2955 + Interview Questions in Accounts in Class 12 Page 33 InterviewSolution

1601.	Interest received by a finance company is classified under which kind of activity while preparing Cash Flow Statement?
Answer» SOLUTION :Interest received by a finance COMPANY is classified under OPERATING Activity while preparing Cash FLOW Statement.

Discussion

1602.	Interest received by other than financial enterprise is shown in Cash Flow Statement under
Answer» OPERATING ACTIVITIES INVESTING activities. Financing activities Solution :Investing activities.

Discussion

1603.	Interest received and paid' is considered as which type of activity by a finance company while preparing a Cash Flow Statement?
Answer» Solution :Interest received and paid' is considered an Operating ACTIVITY while PREPARING Cash Flow Statement in case of a finance COMPANY.

Discussion

1604.	Interest received by a finance company is classfied under which kind of activity while preparing a Cash flow statemant?
Answer» Cash Flow from OperatingActivities Cash Flow from Investing ACTIVITIES Cash flow from FINANCING Actvities No Cash Flow Answer :A

Discussion

1605.	interestpayableon thecapitals ofthepartnersis chagedto
Answer» PROFITAND LOSSACCOUNT Profitand LOSS adjustmentAccount Realisation ACCOUNT profitand LossappropriationAccount . Solution :profitand LossappropriationAccount .

Discussion

1606.	Interest Payable on the capitals of the partners is charged to
Answer» PROFIT and LOSS ACCOUNT Profit and Loss ADJUSTMENT Account Realisation Account Profit and Loss APPROPRIATION Account Solution :Profit and Loss Appropriation Account

Discussion

1607.	Interest payable on debenturesis :
Answer» an appropriation of PROFITS of the company a charge against profits of the company transferred to sinking fund INVESTMENT account transferred to GENERAL reserve Answer :B

Discussion

1608.	Interest paid by an investementcompany will come under which kind of activity while preparing cash flow statement ?
Answer» CASH FLOW from Operating ACTIVITIES Cash Flow from INVESTING Activities Cash flow from Financing Actvities No Cash Flow Answer :A

Discussion

1609.	Interest on partner's drawings under Fluctuating Capital Accounts Method is debited to
Answer» PARTNER's CAPITAL ACCOUNTS. Profit and LOSS Accoutn. Drawings Account. None of These. Solution :Partner's Capital Accounts.

Discussion

1610.	Interest on parnter's drawings under Fluctuating Capital Accounts Method is debited to
Answer» PARTNER's CAPITAL ACCOUNTS Profit and LOSS Account Drawing Account None of these Solution :Partner's Capital Accounts

Discussion

1611.	intereston drawingunder fluctuatingcapitalAccountis debitedto
Answer» PARTNER's CAPITALACCOUNT profitand LOSSACCOUNT DrawingsAccount NONE of these Solution :partner's capitalAccount

Discussion

1612.	Interest on Loans is
Answer» DIRECT Expenses Indirect Expenses Operating Expenses None of the above Answer :B

Discussion

1613.	Interest on Debentures issued as Collateral Security is
Answer» PAID. not paid. MAY or may not be paid None of these. Solution :not paid.

Discussion

1614.	Interest on debentures issued as a collateral security is paid on :
Answer» NOMINAL VALUE of debentures No INTEREST is paid Face value of debentures Paid up value of debentures Answer :B

Discussion

1615.	Interest on Debentures is paid on
Answer» AMOUNT RECEIVED on Issue. NOMINAL (FACE) VALUE. On Premium. None of these. Solution :Nominal (Face) value.

Discussion

1616.	Interest accrued on Investments appear in a Company's Balance Sheet under the Sub-head ............
Answer» Non-CURRENT Investments Current Investments Other Current Assets Other Non-Current Assets Answer :C

Discussion

1617.	Interest accrued and due on debentures appear in a Company's Balance Sheet under the Sub-head ..............
Answer» a - Short-term Borrowings b - TRADE Payables C - Other CURRENT Liabilities d - Short-term Provisions Answer :C

Discussion

1618.	Interest accrued but not due on loans appear in a Company's Balance Sheet under the Sub-head .............
Answer» Short-term Borrowings Trade PAYABLES Other CURRENT Liabilities Short-term Provisions Answer :C

Discussion

1619.	(Intangible Assets). Name any five items of Intagible Assets.
Answer» Solution :(i) GOODWILL, (ii) Brand/Trademark, (iii) Computer Software, (IV) Mining Rights, (V) Licences and Franchise.

