accounts ques bank

7/28/2019 Accounts Ques Bank

1/24

Question Bank for B.com (H) 1st semester subject financial accounting, subject code 104

Faculty Name Vinay gupta

50 objective type question

Question 1

Is Book-Keeping is a subfield of accounting?

Question 2

Complete the sentence

Book-keeping is mainly concerned with--------------------

Question 3

Write any three name of the function of accounting.

Question 4

Complete the sentence

Financial statements are part of --------------------

Question 5

Who are the users of accounting information?

Question 6

What is considered by Financial statement?

Question 7

On January 1, Sohan paid rent of Rs. 5,000 how it can be classified?

Question 8

On what basis financial position of the business is ascertained?

Question 9

What are the fundamental accounting assumptions?

Question 10

Mohan enterprises follow the fixed method of depreciation year after year it is the example ofwhich accounting assumption?

Question 11

A purchased a car of Rs. 5,00,000, making a down payment of Rs. 1,00,000 and signing a Rs.

4,00,000, bill payable due in 60 days. What will be result of this transaction ?


2/24

Question 12

For what purpose Assets are held in the business?

Question 13

In what condition concept of conservatism applied?

Question 14

What is result when there is a decrease in the amount of creditors?

Question 15

On what principle the determination of expenses for an accounting period is based?

Question 16

On the basis of which concept economic life of an enterprise is split into the periodic interval?

Question 17

What will be the effect if Purchase of machinery in cash

Question 18

Measurement discipline deals with---------------------

Question 19

What are the valuation principles?

Question 20

Book value of machinery on 31st march, 2010 Rs. 10, 00,000

Market value as on 31st march, 2006 Rs. 11, 00,000

As on 31st march, 2006, if the company values the machinery at Rs. 11,00,000, which of the

valuation principle is being followed?

Question 21

Which account will be credited when The rent paid to landlord

Question 22

In case of becoming bad, the amount should be credited to which account?

Question 23

Which financial statement shows the accounting equation, assets= liabilities+ capital


3/24

Question 24

Which account is odd? Office furniture, Freehold land and building, Stock of material,Plant and

machinery

Question 25

The debts written off as bad, if recovered subsequently which account should be credited?

Question 26

What is the nature of prepaid salary account?

Question 27

What is nature of Proprietor account?

Question 28

What is nature of Patents accounts?

Question 29

What is nature of Rent account?

Question 30

In which system of book-keeping every business transaction affects two accounts?

Question 31

A sale of goods to Ram for cash in this transaction which account should be debited?

Question 32

A withdrawal of cash from business by proprietor which account should be credited?

Question 33

Write any error when a trial balance will not balance?

Question 34

What is the next step after the preparation of ledgers?

Question 35

The debit note issued is used to prepare which book?

Question 36

A second hand car was purchased on credit from B brothers for Rs. 10,000. It will record in

which Book?


4/24

Question 37

Accounting for partial recovery from Mr. C of an amount of Rs. 2,000 earlier written off as bad

debts

1. Journal proper

2. Sales book

3. Purchase book

4. Cash book

Question 38

Credit purchase of stationary worth Rs. 5,000 by a stationary dealer

1. Journal proper

2. Sales book

3. Purchase book

4. Cash book

Question 39

Purchased goods from B worth Rs. 5,000 on credit basis

1. Bill Receivable book

2. Bill payable book

3. Purchase book

4. Sales book

Question 40

Unpaid salary Rs. 340 is to provided for in the account

1. Journal proper

2. Sales book

3. Bill Receivable book

4. Bill payable book

Question 41

Goods outwards journal is meant for recording all returns of goods

1. Sales on credit

2. Purchase on credit


5/24

3. Purchase on cash

4. Sales on cash

Question 42

The sales book is a

1. Part of journal

2. Is a part of ledger

3. Is a part of balance sheet

4. None of the above

Question 43

Hywel purchases goods on credit with a list price of $100. The supplier gives Hywel a tradediscount of 15% and also offers a cash discount of 10% for payment within 30 days.

What is the amount that Hywel will debit to his purchases account?

