One and Two Marks Answers PDF

Chapter - 1

Introduction to Accounting
Section-A: One Mark Questions:
I: Fill in the blanks:-
1. Summa de is the first book on double entry book keeping.
2. Luca Pacioli has written a book called ‘SUMMA’ in 1494
3. The term ‘Debit’ comes from the Italian word debito
4. The term ‘Debit’ comes from the Latin words debita and debeo
5. The term ‘Credit’ comes from the Italian word credito
6. The term ‘Credit’ comes from the Latin word credo
7. Koutilya, a minister in Chandragupta’s Kingdom wrote a book on economics named Arthashasthra
8. Business Organization involves economic events.
9. Determining the transaction to be recorded is Identification
10. Quantification of business transactions in to financial terms using monetary unit is called Measurement
11. Recording is made in a chronological order
12. Accounting is the language of business
13. Accounting begins with the identification of transaction and ends with the presentation of financial
statements
14. Information in financial reports is based on HistoricalTransactions
15. Chief Executive, Financial Officer, Vice President, Business Unit Managers, Plant Managers,
Store Managers, Line Supervisors are the internal users of an organization
16. A Creditor would most likely use an entity’s financial report to determine whether or not the business entity
is eligible for a loan.
17. Internet has assisted in decreasing the time-gap in issuing financial reports to users
18. External users are groups outside the business entity, who use the information to make decisions about the
business entity
19. Information is said to be relevant if it is Free from bias
20. Accounting measures a business transaction in terms of Monetory units
21. Identified and measured economic events should be recorded in chronological order
22. Sub-disciplines within the accounting discipline are: financial accounting, Cost accounting
and Management accounting

II: Multiple Choice Questions:-

1. Which of the following is not a business transaction.
a) Bought furniture for Rs.10,000 for business
b) Paid Rs.5,000 as salaries of employees
c) Paid Rs. 20,000 towards son’s fees from Personal Bank account
d) Paid Rs. 2,000 towards son’s fees from the business
Ans :- c) Paid Rs. 20,000 towards son’s fees from Personal Bank account
2. Deepti wants to buy a building for her business. Which of the following is the relevant data for her
decision?
a) Similar business acquired the required building in 2010 for Rs. 10,00,000
b) Building cost details of 2003
c) Building cost details of 1998
d) Similar building cost in August 2005 Rs. 25,00,000
Ans:- a) Similar business acquired the required building in 2010 for Rs. 10,00,000
3. Which is the last step of accounting as a process of information
a) Recording of data in books of accounts
b) Preparation of summaries in the form of financial statements
c) Communication of information
d) Analysis and interpretation of information
Ans:- c) Communication of information
4. Which qualitative characteristics of accounting information is reflected when accounting information is
clearly presented
a) Understandability b) Relevance c) Comparability d) Reliability
Ans:- a) Understandability
5. Use of common unit of measurement and common format of reporting promotes
a) Comparability b) Understandability c) Relevance d) Reliability
Ans:- a) Comparability
6. Management accounting
a) Is a clerical work
b) Is accounting for future
c) Is a recording technique of management related transactions
d) Is an analysis of the past business activities
Ans:- c) Is a recording technique of management related transactions
7. Which of the following shows the financial position of the business
a) Profit and Loss account b) Total Debtors account
c) Balance sheet d) Funds flow statement
Ans:- c) Balance sheet
8. Which of the following is not a sub-field of accounting
a) Management accounting b) Cost accounting
c) Social responsible accounting d) None of these
Ans:- c) Social responsible accounting
9. Functions of accounting include
a) Keeping systematic record b) Protecting properties of the business
c) Ascertain the profit and loss d) All of these
Ans:- d) All of these
10. Accounting records transactions in terms of
a) Selling units b) Monetary units c) Production units d) None of the above
Ans:- b) Monetary units
11. Accounting is basically concerned with
a) Forecasting b) Measurement c) Management d) None of the above
Ans:- b) Measurement
12. It is the Language of business
a) Accounting b) Financial statements
c) Accounting assumptions d) Book-keeping
Ans:- a) Accounting
13. Financial statements are a part of
a) Accounting b) Book-keeping c) Both d) None
Ans:- a) Accounting
14. Financial statement users include
a) Share holders b) Government c) Vendors d) All of the above
Ans:- d) All of the above
15. All of the following are functions of accounting, except ...
a) Decision making b) Measurement c) Forecasting d) Ledger posting
Ans:- d) Ledger posting
16. Financial statements do not consider
a) Assets expressed in monetary terms
b) Liabilities expressed in monetary terms
c) Only Assets expressed in non monetary terms
d) Assets and Liabilities expressed in non monetary terms
Ans:- d) Assets and Liabilities expressed in non monetary terms
III: True or False:-

1. Accounting is the process of recording and classifying business financial transactions. (TRUE)
2. Business organisations is not involves economic events. (False)
3. The financial information to make important decisions to the users. (TRUE)
4. It provides information for judging management’s ability to utilise resources effectively in meeting goals.TRUE
5. Financial accounting assists in analysing only the expenditure for ascertaining the cost of
various products manufactured or services provided by the firm. (False)
6. Qualitative characteristics are the attributes of accounting information which tend to enhance its
understandability and usefulness. (TRUE)
7. A reliable information should be free from error or bias. (TRUE)
8. Profit represents excess of revenue over expenses. (TRUE)
9. Accounting information relates to the present transactions. (False)
10. The owners of business are keen to have an idea about the net results of their business operations
periodically. (TRUE)
11. Entity is reality that has a definite individual existence. (TRUE)
12. Current assets are assets on a long-term basis. (False)
13. Long-term liabilities are those that are usually payable before a period of one year. (False)
14. Discount is the deduction in the price of the goods sold. (TRUE)
15. Voucher is not a documentary evidence of a transaction. (False)
16. Drawings increases the investment of the owners. (False)
IV: Very Short Answer Questions:-

1. Expand APB
Ans:- Accounting Principles Board
2. Expand AICPA
Ans:- The American Institute of Certified Public Accountants
3. Expand AAA
Ans:- American Accounting Association
4. What is accounting?
Ans:- Accounting is a process of identifying, measuring, recording the business transactions and communicating
thereof the required information to the interested users.
5. Who are the external users of business information?
Ans:- External users include: present and potential Investors (shareholders), Creditors (Banks and other
Financial Institutions, Debentureholders and other Lenders), Tax Authorities, Regulatory Agencies (Department
of Company Affairs, Registrar of Companies, Securities Exchange Board of India, Labour Unions, Trade
Associations, Stock Exchange and Customers,
6. What is revenue?
Ans:- Revenue is the amount of the business earned by selling its products or providing services to customers
7. What is entity?
Ans:- Entity means a reality that has a definite individual existence.
8. What is transaction?
Ans:- Transaction is an event involving some value between two or more entities.
9. What is profit?
Ans:- The excess of revenues of a period over its related expenses during an accounting year is profit.
10. What is capital?
Ans:- Amount invested by the owner in the firm is known as capital.
11. What is gain?
Ans:- Gain is a profit that arises from events or transactions which are incidental to business such as sale of
fixed assets, winning a court case, appreciation in the value of an asset.
12. What is loss?
Ans:- The excess of expenses of a period over its related revenues its termed as loss.
13. Who are Debtors?
Ans:- Debtors are persons and/or other entities who owe to an enterprise an amount for buying goods and
services on credit.
14. Who are Creditors?
Ans:- Creditors are persons and/or other entities who have to be paid by an enterprise an amount for providing
the enterprise goods and services on credit.
15. What is purchases?
Ans:- Purchases are total amount of goods procured by a business on credit and on cash, for use or sale.
16. What is voucher?
Ans:- The documentary evidence in support of a transaction is known as voucher.
17. What is trade discount?
Ans:- Trade discount is a deduction in price list of a goods
18. What is cash discount?
Ans:- Cash discount is a amount payable to get early payment
Section-B:Short Answer Questions for Two Marks:-

1. Define Accounting.
Ans:- 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’.
2. What is the end product of Accounting?
Ans:- The end product of Accounting is the financial statement that presents the financial position of the
business
3. State any two objectives of Accounting.
Ans:- Two objectives of Accounting
1) Maintenance of Records of Business Transactions
2) Calculation of Profit and Loss
3) Depiction of Financial Position
4. Name any two users of Accounting
Ans:- Two users of Accounting
1) Investors and potential investors 2) Unions and employee groups 3) Lenders and financial institutions 4)
Suppliers and creditors
5. State the nature of Accounting information required by long term lenders
Ans:- Lenders and financial institutions-information on the creditworthiness of the company and its ability to
repay loans and pay interest
6. Who are the external users of information?
Ans:- External users are those who have limited authority ability and resources to obtain the necessary
information.
7. Enumerate any two information needs of management
Ans:- a) Performance of the company b) Return on capital employed
8. Give any two examples of revenues.
Ans:- Sales, commission received , interest received , dividends received , royalities received, rent received
9. Distinguish between Debtors and Creditors
Ans:-
Debtors Creditors
Debtors are those who are liable to pay money to Creditors are the those to whom the firm is
the firm liable to pay money
They have debited balance They have credited balance
Shown on Assets side Shown on Liability side
10. Distinguish between profit and gain

