2955 + Interview Questions in Accounts in Class 12 Page 25 InterviewSolution

1201.	Out of the following , which is Unrestricted Fund ?
Answer» ANNUITY FUND Sports Fund CAPITAL Fund Endowment fund Solution :Capital Fund

Discussion

1202.	Out of the following which is Unrestricted Fund ?
Answer» ANNUITY FUND Sports Fund CAPITAL Fund Endowment Fund Solution :Capital Fund

Discussion

1203.	Out of the following items, which is not shown in the 'Receipts and Payments A/c of a not for profit organisation?
Answer» SUBSCRIPTION RECEIVED in ADVANCE Subscription DUE LAST year subscription received All of the above Answer :B

Discussion

1204.	Out of the following items, which is shown in the 'Receipts and Payments A/c' of a not for profit organisation?
Answer» SUBSCRIPTION received in advance LAST year subscription received Current year subscription received All of the above ANSWER :D

Discussion

1205.	Out of the following, identify the items that are shown in the Notes to Accounts on Finance Costs: (i) Interest paid on Term Loan, (ii) Interest paid on Bank Overdraft, (iii) Discount on Issue of Debentures Written off, (iv) Interest Received on Fixed Deposits and (v) Bank Charges.
Answer» Solution :Items that will be shown in the Notes to Accounts on Finance Costs are: (i) Interest PAID on TERM Loan, (ii) Interest Paid on Bank Overdraft and (iii) DISCOUNT on Issue of DEBENTURES Written off.

Discussion

1206.	Out of the following items, which one is shown in the 'Receipts and Payments Account' of a not for profit organisation?
Answer» ACCRUED SUBSCRIPTION Outstanding SALARY Depreciation None of these Answer :D

Discussion

1207.	Out of the following items, identify the item that is not shown in the Note to Accounts on Employees Benefit Expenses
Answer» Wages BUSINESS PROMOTION Bonus Gratuity paid Solution :Business Promotion

Discussion

1208.	Out of the following, identify the items that are shown in the Note to Accounts On Finance Costs: (i) Interest paid on Borrowing from Price Finance Ltd, (ii) Interest paid on Term Loan to Bank, (iii) Interest paid on Public Deposits, (iv) Loss on Issue of Debentures Written off,and (v) Bank Charges.
Answer» Solution :(i) Interest PAID on Borrowings from PRINCE Finance Ltd; (ii) Interest paid on TERM Loan to BANK; (iii) Interest paid on Public Deposits; (IV) Loss on Issue of Debentures Written off.

Discussion

1209.	Out of the following, identify the items that are shown in the Note to Accounts on Employees Benefit Expenses: (i) Wages, (ii) Salaries, (iii) Entertainment Expenses, (iv) Bonus, (v) Gratuity Paid, and (vi) Conveyance Expenses.
Answer» Solution :ITEMS to be SHOWN in Note to ACCOUNTS on EMPLOYEES Benefit EXPENSES are : (i) Wages, (ii) Salaries, (iv) Bonus and (v) Gratuity Paid.

Discussion

1210.	Out of the following, identify the item that is not shown in the Note to Accounts on Fianance Costs
Answer» INTEREST PAID on TERM loan Bank Deposit Interest Paid on Bank Overdraft Discount on Issue of Debentures Written off Solution :Bank Deposit

Discussion

1211.	Out of current ratio and liquid ratio which ratio is better indicator of liquidty position of a firm?
Answer»

Discussion

1212.	(Other Current Liabilities). Name any five items that are shown under Other Current Liabilities.
Answer» Solution :(i) Current Maturities of Long-term DEBTS, (ii) Interset ACCRUED but not due on Borrowings, (iii) INTEREST Accrued and due on Borrowings, (iv) SHARE APPLICATION Money (Refundable), and (v) Calls-in-Advance.