(a) $115.00(b) $85.00(c) $76.50(d) $75.00

Question 44

Which of the following best describes an invoice?(a) A document produced by a purchaser detailing items purchased(b) A document produced by a seller detailing items sold(c) A document produced by a seller following the return of goods

(d) A document produced by a seller listing monthly transactions

Question 45

The following is a summary of the petty cash transactions for a week:

Income $ Expenditure $

Opening balance 500 Travelling expenses 150

Sale of stamps 10 Subsistence expenses 250

Sale of paper 50

Petty cash is maintained using the imprest system.

What sum should be reclaimed by the cashier at the end of the week?

(a) $150(b) $340(c) $400(d) $500


6/24

Question 46

Which of the following is a current liability?

(a) Closing inventory(b) Opening inventory(c) Petty cash(d) Bank overdraft

Question 47

Which of the following errors will become apparent when drawing up a trial balance?

(a) A credit purchase was completely omitted from the accounting records(b) A credit sale was recorded as a cash sale(c) The payment of wages was debited to the rent account instead of the wages account(d) A cash sale was recorded correctly in the sales account and credited in the bank account

Question 48

Carion sells the following goods for cash during January:

Net price

$

Sales tax

$5 Jan To Maurice 386 68

19 Jan To Harris 715 125

28 Jan To Merton 430 75

What are the correct entries in Carions general ledger?

(a) Dr sales $1,799, Dr sales tax $268, Cr cash $2,067(b) Dr cash $2,067, Cr sales $1,799, Cr sales tax $268(c) Dr sales $1,531, Dr sales tax $268, Cr cash $1,799(d) Dr cash $1,779, Cr sales $1,531, Cr sales tax $268

Question 49

Annabels cash book shows her to be $2,030 overdrawn. A bank reconciliation, however, showsthat a standing order payment for $365 had been entered in the cash book twice, and that adishonoured customers cheque for $275 had been debited in the cash book rather than credited.

What is Annabels true overdraft position?

(a) $1,845(b) $1,940(c) $2,120

(d) $2,215

Question 49

An employee is paid $4.50 hourly, and works Monday to Friday inclusive for eight hours daily,Saturday four hours attime-and-a-half, and Sunday five hours at double time.

What is the weekly gross pay of the employee?


7/24

(a) $220.50(b) $229.50(c) $243.00(d) $252.00

Question 50

Iwans payables ledger showed that $2,300 was owed to suppliers at the start of the week.During the week Iwan made purchases of $3,900 although he paid $900 of this in cash. He alsopaid suppliers $1,000 by cheque.

What is the closing balance on his payables ledger?

(a) $4,000(b) $4,300(c) $5,200(d) $6,100

Question 51

What business transaction would result in the following double entry being posted?

Dr Cash Cr Sales

(a) The purchases of goods for resale on credit(b) The receipt of cash from a credit customer(c) A cash sale(d) The banking of petty cash

50 question of short answer

1. Write an ideal definition of double entry system.

2. What do you mean by double entry system?

3. Write the main characteristic of Double entry system.

4. Explain the type of account with example.

5. Double entry system is the only best system. Explain.

6. What do you mean by book of original entry?

7. What do you mean by compound entry? Explain with one example.

8. Explain the rules of journal entries regarding cash and trade discount.

9. Write various kind of cash book.

10. What is opening entry? With an Imaginary example give opening entry.


8/24

11. What is contra entry? Explain

12. Explain the meaning and purpose of petty cash book.

13. Give the specimen of Analytical petty cash book with five transactions.

14. Why cash book is called book of original entry and also a subsidiary book?

15. What is ledger? Give the Performa of ledger.

16. Why is ledger necessary?

17. Explain the procedure of balancing of nominal account.

18. What is posting? State the rules of posting in ledger.

19. What are the advantages of keeping ledger?

20. Distinguish between journal and ledger.

21. What do mean by trial balance? Why it is prepared?

22. Explain four errors that are disclosed by trial balance.

23. Explain the meaning and objectives of Trail Balance.

24. What are the different methods of preparing Trail Balance?

25. Name the errors which do not affect the Tail Balance.

26. Draw up a Trail Balance with imaginary figures.

27. What are the reasons for non-agreement of trial balance?

28. Pass the journal entry: - Received Rs. 177 cash from Kiran after allowing him a discount of Rs. 13.

29. Pass the journal entry: - Paid Ravi Rs.188 after deducting discount of Rs. 12 by cheque.

30. Pass the journal entry: -Received cheque for Rs. 485 from Ali after allowing him a discount of 3%.

31. Pass the journal entry: -Received cash from Joshi of Rs. 145.5 a discount 3% being deducted.

32. Pass the journal entry: -Purchased good at the list price of Rs.50,000 from Diwan at 20%

T.D. and 2% C.D. and paid 60% by cheque.

