

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.
2401. |
Comparative statement of Profit & Loss provides information about : |
Answer» Rate of increase or decrease in REVENUE from operations |
|
2402. |
(commission topartners andDistributionof profit ) X and Yarepartners in a firmX geta commmissionof 10%on thenetprofitsbeforechargingany ammissionan Y getcommissionfo 10 %on thenetprofits aftercharging allcommission . computethe missingfigure (?)fromthe followingprofit andLossappropriationAccount for theyearended31st March, 2019: |
Answer» SOLUTION :![]() Workingnotes: 1.Calculationfo profitbefore chagingany commlssion : x'scommission10% on the net profitbeforechargingany COMMISSION=RS, 1,65,000B `THEREFORE` Netprofitbeforechargingany commission`=1,65,000xx100//10=Rs. 16,50,000` 2.Calculationof y's commission : Net profitafter chargingX's commission`=Rs. 16,50,000-Rs. 1,65,000 =Rs. 14,85,000` Y'scopmmission`=Rs. 14,85,000xx10//110=Rs. 1,35,000` |
|
2403. |
Comparative Balance Sheet : |
Answer» Provides a summarized view of the operations of the firm |
|
2405. |
Common size statements and financial ratios are the two tools employed in vertical analysis. |
Answer» |
|
2406. |
Comparative analysis is also know as _______analysis. |
Answer» |
|
2407. |
Classity the following transactiona as Operating Activities for: (i) FinacialEnterprise , and (ii)Non- finanical Enterprise. (a)Pruchase of securites of a company , (b)Brokerage paid tor the above purchases (c ) Sale of Securitiesof a company, (d)Dividend and interestrecived on securities, (e)Dividend paid to shareholders, (f)Interest paidon borrowings, (g) Loan andadvances made, and (h)Receiptofloans and advances made.Givenreason ofyour answer. |
Answer» Solution :(i) FINANCIAL Enterprise : All thetransactions except (e) and (f) (i.e., Dividend paid to shareholdersbe classitied or shown as OPERATING Activities. It is so because Purchase andSale of Securities and also Borrowings and Advancing Loans are the principal revenue producing activities of a financial enterprise. Non financial Enterprise: All the transactions except (e) and (f) (i.e., Dividend paid to shareholders and Interest paid onborrowings respectively) shall be classified asInvesting Activities because these are not the principal revenue producing activities of the enterprise. Transactions (e) and (f) shall be classified as Financing Activities because these are related to activities that change the SIZE and composition of the owners' capital and borrowings. When does the Cash Flow Arise? Cash Flow arises when the net effect of a transaction either increases or decreases the amount of Cash and Cash EQUIVALENTS. It arises when a transaction affects either: 1. A Current Account (other than Cash and Cash Equivalents) on one hand and Cash and Cash Equivalents on the other hand, e.g., cash received from debtors (Trade Receivables), OR 2. A Non-Current Account on one hand and Cash and Cash Equivalents on the other hand e.g., purchase of goodwill, causes a change in cash position. |
|
2408. |
Classify the liabilities (Trade Payable) given below as Non-current Liabilities and Current Liabilities giving reasons for such classification: |
Answer» ![]() |
|
2409. |
Classify the following transactions as Operating Activitles for a financial company and a non-financial company : (a) Purchase of Shares on a Stock Exchange (b) (c ) Dividend paid on Shares. (d) Loans given(e ) Loans taken(f)Interest paid on borrowings. |
Answer» |
|
2410. |
