110 + Interview Questions in MCQ IN GENERAL AWARENESS Page 1 InterviewSolution

1.	Which of the following is not part of cash Equivalents?A. Cash at BankB. Current InvestmentsC. Marketable SecuritiesD. All of these.
Answer» Correct Answer - d

Discussion

2.	William Pens Ltd . Issued 10,000,`7%` Debentures of Rs.100 each at a discount of Rs.4. it has a balance in Securities Premium Reserve of Rs.25, 000. It Will write off Discount on Issue of DebenturesA. Rs.40,000 from Securities Premium ReserveB. Rs.40,000 from Statement of Profit and lossC. Rs. 25,000 from Securities Premium Reserve and Rs. 15,000 from Statement of Profit and Loss (Finance Cost)D. Rs.15,000 from Securities Premium Reserve and Rs.25,000 from Statement of Profit and Loss (Finance Cost)
Answer» Correct Answer - c

Discussion

3.	The provisions of the Companies Act , 2013 in respect of redemption of debentures are to protect the interest ofA. Debentureholders.B. Creditors.C. Shareholders.D. Bankers.
Answer» Correct Answer - a

Discussion

4.	Fast Internet Ltd. Issued 10,000 , `7%` Debentures of Rs.100 each at a discount of Rs.6 on 1st Ocyober, 2018. These debentures are redeemable at a premium of Rs.4 .Interest for the year ended 31st March , 2019 will beA. Rs.65,800.B. Rs.32,900.C. Rs.70,000.D. Rs.35,000.
Answer» Correct Answer - d

Discussion

5.	Apple Computers Ltd. Issued 10,000, `7%` Debentures of Rs.100 each at a discount of Rs.6 on 1st October, 2018. Interest for the year ended 31st March , 2019 will beA. Rs.65,800.B. Rs.32,900.C. Rs.70,000.D. Rs.35,000.
Answer» Correct Answer - d

Discussion

6.	In case debentures of Rs.10,000 are issued at par but redeemable at a premium of `10%` the premium payable is debited toA. Debentures Suspense Account.B. Premium on Redemption of Debentures Account.C. Loss on Issue of Debentres Account.D. Both (a) and (c ).
Answer» Correct Answer - c

Discussion

7.	Luxor pens Ltd. Issued 10,000, `7%` Debentures of Rs.100 each at a discount of Rs.4 redeemable at a premium of Rs. 6 .It will write off Loss on Issue of DebenturesA. from Securities Premium Reserve.B. from Statement of profit and loss.C. Any of the above.D. None of these.
Answer» Correct Answer - b

Discussion

8.	H & S Ltd. Has outstanding 10,000`8%` Debentures of Rs.100 each that are redeemable at premium of Rs.10 each Out of these, 5,000 debentures are to be redeemed on 31st December , 2018. Debenture Redemption Reserve should beA. Rs.1,37,500.B. Rs.1,25,000.C. Rs.2,50,000.D. Rs.2,75,000.
Answer» Correct Answer - c

Discussion

9.	Top Ramen Ltd. Decides to redeem 1,000, `10%` Debentures of Rs.100 each redeemable at `10%` premium. The company will have to invest in specified securities at leastA. Rs.15,000.B. Rs.16,500.C. Rs.25,000D. Rs.27,500.
Answer» Correct Answer - a

Discussion

10.	Cross Roads Ltd. Has to redeem 50,000 , `8%` Debentures of Rs.100 each on 30 th june , 2019, It should have a balance of Rs.12,50,000 in Debenture Redemption Reserve , It decides to set aside amount to Debenture Redemption Reserve on 31 st March , 2019 on which date it has following reserve: `{:(, "Rs."),("Capital Reserve","6,00,000"),("Debenture Redemption Reserve","2,50,000"),("General Reserve","1,00,000"),("Surplus, i.e, Balance in Statement of Profit and Loss","3,00,000"):}` How much further amount it needs to set aside to Debenture Redemption Reserve and how much it can set aside out of the above reserves and surplus?A. Rs.12,50, 000 and Rs.6,50,000B. Rs. 12,50,000 and Rs.4,00,000.C. Rs.12,50,000 and Rs.5,50,000.D. Rs.12,50,000 and Rs.12,50,000.
Answer» Correct Answer - a

