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This section includes 7 InterviewSolutions, each offering curated multiple-choice questions to sharpen your Current Affairs knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
236follows22. Fro20. The comparative Balance Sheets of Samrat Ltd. as at 31st March, 2014 and 2015 were as31.3.2015 31.3.2012FurI.ParticularsI. EQUITY AND LIABILITIESShareholders' funds:Share capitalSinking fundRetained earningsProvisionsCurrent liabilities:Accounts payableNotes payableMortgage5,00,0001,60,0001,39,50013,5004,50,001,20,001,62,7514,25)1,50,0001,00,0004,00,00014,63,000 14,02,001,80,0075,004,00,00II.1,60,00080,0001,00,0006,00,0001,20,00070,0001,00,0006,00,00II. ASSETSNon-current assets :Sinking fund investmentsFurniture & FixturesLandBuildingsAccumulated depreciation :BuildingsFurniture and fixturesCurrent assets :Cash and cash equivalentsAccounts receivableInventories(1,20,000)(32,000(90,000(24,0001,12,000 85.0002,13,000 2,35,0003,50,000 3,06,00014,63,000 14,02,00Adde(i)(Ans23. FronAdditional informations :(i) Net profit for 2014-15 amounted to * 66,750.(ii) Dividend of 50,000 was paid during the year.Prepare a statement of sources and uses of funds accounting for the changes in working capital(Ans. Increase in Working Capital : 54,000; Funds from operations 71,04,000; Total of Funds Flow Statemen*1,54,000]The comparative Balance Sheets of a firmI.21.YUTON |
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Answer» Answer: What are Retained Earnings? Retained Earnings (RE) are the accumulated portion of a business’s profits that are not distributed as dividends to shareholders but instead are reserved for reinvestment back into the business. Normally, these funds are used for working capital and fixed asset purchases (capital expenditures) or allotted for paying off debt obligations.
retained earnings example
Retained Earnings are reported on the BALANCE sheet under the shareholder’s EQUITY section at the end of each accounting period. To calculate RE, the beginning RE balance is added to the net income or reduced by a net loss and then dividend payouts are subtracted. A summary report called a statement of retained earnings is also maintained, outlining the changes in RE for a specific period.
The Purpose of Retained Earnings Retained earnings represent a useful link between the income statement and the balance sheet, as they are recorded under shareholders’ equity, which connects the two STATEMENTS. The purpose of retaining these earnings can be varied and includes buying new equipment and machines, spending on research and development, or other activities that could potentially generate growth for the COMPANY. This reinvestment into the company aims to achieve even more earnings in the future. If a company does not believe it can earn a sufficient return on investment from those retained earnings (i.e., earn more than their COST of capital), then they will often distribute those earnings to shareholders as dividends or conduct a share buybacks.
What is the Retained Earnings Formula? The RE formula is as follows: RE = Beginning Period RE + Net Income/Loss – Cash Dividends – Stock Dividends
Where RE = Retained Earnings
retained earnings formula
Beginning of Period Retained Earnings At the end of each accounting period, retained earnings are reported on the balance sheet as the accumulated income from the prior year (including the current year’s income), minus dividends paid to shareholders. In the next accounting cycle, the RE ending balance from the previous accounting period will now become the retained earnings beginning balance. The RE balance may not always be a positive number, as it may reflect that the current period’s net loss is greater than that of the RE beginning balance. Alternatively, a large distribution of dividends that exceed the retained earnings balance can cause it to go negative.
How Net Income Impacts Retained Earnings Any changes or movement with net income will directly impact the RE balance. Factors such as an increase or decrease in net income and incurrence of net loss will pave the way to either business profitability or deficit. The Retained Earnings account can be negative due to large, cumulative net losses. Naturally, the same items that affect net income affect RE. Examples of these items include sales revenue, cost of goods sold, depreciation, and other operating expenses. Non-cash items such as write-downs or impairments and stock-based compensation also affect the account.
