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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.
| 2001. |
From the following , which ratio is not a part of Profitability Ratio : |
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Answer» LIQUID RATIO |
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| 2002. |
From the following , which ratio is not a part of Activity Ratio: |
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Answer» INVENTORY Turnover RATIO |
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| 2003. |
From the following which one is a Non-Cash transaction |
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Answer» DEPRECIATION |
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| 2004. |
From the following which ratio is not a part of Activity Ratio |
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Answer» Inventory Turnover RATIO |
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| 2005. |
From the following which one is a Non - Cash transaction : |
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Answer» DEPRECIATION |
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| 2006. |
From the following which formula is correct for computing Operating Ratio |
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Answer» `("OPERATING Cost")/("REVENUE from Operations") xx 100` |
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| 2007. |
From the following, which formula is correct for computing Gross Profit Ratio |
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Answer» `("Net Profit")/("Revenue from OPERATIONS")xx100` |
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| 2008. |
From the following , which formula is correct for computing Gross Profit Ratio : |
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Answer» `("Net Profit")/(" REVENUE from Operations")XX100.` |
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| 2009. |
From the following , which formula is correct computing Operating Ratio : |
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Answer» `("Operating COST")/("REVENUE from Operations")xx100.` |
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| 2010. |
From the following Statement of Profit and Loss, prepare Common-size Statement of Profit and Loss of Jayant Ltd. For the year ended 31st March, 2016: |
Answer» SOLUTION :
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| 2011. |
From the following Statement of Profit and Loss of Suntrack Ltd. For the years ended 31st March, 2012 and 2011, prepare 'Comparative Statement of Profit and Loss': |
Answer» SOLUTION :
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| 2012. |
From the following Statement of Profit and Loss of Sun Ltd., for the years ended 31st March, 2015 and 2016, prepare a Common-size Statement: |
Answer» SOLUTION :
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| 2013. |
From the following Statement of Profit and Loss of Moontrack Ltd. For the years ended 31st March, 2012 and 2011, prepare 'Comparative Statement of Profit and Loss': |
Answer» SOLUTION :
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| 2014. |
From the following receipts and payments and information given below, Prepare Income and Expenditure Account and opening Balance Sheet of Adult Literacy Orgnisation as on December 31, 2017. Receipt and Payment Account for the year ending as on December 31, 2017 Information: (i) Subscription outstanding as on 31.12.2016Rs.2,000 and on December 31, 2017 Rs.1,500. (ii) On December 31, 2017 Salary outstandingRs.600, and one month Rent paid in advance. (iii) On Jan. 01, 2016 orgnisation owned Furniture Rs.12,000, Books Rs.5,000. |
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| 2015. |
From the following statement of profit and loss of Madhu Co. Ltd. Prepare comparative statement of profit and loss for the year ended March 31,2016 and 2017: |
Answer» Solution :Comparative statement of PROFIT and loss of MADHU Co. LIMITED for the year ended MARCH 31,2016 and 2017: 
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| 2016. |
From the following 'Statement of Profit and Loss' for the year ended 31st March, 2013, prepare 'Comparative Statement of Profit and Loss of Good Services Ltd.: Rate of Income Tax was 50%. |
