100525 + Interview Questions in GENERAL QA IN GENERAL AWARENESS

1.	Find out correct answers from the box given below the table.
Answer» a. Budget b. Expenditure = Revenue c. Surplus Budget d. Expenditure Revenue e. Deficit Budget

1.

Find out correct answers from the box given below the table.

Answer»

a. Budget

b. Expenditure = Revenue

c. Surplus Budget

d. Expenditure Revenue

e. Deficit Budget

Discussion

2.	Prepare a note by analyzing the major items of the central govt.Items — ExpenditureInterest and repayments — 456145Defense — 246727Subsidies — 243811Grants to state and union territories — 108552Pension — 88521Police — 51791Social service — 29143Economic service — 28984Grants to foreign govt — 4342Other public services — 30936
Answer» The largest amount is spent on interest and repayment. The least amount is spent on grants to foreign government. The expenditure on welfare schemes and defense is more or less same. Rs. 29143 crores, Rs 28984 crores and Rs 30936 crores are allotted social economic service and to public services respectively.

Discussion

3.	Compare developmental expenditure and non-developmental expenditure.
Answer» Write and explains developmental expenditure and non-developmental expenditure.

Discussion

4.

Describe the features of direct tax and indirect tax.

Answer»

Taxes are the main source of income of the government. The amount to be compulsorily paid by the public to the government is called tax.

There are two types of taxes. Direct tax and indirect tax.

Direct tax	Indirect tax
Tax is paid by the person on whom it is imposed.	Tax is imposed on one person and paid by another.
Tax burden is felt by the tax payer	Tax burden is not felt by the tax payer
Comparatively low expenditure is incurred for tax collection.	Comparatively high expenditure is incurred for tax collection.

Discussion

5.	Discuss how these factors lead to an increase in public expenditure and make inferences.
Answer» Government undertakes welfare activities in the form of education, health, infrastructure, food, urbanization which leads to increase in public expenditure automatically. Natural calamities makes more expenditures and unemployment also rise the expenditure that is to control unemployment and to attain economic, development industrialization must be encouraged. Thus starting new industries and protecting industries increase Public expenditure.

Discussion

6.	Complete the world wheel. increase in population.
Answer» Increase in Import Developmental activities Increased Defense expenditure Social Welfare Activities.

Discussion

7.	What are the goals of the fiscal policy ?
Answer» Attain economic stability Create employment opportunities Control unnecessary expenditure Increase the aggregate output of the economy Keep prices and wages stable Used to curtail inflation, increase aggregate demand and other macroeconomic issues

Discussion

8.	Compare developmental and non -developmental expenditure and give examples for each.
Answer» Public expenditure can be classified into developmental and non developmental expenditure. Any expenditure that creates assets for the future is called developmental expenditure. Examples :- construction of roads, bridges, and harbors, setting up of educational institutions, starting up new enterprises etc. Expenditures that does not create any assets are called non-developmental expenditure. Examples :- expenditure incurred by way of war. interest, pension etc.

8.

Compare developmental and non -developmental expenditure and give examples for each.

Answer»

Public expenditure can be classified into developmental and non developmental expenditure. Any expenditure that creates assets for the future is called developmental expenditure.

Examples :- construction of roads, bridges, and harbors, setting up of educational institutions, starting up new enterprises etc.

Expenditures that does not create any assets are called non-developmental expenditure.

Examples :- expenditure incurred by way of war. interest, pension etc.

Discussion

9.	How do public expenditure, public income and public debt benefit a country? Discuss.
Answer» Public expenditure is the governmental expenditure for social welfare. Public expenditure is very important for the development of a country. Under Govt taken various initiation on welfare activities public expenditure increases. To meet this expenditure govt mobilizes income from various sources. This income is called public revenue. It includes both tax revenue and non tax revenue. In a developing and under developed nation budget will be deficit budget became they have to undertake various developmental activities.

9.

How do public expenditure, public income and public debt benefit a country? Discuss.

Answer»

Public expenditure is the governmental expenditure for social welfare. Public expenditure is very important for the development of a country. Under Govt taken various initiation on welfare activities public expenditure increases. To meet this expenditure govt mobilizes income from various sources.

This income is called public revenue. It includes both tax revenue and non tax revenue. In a developing and under developed nation budget will be deficit budget became they have to undertake various developmental activities.

Discussion

10.	Discuss the management of public debt
Answer» The objectives of public debt management are to ensure that the government’s financing needs and settling of obligations meet the medium term objective of low borrowing costs, prudent risk exposure and promotes an active domestic debt market. Public debt is composed of both external and domestic debt. External debt: This is made up of three categories of creditors; Bilateral, Multilaterals and commercials. DOMESTIC DEBT Domestic debt is comprised of treasury bills, treasury bonds, Government bonds, corporate loans. For the short and medium term instruments (T-bills and T-Bonds) which are domestically traded, the issuance is done at the central bank’s level on a weekly basis in line with MINECOFIN recommendations; after the market auctions, statistics are sent to MINECOFIN for recording, payment and reporting. Domestic debt is made of T-Bills, T-Bonds, Government bonds and Corporate Loan. T-Bills: These are short term Government securities having 4, 13, 26 and 52 weeks maturity period. These are issued by the National Bank of Rwanda (NBR) on behalf of the National Treasury and can be issued to individuals, banks and other institutions. T-BONDS: These are medium-term Government securities issued by the National Bank of Rwanda (BNR) on behalf of the Treasury for the capital market development purpose. GOVERNMENT BONDS: This category comprises the old development bonds which were not restructured, bonds issued at the time of acquiring government buildings and some other liabilities from debt guarantee. All these categories of Government Bonds were not restructured (rationalized) and are still under the negotiation process to be repaid. CORPORATE LOANS: This category of debt includes the old treasury development bonds issued before 1994 and purchased by commercial banks. These loans were restructured into new bonds and have been repaid since 1998 for the commercial banks, and 1999 for other creditors respectively. These were restructured (rationalized) into new Bonds after 1994 and are being paid up to date.

10.

Discuss the management of public debt

Answer»

The objectives of public debt management are to ensure that the government’s financing needs and settling of obligations meet the medium term objective of low borrowing costs, prudent risk exposure and promotes an active domestic debt market.

Public debt is composed of both external and domestic debt.

External debt: This is made up of three categories of creditors; Bilateral, Multilaterals and commercials.

