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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.
| 1001. |
sajal and kajalarepertnerssharingprofitand lossesin theratio of 2:1 On 1st April , 2018theircapitalswere : sajal -Rs. 50,000 and Kajal -Rs. 40,000 prepareprofitand Lossappropriationaccountandthe partner's Capital Accounts at theend of theyearafterconsideringthefollowingiterms: (a) intereston capital is tobe allowed@5%p.a (b)intereston theloanadvancedby kajalfor thewhole year, theamountof loanbeingRs. 30,000 (c)intereston partnersdrawingsprofitis totransferredto Reserve . (d)10%of thedivisibleprofitis tobe transferredtoreserve . Net profitfor theyearended31st March, 2019 is Rs. 68,460Note :- Net profitmeans netprofitafter debit of intereston loanby the partner. |
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Answer» shareof PROFIT sajal -rs. 38,700,;kajal - rs. 19,350; Rserve -Rs. 6,450. |
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| 1002. |
Sajag Ltd. has an authorised capital of Rs.30,00,000 divided into equity shares of Rs. 30 each. The company invited applications for issuing 70,000 shares. Applications for 68,000 shares were received. All calls were made and were duly received except the final call of Rs. 10 per share on 5,000 shares. These shares were forfeited. (i) Present the Share Capital in the Balance Sheet of the company as per Schedule III of the Companies Act, 2013. (ii) Also, prepare Note to Accounts for the same. |
Answer» SOLUTION : 
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| 1003. |
Sacrificing Ratio is |
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Answer» NEW RATIO - OLD Ratio. |
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| 1004. |
Ruchi Ltd. Issued 42,000, 7% Debentures of Rs.100 each on 1st April, 2011, redeemable at a premium of 8% on 31st March 2015. The Company decided to create required Debenture Redemption Reserve on 31st March 2014. The company invested the funds as required by law in a fixed deposit with State Bank of India on 1st April, 2014 earning interest @10% per annum. Tax was deducted at source by the bak on interest @10%. Pass necessary Journal Entries regarding issue and redemption of debentures. |
| Answer» SOLUTION :Amount transferred to Debenture REDEMPTION RESERVE Rs.10,50,000 on 31st March, 2014, Debenture Redemption Investment Rs.6,30,000 on 1st April, 2014, INTEREST RECEIVED Rs.63,000. | |
| 1005. |
Ruchi Ltd. issued 42,000, 7% Debentures of Rs. 100 each on 1st April, 2011, redeemable at a premium of 8% on 31st March, 2015. The Company decided to create required Debenture Redemption Reserveon 31st Macrh, 2014. The company invested thefunds asrequired by law in a fixed deposit with State Bank of India on 1st April, 2014 earning interest @ 10% per annum. Tax was deducted at source by the bank on interest @ 10% per annum. Pass necessary Journal entries regarding issue and redemption of debentures. |
Answer» SOLUTION : 
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| 1006. |
S. Singh Limited obtained a loan of .Rs 5,00,000 from State Bank of India @ 10%interest. The company issued .Rs 7,50,000 10% debentures of .Rs 100 /- each , in favour of State Bank of India as collateral security . Pass necessary journal enries for the above transactions : (i) When company decided not to record the issue of 10% Debentures as collateralsecurity . (ii) When company decided the issue of 10% Debentures as collatral security. |
Answer» SOLUTION :When ISSUE of debentures is not to be RECORDED as Collateral SECURITY :  (II) When issue of debentures is to be recorded as Collateral Security :  
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| 1007. |
R,S and T were partners in a firm sharing profits in the ratio of 1:2:3. Their Balance Sheet as on 31st March, 2015 was as follows, R,S and T decided to share the profits equally with effect from 1st April, 2015. For this it was agreed that: (a) Goodwill of the firm be valued at Rs 1,50,000. (b) Land be revalued at Rs 80,000 and building be depreciated by 6%. (c ) Creditors of Rs 6,000 were not likely to be claimed and hence be written off. Prepare Revaluation Account, Partners' Capital Account and the Balance Sheet of the reconstituted firm. |
