Which one of the following is not a main objective of Accounting?

(a)

Systematic recording of transactions

(b)

Ascertainment of the profitability of the business

(c)

Ascertainment of the Financial position of the business

(d)

Solving tax disputes with tax authorities

_______________involves recording of transactions and events which are financial in nature.

(a)

Financial Accounting

(b)

Cost Accounting

(c)

Management Accounting

(d)

Human Resource Accounting

GAAPs are:

(a)

Generally Accepted Accounting Policies

(b)

Generally Accepted Accounting Principles

(c)

Generally Accepted Accounting Provisions

(d)

None of these

The dual aspect concept is the basis for ______________

(a)

single entry system

(b)

double entry system

(c)

book keeping

(d)

all the above

Bad debts entry is passed in__________.

(a)

Sales Book

(b)

Cash Book

(c)

Journal Book

(d)

None of these above

Main objective of preparing ledger account is to 

(a)

Ascertain the financial position

(b)

Ascertain the profit or loss

(c)

Ascertain the profit or loss and the financial position

(d)

Know the balance of each ledger account

While preparing the trial balance, the accountant finds that the total of the credit column is short by Rs.200. This difference will be

(a)

Debited to suspense account

(b)

Credited to suspense account

(c)

Adjusted to any of the debit balance

(d)

Adjusted to any of the credit balance

The total of the sales book is posted periodically to the credit of ____  

(a)

Sales account

(b)

Cash account

(c)

Purchases account

(d)

Journal proper

___________is the statement prepared by the seller of goods.

(a)

Voucher

(b)

Receipt

(c)

Invoice

(d)

Ledger

The cash book records____.

(a)

All cash receipts

(b)

All cash payments

(c)

Both (a) and (b)

(d)

All credit transactions

R.N. expands for____

(a)

Receipts number

(b)

Roll number

(c)

Route number

(d)

Rank number

Balance as per cash book is Rs. 2,000. Bank charge of Rs. 50 debited by the bank is not yet shown in the cash book. What is the bank statement balance now?

(a)

Rs. 1,950 credit balance

(b)

Rs. 1,950 debit balance

(c)

Rs. 2,050 debit balance

(d)

Rs. 2,050 credit balance

A transaction not recorded at all is known as an error of _______.

(a)

Principle

(b)

Complete omission

(c)

Partial omission

(d)

Duplication

Purchase of office furniture Rs. 4,800 has been debited to general expense account which error is it?

(a)

Error of commission

(b)

Error of principle

(c)

Compensating error

(d)

None of these

Which method shall be efficient, if repairs and maintenance cost of an asset increases as it grows older.

(a)

Straight line method

(b)

Reducing balance method

(c)

Sinking fund method

(d)

Annuity method

Loss on sale of a fixed asset will appear on the _____________

(a)

Credit side of depreciation account

(b)

Debit side of fixed asset account

(c)

Credit side of fixed asset account

(d)

Debit side of depreciation account

Expenses on advertisement will be classified under _________

(a)

Capital expenditure

(b)

Revenue expenditure

(c)

Deferred revenue expenditure

(d)

Capital receipt

Carriage inwards will be shown _______.

(a)

In the trading account

(b)

In the profit and loss account

(c)

On the liabilities side

(d)

On the assets side

A prepayment of insurance premium will appear in ______.

(a)

The trading account on the debit side

(b)

The profit and loss account on the credit side

(c)

The balance sheet on the assets side

(d)

The balance sheet on the liabilities side

______ earned during the period must be compared with the expenses incurred during the period.

(a)

Incomes

(b)

Revenues

(c)

Profit

(d)

Loss

What is liability?

What is Cheque?

What is meant by posting?

What is an invoice?

Give the format of 'Single column cash book'

On 31^st, December 2017, Magesh received a bank statement from his bank, which showed a credit balance of Rs.19,700. He instructed Dinesh to check the statement with the cash book. On comparing both, Dinesh found that the cash book showed a balance of Rs. 14,500. He was puzzled.

The following errors were located after the preparation of trial balance. Pass journal entries to rectify them. Assume that there exists a suspense account.
(a) The total of sales book was undercast by Rs.350.
(b) The total of the discount column on the debit side of cash book Rs.420 was not posted.
(c) The total of one page of the purchases book of Rs.5,353 was carried forward to the next page as Rs.5,533.
(d) Salaries Rs.2,400 was posted as Rs.24,000.
(e) Purchase of goods from Sembiyanmadevi on credit for Rs.180 was posted to her account as Rs.1,800

What is written down value method?

State whether the following are capital or revenue items.
i. Rs.5,000 spent towards additions to buildings.
ii. Second-hand motor car purchased for Rs.30,000 and paid Rs.2,000 as repairs immediately.
iii. Rs.10,000 was spent on painting the new factory.
iv. Freight and cartage on the new machine Rs.150, erection charges Rs.200.
v. Rs.150 spent on repairs before using a second hand car purchased recently.

