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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.
| 201. |
When cash is withdrawn frombank, the entry in the Cash Book is Called ………… entry . |
| 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/contra-932385" style="font-weight:bold;" target="_blank" title="Click to know more about CONTRA">CONTRA</a></body></html> | |
| 202. |
When bank Column of a Cash Book shows a debit balance, it means ________ |
| 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/balance-891682" style="font-weight:bold;" target="_blank" title="Click to know more about BALANCE">BALANCE</a> <a href="https://interviewquestions.tuteehub.com/tag/lying-1081801" style="font-weight:bold;" target="_blank" title="Click to know more about LYING">LYING</a> with <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> | |
| 203. |
When assets are listed in order of liquidity in a Balance Sheet in which order the following shall appear ? (a) Land and Building, (b) Cash in hand, (c) Machinery, (d) Bills Receivable |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/1-256655" style="font-weight:bold;" target="_blank" title="Click to know more about 1">1</a>. Cash 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>, 2. Bills Receiable, <a href="https://interviewquestions.tuteehub.com/tag/3-301577" style="font-weight:bold;" target="_blank" title="Click to know more about 3">3</a>. Machinery, <a href="https://interviewquestions.tuteehub.com/tag/4-311707" style="font-weight:bold;" target="_blank" title="Click to know more about 4">4</a>. Land and Building</body></html> | |
| 204. |
When bank Column of a Cash Book shows a credit balance, it means ________ |
| 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/overdraft-588599" style="font-weight:bold;" target="_blank" title="Click to know more about OVERDRAFT">OVERDRAFT</a> i.e., <a href="https://interviewquestions.tuteehub.com/tag/amount-374803" style="font-weight:bold;" target="_blank" title="Click to know more about AMOUNT">AMOUNT</a> <a href="https://interviewquestions.tuteehub.com/tag/due-433472" style="font-weight:bold;" target="_blank" title="Click to know more about DUE">DUE</a> to the <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> | |
| 205. |
When an entry is made in journal: |
| Answer» <html><body><p> Assets are listed <a href="https://interviewquestions.tuteehub.com/tag/firs-989845" style="font-weight:bold;" target="_blank" title="Click to know more about FIRS">FIRS</a><br/> <a href="https://interviewquestions.tuteehub.com/tag/accounts-14064" style="font-weight:bold;" target="_blank" title="Click to know more about ACCOUNTS">ACCOUNTS</a> to be <a href="https://interviewquestions.tuteehub.com/tag/debited-2043748" style="font-weight:bold;" target="_blank" title="Click to know more about DEBITED">DEBITED</a> listed <a href="https://interviewquestions.tuteehub.com/tag/first-461760" style="font-weight:bold;" target="_blank" title="Click to know more about FIRST">FIRST</a>.<br/> Accounts to be credited listed first. <br/> Accounts may be listed in any order. <br/></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/b-387190" style="font-weight:bold;" target="_blank" title="Click to know more about B">B</a></body></html> | |
| 206. |
When an asset is purchased in cash or an expense is incurred in cash , cash in credited . Why ? |
| 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> :Cash is an asset . On purchase of an asset against payment in cash , cash has <a href="https://interviewquestions.tuteehub.com/tag/gone-474922" style="font-weight:bold;" target="_blank" title="Click to know more about GONE">GONE</a> out , i.e., cash has decreased . <a href="https://interviewquestions.tuteehub.com/tag/thus-2307358" style="font-weight:bold;" target="_blank" title="Click to know more about THUS">THUS</a> , Cash Account is <a href="https://interviewquestions.tuteehub.com/tag/credited-7316860" style="font-weight:bold;" target="_blank" title="Click to know more about CREDITED">CREDITED</a> .</body></html> | |
| 207. |
When an account is said to have a debit balance? |
| Answer» <html><body><p></p>Solution :An account is <a href="https://interviewquestions.tuteehub.com/tag/said-629244" style="font-weight:bold;" target="_blank" title="Click to know more about SAID">SAID</a> to have 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> balance <a href="https://interviewquestions.tuteehub.com/tag/ifthe-2726535" style="font-weight:bold;" target="_blank" title="Click to know more about IFTHE">IFTHE</a> total of its debit side is more than the total of its <a href="https://interviewquestions.tuteehub.com/tag/credit-938523" style="font-weight:bold;" target="_blank" title="Click to know more about CREDIT">CREDIT</a> side.</body></html> | |
