73 + Interview Questions in JOURNAL IN GENERAL AWARENESS Page 2 InterviewSolution

51.	Which accounts are affected when building purchased for the business from the personal amount of trader?
Answer» Building account and Capital account are affected when building purchased for the business from the personal amount of trader.

Discussion

52.	When amount is not recoverable from a customer of business, what is called it ?(a) Discount(b) Allowance(c) Loss(d) Bad debts
Answer» Correct option is (d) Bad debts

Discussion

53.	Which account should be debited when the donation given from the business in the memory of grandmother?
Answer» Drawings A / c should be debited when the donation given from the business in the memory of grandmother.

Discussion

54.	Latin word ‘Journal’ means ……………..(a) day(b) daily(c) diary(d) data
Answer» Correct option is (c) diary

Discussion

55.	State whether the following statements are True or False with reason:Goods lost by theft are debited to the goods account.
Answer» This statement is False. Correct statement: Goods lost by theft is credited to the goods account. Reasons: Goods account is a real account because unsold goods are the property of the business. If goods are purchased or acquired, the Goods account is debited and if goods are sold or lost from the business, they are credited. As per the traditional approach, goods lost means go away from the business, and whatever goes out an account of it is credited. As per the modern approach if loss of business increases account of such loss is credited in the hooks of account.

55.

State whether the following statements are True or False with reason:Goods lost by theft are debited to the goods account.

Answer»

This statement is False.

Correct statement: Goods lost by theft is credited to the goods account. Reasons: Goods account is a real account because unsold goods are the property of the business. If goods are purchased or acquired, the Goods account is debited and if goods are sold or lost from the business, they are credited. As per the traditional approach, goods lost means go away from the business, and whatever goes out an account of it is credited. As per the modern approach if loss of business increases account of such loss is credited in the hooks of account.

Discussion

56.	Which account is debited when the electronic weight machine is purchased for business ?(a) Weight Machine A/c(b) Dead Stock A/c(c) Live Stock A/c(d) Stationery Stock A/c
Answer» Correct option is (b) Dead Stock A/c

Discussion

57.	Which account is credited as per CPT study material of ICAI, when goods given as donation ?
Answer» As per CPT study material of ICAI, Purchase A/c is credited, when goods given as donation.

Discussion

58.	Which account is credited, when goods are sold on credit?
Answer» Sales account is credited, when goods are sold on credit.

Discussion

59.	Journalise the following transactions in the books of Mohan, Delhi: (i) Raj of Alwar, Rajasthan who owed Mohan Rs. 25,000 became insolvent and received 60 paise in a ruee as full and final settlement. (ii) Mohan owes to his landlord Rs. 10,000 as rent. (iii) Charge depreciation of `10%` on furniture costing Rs. 50,000. (iv) Salaries due to employees Rs. 20,000. (v) Sold to Sunil goods in cash of Rs. 10,000 less `10%` trade discount plus CGST and SGST @ `6%` each and received a net of Rs. 8,500. (vi) Provided interest on capital of Rs. 1,00,000 @ `10%` per annum. (vii) Goods lost in theft Rs. 5,000, which were purchased paying IGST @ `12%` from Alwar, Rajasthan.
Answer» `{:((vii),"Loss of Stook by Theft A/c",,...Dr.,,Rs."5,600",,),(," ""To Purchases A/c",,,,,,Rs. "5,000"),(," ""To Input IGST A/c ",,,,,,Rs. 600):}`

Discussion

60.	Which account is debited, when goods are destroyed by fire?
Answer» When goods are destroyed by fire, the Loss by Fire Account is debited.

Discussion

61.	Amount of ₹ 9,000 payable to Yash, is agreed to by Prem. In this transaction, which account is credited?(a) Yash account(b) Prem account(c) Cash account(d) Drawings account
Answer» Correct option is (b) Prem account

Discussion

62.	To which account bad debts return will be credited, which is received from the debtor who became insolvent in past ?
Answer» Amount is received from the debtor who became insolvent in past, it will be credited to Bad Debts Return A/c.

Discussion

63.	Which account is credited in the transaction of goods Destroyed by Fire ?(a) Goods Destroyed by Fire A/c(b) Purchase A/c(c) Insurance Company A/c(d) Loss Due to Fire A/c
Answer» Correct option is (b) Purchase A/c

Discussion

64.	Which account is credited in the transaction of free sample goods are sold ?(a) Free Sample Goods A/c(b) Sundry Income A/c(c) Sales A/c(d) Gain A/c
Answer» Correct option is (c) Sales A/c

Discussion

65.	When combined journal entries are written ?
Answer» When more than two accounts are associated at the same time in any accounting transaction, combined entry is written.

Discussion

66.	Give three illustrations of goods going out in other ways.
Answer» Three illustrations of goods going out in other ways are : Goods withdrawn for personal use, Goods distributed as free sample for advertisement and Goods given in charity.

66.

Give three illustrations of goods going out in other ways.

Answer»

Three illustrations of goods going out in other ways are :

Goods withdrawn for personal use,
Goods distributed as free sample for advertisement and
Goods given in charity.

