Explore topic-wise InterviewSolutions in .

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.

1351.

Name the major headings under which the Assets part of a company's Balance Sheet is organised and presented.

Answer»

SOLUTION :The MAJOR headings on the ASSETS part are:
(i) Non-CURRENT Assets (ii) Current Assets.
Discussion
1352.

On 1st Apirl, 2016, Sunster Ltd. Issued10,000, 12% Debentures of ₹ 100 each at a discount of 5% redeemable at par as follows: {:("On 31st March, 2017","2,000 Debentures,"),("On 31st March, 2018","5,000 Debentures,"),("On 31st March, 2019","3,000 Debentures,"):} Interest is paid annully on 31st March . You are required to pass the Journal entries, including for interest for the three yearsand prepare Discount on Issue of Debentures Account.

Answer»

SOLUTION :
Discussion
1353.

Name the items that are shown under Long-term Borrowings.

Answer»

SOLUTION :i) Bonds; ii) DEBENTURES; iii) Long-term LOAN from Bank; iv)Long-term LOANS from Others; v) Public Deposits.
Discussion
1354.

On 1 st April, 2016, Alok Ltd. Issued 7,000, 10% Debentures of Rs. 500 each at a premium of 5% and redeemable at a premium of 10% after5 years. According to theterms of issue, Rs.200 was payable on application and balance on allotment. Record necessary entries regarding issue of debentures and writing off loss on issue of debentures.

Answer»

SOLUTION :
Discussion
1355.

On 1-4-2017, Fast Computer Ltd. Issued 20,000, 6% debentures of Rs. 100 each at a discount of 4% redeemable at a premium of 5% after three years. The amount was payable as follows : Onapplication Rs. 50 per debenture. Balance on allotment. Fast Computer has a balance of Rs.50,000 in Securities Premium Reserve andRs. 1,00,000 in General Reserve. Profit for the year was Rs.75,000. Pass the journal entries for issue of debentures and writing off theloss on issue ofdebentures.

Answer»

SOLUTION :
Discussion
1356.

Name the item out of the following which appears as short-term Provision

Answer»

PROVISION for TAX
Interest ACCRUED but not Due
Employee's PROVIDENT Fund
None of these

Solution :Provision for Tax
Discussion
1357.

On 1-4-2008 Bharat Ltd. Issued 6,000 9% debentures of Rs.100 each at a discount of 10%. These debentures were redeemable in four instalments starting from the end of thrid year. The amount of debentures to be redeemed at the end of third, fourth, fifth and sixth year was as follows : {:("Year","Amount of Debentures to be redeemed"),(,Rs.),(III,"1,00,000"),(IV,"1,00,000"),(V,"2,00,000"),(VI,"2,00,000"):}Prepare 9% Debentures Account for the years 2008-09 to 2013-14.

Answer»

SOLUTION :
Discussion
1358.

Name the head under which Unclaimed Dividend is shown in the Balance Sheet of the company.

Answer»


SOLUTION :N/a
Discussion
1359.

On 1-1-2010 a Public Limited Company issued 15,000, 10% Debentures of Rs.100 each at par which were repayable at a Premium of 15% on 31-3-2015. On the date of maturity, the company decided to redeem the above mentioned 10% Debentures as per the terms of issue, out of profits. Required investment is made on 30th April, 2014 in fixed deposit bearing interest @8% p.a. Bank deducted TDS @10% on its maturity i.e. 31st March 2015. Pass the necessary journal entries in the books of the Company for the redemption of Debentures.

Answer»

SOLUTION :DEBENTURE REDEMPTION Reserve Created for Rs.15,00,000. Debenture Redemption Investment Rs.2,25,000, INTEREST on Investment Rs.16,500. TDS Rs. 1,650.
Discussion
1360.

Name the head under which the 'Current Maturity of Long'term Debts' is shown in the company's Balance Sheet.

Answer»

SOLUTION :It is SHOWN under the HEAD CURRENT LIABILITIES and sub-head Other Current Liabilities.
Discussion
1361.