33. Pass the journal entry: -Sold goods to Lokesh at the list price of Rs. 100,000 less 20%

T.D. and 2% cash discount and received 40% by cheque. Cheque was immediately

deposited into bank.

34. Pass the journal entry: -Sold goods to Amrish for Rs.20,000 less 5% T.D. and 10% cash

discount Amrish paid 1/5th immediately in cash.

35. Pass the journal entry: -Sold goods for Rs. 80,000 to Diwan for cash and charged 8%

sales tax.

36. Pass the journal entry: -Sold goods to poonam worth Rs. 80,000 plus VAT @ 10%.


9/24

37. Pass the journal entry: -withdrew from banks for personal use Rs. 500

38. Pass the journal entry: -Received a Cheque of Rs. 4,750 from Pradeep in full settlement

of Rs. 4,900.

39. Pass the journal entry: -Paid to Praveen cash Rs. 1000 and a cheque of Rs. 3,500 in full

settlement of his account amounting Rs. 4,750.

40. Pass the journal entry: -Pass the journal entry :- A customer, Gyan chand, who owed Rs.

600 to us, become insolvent and only 60 paisa in the rupee were received.

41. Pass the journal entry: -A lot of goods costing Rs. 8,000 was destroyed by fire, but the

insurance company admitted a claim of Rs. 5,000 only.

42. Pass the journal entry: -Salaries paid Rs. 12,000 and outstanding salaried Rs. 3,000

43. What are accounts related to Goods?

44. Pass the journal entry: - Cost of machinery is Rs. 50,000 on 1st Nov. 2010, year ended on

31st march 2011 depreciated by 10%.

45. Draw the Performa of Bill Receivable book.

46. Draw the Performa of Bill payable book .

47. Pass the journal entry: -Goods given away as charity Rs 50

48. What is cash basis of accounting?

49. What is Accrual basis of accounting?

50. What is Hybrid basis of accounting?

50 questions of long answer

Question 1.What do you understand by financial accounting? Explain the four main limitation offinancial accounting.

Question 2.What are the advantages of accounting?Question 3.Explain the role of accounting in latest scenario.Question 4.Why it is necessary for accountant to follow going concern concept?Question 5.


10/24

What is the advantage to adopt consistency convention for the preparation of financialstatement?Question 6.What is the drawback of money measurement concept?Question 7.What is the basic difference between cash basis and accrual basis of accounting?Question 8.Why are capital and drawing considered as personal account?Question 9.

What do you understand by the balancing of accounts?Question 10.Explain the opening entry with an example.Question 11.Give three advantages and three limitation of journal.Question 12.Explain Importance of Accounting.Question 13.Journalise the following transactions:1998

June 1 Purchased goods worth Rs.300 from Vimal and Rs.500 from Kamal on credit.June 3 Sale of goods worth Rs.1,000 to Balram and Rs.700 to Dhanram.June 5 Cash of Rs.900 received from Ramasamy and Rs.800 from Krishnasmy.June 7 Paid Rs.800 to Pradeep and Rs.500 to kuldeep.June 9 Withdrawn from bank Rs.600 for office use and Rs.300 for personal use.

Question 14

Explain branches of accounting

Question 15.

From the following particulars prepare a Trial Balance as on 30th September 2001 : Stock 1stOctober 2000 Rs. 1,380, Debtors Rs. 2,960, Creditors Rs. 1,580, Capital Account 1st Oct. 2000Rs. 4,100, Drawings Rs. 1,200, Bills Receivable Rs. 770, Bad Debt written off Rs. 190,Provision for Bad and Doubtful Debts Rs. 160, Bills Payable Rs. 470, Wages & Salaries Rs.1,920, Purchases Rs. 6,580, Sales Rs. 10,670, Bank Rs. 580, Cash Rs. 40, Rent, Rates &Insurance Rs. 330, Sales Returns Rs. 410, Purchases Returns Rs. 280, Fixtures & Fittings Rs.550, General Expenses Rs. 200, Discounts allowed Rs. 520, Discounts Recd. Rs. 370.