Discussion

1213.	operating Ratio measures the relationship between operating cost and sales
Answer»

Discussion

1214.	Out of following items. which one is shown in the Receipts and Payments Account?
Answer» OUTSTANDING SALARY DEPRECIATION Life MEMBERSHIP FEES Accrued Subscription Answer :C

Discussion

1215.	Operating Ratio is lower than the industry standard. Is it good for the firm?
Answer» Solution : It is GOOD for the firm as it SHOWS that the firm has better OPERATING efficiency. It has better controlover expenses

Discussion

1216.	Operating ratio is :
Answer» COST of revenue from OPERATIONS + Selling Expenses/Net revenue from operations Cost of PRODUCTION + OPERATING Expenses/Net revenue from operations Cost of revenue from operations + Operating Expenses/Net Revenue from Operations Cost of Production/Net revenue from operations. Answer :C

Discussion

1217.	Opening Inventory Rs. 50,000, Closing Inventory Rs. 40,000 and cost of revenue from operationsRs. 7,20,000. What will be Inventory TurnoverRatio?
Answer» 18 TIMES 16 Times 14.4 Times 8 Times ANSWER :B

Discussion

1218.	Opening Inventory (Stock): Rs 60,000, Closing Inventory (Stock): Rs. 1,00,000, Inventory (Stock) Turnover Ratio: 8 Times, Selling Price: 25% above cost. Claculate Gross Profit Ratio.
Answer» Solution :GROSS Profit RATIO = 20%. NOTE: Cost of GOODS Sold = Rs. 6,40,000, Sales = Rs. 8,00,000.

Discussion

1219.	Opening Inventory Rs. 75,000, Closing Inventory Rs. 1,05,000, Inventory Turnover Ratio6, Gross Profit 20% on cost, what will be Gross Profit?
Answer» RS. 1,35,000 Rs. 1,08,000 Rs. 90,000 Rs. 18,000 Answer :B

Discussion

1220.	Opening Inventory Rs. 40,000, Purchase Rs. 4,00,000, Purchase Return Rs. 12,000, what will be Inventoryturnover ratio if Closing inventory is less than Opening Inventory by Rs. 8,000?
Answer» 9 Times 10.78 Times 11 Times 8.82 Times Answer :C

Discussion

1221.	Opening Inventory Rs. 1,00,000, Closing Inventory Rs. 1,50,000, Purchases Rs. 6,00,000, Carriage Rs. 25,000. Wages Rs. 2,00,000. Inventory Turnover Ratio will be:
Answer» 6.6 TIMES 7.4 Times 7 Times 6.2 Times Answer :D

Discussion

1222.	Opening Inventory Rs. 1,00,000, Closing Inventory Rs. 1,20,000, Purchases Rs. 20,00,000, Wages Rs. 2,40,000, Carriage Inwards Rs. 1,50,000, Selling Exp. Rs. 60,000, Revenue from Operations is Rs. 30,00,000. Gross Profit ratio will be :
Answer» `29%` `26%` `19%` `21%` ANSWER :D

Discussion

1223.	Opening Inventory of a firm is Rs. 80,000. Cost of revenue from operations is Rs. 6,00,000. Inventory Turnover Ratio is 5 times. Its closing Inventory will be:
Answer» RS. 1,60,000 Rs. 1,20,000 Rs. 80,000 Rs. 2,00,000 Answer :A

Discussion

1224.	oneof thepartnersin a pertnershipfirmhaswithdrawnRs,. 9,000at theendof eachquarterthroughouttheyearcalculateintereston drawingsat therateof 6 %perannum ,
Answer» ANSWER :INTERESTON drawings-rs. 810

Discussion

1225.	One of the objectives of 'Financial Statements Analysis' is to judge the ability of the firm to repay its debt and assessing the short-term as well as the long-term liquidity position of the firm. State two more objectives of this analysis.
Answer» Solution :(i) To determine OPERATIONAL efficiency with which RESOURCES are utilised in generating revenue. (II) To determine profitability with RESPECT to sales and INVESTMENT.