| 208. |
When an account is said to have a credit 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> :An <a href="https://interviewquestions.tuteehub.com/tag/account-25640" style="font-weight:bold;" target="_blank" title="Click to know more about ACCOUNT">ACCOUNT</a> is said to have a credit balance if the <a href="https://interviewquestions.tuteehub.com/tag/total-711110" style="font-weight:bold;" target="_blank" title="Click to know more about TOTAL">TOTAL</a> of its credit side is more than the total of its <a href="https://interviewquestions.tuteehub.com/tag/debit-945425" style="font-weight:bold;" target="_blank" title="Click to know more about DEBIT">DEBIT</a> side.</body></html> | |
| 209. |
'When a Sales Book is maintained, there is no need to open Sales Account in the Ledger''. Do you agree? |
| 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. Because Sales Book records only <a href="https://interviewquestions.tuteehub.com/tag/credit-938523" style="font-weight:bold;" target="_blank" title="Click to know more about CREDIT">CREDIT</a> Sales of goods <a href="https://interviewquestions.tuteehub.com/tag/whereas-2326610" style="font-weight:bold;" target="_blank" title="Click to know more about WHEREAS">WHEREAS</a> Sales Account records both Cash as well as Credit Sales.</body></html> | |
| 210. |
When a firm maintain a Cash Book, it need not maintain ………. A/c in the Ledger . |
| 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> .</body></html> | |
| 211. |
When a cheque deposited into bank is dishonoured, it is recorded on ……. Side of Cash Book in ……. Column. |
| 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/credit-938523" style="font-weight:bold;" target="_blank" title="Click to know more about CREDIT">CREDIT</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> | |
| 212. |
When a firm maintain a Cash Book , it need not maintain ….. |
| Answer» <html><body><p>Journal Proper<br/>Purchase <a href="https://interviewquestions.tuteehub.com/tag/book-900767" style="font-weight:bold;" target="_blank" title="Click to know more about BOOK">BOOK</a> <br/><a href="https://interviewquestions.tuteehub.com/tag/sales-25569" style="font-weight:bold;" target="_blank" title="Click to know more about SALES">SALES</a> Book<br/>Cash and <a href="https://interviewquestions.tuteehub.com/tag/bank-13461" style="font-weight:bold;" target="_blank" title="Click to know more about BANK">BANK</a> accounts in <a href="https://interviewquestions.tuteehub.com/tag/ledger-1070861" style="font-weight:bold;" target="_blank" title="Click to know more about LEDGER">LEDGER</a> . </p>Answer :D</body></html> | |
| 213. |
When a cheque deposited into bank is dishonoured by bank , it will be recorded in cash book in : |
| Answer» <html><body><p> <a href="https://interviewquestions.tuteehub.com/tag/bank-13461" style="font-weight:bold;" target="_blank" title="Click to know more about BANK">BANK</a> <a href="https://interviewquestions.tuteehub.com/tag/column-922494" style="font-weight:bold;" target="_blank" title="Click to know more about COLUMN">COLUMN</a> on debit side <br/> Bank column on <a href="https://interviewquestions.tuteehub.com/tag/credit-938523" style="font-weight:bold;" target="_blank" title="Click to know more about CREDIT">CREDIT</a> side <br/><a href="https://interviewquestions.tuteehub.com/tag/cash-910172" style="font-weight:bold;" target="_blank" title="Click to know more about CASH">CASH</a> column on debit side <br/>Cash column on credit side </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> | |
| 214. |
Whatis accrual concept? |
| Answer» <html><body><p></p>Solution :Revenue is recorded when sales and <a href="https://interviewquestions.tuteehub.com/tag/made-3718337" style="font-weight:bold;" target="_blank" title="Click to know more about MADE">MADE</a> or services are <a href="https://interviewquestions.tuteehub.com/tag/rendered-7280818" style="font-weight:bold;" target="_blank" title="Click to know more about RENDERED">RENDERED</a> and it is <a href="https://interviewquestions.tuteehub.com/tag/immaterial-2125518" style="font-weight:bold;" target="_blank" title="Click to know more about IMMATERIAL">IMMATERIAL</a> whether cash is <a href="https://interviewquestions.tuteehub.com/tag/received-1179289" style="font-weight:bold;" target="_blank" title="Click to know more about RECEIVED">RECEIVED</a> or not.</body></html> | |
| 215. |