Ans:-
11. Accounting information should be comparable. Do you agree with the statement?
Give two reasons
Ans:- It is not sufficient that financial information is relevant and reliable at a particular time in a particular
circumstances or for a particular reporting entity. The users of the general purpose financial reports need to be
able to compare aspect of an entity at one time and over the time and between entities at time and over the
time.
12. If the accounting information is not clearly presented, which of the qualitative characteristics of
accounting information are violated?
Ans:- Reliability
13. The role of Accounting has changed over the period of time. Do you agree? Explain in two sentences.
Ans:- Over the centuries, accounting has remained confined to the financial record-keeping functions of the
accountant. But, today’s rapidly changing business environment has forced the accountants to reassess their
roles and functions both within the organisation and the society. The role of an accountant has now shifted from
that of a mere recorder of transactions to that of the member providing relevant information to the decision-
making team. Broadly speaking, accounting today is much more than just bookkeeping and the preparation of
financial reports. Accountants are now capable of working in exciting new growth areas such as: forensic
accounting (solving crimes such as computer hacking and the theft of large amounts of money on the internet);
ecommerce (designing web-based payment system); financial planning, environmental accounting, etc.
14. Give two examples of fixed assets
Ans:- Land, Building, Machinery, Plant, Furnitures etc
15. Give two examples of revenue
Ans:- Sales, commission received , interest received
16. Give two examples of expenses
Ans:- Rent paid, Salary paid,
17. Give two examples of short term liability
Ans:- Creditors, Bills payable
18. What is revenue?
Ans:- Revenue is the amount of the business earned by selling its products or providing services to customers
19. What are expenses?
Ans:- Costs incurred by a business in the process of earning revenue are known as expenses.
20. What is entity?
Ans:-
21. What is transaction?
Ans:-
22. State two types of transactions.
Ans:- a) cash transaction b) credit transaction
23. What are cash transactions? Give an example
Ans:- When payment or receipt of money is done immediately it is called cash transaction. For ex – Goods sold
for cash
24. What are credit transactions? Give an example
Ans:- When payment or receipt of money is postponed to a future date it is called credit transaction. For ex –
Goods sold to Ram on credit
25. State any two types of assets.
Ans:- a) Current assets b) Fixed Assets
26. What are fixed assets?
Ans:- Assets maintained in a business for more than one operating cycle are called Fixed assets
27. What are current assets?
Ans:- :- Assets maintained in a business for one or less than one operating cycle are called current assets
28. What are long term liabilities?
Ans:- The claims that have to be paid in more than one accounting cycle are called long term liabilities
29. What are short term liabilities?
Ans:- The claims that have to be paid in one or less than one accounting cycle are called short term liabilities
Ans:- Amount invested by the owner in the firm is known as capital.
31. What do you mean by sales?
Ans:- Sales are total revenues from goods or services sold or provided to customers.
32. What is expenditure?
Ans:- Spending money or incurring a liability for some benefit, service or property received is called
expenditure.
33. What is capital expenditure?
Ans:- The benefit of an expenditure lasts for more than a year is called capital expenditure
34. What is revenue expenditure?
Ans:- the benefit of expenditure is exhausted within a year is called revenue expenditure
35. Give two examples of capital expenditure
Ans:- purchase of machinery, furniture
36. What is profit?
Ans:- The excess of revenues of a period over its related expenses during an accounting year is profit.
37. What is gain?
Ans:- A profit that arises from events or transactions which are incidental to business such as sale of fixed
assets, winning a court case, appreciation in the value of an asset.
38. What is loss?
Ans:- The excess of expenses of a period over its related revenues its termed as loss.
39. What is discount?
Ans:- Discount is the deduction in the price of the goods sold.
40. What is trade discount?
Ans:- Trade discount is a deduction in price list of a goods
41. What is cash discount?
Ans:- Cash discount is a amount payable to get early payment
42. Distinguish between trade discount and cash discount.
Ans:-
43. What is voucher?
Ans:- The documentary evidence in support of a transaction is known as voucher
44. What do you mean by goods?
Ans:- It refers to the products in which the business unit is dealing, i.e. in terms of which it is buying and selling
or producting and selling.
45. What do you mean by drawings?
Ans:- Withdrawal of money and/or goods by the owner from the business for personal use is known as
drawings.
46. What is purchase?
Ans:- Purchases are total amount of goods procured by a business on credit and on cash, for use or sale.
47. What are sales?
Ans:- Sales are total revenues from goods or services sold or provided to customers.
48. What is stock (inventory)?
Ans:- Stock (inventory) is a measure of something on hand-goods, spares and other items in a business.
49. Who is a Debtor?
Ans:- Debtors are persons and/or other entities who owe to an enterprise an amount for buying goods and
services on credit.
50. Who is a Creditor?
Ans:- Creditors are persons and/or other entities who have to be paid by an enterprise an amount for providing
the enterprise goods and services on credit.
Chapter - 2
Theory Base of Accounting
1. In order to maintain uniformity and consistency in Accounting records, certain Rules or Principles have been
developed which are generally accepted by the Accounting profession.
2. The accounting records are made in the books of accounts from the point of view of
the Business and not that of the owner.
3. The concept of money measurement states that the records of the transactions are to be kept not in the
Physical unit but in the monetary unit.
4. The Concept of going concern assumes that a business firm would continue to carry out its Operations
indefinitely.
5. Accounting period concept refers to the span of time at the end of which the financial statements of
enterprise are prepared.
6. The Companies Act 1956 and Income tax Act require that the income statements should be prepared
annually.
7. The cost concept requires that all assets are recorded in the books of accounts at their Purchase price.
8. Adoption of historical cost brings in Objectivity in recording as the cost of acquisition is easily verifiable from
the purchase documents.
9. Assets = Liabilities + Capital
10. Accounting equation states that the Assets of a business are always equal to the claims of owners and the
outsiders.
11. The concept of revenue recognition requires that the revenue for a business transaction should be included
in the accounting records only when it is Realised
12. Matching Concept states that expenses incurred in an accounting period should be matched with Revenues
during that period.
13. Full disclouser Concept requires that all material and relevant facts of an enterprise must be
fully and completely disclosed in the financial statements.
14. The comparison between the financial results of two enterprises would be meaningful only if same kind of
policies and practices are adopted in the preparation of financial statements.
15. The concept of conservatism requires that profits should not be recorded until Realised
16. The receipt for the amount paid for purchase of machinery becomes the documentary Evidence for the cost
of machine
17. Double entry system is a complete system as both the aspects of transactions are recorded in the books of
accounts.
18. Single entrysystem is not a complete system of maintaining records of financial transactions.
19. Under cash basis entries in the books of accounts are made when cash is received or paid and not when the
receipt or payment becomes due.
20. The regulatory body for Standardization of accounting policies in the country is ICAI
21. GST is a destination based tax on consumption of goods and services.
22. GST has a dual aspect with the Centre and States simultaneously levying on a common tax base.
1. According to which concept the owner of the business is considered creditor of the business:
a. Money measurement concept b. Dual Aspect concept
c. Separate entity concept d. Going concern concept
Ans :- c. Separate entity concept
2. A concept that a business enterprise will not be sold or liquidated in near future is known as,
a. Going concern b. Economic entity c. Monetary unit d. None of the above
Ans :- a. Going concern
3. According to the Going concern concept the time period of Business is,
a. For certain life time b. For uncertain life time
c. Going to wind-up shortly d. None of the above
Ans :- b. For uncertain life time
4. Accounts are regularly made after a fixed period usually a year, this concept is based on,
a. Accounting Period b. Dual Aspect c. Cost d. Business entity
Ans :- a. Accounting Period
5. Assets acquired are recorded in the books,
a. At historical cost b. At market value c. Both a. and b. d. None of the above
Ans :- c. Both a. and b
6. Accounting equation is based on ,
a. Cost concept b. Separate entity concept
c. Dual aspect concept d. Accrual concept
Ans :- c. Dual aspect concept
7. The basis of accounting in which revenue and expenses are recognized in period in which they are earned or
incurred and not when money is received or paid,
a. Cash basis b. Accrual basis c. Mixed basis d. All of the above
Ans :- b. Accrual basis
8. By the misuse of which convention ‘Secret Reserve’ is created.
a. Conservatism b. Materiality c. Consistency d. Full Disclosure
Ans :- d. Full Disclosure
9. Provision for bad & doubtful debts is created in anticipation of actual bad debts on the
basis of,
a. Business entity concept b. Conservatism concept
c. Accrual concept d. Full disclosure concept
Ans :- b. Conservatism concept
10. Insignificant events are not recorded in the books of accounts due to,
a. Materiality concept b. Accrual concept
c. Conservatism concept d. Money measurement concept
Ans :- d. Money measurement concept
11. Depreciation is charged on fixed assets due to this concept,
a. Full disclosure concept b. Materiality concept
c. Conservatism concept d. None of above
Ans :- c. Conservatism concept
12. According to which concept all expenses are matched with the revenue of that period:
a. Realization concept b. Money measurement concept
c. Matching concept d. Business entity concept
Ans :- c. Matching concept
13. Accounting principles are in,
a. Written b. Oral c. Both d. All of the above
Ans :- c. Both
14. AS-2 Explains
a. Valuation of inventories b. Earnings per share
c. Cash flow Statements d. None of the above
Ans :- a. Valuation of inventories
15. AS-40 Explains
a. Investment property b. Revenue recognition
c. Depreciation accounting d. None of the above
Ans :- a. Investment property
16. Benefits to convergence to IFRS is
a. Easy Preparation of Financial statements b. Easy access to global capital market
c. Books of accounts are minimized d. All of the above
Ans :- d. All of the above
17. Out of the following which is not Accounting concept
a. Realization concept b. Going concern concept
c. Cost concept d. Consistency concept
Ans :- a. Realization concept
18. IFRS refers to,
a. Indian Financial reporting standards b. International financial record system
c. International financial reporting standards d. None of the above
Ans :- c. International financial reporting standards
19. ICAI constituted an Accounting Standards Board (ASB) in,
a. April 1977 b. May 1977 c. April 1972 d. None of the above
Ans :- c. April 1972
20. According to conservatism concept assessment of the stock of the business done,
a. On cost value c. Cost value or market value whichever is less
b. On market value d. Cost value or market value whichever is more
Ans :- c. Cost value or market value whichever is less

1. A business is a separate entity from its owners of accounting. (TRUE)
2. In accounting all economic events are recorded in the books of accounts. (False)
3. According to going concern concept a business will continue up to certain period. (False)
4. Accounting period must contain 10 months (False)
5. Accounting principles are in written statements. (TRUE)
6. Accounting standards are not creating uniformity in accounting system. (False)
7. Accounting standard Board was constituted in April 1977 (TRUE)
8. Basis of Accounting are cash and credit. (TRUE)
9. AS - 33 explains earning per share (TRUE)
10. AS -38 explains Investment property. (False)
11. GST is proposed to be levied at all stages from manufacture upto final consumer. (TRUE)

1. State any one Basic Accounting Concept.
Ans:- a) Business entity b) Money measurement
2. State the basic accounting equation.
Ans:- Assets = Liabilities + Capital
3. State any one Basis of Accounting
Ans:- (i) Cash basis; and (ii) Accrual basis.
4. State any one system of Accounting
Ans:- A) Double entry system and B) Single entry system
5. Name any one Accounting Standard
Ans:- IAS 1 Presentation of FinancialStatements
6. Name any one qualitative Character of Accounting Information
Ans:- reliability, relevance, understandability and comparability
7. What is materiality concept?
Ans:- This concept states that accounting should focus on material facts. If the item is likely to influence the
decision of a reasonably prudent investor or creditor, it should be regarded as material, and shown in the
financial statements.
8. Give the meaning of dual aspect concept
Ans:- This concept states that every transaction has a dual or two-fold effect on various accounts and should
therefore be recorded at two places.
9. What do you mean by going concern?
Ans:- The concept of going concern assumes that a business firm would continue to carry out its operations
indefinitely and would not be liquidated in the near future.
10. State any one benefit of convergence of IAS with IFRS
Ans:- Accounting standard helps in eliminating variations in accounting treatment to prepare financial
statements.
11. Expand GAAP
Ans:- Generally Accepted Accounting Principles
12. Expand AICPA
Ans:- The American Institute of Certified Public Accountants
13. Expand ICAI
Ans:- The Institute of Chartered Accountants of India
14. Expand ASB
Ans:- Accounting Standards Board
15. Expand IFRS
Ans:- International financial reporting standards
16. Expand NBFC
Ans:- Non Banking Financial Companies
17. Expand IAS
Ans:- Indian Accounting standard
18. Expand IASB
Ans:- International Accounting Standards Board
19. Expand GST
Ans:- Goods and Services Tax
20. Expand CGST
Ans:- Central Goods and Services Tax
21. Expand SGST
Ans:- State Good and Services Tax
22. Expand IGST
Ans:- Integrated Goods and Services Tax
23. State any one component of GST
Ans:-
24. Write any one characteristic of GST
Ans:- GST is a common law and procedure throughout the country under single administration
25. Write any one advantages of GST
Ans:- Introduction of GST has resulted in the abolition of multiple types of taxes in goods and services.
Section-B: Short Answer Questions for Two Marks:-
1. What is theory base of accounting?
Ans:-
2. What is the meaning of GAAP?
Ans:- Generally Accepted Accounting Principles (GAAP) refers to the rules or guidelines adopted for recording
and reporting of business transactions, in order to bring uniformity in the preparation and the presentation of
financial statements.
3. What do you mean by Basic Accounting Concepts?
Ans:- The basic accounting concepts are referred to as the fundamental ideas or basic assumptions underlying
the theory and practice of financial accounting and are broad working rules for all accounting activities and
developed by the accounting profession.
4. State any two Accounting concepts.
Ans:- • Business entity; • Money measurement; • Going concern;
5. What do you mean by Business entity concept?
Ans:- The concept of business entity assumes that business has a distinct and separate
entity from its owners.
6. What do you mean by matching concept?
Ans:- It states that expenses incurred in an accounting period should be matched with revenues during that
period
7. What do you mean by basic accounting equation?
Ans:- it states that the assets of a business are always equal to the claims of owners and the outsiders
8. What is Double entry system of accounting?
Ans:- Double entry system is based on the principle of “Dual Aspect” which states that every transaction has
two effects, viz. receiving of a benefit and giving of a benefit. Each transaction,
9. What is single entry system of accounting?
Ans:- Single entry system is not a complete system of maintaining records of financial transactions. It does not
record two-fold effect of each and every transaction.
10. State any two features of Single entry system of book keeping.
Ans:-
11. State any two differences between Single entry and Double entry system of book keeping.
Ans:-
12. What is Accounting Standard?
Ans:- Accounting standards are written statements of uniform accounting rules and guidelines in practice for
preparing the uniform and consistent financial statements.
13. What is cash basis of accounting?
Ans:- Under the cash basis, entries in the book of accounts are made when cash is received or paid and not
when the receipt or payment becomes due.
14. What is Accrual basis of accounting?
Ans:- Under the accrual basis, however, revenues and costs are recognised in the period in which they occur
rather when they are paid.
15. State any two differences between cash and accrual basis of accounting.
Ans:-
16. State any two features of Double entry system of accounting
Ans:-
17. What is matching concept?
Ans:- It states that expenses incurred in an accounting period should be matched with revenues during that
period.
18. What is IFRS?
Ans:- IFRS is an international body that prepares the standards for accounting work throughout the world. It is
the abbreviation of International financial reporting standards.
19. State any two benefit of convergence IAS with IFRS.
Ans:- a) International standard to IAS
b) It brought uniformity and transparency in IAS
20. Expand IFRS and NBFC.
Ans:-
21. What is GST?
Ans:- GST is a destination based tax on consumption of goods and services. It is proposed to be levied at all
stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as
setoff.
22. What is CGST?
Ans:- CGST means Central Goods and Services Tax. Taxes collected under CGST will constitute the revenues of
the Central Government
23. What is SGST?
Ans:- SGST means State Good and Services Tax. A collection of SGST is the revenue of the State
Government.
24. What is IGST?
Ans:- IGST means Integrated Goods and Services Tax. Revenue collected under IGST is divided between Central
and State Government as per the rates specified by the Government.
Chapter - 3
Recording of Transactions - I
1. Business transactions are exchanges of economic Considerations between parties.
2. Business transactions have Two-fold effects.
3. Business transactions are usually evidence by an appropriate Documents
4. A document which provides evidence of the transactions is called the Voucher
5. All recording in books of account is done on the basis of Vouchers
6. Voucher must be preserved in any case till the Audit of the accounts.
7. A transactions with one debit and one credit is a Simplie transaction.
8. Voucher which records a transaction that entails multiple debits/credits and one credit/debit is called
Complex voucher.
9. Transactions with multiple debits and multiple credits are called Complex transactions.
10. Accounting equation signifies that the assets of a business are always equal to the total of its liabilities and
Capital
11. Assets = Liabilities + Capital
12. The balance sheet is a statement of Assets ,Liabilities and Capital.
13. The properties and outsiders provide the Resources of the business.
14. Accounting equation always remain Balanced
15. Every transaction involves Two aspects.
16. Every debit must have a corresponding Credit
17. An account looks like the letter T
18. All accounts are divided into Two categories for the purpose of recording the transactions.
19. Increase in an asset is Debited
20. Decrease in an asset is Credited.
21. Increase in expenses is Debited
22. Decrease in expenses is Credited
23. Increase in liabilities is Credited
24. Decrease in liabilities is Debited
25. Increase in revenue is Credited
26. Decrease in revenue is Debited
27. Increase in capital is Credited
28. Decrease in capital is Debited
29. The book in which the transaction is recorded is for the first time is called Journal or book of original entry
30. The process of recording transactions in journal is called Journalising
31. The process of transferring journal entry to individual account is called Posting
32. Journal is a book of original entry
33. Ledger account is the principal book of Entry
34. In journal, transactions are recorded in the Chronological order.
35. A brief description of the transaction is called the Narration
36.When only two accounts are involved to record a transaction ,it is called a Simple Journal Entry
37. The goods account is divided into Two accounts.
38. When the number and accounts to be debited or credited is more than one the transaction is called
Compound journal entry.
39. Ledger contains different Accounts
40. L.F is filled up at time of Posting
41. All ledger accounts are put into Five categories.
42. All permanent accounts appear in the Balance sheet
43. All assets, liabilities and capital accounts are Permanent accounts
44. All revenue and expense are Temparary accounts
45. Posting from the journal is done Periodically
46. Issued a cheque for Rs.10,000 to pay rent. The account to be debited is Rent account
47. Purchased office stationary for Rs.5000 account to be credited is Cash account
1) The L.F column of journal is used to
a) Record the date on which amount posted to a ledger account
b) Record the number of ledger account to which information is posted
c) Record the number of amounts posted to the ledger account
d) Record the page number of the ledger account
Ans:- d) Record the page number of the ledger account
2) When an entry has made in journal
a) Assets are listed first b) Accounts to be debited listed first
c) Accounts to be credited listed first d) Accounts may be listed in any order
Ans:- b) Accounts to be debited listed first
3) Out of the following equations which is correct?
a) C = A+L b) C = A-L c) C = A+L- profit d) C = L-A
Ans:- b) C = A-L
4) Journal records the transactions of the firm in an
a) Analytical manner b) chronological manner
c) periodical manner d) summarized manner
Ans:- b) chronological manner
5) Ledger book is popularly known as
a) Secondary book of accounts b) Principal book of accounts
c) Subsidiary books of accounts d) None of the above
Ans:- a) Secondary book of accounts
6) Ledger records transaction in
a) Chronological order b) Analytical order c) Both the above d) None
Ans:- b) Analytical order
7) Goods worth Rs. 50000 were sold to Manoj @15% discount on credit. Manoj’s account will be debited
a) By Rs. 7500 b) By Rs.42500c) By Rs.50000 d) By Rs.57500
Ans:- b) By Rs.42500
8) Debit signifies
a) Increase in assets account b) Decrease in liabilities
c) Increase in expenses account d) All the above
Ans:- d) All the above
9) What is the nature of drawing goods?
a) Income b) Expense c) Introduction of capital d) Withdrawal of capital
Ans:- d) Withdrawal of capital
10) Goods worth Rs.21000 distributed as free sample. The account to be credited is
a) Purchase account b) Sales account
c) Free sample account d) P and L account
Ans:- a) Purchase account
11) Income tax worth Rs.5000 of the proprietor paid by a firm, the account to be debited is
a. Income tax account b. Bank account c) Drawing account d) Expenses account
Ans:- c) Drawing account
12) Rent paid to land lord is credited to
a) Rent account b) Land lord account c) Cash account d) None of the above
Ans:- c) Cash account
13) Voucher is prepared for
a) Cash received and paid b) Cash/ credit sales
c) Cash/ credit purchase d) All the above
Ans:- a) Cash received and paid
14) Voucher is prepared from
a) Documentary evidence b) Journal entry
c) Ledger account d) All of the above
Ans:- a) Documentary evidence
15) How many sides does an account have?
a) One b) Two c) Three d) None of the above
Ans:- b) Two
16) Which of the following is correct?
a) L= A+C b) A = L-C c) C = A-L d) C = A+L
Ans:- c) C = A-L
17) The book in which all accounts are maintained is known as
a) Cash book b) Journal c) Purchase book d) Ledger
Ans:- d) Ledger
18) Recording of transaction in the journal is called
a) Casting b) Recording c) Journalizing d) Posting
Ans:- c) Journalizing
19) Journal entry to record salaries will include
a) Debit salaries, credit cash b) Debit capital, credit cash
c) Debit cash, credit salary d) Debit salary, credit creditors
Ans:- a) Debit salaries, credit cash

