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InterviewSolution
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.
| 701. |
Top Ramen Ltd. Decided to redeem 1,000, 10% Debentures of Rs 100 each redeemable at 10% premium. The company will have to invest in specified securifties at least |
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Answer» RS 15,000 |
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| 702. |
three chartereed accountantsA ,B andCforma partnershipprofits beingsharedin theratio3:2:1subject to thefollowing: (A) C'ssharefo profitguaranteedto benot lessthan Rs, 15,000p.a (b) B givesa guaranteeto theeffect thatgross feeearnedby himfor thefirmshallequalto hisaveragegross feeof thepreceedingfive yearswhen he wascarryingon professionalone, whichon anaverageworks out at Rs. 25,000 the profit for thefirstyear of thepartnershipare Rs. 75,000 thegrossgee earedby By Bfor thefirm is Rs, 16,000you arerequiredt showprofitand lossAppropriationaccountaftergivingeffectto theabove . |
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Answer» |
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| 703. |
threecharteredAccountantsX. YAnd Zforma partnershp, sharingprofitand lossesin theratioof3:2:1subjectto thefollowedconditions : (i)Z'sshareofprofitis guranteedto benot lessthan Rs. 30,000 p.a (ii)Y givesa guarantee to theeffectthatthe grosss feeearned by himof thefirmshallnot beless thanthe averagegross feeearnedby himduringthepreceding fiveyears whenhewascarryingon theprofession alone(the averageof whichworkshipoutat ARs. 50,000 ) .profitforthefirstyear(yearended31 st March, 2019) ofthepartnershipis1,50,000 , thegrossfeeearnedbyYfor thefirmRs.. 32,000. ( Prepaneprofitand LossAppropriation Account Aftergiving effectto theabove . |
Answer» Solution : `{:("Working Notes :",RS. ),( "profitfot the yearofpartnership ",1.50.000),(Add:"Differencebetweentheguaranted feeto beearnedby Y",),("andactualbetweentheguaranteed fee to beearned (Rs. 50.000-Rs. 32.000)",18.000),("projectedGrossFeeof thefirm ",underline underline overline (1.60.000)),("X'sshare =Rs. 1.60.00"xx"3/6=Rs. 84.000",),("Y's share =Rs. 1.60.000"xx"2/6=Rs. 56.000, and ",),("Z's share =Rs. 1.60.000"xx"2/6=Rs. 28.000.",):}` 2.Z wasGuaranteed a MINIMUM sumof Rs. 30.000Hencethedeficiencyof Rs.2.000willbebornebyX andYinthe RATIOOF 3:2 as Follows : `THUS {:(X=Rs. 2.000xx3//5=Rs. 1.200,Y=Rs.2.000xx2//5=Rs.800),(X's"share of profit "=Rs. 84.000- Rs. 1.200=Rs. 82.800,),(Y's "share of profit "=Rs. 56.000-Rs. 800=rs. 55.200,),(Z's "share of profit"=Rs.28.000+rs. 28.000+Rs. 1.200(X)+Rs.800(Y)=Rs. 30.000):}` |
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| 704. |
This item is not used as a tool for Analysis of Financial Statements : |
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Answer» CASH FLOW Statement |
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| 705. |
There was an Unrecordedassetof Rs, 2,000 whichwastakenoverbya partner at Rs, 1,500 Partner's CapitalAccount will be debited by …….. |
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Answer» Rs,2,000 |
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| 706. |
There are 200 members, each paying an annual subscription of Rs 1,000, subscription received during the year Rs 1,95,000, subscriptions received in advance at the beginning of the year Rs 3,000 and at the end of the year Rs 2,000. Amount shown in Income & Expenditure Account will be : |
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Answer» RS 2,00,000 |
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| 707. |
The two basic measures of liquidity are: |
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Answer» inventory turnover and current ratio |
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| 708. |
The statement of cash flows clarifies cash flows according to …........... . |
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Answer» Operating and non-operating FLOWS |
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| 709. |
The Receipt and Payment Account of Harimohan charitable institution is given: Receipt and Payment Account for the year ending March 31, 2015 Prepare the Income and Expenditure Account for the Year ended on March 31, 2015 after considering the following: (i) It was decided to treat Fifty per cent of the amount received on account of Legacies and Donations as income. (ii) Liabilities to be provided for are: Rent Rs. 800, Salaries Rs. 1,200, advertisement Rs. 200. (iii) Rs. 2,000 due for interest on investment was not actually received. |
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Answer» |
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| 710. |
The Receipts and Payments Account is a summary of : |
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Answer» Debit and CREDIT balance of Ledger Accounts |
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| 711. |
The …………… ratios provide the information critical to the long run operation of the firm. |
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Answer» LIQUIDITY |
