Accounting equation signifies 

(a)

Capital of a business is equal to assets

(b)

Liabilities of a business are equal to assets

(c)

Capital of a business is equal to liabilities

(d)

Assets of a business always equal to the total of capital and liabilities

'Cash withdrawn by the proprietor from the business for his personal use' causes

(a)

Decrease in assets and decrease in owner's capital

(b)

Increase in one asset and decrease in another asset

(c)

Increase in one asset and increase in liabilities

(d)

Increase in asset and decrease in capital

Which one of the following is representative personal account?

(a)

Building A/c

(b)

Outstanding salary A/c

(c)

Mahesh A/c

(d)

Balan & Co

Prepaid rent is a  

(a)

Nominal A/c

(b)

Personal A/c

(c)

Real A/c

(d)

Representative personal A/c

________ is prepared in three copies.

(a)

Debit Note

(b)

Credit Note

(c)

Receipts

(d)

Invoice

_______ is prepared in duplicate and the original is sent to the seller.

(a)

Debit Note

(b)

Credit Note

(c)

Pay-in-slip

(d)

None of these

A debit note is called as _______

(a)

debit memo

(b)

credit memo

(c)

pay-in-slip

(d)

receipts

_____ is a statement prepared by the seller who receives back from his customer the goods sold.

(a)

Debit Memo

(b)

Credit note

(c)

Receipts

(d)

Pay-in-slip

_________ is a negotiable instrument.

(a)

Cheque

(b)

Cash

(c)

Discount

(d)

Premium

_______ system is the scientific and complete system of recording the financial transactions of a business.

(a)

Single Ent

(b)

Double Entry

(c)

Prime Entry

(d)

Journal Entry

Asset account

(1)

Land and buildings

Liability account

(2)

Purchase of goods

Revenue account

(3)

Owner

Expenses account

(4)

Rent received

Capital account

(5)

Creditors

What are source documents?

What is accounting equation?

Give the Meaning of Debit note.

State the classification of accounts.

State any three different types of Journal Entries?

State the principles of double entry system of book keeping.

Briefly explain about steps in journalising.

What is double entry system? State its advantages.

State the different approaches in recording business transactions.

Point out the nature of the following Accounts.
a) Capital A/c;
b) Drawings A/c;
c) Machinery A/c;
d) Purchases A/c;
e) Wages A/c;
f) Bank A/c;
g) Outstanding rent A/c
h) Prepaid insurance A/c;
i) Bad debts A/c

Prepare accounting equation for the following transactions.
(a) Murugan commenced business with cash Rs.80,000
(b) Purchased goods for cash Rs.30,000
(c) Paid salaries by cash Rs.5,000
(d) Bought goods from Kumar for Rs.5,000 and deposited the money in CDM.
(e) Introduced additional capital of Rs.10,000

Journalise the following transactions in the journal of Mr. Jesuraja and Raviraja. 2013, October

Date		Rs.
1	As partners, Jesuraja and Raviraja started their business with Rs.25,000, Rs. 15,000 respectively
5	Opened a current account with bank of India	40,000
10	Paid rent by cheque	2,500
15	Machinery purchased for Rs. 20,000 by cheque
20	Amount withdrawn from bank	3,000
25	Received cheque from Mr. Ramamoorthy	12,000
28	Ramamoorthy cheque deposited into bank for collection	25,000
5	Sold goods for cash
30	Cheque received from Mr. Sundararajan Rs.7000 and immediately banked.