Discussion

1226.	One of the partners in a partnership firm has withdrawn Rs.9,000 at the of each quarter, throughout the year. Calculate interest on drawings at the rate of 6% per annum.
Answer» Solution :Total DRAWINGS during the year = Rs.`9,000xx4=Rs.36,000.` Interest on drawings = Rs.`36,000xx9//2^(*)xx1//12xx6//100=Rs.810.` Average PERIOD `=("MONTHS left after first drawing+Months left after LAST drawing")/(2)` `=(9+0)/(2)=4.5"Months."`

Discussion

1227.	One of the objectives of 'Financial Statement Analysis' is to ascertain the relative importance of the different components of the financial position of the firm. State two more objectives of this analysis.
Answer» Solution :(i) To determine profitability with respect to sales. (II) To compare inter-firm position and to IDENTIFY the strong and weak areas (if any) and to take NECESSARY corrective ACTION.

Discussion

1228.	One of the partners in a partnership firm has withdrawn . Rs 9,000 at the en of each quarter, throughout the year. Calculate interest on drawings at the rate of 6 % per annum.
Answer» SOLUTION :Interest on drawings = .RS `9,000 XX 4 xx ( 6//100) xx ( 4.5 //12) = .Rs 810

Discussion

1229.	One of the objectives of 'Financial Statements Analysis' is to identify the reasons for change in the financial position of the enterprise. State two more objectives of this analysis.
Answer» SOLUTION :(i) To determine OPERATIONAL efficiency with which resources are utilised in generating revenue. (ii) To determine PROFITABILITY with respect to SALES and capital employed or invested.

Discussion

1230.	Once the debentures are redeemed, amount of Debenture Redemption Reserve (DRR) is transferred to
Answer» CAPITAL RESERVE. Surplus IE BALANCE in Statement of profit and Loss. General Reserve Capital Redemption Reserve. Solution :General Reserve

Discussion

1231.	On what conditions can forfeited shares be reissued?
Answer» Solution :FORFEITED Shares BECOME the property of the company and the company can reissue them at PAR, at premium or at discount. HOWEVER, discount cannot EXCEED the amount forfeited.

Discussion

1232.	On the retirement of a partner how is the profit-sharing ratio of the remaining partners decided ?
Answer» SOLUTION :Profit-sharing ratio of the REMAINING partners is DECIDED as per the mutual agreement among the remaining partners.

Discussion

1233.	On the death of partner his legal representatives are entitled to the profit
Answer» For the full year. From the date of death TILL the finalisation of accounts. BEGINNING of the FINANCIAL year up to date of death. None of the above. Solution :Beginning of the financial year up to date of death.

Discussion

1234.	On the death of the partner his legal representatives are entitled to the profit
Answer» For the full YEAR From the DATE of death TILL the finalisation of accounts Begining of the FINANCIAL year up to the date of death None of the above Solution :Begining of the financial year up to the date of death

Discussion

1235.	On the death of a partner, the amount due to him will be credited to :
Answer» All PARTNER's Capital ACCOUNTS REMAINING partner's Capital Accounts His Executor's ACCOUNT Governments'Revenue Account Answer :C

Discussion

1236.	On the basis of the following information, calculate the amount of subscriptions to be credited to the Income and Expenditure Account of Good Health Sports Club for the year ended 31st March, 2018: {:(,"April, 2017 (Rs)","31st March, 2018 (Rs)"),("Subscriptions outstanding","5,000","3,900"),("Subscriptions received in advance","3,000","4,500"),("subscriptions on 1st April,2017",,):}
Answer» SOLUTION :SUBSCRIPTIONS to be CREDITED to INCOME and Expenditure Account -Rs 67,400.

Discussion

1237.	On the basis of the information given below, calculate the of stationery to be debited to the Income and Expenditure Account of Good Health Sports Club for the year Stationery purchased during the year ended 31st March, 2018
Answer» Solution : NOTES: 1. STATIONERY CONSUMED (2012-18) = Opening Stock + Purchase- Closing Stock = Rs. 8,000 + Rs. 74,000-Rs. 6,000= Rs. 49,000 2. Opening and closing CREDITORS are IGNORED as they are already adjusted in purchase.

Discussion

1238.	On the basis of information give below, calculate the amount of medicines to be debited to the Income and Expenditure Account of Good Health Hospital for the year ended 31st March, 2018 Medicines purchased during the year ended 31st March, 2018 were Rs.60,80,700.
Answer» SOLUTION :Medicines Consumed RS. 61,11,800 to be Income and Expenditure ACCOUNT.

