Recap of Accounting Process

Q.

Explain the meaning of Analysis and Interpretation.

Q. A, B and C are partners in a firm. They do not have a Partnership Deed. At the end of the first year of the commencement of the firm, they have faced the following problems :
(a) A wants that interest on capital should be allowed to the partners but B and C do not agree.
(b) B wants that the partners should be allowed to draw salary but A and C do not agree.
(c) C wants that the loan given by him to the firm should bear interest @ 10% p.a. but A and B do not agree.
(d) A and B having contributed larger amounts of capital, desire that the profits should be divided in the ratio of their capital contribution but C does not agree.
State how you will settle these disputes if the partners approach you for purpose.

Q.

What are the advantages of a ledger?

Q.

What Is the Importance of the Partnership Deed?

Q.

The account format that displays debits credits balances and headings: a) General Journal (b) General Ledger (c) T- account (d) Ledger Account

Q.

What are the basic accounting procedures?

Q.

What Is Meant by analysis of Financial Statements? State Any Two Objectives of Such an Analysis.

Q. Interest on capital is added to the of partners.

1. drawings
2. profit
3. capital
4. interest

Q.

Why is rectification of errors needed?

Q.

What term is used for the amount invested by the owner in the business?

1. Profit

2. Capital

3. Drawings

4. Interest

Q.

How Does Management Accounting Differ From Financial Accounting?

Q.

Which is the correct sequence of the following steps in the accounting cycle?

Q. The amount invested by the partners in the business is called .

1. drawings
2. interest
3. profit
4. capital

Q.

What Are the Distinct Stages in Accounting?

Q. If the owner put all their money earned through profit back in the business, then these net profits are added to

1. drawings
2. interest
3. profit
4. capital

Q.

What change does profit makes to capital?

1. Profit gets added to the capital

2. Profit has no change to capital

3. Profit gets reduced from capital

4. All of these

Q.

How are the various activities classified (as per AS-3 revised) while preparing cash flow statement?

Q. Explain any five merits and five demerits of partnership.

Q. Explain the concept of mutual agency in partnership firm.

Q.

What distinguishes partnership from the sole proprietorship?

1. Presence of more than one owner

2. Owner expectation from the business

3. Preparation of trial balance

4. Posting of journal

Q.

What are the features of a ledger account?

Q.

What term is used as the amount charged from the owner for withdrawing money from the business?

1. Interest on Capital

2. Interest on Drawings

3. Commission

4. Share in profit

Q. Why is it considered better to make a partnership agreement in writing?

Q.

Process of financial planning ends with _____. a) Preparation of Projected Statements b) Ordering the employees that projected figures come true c) Preparation of Actual Statements d) Comparison of Actual with Projected

Q. Define a computerised accounting system. Distinguish between a manual and computerised accounting system.

Q.

How do you balance ledger accounts?

Q. Who prepares the bank reconciliation statement?

1. Statutory Auditor
2. Reserve Bank of India
3. Customer
4. Business enterprises

Q.

What are 3 sole proprietorship businesses?

Q. Objective type questions.
Answer in one sentence only.

Which types of accounts are normally not kept under Single Entry System?

Q. Transferring journal entry from journal to ledger is called journalising.

1. True
2. False