

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.
2551. |
At the time of dissolution of the firm , the assets and liabilities appearing in the Balance Sheet are transferred to |
Answer» REVALUATION ACCOUNT . |
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2552. |
At the timeof firm 'sdissolution, Balance of generalReserveshownin theBalance sheet is credited to : |
Answer» REALISATION Account |
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2553. |
At the time of dissolution of the firm , loan from partner's relative is |
Answer» transferred to REALISATION Account. |
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2554. |
At the time of dissolution of the firm , loan from partner is |
Answer» TRANSFERRED to Realisation ACCOUNT. |
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2555. |
At the time of dissolution of the firm , if goodwill appears in the Balance Sheet , it is transferred to |
Answer» REALISATION ACCOUNT |
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2556. |
At thetimeof dissolution of partnershipfirm, theamountof 'Bills Payable ' Shownin theliabilitysideof balancesheetis transferred to : |
Answer» CAPITAL ACCOUNTS of partners |
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2557. |
At thetimeof dissolutionof partnershipfirm, Fictitousassets aretranserredto: |
Answer» CAPITALACCOUNTSOF PARTNERS |
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2558. |
At the time of dissolution of firm, Loan given by partner to the firm is paid out of the amount realised on sale of assets |
Answer» after paying off outside liabilities but before repayment of capital |
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2559. |
At thetimeofdissolutionof firm, " Loan of partners "(Loans GivenbyPartnersto thefirm) is paidoutof theamountrelisedon saleofassets : |
Answer» After makingthepaymentof loansgivenbythirdparty |
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2560. |
At the time of dissolution of partnership firm, Deferred Revenue Expenditure (Advertisement Expenditure) is transferred to |
Answer» CAPITAL ACCOUNT of PARTNERS |
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2561. |
At the time of dissolution of a firm, Debtors were Rs 17,000 out of which Rs 500 became bad and the rest realised 60%. Which account will be debited and by how much amount ? |
Answer» Realisation Account by RS 16,500 |
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2562. |
At the time of dissolution of firm, at what stage the balances of Partner's Capital Accounts are paid ? |
Answer» After paying OUTSIDER's LIABILITIES |
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2563. |
At thetimeof dissolutionof firm, atwhichstagethe balanceof partner'scapitalaccountsis paid? |
Answer» Aftermakingthepaymenttothird party 'sloans |
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2564. |
At thetimeof dissolutionof a firm, Creditorsare Rs,70,000 ,Partners ' Capitalis Rs, 1,20,000 , CashBalanceis Rs, 10,000 Otherassetsrealised Rs, 1,50,000 Profit /Loss in theRealisationacccount Will be : |
Answer» RS, 64,000 (LOSS) |
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2565. |
At the time of dissolution, a partner gives his personal asset to firm's creditor in settlement, the account credited will be |
Answer» REALISATION A/c |
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2566. |
At the time of admission of a new partner, general reserve appearing in the old balance sheet is transferred to: |
Answer» all PARTNER's CAPITAL account |
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2567. |
At the time of admission of a partner, who decides what will be the share of profit of the new partner out of the fram's profit? |
Answer» Solution :All the existing partners DECIDE the share of NEW PARTNER's profit with MUTUAL consent. | |
2568. |
At the time of change in profit- sharing ratio, sacrificing ratio is determined so that |
Answer» assets and liabilites are shown at their present value. |
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2569. |
At the time of admission of a partner, undistributed profits appearing in the balance sheet of the old firm is transferred to the capital account of: |
Answer» OLD partners in old profit sharing ratio |
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2570. |
Assuming that the Debt to Equity Ratio is 2. State giving reasons whether this ratio would increase, decrease or remain unchanged in the following cases (Any four): (i) Purchase of fixed asset on a credit of 2 months. Purchase of fixed asset on a long-term deferred payment basis.(iii) Issue of new shares for cash.(iv) Issue of Bonus shares.(v) Sale of fixed asset at a loss of Rs. 3,000. |
Answer» SOLUTION :![]() |
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2571. |
Assuming that the debt to equity ratio is 1:2 stte giving reason whether the ratio will improvedecline or will have no change in case equity shares are issued for cash |
