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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.
| 1951. |
Give the definition of 'Share'. |
| Answer» Solution :According to Section 2(84) of the Companies ACT, 2013,''Share MEANS a share in the share CAPITAL of a company and INCLUDES stock. ''Share Capital of a company is divided into units with a nominal value. Each of these small units is called a share. | |
| 1952. |
Give one transaction which may result into outflow of cash and one which may result into no flow of cash. |
| Answer» SOLUTION :Outflow of CASH: Cash paid to suppliers of GOODS. No FLOW of Cash: Deposits into bank. | |
| 1953. |
Give one point of distinction between Authorised Capital and Issued Capital. |
| Answer» Solution :Authorised CAPITAL refers to the maximum capital for which a COMPANY is authorised to issue whereas issued capital is that PART of authorised capital which is offered for SUBSCRIPTION. | |
| 1954. |
Give one limitation of Cash Flow Statement. |
| Answer» Solution :Cash Flow STATEMENT IGNORES non-cash TRANSACTIONS howsoever IMPORTANT they may be. | |
| 1955. |
Give one example of Financing Activity. |
| Answer» Solution :CASH PROCEEDS from ISSUE of shares or DEBENTURES. | |
| 1956. |
Give one example of an activity which is classified as Investing Activity in case of all the enterprises. |
| Answer» SOLUTION :PURCHASE of GOODWILL. | |
| 1957. |
Give one example of an activity which is classified as OperatingActivity in case of all the enterprises. |
| Answer» SOLUTION :PAYMENT MADE to EMPLOYEES. | |
| 1958. |
Give one example of an activity which is classified as FinancingActivity in case of all the enterprises. |
| Answer» SOLUTION :DIVIDEND PAID | |
| 1959. |
Give one difference between an Operating Activity and a InvestingActivity. |
| Answer» Solution :OPERATING Activity are the principal revenue PRODUCING activities of the enterprise whereas Investing Activities include the acquisition and disposal of long-term ASSETS and other investments not INCLUDED in cash equivalents. | |
| 1960. |
Give one difference between an Operating Activity and a Financing Activity. |
| Answer» Solution :Operating Activity is the principal revenue producing activity of the enterprise WHEREAS Financing Activity is that activity which changes the size and composition of owner's CAPITAL and borrowings of the enterprise. | |
| 1961. |
Give necessary Journal entries for settlement of Partner's Loan at the time of dissolution of firm under the following alternative cases : Case 1 . Loan from X (a Partner ) ₹ 25,000 , X's Capital Account (Credit Balance ) ₹ 30,000 . Case 2. Loan from X (a Partner) ₹ 25,000 , X's Capital Account (Debit Balance ) ₹ 26,000 . Case 3. Loan from X (a Partner ) ₹ 25 ,000 , X's Capital Account (Debit Balance ) ₹ 16,000. |
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Answer» Solution :Case 1 . Dr X's Loan A/c and CR. BANK A/c by₹ 25,000. Case 2. Dr. X's Loan A/c by₹ 25,000 and Bank A/c by₹1,000 , Cr. X's Capital A/c by₹ 26,000. Case 3. Dr. X's Loan A/c by₹ 25,000 , Cr. X's Capital A/c by₹ 16,000 and Bank A/c by₹9,000. |
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| 1962. |
Give one difference between an Investing Activity and a Financing Activity. |
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Answer» Solution :Investing Activities include the acquisition and disposal of long-term ASSETS and other INVESTMENTS not included in cash EQUIVALENTS. FINANCING Activities are activities that result in changes in the size and composition of the OWNER's capital (including Preference Share Capital in the case of a company) and borrowings of the enterprise. |
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| 1963. |
Give one advantages of Cash Flow Statement. |
| Answer» Solution :CASH Flow STATEMENT provides information about cash flow SEPARATELY for OPERATING, INVESTING and financing activities. | |
| 1964. |
Give four examples of Tangible Fixed Assets as per Schedule III, Part I of the Companies Act, 2013. |
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Answer» |
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| 1965. |
Givefouritermsthat mayappearon thecredit sideof thepatner'scurrentAccount |
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Answer» SOLUTION :(i) intereston capital (II) SALARY (iii)commission (iv)shareof profit |
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| 1966. |
Give any two objects of preparing Realisation Account in the dissolution of the firm. |
| Answer» | |
| 1967. |
Give any two transactions which result into inflow of cash. |
| Answer» Solution :(i) Cash RECEIVED against Trade RECEIVABLES.(ii) PROCEEDS from SALE of Fixed Assets. | |
| 1968. |
Give any two alternatives available to a company for tha allotment of shares in case of over subscription. |
| Answer» SOLUTION :(i) REJECTING excess applications, and (II) PRO RATA allotment. | |
| 1969. |
Give any two examples of Capital Receipt. |
