Who is considered to be the internal user of the financial information?

(a)

Creditor

(b)

Employee

(c)

Cutomer

(d)

Government

Withdrawn from the business by the owner for the personal use is called _______.

(a)

Capital 

(b)

Darwings

(c)

Purchases

(d)

Sales

The business is liable to the proprietor of the business in respect of capital introduced by the person according to

(a)

Money measurement concept

(b)

Cost concept

(c)

Business entity concept

(d)

Dual aspect concept

The incorrect accounting equation 

(a)

Assets = Liabilities + Capital

(b)

Assets = Capital + Liabilities

(c)

Liabilities = Assets + Capital

(d)

Capital = Assets - Liabilities

Rent outstanding is _________

(a)

Nominal A/c

(b)

Personal A/c

(c)

Real A/c

(d)

Representative Personal A/c

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

Cash received from Madhan is to be posted to his account on ________________

(a)

credit Side

(b)

debit side

(c)

both side

(d)

no side

Which of the following is/are the objective(s) of preparing trial balance?

(a)

Serving as the summary of all the ledger accounts

(b)

Helping in the preparation of final accounts

(c)

Examining arithmetical accuracy of accounts

(d)

a, b and c

Sales book is used to record_____

(a)

all sales of goods

(b)

all credit sales of assets

(c)

all credit sales of goods

(d)

all sales of assets and goods

______ is one of the most important books, in which credit purchases of goods are recorded.

(a)

Purchase book

(b)

Sales book

(c)

Purchases returns book

(d)

None of these

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

Credit balance in the bank column of the cash book means

(a)

Credit balance as per bank statement

(b)

Debit  balance as per bank statement

(c)

overdraft as per cash book

(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

Under straight line method, the amount of depreciation is ____.

(a)

Increasing every year

(b)

Decreasing every year

(c)

Constant for all the years

(d)

Fluctuating every year

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%

Small repair charges incurred on a building is a ___________

(a)

Revenue expenditure

(b)

Capital expenditure

(c)

Deferred revenue expenditure

(d)

Prepaid Revenue expenditure

Goodwill is classified as _______.

(a)

A current asset

(b)

A liquid asset

(c)

A tangible asset

(d)

An intangible asset

The Profit and loss account shows ______

(a)

Financial position of the concern

(b)

Net profit or Net loss

(c)

Gross Profit or Gross Loss

(d)

Balance sheet

In accounting, computer is commonly used in the following areas:

(a)

Recording of business transactions

(b)

Payroll accounting

(c)

Stores accounting

(d)

All the above

Define sales.

How are personal accounts classified?

Prepare a trial balance with the following information:

	Rs		Rs
Purchases	2,00,000	Sales	3,00,000
Bank loan	1,50,000	Creditors	1,00,000
Debtors	3,00,000	Cash	1,80,000
Stock	70,000	Capital	2,00,000

What is sales returns book?

When bank column of a cash book shows a debit balance, what does it means?

The following errors were detected before the preparation of trial balance. Rectify them.
(a) Sales book is undercast by Rs. 100
(b) Sales book is overcast by Rs. 200
(c) Purchases book is undercast by Rs. 300
(d) Purchases book is overcast by Rs. 400

Give the formula to find out the amount and rate of depreciation under straight line method of depreciatio

Write a short note on revenue receipt.

What is Bad debts?

What is meant by software?

Explain the meaning of accounting.

What are advantages of book-keeping?

Show the accounting equation on the basis of the following transactions:
i) Ramya started business with Cash   Rs.25,000
ii) Purchases goods from Harsha   Rs.20,000
iii) Sold goods to Amala costing Rs.18,000    Rs.25,000
iv) Ramya withdrew from business   Rs.5,000

What are the steps in posting?

What are the difference between Cash Discount and Trade Discount?

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

What are the errors disclosed by a trial balance?

The following Balances are taken from the books of M/s. Riya Ltd. Prepar Profit and Loss Account for the year ended 31^st march 2005.

Particulars	Rs.	Particulars	Rs.
Gross profit	5,25,000	Salaries & Wages	1,00,000
Rent	10,000	Depreciation	5,000
Interest on Loan	5,000	Office expenses	1,500
Distribution Charges	2,500	Salesman salary	8,000
Bad debts	2,200	Stationery and printing	500
Commission received	3,000	Discount received	2,000
Interest received	5,000	Advertising	9,000
Taxes and Insurance	2,000

Pass adjusting entries for the following on 31st March, 2018.
(i) Charge interest on drawings at Rs. 50
(ii) Write off bad debts by Rs. 500
(iii) Depreciate furniture by Rs. 1,000

Following is the list of students and percentage of marks obtained by them. If a student has secured a minimum of 50%, he is declared pass, else fail.

Student	Percentage of marks
1	59
2	60
3	65
4	45
5	35

1. Describe the informational needs of external users

2. 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

1. The following balances appeared in the books of Kumaran on April 1, 2017.
   Assets: Cash Rs. 1,00,000; Stock Rs. 40,000; Amount due from Rohit Rs. 10,000;
   Furniture Rs. 10,000; Liabilities: Amount due to Anush Rs. 40,000;
   Kumaran's capital Rs. 1,20,000
   Find the capital and show the ledger posting for the above opening balances.

