Financial position of a business is ascertained on the basis of ______.

(a)

Journal

(b)

Trial balance

(c)

Balance Sheet

(d)

Ledger

Buying of goods with an intention of resale is ________

(a)

purchases

(b)

sales

(c)

income

The concept which assumes that a business will last indefinitely is

(a)

Business Entity

(b)

Going concern

(c)

Periodicity

(d)

Conservation

'Cash withdrawn by the proprietor from the business for his personal use' causes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

Nominal account is classified under__________.

(a)

Personal A/c

(b)

Impersonal A/c

(c)

Neither of the two

If the total of the debit side of an account exceeds the total of its credit side, it means

(a)

Credit Balance

(b)

Debit Balance

(c)

Nil Balance

(d)

Debit and Credit Balance

Transferring entries from Journal to Ledger Accounts is called _____________

(a)

Casting

(b)

Posting

(c)

Journalising

(d)

Balancing

A list which contains balances of accounts to know whether the debit and credit balances are matched is _______

(a)

Journal

(b)

Day book

(c)

Trial balance

(d)

Balance sheet

Sales return book is used to record_________

(a)

Returns of goods by the customer for which cash is paid immediately

(b)

Returns of goods by the customer for which cash is not paid immediately

(c)

Returns of assets by the customer for which cash is not paid immediately

(d)

Returns of assets by the customer for which cash is paid immediately

The return of goods to a supplier should be credited to______

(a)

Supplier Account

(b)

Goods Account

(c)

Purchase Return Account

(d)

None of the above

In Triple column cash book, the balance of bank overdraft brought forward will appear in_________

(a)

Cash column debit side

(b)

Cash column credit side

(c)

Bank column debit side

(d)

Bank column credit side

A bank reconciliation statement is prepared with the help of ______.

(a)

Bank statement

(b)

Cash book

(c)

Bank statement and bank column of the cash book

(d)

Petty cash book

In cash book bank charges recorded in the___________.

(a)

Credit side

(b)

Debit side

(c)

Both a & b

(d)

None of these above

The total of purchases book was overcast. Which of the following accounts should be debited in the rectifying journal entry?

(a)

Purchases account

(b)

Suspense account

(c)

Creditor account

(d)

None of the above

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

A trader followed WDV method of depreciation; the book value of assets after 4 years is 24% of original cost. Find rate of depreciation__________.

(a)

24%

(b)

26%

(c)

32%

(d)

30%

Amount of Rs.5,000 spent as lawyer's fee to defend a suit claiming that the firm's factory site belonged to the plaintif's land is ____________

(a)

Capital expenditure

(b)

Revenue expenditure

(c)

Prepaid revenue expenditure

(d)

Revenue receipt

Drawings appearing in the trial balance is _______.

(a)

Added to the purchases

(b)

Subtracted from the purchases

(c)

Added to the capital

(d)

Subtracted from the capital

Debts which cannot be recovered or irrecoverable are called _________.

(a)

Bad debts 

(b)

Depreciation

(c)

Closing stock

(d)

Capital

TALLY is an example of _______.

(a)

Tailor-made accounting software

(b)

Ready-made accounting software

(c)

In-built accounting software

(d)

Customised accounting software

'Accounting is useful only to the owner of the business' - Do you agree?

What is accounting equation?

Mr. Ganesh an accountant of XYZ co. in order to match the trial balance passed a dummy entry without any proof of the transaction and did not even inform the senior about it. Identify the value being violated by the accountant.

What is journal proper ?

When can a bank reconciliation be prepared?

Rectify the following errors discovered after the preparation of the trial balance:
(a) Rent paid was carried forward to the next page Rs.500 short.
(b) Wages paid was carried forward Rs.250 excess.

A furniture costing Rs 5,000 was purchased on 1.1.2016, the installation charges being Rs 1,000. The furniture is to be depreciated @10% p.a. on the diminishing balance method. Pass journal entries for the first two years.

State with reasons whether the following are capital or revenue expenditure:
i. Expenses incurred in connection with obtaining a licence for starting the factory for Rs.25,000.
ii. A factory shed was constructed at a cost of Rs.2,00,000. A sum of Rs.10,000 had been incurred in the construction of temporary huts for storing building material.
iii. Overhaul expenses of second-hand machinery purchased amounted to Rs.5,000.