DOMESTIC DEBT

Domestic debt is comprised of treasury bills, treasury bonds, Government bonds, corporate loans.

For the short and medium term instruments (T-bills and T-Bonds) which are domestically traded, the issuance is done at the central bank’s level on a weekly basis in line with MINECOFIN recommendations; after the market auctions, statistics are sent to MINECOFIN for recording, payment and reporting.

Domestic debt is made of T-Bills, T-Bonds, Government bonds and Corporate Loan.

T-Bills: These are short term Government securities having 4, 13, 26 and 52 weeks maturity period. These are issued by the National Bank of Rwanda (NBR) on behalf of the National Treasury and can be issued to individuals, banks and other institutions.

T-BONDS: These are medium-term Government securities issued by the National Bank of Rwanda (BNR) on behalf of the Treasury for the capital market development purpose.

GOVERNMENT BONDS: This category comprises the old development bonds which were not restructured, bonds issued at the time of acquiring government buildings and some other liabilities from debt guarantee. All these categories of Government Bonds were not restructured (rationalized) and are still under the negotiation process to be repaid.

CORPORATE LOANS: This category of debt includes the old treasury development bonds issued before 1994 and purchased by commercial banks. These loans were restructured into new bonds and have been repaid since 1998 for the commercial banks, and 1999 for other creditors respectively. These were restructured (rationalized) into new Bonds after 1994 and are being paid up to date.

Discussion

11.	What are the implications of revenue deficit? State two measures to reduce this deficit.
Answer» Revenue deficit indicates the inability of the government to meet the expenditure on routine functioning of the economy. It implies that revenue deficit either leads to an increase in liability in the form of borrowings or reduces the assets through disinvestments. Higher borrowings will increase the future burden to repay the loan amount and interest payments. Two measures to reduce this deficit are: (a) Reduction of wasteful public expenditure like subsidies and curtailing non-plan expenditure. (b) Increase revenue by increasing the tax rate and imposing new taxes. Tax evasion should be controlled.

11.

What are the implications of revenue deficit? State two measures to reduce this deficit.

Answer»

Revenue deficit indicates the inability of the government to meet the expenditure on routine functioning of the economy. It implies that revenue deficit either leads to an increase in liability in the form of borrowings or reduces the assets through disinvestments. Higher borrowings will increase the future burden to repay the loan amount and interest payments.

Two measures to reduce this deficit are:

(a) Reduction of wasteful public expenditure like subsidies and curtailing non-plan expenditure.

(b) Increase revenue by increasing the tax rate and imposing new taxes. Tax evasion should be controlled.

Discussion

12.	What is revenue deficit? What are its implications?
Answer» Revenue deficit is the excess of government’s total revenue expenditure over the total revenue receipts. The deficit is to be covered through borrowings,disinvestment,etc. The borrowing in turn leads to the payment of interest and repayment of loans in future which may mean more deficit in future.

12.

What is revenue deficit? What are its implications?

Answer»

Revenue deficit is the excess of government’s total revenue expenditure over the total revenue receipts.

The deficit is to be covered through borrowings,disinvestment,etc. The borrowing in turn leads to the payment of interest and repayment of loans in future which may mean more deficit in future.

Discussion

13.	Give meaning of capital expenditure and revenue expenditure in a government budget and an example of each.
Answer» Give meaning of capital expenditure and revenue expenditure in a government budget and an example of each. Eg – construction,repayment of loan,etc. Revenue expenditure is the expenditure by government that neither creates an asset nor reduces a liability. Eg – interest payment,subsidy,etc.

13.

Give meaning of capital expenditure and revenue expenditure in a government budget and an example of each.

Answer»

Give meaning of capital expenditure and revenue expenditure in a government budget and an example of each.

Eg – construction,repayment of loan,etc.

Revenue expenditure is the expenditure by government that neither creates an asset nor reduces a liability.

Eg – interest payment,subsidy,etc.

Discussion

14.	Define government budget.
Answer» Government budget is a statement of expected receipts and expenditures during a given year.

Discussion

15.	Explain the precautions that should be taken while estimating national Income by expenditure method.
Answer» While using expenditure method, the following precautions are required to be taken: (i) Only final expenditure is to be taken into account to avoid error of double counting. (ii) Expenditure on second hand goods is not to be included because value of second goods has already been accounted for during the year of their production. (iii) Expenditure on shares and bonds is not to be included in total expenditure as these are mere paper claims. (iv) Expenditure on transfer payments by the government is not to be included. (v) Imputed value of expenditure on goods produced for self-consumption should be taken into account.

15.

Explain the precautions that should be taken while estimating national Income by expenditure method.

Answer»

While using expenditure method, the following precautions are required to be taken:

(i) Only final expenditure is to be taken into account to avoid error of double counting.

(ii) Expenditure on second hand goods is not to be included because value of second goods has already been accounted for during the year of their production.

(iii) Expenditure on shares and bonds is not to be included in total expenditure as these are mere paper claims.

(iv) Expenditure on transfer payments by the government is not to be included.

(v) Imputed value of expenditure on goods produced for self-consumption should be taken into account.

Discussion

16.	Differentiate between durable and non-durable goods.
Answer» Durable goods are those goods, which can be put to repeated use whereas non-durable are those goods that can be used only once. Durable goods have long life. Examples of durable goods are TV set, furniture, car etc. Non-durable goods have very short life. Vegetables, fruits, milk etc are the examples of non-durable goods.

Discussion

17.	Explain with the help of an example ,the basis of classifying goods into final goods and intermediate of goods.
Answer» The basis of classification is the end –use of the product. Goods which are used by the producers in the process of production such as raw material or goods purchased for resale are known as intermediate goods, eg. shirt purchased by a firm for resale. These goods are still within the production boundary. Goods which are outside the boundary line of production and are ready for use by their final users are called final goods, eg. shirt purchased by a consumer.

17.

Explain with the help of an example ,the basis of classifying goods into final goods and intermediate of goods.

Answer»

The basis of classification is the end –use of the product. Goods which are used by the producers in the process of production such as raw material or goods purchased for resale are known as intermediate goods, eg. shirt purchased by a firm for resale. These goods are still within the production boundary.

Goods which are outside the boundary line of production and are ready for use by their final users are called final goods, eg. shirt purchased by a consumer.

