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Asked/Added Questions From NCERT: Accountancy


Question 1. Asked on :22 October 2020:07:10:41 PM

Which accounting principle states that the same amount of time must be used for each accounting period?


-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

Anjali Kumari
Matching principle is the accounting principle that requires that the expenses incurred during a period be recorded in the same period in which the related revenues are earned. This principle recognizes that businesses must incur expenses to earn revenues.

-Answered by Anjali Kumari On 23 October 2020:06:31:13 PM


Question 2. Asked on :22 October 2020:07:09:07 PM

What is it called when your expenses are greater than your revenues on an income statement?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

Anjali Kumari
A net loss occurs when total expenses are higher than total revenue. This is the opposite of net profit and is usually recorded at the bottom line of the income statementA loss can also refer to a cost that doesn't relate to normal business operations.

-Answered by Anjali Kumari On 23 October 2020:06:40:32 PM


Question 3. Asked on :22 October 2020:07:05:29 PM

 What is the amount collected from the sale of goods and services called?


-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

Anjali Kumari
 Value of Supply of Goods or ServicesValue of supply means the money that a seller would want to collect the goods and services supplied. The amount collected by the seller from the buyer is the value of supply.

-Answered by Anjali Kumari On 23 October 2020:06:38:03 PM


Question 4. Asked on :22 October 2020:07:02:48 PM

What does the abbreviation GAAP stand for?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

Anjali Kumari
Generally accepted accounting principles (GAAP) refer to a common set of accounting principles, standards, and procedures issued by the Financial Accounting Standards Board (FASB). Public companies in the United States must follow GAAP when their accountants compile their financial statements.

-Answered by Anjali Kumari On 23 October 2020:06:41:56 PM


Question 5. Asked on :22 October 2020:06:59:51 PM

What do you mean by Tangible Real Accounts and Intangible Real Accounts?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh

Tangible Real Account – Those assets which can be touched and have a physical existence are defined as tangible real accounts.

Example  Machinery A/c, Vehicle A/c, Building A/c

Journal Entry –

  • Debit what comes in
  • Credit what goes out

Intangible real account – Those assets which have some monetary values but can’t be touched are referred to as intangible real accounts.

Example – Goodwill, Patents, Copyrights

Journal Entry –

  • Debit what comes in
  • Credit what goes ou

-Answered by nisha sheikh On 22 October 2020:07:01:47 PM


Question 6. Asked on :22 October 2020:06:58:16 PM

 What is section 209 (4A) in the Companies Act, 1956?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh

Section 209(4A) in The Companies Act, 1956 states that:

Every company must preserve the books of accounts, together with the vouchers relevant to any entry in such books of account, in good order, relating to a period of not less than 8 years immediately preceding the current year.

So of the Current Year Ending is – March 2020 then, the company needs to store the accounts and vouchers for the following years:

March 2019, 2018, 2017,……, to 2012

-Answered by nisha sheikh On 22 October 2020:06:59:30 PM


Question 7. Asked on :06 October 2020:03:49:53 PM

What do you mean by Tangible Real Accounts and Intangible Accounts?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh

Tangible Real Account – Those assets which can be touched and have a physical existence are defined as tangible real accounts.

Example  Machinery A/c, Vehicle A/c, Building A/c

Intangible real account – Those assets which have some monetary values but can’t be touched are referred to as intangible real accounts.

Example – Goodwill, Patents, Copyrights

-Answered by nisha sheikh On 06 October 2020:03:51:23 PM


Question 8. Asked on :06 October 2020:03:47:04 PM

What is the Accounting Information System (AIS)?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
AIS is a computer-based method used for tracking accounting activity and involves – collecting, storing, processing, organizing, and summarizing accounting data and transactions. It also helps in cumulating financial transactions and essential financial reports, which helps stakeholders in decision making. 

-Answered by nisha sheikh On 06 October 2020:03:48:52 PM


Question 9. Asked on :06 October 2020:03:30:16 PM

What are the different types of liquidity ratios in Accounting?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh

  1. Current ratios 
  2. Net-Working Capital Ratio
  3. Quick Ratio
  4. Super Quick Ratio
  5. The Operating cash flow Ratio

-Answered by nisha sheikh On 06 October 2020:03:32:24 PM


Question 10. Asked on :06 October 2020:03:25:34 PM

What do you mean by DPO (Days Payable Outstanding)?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
DPO or Days Payable Outstanding refers to the average number of days which ideally a company takes to clear its credit purchase in regards to the outstanding suppliers. Most of the time, DPO is a monthly task for a business, however, each month the day of clearing the outstanding payment might differ, hence the average is taken out to estimate the payment period.

-Answered by nisha sheikh On 06 October 2020:03:29:37 PM


Question 11. Asked on :06 October 2020:12:18:57 PM

Write the types of Drawings?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh

1. Regular Drawings

2. Irregular Drawings

-Answered by nisha sheikh On 06 October 2020:12:26:48 PM


Question 12. Asked on :06 October 2020:12:17:34 PM

Write the difference between Drawings against Capital and Drawings against Profit?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh

 Basis 

Drawings Against Profit

Drawings Against Capital

1.Where Debited 

It is debited to Drawings Account.

It is debited to Capital Account. 

2. Part

It is a part of expected profit.

It is a part of capital. 

3.Effect

It does not reduce capital.

It reduces capital. 

4.Interest on Drawings

It is considerd for calculating interest on drawings.

It is not considerd for calculating interest on drawings. 

5.Interest on Capital

It is not considerd for calculating interest on capital.

It is considerd for calculating interest on capital. 


-Answered by nisha sheikh On 06 October 2020:12:51:21 PM


Question 13. Asked on :06 October 2020:12:16:29 PM

Write the meaning of Drawings against Profit?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh

Drawings against capital means withdrawal by a Partner out of his or her capital. Interest on capital is allowed on the capital for the period it is used.Therefore, interest is not allowed ,i.e., paid on the amount of capital withdrawn.

-Answered by nisha sheikh On 06 October 2020:12:33:59 PM


Question 14. Asked on :06 October 2020:12:15:19 PM

What is the meaning of Drawings against Capital?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh
Drawings against capital means withdrawal by a Partner out of his or her capital. Interest on capital is allowed on the capital for the period it is used.Therefore, interest is not allowed ,i.e., paid on the amount of capital withdrawn.

-Answered by nisha sheikh On 06 October 2020:12:39:58 PM


Question 15. Asked on :06 October 2020:12:13:59 PM

Define Drawings?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh

Drawings means the amount withdrawn, in cash or in kind, by partners for their personal use.

-Answered by nisha sheikh On 06 October 2020:12:41:06 PM


Question 16. Asked on :06 October 2020:12:11:26 PM

By Which Methods Partner's capital Accounts may be maintained?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh
Capital accounts of partners of a firm may be maintained by following two methods

(i) Fixed capital method and

(ii) Fluctuating capital method.

-Answered by nisha sheikh On 06 October 2020:03:23:05 PM


Question 17. Asked on :06 October 2020:12:09:18 PM

 Write the difference between Profit and Loss Account and Profit and Loss Appropriation Account?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh

 

Basis 

Profit and Loss Account

Profit and Loss Appropriation Account 

1. 

Stages of preparation

It is prepared after Trading Account and Therefore,starts with Gross Profit and Gross Loss transffered from Trading Account. 

It is prepared after Profit and Loss Account and therefore, starts with Net Profit or Net Loss as transferred from the Profit and Loss Account.

2. 

Objective 

It determines Net Profit earned or Net Loss Incurred during the Accounting Year.

It shows Appropriation of Net Profit i.e., distribution of Net Profit for the Accounting Period among the Partners.

3. 

Nature of Items 

It is debited with the expenses and credited with the income, not being business income to determine net profit for accounting period.

It is debited with the items of appropriation of profit like salary, commission, interest on capital, transfer to reserve, etc. and credited with the items of income being debited to Partners’ Capital Account or Current Accounts such as interest on drawings

4. 

Partnership Deed

This account is not guided by the Partnership Deed or Agreement.

This account is prepared as guided by the Partnership Deed or Agreement or provisions of Indian Partnership Act, 1932.

5. 

Matching Principle 

It follows the Matching Principle where revenue is matched against expense.

It does not follow the Matching Principle.