Discussion

1620.	Indicate the item which appears as Short-term Provision:
Answer» Provision for EXPENSES, INTEREST Accrued but not Due, Employees' PROVIDENT FUND, None of the above. Solution :Provision for Expenses

Discussion

1621.	India Auto Ltd.'is registered with an authorised capital of Rs. 7,00,00,000 divided into 7,00,000 shares of Rs. 100 each. The company issued 50,000 shares to thevendor for building purchased and 2,00,000 shares were issued to thepublic. The amount was payable as follows: {:("On application and allotment",-,"Rs. 20 per share,"),("On first call",-,"Rs.50 per share,"),("On second and final call ",-,"The balance."):} All calls were made and were duly received except on100 shares held by Rajani, who failed to pay the second and final call. Her shares were forfeited. Present the'Share Capital' in the Balance Sheet of the company as per Schedule III of the Companies Act, 2013. Also prepare 'Note to Accounts'.
Answer» SOLUTION :

Discussion

1622.	Increase in the value of assets at the time of retirement of a partner is
Answer» CREDITED to REVALUATION Account Debited to Revaluation Account Debited to Profit and LOSS Account None of these Solution :Credited to Revaluation Account

Discussion

1623.	Increase in liabilityat the time of retirement of a partnere is
Answer» CREDITED to Revaluation Account. DEBITED to Revaluation Account. Debited to PROFIT and Loss Account. None of these. Solution :Debited to Revaluation Account.

Discussion

1624.	Increase in liability at the time of retirement of a partner is
Answer» Credited to REVALUATION Account DEBITED to Revaluation Account Debited to PROFIT and LOSS Account None of these Solution :Debited to Revaluation Account

Discussion

1625.	Income and expenditure Account shows
Answer» CASH in hand SURPLUS or Deficit Capital Account NONE of these Solution :Surplus or Deficit

Discussion

1626.	Income and Expenditure Account is prepared on
Answer» CASH BASIS ACCRUAL Basis Both (a)and (B) NONE of these Solution :Accrual Basis

Discussion

1627.	Income and Expenditure Account reveals :
Answer» SURPLUS or Deficiency Cash in Hand Net PROFIT CAPITAL Account Answer :A

Discussion

1628.	Income and Expenditure Account records transactions of :
Answer» REVENUE NATURE only CAPITAL nature only Both revenue and capital nature Income of only revenue nature and EXPENDITURE of revenue and capital nature. ANSWER :A

Discussion

1629.	In which situations, amount is not transferred from Surplus, i.e., Balance in Statement of Profit and Loss to Debentures Redemption Reserve?
Answer» Solution :In the following SITUATIONS, amount is not transferred toDebentures Redemption Reserve (DRR): (i) When the Debentures are ISSUED by (a) Banking Companies, (b) All India Financial Institutions regulated by RBI. (II) When the Debentures are fully convertible.

Discussion

1630.	Income and Expenditure Account is a :
Answer» PERSONAL ACCOUNT REAL Account NOMINAL Account Real and Nominal Account, both ANSWER :C

Discussion

1631.	In which situation, amount is not invested in specified securities?
Answer» Solution :AMOUNT is not invested in specified securities when the COMPANY is not REQUIRED to transfer an amount out of profits available for distribution asdividend toDebentures Redemption Reserve (DRR).

Discussion

1632.	Income and Expenditure Account is a
Answer» REAL ACCOUNT NOMINAL Account Personal Account None of these Solution :Nominal Account

Discussion

1633.	In which ratio do the remaining partners acquire the share of profit of the retiring partner ?
Answer» SOLUTION :The REMAINING partners acquire the share of PROFIT of retiring PARTNER in their gaining ratio.

Discussion

1634.	In which ratio do the remaining partners acquire the share of deceased partner?
Answer» SOLUTION :Remaining PARTNERS acquire the SHARE of deceased partner in their GAINING ratio.

