2955 + Interview Questions in Accounts in Class 12 Page 6 InterviewSolution

251.	Which areas , according to you are the weak areas of the firm ?
Answer» Solution :WEAK areas of the firm are : (i) Inventory Management , (ii) Inefficiency in COLLOECTION from DEBTORS , (iii) INEFFICIENT use of working Capital , andltbr. (IV) Inefficient use of surplus funds.

Discussion

252.	Which analysis is considered as static?
Answer» HORIZONTAL ANALYSIS VERTICAL Analysis Internal Analysis External Analysis Solution :Vertical Analysis

Discussion

253.	Which analysis is considered as static :
Answer» HORIZONTAL Analysis Vertical Analysis Internal Analysis External Analysis Answer :B

Discussion

254.	Which analysis is considered as static ?
Answer» HORIZONTAL ANALYSIS VERTICAL Analysis Internal Analysis External Analysis Solution :Vertical Analysis

Discussion

255.	Which analysis is considered asdynamic?
Answer» HORIZONTAL ANALYSIS Vertical Analysis Internal Analysis External Analysis Solution :Horizontal Analysis

Discussion

256.	Which analysis is considered as dynamic
Answer» HORIZONTAL ANALYSIS Vertical Analysis Internal Analysis External Analysis Solution :Horizontal Analysis

Discussion

257.	Which analysis is considered as dynamic :
Answer» HORIZONTAL Analysis Vertical Analysis Internal Analysis External Analysis Answer :A

Discussion

258.	Whichanalysis is based only on one year's data :
Answer» 1 - Cash FLOW Statement 2 - Dividend Analysis 3 - VERTICAL Analysis 4 - HORIZONTAL Analysis Answer :C

Discussion

259.	Which analysis depicts the relationship between two figures :
Answer» RATIO Analysis Trend Analysis Cumulative FIGURES and averages Dividend Analysis Answer :A

Discussion

260.	Which account shows the net result of revaluation of assets and reassessment of liabilities?
Answer» Solution :Revaluation Account SHOWS the net RESULT of revaluation of assets and reassessment of LIABILITIES.

Discussion

261.	Which account shows surplus or deficit in case of Not-for-Profit Organisation?
Answer» SOLUTION :INCOME and EXPENDITURE ACCOUNT.

Discussion

262.	Which account shall be debited for goods distributed as free samples?
Answer» SOLUTION :ADVERTISEMENT ACCOUNT

Discussion

263.	Where would you transfer the balance left in the share forfeited account after the reissue of such shares ?
Answer» SOLUTION :Balance LEFT in share forfeited ACCOUNT after the reissue of such shares represents a capital profit, which is TRANSFERRED to 'Capital RESERVE Account'.

Discussion

264.	Which account is debited for creating Provision for Doubtful Debts on Debtors?
Answer» SOLUTION : Profit and Loss Account is debited to create a Provision for DOUBTFUL Debts on DEBTORS

Discussion

265.	Where would you record 'inteerest on drawongs' when capital is fixed?
Answer» SOLUTION :It is deited to the CURRENT ACCOUNTS of PARTNERS.

Discussion

266.	Where it is agreed that a partner will be paid a lump sum amount for dissolution , if the payment is made by the firm , the payment is debited to
Answer» REALISATION ACCOUNT CONCERNED PARTNER's CAPITAL Account . All Partner's Capital Accounts. Solution :Concerned Partner's Capital Account .

Discussion

267.	Where is specific donation received shown to the final accounts of a Not-for-Profit Organisation ?
Answer» SOLUTION :N/a

Discussion

268.	Where will you record interest on drawing :
Answer» Debit SIDE of Profit & Loss APPROPRIATION Account CREDIT Side of Profit & Loss Appropriation Account Credit Side of Profit & LossAccount Debit Side of Profit & Loss Account Answer :A::B::C::D

Discussion

269.	Where will you show purchase of Goodwill in a Cash Flow Statement ?
Answer» CASH FLOW from Operating Activities Cash Flow from Investing Activities Cash flow from FINANCING Actvities Cash Equivalent ANSWER :B

Discussion

270.	Where is general donation received shown is the final accounts of a Not-for-Profit Organisation ?
Answer» SOLUTION :N/a

Discussion

271.	Where is 'Calls-in-Advance' shown in the Balance Sheet?
Answer» SOLUTION :It will be SHOWN as Other CURRENT LIABILITY.