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| 712. |
The __________ ratios provide the information critical to the long run operation of the firm |
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Answer» LIQUIDITY |
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| 713. |
The Quick Ratio of Z Ltd is 1:1 state with reason which of the following transctions would (i) increase, (ii)decrease or (iii) not change the ratio: (i) Included in the trade payables was bills payable of 3000 which was met on maturity. (ii) Debentures of 50,000 were converted in to equity shares. |
Answer» SOLUTION :
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| 714. |
The Quick Ratio of the company is 1.5:1 State with reson which of the following transactions would (i) increase,(ii) decrease or (iii) not change the ratio: (i) paid rent 3000 in advance. (ii) Trade Receivables included a debtor Shri Ashok who paid his entrire amount due 9700. |
Answer» SOLUTION :
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| 715. |
The _________ ratios are primarily measures of return: |
| Answer» Answer :D | |
| 716. |
The ratio in which old partners agree to surrender their shares in profit in favour of new partner is called |
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Answer» SACRIFICING RATIO. |
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| 717. |
The provisions of the Companies Act , 2013 in respect of redemption of debentures are to protect the interest of |
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Answer» DEBENTUREHOLDERS. |
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| 718. |
The purpose of analysis of financial statements for short-term creditors is |
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Answer» To determine whether their DUES will be PAID when due |
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| 719. |
The purpose of analysis of financial statements for short - term creditors is |
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Answer» To determine WHETHER their DUES will be PAID when DUE. |
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| 720. |
The provisions of the Companies Act, 2013 in respect of redemption of debentures are to protect the interest to |
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Answer» DEBENTUREHOLDERS |
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| 721. |
The Proprietary Ratio of M.Ltd is 0.80 :1. State with reasons whether the following transactions will icrease,decrease or not change the proprietary Ratio: (i)Obtained a loan from bank Rs200000 payable after five years . (ii) Purchased machinery for cash Rs75000. (iii) Redeemed 5% redeemable preference shares Rs 100000. (iv) Issued equity sharees to the vendors of machinery purchased for Rs 400,000. |
Answer» SOLUTION :
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| 722. |
The Principal amount of debentures will be rapid by the company either at the end of a specified period or by instalments during the life time of the company. Such types of debenture are called : |
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Answer» REDEEMABLE DEBENTURES |
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| 723. |
The Partnership Deed is silent on payment of salary to partners. Amita a partner, clamied that since she managed the business, she should get a monthly salary of Rs.10,000. Is she entitled for the salary? Give reason. |
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Answer» Solution :No, she is not entitled for salary. Reason: The PARTNERSHIP DEED is silent on the payment of salary. Therefore, provisions of the INDIAN Partnership ACT, 1932 will apply which PROVIDE that salary is not payable to partners unless it is agreed. |
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| 724. |
The partnership agreement between Maneesh and Girish provides that: (i) Profits will be shared equally, (ii) Maneesh will be allowed a salary of Rs. 400 p.m, (iii) Girish who manages the sales department will be allowed a commission equal to 10% of the net profits, after allowing Maneesh’s salary, (iv) 7% interest will be allowed on partner’s fixed capital, (v) 5% interest will be charged on partner’s annual drawings, (vi) The fixed capitals of Maneesh and Girish are Rs. 1,00,000 and Rs. 80,000, respectively. Their annual drawings were Rs. 16,000 and 14,000, respectively. The net profit for the year ending March 31, 2015 amounted to Rs. 40,000, Prepare firm’s Profit and Loss Appropriation Account. |
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Answer» |
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| 725. |
The partners of a firm, Alia, Bhanu and Chand distributed the profits for the year ended 31st March, 2017, ₹ 80,000 in the ratio of 3:3:2 without providing for the following adjustments: a)Alia and Chand were entitled to a salary of₹ 1,500 each p.m. b)Bhanu was entitled for a salary of ₹ 4,000 p.a. Pass the necessary Journal entry for the above adjustments in the books of the firm. Show workings clearly. |
