand. Consequently, the market value of this stock may be increasing. Normal accountig procedure is to ignore this because of the …………… .
Answer» ANSWER :CONVENTION of PRUDENCE

Discussion

2353.	A firm has received a large order to supply goods. Will it be recorded in the books of account of the firm ? Give reason
Answer» SOLUTION :No, it will not be RECORDED in the BOOKS of ACCOUNT because it is not a TRANSACTION

Discussion

2354.	A company lost vital machinery in an accident on 2nd March , 2019 which will have adverse impact on its production capacity . As a result , it is likely to loose business to its competitors . The company has not disclosed this fact in its annual report forfor the year ended31 st March ,2019 . Do you think it is complying with the Convention of Full Disclosure?
Answer» Solution :No , the company is not COMPLYING with the Convention of Full Disclosure as LOSS of vital machinery has adverse impact on the business and THUS , on its profitability . It being material information should have been DISCLOSED.

Discussion

2355.	A commenced his cloth business on 1st April , 2018 with a capital of â‚¹30,000. On31st March2019,his assets were worth â‚¹50,000 and liabilites ofâ‚¹10,000. findout hisclosing capitaland profits eraned duringthe year.
Answer» ANSWER :CAPITAL â‚¹40,000 : Profitâ‚¹10,000

Discussion

2356.	A company has been charging depreciation @ 10% p.a. on original cost method. It now wants to change the method from original cost to diminishing balance method. The rate of depreciation being 15% p.a. Can it do so?
Answer» Solution :Yes. The method and the RATE of depreciation can be CHANGED but the CHANGE in method will be TREATED as a change in accounting policy and the company should disclose the change in its FINANCIAL statement along with its impact on profit or loss.

Discussion

2357.	A person to whom money is owed by a firms forpurchase of goods is a creditor .
Answer» SOLUTION : TRUE

Discussion

2358.	A person to whom a firm owes money for purchase of goods is a _______
Answer» SOLUTION :CREDITOR

Discussion

2359.	……………… are created in business for rainy day.
Answer» ANSWER :GENERALRESERVE

Discussion

2360.	A bank reconciliation statement is mainly prepared for
Answer» RECONCILE the CASH balance of the cash book. Reconcile the difference between the bank balanceby the cash book and bank passbook None of these Solution :B

Discussion

2361.	(a) Mohan started a business on 1st Aprili 2018 with a capital of â‚¹10,000 and borrowedâ‚¹ 3,000 from a friend. He earned a profit of â‚¹5,000 during the year ended 31st March, 2019 and withdrew cashâ‚¹4,000 for personal use. What is his capital on 31st March, 2019? Mahesh started a'business with a capital of â‚¹15,000 on 1st April, 2018. During the year, he made a profit of â‚¹3,000. He owesâ‚¹2,500 to suppliers of goods. What is the total of assets in his business on 31st March, 2019
Answer» ANSWER :â‚¹25,000

Discussion

2362.	A Bill of Exchange is renewed generally at the request of the …
Answer» drawer bank drawee none of these. SOLUTION :CROSSED

Discussion

2363.	A bookkeeper extracted the following Trial Balance as on 31st March, 2019: Youare required to: (i) State the errors giving reasons (ii) Redraft the Trial Balance correctly.
Answer» Solution :(i) (a) Stock on 31st March, 2019, will not appear in the Trial BALANCE because it represents a part of the goods purchased but not yet sold. As the total purchases have been included in the Trial Balance, there is no need of including the Closing Stock again. (b) Machinery is an ASSET and thus will appear in the DEBIT column. (c) WIFE's loan to the business is a liability. It will appear in the credit column. (d) Discount allowed, being an expense, will appear in the debit column. (e) Drawing made by the PROPRIETOR is a dencrease of capital (i.e., decrease of proprietor's claim from the business). It will appear in the debit column.

Discussion

2364.	A Bill of Exchange, dated 5th August, 2018 payable 60 days after sight, acceptance, on 10th Augest 2018.
Answer» Solution :SINCE it is an after sight bill, the period will be counted from the date of ACCEPTANCE. 60 days from 10TH August, 2018 is 9th Octobeer, 2018, [i.e., August (31-10) 21 + september 30+ October 9] ADDING 3 Days of Grace, the bill becomes due on 12th October ,2018.

