VENUS STUDY CENTRE

CHENNAI – 600081

DEPARTMENTAL MODEL QUESTION PAPER

MULTIPLE CHOICE QUESTIONS:-

1. The debts owing to others by business is known as
a) Liabilities b) Expenses c) Debtors
2. Assets – Liabilities =
a) Drawings b) Capital c) Incomes
3. As per dual aspect concept every business transaction has
a) Three aspects b) One aspect c) Two aspects
4. Capital account is an example of
a) Personal A/c b) Real A/c c) Nominal A/c
5. The liability of a business is Rs.30, 000 and capital is Rs.70, 000. The total of assets Rs.
a) 70,000 b) 1,00,000 c) 30,000
6. Which is the following is correct
a) Capital = Assets + Liabilities
b) Capital = Assets – Liabilities
c) Liabilities = Assets + Capital
7. What is the correct order in which the Accounting transactions and events are recorded in
the books? 1. Trial balance 2.Journal 3.Transactins 4.Ledger
a) 2-3-4-1 (b) 1-2-3-4 (c) 3-2-4-1
8. Ledger is a book of
a) Original Entry (b) Final Entry (c) Primary Entry
9. On 1 January 2017 Chandran draws a bill on Sunder for three months. Its due date is
a) 31st March 2017
b) 1st April 2017
c) 4th April 2017
10. Goods purchased on cash is recorded on
a) Cash book
b) Purchase book
c) Journal proper

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11. On 1st January 2017 Rs.1000/- was given to petty cashier. He has spent Rs.860/- during
the month of January. On 1 st February to make imprest he will receive cheque for
(a) Rs.1000/-
(b) Rs.860/-
(c) Rs.1860/-
12. Bank Reconciliation Statement is prepared by
a) Bank (b) Creditor (c) Customer of the bank
13. Trial Balance is prepared to find out the
a) Profit or loss
b) Financial position
c) Arithmetical Accuracy of the accounts
14. Suspense A/c are recorded in
a) Trading A/c
b) Profit or Loss A/c
c) Balance Sheet
15. Which of the following expenses debited to Trading A\c
a) Wages (b) Salary (c) Interest on capital
16. Which of the following is an example of Capital Expenditure?
a) Drawing
b) Outstanding expenses
c) Machinery purchased
17. A deposit is made by filling a form called
a) Cash Memo (b) Cash Receipt (c) Pay in slip
18. Purchase refers to buying of
a) Stationary for office use
b) Asset for the factory
c) Goods for resale
19. If cheque issued by us was dishonoured the credit is given to
a) Suppliers A/c (b) Customer’s A/c (c) Bank A/c
20. The salary paid to Managers debited to
a) Manager A/c (b) Office Expenses A/c (c) Salary A/c

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-:VERY SHORT ANSWER & SHORT ANSWER:-

1. State any two functions of Accounting.
Functions of accounting:
1. Measurement
2. Forecasting
3. Comparison
4. Decision making
5. Control
6. Assistance to government

2. Define book keeping.

Book-keeping:
“Book-keeping is an art of recording business dealing in a set of books” –
J.R.Batliboi.

3. What is accounting rule of Nominal Accounts?

Accounting rule of Nominal Accounts:
 Debit all expenses and losses
 Credit all incomes and gains

4. What is meant by Postings?

Posting:
The process of transferring the credit and debit items from the journal to ledger
account is called posting.

5. What is meant by trial balance?

Trial balance:
A trial balance is a statement, prepared with the debit and credit balances of the
ledger accounts to test the arithmetical accuracy of the books.

6. Define bills of Exchange.

Bill of exchange:
Bill of exchange is an instrument in writing containing an unconditional order,
signed by the maker ,directing a certain person to pay a certain sum of money only
to, or to the order of a certain person or to the bearer of the instrument.

7. Explain: (a) Time Allowance (b) Deduction from Invoice Value.

Time of allowance:
Cash discount is allowed by the seller or creditor to the buyers or debtors at the
time of making payment. Trade discount is allowed by the seller to the buyer
when goods are sold

Deduction from Invoice Value:

Cash discount is not deducted from the invoice value of goods
Trade discount is deducted from the list price of the goods.

8. Differentiate between cash Discount and Trade discount. (Pg.34)

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I MID TERM TEST – JULY – 2018

-:MULTIPLE CHOICE QUESTIONS:-

1. Luca pacioli an Italian developed double entry system in the year _______
(a) 1949 (b) 1449 (c) 1494 (d) 1446
2. Who is consider to be the external uses of the financial information?
(a) Owner (b) Investors (c) Management (d) Employees
3. Financial position of a business is ascertained on the basis of _______
(a) Journal (b) Trial Balance (c) Balance Sheet (d) Ledger
4. IFRS is _________
(a) Indian Financial Reporting Standard
(b) Indian Fund Reporting Standard
(c) International Financial Reporting Standard
(d) None of these
5. In India, Accounting standards are issued by _______
(a) Reserve Bank of India
(b) The Institute of Cost and Work Accountant
(c) The Institute of Charted Accountant of India
(d) Supreme Court of India
6. Accounting equation signifies ________
(a) Capital of a business is equal to asset (b) Liabilities are equal to asset
(c) Capital is equal to liabilities (d) Assets are equal to sum of capital & liabilities
7. Which of the following is representative personal account?
(a) Building a/c (b) Outstanding interest (c) rent a/c (d) Balan & Co
8. Real a/c deals with___________
(a) Individual Persons (b) Expenses and losses
(c) Assets (d) Income & Gain
9. The transferring of journal to ledger is called __________
(a) Casting (b) Balancing (c) Posting (d) Journalizing
10. Left side of the ledger is known as ________
(a) Credit (b) Casting (c)Voucher (d) Debit

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-: VERY SHORT ANSWER & SHORT ANSWER:-

1. Define Accounting. (Pg.36)

2. Write down the features of book keeping.

The following are the features of book keeping:

 It is the process of recording transactions in the books of accounts.
 Monetary transactions only are recorded in the accounts.
 Book keeping is the primary stage in the accounting process.
 Book keeping includes journalizing and ledger posting.

3. What are the approaches of accounting equation?

Accounting equation approach:

The relationship of assets with that of liabilities to outsiders and to owners in the
equation form is known as accounting equation.
Capital + Liabilities = Assets

4. What are the objectives of accounting?

Objectives of accounting:

 To keep a systematic record of financial transactions and events.