Discussion

18.	Distinguish between labour-intensive and capital-intensive technology of production.
Answer» Labour intensive technology of production refers to the technique in which more labour per unit of output is used. On the other hand, capital-intensive technology uses more capital per unit of output.

Discussion

19.	Although water is useful but it is cheap, on the contrary a diamond is not much of use but is very expensive. Give an economic reason for this paradox.
Answer» Water is available in plenty whereas diamond is scarce. Therefore, water commands no price but diamond is very expensive.

Discussion

20.	Define equilibrium point.
Answer» The point where demand is equal to supply is called the equilibrium point.

Discussion

21.	How do you find out whether a particular expenditure is on intermediate goods or final goods?
Answer» If the expenditure on a product is meant for further production of goods and services or for resale, then it is the expenditure on intermediate goods. But if the expenditure on a particular good is for private consumption or investment, then it is the expenditure on final good.

Discussion

22.	An employess approches his emplyer for a loan of Rs. 3,00,000 for the higher education fo his son . The employer agrees to provide interest free loan . What will be the treatment of interest in calculation of national income ?
Answer» Interest on such will be included in the national income as it is a part of compensation of employees .

Discussion

23.	Due to increase in the family members ,harish wants to add one more floor to his old house .How will treast the value of new floor while estimating national income .
Answer» The value of the floor will be included in the national as construction of an additional floor is a part of gross domestic capital formation .

Discussion

24.	Name any one step the Government can take through its budget to reduce the gap between the rich and the poor .
Answer» Government can reduce the gap between the rich and the poor by imposing taxes on the rich and spending more on the welfare of he poor.

Discussion

25.	A, B and C are partners sharing profits and losses in the ratio of 5 : 4 : 1. Calculate new profit-sharing ratio, sacrificing ratio and gaining ratio in each of the following cases:1) i-c, ii-a, iii-d, iv-b 2) i-a, ii-b, iii-c, iv-d 3) i-b, ii-c, iii-a, iv-d 4) i-d, ii-a, iii-b, iv-c
Answer» Correct option is 1) i-c, ii-a, iii-d, iv-b

25.

A, B and C are partners sharing profits and losses in the ratio of 5 : 4 : 1. Calculate new profit-sharing ratio, sacrificing ratio and gaining ratio in each of the following cases:1) i-c, ii-a, iii-d, iv-b 2) i-a, ii-b, iii-c, iv-d 3) i-b, ii-c, iii-a, iv-d 4) i-d, ii-a, iii-b, iv-c

Answer»

Correct option is

1) i-c, ii-a, iii-d, iv-b

Discussion

26.	The state of physical, emotional, and psychological exhaustion is known as_____.
Answer» The answer is: Burnout

Discussion

27.	A, B and C are partners sharing profits and losses in the ratio of 5 : 4 : 1. they decided to change their future profit-sharing ratio and agreed upon C acquiring 1/10th share of A and 1/2 share of B.Answer the following questions:i. Calculate C’s gain (a) 7/20 (b) 5/20 (c) 1/20 (d) 4/20ii. Calculate A’s sacrifice (a) 7/20 (b) 5/20 (c) 1/20 (d) 4/20iii. Calculate B’s sacrifice (a) 7/20 (b) 5/20 (c) 1/20 (d) 4/20iv. Calculate New Profit Sharing Ratio (a) 7:4:9 (b) 4:9:7 (c) 4:7:9 (d) 9:4:7
Answer» i. (b) 5/20 ii. (c) 1/20 iii. (d) 4/20 iv. (d) 9:4:7

27.

A, B and C are partners sharing profits and losses in the ratio of 5 : 4 : 1. they decided to change their future profit-sharing ratio and agreed upon C acquiring 1/10th share of A and 1/2 share of B.Answer the following questions:i. Calculate C’s gain (a) 7/20 (b) 5/20 (c) 1/20 (d) 4/20ii. Calculate A’s sacrifice (a) 7/20 (b) 5/20 (c) 1/20 (d) 4/20iii. Calculate B’s sacrifice (a) 7/20 (b) 5/20 (c) 1/20 (d) 4/20iv. Calculate New Profit Sharing Ratio (a) 7:4:9 (b) 4:9:7 (c) 4:7:9 (d) 9:4:7

Answer»

i. (b) 5/20

ii. (c) 1/20

iii. (d) 4/20

iv. (d) 9:4:7

Discussion

28.	Which of the following is true of depression? a. It affects men more frequently than women. b. It is a component of Dissociative Identity Disorder. c. It is caused by low activity of serotonin. d. It is more prevalent among the wealthy than the poor.
Answer» (c) It is caused by low activity of serotonin

Discussion

29.	R, S and T are sharing profits and losses in the ratio of 1:2:3, decided to share future profit and losses equally. The sacrificing and gaining ratio was calculated. The asset and liabilities were revalued and reassessed respectively. The Capital accounts of partners was prepared.Answer the following questions:i. The ratio in which a partner surrenders his share in favour of a partner is known as: (a) New profit-sharing ratio (b) Sacrificing Ratio (c) Gaining Ratio (d) Capital Ratioii. The ratio in which a partner receives a rise in his share of profits is known as: (a) New Ratio (b) Sacrificing Ratio (c) Capital Ratio (d) Gaining Ratioiii. Increase and decrease in the value of assets and liabilities are recorded through (a) Partners' Capital Account(b) Revaluation Account (c) Profit and Loss Appropriation Account (d) Balance Sheetiv. Partner's capital account is credited when there is (a) Profit on revaluation (b) Transfer of general reserve (c) Transfer of accumulated profits (d) All of the above
Answer» i. (b) Sacrificing Ratio ii. (d) Gaining Ratio iii. (b) Revaluation Account iv. (d) All of the above

29.