1. Business tansactions hav two-fold effect. (True)
2. Voucher must be preserved till the audit of the accounts. (True)
3. Assets – Liabilities = Capital (True)
4. The Balance Sheet is the statement of Assets, Liabilities and Capital. (True)
5. All accounts are divided into five categaries. (True)
6. Increase in an asset is to be debited. (True)
7. Decrease in an asset is to be debited. (False)
8. Increase in Liability is debited. (False)
9. Increase in income is credited. (True)
10. Increase in Capital is credited. (True)
11. All permanent accounts appear in the Balance Sheet. (True)
12. A brief description about the transaction is called Narration. (True)
13. Journal is a book of original entry. (True)
14. L.F is filled-up at the time of posting. (True)
15. The process of recording in the ledger is called posting. (True)

1. What is source document/voucher?
Ans:- A document which provides evidence of the transactions is called the Source Document or a Voucher.
2. Give an example for voucher.
Ans:- Cash memo, Invoice, Sales bill, Pay-in-slip, Cheque, Salary slip, etc.
3. Give an accounting equation.
Ans:- Capital = Assets - Liabilities
4. Give the Debit Rule of Asset.
Ans:- Debit increase in Asset
5. Give the Credit Rule of Asset.
Ans:- Credit decrease in Asset
6. Give the Debit Rule of Liability.
Ans:- Debit decrease in Liability
7. Give the Credit Rule of Liability.
Ans:- Credit increase in Liability
8. Give the Debit Rule of Capital.
Ans:- Debit decrease in Capital
9. Give the Credit Rule of Capital.
Ans:- Credit increase in Capital
10. Give the Debit Rule of Expense.
Ans:- Debit increase
11. Give the Credit Rule of Expense.
Ans:- Credit decrease
12. Give the Debit Rule of Income.
Ans:- Debit decrease
13. Give the Credit Rule of Income.
Ans:- Credit increase
14. What is Ledger?
Ans:- The ledger is the principal book of accounting system. It contains different accounts where transactions
relating to that account are recorded
15. What is Journalising?
Ans:- The process of recording entries in the journal is called journalising.
16. What is Posting?
Ans:- Posting is process of transferring entries from books of original entry to the ledger.
17. Expand J.F.
Ans:- Journal Folio
18. What is simple Journal Entry?
Ans:- When only two accounts are involved to record a transaction, it is called a simple journal entry.
19. What is compound Journal Entry?
Ans:- When the number of accounts to be debited or credited is more than one, entry made for recording the
transaction is called compound journal entry
20. What do you mean by simple transaction?
Ans:- A transaction with one debit and one credit is called a simple transaction
21. What is debit voucher?
Ans:- Debit voucher is a voucher showing the account or accounts to be debited
22. What is credit voucher?
Ans:- Credit voucher is a voucher showing the account or accounts to be credited
23. What is complex voucher?
Ans:- The accounting voucher prepared for complex transaction is known as Complex Voucher/ Journal
Voucher.
24. What is balance sheet?
Ans:- Balance sheet is a statement that shows the assets, liabilities and capital of the firm
25. Who provides resources of the business?
Ans:- Capital of the owner
Ans:- Capital is the amount invested by owner in business
27. What is a liability?
Ans:- Liability is the amount owned to outsiders and have credit balance
28. Why the balance sheet is prepared?
Ans:- To know the financial position of the business
29. What is journal?
Ans:- journal is the basic book of original entry. In this book, transactions are recorded in the chronological
order, as and when they take place.
30. What is journal entry?
Ans:- The journal entry is the basic record of a business transaction. It may be simple or compound.
31. What is narration
Ans:- a brief description of the transaction is given which is called Narration.
32. What is ledger?
Ans:- The ledger is the principal book of accounting system. It contains different accounts where transactions
relating to that account are recorded
33. What do you mean by debit balance?
Ans:-
34. What do you mean by credit balance?
Ans:-
35. When do you record in the JF column?
Ans:- JF column is filled up at the time of posting.
36. What are temporary Accounts?
Ans:- The accounts which are of no longer than one operating cycle are considered as Temporary accounts
37. Where do you record all the permanent Accounts?
Ans:- In the Balance sheet

1. What do you mean by source document or voucher?
Ans:- A document which provides evidence of the transactions is called the Source Document or a Voucher.
2. What do you mean by compound voucher?
Ans:- Voucher which records a transaction that entails multiple debits/credits and one credit/debit is called
compound voucher.
3. What do you mean by complex transaction?
Ans:- Transactions with multiple debits and multiple credits are called complex transactions
4. What is double entry accounting?
Ans:- In double entry accounting, every transaction affects and is recorded in at least two accounts.
5. State the categories of Accounts
Ans:-
6. State the rules of debit and credit of revenue
Ans:- Debit decrease and Credit Increase
7. State the rules of debit and credit of expenses
Ans:- Debit Increase and Credit decrease
8. State the rules of debit and credit of Assets
Ans:- Debit Increase and Credit decrease
9. State the rules of debit and credit of liabilities
10. State the rules of debit and credit of capital
11. What is balancing of an Account?
Ans:- When the balance of debit side is more than that of credit side, the balance is written in credit side. When
the balance of credit side is more than that of debit side, the balance is written in debit side. It is called
balanacing of an account.
12. What is the broad classification of ledger Accounts?
Ans:- Ledger accounts are put into five categories namely, assets, liabilities, capital, revenues /gains and
expense losses. All these accounts may further be put into two groups, i.e. permanent accounts and temporary
accounts. all assets, liabilities and capital accounts are permanent accounts and all revenue and expense
accounts are temporary accounts.
13. State the 3 fundamental steps in Accounting process
Ans:- 3 fundamental steps in Accounting process
a) Analysing the transactions b) Recording of transactions c) Classifying and summarising the transactions
14. Why is the evidence provided by source document important to Accounting?
Ans:- A document which provides evidence of the transactions is called the Source Document or a Voucher. At
times, there may be no documentary for certain items as in case of petty expenses. In such case voucher may be
prepared showing the necessary details and got approved by appropriate authority within the firm. All such
documents (vouchers) are arranged in chronological order and are serially numbered and kept in a separate file.
All recording in books of account is done on the basis of vouchers.
15. Should a transaction be first recorded in a journal or ledger? Why?
Ans:- The book in which the transaction is recorded for the first time is called journal or book of original entry.
The source document is required to record the transaction in the journal. This practice provides a complete
record of each transaction in one place and links the debits and credits for each transaction
16. Give the specimen of an Account?
Ans:-
Dr Cr
Date Particalars J.F Amount Date Particalars J.F Amount
17. Give the specimen of journal

Ans:-
Date Particalars L.F Debit Rs Credit Rs
18. Give the journal entry for goods distributed as free samples
Ans:- Advertisement A/c Dr.
To Purchases A/c
(Goods distributed as free samples)
19. Distinguish between source documents and voucher.
Ans:-
Basis Source documents Voucher
Meaning It refers to the documents in When source document is considered as

writing, containing the details evidence of an event or transaction, then it
of events or transactions is called voucher.
Purpose It is used for preparing It is used for analysing the transactions.
accounting vouchers.
Preparation It is prepared at the time It can be prepared either when an event or
when an event or a a transaction occurs, or later on.
transaction occurs.
Examples Cash memo, invoice, and pay- Cash memo, invoice, pay-in-slip (if used as
in-slip, etc. evidence), debit note, credit note, cash
vouchers, transfer vouchers, etc.
Chapter - 4
Recording of Transactions - II
1. Cash book is a Subsidiary journal(book).
2. Assets sold on credit are entered in Journal Proper
3. Cash book does not record the Credit transactions.
4. While making entries in cash book the rule of Real Account is followed.
5. Cash book is a journal as well as a ledger for Real Account.
6. Cash book maintained to record small expenses is Called Petty cash book.
7. Petty cash book is also known as Small cash book.
8. Cash Book is a journal as well as ledger.
9. In two column cash book records transaction relating to Cash And Bank .
10. Credit note is the basis for recording Sales Returns book.
11. Debit note is the basis for recording Purchases Returns book.
12. Invoice is the basis for recording Purchase book.
13. Outward invoice is the basis for recording Sales book.
14. Fixed assets purchased for cash are recorded in Cash book.
15. Adjusting entries are recorded in Journal Proper.

1. When a firm maintains a cash book, it need not maintain:
a) Journal Proper b) Purchases book
c) Sales book d) Bank and cash account in the ledger.
Ans:- d) Bank and cash account in the ledger.
2. Double column cash book records:
a) All transactions b) Cash and bank transactions
c) Only cash transactions d) Only credit transactions.
Ans:- b) Cash and bank transactions
3. Goods purchased on cash are recorded in the:
a) Purchases book b) Sales book c) Cash book d) Purchases return book.
Ans:- c) Cash book
4. The balance on the debit side of the bank column in the cash book indicates:
a) The total amount withdrawn from bank. c) Cash at bank.
b) The total amount deposited in the bank. d) None of these.
Ans:- b) The total amount deposited in the bank.
5. Cash book is a
a) Subsidiary journal. b) Subsidiary journal and ledger account.
c) Ledger account. d) None of these.
Ans:- b) Subsidiary journal and ledger account.
6. Cash book does not record transaction of:
a) Cash nature b) Credit nature
c) Cash and credit nature d) none of these
Ans:- b) Credit nature
7. Credit balance of bank account in cash book shows:
a) Overdraft b) Cash deposited in our bank
c) Cash withdrawn from bank d) None of these.
Ans:- a) Overdraft
8. Cash sales are recorded in:
a) Sales book b) Cash book c) Journal d) None of these.
Ans:- b) Cash book
9. The balance of petty cash book is:
a) a liability b) an expense c) a gain d) an asset
Ans:- d) an asset
10. Cash discount is provided on:
a) prompt payment b) Sale c) purchase d) None of these.
Ans:- a) prompt payment
11. The term imprest system is used in relation to:
a) Purchases book b) Sales book c) Cash book d) Petty cash book.
Ans:- d) Petty cash book.
12. Purchases book is maintained to record:
a) Purchases of goods b) All cash purchases
c) All credit purchases d) All credit purchases of goods.
Ans:- d) All credit purchases of goods.
13. Sales book is maintained to record:
a) credit sales of goods only b) cash sales of goods only
c) all credit sales d) None of these.
Ans:- a) credit sales of goods only
14. Returns inward book records:
a) Returns of goods from factory to the godown.
b) Returns of goods from show-room to godown.
c) Returns of goods from the customers
d) Returns of goods from the suppliers.
Ans:- c) Returns of goods from the customers
15. Returns outward book records
a) Goods returned to the suppliers b) Goods returned to the stores
c) Goods returned to the customers d) Goods returned by the owner.
Ans:- a) Goods returned to the suppliers

1. Cash account is a real account. (True)
2. Cash book is both a ledger account and subsidiary book. (True)
3. A contra entry is one which does not require posting to the Ledger. . (True)
4. A contra entry appears on both side of cash book. . (True)
5. Bank column of the cash book always shows debit balance. (False)
6. Cash sales are recorded in the sales book. (False)
7. Petty cash book is a book having record of big payments. (False)
8. Assets sold on credit are entered in sales book. (False)
9. Trade discount is not recorded in books of accounts. (True)
10. Purchases book records all purchases. (False)
11. Sales book records all credit sales. (True)
12. Sales returns book records return of fixed assets. (False)
13. Purchases of fixed asset on credit is recorded in journal proper. (True)
14. Purchases book and Purchases account are synonymous. (False)
15. Purchases and sale of fixed assets on cash are recorded in journal proper. (False)

