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Raghav started a real extate agency business with a cash investment of Rs. 42,000. The following business transactions have been recorded
(i) Paid 3 months advance rent for office accommodation Rs.2,520
(ii) Bought car for office Rs.25,200
(iii) Purchased office furniture Rs. 8,400.
(iv) Bought office typewriter from Comprehensive Company Rs. 3,600.
(v) Sold extra office furniture at cost to Amar for Rs. 1,200. Amar paid Rs. 720 in cash and accepted a bill at 3 months for the balance.
(vi) Veer paid the amount of the bill at maturity and Amar paid half the amount he owed to comprehensive comany.
(vii) Collected Rs. 7,200 as commission.
(viii) Paid telephone bill amounting Rs. 180.

Reduction in the book value of an asset over a period of time is called-

Why are some accounting systems called double accounting systems?

List any three advantages of borrowed funds.

Ram, a fruit seller, sold oranges and received Rs 100. He borrowed Rs 100 from his friend Shyam. Classify them as revenue and liability.

Which of the following balances will be shown in the debit column of the trial balance?

What is meant by capital receipts?

If the overdraft as per the passbook is taken as the starting point, the cheques issued but not presented are to be _____ in the bank reconciliation statement.

Which of the following are the expenses of an organisation?

Rs. 1,000 paid as rent to Krishna, the landlord, was debited to Krishan's personal account. This error is an:

A endorses a negotiable instrument in favour of B. Here

What do you mean by the Imprest System followed by business concerns for managing petty cash expenses?

ABC ltd is engaged in the manufacturing of pharmaceuticals. Following is the situation of stock of medicines as on 31st March 2018.
- Medicines in stock of value of Rs 27,00,000
- Medicines whose expiry date is in March 2018 included in the above value of Rs 27,00,000 of Rs 5,00,000
- Goods in progress i.e. medicines in process of manufacturing as on 31st March 2018 Rs 2,00,000
- Raw Material Rs 4,00,000 in godown
What shall be the value of stock on 31st March 2018?

Which of the following shall need adjustments in accounting?

The journal entry to record providing of services on credit shall be ___ .

On comparing the cash book with passbook of Naman, it is found that on 31st March 2016, the bank balance of Rs. 40,960 showed by the cash book differs from the bank balance with regard to the following:

(i) Bank charges Rs. 100 on 31st March 2016, are not entered in the cash book.

(ii) On 21st March 2016, a debtor paid Rs. 2,000 into Naman's bank account in settlement of his dues, but no entry was made in the cash book in respect of this.

(iii) Cheques totaling Rs. 12,980 were issued by Naman and duly recorded in the cash book before 31st March 2016 but had not been presented at the bank for payment up to that date.

(iv) A bill for Rs. 6,900 discounted with the bank is entered in the cash book without recording the discount charges of Rs. 800.

(v) Rs. 3,520 is entered in the cash book as paid into the bank on 31st March 2016 but not credited by the bank until the following day.

(vi) No entry has been made in the cash book to record the dishonour on 15th March, 2016 of a cheque for Rs. 650 received from Bhanu.

Prepare a reconciliation statement as on 31st March, 2016.

What will be the effect on trial balance if purchases return of Rs. 10,000 has been wrongly posted to the debit of sales return account but correctly entered in the customers account ?

The total number of ways of answering 5 objective questions, each question having four choices are

Name the parties to a promissory note.

Trial balance of Khatau did not agree. He put the difference to a suspense account and discovered the following errors.

(a) Credit sales to Manas Rs. 16,000 were recorded in the purchase book as Rs. 10,000 and posted to the debit of Manas as Rs. 1,000.

(b) Furniture purchased from Noor Rs. 6,000 was recorded through purchase book as Rs. 5,000 and posted to the debit of Noor Rs. 2,000.

(c) Goods returned to Rai Rs. 3,000 recorded in the sales book as Rs. 1,000.

(d) Old machinery sold for Rs. 2,000 to Maneesh recorded through sales book as Rs. 1,800 and posted to the credit of Manish as Rs. 1,200.

(e) Total of return inwards book Rs. 2,800 posted to purchase account.

Rectify the above errors and prepare a suspense account to ascertain the difference in trial balance.

Reliance Ltd purchased a second-hand machine for Rs 56,000 on October 1, 2001, and spent Rs 28,000 on its overhaul and installation before putting it to operation. It is expected that the machine can be sold for Rs 6,000 at the end of its useful life of 15 years. Moreover, an estimated cost of Rs 1,000 is expected to be incurred to recover the salvage value of Rs 6,000. Prepare Machine account and Provision for depreciation account for the first three years charging depreciation by fixed instalment method. Accounts are closed on December 31 st every year.