Discussion

67.	State whether the following statements are True or False with reason:GST paid on the purchase of goods Input tax A/c should be debited.
Answer» This statement is True. Reasons: GST is abbreviated from Goods and Service Tax. GST is levied by the government on the purchases of Goods and Services at a specified rate. Since it is imposed on purchases of goods and services, it increases its cost. GST is added to the purchase price. Purchases are always debited and hence GST i.e. Input tax account is also debited along with purchases. In the case of sales of goods and services, the output tax account is credited.

67.

State whether the following statements are True or False with reason:GST paid on the purchase of goods Input tax A/c should be debited.

Answer»

This statement is True.

Reasons: GST is abbreviated from Goods and Service Tax. GST is levied by the government on the purchases of Goods and Services at a specified rate. Since it is imposed on purchases of goods and services, it increases its cost. GST is added to the purchase price. Purchases are always debited and hence GST i.e. Input tax account is also debited along with purchases. In the case of sales of goods and services, the output tax account is credited.

Discussion

68.	When is purchase returns made ? To which account it will be credited ?
Answer» When purchased goods is defective, not as per sample, of inferior quality, in these cases, goods will be returned back to the supplier from whom goods is purchased. At that time, Purchase Returns A/c will be credited.

Discussion

69.	Expense incurred to purchase asset is debited to …………….. account.(a) Expense(b) Asset(c) Cash(d) Sundry
Answer» Correct option is (b) Asset

Discussion

70.	Stamp duty and document expenses paid for the purchase of building should be debited to which account?
Answer» Stamp duty and document expenses paid for the purchase of building should be debited to Building A/c.

Discussion

71.	Brokerage paid on purchase of goods is debited to which account?
Answer» Brokerage paid on purchase of goods is debited to Brokerage A/c.

Discussion

72.	Do you agree or disagree with the following statements :(i) On purchase of goods or assets output, GST A/c is credited.(ii) 5% GST Charge on luxury cars.(iii) GST Generates income to Central Government only.(iv) Ledger Folio column in Journal filled while passing Journal entry only.(v) Purchase of shares of TATA Ltd should be debited to TATA Ltd’s A/c.
Answer» (i) Disagree (ii) Disagree (iii) Disagree (iv) Disagree (v) Disagree

72.

Do you agree or disagree with the following statements :(i) On purchase of goods or assets output, GST A/c is credited.(ii) 5% GST Charge on luxury cars.(iii) GST Generates income to Central Government only.(iv) Ledger Folio column in Journal filled while passing Journal entry only.(v) Purchase of shares of TATA Ltd should be debited to TATA Ltd’s A/c.

Answer»

(i) Disagree

(ii) Disagree

(iii) Disagree

(iv) Disagree

(v) Disagree

Discussion

73.	Do you agree or disagree with the following statements :(i) Purchase of Assets should be debited to purchase A/c.(ii) A cash discount is recorded in the books of Accounts.(iii) GST is imposed by the local body.(iv) Capital is an asset for business organisations(v) With NEFT, RTGS Transaction Cash A/c is affected.
Answer» (i) Disagree (ii) Agree (iii) Disagree (iv) Disagree (v) Disagree

73.

Do you agree or disagree with the following statements :(i) Purchase of Assets should be debited to purchase A/c.(ii) A cash discount is recorded in the books of Accounts.(iii) GST is imposed by the local body.(iv) Capital is an asset for business organisations(v) With NEFT, RTGS Transaction Cash A/c is affected.

Answer»

(i) Disagree

(ii) Agree

(iii) Disagree

(iv) Disagree

(v) Disagree

Discussion

Explore topic-wise InterviewSolutions in .

Which accounts are affected when building purchased for the business from the personal amount of trader?

When amount is not recoverable from a customer of business, what is called it ?(a) Discount(b) Allowance(c) Loss(d) Bad debts

Which account should be debited when the donation given from the business in the memory of grandmother?

Latin word ‘Journal’ means ……………..(a) day(b) daily(c) diary(d) data

State whether the following statements are True or False with reason:Goods lost by theft are debited to the goods account.

Which account is debited when the electronic weight machine is purchased for business ?(a) Weight Machine A/c(b) Dead Stock A/c(c) Live Stock A/c(d) Stationery Stock A/c

Which account is credited as per CPT study material of ICAI, when goods given as donation ?

Which account is credited, when goods are sold on credit?

Which account is debited, when goods are destroyed by fire?

Amount of ₹ 9,000 payable to Yash, is agreed to by Prem. In this transaction, which account is credited?(a) Yash account(b) Prem account(c) Cash account(d) Drawings account

To which account bad debts return will be credited, which is received from the debtor who became insolvent in past ?

Which account is credited in the transaction of goods Destroyed by Fire ?(a) Goods Destroyed by Fire A/c(b) Purchase A/c(c) Insurance Company A/c(d) Loss Due to Fire A/c

Which account is credited in the transaction of free sample goods are sold ?(a) Free Sample Goods A/c(b) Sundry Income A/c(c) Sales A/c(d) Gain A/c

When combined journal entries are written ?

Give three illustrations of goods going out in other ways.

State whether the following statements are True or False with reason:GST paid on the purchase of goods Input tax A/c should be debited.

When is purchase returns made ? To which account it will be credited ?

Expense incurred to purchase asset is debited to …………….. account.(a) Expense(b) Asset(c) Cash(d) Sundry

Stamp duty and document expenses paid for the purchase of building should be debited to which account?

Brokerage paid on purchase of goods is debited to which account?