Compute cost of goods sold from the following information:

Particulars	Rs
Opening stock	8,000
Purchases	60,000
Direct expenses	5,000
Indirect expenses	6,000
Closing stock	9,000

Explain the external users of accounting.

Write a brief note on Accounting Standards.

Fill in the missing information in the following Journal Entries.

Date	Particulars		L.F`	Debit Rs	Credit Rs
i)	................... A/c	Dr		..............
	To .............. A/c				..............
	Goods purchased for Cash Rs.20 000)
ii)	.................... A/c	Dr		....................
	.................... A/c			....................
	To Vignesh A/c				................
	(Received Rs.18,800 from Ramani in full settlement of the due Rs.19,000)
iii)	.................... A/c	Dr		....................
	To .................... A/c				25,000
	(Borrowed loan from Kumar)
iv)	Cash A/c	Dr		4,000
	.................. A/c	Dr		....................
	To Domu A/c				....................
	(Domu declared insolvent 40 paise in a rupee received for the due)
v)	....................  A/c	Dr		....................
	To Machinery A/c				....................
	(Depreciation on Machinery Rs.4,000)

On 15^th March 2017, Ramesh paid Rs. 13,800 in full settlement of his account Rs. 15,000 due to his creditor Dinesh. Pass journal entry and prepare ledger accounts.

In the books of Ramesh Journal entry

Date	Particulars	L.F.	Debit Rs	Credit Rs
2017
March 15	Dinesh A/c    Dr.		15,000
	To Cash A/c			13,800
	To Discount received A/c			1,200
	(Paid Dinesh in full settlement of his account)

What are the advantages of subsidiary books?

Explain the types of petty cash books?

Prepare bank reconciliation statement as on 31^st December 2017 from the following information:
(a) Balance as per bank statement (pass book) is Rs.25,000.
(b) No record has been made in the cash book for a dishonour of a cheque for Rs.250.
(c) Cheques deposited into bank amounting to Rs.3,500 were not yet collected.
(d) Bank charges of Rs.300 have not been entered in the cash book.
(e) Cheques issued amounting to Rs.9,000 have not been presented for payment.

Following are some accounting errors. Rectify the same through Suspense Alc.
(i) Goods Purchased from Manohar of Rs. 2,500 has been posted to the debit of his account.
(ii) Cash of Rs. 4,500 paid to Munish was credited to Manish.
(iii) Discount Rs. 100 allowed to Anthony was not debited to discount account.

What are the classifications of expenditures?

Explain the accounting treatment of bad debts, provision for doubtful debts and provision for discount on debtors.

1. Kumar gives you the following expenses which were incurred in his business during the year 2003, classify them into capital, revenue or deferred revenue.
   i) Rs.12,000 spent on purchasing a patent right.
   ii) Freight charges paid on new plant amounts to Rs.700
   iii) Repairs of Rs.600 for furniture.
   iv) Rs.10,000 spent towards expenses connected with rainwater harvesting as per Government orders.
   v) Rs.7,500 spent towards initial advertising expenses.

2. Prepare profit and loss account of Manoj for the year ending on 31st March 2016.

   Particulars	Rs.	Particulars	Rs.
   Gross profit	25,000	Travelling expenses	500
   Salaries	5,600	Stationery	75
   Insurance	200	Rent	650
   Discount allowed	400	Interest on loan	225
   Discount received	300	Repairs	125
   Commission received	100	Office expenses	55
   Advertisement	450	General expenses	875
   Printing charges	375	Postage	175

   Adjustments:
   (i) Salary outstanding Rs. 400
   (ii) Rent paid in advance Rs. 50
   (iii) Commission receivable Rs. 100.

1. A Book keeper found his trial balance not balanced placed the difference amount in the suspense account and subsequently found the following errors :
   (a) Sales book was overcast by Rs. 1,500.
   (b) Rs. 2,900 received from Vani in full settlement of his account of Rs. 3,000 was posted in cash book but omitted to be entered in her account.
   (c) The total of the sales book Rs. 12,000 was debited to sales returns account.
   (d) Rs. 1,000 received as interest was credited to interest account as Rs. 100.

2. A company purchased machinery costing Rs. 90,000 on January 1, 2015 and spent Rs. 10,000 on its erection. On July 1, 2017, the machinery was sold for Rs. 58,000. The company writes off depreciation at 20% p.a. underwritten down value method. Prepare machinery account. The books are closed on 31^st December every year.

1. From the following particulars of Mr. Manikandan, prepare a Bank reconciliation statement as on March 31, 2017.
   a) The following cheques were paid into the firm's currentAlc in March but were credited by the bank in April: Anbu Rs. 250, Balu Rs. 350 and Chandru Rs. 190.
   b) The following cheques were issued by the firm in March and were cashed in April : Prince Rs. 250, Queen Rs. 450 and Raja Rs. 400.
   c) A cheque for Rs. 100 which was received from a customer was entered in the bank column of the cash book in March but the same was paid into the bank in April.
   d) The pass book shows a credit of Rs. 250 for interest and a debit of Rs. 100 for bank charges.
   e) The balance as per cash book was Rs. 18,000 as on 31.03.2017.