Discussion

11.	A company has issued 5,000, `8%` Debentures of Rs.100 each at a premium of Rs.10. the prefix `8%` isA. the rate of interest payable on the debentures.B. to distinguish from other debentures issued by the company.C. Both (a) and (b)D. None of these.
Answer» Correct Answer - a

Discussion

12.	Debentures are shown in the Balance Sheet of a company under the head ofA. Non - current Liabilites.B. Current Liabilities.C. Share Capital.D. None of these.
Answer» Correct Answer - a

Discussion

13.	Sun & Moon Ltd . Invited applications for 25,000 equity shares of Rs.10 each and received 30,000 applications along with the application money of Rs. 4 per share . Which of the following alternatives can be followed? (i) Refund the excess application money and full allotment to rest of the applicants. (ii)Not to allot any share to some applicants, full alloment to some of the applicants and pro rata allotment to the rest of the applicants. (iii) Not to allot any share to some applicants and make pro rata allotment to other applicants. (iv) Make pro rata allotment to all the applicants and adjust the excess money received towards call money.A. Only (i) abobe.B. both (i) and (iii) above.C. All of the above.D. only (ii) above.
Answer» Correct Answer - c

Discussion

14.	Gopal Ltd. Purchased machine of Rs.1,15000 from India Traders , payment of Rs.10,000 was made by issuing cheque and the remaining amount by issue of equity shares of the face value of Rs.10 each fully paid at an issue price of Rs. 10.50 each . Amount of securities premium will beA. Rs.6,000.B. Rs.7,000.C. Rs.5,000.D. Rs.4,000.
Answer» Correct Answer - c

Discussion

15.	Green Ltd . Had allotted 10,000 shares to the applicants of 14,000 shares on pro basis. The amount payable on application is Rs.2 per share. Mohan applied for 420 shares . The number of shares allotted and the amount carreid forward for adjustment against allotment money due from Mohan areA. 60 shares Rs.120.B. 320 shares, Rs. 200.C. 340 shares, Rs.100.D. 300 shares , Rs.240.
Answer» Correct Answer - d

Discussion

16.	Goodwill isA. an intagible assert.B. a fictitious asset.C. Both (a) and (b)D. None of these.
Answer» Correct Answer - a

Discussion

17.	Which of the following is not an feature of partnership?A. An agreement , oral or written , should exist among the partners.B. Agreement should be to carry on lawful business.C. All the partner should contribute capital in the firm.D. There should be at least two partners.
Answer» Correct Answer - c

Discussion

18.	Which of the following items will not be shown in the debit of profit and Loss Appropriation Account?A. Interest CapitalB. Commission to a partnerC. Interest on DrawingsD. Salary to partners
Answer» Correct Answer - c

Discussion

19.	Interest Payable on the capitals of the partners is charged toA. Profit an Loss Account.B. Profit and Loss Adjustment Account.C. Realisation Account.D. Profit and Loss Appropriation Account.
Answer» Correct Answer - d

Discussion

20.	In case of fixed capitals , partners will haveA. credit balance in their Capital Accounts.B. debit balance in their Capital Accounts .C. May have credit or debit balances in their Captial Accounts.D. None of the above.
Answer» Correct Answer - a

Discussion

21.	If date of drawing is not geven , interest is calculated forA. 12 Months.B. 7 Months.C. 6 Months.D. 3 Months.
Answer» Correct Answer - c

Discussion

22.	If a partner draws equal amount in the beginning of each month , interest is charged forA. 6 months.B. `5^1//2` Months.C. `6^1//2` Months .D. 5 months
Answer» Correct Answer - c

