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

_____________must be properly maintained to increase their productivity.

(a)

Liabilities

(b)

Assets

(c)

Debtors

(d)

None of these

GAAPs are:

(a)

Generally Accepted Accounting Policies

(b)

Generally Accepted Accounting Principles

(c)

Generally Accepted Accounting Provisions

(d)

None of these

The incorrect accounting equation 

(a)

Assets = Liabilities + Capital

(b)

Assets = Capital + Liabilities

(c)

Liabilities = Assets + Capital

(d)

Capital = Assets - Liabilities

RTGS stands for _________

(a)

Real Time Gross Settlement

(b)

National electronics fund transfer

(c)

Credit card

(d)

Debit card

If the total of the debit side of an account exceeds the total of its credit side, it means

(a)

Credit Balance

(b)

Debit Balance

(c)

Nil Balance

(d)

Debit and Credit Balance

Net position of an account can be ascertained from ________.

(a)

Journal

(b)

Ledger

(c)

Trial balance

(d)

Balance sheet

When double entry system is followed, the totals of the debit and the Credit columns of the trial balance must be

(a)

Equal

(b)

unequal

(c)

Excess

(d)

Short

Purchases book is used to record______

(a)

all purchases of goods

(b)

all credit purchases of assets

(c)

all credit purchases of goods

(d)

all purchases of assets

Which of the following is recorded as contra entry?

(a)

Withdrew cash from bank for personal use

(b)

Withdrew cash from bank for office use

(c)

Direct payment by the customer in the bank account of the business

(d)

When bank charges interest

While balancing three column cash book, the discount columns are:

(a)

Totalled but not adjusted

(b)

Totalled and also adjusted

(c)

Totalled but not balanced

(d)

Balanced but not totalled

A bank pass book is a copy of_____________

(a)

the cash column of a customer's cash book

(b)

the bank column of a customer's cash book

(c)

the customer's account in the bank's ledger

(d)

none of these

A credit purchase of furniture from Athiyaman was debited to purchases account. Which of the following accounts should be debited while rectifying this error?

(a)

Purchases account

(b)

Athiyaman account

(c)

Furniture account

(d)

None of these

For which of the following assets, the depletion method is adopted for writing off cost of the asset?

(a)

Plant and machinery

(b)

Mines and quarries

(c)

Buildings

(d)

Trademark

__________ means the amount incurred in acquiring the asset.

(a)

Original cost of the asset

(b)

Scrap value of an asset

(c)

Estimated useful life of the asset

(d)

None of these

Amount of Rs.5,000 spent as lawyer's fee to defend a suit claiming that the firm's factory site belonged to the plaintif's land is ____________

(a)

Capital expenditure

(b)

Revenue expenditure

(c)

Prepaid revenue expenditure

(d)

Revenue 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

_______ is a summary of the personal and real accounts.

(a)

Balance sheet

(b)

Final account

(c)

Trading account

(d)

Profit and loss account

When bad debts already appears in the trial balance, it is taken only to debit side of __________ account.

(a)

Profit and Loss

(b)

Balance sheet

(c)

Asset side

(d)

None of these

An example of output device is _______.

(a)

Mouse

(b)

Printer

(c)

Scanner

(d)

Keyboard

Who are the parties interested in accounting information?

Give the golden rules of double entry accounting system.

What will be the effect on trial balance if purchases return of Rs. 10,000 has been wrongly posted to the debit of sales return account but correctly entered in the customer's account?

What is sales book?

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?

Furniture was purchased for Rs. 60,000 on 1-7-2016. It is expected to last for 5 years. Estimated scrap at the end of five years is Rs. 4,000. Find out the rate of depreciation under straight line method.

Write a note on capital receipt. Give any two examples.

What are fixed assets?

What is depreciation?

Give any two examples of readymade software.

Discuss the role of an accountant in the modern business world.

What is matching concept? Why should a business concern follow this concept?

