BASIC ACCOUNTANCYJAIIB DECEMBER 2002 EXAMINATIONSECTION I
Q1. Define any five of the following terms:a. Lease Accountancyb. Accounting Standardsc. Computerised Accountingd. Cash basis of accountinge. Cash Credit f. No-Banking assetsg. Inter-Bank Adjustmentsh. Returns Inwards Journal
Answer to Q 1.
: Accounting procedure followed and separate set of booksmaintained to record transactions relating to lease is known as Lease Accounting. b.
: A recognized accounting body of a country issues certain policy documents relating to various accounting transactions and procedures which areknown as accounting standardsc.
: Using computer accounting software package for recording, classifying summarizing and interpreting various accounting transactions isknown as computerized accountingd.
Cash basis of accounting
: All accounting entries are recorded only when cash isreceived or paid. Non-cash transactions are not recorded in accounting books.e.
: Cash credit is an arrangement with a bank to get a loan up to a limitagainst pledge or hypothecation of some securitiesf.
: Assets in possession of bank, which are acquired for non- payment of loan dues from the loanee are known as non-banking assets.g.
: Various adjustment transactions, which take place betweenthe Head Office and various branches of the bank are known as Inter-bank adjustmentsh.
Returns inward journal
: A subsidiary journal or daybook where transactions relatingto sales returns are recorded
Q2. The accounting books of a Commercial Bank show some of the following accountingheads. At the end of an accounting period they are either recorded in the Profit and LossAccount or Balance Sheet. You are required to identify where they are recorded and givereason for your answer. (Any five)a. Demand depositsb. Discount on billsc. Stationeryd. Doubtful debtse. Interest on term depositsf. Loans to co-operative Banksg. Interest on RBI borrowingsh. Payment to and provisions for employees