Discussion

23.	The liability of the partners in a partnership firm under indian Partnership Act , 1932 isA. Limited.B. Unlimited.C. No Liability.D. Dedpending on the situation.
Answer» Correct Answer - b

Discussion

24.	In the absence of the partnership Deeddd, interest on CapitalA. is allowed @6%per annum.B. is allowed @10%per annum.C. is allowed at the borrowing rate.D. is not allowed.
Answer» Correct Answer - d

Discussion

25.	Current Accounts of partners are maintained ifA. capitals are fixed.B. capitals are fluctuating.C. Both (a) and (b)D. None of these.
Answer» Correct Answer - a

Discussion

26.	In the absence of partnership Deed , partners are paid remunerationA. `@` Rs. 10,000 per partner per month.B. `@` Rs. 20,000 per partner per month.C. `@` Rs. Per partner per month.D. None of the above.
Answer» Correct Answer - d

Discussion

27.	When guarantee is given to a partner by the other partners, deficiency on such guarantee will be borne byA. All of the other partners.B. Partnership firm.C. Partners who gave the guarantee.D. None of these.
Answer» Correct Answer - c

Discussion

28.	The ratio in which old partners agree to surrender their shares in profit in favour of new partner is calledA. sacrificing ratio.B. Gaining Ratio.C. Profits - sharing Ratio.D. Capital Ratio.
Answer» Correct Answer - a

Discussion

29.	The agreement among the partners is calledA. Partnership Deed.B. Partnership bye laws.C. Partnership constitution.D. Any of these.
Answer» Correct Answer - a

Discussion

30.	At the time of change in profit- sharing ratio, sacrificing ratio is determined so thatA. assets and liabilites are shown at their present value.B. gaaining partner is not put to an advantage and sacrificing partner is not put to disadvantage and vice versa.C. gaining partner can compensate the sacrificing partner for the sacrifice of profit share.D. None of the above.
Answer» Correct Answer - c

Discussion

31.	AB & Co. has 50 partners . It wanted to admit a new partner , Can it do so ?A. Yes.B. No.C. Yes , if all the partners agree.D. None of these.
Answer» Correct Answer - b

Discussion

32.	If the existing profit- sharing ratio among A , B and C of `3 : 2 : 1` is changed to `1 : 2 : 3`, then the partner (s) whose share will be unaffected is/ areA. A.B. B.C. C.D. A and C.
Answer» Correct Answer - b

Discussion

33.	Any change in the relationship of existing partners which result in an end of the existing agreement and enforces making of a new agreement is calledA. Revaluation of partnership.B. Reconstitution of partnership.C. Realisation of Partnership.D. None of these.
Answer» Correct Answer - b

Discussion

34.	A, B and C are partners sharing profits in the ratio of `5 : 3 : 2` . They decide to share to future profits in the ration of `2 : 3 : 5`. What will be the accounting treatment Workmen Compensation Reserve appearing in the Balance Sheet on that date when no information is available for the same?A. Distributed to the partners in their Capital ratio.B. Distributed to the partners in their new profit - sharing ratio.C. Distributed to the partners in their old profit - sharing ratio.D. Carried forward to Balance Sheet.
Answer» Correct Answer - c

Discussion

35.	X and Y are partners sharing profits in the ratio of `3 : 2`. Z is admitted for `1//4th` share in profit which he acquires equally from X and Y . The new ratio beA. `9 : 6 : 5`B. `19 : 11 : 10`.C. `3 : 3 : 2 `.D. None of these.
Answer» Correct Answer - b

Discussion

36.	X,Y and Z are partners , Sharing profits in the ratio of `2 : 2 : 1` , Y died on 30 th june , 2019 and profit for the accounting year 2018-19 was Rs. 36,000. How much share of profit will be credited to Y, for the period 1st April , 2019 to 30th june , 2019?A. Rs.3,000B. Rs. 2,400C. Rs. 3,600D. None of these.
Answer» Correct Answer - c