.Question 16.

Journalize the following transactionsApril1. Ravi started business with Rs. 15,000 of which Rs. 4,000 were borrowed at 15% p.a. fromShri Sashi.

2 Purchased goods worth Rs. 4,000 from Anant at 2% trade discount.3 Cash sales to Madan Rs. 1,200.6 Credit sales to Salvi Rs. 2,000 less trade discount 2%.9 Pard cash Rs. 1,950 to Anant and received discount of Rs. 1012 Received Rs. 1,950 from Salvi in full settlement of his dues.14 Returned goods of the price of Rs. 100 to Anant.16 Paid into bank Rs. 5,000.18 Issued a cheque for Rs. 1,000 to Anant on account.19 Purchased goods of Rs. 2,000 from Anant.22 Sold foods costing Rs. 1,000 at 25% profit to Ratan.


11/24


12/24

Question 20

Journalize the following transactions1998June 1 Karthik commenced business with Rs.20,000.June 2 Paid into bank Rs.5,000.June 3 Purchased Plant worth Rs.10,000 from Modi & Co.June 4 Purchased goods worth Rs. 5,000 form Anwar.June 6 Goods worth Rs.4,000 sold to Anbu

June 8 Sold goods worth Rs.2,000 for cash.June 10 Goods returned by Anbu Rs.50.June 15 Paid rent Rs.250.June 18 Withdrawn from bank for office use Rs. 2,500.June 20 Paid Salaries Rs.1,800.June 25 Withdrawn for personal use Rs.250.June 26 Goods returned to Anwar Rs.100.June 27 Paid for office furniture Rs.1,500 by cheque.June 28 Received Rs.3,900 cash from Anbu and discount allowed Rs.50.June 29 Paid Anwar on account Rs.4,800 and discount allowed by him Rs.100.

Question 21Journalize the following transactions2000Jan.1. Mohan started business with Rs.25,0002. Bought goods from B Rs.20,0003. Paid into bank Rs.10,0004. Returned goods to B Rs.10005. Sold goods to R Rs.25006. Paid cartage Rs.207. Received dividend on investment Rs.1008. Paid salary Rs.250

Question 22.

Journalize the following transactions in the books of Mr.Chandran:2001April1 Started business with cash Rs.40,000 and furniture Rs.10,000.5 Paid tuition fee of the son Rs.1,0008 Paid household expenses Rs.1,400.10 Sold personal car for Rs.18,000 and the amount is brought into

the business.15 Withdrew goods for personal use Rs.2,00016 Sold goods to Navin on credit Rs.8,00018 Sold old typewriter Rs.1,00019 Purchase goods on credit from Ramesh Rs.20,00020 Received interest on investment Rs.6,00022 Received commission from Manohar Rs.2,00023 Receive a cheque from Navin Rs.5,00025 Issued a cheque to Ramesh Rs.12,000


13/24

26 Received cash from Anand on account Rs.4,00027 Paid cash to Bhagwan on account Rs.1,00028 Returned goods to Ramesh Rs.1,00029 Navin returned goods Rs.50030 Paid rent Rs.1,000

Paid salaries Rs.12,000

Question 23

Enter the following transactions in a Single Column Cash Book1998 Rs.

July 1 Cash on hand 2,000July 2 Goods purchased for cash 700July 3 Paid Carriage Inwards 70July 4 Cash Sales 600July 5 Paid Salaries 1,100July 6 Cash received from Shankar 1,100July 10 Sale of old machinery 800July 12 Cash Sales 700July 14 Goods purchased from Kamal & Co. on credit 600July 16 Goods sold to Sathyan on credit 500July 18 Stationery purchased 400

July 19 Lent to Vignesh 120July 20 Received from Dinesh 150July 22 Withdrawn from business for private use 140July 23 Cash Sales 150July 24 Paid fro repairs 60July 25 Paid Rent 150July 31 Vignesh repaid his loan 120

Question 24

Enter the following transactions in a two column Cash Book1998 Rs.July 1 Cash on Hand 1,200

July 2 Received from X 3,900Allowed him discount 100

July 5 Purchased goods for cash 4,100July 7 Paid to M 850

Discount allowed by him 50July 9 Cash Sales 4,900July 11 Withdrew from bank 5,500July 15 Credit purchase from Y 3,000July 21 Paid to Y in full settlement 2,800July 22 Received from K 1,250

Allowed him discount 50

July 23 Drew Cheque for office use 200July 25 Paid office rent 800July 28 Received interest on investments 3,000July 31 Paid into bank 3,150

Question 25

Enter the following transactions is Cash Book with bank and discount columns only,assuming all receipts are banked on the same day and that all payments are made bymeans of cheques only.