 To ascertain the profit or loss of the business enterprise.
 To ascertain the financial position or status of the enterprise.
 To provide information to various stakeholders for their requirements.
 To protect the properties of an enterprises
 To ascertain the solvency and liquidity position of an enterprise.

5. Explain any 3 principles of accounting in short.

Principles of accounting:
i. Consistency principle. This is the concept that, once you adopt an
accounting principle or method, you should continue to use it until a
demonstrably better principle or method comes along.
ii. Cost principle. This is the concept that a business should only record its
assets, liabilities, and equity investments at their original purchase costs.
This principle is becoming less valid, as a host of accounting standards are
heading in the direction of adjusting assets and liabilities to their fair
values.
iii. Economic entity principle. This is the concept that the transactions of a
business should be kept separate from those of its owners and other
businesses. This prevents intermingling of assets and liabilities among
multiple entities, which can cause considerable difficulties when the
financial statements of a fledgling business are first audited.

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6. What are the golden rules of Double Entry System? (Pg.36)

7. Explain in brief the various branches of Accounting.
The various branches of accounting are:
Financial accounting
i. It involves recording of financial transactions and events.
ii. It provides financial information to the users for taking decisions.
iii. It helps to prepare of financial statements namely, trading and profit
and loss account or income statement and balance sheet and
communication of the same to the interested users.

Cost accounting:
i. It involves the collection, recording, classification and appropriate allocation of
expenditure for the determination of the costs of product or services and for the
presentation of data for the purposes of cost control and managerial decision making.

Management accounting:
i. It is concerned with the presentation of accounting information in such a way as to
assist management in decision making and in the day to day operation of an enterprise.
ii. The information collected from financial accounting, cost accounting, etc are grouped,
modified and presented as per the requirements of management for discharging their
functions and for decision making.
Social Responsibility accounting;
i. It is concerned with the presentation of accounting information by business entities
and other organsiations from the view point of the society by showing the social costs
incurred such as environmental pollution by the enterprise and social benefits such as
infrastructure development and employment opportunities created by them.
ii.It arises because of corporate social responsibility.
Human resource accounting:
i. It is concerned with identification, quantification and reporting investments made in
human resources of an enterprise.

8. Distinguish between book keeping and Accounting.

S.NO BASIS OF BOOK-KEEPING ACCOUNTING
DISTINCTION
1 Scope It is concerned with recording It is concerned with recording,
and classifying the business classifying, and summarizing,
transactions. analyzing and interpreting the
financial data.
2 Stage Book- keeping is the primary Apart from the primary stage it
stage in accounting. it is the includes secondary stage of
base for accounting analysis and interpretation
3 Nature of job It is routine and clerical in It is analytical in nature.
nature.
4 Knowledge It requires basic knowledge of It requires through knowledge of
required the principles of journalizing accounting principles,
and posting. procedures and practices.
5 Skills Analytical skill is not required It requires analytical skills.
required for book keeping.

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QUARTERLY EXAMINATION – SEPTEMBER - 2018

-: MULTIPLE CHOICE QUESTIONS:-

1. Financial position of a business is ascertained on the basis of _________
(a) Journal (b) Trial balance (c) Balance sheet (d) Ledger
2. The business is liable to the proprietor of the business in respect of capital introduced
by the person according to __________
(a) Money measurement concept (b) Cost Concept
(b) Business entity concept (d) Dual aspect concept
3. In India, accounting standards are issued by__________
(a) Reserve Bank of India (b) The Cost and Management Accounts of India
(c) Supreme Court of India (d) The Institute of Chartered Accountants of India
4. Accounting equation is formed based accounting principle of __________
(a) Dual aspect (b) consistency (c) Going concern (d) Accrual
5. A firm has assets of Rs.2,00,000/- and the external liabilities of Rs. 1,20,000/- its
capital would be_________
(a) Rs.3,20,000/- (b) Rs.1,20,000/- (c)Rs.2,00,000/- (d)Rs.80,000/-
6. Prepaid rent is a ____________.
(a) Nominal A/c (b) Personal A/c
(c) Real A/c (d) Representative personal A/c
7. It has total of the debit side of an account exceeds the total of its credit side, it means
(a) Credit balance (b) Debit balance
(c) Nil balance (d) Debit & credit balance
8. The trial balance contains the balance of________________
(a) Only personal accounts (b) Only real accounts
(c) Only nominal accounts (d) All accounts
9. The difference of totals of both debit and credit side of trial balance is transferred to
(a) Trading account (b) Difference account
(c) Suspense account (d) Miscellaneous account
10. Purchase of fixed assets on credit basis is recorded in________________
(a) Purchase book (b) Sales book
(c) Purchase returns book (d) Journal proper

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11. The cash book records___________

(a) All cash receipts (b) All cash payment (c) Both a and b (d) All credit transaction
12. Petty cash may be used to pay____________
(a) The expenses relating to postage and conveyance
(b) Salary to the manager
(c) Purchase of furniture and fixtures
(d) Purchase of raw materials
13. A Bank reconciliation statement is prepared with the help of_______________
(a) Bank statement (b) Cash Book
(c) Bank statement and Bank column of the cash book (d) Petty Cash book
14. RTGS stands for
(a) Real Time Gross settlement (b) National electronic fund transfer
(c) Credit Card (d) Debit card
15. From the following, which date denotes payable bill date
2017 March 1, Months-2 , Grace days -3
(a) May -3 (b) May-4 (c) May-1 (d) May-5
16. A trader follows which discount from the following credit transactions.
(a) Cash discount (b) Credit discount (c) Trade discount (d) All of these
17. Furniture purchased Rs.12,000/- As per accounting equation effect is____________
(a) Increasing assets and decreasing assets
(b) Increasing assets and increasing liabilities
(c) Increasing assets and decreasing liabilities
(d) None of the above
18. On Jan 1st 2002, Rs.1000/- given to pretty cashier. He has spent Rs.860/- during the
month of January. On Feb 1st to make the imprest , he will receive cheque for
Rs._______
(a) Rs.1,000/- (b) Rs860/- (c) Rs.1860/- (d)Rs.140/-
19. Identify Personal, Real and Nominal accounts
(a) Chandru, Wages, Building (b) Building ,Chandru ,Wages
(c) Chandru ,Building ,Wages (d) All of the above
20. Luca Pacioli an Italian developed double entry book-keeping system in the year
(a) 1449 (b)1494 (c)1944 (d) 1459

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-: VERY SHORT ANSWER & SHORT ANSWER:-

1. Explain the meaning of Accounting. (Pg.36)

2. What are the types of Cash Book?

Types of Cash Book

(a) Simple or single column cash book (only cash column)

(b) Cash book with cash and discount column (double column cash book)
(c) Cash book with cash, discount and bank columns (three Column cash book)

3. Explain the term Invoice.

Invoice:

Entries in the purchase day book are made from invoices which are popularly known
as bills. Invoice is a business document or bill or statement, prepared and sent by the
seller to the buyer giving the details if goods sold, such as quantity, quality, price,
total value, etc., Thus the invoice is a source document of prime entry both for the
buyer and the seller.