Discussion

1239.	On the basis of the following information, calculate:(i) Debt to Equity Ratio and (ii) Working Capital Turnover Ratio.
Answer» Solution :(i) Debt to Equity Ratio = 0.5 : 1. Working Capital Turnover: 5.63 Times (Based on Cost of Revenue from Operations, i.e., Cost of Goods Sold) or 7.5 Times (Based on Revenue from Operations). Working Notes:1. Debt = 6% DEBENTURES + 9% LOAN = Rs. 4,00,000. 2. Equity = SHARE Capital + DRR = Rs. 8,00,000.

Discussion

1240.	On the basis of following information received from a firm, its Total Assets-Debt Ratio will be: Working Capital Rs. 3,20,000, Current Liabilities Rs. 1,40,000, Fixed Assets Rs. 2,60,000, Debentures Rs. 2,10,000, Long Term Bank Debt Rs. 78,000.
Answer» `40%` `60%` `30%` `70%` ANSWER :A

Discussion

1241.	On the basis of following information received from a firm, its Debt-Equity Ratio will be: Equity Share Capital Rs. 5,80,000, Reserve Fund Rs. 4,30,000, Prelilminary Expenses Rs. 40,000, Long term Debts Rs. 1,28,900, Debentures Rs. 2,30,000.
Answer» `.42:1` `.53:1` `.63:1` `.37:1` ANSWER :D

Discussion

1242.	On the basis of following data, the Working Capital Turnover Ratio of a company will be : Liquid Assets Rs. 3,70,000, Inventory Rs. 80,000, Current Liabilities Rs. 1,50,000, Cost of revenue from operations Rs. 7,50,000.
Answer» 2.5 TIMES 3 Times 5 Times 3.8 Times Answer :A

Discussion

1243.	On the basis of following data, the liquid ratio of a company will be : Current Ratio 5:3, Current Liabilities Rs. 75,000 and Inventory Rs. 25,000
Answer» `1:1` `2:1.8` `3:2` `4:3` ANSWER :D

Discussion

1244.	On the basis of following information received from a firm, its Proprietary Ratio will be: Fixed Assets Rs. 3,30,000, Current Assets Rs. 1,90,000, Preliminary Expenses Rs. 30,000, Equity Share Capital Rs. 2,44,000, Preference Share Capital Rs. 1,70,000, Reserve Fund Rs. 58,000.
Answer» `70%` `80%` `85%` `90%` ANSWER :C

Discussion

1245.	On the basis of following data, the Debt-Enquity Ratio of a Company will be: Enquity Share Capital Rs. 5,00,000, General Reserve Rs. 3,20,000, Preliminary Expenses Rs. 20,000, Debentures Rs. 3,20,000, Current Liabilities Rs. 80,000.
Answer» `1:2` `.52:1` `.4:1` `.37:1` ANSWER :C

Discussion

1246.	On the basis of following data, a Company's Total Assets-Debt Ratio will be: Working Capital Rs. 2,70,000, Current Liabilities Rs. 30,000, Fixed Assets Rs. 4,00,000, Debentures Rs. 2,00,000, Long Term Bank Loan Rs. 80,000.
Answer» `37%` `40%` `45%` `70%` ANSWER :B

Discussion

1247.	On the basis of following data, the proprietary ratio of a Company will be: Equity Share Capital Rs. 6,00,000, Debentures Rs. 2,40,000, Statement of Profit & Loss Debit Balance Rs. 40,000.
Answer» `74%` `65%` `82%` `70%` ANSWER :D

Discussion

1248.	On the basis of following data, the cost of revenue from operations by a company will be: Opening Inventory Rs. 70,000, Closing Inventory Rs. 80,000, Inventory Turnover Ratio 6 Times.
Answer» RS. 1,50,000 Rs. 90,000 Rs. 4,50,000 Rs. 4,80,000 Answer :C

Discussion

1249.	On the basis of folllowing data, what final payment to a partner on firm's dissolution will be made. Debit balance of Capital Account Rs 14,000. Share of his profit on realisation Rs 43,000. Firm's asset taken by him for Rs 17,000
Answer» RS 31,000 Rs 29,000 Rs 12,000 Rs 60,000 Answer :C

Discussion

1250.	On the basis of following data, a Company's closing debtors will be: Credit revenue from operations Rs. 9,00,000, Average Collection period 2 months, Opening debtors are Rs. 15,000 less as compared to closing debtors.
Answer» RS. 1,42,500 Rs. 1,57,500 Rs. 1,80,000 Rs. 75,000 Answer :B

Discussion

Explore topic-wise InterviewSolutions in .

