The incorrect accounting equation 

(a)

Assets = Liabilities + Capital

(b)

Assets = Capital + Liabilities

(c)

Liabilities = Assets + Capital

(d)

Capital = Assets - Liabilities

Accounting equation is formed based on the accounting principle of

(a)

Dual aspect

(b)

Consistency

(c)

Going concern

(d)

Accrual

Real account deals with  

(a)

Individual persons

(b)

Expenses and losses

(c)

Assets

(d)

Incomes and gains

With drawal of cash from business by the proprietor should be credited to 

(a)

Drawings A/c

(b)

Cash A/c

(c)

Capital A/c

(d)

Purchases A/c

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

____________ are recorded as and when they take place with the written and authentic proof.

(a)

Accounting equations

(b)

Transactions

(c)

Accountants

(d)

Book keeping

______ is used for credit purchases and credit sales.

(a)

Cash Receipt

(b)

Debit Note

(c)

Invoice

(d)

Credit Note

________ is prepared in three copies.

(a)

Debit Note

(b)

Credit Note

(c)

Receipts

(d)

Invoice

_______ is prepared in duplicate and the original is sent to the seller.

(a)

Debit Note

(b)

Credit Note

(c)

Pay-in-slip

(d)

None of these

A debit note is called as _______

(a)

debit memo

(b)

credit memo

(c)

pay-in-slip

(d)

receipts

What is meant by journalising?

What is real account?

How are personal accounts classified?

State the accounting rule for nominal account

What do you mean by Invoice?

Give the meaning of credit note

Write a brief note on accounting equation approach of recording transactions.

What is an Account? Classify the accounts with suitable examples.

What is the accounting treatment for insurance premium paid on the life of the proprietor?

State the principles of double entry system of book keeping.

State the different approaches in recording business transactions.

Indicate how assets, liabilities and capital are affected by each of the following transactions with an accounting equation.
i) Purchase of machinery for cash  Rs.3,00,000
ii) Receipt of cash from a debtor  Rs.50,000
iii) Cash payment of a creditor  Rs.30,000

Create accounting equation on the basis of the following transactions:
(i) Opening balance on pt January, 2018 cash Rs.20,000; stock Rs.50,000 and bank Rs.80,000
(ii) Bought goods from Suresh Rs.10,000 on credit
(iii) Bank charges Rs.500
(iv) Paid Suresh Rs.9,700 through credit card in full settlement.
(v) Goods purchased on credit from Philip for Rs.15,000
(vi) Goods returned to Philip amounting to Rs.4,000

Karthick opened a provisions store on pt April, 2017. Journalise the following transactions in his books:

2017 April		Rs
1	Paid into bank for opening a current account	2,00,000
3	Goods purchased by cheque	40,000
5	Investments made in securities	40,000
6	Goods sold to Radha for Rs.20,000 and cheque received and deposited into bank
7	Amount withdrawn from bank for office use	15,000
10	Purchased goods from Kamala and cash deposited in CDM	10,000
12	Sold goods to Vanitha who paid through debit card	10,000
15	Interest on securities directly received by the bank	1,000
20	Insurance paid by the bank as per standing instructions	2,000
25	Sales made to Kunal who made payment through CDM	6,000