

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.
2451. |
Can 'Securities Premium Reserve' be used as working capital ? Give reason in support of your answer. |
Answer» Solution : 'Securities Premium Reserve' cannot be used as working capital. It can be used only for those PURPOSES which are SPECIFIED under section 52 of Companies Act, 2013. | |
2452. |
Can 'securities premium reserve' be distributed as dividend ? |
Answer» Solution :Amount of SECURITIES premium reserve cannot be distributed as dividend. It can only be used for the PURPOSES LISTED under Section 52 of the Companies Act. | |
2453. |
Can 'Securities Premium'be used as working capital? Give reason in support of your answer. |
Answer» SOLUTION :Securities Premium' cannot be used as working capital. It can be used only for those purposes which are SPECIFIED inSection 52(2) of the Companies ACT, 2013. | |
2454. |
(Calls-in-Arrears Account). Ghosh Ltd. Made the second and final call on its 50,000 Equity Shares @ Rs. 2 per share on 1st January,2006. The whole amount was received on 15th January, 2006 except on 100 shares allotted to Venkat. Pass necessary Journal entry for the cell money due andreceived byopening Calls-in-Arrears Account. |
Answer» SOLUTION :![]() |
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2455. |
Cana partnerbe exmptedfromsharinglossesin afirm? Ifyesunderwhatcircumstances ? |
Answer» Solution :Yes, a partner may be exempted from bearing losses in a Partnership FIRM. If a partner (who is a minor) is admitted for the BENEFITS of partnership, in such cases, minors are entitled to share only profits of the firm. | |
2456. |
Calls in advance appear in a Company's Balance Sheet under ........... |
Answer» Share Capital |
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2457. |
Calls in Arrears appear in a Company's Balance Sheet under ......... |
Answer» RESERVE & SURPLUS |
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2458. |
Can a Company issue a share having face value of Rs. 10 at Rs. 9 ? |
Answer» Solution :No. Under SECTION 53 of the Companies Act, 2013, a Company cannot issue shares at discount. | |
2459. |
Call-in -Advance is shown as |
Answer» SHAREHOLDERS' Funds |
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2460. |
Calculate the Materials Consurned Ratio, Employees Benefit Expenses Ratio, Admninistrative Expenses Ratio, Selling and Distribution Expenses Ratio and Other Expenses Ratio from the following information {:("","₹ "),("Opening Stock (Finished Goods)","Nil"),("Net Sales ","1,60,000"),("Material Consumed ","80,000"),("Closing Stock (Finished Goods )","Nil"):}:|{:(,"₹"), ("Wages", 25","000) , ("Administrative Expenses" , 22","800), ("Selling and Distribution Expenses" , 5","200), ("Manufacturing Expenses", 16","000):} |
Answer» Solution :[Meterials CONSUMED RATIO = 50 % , EMPLOYEES Benefit EXPENSES Ratio= 15.63 % Administration Expenses Ratio= 14.25 % , Selling and Distribution Expenses Ratio =3.25 %,Other Expenses Ratio = 10 %.] |
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2461. |
Calculate the amount of sports material to be debitid to the Income and Expenditure Account of Capital Sports Club for the year ended 31st March, 2018 on the basis of the following information: |
Answer» SOLUTION :![]() 2. SPORTS MATERIAL Used (2017-18) = Opening Stock+ Purchases - Closing Stock = RS.7,500+Rs.19,600- Rs. 6,400= Rs.20,700. |
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2462. |
Calculate the amount of credit purchase from the following information :{:("Particulars", " 1st Aprill2018 (Rs.)","31 stMarch , 2019 (Rs.)"),("Creditors for Stationery","""4,600","" "11,800"):} During the year ended 31 st March ,2019 , payment made to creditors of Rs. 56,800. |
Answer» RS. 54,000. |
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2463. |