A company bought machinery for Rs. 10000 and depreciation rate is 10%. Provision for depreciation account is maintained. Which of the following is correct?

Sold goods for cash of Rs 4000 on 10% Trade discount & 10% cash discount. Posting in discount account will be?

The main purpose of preparing a bank reconciliation statement is?

Explain the accounting process with the help of a diagram.

Q53. The day on 5 March of a year is the same day on what date of the same year?

On 1st January, 2009, Nagaji Bros., purchased six machineries for Rs 15,000 each. Depreciation 10%p.a. on original cost of machines has been provided and accumulated in 'Depreciation Provision Account' on 31st December every year.

On 1st January, 2010 one machine was sold for Rs 12,500 and on 1st January, 2011, a second machine was also sold for Rs 13,000.An improved model with a cost oH 28,000 was purchased on 1st July, 2010 and the arrangement for providing depreciation was kept to be the same as for older machines. Show Machinery a/c, Provision for Depreciation a/c and Machinery Disposal a/c.

Or

Record the following transactions in the Cash Book of Ghasidas :

$\begin{array}{cccccc}2011& \text{Particulars}& \text{(Rs)}& 2011& \text{Particulars}& \text{(Rs)}\\ \text{Jan. 1}& \text{Business commenced}& & \text{Jan. 15}& \text{Paid to B}& 2,800\\ & \text{With cash}& 50,000& & \text{Discount received}& 200\\ \text{Jan. 2}& \text{Deposited into Bank}& \text{20,000}& \text{Jan. 18}& \text{Cash purchases}& 4,000\\ & \text{Cash purchases}& 5,000& \text{Jan. 20}& \text{Received from C in full}& \\ \text{Jan. 4}& \text{Wages paid}& 25& & \text{Settlement of Rs 1,000}& 950\\ \text{Jan. 6}& \text{Cash Sales}& 2,000& \text{Jan. 25}& \text{Donation given}& 10\\ & \text{Purchased goods for cash}& 10,000& \text{Jan. 26}& \text{Got Promissory Note from C}& 500\\ \text{Jan. 10}& \text{Sold goods for cash}& & \text{Jan. 27}& \text{Promissory note of C}& \\ & \text{by Cheque}& 4,000& & \text{deposited into Bank and}& \\ \text{Jan. 12}& \text{Purchased goods \& paid}& & & \text{withdrawn from Bank}& \\ & \text{By Cheque}& 3,000& & \text{for official use}& 500\\ & \text{Received from 'A'}& 590& & & \\ & \text{Discount allowed}& 10& & & \end{array}$

Q3. Consider the following statements about Insolvency and Bankruptcy Code 2016:

1. The Code highlights insolvency processes for individuals, companies and partnership firms.

2. Under IBC debtor and creditor both can start ‘recovery’ proceedings against each other.

Select the correct answer using the codes given:

The assets are recorded in the books of account in the cost at which it was bought. This is based on which concept?

What are the advantages of ready-made accounting software?

A company bought machinery for Rs. 50,000 and the salvage value at the end of 5 years is Rs. 5,000. The company charges depreciation using SLM method. Which of the following is correct?

An overstatement in the value of closing stock overstates all of the following except:

The bank has credited an interest of Rs 100 in the account. Which account shall be credited in such case?

Discounting a bill of exchange means ?

"Financial Information should be neutral & unbiased, this comes under which concept?

Which of the following will be credited in a journal, if a business purchases goods on credit?

What is the meaning of Statement of Affairs?

Which of the following is related with Money Measurement Concept ?

What do you mean by balance of an account?

The company makes a sales through Point of Sales (PoS Machine) installed in the office. Which account shall be debited to record such sale?

Which of the following errors shall be rectified by using a Suspense Account?

From the following particulars what shall be balance c/d of the Petty Cash Book under Imprest System:
Petty cash balance Rs 2000
May 2 Cheque received for Rs. 7000.
May 3 Postage paid Rs. 50.
May 6 Paid taxi hire of travelling salesman Rs. 100.
May 19 Stationary purchased Rs. 120.
May 31 Settled the balance due to Smith Rs.8000 by cheque.

When one or both aspects of a transaction are recorded in the wrong class or category of account, this is called:

What do you mean by Contingent Liability?

How will the profit of the business adjust in accounting equation?

Rishant keeps incomplete records of his business. He gives you the following information; capital at the beginning of the year Rs. 8,00,000; capital at the end of the year Rs. 6,20,000, Rs. 2,50,000 was withdrawn by him for his personal use; as Rishant needed money for expansion of his business, he asked his wife for help, his wife allowed him to sell her ornaments and invest that amount into the business which comes to Rs. 30,000.

You are required to calculate profit or loss made during the year.

In case of purchase of goods for resale, which of the following is correct?