What will be the Journal entries for the transactions in Q . 10 in the books of Roshan? |
| 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_C08_S01_032_S01.png" width="80%"/></body></html> | |
| 216. |
Whatwill be the effect of the followingon the AccountingEquation ? (i) Harish started business with cash₹ 18,000 (ii) Purchased goods for cash₹ 5, 000 and on credit₹ 2,000 (iii) Sold goods for cash₹4,000 (costing₹ 2,400) (iv) Rent paid₹ 1,000 and rent outstanding₹ 200 |
| 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/assest-2445834" style="font-weight:bold;" target="_blank" title="Click to know more about ASSEST">ASSEST</a> : Cash₹16,000 + Stock₹ 4,600= Liabilities: OutstandingRent ₹ <a href="https://interviewquestions.tuteehub.com/tag/200-288914" style="font-weight:bold;" target="_blank" title="Click to know more about 200">200</a> + <a href="https://interviewquestions.tuteehub.com/tag/creditors-938665" style="font-weight:bold;" target="_blank" title="Click to know more about CREDITORS">CREDITORS</a> ₹ 2,000 + <a href="https://interviewquestions.tuteehub.com/tag/capital-908677" style="font-weight:bold;" target="_blank" title="Click to know more about CAPITAL">CAPITAL</a> : ₹ 18,400.</body></html> | |
| 217. |
Whatwill be the effect of the followingon the AccountingEquation ? (i) Harish started business with cash₹ 18,000 (ii) Purchased goods for cash₹ 5, 000 and on credit₹ 2,000 (iii) Sold goods for cash₹4,000 (costing₹ 2,400) (iv) Rent paid₹ 1,000 and rent outstanding₹ 200 |
| Answer» <html><body><p><br/></p>Answer :<a href="https://interviewquestions.tuteehub.com/tag/assest-2445834" style="font-weight:bold;" target="_blank" title="Click to know more about ASSEST">ASSEST</a> : Cash₹16,000 + Stock₹ 4,600= Liabilities: OutstandingRent ₹ <a href="https://interviewquestions.tuteehub.com/tag/200-288914" style="font-weight:bold;" target="_blank" title="Click to know more about 200">200</a> + <a href="https://interviewquestions.tuteehub.com/tag/creditors-938665" style="font-weight:bold;" target="_blank" title="Click to know more about CREDITORS">CREDITORS</a> ₹ 2,000 + Capital : ₹ 18,400.</body></html> | |
| 218. |
What will be the Journal entries for the transaction in Q 7 in the books of Rahul? |
| 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> :On <a href="https://interviewquestions.tuteehub.com/tag/sales-25569" style="font-weight:bold;" target="_blank" title="Click to know more about SALES">SALES</a> 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 <a href="https://interviewquestions.tuteehub.com/tag/rahul-616383" style="font-weight:bold;" target="_blank" title="Click to know more about RAHUL">RAHUL</a> <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XI_C08_S01_029_S01.png" width="80%"/></body></html> | |
| 219. |
Whatwillbe effect of the followingon the Accounting Equation ? Started business with cash ₹45,000(ii)Openeda Bankform M/s. Sum & Co, for ₹11,200. |
| 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/assest-2445834" style="font-weight:bold;" target="_blank" title="Click to know more about ASSEST">ASSEST</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> ₹ 40,500 + <a href="https://interviewquestions.tuteehub.com/tag/bank-13461" style="font-weight:bold;" target="_blank" title="Click to know more about BANK">BANK</a> ₹ 4,500 + Stock₹ 11,200=Liabilities : Creditors₹ 11,200 + <a href="https://interviewquestions.tuteehub.com/tag/capital-908677" style="font-weight:bold;" target="_blank" title="Click to know more about CAPITAL">CAPITAL</a> ₹ 45,000</body></html> | |
| 220. |
Whatwillbe effect of the followingon the Accounting Equation ? Started business with cash ₹45,000(ii)Openeda Bankform M/s. Sum & Co, for ₹11,200. |
| 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/assest-2445834" style="font-weight:bold;" target="_blank" title="Click to know more about ASSEST">ASSEST</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> ₹ 40,500 + <a href="https://interviewquestions.tuteehub.com/tag/bank-13461" style="font-weight:bold;" target="_blank" title="Click to know more about BANK">BANK</a> ₹ 4,500 + Stock₹ 11,200=Liabilities : Creditors₹ 11,200 + <a href="https://interviewquestions.tuteehub.com/tag/capital-908677" style="font-weight:bold;" target="_blank" title="Click to know more about CAPITAL">CAPITAL</a> ₹ 45,000</body></html> | |
| 221. |
What type of information is required by long term lenders ? |