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Answer» Solution :i)Sale of FIXED Assets and II) CAPITAL CONTRIBUTION |
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| 1970. |
Give any two examples of Capital Expenditure |
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Answer» Solution :(i) Customs duty paid on import of a machinery On (ii) Wages paid in CONNECTION with the ERECTION of new machinery What are Direct EXPENSES? |
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| 1971. |
Give any three points of difference between Shareholders and Debentureholders. |
Answer» SOLUTION :
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| 1972. |
Give any three advantages of ratio analysis |
| Answer» | |
| 1973. |
Give any one similarity between Receipts and Payments Account and Income and Expenditure Account. |
| Answer» SOLUTION :Both are PREPARED by a Not-For-Profit ORGANISATION. | |
| 1974. |
Give any one purpose for which the amount received as 'Securities Preminum' may be utilised. |
| Answer» Solution :SECURITIES Premium' MAY be UTILISED for writing off the PRELIMINARY expenses of the company. | |
| 1975. |
Give any one difference between reconstitution of a firm and dissolution of a firm. |
| Answer» | |
| 1976. |
Give an example of Horizontal and Vertical Analysis. |
| Answer» SOLUTION :Comparative Financial Statement is an EXAMPLE of HORIZONTAL Analysis. Ratio Analysis of the financial YEAR relating to a particular ACCOUNTING year is an example of Vertical Analysis. | |
| 1977. |
Give an example of an activity which remains financing activity for every enterprise. |
| Answer» SOLUTION :DIVIDEND PAID. | |
| 1978. |
Give an example of an activity which is a Financing Activity for every type of enterprise. |
| Answer» Solution :DIVIDEND PAID or issue of SHARES or debentures for CASH, is a Financing Activity for every TYPE of enterprise. | |
| 1979. |
Girija and Ganesh were partners in a firm sharing profits and losses in the ratio of 2:3. On 31st March, 2017 their Balance Sheet was as follows: On the above date the firm was dissolved. The assets were realised and the liabilities were paid off as follows: (a) Debtor of Rs 6,000 were proved bad. (b) Girija agreed to pay off her brother's Loan. (c ) One of the creditors for Rs 10,000 was paid only Rs 3,000 in fully settlement of his account. (d) Buildings were auctioned for Rs 1,80,000 and the auctioneer's commission amounted to Rs 8,000. (e) Ganesh took over part of stock at Rs 4,000 (being 20% less than the book value). Balance the the Stock was handed over to the remaining creditors in full settlement of their account. (f) Investments realised Rs 9,000 less. (g) Realisation expenses amount to Rs 17,000 and were paid by Ganesh. Prepare Realisation Account, Partners' Capital Accounts and Bank Account. |
Answer» SOLUTION :
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| 1980. |
GG Ltd. had issued 50,000 equity shares of Rs. 10 each at a premium of Rs. 2 per share payable with application money. The incomplete Journal entries related to the issue are given below. You are required to complete these blanks. |
Answer» SOLUTION :
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| 1981. |
Geeta, Sunita and Anita were partners in a firm sharing profits in the ratio of 5 : 3 : 2. On 1st January, 2015, they admitted Yogita as a new partner for 1/10th share in the profits. On Yogita's admission, the profit and Loss Account of the firm was showing a shwoing a debit balance of RS.20,000 which was credited by the accountant of the firm to the Capital Accounts of Geeta, Sunita and Anita in their profit-sharing ratio. Did the accountant give correct treatment? Give reason in support of your answer. |
| Answer» Solution : No, the accountant did not give correct treatment as the DEBIT balance of Profit and Loss ACCOUNT shows loss, it should have been debited to the Partner's CAPITAL Accounts.] | |
| 1982. |
General Reserve at the time of admission of a partner is transferred to |
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Answer» Revaluation Account. |
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| 1983. |
Geeta, Sunita nad Anita were partners in a firm sharing profits in the ratio of 5:3:2. On 1st January, 2015, they admitted Yogita as a new partner for 1/10th share in the profits. On Yogita's admission, the Profit and Loss Account of the firm was showing a debit balance of Rs. 20,000 which was credite by the accountant of the firm of the Capital Accounts of Geeta, Sunita and Anita in their profit-sharing ratio. Did the accountant give correct teratent? Give reason for support of your answer. |
| Answer» Solution :No, the accountant did not give CORRECT treatment as the bebit balance of Profit and LOSS Account SHOWS loss, it should be DEBITED to the PARTNERS' Capital Accounts. | |
| 1984. |
General Donation received by NPO is shown in the |
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Answer» CREDIT SIDE of income and Expenditure Account |
