The root of financial accounting system is ______.

(a)

Social accounting

(b)

Stewardship accounting

(c)

Management accounting

(d)

Responsibility accounting

Accounting is not a modern concept and it is as old as _____________

(a)

money

(b)

goods

(c)

services

(d)

all of these

All the business transactions are recorded in the book of _______________

(a)

accounts

(b)

book keeping

(c)

transactions

(d)

none of these

The famous book "Arthasastra" was written by ___________

(a)

Kautilya

(b)

Chandrakupta

(c)

Luco Pacioli

(d)

Batlibai

The profounder of double entry system of book-keeping is ___________

(a)

J. R. Batlibai

(b)

Luca Pacioli

(c)

Old Kesal

(d)

Menhar

___________ involves recording business transactions of financial nature in the books of accounts.

(a)

Balance Sheet

(b)

Trial balance

(c)

book keeping

(d)

All the above

ASB was constituted in India in the year of __________.

(a)

1977

(b)

1978

(c)

1979

(d)

1976

A firm has assets of Rs.1,00,000 and the external liabilities of Rs.60,000. Its capital would be  

(a)

Rs.1,60,000

(b)

Rs.60,000

(c)

Rs.1,00,000

(d)

Rs.40,000

In double entry system of book keeping, every business transaction affects  

(a)

Minimum of two accounts

(b)

Same account on two different dates

(c)

Two sides of the same account

(d)

Minimum three accounts

Goodwill is an example of ________

(a)

tangible real A/c

(b)

intangible real A/c

(c)

nominal A/c

(d)

none of these

Received cash for Bad debts written off last year is credited to ____

(a)

Bad debts A/c

(b)

Bad debts recovered A/c

(c)

Cash A/c

(d)

Debtors A/c

Real accounts always show _________________

(a)

debit balances

(b)

credit balances

(c)

both 'a' and 'b'

(d)

none of these

Entry in which more than one transactions are recorded is called _______________

(a)

compound entry

(b)

single entry

(c)

double entry

(d)

journal entry

Trial balance is a_____

(a)

Statement

(b)

Account

(c)

Ledger

(d)

Journal

Days of grace are _____ in number.

(a)

three

(b)

four

(c)

five

(d)

nine

The year of Negotiable Instrument Act is _____

(a)

1981

(b)

1881

(c)

1851

(d)

1956

On 1^st January, 2018, Kumar draws a bill on Ramar for 3 months, its due date is _________

(a)

4^th April, 2018

(b)

1^st April, 2018

(c)

31^st March, 2018

(d)

1^st March, 2018

If the debit and credit aspects of a transaction are recorded in the cash book, it is ______.

(a)

Contra entry

(b)

Compound entry

(c)

Single entry

(d)

Simple entry

On Jan 1^st 2015, 1,000 given to petty cashier. He has spent Rs. 860 during the month of January. On Feb 1^st to make the imprest he will receive the cheque for ________

(a)

1,000

(b)

860

(c)

1,860

(d)

960

Balance as per bank statement is Rs. 1,000. Cheque deposited, but not yet credited by the bank is Rs. 2,000. What is the balance as per bank column of the cash book?

(a)

Rs. 3,000 overdraft

(b)

Rs. 3,000 favourable

(c)

Rs. 1,000 overdraft

(d)

Rs. 1,000 favourable

Define accounting.

Does every businessman need accounting knowledge?

The firm of M/s. Long and Short has the following ledger balances on 1^st April 2014.

	Rs
Cash	20,000
Debtors	20,000
Stock	30,000
Creditors	16,000
Building	60,000
Capital	?

Pass the opening journal entry and find the capital?

Write the transaction for following Journal entries.
a) Purchases A/c Dr.
             To Bank
b) Drawings A/c   Dr.
             To Purchases A/c

Complete the missing items.

	Assets Rs=	Liabilities Rs+	Capital Rs
(a)	30,000	20,000	?
(b)	60,000	25,000	?
(c)	?	25,000	30,000
(d)	?	10,000	80,000
(e)	25,000	?	15,000
(f)	40,000	?	30,000

Mention four types of subsidiary books.

Define bill of exchange.

What is days of grace?

What is cash discount?

Define Trial balance.

Discuss in detail the importance of accounting

"Only monetary transactions are recorded in accounting". Explain the statement.

