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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.
| 1. |
Put ‘✓’ mark for the nature of balance for the following :AccountDr. BalanceCr. Balance1. Salary A/c2. Purchase A/c3. Sales Return A/c4. Machinery A/c5. Bank Balance A/c6. Cash Balance A/c7. Sale A/c8. Purchase Return A/c9. Bills Payable A/c10. Debtors A/c11. Creditors A/c12. Stationery A/c13. Furniture A/c14. Amit’s Loan A/c |
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| 2. |
Where is the statement form of ledger A/c is used in actual practice? |
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Answer» The statement form of ledger A/c is used in the banks and financial institutions to prepare the client’s account showing balances of accounts after each transaction is complete. |
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| 3. |
Why Proprietor’s Capital account is a liability for the business? |
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Answer» Capital invested in the business by the proprietor is an asset for the proprietor and liability for the business. |
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| 4. |
Why does a cash account never shows a credit balance? |
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Answer» Available cash with the business is an asset of the business and the account of every asset shows debit, cash account always shows debit balance. |
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| 5. |
…. accounts show the values of assets. (a) Real (b) Personal (c) Nominal (d) Journal |
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Answer» The correct answer is : (a) Real |
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| 6. |
Select appropriate alternatives from those given below and rewrite the sentence:i. In case of a credit transaction one of the account must be a ________account. (a) Cash (b) Credit (c) Personal (d) Debitii. ‘c/d’ indicates ________ balance.(a) Opening (b) Closing (c) Positive (d) Negativeiii. _______ Column of ledger is used for writing page number of Journal. (a) J.F. (b) L.F. (c) Date (d) Particularsiv. Debtors Account shows ________ balance. (a) Real (b) Negative(c) Credit (d) Debitv. _______ is the process of deriving the difference between totals of the debit and credit side of each ledger a/c. (a) Totalling (b) Journalizing (c) Balancing (d) Posting |
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Answer» i. (c) Personal ii. (b) Closing iii. (a) J.F. iv. (d) Debit v. (c) Balancing |
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| 7. |
Total of credit > Total of debit = (a) Debit balance (b) Credit balance (c) Nil balance (d) Trial balance |
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Answer» (b) Credit balance |
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| 8. |
State whether the following statements are ‘True or False’ with reasons:Agreement of Trial Balance always proves accounting accuracy. |
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Answer» This statement is False. Even though the Trial balance is tally there may be some mistake like the complete omission of transaction or compensatory error so Agreement of Trial Balance does not always prove accounting accuracy. |
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| 9. |
Purchased goods from Manoj of Rs 20,000 at `20%` trade discount. Posting will be made in Manoj A/c:A. Debit side Rs 20,000B. Credit side Rs 20,000C. Debit side Rs 16,000D. Credit side Rs 16,000 |
| Answer» Correct Answer - D | |
| 10. |
State whether the following statements are ‘True or False’ with reasons:The name of an account written on top of each account is called ‘Head of Account’. |
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Answer» This statement is True. There are many ledger accounts in the ledger book. To identity, the name of the account, every account on the Top Head of Account is written. |
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| 11. |
Proprietor of the business withdrew goods from business for private use. It will be posted to the :A. Credit of Drawings A/cB. Debit of Purchases A/cC. Credit of Purchases A/cD. None of the above |
| Answer» Correct Answer - C | |
| 12. |
The total of Purchase Return Column of Purchases Return book will be posted to the :A. Debit of Purchases A/cB. Credit of Purchases A/cC. Debit side of Purchases Return A/cD. Credit side of Purchases Return A/c |
| Answer» Correct Answer - D | |
| 13. |
State whether the following statements are ‘True or False’ with reasons:When the debit side of an account is greater than the credit side, the account shows a debit balance. |
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Answer» This statement is True. While balancing the ledger account the side which is greater is the balance of that account so when the debit side of an account is greater the account shows debit balances. |
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| 14. |
While posting in personal accounts from the purchases book, posting is done :A. on Debit sideB. On Credit sideC. On Debit or Credit sideD. None of the above |
| Answer» Correct Answer - B | |
| 15. |
Normally, the following accounts are balanced :A. Personal A/c & Nominal A/cB. Real A/c & Nominal A/cC. Only Nominal A/cD. Personal A/c & Real A/c |
| Answer» Correct Answer - D | |
| 16. |
Which of the following accounts always shows a debit balance :A. Capital AccountB. Sales AccountC. Purchases Return AccountD. None of the above |
| Answer» Correct Answer - D | |
| 17. |
State whether the following accounts will show debit or credit balance : `{:("(i) Purchases Accounts","(ii) Cash"),("(iii)Capital","(iv) Salary"),("(v) Interest received","(vi)Sales Return"),("(vii)Machinery","(viii)Drawings"):}` |
| Answer» Correct Answer - Debit balances : - (i), (ii), (iv), (vi), (vii), (viii). | |
| 18. |
Which of these accounts has debit balance?A. Income received in advanceB. Bank loanC. Prepaid insurance premiumD. Creditors for goods |
| Answer» Correct Answer - C | |
| 19. |
Name the process of transferring entries from a Journal to their respective accounts in the Ledger. |
| Answer» Correct Answer - Posting. | |
| 20. |
The process of transferring the accounts from the Journal to the ledger is calledA. JournalisingB. Posting.C. Balancing.D. Costing. |
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Answer» Correct Answer - b Journalising |
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| 21. |
