Define accounting.

What is drawings?

Due to a labour strike, in a factory the production had to stop for a week. The accountant estimated the loss of production and likely loss of profit and recorded it in the books of accounts. Is the Accountant correct?

What is cost concept

What is meant by journalising?

Correct the following entries wherever you think:
Paid Carriage:
Carriage A/c Dr.
To Cash A/c

Do all the business units engage in credit transaction?

What is credit balance?

Does debit always mean increase and credit always mean decrease?

Define Trial balance.

It is correct to say that Purchases book as a record prepared from the invoices received from suppliers?

What is three column cash book?

Bank column of the cash book can have credit balance. Why?

A cashier finds it difficult to maintain record of large volume of cash payments, ranging from Rs. 5 to Rs. 10,00,000. Can you suggest a way to reduce his work burden?

Who prepares a bank statement?

Rectify the following errors before the preparation of trial balance:
(a) Returns outward book was undercast by Rs.2,000
(b) Returns inward book total was taken as Rs.15,000 instead of Rs.14,000
(c) The total of the purchases account was carried forward Rs.100 less

Is it necessary that a suspense account will balance off after rectification of the errors detected by the accountant? If not, then what happens to the balance still remaining in suspense account?

An asset is purchased for Rs. 50,000. The rate of depreciation is 15% p.a. Calculate the annual depreciation for the first two years under diminishing balance method.

Calculate the rateof depreciation under the straight line method using the following purchase a second- hand machine for Rs. 96,000, spent Rs. 24,000 on its carriage, repairs and installation. Estimated useful life of machine is 4 years with residual value Rs. 72,000

Classify the following expenses as capital or revenue.
i) The sum of Rs.3,200 has been spent on a machine as follows:
a) Rs.2,000 for additions to double the output.
b) Rs.1,200 for repairs necessitated by negligence.
ii) Overhauling expenses of Rs.25,000 for the engine of a motor car to get better fuel efficiency.

Classify as capital and revenue.
(i) Cost of maintenance of building.
(ii) Investments costing Rs.40,000 were purchased a few years back, were sold for Rs.50,000.
(iii) Annual white washing charges amounted to Rs.1,000.

From the following balances taken from the books of Victor, prepare trading account for the year ended December 31, 2017:

Particulars	Rs	Particulars	Rs
Adjusted purchases	80,000	Closing stock	7,000
Sales	90,000	Carriage inwards	3,000
Royalty on purchases of goods	4,000	Import duty on purchases of goods	6,000
Octroi on purchase of goods	2,000	Dock charges on purchases	5,000
Cost of goods manufactured	5,000

Give adjusting entry for depreciation at 10% p.a. on machinery of Rs.25,000.

Name any two accounting packages.

Mention any two features of CAS.