Classify the following Assets (Trade Receivables) into non-current assets and current assets and give reasons for such classification: |
Answer» ![]() |
|
2411. |
Classify the following activities as (i) Operating,(ii) Investing or (iii) Financing in case of a 'Financial Enterprise'.(a) Proceeds from Sale of Investments(b) Interest received on Debentures held as Investment. |
Answer» SOLUTION :(a) OPERATING ACTIVITY(B) Operating Activity. | |
2412. |
(Classification of Shareholders' Funds'). Name the sub-heads under the head 'Shareholders' Funds'. |
Answer» (ii) RESERVES and Surplus, and (iii) MONEY Received against Share WARRANTS. |
|
2413. |
(Classification of 'Non-current Assets'). Name the sub-heads under the head 'Non-current Assets' in the Assets part of the Balance Sheet as per Schedule III of the Companies Act, 2013. |
Answer» (ii) Non-current INVESTMENTS, (iii) DEFERRED TAX Asset (Net), (iv) Long-term Loans and Advances, and (V) Other Non-Current Assets. |
|
2414. |
(Classification of 'Non-current Liabilities'). Name the sub-heads under the head 'Non-current Liabilities' in the Equity and Liabilities part of the Balance Sheet as per Schedule III of the Companies Act, 2013. |
Answer» (ii) DEFERRED TAX LIABILITIES (Net), (iii) Other Long-term Liabilities, (iv) Long-term Provisions. |
|
2415. |
(Classification of Equity and Liabilities). State the major heads under Equity and Liabilities part of the company's Balance Sheet. |
Answer» • Shareholders' Funds, • Share APPLICATION Money Pending Allotment, • Non-CURRENT Liabilities, and • Current Liabilities. |
|
2416. |
(Classification of 'Current Liabilities). Name the sub-heads under the head 'Current Liabilities' in the Equity and Liabilities Part of the Balance Sheet. |
Answer» (ii) Trade Payables, (III) Other CURRENT Liabilities, (IV) Short-term Provisions. |
|
2417. |
(Classification of 'Current Assets'). Name the sub-heads under the head 'Current Assets' in the Assets part of the Balance Sheet as per Schedule III of the Companies Act, 2013. |
Answer» (ii) Inventories, (III) Trade Receivables, (iv) Cash and Cash Equivalents, (v) Short-term LOANS and Advances, (VI) Other Current Assets. |
|
2418. |
(Classification of Assets). State the major heads under which the items appearing in the Assets part of the company's Balance Sheet are classified. |
Answer» (i) Non-current Assets, and (II) Current Assets. |
|
2419. |
(Classification of ' Fixed Asset'). Name the sub-heads under the head 'Fixed Assets' in the Assets part of the Balance Sheet as per Schedule III of the Companies Act, 2013. |
Answer» (ii) Intangible Assets, (III) Captial Work-in-Progress, and (iv) Intangible Assets under DEVELOPMENT. |
|
2420. |
(Classification of Assets). Rearrange the following items under assets according to Schedule III: (i) Office Equipment, (ii) Loose Tools, (iii) Goodwill, (iii) Trademarks, (v) Bills Receivable, (vi) Debtors (vii) Land, (viii) Building, (ix) Stock-in-Trade, (x) Stores and Spare Parts, (xi) Furniture, (xii) Vehicles, (xiii) Advance to Subsidiaries (xiv) Cash at Bank, (xv) Cash in Hand, (xvi) Work-in Progress (Machinery), (xvii) Plant, (xviii) Interset Accured on Investments, and (xix) Deposits with Electricity Supply Company. |
Answer» (II) Fixed Assets (Intangible): Goodwill, Trademarks. (iii) Captial Work-in Progress: Work-in-Progress (Machinery), (iv) Long-term Loans and ADVANCES: Advance to Subsidaiaries, Deposits with Electricity Supply Company. (v) Inventories: Loose Tools, Stock-in-TRADE, Stores and Spare Parts. (vi) Trade RECEIVABLES: Bills Receivable, Debtors. (vii) Cash and Cash Equivalents: Cash at Bank, Cash in Hand. (Other Current Assets: Interest Accured on Investments. |