Discussion

37.	Retiring partner is compensated by the continuing partners in theirA. Gaining Ratio.B. Capital Ratio.C. Sacrificing Ratio.D. Profit - sharing Ratio.
Answer» Correct Answer - a

Discussion

38.	Claim of the retiring partner is payable in the following form :A. Fully in cash.B. Fully transferred to loan Account to be paid later with some interest on it.C. Partly in cash and party as loan repayable later with agreed interest.D. Any of the above.
Answer» Correct Answer - d

Discussion

39.	A,B and C are the partners sharing profits in the ratio `3 : 2 : 1`,C retires . If A and B purchase the share of retiring partner equally , what will be new profit - sharing ratio ?A. `7 : 5`B. `3 : 2`C. `1 :1`D. None of these.
Answer» Correct Answer - a

Discussion

40.	Refer to Q. 10 calculate Gain (profit) on sale of Machinery.A. Rs.6,000.B. Rs.5,000.C. Rs.10,000.D. None of these.
Answer» Correct Answer - b

Discussion

41.	ABC Ltd.has Machinery written down value of which on 1st April, 2018 was Rs. 8,60,000 and on 31 st March , 2019 was Rs.9,50,000.Depreciation for the year was Rs.40,000 , In the beginning of the year , a part of machinery was sold for Rs.25,000 , which had a written down value of Rs.20,000 . Calculate Cash Flow from Investing Activities.A. Rs.1,25,000B. Rs.(1,25,000)C. Rs.2,50,000.D. Rs.(2,50,000)
Answer» Correct Answer - b

Discussion

42.	Anurag Ltd. Is to redeem its debentures of nominal (face) value Rs.2,50,000 each on 30th September , 2018, 31st December , 2018 ,31st March , 2019 and 30th june, 2019. the amount to be invested in Debenture Redemption Investment on or before 30th April , 2018 should beA. Rs.37,500.B. Rs.1,50,000.C. Rs.2,50,000.D. Rs.1,12,500.
Answer» Correct Answer - d

Discussion

43.	Refer to Q. 10 calculate the amount of purchase of Machinery.A. Rs.1,50,000.B. Rs.3,00,000C. Rs.4,50,000D. Rs.50,000.
Answer» Correct Answer - a

Discussion

44.	Exe Ltd. Has balance in Provision for Tax Account of Rs. 50,000 as on 31st March , 2018 and 2019 respectively . It made a provision for tax during the year of Rs. 65,000. the amount of tax paid during the year wasA. Rs.50,000.B. Rs.60,000.C. Rs.40,000.D. None of these.
Answer» Correct Answer - c

Discussion

45.	Choose NPO from the following :A. Reliance Industries LimitedB. Indian Hockey FederationC. Infosys Ltd.D. None of These.
Answer» Correct Answer - b

Discussion

46.	Legacy Donation received by NPO to be used for specific purpose is accounted asA. Revenue Receipt.B. Capital Receipt.C. As an Assert.D. None of These.
Answer» Correct Answer - b

Discussion

47.	Receipts and Payments Account is prepared onA. Cash BasisB. Time Basis.C. Accrual Basis.D. None of These.
Answer» Correct Answer - a

Discussion

48.	General Donation received by NPO is shown in theA. Credit side of income and Expenditure Account.B. Debit side of Income and Expenditure Account.C. Liabilities sids of Balance Sheet .D. Assets side of the Balance Sheet.
Answer» Correct Answer - a

Discussion

49.	Payment of Income Tax is shown asA. Operating Activities.B. Investing ActivitiesC. Financing Activites.D. None of these.
Answer» Correct Answer - a

Discussion

50.	Income and Expenditure Account is aA. Real Account.B. Nominal Account.C. Personal AccountD. None of These.
Answer» Correct Answer - b

Discussion

Explore topic-wise InterviewSolutions in .

