2955 + Interview Questions in Accounts in Class 12 Page 35 InterviewSolution

1701.	If opening inventory is Rs 1,20,000, Cost of Revenue from Operations is Rs 10,00,000 and Inventory Turnover Ratio is 5 Times, then Closing Inventory will be
Answer» RS 3,20,000 Rs 2,80,000 Rs 1,60,000 Rs 4,00,000 Answer :B

Discussion

1702.	If openingcapitalof partnersare A Rs, 3,00,000 ,B Rs, 2,00,000 and C Rs, 1,00,000 and their drawingduringthe yearare A Rs, 50,000 ,B Rs, 40,000 and C Rs, 30,000and creditorsare Rs, 60,000 , whatwillbe theamountof assetsof thefirm?
Answer» RS, 5,40,000 Rs, 4,20,000 Rs,4,80,000 Rs,6,60,000 Answer :A

Discussion

1703.	If Debt equity ratio exceeds ……….., it indicates risky financial position.
Answer» `1:1` `2:1` `1:2` `3:1` ANSWER :B

Discussion

1704.	If debentures are converted into shares, how will it be shown in Cash Flow Statement?
Answer» Solution : It will not be SHOWN in Cash Flow STATEMENT because it does not INVOLVE cash.

Discussion

1705.	If date of drawings is not given, interest is calculated for
Answer» 12 MONTHS 7 months 6 months 3 months Solution :6 months

Discussion

1706.	If Current Ratio of a firm is 2.5 :1 and its Current Liabilities are Rs.2,00,000. It Working Capital will be
Answer» Rs.3,00,000. Rs.3,75,000. Rs.4,00,000. Rs.7,00,000. Answer :a

Discussion

1707.	If date of drawing is not geven , interest is calculated for
Answer» 12 MONTHS. 7 Months. 6 Months. 3 Months. Solution :6 Months.

Discussion

1708.	If Current Ratio of a firm is 2.5 : 1 and its Current Liabilities are Rs 2,00,000. Its Working Capital will be
Answer» RS 3,00,000 Rs 3,75,000 Rs 4,00,000 Rs 7,00,000 Answer :A

Discussion

1709.	If creditors are Rs, 25,000 ,CapitalisRs, 1,50,000 and cashbalanceis Rs. 10,000, whatwillbe theamountofsundryassets ?
Answer» RS, 1,75,000 Rs,1,85,000 Rs, 1,65,000 Rs, 1,40,000 Answer :C

Discussion

1710.	If average inventory is Rs. 50,000 and closing inventory is Rs. 2,000 less than the opening inventory, opening and closing inventory will be:
Answer» RS. 52,000 and Rs. 50,000 Rs. 50,000 and Rs. 48,000 Rs. 48,000 and Rs. 46,000 Rs. 51,000 and Rs. 49,000 Answer :D

Discussion

1711.	If at the time of admission there is an unrecorded liability , it is
Answer» Debited to REVALUATION ACCOUNT. Credited to Revaluation Account. Debited to GOODWILL Account. Credited to PARTNERS' CAPITAL account. Solution :Debited to Revaluation Account.

Discussion

1712.	If, at the time of admission, balance appears in the Profit and Loss Account in the books, it is transferred to
Answer» Profit and Loss ADJUSTMENT Account All PARTNER's Capital ACCOUNTS OLD Partner's Capital Accounts Revaluation Account Solution :Old Partner's Capital Accounts

Discussion

1713.	If , at the time of admission , balance appears in the profit and loss Account in the books, it is tranferred to
Answer» profit and loss Adjustment Account. All PARTNER's Captal ACCOUNTS. OLD Partner's CAPITAL Accounts. Revaluation Account. Solution :Old Partner's Capital Accounts.