-Answered by nisha sheikh On 06 October 2020:03:06:40 PM


Question 18. Asked on :06 October 2020:12:07:51 PM

Write the features of Profit and Loss Appropriation Account?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh
Features of Profit and Loss Appropriation Account:

  1. It is an extension of the Profit and Loss Account.
  2. It is prepared only by the partnership Firms.
  3. It shows the appropriation of Net Profit or Loss for the Accounting period.
  4. Entries in this account are passed giving effect to the Partnership Deed.

-Answered by nisha sheikh On 07 October 2020:11:08:32 AM


Question 19. Asked on :06 October 2020:12:05:55 PM

 What is the nature of Interest on Partner's Loan?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh

Interest on Partner's loan is a charge against Profit. 

-Answered by nisha sheikh On 07 October 2020:11:14:05 AM


Question 20. Asked on :06 October 2020:12:05:08 PM

 Write the Disadvantages of LLP?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh

Disadvantages of LLP:

  • Any act of the partner without the knowledge of other partners may bind the LLP.
  • LLP cannot raise money from the public.
  • Venture capital firms generally prefer not to invest in LLPs. Private Limited is preferred over LLP.

-Answered by nisha sheikh On 07 October 2020:11:16:27 AM


Question 21. Asked on :06 October 2020:12:04:22 PM

 Write the beneits of LLP?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh

Benefits of LLP:

  • It is more flexible as compared to a company to organise internal structure.
  • There is no maximum limit for the number of partners in LLP. In a private limited company, number of shareholders is limited to 200 shareholders excluding past and present employee shareholders.
  • Raising and utilisation of funds depends on the partner' will as against norms precribed in the Companies Act, 2013 as applicable to companies.

-Answered by nisha sheikh On 07 October 2020:11:23:49 AM


Question 22. Asked on :06 October 2020:12:03:12 PM

 Write the characteristics of a LLP?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh
Characteristics of LLP:

  • Separate Legal Entity
  • Minimum Capital
  • Minimum number of Members
  • Audit is not Mandatory.

-Answered by nisha sheikh On 07 October 2020:11:31:45 AM


Question 23. Asked on :06 October 2020:11:55:52 AM

Write the full form of LLP?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh

Limited Liability Partnership.

-Answered by nisha sheikh On 07 October 2020:11:34:12 AM


Question 24. Asked on :06 October 2020:11:52:49 AM

Write some other Important Provisions of the Indian Partnership Act, 1932?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh

Some other Important Provisions of the Indian Partnership Act, 1932: 

  1. If all the partners agree, a minor may be admitted for the benefit of partnership.                           [Sec. 30]
  2. A person may be admitted as a partner either with the contest of all the existing partners or in accordance with an express agreement among the partners.   [Sec. 31]
  3. Registration of the firm is optional and not compulsory.[Sec. 69]

-Answered by nisha sheikh On 07 October 2020:11:35:11 AM


Question 25. Asked on :06 October 2020:11:51:42 AM

 Is it essential to have a Partnerhip Deed?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh

No, It is not essential but desirable to have a Partnership Deed. In case Partnership Deed does not exist, Provisions of the Indian Partnership Act, 1932 will apply. 

-Answered by nisha sheikh On 07 October 2020:11:44:50 AM


Question 26. Asked on :06 October 2020:11:48:08 AM

 Write the importance of Partnership Deed?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh

  1. It governs the rights, duties and liabilities of each partner.
  2. Disputes arising, if any, among the partners are settled on the basis of Partnership Deed, it being a written contract.

-Answered by nisha sheikh On 07 October 2020:12:17:55 PM


Question 27. Asked on :06 October 2020:11:46:58 AM

 Write any five Rights of Partners?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh

  1. Right to take part in the Conduct of the Business.
  2. Right to be Consulted.
  3. Right to have Access to Books.
  4. Right to Share Profits.
  5. Right to Interest on Capital.

-Answered by nisha sheikh On 07 October 2020:12:21:13 PM


Question 28. Asked on :06 October 2020:11:45:03 AM

Write the essential features of Partnership?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh

  1. Two or more Persons: There must be atleast two persons to form a Partnership.
  2. Agreement: Partnership comes into existence by an agreement, either written or oral.
  3. Lawful Business: A Partnership is established for a Lawful Business.

-Answered by nisha sheikh On 07 October 2020:12:10:39 PM


Question 29. Asked on :06 October 2020:11:42:09 AM

Define Firm Name?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh
The name under which the business is carried is called Firm Name.

-Answered by nisha sheikh On 07 October 2020:12:07:25 PM


Question 30. Asked on :06 October 2020:11:39:16 AM

 Define Firms?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh

firm is a for-profit business organization.

-Answered by nisha sheikh On 07 October 2020:12:01:22 PM


Question 31. Asked on :06 October 2020:11:34:59 AM

 Define Partners?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh
The persons who have entered into a partnership with one another individually are called Partners.

-Answered by nisha sheikh On 07 October 2020:11:57:49 AM


Question 32. Asked on :06 October 2020:11:26:30 AM

Write the meaning of Partnership?

-Added by nisha sheikh Accountancy » Accounting For Partnership Firms: Fundamentals

Answer:

nisha sheikh

Partnership is the relation between persons who have agreed to share profits of a business carried on by all or any of them acting for all. 

-Answered by nisha sheikh On 07 October 2020:11:51:51 AM


Question 33. Asked on :03 October 2020:11:52:09 AM

 What do you mean by Amortization?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh

Amortization is an accounting concept that is used to gradually write off the cost. Through amortization, over a period of time, one can allocate the cost of any intangible asset. Also, it can be done to repay any loan principal. However, those assets which have an indefinite life like Goodwill can not be amortized.

-Answered by nisha sheikh On 03 October 2020:11:54:21 AM


Question 34. Asked on :03 October 2020:11:49:10 AM

Are you in favour of having Accounting Standards?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh

 I believe that accounting standards contribute to high quality and accurate reporting and ensure reliable financial statements.

-Answered by nisha sheikh On 03 October 2020:11:56:15 AM


Question 35. Asked on :03 October 2020:11:47:35 AM

 What are the various stages of project implementation?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh

There are six steps involved in project implementation, which are –

1. Identifying need

2. Generating and screening ideas

3. Conducting a feasibility study

-Answered by nisha sheikh On 03 October 2020:11:57:22 AM


Question 36. Asked on :03 October 2020:11:45:37 AM

 What is Project Implementation?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
Project implementation is a phase when the plans and visions come into reality. This includes carrying out the tasks to deliver the outputs and monitor the related progress.

-Answered by nisha sheikh On 03 October 2020:11:58:55 AM


Question 37. Asked on :03 October 2020:11:43:20 AM

 Write the name of some common errors in accounting?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh

Some common accounting errors are –

1. Error of omission

2. Error of commission

3. Error of original entry

4. Error of accounting principle

5. Compensating error

6. Error of entry reversal


-Answered by nisha sheikh On 03 October 2020:12:01:01 PM


Question 38. Asked on :03 October 2020:11:42:06 AM

 What is GST ?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
GST or Goods and Service Tax is an indirect tax charged on the value of the service or product sold to a customer. Here the consumers pay the tax to the seller, who thereby deposits the GST to the government.

-Answered by nisha sheikh On 03 October 2020:12:03:17 PM


Question 39. Asked on :03 October 2020:11:40:32 AM

 Explain Contingent Liabilities?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
Contingent Liabilities are potential obligations that may or may not become an actual liability. They may or may not be incurred by an entity, based on the outcome of an uncertain future event, e.g. – If an ex-employee of an ABC company sues it for gender discrimination for any particular sum, the company has a contingent liability. In case the company is found guilty, it will have a liability, and if it is not found guilty, the company will not have an actual liability.

-Answered by nisha sheikh On 03 October 2020:12:04:25 PM


Question 40. Asked on :03 October 2020:11:39:40 AM

 What is a Credit Note?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
 A credit note is a receipt given to a buyer who has returned a product, by the seller/shop. This intimation suggests that the buyer’s account is being credited for the purpose indicated.

-Answered by nisha sheikh On 03 October 2020:12:05:00 PM


Question 41. Asked on :03 October 2020:11:36:50 AM

 What is Debit Note?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
Debit note or debit memorandum is a commercial document sent to a seller, by a buyer, formally requesting a credit note. The original document is sent to the party to whom the goods are being returned and the duplicate copy is kept for office record.