net income to retained earnings model |
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| 2. |
2On 1" March 2021, Rohan sold goods for 159800 to Shishir on credit. Shishir accepted abill of exchange drawn upon him by Rohan piyable after three months. On the 25th of April,Tohanndorse the bill in favor of his croitor Rahul in full settlement of her lo265,900. On May 28, Rahul discounted the Hill with his bank @ 18% p.a.On the due date, Shishir met the bill. Record the necessary journal entries in the booksRohan, Shishir &: Rahul. |
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| 3. |
Q.NO.1. In Accrual Base Accounting, we record / 3-fold 3/TER AGIÀ CHARGIकरते हैंA. All expenses paid during the year / Poh Tri TUO B. All incomes received during the Year / as ā915 - 314C. All incomes accrued and expenses outsianding for the year , ad o FIEGO 314और अदत्त व्ययD. All of these / GUTT ET |
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Answer» b Explanation: jsjjsjsbs sjsnwnnabwnannanabsbwnsbbs jsjsjs. SB |
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| 5. |
Comparative income statement |
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Answer» what to do here??????????? |
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| 6. |
When we credit an expense..explain with example |
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Answer» for an expense account, you DEBIT to increase it, and credit to DECREASE it. for an ASSET account, you debit to increase it and credit to decrease it. for a liability account you credit to increase it and debit to decrease it. Explanation: |
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| 7. |
Explain the accrual Basis of accounting |
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Answer» Answer: Accrual accounting is an accounting METHOD where revenue or expenses are recorded when a transaction occurs rather than when payment is received or MADE. The method follows the MATCHING principle, which says that REVENUES and expenses should be recognized in the same period. |
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| 8. |
Difference between provision and specific reserve |
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Answer» Answer: A RESERVE is an appropriation of PROFITS for a specific purpose. In SHORT, a reserve is an appropriation of profit for a specific purpose, while a provision is a CHARGE for an estimated expense. |
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| 9. |
Journalise transaction comission received Rs 1000 |
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Answer» To COMISSION a/c 1000 Explanation: |
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| 10. |
31. You are given the following balances as on April1,2019:Machinery A/c Rs. 500,000 Provision for Depreciation a/c Rs. 1,16,000 Depreciation is charged at 20% p.a. by the diminishing balance method. A piece of machinery purchased on April 1,2017 for Rs. 100,000 was sold on October for Rs. 60,000. A new machine worth Rs. 1,00,000 was purchased on the same date. Prepare the machinery a/c and Provision for Depreciation a/c for the year ended 31stMarch, 2020. Also prepare Machinery Disposal a/c. |
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| 11. |
Describe the meaning of accounting principles |
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Answer» Explanation: Accounting principles are the RULES and guidelines that COMPANIES must follow when reporting financial data . |
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| 12. |
bank to bank transfer , cash withdrawal ,cash deposit, why use this all transactions only contra entries? |
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Answer» To make the definition further SIMPLER, any transactions INVOLVING a transfer of CASH between one cash a/c to another or one cash a/c to another bank a/c or one bank account to another is CALLED as a contra entry. |
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| 13. |
Hates at a DISCOUNTIn the situation the shares are issued at a price tens or the face ofdiference between the face value and the issue price of the shares in the demonTilustration problemiThe os Company Limited issued 15.000 Equity shares of 100 each at a discount * 10.* 20 on application50 on allotment20 on callDate ParticularsJournal Entries in the Books of Ds Company LimitedDebiBan KAC LISOOOXTThe amount was payable as follows |
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Answer» jdjsj Explanation: djdjdjkdoroeoeeoeoor |
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| 14. |
ऑन फर्स्ट जनवरी 2013 लिमिटेड कंपनी प्रेशर मशीन फॉर पार्टिकल्स ए एंड फोर थाउजेंड परमानेंट एस्टेब्लिशमेंट चार्जेस ऑनलाइन होटल अकाउंट डिपॉजिट मशीन फॉर 25 अक्टूबर 2019 ओल्ड |
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Answer» Explanation: What are the SIMILARITIES between SANTOSH yadav and MARIA SARAPOVA |
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| 15. |