Om, Ram and Shanti were partners in a firm sharing profits in the ratio of 3:2:1. On 1st April, 2014, their Balance Sheet was as follows: On the above date Hunuman was admitted on the following terms: (i) He will bring Rs 1,00,000 for his capital and will get 1/10th share in the profits. (ii) He will brings necessary cash for his share of goodwill premium. The goodwill of the firm was valued at Rs 3,00,000. (iii) A liability of Rs 18,000 will be created against bills receivable discounted. (iv) The value of stock and furniture will bereduced by 20% (v) The value of land and building will be increased by 10% (vi) Capital Accounts of the partners will be adjusted on the basis of Hanuman's capital in their profit-sharing ratio by opening Current Accounts. Prepare Revaluation Account and Partners' Capital Accounts.

Answer»

Solution :
Working Note:
Calculation of Capital of PARTNERS in the NEW firm:
`{:((i)"TOTAL capital of the new firm on the basis of Hanuman's Capital"(Rs 1,00,000xx10//1),"Rs10,00,000"),("Less: Hanuman's Capital","Rs1,00,000"):}`
(II) Om's Capital `=Rs9,00,000xx3//6=Rs4,50,000,`
(iii) Ram's Capital `=Rs9,00,000xx2//6=Rs3,00,000,`
(iv) Shanti's Capital `=Rs9,00,000xx1//6=Rs1,50,000.`
Discussion
1362.

Name the head under which the 'Calls-in-Advance' is shown in the company's Balance Sheet.

Answer»

SOLUTION :Calls-in-Advances' is SHOWN under the HEAD CURRENT LIABILITIES and sub-head Other Current Liabilities.
Discussion
1363.

Nusrat and Sonu were partners in a firm sharing profits in the ratio of 3:2 During the year ended 31st March, 2015 Nusrat has withdrawn Rs.15,000 Interest on her drawings amounted ot Rs.300. Pass necessary Journal entry for charging interest on drawings assuming that the capitals of the partners were fixed.

Answer»

SOLUTION :
Discussion
1364.

Name the head under which long-term investments appear in the Balance Sheet.

Answer»


SOLUTION :N/a
Discussion
1365.

Name the head under which Goodwill appears in the Balance Sheet of the company.

Answer»


SOLUTION :N/a
Discussion
1366.

O.M. Ltd. Has a Current Ratio of 3.5 : 1 and Quick Ratio of 2 : 1. If the excess of Current Assets over Quick Assets as represented by Stock is Rs. 1,50,000, calculate Current Assets and Current Liabilities.

Answer»

SOLUTION :CURRENT ASSETS = RS. 3,50,000, Current LIABILITIES = Rs. 1,00,000.
Discussion
1367.

Name the head under which Debentures appear in the Balance Sheet of the company.

Answer»


SOLUTION :N/a
Discussion
1368.

Not-for-Profit Organisations have some distinguishing features from that of profit making organisations. State any one of them.

Answer»


SOLUTION :N/a
Discussion
1369.

Name the asset that is not transferred to the debit side of Realisation Account, but brings certain amount of cash against its disposal at the time of the firm.

Answer»

SOLUTION :UNRECORDED ASSET.
Discussion
1370.

Not-for-profit organisations prepare :

Answer»

TRADING ACCOUNT
Trading & PROFIT and LOSS Account
Income and Expenditure Account
All of the above

Answer :C
Discussion
1371.

Name the book in which accounts are opened.

Answer»

SOLUTION : A Ledger is PRINCIPAL BOOK which contains all the accounts
Discussion
1372.

Not-for-Profit Oeganisations have some disitnguish features for that of profit organisations. State any one of them.

Answer»

Solution :Not-for-Profit Organisations are FORMED with a VIEW to SERVE ts members and public at large while profit oeganisations serve the OBJECTIVE of earning progits.
Discussion
1373.

Name the accounts which are maintained for the partners when capitals of the partners are fixed.

Answer»

SOLUTION :(a) PARTNERS' CAPITAL ACCOUNTS,(B) Capital Accounts,
Discussion
1374.