Discussion

1714.	If at the time of admission there is an unrecorded liability, it is
Answer» DEBITED to Revaluation ACCOUNT Credited to Revaluation Account Debited to GOODWILL Account Credited to PARTNER's Capital Accounts Solution :Debited to Revaluation Account

Discussion

1715.	If a share Rs.10 issued at a premium of Rs.2 on which the full amount has been called and Rs.8 (including premium ) paid is forfeited, the Share Capital Account Should be debited with
Answer» Rs.12. Rs.10. Rs.8. Rs. 6. Answer :B

Discussion

1716.	If a sharehold does not pay his dues on allotment, for the amount due, there will be a
Answer» CREDIT balance in the Share ALLOTMENT Account Debite balance in the SHARES Forfeiture Account Credit balance in the Shares Forfeiture Account Debit balance in the Shares Allotment Account Solution :Debit balance in the Shares Allotment Account

Discussion

1717.	If a shareholder does not pay his dues on allotment , for the amount due , there will be a
Answer» Credit BALANCE in the SHARES ALLOTMENT ACCOUNT. Debit balance in the shares FORFEITURE Account. Credit balance in the Shares Allotment Account. Debitbalance in the Shares Allotment Account. Solution : Debitbalance in the Shares Allotment Account.

Discussion

1718.	If a share of Rs 10 issued at a premium of Rs 2 on which the full amount has been called and Rs 8 (including premium) paid is forfeited, the Share Capital Account should be debited with
Answer» RS 12 Rs 10 Rs 8 Rs 6 Answer :B

Discussion

1719.	If a partner takes over an asset, such (Partner’s Capital Account) is —— (debited/credited).
Answer» ANSWER :B::D

Discussion

1720.	If a partner draws equal amount in the beginning of each month , interest is chargedfor
Answer» 6 MONTHS. `5^1//2`Months. `6^1//2`Months . 5 months Solution :`6^1//2`Months .

Discussion

1721.	If a partner draws equal amount in the beginning of each month, interest is charged for
Answer» 6 MONTHS `5^(1//2)` months `6^(1//2)` months 5 months Solution :`6^(1//2)` months

Discussion

1722.	If a machine whose original cost is Rs 40,000 having accumulated depreciation Rs 12,000 were sold for Rs 34,000 then while preparing Cash Flow Statement its effect on cash flow will be :
Answer» CASH FLOW from FINANCING activitiesRs 34,000 Cash flow from financing activitiesRs 6,000 Cash flow from financing activitiesRs 34,000 Cash flow from financing activitiesRs 6,0000 Answer :C

Discussion

1723.	If a loan from a partner appears on the liabilities side of the Balance Sheet of the firm and the Capital Account of such partner shows a debit balance , howis loan deal with ?
Answer»

Discussion

1724.	If a liability is assumed by a partner, such Partner’s Capital Account is —— (debited/credited).
Answer» ANSWER :C::D

Discussion

1725.	If a general donation of smaller amount is received by a school, that donation will be shown in :
Answer» LIABILITY SIDE Asset Side Debit side of RECEIPT and PAYMENT A/C Credit side of Receipt and Payment A/c Answer :C

Discussion

1726.	If a General Donation of huge amount is received by a school, that donation is treated as :
Answer» REVENUE Receipt (INCOME) Capital Receipt (LIABILITY) Assets Earned Income Answer :B

Discussion

1727.	If a Company's Current Liabilities are Rs. 80,000, Working Capital is Rs. 2,40,000 and Inventory is Rs. 40,000, its quick ratio will be:
Answer» `3.5:1` `4:1` `4.5:1` `3:1` ANSWER :A

Discussion

1728.	Idntify the purpose of purpose of utilizing the 'Security Premium Reserve' that would maximise the return to shareholders.
Answer» Solution :The utilisation of SECURITIES PREMIUM reserve by a COMPANY for buy-back of its own shares WOULD maximise the RETURN to shareholders.

