Double entry accounting requires that:

1

(a)

All transactions that create debits to asset accounts must create credits to liability or capital accounts;

(b)

A transaction that requires a debit to a liability account require a credit to an asset account;

(c)

Every transaction must be recorded with equal debits equal total credits.

The ledger folio column of journal is used to :

1

(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

The journal entry to record the sale of services on credit should include:

1

(a)

Debit to debtors and credit to capital.

(b)

Debit to cash and Credit to debtors.

(c)

Debit to fees income and Credit to debtors.

(d)

Debit to debtors and Credit to fees income.

The journal entry to record purchase of equipment for Rs.2,00,000 cash and a balance of Rs. 8,00,000 due in 30 days include

1

(a)

Debit equipment for Rs.2,00,000 and Credit cash 2,00,000

(b)

Debit equipment for Rs.10,00,000 and Credit Rs.2,00,000 and creditors Rs.8,00,00.

(c)

Debit equipment Rs.2,00,000 and Credit debtors Rs.8,00,000

(d)

Debit equipment Rs.10,00,000 and Credit cash Rs.10,00,000

When a entry is made in journal

1

(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

Issued a cheque for Rs.8,000 to pay rent. The account to be debited is _______

1

(a)

Rent

Collected Rs.35,000 from debtors. The account to be credited is ________

1

(a)

 Debtors

Purchased office stationary for Rs.18,000.The account to be credited is _______

1

(a)

Cash

Purchased new machine for Rs.1,170,000 and issued cheque for the same. The account to be debited is ___________

1

(a)

Machine

Issued cheque for Rs.70,000 to payoff on of the creditors. The account to be debited is _________

1

(a)

Creditors

Name the two types of vouchers. (Main Classification)

1

(a)

(i) Debit vouchers
(ii) Credit vouchers

Define source documents.

1

(a)

Source documents may be defined as the documents which provide evidence of the transaction.

What is the role of source documents?

1

(a)

Source documents facilitate the identification of business transactions to be recorded in the books of accounts.

What is meant by a voucher?

1

(a)

A voucher means a written evidence of a transaction that has taken place.

Give two examples of a voucher

1

(a)

(i) Invoice
(ii) Cash memo

What is a source document?

3

(a)

List any three source documents.

3

(a)

Differentiate between source documents and vouchers

3

(a)

What is a cash memo?

3

(a)

What is an invoice?

3

(a)

Mohit has following transactions. Prepare Accounting Equation:

	Particulars	Rs
(i)	Business started with cash	1,75,000
(ii)	Purchased goods from Rohit	50,000
(iii)	Sold goods on credit to Manish (costing 17,500)	20,000
(iv)	Purchased furniture for office use	10,000
(v)	Cash paid to Rohit in full settlement	48,000
(vi)	Cash received from Manish	20,000

5

(a)

The following transactions took place in the business of Mis Ram Furniture:
(i) Bought furniture for resale from Mis Amit Furniture for cash Rs.5,000
(ii) Sold goods to Ajay Rs.8,000.
Prepare accounting vouchers for recording the above transactions.

5

(a)

Record journal entries for the following transactions in the books of Anudeep of Delhi:
(i) Bought good Rs.2,00,000 from Kanta of Delhi (CGST @ 9% SGST @9%)
(ii) Bought good Rs.1,00,000 for cash from Rajasthan (IGST @ 12%)
(ill) Sold goods Rs.1,50,000 to Sudhir of Punjab (IGST @ 18%)
(iv) Paid for Railway Transport Rs.10,000 (CGST @ 5%, SGST @ 9%)
(v) Sold goods Rs.1,20,000 to Sidhu of Delhi (CGST @9%, SGST @9%)
(vi) Bought Air-condition for office use Rs.60,000 (CGST @9%, SGST @9%)
(vii) Sold goods 1,50,000 for cash to Suntil to Uttar Pradesh (IGST 18%)
(viii) Paid for Broadband services Rs.4,000 (CGST @9%, SGST @O%)
(ix) Bought good Rs.50,000 from Rajesh. Delhi (CGST @ 9% SGST @9%)

5

(a)