Accountancy

Q.

Prepare the trading and profit and loss account and a balance sheet of M/s Shine Ltd. from the following particulars.

$\begin{array}{cccc}\text{Account Title}& \text{Amt.(Rs)}& \text{Account title}& \text{Amt.(Rs)}\\ \text{Sundry Debtors}& 1,00,000& \text{Bills Payable}& 85,550\\ \text{Bad Debts}& 3,000& \text{Sundry Creditors}& 25,000\\ \text{Trade Expenses}& 2,500& \text{Provision for Bad Debts}& 1,500\\ \text{Printing and Stationery}& 5,000& \text{Return Outwards}& 4,500\\ \text{Rent, Rates and Taxes}& 3,450& \text{Capital}& 2,50,000\\ \text{Freight}& 2,250& \text{Discount Received}& 3,500\\ \text{Sales Return}& 6,000& \text{Interest Received}& 11,260\\ \text{Motor Car}& 25,000& \text{Sales}& 1,00,000\\ \text{Opening Stock}& 75,550& & \\ \text{Furniture and Fixture}& 15,500& & \\ \text{Purchase}& 75,000& & \\ \text{Drawings}& 13,560& & \\ \text{Investments}& 65,500& & \\ \text{Cash in Hand}& 36,000& & \\ \text{Cash at Bank}& 53,000& & \\ & \overline{\underset{–}{\underset{–}{4,81,310}}}& & \overline{\underset{–}{\underset{–}{4,81,310}}}\end{array}$

Adjustments

1. Closing stock was valued Rs. 35, 000.

2. Depreciation charged on furniture and fixture @ 5%.

3. Further bad debts Rs. 1, 000. Make a provision for bad debts @ 5% on sundry debtors.

4. Depreciation charged on motor car @ 10%.

5. Interest on drawings @ 6%.

6. Rent, rates and taxes was outstanding Rs. 200.

7. Discount on debtors 2%.

Q. Journalise the following transactions, post them into Ledger, balance the accounts and prepare a Trial Balance :−

2017		(₹)
March 1	Shyam Sunder & Sons commenced business with cash	80, 000
2	Purchased goods for cash	36, 000
3	Machinery purchased for cash	4, 000
4	Purchased goods from :
	Raghu	22, 000
	Dilip	30, 000
6	Returned goods to Raghu	4, 000
8	Paid to Raghu, in full settlement of his account	17, 500
10	Sold goods to Mahesh Chand & Co. for ₹ 32, 000 at 5% trade discount
13	Received cash from Mahesh Chand & Co.	19, 800
	Discount allowed	200
15	Paid cash to Dilip	14, 850
	Discount received	150
20	Sold goods for cash	25, 000
24	Sold goods for cash to Sudhir Ltd.	18, 000
25	Paid for Rent	1, 500
26	Received for Commission	2, 000
28	Withdrew by Proprietor for his personal use	5, 000
28	Purchased a fan for Proprietor's house	1, 200

Q.

Distinguish between capital receipts and revenue receipts.

Q.

What is a memory unit?

Q. Show the effect of the following transactions on the Accounting Equation:
(i) Started business with cash ₹ 50, 000.
(ii) Salaries paid ₹ 2, 000.
(iii) Wages Outstanding ₹ 200.
(iv) Interest due but not paid ₹ 100.
(v) Rent paid in advance ₹ 150.

Q.

Give Journal entries for the following:

(i) Bought goods at the list price of Rs.50, 000 from Vinod less 20% trade discount and 2% cash discount and paid 40% by cheque.

(ii) Sold goods to Mohan at list price Rs.1, 00, 000 less 20% trade discount and 2% cash discount and paid 50% by cheque.

(iii) Paid income tax through cheque Rs.2, 000.

Q.

Distinguish between financial accounting, cost accounting and management accounting.

Q.

What are the uses of computer in banks?

Q.

What are the causes of depreciation?

Q.

Use accounting equation to show the effect of the following transactions of M\s Royal Traders

$\begin{array}{cc}& \\ & \left(Rs\right)\\ \text{(a)Started business with cash}& 1,20,000\\ \text{(b) Purchased goods for cash}& 10,000\\ \text{(c) Rent received}& 5,000\\ \text{(d) Salary outstanding}& 2,000\\ \text{(e) Prepaid insurance}& 1,000\\ \text{(f) Received interest}& 700\\ \text{(g) Sold goods for cash (costing Rs 5, 000)}& 7,000\\ \text{(h) Goods destroyed by fire}& 500\end{array}$

Q.

Explain the following adjustment and their treatment in Final Accounts:
(i) Loss of stock by fire
(ii) Goods given away as charity and samples.
(iii) Goods were taken by the proprietor for personal use.

Q.