4. What are the golden rules of Double Entry System? (Pg.36)

5. Differentiate between Cash Discount and Trade discount. (Pg.34)

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II MID TERM TEST – NOVEMBER - 2018

-: MULTIPLE CHOICE QUESTIONS:-

1. The difference in trial balance is taken to ___________
(a) The capital account (b) The trading account (c) The suspense account
2. Goods return by Senguttuvan was taken into stock, but no entry was passed in the book.
While rectifying this error, which of the following account should be debited?
(a) Senguttuvan A/c (b) Sales returns A/c (c) Returns outward A/c
3. Who is said “Depreciation is the gradual and permanent decreases in the value of the
assets from any cases during assets”.
(a) Spicer and Pegler (b) R.N.Carter (c) William R. Basset
4. Depreciation is caused by _____________
(a) Lapse of time (b) Usage (c) a and b
5. Amount send on increasing the seating capacity in a cinema hall is_________
(a) Capital expenditure
(b) Revenue expenditure
(c)Deferred revenue expenditure
6. Expenditure of a business can be classified into _____________________
(a) 3 (b) 2 (c) 1
7. ___________refers to buying and selling of goods with the intention of making profit
(a) Firm (b) Partner (c) Trade
8. Gross profit transferred to____________ A/c
(a) Balance sheet (b) Profit and Loss A/c (c) Trading account
9. Which options is correct for calculating Gross profit?
(a) Sales – Purchase Return = Gross Profit
(b) Sales – Cost of Goods Sold = Gross profit
(c) Sales – Indirect Expenses = Gross Profit
10. Balance sheet is a ______________
(a) An account
(b) A statement
(c) None of the above

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-: VERY SHORT ANSWER & SHORT ANSWER:-

1. Name any two direct and indirect expenses.

Direct expenses:
Wages
Carriage/Freight inwards
Indirect expenses:
Office and administrative expenses
Selling and distribution expenses

2. What is deferred revenue expenditure?

Deferred revenue exdpenditure:
An Expenditure, which is revenue expenditure in nature. the benefit of which is to be
derived over a subsequent period or periods is known as deferred revenue
expenditure.

3. Differentiate: Straight Line Method and Written Down Value Method

Point of difference Straight line method Written down value

method
Basis of calculation Depreciation is Depreciation is
calculated on the original calculated on the written
cost of the asset for all down value of the asset
the years year after year.
Amount of depreciation The amount of The amount of
depreciation is the same deprecation goes on
for all the years. decreasing year after
year.
Computation of rate of It is easy to calculate the It is very difficult to
depreciation rate of depreciation calculate the rate of
depreciation.

4. Difference between Trial Balance and Balance sheet.

Point of Trial Balance Balance sheet
difference
Trial balance is a list ledger Balance sheet is a statement showing
Nature Purpose
balances on a particular date the position assets and liabilities on a
particular date.
Purpose It is prepared to check the Balance sheet is prepared to ascertain
arithmetical accuracy of the the financial position of the business.
accounting entries made.
Contents It is a summary of balances of It is a statement showing the closing
all accounts – personal, real balances of only personal and real
and nominal accounts accounts.

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5. Write a note on a) Errors of Principle b) Errors of Partial Omission

Errors of Principle:
It means the mistake committed in the application of fundamental accounting
principles in recording a transaction in the books of accounts.
The following are the possibilities of error of principle:
(i) Entering the purchase of an asset in the purchase book.
(ii) Entering the sale of an asset in the sales book.
(iii) Treating a capital expenditure as a revenue expenditure
(iv) Treating a revenue as a capital expenditure

Errors of Partial Omission:

When the accountant has failed to record a part of the transaction, it is known as
error of partial omission. This error usually occurs in posting. This error affects
only one account.

6. What are the causes for deprecation?

Causes of Depreciation:

(i) Wear and Tear: The normal use of a tangible asset results in physical
deterioration which is called wear and tear. When there is wear and tear, the
value of the asset decreases proportionately.

(ii) Efflux of time: Certain assets whether used or not become potentially less
useful with the passage of time.

(iii) Obsolescence: It is a reduction in the value of the assests as a results of the

availability of updated alternative assets. This happens due to new invention and
innovations. Through the original assets is in a usable condition, it is not
preferred by the users and it loses its value. For example, preference of latest
computer by the users.

(iv)Inadequacy for the purpose: Sometimes, the use of assets may be stopped
due to their inadequacy for the purpose. These may become inadequate due to
expansion in the capacity of a firm.

(v) Lack of maintenance: A good maintenance will naturally increase the life of
the asset. When there is no proper maintenance, there is a possibility of more
depreciation.

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HALF-YEARLY EXAMINATION – DECEMBER – 2018

-: MULTIPLE CHOICE QUESTIONS:-

1. Who is considered to be the internal user of the financial information?
(a) Creditor (b) Employee (c) Customer (d) Government
2. The root of financial accounting system is
(a) Social accounting (b) Stewardship accounting
(c) Management accounting (d) Responsibility accounting
3. In India accounting standards are issued by ______________
(a) Reserve Bank Of India
(b) The Cost & Management accountants of India
(c) Supreme Court of India
(d) The Institute of Chartered Accountants of India
4. The rule of stock valuation ‘cost price or realizable value ‘ whichever is lower is based
on the accounting principle of
(a) Materiality (b) Money Measurement (c) Conservatism (d)Accrual
5. Which one of the following is representative personal account
(a) Building A/c (b) Outstanding Salary A/c (c) Mahesh A/c (d) Balan & Co
6. If the total of the debit side of an account exceeds the total of its credit side its means
(a) Credit balance (b) Debit balance
(c) Nil balance (d) Debit and Credit balance
7. The difference of total of both debit and credit side of trial balance is transferred to
(a) Trading account (b) Difference account
(c) Suspense account (d) Miscellaneous account
8. The source document or voucher used for recording entries in sales book is
(a) Debit note (b) Credit note (c) Invoice (d) Cash receipt
9. In triple column cash book , the balance of bank overdraft brought forward will appear in
(a) Cash column debit side (b) Cash column credit side
(c) Bank column debit side (d) Bank column credit side
10. Balance as per the bank statement is 1,000/- cheque deposited, but not yet credited by
the bank is 2,000. What is the balance as per the bank column of the cash book?
(a) Rs.3,000 overdraft (b) Rs.3,000 favourable