Which of the following is not part of cash Equivalents?A. Cash at BankB. Current InvestmentsC. Marketable SecuritiesD. All of these.

The provisions of the Companies Act , 2013 in respect of redemption of debentures are to protect the interest ofA. Debentureholders.B. Creditors.C. Shareholders.D. Bankers.

Fast Internet Ltd. Issued 10,000 , `7%` Debentures of Rs.100 each at a discount of Rs.6 on 1st Ocyober, 2018. These debentures are redeemable at a premium of Rs.4 .Interest for the year ended 31st March , 2019 will beA. Rs.65,800.B. Rs.32,900.C. Rs.70,000.D. Rs.35,000.

Apple Computers Ltd. Issued 10,000, `7%` Debentures of Rs.100 each at a discount of Rs.6 on 1st October, 2018. Interest for the year ended 31st March , 2019 will beA. Rs.65,800.B. Rs.32,900.C. Rs.70,000.D. Rs.35,000.

In case debentures of Rs.10,000 are issued at par but redeemable at a premium of `10%` the premium payable is debited toA. Debentures Suspense Account.B. Premium on Redemption of Debentures Account.C. Loss on Issue of Debentres Account.D. Both (a) and (c ).

Luxor pens Ltd. Issued 10,000, `7%` Debentures of Rs.100 each at a discount of Rs.4 redeemable at a premium of Rs. 6 .It will write off Loss on Issue of DebenturesA. from Securities Premium Reserve.B. from Statement of profit and loss.C. Any of the above.D. None of these.

H & S Ltd. Has outstanding 10,000`8%` Debentures of Rs.100 each that are redeemable at premium of Rs.10 each Out of these, 5,000 debentures are to be redeemed on 31st December , 2018. Debenture Redemption Reserve should beA. Rs.1,37,500.B. Rs.1,25,000.C. Rs.2,50,000.D. Rs.2,75,000.

Top Ramen Ltd. Decides to redeem 1,000, `10%` Debentures of Rs.100 each redeemable at `10%` premium. The company will have to invest in specified securities at leastA. Rs.15,000.B. Rs.16,500.C. Rs.25,000D. Rs.27,500.

A company has issued 5,000, `8%` Debentures of Rs.100 each at a premium of Rs.10. the prefix `8%` isA. the rate of interest payable on the debentures.B. to distinguish from other debentures issued by the company.C. Both (a) and (b)D. None of these.

Debentures are shown in the Balance Sheet of a company under the head ofA. Non - current Liabilites.B. Current Liabilities.C. Share Capital.D. None of these.

Goodwill isA. an intagible assert.B. a fictitious asset.C. Both (a) and (b)D. None of these.

Which of the following is not an feature of partnership?A. An agreement , oral or written , should exist among the partners.B. Agreement should be to carry on lawful business.C. All the partner should contribute capital in the firm.D. There should be at least two partners.

Which of the following items will not be shown in the debit of profit and Loss Appropriation Account?A. Interest CapitalB. Commission to a partnerC. Interest on DrawingsD. Salary to partners

Interest Payable on the capitals of the partners is charged toA. Profit an Loss Account.B. Profit and Loss Adjustment Account.C. Realisation Account.D. Profit and Loss Appropriation Account.

In case of fixed capitals , partners will haveA. credit balance in their Capital Accounts.B. debit balance in their Capital Accounts .C. May have credit or debit balances in their Captial Accounts.D. None of the above.

If date of drawing is not geven , interest is calculated forA. 12 Months.B. 7 Months.C. 6 Months.D. 3 Months.

If a partner draws equal amount in the beginning of each month , interest is charged forA. 6 months.B. `5^1//2` Months.C. `6^1//2` Months .D. 5 months

The liability of the partners in a partnership firm under indian Partnership Act , 1932 isA. Limited.B. Unlimited.C. No Liability.D. Dedpending on the situation.

In the absence of the partnership Deeddd, interest on CapitalA. is allowed @6%per annum.B. is allowed @10%per annum.C. is allowed at the borrowing rate.D. is not allowed.