Answer» SOLUTION :  Working Note: `{:("Calculation of Sacrific/(GAIN)of share,",R,S,T),(I."Old Share",1//6,2//6,3//6),(II."NEW Share",1//6,2//6,3//6),(III. "SACRIFICE/(Gain) (I-II)","-1/6(Gain)",...,"1/6(Sacrifice)"):}` Thus, T's share of Goodwill RS 25,000 (i.e., Rs 1,50,000 `xx` 1/6) is adjusted through R's Capital Account. |
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| 1008. |
Sacrificing Ratio: |
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Answer» NEW Ratio- OLD Ratio |
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| 1009. |
Rohit, a partner is to carry out dissolution and he gets Rs 50,000 as remuneration. Realisation Expenses were Rs 25,000. What will be the amount debited to Realisation Account ? |
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Answer» RS 50,000 |
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| 1010. |
R.K. Ltd., invited applications for issuing 80,000 equity shares of Rs. 10 each at a premium of Rs. 35 per share. The amount was payable as follows: On Application - Rs. 8 (including Rs. 5 premium) per share, On Allotment - 12 (including Rs. 10 premium) per share, On First and Final Call - Balance. Applications for 75,000 shares were received andallotment was made to all theapplicants. Rahim, a shareholder who was allotted 3,000 shares failed to pay allotment money and his shares were immediately forfeited. Afterwards, the first and final call was made. Suhani, who held 3,000 shares failed to pay final call. Her Shares were also forfeited. All theforfeited shares were reissued for a sum of Rs. 62,000 as fully paid-up. Pass necessary Journal entries for the above transactions in the books of R.K. Ltd. |
| Answer» Solution :GAIN on REISSUE offorfeited shares transferred to CAPITAL Reserve = RS. 24,000. | |
| 1011. |
R.K. Ltd. invited applications for issuing 70,000 Equity Shares of Rs. 10 each at a premium of Rs. 35 per share. The amount payable as follows : {:("On Application",,"Rs. 15 (including Rs. 12 premium)"),("On Allotment",,"Rs. 10 (including Rs. 8 premium)"),("On First and Final Call",,"Balance"):} Applications for 65,000 shares were received and allotment was made to all the applicants. A shareholder, Ra., who was allotted 2,000 shares, failed to pay the allotment money. His shares were forfeited immediately after allotment. Afterwards, the first and final call was made. Sohan, who has 3,000 shares, failed to pay the first and final call. His shares were also forfeited. Out of the forfeited shares, 4,000 shares were re-issued at Rs. 50 per share fully paid up. The re-issued included all the shares of Ram. Pass necessary journal entries for the above transactions in the books of R.K. Ltd. |
| Answer» SOLUTION :Forfeited AMOUNT in respect of Ram's shares RS. 6,000, Forfeited amount in respect of Sohan's shares Rs. 15,000, Amount TRANSFERRED to Capital Reserve Rs. 16,000 (Rs. 6,000 in respect of Ram's shares and Rs. 10,000 in respect of Sohan's shares). | |
| 1012. |
R.K. Ltd. invited application for issuing 70,000 Equity Shares of Rs. 10 each at a premium of Rs. Per share. The amount was payable as follows: {:("On Application",,-,,"Rs. 15 (including Rs. 12 premium),"),("On Allotment",,-,,"Rs.10 (including Rs. 8 premium),"),("On First and Final call",,-,,"Balance."):} Applications for 65,000 shares were received and allotment was made to all the applicants. A shareholder, Ram, who was allotted 2,000 shares, failed to pay theallotment money. His shares were forfeited immediately after allotment. Afterwards, the first and final call was made. Sohan, who had 3,000 shares, failed to pay the first and final call. His shares were also forfeited. Out of the forfeited shares, 4,000 shares were reissued at Rs. 50 per share fullypaid-up. The reissued shares uncluded all the shares of Ram. Pass necessary Journal entries for the above transactions in thebooks of R.K. Ltd. |
| Answer» SOLUTION :Amount TRANSFERRED to Capital Reserve - RS. 16,000, i.e.,Rs. 6,000 (RAM's Shares) + Rs. 10,000(SOHAN's Shares). Amount forfeited on Ram's Shares - Rs. 6,000 and Sohan's Shares - Rs. 15,000. | |
| 1013. |