Out of the following , which is Unrestricted Fund ?

Out of the following which is Unrestricted Fund ?

Out of the following items, which is not shown in the 'Receipts and Payments A/c of a not for profit organisation?

Out of the following items, which is shown in the 'Receipts and Payments A/c' of a not for profit organisation?

Out of the following, identify the items that are shown in the Notes to Accounts on Finance Costs: (i) Interest paid on Term Loan, (ii) Interest paid on Bank Overdraft, (iii) Discount on Issue of Debentures Written off, (iv) Interest Received on Fixed Deposits and (v) Bank Charges.

Out of the following items, which one is shown in the 'Receipts and Payments Account' of a not for profit organisation?

Out of the following items, identify the item that is not shown in the Note to Accounts on Employees Benefit Expenses

Out of the following, identify the items that are shown in the Note to Accounts on Employees Benefit Expenses: (i) Wages, (ii) Salaries, (iii) Entertainment Expenses, (iv) Bonus, (v) Gratuity Paid, and (vi) Conveyance Expenses.

Out of the following, identify the item that is not shown in the Note to Accounts on Fianance Costs

Out of current ratio and liquid ratio which ratio is better indicator of liquidty position of a firm?

(Other Current Liabilities). Name any five items that are shown under Other Current Liabilities.

operating Ratio measures the relationship between operating cost and sales

Out of following items. which one is shown in the Receipts and Payments Account?

Operating Ratio is lower than the industry standard. Is it good for the firm?

Operating ratio is :

Opening Inventory Rs. 50,000, Closing Inventory Rs. 40,000 and cost of revenue from operationsRs. 7,20,000. What will be Inventory TurnoverRatio?

Opening Inventory (Stock): Rs 60,000, Closing Inventory (Stock): Rs. 1,00,000, Inventory (Stock) Turnover Ratio: 8 Times, Selling Price: 25% above cost. Claculate Gross Profit Ratio.

Opening Inventory Rs. 75,000, Closing Inventory Rs. 1,05,000, Inventory Turnover Ratio6, Gross Profit 20% on cost, what will be Gross Profit?

Opening Inventory Rs. 40,000, Purchase Rs. 4,00,000, Purchase Return Rs. 12,000, what will be Inventoryturnover ratio if Closing inventory is less than Opening Inventory by Rs. 8,000?

Opening Inventory Rs. 1,00,000, Closing Inventory Rs. 1,50,000, Purchases Rs. 6,00,000, Carriage Rs. 25,000. Wages Rs. 2,00,000. Inventory Turnover Ratio will be:

Opening Inventory Rs. 1,00,000, Closing Inventory Rs. 1,20,000, Purchases Rs. 20,00,000, Wages Rs. 2,40,000, Carriage Inwards Rs. 1,50,000, Selling Exp. Rs. 60,000, Revenue from Operations is Rs. 30,00,000. Gross Profit ratio will be :

Opening Inventory of a firm is Rs. 80,000. Cost of revenue from operations is Rs. 6,00,000. Inventory Turnover Ratio is 5 times. Its closing Inventory will be:

oneof thepartnersin a pertnershipfirmhaswithdrawnRs,. 9,000at theendof eachquarterthroughouttheyearcalculateintereston drawingsat therateof 6 %perannum ,

One of the objectives of 'Financial Statements Analysis' is to judge the ability of the firm to repay its debt and assessing the short-term as well as the long-term liquidity position of the firm. State two more objectives of this analysis.

One of the partners in a partnership firm has withdrawn Rs.9,000 at the of each quarter, throughout the year. Calculate interest on drawings at the rate of 6% per annum.