Discussion

2365.	A bill of exchange is drawn by the creditor.
Answer» ANSWER :1

Discussion

2366.	A credit balance always signifies a balance in the Liabilities Account . Is it correct ?
Answer» SOLUTION :No, it is not CORRECT . A CREDIT BALANCE may signify a balance in LIABILITIES Account or an income .

Discussion

2367.	A contra entry appears on both sides of Cash Book.
Answer» ANSWER :TRUE

Discussion

2368.	________ Discount is shown separately in the books of account.
Answer» SOLUTION :CASH

Discussion

2369.	A Bill of exchange has _____ parties.
Answer» SOLUTION :THREE

Discussion

2370.	A Bank Reconciliation Statement is not a part of the Double Entry System.
Answer» SOLUTION : TRUE

Discussion

2371.	Â Give an example of a transacticn where an asset will increase and also the hability.
Answer» SOLUTION :GOODS PURCHASED an CREDIT

Discussion

2372.	A cheque of â‚¹ 5,000 received from a debtor recordedin the cash book but omitted to be banked. When balance as per cash book is the starting point
Answer» â‚¹ 5,000 to be ADDED. â‚¹ 5,000 to be SUBTRACTED. No adjustmentis REQUIRED NONE of these . SOLUTION : â‚¹ 5,000 to be subtracted.

Discussion

2373.	A bill of â‚¹ 2,00,000 drawn on 7th January, 2019, due for payment on 10th April, 2019 is discounted with bank on 10th February, 2019 at 12% p.a. The amount of discounting charge is
Answer» â‚¹4,800 â‚¹ 4,000 â‚¹ 48,000 â‚¹ 8,000 Answer :B

Discussion

2374.	_________ and _________ balances of a Trail Balance if in agreement, proves at least the arithmetical accuracy.
Answer» SOLUTION :DEBIT, CREDIT

Discussion

2375.	A note sent by buyer on return of goods is
Answer» CREDIT Note Return Note Debit Note Noneof these Answer :C

Discussion

2376.	A person who owes money to the firm against goods sold is debtor.
Answer» SOLUTION : TRUE

Discussion

2377.	A Bill of Exchange, dated 30th June, payable, 3 months after date.
Answer» Solution :3 months from 30th June,2018 is 30th SEPTEMBER. Adding 3 DAYS of GRACE, the bill becomes due on 3RD OCTOBER, 2018.

Discussion

2378.	A Bank Reconciliation Statement is prepared to __________
Answer» SOLUTION :RECONCILE BANK BALANCE

Discussion

2379.	_______ are prepared from the Trial Balance.
Answer» SOLUTION :FINAL ACCOUNT

Discussion

2380.	A journal entry may have more than one debit or more than one ________
Answer» SOLUTION :CREDIT

Discussion

2381.	A firm follows a practice of giving the figures of previous year alongwith the figures of current year. Now the accountant of the firm want to discontinue this practice. Do you justify this decision?
Answer» Solution :No. Comparability of current YEAR FIGURES with that of previous year is aqualitative characteristic of financial INFORMATION. Discontinuation of this practice will result in discontinuation of good practice being FOLLOWED by thefirm.

Discussion

2382.	A bill of ₹ 10,000 is renewed. The drawee pays ₹ 3,000 as part payment. The amount of interset charged is ₹200. what is the value of new bill ?
Answer» ₹ 700 ₹ 10,200 ₹ 9,000 ₹ 7,200 Answer :d

Discussion

2383.	A company purchased on 1st July, 2015 machinery costing Rs 30,000. It further purchased machinery on 1st January, 2016 costing Rs 20,000 and on. 1st October, 2016 costing Rs 10,000. On 1st April, 2017, one-third of the machinery installed on 1st July, 2015 became obsolete and was sold forRs 3,000. The company follows financial year as accounting year. Show how the Machinery Account would appear in the books of company if depreciation is charged "@ "10% p.a. on Written Down Value Method.
Answer» SOLUTION :`" BALANCE on 1st APRIL, 2017 ": Mach. I (2//3)- Rs 16,650 and Mach. I (1//3)- Rs 8,325, Mach. II- Rs 17,550, Mach. III- Rs 9,500. Depreciation (2017-18)-Mach. I (2//3) Rs 1,665, Mach. II Rs 1,755, Mach. III Rs 950.`

Discussion

2384.	A journal is known as a book of ______ entry.
Answer» SOLUTION :ORIGINAL

Discussion

2385.	________ Discount is allowed to encourage timely payment
Answer» SOLUTION :CASH

Discussion

2386.	…………… are created outof capitalgains.
Answer» ANSWER :CAPITAL RESERVE

Discussion

2387.	A liability is met by issuing a cheque . Which account will you credit and why ?
Answer» Solution :Bank ACCOUNT will be CREDITED because paymenthas been made by ISSUE of cheque . As a RESULT , balance in bank is reduced . Bank Account being an asset is credited .