Not-for-Profit Organisations prepare

Answer»

INCOME and EXPENDITURE Account.
TRADING and Profit and LOSS Account
Only the Trading Account.
None of the above.

Solution :Income and Expenditure Account.
Discussion
1375.

Normally, what should be the maturity period for a short-term investment from the date of its acquisition to be qualified as Cash Equivalents?

Answer»

SOLUTION :A MATURITY period of up to 3 months from the DATE of the acquisition qualifies a short-term INVESTMENT to be Cash Equivalents.
Discussion
1376.

Name the account which shows classified summary of transactions of a Cash Book in a Not-for-Profit Organisation.

Answer»

SOLUTION :RECEIPTS and PAYMENTS ACCOUNT.
Discussion
1377.

Name the account which is opened to credit the share of profit of the deceased partner, till the time of his death to his Capital Account.

Answer»

SOLUTION :PROFIT and LOSS SUSPENSE ACCOUNT.
Discussion
1378.

Normal profit is calculated to value goodwill

Answer»

by deducting ABNORMAL GAINS (profit)
by ADDING abnormal losses
by deducting abnormal gains and adding abnormal losses
None of the above

Solution :by deducting abnormal gains and adding abnormal losses
Discussion
1379.

Name theaccount to which the 'Balance of Debentures Redemption Reserve' is transferred after all the debentures have been redeemed.

Answer»

Solution :BALANCE of DEBENTURES REDEMPTION Reserve' is transferred to 'General Reserve Account's after all the debentures have been REDEEMED.
Discussion
1380.

(Non-current Investment). List five items which are included under the head 'Non-current Investments'.

Answer»


SOLUTION :(i) Investment in Property,
(ii) Investment in EQUITY INSTRUMENTS,
(iii) Investment in Preference Shares,
(iv) Investment in Debentures or Bonds, and
(v) Investment in MUTUAL FUNDS.
Discussion
1381.

Name the account which calculates Surplus /Deficit of NPO?

Answer»

CashBook
INCOME and EXPENDITURE ACCOUNT
Receipts andpayment Accoun
Balance Sheet

Solution :Income and Expenditure Account
Discussion
1382.

Non-current Assets of a firm are Rs 26,00,000, Current Assets are Rs 9,00,000 and Shareholder's Funds are Rs 21,50,000. Total debts of the firm will be

Answer»

RS 43,50,000
Rs 13,50,000
Rs 21,50,000
Rs 38,50,000

Answer :B
Discussion
1383.

Non - current Assets of a fire are Rs. 26,00,000. , Current Assets are Rs.9,00,000 and Shareholders Funds' are Rs.21,50,000. total debts of the firm will be

Answer»

Rs.43,50,000.
Rs.13,50,000.
Rs.21,50,000.
Rs.38,50,000.

Answer :B
Discussion
1384.

Noida Toll Bridge Corporation Ltd. (An infrastructure Company) has outstanding 50,000, 8% debentures of Rs.100 each issued in 2010 due for redemption on March 31, 2018. It was decided to invest the required amount in investment earning 10% p.a. interest on April 30th, 2017. Record necessary entries regarding redemption of debentures.

Answer»

SOLUTION :

Notes : As per New Guidelines, infrastructure COMPANIES are also required to create DEBENTURE Redemption Reserve @25% of the FACE VALUE of debentures.
Discussion
1385.

Name the account which calculates Surplus/Deficit ofNPO?

Answer»

CASH Book
INCOME and EXPENDITURE ACCOUNT
Receipts and PAYMENTS Account
Balance Sheet

Solution :Income and Expenditure Account
Discussion
1386.

NK Ltd., a truck manufacturing company, is registered with an authorised capital of Rs. 1,00,00,000 divided into equity shares of Rs. 100 each. The subscribed and paid-up capital of the company is Rs. 50,00,000. The company decided to open technical schools in the Jhalawar district of Rajasthan to train the specially abled children of the area. It is planning to provide them employment in its various production units and industries in theneighbourhood area. To meet the capital expital expenditure reuirements of project, the company offered 20,000 shares to the public for subscription. The shares were fully subscribed and paid. Present the share capital in the Balance Sheet of the company as per theprovisions of Schedule III of the Companies Act, 2013.