14/24

1998 Rs.July 1 Bank Balance 5,000July 4 Purchased goods for each 1,600July 5 Sold goods to A for cash 1,300July 10 Received cheque from W (in full settlementof Rs.400) 378July 12 Paid H 375

Discount allowed by him 25July 13 Received Commission from G 231July 15 Paid Traveling Expenses to J 45

July 18 Received for Cash Sales 245July 19 Paid to S for office furniture 185July 20 Paid Electricity Charges 35July 21 Paid Office Rent 100July 24 Drew self cheque for personal use 300July 25 Received from N 245July Discount allowed 25July 29 Drew cheque for petty cash 190July 30 Drew cheque for salaries 360July 31 Paid to M (in full settlement of Rs.485) 450

Question 26

Enter the following transactions in a petty cash book maintained on Imprest System withanalytical columns:1998 Rs.July 15 Received from the chief cashier 250July 16 Bought stamps 10July 17 Paid cartage 25July 18 Tea and Lunch expenses to customers 35July 19 Telegram sent 5July 20 Paid Taxi Hire 8

July 21 Purchased envelopes 6July 22 Paid for repairs of typewriter 21July 23 Purchased one bottle of ink 10July 25 Purchased Clips 10July 27 Paid Railway far to manager 30July 31 Paid to Cooli 5

Question 27

Anil had the following transaction prepare accounting equation

1. Commenced business with cash Rs. 50,000.

2. purchased goods for cash Rs. 20,000 and credit Rs. 30,000.3. sold goods for cash Rs. 40,000, costing Rs. 30,000.

4. Rent paid Rs. 500, salaries Rs. 5,000

5. Rent outstanding Rs. 100, salaries outstanding Rs. 1,000.

6. Bought furniture Rs. 5,000 on credit.

7. Bought refrigerator for personal use Rs. 5,000

8. Purchased computer for cash Rs. 20,000


15/24

9. Cash withdrawal for personal use Rs. 10,000.

10. Interest on drawing charged Rs.500, and the interest on capital Rs. 1,000.

Question 28

With the help of following transaction prepare accounting equation

1. Sohan start business with cash Rs. 80,000 and Machinery Rs. 20,000

2. Interest on above capital was received at the rate of 10%

3. Money withdrawn from the business for the personal use Rs. 10,000 and good

withdrawn of Rs. 5,0004. Interest on drawing Rs. 500

5. Depreciation charge on machinery Rs. 2,000

Question 29

With the help of following transaction prepare accounting equation

1. Start business with cash Rs. 70,000 and Goods Rs.50,000

2. Sold for cash Rs. 40,000 costing Rs. 30,000

3. Rent paid in advanced Rs. 7000

4. Purchased goods for cash Rs. 60,000 and on credit Rs. 52,000

5. Paid rent Rs. 6,000 in cash and on credit Rs. 2,0006. Proprietor paid the fee of his children Rs. 10,000

7. Commission received in advanced Rs. 6,000

8. Accrued interest Rs. 4,000

Question 30

From the following balance on 1st January 2011Pass the opening entries.

Assets Cash Rs. 20,000; Stock Rs. 60,000; Debtors Rs. 50,000; Furniture Rs.5, 000;

Machinery Rs. 25,000

Liabilities- Creditors Rs. 25,000; Bank overdraft Rs. 20,000; loan Rs.50, 000; Capital Rs.

1, 05,000

Question 31

Following are the assets and liabilities of Mr. Avinash. Calculate his capital

Cash Rs. 50,000, bank Rs. 1, 00,000, debtors Rs. 40,000, plant and machinery Rs.

1,50,000 furniture Rs. 50,000 land Rs. 4,00,000 creditors Rs. 45,000 bill pay able Rs.