Answer» | |
2572. |
At the time of admission of a new partner, new porfit-sharing ratio is determined. New or incoming partner acquires the share from old partners and as a result profit share of old partners is reduced. What is it know as and why is it important to determine it? |
Answer» SOLUTION :The reduced PART of the profit-sharing ratio of the old PARTNERS is know as Sacrificing Ratio. It is important to DETERMINE the sacrificing ratio because of the reason that the NEW partners will have a share in an existing frim for which he compensates by paying goodwill to the sacrificing partners in the sacificing ratio. | |
2573. |
Assuming that the Debt to Equity Ratio is 1 : 2, state giving reason, whether the ratio will improve, decline or will have no change in case Equity Shares are issued for cash. |
Answer» SOLUTION :The Debt to Equity Ratio will decrease. Reason: Issue of Equity Shares will increase the SHAREHOLDER's funds but the long-term DEBTS will remain the same. Therefore, the debt to Equity Ratio will decrease. |
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2574. |
Assuming that the current Ratio is 2:1 state giving reason whether the ratio will emprove decline or will have nop change in case a bill receivable is dishonoured |
Answer» | |
2575. |
Assuming that the current ratio is 2:1, Cash paid against Bills Payable would: |
Answer» INCREASE CURRENT ratio |
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2576. |
Assuming that Debt to Equity Ratio is 2:1 state giving reasons whether this ratio will increase or decrease or will have no change in each one of the following cases (i) Purchase of a fixed Assets by taking long-term loan. (ii) Sale of Fixed Asset (Book value rs 40000) at a loss of 5000. (iii) Sale of Fixed Asset (Book value Rs 40000) for Rs 50000. (iv) Issue of new shares for cash. (v)Issue of Bonus shares. (vi) Redemption of Debentures for cash. (vii) Conversion of Debentures into Equity shares. (viii) Declaration of final dividend |
Answer» SOLUTION :![]() |
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2577. |
Assuming that the Current Ratio is 2 : 1, state giving reason whether the ratio will improve, decline or will have no change in case a Bills Receivable is dishonoured. |
Answer» SOLUTION :There is no change in the Current Ratio. Bills RECEIVABLE dishonoured will not change the total of current assets because ONE current asset (B/R) will b REPLACED by another (Debtor). THEREFORE, Current Ratio will remain same. | |
2578. |
Assuming liquid ratio of 1:2:1, cash collected from debtors would: |
Answer» INCREASE liquid ratio |
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2579. |
Assuming that the current ratio is 2:1, purchase of goods on credit would: |
Answer» Increase CURRENT ratio |
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2580. |
Ashu, Sonal and Divya were partners in a firm sharing profits in the ratio of 4:3:2. Goodwill appeared at Rs 81,000 and general reserve at Rs 54,000 in the books of the firm. Ashu decided to retire from the firm. On the date of his reterment, goodwill of the firm was valued at Rs 1,35,000. The new profit-sharing ratio of Sonal and Divya was 1:2. Record necessary Journal entries on Ashu's retirement. |
Answer» SOLUTION :(i) Dr. Ashu's Capital A/c -Rs 36,000, SONAL's Capial A/c-Rs 27,000, and Divya's Capital A/c-Rs 18,000, CR. Goodwill A/c-Rs 81,000. (ii) Dr. General RESERVE A/c-Rs 54,000, Cr. Ashu's Capital A/c-Rs 24,000, Sonal's Capital A/c-Rs 18,000, Divya's Capital A/c-Rs 12,000. (iii) Dr. Divya's Capital A/c and Cr. Ashu's Capital A/c by RS 60,000 `(Rs1,35,000xx4//9)^(**).` `""^(**)As` Divya is the only gaining partner, she will COMPENSATE Ashu. |
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2581. |
Assets are revalued and liabilities are reassessed at the time of change in profit- sharing ratio so that |
Answer» assets and liabilities are shown at their present value. |
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2582. |
Ashok, Bhimand chetan were partners in a firmsharing profits in the ratio of 3:2:1. TheirBalance sheet as on 31st March, 2015 was as follows. Ashok, Bhimand Cheta decide to share the future profits equally , w.e.f1st April, 2015. For this itwas agreed that: (a) Goodwillof the firmbe valued at ₹ 3,00,000. (b) Landbe revalued at ₹ 1,60,000 andbuilding be depreciated by 6%. (c) Creditors of ₹12,000 were not likelyto beclaimed andhecncebe writtenoff. Preapre RevalutionAccount, Partner' CapitalAccounts and Balance sheetof thereconsituted firm. |
Answer» Solution :![]() ![]() WORKING NOTES: 1. Calculate of SACRIFICE /(GAIN) of eachPartner: `{:(,,"Old Share (A)","New Share (B)","Scrifice/(Gain)(A-B)"),(,"Ashok",3//6,1//3,1//6"(Sarcifine)"),(,"Bhim",2//6,1//3,...),(,"CHETAN",1//6,1//3,-1//6"(Gain)"):}` Vaue of Goodwill = ₹ 3,00,000. Since, Chetanis gainingand Ashokis sacrifincing, Chetan willCompensate Ashok by paying₹ 50,000 (i.e., `1//6th ` of ₹ 3,00,000) |