| Answer» <html><body><p></p>Solution :They want information about the <a href="https://interviewquestions.tuteehub.com/tag/creditworthiness-938673" style="font-weight:bold;" target="_blank" title="Click to know more about CREDITWORTHINESS">CREDITWORTHINESS</a> and the ability of the <a href="https://interviewquestions.tuteehub.com/tag/enterprise-3569" style="font-weight:bold;" target="_blank" title="Click to know more about ENTERPRISE">ENTERPRISE</a> to pay <a href="https://interviewquestions.tuteehub.com/tag/interest-13407" style="font-weight:bold;" target="_blank" title="Click to know more about INTEREST">INTEREST</a> and the repayment of their loans.</body></html> | |
| 222. |
What purpose does a Balance Sheet serve? |
| Answer» <html><body><p></p>Solution :The purpose of <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> is to measure the <a href="https://interviewquestions.tuteehub.com/tag/financial-988642" style="font-weight:bold;" target="_blank" title="Click to know more about FINANCIAL">FINANCIAL</a> position of the business as at a <a href="https://interviewquestions.tuteehub.com/tag/particular-1147539" style="font-weight:bold;" target="_blank" title="Click to know more about PARTICULAR">PARTICULAR</a> <a href="https://interviewquestions.tuteehub.com/tag/date-11316" style="font-weight:bold;" target="_blank" title="Click to know more about DATE">DATE</a></body></html> | |
| 223. |
What kind of transactions are recorded in the Cash Book ? |
| 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> and <a href="https://interviewquestions.tuteehub.com/tag/bank-13461" style="font-weight:bold;" target="_blank" title="Click to know more about BANK">BANK</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> are <a href="https://interviewquestions.tuteehub.com/tag/recorded-2240050" style="font-weight:bold;" target="_blank" title="Click to know more about RECORDED">RECORDED</a>.</body></html> | |
| 224. |
What practical difficulties are encountered by a trader due to incompleteness of accounting records? |
| 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> :N//A</body></html> | |
| 225. |
What isTrial balance ? Does the balancing of this ensure accuracy of books of accounts. |
| Answer» <html><body><p></p>Solution :Trial balance : It is a statement prepared with the help of ledger balances at the end of financial year to test the <a href="https://interviewquestions.tuteehub.com/tag/arithmetical-884194" style="font-weight:bold;" target="_blank" title="Click to know more about ARITHMETICAL">ARITHMETICAL</a> accuracy of books of accounts. Balancing of trial balance does not ensure the accuracy of books of accounts. <br/> Errors which remain undetected even if trial balance agrees: <br/> (i) Error of omission : If a transaction remains unrecorded in journal or subsidiary books. <br/> (ii) Error of commission : When wrong <a href="https://interviewquestions.tuteehub.com/tag/amount-374803" style="font-weight:bold;" target="_blank" title="Click to know more about AMOUNT">AMOUNT</a> is entered <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 journal or subsidiary books. <br/> (iii) <a href="https://interviewquestions.tuteehub.com/tag/compensating-2531812" style="font-weight:bold;" target="_blank" title="Click to know more about COMPENSATING">COMPENSATING</a> error : If the <a href="https://interviewquestions.tuteehub.com/tag/effect-966056" style="font-weight:bold;" target="_blank" title="Click to know more about EFFECT">EFFECT</a> of one error is neutralised by the effect of some other error. <br/> (iv) Error of principle : When fundamental principle of accountancy is violated while recording a transaction.</body></html> | |
| 226. |
What is Two-Sided Error? |
| 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> :Two-Sided Errors are those errors that have been <a href="https://interviewquestions.tuteehub.com/tag/committed-2017393" style="font-weight:bold;" target="_blank" title="Click to know more about COMMITTED">COMMITTED</a> on both <a href="https://interviewquestions.tuteehub.com/tag/sides-1207029" style="font-weight:bold;" target="_blank" title="Click to know more about SIDES">SIDES</a>, i.e., Debit and credit. <a href="https://interviewquestions.tuteehub.com/tag/although-7380138" style="font-weight:bold;" target="_blank" title="Click to know more about ALTHOUGH">ALTHOUGH</a> error has been committed <a href="https://interviewquestions.tuteehub.com/tag/yet-2343425" style="font-weight:bold;" target="_blank" title="Click to know more about YET">YET</a> the Trial Balance will agree.</body></html> | |
| 227. |
What is Trial balance ? |