2. Prepare bank reconciliation statement as on 31^st March, 2017 from the following extracts of cash book and bank statement.

   Dr.      Cash Book [Ban column only]        Cr.

   Date	Particulars	Amount Rs	Date	Particulars	Amount Rs
   2017 Mar 1	To Balance bId	9,000	2017 Mar 4	By Drawings	1,700
   3	To Ram	2,200	8	By Sami	3,300
   9	To Prem	1,500	12	By Salary	2,800
   16	To Pavithra	3,400	16	By Kayal	1,700
   23	To Devi	2,600	18	By Pooja	4,200
   27	To Mani	1,100	26	By Sam	2,000
   30	To Shankar	350	28	By Raheem	1,100
   			30	By Rent	1,100
   			30	By Balance c/d	2,250
   		20,150			20,150

   Bank Statement

   Date	Particulars	Dr. Withdrawals Rs	Cr. Deposits Rs	Balance Dr./Cr Rs
   2017 Mar 1	To Balance bId			9,000 Cr.
   	To cheque-Drawings	700		8,300 Cr.
   5	By cheque - Ram		2,200	10,500 Cr.
   9	To cheque - Sumi	3,300		7,200 Cr
   11	By cheque - Prem		1,500	8,700 Cr.
   12	To cheque - Salary	2,800		5,900 Cr
   17	To cheque - Kayal	1,700		4,200 Cr.
   20	By cheque - Devi		2,600	6,800 Cr.
   30	By Interest received		900	7,700. Cr.
   30	To bank charges	15		7,685 Cr.

1. Prepare necessary subsidiary books in the books of Niranjan and also Sachin account and Mukil account from the following transactions for the month of February 2017.

   		Rs
   2017 Feb 1	Purchased goods from  Mukil Traders on credit	12,480
   Feb 4	Goods sold to Sachin Traders on credit	15,000
   Feb 6	Sold goods to Manish Traders on credit	12,100
   Feb 7	Sachin Traders returned goods for which cash is not paid	1,200
   Feb 9	Returned goods to Mukil Traders for which cash is not received	1,500
   Feb 10	Sold goods to Manish & Co., on credit	13,300
   Feb 14	Purchased from Mukil Traders on credit	15,200

2. Enter the following transactions m cash book WIth cash and bank columns. Balance the cash book.

   2013, May	Rs.
   1 Cash in hand	30,000
   2 Paid into bank	10,000
   3 Cash purchases	2,500
   4 Loan obtained from Vasan	10,000
   5 Cash deposited in bank	7,500
   6 Cash sales	2,500
   8 Rent paid by cheque	2,000
   10 Cash withdrew for office use	4,000
   14 Paid Nataraj Rs.300 by M.O.
   15 Akilan directly paid into our bank account	3,000
   25 Cash withdrawn from bank	5,000

1. Enter the following transactions in the books of Ganesan and post them into ledger.

   2017 Oct		Rs.
   1	Started business with cash	25,000
   5	Deposited into bank	12,500
   10	Purchased furniture and payment by cheque	2,000
   15	Goods purchased for cash	5,000
   19	Sold goods to Vasu on credit	4,000
   22	Goods worth Rs.500 taken for personal use

2. Prepare the trial balance from the following information:

   Name of the account	Rs	Name of the account	Rs
   Bank Loan	2,00,000	Purchases	1,80,000
   Bills Payable	1,00,000	Sales	3,00,000
   Stock	70,000	Debtors	4,00,00
   Capital	2,50,000	Bank	2,00,000

1. Narrate the evolution of accounting

2. Explain the advantages of Book-keeping.

1. Journalise the following transactions in the journal of Mr. Dhakshinamoorthy. 2017, April

   Date		Rs.
   1	Mr. Dhakshinamoorthy started his business with	40,000
   2	Bought goods from Janardhanan on credit for	15,000
   5	Sold goods to Sampath on credit for	20,000
   10	Purchased goods from Santhanam for cash	7,500
   15	Cash paid to Janardhanan	5,000
   18	Cash received from Sampath	10,000
   25	Paid for stationery purchased	750
   30	Received commission	500

2. From the following balances, prepare trial balance of Baskar as on 31st March 2017. Transfer the difference, if any, to suspense account.

   Name of the account	Rs	Name of the account	Rs
   Opening stock	40,000	Debtors	25,000
   Capital	90,000	Carriage inwards	16,500
   Sales	1,77,200	Bills received	20,000
   Salaries	12,000	Commission recieved	5,500
   Bills payable	9,450	Cash at bank	17,000
   Telephone charges	2,350	Furniture	19,000
   Creditors	16,000	Plant & Machinery	55,800
   Purchases	85,000	Repairs	550