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2583. |
Ashok, the Accountant of Best Barcode Systems Ltd., has shown bills Receivable as Trade Receivables. Is he correct in his approach? |
Answer» |
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2584. |
Asha, Deepa and Lata are partners in a firm sharing profits in the ratio of 3 : 2 : 1. Deepa retires. After making all adjustments relating to revaluation, goodwill and accumulated profit etc., the capital accounts of Asha and Lata showed a credit balance of Rs. 1,60,000 and Rs. 80,000 respectively. It was decided to adjust the capitals of Asha and Lata in their new profit sharing ratio. You are required to calculate the new capitals of the partners and record necessary journal entries for bringing in or withdrawal of the necessary amounts involved. |
Answer» Solution :a. Calculation of new capitals of the existinging PARTNERS Balance in Asha’s Capital (after all adjustments) =1,60,000 Balance in Lata’s Capital =80,000 Total Capital of the New Firm =2,40,000 Based on the new PROFIT sharing ratio of 3:1 Asha’s New Capital = Rs. 2,40,000` xx (3)/(4)`=1,80,000 Lata's New Capital = Rs. 2,40,000 `xx(1)/(4)` = 60,000 Note :The total capital of the new firm is based on the sum of the balance in the capital accounts of the continuing partners. b. Calculation of cash to be brought in or withdrawn by the continuing partners : `"AshaLata"` `"(Rs.)(Rs.)"` `"New Capital1,80,00060,000"` `"Existing Capitals1,60,00080,0000"` c. Cash to be brought in on (paid off)`"20,00020,000"` ![]() 3. When the amount payable to retiring partner will be contributed by continuing partners in such a WAY that their capitals are adjusted proportionate to their new profit sharing ratio: |
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2585. |
Ashish, Akash and Amitare partners sharing profits and losses equally .The Balance sheet as at 31st March, 2019 was as follows: The partnersdecided to share profitsin theratio of 2:2:1w.e.f1st April, 2019. They also decided that : (i) Value of stock to be reduced to ₹ 1,25,000. (ii) Value of machinery to be decreased by 10 %. (iii) Land and Building to be appreciated by ₹ 62,000. (iv) Provision for Doubtful Debts to be made @ 5 % on Sundry Debtors. (v) Aakash was to carryoutreconsitutionof thefirm at a remuneration of ₹10,000. Pass necessary Journal entries to give effect to the above. |
Answer» | |
2586. |
Asgar ,chaman and ddholu are partnersin a firmtheircapitalaccount stoodat Rs. 6,00,000Rs.5,00,000and Rs, 4,00,000respectivelyon 1st april,2017they shared profitand lossesin theproporationof 4:2:3partners areentitledto intereston capital@8%psrannumand salaryto chaman and dholu@ Rs, 7,000per month and Rs. 10,000perquarterespectivleyas pertheprovisionof thepartnershipDeed.dholu 'sshare of profit(excludinginterest on capitalbutincludingsalary )isguaranteedat aminimum ofRs. 1,00,000 p.a anydeficinecyarisingon thataccount shall be metbyasgar the profit for theended31stMarch 2018amountedto Rs, 4,24,000 Prepare profitand lossappropriation Accountfo theyearended 31st March ,2018 |
Answer» |
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2587. |
Aseem andNiharStarteda Business on 1stapril2018withcapitals of3.00.000 and Rs. 2.00.000respectively ,Accordingto thepartnership Deed,Niharis togetsalaryfoRs.5.000permonthAseemis toGet 10%commissiononProfitafterallowingsalary to niharand interestis to beallowedon capitals @ 6%p.a profit - sharingratio betweenthe twopartnersis 3:2 During theyear , thefirmearned netprofitof Rs. 2.50.000 Passjournal entriesfordivisionof profits and prepaneprofit and lossappropriationaccount . Thefirm l closes itsaccountson 31 st Marchevery year . |
Answer» ![]() |
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2588. |
Ashishand Aakashare partnerssharingprofitin theratio of 3:2theircapitalAccounts showeda creditBalanceof Rs. 5,00,000 and Rs. 6,00,000respectively as on 31st March,2019afterdebitof drawings during theyearof Rs, 1,50,000and Rs. 1,00,000respectivelyNet Profitfortheyearended31stMarch2019wasRs. 5,00,000intereston capitalis tobe allowed@ 10 % p.a Passthejournalentryfor intereston capitaland prepareprofitand LossapproproiationAccount . |
Answer» Cr. ASHISH 's capitalA/C by Rs. 65,000and aakash's Capital A/C by Rs. 70,000 2.shareof PROFIT: ashish-RS. 2,19,000 and Aakash -Rs. 1,46,0000 |
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2589. |
Asha and Nisha are partner's sharing profit in the ratio of 2:1. Asha's son Ashish was admitted for 1//4 share of which 1//8 was gifted by Asha to her son. Rs. 40,000. How much of the goodwill will be credited to the old partner's capital account. |
Answer» RS. 2,500 each |