|
2421. |
Claims against the Company not acknowledged as debts' is shown under the head ............ |
Answer» CURRENT Liabilities |
|
2422. |
Claim of the retiring partner is payable in the following form |
Answer» Fully in cash |
|
2423. |
Claim of the retiring partner is payable in the following form : |
Answer» Fully in CASH. |
|
2424. |
Choose NPO from the followings |
Answer» RELIANCE INDUSTRIES Limited |
|
2425. |
Choose NPO from the following : |
Answer» RELIANCE INDUSTRIES Limited |
|
2426. |
Change in theexistingagreement between thepartners is called : |
Answer» DISSOLUTIONOF FIRM |
|
2427. |
Change in profit-sharing ratio amounts to dissolution of partnership or partnership firm? Give, reason in support of your answer. Or Does the charge in profit-sharing ratio result into dissolution of the partnership firm? Give, resaon in support of your answer. |
Answer» Solution :Change in profit-sharing RATIO AMOUNTS to dissolution of PARTNERSHIP and not dissolution of firm as the existing AGREEMENT COMES to an end and the firm continues under new agreement. | |
2428. |
Chandra Tubes Ltd. Issued 70,000, 7% debentures of Rs.100 each on June 30, 2011 redeemable at a premium of 6% on July 1, 2015. The Board of Directors have decided to transfer out of profits Rs.7,50,000 to Debenture Redemption Reserve on March 31, 2013, Rs.5,00,000 on March 31, 2014 and Rs.5,00,000 on March 31, 2015. Record necessary journal entries regarding issue and redemption of debentures. Ignore entries relating to writing off loss on issue of debentures and interest paid thereon. |
Answer» SOLUTION :Debenture Redemption INVESTMENT Rs.10,50,000 on 30TH April, 2015, Debenture Redemption RESERVE amounting to Rs.17,50,000 will be transferred to General Reserve. | |
2429. |
Cemto Ltd. forfeited 6,000 shares of Rs. 10 each issued at a premium of Rs. 2 per share for the non-payment of final call of Rs. 3 per share. 300 of theforfeited shares were reissued for Rs. 8 per share as fully paid-up. Pass necessary Journal entries for theforfeiture and reissue of shares. Also prepare Share Forfeited Account. |
Answer» Solution :GAIN on Reissue to be SHARES transferred to CAPITAL RESERVE = Rs.1,500, Balance of Shares Forfeited Account = Rs. 39,900. |
|
2430. |
Chaman, Raman and Suman are partners sharing profits in the ratio of 5:3:2. Raman retires, the new profit sharing ratio between Chaman and Suman will be 1:1. The goodwill of the firm is valued at Rs. 1,00,000 Raman’s share of goodwill will be adjusted |
Answer» by DEBITING Chaman’s CAPITAL ACCOUNT and Suman’s Capital Account with Rs 15,000 each. |
|
2431. |
Change in Investories means : |
Answer» DIFFERENCE between OPENING INVENTORIES and CLOSING Inventories |
|
2432. |
Casio Machines Ltd. has an opening balance of 5,00,000 in Securities Premium Reserve and also debit balance of Rs 10,00,000 in Surplus, i.e., Balance in Statement of Profit and Loss under Reserves and Surplus. During the year ended 31st March, 2019, it incurred a loss of Rs 15,00,000. How will it be shown in Note to Accounts on Reserves and Surplus? |
Answer» ![]() (20,00,000) will be SHOWN against Reserves and Surplus under SHAREHOLDERS' FUNDS in the Balance Sheet. |
|
2433. |
Cash Revenue from Operations Rs. 4,00,000, Credit Revenue from Operations Rs. 21,00,000,Revenue from Operations ReturnRs. 1,00,000, Cost of revenue from operations Rs. 19,20,000. G.P. ratio will be |
Answer» ANSWER :D | |
2434. |
Cash from Operating activities will decrease due to : |