Discussion

1729.	if 6% pref. share capital Rs 2,00,000 were redeemed at a premium of 5%, while preparing Cash Flow Statement its effect on cahs flow will be:
Answer» Cash used from financing activitiesRs2,12,000 Cash received from financing activitiesRs 2,12,000 Cash used (PAYMENT) from FINANCIAL activitiesRs 2,10,000 Cash used (Payment) from financial activeitiesRs 2,00,000 Answer :C

Discussion

1730.	Identity revenue receipt from the following :
Answer» Donationsfor BUILDING SUBSCRIPTION Life MEMBERSHIP Fees Legacy DONATION for SPORTS fund. Solution :Subscription

Discussion

1731.	Identity capital receipt from the following:
Answer» LIFE MEMBERSHIP FEES Rent Receipt Entrance fees Sports expenses. Solution :Life Membership Fees

Discussion

1732.	Identify which of the following transactions are classified or shown as OperatingActivity : (i) Cashrecived from sale of goods. (ii)Cash paidfor purchase of goods. (iii) Paymentof salaries and wages . (iv)Paymentof interest on loan. (v)Repaymentof loan . (vi) Purchase of machinery .(vii)dividend paid. (viii) Sale of car incash. (ix) Commissionreceived. (x) Cash recived formtarde receivables.
Answer» Solution :TRANSACTIONS that are classified as Operating Activity are : (i) CASH receivedformsale of GOODS. (ii) Cash paidfor purchaseof goods. (III) Paymentof salariesand WAGES. (ix)Commissionrecived. (x) Cash recived from thetrade receivalbes.

Discussion

1733.	Identify which of the following transactions are (i) Operating Activities, (ii) InvestingActivities, (ii) Financing Activities, and (iv) Cash and Cash Equivalents: 1. Sale of Investmente 2 Dividend received on Shares 3 Interest recived on Investments 4. Rent received by a Real Eetate Company 5. Rent received by a Company whose main Basiness io Manuturing 6. Intreset paidon Debentures or long -terms Loans, 7. Marketable Securities 8 Proceeds from Shares issued, and 9 Interest paid on Bank Overdraft
Answer» SOLUTION :Operating Activities : RENT received by a Real Rotate Company Investing Activites : SALE of Investments, Dividend received on SHARES, intereset received on Investments, Rent received by a Company Whose main Busines is Manufacting . Financing Activities : Interest paid on Debentures or ongterm Loans, Proceeds from THESHARES issue,Interest paidon Bank Overdraft. Cash and Cash Equivalents : Marketable Securities.

Discussion

1734.	Identify which of the following items will be shown in the Note to Accounts on Other Expenses: (i) Wages, (ii) Courier Expenses, (iii) Internal Expenses, (iv) Rent for factory, (v) Carriage Outwards, (vi) Depreciation on Furniture, (vii) Rent for werehouse, (viii) Rent for office, (ix) Audit fee and (x) Staff Welfare Expenses.
Answer» SOLUTION :ITEMS that will be shown in the Note to Accounts on Other Expenses are: (ii) Courier Expenses, (III) Internet Expenses, (iv) Rent for factory, (v) CARRIAGE Outwards, (vi) Rent for warehouse, (viii) Rent for office and (ix) Audit FEE.

Discussion

1735.	Identify which of the following transactions are (i) Operating Activities, (ii) InvestingActivities, (ii) Financing Activities, and (v) Cash and Cash Equivalents:
Answer» Solution :Operating Activities : Marketing Expenses, Cash RECEIVED from Trade Receivables, Commission Received, Selling and Distribution Expenses. Investing Activities :Purchase of Investments. Financing Activities : Buy-back of Equity SHARES, Repayment of a Long-term Loan, REDEMPTION of Debentures, Bank Overdraft/Cash CREDIT. Cash and Cash Equivalents: SALE of Marketable Securities.

Discussion

1736.	Identify which of the following items will be shown in the Note to Accounts on Other Expenses? (i) Salaries, (ii) Postage Expenses, (iii) Telephone and Internet Expenses, (iv) Rent for warehouse, (v) Carriage Inwards, (vi) Depreciation on computers, (vii) Computer Software amortised, (viii) Computer Hiring Charges, (ix) Audit fee, and (x) Bonus.
Answer» Solution :(ii) Postage Expenses; (III) Telephone and Internet Expenses; (IV) Rent of warehouse; (v) Carriage inwards; (viii) COMPUTER Hiring Charge; (IX) Audit fee.