1. What do you mean by discount?
Ans:-
2. State any one type of discount.
Ans:- Cash discount
3. Mention any one feature of cash book.
Ans:- all transactions relating to cash receipts and cash payments are recorded.
4. Name any one type of cash book.
Ans:- single column cash book
5. What do you mean by petty cash book?
Ans:- Petty cash book is a cash book which is used to record small cash payments.
6. State any one type of petty cash book.
Ans:- Imprest Petty cash book
7. State any one uses of petty cash book.
Ans:- To record small expenses
8. Write any one feature of subsidiary book.
Ans:-
9. Name any one type of subsidiary book.
Ans:- Cash book
10. What type of transaction recorded in the purchases book?
Ans:- All credit purchases of goods
11. What type of transaction recorded in the ?
Ans:- All credit sales of goods
12. Name any one transaction recorded in the purchases returns book.
Ans:- Return outward to supplier
13. State any one transaction recorded in the sales returns book.
Ans:- Return inward by custmers
14. Name the document used for recording in the purchases returns book.
Ans:- Debit Note
15. Name the document used for recording in the sales returns book.
Ans:- Credit Note
16. Name any one type of transaction recorded in the journal proper.
Ans:- Transactions of opening entry
Section-B: Short Answer Questions for Two Marks:-

1. Name any two types of subsidiary books.
Ans:- cash book, sales book, purchases book
2. What is a cash book?
Ans:- Cash book is a book used to record all cash receipts and payments
3. Mention any two features of cash book.
Ans:- a) all transactions relating to cash receipts and cash payments are recorded.
b) It starts with the cash or bank balances at the beginning of the period.
4. Name any two types of cash book.
Ans:- Single Column Cash Book, Double Column Cash Book , petty cash book
5. What is single-column cash book?
Ans:- The single column cash book records all cash transactions of the business in a
chronological order,
6. What is two column cash book?
Ans:- Two column cash book is a cash book having two columns (Cash and Bank columns) amount on both
debit and credit sides.
7. What are contra entries?
Ans:- When an entry affects both cash and bank accounts it is called a contra entry. Cash and Bank account is
not necessary to prepare at the time of ledger posting because Cash book is itself showing Cash A/c and Bank
A/c balance.
8. What is petty cash book?
Ans:- Petty cash book is a type of cash book in which all the petty (Small) payments are recorded by petty
cashier. For ex – Postage. Telegrams, Carriage, Stationery, Coolie, Tea charges, Conveyance etc.
9. State the types of petty cash book?
Ans:- a) Columnar petty cash book b) Imprest petty cash book
10. What is columnar petty cash book?
Ans:- Columnar petty cash book contains many money columns to record day to day expenditure. It has two
sides debit side and credit side.
11. Sate any two uses of petty cash book.
Ans:- a) Saving of Time and efforts of chief cashier b) Effective control over cash disbursements
12. What is imprest system of petty cash book?
Ans:- Under this system petty cash fund is maintained at a fixed sum. Payments are made and the fund is them
replenished to the original amount.
13. Give the meaning of subsidiary books.
Ans:- Journal is sub-divided into special journals. Many of the business transactions are
repetitive in nature. They can be easily recorded in special journals, each meant for recording all the
transactions of a similar nature . These special journals are also called daybooks or
subsidiary books.
14. Write the meaning of purchases book.
Ans:- Surchases book is a subsidiary book where All credit purchases of goods are recorded
15. What is an invoice?
Ans:-
16. What is purchases returns book?
Ans:- Purchases Return book is a subsidiary book where purchases return of goods are recorded
17. What is a debit note?
Ans:- The source document for recording entries in the purchases return journal is called debit note.
18. What is sales book?
Ans:- Sales book is a subsidiary book where All credit sales of goods are recorded
19. What is sales returns book?
Ans:- Sales Returns book is a subsidiary book where return of goods by customers are recorded
20. What is credit note?
Ans:- The source document for recording entries in the sales return journal is called Credit note.
21. What is Journal proper?
Ans:- Transactions that cannot be recorded in any special journal are recorded in journal called the Journal
Proper.
22. Name any two types of transactions recorded in the journal Proper
Ans:-
Chapter - 5
Bank Reconciliation Statement
1. What is Bank Reconciliation Statement?
Ans:- Bank Reconciliation Statement is a statement prepared to reconcile the bank balance as per cash book
with the balance as per passbook or bank statement, by showing the items of difference between the two
accounts.
2. Why is Bank Reconciliation Statement prepared?
Ans:- Bank Reconciliation Statement is prepared prepared to reconcile the bank balance as per cash book with
the balance as per passbook or bank statement
3. State any two reasons for the difference between cash book balance and pass book balance.
Ans:- a) Cheques issued by the bank but not yet presented for payment
b) Cheques paid into the bank but not yet collected
4. State any two causes of difference between cash book balance and pass book balance
occurred due to time lag.
Ans:- a) Cheques issued by the bank but not yet presented for payment
b) Cheques paid into the bank but not yet collected
5. Give any two examples for errors committed by the firm in cash book.
Ans:- a) The payment side of the cash book was under cast by ` 100.
b) Withdrawal column of the passbook under cast by ` 100.
6. Give any two examples for errors committed by the bank in pass book.
Ans:- a) Interest of rs 200 was wrongly entered as rs 150 in pass book
b) Bank charges of rs 200 was wrongly entered as rs 150 in pass book
7. What do you understand by the following:
a. Debit balance as per cash book.
b. Credit balance as per cash book.
Ans:- a) Debit balance as per cash book means the balnce of deposits held at the bank.
b) Credit balance as per cash book means the excess amount withdrawn over the amount deposited in the bank.
a. Debit balance as per pass book.
b. Credit balance as per pass book
Ans:- a) Debit balance as per the pass book means the excess amount withdrawn over the amount deposited in
the bank.
b) Credit balance as per pass book means amount deposited in the bank
a. Favourable balance as per cash book
b. Unfavourable balance as per cash book
Ans:- a) Debit balance as per cash book is called the Favourable balance as per cash book
b) Credit balance as per cash book is called the Unfavourable balance as per cash book
a. Favourable balance as per pass book
b. Unfavourable balance as per pass book
Ans:- a) Credit balance as per pass book is called the Favourable balance as per pass book
b) Debit balance as per pass book is called the Unfavourable balance as per pass book
11. What is Pass book?
Ans:- Pass book is a bank statement or a bank passbook. It is a copy of a bank account as shown by the bank
records. Or Passbook is the statement of account of the customer maintained by the bank
12. What is bank overdraft?
Ans:- Bank overdraft is the excess amount withdrawn over the amount deposited in the bank by a customer.
13. Why is Amended Cash Book prepared?
Ans:- To find out correct bank balance
14. Enumerate the first two steps to ascertain the correct cash book balance.
Ans:- It may happen that some of the receipts or payments are missing from either of the books and errors, if
any, need to be rectified. This arise the need to look at the entries/errors recorded in both statements and other
information available and compute the correct cash balance before reconciling the statements.
Chapter - 6
Trial Balance and Rectification of Errors
1. The Trial balance is usually prepared with the Balances of account.
2. Trial balance is prepared at the End of the accounting year.
3. Trial balance is a list of Accounts and its balances.
4. When a transaction is completely omitted from recording in the books of original records it is an error of
Complete omission.
5. Accounting entries are not recorded as per the generally accepted accounting principles is known as error of
Principle.
6. When two or more errors are committed in such a way that the net effect of these errors on the debit and
credit of account is nil, such errors are called Compensating errors.
7. Capital account balance is a Credit balance.
8. Drawings account balance is a Debit balance.
9. Assets account balances are Debit balance.
10. Liabilities account balances are Credit balance.
11. Expenses account balances are Debit balance.
12. Incomes account balances are Credit balance.

1. Agreement of trial balance is affected by:
(a) One sided errors only. (b) Two sided errors only.
(c) Both a and b. (d) None of the above.
Ans:- (c) Both a and b.
2. Which of the following is not an error of Principle:
(a) Purchase of furniture debited to purchases account.
(b) Repairs on the overhauling of second hand machinery purchased debited to repairs
account.
(c) Cash received from Manoj posted to Saroj.
(d) sale of old car credited to sales account.
Ans:- (c) Cash received from Manoj posted to Saroj
3. Which of the following is not an error of commission:
(a) Over casting of sales book.
(b) Credit sales to Ramesh Rs.5000 credited to his account.
(c) Wrong balancing of machinery account.
(d) Cash sales not recorded in cash book
Ans:- (d) Cash sales not recorded in cash book
4. Which of the following errors will be rectified through suspense account:
(a) Sales return book was under cast by Rs.1,000.
(b) Sales return by Madhu Rs.1,000 not recorded .
(c) Sales return by Madhu Rs.1,000 recorded as Rs.100.
(d) Sales return by Madhu Rs.1,000 recorded through purchases returns book.
Ans:- (a) Sales return book was under cast by Rs.1,000.
5. If the trial balance agrees, it implies that:
(a) There is no error in the books.
(b) There may be two sided errors in the books.
(c) There may be one sided errors in the books.
(d) There may be both two sided and one sided errors in the books.
Ans:- (b) There may be two sided errors in the books.
6. If the suspense account does not balance even after rectification of errors it implies that:
(a) There are some one sided errors only in the books yet to be located.
(b) There are no more errors yet to be located.
(c) There are some two sided errors only yet to be located.
(d) There may be both one sided errors and two sided errors yet to be located.
Ans:- (a) There are some one sided errors only in the books yet to be located.
7. If Wages paid for installation of new machinery is debited to wages account, If it is:
(a) An error of commission. (b) An error of principle.
(c) A compensating error. (d) An error of omission.
Ans:- (b) An error of principle.
8. Trial balance is:
(a) An account. (b) A statement. (c) A subsidiary book. (d) A principal book.
Ans:- (b) A statement
9. A trial balance is prepared:
(a) After preparation of financial statements.
(b) After recording transactions in subsidiary books.
(c) After posting to the ledger is completed.
(d) After posting to ledger is completed and accounts have been balanced.
Ans:- (d) After posting to ledger is completed and accounts have been balanced
10. Object of preparing trial balance is:
a) To know the accuracy of account. b) To know the financial position of the business.
c) To know the profit or loss.
d) To know the arithmetical accuracy of books of accounts.
Ans:- d) To know the arithmetical accuracy of books of accounts.

1. Trial Balance is a list of balances of all ledger accounts on a particular date. (True)
2. Trial balance is a part of book-keeping. (False)
3. Trial balance is just a statement and not an account. (True)
4. Object of preparing the trial balance is to know profit or loss of the business. (False)
5. The difference of trial balance is transferred to capital account. (False)
6. Generally trial balance does not include the closing stock. (True)
7. When one error compensate the other mistakes it is called error of principle. (False)
8. Error of omission affects the agreement of Trial balance. (False)
9. Compensating error does not affect the totals of Trial balance. (True)
10. Trial Balance cannot trace the error of principle. (True)
11. Preparation of trial balance is compulsory. (True)
12. Trial Balance is a statement. (True)
13. The balance of capital account is shown in the debit column of the Trial Balance (False)
14. Liabilities are always shown on the credit column of Trial Balance. (True)

1. State one objective of Trial Balance.
Ans:- To help in locating errors.
2. Name one method of preparing the Trial Balance.
Ans:- (i) Totals Method (ii) Balances Method (iii) Totals-cum-balances Method
3. State any one type of error.
Ans:- • Errors of Commission • Errors of Omission • Errors of Principle • Compensating
4. Give an example for error of commission.
Ans:- Credit sale to Rama of rs 5000 was written as 500 in his account
5. Give an example for error of omission.
Ans:- credit sales to Mohan rs 10,000, not entered in the sales book.
6. Give an example for error of principle.
Ans:- Repairs on machinery rs 1,400 debited to machinery account.
7. Give an example for compensating errors.
Ans:- purchases book has been overcast by rs 10,000 and sales returns book is under cast by rs 10,000
8. Give an example for error which affects the trial balance.
Ans:- Credit sales to Mohan rs 10,000 were posted to his account as rs 7000
9. Give an example for error which does not affects the trial balance.
Ans:- Credit sales to Mohan rs 10,000 were not recorded in the sales book
Section-B:Short Answer Questions for Two marks:-