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(c)Rs.1,000 overdraft (d) Rs.1,000 favourable

11. Wages paid for installation of machinery wrongly debited to wages account is an error of
(a) Partial omission (b) Principle
(C) Complete omission (d) Duplication
12. A depreciable asset may suffer obsolescence due to _________
(a) Passage of time (b) Wear and Tear
(c) Technological changes (d) None of the above
13. Amount received from IDBI as a medium term loan for augmenting working capital
(a) Capital expenditure (b) Revenue expenditure
(c) Revenue receipts (d) Capital receipts
14. Carriage inwards will be shown
(a) In the trading account (b) In the profit & loss account
(c) On the liabilities side (d) On the assets side
15. Cash received from sale of fixed asset is credited to
(a) Profit & loss account (b) Fixed asset account
(c) Depreciation account (d) Bank account
16. ________ is a loss to the business arising out of failure of a debtor to pay the dues.
(a) Bad debts (b) Loan
(c) Sundry Debtors (d) Provision for Bad and Doubtful Debts
17. Accounting equation is formed based on the accounting principle of
(a) Dual aspect (b) Consistency (c) Going Concern (d) Accrual
18. When cash book is maintained, it is not necessary to open a separate _____ account.
(a) Cash (b) Bank (c) Drawings (d) Discount
19. `Goods worth Rs.50 given as charity should be credited to
(a) Charity account (b) Sales account (c) Purchase account (d) Cash account
20. Original Cost = Rs. 1,00,000;
Estimated Life = 5 years;
Expected salvage value =Rs.2000.
Depreciation for 3rd year as per Straight line method is __________
(a) Rs. 12,800 (b) Rs.19,600 (c) Rs.20,000 (d) Rs.20,400.

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-: VERY SHORT ANSWER & SHORT ANSWER:-

1. Name any 2 bases of recording accounting equation.

a. Dual aspect concept
b. Cost concept

2. What is full Disclosure principle?

Full Disclosure Principle:

It implies that the accounts must be prepared honestly and all material
information should be disclosed in the accounting statement. This is important
because the management is different from the owners in most of the
organizations.

3. What are the golden rules of Double Entry System? (Pg.36)

4. Define depreciation.

Depreciation-Definition:
Carter, “Depreciation is the gradual and permanent decrease in the value of an
asset from any cause,”

5. What are the causes for deprecation? (Pg.12)

6. Explain any 3 roles of Accountants in the modern business world.
An accountant designs the accounting procedures for an enterprise. He plays
several roles in an organization as follows:

(i) Record Keeper: The accountant maintains a systematic record of financial

transactions. He also prepares the financial statements and other financial reports.
(ii)Tax Manager: The accountant ensures that tax returns are prepared and filed
correctly on time and payment of tax is made on time. The accountant can advise
the managers regarding tax management reducting tax burden, availing tax
exemptions,etc.,
(iii) Financial advisor: The accountant analyses financial information and
advises the business managers regarding investment opportunities, strategies for
cost savings, capital budgeting, provision for future growth and development,
expansion of enterprise , etc.,

7. What are the three different types of personal accounts?

Personal account: Account relating to persons is called personal account. The
personal account may be natural, artificial or representative personal account.

(a) Natural person’s account: Natural person means human beings. Example:
Vinoth account, Malini account.
(b) Artificial Person’s account: Artificial person refers o the persons other
than human beings recognized by law a persons. They include business

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concerns, charitable institutions, etc., Example: BHEL account, Bank

account.

(c) Representative personal accounts: These are the accounts which

represent persons natural or artificial or a group of persons. Example:
Outstanding salaries account, prepaid rent account. When expenses are
outstanding, it is payable to a person. Hence it is represents a person.

8. Distinguish between Capital Receipts and Revenue receipts.

Following are the main differences between capital and Revenue receipts.
Basis Capital receipts Revenue receipts
Nature Non-recurring in nature Recurring in nature
Size Amount is generally substantial Amount is generally smaller
Distribution These amounts are not available The excess of revenue receipts
for distribution of profits over the revenue expenses can
be used for distribution as
profits.

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REVISION EXAMINATION – FEBRAUARY – 2019

-: MULTIPLE CHOICE QUESTIONS:-

1. Financial position of a business is ascertained on the basis of _______
(a) Journal (b) Trial Balance (c) Balance Sheet (d) Ledger
2. Records of debit and credit were found in the __________ century itself.
(a) 12th (b) 13th (c) 18th (d) 19th
3. The concept which assumes that a business will last indefinitely is
(a) Business entity
(b) Going concern
(c) Periodicity
(d) Conservatism
4. ______ means accounting rules and practices should be continuously observed.
(a) Consistency (b) Materiality (c) Conservatism (d) Realisation
5. Withdrawal of cash from business by the proprietor should be credited to ____ A/c.
(a) Drawings (b) Cash (c) Capital (d) Purchases
6. The Process of finding the net amount from the totals of debit and credit columns in a
ledger is known as -----
(a) Casting (b) Posting (c) Journalising (d) Balancing
7. Closing balance of current year will be the ______ balance of next year
(a) Opening (b) Closing (c) proceeding (d) all the above .
8. Trial balance is a ______________
(a) An account
(b) A statement
(c) Ledger
(d) Journal
9. Closing entries are recorded is _____
(a) Cash book (b) Ledger (c) Journal Proper (d) Purchases book
10. Cash book is a ___________
(a) Subsidiary book (c) Principal book
(b) Journal Proper (d) Both Subsidiary book and Principal book.