Journal entry for this |
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Answer» Answer: GREETINGS dear There would be no definite entry for cash in HAND. •As per the main rules of ACCOUNTING, every transaction should have a double effect. • If we are talking only about cash in hand, there would be no definite JOURNAL entry for the same. Cash in hand is an asset and the most liquid asset. |
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| 17. |
On 1st April, 2014, Precious, Noble and Perfect entered into partnershipwith capitals of 60,000; 50,000 and 30,000 respectively.Perfect advanced 10,000 as loan to the partnership on 1st October, 2014. ThePartnership Deed contained the following clauses :(i) Interest on capitals @ 6% p.a.(ii) Interest on drawings @ 6% p.a. Each drew 4,000 at the end of eachquarter commencing from 30th June, 2014.(iii) Working partners Precious and Noble to get salaries of 200 and 300per month.(iv) Interest on loan was given to Perfect @6% p.a.(v) Profits and losses are to be shared in the ratio of 4:2:1 up to 70,000and above 70,000 equally.Net profit of the firm for the year ended 31st March, 2015 (before aboveadjustments) was 1,11,000.Prepare Profit and Loss Appropriation Account and Personal Accounts of thePartners assuming capitals to be fixed. |
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Answer» Answer: Answer: 2. (Ans. Realisation Profit to A 73,000 and B 21,000, TOTAL Profit - 240.000 Verma and Sharma were partners sharing profits in the ratio of 3 1. On 31-3-2011 their BALANCE Sheet was as follows: Balance Sheet of Verma & Sharma (as at 31.3.2011) Liabilities Assets Amount ₹ Amount 3 70.000 Capital : Verma Sharma Creditors Land and BUILDING 1,20,000 80.000 2,00.000 Debtors 70.000 Bank 2.70.000 80.000 60.000 2.70.000 The firm was DISSOLVED on 1-4-2011 and the Assets and Liabilities were setties follows: (i) Creditors of 50.000 took over Land and Building in full settlement of their claim. (ii) Remaining Creditors were paid in cash. (iii) Machinery was sold at a depreciation of 30% (iv) Debtors were collected at a cost of 500 (v) Expenses of realisation were 1.700. |
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| 18. |
Journalise the following transaction in the books of sita: (1). business commenced with a capital of rs 600000 (2) . Rs 450000 deposited in a bank account. (3). Rs 230000 plant and machinery purchashed by paying Rs 30000 cash immediately. (4). purchased goods worth rs 40000 for cash and rs 45000 on account. (5). paid a cheque rs 200000 to the suppier for plant and manhinery. (6). rs 70000 cash sales (of goods costing rs 50000.) (7) . withdrawn by the proprietor rs 35000 cash for person use. (8) . insurance paid by cheque of rs 2500 (9). salary of rs 5500 outstanding. (10). furniture of rs 30000 purchased in cash. |
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Answer» From the following prepare Bank Reconciliation statement in the books of Rajath and co., as on 30.9.2020. a. Overdraft balance as PER cashbook Rs. 28,470. b. Interest ALLOWED by bank of Rs.200 was entered twice in the cash book. c. It was found that total of one PAGE on the payment side of the cash book which was Rs. 1,250 was written as Rs.1,520 on the next page. d. A cheque of Rs.32,000 issued to Insurance company was not yet presented for payment e. Out of cheques issued for Rs.7,500 cheques of Rs.5,000 were presented for payment till the date. f. Out of the cheques presented for payment one cheque of Rs.700 was not honored due to some technical REASONS. No entry was passed in the cash book for dishonor. |
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| 19. |
received a cheque of ₹ 780 from p and discount allowed to him ₹ 20 and the cheque received from p on 16-06-2019 was dishonoured how to write in three column cash book |
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Answer» hihihihihihihihihihihihihihihi |
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| 21. |
गैर व्यापारिक संस्था की आय एवं व्यय की चार madai लिखिए |
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Answer» are you WRITING EXAM if you are writing exam I can't HELP you |
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| 22. |
Prepare Mohinder's account from the following details2020Jan 1 Goods sold to Mohinder10,000Jan. 5 Goods retumed by Mohinder900Jan 7 Goods sold for cash to Mohinder2.000Jan. 10 Cash received from Mohinder1.580Discount allowed to him20Jan. 15 Goods sold to Mohinder at 10% trade discount (gross)3.000Jan. 18 Paid salary to the manager of Mohinder on his behalf2,500Jan. 30 Cheque received from Mohinder4,000 |
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Answer» Explanation: YES it is WRITE answers you are really good that i also DONT KNOW what you have writen |
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| 23. |
Invest acccrued up to the date of sale investment will be recorded incoloum of investment accounting |