Discussion

272.	Where is 'Debenture Redemption Reserve' transferred after the redemption of all debentures?
Answer» CAPITAL RESERVE Account General Reserve Account STATEMENT of Profit and Loss SINKING Funds Account Answer :B

Discussion

273.	When there is change in the profit sharing ratio amongst existing partners, does it require adjustment for goodwill?
Answer» Solution :YES. Because the gaining partner will be acquiring a PART of future profits which otherwise would belong to the SACRIFICING partner. Hence, the gaining partner must compensatethe sacrificing partner by paying the PROPORTIONATE amount of goodwill.

Discussion

274.	(When Trade Investments are Given) . Calculate capital employed by the above two approaches with the help of following Balance Sheet:
Answer» Solution :Capital EMPLOYED `{:("(i)Capital Employed by Liabilities SIDE Approach:",,),("Partners' Capitals:" ,"Rs.","Rs."),("Aman","1,00,000",),("Bhaskar",ul("1,00,000"),"2,00,000"),("Add: Reserves",,ul(" 90,000")),(,,"2,90,000"),("Less: FICTITIOUS ASSET (Advertisement Suspense)","10,000",),("Goodwill",ul("30,000"),ul(" 40,000")),("Capital Employed",,ulul("2,50,000")):}` `{:("(ii)Asset Side Approach:","Rs.","Rs."),("All Assets (Total of Assets Side)" ,,"3,90,000"),("Less: Ficitious Assets (Advertisement Suspense)","10,000",),("Goodwill","30,000",),("Sundry Creditors","90,000",),("Outstanding Expenses",ul("10,000"),ul("1,40,000")),("Capital Employed",,ulul("2,50,000")):}` Whilw calculating Capital Employed, Trade Investments are TAKEN as part of capital employed whereas Non-trade Investments are not.

Discussion

275.	When the Receipts and Payments Account is converted into an Income and Expenditure Account, an accouting concept is to be followed for the provisions of the Accruals and Outstanding. Name the concept that is followed.
Answer» SOLUTION :ACCRUAL CONCEPT of ACCOUNTING' is to be FOLLOWED.

Discussion

276.	When there is change in profit sharing ratio amongst existing partners, should the assets and liabilities be revalued?
Answer» SOLUTION :Yes. Because the profit or loss on revaluation should by CREDITED or debited to the ACCOUNTS of the PARTNERS in their old profit sharing ratio.

Discussion

277.	When the incoming partner brings in his share of premium for goodwill in cash, it is adjusted by crediting to
Answer» INCOMING Partner's Capital Account. Premium for GOODWILL Account. Sacrificing Partners' Capital ACCOUNTS. None of the above. Solution :Sacrificing Partners' Capital Accounts.

Discussion

278.	When the partners' capitals are fixed, where will the drawings made by a partner be recorded?
Answer» SOLUTION :When the partners' capitals are fixed, DRAWINGS MADE by a partner will be debited to the Partner's CURRENT Account.

Discussion

279.	When the firm has agreed to pay the partner a fixed amount for realisation work irrespective of the actualamount spent, such fixed amount is debited to (Realisation/Capital) Account andCredited to (Capital/Bank) Account.
Answer» ANSWER :A::C

Discussion

280.	When Revaluation Account is opened and the balance sheet is preparedafter the new partnership agreement the assets and liabilites are recorded at
Answer» HISTORICAL cost. Current cost. Realisable value REVALUATION AMOUNTS. Solution :Revaluation amounts.

Discussion

281.	When shares are forfeited, share Capital Account is debited with
Answer» NOMINAL VALUE of SHARES called-up value of shares paid-up value of shares market value of shares Solution :called-up value of shares

Discussion

282.	When shares are forfeited , share Capital Account is debited with
Answer» NOMINAL VALUE of SHARES. CALLED- up value of shares. paid - up value of shares. market value of shares. Solution :called- up value of shares.

Discussion

283.	When Revaluation Account is opened and the balance sheet is prepared after the new partnership agreement, the assets and liabilitiles are recorded at
Answer» HISTORICAL cost Current cost Realisable value REVALUED AMOUNTS Solution :Revalued amounts

Discussion

284.	When realisation expenses are paid by the firm on behalf of a partner, such expenses are debited to:
Answer» Realisation ACCOUNT Partner’s CAPITAL Account Partner’s LOAN Account None of the above. Answer :D