If depreciation reduces profits, reduces value of assets and also reduces capital of the proprietor, then why do enterprises provide for depreciation?

Give any two examples of readymade software.

Discuss briefly the branches of accounting.

Explain the Process of Accounting cycle.

State the principles of double entry system of book keeping.

Indicate the nature of normal balance in the following accounts.
(a) Cash  (b) Creditors  (c) Sales (d) Furniture   (e) Commission received (f) Debtors  (g) purchases  (h) Capital   (i) Salaries and   (j) Computer

Write the following transactions in proper subsidiary books of Mr. Rajasekaran.

2014 May 10	Purchased goods from Raman Rs. 15,000.
May 14	Returned goods to Raman Rs. 500.
May 18	Purchased goods from Sekaran Rs. 10,000.
May 20	Pradeep sold goods to us Rs. 20,000.
May 24	Sent a Debit note to Sekaran for goods damaged in transit Rs. 1,000.

Enter the following transactions in a single column cash cash book of Pradeep for April, 2017

April	Particulars	Rs
1	Commenced Bussiness with cash	27,000
5	Bought goods for cash	6,000
10	Goods sold for cash	11,000
13	Paid into bank	5,000
14	Goods sold to Sangeetha for cash	9,000
17	Goods purchased from Preethi on credit	13,000
21	Purchased stationery by cash	200
25	Paid Murugan by cash	14,000
26	Commission paid by cash	700
29	Drew from bank for office use	4,000
30	Rent paid by cheque	3,000

Rectify the following errors assuming that the trial balance is already prepared and the difference was placed to suspense account:
(a) Sales book was undercast by Rs.250
(b) Purchases book was undercast by Rs.120
(c) Sales book was overcast by Rs.130
(d) Bills receivable book was undercast by Rs.75
(e) Purchases book was overcast by Rs.35.

“Balance sheet is not an account”- Explain.

Give the adjusting entries for interest on capital and interest on drawings.

Consider the following information:
Loan amount Rs.3,00,000
Number of payment periods 48 months
Annual rate of interest 10%
Calculate periodic payment using PMT function.

1. Briefly explain the functions of accounting

2. Veena is a dealer in textiles. On January 1, 2018, her business showed the following balances: Cash in hand: Rs. 20,000; Bank balance: Rs. 70,000; Stock: Rs. 15,000 following are the transactions made during January 2018. Show the effect of the transactions on accounting equation.
   a) Purchased goods (readymade shirts) on credit from Subbu               Rs. 20,000
   (b) Goods returned to Subbu and no cash is received                           Rs. 5,000
   (c) Goods (shirts) costing Rs. 1,600 was sold to Janani on credit          Rs. 2,000
   (d) Janani returned 1 shirt of sales value                                             Rs. 500                     
   (e) Janani deposited the money due in cash deposit machine in a bank Rs. 1,500
   (f) Insurance on building paid through net banking                                Rs. 1,000 
   (g) Insurance on building paid through net banking                               Rs. 100

1. Pass journal entries for the following transactions and post them in the ledger accounts.

   2017 June   1	Basu started business with cash Rs. 50,000
   4	Purchased furniture by paying cash for Rs. 6,000
   7	Purchased machinery on credit from Harish Rs. 10,000
   10	Bought goods for cash Rs 4,000
   18	Paid insurance premium Rs 100

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

   Particulars	Rs	Particulars	Rs
   Bills receivable	13,000	Drawings	7,000
   Bank charges	750	Sundry debtors	17,100
   Conveyance charges	350	Bills payable	12,000
   Discount received	1,300	Capital	25,900
   Cash in hand	1,000

1. Enter the following transactions in the purchases returns book of Hari who is dealing in automobiles and post them into the ledger.

   2017
   Jan 5	Returned to Anand 5 clutch plates @ Rs. 200 each, not in accordance with order.
   Jan 14	Returned to Chandran 4 brake shoes @ Rs. 200 each and 10rear view mirrors @ Rs. 350 each, due to inferior quality.

2. Record the following transactions in an analytical petty cash book and balance the same. On 1^st November, 2017, the petty cashier started with imprest cash Rs.2,000.