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| 1985. |
Gati Ltd. Has issued 30,000, 8% Debentures of Rs.100 each of which one-third is due for redemption on March 31st 2018. The company has in its Debenture Redemption Reserve Account a balance of Rs.3,80,000 on 31st March, 2017. Required Investment is made in fixed deposit on 30th April 2017 bearing interest @6% p.a. Record the necessary journal entries for the Redemption of Debentures. |
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Answer» Solution :Amount transferred to Debenture Redemption RESERVE Rs.3,70,000. Debenture Redemption Investment Rs.1,50,000. Interest received on FIXED deposit Rs.8,250. DRR transferred to General Reserve Rs.2,50,000. One THIRD of Debenture Redemption Reserve will be transferred to General Reserve A/c since one-third debentures are redeemed. |
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| 1986. |
Ganesh Ltd. issued a prospectus inviting applications for 20,000 shares of Rs. 10 each at premium of Rs. 4 per share, payable as follows : {:("On Application","Rs. 4 (including premium Rs. 1)"),("On Allotment","Rs. 3 (including premium Rs. 1)"),("On First Call","Rs. 3 (including premium Rs. 1)"),("On Second and Final Call","Rs. 4 (including premium Rs. 1)"):} Applications were received for 30,000 shares and pro-rata allotment was made on the applications for 24,000 shares. It was decided to utilise excess application money towards the sums due on allotment. X, who was allotted 500. shares, failed to pay the allotment money and on his subsequent failure to pay the first call, his share were forfeited. Y, who applied for 1,800 shares, failed to pay the two calls and his shares were forfeited after the second call. Of the shares forfeited, 1,7000 shares were re-issued as fully paid up for Rs. 8 per share, the whole of Y' shares being included. Prepare Cash Book, Journal and Balance Sheet. |
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Answer» Solution :Cash at Bank Rs. 2,78,500, Cash received on allotment Rs. 42,900, Balance of Share FORFEITURE A/c Rs. 1,140, Capital Reserve Rs. 4,860, Balance of Securities PREMIUM Reserve A/c Rs. 75,500, Total of Balance Sheet Rs. 2,78,500. HINT: (i) Entry on forfeiture of 500 Share of X : `{:("Share Capital A/c","Dr.3,500"),("Securities Premium Reserve A/c","Dr.1,000"),("(Rs. 500 for allotment + Rs. 500 for Ist Call)",),("To Share Allotment A/c","1,100"),("To Share First Call A/c","1,500"),("To Share Forfeiture A/c","1,900"):}` (ii) Entry on forfeiture of 1,500 SHARES of Y : `{:("Share Capital A/c","Dr.15,000"),("Securities Premium Reserve A/c",),("(Rs. 1,500 for 1st Call + Rs. 1,500 for 2ns Call)","Dr.3,000"),("To Share First Call A/c","4,500"),("To Shares Second & FINAL Call A/c","6,000"),("To Share Forfeiture A/c","7,500"):}` |
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| 1987. |
Gaining Ratio' means: |
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Answer» Old RATIO - New Ratio |
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| 1988. |
Gaining Ratio is |
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Answer» NEW RATIO - SACRIFICING Ratio. |
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| 1989. |
Gain (Profit) on sale of fixed assets by a non-financial company is shown in the Statement of Profit and Loss as: |
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Answer» REVENUE from OPERATIONS, |
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| 1990. |
Gaining Ratio: |
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Answer» NEW RATIO-Sacrificing Ratio |
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| 1991. |
G & S Ltd . Has outstanding 10,000, 8% Debentures of Rs.100 each that are redeemable at premium of Rs. 10 each . Out of these , 5,000 debentures are to be redeemed on 31st December , 2018 debenture Redemption Investment should be |
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Answer» Rs.75,000. |
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| 1992. |
From the trial balance and other information given below for a school, prepare Income and Expenditure Account for the year ended on 31.3.2017 and a Balance Sheet as on that date: Additional Information: (i) Tution fee yet to be received for the year are Rs. 25,000. (ii) Salaries yet to be paid amount to Rs.30,000. (iii) Furniture costing Rs. 40000 was purchased on October 1, 2016. (iv) The book value of the furniture sold was Rs. 50,000 on April 1, 2016 (v) Depreciation is to be charged @ 10% p.a. on furniture, 15% p.a. on Library books, and 5% p.a. on building. |
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Answer» Solution :Income and Expenditure Account for the year ending on March 31, 2017  Working Notes: 1. As admission fee is a regular income of a school, so it has been taken as a REVENUE income of the school. 2. DEPRECIATION on furniture has been computed as following on the assumption that furniture was sold on April 1, 2016. 