Answer» SOLUTION :
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| 2017. |
From the following Receipt and Payment Account prepare final accounts of a Unity Club for the year ended March 31, 2017 Receipt and Payment Accounts for the year ending March 31, 2017 Balance Sheet as on March 31, 2017 Additional Information: 1. The Club had 500 members each paying an annual subscription of Rs. 150. 2. On 31.3.2016 salaries outstanding amounted to Rs. 1,200 and salaries paid included Rs. 6,000 for the year 2015-16 . 3. Provide 5% depreciation on Land and Building. |
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| 2018. |
From the following Receipt and Payment Account of Jan Kalyan Club, prepare Income and Expenditure Account and Balance Sheet for the year ending March 31, 2017. Receipt and Payment Account for the year ending March 31, 2017 Additional Information: |
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| 2019. |
From the following Receipt and Payment Account of a club, prepare Income and Expenditure Account for the year ended March 31, 2017 and the Balance Sheet as on that date. Receipt and Payment Account for the year ending March 31, 2017 Additional Information: (a) The club has 100 members each paying an annual subscription of Rs.900. Subscriptions outstanding on March 31, 2016 were Rs.3,600. (b) On March 31, 2017, salary outstanding amounted to Rs.1,000, Salary paid included Rs. 1,000 for the year 2016. (c) On April 1, 2017 the club owned land and building Rs.25,000, furniture Rs.2,600 and books Rs.6,200. |
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| 2020. |
From the following Receipt and Payment Account for the year ending March 31, 2015 of Negi's Club, prepare Income and Expenditure Account for the same period: Receipt and Payment Account for the year ending March 31, 2015 The following additional information is available: (i) Salaries outstanding – Rs. 1,500, (ii) Entertainment expenses outstanding – Rs. 500, (iii) Bank interest receivable – Rs. 150, (iv) Subscriptions accrued – Rs. 400, (v) 50 per cent of entrance fees is to be capitalised, (vi) Furniture is to be depreciated at 10 per cent per annum. |
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Answer» SOLUTION :Books of NEGI's CLUB Income and Expenditure Account for the YEAR ENDING 31.3.2015  
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| 2021. |
From the following Receipt and Payment Account and additional information relating to Excellent Cricket Club, prepare Income and Expenditure Account for the year ended March 31, 2015 and Balance Sheet as on date. Assets at the beginning of the year were: {:(,,Rs),(,"Play ground","5,00,000"),(,"Cash in hand","18,000"),(,"Stock of sports materials","85,000"),(,"Printing and Stationery","11,000"),(,"Subscriptions receivable","28,000"):} Donations and Surplus on account of tournament are to be kept in Reserve for a permanent pavilion. Subscriptions due on March 31, 2015 were Rs. 42,000. Write-off fifty per cent of sports materials and thirty per cent of printing and stationery. |
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Answer» Solution :Books of Excellent CRICKET CLUB Income and Expenditure Account for the year ending on March 31, 2015  Note: Since the opening balance of the capital fund is not given, the same has been ASCERTAINED by preparing opening balance sheet. Balance Sheet of Excellent Cricket Club as on March 31, 2015  Balance Sheet of Excellent Cricket Club as on March 31, 2014 
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| 2022. |
From the following particulars taken from the Cash Book of a health club, prepare a Receipts and Payments Account. |
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| 2023. |
From the following particulars relating to Silver Point, prepare a Receipt and Payment account for the year ending March 31, 2017. |
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Answer» Solution :BOOKS of Silver POINT RECEIPT and Payment Account for the YEAR ending MARCH 31, 2017 
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| 2024. |
From the following particulars, prepare Statement of profit and loss for the year ending March 2017: Additional information (i) Equity dividend @ 10% declared on paid up capital. (ii) Dividend on the preference share capital paid in full. (iii) Rs. 2,00,000 transferred to general reserve |
