Question : Accounts must be codified in order to:
Option 1: maintain a hierarchy between groups and components
Option 2: process data more quickly and prepare final accounts
Option 3: keep data and information safe
Option 4: none of the above.
Correct Answer: maintain a hierarchy between groups and components
Solution : Accounts must be codified in order to maintain a hierarchy between groups and components. Hence, the correct option is 1.
Question : Sharma, Verma and Goyal are partners in a firm. On 1st April 2012 the balances in their Capital Accounts were as follows:
Sharma Rs. 4,00,000; Verma Rs. 4,20,000 and Goyal Rs. 3,70,000. The firm closes its accounts every year on 31st March. Verma died on 30th September 2012. In the event of the death of any partner following are the provisions in the Partnership Deed:
(i) Interest on Capital will be calculated at the rate of $10 \%$ p.a.
(ii) The deceased partner; 's legal representative will be paid Rs. 35,000 for his share of goodwill.
(iii) The firm had a Reserve Fund of Rs. 2,10,000. The deceased partner will be paid his share in the Reserve Fund.
(iv) His share of profit till the date of death will be calculated on the basis of sales. It is also specified that the sales during the year 2011-12 were Rs. $15,00,000$. The sales from 1st April 2012 to 30th September 2012 were Rs. 3,00,000. The profit of the firm for the year ending 31st March 2012 was Rs. 3,00,000.
Question:
Amount of Interest on capital will be
Option 1: Rs 24,000
Option 2: Rs 21,000
Option 3: Rs 20,000
Option 4: None of the above
Correct Answer: Rs 21,000
Solution : Answer = Rs 21,000
Verma's capital a/c | |||
To Verma's executor A/c (b/f) | 5,66,000 | By Bal b/d | 4,20,000 |
By IOC | 21,000 | ||
($4,20,000 \times \frac{10}{100} \times \frac{6}{12}$) | |||
By Reserve fund | 70,000 | ||
($2,10,000 \times \frac{1}{3}$) | |||
By Sharma & Goyal capitals A/c | 35,000 | ||
By P & L suspense A/c | 20,000 | ||
5,66,000 | 5,66,000 |
$\frac{3,00,000}{15,00,000}$×3,00,000= 60,000$\times \frac{1}{3}$= 20,000.
Hence, the correct option is 2.
Question : Show how will you deal with the following items in the final accounts of a club :Rs.
Sports Fund 15,000
Sports Fund Investments 30,000
Income from Sports Fund Investments 1500
Donations for Sports Fund 12,000
Sports Prizes awarded 7,000
Expenses on Sports events 4,000
Option 1: Liability side: Sports Fund Rs. 17,500; Assets side: Sports Fund Investments Rs. 30,000
Option 2: Liability side: Sports Fund Rs. 14,500; Assets side: Sports Fund Investments Rs. 30,000
Option 3: Liability side: Sports Fund Rs. 20,500; Assets side: Sports Fund Investments Rs. 30,000
Option 4: None of the above
Correct Answer: Liability side: Sports Fund Rs. 17,500; Assets side: Sports Fund Investments Rs. 30,000
Solution : An Extract Balance Sheet
Liabilities | Amount | Assets | Amount |
Sports fund |
15000 | ||
Sports Fund Investment |
30000 | ||
(+) Donation for Sports Fund |
12000 | ||
27000 | |||
(-) Sports | (7000) | ||
Prize awarded | 2000 | ||
(+) Int on | 1500 | ||
Sports Fund Investment |
21500 | ||
(-) Exp on (4000) Sports event |
(4000) | ||
17,500 |
Answer = Liability side: Sports Fund Rs. 17,500; Assets side: Sports Fund Investments Rs. 30,000.
Hence, the correct option is 1.
Question : Assertion (A): Hari and Mohan are equal partners. They admit Kunal as a partner for 1/4th share. The value of assets was increased by Rs 1,00,000 and an unrecorded liability of Rs 40,000 was brought into books, The gain (profit) of Rs 60,000 will be credited in the capital accounts of Hari and Nimrat equally.
Reason (R): Gain (profit) or loss on revaluation of assets and reassessment of liabilities is credited or debited to the Capital Accounts of old partners in their old profit-sharing ratio.
In the context of the above two statements, which of the following is correct?
Option 1: Assertion (A) and Reason (R) are correct but the Reason (R) is not the correct explanation of Assertion (A).
Option 2: Both, Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation Assertion (A).
Option 3: Assertion (A) is correct but the Reason (R) is not correct.
Option 4: Both Assertion (A) and Reason (R) are not correct.
Correct Answer: Both, Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation Assertion (A).
Solution : Answer = Both, Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
Both Assertion and Reason are correct and Reason is the correct explanation of assertion.
Gain and lose on revaluation are distributed in old partners in their old profit-sharing ratio.
Hence, the correct option is 2.
Question : A and T are equal partners with fixed Capitals of Rs. 2,00,000 and Rs. 1,00,000, respectively. After closing the accounts for the year ending 31st March 2019. It was discovered that interest on capital 8% p.a. was omitted to Be provided. In the adjustment Entry:
Option 1: A will be credited By Rs. 16,000 and
T will be debited by Rs. 8,000
Option 2: A will be debited By Rs. 16,000 and
T will be debited by Rs. 8,000
Option 3: A will be credited By Rs. 4,000 and
T will be debited by Rs. 4,000
Option 4: A will be debited by Rs. 4,000 and
T will Be credited by Rs. 4,000.