R, S and T are sharing profits and losses in the ratio of 1:2:3, decided to share future profit and losses equally. The sacrificing and gaining ratio was calculated. The asset and liabilities were revalued and reassessed respectively. The Capital accounts of partners was prepared.Answer the following questions:i. The ratio in which a partner surrenders his share in favour of a partner is known as: (a) New profit-sharing ratio (b) Sacrificing Ratio (c) Gaining Ratio (d) Capital Ratioii. The ratio in which a partner receives a rise in his share of profits is known as: (a) New Ratio (b) Sacrificing Ratio (c) Capital Ratio (d) Gaining Ratioiii. Increase and decrease in the value of assets and liabilities are recorded through (a) Partners' Capital Account(b) Revaluation Account (c) Profit and Loss Appropriation Account (d) Balance Sheetiv. Partner's capital account is credited when there is (a) Profit on revaluation (b) Transfer of general reserve (c) Transfer of accumulated profits (d) All of the above

Answer»

i. (b) Sacrificing Ratio

ii. (d) Gaining Ratio

iii. (b) Revaluation Account

iv. (d) All of the above

Discussion

30.	Which one of the following best describes a crowd? a. Collection of people b. Collection of people by chance c. Feeling of interdependence amongst members. d. Positive synergy amongst the members
Answer» (b) Collection of people by chance

Discussion

31.	Bindu is a remarkable singer and has won many accolades. She is known as a child prodigy. Which of the following terms best describe Bindu’s abilities? a. Talent b. Giftedness c. Naturalistic intelligence d. Interest
Answer» The answer is: (a) Talent

Discussion

32.	R, S and T are sharing profits and losses in the ratio of 1:2:3, decided to share future profit and losses equally. The sacrificing and gaining ratio was calculated. The asset and liabilities were revalued and reassessed respectively. The Capital accounts of partners was prepared.Answer the following questions:1) The ratio in which a partner surrenders his share in favour of a partner is known as: (a) New profit-sharing ratio (b) Sacrificing Ratio (c) Gaining Ratio (d) Capital Ratio2) The ratio in which a partner receives a rise in his share of profits is known as: (a) New Ratio (b) Sacrificing Ratio (c) Capital Ratio (d) Gaining Ratio 3) Increase and decrease in the value of assets and liabilities are recorded through (a) Partners' Capital Account (b) Revaluation Account (c) Profit and Loss Appropriation Account (d) Balance Sheet4) Partner's capital account is credited when there is (a) Profit on revaluation (b) Transfer of general reserve (c) Transfer of accumulated profits (d) All of the above
Answer» Correct option is 1 (b) Sacrificing Ratio 2 (d) Gaining Ratio 3 (b) Revaluation Account 4 (d) All of the above

32.

R, S and T are sharing profits and losses in the ratio of 1:2:3, decided to share future profit and losses equally. The sacrificing and gaining ratio was calculated. The asset and liabilities were revalued and reassessed respectively. The Capital accounts of partners was prepared.Answer the following questions:1) The ratio in which a partner surrenders his share in favour of a partner is known as: (a) New profit-sharing ratio (b) Sacrificing Ratio (c) Gaining Ratio (d) Capital Ratio2) The ratio in which a partner receives a rise in his share of profits is known as: (a) New Ratio (b) Sacrificing Ratio (c) Capital Ratio (d) Gaining Ratio 3) Increase and decrease in the value of assets and liabilities are recorded through (a) Partners' Capital Account (b) Revaluation Account (c) Profit and Loss Appropriation Account (d) Balance Sheet4) Partner's capital account is credited when there is (a) Profit on revaluation (b) Transfer of general reserve (c) Transfer of accumulated profits (d) All of the above

Answer»

Correct option is

1 (b) Sacrificing Ratio

2 (d) Gaining Ratio

3 (b) Revaluation Account

4 (d) All of the above

Discussion

33.	U, V and W are partners sharing profits in the ratio of 2:2:1. They decided to share future profits in the ratio 5:3:2. On that date the profit and loss account showed the credit balance of ₹ 90,000. Instead of closing the profit and loss account, it was decided to record an adjustment entry reflecting the change in profit sharing ratio They also decide to record the effect of the following revaluations and reassessments without affecting the bookvalues of assets and liabilities by passing a single adjustment entry:BookValue(RsRevisedValue(Rs)Land and Building2,50,0003,00,000Furniture2,00,0001,75,000Sundry Creditors90,00075,000Outstanding Salaries15,00025,000Answer the following questions:i. The single adjustment entry on revaluations and reassessments without affecting the bookvalues of assets and liabilities will be(a) Dr.W capital a/c ₹3,000 and Cr.U capital a/c ₹3,000 (b) Dr.U capital a/c ₹3,000 and Cr.V capital a/c ₹3,000 (c) Dr.V capital a/c ₹ 30,000 and Cr.U capital a/c ₹30,000 (d) Dr.W capital a/c ₹ 30,000 and Cr.V capital a/c ₹30,000ii. Record an adjustment entry reflecting the change in profit sharing ratio when the profit and loss account is not closed(a) Dr.W capital a/c ₹9,000 and Cr.U capital a/c ₹9,000 (b) Dr.U capital a/c ₹9,000 and Cr.V capital a/c ₹9,000 (c) Dr.V capital a/c ₹ 90,000 and Cr.U capital a/c ₹90,000 (d) Dr.W capital a/c ₹ 90,000 and Cr.V capital a/c ₹90,000iii. Calculate U’s gain or sacrifice. (a) 1/10(sacrifice) (b) 1/10(gain) (c) 1/30(Gain) (d) 1/30(sacrifice)iv. In case of change in profit-sharing ratio, the gaining partner must compensate the sacrificing partners by paying the proportional amount of (a) Capital (b) Cash (c) Goodwill (d) None of the above
Answer» i. (b) Dr.U capital a/c ₹3,000 and Cr.V capital a/c ₹3,000 ii. (b) Dr.U capital a/c ₹9,000 and Cr.V capital a/c ₹9,000 iii. (b) 1/10(gain) iv. (c) Goodwill

33.