Discussion

1635.	In whichconditiona partnershipfirmis deemedto bedissolved ?
Answer» On apartner'sadmission On retirement of a partner On EXPIRY of theperiodof PARTNERSHIP On lossin partnership ANSWER :C

Discussion

1636.	In which category following items will be classified while preparing Cash Flow Statement of State Bank of India?(i) Interest and dividend received by the bank.(ii) Purchase of Computer.
Answer» SOLUTION :(i) Cash FLOW from Operating Activities.(II) Cash Flow from INVESTING Activities

Discussion

1637.	In which activity will you include the payment of interest on loan by a manufacturing company while preparing Cash Flow Statement?
Answer» Solution :Payment of interest on loan by a manufacturing COMPANY will be INCLUDED under FINANCING activities while PREPARING Cash Flow STATEMENT.

Discussion

1638.	In which analysis total cost are equal to total rrevenue from Operations :
Answer» Trend Analysis Ratio Analysis Break-Even Point Analysis Fund FLOW STATEMENT Analysis Answer :C

Discussion

1639.	In the project, you have deducted₹ 10,759 lakhs being interest received from Cash Flow from Operating Activity.Why?
Answer» Solution :It is deducted because it is not an OPERATING Activity but an INVESTING Activity. SINCE, it is credited to Statement of Prafit and Loss, it NEEDS to be deducted from Cash Flow from Operating Activity and ADDED to Cash Flow from Investing Activity

Discussion

1640.	In the project, why you have added Deferred Tax Liability (Net) toSharehoders' Funds?
Answer» SOLUTION : It is added because, it is a PART of Sharehoders' FUNDS and it is a book ENTRY and not a Actual Liability further it is not a part of Cash Flow Statement.

Discussion

1641.	In the event of dissolutionof firm, thepartner'sparsonal assetsare first used forpayment of the:
Answer» FIRM 'sliabilities the personalliailites NONE of thetwo Any of the two Answer :B

Discussion

1642.	In the event of change in profit - sharing ratio, Workmen Compensation Reserve appearing in the Balance Sheet is transferred to Capital Accounts of partners
Answer» after providig for CLAIM of WORKMEN , if any. igonoring the claim of workmen, if any. Both (a) and (B) NONE of these. Solution :after PROVIDING for claim of workmen , if any.

Discussion

1643.	In theeventof dissolutionof apartnershipfirm, theprovisionfordoubtfuldebits is transferredto :
Answer» REALISATIONACCOUNT Partner'scapital ACCOUNTS SundrydevtorsAccount NONE of theabove Answer :A

Discussion

1644.	In the event of change in profit- sharing ratio, investments Fluctuation Reserve
Answer» is debited by the AMOUNT of FALL in VALUE of INVESTMENTS. is credited by the amount of increase in value of investments. is debited by the amount of fall and is credited by the increase in value of the investments. None of the above. Solution :is debited by the amount of fall in value of investments.

Discussion

1645.	In the event of change in profit - sharing ratio , General Reserve appearing in the Balance Sheet is transferred to Capital Accounts of partners in their
Answer» SACRIFICING RATIO. gaining ration. OLD PROFIT - SHARING ratio. New profit - sharing ratio. Solution :old profit - sharing ratio.

Discussion

1646.	In theBalancesheetTotaldebtorsappearat Rs.50,000 andProvisionforDoubtfuldebts appear at Rs,1,500 .Howmuchamountwillbe realised fromDebtors , if bad debts amountto Rs, 10,000 andRemainingdebtorsarerealisedata discount of 5%
Answer» RS, 38,000 Rs,36,500 Rs,36,750 Rs,39,500 Answer :A

Discussion

1647.	in theadsenceof an agreement to thecontrary partners shareprofitsand lossesin the
Answer» RATIOOF theircapitalsin THEBEGINNINGOF theyear ratioof theircapitalsat theendof theyear . RATIO of AVERAGE capital EQUAL ratio. Solution :equal ratio.

Discussion

1648.	In the absence of the Partnership Deed, Interest on Capital
Answer» is ALLOWED @ 6% per annum is allowed @ 10% per annum is allowed at the borrowing rate is not allowed Solution :is not allowed

Discussion

1649.	In the absence of the partnership Deeddd, interest on Capital
Answer» is ALLOWED @6%PER annum. is allowed @10%per annum. isallowed at the BORROWING rate. is not allowed. Solution :is not allowed.