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Answer» SOLUTION :Statement of Profit Loss for the year ENDING 31ST March, 2017 
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| 2025. |
From the following particulars , prepare Income and Expenditure account: |
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| 2026. |
From thefollowing infromation , prepare Cash Flow Statement: |
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| 2027. |
From the following information related to Naveen Ltd., calculate (a) Return on Investmentand (b) Total Assets to Debt Ratio. information: Fixed Assets Rs. 75,00,000, Current Assets Rs. 40,00,000, Current Liabilities Rs. 27,00,000, 12% Debentures Rs. 80,00,000 and Net Profit before Interest, Tax and Dividend Rs. 14,50,000. |
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Answer» SOLUTION :(a) RETURN on Investment = `("Net Profit before Interest, Tax and Dividend")/("Capital Employed")xx100` `=("Rs. 14,50,000")/("Rs.88,00,000")xx100=16.48%`. Net Profit before Interest, Tax and Dividend = Rs. 14,50,000. Capital Employed = Fixed ASSETS + Current Assets - Current Liabilities = Rs. 75,00,000 + Rs. 40,00,000 - Rs. 27,00,000 = Rs. 88,00,000. (b) Total Assets to Debt Ration = `("Total Assets")/("Long-term Debts")` `=("Rs. 1,15,00,000")/("Rs. 80,00,000")=1.44 : 1`. Total Assets = Fixed Assets + Current Assets Rs. 75,00,000 + Rs. 40,00,000 = Rs. 1,15,00,000. Long-term Debt = 12% Debentures = Rs. 80,00,000. |
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| 2028. |
From the following information provided, prepare Comparative Statement of Profit and Loss for the period 2016 and 2015: |
Answer» Solution :COMPARATIVE STATEMENT OF PROFIT AND LOSS for the PERIOD 2015 and 2016 WORKING Note: Other Expenses:2015 = 20/100 [Rs. 6,00,000 - Rs. 3,60,000] = Rs. 48,000. 2016 = 15/100 [Rs. 9,00,000 - Rs. 4,50,000] = Rs. 67,500. |
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| 2029. |
From the following information, prepare Note to Accounts on Finance Costs: Interest paid to Bank Rs 75,000, Interest on Debentures Rs 58,000, Loss on issue of Debentures written off Rs 27,500, and Commitment Charges Rs 15,000. |
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| 2030. |
From the following information, prepare Common size statement of profit and loss for the year ended March 31, 2016 and March 31,2017: |
Answer» Solution :COMMON size STATEMENT of Profit and Loss for the YEAR ended March 31,2016 and March 31, 2017: 
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| 2031. |
From the following information, prepare Note to Accounts on Employees Benefit Expenses: Wages Rs 2,70,000, Salaries Rs 3,60,000, Staff Welfare Expenses Rs 60,000, Printing and Stationery Expenses Rs 20,000 and Business Promotion Expenses Rs 50,000. |
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| 2032. |
From the following information, prepare Cash Flow Statement of Balaji Ltd.:Note to AccountsAdditional Information: (i) Debentures were issued on 1st April, 2012. (ii) During the year machine included in Fixed Assets costing Rs. 1,20,000 was purchased and another machine having Book Value of Rs. 30,000 was sold at a loss of Rs. 2,000. |
| Answer» SOLUTION :`{:("Cash Used in Operating ACTIVITIES","Rs. 51,000"),("Cash Used in Investing Activities","Rs. 92,000"),("Cash Flow from Financing Activities","Rs. 1,53,000"),("Net INCREASE in Cash and Cash EQUIVALENTS","Rs. 10,000"):}` | |
| 2033. |
From the following information, prepare a Comparative Statement of Profit and Loss of Y Ltd. For the year ended 31st March, 2015: |
Answer» SOLUTION :COMPARATIVE STATEMENT OF PROFIT AND LOSSfor the years ENDED 31st March, 2014 and 2015
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| 2034. |
From the following information, prepare a Comparative Statement of Profit and Loss: |
Answer» Solution : Working Notes: 1. Other INCOME: 31st March, 2016 = Rs. 18,00,000 `XX` 25/100 = Rs. 4,50,000. 31stMarch, 2017 = Rs. 24,00,000 `xx` 15/100 = Rs. 3,60,000. 2. Expenses: 31st March, 2016 = Rs. 18,00,000 `xx` 50/100 = Rs. 9,00,000. 31st March, 2017 = Rs. 24,00,000 `xx` 60/100 = Rs. 14,40,000. Common-Size Statement of Profit and Loss (Common-size Income Satement) |