Correct Answer: A will be credited By Rs. 4,000 and
T will be debited by Rs. 4,000
Solution : Answer = A will be credited By Rs 4,000 and T will be debited by Rs 4,000.
Interest on capital @ 8% p.a. | A | T |
Firm
|
|||
Dr | Cr | Dr | Cr | Dr | Cr | |
- | 16,000 | - | 8,000 | 24,000 | 24,000(loss) | |
12,000 | 12,000 | 24,000 | 24,000 | |||
Loss (1:1) | 12,000 | 16,000 | 12,000 | 8,000 | ||
4,000(Cr) | 4,000(Dr) |
Hence, the correct option is 3.
Question : The largest committee of Parliament of India is
Option 1: Public Accounts Committee
Option 2: Estimates Committee
Option 3: Committee on Public Undertakings
Option 4: Joint Parliamentary Committee
Correct Answer: Estimates Committee
Solution : The correct answer is Estimates Committee.
The largest committee in the parliament is called the Estimates Committee. This committee's duties include providing reports on spending and the economy, as well as recommendations for actions that could be taken to strengthen the economy and related laws. To improve administration efficiency and the economy, it analyses the projected expenditures and revenues of different departments and makes alternative policy recommendations.
Question : A, B and S were partners sharing profits in the ratio 2: 2: 1. On July 1, 2017, Shreya died. The books of accounts are closed on March 31 every year. Sales for the year 2016-17 amounted to Rs.5,00,000 and that from 1st April to 30th June 2017 were Rs. 1,40,000. The rate of profit during the past three years had been 10% on sales. Since S's legal representative was her only son, who is specially abled, it was decided that the profit for the purpose of settling S's account is to be calculated as 20% of sales.
Calculate S's share of profits till the date of her death and pass the necessary journal entry for the same.
Option 1: Debited profit and loss account by Rs 5,600 and credited S's capital account
Option 2: Debited profit and loss suspense account by Rs 5,600 and credited S's account
Option 3: Debited S's capital account and credited profit and loss suspense account
Option 4: None of the above
Correct Answer: Debited profit and loss suspense account by Rs 5,600 and credited S's account
Solution : Answer = Debited profit and loss suspense account by Rs 5600 and credited S's account
Sales (IApril to Dure 30,2017)=1,40,000
Profit= $1,40,000 \times \frac{20}{100}$= 28,000.
Shreys's share= $28000 \times \frac{1}{5}$= 5,600
Protit and cass suspense AlC or 5600
To Shreya's Capital AIC - 5600
Hence, the correct option is 2.
Question : Which of the following claims concerning the cost of education is true?
Option 1: In India, the majority of total educational spending is spent at the elementary level.
Option 2: In India, tertiary education accounts for the majority of all educational spending.
Option 3: In India, secondary schooling accounts for the majority of all educational spending.
Option 4: The majority of India's total educational spending is spent at higher levels.
Correct Answer: In India, the majority of total educational spending is spent at the elementary level.
Solution : Higher education accounts for the least amount of the total budget and elementary education for the most. The government places more focus on elementary education because it is the foundational or first level of schooling.
Hence option a is the correct answer.
Question : P, Q and R are equal partners with fixed capitals of Rs. 5,00,000, Rs. 4,00,000 and Rs. 3,00,000, respectively. After closing the accounts for the year ending 31st March 2019. It was discovered that interest on capital @ 7% instead of 9% p.a. In the adjustment entry.
Option 1: P will be credited by Rs. 2,000 and
Q will be debited by Rs. 2,000.
Option 2: P will be debited by Rs. 2,000 and
Q will be credited by Rs. 2,000
Option 3: P will be debited by Rs. 2,000 and
R will be credited by Rs. 2,000.
Option 4: P will Be credited By Rs. 2,000 and
R will Be debited by Rs. 2000
Correct Answer: P will Be credited By Rs. 2,000 and
R will Be debited by Rs. 2000
Solution : Answer = P will Be credited By Rs 2,000 and R will Be debited by Rs 2000
R's current a/c Dr 2,000
To P's current a/c 2,000
Interest on capital @ 9% p.a. | P | Q | R | Firm | ||||
Dr | Cr | Dr | Cr | Dr | Cr | Dr | Cr | |
- | 10,000 | - | 8,000 | - | 6,000 | 24,000 | ||
loss(1:1:1) | 8,000 | - | 8,000 | - | 8,000 | - | 24,000(loss) | |
8,000 | 10,000 | 8,000 | 8,000 | 8,000 | 6,000 | 24,000 | 24,000 | |
2,000(Cr) | 2,000(Dr) |
Hence, the correct option is 4.
Question : What is a significant difference between British and Indian accounts of the Revolt of 1857 in terms of their focus?
Option 1: British accounts focus on military strategies, while Indian accounts focus on social impact
Option 2: British accounts emphasize the role of technology, while Indian accounts highlight traditional warfare
Option 3: British accounts portray the revolt as a criminal act, while Indian accounts view it as a struggle for freedom
Option 4: British accounts are more factual, while Indian accounts are more emotional
Correct Answer: British accounts portray the revolt as a criminal act, while Indian accounts view it as a struggle for freedom
Solution : Correct Option: 3
Explanation: A significant difference between British and Indian accounts of the Revolt of 1857 is that British accounts often portray the revolt as a criminal act or a mutiny, while Indian accounts tend to view it as a legitimate struggle for freedom from colonial oppression.