Answer» SOLUTION : 
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| 726. |
thepartners of afirmaliabhanu andchanddistributedtheprofitsfor theyearended31st March ,2017Rs. 80,000in theratioof 3,2 :2withoutproviding for thefollowing adjustments : (A)aliaand chand wereentitledtoa salary of Rs,1,500 each permonth . ( B )bhanu and chand hadguaranted a minimumprofit ofRs. 35,000P.ato Aliaany deficiency to borneequallybybhanu and chand . (c ) bhanuwas entitled for a commissionofRs. 4,000 pass the necessaryjournalentry for theaboveadjustmentin thebooksof thefirmshowworkings cleasrly eachper month . for a commissionof Rs. |
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Answer» |
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| 727. |
The partners of a firm, Aia , Bhanu and Chand distributed the profits for the year ended 3 1st March, 2017, Rs 80,000 in the ration of 3 : 3 : 2without providing for the following adjustments : (a) Alia and Chand were entitled to a salary of .Rs 1,500 each per month. (b) Bhanu was entitled for a commission of Rs. 4,000. (c ) Bhanu and CHand guaranteed a minimum profits of .Rs 35,000 p.a to Alia any deficiency to bonrne equally by Bhanu and Chand. Pass the necessaryJournal entry for the above adjusments in the books of the firm . Show workings clearly. |
Answer» Solution :  Working Note (1) Profit REMAINING after allowing salary and commission will be : ` "Rs " 80,000 - " Rs " 36,000 - " Rs " 4,000 = " Rs " 40,000 ` `" ALIA's Share " = 3/8 XX 40,000 = ."Rs " 15,000` ` " Guaranteed amount to Alia " = ".Rs "35,000` Deficiency of .Rs 20,000 ( i.e., .Rs 35,000- .Rs 15,000) will be shared EQUALLY i.e., 10,000 each by Bhanu and Chand . ` " Bhanu 's share " = 3/8 xx 40,000 = ."Rs "15,000 - ." Rs " 10,000 = ."Rs "5,000` ` " Chand 's share " = 2/8 xx 40,000 = ."Rs "10,000 - ."Rs "10,000 = Nil` |
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| 728. |
The opening balance of Prize Fund was Rs 32,800. During the year, donations received towards this fund amounted to Rs 15,400, amount spent on prizes was Rs 12,300 and interest received on prize fund investment was Rs 4,000. The closing balance of Prize Fund will be : |
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Answer» RS 56,500 |
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| 729. |
The old profit sharing ratio among Rajender, Satish and Tejpal were 2:2:1. The New Profit Sharing Ratio after Satish’s retirement is 3:2. The gaining ratio is– |
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Answer» `3:2` |
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| 730. |
The _________ ofbusiness firm is measured by its ability to satisfy its short- term obligations as they become due: |
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Answer» activity |
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| 731. |
The ……… of a business firm is measured by its ability to satisfy its short term obligations as they become due. |
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Answer» ACTIVITY |
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| 732. |
The "motto" of yash ltd, an advertising company is service with dignity with dignity. Its management and work force is hard working honest and motivated, The net profit of the company doubles during the year ended 31st march 2014 .Encoraged by its performance company decided to give one month extra salary salary to all its exployees . Following is the comparative statement of profit and loss of tech company for the years ended 31st march 2013 and 2014 |
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Answer» Solution :NET PROFIT ratio=`("Net profit after tax")/("Revenue from opeations")xx100` for the year ending 31st march 2013 =`(Rs 300000)/(Rs 1000000)xx100=30%` For the year ending 31 ST march 2014 `=(Rs 600000)/(Rs 1500000)xx100-40%` |
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| 733. |
The motto of Pharma Ltd', a company engaged in the manufacturing of low cost generic medicines, is healthy india'.Its management and employess are hardworking, hones and motivated .The net profit of the company doubles during the year ended 31 st march 2014 Encoraged by its performance the company decided to pay bonus to all exployees at double the rate than last year. Following is t hecomparative statement of profit and loss of the company ofr the years ended 31 st march 2013 and 31st march 2014: |
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Answer» Solution :Net profit RATIO=`("Net profit after tax")/("Revenue from operations")xx100` For the YEAR ended 31st MARCH 2014 =`(Rs 1200000)/(Rs 300000)xx100=40%` |
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| 734. |
The most commonly used tools for financial analysis are: |
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Answer» HORIZONTAL analysis |
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| 735. |
The most commonly used tools for financial analysis are : |
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Answer» COMPARATIVE Statements |