| Answer» <html><body><p></p>Solution :<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 is a statement, prepared with the debit and <a href="https://interviewquestions.tuteehub.com/tag/credit-938523" style="font-weight:bold;" target="_blank" title="Click to know more about CREDIT">CREDIT</a> balances of ledger <a href="https://interviewquestions.tuteehub.com/tag/accounts-14064" style="font-weight:bold;" target="_blank" title="Click to know more about ACCOUNTS">ACCOUNTS</a> to test the <a href="https://interviewquestions.tuteehub.com/tag/arithmetical-884194" style="font-weight:bold;" target="_blank" title="Click to know more about ARITHMETICAL">ARITHMETICAL</a> accuracy of the books.</body></html> | |
| 228. |
What is Transfer Voucher? |
| 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> :Non-cash <a href="https://interviewquestions.tuteehub.com/tag/vouchers-1448333" style="font-weight:bold;" target="_blank" title="Click to know more about VOUCHERS">VOUCHERS</a> (or transfer vouchers) are the <a href="https://interviewquestions.tuteehub.com/tag/documentary-441331" style="font-weight:bold;" target="_blank" title="Click to know more about DOCUMENTARY">DOCUMENTARY</a> <a href="https://interviewquestions.tuteehub.com/tag/evidence-977636" style="font-weight:bold;" target="_blank" title="Click to know more about EVIDENCE">EVIDENCE</a> of non-cash <a href="https://interviewquestions.tuteehub.com/tag/transactions-18175" style="font-weight:bold;" target="_blank" title="Click to know more about TRANSACTIONS">TRANSACTIONS</a>.</body></html> | |
| 229. |
What is Trading Accounts? |
| Answer» <html><body><p></p>Solution :Trading Account is the account that reveals gross <a href="https://interviewquestions.tuteehub.com/tag/profit-1168589" style="font-weight:bold;" target="_blank" title="Click to know more about PROFIT">PROFIT</a> or gross loss. It is <a href="https://interviewquestions.tuteehub.com/tag/credited-7316860" style="font-weight:bold;" target="_blank" title="Click to know more about CREDITED">CREDITED</a> with the <a href="https://interviewquestions.tuteehub.com/tag/amount-374803" style="font-weight:bold;" target="_blank" title="Click to know more about AMOUNT">AMOUNT</a> of sales of goods and <a href="https://interviewquestions.tuteehub.com/tag/debited-2043748" style="font-weight:bold;" target="_blank" title="Click to know more about DEBITED">DEBITED</a> with the opening stock of goods along with the direct <a href="https://interviewquestions.tuteehub.com/tag/expenses-980258" style="font-weight:bold;" target="_blank" title="Click to know more about EXPENSES">EXPENSES</a> related to the sales made i.e., purchases, freight inwards, wages, etc</body></html> | |
| 230. |
What is Trade Discount? |
| Answer» <html><body><p></p>Solution :Trade <a href="https://interviewquestions.tuteehub.com/tag/discount-955451" style="font-weight:bold;" target="_blank" title="Click to know more about DISCOUNT">DISCOUNT</a> is the discount allowed when the <a href="https://interviewquestions.tuteehub.com/tag/goods-1009877" style="font-weight:bold;" target="_blank" title="Click to know more about GOODS">GOODS</a> are sold to the purchaser for <a href="https://interviewquestions.tuteehub.com/tag/resale-1185877" style="font-weight:bold;" target="_blank" title="Click to know more about RESALE">RESALE</a> to the ultimate consumer or when the goods are purchased in <a href="https://interviewquestions.tuteehub.com/tag/large-1066424" style="font-weight:bold;" target="_blank" title="Click to know more about LARGE">LARGE</a> quantity.</body></html> | |
| 231. |
What is the use of Financial Statements for Potential Investors ? |
| Answer» <html><body><p></p>Solution :The prospective investors are in need of detailed information regarding the progress of the concern because on the basis of the information revealed by financial statements they <a href="https://interviewquestions.tuteehub.com/tag/take-662846" style="font-weight:bold;" target="_blank" title="Click to know more about TAKE">TAKE</a> <a href="https://interviewquestions.tuteehub.com/tag/decisions-25560" style="font-weight:bold;" target="_blank" title="Click to know more about DECISIONS">DECISIONS</a> regarding the investment to be made in the paritcular business. They would like to get information <a href="https://interviewquestions.tuteehub.com/tag/relating-7708583" style="font-weight:bold;" target="_blank" title="Click to know more about RELATING">RELATING</a> to the <a href="https://interviewquestions.tuteehub.com/tag/past-1148648" style="font-weight:bold;" target="_blank" title="Click to know more about PAST">PAST</a> and present performance of the business and the decision to be taken for future. After keeping all facts in mind they come forward for investing their funds in the business.</body></html> | |
| 232. |