Discussion

1737.	Identify the which is not shown under Receipts and payments Account in case of NPO.
Answer» Salaries Rent DEPRECIATION None of These. Solution :Depreciation

Discussion

1738.	Identify the transactions as belonging to(i ) Operating Activities, (i) investing Activities, (iii) Financing Activities and (v) Cash and Cash Equivalents: (a) Cash Sale of Goods. (b) Cash Received against Revenue from Services rendered(C ) Cash Purchase of Goods (d) Cash Paid against Services Taken(e ) Patents Purchased (f) Marketable Securities (g) Bank Overdraft(h) Proceeds from Issue of Debentures(i) Purchase of Shares(j)Repayment of Long-term Loan (k)Commission Received (l) Redemptionof Debentures (m ) Interet on Debenture (n) interest on Investments (o) Icome Tax Paid (p) Income Tax Paid on Gainof Sale of Asset (q) CashReceived from Debtors (r) Cash Paid to Creditors.
Answer» <P> Answer :Operating Activities :(a),(b),(C),(d),(k),(o),(Q),(r); INVESTING Activities (e),(i),(n) ,(p) ; financing Activities : (G),(h),(j),(I),(m); Cash and Cash Equivalents : (f).

Discussion

1739.	Identify the major heads under which the following items will be shown in the Balance Sheet of a company as per Schedule III of Companies Act, 2013: (i) Provision for Tax. (ii) Loan payable on demand. (iii) Computer and related equipment. (iv) Goods acquired for trading.
Answer» SOLUTION :(i) Current LIABILITIES; (ii) Current Liabilities; (III) Non-current ASSETS; (IV) Current Assets.

Discussion

1740.	Identify the purpose of utilising the 'Security Premium' that would maximise the return to shareholders.
Answer» SOLUTION :The AMOUNT of Securities Premium is USED to issue FULLY paid bonus shares to the shareholders that would maximise their return.

Discussion

1741.	Identify the item which is not shown under Receipts and Payments Account in case of NPO
Answer» Salaries Rent DEPRECIATION None of these Solution :Depreciation

Discussion

1742.	Identify the item which item which is not a part of Shareholder's Funds
Answer» Share APPLICATION MONEY Pending ALLOTMENT Share Capital Reserves and Surplus Money RECEIVED against Share Warrants Solution :Share Application Money Pending Allotment

Discussion

1743.	Identify the following transactions belonging to (i) Operating Activities, (ii) Investing Activities, (iii) Financing Activities, and (iv) Cash and Cash Equivalents:
Answer» Solution :Operating Activities: 1, 2, 3, 5, 6, 8, 11, 13, 20, Investing Activities:12, 15, 17, 19, FINANCING Activities : 9, 10,14, Cash and Cash Equivalents: 4, 7, 16, 18.

Discussion

1744.	Identify out of the following transactions that are shown as Financing Activity: (i) Repayment of Loan taken. (ii) Proceeds from Issue of Shares. (iii) Debentures subscribed by the company (iv) Redemption of Preference Shares ltbgt (v) Interest paid. (vi) Dividend paid (vii) Increase in Bank Overdraft or Cash Credit (viii) Issue of bonus shares.
Answer» Solution :Transactions that are shown as FINANCING ACTIVITY are (i) REPAYMENT of Loan taken (II) Proceeds from Issue of Shares. (IV) Redemption of Preference Shares (v) Interest paid. (vi) Dividend paid. (vii) Increase in Bank Overdraft or Cash Credit