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| 2035. |
From the following information, prepare a Common size Income Statement for the year ended March 31,2016 and March 31, 2017: |
Answer» SOLUTION :COMMON Size INCOME statement for the year ended March 31,2016 and March 31, 2017 
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| 2036. |
From the following information of Hospitality Ltd. for the year ended 31st March, 2018, calculate amount that will be shown in the Note to Accounts on Changes in Inventories of Finished Goods, WIP and Stock-in-Trade: |
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| 2037. |
From the following information of Best Marketing Ltd. for the year ended 31st March, 2019 prepare Note to Accounts on Depreciation and Amortisation Expenses: Depreciation on: Building Rs 15,500, Plant and Machinery Rs 25,000, Computers Rs 60,000, Goodwill written off Rs 7,500, Patents written off Rs 12,500. |
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| 2038. |
From the following information of Abacus Ltd. for the year ended 31st March, 2019, prepare Note to Accounts on Finance Costs: (i) Interest paid on Term Loan Rs 2,50,000, (ii) Interest paid on Bank Overdraft Rs 35,000, (iii) Discount on Issue of Debentures Written off Rs 10,000, (iv) Interest Received on Fixed Deposits Rs 25,000, (v) Bank Charges Rs 9,500 and (vi) Interest paid on Deposits Rs 75,000. |
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| 2039. |
From the following information of a Not-for-Profit Organisation, show the sports material item in the Income and Expenditure Account for the year ended 31 st March, 2018 and Balance Sheet as at 31st March, 2017 and 31st March, 2018: {:(,"31st March, 2017 (Rs)","31st March, 2018(Rs)"),("Stock of sports material","7,200","5,800"),("Creditors for sports material","5,800","9,200"),("Advance to suppliers for sports material","12,000","21,000"):} Payment to suppliers for the sports material during the year was Rs.1,00,000. There were no cash purchases made. |
Answer» Solution : `{:("Alternatively: Calculation of Sports Material USED:",Rs.),("OPENING Stock","7,200"),("Add: PURCHASES (WN1)",UNDERLINE("94,400")),(,"1,01,600"),("Less: Closing Stock","5,800"),("Sports Material Used", underline underline overline ("95,800)):}` |
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| 2040. |
From the following information obtained from the books of Kundan Ltd., calculate the Inventory Turnover Ratio for the years 2015-16 and 2016-17: In the year 2015-16, inventory increased by Rs. 2,00,000. |
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Answer» Solution :Inventory TURNOVER Ratio = `("Cost of Revenue from Operations")/("Average Inventory")` For 2015-16: Cost of Revenue from Operation = Revenue from Operation - Gross Profit Rs. 50,00,000 - Rs. `10,00,000^(*)` = Rs. 40,00,000 Average Inventory = `("Opening Inventory + Closing Inventory")/(2)` `= (Rs. 5,00,000 + Rs. 7,00,000)/(2)` = Rs. 6,00,000 `therefore`Inventory Turnover Ratio = `(Rs. 40,00,000)/(Rs. 6,00,000)` = 6.67 Times. `.^(*)`LET the cost = Rs. 100, Gross Profit = Rs. 25 Sales = Cost + Profit = Rs. 100 + Rs. 25 = Rs 125 `therefore` Gross Profit on Sale (Revenue from Operations) = Rs. 25/Rs. 125 or 1/5th of the Sale Gross Profit = Rs. 50,00,000 `xx 1//5` = Rs. 10,00,000. For 2016-17: Cost of Revenue from Operation = Revenue from Operation - Gross Profit = Rs. 75,00,000 - Rs. 15,00,000 (i.e., Rs. 75,00,000 `xx 1//5`) = Rs. 60,00,000 Average Inventory = `("Opening Inventory + Closing Inventory")/(2)` `= (Rs. 7,00,000 + Rs. 17,00,000)/(2)` = Rs. 12,00,000 `therefore`Inventory Turnover Ratio = `(Rs. 60,00,000)/(Rs. 12,00,000)` = 5 Times. |
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| 2041. |
From the following information for the year ended 31st March, 2019, prepare Note to Accounts on Employees Benefit Expenses: (i) Wages Rs 2,40,000, (ii) Salaries Rs 3,60,000, (iii) Enetertainment Expenses Rs 15,000, (iv) Bonus Rs 50,000, (v) Gratuity Paid Rs 1,20,000, (vi) Conveyance Expenses Rs 25,000, and (vii) Medical Expenses Rs 40,000. |
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| 2042. |
