Definition of Accounting

Q.

Distinguish between capital receipts and revenue receipts.

Q.

What are the advantages and disadvantages of double entry system?

Q.

What Is Revenue Expenditure?

Q.

Who are the external users of information?

Q.

What is meant by Grouping and Marshalling of assets and liabilities? Explain the ways in which a balance sheet may be marshalled.

Q.

Which of the following is not a business transaction?

1. Purchase of car for business use

2. Invested Rs.1, 00, 000/- in business

3. Purchase of car for personal use

4. Purchase of machinery

Q.

Which accounts are kept under a pure single entry system?

Q.

Prepare specimen of a Balance Sheet in liquidity order with imaginary figures.

Q.

What is meant by purchase return books?

Q.

Giving examples, explain each of the following accounting terms

$\begin{array}{ccc}& & \\ \text{Fixed assets,}& \text{Gain,}& \text{Profit}\\ \text{Revenue,}& \text{Expenses,}& \text{Short term liability}\\ \text{Capital}& & \end{array}$

Q.

What are the functions of an Accounting Information System?

Q.

What do you mean by a pure single entry system?

Q.

Define Source Documents.

Q.

Which of the following is not a demerit of the formal organisation?

1. It emphasises following rigidly laid down policies

2. It may lead to the spreading of rumours.

3. It places more importance on work rather than relationships.

4. It may lead to procedural delays.

Q.

Give the Performa of an income statement and balance sheet in vertical form.

Q. Define accounting.

Q.

Give the formula to calculate the annual depreciation as per 'straight line method'.

Q.

From the following information, calculate the amount to be paid to creditors

$\begin{array}{cc}& \text{(Rs.)}\\ \text{Sundry creditors as on March 31, 2005}& 1,80,425\\ \text{Discount received}& 26,000\\ \text{Discount allowed}& 24,000\\ \text{Return outwards}& 37,200\\ \text{Return inward}& 32,200\\ \text{Bills accepted}& 1,99,000\\ \text{Bills endorsed to creditors}& 26,000\\ \text{Creditors as on April 1, 2006}& 2,09,050\\ \text{Total purchase}& 8,97,000\\ \text{Cash purchase}& 1,40,000\end{array}$

Q.

The process of accounting starts with _______ and ends with _______.

1. identifying, measuring

2. measuring, recording

3. recording, communicating

4. identifying, communicating

Q.

Explain how the following may be ascertained from incomplete records

(a) Opening capital and closing capital

(b) Credit sales and credit purchases

(c) Payments to creditors and collection from debtors

(d) Closing balance of cash

Q.

From the following trial balance of Mr. A Lal, prepare Trading and Profit and Loss account and Balance sheet as on March 31, 2011.
$\begin{array}{ccc}\text{Account Title}& \text{Amt. (Dr.)}& \text{Amt. (Cr.)}\\ \text{Stock as on April 1, 2010}& 16,000& \\ \text{Purchase and Sales}& 67,600& 1,12,000\\ \text{Return Inwards and Outwards}& 4,600& 3,200\\ \text{Carriage Inwards}& 1,400& \\ \text{General Expenses}& 2,400& \\ \text{Bad Debts}& 600& \\ \text{Discount Received}& & 1,400\\ \text{Bank Overdraft}& & 10,000\\ \text{Interest on Bank Overdraft}& 600& \\ \text{Commission Received}& & 1,800\\ \text{Insurance and Taxes}& 4,000& \\ \text{Scooter Expenses}& 200& \\ \text{Salaries}& 8,800& \\ \text{Cash in Hand}& 4,000& \\ \text{Scooter}& 8,000& \\ \text{Furniture}& 5,200& \\ \text{Building}& 65,000& \\ \text{Debtors and Creditors}& 6,000& 16,000\\ \text{Capital}& & 50,000\end{array}$

Closing Stock Rs. 15, 000.

Q.

What are the types of drawings in accounting?

Q.

Which among the following is the external user of accounting information ?

1. Purchasing officer

2. Inventory clerk

3. Customer

4. Director of Research and Development

Q.

The internal user of accounting information is the:

1. Supplier

2. Income Tax Department

3. Purchase Manager

4. Government

Q. Which amongst the following is the correct sequence of accounting process:

1. Measuring--Communicating--Recording--Identifying
2. Recording--Measuring--Communicating--Identifying
3. Identifying--Measuring--Recording--Communicating
4. Identifying--Communicating--Recording--Measuring

Q.

Explain, using examples, the relationship between the organisational MIS and the other functional information system in an organisation. Describe how AIS receives and provides information to other functional MIS.

Q.

What is the other name of the purchase returns book?

Q.

Mr. Ajay has approached ABC Ltd bank for a loan. The bank has asked Mr. Ajay to submit his financial statements for the last 3 years. Which of the following decisions the bank wont be able to take with the help of the financial statements?

1. Whether there are any assets which are in possession of Mr. Ajay or not

2. Whether Mr. Ajay is married or unmarried

3. Whether Mr. Ajay will be able to repay back the sums borrowed from bank

4. Whether business of Mr. Ajay is generating profits or not

Q.

The following particulars relate to the business of Varun on 31st March 2016

$\begin{array}{ccc}& & \text{Amt (Rs.)}\\ \left(i\right)& \text{Cheques issued but not presented for payment}& 34,500\\ \left(ii\right)& \text{Cheques paid into the bank but not yet collected}& 7,500\\ \left(iii\right)& \text{Interest credited by the bank but not entered in the cash book}& 1,650\\ \left(iv\right)& \text{Bank charges debited in the pass book but not entered in the cash book}& 105\\ \left(v\right)& \text{Credit balance as shown by the pass book}& 1,06,590\\ \left(vi\right)& \text{Debit balance as shown by the cash book}& 78,045\end{array}$

Prepare (a) Statement reconciling the bank balance as per cash book with that shown by the bank as on 31st March, 2016. (b) Statement reconciling the bank balance as per pass book with dept shown by the cash book as on 31st March, 2016.

Q.

What is Decentralised purchasing?