Discussion

1745.	Identify out of the following transactions that are classified or shown as Investing Activity (i) Cash proceeds from sale of fixed asset. (ii)Cash paid for purchase of Stock-in-Trade. (ii) Repayment of loan taken. (iv) Debentures purchased. (v) Loan advanced (vi) Purchase of Patents.
Answer» SOLUTION :Transactions that are classified as Investing Activity are (i) Cash PROCEEDS from SALE of fixed asset. (iv) Debentures purchased. (v) LOAN ADVANCED (vi) Purchase of Patents

Discussion

1746.	Identify revenue receipt from the following
Answer» DONATIONS for Building SUBSCRIPTION Life MEMBERSHIP Fees Legacy DONATION for SPORTS Fund Solution :Subscription

Discussion

1747.	Identify Financing Activities out of the following transactions: 1. Purchase of securities of a company, 2. Brokerage paid for the above purchaves 3. Sale of securities of a company: 4. Dividend and interest received on securities 5. Dividend paid to the shareholders, 6. Interest paid on borrowings 7. Loans and advances made, and 8. Receipt of loans and advances made.
Answer» Solution :1.Dividend paid to the Shareholders: It is a financing activity as dividend is paid on the SHARE Capital of the company. Share Capital is to be shown as Financing Activityas per AS-3 (Revised), Cash Flow STATEMENT. 2.Interest paid on BORROWINGS: Borrowings are shown as Financing Activity as per AS-3 (Revised), Cash Flow Statement. Interest is related to borrowings, THEREFORE, it will ALSO be shown as Financing Activity.

Discussion

1748.	Identify capital receipt from the following
Answer» LIFE MEMBERSHIP FEES Rent Receipt Entrance fees Sports expenses Solution :Life Membership Fees

Discussion

1749.	Identify a situation, under which the Court may order for dissolution of a partnership firm. Or State any one occasion for the dissolution of the firm on Court's orders.
Answer» SOLUTION :PERSISTENT BREACH of AGREEMENT by a PARTNER.

Discussion

1750.	(i)Current Accounts arer maintained in case of fluctuatig capital system. (ii) Partners are entitled to get interest @6% p.a. on the loan given to thefirm , if Partnership Deed is silent on the issue.(iii) At least two persons are necessary to form a partnership. (iv) In the absence of a agreement , profits and losses are distributed among the partners equally.(v) a partner who devotes more time to a business than others is entitled to get a salary . (vi) A partner who has invested more capital in the firm is entitled to get interest on the difference in capital amount. (vii) When a partner draws a fixed sum at the end month for 12 months, interest on total drawings will be equal to interest of 5^(1//2) months at an agreed rete per annum. (viii) When a partner draws a fixed sum in the middle of each month for 12 months , interest on total drawings will be equal to intersts of 6 month at an agreed rate per annum. (ix) If the Partnership Deed is silent , interest @6% would be charged on the drawings made by the partner . (x) Interest on partner 's loan is to be given @10% p.a. if silent about the rate(xi) Valid partnership can formulated even without a written agreement between the partner.(xii) Partners are mutual agents of each other sofar as the business of firm is concerned.
Answer» Solution :[(i) False ; (ii) True ;(III) True ;(iv) True ; (v) False ; (VI) False ; (VII) True ; (viii)True ; (ix) False ; (x) False ;(XI)True ; (xii) True.]

Discussion

Explore topic-wise InterviewSolutions in .

If opening inventory is Rs 1,20,000, Cost of Revenue from Operations is Rs 10,00,000 and Inventory Turnover Ratio is 5 Times, then Closing Inventory will be

If openingcapitalof partnersare A Rs, 3,00,000 ,B Rs, 2,00,000 and C Rs, 1,00,000 and their drawingduringthe yearare A Rs, 50,000 ,B Rs, 40,000 and C Rs, 30,000and creditorsare Rs, 60,000 , whatwillbe theamountof assetsof thefirm?

If Debt equity ratio exceeds ……….., it indicates risky financial position.

If debentures are converted into shares, how will it be shown in Cash Flow Statement?