Calculate the amount of credit purchase from the following information {:("Particulars","1st April, 2019 (Rs)","31st March, 2019(Rs)",),("Creditors for Stationey","4,600","11,800",):} During the year ended 31st March, 2019, payment made to creditors of Rs 56,800 |
Answer» RS 54,000 |
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2464. |
Calculate the amount of gross profit: {:("Average inventory",=,Rs.80_(,)000),("Inventory turnover ratio",=,"6 times"),("Selling price",=,25% "above cost"):} |
Answer» | |
2465. |
Calculate Revenue from Operations, Other Income and Total Revenue for a non-Financial company from the following information: Sales Rs 12,00,000, Sales Return Rs 2,00,000, Sale of Scrap Rs 25,000, Interest on Fixed Deposits Rs 30,000, Dividend Earned Rs 10,000. |
Answer» ![]() |
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2466. |
Calculate 'Return on Investment' and 'Debt to Equity Ratio' from the following information:Net Profit after Interest and TaxRs. 6,00,00010% DebenturesRs. 10,00,000Tax Rate 40%Capital Employed Rs. 80,00,000 |
Answer» Solution :(i) Return on Investment (ROI) = 13.75%. (ii) Debt to Equity Ratio = 1 : 7 or 0.14 : 1. Working Notes: • Net Profit before Interest and TAX = Rs. 11,00,000 •Debt = 10% Debentures = Rs. 10,00,000 • Equity = Capital Employed - Debt = Rs. 70,00,000. |
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2467. |
Calculate revenue from Operations, Other Income and Total Revenue for a financial company from the following information: Miscellaneous Income Rs 5,000, Interest on Loans Rs 8,00,000, Dividend Rs 1,00,000, Gain (Profit) on Sale of Building Rs 15,00,000. |
Answer» ![]() |
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2468. |
Calculate 'Return on Investment' and 'Debt to Equity Ratio' from the following information: Net Profit after Interest and TaxRs.3,00,00010% DebenturesRs. 5,00,000Tax Rate40%Capital EmployedRs. 40,00,000 |
Answer» SOLUTION :(i) Return on Investment = `("Net Profit before Interest and Tax")/("CAPITAL Employed ")xx 100` = `(Rs. 5,50,000("Note"))/(Rs. 40,00,000) xx 100` = 13.75%. WORKING Note: Calculation of Net Profit before Interest and Tax:Rs. Net Profit after Interest and Tax3,00,000 Add: Interest on 10% Debentures 50,000 Tax`((Rs. 3,00,000xx40)/(60))` 2,00,000 Net Profit before before Interest and Tax `ulbar(5,50,000)` (ii) Debt to Equity Ratio = `("Debt")/("Equity")` = `(Rs. 5,00,000)/(Rs. 35,00,000) = 1 : 7 or 0.14 : 1`. Working Note: Debt = 10% Debentures = Rs. 5,00,000. Equity = Capital Employed - Debt Rs. 40,00,000 - Rs. 5,00,000 = Rs. 35,00,000. |
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2469. |
Calculate Operating Profit Ratio if Revenue from Operations is Rs 5,00,000, Operating Profit is Rs 75,000. |
Answer» 0.25 |
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2470. |
Calculateintereston drawingsof Rakesh@ 10%p.afor theyearended31 st march ,2019 ineachof thefollowingalternativecases : case 1.if hisdrewingsdurings the year were Rs. 30,000 case 2. if thewithdrawsRs. 2,500 permonthsduring the year. |
Answer» Solution :Case .Assuming thatdrewingsweremadeevenly throughoutthe year, interestondrawingshas beencalculatedforan averageperiod of 6 MONTHS . interestonDrawings `=Rs,30,000xx10//100xx6//12=Rs. 1,50.` case 2.totalDrawings`=Rs. 2,500xx12=Rs. 0,000` INTEREST on DRAWINGS =Rs. 30,000 `XX`10/100`xx`6/12=Rs. 1.,1500 important ote: ifthe dateof drawingsis not givenandacountingperiodis lessthan6 months, thentheintereston totaldrawings iscalculated forhalfof theaccounting period. Situation 9.whenthe rateof interestis givenwith outtheword ' perannum ')p.a) interestischargedwithoutconsidingthe timefactor . |
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2471. |