-Answered by nisha sheikh On 03 October 2020:12:05:31 PM


Question 42. Asked on :03 October 2020:11:35:17 AM

 What is owner's equity?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
The owner’s equity is a business owner’s claim against the assets of the business. It is also called the capital of the business and is calculated by subtracting equity of creditors from the total equity.

-Answered by nisha sheikh On 03 October 2020:12:05:53 PM


Question 43. Asked on :03 October 2020:11:34:00 AM

Write the name of different accounting concepts?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh

The most popular accounting concepts are –

1. Accounting Period Concept

2. Business Entity Concept

3. Cost Concept

4. Dual Aspect Concept

5. Going Concern Concept

6. Matching Concept

7. Money Measurement Concept

-Answered by nisha sheikh On 03 October 2020:12:08:18 PM


Question 44. Asked on :03 October 2020:11:31:29 AM

 What are Revenue Recognition and Matching Principle?s

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh

Revenue Recognition Principle – This principle suggests that the revenue should be recognized and recorded when it is realized and earned, no matter when the amount has been paid.

Matching Principle – This principle dictates the companies to report an expense on its income statement the time the related revenues are earned. It is associated with the accrual basis of accounting.

-Answered by nisha sheikh On 03 October 2020:12:07:56 PM


Question 45. Asked on :03 October 2020:11:30:44 AM

 When does Goodwill Increase?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
Goodwill can be increased through the acquisition of another company as a subsidiary, by paying more than the fair value of its tangible and intangible assets.

-Answered by nisha sheikh On 03 October 2020:12:07:34 PM


Question 46. Asked on :03 October 2020:11:12:49 AM

When do you Capitalize rather than expense a purchase?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
An item’s cost is capitalized is it is expected to be consumed by the company over a long period. This way their economic value does not depreciate.

-Answered by nisha sheikh On 03 October 2020:12:07:15 PM


Question 47. Asked on :03 October 2020:11:11:44 AM

What is bad debt expense?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
Bad debts expense is asset accounts receivable of a company and is considered to be uncollectible accounts expense or doubtful accounts expense.

-Answered by nisha sheikh On 03 October 2020:12:06:54 PM


Question 48. Asked on :01 October 2020:12:30:05 PM

 Write the name of some intangible assets?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh

Intangible assets include –

1. Patents

2. Copyrights

3. Trademarks

4. Brand names

5. Domain names

-Answered by nisha sheikh On 01 October 2020:12:30:56 PM


Question 49. Asked on :01 October 2020:12:28:42 PM

 What is reversing journal entries?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
Reversing entries refer to the journal entries that are made when an accounting period starts. These entries reverse or cancel the adjusting journal entries that were made at the end of the previous accounting period.

-Answered by nisha sheikh On 01 October 2020:12:29:44 PM


Question 50. Asked on :01 October 2020:12:27:20 PM

What is an over accrual?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
It is a situation where the estimate for accrual journal entry is very high, and this may apply to the accrual of revenue or expense.

-Answered by nisha sheikh On 01 October 2020:12:28:26 PM


Question 51. Asked on :01 October 2020:12:22:51 PM

 Differentiate between Provision and Reserve?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh

Provisions – This refers to keeping the money for a given liability. In short, EXPENSES.

Reserves – Refers to retaining some amount from the profit for future use. In short, PROFITS.

-Answered by nisha sheikh On 01 October 2020:12:26:38 PM


Question 52. Asked on :01 October 2020:12:19:12 PM

 Define Partitioning?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
Partitioning refers to the division/subdivision/grouping/regrouping of financial transactions in a given financial year.

-Answered by nisha sheikh On 01 October 2020:12:20:43 PM


Question 53. Asked on :01 October 2020:12:17:41 PM

 What is the difference between consignor and consignee?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh

Consignor – S/he is the shipper of the goods

Consignee – S/he is the recipient of the goods.

-Answered by nisha sheikh On 01 October 2020:12:21:15 PM


Question 54. Asked on :01 October 2020:12:16:36 PM

What are the different types of Depreciation?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh

Depreciation is of two types –

1. Straight Line Method

2. Written Down Value Method

-Answered by nisha sheikh On 01 October 2020:12:21:55 PM


Question 55. Asked on :01 October 2020:12:15:58 PM

 Define Depreciation?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
Depreciation refers to the decreasing value of any asset that is in use.

-Answered by nisha sheikh On 01 October 2020:12:22:33 PM


Question 56. Asked on :01 October 2020:12:05:08 PM

 What is the dual aspect term?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
The dual aspect suggests that every business transaction requires double-entry bookkeeping. This can be understood with the example- If you purchase anything, you give the cash and receive the stuff, and when you sell anything, you lose the stuff and earn the money. This defines the aspects of every transaction.

-Answered by nisha sheikh On 01 October 2020:12:09:34 PM


Question 57. Asked on :01 October 2020:12:02:37 PM

 What is Compound Journal Entry?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
 A compound journal entry is just like other accounting entries; the only difference is that it affects more than two account heads. The compound journal entry has one debit, more than one credits, or more than one of both debits and credits.

-Answered by nisha sheikh On 01 October 2020:12:10:50 PM


Question 58. Asked on :01 October 2020:11:59:52 AM

 Where should you record a cash discount in journal entry?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
A cash discount should be recorded as a reduction of expenses in a cash account.

-Answered by nisha sheikh On 01 October 2020:12:13:42 PM


Question 59. Asked on :01 October 2020:11:51:58 AM

What is the Difference Between Accounts Receivable and Deffered Revenue?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
Accounts receivable is yet-to-be received cash from products or services that are already sold/delivered to customers, whereas, deferred revenue is the cash received from customers for services or goods not yet delivered.

-Answered by nisha sheikh On 01 October 2020:11:59:34 AM


Question 60. Asked on :01 October 2020:11:49:12 AM

 Write the some examples of Liability Account?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh

Some popular examples of liability accounts are 

1. Accounts Payable

2. Accrued Expenses

3. Bonds Payable

4. Customer Deposits

5. Income Taxes Payable

-Answered by nisha sheikh On 01 October 2020:11:57:49 AM


Question 61. Asked on :01 October 2020:11:48:21 AM

 What is GAAP?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
GAAP is the abbreviation for Generally Accepted Accounting Principles (GAAP) issued by the Institute of Chartered Accountants of India (ICAI) and the provisions of the Companies Act, 1956. 

-Answered by nisha sheikh On 01 October 2020:11:57:26 AM


Question 62. Asked on :01 October 2020:11:46:16 AM

 What is Assets minus Liabilities?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
 It stands for an owner’s or a stockholder’s equity.

-Answered by nisha sheikh On 01 October 2020:11:57:00 AM


Question 63. Asked on :01 October 2020:11:28:33 AM

 What are the disadvantages of Double Entry System?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
  • Difficult to find the errors, especially when transactions are recorded in the books
  • In case of any error, extensive clerical labour is required
  • You can’t disclose all the information of a transaction, which is not properly recorded in the journal

-Answered by nisha sheikh On 01 October 2020:11:55:07 AM


Question 64. Asked on :01 October 2020:11:26:58 AM

 What are the different stages of Double Entry System?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh

There are three different stages of the double-entry system, which are –

  • Recording transactions in the accounting systems
  • Preparing a trial balance in respective ledger accounts
  • Preparing final documents and closing the books of accounts

-Answered by nisha sheikh On 01 October 2020:11:54:26 AM


Question 65. Asked on :01 October 2020:11:22:24 AM

 Define the term Material facts?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
These are the documents such as vouchers, bills, debit and credit notes, or receipts, etc. They serve as the base of every account book.

-Answered by nisha sheikh On 01 October 2020:11:26:11 AM


Question 66. Asked on :01 October 2020:11:20:04 AM

 What are Trade Bills?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
 Every transaction is documented and the trade bills are those documents, generated against each transaction.

-Answered by nisha sheikh On 01 October 2020:11:22:05 AM


Question 67. Asked on :30 September 2020:06:39:21 PM

 What is Marginal Cost?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
If there is an increase in the number of units produced, the total cost of output is changed. Marginal cost is that change in the cost of an additional unit of output.