reyamona and Nishasharedprofits in therato of 3:2:1theprofitsfor thelastthree yearwereRs.1,00,000 Rs. Rs. 84,000andRs. 1,06,000respectivelytheseproitswere wereby mastakeshared equallyit isis nowdiciededto correctthe error .givethenecessaryrecification entry . |
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| 1014. |
Ritu and Gurpreet are partners in a firm. On 1st April, 2017, their capitals were Rs 2,00,000 and Rs 3,00,000 respectively. They decided to adopt a school in the locality and develop play ground, instal drinking water facility and develop toilets. They decided to earmark 10% of the net profit every year for the above purpose. Identify any four values that were adopted by Ritu and Gurpreet. |
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| 1015. |
Rishi is a partner in a firm. He withdrew the following amounts during the year ended March 31, 2017. {:("May "01", "2017,,"Rs. "12_(,)000,),("July "31", "2017,,"Rs."6_(,)000,),("September "30", "2017,,"Rs."9_(,)000,),("November "30", "2017,,"Rs. "12_(,)000,),("January "01", "2018,,"Rs."8_(,)000,),("March "31", "2018,,"Rs."7_(,)000,):} Interest on drawings is charged@ 9%p.a. Calculate interest on drawings |
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| 1016. |
Ritesh and Hitesh are childhood friends. Ritesh is a consultant whereas Hitesh is an architect. They contributed equal amounts and purchased a building for Rs.2 caores. After a year, they sold it for Rs.3 crores and shared the profits equally. Are they doing the business in partnership? Give rason in support of your answer. |
| Answer» Solution :YES, RITESH and Hitesh are doing business in PARTNERSHIP the building with the INTENTION to SELL it. | |
| 1017. |
Revenue from sale of Stock-in-Trade is shown in the Statement of Profit and Loss as: |
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Answer» REVENUE from OPERATIONS, |
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| 1018. |
Revenue from sale of scrap from goods manufactured is shown in the Statement of Profit and Loss as: |
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Answer» REVENUE from OPERATIONS, |
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| 1019. |
Revenue from sale of goods manufactured is shown in the statement of Profit and Loss as: |
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Answer» REVENUE from OPERATIONS |
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| 1020. |
Revenue from operations Rs.9,00,000. Gross Profit 25% on Cost , Operating Expenses Rs.90,000. Operating Ratio will be |
| Answer» ANSWER :C | |
| 1021. |
Revenue from Operations Rs 9,00,000, Gross Profit 25% on Cost, Operating Expenses Rs 90,000, Operating Ratio will be |
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Answer» 1 |
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| 1022. |
Revenue From Operations Rs. 8,00,000 , Gross Profit 32% , Indirect Exp. 10% of Gross Profit and income tax 40% . What will be the amount of profit after tax ? |
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Answer» RS. 1,38,240 |
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| 1023. |
Revenue from Operations Rs. 4,00,000 , Cost of Revenue from Operations 60% of Revenue from Operation, indirect expenses 15% of Gross Profit, Income Tax 40% . Calculate net profit after tax. |
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Answer» RS. 64,000 |
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| 1024. |
Revenue from Operations Rs. 8,00,000, Gross profit Ratio 25%, Opening Inventory Rs. 1,00,000, Closing Inventory Rs. 60,000. Inventory Turnover Ratio will be: |
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Answer» 10 TIMES |
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| 1025. |
Revenue from Operations Rs. 6,00,000, Gross Profit 20%, Office Expenses Rs. 30,000, Selling Expenses Rs. 48,000. Calculate operating ratio |
| Answer» ANSWER :D | |
| 1026. |
Revenue from Operations less cost of Revenue froom Operations is called : |
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Answer» NET Profit |
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| 1027. |
Revenue From Operations Rs. 4,00,000 , Cost of Revenue from Operations 60% of Revenue from Operation, Operating expense Rs. 30,000 and rate of income tax is 40% . What will be amount of profit after tax? |