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11. Bank Reconciliation Statement is prepared with the help of

(a) Bank Statement (b) Cash book
(c) Bank Statement and bank column of cash book.
(d) Petty cash book
12. Wages paid for installation of Machinery debited to wages account is an error of
(a) Partial omission (b) Principle (c) Complete omission (d) Duplication
13. The method Depletion is adopted for writing off cost of the asset is
(a) Plant and Machinery (b) Mines and quaries
(c) Buildings (d) Trademark
14. Pre-operative expenses are
(a) Revenue Expenditure (b) Prepaid Revenue Expenditure
(c) Deferred Revenue Expenditure (d) Capital Expenditure
15. Net profit of the business increases the
(a) Drawings (b) Receivables (c) Debts (d) Capital
16. Closing stock is valued at
(a) Cost price
(b) Market price
(c) Cost price or market price whichever is higher
(d) Cost price or market price whichever is lower
17. Customised accounting software is suitable for
(a) Small,conventional business (b) Large,medium business
(c) Large,typical business (d) None of the above
18. Tally is an example of
(a) Tailor-made accounting software (b) Readymade accounting software
(c) In-built accounting software (d) Customized accounting software
19. “Depreciation is the gradual and permanent decrease in the value of an asset from any
cause” was defined by
(a) Spicer& Peglar (b) A.H.Hansan
(c) R.N.Carter (d) William R. Basset
20. Assets are those assets which get exhausted gradually by excavation
(a)Liquid assets (b)Current assets
(c)Nominal assets (d)Wasting assets

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-: VERY SHORT ANSWER & SHORT ANSWER:-

1. Define accounting. (Pg.36)

2. What do you meant by source documents?

Source documents:
Source documents are the authentic evidences of financial transactions. These
documents shows the nature of transaction, the date, the amount and the parties
involves. sources documents includes cash receipt, invoice, debit note, credit
note, pay in slips, salary bills, wage bills, cheque, record slips,etc.,

3. What is meant by accounting concepts?

Accounting concepts:
Accounting concepts are the basic assumptions or conditions upon which
accounting has been laid. Accounting Concepts are results of broad consensus.
The word concept means a notion or abstraction which is general accepted.
Accounting concepts provide unifying structure to the accounting process and
accounting reports.

4. Write a note on suspense accounts.

Suspense account:
After transferring all the ledger account balances, if the trial balance does not
tally, steps must be taken to locate and rectify errors. If the errors cannot be
rectified, then trial balance is tallied by transferring the difference between the
total of debit balances and credit balances to a temporary account called suspense
account for timely preparation of the financial statements.

5. What is CAS?
Computerised accounting System (CAS)
It refers to the system of maintaining accounts using computers. It involves the
processing of accounting transactions through the use of hard ware and software
in order to keep and produce accounting records and reports.

6. What are the golden rules of Double Entry System? (Pg.36)

7. Write a note on Accounting Standard.
An accounting standard is a common set of principles, standards, and procedures
that define the basis of financial accounting policies and practices. Accounting
standards apply to the full breadth of a entity's financial picture, including assets,
liabilities, revenue, expenses and shareholders' equity.

8. Give any three reasons for preparing BRS.

Reasons for preparing BRS:
 To identify the delay in the clearance of cheques.
 To ascertain the correct balance of bank column of cash book.

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9. Differentiate: Straight Line Method and Written Down Value Method. (Pg.11)
10. Difference between Journal and Ledger.

Basis for Journal Ledger

comparison
Recording As and when transactions take place In ledger, entries may be posted either on
entries are made in journal the same day or at the end of a specific
period such as weekly or fortnightly
especially when subsidiary books are
maintained
Stage of Recording in the journal is the first Recording in the ledger is the second stage
recording stage which is done on the basis of entries made
in the journal
Process The process of recording in a journal The process of recording in the ledger is
is called as journalizing called posting.
Basis of Entries in the journal are made on the Positing is done in ledger on the basis of
entries basis of source documents journal entries
Net position Net position of an account cannot be Net position of an account can be
ascertained from journal ascertained from ledger accounts

11. Discuss in details the importance of Accounting.

Importance of Accounting:
 Systematic records
 Preparation of financial statements
 Assessment of progress
 Aid to decision making
 Satisfies legal requirements
 Information of interested groups
 Legal evidence
 Computation of tax
 Settlement during merger

12. Distinguish between Capital Expenditure and Revenue Expenditure.

Basis Capital expenditure Revenue expenditure
Nature It is non – recurring nature It is recurring in nature
Purpose To contribute to the revenue earning To carry on the day to day
capacity of the business activities of the business.
Period of benefits Its benefit is available for a longer Its benefit is obtained within
period. one accounting period.

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BOARD EXAMINATION – 20th MARCH 2019

-: MULTIPLE CHOICE QUESTIONS:-

1. The root of financial accounting system is
(a) Management accounting (b) Responsibility accounting
(c) Social accounting (d) Stewardship accounting.
2. The business is liable to the proprietor of the business in respect of capital introduced
by the person according to:
(a) Business entity concept (b) Dual Aspect Concept
(c) Money Measurement Concept (d) Cost Concept
3. A firm has assets of Rs.1,00,000 and the external liabilitites of Rs.60000. Its capital
would be :
(a) Rs.100000 (b) 40,000 (c) 160000 (d) 60000
4. The amount brought into the business by the proprietor should be credited to
(a) Capital A/c (b) Suspense A/c (c) Cash A/c (d) Drawing A/c
5. The difference of total of both debit and credit side of the trail balance is transferred to
(a) Suspense A/c (b) Miscellaneous A/c (c) Trading A/c (d) Difference A/c
6. The cash book records :
(a) All cash payments (b) All credit transaction
(c) All cash receipt and cash payments (d) All cash receipts
7. A bank reconciliation statement is prepared with the help of :
(a) Bank statement and bank column of the cash book
(b) Petty cash book (c) Bank statement (d) Cash book
8. Error of principle arises when :
(a) Distinction is not made between capital and revenue items
(b) There are wrong posting and wrong casting
(c) There is complete omission of a transaction
(d) There is partial omission of a transaction
9. The following error becomes unavoidable in computerised accounting
(a) Error of partial omission (b) Error in carrying forward
(c) Casting error (d) Error of duplication

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10. Residual value of an asset means the amount that it can fetch on sale at the
__________ of its useful life
(a) Middle (b) Beginning (c) End (d) none of these
11. Expenditure incurred Rs 20000 for trial of a newly installed machinery will be :
(a) Capital expenditure (b) Deferred revenue expenditure
(c) Capital expenditure (d) Revenue expenditure
12. Huge amount spent on advertisement by Mr.Ravi for his business promotion is
(a) Revenue Receipts (b) Deferred revenue expenditure
(c) Capital expenditure (d) Revenue expenditure
13. Choose the correct pair :
(i) Capital expenditure - It increases the profit earnings capacity of the business
(ii) Revenue expenditure - To get the benefit for certain years
(iii) Deferred revenue expenditure - It is recurring nature
(a) (iii) correct (b) (i), (ii), (iii) all are correct (c) (i) correct (d) (ii) correct
14. Balance sheet shows the _______of the business
(a) Financial position (b) Purchase (c) Profitability (d) Sales
15. Net profit is :
(a) Debited to drawings a/c (b) Credited to drawings a/c
(c) Debited to capital a/c (d) Credited to capital a/c
16. Which one is not a component of computer system?
(a) Data (b) CPU (c) Input units (d) Output units
17. An example of output device is
(a) Mouse (b) Key Board (c) Optical Scanner (d) Printer
18. TALLY is an example of :
(a) Inbuilt accounting software (b) Readymade accounting software
(b) Tailor made accounting software (d) Customised accounting software
19. The source document or voucher used for recording entries in sales book is:
(a) Invoice (b) Cash Receipts (c) Debit Note (d) Credit Note
20. Purchase of fixed assets on credit basis is recorded in
(a) Purchase Return book (b) Journal Proper
(c) Purchase book (d) Sales book.