1) What is trial balance?
Ans:- Trial balance is a statement showing the abstract of the balance (debit/credit) of various accounts in the
ledger
2) State two objectives of trial balance.
Ans:- 1. To ascertain the arithmetical accuracy of the ledger accounts.
2. To help in locating errors.
3. To help in the preparation of the financial statements.
3) Name any two methods of preparing the trial balance.
Ans:- i) Totals Method (ii) Balances Method (iii) Totals-cum-balances Method
4) State any two types of errors.
Ans:- • Errors of Commission • Errors of Omission • Errors of Principle • Compensating
5) Give the meaning of ‘balances method’ of preparing the trial balance.
Ans:- Under this method trial balance is prepared by showing the balances of all ledger accounts and then
totalling up the debit and credit columns of the trial balance to assure their correctness.
6) State any two steps in the preparation of trial balance.
Ans:- • Ascertain the balances of each account in the ledger.
• List each account and place its balance in the debit or credit column, as the case may be.
7) What is an error of omission?
Ans:- When a transaction is completely or partially omitted from recording in the books of original record is
called error of omission.
8) Give any two examples for errors of omission.
Ans:- a) Credit sales to Mohan rs 10,000, not entered in the sales book.
b) Credit purchases from Mohan rs 10,000, not entered in the purchases book
9) What is an error of commission?
Ans:- Error of commission are the errors which are committed due to wrong posting of transactions, wrong
totalling or wrong balancing of the accounts, wrong casting of the subsidiary books, or wrong recording of
amount in the books of original entry, etc.
10) Give any two examples for errors of commission.
Ans:- a) Credit sale to Rama of rs 5000 was written as 500 in his account
b) a) Credit purchases from Rama of rs 5000 was written as 500 in his account
11) What is an error of principle?
Ans:- Error of principle is the error while recording transactions principles are violated or ignored
12) Give any two examples for error of principle.
Ans:- a) Repairs on machinery rs 1,400 debited to machinery account
b) Repairs on Building rs 1,400 debited to Building account
13) What is compensating error?
Ans:- When two or more errors are committed in such a way that the net effect of these
errors on the debits and credits of accounts is nil, such errors are called compensating errors.
14) Give any two examples for compensating error.
Ans:- a) purchases book has been overcast by rs 10,000 and sales returns book is under cast by rs 10,000
15) What do you mean by rectification of errors?
Ans:-
16) Give two examples for errors which are affecting the trial balance.
Ans:- a) Credit sales to Mohan rs 10,000 were posted to his account as rs 7000
b) Credit purchases from Mohan rs 10,000 were posted to his account as rs 7000
17) Give two examples for errors which do not affect the Trial Balance.
Ans:- a) Credit sales to Mohan rs 10,000 were not recorded in the sales book
b) Credit purchases from Mohan rs 10,000 were not recorded in the Purchases book
18) What is a suspense account?
Ans:- Suspense account is an account in which the difference in the trial balance is put till such time that errors
are located and rectified.
19) When a suspense account is opened?
Ans:- When the balance of both sides of the trial balance is not matched
Chapter - 7
Depreciation, Provisions and Reserves
1. What is Depreciation ?
Ans:- Depreciation is the decrease in the value of fixed asset.
2. State any two features of depreciation.
Ans:- 1. It is decline in the book value of fixed assets.
2. It includes loss of value due to effluxion of time, usage or obsolescence.
3. It is a continuing process.
3. State any two causes of depreciation.
Ans:- a) Wear and Tear due to Use or Passage of Time
b) Expiration of Legal Rights c) Obsolescence
4. State any two reasons for the charging of depreciation .
Ans:-
5. Mention any four factors affecting the amount of annual depreciation.
Ans:- a) Cost of Asset b) Estimated Net Residual Value c) Depreciable Cost
d) Estimated Useful Life
6. State the two methods of depreciation
Ans:- a) Straight Line Method b) Written Down Value Method
7. What is Straight Line Method of depreciation ?
Ans:- Under Straight Line Method a fixed and an equal amount is charged as depreciation in every accounting
period during the lifetime of an asset
8. What is Written Down Value Method of depreciation ?
Ans:- Under Written Down Value Method depreciation is charged on the book value of the asset or opening
balance of the asset every year
9. State any two differences between Straight Line Method and Diminishing Balance Method.
Ans:-
Straight Line Method Written Down Value Method
a) Basis of charging depn Original cost Opening balance of asset every year
b) Annual depreciation charge Fixed Declines year after year
10. What is Provision ?

Ans:- Provision is a charge against profit. It is created for a known current liability the amount of which is
uncertain.
11. What is Reserve ?
Ans:- Reserve is an appropriation of profit. It is created to strengthen the financial position of the business.
12. State any two types of Reserves.
Ans:- • General reserve and specific reserve;
• Revenue reserve and capital reserve.
13. State any two types of Revenue Reserves.
Ans:-
14. What is Capital Reserve ?
Ans:- Capital reserves are created out of capital profits which do not arise from the normal operating activities
15. What is Revenue Reserve?
Ans:- Revenue reserves are created from revenue profits which arise out of the normal operating activities of
the business and are otherwise freely available for distribution as dividend.
16. What is General Reserve ?
Ans:- When the purpose for which reserve is created is not specified, it is called General Reserve
17. What is Specific Reserve ?
Ans:- Specific reserve is the reserve, which is created for some specific purpose and can be utilised only for that
purpose
18. Give four examples for Capital Reserves.
Ans:- • Premium on issue of shares or debenture. • Profit on sale of fixed assets.
• Profit on redemption of debentures. • Profit on revaluation of fixed asset & liabilities.
• Profits prior to incorporation. • Profit on reissue of forfeited shares
19. Give four examples for Revenue Reserves.
Ans:- • General reserve; • Workmen compensation fund
• Investment fluctuation fund; • Dividend equalisation reserve;
• Debenture redemption reserve;
20. State any two differences between Provisions and Reserves.
Ans:-
Provision Reserve
a) Basic nature Charge against profit. Appropriation of profit.
b) Effect on taxable profits It reduces taxable profits. It has no effect on taxable profit
CHAPTER NO 8---Bill of Exchange
1. A bill of exchange is a Negotiable instrument.
2. A bill of exchange is drawn by the creditor upon his debtor.
3. A bill of exchange can be drawn on any Person including a bank.
4.There are 3 parties to a bill of exchange.
5. A bill of exchange must be in WRITING.
6. Drawer and DRAWEE cannot be the same parties in case of a bill of exchange.
7. 3 days of grace are added in terms of the bill to calculate the due date.
8. A bill of exchange is called a B/P by one who is liable to pay it on the due date
9. INTEREST is payable by the debtor to the creditor when a bill is renewed.
10.The renewal of a bill implies that the OLD BILL must be first cancelled.
11. If a bill is not paid on its due date, it is said to be DISHONOUR OF A BILL.
12. A Promissory note is an instrument in writing containing an unconditional UNDERTAKING to pay
13. There are TWO parties in a promissory note.
14. A promissory note does not require ACCEPTANCE.
15.The person to whom the amount mentioned in the promissory note is payable is known as PROMISEE
16. A Person who endorses the promissory note in favour of another is known as ENDORSER.

1.Bills of Exchange are covered under
a. Indian contract Act-1887 b. Negotiable instruments Act-1881
c. Sale of Goods Act-1930 d. Companies Act-1956
Ans:- b. Negotiable instruments Act-1881
2. A bill of exchange is an acknowledgement of
a. Receipt b. Loan c. Debt d. Payment
Ans:- c. Debt
3. Who signs a bill of exchange at the time of making the bill?
a. Drawer b. Drawee c. Payee d. None of these
Ans:- a. Drawer
4. Drawee mean a person who
a. Makes the order b. Accepts the order c. Is a Payee d. All of these
Ans:- b. Accepts the order
5. Drawer means a person who
a. Makes the order b. Accepts the order c. Is a payee d. All of these
Ans:- a. Makes the order
6. The promissory note should be signed by the
a. Maker b. Drawee c. Payee d. None of these
Ans:- a. Maker
7. A promissory note does not require
a. Discounting b. Acceptance c. Noting d. All of these
Ans:- b. Acceptance
8. Noting charges are paid at the time of
a. Renewal of the bill b. Retirement of the bill
c. Dishonour of the bill d. None of the these
Ans:- c. Dishonour of the bill
9. The fee charged for getting the bill noted after dishonour is called
a. Discounting charge b. Noting charge c. Interest d. None of these
Ans:- b. Noting charge
10. Bills Receivable Account is
a. An expense account b. An asset account
c. A liability account d. A revenue account
Ans:- b. An asset account
11. When a bill of exchange is endorsed, the amount is payable to the
a. Original holder b. Bank c. Endorsee d. Notary public
Ans:- c. Endorsee
12.When a bill endorsed is dishonoured, which one of these accounts would be credited
by the drawee?
a. Bills Payable A/c b. Drawer’s A/c c. Bank A/c d. Bill Dishonoured A/c
Ans:- b. Drawer’s A/c

1. A bill of exchange must be in writing (TRUE)
2. A bill of exchange must be accepted by the payee. (FALSE)
3. There are two parties to a bill of exchange. (FALSE)
4. Bill of exchange is a legal document. (TRUE)
5. A bill of exchange is drawn by the creditor. (TRUE)
6. Bill of exchange cannot be endorsed to creditors. (FALSE)
7. Bill of exchange is an order for the payment. (TRUE)
8. A bill of exchange is drawn for all cash transactions. (FALSE)
9. Bill of exchange is written by debtor. (FALSE)
10. A bills payable on demand is called Time Bill. (FALSE)
11. The person to whom payment is to be made in a bill of exchange is called Payee. (TRUE)
12. A Negotiable Instrument does not require the signature of its maker. (FALSE)
13. While calculating date of maturity of every bill 3 days of grace are included. (TRUE)
14. Payment of the bill before maturity is called retiring. (TRUE)
15. Bill discounted is a contingent liability. (TRUE)
16. Promissory note is written by the debtor. (TRUE)
17. The hundi payable at sight is called Darshani hundi. (TRUE)
18. A Negotiable instrument is not freely transferable. (FALSE)
19. Stamping of promissory note is not mandatory. (FALSE)
20. The time of payment of a negotiable instrument need not be certain. (FALSE)

1. What is a bill of exchange?
ANS:- It 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.
2. State one feature of bill of exchange.
ANS:- It must be in writing.
3. Name any one party to a bill of exchange.
ANS:- Drawer
4. Give the meaning of maturity of a bill.
ANS:- The date on which a bill of exchange or a promissory note becomes due for payment are called ‘maturity
of a bill’.
5. What is a promissory Note?
ANS:- It is an instrument in writing containing an unconditional undertaking signed by the maker, to pay a
certain sum of money only to or to the order of a certain person, or to the bearer of the instrument.
6. State one feature of promissory note.
ANS:- It must be in writing.
7. Name any one party to a Promissory Note.
ANS:- Maker or Drawer or promisor
8. Write any one difference between Bills of Exchange and Promissory Note
ANS:- Bills of Exchange requires acceptance by the drawee or someone else on his behalf. Whereas Promissory
Note does not require any acceptance.
9. Who is a Drawer?
ANS:- Drawer is the maker of the bill of exchange.
10. Who is a Drawee?
ANS:- Drawee is the person upon whom the bill of exchange is drawn.
11. Who is a Payee?
ANS:- Payee is the person to whom the payment is to be made.
12. Who is a Promisor?
ANS:- Promisor is the person who makes or draws the promissory note to pay a certain
amount as specified in the promissory note
13. Who is a Promisee?
ANS:- Promisee is the person in whose favour the promissory note is drawn
14. Who is an Endorser?
ANS:- The person who transfer the value of the bill is called Endorser.
15. Who is an Endorsee?
ANS:- The person to whom value of the bill is transferred is called Endorsee.
16. Give the meaning of noting.
ANS:- Writing the statement on the dishonour of the bill by the notary public is known as Noting.
17. What is a protest?
ANS:- The formal certificate issued by the notary public certifying the dishonour of the bill is called Protest.
18. Give the meaning of accommodation of bill exchange.
ANS:-The bill of exchange is drawn and accepted without any consideration is called
accommodation of bill.
Chapter – 9--Financial Statements - I

1. What do you mean by Closing Entries ?
Ans:-It is the entry made at the end of the year for transferring the certain items to trading and profit and loss
account.
2. What is Capital Expenditure?
Ans:-It is an expenditure whose benefit is not exhausted in just one year.
3. Give two examples of Capital Expenditure.
Ans:-(i) purchase of Machinery (ii) Purchase of Land
4. Give the meaning of Gross Profit.
Ans:-The excess of sales over purchases and direct expenses is called gross profit.
5. State two basic objectives of preparing Financial Statements ?
Ans:- (a) To present a true and fair view of the financial performance of the business;
(b) To present a true and fair view of the financial position of the business;
6. Why do you prepare Trading and Profit and loss Account ?
Ans:- Trading and Profit and Loss account is prepared to determine the profit earned or loss sustained by the
business enterprise during the accounting period.
7. What do you mean by ‘Cost of goods sold’ ?
Ans:- All direct expenses incurred by a concern are called ‘Cost of goods sold’.
8. What is Capital Receipt ?
Ans:- If the receipts imply an obligation to return the money, these are capital receipts.
9. Give two examples of Capital Receipt.
Ans:- (i) Capital brought by the owner (ii)Loan from Bank
10. What is revenue receipt ?
Ans:- If a receipt does not incur an obligation to return the money or is not in the form of a sale of fixed asset, it
is termed as revenue receipt.
11. State any two distinctions between capital receipts and revenue receipts.
Ans:- (i)Capital receipts are receipts on account of capital items whereas revenue receipts
are receipts on account of revenue items.
(ii) Capital receipts are not items of income whereas revenue receipts are items of income.
12. State any two distinction between capital expenditure and revenue expenditure.
Ans:- (i) Capital expenditure will increase the value of net asset whereas revenue expenditure will decrease the
value of net asset.
(ii) The benefit of capital expenditure extends to more than one year. The benefit of revenue expenditure is
restricted to only one year.
13. What do you mean by Revenue Expenditure ?
Ans:- If the benefit of expenditure extends up to one accounting period, it is termed as
revenue expenditure.
14. What is meant by Marshalling of Assets and Liabilities in the Balance Sheet.
Ans:- Arrangement of assets and liabilities in a particular order is known as Marshalling.
15. State any two differences between Profit & Loss A/c and Balance Sheet.
Ans:- (i) A P & L A/C is an account of expenses and incomes. A Balance sheet is a
statement of assets and liabilities.
(ii) The primary objectives of a profit and loss account are to show the correct net profit or loss. The primary
objectives of a balance sheet are to show the true financial position.
16. What is Operating Profit ?
Ans:- It is the profit earned through the normal operations and activities of the business.
17. What is deferred revenue expenditure ?
Ans:- A heavy expenditure of revenue nature incurred for getting a benefit which extends to two or more years
is called deferred revenue expenditure.
18. What statements are mainly included in Financial Statements?
Ans:- 1. Trading and Profit and Loss Account (Income statement) 2. Balance Sheet
19. Give two examples for deferred revenue expenditure.
Ans:- (i) heavy advertisement expenditure (ii) Preliminary expenses
20. Give two examples for revenue expenditure.
Ans:- (i) Salary paid (ii) Purchase of goods
Chapter NO– 10--Financial Statements

A. Section-A: One Mark Questions:
1. Closing stock is valued at Cost or Market price whichever is less.
2. Trading Account is prepared to ascertain Gross Profit .
3. Profit and loss Account is disclose Net Profit .of the business.
4. Balance sheet shows Financial Position .of the business enterprise.
5. Assets-Capital = Liabilities.
6. Decreasing in the value of fixed assets is called Depreciation .
7. Bad debts recovered is recorded in P & L .Account.
8. Patent is a Intangible .Asset.
9. Profit on sale of fixed asset is known as Gain .
10. Provision for discount on debtors is calculated at a certain percentage on amount of Gross .debtors.
11. The expenses paid which are related to the next year are called Prepaid Expenses.
12. The expenses incurred but not paid upto the end of financial year are called as O/S Expenses

