The closing balance is the next year's___________

The origin of a transaction is derived from the ____________

A prepayment of insurance premium will appear in ______.

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

Under straight line method, the amount of depreciation is ____.

Wages paid for installation of machinery wrongly debited to wages account is an error of _______.

Balance sheet shows the ________ of the business.

Net profit of the business increases the ______.

Revenue expenditure is intended to benefit ______.

Debit balance in the bank column of the cash book means _______.

Accounting equation is formed based on the accounting principle of

Business concerns are always profit motivated and try to increase their _____

A cash book with discount, cash and bank column is called_______

A periodic total of the purchases book is posted to the _______

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

The process of finding the net amount from the totals of debit and credit columns in a ledger is known as

__________ is useful to find out tax liability in case of sales tax, income tax, property tax, etc

Double- entry book-keeping first emerged in Italy in the ___________ century.

The concept which assumes that a business will last indefinitely is

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

What is the purpose of Balancing the ledger accounts?

Rectify the following errors located after the preparation of trial balance:
(a) Purchases book was undercast by Rs.900.
(b) Sale of old furniture for Rs.1,000 was credited to sales account.
(c) Purchase of goods from Arul for Rs.1,500 on credit was not recorded in the books

State with reasons whether the following are capital or revenue expenditure:
i. Expenses incurred in connection with obtaining a licence for starting the factory for Rs.25,000.
ii. A factory shed was constructed at a cost of Rs.2,00,000. A sum of Rs.10,000 had been incurred in the construction of temporary huts for storing building material.
iii. Overhaul expenses of second-hand machinery purchased amounted to Rs.5,000.

Give any two expenses which may be paid by the banker as per standing instruction.

Enter the following transactions in the purchases return book of M/s. Sutha a Saree dealer.

2017 July 10	Singhal Mills, accepted the returns of goods (which were purchased for Cash) 10 Silk sarees @ Rs. 100
July 15	Returned to Aggarwal Mills
	100 Silk sarees @ Rs. 110
	Less: Trade discount @ 10%
July 18	Returned one typewriter (being defective) @ Rs. 3,500 to Garg & Co.
July 25	Returned to Grover & Sons.
	50 Kota sarees @ Rs. 60
	Less: Trade Discount @ 10%

What is sales returns book?

What is "Full Disclosure Principle" of accounting?

Write short notes on cash basis of accounting.

Machinery was purchased on 1^st January 2015 for Rs. 4,00,000. Rs. 15,000 was spent on its erection and Rs. 10,000 on its freight charges. Depreciation is charged at 10% per annum on straight line method. The books are closed on 31^st March each year. Calculate the amount of depreciation on machinery for the first two years.

The following errors were located after the preparation of the trial balance. Assume that there exists a suspense account. Rectify them.
(a) Sale of goods on credit to Arun for Rs. 152 posted to his account as Rs. 125.
(b) Bought goods from Lakshmi on credit for Rs. 550, credited to her account as Rs. 505.
(c) Purchase of furniture from Abirupa for Rs. 404 on credit was debited to furniture account as Rs. 440.
(d) Purchased machinery for cash Rs. 200 was not posted to machinery account.
(e) The total of purchases book Rs. 89 was carried forward as Rs. 98.

Explain why does money deposited into bank appear on the debit side of the cash book, but on the credit side of the bank statement?

The following trial balance has certain errors. Redraft it.

S.No	Name of account	L.F	Debit balance  Rs.	Credit balance  Rs.
1	Building		60,000
2	Machinery		17,000
3	Returns outward		2,600
4	Bad debts		2,000
5	Cash		400
6	Discount received		3,000
7	Bank overdraft		10,000
8	Creditors		50,000
9	Purchases		1,00,000
10	Capital			72,800
11	Fixtures			5,600
12	Sales			1,04,000
13	Debtors			60,000
14	Interest received			2,600
	Total		2,45,000	2,45,000

Prepare the trial balance from the following-balances of Ms Chitra as on 31.03.2015.

	Rs		Rs
Capital	2,50,000	Bank	2,75,000
Bills payable	50,000	Debtors	1,00,000
Opening Stock	75,000	Discount received	5,000
Loan	1,50,000	Sales	50,000
Salaries	10,000	Purchases	45,000

"Business units last indefinitely". Mention and explain the concept on which the statement is based.

From the following particulars presented by Thilak for the year ended 31st March 2017, prepare profit and loss account.