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| 736. |
The ___________ measures the activity of a firm’s inventory |
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Answer» average collection period |
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| 737. |
The ___________ may indicate that the firm is experiencing stockouts and lost sales. |
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Answer» average payment PERIOD |
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| 738. |
The liability of the partners in a partnership firm under Indian Partnership Act, 1932 is |
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Answer» Limited |
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| 739. |
The liability of the partners in a partnership firm under indian Partnership Act , 1932 is |
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Answer» Limited. |
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| 740. |
The _________ is useful in evaluating credit and collection policies. |
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Answer» average payment PERIOD |
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| 741. |
The ………… is a measure of liquidity which excludes ……… ,generally the least liquid asset. |
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Answer» CURRENT RATIO, Accountsreceivable |
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| 742. |
The _________ is a measure of liquidity which excludes _______, generally the least liquid asset: |
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Answer» current RATIO, TRADE receivable |
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| 743. |
The interest on Capital of partners under the FluctuatingCapital Accounts Method is credited to |
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Answer» INTEREST Account. |
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| 744. |
The interest on Capitals of Partners under the Fluctuating Capital Accounts Method is credited to |
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Answer» INTEREST Account |
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| 745. |
theintereston capitalAccountsof partnersundertheflucatingcapitalAccountMethodiscreditedto |
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Answer» interestAccount |
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| 746. |
The important objective of financial analysis is |
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Answer» To determine LIQUIDITY (short -term Solvency, and Long-term Solvency) |
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| 747. |
The goodwill of a firm is valued at Rs. 1,35,000 at 3 years' purchase of super profit. Determine the missing values: Average Profit = (Rs. 3,60,000)/(3) = Rs. 1,20,000 Normal Profit = Rs. … xx (15)/(100) = Rs. … Super Profit = Average Profit- Normal Profit ""= Rs. 1,20,000 - Rs. ... = Rs. ... Goodwill = Super Profit xx No. of Years' Purchase. |
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Answer» Solution : Average Profit = `(Rs. 3,60,000)/(3)` = Rs. 1,20,000 Rs. 75,000 (Normal Profit) = Rs. ... (CAPITAL Employed) xx 15/100 Capital Employed = Rs. 75,000 `xx` 100/15 = Rs. 5,00,000 (Step 3) Goodwill = Super Profit `xx` No. of Years' PURCHASE. Rs. 1,35,000 = Super Profit `xx` 3 Super Profit = `(1,35,000)/(3)` = Rs. 45,000 (Step 2) Normal Profit = Average Profit- Super Profit ` "" ` = Rs. 1,20,000 - Rs. 45,000 = Rs. 75,000 (Step 1). |
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| 748. |
The goodwill of the firm is NOT affected by: |
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Answer» LOCATION of the firm |
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| 749. |
The formula for Capitalisation of Super Profit Method is |
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Answer» Super profit `XX` Number of year's purchase. |
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| 750. |
The following was the Balance Sheet of Arun, Bablu and Chetan sharing profits and losses in the ratio of (6)/(14):(5)/(14):(3)/(14) respectively. They agreed to take Deepak into partnership and give him a share of 1/8 on the following terms: (a) that Deepak should bring in Rs. 4,200 as goodwill and Rs. 7,000 as his Capital, (b) that furniture be depreciated by 12%, (c) that stock be depreciated by 10% (d) that a Reserve of 5% be created for doubtful debts: (e) that the value of land and buildings having appreciated be brought upto Rs. 31,000 ,(f) that after making the adjustments the capital accounts of the old partners (who continue to share in the same proportion as before) be adjusted on the basis of the proportion of Deepak’s Capital to his share in the business, i.e., actual cash to be paid off to, or brought in by the old partners as the case may be. Prepare Cash Account, Profit and Loss Adjustment Account (Revaluation Account) and the Opening Balance Sheet of the new firm. |
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Answer» |
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