U, V and W are partners sharing profits in the ratio of 2:2:1. They decided to share future profits in the ratio 5:3:2. On that date the profit and loss account showed the credit balance of ₹ 90,000. Instead of closing the profit and loss account, it was decided to record an adjustment entry reflecting the change in profit sharing ratio They also decide to record the effect of the following revaluations and reassessments without affecting the bookvalues of assets and liabilities by passing a single adjustment entry:BookValue(RsRevisedValue(Rs)Land and Building2,50,0003,00,000Furniture2,00,0001,75,000Sundry Creditors90,00075,000Outstanding Salaries15,00025,000Answer the following questions:i. The single adjustment entry on revaluations and reassessments without affecting the bookvalues of assets and liabilities will be(a) Dr.W capital a/c ₹3,000 and Cr.U capital a/c ₹3,000 (b) Dr.U capital a/c ₹3,000 and Cr.V capital a/c ₹3,000 (c) Dr.V capital a/c ₹ 30,000 and Cr.U capital a/c ₹30,000 (d) Dr.W capital a/c ₹ 30,000 and Cr.V capital a/c ₹30,000ii. Record an adjustment entry reflecting the change in profit sharing ratio when the profit and loss account is not closed(a) Dr.W capital a/c ₹9,000 and Cr.U capital a/c ₹9,000 (b) Dr.U capital a/c ₹9,000 and Cr.V capital a/c ₹9,000 (c) Dr.V capital a/c ₹ 90,000 and Cr.U capital a/c ₹90,000 (d) Dr.W capital a/c ₹ 90,000 and Cr.V capital a/c ₹90,000iii. Calculate U’s gain or sacrifice. (a) 1/10(sacrifice) (b) 1/10(gain) (c) 1/30(Gain) (d) 1/30(sacrifice)iv. In case of change in profit-sharing ratio, the gaining partner must compensate the sacrificing partners by paying the proportional amount of (a) Capital (b) Cash (c) Goodwill (d) None of the above

Answer»

i. (b) Dr.U capital a/c ₹3,000 and Cr.V capital a/c ₹3,000

ii. (b) Dr.U capital a/c ₹9,000 and Cr.V capital a/c ₹9,000

iii. (b) 1/10(gain)

iv. (c) Goodwill

Discussion

34.	A _________is a cluster of ideas regarding the characteristics of a specific group. a. Prejudice b. Discrimination c. Scapegoating d. Stereotype
Answer» (d) Stereotype

Discussion

35.	U, V and W are partners sharing profits in the ratio of 2:2:1. They decided to share future profits in the ratio 5:3:2. On that date the profit and loss account showed the credit balance of ₹ 90,000. Instead of closing the profit and loss account, it was decided to record an adjustment entry reflecting the change in profit sharing ratio They also decide to record the effect of the following revaluations and reassessments without affecting the bookvalues of assets and liabilities by passing a single adjustment entry:Answer the following questions:1) The single adjustment entry on revaluations and reassessments without affecting the bookvalues of assets and liabilities will be (a) Dr.W capital a/c ₹3,000 and Cr.U capital a/c ₹3,000 (b) Dr.U capital a/c ₹3,000 and Cr.V capital a/c ₹3,000 (c) Dr.V capital a/c ₹ 30,000 and Cr.U capital a/c ₹30,000 (d) Dr.W capital a/c ₹ 30,000 and Cr.V capital a/c ₹30,000 2) Record an adjustment entry reflecting the change in profit sharing ratio when the profit and loss account is not closed (a) Dr.W capital a/c ₹9,000 and Cr.U capital a/c ₹9,000 (b) Dr.U capital a/c ₹9,000 and Cr.V capital a/c ₹9,000 (c) Dr.V capital a/c ₹ 90,000 and Cr.U capital a/c ₹90,000 (d) Dr.W capital a/c ₹ 90,000 and Cr.V capital a/c ₹90,000 3) Calculate U’s gain or sacrifice. (a) 1/10(sacrifice) (b) 1/10(gain) (c) 1/30(Gain) (d) 1/30(sacrifice) 4) In case of change in profit-sharing ratio, the gaining partner must compensate the sacrificing partners by paying the proportional amount of (a) Capital (b) Cash(c) Goodwill (d) None of the above
Answer» Correct option is 1 (b) Dr.U capital a/c ₹3,000 and Cr.V capital a/c ₹3,000 2 (b) Dr.U capital a/c ₹9,000 and Cr.V capital a/c ₹9,000 3 (b) 1/10(gain) 4 (c) Goodwill

35.

U, V and W are partners sharing profits in the ratio of 2:2:1. They decided to share future profits in the ratio 5:3:2. On that date the profit and loss account showed the credit balance of ₹ 90,000. Instead of closing the profit and loss account, it was decided to record an adjustment entry reflecting the change in profit sharing ratio They also decide to record the effect of the following revaluations and reassessments without affecting the bookvalues of assets and liabilities by passing a single adjustment entry:Answer the following questions:1) The single adjustment entry on revaluations and reassessments without affecting the bookvalues of assets and liabilities will be (a) Dr.W capital a/c ₹3,000 and Cr.U capital a/c ₹3,000 (b) Dr.U capital a/c ₹3,000 and Cr.V capital a/c ₹3,000 (c) Dr.V capital a/c ₹ 30,000 and Cr.U capital a/c ₹30,000 (d) Dr.W capital a/c ₹ 30,000 and Cr.V capital a/c ₹30,000 2) Record an adjustment entry reflecting the change in profit sharing ratio when the profit and loss account is not closed (a) Dr.W capital a/c ₹9,000 and Cr.U capital a/c ₹9,000 (b) Dr.U capital a/c ₹9,000 and Cr.V capital a/c ₹9,000 (c) Dr.V capital a/c ₹ 90,000 and Cr.U capital a/c ₹90,000 (d) Dr.W capital a/c ₹ 90,000 and Cr.V capital a/c ₹90,000 3) Calculate U’s gain or sacrifice. (a) 1/10(sacrifice) (b) 1/10(gain) (c) 1/30(Gain) (d) 1/30(sacrifice) 4) In case of change in profit-sharing ratio, the gaining partner must compensate the sacrificing partners by paying the proportional amount of (a) Capital (b) Cash(c) Goodwill (d) None of the above

Answer»

Correct option is

1 (b) Dr.U capital a/c ₹3,000 and Cr.V capital a/c ₹3,000

2 (b) Dr.U capital a/c ₹9,000 and Cr.V capital a/c ₹9,000

3 (b) 1/10(gain)

4 (c) Goodwill

Discussion

36.	X, Y and Z are partners sharing profits and losses in the ratio of 5 : 3 : 2. From 1st April, 2018, they decided to share profits and losses equally. The profit and loss account showed a debit balance of ₹10,000. The Partnership Deed provides that in the event of any change in the profit-sharing ratio, the goodwill should be valued at two years' purchase of the average profit of the preceding five yea₹ The profits and losses of the preceding years ended 31st March, are:Answer the following questions: 1) Change in the existing agreement of profit sharing ratio is considered as (a) Reconstitution of a partnership firm (b) Revaluation of a partnership firm (c) Dissolution of a partnership firm (d) None of the above 2) State the ratio in which the partners share the accumulated profits when there is a change in the profit sharing ratio amongst existing partne₹ (a) Old ratio (b) New ratio (c) Equal ratio (d) Sacrificing ratio 3) How is the sacrificing ratio determined? (a) Old ratio – New ratio (b) New ratio – old ratio (c) Old ratio + New ratio (d) None of the above 4) What is the amount of Goodwill credited to X Capital A/c? (a) ₹ 15,000 (b) ₹ 90,000 (c) ₹ 12,000 (d) ₹ 3,000
Answer» Correct option is 1 (a) Reconstitution of a partnership firm 2 (a) Old ratio 3 (a) Old ratio – New ratio 4 (a) ₹ 15,000

36.