-Answered by nisha sheikh On 01 October 2020:11:19:42 AM


Question 68. Asked on :30 September 2020:06:37:10 PM

 Define Balancing?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
Balancing means equating or balancing both debit and credit sides of a T-account.

-Answered by nisha sheikh On 30 September 2020:06:38:51 PM


Question 69. Asked on :30 September 2020:11:37:26 AM

 What are the Bills Receivable?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh

Bills receivable are the proceeds or payments, which a merchant or a company will be receiving from its customers.

When replying to accounting interview questions, be very specific and don’t speak up generic stuff.

-Answered by nisha sheikh On 30 September 2020:06:36:44 PM


Question 70. Asked on :30 September 2020:11:33:52 AM

 What is Executive Accounting?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
Executive Accounting is specifically designed for service-based businesses. This term is popular in finance, advertising and public relations businesses.

-Answered by nisha sheikh On 30 September 2020:11:35:16 AM


Question 71. Asked on :30 September 2020:11:32:16 AM

 What do you mean by premises?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
 Premises refer to fixed assets presented on a balance sheet.

-Answered by nisha sheikh On 30 September 2020:11:33:24 AM


Question 72. Asked on :30 September 2020:11:28:59 AM

 What is ICAI?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
It is the abbreviation of the Institute of Chartered Accountants in India.

-Answered by nisha sheikh On 30 September 2020:11:31:11 AM


Question 73. Asked on :30 September 2020:11:21:36 AM

 What are some of the ways to estimate bad debts?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
Some of the popular ways of estimating bad debts are – the percentage of outstanding accounts, aging analysis, and percentage of credit sales.

-Answered by nisha sheikh On 30 September 2020:11:28:21 AM


Question 74. Asked on :21 September 2020:10:07:39 AM

 What is the Perpetual Inventory system?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
Perpetual inventory is a methodology that involves recording the sale or purchase of inventory immediately using enterprise asset management software and computerized point-of-sale systems.

-Answered by nisha sheikh On 21 September 2020:10:09:23 AM


Question 75. Asked on :21 September 2020:10:06:05 AM

 What is Departmental Accounting System?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
 It is a type of accounting information system that records all the financial information and activities of the department. This financial information can be used to check the profitability and efficiency of every department.

-Answered by nisha sheikh On 21 September 2020:10:09:49 AM


Question 76. Asked on :21 September 2020:10:03:51 AM

 Which Account is responsible for Interest Payable ?

-Added by nisha sheikh Accountancy » Accounting Gk

Answer:

nisha sheikh
Current liability account is responsible for interest payable.

-Answered by nisha sheikh On 21 September 2020:10:10:51 AM


Question 77. Asked on :21 September 2020:10:02:52 AM

 What do you mean by company's payable cycle?

-Added by nisha sheikh Accountancy » Accounting Gk

Answer:

nisha sheikh
It is the time required by the company to pay all its account payables.

-Answered by nisha sheikh On 21 September 2020:10:11:25 AM


Question 78. Asked on :21 September 2020:09:56:56 AM

 What is Scrap value in Accounting?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
Scrap Value is the residual value of an asset that any asset holds after its estimated lifetime.

-Answered by nisha sheikh On 21 September 2020:09:58:40 AM


Question 79. Asked on :21 September 2020:09:56:08 AM

 What is Fair value Accounting?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
As per fair value accounting, a company has to show the value of all of its assets in terms of price on balance sheet on which that asset can be sold.

-Answered by nisha sheikh On 21 September 2020:10:00:02 AM


Question 80. Asked on :21 September 2020:09:55:30 AM

 What are the Trade Bills?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
These are the bills generated against each transaction. It is a part of documentation procedure for all types of transactions.

-Answered by nisha sheikh On 21 September 2020:10:00:37 AM


Question 81. Asked on :21 September 2020:09:54:25 AM

 What is Off Set Acounting?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
Offset accounting is a process of cancelling an accounting entry with an equal but opposite entry. It decreases the net amount of another account to create a net balance.

-Answered by nisha sheikh On 21 September 2020:10:01:03 AM


Question 82. Asked on :21 September 2020:09:53:29 AM

 What is Retail Banking?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
Retail banking or consumer banking involves a retail client, where individual customers use local branches of larger commercial banks.

-Answered by nisha sheikh On 21 September 2020:10:01:35 AM


Question 83. Asked on :21 September 2020:09:52:24 AM

 What is the meaning of Purchase Return in Accounting?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
As the name suggests, purchase return is a transaction where the buyer of merchandise, inventory or fixed assets returns these defective or unsatisfactory products back to the seller.

-Answered by nisha sheikh On 21 September 2020:10:01:59 AM


Question 84. Asked on :21 September 2020:09:44:57 AM

 What are the Different Branches of Accounting?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh

 There are three branches of accounting –

  • Financial Accounting
  • Management Accounting
  • Cost Accounting

-Answered by nisha sheikh On 21 September 2020:10:02:31 AM


Question 85. Asked on :20 September 2020:07:50:42 PM

 What are Fictitious Assets?

-Added by nisha sheikh Accountancy » Accounting Gk

Answer:

nisha sheikh
Fictitious assets are intangible assets and their benefit is derived over a longer period, for example, goodwill, rights, deferred revenue expenditure, miscellaneous expenses, preliminary expenses, and accumulated loss, among others.

-Answered by nisha sheikh On 20 September 2020:07:51:25 PM


Question 86. Asked on :20 September 2020:07:50:04 PM

 What is Tally Accounting?

-Added by nisha sheikh Accountancy » Accounting Gk

Answer:

nisha sheikh
It is accounting software used by small business and shops to manage routine accounting transactions

-Answered by nisha sheikh On 20 September 2020:07:51:51 PM


Question 87. Asked on :20 September 2020:07:48:48 PM

 What is a Bank Reconciliation Statement?

-Added by nisha sheikh Accountancy » Accounting Gk

Answer:

nisha sheikh
 A bank reconciliation statement or BRS is a form that allows individuals to compare their personal bank account records to that of the bank. BRS is prepared when the passbook balance differs from the cashbook balance.

-Answered by nisha sheikh On 20 September 2020:07:52:22 PM


Question 88. Asked on :20 September 2020:07:48:02 PM

 Write something about GST?

-Added by nisha sheikh Accountancy » Accounting Gk

Answer:

nisha sheikh
GST is the acronym for Goods and Service Tax and it is an indirect tax other than the income tax. The seller charges it to the customer on the value of the service or product sold. The seller then deposits the GST to the government.

-Answered by nisha sheikh On 20 September 2020:07:52:45 PM


Question 89. Asked on :20 September 2020:07:46:53 PM

 What are tha Popular Accounting Applications?

-Added by nisha sheikh Accountancy » Accounting Gk

Answer:

nisha sheikh
I am familiar with accounting apps like CGram Software, Financial Force, Microsoft Accounting Professional, Microsoft Dynamics AX and Microsoft Small Business Financials.

-Answered by nisha sheikh On 20 September 2020:07:53:31 PM


Question 90. Asked on :20 September 2020:07:33:36 PM

 What is Defered Tax Liability?

-Added by nisha sheikh Accountancy » Accounting Gk

Answer:

nisha sheikh
Deferred tax liability signifies that a company may pay more tax in the future due to current transactions.

-Answered by nisha sheikh On 20 September 2020:07:36:25 PM


Question 91. Asked on :20 September 2020:07:32:01 PM

 Why do you think Accounting Standards are Mandatory?

-Added by nisha sheikh Accountancy » Accounting Gk

Answer:

nisha sheikh
 Accounting Standards play an important role in preparing a good and accurate financial report. It ensures reliability and relevance in financial reports.

-Answered by nisha sheikh On 20 September 2020:07:37:04 PM


Question 92. Asked on :20 September 2020:07:31:02 PM

 What are the common errors in accounting?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
The common errors in accounting are – errors of omission, errors of commission, errors of principle and compensating error.

-Answered by nisha sheikh On 20 September 2020:07:37:39 PM


Question 93. Asked on :20 September 2020:07:28:46 PM

 What is a Difference Between Balance Sheet and Trial Balance?