48,000, bill receivable Rs. 1,20,000

Question 32

Open T shape account of our creditors Alok and write the following transaction on

proper side:Rs.

1. Purchased good from Alok 88,000

2. Paid to Alok 55,000

3. Goods return to Alok 4,400

4. More good were purchased from Alok 35,200

5. Paid to Alok 44,000


16/24

Question 33

Open T shape account of furniture and write the following transaction on proper side:

Rs.

1. Purchased furniture 60,000

2. Old furniture was sold for 20,000

3. More furniture was purchased for 40,000

4. Sold furniture for 35,000Question 34

With the help of following ledger balances you are requested to prepare trial balance

Rs.

Capital 1, 72,200

Purchase 44,280

Discount allowed 1,478

Carriage inward 10,700

Carriage outward 2,828

Sales 73,800Sales return 370

Return outward 860

Building 99,260

Rent 1,476

Opening stock 19,065

Sundry debtors 24,846

Sundry creditors 14,760

Investment 4,428

Discount (cr.) 2,215

Cash in hand 12,544

Furniture 42,560

Stock (not adjusted) 25,215

Question 35

Following is the trial balance which is not correct trial balance. You are required to

redraft the trial balance as on dated 31st December, 2005

particulars L.F. Amount (Dr.) Amount (C.r.)

CapitalDebtorsCreditors

--------3,60,000--------

3,93,600-------1,57,440


17/24

MachineryStockSalesSundry expensesWages and salariesFurnitureStock (Closing)PurchaseDrawing

Loan from ICICIInterest allowedpremises

38,4002,39,232--------98,40059,040--------1,75,77612,30,000--------

1,06,944--------1,18,080

24,25,8720.

--------------16,80,000--------------96,000--------------88,560

-------10,272-------

24,25,872

Question 36

Show the effect on liabilities and capital of the following transaction with the help of

accounting equation:

Rs.Started business with

Cash 1,6,0000

Goods 50,000

Machinery 90,000

Goods purchased from Ramesh was 85,000

Rent outstanding 5,000

Sold goods to vishal for cash (costing Rs. 32,000) for 40,000

Paid cash to Ramesh was in full settalment for cash 83,000

Prepaid insurance 2,000

Further capital invested 50,000

Depreciation on machinery @ 20%

Received commission 500

Paid Rent 3,000

Question 37

Open T shape cash account, debtors account and creditors account and place the items

on the proper side:

Rs.1. Purchased goods from mohan 40,000

2. Sold goods for cash 60,000

3. Purchased goods from mohan 30,000

4. Sold goods tom hari for cash 20,000

5. Sold goods to Kishan 80,000

6. Received from kishan 50,000


18/24

7. Paid to mohan 25,000

Question 38

Enter the following transaction into the journal of Mukesh

2005 Rs.

Jan. 1 started business with cash 1, 00,000

Jan.2 withdrew cash from bank for office use 5,000

Jan.3 withdrew cash from bank 2,000

Jan.3 withdrew cash from bank for personal use 4,000Jan.4 withdrew cash from bank for personal use of the proprietor 3,000

Jan.6 paid fees of the children of the proprietor 7,000

Jan.7 Purchased a machinery 20,000

Jan.7 interest on capital @10%

Jan.8 interest on drawing 500

Jan.10 depreciation on machinery @ 15%

Jan.11 purchased stationery 200

Jan.12 Amount Received from the sale of wastes 300

Jan.15 Mohan a customer directly deposited into our account 1,500Question 39

Pass journal entries for the following

1. Goods valued Rs. 5,000 were purchased on credit, received and taken into stock

but were not recorded in the book.

2. Sold old machinery to Ashok Rs. 20,000 the book value being Rs. 18,000

3. Paid outstanding wages Rs.8,000

4. Sold to AVI at a trade discount of 10% and cash discount of 5% goods of the list s

5. Purchased from Babita goods at a list price of Rs. 10,000 at 20% trade discount

and 5% cash discount, cash was paid upto 60% of the amount.

Question 40

Prepare correct trial balance from the following trial balance in which there are mistake

Dr. Cr.

Rs. Rs.

Cost of goods sold 1,60,000 ----

Closing stock ---- 40,000

Debtors ---- 60,000

Creditors ---- 30,000Fixed Assets 50,000 ----

Opening stock 60,000 ----

Expenses ---- 20,000

Sales ---- 2, 00,000

Capital 90,000 ----


19/24

Question 41

What is the difference between cash basis and accrual basis of accounting?