Fill in the missing information in the following journal entries:

Date	Particluar	L.F	Debit Rs	Credit Rs
	..........A/c  Dr		..........
	To ........... A/c			.............
	(Goods purchases for cash Rs.20,000)
	..................A/c      Dr		...........
	.................A/c      Dr		...........
	To Niha A/c
	(Received Rs 18,800 from in full settlement of the due Rs 19,000)

Distinguish between journal and ledger.

What are the difference between Cash Discount and Trade Discount?

From the following information, prepare bank reconciliation statement to find out balance as per bank statement on 31^st March 2017.

	Particulars	Rs
(i)	Cheques deposited but not yet collected by the bank	500
(ii)	Cheque issued but not yet presented for payment	1,000
(iii)	Bank interest charged	100
(iv)	Rent paid by bank as per standing instruction	200
(v)	Cash book balance	300

The following balances extracted from the books of Mr. Murali, as on 30.03.2016. Prepare trial balance.

	Rs		Rs
Sales	35,000	Audit Fees	1,000
Interest paid	350	Octroi duty	8,000
Returns inward	2,500	Land	90,000
Depreciation	2,400	Capital	60,000
Office rent	2,000	Bank overdraft	11,250

Prepare a double column cash book from the following transactions of Mr. Gopalan.

	Particulars	Rs.
2017 July 1	Cash in hand	4,000
6	Cash purchases	2,000
10	Wages paid	40
11	Cash Sales	6,000
12	Cash received from Suresh and allowed him discount	1,980
19	Cash paid to Meena and discount received	20
27	Cash paid to Radha	2,470
28	Purchased goods for cash	2,070

Point out the nature of the following Accounts.
a) Capital A/c;
b) Drawings A/c;
c) Machinery A/c;
d) Purchases A/c;
e) Wages A/c;
f) Bank A/c;
g) Outstanding rent A/c
h) Prepaid insurance A/c;
i) Bad debts A/c

Prepare cash account from the following transactions for the month of January 2018. (Direct Ledger Posting)

Jan 1	Commenced business with cash Rs. 62,000
3	Goods purchased for cash Rs. 12,000
10	Goods sold for cash Rs. 10,000
12	Wages paid Rs. 4,000
25	Furniture purchased for cash Rs. 6,000

1. Show the direct ledger postings for the following transactions:

   2016 July
   1	Shankar commenced business with a cash Rs. 1,00,000
   5	Sold goods for cash Rs. 10,000
   9	Wages paid Rs. 6,000
   19	Salaries paid Rs. 8000
   20	Advertisement expenses paid Rs. 4,000

2. Journalise the following transactions and post them to ledger in the books of Raja.

   2018 Mar		Rs.
   1	Sold goods to Senthil for cash	9,000
   5	Sold goods to Murali on credit	4,500
   9	Cash sales	6,000
   18	Bought goods from Mani on credit	3,200
   23	Received Rs.4,000 from Murali in full settlement of his account

1. Prepare accounting equation for the following transactions.
   (a) Murugan commenced business with cash Rs.80,000
   (b) Purchased goods for cash Rs.30,000
   (c) Paid salaries by cash Rs.5,000
   (d) Bought goods from Kumar for Rs.5,000 and deposited the money in CDM.
   (e) Introduced additional capital of Rs.10,000

2. Prepare accounting equation and balance, sheet on the basis of the following.

   		Rs.
   (i)	Pallavan started business with cash	60,000
   (ii)	He purchased furniture	10,000
   (iii)	He paid rent	2,000
   (iv)	He purchased goodson credit from Mr.Mahendran	30,000
   (v)	He sold goods (cost price f 20,000) for cash	25,000

1. Journalise the following transactions of Mrs. Radha

   2017 Jan		Rs
   1	Mrs. Radha commenced Business with cash	30,000
   2	Paid into bank	21,000
   3	Purchased goods by cheque	15,000
   7	Drew cash from bank for office use	3,000
   15	Purchased goods from Siva	15,000
   20	Cash sales	30,000
   25	Paid to Siva	14,750
   	Discount Received	250
   31	Paid rent	500
   	Paid Salaries	2,000

2. Mary is a rice dealer having business for more than 5 years. Pass journal entries in her books for the period of March, 2018.

   March		Rs
   1	Cement bags bought on credit form Sibi	20,000
   2	Electricity charges paid through net banking	500
   3	Returned goods bought form Sibi	5000
   4	Cement bags taken for personal use	1,000
   5	Advertisement expenses paid	2,000
   6	Goods sold to Mano	20,000
   7	Goods returned by Mano	5,000
   8	Payment received from Mano through NEFT

1. Prepare the trial balance from the following balances of Karthik as on 31^st March, 2017.

   	Rs		Rs
   Rent and Taxes	5,000	Rent	6,000
   Discount allowed	350	General expenses	3,000
   Capital	10,000	Legal expenses	2,000
   Insurance premium	4,000	Purchases	40,000
   Drawings	5,000	Sales	55,350

2. Mary runs a textile store. She has prepared the following trial balance from her ledger balances. Her trial balance does not tally. She needs your help to check whether what she has done is correct.