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2590. |
As per Section 37 of the Indian Partnership Act, 1932, the executors would be entitled at their choice to the interest calculated from the date of death till the date of payment of the final amount due to the decreased partner at |
Answer» 6% p.a |
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2591. |
As per Section 37 of the Indian Partnership Act , 1932 , the executors would be entitled at their choice to the interest calculated from the date of death till the date of payment of the final amount due to the deceased partner at |
Answer» Solution :`6%` p.a. | |
2592. |
As per Receipt and Payment Account for the year ended on March 31, 2017, the subscriptions received were Rs. 2,50,000. Additional Information given is as follows: 1. Subscriptions Outstanding on 1.4.2016 Rs. 50,000 2. Subscriptions Outstanding on 31.3.2017 Rs.35,000 3. Subscriptions Received in Advance as on 1.4.2016 Rs.25,000 4. Subscriptions Received in Advance as on 31.3.2017 Rs.30,000 Ascertain the amount of income from subscriptions for the year 2016–17 and show how relevant items of subscriptions appear in opening and closing balance sheets. |
Answer» Solution :![]() Alternately, INCOME RECEIVED from SUBSCRIPTIONS can be calculated by preparing a Subscriptions account as under. Subscription Account ![]() Relevant items of subscription can be shown in the opening and closing balance SHEET as under: Balance Sheet as on March 31, 2014 ![]() |
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2593. |
As per SEBI Guidelines an amount equal to ........ Of the debenture issue must be transferred to Debenture Redemption Reserve before redemption begins. |
Answer» A - 0.25 |
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2594. |
As per SEBI Guidelines an amount equal to ………….. Of the debenture issue must be transferred to Debenture Redemption Reserve before redemption begins. |
Answer» 0.5 |
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2595. |
As per companies Act, the Balance Sheet of a company is required to presented in .......... |
Answer» Horizontal FORM |
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2596. |
Arun , Varun and Karan were partners in a firm sharing profits in the ratio of 4:3:3. On 31st March, their Balance Sheet was as follows: On 30th Septembe, 2014, Karan died. The Partnership Deep provided for the following to the executors of the deceased partner: (i) His share in the goodwill of the firm calculated on the basis of three years' purchase of the average profits of the last four years. The profits of the last four year were Rs 1,90,00, Rs 1,70,000, Rs 1,80,000 and Rs 1,60,000 respectively. (ii) His share in the profits of the firm till date of his death calculated on the basis of the average profits of the last four years. (iii) Interest @8% per annum on the credit balance, if any, in his Capital Account. (iv) Interest on his lone @12% per annum. Prepare Karan's Capital Account to be presented to his executors, assuming that his loan and interest on loan were transferred to his Capital Account. |
Answer» Solution :![]() 1. GOODWILL of the FIRM `=((Rs1,90,000+Rs1,70,000+Rs1,80,000+Rs1,60,000)/(4))xx3` Karan's Share of Goodwill `=Rs 5,25,000xx3//10=Rs1,57,500,` which is contributed by Arun and Varun in their gaining RATIO, i.e., `4:3.` Arun's contribution `=Rs1,57,500xx4//7=Rs90,000.` Varun's contribution `Rs1,57,500xx3//7=Rs67,500.` 2. CALCULATE of Share of Profit `=Rs1,75,000xx3//10xx6//12=Rs26,250.` 3. Calculate of interest on Lone `=Rs28,000xx12//100xx6//12=Rs1,680.` |
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2597. |
As per Accounting Standard -26, |
Answer» purchased goodwill is accounted in the BOOKS of ACCOUNT. |
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2598. |
As at March 31, 2015 the following balances have been extrated from the books of the Indian Chartered Accountants Recreation Club and you are asked to prepare (1) Trading Account for ascertaining gross profit derived from running resturant and dining room and (2) Income and Expenditure Account for the year ended March 31, 2017 (3) and a Balance Sheet as at that date. On March 31,2016 stock of restaurant consisted of Rs. 900 and Rs. 60 respectively. Provide depreciations Rs. 60 on fixtures and fittings, Rs. 390 on billiard table and Rs. 560 on furniture. |
Answer» |
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2599. |
ArushiLtd. issued 5,000, 10% debentures of Rs. 100 each at par but redeemable at a premium of 5% after 5 years. Give journal entries and also prepare the balance sheet of the company. |
Answer» SOLUTION :BOOKS of ARUSHI LTD. JOURNAL ![]() ![]() |
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2600. |
As per Accounting Standard 26 |
Answer» PURCHASED goowill is accounted in the BOOKS of account |
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