'Cash withdrawn by the proprietor from the business for his personal use' causes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

Which one of the following is representative personal account?

(a)

Building A/c

(b)

Outstanding salary A/c

(c)

Mahesh A/c

(d)

Balan & Co

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

________ is prepared in three copies.

(a)

Debit Note

(b)

Credit Note

(c)

Receipts

(d)

Invoice

_________ is a negotiable instrument.

(a)

Cheque

(b)

Cash

(c)

Discount

(d)

Premium

Transactions relating with individuals or firms or companies are known as _______

(a)

personal accounts

(b)

real accounts

(c)

nominal accounts

(d)

capital accounts

The liabilities of a business are Rs.30,000, the Capital of the proprietor is Rs.70,000. The total assets are _____

(a)

Rs.70,000

(b)

Rs.1,00,000

(c)

Rs.40,000

(d)

Rs.50,000

The Liabilities of a firm are Rs.3,000; the capital of the proprietor is Rs.7,000. The total assets are ____________

(a)

Rs.7,000

(b)

Rs.10,000

(c)

Rs.4,000

(d)

Rs.12,000

Which one is one of these cash transactions?

(a)

Sold goods to Raghavan

(b)

Bought goods from Anand

(c)

Salaries paid

(d)

Loan borrowed from Bank

Purchased goods from Murthy on credit should be credited to _________

(a)

Murthy A/c

(b)

Cash A/c

(c)

Purchases A/c

(d)

Goods A/c

Give the golden rules of double entry accounting system.

What is meant by external liabilities?

What is Cheque?

What do the following Journal Entries mean?
Bank A/c Dr.
To Cash A/c

If a transaction has the effect of decreasing an asset, is the decrease recorded as a debit or as Credit? If the transaction has the effect of decreasing a liability, is the decrease recorded as a debit or as a credit?

Classify the following items into real, personal and nominal accounts.
a) Capital
b) Purchases
c) Goodwill
d) Copyright
e) Latha
f) State Bank of India
g) Electricity charges
h) Dividend
i) Ramesh
j) Outstanding rent

Complete the accounting equation.

(a) Assets	=	Capital + Liabilities
Rs.1,00,000	=	Rs.80,000 + ?
(b) Assets	=	Capital + Liabilities
Rs.2,00,000	=	? + Rs.40,000
(c) Assets	=	Capital + Creditors
?	=	Rs.60,000 + Rs.80,000

Supply the missing amounts on the basis of accounting equation.

Assets	=	Liabilities + Capital
Rs. 20,000	=	Rs.15,000 +  ?

Write the transactions from the Journal Entries
Cash A/c Dr.
To Bank A/c

Classify the following into personal, real and nominal accounts.
(a) Capital
(b) Building
(c) Carriage inwards
(d) Cash
(e) Commission received
(f) Bank
(g) Purchases
(h) Chandru
(i) Outstanding wages

Show the effects of the following business transactions on the accounting equation.

		Rs
i)	Anitha started business with cash Rs.20,000; goods Rs.12,000 and machine	8,000
ii)	Bought goods for cash	6,000
iii)	Sold goods costing Rs.2,000 for	2,500
iv)	Purchased goods from Ramani on credit	7,000
v)	Payment made to Ramani in full settlement	6,900
vi)	Sold goods to Rajan on credit costing Rs.5,400 for	20,000
vii)	Received from Rajan 5,800 in full settlement of his account	6,000
viii)	Salaries paid	4,000
ix)	Wages Outstanding	400
x)	Prepaid Insurance	100

Journalise the follow ing transactions in the books of Tmt. Jaya. 2016

2016 Jan		Rs
1	Tmt. Jaya commenced business with cash	50,000
2.	Purchased goods for cash	10,000
5	Purchased goods from Mohan on credit	6,000
7	Paid into Bank	5,000
10	Purchased furniture	2,000
20	Sold goods to Suresh on credit	5,000
25	Cash Sales	3,500
26	Paid to Mohan ·on account	3,000
31	Paid salaries	2,800

Indicate how assets, liabilities and capital are affected by each of the following transactions with an accounting equation.
(i) Purchased goods on credit for Rs. 25,000.
(ii) Rent paid Rs. 2,000.
(iii) Commission received Rs. 500.