The root of financial accounting system is ______.

(a)

Social accounting

(b)

Stewardship accounting

(c)

Management accounting

(d)

Responsibility accounting

Who is considered to be the internal user of the financial information?

(a)

Creditor

(b)

Employee

(c)

Cutomer

(d)

Government

The profounder of double entry system of book-keeping is ___________

(a)

J. R. Batlibai

(b)

Luca Pacioli

(c)

Old Kesal

(d)

Menhar

Accounting equation is formed based on the accounting principle of

(a)

Dual aspect

(b)

Consistency

(c)

Going concern

(d)

Accrual

J. F. means ___________

(a)

Ledger page number

(b)

Journal page number

(c)

Voucher number

(d)

Order number

Trial balance is a_____

(a)

Statement

(b)

Account

(c)

Ledger

(d)

Journal

Trial balance is prepared ____________

(a)

At the end of the year

(b)

On a particular date

(c)

For a year

(d)

None of the above

Sales book is used to record_____

(a)

all sales of goods

(b)

all credit sales of assets

(c)

all credit sales of goods

(d)

all sales of assets and goods

Closing entries are recorded in _____

(a)

Cash book

(b)

Ledger

(c)

Journal proper

(d)

Purchases book

Cash book is a_______

(a)

Subsidiary book

(b)

Principal book

(c)

Journal proper

(d)

Both subsidiary book and principal book

A bank statement is a copy of _______.

(a)

Cash column of the cash book

(b)

Bank column of the cash book

(c)

A customer's account in the bank's book

(d)

Cheques issued by the business

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

(a)

Principle

(b)

Complete omission

(c)

Partial omission

(d)

Duplication

The total of purchases book was overcast. Which of the following accounts should be debited in the rectifying journal entry?

(a)

Purchases account

(b)

Suspense account

(c)

Creditor account

(d)

None of the above

Cash received from sale of fixed asset is credited to ____________

(a)

Profit and loss account

(b)

Fixed asset account

(c)

Depreciation account

(d)

Bank account

Residual value of an asset means the amount that it can fetch on sale at the ________of its useful life.

(a)

Beginning

(b)

End

(c)

Middle

(d)

None

Interest on bank deposits is ______.

(a)

Capital receipt

(b)

Revenue receipt

(c)

Capital expenditures

(d)

Revenue expenditures

Net profit of the business increases the ______.

(a)

Drawings

(b)

Receivables

(c)

Debts

(d)

Capital

Current assets does not include _______.

(a)

Cash

(b)

Stock

(c)

Furniture

(d)

Prepaid expenses

Net profit is ______.

(a)

Debited to capital account

(b)

Credited to capital account

(c)

Debited to drawings account

(d)

Credited to drawings account

Closing stock is valued at ______.

(a)

Cost price

(b)

Market price

(c)

Cost price or market price whichever is higher

(d)

Cost price or net realisable value whichever is lower

List any two functions of accounting.

Define Book Keeping.

What is real account?

What is sales book?

What are compensating errors?

List out the various methods of depreciation.

From the following information, prepare trading account for the year ended 31.12.2016.

Particulars	Rs
Opening stock (1.1.2016)	10,000
Purchases	26,100
Sales	40,600
Closing Stock (31.12.2016)	13,500

Explain the meaning of accounting.

"Only monetary transactions are recorded in accounting". Explain the statement.

Distinguish between journal and ledger.

What are the limitations of trial balance?

What are the advantages of subsidiary books?

Write a note on suspense account.

Following is the extract of a trial balance as on 31 st December 2017. Prepare trading account.

Particulars	Dr.	Cr.
Closing stock	25,000
Adjusted purchases	70,000
Freight inwards	5,700
Royalty on goods purchased	4,300
Sales		1,70,000
Wages	8,000
Octroi on purchase of goods	4,000

Create accounting equation on the basis of the following transactions:
(i) Opening balance on pt January, 2018 cash Rs.20,000; stock Rs.50,000 and bank Rs.80,000
(ii) Bought goods from Suresh Rs.10,000 on credit
(iii) Bank charges Rs.500
(iv) Paid Suresh Rs.9,700 through credit card in full settlement.
(v) Goods purchased on credit from Philip for Rs.15,000
(vi) Goods returned to Philip amounting to Rs.4,000

Show the direct ledger postings for the following transactions:

2016 July
1	Shankar commenced business with a cash Rs. 1,00,000
5	Sold goods for cash Rs. 10,000
9	Wages paid Rs. 6,000
19	Salaries paid Rs. 8000
20	Advertisement expenses paid Rs. 4,000

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

Enter the following transactions in the Sales book of Kamala Stores, a furniture shop.

2017 May 2	Sold to Naveen Stores, Trichy on credit 5 computer tables @ Rs. 1,750 per table
May 9	Sold to Deepa & Co., Madurai on credit 6 dining tables @ Rs. 1,900 per dining table
May 15	Sold to Rajesh 10 dressing tables @ Rs. 2,750 each on credit
May 24	Sold to Anil 5 wooden tables @ Rs. 1,250 per table on credit
May 27	Sold to Gopi 3 old computers @ Rs. 3,500 each
May 29	Sold 50 chairs to Anil @ Rs. 275 each for cash

Enter the following transactions in a single column cash book of Seshadri for May, 2017

May 1	Particulars	Rs
5	Cash in hand	40,000
7	Cash received from Swathi	4,000
10	Purchased goods from Sasikala for cash	6,000
15	Sold goods for cash	9,000
18	Purchased computer	15,000
22	Cash paid to Sabapathi	5,000
28	Paid Salary	2,500
30	Interest received	500

From the following information, prepare bank reconciliation statement as on 31^st December, 2017 to find out the balance as per bank statement.

Particulars	Rs
(i) Bank overdraft as per cash book	20,000
(ii) Cheques deposited but not yet credited	4,000
(iii) Cheque issued but not yet presented for payment	1,000
(iv) Rent collected by the bank as per standing instruction	500
(v) Interest on overdraft debited by bank	2,000
(vi) Amount wrongly debited by bank	300
(vii) Cheque issued on 30th December 2017 dishonoured by the bank	5,000
(viii) A customer's cheque deposited in the bank dishonoured by bank not recorded in the book	2,000

The following errors were located after the preparation of the trial balance. Rectify them.
(a) Paid Rs. 50 to Anitha was wrongly debited to Vanitha account.
(b) Sale of furniture for Rs. 500 was credited to sales account.
(c) Purchased goods from Natarajan on credit for Rs. 750 were wrongly passed through sales book.
(d) Wages Rs. 1,000 paid on erection of machinery was debited to wages account.