PARAS MAL JAIN PGT COMMERCE VKV HURDA ACCOUNTANCY 11

WORK SHEET
BASIC ACCOUNTING TERMS

1. What are Assets?

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2. What are Fixed Assets?
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3. Name four Fixed Assets.
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4. Briefly explain the term ‘Goods’.
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5. What are the main classes of Liabilities?
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6. Briefly explain Current Liability.
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7. Give any two examples of Current Assets.

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8. What is a Capital?
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9. Who is a Debtor?
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10. Who is a Creditor?
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11. What is Revenue?
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12. What is a Cash Transaction?
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13. What is a Credit Transaction?
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14. What is Trade Discount?
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PARAS MAL JAIN PGT COMMERCE VKV HURDA ACCOUNTANCY 11

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15. What is Cash Discount?
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16. What is meant by Purchases?
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17. What is meant by Sales?
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18. What are Drawings?

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19. What is expense?
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20. What is revenue?
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21. What is income?
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22. What is a Voucher?
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WORKSHEET - 2.
Topic : Accounting Terminology
1. Under which heading 'Loose Tools' and 'Stores and Spares' are shown in the Balance Sheet?
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2. Decrease in the value of Fixed Intangible Assets is called
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3. Name any 3 items which are shown under 'Other Current Assets'.
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4. Current Assets – Closing Stock – Prepaid Expenses = ?
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5. Debtors + Bills Receivables = ?
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6. Under which sub heading of current assets you will record the following
transaction:..........................

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PARAS MAL JAIN PGT COMMERCE VKV HURDA ACCOUNTANCY 11

2000 Shares of Vishvas Ltd. purchased @ 10 each for 6 months.

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7. Name any 4 items which are shown under 'Cash and Cash Equivalents'.
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8. Name the items which come under 'Inventories' in the Balance Sheet.
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9. Name any 4 Fixed Intangible Assets.
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10. How will you show the following in the Balance Sheet?
(i) Office building is under construction and may take next 3 to 5 years for completion.
(ii) Software is under development and may take 2 to 3 years for its development.
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(ii) _____________________________________________________________________
11. Give any 4 Examples of Fictitious Assets.
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12. Give any 2 examples of Contingent Liabilities.
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WORKSHEET - 3
Topic : Accounting Terminology
1. Decrease in the value of Fixed Tangible Assets is called
Ans.
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2. From the following, identify Capital Expenditure, Revenue Expenditure and Fictitious Assets.
(a) Purchase of Machinery (b) Rent paid (c) Preliminary Expenses
(d) Advertisement Suspense (e) Salaries paid (f) Purchase of Furniture
(g) Purchase of goods (h) Underwriting Commission
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3. Give any 6 Examples of Drawings.
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4. Give any 4 Liquid Assets.
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5. When will you treat ‘Investment' as Cash and Cash Equivalents?
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6. Define the status of a sole proprietorship firm from the viewpoint of (a) Accounting and (b)
Law.
Ans. From the Viewpoint of Accounting _________________________________________
From the Legal viewpoint _________________________________________________
7. Name any 2 Current Liabilities and 2 Non-current Liabilities.

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PARAS MAL JAIN PGT COMMERCE VKV HURDA ACCOUNTANCY 11

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8. What is meant by Marshalling of Assets & Liabilities?
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9. All liquid assets are current assets but all current assets are not liquid assets. Do you agree?
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10. What is working capital? Give formula of working capital.
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11. What is Bank Overdraft?

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12. Differentiate between Earned Income and Unearned Income.
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Basic Accounting Terms
HOTS
Time : 45 mins MM : 30
1. Which of the following events represent the business transactions? [2]
(i) Goods purchased on credit.
(ii) Owner not keeping good health.
(iii) Purchasing machinery for cash.
(iv) An employee getting dismissed from his job.
(v) Owner purchased a car for his son.
2. Differentiate between Revenue receipts and Capital receipts? [2]
3. Write a short note on the amount withdrawn by the proprietor for personal use? [2]
4. ‘These Expenditure incurred to acquire assets’ – Discuss? [2]
5. ‘These Assets neither tangible assets nor intangible assets’ – Discuss? [2]
6. ‘A transaction may be in cash or credit’ – Discuss? [3]
7. Give Four Characteristics of Assets? [3]
8. Explain Stock with Kinds of Stock? [3]
9. Capital = Assets – Liabilities – Discuss? [3]
10. Mr X commenced business of trading in electronic goods with an initial capital of Rs.
15,00,000. Out of the said Rs. 15,00,000, he paid Rs. 10.00,000 towards purchase of
electronic goods. He further spent 2,00,000 on furnishing the shop and Rs. 35,000 for
purchase of computer and printer. Rs. 10,000 is yet, to be paid to supplier of computer.
He sold goods costing Rs. 5,00,000 for Rs. 7,00,000 in cash and goods costing Rs.
2,50,000 for Rs. 3,10,000 on credit. Goods sold on credit for Rs. 25,000 were returned
being defective.
These goods (costing 20,000) were returned to the supplier. Looking into the response,
he decided to trade in home appliances also and further invested Rs. 5,00,000.
He purchased electronic goods and home appliances for t 8,00,00( out. of which
purchases of 2,00,000 were on credit.
Due to an earthquake, 2 LCD Televisions costing Rs. 50,000 were completely destroyed.
Mr. Pre-received an insurance claim of Rs. 30,000.
A customer purchased goods costing Rs. 2,25,000 for Rs. 3,00,000 and was allowed
discount of Rs. 15,000. He was further allowed discount of Rs. 5,000 for payment within
agreed time.
He paid salary to Shyam of Rs. 55,000; Rs. 5,000 were yet to be paid. He insured the

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PARAS MAL JAIN PGT COMMERCE VKV HURDA ACCOUNTANCY 11

goods and paid insurance premium of Rs. 10,000. Out, of this. Rs. 5,000 are for the next
year. Mr. Prom withdrew Rs. 30,000 during the year for his personal use.
You are required to answer the following questions on the basis of the above:
(i) What is the amount of capital invested in the business by Mr. X?
(ii) What is the amount invested by Mr. X in in fixed assets?
(iii) What is the amount of purchases?
(iv) What is the amount of long-term liabilities?
(v) What is the amount of current liabilities?
(vi) How much expenses did Mr. X incur during the year?
(vii) What is the amount of prepaid expenses?
(viii) What is the amount of outstanding expenses?
(ix) What is the income earned by Mr. X?
(x) What is the amount of profit. earned by Mr. X?
(xi) What is the amount. due from debtors?
(xii) What is the amount due to creditors?
(xiii) What is the value of Closing Stock?
(xiv) What is the value of adjusted purchases?
(xv) What is the amount. of Trade Discount allowed'?
(xvi) Has Mr. X allowed Cash Discount? If yes, what is the amount?
(xvii) What is the amount of Drawings?
(xviii) What is the amount of Sales Return?
(xix) What is the amount of Purchases Return? [8]

CH 2 BASIC ACCOUNTING TERMS NOT FOR PUBLICATIONS