Calculate Inventory Turnover Ratio: {:("Annual Revenue from operations",=,Rs. 2_(,)00_(,)000),("Gross Profit",=,20% "on cost of Revenue from"),("Inventory in the beginning",=,Rs. 38_(,)500),("Inventory at the end",=,Rs.41_(,)500):} |
Answer» | |
2472. |
Calculateintereston drawingsOf Mr. siddhant@ 10%p.a for theyearended31 st March , 2019in each of thefollowing alternativecases : Case1.if hewithdrew Rs. 60,000 in thebeginning fo eachquarter . case 2.if thewithdrew Rs. 60,000at theendof eachquarter . Case 3.if hewithdrewRS. 90,000in themiddleof each quarter . |
Answer» Solution :TotalDrawings in cases 1 and2=` Rs. 60,000 xx4=Rs. 2,40,000` TotalDrawings n case3= Rs. 90,000`xx`4= Rs. 3,60,000. ![]() Situation 7.if fixedamount iswith drawn during6 months : (i)in THEBEGINNING of eachmonth: intereston drawings =TotalDrawings `xx("Rate ")/(100)xx(3^(1/2))/(12)` LTBR. (ii)in themiddleof each month : INTEREST on drawings =TotalDrawings `xx("rate")/(100)xx(3)/(12)` (iii)At theendof each month : interestonDrawings=totalDrawings `xx("Rate")/(100)xx(2^(1/2))/(12)` |
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2473. |
Calculate Operating Profit Ratio If from Operations is Rs.5,00,000 . Operations Profit is Rs.75,000. |
Answer» ANSWER :d | |
2474. |
Calculateinterestona'sdrawings @ 10%if hewithdrew Rs. 2,50,000during theyear . |
Answer» Solution :intereston drewings =Rs. 2,50,000 `XX`10/100=Rs. 25,000 Remember: intereston DRAWINGS is anincome for thefirmandhenceiscreditedto profitand loss AppropriationAccountOn thehandintereston drawings is a lossto thepartnerandisdebitedto hiscapitalAccount (in CASE ofFLuctuating CAPITAL ) orcurrent ACCOUNT (in caseofFixedcapital ). thejoutnalenteristorecord interestondrawings are: ![]() |
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2475. |
Calculate Earning Per Share (EPS) from the following data , Profit after Tax: ₹ 50,000 10 % Preference Share Capital ( ₹ 10 each) , ₹ 1,00,000 Equity Share Capital ( ₹ 10 per Share ), ₹ 1,00,000 |
Answer» SOLUTION :Earning Per SHARE `=("Profit after Tax - PREFERENCE Dividend ")/("Number of Equity SHARES ")` =`("₹ 50,000 - ₹ 10,000")/("10,000")=(" ₹ 40,000 ")/(" 10,000")= ₹ 4.` |
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2476. |
Calculate Current Ratio of a company from the following information:Inventory (Stock) Turnover Ratio: 4 TimesInventory (Stock) in the beginning was Rs. 20,000 less than Inventory, at the end.Revenue from Operations (Net Sales) Rs. 6,00,000Gross Profit Ratio 25%Current Liabilities Rs. 60,000Quick Ratio 0.75 : 1 |
Answer» Solution :CURRENT RATIO = 2.79 : 1. Closing INVENTORY (Stock) = Rs. 1,22,500, Quick Assets = Rs. 45,000. Current Assets = Closing Inventory (Stock) + Quick Assets = Rs. 1,22,500 + Rs.45,000 = Rs. 1,67,500. | |
2477. |
{:("Calculate Earing per share ","₹"),("Net profit before Tax","2,00,000"),("10 % Preference shares of ₹ 100 each ","2,00,000"),("Equity Shares of ₹ 10 each ","2,00,000"),("Tax Rate","50%"):} |
Answer» SOLUTION :[EPS = ₹ 4] | |
2478. |
Calculate Cost of Materials Consumed from the following: Opening Inventory of Materials Rs 5,00,000, Purchase of Materials Rs 25,00.000, and Closing Inventory of Materials Rs 4,00,000. |
Answer» |
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2479. |
Calculate Cost of Materials Consumed from the following: Opening Inventory of: Materials Rs 2,50,000, Finished Goods Rs 1,00,000, Closing Inventory of: Materials Rs 2,25,000, Finished Goods Rs 75,000, Raw Material purchased during the year Rs 15,00,000. |
Answer» |
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2480. |
Calculate Cost of Materials Consumed from the following: Opening Inventory of: Materials Rs 3,50,000, Finished Goods Rs 75,000, Stock·in-Trade Rs 2,00,000, Closing Inventory of: Materials Rs 3,25,000, Finished Goods Rs 85,000, Stock-in-Trade Rs 1,50,000, Purchases during the year: Raw Material Rs 17,50,000, Stock-in-Trade Rs 9,00,000. |
Answer» |
