Explore topic-wise InterviewSolutions in Current Affairs.

Fixed assets are used to generate revenue income.

Objectives of Balance Sheet are as under:

• The main objective of preparing Balance Sheet is to know the financial position of the business.
• To know the amount of Non-current assets and Current assets. :
• To know the amount of Non-current liabilities and Current liabilities.
• To know the amount receivable from various debtors.
• To know the amount payable to various creditors.
• To know the amount of net capital in the business.
• To calculate the various ratios for the purpose of financial analysis.
• To know the Reserves and Surplus of the business.

Objectives of Profit and Loss Account are as under:

• The Profit and Loss Account Is prepared to ascertain the Net Profit and Net Loss incurred during the accounting period.
• Excess total of credit side of Profit and Loss Account Is called Net profit.
• Excess total of debit side of Profit and Loss Account is called Net loss.
• The capital of the owner will be increased by Net profit.
• The capital of the owner will be decreased by Net loss.
• Indirect expenses, like as administrative expenses, selling and distribution expenses, financial expenses and other expenses and losses can be known from the Profit and Loss Account.
• Other incomes and benefits of the business can be known from the Profit and Loss Account.
• By comparing the Net profit or Net loss proportion with the past results of the business, the development of the business can be known.

Financial statements are organised summaries of detail information about the financial position of an enterprise.

Correct option is (b) Three

Trading account is prepared to know the gross profit or gross loss during the accounting period.

The result of Trading account is transferred to Profit and Loss account.

Deferred revenue expenditures are fictitious assets.

At the end of the accounting year, to close the goods accounts and nominal accounts, entries are to be passed in a ‘Journal Proper’ book and these entries are known as closing entries.

The amount of penalty payable on late removal of goods from the railway or port is called demurrage.

Opening stock is shown on debit side of Trading account.

Correct option is (b) Net loss

Darmayo means monthly salary or wages.

Correct option is (c) Monthly salary or wages

Correct option is (d) Opening stock + Purchase – Purchase return – Closing stock

Adjusted purchase means Opening stock + Purchase – Purchase returns – Closing stock.

Correct option is (d) Kharajat

The amount of difference payable when less freight is calculated from the place of goods consigned is called wharfage.

Correct option is (d) Other expenses and losses

At the end of the accounting year, to know the correct profit or loss and correct financial position of the business and to make the necessary changes in the recorded transactions in the books and to record the unrecorded entries while preparing the annual accounts, entries are to be written which are known as Adjustment entries.

Correct option is (b) Debit

Correct option is (a) Expense relating to purchase

There are two forms/structures prevail form and for presenting Balance Sheet:

1. Horizontal or ‘T’
2. Vertical or T form.

Adjustment means those financial transactions of business which are not recorded or wrongly recorded in accounts and it is required for rectifications.

Adjustment Entry :

1. Respecting the National flag and National Anthem.

2. Respect and protect the Constitution.

3. Readiness to serve our country if need arises.

4. Treating everyone as brothers and sister 

5. Avoid violence.

6. Protect government property etc.

“Fundamental rights are the basic human rights of all citizens”.

They are 

1. Right to Equality 

2. Right to Freedom 

3. Right against exploitation 

4. Right of Freedom of religion

5. Cultural and Educational rights 

6. Right to Constitutional Remedies

1. The preface of the constitution is the Preamble.

2. According to it, India is a Sovereign, socialist, Secular democratic republic.

3. The constitution has granted the people the right to rule. Sovereignty refers to the ultimate power of the country.

4. The term secular refers to freedom of worship.

5. The Constitution provides a Parliamentary form of Government, both at the centre

1. The Constitution is an authentic document containing the basic ideas, principles and laws of a country.

2. It also defines the rights and duties of citizens.

1. When the Congress met at Lahore in 1929, the members of the Congress unofficially declared the same day as the Day of Pooma Swaraj or the Day of complete self governance. 2. The next year, 26th January 1930 was celebrated as the Independence Day. That day has been observed as our Republic Day.”

The Constitution Day is celebrated on November 26

The Constitution of India was completed on 26th November 1949

(b)  c d a b

Constituent Assembly was formed in the year 1946.

There were fifteen women particpents in the consituent Assembly.

Drafting Committee was formed with eight members with Dr. B.R. Ambedkar as its chairman.

The condition under the formation of a union applied under the Act of 1935 was that 50 per cent of population of all native states should have the wish to join the union.

• Federal assembly
• state council

The term ‘provincial autonomy’ means the limited independent power of governance granted to the provincial governments.

• Planning of all – India federation
• Provincial autonomy

(b) By the Act of 1935

Prof. Michael Copeland considered the Government of India Act, 1935 as, “A great success of a constructive political thought.” According to his opinion, the Act of 1935 transferred the Indian fate from British hands to Indians. This transfer could be only done by this act. After a deep study of the Act, no one could agree with Copeland. Many Indian leaders gave their reaction on this Act.