Current Accounts of partners are maintained ifA. capitals are fixed.B. capitals are fluctuating.C. Both (a) and (b)D. None of these.

In the absence of partnership Deed , partners are paid remunerationA. `@` Rs. 10,000 per partner per month.B. `@` Rs. 20,000 per partner per month.C. `@` Rs. Per partner per month.D. None of the above.

When guarantee is given to a partner by the other partners, deficiency on such guarantee will be borne byA. All of the other partners.B. Partnership firm.C. Partners who gave the guarantee.D. None of these.

The ratio in which old partners agree to surrender their shares in profit in favour of new partner is calledA. sacrificing ratio.B. Gaining Ratio.C. Profits - sharing Ratio.D. Capital Ratio.

The agreement among the partners is calledA. Partnership Deed.B. Partnership bye laws.C. Partnership constitution.D. Any of these.

AB & Co. has 50 partners . It wanted to admit a new partner , Can it do so ?A. Yes.B. No.C. Yes , if all the partners agree.D. None of these.

If the existing profit- sharing ratio among A , B and C of `3 : 2 : 1` is changed to `1 : 2 : 3`, then the partner (s) whose share will be unaffected is/ areA. A.B. B.C. C.D. A and C.

Any change in the relationship of existing partners which result in an end of the existing agreement and enforces making of a new agreement is calledA. Revaluation of partnership.B. Reconstitution of partnership.C. Realisation of Partnership.D. None of these.

X and Y are partners sharing profits in the ratio of `3 : 2`. Z is admitted for `1//4th` share in profit which he acquires equally from X and Y . The new ratio beA. `9 : 6 : 5`B. `19 : 11 : 10`.C. `3 : 3 : 2 `.D. None of these.

Retiring partner is compensated by the continuing partners in theirA. Gaining Ratio.B. Capital Ratio.C. Sacrificing Ratio.D. Profit - sharing Ratio.

Claim of the retiring partner is payable in the following form :A. Fully in cash.B. Fully transferred to loan Account to be paid later with some interest on it.C. Partly in cash and party as loan repayable later with agreed interest.D. Any of the above.

A,B and C are the partners sharing profits in the ratio `3 : 2 : 1`,C retires . If A and B purchase the share of retiring partner equally , what will be new profit - sharing ratio ?A. `7 : 5`B. `3 : 2`C. `1 :1`D. None of these.

Refer to Q. 10 calculate Gain (profit) on sale of Machinery.A. Rs.6,000.B. Rs.5,000.C. Rs.10,000.D. None of these.

Refer to Q. 10 calculate the amount of purchase of Machinery.A. Rs.1,50,000.B. Rs.3,00,000C. Rs.4,50,000D. Rs.50,000.

Exe Ltd. Has balance in Provision for Tax Account of Rs. 50,000 as on 31st March , 2018 and 2019 respectively . It made a provision for tax during the year of Rs. 65,000. the amount of tax paid during the year wasA. Rs.50,000.B. Rs.60,000.C. Rs.40,000.D. None of these.

Choose NPO from the following :A. Reliance Industries LimitedB. Indian Hockey FederationC. Infosys Ltd.D. None of These.

Legacy Donation received by NPO to be used for specific purpose is accounted asA. Revenue Receipt.B. Capital Receipt.C. As an Assert.D. None of These.

Receipts and Payments Account is prepared onA. Cash BasisB. Time Basis.C. Accrual Basis.D. None of These.

General Donation received by NPO is shown in theA. Credit side of income and Expenditure Account.B. Debit side of Income and Expenditure Account.C. Liabilities sids of Balance Sheet .D. Assets side of the Balance Sheet.

Payment of Income Tax is shown asA. Operating Activities.B. Investing ActivitiesC. Financing Activites.D. None of these.

Income and Expenditure Account is aA. Real Account.B. Nominal Account.C. Personal AccountD. None of These.