Particulars	Rs.	Particulars	Rs.
Gross profit	1,00,000	Interest received	6,000
Rent paid	22,000	Bad debts	2,000
Salaries	10,000	Provision for bad debts (1-4-2016)	4,000
Commission (Cr.)	12,000	Sundry debtors	40,000
Discount received	2,000	Buildings	80,000
Insurance premium paid	8,000

Adjustments:
(a) Outstanding salaries amounted to Rs. 4,000
(b) Rent paid for 11 months
(c) Interest due but not received amounted to Rs. 2,000
(d) Prepaid insurance amounted to Rs. 2,000
(e) Depreciate buildings by 10%
(f) Further bad debts amounted to Rs. 3,000 and make a provision for bad debts @ 5% on sundry debtors
(g) Commission received in advance amounted to Rs. 2,000.

Ragul purchased machinery on April 1, 2014 for Rs. 2,00,000. On 1st October 2015, a new machine costing Rs. 1,20,000 was purchased. On 30th September 2016, the machinery purchased on April 1, 2014 was sold for Rs. 1,20,000. Books of accounts are closed on 31st March and depreciation is to be provided at 10% ap.a. on straight line method. Prepare machinery account and depreciation account for the years 2014-15 to 2016-17:

Record the following transactions in the three column cash book of John

	Particulars	Rs.
2017 Dec 1	Cash balance brought forward	12,600
1	Bank overdraft brought forward	36,000
1	Advance paid to petty cashier by cheque	3,000
5	Goods sold for cash	12,000
7	Dividend on shares collected by the banker	1,000
13	Cash paid into Bank	10,000
14	Interest charged by the bank for bank overdraft	1,500
18	Cheque issued to Siddique	8,000
	Discount received from him	200
24	Insurance claim received by cheque and deposited into bank	17,000
28	Cash received from Baskar	15,000
	Discount allowed to him	150
31	Deposited into Bank all cash excess of Rs.18,600

Pass Journal Entries in the books of Ragu from the following transactions:

2016 June
1	Ragu started business with cash Rs.80,000; goods Rs.40,000 and furniture Rs.20,000.
2	Sold goods to Nandu of the list price of Rs.20,000 at trade discount of 10%.
3	Nandu returned goods on the list price of Rs.4,000
8	Received from Nandu Rs.14,150 in full settlement in his account
10	Purchased goods from Mohan of the list price of Rs.10,000 at 15% Trade discount.
13	Returned goods to Mohan of the list price Rs.1,000
16	Settled his account of Mohan by paying cash, under discount of 4%.
18	Purchased goods from Ajay Rs.5,000; Sanjay Rs.10,000.
19	Paid Cash to Ajay Rs.1,900 and discount received Rs.100.
20	Paid 9,800 to Sanjay in full settlement of his account
20	Bought a 'Table Fan' for Rs1,200 for the domestic use of Raghu.
25	Sold goods for cash of the list price of Rs.8,000 at 10%, Trade Discount and 3% cash Discount
30	Paid Rent Rs.800; Trade expenses Rs.700 and Travelling expenses Rs. 380.

On 31^st December 2013 the pass book of Ms.Chandrika shows a credit balance of Rs. 3,357. The cheques sent to the bank but not collected and credited amounted to Rs. 790 and three cheques drawn for Rs. 300, Rs. 150 and Rs. 200 respectively were not presented for payment till 31^st January 2014.
Bank has paid a bill payable amounting to Rs. 1,000 but it has not been entered in the cash book and a bill receivable of Rs. 500 which was discounted with the bank was dishonored by the drawer on due date.
The Bank has charged Rs. 12 as its commission for collecting outstation cheques and has allowed interest Rs. 10 on the trader's balance.
Prepare a Bank Reconciliation statement and show the balance as per cash book.

On 31^st March, 2017, Anand's cash book showed a balance of Rs. 1,12,500. Prepare bank reconciliation statement.
a) He had issued cheques amounting to Rs. 23,000 on 28.3.2017, of which cheques amounting to Rs. 9,000 have so far been presented for payment.
b) A cheque for Rs. 6,300 deposited into bank on 27.3.2017, but the bank credited the same only on 5^th April 2017.
c) He had also received a cheque for Rs. 12,000 which, although entered by him in the cash book, was not deposited in the bank.
d) Wrong credit given by the bank on 30^th March 2017 for Rs.2,000.
e) On 30^th March 2017, a bill already discounted with the bank for Rs. 3,000 was dishonoured, but no entry was made in the cash book.
f) Interest on debentures of Rs. 700 was received by the bank directly.
g) Cash sales of Rs. 4,000 wrongly entered in the bank column of the cash book.

The following balances are extracted from the books of Ravichandran on 31st December, 2016. Prepare the trial balance.

Particulars	Rs	Particulars	Rs
Capital	1,50,000	Sales	75,000
Debtors	22,800	Return inwards	1,000
Rent received	500	Discount allowed	800
Bank overdraft	3,100	Discount received	1,000
Creditors	5,500	Wages	2,900
Premises	1,46,000	Salaries	3,500
Opening Stock	10,000	Commission paid	1,100
Purchases	45,000	General expenses	2,000