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-: VERY SHORT ANSWER & SHORT ANSWER:-

1. List any 2 functions of accounting. (Pg.3)

Functions of accounting:
Measurement
Forecasting
Comparison
Decision making
Control
Assistance to government

2. Define Book Keeping (Pg.3)

3. What are the golden Rules of Double entry Accounting system (Pg.36)

4. What are compensating errors?

Compensating Errors:
The errors that make up for each other or neutralise each other are known as
compensating errors. This error is also known as offsetting errors.

5. Name any 2 direct expenses.

Direct Expenses:
 Wages
 Carriage inward
 Power

6. What are adjusting entries?

Adjusting entries
Adjusting entries are the journal entries made at the end of the accouting
period to bring into account items which are omitted in a trial balance but
which relate to the relevant accounting period.

7. Enumerate the importance of accounting? (Pg.20)

8. Write short notes on: (i) Hardware (ii) software
Hardware:
The physical components of a computer constitute its hardware. Hardware
consist of input device and output devices that make a complete computer
system. Example:Input device - Keyboard, optical scanner, mouse, joystick,
touch screen and slylus.
Output device: moniter and printer.
Software: A set of programs that form a interface between the hard ware and
the user of a computer are referred to as software.
Types of software:
1) System software 2) Application software
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9. Write short notes on: (i) Business entity concept (ii) Going Concern Concept

Business entity concept:

The business entity concept states that the transactions associated with a
business must be separately recorded from those of its owners or other
businesses. Doing so requires the use of separate accounting records for
the organization that completely exclude the assets and liabilities of any
other entity or the owner. Without this concept, the records of multiple
entities would be intermingled, making it quite difficult to discern the
financial or taxable results of a single business .

Going Concern Concept: (Pg.34)

10. Explain the three methods of codification with examples.

Following are the methods of codification:

a. Sequential codes:
In sequential code, numbers and/or letters are assigned in consecutive order.
These codes are applied primarily to source documents such as cheques,
invoices, etc. A sequential code can facilitate document search. For example:
Code Accounts
CL001 ABC LTD
CL002 XYZ LTD
CL003 SCERT

b. Block codes
In a block code, a range of numbers is partitioned into a desired number of
sub-ranges and each sub-range is allotted to a specific group. In most of the
cases of block codes numbers within a sub-range follow sequential coding
scheme, i.e., the numbers increase consecutively. For example:
Code Dealer type
100-199 Small pumps
200- 299 Medium pumps
300 – 399 pipes
400-499 Motors
c. Mnemonic codes
A mnemonic codes consists of alphabets or abbreviations as symbol to codify
a piece of information.
For example
Code Information
SJ Sales Journals
HQ Head Quarters

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I MIDTERM EXAMINATION – JULY – 2019

-: MULTIPLE CHOICE QUESTIONS:-

1. The root of financial accounting system is
(a) Social accounting (b) Stewardship accounting
(c) Management accounting (d) Responsibility accounting
2. Who is considered to be the internal user of the financial information?
(a) Creditor (b) Employee (c) Customer (d) Government
3. Who introduced double entry system
(a) Adam smith (b) Luca Pacioli (c) J.R.Batley Boy
4. The concept which assumes that a business will last indefinitely is
(a)Business entity (b) Going concern (c) Periodicity (d) Conservatism
5. The rule of stock valuation “Cost price or Realisable value” whichever is lower is
based on accounting principle of
(a)Materiality (b) Money measurement (c) Conservatism (d)Accrual
6. In India accounting standards are issued by
(a) RBI
(b) The Cost of Management of Accountants of India
(c) Supreme Court of India
(d) The Institute of Chartered Accountants of India
7. A firm has assets ofRs.100000 and the external Liabilities of Rs.20,000. Its Capital would be
(a) Rs.80000 (b) 120000 (c) 100000 (d) 20000
8. Prepaid rent is a
(a) Nominal A/c (b) Personal A/c
(c) Real A/c (d) Representative Personal A/c
9. Withdrawal of cash from business by the proprietor should be credited to
(a) Drawing A/c (b) Cash A/c (c) Capital A/c (d) Purchases A/c
10. The process of transferring the debit and credit items from journal to Ledger accounts
is called
(a) Casting (b) Posting (c) Journalising (d) Balancing

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11. It has total of the debit side of an account exceeds the total of its credit side, it means
(a) Credit balance (b) Debit balance
(c) Nil balance (d) Debit & credit balance
12. Main Objective of preparing ledger account is to
(a) Ascertain the financial Position
(b) Ascertain the Profit or Loss
(c) Ascertain the Profit or Loss and the Financial Position
(d) Know the Balance of each ledger account.
13. Which one of the following is a not a branch Accounting?
(a) Financial Accounting (b) Management Accounting
(c) Human Resources Accounting (d) None of the above
14. The business liable to the proprietor of the business in respect of capital introduced by
the person according
(a) Money measurement concept (b) Cost concept
(c) Business entity concept (d) Dual Aspect concept
15. The incorrect accounting equation is
(a) Assets=Liabilities + Capital (b) Assets = Capital + Liabilities
(c) Liabilities = Assets + Capital (d) Capital = Assets - Liabilitiesss

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-: VERY SHORT ANSWER & SHORT ANSWER:-

1. Define accounting? (Pg.36)

2. What is meant by accounting concepts? (Pg.19)

3. What is primary Entry?

Primary entry:

When transactions are first recorded in the journal, it is called book of original entry or
prime entry or primary entry or preliminary entry or first entry. Journalising is the
beginning of the accounting process for the financial transaction.