Discussion

285.	(When Non-trade Investments are Given). Calculate capital employed by Liabilities Side Approachand Assets Side Approach from the following Balance Sheet:
Answer» Solution :Capital Employed `{:("(i)Liabilities Side Approach:",,),("PARTNERS' Capitals" ,"Rs.","Rs."),("Amrit","2,00,000",),("Sudhir",UL("2,00,000"),"4,00,000"),("Add: Reserves",,ul("1,80,000")),(,,"5,80,000"),("Less: Investments (Non-trade)","1,00,000",),("FICTITIOUS Assets-Deferred Revenue Expenditure"," 20,000",),("(Advertisement Suspense)",,),("Goodwill",ul("60,000"),ul("1,80,000")),("Capital Employed",,ulul("4,00,000")):}` `{:("(II)Asset Side Approach:","Rs.","Rs."),("Total Assets" ,,"7,80,000"),("Less: Ficitious Assets-Deferred Revenue Expenditure ",,),("(Advertisement Suspense) "," 20,000",),("Goodwill"," 60,000",),("Investments (Non-trade)","1,00,000",),("Sundry CREDITORS","1,80,000",),("Outstanding Expenses",ul(" 20,000"),ul("3,80,000")),("Capital Employed",,ulul("4,00,000")):}`

Discussion

286.	When is interest received considered as financing activity?
Answer» SOLUTION :INTEREST received on Calls-in-Arrears by a COMPANY is considered as financing ACTIVITY.

Discussion

287.	When is an asset shown as 'Current Asset' and when as 'Non-current Asset'?
Answer» SOLUTION :An asset is shown as 'current asset' when it SATISFIES any of the following four criterias: •It is expected to be realised or is intended for sale or consumption in the COMPANY's normal operating cycle. •It is held primarily for the PURPOSE of being traded. •It is expected to be realised within 12 months from the REPORTING date. •It is Cash and Cash Equivalents unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date. All other assets are shown as 'Non-current Assets'.

Discussion

288.	When is a receivable classified as 'Trade Receivables?
Answer» Solution :An amount receivable for sale of GOODS and/or services rendered in the normal course of business is classified or SHOWN as TRADE RECEIVABLES.

Discussion

289.	When is a payable classified as 'Trade Payable'?
Answer» Solution :Trade amount payable against PURCHASE of goods and/or services TAKEN in the NORMAL course of BUSINESS is classified as Trade Payable.

Discussion

290.	When is a liability shown as 'Current Liability' and when as 'Non-current Liability'?
Answer» SOLUTION :A liability is shown as 'current liability' when it SATISFIES any of the following four criterias: • It is expected to be settled in the company's normal operating cycle. • It is HELD primarily for the purpose of being traded. • It is due to be settled within 12 months from the reporting date. • The company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. All other LIABILITIES are shown as 'Non-current Liabilities'.

Discussion

291.	When guarantee is given to a partner by the other partners, deficiency on such guarantee will be borne by
Answer» All of the other PARTNERS. Partnership firm. Partners who GAVE the GUARANTEE. NONE of these. Solution :Partners who gave the guarantee.

Discussion

292.	When Goodwill is not -purchased, Goodwill can
Answer» not be ACCOUNTED in the BOOKS be accounted in the books be PARTIALLY accounted in the books be accounted as PER the AGREEMENT of the partners Solution :not be accounted in the books

Discussion

293.	When Goodwill is not purchased, Goodwill can
Answer» not be ACCOUNTED in the BOOKS. be accounted in the books. be PARTIALLY accounted in the books. beaccounted as PER the AGREEMENT of the partners. Solution :not be accounted in the books.

Discussion

294.	When Goodwill is not purchased goodwill account can :
Answer» NEVER be raised in the books Be raised in the books Be partially raised in the books Be raised as per the agreement of the PARTNERS ANSWER :A

Discussion

295.	When does the Flow of Cash take place?
Answer» Solution :FLOW of CASH takes place when the net effect of transaction is increased or DECREASED in the amount of Cash and Cash EQUIVALENTS.

Discussion

296.	When debentures of .Rs 1,00, 000 are issued as Collateral Security against a loan of .Rs 1,50,00 , the entryfor issue of debentures will be:
Answer» Credit Cebentures .RS 1,50,000 and debit bank A/C.Rs 1,50,000 Debit Debenture SUSPENSE A/c .Rs 1,00,000 and Credit Bank A/c .Rs1,00,000 Debit debenture Suspense A/c .Rs 1,00,000 and CreditDebentures A/c .Rs 1,00,000 Debit Cash A/c .Rs 1,50,000 and Credit Bank A/c .Rs 1,50,000 Answer :C

Discussion

297.	When debentures are to be redeemed at premium an extra entry has to be made at thetime of issue of debentures, which a/c should be credited in this entry ?
Answer» LOSS on issue of DEBENTURES a/c Debentures redemption premium a/c Bank a/c Debenture holder's a/c Answer :B

Discussion

298.	When debentures are issued at a discount , the discount is written off
Answer» after DEBENTURES have been redeemed. in the YEAR when debentures are ISSUED. during the LIFE of the debentures. None of these. Solution :in the year when debentures are issued.