Show the effect of the following transactions on Assets, Liabilities and Capital through accounting equation

$\begin{array}{cc}\text{Transaction}& \text{Amount (Rs.)}\\ \text{a. Started business with cash}& \text{1, 20, 000}\\ \text{b. Rent received}& \text{10, 000}\\ \text{c. Invested in shares}& \text{50, 000}\\ \text{d. Received dividend}& \text{5, 000}\\ \text{e. Purchased goods on credit from Ragini}& \text{35, 000}\\ \text{f. Paid cash for household expenses}& \text{7, 000}\\ \text{g. Sold goods for cash (costing Rs. 10, 000)}& \text{14, 000}\\ \text{h. Cash paid to Ragini}& \text{35, 000}\\ \text{i. Deposited into bank}& \text{20, 000}\end{array}$

Q.

What are the five basic operations performed by the computer?

Q. Show the Accounting Equation on the basis of the following transactions and present a Balance Sheet on the last new equation balance:

		₹
(i)	Raj commenced business with cash	70, 000
(ii)	Purchased goods on credit	14, 000
(iii)	Withdrew for Private use	1, 700
(iv)	Goods purchased for cash	10, 000
(v)	Paid wages	300
(vi) (vii) (viii) (ix)	Paid to creditors Sold goods on credit for Sold goods for cash (cost price was Purchased motorcycle for cash ₹ 3, 000) Purchased furniture for	10, 000 15, 000 4, 000 ​ ​500

Q.

What are the 3 types of ledgers?

Q.

Net profit of a firm before charging manger's commission is Rs 21, 000. If the manager is entitled to 5% commission after charging such commission, how much manager will get as commission?

Q.

Mohit has the following transactions , prepare accounting equation

$\begin{array}{cc}& \\ & \left(Rs\right)\\ \text{(a)Business started with cash}& 1,75,000\\ \text{(b) Purchased goods from Rohit}& 50,000\\ \text{(c) Sales goods on credit to Manish (Costing Rs 17, 500)}& 20,000\\ \text{(d) Purchased furniture for office use}& 10,000\\ \text{(e) Cash paid to Rohit in full settlement}& 48,500\\ \text{(f) Cash received from Manish}& 20,000\\ \text{(g) Rent paid}& 1,000\\ \text{(h) Cash withdraw for personal use}& 3,000\end{array}$

Q.

Following information is given in trail balance

$\begin{array}{cc}\text{Bad debt}& Rs.3,000\\ \text{Provision for bad debts}& Rs.3,500\\ \text{Debtors}& Rs.40,000\end{array}$

Additional Information:

It is desired to make a provision for doubtful debts @10% on debtors. Find the amount to be debited to profit and loss account.

Q.

Give an example for each of the following types of transaction.
(i) Increase in one asset, decrease in another asset.
(ii) Increase in asset, increase in liability.
(iii) Increase in asset, increase in owner's capital.
(iv) Decrease in asset, decrease in liability.
(v) Decrease in asset, decrease in owner's capital.
(vi) Decrease in liabilities, increase in owner's capital.
(vii) Increase in one liability, decrease in another liability.
(viii) Increase in liabilities, decrease in owner's capital.

Q.

Which of the following journal entry will be recorded, if goods are withdrawn by a proprietor for his personal use from business?

1. Drawings A/c Dr

   To Capital A/c

2. Drawings A/c Dr

   To Bank A/c

3. Drawings A/c Dr

   To Cash A/c

4. Drawings A/c Dr

   To Purchase A/c

Q.

What are the advantages and disadvantages of double entry system?

Q.

What are preliminary expenses?

Q. From the Balance Sheet given below, calculate:
(i) Fixed Assets
(ii) Current Assets
(iii) Current Liabilities
(iv) Working Capital

Balance Sheet as at 31st March, 2018
Liabilities	₹	Assets	₹
Trade Creditors	42, 000	Stock in Hand	48, 000
Expenses Accrued	3, 200	Debtors	36, 000
Bank Overdraft	4, 800	Prepaid Expenses	400
Long-Term Loan	20, 000	Goodwill	20, 000
Interest on Loan	1, 000	Land	20, 000
Capital	93, 400	Plant	32, 000
		Furniture	8, 000
	1, 64, 400		1, 64, 400

Q.

Calculate closing stock and cost of goods sold. Opening stock Rs. 5, 000 ; sales Rs. 16, 000; carriage inwards Rs. 1, 000, sales return Rs. 1, 000; gross profit Rs. 6, 000; purchases Rs. 10, 000; purchases return Rs. 900.

Q.

Explain the qualitative characteristics of accounting information.

Q.

What is the entry for creating the provision for doubtful debts?

1. No Entry

2. Provision for doubtful debts A/c Dr

   To Profit or loss A/c

3. None of these

4. Profit or loss A/c Dr

   To Provision for doubtful debts A/c

Q.

What is the meaning of Statement of Affairs?

Q.

When goods are purchased on credit, what will be the impact in accounting equation?

1. Assets - Decrease
   Liabilities - No effect
   Capital - Decrease

2. Assets - No effect
   Liabilities - Decrease
   Capital - Increase

3. Assets - Increase
   Liabilities - No effect
   Capital - Decrease

4. Assets - Increase
   Liabilities - Increase
   Capital - No effect

Q.

A Set Of Instruction Given To Computer Is Called

Q.

What are the rules of trial balance?