2. From the following balances, prepare trial balance of Baskar as on 31^st March, 2017. Transfer the difference, if any, to suspense account.

   	Rs		Rs
   Opening stock	40,000	Carriage inwards	16,500
   Capital	90,000	Bills receivable	20,000
   Sales	1,77,200	Commission received	5,550
   Salaries	12,000	Cash at bank	17,000
   Bills payable	9,450	Furniture	19,000
   Telephone charges	2,350	Plant & Machinery	55,800
   Creditors	16,000	Repairs	550
   Purchases	85,000
   Debtors	25,000

1. From the following transactions write up the Sales day book of M/s. Ram & Co., a stationery merchant.

   2017 Jan. 1	Sold toAnbu & Co., on credit 20 reams of white paper @ Rs. 150 per ream
   Jan. 2	Sold to Jagadish & Sons on credit 6 dozen pens @ Rs. 360 per dozen
   Jan. 10	Sold old newspapers for cash @ Rs. 620
   Jan. 15	Sold on credit MIs. Elango & Co., 10 drawing boards @ Rs. 170 per piece
   Jan. 20	Sold to Kani & Co., 4 writing tables at Rs. 1,520 per table for cash

2. Enter the following transactions in Ahamed's cash book with discount and cash columns.

   	Particulars	Rs
   2017 Oct 1	Cash balance	37,500
   3	Cash Sales	33,000
   7	Paid to Velan Rs 15,850 and Discount allowed by him	150
   13	Sold goods to Perumal on Credit	19,200
   15	Cash withdrawn for personal expenses	4,800
   16	Purchased goods from Subramanian	14,300
   22	Paid to Bank	22,700
   25	Cash received from Perumal in full settlement	19,000
   26	Draw a cheque for office use	17,500
   27	Paid cash to Gopalakrishnan	2,950
   	Discount received from him	50
   28	Paid cash to Subramanian and settled his account	14,200
   29	Cash purchases	13,500
   30	Cash paid for advertising	1,500

1. 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.

2. From the following particulars of Simon traders, prepare a bank reconciliation statement as on 31^st March,  2018.
   (a) Debit balance as per bank statement Rs. 2,500
   (b) Cheques deposited amounting to Rs. 10,000, not yet credited by bank.
   (c) Payment through net banking for Rs. 2,000, omitted in the cash book.

1. The accountant of a firm located the following errors before preparing the trial balance. Rectify them.
   (a) Machinery purchased for Rs.3,000 was debited to purchases account.
   (b) Interest received Rs.200 was credited to commission account.
   (c) An amount of Rs.1,000 paid to Tamilselvan as salary was debited to his personal account.
   (d) Old furniture sold for Rs.300 was credited to sales account.
   (e) Goods worth Rs.800 purchased from Soundarapandian on credit was not recorded in the books of accounts.

2. A company purchased machinery costing Rs. 90,000 on January 1, 2015 and spent Rs. 10,000 on its erection. On July 1, 2017, the machinery was sold for Rs. 58,000. The company writes off depreciation at 20% p.a. underwritten down value method. Prepare machinery account. The books 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. Prepare trading and profit and loss account and balance sheet in the books of Deri, a trader, from the following balances as on March 31, 2018.

   Debit Balances	Rs	Credit Balances	Rs
   Stock	10,000	Sales	1,22,500
   Cash	2,500	Creditors	5,000
   Bank	5,000	Bills payable	2,000
   Freight inwards	750	Capital	1,00,000
   Purchases	95,000
   Drawings	4,500
   Wages	27,500
   Machinery	50,000
   Debtors	13,500
   Postage (office)	150
   Sundry expenses	850
   Rent paid	2,500
   Furniture	17,250
   	2,29,500		2,29,500

   Closing stock (31st March, 2018) Rs. 8,000.

1. Prepare trading account from the following ledger balances presented by P. Sen as on 31st March 2016.

   Particulars	Rs.	Particulars	Rs.
   Stock (1-4-2015)	10,000	Sales	3,00,000
   Purchases	1,60,000	Returns inward	16,000
   Wages	30,000	Returns outward	10,000
   Carriage inwards	10,000	Gas and Fuel	8,000
   Freight inwards	8,000

   Additional information:
   (a) Stock on 31st March, 2016 Rs. 20,000
   (b) Outstanding wages amounted to Rs. 4,000
   (c) Gas and fuel was paid in advance for Rs. 1,000.

2. Prepare payroll of the following employees.

   	A	B
   1	Name	Basic pay(Rs.)
   2	Sasi	8000
   3	Hari	10000
   4	Karthi	6500
   5	Viji	12000
   6	Soni	9000

   Additional information:
   a. DA: 125% of basic pay
   b. HRA: Rs.4,000 for employees basic pay greater than Rs.8,000, for others Rs.2,500.
   c. PF Contribution: 12% of basic pay and DA
   d. TDS: 10% for Gross pay greater than Rs.25,000, otherwise NIL.