What is the traditional function 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> :<a href="https://interviewquestions.tuteehub.com/tag/recording-1180449" style="font-weight:bold;" target="_blank" title="Click to know more about RECORDING">RECORDING</a> of <a href="https://interviewquestions.tuteehub.com/tag/financial-988642" style="font-weight:bold;" target="_blank" title="Click to know more about FINANCIAL">FINANCIAL</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>.</body></html> | |
| 233. |
What is the significane of debit and credit balances of Cash Book? |
| Answer» <html><body><p></p>Solution :Debitbalance as <a href="https://interviewquestions.tuteehub.com/tag/per-590802" style="font-weight:bold;" target="_blank" title="Click to know more about PER">PER</a> Cash <a href="https://interviewquestions.tuteehub.com/tag/book-900767" style="font-weight:bold;" target="_blank" title="Click to know more about BOOK">BOOK</a> means the amount which has been withdrawn in excess of the deposites <br/> Stating <a href="https://interviewquestions.tuteehub.com/tag/differently-7257131" style="font-weight:bold;" target="_blank" title="Click to know more about DIFFERENTLY">DIFFERENTLY</a>, debit, balances means favourablebalance, while credit balancemeans unfavourable <a href="https://interviewquestions.tuteehub.com/tag/balance-891682" style="font-weight:bold;" target="_blank" title="Click to know more about BALANCE">BALANCE</a>.</body></html> | |
| 234. |
What is the rule of recording transactions in Real Accounts? |
| 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/debit-945425" style="font-weight:bold;" target="_blank" title="Click to know more about DEBIT">DEBIT</a> what <a href="https://interviewquestions.tuteehub.com/tag/cames-908100" style="font-weight:bold;" target="_blank" title="Click to know more about CAMES">CAMES</a> in and <a href="https://interviewquestions.tuteehub.com/tag/credit-938523" style="font-weight:bold;" target="_blank" title="Click to know more about CREDIT">CREDIT</a> what <a href="https://interviewquestions.tuteehub.com/tag/goes-2676180" style="font-weight:bold;" target="_blank" title="Click to know more about GOES">GOES</a> out.</body></html> | |
| 235. |
What is the rule of recording transactions in Personal Accounts? |
| 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/debit-945425" style="font-weight:bold;" target="_blank" title="Click to know more about DEBIT">DEBIT</a> the <a href="https://interviewquestions.tuteehub.com/tag/receiver-14073" style="font-weight:bold;" target="_blank" title="Click to know more about RECEIVER">RECEIVER</a> and <a href="https://interviewquestions.tuteehub.com/tag/credit-938523" style="font-weight:bold;" target="_blank" title="Click to know more about CREDIT">CREDIT</a> the <a href="https://interviewquestions.tuteehub.com/tag/giver-1007644" style="font-weight:bold;" target="_blank" title="Click to know more about GIVER">GIVER</a>.</body></html> | |
| 236. |
What is the rule of recording transactions in Nominal Accounts? |
| 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/debit-945425" style="font-weight:bold;" target="_blank" title="Click to know more about DEBIT">DEBIT</a> the expenses and <a href="https://interviewquestions.tuteehub.com/tag/losses-544756" style="font-weight:bold;" target="_blank" title="Click to know more about LOSSES">LOSSES</a> and Credit incomes and <a href="https://interviewquestions.tuteehub.com/tag/gains-1003231" style="font-weight:bold;" target="_blank" title="Click to know more about GAINS">GAINS</a>.</body></html> | |
| 237. |
What is the rule for Revenue or Income 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> :The <a href="https://interviewquestions.tuteehub.com/tag/rule-1192038" style="font-weight:bold;" target="_blank" title="Click to know more about RULE">RULE</a> for Revenue or Income Account is <a href="https://interviewquestions.tuteehub.com/tag/increases-1040626" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASES">INCREASES</a> in revenue or income is credited and <a href="https://interviewquestions.tuteehub.com/tag/decreases-946143" style="font-weight:bold;" target="_blank" title="Click to know more about DECREASES">DECREASES</a> are <a href="https://interviewquestions.tuteehub.com/tag/debited-2043748" style="font-weight:bold;" target="_blank" title="Click to know more about DEBITED">DEBITED</a> .</body></html> | |
| 238. |