X, Y and Z are partners sharing profits and losses in the ratio of 5 : 3 : 2. From 1st April, 2018, they decided to share profits and losses equally. The profit and loss account showed a debit balance of ₹10,000. The Partnership Deed provides that in the event of any change in the profit-sharing ratio, the goodwill should be valued at two years' purchase of the average profit of the preceding five yea₹ The profits and losses of the preceding years ended 31st March, are:Answer the following questions: 1) Change in the existing agreement of profit sharing ratio is considered as (a) Reconstitution of a partnership firm (b) Revaluation of a partnership firm (c) Dissolution of a partnership firm (d) None of the above 2) State the ratio in which the partners share the accumulated profits when there is a change in the profit sharing ratio amongst existing partne₹ (a) Old ratio (b) New ratio (c) Equal ratio (d) Sacrificing ratio 3) How is the sacrificing ratio determined? (a) Old ratio – New ratio (b) New ratio – old ratio (c) Old ratio + New ratio (d) None of the above 4) What is the amount of Goodwill credited to X Capital A/c? (a) ₹ 15,000 (b) ₹ 90,000 (c) ₹ 12,000 (d) ₹ 3,000

Answer»

Correct option is

1 (a) Reconstitution of a partnership firm

2 (a) Old ratio

3 (a) Old ratio – New ratio

4 (a) ₹ 15,000

Discussion

37.	The correct sequence of districts according to percentage of Schedule Tribe population (2011) in descending order is:1. Dungarpur, Banswara, Udaipur, Praphgarh2. Banswara, Dungarpur, Pratapgarh, Udaipur3. Banswara, Partapgarh, Udaipur, Dungarpur4. Dungarpur, Udaipur, Pratapgarh, Banswara
Answer» Correct Answer - Option 2 : Banswara, Dungarpur, Pratapgarh, Udaipur The correct answer is Banswara, Dungarpur, Pratapgarh, Udaipur. District-wise distribution of the tribal population shows that they have their highest concentration in Banswara district (72.3 per cent), followed by 65.1 per cent and 47.9 per cent in Dungarpur and Udaipur districts respectively. Nagaur (0.2 per cent) preceded by Bikaner (0.4 per cent) has the lowest share of the tribal population in the total population. Out of twelve (12) tribes scheduled for the State, Mina is the most populous tribe, having a population of 3,799,971 constituting 53.5 per cent of the total ST population followed by Bhil (2,805,948). Mina and Bhil together constitute 93 per cent whereas Garasia, Damor, Dhanka & Saharia combine to form 6.6 per cent of the total ST population. Six tribes, Bhil Mina, Naikda, Kathodi, Patelia, Kokna and Koli Dhor along with the generic tribes constitute the residual 0.3 per cent of the total tribal population. Among the twelve STs, Koli Dhor is the smallest tribe with a population below 100 preceded by Kokna (405), Patelia(1,045), Kathodi (2,922) etc. As per the 2001 census, the Scheduled Tribe (ST) population of Rajasthan State is 7,097,706 constituting 8.4 per cent of the total ST population of India. The Scheduled Tribes of the State constitute 12.6 percent of the total population (56,507,188) of the State. It holds 12th position among all States and UTs in respect of the percentage share of ST population to the total population. The ST population has registered a growth rate of 29.6 per cent during 1991-2001 which is 1.2 per cent higher than the growth of the total population.

37.

The correct sequence of districts according to percentage of Schedule Tribe population (2011) in descending order is:1. Dungarpur, Banswara, Udaipur, Praphgarh2. Banswara, Dungarpur, Pratapgarh, Udaipur3. Banswara, Partapgarh, Udaipur, Dungarpur4. Dungarpur, Udaipur, Pratapgarh, Banswara

Answer» Correct Answer - Option 2 : Banswara, Dungarpur, Pratapgarh, Udaipur

The correct answer is Banswara, Dungarpur, Pratapgarh, Udaipur.

District-wise distribution of the tribal population shows that they have their highest concentration in
- Banswara district (72.3 per cent), followed by 65.1 per cent and 47.9 per cent in Dungarpur and Udaipur districts respectively.
- Nagaur (0.2 per cent) preceded by Bikaner (0.4 per cent) has the lowest share of the tribal population in the total population.

Out of twelve (12) tribes scheduled for the State, Mina is the most populous tribe, having a population of 3,799,971 constituting 53.5 per cent of the total ST population followed by Bhil (2,805,948).
Mina and Bhil together constitute 93 per cent whereas Garasia, Damor, Dhanka & Saharia combine to form 6.6 per cent of the total ST population.
Six tribes, Bhil Mina, Naikda, Kathodi, Patelia, Kokna and Koli Dhor along with the generic tribes constitute the residual 0.3 per cent of the total tribal population.
Among the twelve STs, Koli Dhor is the smallest tribe with a population below 100 preceded by Kokna (405), Patelia(1,045), Kathodi (2,922) etc.

As per the 2001 census, the Scheduled Tribe (ST) population of Rajasthan State is 7,097,706 constituting 8.4 per cent of the total ST population of India.
The Scheduled Tribes of the State constitute 12.6 percent of the total population (56,507,188) of the State.
It holds 12th position among all States and UTs in respect of the percentage share of ST population to the total population.
The ST population has registered a growth rate of 29.6 per cent during 1991-2001 which is 1.2 per cent higher than the growth of the total population.