Answer»

SOLUTION :
Discussion
1387.

No profit no loss' point is called:

Answer»

A - Fund FLOW point
B - CASH flow Point
C - Trend Analysis
D - BREAK Even Point

Answer :D
Discussion
1388.

Name four items which are credited to the account of a decreased partner while calculating the amount due to his legal heirs.

Answer»

Solution :(i) Balance standing to the credit of the DECEASED Partner's CAPITAL and Current Accounts on the date of death.
(ii) His share of PROFIT till the date of death.
(iii) His share in Goodwill of the firm.
(iv) His share in the gain (profit) on REVALUATION of assets and reassessment of liabilities.
(V) His share of reserves and accumulated profits.
Discussion
1389.

No entry is required when a —— (partner/creditor) accepts a fixed asset in payment of his dues.

Answer»


ANSWER :C::D
Discussion
1390.

Name Profitability Ratio based on investment.

Answer»

SOLUTION :RETURN on INVESTMENT RATIO (ROI).
Discussion
1391.

Nitin, TarunandAmarare partners sharingprofits equllyand decideto shareprofits in theratio of2:2:1 w.e.f1st April, 2019.Theextract of theirBalance Sheet as at 31st March , 2019 isas follows: Pass the Journalentries in eachof the following situations: (i) WhenitsMarketValueis not given. (ii)Whenits Market Value is ₹ 4,00,000. (iii) Whenits Market Valueis ₹ 4,24,000.

Answer»


Answer :(i) DR. Investments Fluctuation RESERVE A/c₹60,000; Cr. Nitin's CAPITAL A/C; Tarun's Capital A/c and Amar's Capital A/c-R 20,000 each; (ii) Same as above; (iii) (a) Same as above;(b) Dr. Investments A/c and Cr. Revalaution A/c by₹24,000; (c) Dr. Revaluation A/c- ₹24,000;Cr. Nitin's Capital A/c; Tarun's Capital A/c and Amar's Capital A/c- ₹8,000 each(iv) Dr. Investments Fluctuation Reserve A/c- ₹60,000; Cr. Investments A/c ₹30,000; Nitin's Capital A/c- ₹10,000; Tarun's Capital A/c- ₹10,000 and Amar's Capital A/c -₹10,000;(v) (a) Dr. Investments Fluctuation Reserve A/c- ₹60,000 and Revaluation A/c-₹30,000: Cr Investments A/c- ₹90,000; (b) Dr. Nitin's Capital A/c-₹10,000; Tarun's Capital A/c-₹10,000 and Amar's Capital A/c - ₹10,000; Cr. Revaluation A/c-₹30,000.]
Discussion
1392.

Name any two tools of Analysis of Financial Statements.

Answer»

SOLUTION :(i) Common-Size Statement
(ii) RATIO Analysis
(III) Cash Flow Statement.
Discussion
1393.

Nitro Paints Ltd., invited applications for issuing 1,60,000 equity shares of Rs. 10 each at a premium of Rs. 3 per share. The amount was payable as follows : On application - Rs. 6 per share (including premium Rs. 1) On allotment - Rs. 3 per share (including premium Rs. 1) the balance - on first final call Applications for 1,80,000 shares received. Applications for 10,000 shares were rejected and pro-rata allotment was made to the remaining applicants. Over payment on application were adjusted towards sums due on allotment. All calls were made and were duly received except allotment and final call from Aditya who was allotted 3,200 shares. His shares were forfeited. Half of the forfeited shares were re-issued for Rs. 43,000 as fully paid up. Pass necessary journal entries for the above transactions in the books of Nitro Paints Ltd.

Answer»

Solution :Amount received on ALLOTMENT RS. 4,11,600, Capital RESERVE Rs. 8,600.
Hint : SECURITIES Premium Reserve A/c will be debited from Rs. 6,400 at the time of forfeiture of shares.
Discussion
1394.

Name any two Short-term Borrowings.