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2481. |
Calculate 'Cash Flows from Operating Activities' from the following information:Additional information:(i) Plant costing Rs. 60,000 having book value of Rs. 36,000 was sold for Rs. 40,000 during the year.(ii) Income tax paid during the year was Rs. 30,000. (iii) Dividend paid during the year was Rs. 18,000. |
Answer» Solution :![]() Working Notes: 1. Calculation of Net Profit before Tax and Extraordinary Items: `{:(,"Rs","Rs",),("Closing Surplus, i.e., Balance in Statement of Profit and LOSS",,"80,000",),("Less: OPENING Surplus, i.e., Balance in Statement of Profit and Loss",,("1,00,000")/(("20,000")),),("Net Loss during the year",,,),("Add: Tax paid","30,000",,),("Dividend paid","18,000",,),("Transfer to General RESERVE",ul("30,000"),ul("78,000"),),("Net Profit before Tax and Extraordinary items",,ul("58,000"),):}` ![]() 3. Gain (Profit) on Sale of Plant = Rs. 40,000 (Sale Proceeds) - Rs. 36,000 (Book value) = Rs. 4,000. |
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2482. |
Calculate Cash Flows from Investing Activities from the following information:Additional Information:(i) 9% dividend was received from Miko Ltd.(ii) A machine costing Rs. 50,000 (depreciation provided thereon Rs. 15,000) was sold for Rs. 40,000. Depreciation charged during the year was Rs. 55,000. |
Answer» SOLUTION :![]() WORKING NOTE: ![]() |
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2483. |
Calculate Cash Flows from Investing Activities from the following information:Additional Information:(i) 10% dividend was received from Delko Ltd.(ii) A machine costing Rs. 70,000 (Depreciation provided thereon Rs. 10,000) was sold for Rs. 60,000. Depreciation charged during the year was Rs. 50,000. |
Answer» SOLUTION :Cash Used in INVESTING Activities = Rs. 6,40,000. Dividend RECEIVED = Rs. 1,60,000. INTEREST on INVESTMENT = Rs. 1,10,000. | |
2484. |
Calculate Cash Flows from Investing Activities from the following information:Additional Information:A machine costing Rs. 35,000 (Depreciation provided thereon Rs. 15,000) was sold for Rs. 35,000. Depreciation charged during the year was Rs. 45,000. |
Answer» SOLUTION :Cash USED in Investing Activities = Rs. 11,65,000. [Hint:INTEREST on Long-term INVESTMENTS = Rs. 20,000.] |
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2485. |
Calculate Cash Flows from Investing Activities from the following information:Additional Information:A machine costing Rs. 40,000 (depreciation provided thereon Rs. 12,000) was sold for Rs. 35,000.Depreciation charged during the year was Rs. 60,000. |
Answer» SOLUTION :![]() WORKING NOTE: ![]() |
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2486. |
Calculate Cash Flow from OperatingActivites from the following information : An item of plant conting ₹ 20,000 havingbookvalue of ₹ 14,000 was sold for ₹ 18,000 duringtheyear. |
Answer» SOLUTION :![]() ![]() ![]() |
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2487. |
Calculate Cash Flow fromOperating Activites from the following. (i) Profits for theyear is ₹ 7,00,000 after considering the following item: |
Answer» |
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2488. |
Calaulateintereston drawingsof ashok@10%p.afor theyear ended31st March, 2019 in eachof the following alternativecaases : Case 1.is hewithdrew RS. 7,500 in thebeginningof eachquarter. Case 2.if he withdrewRS. 7,500at theend ofeachquater . Case 3.if he withdrew Rs. 7,500duringthemiddleof eachquater. |
Answer» |
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2489. |