What is the rule for Liability 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/rule-1192038" style="font-weight:bold;" target="_blank" title="Click to know more about RULE">RULE</a> for <a href="https://interviewquestions.tuteehub.com/tag/liability-541457" style="font-weight:bold;" target="_blank" title="Click to know more about LIABILITY">LIABILITY</a> Account is Increases are <a href="https://interviewquestions.tuteehub.com/tag/credits-938671" style="font-weight:bold;" target="_blank" title="Click to know more about CREDITS">CREDITS</a> and decreases are debits .</body></html> | |
| 239. |
What is the rule for Expense 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> :The <a href="https://interviewquestions.tuteehub.com/tag/rule-1192038" style="font-weight:bold;" target="_blank" title="Click to know more about RULE">RULE</a> for <a href="https://interviewquestions.tuteehub.com/tag/expenses-980258" style="font-weight:bold;" target="_blank" title="Click to know more about EXPENSES">EXPENSES</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> is Increases in expenses are debited and decreases are <a href="https://interviewquestions.tuteehub.com/tag/credited-7316860" style="font-weight:bold;" target="_blank" title="Click to know more about CREDITED">CREDITED</a>.</body></html> | |
| 240. |
whatis theroleof computerin Accounting ? |
| Answer» | |
| 241. |
What is the rule for an Asset Account ? |
| Answer» <html><body><p></p>Solution :<a href="https://interviewquestions.tuteehub.com/tag/rule-1192038" style="font-weight:bold;" target="_blank" title="Click to know more about RULE">RULE</a> for an <a href="https://interviewquestions.tuteehub.com/tag/asset-885901" style="font-weight:bold;" target="_blank" title="Click to know more about ASSET">ASSET</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> is 'Increases in <a href="https://interviewquestions.tuteehub.com/tag/assets-885948" style="font-weight:bold;" target="_blank" title="Click to know more about ASSETS">ASSETS</a> are debits and decreases credit'</body></html> | |
| 242. |
What is the residual or scrap value of the 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> :It is the estimated <a href="https://interviewquestions.tuteehub.com/tag/value-1442530" style="font-weight:bold;" target="_blank" title="Click to know more about VALUE">VALUE</a> of a fixed asset at the <a href="https://interviewquestions.tuteehub.com/tag/end-971042" style="font-weight:bold;" target="_blank" title="Click to know more about END">END</a> of its estimated useful life. It is the <a href="https://interviewquestions.tuteehub.com/tag/amount-374803" style="font-weight:bold;" target="_blank" title="Click to know more about AMOUNT">AMOUNT</a> which is expected to be received when the asset is sold at the end of its useful life.</body></html> | |
| 243. |
What is the reason that cheques deposited into bank but not yet credited by bank are not recorded in the amended cash book ? |
| 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> :Cheques deposited intobank are already correctly recorded in the cash <a href="https://interviewquestions.tuteehub.com/tag/book-900767" style="font-weight:bold;" target="_blank" title="Click to know more about BOOK">BOOK</a>. As soon as they are collected by bank, they will be recorded in pass book also.</body></html> | |
| 244. |
What is the reason that the capital expenditure is shows in the Balance Sheet? |
| Answer» <html><body><p></p>Solution :Amount spent on acquiring or erection of <a href="https://interviewquestions.tuteehub.com/tag/fixed-457597" style="font-weight:bold;" target="_blank" title="Click to know more about FIXED">FIXED</a> assets is <a href="https://interviewquestions.tuteehub.com/tag/termed-7331110" style="font-weight:bold;" target="_blank" title="Click to know more about TERMED">TERMED</a> as capital expenditure . Such expenditure is <a href="https://interviewquestions.tuteehub.com/tag/shown-1206565" style="font-weight:bold;" target="_blank" title="Click to know more about SHOWN">SHOWN</a> in theassets because it yields benefit over a long <a href="https://interviewquestions.tuteehub.com/tag/period-1151023" style="font-weight:bold;" target="_blank" title="Click to know more about PERIOD">PERIOD</a> of time.</body></html> | |
| 245. |
What is the reason for agreement of Trial Balance ? |
| Answer» <html><body><p></p>Solution :Under the <a href="https://interviewquestions.tuteehub.com/tag/double-441870" style="font-weight:bold;" target="_blank" title="Click to know more about DOUBLE">DOUBLE</a> entry system, each <a href="https://interviewquestions.tuteehub.com/tag/transaction-16213" style="font-weight:bold;" target="_blank" title="Click to know more about TRANSACTION">TRANSACTION</a> is recorded two times, once on the debit side of an account and again on the <a href="https://interviewquestions.tuteehub.com/tag/credit-938523" style="font-weight:bold;" target="_blank" title="Click to know more about CREDIT">CREDIT</a> side of another account. It is because of this reason that the Trial Balance should <a href="https://interviewquestions.tuteehub.com/tag/always-373607" style="font-weight:bold;" target="_blank" title="Click to know more about ALWAYS">ALWAYS</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>.</body></html> | |