If date of drawings is not given, interest is calculated for

If Current Ratio of a firm is 2.5 :1 and its Current Liabilities are Rs.2,00,000. It Working Capital will be

If date of drawing is not geven , interest is calculated for

If Current Ratio of a firm is 2.5 : 1 and its Current Liabilities are Rs 2,00,000. Its Working Capital will be

If creditors are Rs, 25,000 ,CapitalisRs, 1,50,000 and cashbalanceis Rs. 10,000, whatwillbe theamountofsundryassets ?

If average inventory is Rs. 50,000 and closing inventory is Rs. 2,000 less than the opening inventory, opening and closing inventory will be:

If at the time of admission there is an unrecorded liability , it is

If, at the time of admission, balance appears in the Profit and Loss Account in the books, it is transferred to

If , at the time of admission , balance appears in the profit and loss Account in the books, it is tranferred to

If at the time of admission there is an unrecorded liability, it is

If a share Rs.10 issued at a premium of Rs.2 on which the full amount has been called and Rs.8 (including premium ) paid is forfeited, the Share Capital Account Should be debited with

If a sharehold does not pay his dues on allotment, for the amount due, there will be a

If a shareholder does not pay his dues on allotment , for the amount due , there will be a

If a share of Rs 10 issued at a premium of Rs 2 on which the full amount has been called and Rs 8 (including premium) paid is forfeited, the Share Capital Account should be debited with

If a partner takes over an asset, such (Partner’s Capital Account) is —— (debited/credited).

If a partner draws equal amount in the beginning of each month , interest is chargedfor

If a partner draws equal amount in the beginning of each month, interest is charged for

If a machine whose original cost is Rs 40,000 having accumulated depreciation Rs 12,000 were sold for Rs 34,000 then while preparing Cash Flow Statement its effect on cash flow will be :

If a loan from a partner appears on the liabilities side of the Balance Sheet of the firm and the Capital Account of such partner shows a debit balance , howis loan deal with ?

If a liability is assumed by a partner, such Partner’s Capital Account is —— (debited/credited).

If a general donation of smaller amount is received by a school, that donation will be shown in :

If a General Donation of huge amount is received by a school, that donation is treated as :

If a Company's Current Liabilities are Rs. 80,000, Working Capital is Rs. 2,40,000 and Inventory is Rs. 40,000, its quick ratio will be:

Idntify the purpose of purpose of utilizing the 'Security Premium Reserve' that would maximise the return to shareholders.

if 6% pref. share capital Rs 2,00,000 were redeemed at a premium of 5%, while preparing Cash Flow Statement its effect on cahs flow will be:

Identity revenue receipt from the following :

Identity capital receipt from the following:

Identify which of the following transactions are (i) Operating Activities, (ii) InvestingActivities, (ii) Financing Activities, and (v) Cash and Cash Equivalents:

Identify the which is not shown under Receipts and payments Account in case of NPO.

Identify the major heads under which the following items will be shown in the Balance Sheet of a company as per Schedule III of Companies Act, 2013: (i) Provision for Tax. (ii) Loan payable on demand. (iii) Computer and related equipment. (iv) Goods acquired for trading.

Identify the purpose of utilising the 'Security Premium' that would maximise the return to shareholders.

Identify the item which is not shown under Receipts and Payments Account in case of NPO

Identify the item which item which is not a part of Shareholder's Funds

Identify the following transactions belonging to (i) Operating Activities, (ii) Investing Activities, (iii) Financing Activities, and (iv) Cash and Cash Equivalents:

Identify out of the following transactions that are classified or shown as Investing Activity (i) Cash proceeds from sale of fixed asset. (ii)Cash paid for purchase of Stock-in-Trade. (ii) Repayment of loan taken. (iv) Debentures purchased. (v) Loan advanced (vi) Purchase of Patents.

Identify revenue receipt from the following

Identify capital receipt from the following

Identify a situation, under which the Court may order for dissolution of a partnership firm. Or State any one occasion for the dissolution of the firm on Court's orders.