Rectify the Journal Entries, assuming the narration is correct.

i)	Purchases A/c	Dr	80,000
	To Hariram A/c			80,000
	(Being cash purchases from Hariram)
ii)	Cash A/c	Dr	15,000
	To Sales A/c			15,000
	(Being sale of Furniture)
iii)	Sales A/c	Dr	60,000
	To Govind A/c			60,000
	(Being credit sale to Govind)
iv)	Bank A/c	Dr	4,000
	To Cash A/c			4,000
	(Being amount withdrawn by the Proprietor from bank for his use)
v)	School Fees A/c	Dr	12,000
	To Cash A/c			12,000
	(Being School fees paid to Proprietors' son)
vi)	Charity A/c	Dr	4,500
	To Sales A/c			4,500
	(Being donation of goods)

What are the limitations of trial balance?

Write a note on
(i) Bills Receivable Book
(ii) Bills Payable Book.

Briefly explain about contra entry with examples.

State the timing differences in BRS with examples.

Following errors are discovered in the Books of Sita Ram. Make the necessary entries to rectify them.
(i) Purchases journal was Rs. 2,150.
(ii) Rs. 500 received from K. Krishna was debited to his account.
(iii) An amount of Rs. 3,000 withdrawn by the Proprietor of the firm for his personal use was posted to the Traveling expense account.
(iv) An amount of Rs. 175 for a credit sale to R. Gopalan correctly entered in the sale book, has been debited to his account as Rs. 157.

What are the classifications of expenditures?

Following is the list of students and percentage of marks obtained by them. If a student has secured a minimum of 50%, he is declared pass, else fail.

Student	Percentage of marks
1	59
2	60
3	65
4	45
5	35

1. Ganesh & Co. purchased a Machinery worth Rs. 3,00,000 on 1^st October 2010. They spent 20,000 on its erection. The firm writes off depreciation at the rate of 10% on the original cost every year. The books are closed on 31^st March of every year. Prepare machinery account and depredation account for three years.

2. Discuss the advantages of computerised accounting system in a business organisation.

1. The book-keeper of a firm found that the trial balance was out by Rs.922 (excess credit). He placed the amount in the suspense account and subsequently found the following errors:
   (a) The total of discount column on the credit side of the cash book Rs.78 was not posted in the ledger.
   (b) The total of purchases book was short by Rs.1,000.
   (c) A credit sale of goods to Natarajan for Rs.375 was entered in the sales book as Rs.735.
   (d) A credit sale of goods to Mekala for Rs.700 was entered in the purchases book.
   You are required to give rectification entries and prepare suspense account.

2. From the under mentioned trial balance of Mr. Saleem as on 31-03-2018. Prepare trading and profit and loss account and balance sheet as on the date.

   Trial Balance

   Debit balances	Amount Rs.	Credit balances	Amount Rs.
   Cash in hand	1,500	Capital	80,000
   Purchases	1,20,000	Bank loan @ 4%	20,000
   Opening stock	40,000	Bills payable	25,000
   Sundry debtors	60,000	Sundry creditors	25,000
   Plant and Machinery	50,000	Sales	2,00,000
   Furniture	20,000	Provision for bad and
   Bills receivable	15,000	doubtful debts	1,500
   Rent and taxes	10,000	Interest	1,000
   Wages	16,000
   Salaries	20,000
   	3,52,500		3,52,500

   Additional Information Supplied :
   (i) Closing stock Rs.50,000
   (ii) Provide for outstanding liabilities
   Rent and taxes Rs.2,000
   Wages Rs.3,000
   Salaries Rs.4,000
   (iii) Depreciation on plant and machinery @ 5% and on furniture @ 10%.
   (iv) Provide 4% interest on bank loan.
   (v) Write off bad debts Rs.2,000

1. Give journal entries for the following transactions and post them to ledger.

   2015 Mar		Rs.
   1	Goods sold to Somu on credit	5,000
   7	Furniture purchased for cash	300
   15	Interest received	1,800

2. Enter the following transactions in the sales book and sales returns book of M/s. Guhan & Sons, who is a textile dealer.