Discussion

2388.	________ Discount is reduced from the invoice price.
Answer» SOLUTION :TRADE

Discussion

2389.	A computersystemiscapableof performingmany thigs 'Explainsome of thecapabilitesof a computersystem .
Answer»

Discussion

2390.	A bill drawn for four months on 8th May, 2018 will mature for payments on
Answer» 8TH SEPTEMBER, 2018 13th September, 2018 11TH September, 2018 8th AUGUST, 2018 Solution :11th September, 2018

Discussion

2391.	A firm is maintaining its acccounts manually and has decided to shiflt to computerised accounting .It has purchasedcomputer and also Tally software to maintain the accounts. The chief accountatn has asked his team not to prepare the chart of accounts.According to him it is not required and appropriatedecision will be taken at the time fo preparing financial statements. You are required to appraise his decision and give your opinion
Answer» SOLUTION :The decision of THECHIEF ACCOUNTANT is not correct . Chart of accounts is na imp[ortant document under computerised environment.It is the document which shows the decision as to how the financial statement s shall be prepared i.e which accounts shall form part of the profit and LOSS account and which shall be part of the balance sheet . besides it shows under which group varuous accounts are clubbed .At the time of recording a transaction, on the basisi of account codes given in the chart of Accounts , transaction is posted to the defined account, grouped under defined group and shown in the profit and loss account or balance sheet . The decision of the cheif accountant means that each and everty entry will have to be scrutinised which, in turn means additinal work will have to be performed which can be avoided by preparing the chart of accounts . The compouter system itserlf prepares acceptable Financial statements if the chart of accounts is well defined. Therefore , the chief ACCOUTANT should prepare a chart of acounts before switching to computerised accounting.

Discussion

2392.	A debit balance always signifies a balance in the Assets Account . Is it correct ?
Answer» Solution :No , it is not CORRECT . A DEBIT balance may signify a balance in ASSETS ACCOUNT or an EXPENSE.

Discussion

2393.	A Pass Book is a copy of
Answer» A CUSTOMER's ACCOUNT to BANK column Cash Book relateing to cash column Cash Book RELATING to cash column Fire's receipts and payments Answer :A

Discussion

2394.	A bank reconciliation statement is prepared with the balance of
Answer» Cash BOOK PASS Book Either Cash Book of Pass Book Neither Cash Book nor Pass Book Answer :C

Discussion

2395.	A commenced his cloth business on 1st April , 2018 with a capital of ₹30,000. On31st March2019,his assets were worth ₹50,000 and liabilites of₹10,000. findout hisclosing capitaland profits eraned duringthe year.
Answer» SOLUTION :Total Assets = Capital + LIABILITIES ₹50,000 = Capital+ ₹10,000 CLOSING Capital= ₹ 50,000 = Capital = ₹50,000 - ₹10,000= ₹40,000 Profit= Closing Capital- Opening Capital. = ₹40,000 - ₹30,000 = ₹10,000.

Discussion

2396.	A cheque to ₹32,000 sent to bank for collectionhas been recorded in the cash book as ₹23,000. Will it be recorded in the ameded cash book ?
Answer» Solution :Yes, ₹9,000 will be recorded on the DEBIT of AMENDED cash BOOK.

Discussion

2397.	A Bill of Exchange cannot be…..
Answer» ENDORSED CROSSED accepted none of these. SOLUTION :crossed

Discussion

2398.	A bank reconciliation statement is prepared by:
Answer» CREDITORS Bank Account HOLDER in a bank DEBTORS Solution :B

Discussion

2399.	A deblt balance is either ……………or……………(Asset, Liability, Income, Expense)
Answer» ANSWER :ASSET, EXPENSE.

Discussion

2400.	A cheque of â‚¹ 3,500 issued and recorded in the Cash Book but was not sent to creditor. When balance as per Cash Book is the starting point.
Answer» â‚¹ 3,500 to be ADDED â‚¹ 3,500 to be SUBTRACTED No adjustmentis REQUIRED NONE of these SOLUTION :â‚¹ 3,500 to be subtracted

Discussion

Explore topic-wise InterviewSolutions in .