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Answer» Answer: Market value is the amount obtainable from the SALE of an INVESTMENT in an open market, net of expenses necessarily to be incurred on or before disposal. Explanation: PLS MARK ME MY ANSWER AS BRAINLIEST ANSWER |
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| 25. |
Which is not a Revenue Receipts? Entrance fees Life member's Subscriptions rent of hall rent of ground |
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Answer» ʀᴇᴄᴏᴠᴇʀʏ ᴏғ ʟᴏᴀɴs ɪs ɴᴏᴛ ᴀɴ ᴇxᴀᴍᴘʟᴇ ᴏғ ʀᴇᴠᴇɴᴜᴇ ʀᴇᴄᴇɪᴘᴛs ʙᴇᴄᴀᴜsᴇ ʀᴇᴠᴇɴᴜᴇ ʀᴇᴄᴇɪᴘᴛs ʀᴇғᴇʀ ᴛᴏ ᴛʜᴏsᴇ ᴍᴏɴᴇʏ ʀᴇᴄᴇɪᴘᴛs ᴡʜɪᴄʜ ᴅᴏᴇs ɴᴏᴛ ᴄʀᴇᴀᴛᴇ ᴀ ʟɪᴀʙɪʟɪᴛʏ ғᴏʀ ᴛʜᴇ ɢᴏᴠᴇʀɴᴍᴇɴᴛ ᴏʀ ᴄᴀᴜsᴇ ʀᴇᴅᴜᴄᴛɪᴏɴ ɪɴ ᴀssᴇᴛs ᴏғ ᴛʜᴇ ɢᴏᴠᴇʀɴᴍᴇɴᴛ. |
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| 26. |
What is accounting? what are its limitations. |
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Answer» Limitations of Accounting Limitations of AccountingThere are some MISCONCEPTIONS about accounting. Like the fact that a Profit & Loss Statement shows the true profit or loss earned in a year, or that a balance SHEET perfectly depicts the financial position of a firm. Limitations of AccountingThere are some misconceptions about accounting. Like the fact that a Profit & Loss Statement shows the true profit or loss earned in a year, or that a balance sheet perfectly depicts the financial position of a firm.Whereas the truth is that accounting is not a PERFECT science or art or language YET. It has been EVOLVING for so many years and continues to evolve. The limitations of accounting must be studied to understand it better |
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| 27. |
Q-from the details below, calculate the amoud of medicinal consumedfor the year ended 31t December, 2018ParticularStock on Medicine January 102018 20,000Creditor of Medicine January or2018 15000Amount paid for Medicine, during the year18480ParticularStock of Medicines in December31, 2018 11400Creditors of Medicine onDecember 31, 20187,200 |
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Answer» Answer: AMOUNT of medicine consumed - Amount PAID for medicine = 18480 (-) creditors for jan.2018. =. 15000 (+) creditors for dec.2018 = 7200 purchase of medicine =. 10680 (+) opening STOCK. = 20000 (-) CLOSING stock. =. 11400 medicine consumed = 19280 |
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| 28. |
imagine that an organisation has a new strategic objective concerning the introduction of new technology throught the business which will affect all employees which types of policies and practices may need to be reviewed in the light of this objective |
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Answer» hniwbsusbbhhxndnkXdn |
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| 29. |
Explain advantages of subsidiary books |
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Answer» It's Advantages Saving Labour Hours: Recording in a SUBSIDIARY book saves a lot of time and CLERICAL hours. FIRSTLY there is no need to journalize and/or give narrations for every transaction. This HELPS reduce the time it takes to completely record a transaction. |
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| 30. |
7What is an advantage to using a multi-step income statement?Net Income is shown before income taxesDirect expenses and indirect expenses are broken out separatelyThe fixed costs and variable costs are broken out separatelyAll income items are grouped in one section, and all expenses in |
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Answer» ctlyszyopyxpuxpud7pdpdupysoyzoys6oxkgzsgusjsitxugxgiztstxtdydydyfugigiggtuf7t7fuffufufcuchch H h h hcjcnojgziyzxgi9y9ys |
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| 31. |
Chapter1 acount 9 question |
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Answer» Answer: What is primary objective of financial statements? What is the operating PROFIT? What is meant by MARSHALLING of assets and LIABILITIES? Explanation: HOPE it's helps to you please mark me as Brainliest THANK you |
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| 32. |
The account that are prepared at the end of each accounting year. |
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| 33. |
a company issued 10000 shares of rs 10 each . total application were for 12000 shares allotment was made on pro rata application money was rs 2 per share and allotment money rs 3 per share . mr rao failed to pay the allotment money on his 300 shares. how much is due from rao for allotment? |
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| 34. |
goods of the selling price of 20000 were sold at trade discount of 5% and cash discount of 2% payment received by cheque |
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Answer» Answer: 20000-1000-380 =18620 Explanation: TRADE Discount should be APPLIED FIRST and on the FIGURE ( 19000) , cash discount is applied. |
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| 35. |