1. Closing stock is value of ……….
a) Cost price b) Market price
c) Sales price d) Cost price or Market price whichever is lower
Ans:- d) Cost price or Market price whichever is lower
2. Opening Stock appearing in the trail Balance will be shown in …….
a) Trading account b) Profit and Loss account
c) Balance sheet d) Trading A/c and also in Balance sheet
Ans:- a) Trading account
3. Stock appearing outside the trail balance will be shown in ….
a) Trading account b) Balance sheet
c) Trading A/c and Balance Sheet d) Profit and Loss account
Ans:- c) Trading A/c and Balance Sheet
4. Liabilities have ……… balance
a) Debit b) Credit c) Either debit or credit d) No balance
Ans:- b) Credit
5. Net Loss is ………… of the business
a ) A Liability b) An Asset c) An Expense d) An extraordinary loss
Ans:- b) An Asset
6. Capital is the difference between …………
a) Income and Expenses b) Sales and cost of goods sold
c) Assets and liabilities d) none of the above
Ans:- c) Assets and liabilities
7. Interest on capital is ………. for the business.
a) Revenue b) Expenses
c) Gain d) None of the above
Ans:- b) Expenses
8. Sales tax(GST) payable is a ……..
a) Current asset b) Capital account
c) Expenses account d) Liability account
Ans:- d) Liability account
9. Where do you show the Bad debts given in the Trail Balance at the time of preparation of Financial
Statements?
a) Trading A/c b) Profit and Loss A/c c) Balance Sheet d) None of the above
Ans:- b) Profit and Loss A/c
10.In which account do you show the depreciation given in the Trail Balance at the time of preparation of
Financial Statements?
a) Profit and Loss account b) Trading Account
c) Balance Sheet d) None of the above
Ans:- a) Profit and Loss account
11. Bank overdraft is shown as a …………
a) Liability b) Contingent c) Unsecured Loan d) Provision
Ans:- a) Liability
12.Full claim accepted by Insurance Company on the Loss of goods by fire is credited to ……A/c
a) Trading A/c b) Profit and Loss A/c
c) Insurance Company A/c d) None of the above
Ans:- a) Trading A/c
13. A surplus of revenue over its cost is known as ……. of the business
a) Capital b) Profit c) Asset d) None of the above
Ans:- b) Profit
14. Net profit is equal to …
a) Sales - cost of goods b) Sales - closingstock + purchases sold
c) Opening stock + purchases d) Gross profit-Administrative and selling expenses
Ans:- d) Gross profit-Administrative and selling expenses
15.Which one show the financial results of the concern for a period
a) Trading A/c b) Profit and Loss A/c c) Balance Sheet d) None of the above
Ans:- b) Profit and Loss A/c
16.Which of the following is not an intangible asset?
a) Account Receivable b) Trade mark c) Franchise d) Good will
Ans:-a) Account Receivable

1. Prepaid expenses are assets of the business. (TRUE)
2. Unearned income is the liability of the business. (FALSE)
3. Accrued income or income due but not received are two different things. (TRUE)
4. Unearned income means income received in advance. (FALSE)
5. Outstanding expenses account is a liability account. (TRUE)
6. Provision for discount on debtor is created only on good debtors. (TRUE)
7. Bad debts are recoverable from the debtors. (FALSE)
8. Depreciation is the decline in the value of fixed assets due to wear and tear, passage of time etc., (TRUE)
9. Interest on drawings is an expense for the business. (FALSE)
10. The statement of assets and liabilities is balance sheet. (TRUE)
11. Balance sheet discloses financial position of the business. (TRUE)
12. A person to whom the business owes is called Debtors. (FALSE)
13. Provision for discount on debtors can be estimated only after computing the provision for doubtful bebts.
(TRUE)
14. Balance sheet is a account. (FALSE)
15. Life insurance premium is treated as business expenses. (FALSE)

1. Give the meaning of adjustment?
ANS:- It means bringing into record all those items which have not been in the trial balance.
2. State any one adjustment?
ANS:- Closing stock
3. What is closing stock?
ANS:- Stock of goods at the end of the financial year are called closing stock.
4. What is outstanding expenses?
ANS:- Expenses relating current year not paid are called Outstanding expenses.
5. On which side of the balance sheet, Prepaid expenses are shown?
ANS:- Prepaid expenses are shown on the asset side of the balance sheet.
6.Give the meaning of prepaid expenses?
ANS:- Expenses relating to next accounting period paid during the current year are called Prepaid expense.
8. What is meant by an Accrued income?
ANS:- Income relating to current accounting period not received are called Accrued Income.
9. What is meant by Interest on capital?
ANS:- Interest payable on capital is called Interest on capital.
10. Give the meaning of Provision for doubtful debts?
ANS:- Provision made against debtors are called Provision for doubtful debts.
11. Write the meaning of Provision for discount on debtors?
ANS:- Provision made against debtors for discounts are called discount on debtors.
12. What is Bad debts?
ANS:- Debts which are not recoverable from debtors are called Bad Debts.
13. What is unearned income (Income received in advance)?
ANS:- Income relating to next accounting period received during the year are called unearned income.
14. How do you treat, Provision for discount on debtors given in adjustements while preparing Financial
statements?
ANS:- First it should be shown on the debit side of profit and loss A/C. Secondly it should be deducted from
debtors on the asset side of the balance sheet.
15. How will you treat accrued income given in adjustements while preparing financial statements?
ANS:- First it should be shown on the credit side of profit and loss A/C. Secondly it should be shown on the asset
side of the balance sheet.
16. What adjustment entry would you pass for depreciation?
ANS:-(i) For charging depreciation
Depreciation A/C Dr
To Asset A/C
(ii) For transferring depreciation to profit and loss A/C
Profit and Loss A/C Dr
To Depreciation A/C
17. How will you treat interest on capital in the financial statements?
ANS:- First it should be entered on the debit side of Profit and Loss A/C. Secondly It should be added to Capital
on the liabilities side of the balance sheet.
18. Give the adjustment entry for interest on drawings?
ANS:- First it should be entered on the credit side of Profit and Loss A/C. Secondly it should be deducted from
capital on the liabilities of the balance sheet.
19. How will you calculate commission payable to manager on profit before charging of such commission?
ANS:- Commission payable to manager = Net Profit before charging commission x 10/100
20. State any one example for Current Asset.
ANS:- Inventory(stock)
11. ACCOUNTS FROM INCOMPLETE RECORDS

1] TOTAL DEBTORS A/c is to be prepared to know the credit sales during the year.
2] TOTAL CREDITORS A/c is to be prepared to know the credit purchases during the Year.
3] Opening statement of affairs is to be prepared to find out OPENING CAPITAL
4] Drawings is to be ADDED to closing capital.
5] A statement of Assets & Liabilities prepared under incomplete records mechanism is called STATEMENT OF
AFFAIRS
6] Preparation of TRIAL BALANCE is not possible under incomplete records mechanism.
7] Incomplete records are popularly known as an TRIAL Entry system.
8] Only PERSONAL accounts are maintained along with Cash book under incomplete records.
9] If Closing capital is Rs.10,000, Drawings Rs. 5,000, and Additional Capital introduced is Rs. 3,000, then
Adjusted Closing Capital will be Rs.12000
10] Excess of Opening Capital over ADJUSTED CLOSING CAPOTAL represents Gross Loss Sustained during the
period.
11] Incomplete records are generally used by SMALL SHOPKEEPERS
12] Excess of Adjusted Closing Capital over OPENING CAPITAL represents Gross Profit for the year.

1] The opening capital is ascertained by preparing :
a] Cash book b] Creditors A/c
c] Debtors A/c d] Opening Statement of Affairs
ANS:- d] Opening Statement of Affairs
2] Incomplete records mechanism of book keeping is :
a] Scientific b] Unscientific c] Un systematic d] both (b) and (c)
ANS:- d] both (b) and (c
3] It is not possible to prepare ………… from accounts from incomplete records :
a] Receipts & Payments A/c b] Trial Balance
c] Balance Sheet d] Profit & Loss A/c
ANS:- b] Trial Balance
4] Incomplete records cannot be maintained by:
a] Joint stock company b] Partnership firms
c] Co-operative society d] All of the above
ANS:- d] All of the above
5] A statement of assets and liabilities prepared in accounts from incomplete records:
A] Balance sheet b] Cash flow statement
C] Fund flow statement d] Statement of affairs
ANS:- d] Statement of affairs
6] Which of the following represents the adjusted closing capital
a] Opening capital + Drawings - Additional capital
b] Closing capital + Drawings – Additional capital
c] Opening capital + Additional capital – Drawings
d] Closing capital + Additional Capital – Drawings
ANS:- b] Closing capital + Drawings – Additional capital
7] Credit purchases during the year is ascertained by preparing :-
a] Total Creditors A/c b] Opening Debtors A/c
c] Cash A/c d] Opening statement of affairs
ANS:- a] Total Creditors A/c
8] Credit sales during the year is ascertained by preparing:-
a] Cash Book b] Statement of affairs
c] Total Debtors A/c d] Total Creditors A/c
ANS:- c] Total Debtors A/c
9] Accounts from incomplete records is generally followed by :
a] Small business units b] Non trading concerns
c] Large business units d] None
ANS:- a] Small business units
10] Bad debts will be appeared in:
a] Total Debtors A/c b] Total Creditors A/c
c] Total Bills Receivable A/c d] Total Bills Payable A/c
ANS:- a] Total Debtors A/c

1] Incomplete records are also known an Single entry system. (True)
2] Statement of Affairs & Balance Sheet both are the same. (False)
3] Statement of affairs is prepared to know the capital on a particular date. (True)
4] Incomplete records mechanism is unscientific method. (True)
5] Total Debtors Account is prepared to know the Credit Sales. (True)
6] Total Creditors Account is prepared to know Credit Purchases. (True)
7] Trial balance may be prepared under Accounts from Incomplete Records. (False)
8] There is no difference between Accounts from Incomplete Records and Double Entry System. (False)
9] Incomplete records mechanism is suitable for small traders. (True)
10] A company may be followed incomplete records mechanism as it is simple and suitable method. (False)

1. Give the meaning of Incomplete Records.
ANS:- Any system of account which is not complete double entry system are called Incomplete Records.
2. State any one possible reason for keeping Incomplete Records.
ANS:- It is an inexpensive mode of maintaining records. (it is less costly)
3. Mention any one distinction between Statement of Affairs and Balance Sheet.
ANS:- Statement of Affairs are less reliable whereas Balance Sheet is more reliable.
4. What is Statement of affairs?
ANS:-It is like a balance sheet which shows assets and liabilities as on a given date.
5. What is the necessity of preparing Statement of Affairs?
ANS:- The objective of preparing a statement of affairs is to ascertain the amount of
capital account as on that date.
6. Mention any one feature of accounts from Incomplete Records.
ANS:- It is an unsystematic method of recording transactions.
7. What is Adjusted Closing Capital?
ANS:- Adjusted Closing Capital= closing capital + drawings- additional capital .
8. Can a Joint Stock Company maintains its books under incomplete records?
ANS:- No
9. Is it possible to prepare Trial Balance in incomplete records mechanism?
ANS:- No
10. Which are the accounts usually maintained in accounts from incomplete records?
ANS:- Personal Account
12.Applications of Computers in Accounting

1. The different parts of computerised accounting system are input, processing and OUTPUT.
2. PAYROLL accounting is used for calculation of wages, salaries, Bonus, etc.
3. Arithmetic and Logic Unit (ALU) unit housed in the central processing unit and perform the calculation at high
speed.
4. Language syntax is checked by software called as Language Processors
5. Central Processing Unit (CPU) is the brain of the computer.
6.The people who writes programmes to implement the data processing system design are called as
Programmer.
7.The functional components of computer system consists of Input unit, CPU and OUTPUT UNIT.

1. Which of the following is not a feature of computer?
a) Speed b) Accuracy c) Memory d) Intelligence
Ans:- d) Intelligence
2. Which of the following is not a basic component in an electronic digital Computer?
a) Control unit b) Cost Unit c) Input Unit d) Storage Unit
Ans:- b) Cost Unit
3. Which one of the following is not a type of software used in the computer Machines?
a) Input software b) Application software
c) Operating system d) Connectivity software
Ans:- a) Input software
4. Which of the following is not a human data entry device?
a) Key board b) Sound card c) Touch screen d) Mouse
Ans:- b) Sound card
5. Which of the following is not an input device used in digital computers?
a) Key board b) Mouse c) Modem d) Touch pad
Ans:- c) Modem
6. Computers do not play important role in:
a) Recording business transaction b) Pay roll accounting
c) Locating thefts of cash d) Production control
Ans:- c) Locating thefts of cash
7. Which of the following is not a basic function of accounting information system?
a) Software preparation b) Data manipulation
c) Documents preparation d) Data gathering
Ans:- a) Software preparation
1. Computer processes raw data and converts it into meaningful information. (TRUE)
2. Like human beings, a computer can feel tiredness and lack of concentration. (FALSE)
3. Computer systems are widely accepted due to their exceptional reliability. (TRUE)
4. Computers maintain the record of personal life of an employee in payroll accounting. (FALSE)
5. Control unit performs the calculations at high speed. (FALSE)
6. The different softwares are used for performing similar works. (FALSE)

1. State any one element of computer.
Ans:- Hardware
2. Write any one type of software.
Ans:- Application Software
3. Write any one components of computer.
Ans:- Input Unit,
4. Name any one feature of computer system.
Ans:- Accuracy
5. Expand CPU.
Ans:- Central Processing Unit (CPU)
6. Expand TPS.
Ans:- Transaction Processing Systems
7. Expand PIN.
Ans:- Personal Identification Number
8. Expand MIS.
Ans:- Management Information System
9. Expand AIS.
Ans:- Accounting Information System
10. State any one feature of computerised accounting system.
Ans:- Online input and storage of accounting data.
11. Write any one type of MIS report.
Ans:- Summary Reports
Section- B:Short Answer Questions for Two Marks:-
1. Give the meaning of computer.
Ans:- A computer is an electronic device, which is capable of performing a variety of operations as directed by a
set of instructions.
2. State any two elements of computer.
Ans:- (i) Hardware (ii) Software
3. State any two types of software.
Ans:- (i)Application Software (ii)System Software
4. State any two units of CPU.
Ans:- (i) Memory Unit (ii)Control Unit
5. State any two capabilities of computer system.
Ans:- (i)Speed (ii) Accuracy :
6. Write any two limitations of computer system.
Ans:- (i) Lack of Commonsense (ii)Lack of Decision-making
7. Write any two features of computerised accounting system.
Ans:- (i)Online input and storage of accounting data.
(ii) Grouping of accounts is done from the very beginning.
8. What is Management Information System (MIS)?
Ans:- A management information system (MIS) is a system that provides the information
necessary to take decisions and manage an organisation effectively.
9. What is Accounting Information System (AIS)?
Ans:- Accounting Information System (AIS) identifies, collects, processes, and
communicates economic information about an entity to a wide variety of users.
10. What do you mean by report?
Ans:- When the related information is summarised to meet a particular need, it is called as a report.
11. State any two essential features of an accounting report.
Ans:- (i)Accuracy (ii)Completeness
12. State any two MIS reports.
Ans:- (i)Summary Reports (ii)Demand Reports
13. Computerised Accounting System

1. Accounting softwares can be categorised into ready-to-use, tailor made and Customised softwares.
2. Cost of development, installation and maintenance is high in case of Tailored accounting software.
3.Database is implemented by using a database management system .
4.An integrated set of objects that constitute the report.
5.Ready-to-use accounting software is suited to organizations running small/conventional business.
6.The accounting software is generally tailored in large business Organisations.