4. List out the branches of accounting. (Pg.6)

5. Write the Golden rules of Double entry accounting system. (Pg.36)

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QUARTERLY EXAMINATION – SEPTEMBER – 2019

-: MULTIPLE CHOICE QUESTIONS:-

1. Who is considered to be the internal user of the financial information?
(a) Creditor (b) Employee (c) Customer (d) Government.
2. In _______ Luca Pacioli an Italian developed double entry book keeping system
(a) 1449 (b) 1494 (c) 1944 (d) 1459
3. The concept which assumes that a business will last indefinitely is
(a) Business Entity (b) Going Concern (iii) Periodicity (d) Conservation
4. In India, Accounting standards are issued by _______
(a) Reserve Bank of India
(b) The Cost and Management Accountant of India
(c) Supreme Court of India
(d) The Institute of Charted Accountant of India
5. A firm has assets ofRs.20, 000 and the external Liabilities of Rs.12, 000. Its Capital
would be
(a) Rs.2000 (b) Rs.8000 (c) Rs.22, 000 (d) Rs18, 000
6. Which one of the following is representative personal account
(a) Building A/c (b) Outstanding salary A/c
(c) Mahesh A/c (d) Balan & Co
7. Main objective of preparing ledger account is to
(a) Ascertain the financial position
(b) Ascertain the profit of loss
(c) Ascertain the profit or loss and the financial position
(d) Know the balance of each ledger account.
8. If Ganesan’s account discloses the total of the debit side of an account exceeds the
total of its credit side it means
(a) Credit balance (b) Debit balance
(c) Nil balance (d) Debit and credit balance
9. After the preparation of ledger, the next step is the preparation of
(a) Trading Account (b) Trial Balance
(c) Journal (d) Profit and loss account

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10. The account which has a debit balance and is shown in the debit column of the trial
balance is (a) Sundry Creditors Account (b) Bills payable Account
(c) Drawings Account (d) Capital Account
11. Sales book is used to record
(a) All sales of Goods (b) All Credit Sales of assets
(c) All credit sales of goods (d) All sales of assets and goods
12. The source document or voucher used for recording entries in sales book is:
(a) Debit Note (b) Credit Note (c) Invoice (d) Cash Receipts
13. Cash book is a ___________
(a) Subsidiary book (b) Principal book
(c) Journal Proper (c) Both Subsidiary book and Principal book.
14. A cash book with discount, cash and bank column is called
(a) Simple cash book (b) Double column cash book
(c) Three column cash book (d) Petty cash book
15. The balance in the petty cash book is
(a) An expense (b) Profit (c) an Asset (d) A liability
16. Days of grace are _______________ in number
(a) 3 (b) 4 (c) 2 (d) 6
17. A Bank reconciliation statement is prepared with the help of_______________
(a) Bank statement (b) Cash Book
(c) Bank statement and Bank column of the cash book (d) Petty Cash book
18. When money is withdrawn from bank, the bank
(a) Credits customer’s Account (b) Debits Customer’s Account
(c) Debits and Credits Customer’s Account (d) None of these
19. Under Accounting Equation approach Accounts are classified in to ________
cateogries.
(a) 4 (b) 3 (c) 5 (d) 2
20. What is the correct order in which the Accounting transactions and events are
recorded in the books?
1. Trial balance 2.Journal 3.Transactins 4.Ledger
(a) 2-3-4-1 (b) 3-4-2-1 (c) 1-2-3-4 (d) 3-2-4-1

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-: VERY SHORT ANSWER & SHORT ANSWER:-

1. Who are the parties interested in accounting information?

 Owners
 Management and Employees
 Creditors and financial information
 Investors
 Customers
 Tax authorities and other regulatory bodies
 Government
 Researchers
 General Public

2. Give any two advantages of book keeping?

Advantages:
i. It is the process of recording transaction in the book of accounts.
ii. Monetary transactions only are recorded in the accounts.

3. Give the golden rules of double entry system. (Pg.36)

4. What is trial Balance? (Pg.3)

5. What is Purchase book?

Purchase book:
Purchases book is a subsidiary book in which only credit purchase of goods are
recorded.

6. What is three column cash book?

Three Column Cash Book:
The triple column cash book (also referred to as three column cash book) is
the most exhaustive form of cash book which has three money columns on both
receipt (Dr) and payment (Cr) sides to record transactions involving cash, bank and
discounts. A triple column cash book is usually maintained by large firms which make
and receive payments in cash as well as by bank and which frequently receive and
allow cash discounts.

7. Explain the importance of accounting. (Pg.20)

8. Write short notes on

(i) Money Measuring Concept:

Money Measurement Concept in accounting, also known as Measurability Concept, means

that only transactions and events that are capable of being measured in monetary terms are
recognized in the financial statements. All transactions and events recorded in the financial
statements must be reduced to a unit of monetary currency. Where it is not possible to assign
a reliable monetary value to a transaction or event, it shall not be recorded in the financial
statements.

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However, any material transactions and events that are not recorded for failing to meet the
measurability criteria might need be disclosed in the supplementary notes of financial
statements to assist the users in gaining a better understanding of the financial performance
and position of the entity.

(ii) Matching Concept:

The matching concept is an accounting practice whereby firms recognize revenues and their
related expenses in the same accounting period. Firms report "revenues," that is, along with
the "expenses" that brought them.

The purpose of the matching concept is to avoid misstating earnings for a period. Reporting
revenues for a period without stating all the expenses that brought them could result in
overstated profits.

3. Bring out three differences between Cash Discount and trade discount. (Pg.34)

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II MIDTERM TEST – NOVEMBER – 2019

-:MULTIPLE CHOICE QUESTIONS:-

1. Errors not affecting the agreement of trial balance are _______
(a) error of principle (b) error of overcastting
(c) error of undercasting (d) error of partial omission
2. A transaction not recorded at all is known as in error of
(a) principle (b) complete omission
(c) partial omission (d) duplication
3. Depreciation is provided on
(a) fixed assets (b) current assets
(c) Outstanding charges (d) all assets
4. Residual value of an asset means the amount that it can fetch on sale at the ______ of its
useful life. (a) beginning (b) end (c) middle (d) none
5. Amount spent on increasing the seating capacity in a cinema hall is _______
(a) capital expenditure (b) revenue receipt
(c) deferred revenue expenditure (d) revenue expenditure
6. Interest on bank deposit is __
(a) capital receipt (b) revenue receipt
(c) capital expenditure (d) revenue expenditure
7. Pre-operative expenses are
(a) revenue expenditure (b) prepaid revenue expenditure
(c) deferred revenue expenditure (d) capital expenditure
8. Closing stock is an item of ________
(a) fixed asset (b) current asset
(c) fictitious asset (d) intangible asset
9. Bank overdraft should shown in
(a) the trading account (b) profit and loss account
(c) liability side of the balancesheet (d) asset side of the balancesheet
10. Goodwill is classified as
(a) a current asset (b) liquid asset (c) a tangible asset (d) an intangible asset.