Discussion

38.	Which one is/are correctly matched, at present?(i) Rani Singh Nair – Chairperson, Central Board of Direct Taxes(ii) Raghuram Rajan–Governor, Reserve Bank of India(iii) Arvind Panagariya – CEO, NITI Aayog(iv) Anurag Thakur- President, Board of Control for Cricket in India1. (i) only2. (iv) only3. (i) and (iii) only4. (ii) and (iii) only
Answer» Correct Answer - Option 1 : (i) only Ram Singh Nair- – Chairperson, Central Board of Direct Taxes Senior Indian Revenue Service officer Rani Singh Nair on Monday took over as the new chairperson of the Central Board of Direct Taxes (CBDT), the policy-making body of the Income Tax (I-T) department under the Union Finance Ministry. Nair, a 1979-batch IRS officer of the IT cadre, worked as a member at CBDT. Nair has been instrumental in framing the procedures and protocols that led to the roll-out of the IDS on June 1 this year. The scheme aims at bringing undisclosed income and assets into the tax net. Raghuram Rajan–Governor, Reserve Bank of India- Raghuram Govinda Rajan is an Indian economist and the Katherine Dusak Miller Distinguished Service Professor of Finance at the University of Chicago Booth School of Business. From September 2013 through September 2016 he was the 23rd Governor of the Reserve Bank of India; in 2015, during his tenure at the RBI, he became the Vice-Chairman of the Bank for International Settlement. Arvind Panagariya – CEO, NITI Aayog- Arvind Panagariya is an Indian-American economist and a professor of economics at Columbia University, who served as first vice-chairman of the government of India think-tank NITI Aayog between January 2015 and August 2017. Anurag Thakur- President, Board of Control for Cricket in India- He was the president of the Board of Control for Cricket in India (BCCI) from May 2015 to February 2017 and had to leave that position after the Supreme Court order on BCCI governance. Hence, the correct answer one is Rani Singh Nair – Chairperson, Central Board of Direct Taxes

38.

Which one is/are correctly matched, at present?(i) Rani Singh Nair – Chairperson, Central Board of Direct Taxes(ii) Raghuram Rajan–Governor, Reserve Bank of India(iii) Arvind Panagariya – CEO, NITI Aayog(iv) Anurag Thakur- President, Board of Control for Cricket in India1. (i) only2. (iv) only3. (i) and (iii) only4. (ii) and (iii) only

Answer» Correct Answer - Option 1 : (i) only

Ram Singh Nair- – Chairperson, Central Board of Direct Taxes

Senior Indian Revenue Service officer Rani Singh Nair on Monday took over as the new chairperson of the Central Board of Direct Taxes (CBDT), the policy-making body of the Income Tax (I-T) department under the Union Finance Ministry.
Nair, a 1979-batch IRS officer of the IT cadre, worked as a member at CBDT.
Nair has been instrumental in framing the procedures and protocols that led to the roll-out of the IDS on June 1 this year. The scheme aims at bringing undisclosed income and assets into the tax net.

Raghuram Rajan–Governor, Reserve Bank of India-

Raghuram Govinda Rajan is an Indian economist and the Katherine Dusak Miller Distinguished Service Professor of Finance at the University of Chicago Booth School of Business.
From September 2013 through September 2016 he was the 23rd Governor of the Reserve Bank of India; in 2015, during his tenure at the RBI, he became the Vice-Chairman of the Bank for International Settlement.

Arvind Panagariya – CEO, NITI Aayog-

Arvind Panagariya is an Indian-American economist and a professor of economics at Columbia University, who served as first vice-chairman of the government of India think-tank NITI Aayog between January 2015 and August 2017.

Anurag Thakur- President, Board of Control for Cricket in India-

He was the president of the Board of Control for Cricket in India (BCCI) from May 2015 to February 2017 and had to leave that position after the Supreme Court order on BCCI governance.

Hence, the correct answer one is Rani Singh Nair – Chairperson, Central Board of Direct Taxes

Discussion

39.	Which of the following provides the largest part of the demand for loanable funds in India?A. FarmersB. Private-house purchasersC. Hire-purchase borrowersD. Corporate businesses
Answer» Correct Answer - D

Discussion

40.	Who amongst the following was never a Governor of the RBI ?A. Y.V. ReddyB. Bimal JalanC. Arup Roy ChoudhuryD. Rangarajan
Answer» Correct Answer - C

Discussion

41.	Who from amongst the following persons is a former Governor of RBI?A. Shri P ChidambaramB. Shri Yashwant SinhaC. Shri Pranab MukherjeeD. Shri Man Mohan Singh
Answer» Correct Answer - D

Discussion

42.	The finance Bill 2012-13 gave the Income Tax Department powers to revive its 11,128 crore tax demand on ……………….A. Bharti AirtelB. Tata IndicomC. Idea CellularD. Vodafone
Answer» Correct Answer - D

Discussion

43.	The Reserve Bank of India in June 2012 increased the limit on foreign investment in government securities byA. `$ 5` billionB. `$ 10` billionC. $ 7 billionD. $ 8 billion
Answer» Correct Answer - A

Discussion

44.	What is the current Repo Rate?A. `7%`B. `7.5%`C. `8%`D. `8.5%`
Answer» Correct Answer - C

Discussion

45.	Who is appointed as the new deputy governor of RBI?A. R GandhiB. S S MundraC. Urit PatelD. Anil Sinha
Answer» Correct Answer - A

Discussion

46.	In a housing loan, the rate of interest is a) fixed b) floating c) any one of the above d) None of above
Answer» Correct option: b) floating

Discussion

47.	Who all can avail bank locker facilities? Explain in brief.
Answer» Persons who can avail Bank locker facilities: Locker facility is provided by the bank at its select branches. For obtaining a locker at the bank, you must be an account holder with the bank a) Lockers can be allotted both individually (except minor) as well as jointly. b) The lockers are allotted on first come first served basis to the customers only. c) At the time of hiring the locker, bank will obtain a minimum-security deposit in the form of a Fixed Deposit Receipt (FDR) from the lessee for the amount which would be sufficient to cover 3 years rent and the charges for breaking open the locker in case of such eventualities. d) The Security Deposit will be kept under Bank's lien in respect of rentals and other dues on locker services. e) An acknowledgement will be issued by the bank for fixed deposit to be kept as security deposit.

47.

Who all can avail bank locker facilities? Explain in brief.