C and D were partners in a firm sharing profits in the ratio of 3:2. On 28th Febuary, 2016 the firm was dissolved. After transferring assets (other than cash) and outsiders' liabilities to Realisation Account, you are given the following information: (a) A creditor Rs 2,00,000 accepted building of Rs 2,80,000 at Rs 2,20,000 and paid the firm Rs 20,000. (b) A second creditor for Rs 75,000 accepted furniture at Rs 60,000 in full settelement of his claim. (c) A third creditor amounting to Rs 80,000 accepted Rs 20,000 in cash and investments of the book value of Rs 65,000 in full settlement of his claim. (d) Loss on dissoluton was Rs 7,500. Pass necessary journal entries for the above transactions in the books of the firm assuming that all payments were made by cheque. |
Answer» SOLUTION :(a) Dr. Bank A/c and Cr. Bank A/c by Rs 20,000. (b) No `Entry^(**).` (c ) Dr. RealisationA/c and Cr. Bank A/c by Rs 20,000. (d) Dr. C's CAPITAL A/c-Rs 4,500 and D's Capital A/c -Rs 3,000, Cr. Realisation A/c -Rs 7,500. `""^(**)No` Journal entry will be passed when any ASSET is given to may of the creditors TOWARDS the full/partial payment of his dues. |
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2490. |
C and D are partners in a firm sharing profits in the ratio of 4:1. On 31st March, 2016, their Balance Sheet was as follows: On the above date, E was admitted for 1/4th share in the profits on the following terms, (i) E will bring Rs 1,00,000 as his capital and Rs 20,000 for his share of goodwill premium, half of which will be withdrawn by C and D. (ii) Debtors Rs 2,000 will be written off as bed debts and a provision of 4% willbe created on debtors for bad doubtful debts. (iii) Stock will be reduced by Rs 2,000, furniture will be depreciated by Rs 4,000 and 10% depreciation will be charged on plant and machinery. (iv) Investments of Rs 7,000 not shown in the Balance sheet will be taken into account. (v) There was an outstanding repairs bill of Rs 2.300 which will be recordd in the books. Pass necessary journal entries for the above transactions in the books of the firm on E's admission. |
Answer» SOLUTION :REVALUATION LOSS- RS 8,660. ![]() |
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2491. |
C and Darepartners in afirm , Chascotributed Rs. 1,00,000and D Rs, 60,000ascapitalinterestispayable@6%p.aand D entitledto salary of Rs. 3,000permonth ,in theyearended31st March,2019 , theprofitwas Rs. 80,000 beforeinterestand salary DividetheamountbetweenC and D . |
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2492. |
Calculate Cash Flowfrom OperatingActivites form thefollowinginformation: |
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2493. |
Buy back of shares is an extra - ordinary item for |
Answer» OPERATING ACTIVITIES. |
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2494. |
Buy-back of shares is an extra-ordinary item for |
Answer» OPERATING ACTIVITIES |
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2495. |
(Business Purchase and Issue of Shares to Vendor). Complete the following Journal entries: |
Answer» SOLUTION :![]() |
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2496. |
(Business Purchase and Issue of Shares to Vendor). Complete the following Journal entries: |
Answer» SOLUTION :![]() |
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2497. |
Business Forms Ltd. Sold its car at a gain (profit) of Rs 10,000. How will it be shown in the Statement of Profit and Loss? |
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2498. |
Brij and mohanarepartnersin a firmtheywithdrewRs. 48,000 andRs. 36,000respectively duringthe yearevenlyin themidleofeverymonthAccoding to thepartnershipagreementinterestondrawingsis tobe charged@10%p.aCalulateinterestondrawings of thepartners usingtheappropritateformula . |
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2499. |
Briefly explain the nature of expenses that are shown under Finance Costs. |
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2500. |
Briefly explain the limitations of Financial Statements. |
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