A cheque of â‚¹ 1,120 receivedfrom a debtor recorded twice in the Cash Book . When balance as per Cash Book is the starting point

A firm may hold stock which is heavily in demand. Consequently, the market value of this stock may be increasing. Normal accountig procedure is to ignore this because of the …………… .

A firm has received a large order to supply goods. Will it be recorded in the books of account of the firm ? Give reason

A commenced his cloth business on 1st April , 2018 with a capital of â‚¹30,000. On31st March2019,his assets were worth â‚¹50,000 and liabilites ofâ‚¹10,000. findout hisclosing capitaland profits eraned duringthe year.

A company has been charging depreciation @ 10% p.a. on original cost method. It now wants to change the method from original cost to diminishing balance method. The rate of depreciation being 15% p.a. Can it do so?

A person to whom money is owed by a firms forpurchase of goods is a creditor .

A person to whom a firm owes money for purchase of goods is a _______

……………… are created in business for rainy day.

A bank reconciliation statement is mainly prepared for

A Bill of Exchange is renewed generally at the request of the …

A bookkeeper extracted the following Trial Balance as on 31st March, 2019: Youare required to: (i) State the errors giving reasons (ii) Redraft the Trial Balance correctly.

A Bill of Exchange, dated 5th August, 2018 payable 60 days after sight, acceptance, on 10th Augest 2018.

A bill of exchange is drawn by the creditor.

A credit balance always signifies a balance in the Liabilities Account . Is it correct ?

A contra entry appears on both sides of Cash Book.

________ Discount is shown separately in the books of account.

A Bill of exchange has _____ parties.

A Bank Reconciliation Statement is not a part of the Double Entry System.

Â Give an example of a transacticn where an asset will increase and also the hability.

A cheque of â‚¹ 5,000 received from a debtor recordedin the cash book but omitted to be banked. When balance as per cash book is the starting point

A bill of â‚¹ 2,00,000 drawn on 7th January, 2019, due for payment on 10th April, 2019 is discounted with bank on 10th February, 2019 at 12% p.a. The amount of discounting charge is

_________ and _________ balances of a Trail Balance if in agreement, proves at least the arithmetical accuracy.

A note sent by buyer on return of goods is

A person who owes money to the firm against goods sold is debtor.

A Bill of Exchange, dated 30th June, payable, 3 months after date.

A Bank Reconciliation Statement is prepared to __________

_______ are prepared from the Trial Balance.

A journal entry may have more than one debit or more than one ________

A firm follows a practice of giving the figures of previous year alongwith the figures of current year. Now the accountant of the firm want to discontinue this practice. Do you justify this decision?

A bill of ₹ 10,000 is renewed. The drawee pays ₹ 3,000 as part payment. The amount of interset charged is ₹200. what is the value of new bill ?

A journal is known as a book of ______ entry.

________ Discount is allowed to encourage timely payment

…………… are created outof capitalgains.

A liability is met by issuing a cheque . Which account will you credit and why ?

________ Discount is reduced from the invoice price.

A computersystemiscapableof performingmany thigs 'Explainsome of thecapabilitesof a computersystem .

A bill drawn for four months on 8th May, 2018 will mature for payments on

A debit balance always signifies a balance in the Assets Account . Is it correct ?

A Pass Book is a copy of

A bank reconciliation statement is prepared with the balance of

A commenced his cloth business on 1st April , 2018 with a capital of ₹30,000. On31st March2019,his assets were worth ₹50,000 and liabilites of₹10,000. findout hisclosing capitaland profits eraned duringthe year.

A cheque to ₹32,000 sent to bank for collectionhas been recorded in the cash book as ₹23,000. Will it be recorded in the ameded cash book ?

A Bill of Exchange cannot be…..

A bank reconciliation statement is prepared by:

A deblt balance is either ……………or……………(Asset, Liability, Income, Expense)

A cheque of â‚¹ 3,500 issued and recorded in the Cash Book but was not sent to creditor. When balance as per Cash Book is the starting point.

_ and _ balances of a Trail Balance if in agreement, proves at least the arithmetical accuracy.