Discussion

1650.	In the Balance Sheet, Debtors appear at Rs 50,000 and Provision for Doubtful Debts at Rs 1,500. How much amount will be realised from Debtors, if bad debts amount to Rs 10,000 and remaining debtors are realised at a discount of 5% ?
Answer» RS 38,000 Rs 36,500 Rs 36,575 Rs 39,500 Answer :A

Discussion

Explore topic-wise InterviewSolutions in .

Interest received by a finance company is classified under which kind of activity while preparing Cash Flow Statement?

Interest received by other than financial enterprise is shown in Cash Flow Statement under

Interest received and paid' is considered as which type of activity by a finance company while preparing a Cash Flow Statement?

Interest received by a finance company is classfied under which kind of activity while preparing a Cash flow statemant?

interestpayableon thecapitals ofthepartnersis chagedto

Interest Payable on the capitals of the partners is charged to

Interest payable on debenturesis :

Interest paid by an investementcompany will come under which kind of activity while preparing cash flow statement ?

Interest on partner's drawings under Fluctuating Capital Accounts Method is debited to

Interest on parnter's drawings under Fluctuating Capital Accounts Method is debited to

intereston drawingunder fluctuatingcapitalAccountis debitedto

Interest on Loans is

Interest on Debentures issued as Collateral Security is

Interest on debentures issued as a collateral security is paid on :

Interest on Debentures is paid on

Interest accrued on Investments appear in a Company's Balance Sheet under the Sub-head ............

Interest accrued and due on debentures appear in a Company's Balance Sheet under the Sub-head ..............

Interest accrued but not due on loans appear in a Company's Balance Sheet under the Sub-head .............

(Intangible Assets). Name any five items of Intagible Assets.

Indicate the item which appears as Short-term Provision:

Increase in the value of assets at the time of retirement of a partner is

Increase in liabilityat the time of retirement of a partnere is

Increase in liability at the time of retirement of a partner is

Income and expenditure Account shows

Income and Expenditure Account is prepared on

Income and Expenditure Account reveals :

Income and Expenditure Account records transactions of :

In which situations, amount is not transferred from Surplus, i.e., Balance in Statement of Profit and Loss to Debentures Redemption Reserve?

Income and Expenditure Account is a :

In which situation, amount is not invested in specified securities?

Income and Expenditure Account is a

In which ratio do the remaining partners acquire the share of profit of the retiring partner ?

In which ratio do the remaining partners acquire the share of deceased partner?

In whichconditiona partnershipfirmis deemedto bedissolved ?

In which category following items will be classified while preparing Cash Flow Statement of State Bank of India?(i) Interest and dividend received by the bank.(ii) Purchase of Computer.

In which activity will you include the payment of interest on loan by a manufacturing company while preparing Cash Flow Statement?

In which analysis total cost are equal to total rrevenue from Operations :

In the project, you have deducted₹ 10,759 lakhs being interest received from Cash Flow from Operating Activity.Why?

In the project, why you have added Deferred Tax Liability (Net) toSharehoders' Funds?

In the event of dissolutionof firm, thepartner'sparsonal assetsare first used forpayment of the:

In the event of change in profit - sharing ratio, Workmen Compensation Reserve appearing in the Balance Sheet is transferred to Capital Accounts of partners

In theeventof dissolutionof apartnershipfirm, theprovisionfordoubtfuldebits is transferredto :

In the event of change in profit- sharing ratio, investments Fluctuation Reserve

In the event of change in profit - sharing ratio , General Reserve appearing in the Balance Sheet is transferred to Capital Accounts of partners in their

In theBalancesheetTotaldebtorsappearat Rs.50,000 andProvisionforDoubtfuldebts appear at Rs,1,500 .Howmuchamountwillbe realised fromDebtors , if bad debts amountto Rs, 10,000 andRemainingdebtorsarerealisedata discount of 5%

in theadsenceof an agreement to thecontrary partners shareprofitsand lossesin the

In the absence of the Partnership Deed, Interest on Capital

In the absence of the partnership Deeddd, interest on Capital

In the Balance Sheet, Debtors appear at Rs 50,000 and Provision for Doubtful Debts at Rs 1,500. How much amount will be realised from Debtors, if bad debts amount to Rs 10,000 and remaining debtors are realised at a discount of 5% ?