From the following information, compute the amount to be shown in Note to Accounts on Employees Benefit Expenses: Wages Rs 5,40,000, Salaries Rs 7,20,000, Bonus Rs 1,05,000, Staff Walfare Expenses Rs 60,000, and Business Promotion Expenses Rs 50,000. |
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| 2043. |
From the following information, compute 'Debt to Equity Ratio':{:("Long-term Borrowings","Rs. 2,00,000"),("Long-term Provisions","Rs. 1,00,000"),("Current Liabilities","Rs. 50,000"):}:|{:("Non-current Assets","Rs. 3,60,000"),("Current Assets","Rs. 90,000"):} |
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Answer» SOLUTION :Debt to Equity Ratio = `("Debt")/("Equity")=("Rs. 3,00,000")/("Rs. 1,00,000")=3 : 1` Working Notes: 1. Debt = Long-term BORROWINGS + Long-term Provisions = Rs. 3,00,000. 2. Equity = CURRENT ASSETS + Non-current Assets - Debt - Current Liablities = Rs. 1,00,000. |
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| 2044. |
From the following information, Compute Debt to Equity Ratio: Long-term BorrowingsRs. 4,00,000Long-term ProvisionsRs. 2,00,000Current LiabilitiesRs. 1,00,000Non-currentAssetsRs. 7,20,000Current AssetsRs. 1,80,000 |
| Answer» Solution :Debt to EQUITY Ratio = `("Debt")/("Equity")=("RS. 6,00,000")/("Rs. 2,00,000")=3 : 1` | |
| 2045. |
From the following information, compute 'Proprietary Ratio':Long-term BorrowingsRs. 2,00,000Long-term ProvisionsRs. 1,00,000Current LiabilitiesRs. 50,000 Non-current AssetsRs. 3,60,000Current AssetsRs. 90,000 |
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Answer» SOLUTION :Proprietary Ratio =`("Shareholders' Funds")/("Total Assets")=("RS. 1,00,000")/("Rs. 4,50,000")=0.22 : 1` or 22.22%. WORKING NOTES: Total Assets = Current Assets + Non-current Assets = Rs. 4,50,000. Shareholders' Funds = Current Assets + Non-current Assets - Long-term Provisions - Current Liabilities = Rs. 1,00,000. |
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| 2046. |
From the following information, colculate the amount of subscirptions outstanding for the year 2017-18: A club has 250 members, each paying an annual subscription of Rs1,000. The Recipts and Payments Account for the year showed a sum of Rs2,95,000 received as subscriptions. The following additional information is provided: |
| Answer» SOLUTION :SUBSCRIPTIONS OUTSTANDING for the YEAR 2017-18 Rs53,000. | |
| 2047. |
From the following information compute current Ratio: |
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Answer» Solution :DEBT to Equity Ratio =`("Debt")/("Equity Shareholders' funds")=(Rs 600000)/(Rs 300000)=2:1` "Debt =Long -term BORROWINGS + Longs-term Provisions" =Rs 500000+Rs 100000=Rs 600000 Equity =Equity SHARE capital + General Reserve + Surplus i.e ,BALANCE in statement of Profit and Loss (Dr) =Rs 200000+ Rs 200000-Rs 100000 =Rs 300000. Surplus i.e Balance in Statement of Profit and Loss (Dr) means negative balance |
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| 2048. |
From thefollowing information , calulate Proprietary Ration : Share Capital Rs. 5,00,000. , Non - Current Assets Rs. 22,00,000, Reserves and Surplus Rs. 3,00,000. Current Assets Rs.10,00,000. |
| Answer» ANSWER :d | |
| 2049. |
From the following information, calculate Total Assets to Debt Ratio:{:(," Rs"),("Capital Employed","40,00,000"),("Investment","2,40,000"),("Plant","7,00,000"),("Trade Receivables","4,00,000"),("Cash and Cash Equivalents","3,60,000"):}:|{:(," Rs"),("Equity Share Capital ","22,50,000"),("8% Debentures","18,00,000"),("Capital Reserve","3,40,000"),("Surplus, i.e., Balance in",),("Statement of Profit and Loss","(50,000)"):} |
| Answer» Solution :TOTAL Assets to DEBT Ratio= 1.16 : 1. | |
| 2050. |
From the following information, calculate the amount of subscriptions outstanding for the year 2017-18: A club has 200 members each paying an annual subscription of Rs1,000. The Receipts and Payments Account for the year showed a sum of Rs2,05,000 received as subscriptions. {:(,Rs),("Subscriptions outstanding on 31st March,2017","40,000"),("Subscriptions received in advance on 31st March, 2018","30,000"),("Subscriptions received in advance on 31st March, 2017","12,000"):} |
| Answer» SOLUTION :SUBSCIRPTIONS OUTSTANDING for the YEAR 2017-18-Rs 53,000. | |