Explore topic-wise InterviewSolutions in Current Affairs.

At the time of admission of a new partner, general reserve appearing in the old balance sheet is transferred to Old partner’s capital account

Correct option is a) Ratio of sacrifice

a) Ratio of sacrifice 

a. Both A and R are correct and R is the correct explanation of A. 

c) Assertion (A) is true and Reason (R) is false. 

a) Both Assertion (A) and Reason (R) are true. 

Cash System of Accounting

Correct option is a. Both A and R are correct and R is the correct explanation of A.

c) Assertion (A) is true and Reason (R) is false. 

d) Assertion (A) is false and Reason (R) is true.

Correct option is d) Assertion (A) is false and Reason (R) is true.

Account based marketing (ABM) is a business marketing strategy that concentrates resources on a set of target accounts within a market. It uses personalized campaigns designed to engage each account, basing the marketing message on the specific attributes and needs of the account.

(b) Sacrificing ratio

(a) Rs. 65,000

(a) The old partners

(a) An asset

(d) Rs. 64,000

(a) Current Ratio = (current Assets)/(Current Liabilities)

Current Assets = Cash + Debtor + Stock

= 18,000 + 1,42,000 + 1,80,000 

= Rs. 3,40,000 

Current liabilities = Bills payable + Creditors + Outstanding expenses 

= 27,000 + 1,20,000 + 15,000 + 5,000 

= Rs. 1,67,000

(b) Liquid ratio = (Liquid Assets)/(Current Liabilities) 

Liquid Assets = Current Assets – Closing stock 

= 3,00,000 – 1,80,000 

= Rs. 1,60,000 

∴ Liquid ratio = 160000/167000 

= 96 : 1

According to Kolher, “Single entry system is a system of book-keeping in which as a rule, only records of cash and personal accounts are maintained. It is always incomplete double entry system varying with circumstances”.

In Tally, to record transactions, the transactions are to be identified with the related ledger accounts. In tally ERP.9, there are two types of pre-defined ledgers.

(i) Cash: Under the group cash in hand, this ledger is created. You can enter the opening balance as on the books beginning from.

(ii) Profit and loss account: 

This ledger is created under the group primary. In this ledger, previous year’s profit or loss is entered as the opening balance of this ledger.

To create ledger, 

Gateway of Tally → Masters → Accounts Info → Ledgers → Single Ledger → Create.

(c) Both (i) and (ii)

(d) Account info

(c) It is suitable for all types of organisations

(i) Nature: 

It is an unscientific and unsystematic way of recording transactions. Accounting principles and accounting standards are not followed properly. 

(ii) Lack of uniformity: 

There is no uniformity in recording the transactions among different organizations. Different organizations record their transactions according to their needs and conveniences.

The correct answer is : (c) Capital

(a) Contra voucher 

Answer: (a) Capital

(b) Withdrawal of cash from bank for office use

(b) (i) and (iv) 

(i) Gross profit ratio = (Gross Profit)/(Revenue from operations) x 100

= 4,000/20,000 x 100

= 20%

Calculation of interest on drawings of Praveen (using average period) 

Cost of revenue from operations = Purchase of stock-in-trade - Changes in inventory + Direct expenses

 = 17,000 – 1,000 + 0 

= Rs. 16,000 

Gross profit = Revenue from operations – Cost of revenue from operations 

= 20,000 – 16,000 

= Rs. 4,000

(ii) Net profit ratio = (Net profit after tax )/(Revenue from operations) x 100

 = 1,500/20,000 x 100

= 7.5%

Tutorial note: 

It is assumed that there is no tax payable.

(iii) Operating cost ratio = (Operating Cost)/(Revenue from operations) x 100

= 18,400/20,000 x 100

= 92%

Operating cost = Cost of revenue from operations + Operating expenses 

Operating expenses = Other expenses = Rs. 2,400 

Operating cost = 16,000 + 2,400 

= Rs. 18,400

(iv) Operating profit ratio = (Operating profit)/(Revenue from operations) x 100

= 1,600/20,000 x 100

= 8%

Operating profit = Revenue from operations – Operating cost 

= 20,000 – 18,400 

= Rs. 1,600

(a) i – 1 

(b) ii – 4 

(c) iii – 3 

(d) iv – 2

C. Net concept 

D. Net working Capital

(b) Working capital

Eligible assessee - A senior citizen (a resident individual who is of the age of 60 years or more at any time during the relevant previous year), whose gross total income includes income by way of interest on deposits with.

a) banking company to which banking Regulation Act. 1949 applies 

b) co-operative society engaged in carrying on the business of banking(including a co-operative and mortgage bank or a Cooperative and development bank 

C) a Post Office.

All Assesse are allowed to claim deduction u/s 80G.

All Assessee are allowed to claim deduction u/s 80G.

Output costing is also known as Single Costing.

D. Operating profit

A. An external source of funds 

The responsibility to deduct tax from salaries arises only at the time of payment.

B. Added back to net profit to find funds from operation 

When job is completed, 'Job Completion Report' is sent to the costing department for ascertaining the profits or losses occurred on the job.

“The finished output of the last process is transferred to the finished goods account”. the given statement is true.

1. Debited

Each process is Debited with material cost, labour cost, direct expenses and overheads allocated or apportioned to the process.

For each process a separate process account is created and all the Expenses pertaining to a process is charged to that process account.

Correct answer is

3. RS 1,600

Profit or loss made on the contract is transferred to the Profit and Loss account.

Profit or loss made on the contract is transferred to the profit and Loss account.