   2017May 2	Sold to MIs. Karan & Co., on credit
   	100 pieces towels @ Rs. 280 per piece
   	200 metres shirtings @ Rs. 270 per metre
   May 5	Sold to MIs. Veeran & Sons on credit
   	10 pieces ready-made dress @ Rs. 1,500per piece
   May 16	Sold to M/s. Jain & Sons on credit
   	50 blankets @ Rs. 240 each
   May 20	Damaged 10 pieces towels returned by Karan & co. and cash not paid
   May 25	Sold old furniture to MIs. Saran & Co., on credit Rs. 18,000
   May 27	Returned 2 pieces ready-made dresses by M/s. Veeran & Sons due to inferior quality and cash not paid

1. What are the bases of accounting? and briefly explain it.

2. Write the narration with reference to the following journal entries.

   Date	Particulars		L.F	Debit Rs.	Credit Rs.
   15.1.16	Cash A/c	Dr		17,000
   	To Ramesh A/c				17,000
   	(............................................................)
   17.1.16	Rent A/c	Dr		26,000
   	To Bank A/c				26,000
   	(............................................................)
   19.1.16	Bills payable A/c	Dr		7,000
   	To Cash				7,000
   	(............................................................)
   25.1.16	Cash A/c	Dr		6,000
   	To Sales A/c				6,000
   	(............................................................)

1. Explain briefly accounting conventions

2. Prepare Trial Balance as on 3t.3.2014 froni the books of Mrs. Chitra.

   Name ofthe account	Rs	Name ofthe account	Rs
   Capital	2,49,000	Drawings	24,000
   General expenses	97,000	Building	78,000
   Machinery	1,18,680	Stock	1,32,400
   Wages	14,400	Insurance	2,610
   Bad debts	1,100	Creditors	5,000
   Sales	3,30,720	Loan (Cr.)	75,000
   Commission	5,500	Purchases	2,10,800
   Bills payable	7,700	Reserve. Fund	15,000
   Bank overdraft	28,600	Cash in hand	23,320
   Discount	1,210

1. Visit a stationery shop nearby. Observe its business activities for a week. After having discussed with the shop keeper, prepare a list of purchased and sold items by the shop. Record them in the appropriate books.

2. Prepare a single column cash book from the following particulars of Mr. Chandran.
    

   2012, December	Rs.
   1 Cash balance	80,000
   7 Bought goods for cash	25,000
   9 Purchased goods on credit from Guru	6,000
   12 Sold goods to Somu on credit	8,000
   14 Paid Guru	6,000
   17 Cash received from Somu	8,000
   20 Paid trade expenses	10,000
   21 Received cheque from Krishna	10,000
   27 Commission received	5,000

1. From the following information, prepare trading and profit and loss account of Abdul Rahuman for the year ending 31st December 2016 and balance sheet as on that date. The closing stock on 31st December 2016 was valued at Rs. 2,000.

   Particulars	Rs	Particulars	Rs
   Opening stock	500	Purchases	1,300
   Sales	5,000	Wages	700
   Discount received	500	Salary	500
   Building	50,000	Capital	50,000
   Cash in hand	4,500

2. Prepare bank reconciliation statement from the following data.

   Particulars	Rs
   (i) Credit balance as per cash book	5,000
   (ii) Cheques deposited but not yet credited	3,000
   (iii) Cheque issued but not yet presented for payment	4,000
   (iv) Rent collected by the bank as per standing instruction	120
   (v) Interest on overdraft debited by bank	760
   (vi) Amount wrongly debited by bank	300
   (vii) Cheque issued on 30th December 2017 dishonoured by the bank	520
   (viii) A customer's cheque deposited in the bank dishonoured by bank not recorded in the book	55