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Answer» RS. 64,000 |
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| 1028. |
Revenue from operations Rs. 2,00,000, Inventory Turnover Ratio 5, Gross Profit 25%. Find out the value of Closing Inventory, if Closing Inventory is Rs. 8,000 more than the Opening Inventory. |
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Answer» RS. 38,000 |
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| 1029. |
Revenue from operations is Rs. 1,80,000, Rate of Gross Profit is 25% on cost. What will be the Gross Profit? |
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Answer» RS. 45,000 |
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| 1030. |
Revaluation Account or Profit and Loss Adjustment Account is a |
| Answer» Solution :Nominal A/c | |
| 1031. |
Revaluation Account is prepared at the time of |
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Answer» ADMISSION of partner |
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| 1032. |
Retring partner is compensated for parting with the firm's future profits in favour of remaining partners. The remaining partners contribute to such compensation amount in : |
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Answer» GAINING RATIO |
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| 1033. |
Retiring partner is compensated by thecontinuing partners in their |
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Answer» GAINING RATIO. |
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| 1034. |
Retiring partner is compensated by the continuing partners in their |
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Answer» GAINING RATIO |
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| 1035. |
(Reserves and Surplus). Name any five items that are shown under Reserves and Surplus. |
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Answer» (II) Capital REDEMPTION Reserve, (III) Scurities Permium Reserve, (iv) Debentures Redemption Reserve (DRR), and (V) Revaluation Reserve. |
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| 1036. |
Refer to Q.10, calculate the amount of purchase of Machinery |
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Answer» RS 1,50,000 |
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| 1037. |
Refer to Q.10, calculate Gain (profit) on sale of Machinery |
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Answer» RS 6,000 |
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| 1038. |
Reena and Raman are partners in a firm sharing profits in the ratio of 4:3. They admitted Roma as a new profit-sharing between Reena, Raman and Roma was 3:2:2. Raman surrendered 1/3rd of his share in favour of Roma. Calculate Reena's sacrifice. |
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Answer» SOLUTION :RAMAN's SACRIFICE `=3/7xx1/3=1/7` Roma's Share`=2/7` THEREFORE Reena's Sacrifice = Roma's Share-Raman's Sacrifice `=2/7-1/7=1/7.` ALTERNATIVE Method: Reena's Old share `=4/7,` Reena's New Share `=3/7` Reena's Sacrifice = Old Share-New Share `=4/7-3/7=1/7.` |
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| 1039. |
Refer to Q. 10 calculate the amount of purchase of Machinery. |
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Answer» Rs.1,50,000. |
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| 1040. |
Reemaand seema are partnerssharing profits equally, thepartnershhip Deed providesthatbothreema andseemawill get mothly salary of Rs. 15,000eachintereston capital willbe allowed@5% p.a and intereston drawings will becharged @10% p.atheir capitalswereRs.5,00,000eachanddrawingsduringthe yearwere Rs. 60,000 each . the firm incurred net loss of Rs. 1,00,000duringthe yearended31st March 2019, prepareprofitand lossofappropriation account for theyearended31st March,2019. |
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Answer» |
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| 1041. |
Refer to Q. 10 calculate Gain (profit) on sale of Machinery. |
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Answer» Rs.6,000. |
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| 1042. |