Answer»

Solution :(i) Loan PAYABLE on DEMAND(II) Bank Overdraft/Cash CREDIT.
Discussion
1395.

Nishit was the Managing Director of 'Lalita Electronics Ltd'. He had been earning good revenues and profits for the company. He believed in giving respect to his subordinates as his moral responsibility. He was the one who recognised the need to find ecofriendly ways to treat waste. Following is the Comparative Statement of Profit and Loss of 'Lalita Electronics Ltd'. for the years ended 31st March, 2013 and 2014:(a) Calculate Net Profit Ratio for the years ending 31st March, 2013 and 2014.(b)Identify any two values which are being communicated to the society in the above case.

Answer»

Solution :(a) Net PROFIT Ratio = `("Net Profit after Tax")/("Revenue from Operations")xx100`
Net Profit Ratio (For the year ended 31st MARCH, 2013) = `("Rs. 7,00,000")/("Rs. 14,00,000")xx100=50%`.
Net Profit Ratio (For the year ended 31st March, 2014) = `("Rs. 9,10,000")/("Rs. 18,00,000")xx100=50.55%`.
(b) VALUES which are being communicated to the society (Any TWO):
•Sensitivity towards subordinates.
•Promoting healthy living.
•Ethical practices of COMPANY.
Discussion
1396.

Name any two items that are shown under the head 'Other Current Liabilities' and any two items that shown under the head 'Other Current Assets' in the Balance Sheet of a company as per Schedule III of the Companies Act, 2013.

Answer»

Solution :Other Current LIABILITIES: (i) UNPAID DIVIDEND, (II) Income Received in Advance.Other Current Assets: (i) Prepaid EXPENSES, (ii) Advance Tax.
Discussion
1397.

Nirman Ltd. issued 50,000 equity shares of Rs. 10 each. The amount was payable as follows : {:("On application","Rs. 3 per share"),("On allotment","Rs. 2 per share"),("On first and final call","The Balance"):} Applications for 45,000 shares were received and shares were allotted to all the applications. Pooja, to whom 500 shares were allotted, paid her entrie share money at the time of allotment, whereas Kundan did not pay the first and final call on his 300 shares. What was the amount received at the time of making first and final call ?

Answer»

SOLUTION :RS. 2,21,000.
Discussion
1398.

Name any two reserves shown under 'Reserves and Surplus'.

Answer»

SOLUTION :(i) CAPITAL RESERVE(II) Capital REDEMPTION Reserve.
Discussion
1399.

Nikhil Ltd. Purchased a running business from Sonia Ltd. For a sum Rs. 22,00,000 by issuing 20,000 fully paid equity shares of Rs.100 each at a premium of 10%. The assets and liabilities consisted of the following: Machinery Rs. 7,00,000, Debtors Rs. 2,50,000, Stock Rs. 5,00,000, Building Rs. 11,50,000 and Bills Payable Rs. 2,50,000. Pass necessary Journal entries in the books of Nikhil Ltd. for the above transactions.

Answer»

Solution :For Business Purchase: Dr. Machinery A/cRs. 7,00,000, Debtors A/c - Rs. 2,50,000, Stock A/c - Rs. 5,00,000, Building A/c - Rs. 11,50,000,
Cr. Bills PAYABLE A/c - Rs. 2,50,000, SONIA Ltd. - Rs.22,00,000, Capital Reserve A/c (BalancingFigure) - Rs. 1,50,000.
For Issue of Equity Shares: Dr. Sonia Ltd. - Rs. 22,00,000, Cr. Equity Share Capital A/c - Rs. 20,00,000, SECURITIES Premium Reserve A/c - Rs. 2,00,000.
NOTE: No. of Equity Shares to be Issued = Rs. 22,00,000/Rs. 110 = 20,000 Shares.
Discussion
1400.

Name any two items that are shown under the head 'Other Current Liabilities,' and any two items that are shown under the head 'Other Current Assets' in the'Balance Sheet of a company as per Schedule III of the Companies Act, 2013.

Answer»


SOLUTION :N/a
Discussion