-Added by nisha sheikh Accountancy » Accounting Gk

Answer:

nisha sheikh
 A trial balance is the list of all balances in a ledger account and is used to check the arithmetical accuracy in recording and posting. A balance sheet, on the other hand, is a statement which shows the assets, liabilities and equity of a company and is used to ascertain its financial position on a particular date.

-Answered by nisha sheikh On 20 September 2020:07:38:09 PM


Question 94. Asked on :20 September 2020:07:27:07 PM

 What is Diference Between AP (Accounts payable) and AR (Accounts receivable)?

-Added by nisha sheikh Accountancy » Accounting Gk

Answer:

nisha sheikh
Accounts PayableAccounts Receivable
The amount a company owes because it purchased goods or services on credit from a vendor or supplier.The amount a company has the right to collect because it sold goods or services on credit to a customer.
Accounts payable are liabilities.Accounts receivable are assets.

-Answered by nisha sheikh On 20 September 2020:07:38:45 PM


Question 95. Asked on :20 September 2020:07:25:55 PM

 Where do you show TDS on a balance sheet?

-Added by nisha sheikh Accountancy » Accounting Gk

Answer:

nisha sheikh
 In a balance sheet, it is shown in the assets section, right after the head current asset.

-Answered by nisha sheikh On 20 September 2020:07:42:08 PM


Question 96. Asked on :20 September 2020:07:25:15 PM

 What is TDS?

-Added by nisha sheikh Accountancy » Gk Accounting

Answer:

nisha sheikh
 TDS (Tax Deducted at Source) is a concept aimed at collecting tax at every source of income.

-Answered by nisha sheikh On 20 September 2020:07:42:47 PM


Question 97. Asked on :20 September 2020:07:24:30 PM

 How do you maintain Accounting accuracy?

-Added by nisha sheikh Accountancy » Accounting Gk

Answer:

nisha sheikh
Maintaining the accuracy of an organisation’s accounting is an important activity as it can result in a huge loss. There are various tools and resources which can be used to limit the potential for errors to creep in and address quickly if any errors do arise.

-Answered by nisha sheikh On 20 September 2020:07:43:16 PM


Question 98. Asked on :20 September 2020:07:23:14 PM

 What is Working capital?

-Added by nisha sheikh Accountancy » Accounting Gk

Answer:

nisha sheikh
Working capital is calculated as current assets minus current liabilities, which is used in day-to-day trading.

-Answered by nisha sheikh On 20 September 2020:07:43:41 PM


Question 99. Asked on :20 September 2020:07:20:49 PM

 What is double-entry bookkeeping?

-Added by nisha sheikh Accountancy » Accounting Gk

Answer:

nisha sheikh
Double-entry bookkeeping is an accounting principle where every debit has a corresponding credit.

-Answered by nisha sheikh On 20 September 2020:07:44:08 PM


Question 100. Asked on :20 September 2020:07:19:28 PM

Explain real and nominal accounts with examples.

-Added by nisha sheikh Accountancy » Accounting Gk

Answer:

nisha sheikh

 A real account is an account of assets and liabilities. E.g. land account, building account, etc.

A nominal account is an account of income and expenses. E.g. salary account, wages account, etc.

-Answered by nisha sheikh On 20 September 2020:07:44:52 PM


Question 101. Asked on :20 September 2020:07:17:47 PM

How many types of business transactions are there in accounting?

-Added by nisha sheikh Accountancy » Accounting Gk

Answer:

nisha sheikh
There are two types of business transactions in accounting – revenue and capital.

-Answered by nisha sheikh On 20 September 2020:07:45:23 PM


Question 102. Asked on :23 August 2020:10:30:54 AM

 Write the features of Company?

-Added by nisha sheikh Accountancy » Introduction To Company Accounts

Answer:

nisha sheikh

1. Incorporated association

2. Separate legal entity

3. perpetual existence 

4. Limited liability 

5. Transerability of shares

6. Artificial legal person

-Answered by nisha sheikh On 23 August 2020:10:36:02 AM


Question 103. Asked on :23 August 2020:10:19:23 AM

 Write the Features of Auditing?

-Added by nisha sheikh Accountancy » Concept Of Auditing

Answer:

nisha sheikh

 1. It is a systematic examination of books of accounts by an independent person.

2. Time, extent and nature of audit depends on the effectiveness of internal control system.

3. Auditing may be on test basis or in depth checking of books and accounts.

-Answered by nisha sheikh On 23 August 2020:10:24:28 AM


Question 104. Asked on :23 August 2020:10:11:53 AM

 Write the objectives of Auditing?

-Added by nisha sheikh Accountancy » Concept Of Auditing

Answer:

nisha sheikh

 1. The main objective of audit shifted to ascertaining whether the documents are true and fair rather than true and correct.

2. The emphasis was not on arithmetical accuracy but on a fair representation of financial efforts.

-Answered by nisha sheikh On 23 August 2020:10:14:05 AM


Question 105. Asked on :22 August 2020:10:35:04 AM

 Write the categories of Audits?

-Added by nisha sheikh Accountancy » Types Of Audit

Answer:

Shruti Srivastva
(i) Audit required by law.

(ii) Voluntary audit.  

-Answered by Shruti Srivastva On 29 August 2020:05:34:44 PM


Question 106. Asked on :22 August 2020:10:31:57 AM

 Write the Essentials of good audit evidence?

-Added by nisha sheikh Accountancy » Tools Of Auditing

Answer:

Shruti Srivastva
Should be reliable.

-Answered by Shruti Srivastva On 29 August 2020:05:35:46 PM


Question 107. Asked on :22 August 2020:10:28:03 AM

 Define Auditing Evidence ?

-Added by nisha sheikh Accountancy » Tools Of Auditing

Answer:

nisha sheikh

 Audit Evidence refers to any information , verbal or written , obtained by the auditor during the course of audit to arrive at the conclusion on which he bases his opinion on financial statements.

-Answered by nisha sheikh On 22 August 2020:10:29:10 AM


Question 108. Asked on :22 August 2020:10:16:34 AM

 Write the Limitations of Audit Programme? 

-Added by nisha sheikh Accountancy » Tools Of Auditing

Answer:

nisha sheikh

1. An audit programme is rigid i.e., not flexible . One audit programme may not suite all organisations.

2. Independent judgement and initiative of the audit staff may be restricted.It may frustrate the talented and efficient audit staff.

3. New areas will be overlooked as the audit will be carried out based on traditional audit programme only.

-Answered by nisha sheikh On 22 August 2020:10:18:24 AM


Question 109. Asked on :22 August 2020:10:12:45 AM

 Write the benenfits of Audit Programme?

-Added by nisha sheikh Accountancy » Tools Of Auditing

Answer:

nisha sheikh

1. Ensures that all areas have been covered during audit.

2. Acts as an evidence against charge of negligence .

3. Helps in fixing responsibilities .

 

-Answered by nisha sheikh On 22 August 2020:10:13:55 AM


Question 110. Asked on :22 August 2020:10:09:26 AM

Define Audit Programme?

-Added by nisha sheikh Accountancy » Tools Of Auditing

Answer:

Shruti Srivastva
An audit programme is a detailed plan of work, prepared by the auditor for carrying out an audit. 

-Answered by Shruti Srivastva On 29 August 2020:05:36:22 PM


Question 111. Asked on :22 August 2020:10:07:05 AM

 Write the types of Auditor's opinion?

-Added by nisha sheikh Accountancy » Auditor And Related Provisions

Answer:

Shruti Srivastva
(i) Qualified.

(ii) Unqualified.

(iii) Disclamer of.

(iv) Adverse. 

-Answered by Shruti Srivastva On 29 August 2020:05:37:38 PM



Question 113. Asked on :20 August 2020:10:27:37 AM

 Write the Importance of Audit Report?