Reema and Seemaare partnerssharingprofits and losses in theratio of 4:1 . Theydecide toshare profitin the ratio of 3:2 w.e.f1st April , 2018. Howere, the decisionto changetheprofit-sharingratiowas takenafter crediting share of profitfor the year ended 31st March, 2019, to respective CapitalAccount, whichwas ₹1,00,000. Goodwill of thefirmasat 1stApril, 2018 was valued at ₹ 75,000. Capital Accounts creditbalance as at 31st March, 2019 wereReema - ₹ 5,00,000 and Seema - ₹ 6,00,000. Pass necessaryJournalentries and prepare Capital Accounts. |
Answer» Solution : Working NOTES: 1. Calcuationof Sacrifing/(Gaining)Share of EachPartners : `{:(,,"Reema","Seema"),(("A"),"Existing Share",4//5,1//5),(("B"),"New Share", 3//5, 2//5),(("C"),"Sacrifice/(GAIN)(A-B)", =(4-3)/(5),=(1-2)/(5)),(,,1//5("Sacrifice") , -1//5 ("Giain")):}` 2. Valueof Goodwill= ₹ 75,000 `therefore` Seema(Gaining Partner) will compensate Reema(Sacrifing Partner ) ₹ 15,000 (i.e.,1/5th of ₹ 75,000). 3. Adjustmentfor Share of Profit: `{:(,"Reema(₹)","Seema(₹)"),("Profit already distribued in oldratio (4:1),now debited", "80,000","20,000"),("Profit to bedistributed in new ratio (3:2),now credited Differnce" ,60000,4000),(,overlineunderline20000 ("Dr"), overlineunderline(20000)("Cr.")):}` |
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| 1043. |
Reena and Raman are partners with capitals of Rs. 3,00,000 and Rs. 1,00,000 respectively. The profit (as per Profit and Loss Account) for the year ended March 31, 2017 was Rs. 1,20,000. Interest on capital is to be allowed at6%p.a. Raman was entitled to a salary of Rs. 30,000 p.a. The drawings of partners were Rs. 30,000 and 20,000. The interest on drawings to be charged to Reena was Rs. 1,000 and to Raman, Rs. 500. Assuming that Reena and Raman are equal partners. State their share of profit after necessary appropriations. |
| Answer» SOLUTION :PROFIT : REENA, RS. 33,750, RAMAN, Rs. 33,750 | |
| 1044. |
Redfort Finance Ltd., a financial company, had invested its surplus funds of Rs 10,00,000 in 10% Deposit with Tata Housing Ltd. Is the interest received on the deposit Revenue from Operations or Other Income? Give reasons. |
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Answer» |
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| 1045. |
Redemption of Debentures' would result in inflow, outflow or no flow of cash. Give your answer with reason. |
| Answer» SOLUTION :Redemption of debentures WOULD result in OUTFLOW of cash because it is a payment and thus, decreases cash. | |
| 1046. |
Record the Journal entries for forfeiture and reissue of shares in the following cases: (i)Basak Ltd. Forfeited 20 shares of Rs. 10 each, Rs. 7 called-up on which the shareholder had paid applicationand allotment money of Rs. 5 per share. Out of these, 15 share were reissuedto Naresh as Rs.7 per share paid-up for Rs. 8 per share. (ii) Y Ltd. forfeited 90 shares of Rs. 10 each, Rs. 8 called-up issued at a premium of Rs. 2 per shareto 'R' for non-payment of allotment money of Rs. 5 pershare (including premium). Out of these, 80 shares were reissued to Sanjay as Rs. 8 called-up for Rs. 10 per share. |
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| 1047. |
Receiptsand Payments Account is a summary of |
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Answer» Debit and Credit balance of LEDGER Account. |
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| 1048. |
Receipts and Payments Account is prepared on |
| Answer» Solution :Cash Basis | |
| 1049. |
Receipts and Payments Account is a |
| Answer» Solution :Real Account | |
| 1050. |
Receipt and Payment Account of Maitrey Sports Club showed that Rs. 68,500 were received by way of subscriptions for the year ended on March 31, 2017. The additional information was as under: 1. Subscription Outstanding as on March 31, 2016 were Rs. 6,500. 2. Subscription received in advance as on March 31, 2016 were Rs. 4,100, 3. Subscription Outstanding as on March 31, 2017 were Rs. 5,400 4. Subscription received in advance as on March 31, 2017 were Rs. 2,500. Show how that above information would appear in the final accounts for the year ended on March 31, 2017 of Maitrey Sports Club. |
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Answer» |
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