The Congress leaders, fighting for the freedom of India, were not satisfied with this Act. They considered that the Act opposed the Indian aspirations. According to Madan Mohan Malviya, “The Act has been imposed over us externally, it seems to be a democratic system, but it is absolutely hollow internally.” C. Rajagopalachari considered the Act worse than the diarchy system. Pt. Jawaharlal Nehru declared it, “A Manifesto of Slavery”. Due to the reservation and tutelage system provided in the act, British political scholar Alali said, “It is a symbol of distrust.”

1. Criticism in England: 

The British moderates thought that the rights and responsibilities which were being provided to Indians through the Act of 1935, were not in their favor. 

2. Preposterous Act: 

According to Indian viewpoint, there was neither a provision of autonomy in this act nor colonial self governance was mentioned. It was a meaningless and useless act. 

3. The act was only a betrayal and mere show:

The Indian critics considered that, in the Act, no real power was provided to the Indians, so it was a betrayal for the common Indian people, and a mere show. 

4. No solution to Indian problem: 

The British intellectuals and the leaders of labor party considered that the Act provided no solutions to the problems of India. 

5. No participation of Indians in the formation of the Act: 

There was no role of Indians or their representatives in the formation of the Act. Jawaharlal Nehru declared it a “Manifesto of Slavery.” 

6. Faulty federal system: 

Although, planning of all Indian federation proposed in the act of 1935 had many features of federal system such as power sharing, written and strong constitution, free and just governance and bicameral system, yet it had many serious deficiencies in it. There was an effort to combine the opposite units in federation.

7. Provincial autonomy a myth: 

The Act of 1935 made provisions of provincial autonomy, and the members of provincial assembly were to be elected. The executive council was responsible before the assembly, but central governance had such powers by which it could interfere in the matters of the provinces. After the declaration of emergency, governor could put a full-stop on provincial autonomy. 

8. The faulty system of reservation and tutelage:

 The reservation and tutelage system provided in the Act of 1935 was a per-plan to render the responsible governance in India a failure. In fact, these provision were nothing, but a device of promoting British imperialism in India. 

9. Expansion of communal electorate system: 

The communal electoral system was expanded even more by this Act. Separate electorates were provided to Anglo-Indians, Europeans, Indian Christians and Harijans. As a result, the Indian political scene became bitter. 

10. Lack of the right of self determination: 

The Indians had no right to decide their fate under this Act. There was no reduction in the control of British parliament or India secretary over India. So, there was no programmer for development of India in this Act.

By the Act of 1935, responsible government was established in the provinces. Removing the diarchy, they were provided autonomy. All the provincial subjects were kept under the control of ministers who were the members of legislative assemblies and were collectively responsible to the legislative assembly. It was also decided that the cabinet would work on the basis of the principle of collective responsibility.

But this type of governance in the provinces was imperfect. According to the Act, though the provinces were given autonomy, yet there was a gap due to the discretionary and retaining powers of governor and also the governor-general. The central governance had such types of powers that they could interfere at large in the working of the provinces. The subject of law and order was kept under the provinces but the liability to maintain peace in the state was kept under the governor.

Under cover of this liability, governor could suppress the movements and throttle civil liberties. The position of ministers was weak. There was a lack of collective responsibility. In this way, it can be said that the responsible government in the provinces was imperfect.

• Security
• Foreign affairs 
• Residual powers

Main demerits of Government of India Act of 1935 are given below: 

1. Preposterous Act: 

According to viewpoint of Indians, there was neither a provision of autonomy nor colonial self governance in this Act. It was preposterous for Indians. 

2. No solution to Indian problems: 

The demand for freedom was rising continuously in India. The British intellectuals and the leaders of labor party considered that the Act did not provide any solution to the Indian problem. 

3. Faulty reservation and tutelage system: 

The provision of reservation and tutelage system provided in the Act of 1935 was a perplan to render the responsible governance in India a failure. These provisions were a device to protect British imperialism in India. The discretionary powers related to minorities, civil services and native states were provided to governor general and provincial governors. The discretionary power given to governor and governor general was against the democratic spirit. 

4. Lack of the right of self determination:

In the Act of 1935, there was no chance of framing a new constitution. The Indians were not given a chance of building their fate. The British parliament and India minister had the right to control India as it was before.

(d) 451 and 15

Under the Government of India Act, 1935, the diarchy system in provinces was removed and the provinces were provided a form of autonomous political units. They were provided freedom from central interference. The provinces were given legal, administrative and financial powers in 54 subjects from the provincial list. The governor was to work in a role of constitutional head in provincial autonomy, but this act made the governor a powerful president instead of constitutional president.

He had the power to control the entire provincial governance. He could issue ordinances. He had a right to accept or refuse or to return a bill for reconsideration. He could keep a bill safe for the approval of governor general. In this way, we can say that the governor was not a constitutional president.

(c) To the governor-general

The main purpose of the UNO is the maintenance of international peace and security.

(c) Government of India Act, 1935