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-: VERY SHORT ANSWER & SHORT ANSWER:-

1.. What are wasting assets?

WASTING ASSETS
These are the asset which gets exhausted gradually in the process of
excavation. Example: Mines and queries.

2.What is deferred revenue expenditure? (Pg.11)

3.What is annuity method of depreciation?

Annuity Method
The annuity method of depreciation is a process used to calculate depreciation
on an asset by calculating its rate of return as if it was an investment.

4.What is meant by error of principle?

Error of Principle
An error of principle is an accounting mistake in which an entry is recorded in
the incorrect account, violating the fundamental principles of accounting.
An error of principle is a procedural error, meaning that the value recorded was
the correct value but placed incorrectly.

5.Distinguish between capital expenditure and revenue expenditure. (Pg.20)

6.What are final accounts? What are its constituents?

FINAL ACCOUNTS AND ITS CONSTITUENTS:-

Final accounts are the trial balance that is formed at the end of the period
of accounting from where we can derive the financial statements. It has two
main constituents that is trading and profit and loss account which helps to
tell the profit and loss incurred at the end of the financial year.

7. Give any three difference between straight line method and written down value
method. (Pg.35)

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COMPULSORY QUESTIONS
NEW PATTERN 2017 – 2018 OLD SYLLABUS

1. Explain going concern assumption.

Going Concern Assumption

The going concern concept is a fundamental principle of accounting. It assumes that

during and beyond the next fiscal period a company will complete its current plans, use
its existing assets and continue to meet its financial obligations. Simply put, it is an
assumption that the company will stay in business and that the value of its assets will
endure. This underlying principle is also known as the continuing concern concept.

2. List out the basic assumption of Accounting.

The three main assumptions:

 Going concern
 Consistency
 Accrual basis

3. What is meant by posting?

Posting:
The process of transferring the credit and debit items from the journal and
ledger account is called posting.

4. Differentiate: Cash discount and Trade discount.

Basis Cash discount Trade discount

Purpose Cash discount is allowed to
encourage the buyers of good to
make payment at an early date.
Time of Cash discount is allowed by the
allowance seller or creditor to the buyers or
debtors at the time of making
payment
Amount of Cash discount is related to time.
discount The earlier the payment ,the more
will be the cash discount
Trade discount is allowed to
encourage buyers to buy goods in
large quantities
Trade discount is allowed by the
seller to the buyer when goods are
sold
Trade discount is generally related
to the quantity of purchase or sale.
The more he purchase, the more
will be the rate and amount of
discount.

5. What are source documents? (Pg.19)

6. What are the objects of Accounting? (Pg.5)

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7. Explain any 3 roles of Accountants in the modern business world. (Pg.15)

8. Differentiate: Straight Line Method and Written Down Value Method.

Point of difference Straight line method Written down value

method
Basis of calculation Depreciation is Depreciation is
calculated on the original calculated on the written
cost of the asset for all down value of the asset
the years year after year.
Amount of depreciation The amount of The amount of
depreciation is the same deprecation goes on
for all the years. decreasing year after
year.

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NEW PATTERN 2018 – 2019 NEW SYLLABUS

1. When sales manager is not on good terms with production manager, whether the
business is bound to suffer. Is this transaction will recorded in the books? How?
2. Accounting equation Problem
3. Find the missing figure (I midterm – 26.07.18)
4. Journal Entry(4) (Quarterly – 2018-2019)
5. Given narration asked to fill the missing information. (Half yearly – 2018-19)
6. Give a formula to find out amount and rate of depreciation under SLM of depreciation
Half yearly – 2018 – 19)
7. Define book keeping.

Book-keeping: “Book-keeping is an art of recording business dealing in a set of

books” – J.R.Batliboi.

8. What are the golden rules of accounting?

Golden rules of double entry system
Personal account Debit the receiver Credit the giver
Real account Debit what comes in Credit what goes out
Nominal account Debit all expenses and losses Credit all incomes and gains

9. What is meant by accounting?

Accounting-Meaning:
Accounting as the art of recording, classifying, and summarising in a significant
manner and in terms of money, transactions and events which are, in part at least, of
financial character, and interpreting the results thereof.

10. Define Accounting.

Accounting definition:

The American Institute of Certified Public Accountants (AICPA) had defined

accounting as the art of recording, classifying, and summarising in a significant
manner and in terms of money, transactions and events which are, in part at least, of
financial character, and interpreting the results thereof’.

11. Name any two direct and indirect expenses.

Direct expenses:
Wages
Carriage/Freight inwards

Indirect expenses:
Office and administrative expenses
Selling and distribution expenses

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12. Mr. Balu a sole proprietor whose income tax for the year 2017- 18 is Rs.40,000/- is
paid by the business. Give adjusting entry. (Public – 2019)

13. A textile business unit sells some part of its unsold land and received the amount.
a) Can it be considered as normal sale
b) State the whether the transaction is of capital or revenue nature and explains.
(Public - 2019)
14. What is Credit balance? (Pg.26) (I midterm – 2019)
15. What is an account?
Classify the accounts with suitable examples. (Pg.27) (I midterm – 2019)
16. Single Column cash book – Problem (Four transactions) (Quarterly – 2019)
17. Ledger – sales account – Postings (Three transactions) (Quarterly – 2019)

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2019 – 2020
1. What is credit balance?

Credit Balance:

When the credit side is greater than the debit side the difference is called “Credit Balance”.
So, if Credit Side > Debit Side, it is a credit balance.

2. What is an account? Classify the accounts with suitable examples.

Account:

Account is the systematic presentation of all material information regarding a particular

person or item at one place, under one head.

Types of accounts: (Pg.15)

3. Single column cash book – Problem (Quarterly – 2019 - 20)

4. Preparation of sales account – problem – Ledger (Quarterly – 2019 -20)

5. Name any two direct and indirect expenses. (II midterm - 2019 – 20) (Pg.36)

6. Problem about Capital or Revenue – Identification (II midterm - 2019 – 20)

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