The credit balance of a personal account is ……….A. Cash in handB. Amount receivableC. Income earnedD. Amount payable |
| Answer» Correct Answer - D | |
| 22. |
State whether the following statements are ‘True or False’ with reasons:A cash withdrawal from business by the trader should be credited to Drawings A/c. |
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Answer» This statement is False. Cash withdrawn from the business by the trader should be debited to Drawing A/c. It is a personal account and as per the golden rules of a personal account Debit the receiver. |
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| 23. |
State whether the following statement are ‘True or False’ with reason :Ledger posting is not necessary for journal proper. |
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Answer» This statement is False. Ledger posting is necessary for journal proper. From Ledger trial balance and financial statements are prepared for the accounting year. Without posting of journal proper Trial balance and financial statements will not be tally and can’t give true and fair accounting. |
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| 24. |
The process of transferring the debit and credit items from journal to ledger accounts is called ….. (a) Casting (b) Posting (c) Journalising (d) Balancing |
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Answer» The correct answer is: (b) Posting |
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| 25. |
State whether the following statement are ‘True or False’ with reason :Ledger Folio and index are necessary for the ledger. |
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Answer» This statement is True. The index is necessary to final particular account on its page number and ledger folio number is also necessary for cross-checking with the journal book. This makes handling convenient and easier. |
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| 26. |
The credit balance of a personal account is ……….A. Cash in handB. Amount receivableC. Income earned D. Amount payable |
| Answer» Correct Answer - D | |
| 27. |
Net position of an account can be ascertained from ……(a) Journal (b) Ledger(c) Trial balance (d) Balance sheet |
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Answer» The correct answer is : (b) Ledger |
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| 28. |
State whether the following statement are ‘True or False’ with reason :Recording of a transaction in the journal is called posting. |
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Answer» This statement is False. The process of recording a transaction in the Journal is called Journalising. Posting means transferring journal entries to respective ledger accounts |
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| 29. |
Net position of an account cannot be ascertained from ……(a) Journal (b) Ledger (c) Trial balance (d) Balance sheet |
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Answer» The correct answer is : (a) Journal |
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| 30. |
State whether the following statements are ‘True or False’ with reasons:The process of recording a transaction in the Journal is called Posting. |
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Answer» This statement is False. The process of recording a transaction in the Journal is called Journalising. Posting means transferring journal entries to respective ledger accounts. |
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| 31. |
From which books of accounts posting is made in the Ledger? |
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Answer» From Journal and Subsidiary books posting is made in the ledger. |
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| 32. |
Enter the following transactions in subsidiary books, post them into Ledger and prepare a Trial Balance : The following balances existed in Sunil Bros. books on April 1, 2017 : `{:("2017",),("April","1 Cash Sales Rs 18,000."),(,"2 Deposited into Bank Rs 40,000"),(,"3 Purchased from Dinesh :"),(," 300 metres Cotton @ Rs 60 per metre"),(," 200 metres Silk @ Rs 100 per metre"),(,"5 Cheque issued to Dinesh for Rs 25,000."),(,"6 Accepted a bill at one month for Rs 15,000 drawn by Dinesh"),(,"6 Accepted a bill at one month for Rs 15,000 drawn by Dinesh."),(,"8 Sold by Ashok :"),(," 400 metres Cotton @ Rs 80 pre metre"),(," 250 metres Silk."),(,"Received Cash Rs 8,000 and a Cheque for Rs 40,000 from Ashok. Cheque was was immediately sent to bank."),(,"13 Received a B/R from Bahadur for Rs 20,000 at one month."),(,"15 Accepted a bill at two months drawn by Ekta for the amount due to her."),(,"18 Cash purchases Rs 10,000."),(,"19 Received full payment from Charu by cheque, sent to Bank. Discount allowed "2%.),(,"20 Issued a cheque to Dinesh in full payment of his account after debucting "1%" discount."),(,"22 Settled the account of Shiva Ltd. by a cheque."),(,"24 Proprietor took away goods worth Rs 5,000 and Cash Rs 6,000."),(,"25 Purchased from Ganesh 200 metres Cotton @ Rs 70 per metre subject to trade discount of "5%),(,"Paid Rent Rs 3,000 and Salaries Rs 8,000."),(,"30 Interest allowed by bank Rs 600."):}` |
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Answer» Correct Answer - Cash Balance Rs 6,500; Bank Balance Rs 42,180; Total of Purchases Book Rs 51,300; sales Book Rs 67,000; Sales Return Book Rs 7,000; Total of Journal Proper Rs 4,41,280; Total of Trial Balance Rs 4,34,580. Dr. Balances : Cash Rs 6,500; Bank Rs 42,180; Ashok Rs 30,000; Bahadur Rs 5,000; Stock Rs 1,60,000; Furniture Rs 40,000; Office Equipment (Computer) Rs 45,000; Purchases Rs 56,300; Discount allowed Rs 600; Drawings Rs 11,000; Rend Rs 3,000; Salaries Rs 8,000; Sales Return Rs 7,000; B/R Rs 20,000. Cr. Balances : Capital Rs 3,05,500; Sales Rs 85,000; Discount Received Rs 180; Ganesh Rs 13,300; Interest Rs 600; B/P Rs 30,000. |
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| 33. |
Ledger account gives the folio of ………….. (Journal , Ledger) |
| Answer» Correct Answer - Journal | |
| 34. |
State whether the following statement are ‘True or False’ with reason :Ledger posting is made before journal entry. |
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Answer» This statement is False. Ledger posting is made after journal entry. First, all transactions are recorded to Journal and from the journal, posting is made to Ledger. |
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| 35. |
Complete the following table :Ledger Trial BalanceJournal? |
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