-Added by nisha sheikh Accountancy » Auditor And Related Provisions

Answer:

nisha sheikh

Importance of Audit Report:

1. Audit Report helps an auditor to express his opinion on financial statements.

2. It shows the scope of work done and the responsibility assumed by the auditor while conducting audit.

3. The conclusions drawn by the auditor are communicated to the management through audit report.

4. It helps the shareholders of the company to know the state of affairs of the company.

-Answered by nisha sheikh On 22 August 2020:09:58:11 AM


Question 114. Asked on :20 August 2020:10:26:12 AM

Write the Rights of Auditor?: 

-Added by nisha sheikh Accountancy » Auditor And Related Provisions

Answer:

nisha sheikh

Rights of Auditor:

1. Right to access the books of account

2. Right to obtain information and explanation from officers

3. Right to receive notice of and attend general meetings 

4. Right to visit branch offices and access books

5. Right to receive notice for removal

6. Right to make a representation on removal 

7. Right to receive remuneration 

8. Right to sign the audit report.

-Answered by nisha sheikh On 20 August 2020:10:27:10 AM


Question 115. Asked on :20 August 2020:10:13:32 AM

 Write the types of Auditor?

-Added by nisha sheikh Accountancy » Auditor And Related Provisions

Answer:

Shruti Srivastva
Internal and External.

-Answered by Shruti Srivastva On 29 August 2020:05:38:57 PM


Question 116. Asked on :20 August 2020:10:08:35 AM

 Who is auditor?

-Added by nisha sheikh Accountancy » Auditor And Related Provisions

Answer:

Shruti Srivastva
A person who conducts an audit is known as auditor.

-Answered by Shruti Srivastva On 29 August 2020:05:39:19 PM


Question 117. Asked on :17 August 2020:10:31:52 AM

 What is Dissolution of a firm?

-Added by nisha sheikh Accountancy » Partnership Accounts

Answer:

Shruti Srivastva
Dissolution of a firm a means putting an and to the partnership i.e., closing down the firm as a whole. 

-Answered by Shruti Srivastva On 29 August 2020:05:40:00 PM


Question 118. Asked on :17 August 2020:10:28:24 AM

 What is admission of a partner?

-Added by nisha sheikh Accountancy » Partnership Accounts

Answer:

Shruti Srivastva
Admission means when a new partner enters into the buisness. 

-Answered by Shruti Srivastva On 29 August 2020:05:41:12 PM


Question 119. Asked on :17 August 2020:10:25:51 AM

 Write the name of methods of calculation of goodwill?

-Added by nisha sheikh Accountancy » Partnership Accounts

Answer:

Shruti Srivastva
(i) Average profit method 

(ii) Super profit method 

-Answered by Shruti Srivastva On 17 August 2020:05:11:47 PM


Question 120. Asked on :17 August 2020:10:22:08 AM

 Write the factors affecting goodwill of a firm?

-Added by nisha sheikh Accountancy » Partnership Accounts

Answer:

nisha sheikh
1. Location of business

2. Quality of goods sold/ services given

3. Reputation of owners of the firm 

4. Risk involved in business

5. Trends of profits etc.

-Answered by nisha sheikh On 17 August 2020:10:23:30 AM


Question 121. Asked on :17 August 2020:10:14:30 AM

 Write the need for valuation of goodwill?

-Added by nisha sheikh Accountancy » Partnership Accounts

Answer:

nisha sheikh

1. On admission of new partner.

2. On retirement or death of a partner.

3. When there is a change in profit sharing ratio.

4. When the business is sold.

5. When a firm is amalgamated with another firm.



-Answered by nisha sheikh On 17 August 2020:10:18:18 AM


Question 122. Asked on :17 August 2020:10:09:48 AM

Write the features of Goodwill?

-Added by nisha sheikh Accountancy » Partnership Accounts

Answer:

nisha sheikh

1. It is an intangible asset.

2. The value of Goodwill fluctuates from time to time.

3. It is a valuable asset and placed on the asset side of Balance sheet.

-Answered by nisha sheikh On 17 August 2020:10:11:06 AM


Question 123. Asked on :17 August 2020:10:02:13 AM

 What do you mean by goodwill?

-Added by nisha sheikh Accountancy » Partnership Accounts

Answer:

Shruti Srivastva
Goodwill means the reputation of the firm. 

-Answered by Shruti Srivastva On 29 August 2020:05:42:07 PM


Question 124. Asked on :17 August 2020:09:57:22 AM

 Write the name of partnership accounts.

-Added by nisha sheikh Accountancy » Partnership Accounts

Answer:

nisha sheikh

Partnership Accounts:

1. Partner's capital accounts

2. Partner's loan account

3. Profit and loss appropriation

-Answered by nisha sheikh On 17 August 2020:09:59:50 AM


Question 125. Asked on :17 August 2020:09:53:21 AM

 Write the features of Business Environment?

-Added by nisha sheikh Accountancy » Accounts

Answer:

Anjali Kumari
The main features of business environment are:
  • All the external forces: Business Environment includes all the forces, institutions and factors which directly or indirectly affect the Business Organizations.
  • Specific and general forces: ...
  • Inter-relation: ...
  • Uncertainty: ...
  • Dynamic: ...
  • Complex: ...
  • Relativity:

-Answered by Anjali Kumari On 13 October 2020:07:27:42 PM


Question 126. Asked on :16 August 2020:11:08:11 AM

 What is Gross loss?

-Added by nisha sheikh Accountancy » Final Accounts

Answer:

Shruti Srivastva
It is net result of the trading account. 

-Answered by Shruti Srivastva On 29 August 2020:05:42:43 PM


Question 127. Asked on :16 August 2020:11:06:19 AM

 Define Closing Stock.

-Added by nisha sheikh Accountancy » Final Accounts

Answer:

Shruti Srivastva
It refers to the stock unsold at the end of the accounting year. 

-Answered by Shruti Srivastva On 29 August 2020:05:43:15 PM


Question 128. Asked on :16 August 2020:11:01:56 AM

 Write the formula of Net Purchases.

-Added by nisha sheikh Accountancy » Final Accounts

Answer:

Shruti Srivastva
Net Purchases = Purchase - Purchase returns

-Answered by Shruti Srivastva On 29 August 2020:05:44:02 PM


Question 129. Asked on :16 August 2020:10:57:57 AM

 Define Opening stock .

-Added by nisha sheikh Accountancy » Final Accounts

Answer:

Shruti Srivastva
This is closing stock of previous year which has been bought forward. 

-Answered by Shruti Srivastva On 29 August 2020:05:44:44 PM


Question 130. Asked on :16 August 2020:10:53:18 AM

 Define Cost of Asset.

-Added by nisha sheikh Accountancy » Depreciation

Answer:

nisha sheikh

Cost of the Asset refers to the cost at which asset is purchased. It includes all expenses incurred upto the point the asset is ready for use.

-Answered by nisha sheikh On 16 August 2020:10:54:34 AM


Question 131. Asked on :16 August 2020:10:48:34 AM

 Write the Objectives of providing Depreciation?

-Added by nisha sheikh Accountancy » Depreciation

Answer:

nisha sheikh

1. To ascertain correct profit/loss

2. To show a true and fair view of financial statements

3. To show assets at their proper value

4. To make provision for replacement of assets.


-Answered by nisha sheikh On 16 August 2020:10:50:39 AM


Question 132. Asked on :16 August 2020:10:44:05 AM

 Write the causes of Depreciation.

-Added by nisha sheikh Accountancy » Depreciation

Answer:

nisha sheikh

1. Physical wear and tear  due to continuous use.

2. Efflux ( passage of time)

3. Physical deterioration

4. Obsolescence (asset becoming redundant due to technological changes)

5. Accidents (fire etc.)

6. Depletion

-Answered by nisha sheikh On 16 August 2020:10:45:09 AM


Question 133. Asked on :16 August 2020:10:39:08 AM

 What do you mean by Depreciation?

-Added by nisha sheikh Accountancy » Depreciation

Answer:

nisha sheikh

Depreciation means a fall in the value of asset due to usage, efflux of time or due to obsolescence.

-Answered by nisha sheikh On 16 August 2020:10:40:29 AM


Question 134. Asked on :16 August 2020:10:34:28 AM

 Write the Significance of BRS.

-Added by nisha sheikh Accountancy » B R S

Answer:

nisha sheikh

1. Highlights causes of difference , necessary adjustment can therefore be carried out at early date.

2. Reduce chances of fraud.

3. Act as a moral check.

4. Actual position of bank balance can be found.

-Answered by nisha sheikh On 16 August 2020:10:35:31 AM


Question 135. Asked on :16 August 2020:10:30:25 AM

 Define Bank Reconciliation Statement.