   2017 Nov	1	Postage stamps purchased	155
   	2	Paid to sweeper and scavenger	170
   	3	Conveyance to Manager	125
   	6	Lorry hire for goods rent	260
   	7	Greeting card purchased	110
   	10	Carriage paid	70
   	11	Repairs to furniture	100
   	13	Ink and gum purchased	50
   	17	Computer servicing charges paid	250
   	20	Cleaning charges paid	120
   	22	Gave charity to beggars	40
   	23	Paid to Rammohan	80
   	25	Paid railway fare	150
   	30	Subscription paid to the Times of India	120

1. Enter the following transactions in a petty cash book of Mr. Jack with analytical columns. The petty cashier begins with an imprest amount of Rs.1,000.

   2012, June	Rs.
   4 Postage Stamps	40
   5 Travelling expenses	75
   6 Lunch expenses	150
   8 Labour charges for bringing office tables	50
   10 Repair charges to fax machine	250
   12 Postage stamps	20
   15 Cleaning the office	50
   17 Stationery purchased	175
   27 Paid to Ravi	150

2. The bank statement of Sudha and Company showed an overdraft of Rs.10,000 on 31^st December 2017, prepare a bank reconciliation statement.
   (a) A cheque deposited on 30^th December 2017 for Rs.15,000 was not credited by the bank.
   (b) Interest on term loan Rs.500 was debited by bank on 31^st December 2017 but not accounted in the books of Sudha and Company.
   (c) A cheque issued for Rs.550 on 24^th December 2017, paid by the bank was recorded as 505 in the bank column of the cash book.
   (d) One outgoing cheque on 27^th December 2017 of Rs.200·was recorded twice in the cash book.
   (e) Bank recorded a cash deposit of Rs.2,598 as Rs.2,589.
   (f) A sum of Rs.2,000 deposited in cash deposit machine by a customer of the business on 31^st December 2017 was not recorded in the books of Sudha and Company.
   (g) Interest on overdraft of Rs.600 was not recorded in the books of Sudha and Company,
   (h) Two cheques issued on 29^th December 2017 for Rs.500 and Rs 700, but only the first cheque was presented for payment before 31^st December 2017.

1. Rectify the following errors which were located before preparing the trial balance.
   (a) Wages paid Rs. 2,000 for the erection of machinery was debited to wages account.
   (b) Sales returns book was short totalled by Rs.1,000.
   (c) Goods purchased for Rs. 200 was posted as Rs. 2,000 to purchases account.
   (d) The sales book was overcast by Rs.1,500.
   (e) Cash paid to Mukil Rs. 2,800 which was debited to Akhil’s account as Rs. 2,000

2. On 1^st January 2015, a second hand machine was purchased for Rs. 58,000 and Rs. 2,000 was spent on its repairs. On 1^st July 2017, it was sold for Rs. 28,600. Prepare the machinery account for the years 2011 to 2013 under written down value method by assuming the rate of depreciation as 10% p.a. and the accounts are closed on 31^st December every year.

1. Classify the following receipts under capital and revenue.
   i) Rs.3,00,000 worth of debentures are issued for raising loan.
   ii) Rs.5,000 received as dividend from the investment on shares.
   iii) Gokul started business with Rs.4,00,000.
   iv) A machinery costing Rs.50,000 was sold for Rs.50,000.
   v) Creditors allowed discount Rs.30,000.

2. From the following information, prepare profit and loss account for the year ending 31st December 2016.

   Particulars	Rs	Particulars	Rs
   Gross loss	60,000	Printing and stationery (office)	2,000
   Promotional expenses	5,000	Legal charges	5,000
   Distribution expenses	15,000	Bad debts	1,000
   Commission paid	7,000	Depreciation	2,000
   Interest on loan paid	5,000	Rent received	4,000
   Packing charges (on sales)	4,000	Loss by fire not covered by insurance	3,000
   Dividend received	3,000

1. On preparing final accounts of Suresh, bad debt account has a balance of Rs. 800 and sundry debtors account has a balance of Rs. 16,000 of which Rs. 1,200 is to be written off as further bad debts. Pass adjusting entry for bad debts. And also show how it would appear in profit and loss account and balance sheet.

2. From the data given below
   i) Fill the address in B3 using CONCATENATE Function.
   ii) Change KAMARAJAR SALAI given in C2 as lower case in C3
   iii) Change Chennai given in D2 as upper case in D3

   	A	B	C	D	E
   1	NAME	HOUSE NO.	STREET	PLACE	PINCODE
   2	ANAND	123	KAMARAJAR SALAI	Chennai	600018