Answer»

Persons who can avail Bank locker facilities: Locker facility is provided by the bank at its select branches. For obtaining a locker at the bank, you must be an account holder with the bank

a) Lockers can be allotted both individually (except minor) as well as jointly.

b) The lockers are allotted on first come first served basis to the customers only.

c) At the time of hiring the locker, bank will obtain a minimum-security deposit in the form of a Fixed Deposit Receipt (FDR) from the lessee for the amount which would be sufficient to cover 3 years rent and the charges for breaking open the locker in case of such eventualities.

d) The Security Deposit will be kept under Bank's lien in respect of rentals and other dues on locker services.

e) An acknowledgement will be issued by the bank for fixed deposit to be kept as security deposit.

Discussion

48.	Conversion of Physia) E-Share b) DEMAT c) Online Share Cards d) None of thesecal form of share into electronic form is called:a) E-Share b) DEMATc) Online Share Cards d) None of these
Answer» Conversion of Physical form of share into electronic form is called DEMAT.

Discussion

49.	Internet Banking may be used for payment of _______and ______..
Answer» Internet Banking may be used for payment of Bills, Insurance Premium and card payment.

Discussion

50.	The bank will, in no way, be responsible / liable for the contents kept in the locker by the hirer as a) the banks do know what is kept in the lockers b) the keys are kept with customers c) bank and customer holds bailor & bailee relationship d) the banks do not know what is kept in the lockers
Answer» Correct option: (d) the banks do not know what is kept in the lockers

Discussion

Explore topic-wise InterviewSolutions in Current Affairs.

Find out correct answers from the box given below the table.

Compare developmental expenditure and non-developmental expenditure.

Describe the features of direct tax and indirect tax.

Discuss how these factors lead to an increase in public expenditure and make inferences.

Complete the world wheel. increase in population.

What are the goals of the fiscal policy ?

Compare developmental and non -developmental expenditure and give examples for each.

How do public expenditure, public income and public debt benefit a country? Discuss.

Discuss the management of public debt

What are the implications of revenue deficit? State two measures to reduce this deficit.

What is revenue deficit? What are its implications?

Give meaning of capital expenditure and revenue expenditure in a government budget and an example of each.

Define government budget.

Explain the precautions that should be taken while estimating national Income by expenditure method.

Differentiate between durable and non-durable goods.

Explain with the help of an example ,the basis of classifying goods into final goods and intermediate of goods.

Distinguish between labour-intensive and capital-intensive technology of production.

Although water is useful but it is cheap, on the contrary a diamond is not much of use but is very expensive. Give an economic reason for this paradox.

Define equilibrium point.

How do you find out whether a particular expenditure is on intermediate goods or final goods?

An employess approches his emplyer for a loan of Rs. 3,00,000 for the higher education fo his son . The employer agrees to provide interest free loan . What will be the treatment of interest in calculation of national income ?

Due to increase in the family members ,harish wants to add one more floor to his old house .How will treast the value of new floor while estimating national income .

Name any one step the Government can take through its budget to reduce the gap between the rich and the poor .

A, B and C are partners sharing profits and losses in the ratio of 5 : 4 : 1. Calculate new profit-sharing ratio, sacrificing ratio and gaining ratio in each of the following cases:1) i-c, ii-a, iii-d, iv-b 2) i-a, ii-b, iii-c, iv-d 3) i-b, ii-c, iii-a, iv-d 4) i-d, ii-a, iii-b, iv-c

The state of physical, emotional, and psychological exhaustion is known as_____.

Which of the following is true of depression? a. It affects men more frequently than women. b. It is a component of Dissociative Identity Disorder. c. It is caused by low activity of serotonin. d. It is more prevalent among the wealthy than the poor.

Which one of the following best describes a crowd? a. Collection of people b. Collection of people by chance c. Feeling of interdependence amongst members. d. Positive synergy amongst the members

Bindu is a remarkable singer and has won many accolades. She is known as a child prodigy. Which of the following terms best describe Bindu’s abilities? a. Talent b. Giftedness c. Naturalistic intelligence d. Interest

A _________is a cluster of ideas regarding the characteristics of a specific group. a. Prejudice b. Discrimination c. Scapegoating d. Stereotype

The correct sequence of districts according to percentage of Schedule Tribe population (2011) in descending order is:1. Dungarpur, Banswara, Udaipur, Praphgarh2. Banswara, Dungarpur, Pratapgarh, Udaipur3. Banswara, Partapgarh, Udaipur, Dungarpur4. Dungarpur, Udaipur, Pratapgarh, Banswara

Which of the following provides the largest part of the demand for loanable funds in India?A. FarmersB. Private-house purchasersC. Hire-purchase borrowersD. Corporate businesses

Who amongst the following was never a Governor of the RBI ?A. Y.V. ReddyB. Bimal JalanC. Arup Roy ChoudhuryD. Rangarajan

Who from amongst the following persons is a former Governor of RBI?A. Shri P ChidambaramB. Shri Yashwant SinhaC. Shri Pranab MukherjeeD. Shri Man Mohan Singh

The finance Bill 2012-13 gave the Income Tax Department powers to revive its 11,128 crore tax demand on ……………….A. Bharti AirtelB. Tata IndicomC. Idea CellularD. Vodafone

The Reserve Bank of India in June 2012 increased the limit on foreign investment in government securities byA. `$ 5` billionB. `$ 10` billionC. $ 7 billionD. $ 8 billion

What is the current Repo Rate?A. `7%`B. `7.5%`C. `8%`D. `8.5%`

Who is appointed as the new deputy governor of RBI?A. R GandhiB. S S MundraC. Urit PatelD. Anil Sinha

In a housing loan, the rate of interest is a) fixed b) floating c) any one of the above d) None of above

Who all can avail bank locker facilities? Explain in brief.

Conversion of Physia) E-Share b) DEMAT c) Online Share Cards d) None of thesecal form of share into electronic form is called:a) E-Share b) DEMATc) Online Share Cards d) None of these

Internet Banking may be used for payment of _______and ______..

The bank will, in no way, be responsible / liable for the contents kept in the locker by the hirer as a) the banks do know what is kept in the lockers b) the keys are kept with customers c) bank and customer holds bailor &amp; bailee relationship d) the banks do not know what is kept in the lockers

Internet Banking may be used for payment of _and ..

The bank will, in no way, be responsible / liable for the contents kept in the locker by the hirer as a) the banks do know what is kept in the lockers b) the keys are kept with customers c) bank and customer holds bailor & bailee relationship d) the banks do not know what is kept in the lockers