If your savings account pays 9% interest compunded quarterly, then interest rate per quarter isSelect one:a. 4.5b. 4.9c. 3.25d. 2.25 |
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| 36. |
Purchase laptop rp 20000 @28./. Gst amount paid by bank |
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Answer» Laptap A/C Dr ToBank a/c |
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| 37. |
Radius, mid point of circle |
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Answer» in classical geometry, a radius of a circle or sphere is any of the LINE segments from its CENTER to its PERIMETER, and in more modern usage, it is also their length. the name COMES from the latin radius, meaning ray but also the SPOKE of a chariot wheel. |
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| 38. |
Q.6 The loss on sale of machine is debited to:a) Reservesb) Depreciation Fundd) None of thesec) Profit & Loss Account |
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Answer» B) DEPRECIATION FUND is the CORRECT answer |
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| 39. |
calculate current ratio,acid test ratio, absolute liquid ratio,comment onthe short term financial position |
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| 40. |
Acceptance issued to creditors |
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Answer» Answer: Accepting a BILL by creditors means the business is giving one of its bills receivable to the creditor so that the DUE amount PAYABLE to the creditor is directly paid by one of its (firm's) debtors.25-Dec-2 |
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| 41. |
Current ratio 2.5net working capital 135000reserve and surplus 90000gearing ratio 2liquid ratio 1.5bank overdraft 30000proprietary ratip 0.75 |
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Answer» EXPLANATION:IDK idk idk idkidkdidki |
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| 42. |
State the system of accounting |
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Answer» There are two types of accounting systems: The FIRST is a Single Entry System where a small BUSINESS records every transaction as a LINE item in a LEDGER. The other is a Double Entry System, where every transaction is RECORDED both as a debit and credit in separate accounts. Hope it helps u mate ❣️ |
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| 43. |
What is formulating worksheet |
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Answer» hsgshshsnsjhaba Explanation: jhsush3uxuwjisiSbdggsgid |
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| 45. |
Rectify the following errors assuming that these errors were located after thepreparation of Trial Balance. One sided errors be rectified by using suspense A/c. |
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| 46. |
3.Loss by theft is debited to(a) Manufacturing a/c (b) Profit and Loss a/c(c) Trading a/c ( (d). Balance Sheet |
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Answer» b) PROFIT and Loss Account Explanation Any IRRECOVERABLE loss is debited to P & L A/c |
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| 47. |
Meaning of adjustment sheet for class 11 th commerce |
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Answer» Balance sheet REPORTS the receivables that it has a right to receive as of the END of the accounting period. Income statement reports the expenses and losses that were INCURRED during the accounting period. |
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| 48. |
3. Which of the following is not a feature of authority?(A) Right to do something(B) Legitimate power given by organisation.(C) Derived from position.(D) Requires no formal position. |
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Answer» D Explanation: |
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| 49. |
84) Which of the following adjusting double entries iscorrect for prepaid expenses?- A) Debit = Prepaid Expense, Credit = ExpenseB) Debit = Expense, Credit = Prepaid Expensec) Debit = Cash, Credit = ExpenseD) Debit = Prepaid Expense, Credit = Cash |
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Answer» DEBIT = PREPAID EXPENSE, CREDIT = Cash d) |
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| 50. |
1037Special Purpose Books Cash BookSingle Column or Simple Cash Book-CBSEXIPRACTICAL PROBLEMSosited inC in the1. Enter the following transactions of Pápnder in his Single Column Cash Book and balance itEu 2009)as been3200.00050.0005001 Pipinder started business with capital2 Purchased furniture for cash3 Purchased goods for cash.5 Paid freight7 Sold goods for cash10 Paid to PameshJan 15 Soid goods for cash20 Paid wages25 Purchased goods from Paj on creditJan 31 Paid rent by Chegue.of the20.00010.00010.00020.0005.000the[Cash Balance 1,27,500.) |
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Answer» fghhhhregtdwcsvvfdddyegtsRwfjft rtwvdtvfafrfvsgGebgrgj |
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