One of the objectives of 'Financial Statement Analysis' is to ascertain the relative importance of the different components of the financial position of the firm. State two more objectives of this analysis.

One of the partners in a partnership firm has withdrawn . Rs 9,000 at the en of each quarter, throughout the year. Calculate interest on drawings at the rate of 6 % per annum.

One of the objectives of 'Financial Statements Analysis' is to identify the reasons for change in the financial position of the enterprise. State two more objectives of this analysis.

Once the debentures are redeemed, amount of Debenture Redemption Reserve (DRR) is transferred to

On what conditions can forfeited shares be reissued?

On the retirement of a partner how is the profit-sharing ratio of the remaining partners decided ?

On the death of partner his legal representatives are entitled to the profit

On the death of the partner his legal representatives are entitled to the profit

On the death of a partner, the amount due to him will be credited to :

On the basis of the information given below, calculate the of stationery to be debited to the Income and Expenditure Account of Good Health Sports Club for the year Stationery purchased during the year ended 31st March, 2018

On the basis of information give below, calculate the amount of medicines to be debited to the Income and Expenditure Account of Good Health Hospital for the year ended 31st March, 2018 Medicines purchased during the year ended 31st March, 2018 were Rs.60,80,700.

On the basis of the following information, calculate:(i) Debt to Equity Ratio and (ii) Working Capital Turnover Ratio.

On the basis of following information received from a firm, its Total Assets-Debt Ratio will be: Working Capital Rs. 3,20,000, Current Liabilities Rs. 1,40,000, Fixed Assets Rs. 2,60,000, Debentures Rs. 2,10,000, Long Term Bank Debt Rs. 78,000.

On the basis of following information received from a firm, its Debt-Equity Ratio will be: Equity Share Capital Rs. 5,80,000, Reserve Fund Rs. 4,30,000, Prelilminary Expenses Rs. 40,000, Long term Debts Rs. 1,28,900, Debentures Rs. 2,30,000.

On the basis of following data, the Working Capital Turnover Ratio of a company will be : Liquid Assets Rs. 3,70,000, Inventory Rs. 80,000, Current Liabilities Rs. 1,50,000, Cost of revenue from operations Rs. 7,50,000.

On the basis of following data, the liquid ratio of a company will be : Current Ratio 5:3, Current Liabilities Rs. 75,000 and Inventory Rs. 25,000

On the basis of following information received from a firm, its Proprietary Ratio will be: Fixed Assets Rs. 3,30,000, Current Assets Rs. 1,90,000, Preliminary Expenses Rs. 30,000, Equity Share Capital Rs. 2,44,000, Preference Share Capital Rs. 1,70,000, Reserve Fund Rs. 58,000.

On the basis of following data, the Debt-Enquity Ratio of a Company will be: Enquity Share Capital Rs. 5,00,000, General Reserve Rs. 3,20,000, Preliminary Expenses Rs. 20,000, Debentures Rs. 3,20,000, Current Liabilities Rs. 80,000.

On the basis of following data, a Company's Total Assets-Debt Ratio will be: Working Capital Rs. 2,70,000, Current Liabilities Rs. 30,000, Fixed Assets Rs. 4,00,000, Debentures Rs. 2,00,000, Long Term Bank Loan Rs. 80,000.

On the basis of following data, the proprietary ratio of a Company will be: Equity Share Capital Rs. 6,00,000, Debentures Rs. 2,40,000, Statement of Profit & Loss Debit Balance Rs. 40,000.

On the basis of following data, the cost of revenue from operations by a company will be: Opening Inventory Rs. 70,000, Closing Inventory Rs. 80,000, Inventory Turnover Ratio 6 Times.

On the basis of folllowing data, what final payment to a partner on firm's dissolution will be made. Debit balance of Capital Account Rs 14,000. Share of his profit on realisation Rs 43,000. Firm's asset taken by him for Rs 17,000

On the basis of following data, a Company's closing debtors will be: Credit revenue from operations Rs. 9,00,000, Average Collection period 2 months, Opening debtors are Rs. 15,000 less as compared to closing debtors.