| 246. |
What is the purpose of preparing trading and profit and loss 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> :N/a</body></html> | |
| 247. |
What is the reason that cheques deposited into bank but dishonoured by the bank are recorded in the ameded cash book ? |
| Answer» <html><body><p></p>Solution :Cheques deposited have been recorded on the debit side of bank <a href="https://interviewquestions.tuteehub.com/tag/column-922494" style="font-weight:bold;" target="_blank" title="Click to know more about COLUMN">COLUMN</a> of <a href="https://interviewquestions.tuteehub.com/tag/cash-910172" style="font-weight:bold;" target="_blank" title="Click to know more about CASH">CASH</a> book. Since they will never be recorded in pass book due to their dishonour, the entry in the cash book must be reversed and hence <a href="https://interviewquestions.tuteehub.com/tag/sould-2277098" style="font-weight:bold;" target="_blank" title="Click to know more about SOULD">SOULD</a> be recorded on the <a href="https://interviewquestions.tuteehub.com/tag/credit-938523" style="font-weight:bold;" target="_blank" title="Click to know more about CREDIT">CREDIT</a> side of <a href="https://interviewquestions.tuteehub.com/tag/amended-7662523" style="font-weight:bold;" target="_blank" title="Click to know more about AMENDED">AMENDED</a> cash book.</body></html> | |
| 248. |
What is the principle of valuation of inventory ? |
| 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> :The principle of valuation of inventory is that inventory is valued at <a href="https://interviewquestions.tuteehub.com/tag/cost-25707" style="font-weight:bold;" target="_blank" title="Click to know more about COST">COST</a> or net <a href="https://interviewquestions.tuteehub.com/tag/realisable-7708686" style="font-weight:bold;" target="_blank" title="Click to know more about REALISABLE">REALISABLE</a> value, <a href="https://interviewquestions.tuteehub.com/tag/whichever-2326632" style="font-weight:bold;" target="_blank" title="Click to know more about WHICHEVER">WHICHEVER</a> is <a href="https://interviewquestions.tuteehub.com/tag/lower-1080637" style="font-weight:bold;" target="_blank" title="Click to know more about LOWER">LOWER</a>.</body></html> | |
| 249. |
What is the primary reason for business students and others to study accounting discipline ? |
| 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> :Accounting information is <a href="https://interviewquestions.tuteehub.com/tag/presented-7264773" style="font-weight:bold;" target="_blank" title="Click to know more about PRESENTED">PRESENTED</a> and communicated in the form of financial statements, reports, graphs and charts to the internal and <a href="https://interviewquestions.tuteehub.com/tag/external-981194" style="font-weight:bold;" target="_blank" title="Click to know more about EXTERNAL">EXTERNAL</a> users who <a href="https://interviewquestions.tuteehub.com/tag/require-11720" style="font-weight:bold;" target="_blank" title="Click to know more about REQUIRE">REQUIRE</a> it for <a href="https://interviewquestions.tuteehub.com/tag/making-1085093" style="font-weight:bold;" target="_blank" title="Click to know more about MAKING">MAKING</a> important decisions.Primary reason to study accounting discipline is to acqure such knowledge which is helpful in understanding these statements, reports etc.</body></html> | |
| 250. |
What is the objective of preparing an 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> :The objective of <a href="https://interviewquestions.tuteehub.com/tag/preparing-2949211" style="font-weight:bold;" target="_blank" title="Click to know more about PREPARING">PREPARING</a> an account is to <a href="https://interviewquestions.tuteehub.com/tag/summarise-2285069" style="font-weight:bold;" target="_blank" title="Click to know more about SUMMARISE">SUMMARISE</a> all transactions relating to a particular head in one account . Balance of all the <a href="https://interviewquestions.tuteehub.com/tag/accounts-14064" style="font-weight:bold;" target="_blank" title="Click to know more about ACCOUNTS">ACCOUNTS</a> leads to preparation of Trial Balance .</body></html> | |