Discussion

299.	When debentures are issued at a discount, the discount is written off
Answer» after DEBENTURES have been redeemed in the YEAR when debentures are ISSUED during the LIFE of the debentures None of these Solution :in the year when debentures are issued

Discussion

300.	When creditor accepts an asset whose value is more than the amount due to him, hewill —— (pay/not pay) the excess amount which will be credited —— Account.
Answer» ANSWER :A

Discussion

Explore topic-wise InterviewSolutions in .

Which areas , according to you are the weak areas of the firm ?

Which analysis is considered as static?

Which analysis is considered as static :

Which analysis is considered as static ?

Which analysis is considered asdynamic?

Which analysis is considered as dynamic

Which analysis is considered as dynamic :

Whichanalysis is based only on one year's data :

Which analysis depicts the relationship between two figures :

Which account shows the net result of revaluation of assets and reassessment of liabilities?

Which account shows surplus or deficit in case of Not-for-Profit Organisation?

Which account shall be debited for goods distributed as free samples?

Where would you transfer the balance left in the share forfeited account after the reissue of such shares ?

Which account is debited for creating Provision for Doubtful Debts on Debtors?

Where would you record 'inteerest on drawongs' when capital is fixed?

Where it is agreed that a partner will be paid a lump sum amount for dissolution , if the payment is made by the firm , the payment is debited to

Where is specific donation received shown to the final accounts of a Not-for-Profit Organisation ?

Where will you record interest on drawing :

Where will you show purchase of Goodwill in a Cash Flow Statement ?

Where is general donation received shown is the final accounts of a Not-for-Profit Organisation ?

Where is 'Calls-in-Advance' shown in the Balance Sheet?

Where is 'Debenture Redemption Reserve' transferred after the redemption of all debentures?

When there is change in the profit sharing ratio amongst existing partners, does it require adjustment for goodwill?

(When Trade Investments are Given) . Calculate capital employed by the above two approaches with the help of following Balance Sheet:

When the Receipts and Payments Account is converted into an Income and Expenditure Account, an accouting concept is to be followed for the provisions of the Accruals and Outstanding. Name the concept that is followed.

When there is change in profit sharing ratio amongst existing partners, should the assets and liabilities be revalued?

When the incoming partner brings in his share of premium for goodwill in cash, it is adjusted by crediting to

When the partners' capitals are fixed, where will the drawings made by a partner be recorded?

When the firm has agreed to pay the partner a fixed amount for realisation work irrespective of the actualamount spent, such fixed amount is debited to (Realisation/Capital) Account andCredited to (Capital/Bank) Account.

When Revaluation Account is opened and the balance sheet is preparedafter the new partnership agreement the assets and liabilites are recorded at

When shares are forfeited, share Capital Account is debited with

When shares are forfeited , share Capital Account is debited with

When Revaluation Account is opened and the balance sheet is prepared after the new partnership agreement, the assets and liabilitiles are recorded at

When realisation expenses are paid by the firm on behalf of a partner, such expenses are debited to:

(When Non-trade Investments are Given). Calculate capital employed by Liabilities Side Approachand Assets Side Approach from the following Balance Sheet:

When is interest received considered as financing activity?

When is an asset shown as 'Current Asset' and when as 'Non-current Asset'?

When is a receivable classified as 'Trade Receivables?

When is a payable classified as 'Trade Payable'?

When is a liability shown as 'Current Liability' and when as 'Non-current Liability'?

When guarantee is given to a partner by the other partners, deficiency on such guarantee will be borne by

When Goodwill is not -purchased, Goodwill can

When Goodwill is not purchased, Goodwill can

When Goodwill is not purchased goodwill account can :

When does the Flow of Cash take place?

When debentures of .Rs 1,00, 000 are issued as Collateral Security against a loan of .Rs 1,50,00 , the entryfor issue of debentures will be:

When debentures are to be redeemed at premium an extra entry has to be made at thetime of issue of debentures, which a/c should be credited in this entry ?

When debentures are issued at a discount , the discount is written off

When debentures are issued at a discount, the discount is written off

When creditor accepts an asset whose value is more than the amount due to him, hewill —— (pay/not pay) the excess amount which will be credited —— Account.