Question 42

Prepare line presentation of accounting process

Question 43

What is the difference between Book-keeping and accountancy?

Question 44

Make necessary entries in the journal of sudhir in respect of following transaction1. Sudhir commenced business with Rs. 50,000, out which Rs. 30,000 were his own

and Rs. 20,000 were borrowed by him from his brother sushil

2. Purchased goods for Rs. 20,000, out of which goods of Rs. 14,000 are insured.

3. Insured goods of the value of Rs. 3,000 were destroyed by fire but loss amounted

to Rs. 2,500 only.

4. The insurance company accepted this claim but paid for it after two days.

5. Received from Mahesh an order of goods of Rs. 3,000

Question 45

The following balances appeared in the books of Ashok as on 1st Jan., 2008:Assets: Cash Rs. 50,000; Stock Rs. 30,000; Debtors Rs. 50,000; Machinery Rs. 60,000

Liabilities: Creditors: Rajesh Rs. 30,000

Following item took place in January 2008:

January 4: sold goods for cash Rs. 7,000 and on credit Rs. 3,000 to Ram.

January 6: Ram returned good for Rs. 1,000

January 10: purchased goods from Rajesh of the list price Rs. 10,000 valued at Rs. 9,000

January 15: bought goods of the list price of Rs. 15,000 from Rakesh less 10% trade

discount and 5% cash discount and paid 40% immediately.

January 20: paid to Rajesh Rs.38,600 in full settlement of hid account

January 25: paid Rs. 500 for the life insurance premium of the proprietor

January 31: Received for commission Rs. 2,000

Question 46

What is the Difference Between Trade Discount and Cash Discount?

Question 47

Enter the following transactions is Cash Book with bank and discount columns only,assuming all receipts are banked on the same day and that all payments are made by

means of cheques only. 1998 Rs.July 1 Bank Balance 5,000July 4 Purchased goods for each 1,600July 5 Sold goods to A for cash 1,300July 10 Received cheque from W (in full settlement of Rs.400) 378July 12 Paid H 375Discount allowed by him 25July 13 Received Commission from G 231


20/24

July 15 Paid Traveling Expenses to J 45July 18 Received for Cash Sales 245July 19 Paid to S for office furniture 185July 20 Paid Electricity Charges 35July 21 Paid Office Rent 100

July 24 Drew self cheque for personal use 300

July 25 Received from N 245July Discount allowed 25

July 29 Drew cheque for petty cash 190July 30 Drew cheque for salaries 360July 31 Paid to M (in full settlement of Rs.485) 450

Question 48

Enter the following transactions in a petty cash book maintained on Imprest System withanalytical columns:1998 Rs.July 15 Received from the chief cashier 250July 16 Bought stamps 10July 17 Paid cartage 25

July 18 Tea and Lunch expenses to customers 35July 19 Telegram sent 5July 20 Paid Taxi Hire 8July 21 Purchased envelopes 6July 22 Paid for repairs of typewriter 21July 23 Purchased one bottle of ink 10July 25 Purchased Clips 10July 27 Paid Railway far to manager 30July 31 Paid to Coolie 5

Question 49

Write short notes ona) Inward invoice b) Outward invoice c) Debit and Credit noted) Contra Entries e) Imprest system.

Question 50

From the following ledger accounts of Sathiya, draw Trail Balance as on 31 stDecember2004.

Rs. Rs.House Property 45,000 Repairs 1,200Furniture 5,000 Rent Received 4,800Utensils 6,000 Medical Expenses 1,200

Ornaments 25,000 School Free 1,800Cash 630 Conveyance 1,350Bank Balance: Cosmetics 1,150Fixed Deposits 20,000 Interest Received 3,000Savings Bank 3,500 House Building Loan

from Govt. 20,000Shares & Govt. Securities 12,000 Interest paid 1,870Claims against persons 1,500 Municipal Taxes 3,000


21/24

Salary (Income) 24,000 Income-tax 2,500Servants wages 1,200 Accumulated Fund 88,300Food and Drink 3,750Dress and Clothings 2,450

Question 51


22/24


23/24


24/24

accounts ques bank

Documents