List of top Accountancy Questions

Classify the following items under major heads and sub-heads (if any) in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013:

(a) Bills Payable

(b) Public Deposits

(c) Accrued Income

From the following information, prepare a Common Size Statement of Profit and Loss of AG Ltd. for the year ended 31st March, 2025:

Chaitanya and Divya were partners in a firm sharing profits and losses in the ratio of 2:1. From 1st April 2025, they decided to share future profits and losses in the ratio of 2:3. On this date, their balance sheet showed a debit balance of Rs 1,80,000 in the Profit and Loss Account and a balance of Rs 90,000 in General Reserve. The partners decided to distribute the General Reserve, but decided not to disturb the Profit and Loss Account, which will continue in the books of the reconstituted firm. Pass necessary journal entries for the above transactions on the reconstitution of the firm. Show your workings clearly.

Manas Ltd. issued 60,000, 10% Debentures of Rs 100 each at a premium of 8%, redeemable at a premium of 5%. 'Loss on Issue of Debentures Account' will be debited in the books of Manas Ltd. by:

Disha Ltd. purchased furniture worth Rs 2,85,000 from Gupta Ltd. The purchase consideration was paid by issue of 7% Debentures of Rs 100 each at 5% discount. The number of debentures issued by Disha Ltd. was:

Bright Motors Ltd. was registered with an authorised capital of Rs 10,00,00,000 divided into equity shares of Rs 100 each. The company issued 3,00,000 shares to the public for subscription. The amount was payable as follows: On application - Rs 30 per share; On allotment - Rs 50 per share; On first and final call - balance. All the shares were fully subscribed. All amounts were duly received except from Raman, a holder of 500 shares, who failed to pay the first and final call.

Using the Formula tab and dialog box, write the formula to create function 'IF' on the given spreadsheet, where the total income minus expenses is 20% if it is more than Rs 50,000 and 10% if it is less than Rs 50,000. Also write the result statement.

The computer screen shows correct a #DIV/0! Error when a number is divided by zero in the calculations. Give the reason for showing this error (except the one given here). Also state the possible solutions to correct this error.

What are the options available to select 'Minimum' and 'Maximum' type while changing conditional format?

What are the three categories in which entries can be classified while making voucher entry?

What is a 'Radar Chart'? What purpose does it serve?

Which of the following is not contained on formula tab on Excel ribbon?

The accounting software which satisfies the requirement of large business organisations with multiusers and geographically scattered locations is:

A1: E2 refers to:

Fixed Asset Accounting sub-system generates information about:

It is a widely accepted security control. It uses binary encoding format of storage to offer access to database. It is known as:

A column chart can be changed to a pie chart because:

I. Only one data series is used to plot it.

II. The plotted data values are positive.

III. The data values are not equal to zero also.

IV. More than seven categories of data can be represented.

Identify the correct option:

(a) From the following information, calculate Cash Flows from Investing Activities:

Additional Information: During the year, a machine costing Rs 80,000 on which accumulated depreciation was Rs 20,000, was sold at a loss of 20%.

(b) From the following information, calculate Cash Flows from Financing Activities:

Additional Information: Rs 3,00,000, 10% Debentures were issued on 1st October, 2024.

From the following information, prepare a Comparative Statement of Profit and Loss of AX Ltd. for the year ended 31st March, 2025:

From the details given below, calculate:

(i) Quick Ratio

(ii) Working Capital Turnover Ratio

(i) Calculate Revenue from Operations from the following information:

Average inventory - Rs 1,20,000

Inventory turnover ratio - 8 times

Goods are sold at a profit of 20% on revenue from operations.

(ii) Calculate Trade Payables Turnover Ratio from the following information:

Credit purchases during 2024-25: Rs 24,00,000

Creditors on 1st April, 2024: Rs 3,00,000; Bills Payables on 1st April, 2024: Rs 2,00,000

Creditors on 31st March, 2025: Rs 4,80,000; Bills Payables on 31st March, 2025: Rs 2,20,000

Classify the following items under major heads and subheads (if any) in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013:

(a) Interest Accrued on Investments

(b) Calls-in-Advance

(c) Mortgage Loans

Ratios that are calculated for measuring the efficiency of operations of business based on effective utilisation of resources are called:

Which of the following statements are correct?

I. A low current ratio endangers the business and puts it at risk of facing a situation, where it will not be able to pay its short-term debts on time.

II. Trade payables turnover ratio expresses the relationship between net credit sales and average trade payables.

III. Operating profit ratio plus Gross profit ratio = 100.

IV. Inventory turnover ratio determines the number of times inventory is converted into revenue from operations during the accounting period under consideration.

The following information was obtained from the books of PQR Ltd.: Profit and Loss balance (Dr.) as at 31st March, 2024: Rs 30,000; Profit and Loss balance (Cr.) as at 31st March, 2025: Rs 56,000; Interim Dividend paid during the year: Rs 36,000. The net profit before taxation for the year ended 31st March, 2025 will be: