Which one of the following is not a main objective of Accounting?

(a)

Systematic recording of transactions

(b)

Ascertainment of the profitability of the business

(c)

Ascertainment of the Financial position of the business

(d)

Solving tax disputes with tax authorities

Two or more business units forming a single entity is known as __________.

(a)

Joint

(b)

Merger

(c)

Link

(d)

Compound

Which of the following does not follow dual aspect concept?

(a)

Increase in one asset and decrease in other asset

(b)

Increase in both asset liability

(c)

Decrease in one asset and decrease in other asset

(d)

Increase in one asset and increase in capital

'Cash withdrawn by the proprietor from the business for his personal use' causes

(a)

Decrease in assets and decrease in owner's capital

(b)

Increase in one asset and decrease in another asset

(c)

Increase in one asset and increase in liabilities

(d)

Increase in asset and decrease in capital

An entry is passed in the beginning of current year is called _________

(a)

Original entry

(b)

Final entry

(c)

Opening entry

(d)

Adjusting entry

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

(a)

Casting

(b)

Posting

(c)

Journalising

(d)

Balancing

Merchandise stolen by someone should be debited to_______

(a)

Sales account

(b)

Purchases account

(c)

Loss by theft account

(d)

None of the above

The trial balance contains the balances of_____

(a)

Only personal accounts

(b)

Only real accounts

(c)

Only nominal accounts

(d)

All accounts

Which of the following statements is not true?

(a)

Cash discount is recorded in the books of accounts

(b)

Assets purchased on credit are recorded in journal proper

(c)

Trade discount is recorded in the books of accounts

(d)

3 grace days are added while determining the due date of the bill

_____ is a statement prepared by a trader who receives back from his customer the goods sold.

(a)

Debit note

(b)

Credit note

(c)

Both

(d)

None of these

Which one of the following is not a timing difference?

(a)

Cheque deposited but not yet credited

(b)

Cheque issued but not yet presented for payment

(c)

Among directly paid into the bank

(d)

Wrong debit in the cash book

When the balance as per Cash Book is the starting point to ascertain balance as per bank statement, direct payments by bank are ____________

(a)

Added

(b)

subtracted

(c)

not adjusted

(d)

None of the above

Goods returned by Senguttuvan were taken into stock, but no entry was passed in the books. While rectifying this error, which of the following accounts should be debited?

(a)

Senguttuvan account

(b)

Sales returns account

(c)

Returns outward account

(d)

Purchases returns account

Which method shall be efficient, if repairs and maintenance cost of an asset increases as it grows older.

(a)

Straight line method

(b)

Reducing balance method

(c)

Sinking fund method

(d)

Annuity method

___________ is a non-cash item.

(a)

Depreciation

(b)

Asset

(c)

Liabilities

(d)

None of these

Deferred revenue expenditure is to be written off ___________

(a)

In the year in which the expenses are incurred

(b)

In the year in which the benefit of expenses are exhausted

(c)

Within 3 to 5 years

(d)

Within 5 to 10 years

Carriage inwards will be shown _______.

(a)

In the trading account

(b)

In the profit and loss account

(c)

On the liabilities side

(d)

On the assets side

The expenses and incomes for the full accounting period must be taken into account while preparing ______

(a)

Final accounts

(b)

Trial balance

(c)

Balance sheet

(d)

Cash book

People who write codes and programes are called as _______.

(a)

System analysts

(b)

System designers

(c)

System operators

(d)

System programmers

What is cash transaction?

How are personal accounts classified?

What is suspense account?

What is journal proper ?

What is Alternative Presentation?

Rectify the following errors discovered before the preparation of the trial balance:
(a) Sales book was undercast by Rs. 100
(b) Purchases returns book was overcast by Rs. 200

On 1.1.2017 a firm purchased a machine at a cost of Rs.1,00,000. Its life was estimated to be 10 years with a scrap value of Rs.10,000. Compute the amount of depreciation to be charged at the end of each year.

Classify the following expenses as capital or revenue.
i) The sum of Rs.3,200 has been spent on a machine as follows:
a) Rs.2,000 for additions to double the output.
b) Rs.1,200 for repairs necessitated by negligence.
ii) Overhauling expenses of Rs.25,000 for the engine of a motor car to get better fuel efficiency.

Goods worth Rs.3,00,000 were burnt by fire and claim of Rs.1,80,000 has been accepted by the insurance company. How It will be recorded in final accounts

What are mnemonic codes?

Explain the meaning of accounting.

Briefly explain the relationship among accounting, accountancy and book-keeping.

What is double entry system? State its advantages.

Explain the significance of debit and credit balances of various types of accounts.

Write a note on
(i) Bills Receivable Book
(ii) Bills Payable Book.

Enter the following transactions in a simple cash book of Kuna 

2017
Jan		Rs
1	Cash in hand	11,200
5	Received from ramesh	300
7	Pain Rent	30
8	Sold goods for cash	300
10	Paid mohan	700
27	Purchased furniture for cash	200
31	Paid salaries	100

The following errors were located by the accountant after the preparation of trial balance. There exists a suspense account. Rectify them.
(a) The total of the discount column of Rs.1,180 on the debit side of the cash book was not posted.
(b) Purchase of goods from Arivuchelvan on credit for Rs.600 was posted to the debit side of his account.
(c) The total of the discount column on the credit side of the cash book was undercast by Rs.400.
(d) The total of sales returns book of Rs.570 was posted twice.
(e) Sold goods to Mukil on credit for Rs.87 was posted to her account as Rs.78.

What are the classification of assets? (any five)

Show necessary entries to adjust the following on 31st December, 2017.
(i) Outstanding salaries Rs. 1,200
(ii) Outstanding rent Rs. 300
(iii) Prepaid insurance premium Rs. 450
(iv) Interest on investments accrued Rs. 400
(v) Bad debts written off Rs. 200

Find out from the following data, minimum collection of Rs.500 on any one day achieved by the sales counters.

Counter	Day 1 sales	Day 2 sales
Ground floor	600	600
First floor	850	300
Second floor	350	400

1. Briefly explain the functions of accounting

2. Pass journal entries in the books of Sasi Kumar who is dealing in automobiles

   2017 Oct.		Rs
   1	Commenced business with goods	40,000
   3	Cash introduced in the business	60,000
   4	Purchased goods from Arul on credit	70,000
   6	Returned goods to Arul	10,000
   10	Paid cash to Arul on account	60,000
   15	Sold goods to Chandar on credit	30,000
   18	Chandar returned goods worth	6,000
   20	Received cash from Chandar in full settlemen	23,000
   25	Paid salaries through ECS	2,000
   30	Sahil took for personal use goods worth	10,000

1. Journalise the following transactions in the books of Arun and post them to ledger accounts.

   2017 Dec		Rs.
   1	Arun started his business with cash	10,000
   3	Bought goods for cash	1,500
   8	Sold goods to Krishna on credit	4,000
   14	Purchased goods from Govind on credit	2,000
   25	Received cash from Krishna	3,000
   28	Cash paid to Govind	1,000

2. 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

1. Enter the following transactions in the sales book and sales returns book of M/s. Guhan & Sons, who is a textile dealer.

   2017May 2	Sold to MIs. Karan & Co., on credit
   	100 pieces towels @ Rs. 280 per piece
   	200 metres shirtings @ Rs. 270 per metre
   May 5	Sold to MIs. Veeran & Sons on credit
   	10 pieces ready-made dress @ Rs. 1,500per piece
   May 16	Sold to M/s. Jain & Sons on credit
   	50 blankets @ Rs. 240 each
   May 20	Damaged 10 pieces towels returned by Karan & co. and cash not paid
   May 25	Sold old furniture to MIs. Saran & Co., on credit Rs. 18,000
   May 27	Returned 2 pieces ready-made dresses by M/s. Veeran & Sons due to inferior quality and cash not paid

2. Enter the following transactions in a petty cash book of Mr. Murugan maintained on imprest system with analytical columns.

   		Particulars	Rs
   2018 Mar	15	Cash in hand	143
   		Received from the chief cashier	607
   	16	Bought stamps	25
   	17	Paid cartage	40
   	18	Tea and lunch expenses to customers	74
   	19	Telegram sent	23
   	20	Paid taxi hire	150
   	21	Purchased envelops	22
   	22	Paid for repairs of typewriter	65
   	23	Purchased one bottle of ink	12
   	27	Paid Railway fare to manager	187
   	31	Paid to coolie	20

1. 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

2. A trader received his bank statement on 31^st December, 2017 which showed an overdraft balance of Rs. 12,000. On the same day, his cash book showed a debit balance of Rs. 2,000.
   Analyse the following transactions. Choose the possible causes and prepare a bank reconciliation statement to show the causes of differences.
   (a) Cheque deposited for Rs. 2,000 on 21^st December, 2017. Bank credited the same on 26^th December, 2017.
   (b) Cheque issued for payment on 26^th December, 2017 amounting to Rs. 2,500, not yet presented until 31^st, December, 2017.
   (c) Bank charges amounting to Rs. 200 not yet entered in the cash book.
   (d) Online payment for Rs. 1,500 entered twice in the cash book.
   (e) Cheque deposited amounting to Rs. 1,000, but omitted in the cash book. The same cheque was dishonoured by bank, but not yet entered in cash book.
   (f) Cheque deposited, not yet credited by bank amounting to Rs. 17,800.

1. The following errors were located after the preparation of the trial balance. Assume that there exists a suspense account. Pass journal entries to rectify them.
   (a) The total of purchases book was undercast by Rs. 100.
   (b) The total of the discount column on the debit side of cash book Rs. 575 were not posted.
   (c) The total of one page of the sales book for Rs. 5,975 were carried forward to the next page as Rs. 5,795.
   (d) Salaries Rs. 1,800 were posted as Rs. 18,000.
   (e) Purchase of goods on credit from Mukilan for Rs. 150 have been posted to his account as Rs. 1,500.

2. A manufacturing company purchased on 1 April, 2010, a plant and machinery for Rs. 4,50,000 and spent Rs. 50,000 on its installation. After having used it for three years, it was sold for Rs. 3,85,000. Depreciation is to be provided every year at the rate of 15% per annum on the fixed instalment method. Accounts are closed on 31^st March every year. Calculate profit or loss on sale of machinery.

1. Classify the following into capital and revenue.
   i) Rs.560 spent on replacement of a worn our part of plant.
   ii) Rs.1,500 spent on complete overhauling of a second hand machinery just bought.
   iii) Carriage expenses Rs.230.
   iv) Profit on sale of asset Rs.700
   v) Rs.150 loss on sale of furniture.

2. From the Trial balance, given by Saif, prepare final accounts for the year ended 31st March 2018 in his books.

   Debit Balances	Rs	Credit Balances	Rs
   Land	40,000	Purchases returns	15,000
   Opening stock	40,000	Bill payable	7,000
   Machinery	66,000	Capital	1,50,000
   Purchases	1,30,000	Sales	2,20,000
   Wages	35,000	Creditors	60,000
   Interest paid	13,000
   Cash	2,300
   Debtors	80,000
   Bill receivable	15,000
   Office rent paid	12,700
   Furniture	3,000
   Drawings	5,000
   Sales returns	10,000
   	4,52,000		4,52,000

   Closing stock (31-12-2017) Rs. 14,500.

1. The following balances were extracted from the books of Thomas as on 31^st March, 2018

   Particulars	Rs.	Particulars	Rs.
   Purchases	75,000	Capital	60,000
   Returns inward	2,000	Creditors	30,000
   Opening stock	10,000	Sales	1,20,000
   Freight inwards	4,000	Returns outward	1,000
   Wages	2,000
   Investments	10,000
   Bank charges	1,000
   Land	30,000
   Machinery	30,000
   Building	25,000
   Cash at bank	18,000
   Cash in hand	4,000
   	2,11,000		2,11,000

   Additional information:
   (a) Closing stock Rs. 9,000
   (b) Provide depreciation @ 10% on machinery
   (c) Interest accrued on investment Rs. 2,000
   Prepare trading account, profit and loss account and balance sheet.

2. Sara Ltd., sells goods on credit basis. Their policy is to charge interest @ 2% p.a., for the period of default. From the following data, find out the amount to be collected from each customer. Assume 365 days in the year.

   Customer	Sales	Date of Sales	Period of Credit (days)	Date of Settlement
   M	25,000	10-04-2016	60	05-07-2016
   N	14,000	28-05-2016	30	25-07-2016
   P	28,000	14-07-2016	45	25-08-2016
   R	54,000	03-08-2016	90	02-01-2017