-Added by nisha sheikh Accountancy » B R S

Answer:

nisha sheikh

 A bank reconciliation statement is a statement which is prepared to reconcile the balance as per cash book with the balance as per pass book.

-Answered by nisha sheikh On 16 August 2020:10:32:03 AM


Question 136. Asked on :16 August 2020:10:24:54 AM

 Write the differnce between Pass book and Cash book.

-Added by nisha sheikh Accountancy » B R S

Answer:

nisha sheikh

1. Pass book is maintained by a bank whereas Cash book is maintained by a customer.

2. In pass book, transactions are recorded from the point of view of bank whereas in Cash book they are recorded from point o view of client.

3. Entries done in the Cash book are exactly opposite to that posted in pass book.

-Answered by nisha sheikh On 16 August 2020:10:26:34 AM


Question 137. Asked on :16 August 2020:10:21:25 AM

 Define Overdraft.

-Added by nisha sheikh Accountancy » B R S

Answer:

nisha sheikh

 Overdraft is a facility where by a customer is allowed to draw more than the amount deposited in his account.

-Answered by nisha sheikh On 16 August 2020:10:23:05 AM


Question 138. Asked on :16 August 2020:10:17:02 AM

 Write the types of Personal account.

-Added by nisha sheikh Accountancy » B R S

Answer:

nisha sheikh

1. Current Account 

2. Savings Account

3. Fixed Deposit Account

4. Recurring Deposit Account

-Answered by nisha sheikh On 16 August 2020:10:20:03 AM


Question 139. Asked on :16 August 2020:10:12:22 AM

 Define Revenue losses?

-Added by nisha sheikh Accountancy » Accounts

Answer:

Shruti Srivastva
Losses of a revenue nature. 

-Answered by Shruti Srivastva On 29 August 2020:05:45:58 PM


Question 140. Asked on :16 August 2020:10:10:48 AM

 Define Capital Losses?

-Added by nisha sheikh Accountancy » Accounts

Answer:

Shruti Srivastva
Capital nature losses. 

-Answered by Shruti Srivastva On 29 August 2020:05:46:23 PM


Question 141. Asked on :16 August 2020:10:08:21 AM

 Define Profit?

-Added by nisha sheikh Accountancy » Accounts

Answer:

Shruti Srivastva
The diffrence between income and expenditure. 

-Answered by Shruti Srivastva On 29 August 2020:05:46:47 PM


Question 142. Asked on :16 August 2020:10:06:47 AM

 Receipts which have occured due to normal business activity are known as Revenue Receipts.

-Added by nisha sheikh Accountancy » Accounts

Answer:

Anjali Kumari
Revenue receipts are money received by a business as a result of its normal business operations. In this way, revenue receipts affect the profit or loss of a businessCapital receipts are non-recurring receipts that either increase a liability or decrease an asset.

-Answered by Anjali Kumari On 18 October 2020:07:04:53 PM


Question 143. Asked on :16 August 2020:10:02:16 AM

 Define Capital Receipts?

-Added by nisha sheikh Accountancy » Accounts

Answer:

Shruti Srivastva
Recipts of capital nature. 

-Answered by Shruti Srivastva On 24 August 2020:05:26:17 PM


Question 144. Asked on :14 August 2020:10:53:15 AM

 Write the types of Errors?

-Added by nisha sheikh Accountancy » Accounts

Answer:

Anjali Kumari
There are three types of error: syntax errors, logical errors and run-time errors. (Logical errors are also called semantic errors). We discussed syntax errors in our note on data type errors.

Generally errors are classified into three types: systematic errors, random errors and blunders. Gross errors are caused by mistake in using instruments or meters, calculating measurement and recording data results.

-Answered by Anjali Kumari On 13 October 2020:07:28:54 PM


Question 145. Asked on :14 August 2020:10:47:16 AM

 Is Trial Balance an account?

-Added by nisha sheikh Accountancy » Accounts

Answer:

Shruti Srivastva
No. 

-Answered by Shruti Srivastva On 29 August 2020:05:47:27 PM


Question 146. Asked on :14 August 2020:10:45:33 AM

 What do you mean by Trial Balance?

-Added by nisha sheikh Accountancy » Accounts

Answer:

nisha sheikh

 A Trial balance is a statement prepared with the debit and credit balances of the ledger accounts including cash and bank balances to test the arithmetical accuracy of books.

-Answered by nisha sheikh On 14 August 2020:10:49:12 AM


Question 147. Asked on :14 August 2020:10:44:30 AM

Write the objectives of Trial Balance.

-Added by nisha sheikh Accountancy » Accounts

Answer:

Anjali Kumari
One of the main objectives of the trial balance is to ensure that the total of all debits equals the total of all the credits. ... After journalizing and posting all entries in the ledgers, the bookkeepers prepare the trial balance. A fully balanced trial balance will assure the arithmetic accuracy of the accounts.

-Answered by Anjali Kumari On 13 October 2020:07:22:41 PM


Question 148. Asked on :14 August 2020:10:42:49 AM

 Define Imprest System.

-Added by nisha sheikh Accountancy » Accounts

Answer:

Shruti Srivastva
The system by which petty cashbook is maintatined. 

-Answered by Shruti Srivastva On 29 August 2020:05:47:50 PM


Question 149. Asked on :14 August 2020:10:40:07 AM

 Deine Petty cash book.

-Added by nisha sheikh Accountancy » Accounts

Answer:

nisha sheikh

 Petty means small . A book which is used to record petty cash expenses of the business is called a Petty cash book.

-Answered by nisha sheikh On 14 August 2020:10:41:36 AM


Question 150. Asked on :14 August 2020:10:38:04 AM

 Deine Single column or Simple cash book.

-Added by nisha sheikh Accountancy » Accounts

Answer:

nisha sheikh

 It is known as single column cash book because it contains only one amount column of cash .

-Answered by nisha sheikh On 14 August 2020:10:39:08 AM


Question 151. Asked on :14 August 2020:10:34:42 AM

 Deine Cash Book?

-Added by nisha sheikh Accountancy » Accounts

Answer:

nisha sheikh

 CAsh Book is a book of prime entry in which cash and bank transactions of a business are recorded in a choronological order.

-Answered by nisha sheikh On 14 August 2020:10:35:45 AM


Question 152. Asked on :14 August 2020:10:01:20 AM

 Write the difference between Journal and Ledger.

-Added by nisha sheikh Accountancy » Accounts

Answer:

nisha sheikh

 1. Journal is book of original entry while ledger is book of second entry .

2. Journal book is choronological while ledger is analytical .

3. Process of recording in journal is " journlising " while the process of recording in ledger is known as " posting".

-Answered by nisha sheikh On 14 August 2020:10:05:56 AM


Question 153. Asked on :12 August 2020:10:27:52 AM

 Write the rules for posting?

-Added by nisha sheikh Accountancy » Accounts

Answer:

nisha sheikh

 Rules for posting:

1. The name of the account in the journal and ledger should exactly be the same .

2. The account debited in journal will be debited in ledger and the account credited in ledger will be credited.

3. The word "To" will be added in the name of the accounts on the debit side and "By" will be added in the accounts on the credit side e.g., "To sales" , "By purchases" etc.

4. The page number of the jornal from where the entry is transferred is to be writeen in the Folio Column.

5. The date of transactions is to be written in the date column.

-Answered by nisha sheikh On 12 August 2020:10:29:14 AM


Question 154. Asked on :12 August 2020:10:23:38 AM

 What is ledger posting?

-Added by nisha sheikh Accountancy » Accounts

Answer:

Shruti Srivastva
The process of transfering the information contained in a journal to a ledger. 

-Answered by Shruti Srivastva On 29 August 2020:05:48:40 PM


Question 155. Asked on :12 August 2020:10:19:43 AM

 What do you mean by ledger? 

-Added by nisha sheikh Accountancy » Accounts

Answer:

nisha sheikh

 A kledger may be deined as a " book or register which contains in a summarized and classified form, a permanent record of all transactions".

-Answered by nisha sheikh On 12 August 2020:10:21:04 AM


Question 156. Asked on :12 August 2020:10:15:05 AM

 Write the process o journalising?

-Added by nisha sheikh Accountancy » Accounts

Answer:

nisha sheikh

Process of journalising:

Step 1. Ascertain what accounts are affected  in the transaction .