1. Which of the following is not an advantage of computerised accounting?
a) Speed b) Storage capability c) Lesser cost d) Versatility
Ans:- c) Lesser cost
2. Which one of the following is not a drawback of computerised accounting?
a) Loss of data b) Fraud and embezzlement c) Less costly d) Regular training
Ans:- c) Less costly
3. Which one of the following is not an advantage of readymade software?
a) More reliable b) Economical
c) Ready to use features d) Easy to install
Ans:- a) More reliable
4. Which one of the following is not a disadvantage of tailor made software?
a) Higher development cost b) Complex interface
c) Dependence on specialised persons d) Lesser flexibility
Ans:- d) Lesser flexibility

1. The data content of financial transactions is stored in well designed database in computerised
accounting.( True)
2. Computerised accounting system offer on-line facility to store and process transaction
data. (True)
3. In manual accounting, concurrent posting in the ledger is not possible. (True)
4. In computerised accounting, the possibility of loss of data is quite remote.( False)
5. Many irrelevant accounting heads are available to the users in ready-to-use softwares.(False)
6. The development and maintenance cost is comparatively less in tailor made accounting softwares. (False)

1. State any one advantage of computerised accounting system.
Ans: Accuracy
2. Write any one limitation of computerised accounting system.
Ans: System Failure
3. State any one accounting packages.
Ans: Ready-to-Use
4. Write any one advantages of ready-to-use accounting software.
Ans: cost of installation is low.
5. Write any one limitation of ready-to-use accounting software.
Ans: Little scope of linking to other information systems.
6. Write any one advantages of customised accounting software.
Ans: Secrecy of data and software can be better maintained in customised software.
7. Write any one limitation of customised accounting software.
Ans: Cost of training is high.
8. Write any one advantages of tailored accounting software.
Ans: They offer high flexibility in terms of number of users.
9. Write any one limitation of tailored accounting software.
Ans: Cost of installation and maintenance is High
Section- B: No question in this chapter

Section- C: Six Marks Questions:-
1. Distinguish between a manual and computerised accounting system.
Ans:(i) Identifying : The identification of transactions, based on application of accounting principles is, common
to both manual and computerised accounting system.
(ii) Recording : The recording of financial transactions, in manual accounting system is through books of original
entries while the data content of such transactions is stored in a well-designed accounting database in
computerised accounting system.
(iii) Classification : In a manual accounting system, transactions recorded in the books of original entry are
further classified by posting into ledger accounts. This results in transaction data duplicity. In computerised
accounting, no such data duplication is made to cause classification of transactions.
(iv) Summarising : preparation of ledger accounts becomes a prerequisite for preparing the trial balance. The
generation of ledger accounts is not a necessary condition for producing trial balance in a computerised
accounting system.
(v) Financial Statements : In a manual system of accounting, the preparation of financial statements pre-
supposes the availability of trial balance. However, in computerised accounting, there is no such requirement.
(vi) Closing the Books: After the preparation of financial reports, the accountants make
preparations for the next accounting period. This is achieved by posting of closing and reversing journal entries.
In computerised accounting, there is year-end processing to create and store opening balances of accounts in
database.
2. Explain any six advantages of computerised accounting system.
Ans: (i)Speed : Accounting data is processed faster by using a computerised accounting system than it is
achieved through manual efforts.
(ii) Accuracy : The possibility of error is eliminated in a computerised accounting system because the primary
accounting data is entered once for all the subsequent usage and processes in preparing the accounting reports.
(iii) Reliability : Since computerised accounting system relies heavily on computers, they are relatively more
reliable than manual accounting systems.
(iv) Up-to-Date Information : The accounting records, in a computerised accounting system are updated
automatically as and when accounting data is entered and stored.
(v) Automated Document Production : Most of the computerised accounting systems have standardised, user
defined format of accounting reports that are generated automatically.
(vi) Quality Reports : The inbuilt checks and untouchable features of data handling facilitate hygienic and true
accounting reports that are highly objective and can be relied upon.
3. Explain any six limitations of computerised accounting system.
Ans:(i) Cost of Training : The sophisticated computerised accounting packages generally require specialised staff
personnel. As a result, a huge training costs are incurred
(ii) Staff Opposition : Whenever the accounting system is computerised, there is a significant degree of
resistance from the existing accounting staff.
(iii) Ill-effects on Health : The extensive use of computers systems may lead to development of various health
problems: bad backs, eyestrain, muscular pains, etc.
(iv) System Failure : The danger of the system crashing due to hardware failures and the subsequent loss of
work is a serious limitation of computerised accounting system.
(v) Inability to Check Unanticipated Errors : Since the computers lack capability to judge, they cannot detect
unanticipated errors as human beings commit.
(vi) Breaches of Security : Computer related crimes are difficult to detect as any alteration of data may go
unnoticed.
4. Explain any three advantages and three limitations of computerised accounting system.
Ans: Three advantages of computerised accounting system are as follows:-
(i)Speed : Accounting data is processed faster by using a computerised accounting system than it is achieved
through manual efforts.
(ii) Accuracy : The possibility of error is eliminated in a computerised accounting system because the primary
accounting data is entered once for all the subsequent usage and processes in preparing the accounting reports.
(iii) Reliability : Since computerised accounting system relies heavily on computers, they are relatively more
reliable than manual accounting systems.
Three disadvantages of computerised accounting system are as follows:-
(i) Cost of Training : The sophisticated computerised accounting packages generally require specialised staff
personnel. As a result, a huge training costs are incurred
(ii) Staff Opposition : Whenever the accounting system is computerised, there is a significant degree of
resistance from the existing accounting staff.
(iii) Ill-effects on Health : The extensive use of computers systems may lead to development of various health
problems: bad backs, eyestrain, muscular pains, etc.
5. Briefly explain various types of a/cing software along with 1 advantages and 1 limitations.
Ans: The accounting packages(software) are classified into the following categories :
(i)Ready to use (ii)Customised (iii)Tailored
(i)Ready to use:- Ready-to-Use accounting software is suited to organisations running
small/conventional business where the frequency or volume of accounting transactions
is very low.
Merits:- The cost of installation is generally low
Demerits:- these software offer little scope of linking to other information systems.
(ii)Customised:- Accounting software may be customised to meet the special requirement of the user.
Customised software is suited for large and medium businesses and can be linked to the other information
systems.
Merits:- Secrecy of data and software can be better maintained in customised software.
Demerits:- The cost of installation and maintenance is relatively high
(iii)Tailored:- The tailored software is designed to meet the specific requirements of the users and form an
important part of the organisational MIS. The accounting software is generally tailored in large business
organisations with multi users and geographically scattered locations.
Merits:- Expected Level of secrecy is relatively high.
Demerits:- Cost of installation and maintenance is high.
6. Write any six differences between ready-to-use and tailored accounting software.
Ans: Six differences between ready-to-use and tailored accounting software are as follows:-
Basis Ready to use Tailored
1.Nature of business Small, conventional business Large, typical business
2.Cost of installation and maintance low high
3.Expected level of secrecy low relatively high
4.Number of users and limited unlimited
interface
5. adaptability high specific
6.Training requirements low high
Section-E: Practical Oriented Question for Five Marks:-

1. Draw a diagram of Accounting Process.
The Accounting Process
Accounting links decision

makers with economic
Economic events activities and with the Communicating
results of their decisions accounting
information
Decision makers
(Internal and external
Actions ( decisions)
users)
2. Write the Accounting Equation and find out the missing figures
SL NO Assets (in Rs) Liabilities(in Rs) Capital (in Rs)
1 ? 450000 250000
2 650000 150000 ?
3 575000 ? 275000
Ans : Accounting Equation is Assets = Liabilites + Capital

1) 700000= 450000 + 250000
2) 650000= 150000 + 500000
3) 575000 = 300000 + 275000
3. Pass Journal entries from Ledger accounts with five entries
Mohan Account
Dr.
Cr.
Date Particulars J.F Rs Date Particulars J. Rs
F
2018 Sales 40,00 2018 3 Purchases 9,000
1 Purchase 0 May Sales Returns 5,000
May Returns 12 Cash 2,000
5 7,200
22
Ans. Journal Entries

Date Particulars L. Debit Credit
F Rs Rs
2018 Mohan A/c 40,000
May 1 Dr. 40,000
To Sales A/c
(Goods sold to Mohan on credit)
“ 3 Purchases A/c 9,000
Dr. 9,000
To Mohan A/c
(Goods purchased from Mohan on
credit)
“ 5 Mohan A/c 7,200
Dr. 7,200
To Purchases Returns A/c
(Goods returned to Mohan)
“ Sales Returns A/c 5,000
12 Dr. 5,000
To Mohan A/c
(Goods return by Mohan)
“ 22 Cash A/c 2,000
Dr. 1,000
To Mohan A/c
(Cash received from Mohan on account)
4. Draw the component chart of GST
GST
Intra-State Inter-State
Movement Movement
CGST SGST IGST
GST levied by GST levied by GST levied by the Central and

the Central the State States Concurrently
Centre State
5. Draft a Specimen of Debit voucher
Debit
Voucher
Voucher No: Name of
Credit A/c : Firm:
Amount :
Debit Accounts
Amount
Sl. No. Code Account Name Narration
Rs
Authorised By Prepared By:
6. Draft a Specimen of Credit voucher
Credit
Voucher
Voucher No: Name of
Debit A/c : Firm:
Amount :
Credit Accounts
Amount
Sl. No. Code Account Name Narration
Rs
Authorised By Prepared By:

7. Draw a Specimen of cheque
Date......................
PAY.............................................................................................................................................................
................................................................................................................................................OR BEARER
RUPEES.................................................................................................................... Rs.
................................................................................................................................
L.F INTLS
L.F INTLS
A/c No.
STATE BANK OF INDIA
NCERT NEW DELHI – 110016
“’659976”’ 11000 2078: 10
8. Draw five types of crossing on the cheque

Ans:
9. Prepare a trail balance with 10 imaginary figures

Ans:
Sl No. Name of accounts Debit Rs Credit Rs
01 Capital 30000
02 Drawings 5000
03 Machinery 8000
04 Debtors 8000
05 Sales 20000
06 Cash 10000
07 Wages 4000
08 Depreciation 5000
09 Purchases 15000
10 Bank Loan 5000
55000 55000
10. Prepare Machinary A/c for 2 years with imaginary figures under SLM
Dr Machinary A/c Cr
Amount Amount
Date Particalars Date Particalars
Rs Rs
1-4- Bank A/c 10000 31-3- Depreciation 1000
17 18 A/c
(10000 X 10%) 9000
31-3- Balance b/d
18
10000 10000
1-4- Balance b/d 9000 31-3- Depreciation 1000
18 19 A/c
(10000 X 10%) 8000
31-3- Balance b/d
19
9000 9000
1-4- Balance b/d 8000
19
11. Prepare Machinary A/c for 2 years with imaginary figures under WDVM
Dr Machinary A/c Cr
Amount Amount
Date Particalars Date Particalars
Rs Rs
1-4- Bank A/c 10000 31-3- Depreciation 1000
17 18 A/c
(10000 X 10%) 9000
31-3- Balance b/d
18
10000 10000
1-4- Balance b/d 9000 31-3- Depreciation 900
18 19 A/c
(9000 X 10%) 8100
31-3- Balance b/d
19
9000 9000
1-4- Balance b/d 8100
19
12. Prepare Trading A/c with 5 imaginary figures

Dr Trading A/c for the year ending ........ Cr
Particalars Amount Rs Particalars Amount Rs
Opening stock 15,000 Sales 50000
Purchases ..... 12,000
Wages ..... 3,000
Carriage inwards 5,000
Gross profit c/d 15,000
50000 50000
Gross profit b/d 15000
13. Prepare Balance sheet with 5 imaginary figures
Balance sheet as on ...................
Liabilities Amount Rs Assets Amount Rs
Capital 50000 Building 20000
Creditors 5000 Machinary 15000
Cash 10000
Debtors 10000
55000 55000
14. Prepare Opening / Closing Statement of Affairs with 5 imaginary figures

Opening / Closing Statement of Affairs as on ..............
Liabilities Amount Rs Assets Amount Rs
Creditors 5000 Building 20000
Opening or closing 50000 Machinary 15000
capital (B/F) Cash 10000
Debtors 10000
55000 55000
15. Draw a Block Diagramme of Main Components of computer
Secondary storage
Input Outpu
t
Input Outpu
t
Memory Unit
ALU Control Unit