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| 1993. |
Gain (Profit) on sale of fixed assets by a financial company is shown in the Statement of Profit and Loss as: |
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Answer» REVENUE from OPERATIONS, |
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| 1994. |
From the Receipt and Payment Account given below, prepare the Income and Expenditure Account of Clean Delhi Club for the year ended March 31, 2017. Receipt and Payment Account for the year ending March 31, 2017 |
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Answer» Solution :Books of CLEAN DELHI Club Income and Expenditure Account for the year ENDING MARCH 31, 2017 
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| 1995. |
G & S Ltd. Had outstanding 10,000, 8% Debentures of Rs 100 each that are redeemable at premium of Rs 10 each. Out of these, 5,000 debentures are to be redeemed on 31st December, 2018. Debenture Redemption Investment should be |
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Answer» RS 75,000 |
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| 1996. |
From the given particulars of Shine and Bright Co. Ltd., as at March 31, 2017, prepare balance sheet in accordance to the Schedule III: |
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Answer» Solution :Books of SHINE and Bright LTD. BALANCE Sheet as at MARCH 31, 2017  
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| 1997. |
From the given items which is not shown under Current Liabilities |
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Answer» TRADE Payables |
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| 1998. |
From the given information, calculate the following:(i) Cost of Revenue from Operations (ii) Opening and Closing Inventory (iii) Quick Assets(iv) Current Assets information:Inventory Turnover Ratio 6 times, Inventory at the end is Rs. 6,000 more than the inventory in the beginning, Revenue from Operations (all credits) Rs. 2,40,000, Gross profit 25% on cost, Current Liabilities Rs. 80,000, Quick Ratio 0.80 : 1. |
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Answer» Solution :(i) Let the COST = Rs. 100 Gross profit = Rs. 25 Revenue from Operation (SALES) = Rs. 100 + Rs. 25 = Rs. 125 Revenue from Operation (all credit) = Rs. 2,40,000 (Given) `therefore` Cost of Revenue from Operations = Rs. 2,40,000 `xx` Rs. 100/Rs. 125 = Rs. 1,92,000. (ii) Let Opening Inventory = x Closing Inventory will be = x + Rs. 6,000 Average Inventory = `("Opening Inventory + Closing Inventory")/(2)` `= (x + x + Rs. 6,000)/(2)` Inventory Turnover RATIO = `("Cost of Revenue from Operations")/("Average Inventory")` `6 = (Rs. 1,92,000)/((x+x+ Rs. 6,000)/(2))` 6x + 6x + Rs. 36,000 = Rs. 3,84,000 12x = Rs. 3,84,000 - Rs. 36,000 12x = Rs. 3,48,000 x = Rs. 3,48,000/12 = Rs. 29,000 (Operating Inventory) Closing Inventory = Rs. 29,000 + Rs. 6,000 = Rs. 35,000. (iii) Quick Assets = Rs. 80,000 (CL) `xx` 0.80 = Rs. 64,000. (iv) Current Assets = Quick Assets + Inventory (STOCK) = Rs. 64,000 + Rs. 35,000 = Rs. 99,000. |
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| 1999. |
From the given items which is a part of Current Liabilities |
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Answer» Inventories |
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| 2000. |
From the following which ratio is not a part of Profitability Ratio |
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Answer» LIQUID RATIO |
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