   S.No.	Name of the account	L.F.	Debit Balance Rs	Credit Balance Rs
   1.	Capital		50,000
   2.	Discount received			3,000
   3.	Rent paid			15,000
   4.	Salaries Paid		1,000
   5.	Purchases of textiles			20,000
   6.	Sale of textiles			30,000
   7.	Salesmen commission paid			9,000
   8.	Transport charges paid		6,000
   9.	Cash balance		32,000
   			89,000	77,000

1. From the following particulars of Raheem traders, prepare a bank reconciliation statement as on 31^st March, 2018.
   (a) Overdraft as per cash book Rs. 2,500 On the same day the balance as per bank statement is Rs. 1,99,000.
   (b) Interest on debentures of Rs. 700 was received by the bank directly.
   (c) Amount received by bank through RTGS amounting to 2,00,000, omitted in the cash book.
   (d) Two cheques issued for Rs. 1,800 and Rs.2,000 on 29^th March 2018. Only the second cheque is presented for payment.
   (e) Insurance premium on car for Rs. 1,000 paid by the bank as per standing instruction not recorded in the cash book.

2. Prepare a bank reconciliation statement of Mr. Gowtham from the following data as on 31.12.2017.
   a) Balance as per cash book Rs. 12,500
   b) Cheques issued but not presented for payment Rs. 900
   c) Cheques deposited in bank but not collected Rs.1,200
   d) Bank paid Insurance premium Rs. 500
   e) Direct deposit by a customer Rs. 800
   f) Interest on investment collected by bank Rs. 200
   g) Bank charges Rs. 100

1. From the following information, prepare purchase day book and purchases returns book for the month of June 2017 and post them into ledger accounts in the books of Robert Furniture Mart.

   2017 June 1	Purchased from Balu Traders 20 chairs @ Rs. 150 each on credit
   June 13	Bought from Sub ash @ Co., on credit
   	2 Almirah @ Rs. 3,100 each
   	10 tables @ Rs. 1,500 each
   	15 chairs @ Rs. 200 each
   	Less: 10 % Trade discount on all items
   	Add: Freight charges Rs. 220
   June 21	Returned 2 damaged chairs to Balu Traders and cash not received
   June 24	Purchased from Sunrise Furniture Mart on credit
   	25 Almirahs @ Rs. 1,300 each
   June 27	Purchased from Mouli Traders on credit
   	10 executive tables @ Rs. 3,275 each
   June 29	Returned 3 Almirahs to Sunrise Furniture Mart and cash not received

2. Record the following transactions in the sales book and sales returns book of M/s. Ponni & Co., and post them to ledger.

   2017 Aug 1	Sold goods to Senthil as per Invoice No. 68 for Rs. 20,500 on credit
   Aug 4	Sold goods to Madhavan as per Invoice No. 74 for Rs. 12,800 on credit
   Aug 7	Sold goods to Kanagasabai as per Invoice No. 78 for Rs. 7,500 on credit
   Aug 15	Returns inward by Senthil as per Credit Note no. 7 for Rs. 1,500 for which cash is not paid
   Aug 20	Sold goods to Selvam for Rs. 13,300 for cash
   Aug 25	Sales returns of Rs. 1,800 by Madhavan as per Credit Note No. 11 for which cash is not paid

1. 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

2. Prepare three column cash book of Mr. Raghavan from the following transactions and balance the cash book on 30^th June 2017.

   	Particulars
   2017 June 1	Cash in hand Rs. 50,000
   	Bank overdraft Rs. 15,000
   3	Paid into Bank Rs. 25,000.
   5	Parthiban settled his account for Rs. 3,750, by giving a cheque for Rs. 3,690
   8	Parthiban's cheque sent to bank for collection
   10	Cash withdrawn from bank Rs. 8,000
   14	Parthiban's cheque returned dishoIioured
   15	Received from Ramesh a Currency note for Rs. 5,000 and gave him a Change for its.
   18	Paid Rent Rs. 500
   20	Bank Charges as per Pass book Rs. 150.
   30	Deposited into bank all Cash in Excess of Rs. 5,000.