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4. ¨ÁåAPÉÆAzÀgÀ UÁæºÀPÀgÁV ¤ÃªÀÅ ¥ÀqÉAiÀÄÄwÛgÀÄªÀ AiÀiÁªÀÅzÁzÀgÀÆ LzÀÄ E-¨ÁåAQAUï ¸ÉÃªÉUÀ¼À£ÀÄß ¥ÀnÖ ªÀiÁr.
G:- EFT, ATM, PoS, EDI (Electronic Data Interchange), Debit Card and Credit Card, Digital Cash,
RTGS, etc.
5. D£ï¯ÉÊ£ï UÁæºÀPÀgÁV, ¤ªÀÄä UÀtPÀAiÀÄAvÀæzÉÆ¼ÀUÉ «zÀÄå£Áä£ÀªÁV «¯ÉÃªÁj ¥ÀqÉAiÀÄ§ºÀÄzÁzÀ AiÀiÁªÀÅzÁzÀgÀÆ LzÀÄ ªÀiÁ»w-¸ÁAzÀæ GvÀà£ÀßUÀ¼À£ÀÄß
w½¹.
G:- D£ï¯ÉÊ£ï UÁæºÀPÀgÁV, UÀtPÀAiÀÄAvÀæzÉÆ¼ÀUÉ «zÀÄå£Áä£ÀªÁV «¯ÉÃªÁj ¥ÀqÉAiÀÄ§ºÀÄzÁzÀ LzÀÄ ªÀiÁ»w- ¸ÁAzÀæ GvÀà£ÀßUÀ¼ÀÄ AiÀiÁªÀÅzÉAzÀgÉ,
(1) vÀAvÁæA±ÀUÀ¼ÀÄ (2) ¹¤ªÀiÁ «ÃPÀëuÉ (3) E-¥ÀÄ¸ÀÛPÀUÀ¼ÀÄ (4) E-¢£À¥ÀwæPÉUÀ¼ÀÄ (5) ¸ÀAVÃvÀ CxÀªÁ ºÁqÀÄUÀ¼À£ÀÄß PÉÃ¼ÀÄªÀÅzÀÄ
Software, Movies, music, e-books, e-journals, e-newspapers, games, study materials, tutorials
6. ¥Àj¸ÀgÀ ¸ÀAgÀPÀëuÉAiÀÄ §UÉUÉ PÁ¼Àf ºÉÆA¢gÀÄªÀ M§â ªÀåªÀºÁgÀ¸ÀÜgÁV, ¥Àj¸ÀgÀ ªÀiÁ°£ÀåªÀ£ÀÄß ¤AiÀÄAwæ¸À®Ä AiÀiÁªÀÅzÁzÀgÀÆ LzÀÄ PÀæªÀÄUÀ¼À£ÀÄß ¸ÀÆa¹.
G:- 1) ¥Àj¸ÀgÀ ¸ÀAgÀPÀëuÉ ªÀÄvÀÄÛ ªÀiÁ°£Àå ¤AiÀÄAvÀætzÀ PÉ®¸ÀzÀ ¸ÀA¸ÀÌøwAiÀÄ£ÀÄß ¤«Äð¹, ¤ªÀð»¸À®Ä ªÀÄvÀÄÛ C©üªÀÈ¢Þ¥Àr¸À®Ä G£ÀßvÀ ºÀAvÀzÀ ¤ªÀðºÀuÉAiÀÄ
¸ÀàμÀÖ §zÀÞvÉ.
2) ¸ÀA¸ÉÜAiÀÄ J¯Áè «¨sÁUÀUÀ¼ÀÄ ªÀÄvÀÄÛ £ËPÀgÀjAzÀ ¥Àj¸ÀgÀ ¸ÀAgÀPÀëuÉAiÀÄ §zÀÞvÉAiÀÄ ºÀAaPÉ SÁvÀj¥Àr¸ÀÄªÀÅzÀÄ.
3) ªÀiÁ°£Àå ¤AiÀÄAvÀætzÀ GzÉÝÃ±PÀ ÁÌV GvÛªÀ ÀÄ UÀÄtªÀÄlÖzÀ PÀZÁÑ ¸ÁªÀÄVæUÀ¼ À RjÃ¢, ¸ÀÄzsÁjvÀ vAÀ vÀæeÁÕ£Àz À §¼ÀPÉ, ªÉÊeÁÕ¤PÀ vÁådå ¤ªÀðºÀuÁ
«zsÁ£ÀUÀ¼ÀÄ ªÀÄvÀÄÛ £ËPÀgÀgÀ PË±À®å C©üªÀÈ¢ÞAiÀÄ°è ¸ÀàμÀÖ ¤ÃwUÀ¼ÀÄ ªÀÄvÀÄÛ PÁAiÀÄðPÀæªÀÄUÀ¼À C©üªÀÈ¢Þ.
4) ªÀiÁ°£Àå ¤AiÀÄAvÀætPÉÌ ¸ÀgÀPÁgÀ eÁjUÉ vÀAzÀ PÁ£ÀÆ£ÀÄ ªÀÄvÀÄÛ ¤AiÀÄªÀÄUÀ¼À ¥Á®£É.
5) C¥ÁAiÀÄPÁj ªÀ¸ÀÄÛUÀ¼À ¤ªÀðºÀuÉ, PÀ®Ä¶vÀ PÉgÉUÀ¼À ¸ÀéZÀÒvÉ, ªÀÈPÀë £ÉqÀÄ«PÉ ªÀÄvÀÄÛ CgÀtå£Á±ÀzÀ vÀqÉAiÀÄÄ«PÉ ªÀÄÄAvÁzÀ ¸ÀgÀPÁgÀzÀ PÁAiÀÄðPæªÀÄUÀ¼À°è
¥Á¯ÉÆÎ¼ÀÄî«PÉ.
7. M§â ¥ÀæªÀvÀðPÀgÁV, PÀÆqÀÄ §AqÀªÁ¼À PÀA¥À¤AiÀÄ £ÉÆÃAzÀtÂUÁV vÀAiÀiÁj¸À¨ÉÃPÁzÀ LzÀÄ ªÀÄÄRå zÁR¯ÉUÀ¼À£ÀÄß w½¹.
G:- M§â ¥ÀæªÀvÀðPÀgÁV, PÀÆqÀÄ §AqÀªÁ¼À PÀA¥À¤AiÀÄ £ÉÆÃAzÀtÂUÁV vÀAiÀiÁj¸À¨ÉÃPÁzÀ LzÀÄ ªÀÄÄRå zÁR¯ÉUÀ¼ÀÄ:-
1.¸ÀAWÀzÀ ªÀÄ£À« ¥ÀvÀæ 2.PÀlÖ¼É ¥ÀvÀæ 3.AiÉÆÃfvÀ ¤zÉðÃ±ÀPÀgÀ ¸ÀªÀÄäwAiÀÄ PÀgÁgÀÄ ¥ÀvÀæ
4.±Á¸À£À§zÀÞ WÉÆÃμÀuÁ ¥ÀvÀæ 5. £ÉÆÃAzÀtÂ ±ÀÄ®Ì ¥ÁªÀw¹zÀ gÀ²Ã¢.
8. MAzÀÄ ªÀåªÀºÁgÀ ¸ÀA¸ÉÜUÉ ®¨sÀå«gÀÄªÀ ºÀtPÁ¹£À AiÀiÁªÀÅzÁzÀgÀÆ ªÀÄÄRåªÁzÀ LzÀÄ ªÀÄÆ®UÀ¼À£ÀÄß ¸ÀÆa¹.
G;- MAzÀÄ ªÀåªÀºÁgÀ ¸ÀA¸ÉÜUÉ ®¨sÀå«gÀÄªÀ ºÀtPÁ¹£À ªÀÄÄRåªÁzÀ LzÀÄ ªÀÄÆ®UÀ¼ÀÄ AiÀiÁªÀÅzÉAzÀgÉ:-
1. ±ÉÃgÀÄUÀ¼ÀÄ 2. ¸Á® ¥ÀvÀæUÀ¼ÀÄ 3. G½¹PÉÆAqÀUÀ½PÉ 4. ªÁå¥ÁjÃ ¸Á®
5. ªÁtÂdå ¨ÁåAPÀÄUÀ½AzÀ ¸Á® 6. ¥sÁåPÀÖjAUÀï 7. UÀÄwÛUÉAiÀÄ°è ºÀtªÉÇzÀV¸ÀÄªÀÅzÀÄ 8. ¸ÁªÀðd¤PÀ oÉÃªÀtÂUÀ¼ÀÄ
9. ¨sÁgÀvÀzÀ°è ¸ÀtÚ ªÀåªÀºÁgÀªÀ£ÀÄß ¨ÉA§°¸ÀÄªÀ AiÀiÁªÀÅzÁzÀgÀÆ LzÀÄ ¸ÀA¸ÉÜUÀ¼À ¥ÀnÖAiÀÄ£ÀÄß ¤Ãr.

G:-
(a) NABARD-National Bank for Agriculture and Rural Development
(b) RSBDC-Rural Small Business Development Centre
(c) NSIC-National Small Industries Corporation
(d) RWED-Rural and Women Entrepreneurship Development
(e) SFURTI-Scheme of Fund for Regeneration of Traditional Industries
(f) DICS- District Industries Centres
10. M§â UÁæºÀPÀgÁV, ¤ÃªÀÅ ±Á¦AUï ªÀiÁqÀ¨ÉÃPÉAzÀÄ §AiÀÄ¸ÀÄªÀ zÉÆqÀØ ¥ÀæªÀiÁtzÀ ¹ÜgÀ a®ègÉ CAUÀrUÀ¼À ¥ÀæPÁgÀUÀ¼À£ÀÄß ºÉ¸Àj¹.
G:- zÉÆqÀØ ¥ÀæªÀiÁtzÀ ¹ÜgÀ a®ègÉ CAUÀrUÀ¼À ¥ÀæPÁgÀUÀ¼ÀÄ:-
1. E¯ÁSÁ / «¨sÁVÃAiÀÄ ªÀÄ½UÉUÀ¼ÀÄ 2. ¸ÀgÀ¥À½ CAUÀrUÀ¼ÀÄ / §ºÀÄ±ÁSÁ CAUÀrUÀ¼ÀÄ 3. CAZÉ DzÉÃ±ÀzÀ CAUÀrUÀ¼ÀÄ
4. §¼ÀPÉzÁgÀgÀ ¸ÀºÀPÁgÀ CAUÀrUÀ¼ÀÄ 5. ±ÀÈAUÀ ªÀiÁgÀÄPÀmÉÖUÀ¼ÀÄ
11. CAvÀgÀgÁ¶ÖçÃAiÀÄ ªÀåªÀºÁgÀªÀ£ÀÄß ªÀiÁqÀ®Ä DPÁAQëUÀ¼ÁVgÀÄªÀ ¤ÃªÀÅ, CAvÀgÀgÁ¶ÖçÃAiÀÄ ªÀåªÀºÁgÀªÀ£ÀÄß ¥ÀæªÉÃ²¸ÀÄªÀ AiÀiÁªÀ ¥ÀæPÁgÀUÀ¼À£ÀÄß £ÉÆÃqÀÄwÛÃj?
G:-CAvÀgÀgÁ¶ÖçÃAiÀÄ ªÀåªÀºÁgÀzÀ°è ¥ÀæªÉÃ²¸ÀÄªÀ PÀæªÀÄUÀ¼ÀÄ
1 .gÀ¥sÀÄÛ ªÀÄvÀÄÛ DªÀÄzÀÄ/¤AiÀiÁðvÀ ªÀÄvÀÄÛ DAiÀiÁvÀ 2. M¥ÀàAzÀ/UÀÄwÛUÉ GvÁàzÀ£É
3. ¥ÀgÀªÁ£ÀV ¤ÃqÀÄªÀÅzÀÄ ªÀÄvÀÄÛ «±ÉÃμÁ¢üPÁgÀ ¤ÃqÀÄªÀÅzÀÄ 4. dAnG¢ÝªÉÄUÀ¼ÀÄ
5. ¥ÀÆtðªÀiÁ°ÃPÀvÀézÀ ¸ÀºÁAiÀÄPÀ PÀA¥À¤UÀ¼ÀÄ

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Chapter - 1

II: Multiple Choice Questions:-

III: True or False:-

IV: Very Short Answer Questions:-

Section-B:Short Answer Questions for Two Marks:-

10. Distinguish between profit and gain

III: True or False:-

IV: Very Short Answer Questions:-

III: True or False:-

IV: Very Short Answer Questions:-

Section-B:Short Answer Questions for Two Marks:-

17. Give the specimen of journal

Meaning It refers to the documents in When source document is considered as

II: Multiple Choice Questions:-

III: True or False:-

IV: Very Short Answer Questions:-

Section-B: Short Answer Questions for Two Marks:-

II: Multiple Choice Questions:-

III: True or False:-

IV: Very Short Answer Questions:-

Section-B:Short Answer Questions for Two marks:-

10. What is Provision ?

II: Multiple Choice Questions:-

III: True or False:-

IV: Very Short Answer Questions:-

Chapter – 9--Financial Statements - I

Chapter NO– 10--Financial Statements

II: Multiple Choice Questions:-

III: True or False:-

IV: Very Short Answer Questions:-

11. ACCOUNTS FROM INCOMPLETE RECORDS

II: Multiple Choice Questions:-

III: True or False:-

IV: Very Short Answer Questions:-

12.Applications of Computers in Accounting

II: Multiple Choice Questions:-

IV: Very Short Answer Questions:-

13. Computerised Accounting System

II: Multiple Choice Questions:-

III: True or False:-

IV: Very Short Answer Questions:-

Section- B: No question in this chapter

Section-E: Practical Oriented Question for Five Marks:-

The Accounting Process

Accounting links decision

Ans : Accounting Equation is Assets = Liabilites + Capital

Ans. Journal Entries

CGST SGST IGST

GST levied by GST levied by GST levied by the Central and

Authorised By Prepared By:

6. Draft a Specimen of Credit voucher

Authorised By Prepared By:

STATE BANK OF INDIA

NCERT NEW DELHI – 110016

“’659976”’ 11000 2078: 10

8. Draw five types of crossing on the cheque

9. Prepare a trail balance with 10 imaginary figures

12. Prepare Trading A/c with 5 imaginary figures

14. Prepare Opening / Closing Statement of Affairs with 5 imaginary figures