Answer» Invtrsdr in Current Assets |
|
2435. |
Cash from operating activities consists of : |
Answer» OPERATING PROFIT |
|
2436. |
Cash flow statement is prepared for financial planning of ............. |
Answer» LONG RANGE |
|
2437. |
Cash Flow Statement is based upon: |
Answer» ACCRUAL BASIS of ACCOUNTING. |
|
2439. |
Cash deposit with the bank with a maturity date after two months belongs to which of the following in the cash flow statement ? |
Answer» INVESTING activities |
|
2440. |
Cash deposit with the bank with a maturity date after two months belongs to which of the following while preparing Cash Flow Statement?(a) Investing Activities(b) Financing Activities(c ) Cash and Cash Equivalents(d) Operating Activities |
Answer» SOLUTION :(C ) CASH and Cash EQUIVALENTS. | |
2441. |
Cash Book can never have a credit balance. Why? |
Answer» Solution : CASH BOOK can NEVER have a credit balance because if the firm does not have cash it cannot make the PAYMENT | |
2442. |
CashBalanceshownin theBalancesheetis shownon dissolutionof firmin : |
Answer» Realisationaccount |
|
2443. |
Cash Balance Rs. 5,000, Trade payables Rs. 40,000, Inventory Rs. 50,000, Trade Receivables Rs. 65,000 and Prepaid Expenses are Rs. 10,000. Liquid Ratio will be : |
Answer» `1.75:1` |
|
2444. |
Cash Balance Rs. 15,000, Trade Receivables Rs. 35,000, Inventory Rs. 40,000, Trade Payables Rs. 24,000 and Bank Overdraft is Rs. 6,000. Current Ratio will be: |
Answer» `3.75:1` |
|
2445. |
Cash and Cash Equivalents does not include |
Answer» Cheques |
|
2446. |
Capitalsof A,B and Cas on31st March, 2019amountedto Rs,90,000 ,RS, ,3,30,000and Rs. 3,30,000and Rs. 6,00,000respectivelyprofitof Rs.1,80,000for theyear ended31stMarch2019wasdirtributedin theratioof 4:1:1 afterallowingintereston capitals @10%p.a During the yeareach partnerswithdrew Rs. 3,60,000thepartnershipDeedwassilentas toprofitsharingratioprovidedfor intereston capital 212% . passthe necessaryadjustmententryshoeing theworking clearly . |
Answer» |
|
2447. |
Carriage Inwards is shown in the Statement of Profit and Loss under: |
Answer» Cost of MATERIALS CONSUMED, |
|
2448. |
capitalAccountsof A and Bstoodat Rs. 4,00,000andRs. 3,00,000 respectively afternecessary adjustments in respectof thedrawingsand thenetprofitfortheyearended31st March,2019It wassubsequentlynoticedthat 5%p.a intereston capitaland alsodrawingwerenoit takenintoaccountinarrivingat thedisttributableprofitat the end of eachhalf year .the profitfor theyear as adjustment amountedtoRS. 2,00,000the partnersshareprofitsin theratioof 3:2you arereuiredto pass journalenterisand showadjustedcapital Accounts of thepatners. |
Answer» Cr. A's capital A/C Rs. 16,400 andB's CapitalA/C Rs. 12,800 (II) for intereston drawings on drawings : Dr ,A's capitalA/CRs. 900And B's capitalA/C Rs. 450 Cr. proftand loss adjustmentA/C Rs. 1,350. (iii)loss on adjustment : Dr.A's Ca[PITA,l A/c Rs. 16,710 andB's ca[pital A/c 11,41240 Cr. PROFITAND losssdjustment A/C Rs. 27,850. |
|
2449. |
Can you state the risks carried by FMCG- Cigarettes segment ? |
Answer» Solution :It CARRIES the risk of high IMPOSITION of tax due to Government policies which MAY reduce the demand for the PRODUCT .It will haveadverseeffect on the company's profit . | |
2450. |
Can a Trial Balance be prepared to check the arithmetical accuracy of the books of account under Single Entry System? |
Answer» Solution :No, a Trial BALANCE cannot be prepared to check the ARITHMETICAL accuracy of the books of ACCOUNT under Single ENTRY SYSTEM as all the accounts are not prepared | |