Step 2 .Ascertain the nature of the account .

Step 3 . Apply the rules of debit and credit to each type of account.

Step 4 . Pass the entry.

-Answered by nisha sheikh On 12 August 2020:10:16:11 AM


Question 157. Asked on :12 August 2020:10:13:35 AM

 What is journal entry ?

-Added by nisha sheikh Accountancy » Accounts

Answer:

Shruti Srivastva

An entry done in a journal. 

-Answered by Shruti Srivastva On 29 August 2020:05:49:32 PM


Question 158. Asked on :12 August 2020:10:10:48 AM

 What do you meant by journalising?

-Added by nisha sheikh Accountancy » Accounts

Answer:

Shruti Srivastva
The process of recording a transaction in a journal. 

-Answered by Shruti Srivastva On 29 August 2020:05:50:20 PM


Question 159. Asked on :12 August 2020:10:09:09 AM

 In which order transactions are recorded?

-Added by nisha sheikh Accountancy » Accounts

Answer:

Shruti Srivastva

A chronological order. 

-Answered by Shruti Srivastva On 29 August 2020:05:51:02 PM


Question 160. Asked on :12 August 2020:09:57:50 AM

 Define journal?

-Added by Sehnaaz Sheikh Accountancy » Accounts

Answer:

nisha sheikh

 A journal is a book of original entry / prime entry  wherein transactions are first recorded beore being posted to the ledger .

-Answered by nisha sheikh On 12 August 2020:10:01:30 AM


Question 161. Asked on :12 August 2020:09:52:23 AM

 Write the importance of cost of capital?

-Added by Sehnaaz Sheikh Accountancy » Accounts

Answer:

Sehnaaz Sheikh

 1. Capital budgeting decision largely depends on the cost of capital of each source.

2. Cost of capital helps to take decision regarding capital sturcture. 

3. It helps to evaluate the financial perormance of the firm .


-Answered by Sehnaaz Sheikh On 12 August 2020:09:53:23 AM


Question 162. Asked on :12 August 2020:09:49:53 AM

 Write the full form of NOI?

-Added by Sehnaaz Sheikh Accountancy » Accounts

Answer:

Shruti Srivastva
Net Opreating Income approach. 

-Answered by Shruti Srivastva On 29 August 2020:05:51:45 PM


Question 163. Asked on :12 August 2020:09:42:41 AM

 What is capital Rationing?

-Added by Sehnaaz Sheikh Accountancy » Accounts

Answer:

Sehnaaz Sheikh

 Capital Rationing is the term usually coined to denote such a condition in which the business enterprises are not able to accept all the projects on account of external or internal fund constraints 

-Answered by Sehnaaz Sheikh On 12 August 2020:09:45:37 AM


Question 164. Asked on :12 August 2020:09:29:55 AM

 What are the objectives of financial management?

-Added by Sehnaaz Sheikh Accountancy » Accounts

Answer:

Shruti Srivastva
(i) Profit maximisation. 

(ii) Wealth maximisation. 

-Answered by Shruti Srivastva On 29 August 2020:05:52:17 PM


Question 165. Asked on :12 August 2020:09:24:04 AM

 What do you mean by financial management?

-Added by Sehnaaz Sheikh Accountancy » Accounts

Answer:

Sehnaaz Sheikh

 Financial management is concerned with investment , financing and dividend decisions in relation to objectives of the company . financial management is concerned with the eficient procurement and utilization of the funds.

-Answered by Sehnaaz Sheikh On 12 August 2020:09:26:10 AM


Question 166. Asked on :21 August 2019:07:59:18 PM

 What do you mean by consistency assumptions ?

-Added by anjali thakur Accountancy » Consistency Assumption

Answer:

anjali thakur

 According to the Consistency Assumption accounting practice once selected and adopted should be applied consistency year after year . The concept helps in better understanding of accounting information and makes it comparable with that of previous years .

-Answered by anjali thakur On 21 August 2019:08:01:18 PM


Question 167. Asked on :21 August 2019:07:56:26 PM

 Write the  feature of accounting principles ?


-Added by anjali thakur Accountancy » Feature Of Accounting Principle

Answer:

Master Purushottam
Essential Features of Accounting Principles:
  • Relevance or Usefulness: ADVERTISEMENTS: A principle will be relevant only if it satisfies the needs of those who use it. ...
  • Objectivity: A principle will be said to be objective if it is based on facts and figures. ...
  • Feasibility: The accounting principles should be practicable.

-Answered by Master Purushottam On 22 August 2019:09:17:18 PM


Question 168. Asked on :21 August 2019:07:12:48 PM

 What is creditors?


-Added by anjali thakur Accountancy » CH2

Answer:

Master Purushottam

 Creditor is a person to whom an amount is owned an account of credit purchase of goods and service n the normal course of business.

-Answered by Master Purushottam On 21 August 2019:11:05:48 PM


Question 169. Asked on :21 August 2019:07:08:25 PM

 Define drawings with example ?

-Added by anjali thakur Accountancy » Ch 2

Answer:

Master Purushottam

 Drawing is the amount of money or value of goods which the proprietor or partner withdraws for personal use. for example, withdrawal of cash by the proprietor for personal use

-Answered by Master Purushottam On 21 August 2019:11:07:50 PM


Question 170. Asked on :20 August 2019:07:59:13 PM

 Give two advantages of a journal ?

-Added by anjali thakur Accountancy » Ch 8

Answer:

Akki chauhan

(i) As transactions in journal are entered as and when they take place the possibility of omission of a transaction in the book of accounts.

(ii) As transaction in journal are recorded in chronological order, it is very easy locate a particular transaction when required.  

-Answered by Akki chauhan On 21 August 2019:11:07:26 AM


Question 171. Asked on :20 August 2019:07:57:39 PM

 What is trade discount ?

-Added by anjali thakur Accountancy » Ch 8

Answer:

anjali thakur

 A discount on the retail price of something allowed or agreed between traders or to a retailer by a wholesaler .


-Answered by anjali thakur On 20 August 2019:08:26:34 PM


Question 172. Asked on :20 August 2019:07:56:17 PM

 What is mean by a journal ?

-Added by anjali thakur Accountancy » Ch 8

Answer:

Shruti Srivastva
A record of financial transaction in order by date. 

-Answered by Shruti Srivastva On 29 August 2020:05:53:35 PM


Question 173. Asked on :20 August 2019:07:35:15 PM

What do you mean by going concern assumption

-Added by anjali thakur Accountancy » Ch 3

Answer:

anjali thakur

 According to this assumption, it is assumed that business shall continue for a foreseeable period and there is no intention to close the business scale down its operation significantly .

-Answered by anjali thakur On 20 August 2019:07:42:46 PM


Question 174. Asked on :19 August 2019:03:19:36 PM

Name any one external user of Accounting information.

-Added by nisha sheikh Accountancy » Ch-1

Answer:

Shruti Srivastva
Creditors. 

-Answered by Shruti Srivastva On 29 August 2020:05:54:21 PM


Question 175. Asked on :19 August 2019:03:17:41 PM

 Give two advantages of a Journal.

-Added by nisha sheikh Accountancy » Ch-8

Answer:

Shruti Srivastva
Possibility of error reuces.

provides accounting datain chronological order. 

-Answered by Shruti Srivastva On 29 August 2020:05:54:40 PM


Question 176. Asked on :06 May 2019:10:32:45 AM

 हथियाकरण से आप क्या समझते है ? 

-Added by priyanshu kumar Accountancy » हाशियाकरण की समझ

Answer:

sonu kumar

 समझती? पर इसका कारण रंग भेदी हथियाकरण है, समाज में जिसकी जड़े गहरी पैंसी. हुईं हैं। लेखिका को इस भोगे हुए यथार्थ का गहरा अभास था। जिसका प्रभाव ... क्या डॉ. सर्राफ स्वयं उन्हें सामाजिक रूप से. स्वीकार कर पायेगें? इन सभी बातों से दूर 'प्रभा खेतान' का भावविभोर हृदय केवल. डॉ. ... कड़वी-मीठी यादों के इर्द-गिर्द बुना गया आत्मचरित्र अपने आप में स्त्री जीवन की विशेष.

-Answered by sonu kumar On 06 May 2019:10:41:46 AM


 

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