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1001.

Prepare an AccountingEquation from the following : (i) Started business with cash ₹50,000 andgoods ₹30,000. (ii)Purchased goodcash ₹30,000 and on credit from Karan ₹20,000. (iii)Goodscosting₹40,000 were soldfor ₹55,000. ltBRgt (IV)Withdrew cashfor presonaluse ₹10,000 (v) Rentoutstading₹2,000.

Answer»


ANSWER :ASSETS: Cash ₹ 65,00 + Stock ₹ 40,000 = Liabilities: OUTSTANDING Rent₹ 2,000 + CREDITORS ₹ 20,000 + CAPITAL: ₹ 83,000
Discussion
1002.

Preparean AccordingEquationand Blancesheetof thefollowingbasise: (i) Ajeetstarted business withcash ₹20,000. (ii) He Purchased furniture for ₹2,000. (iii)He pid rent of ₹ 200. (iv) He purchased goods on credit ₹3,000. (v) He soldgoods (cost price ₹2,000) for ₹5,000 on cah.

Answer»


ANSWER :ASSETS: CASH ₹ 22,800 + FURNITURE ₹ 2,000 + Stock₹ 1,000 =Liabilities CREDITORS ₹ 3,000 + Capital₹22,800.
Discussion
1003.

Prepare accounting equation on the basis of the following : (a) Harsha started business with cash 2,00,000m (b) Purchased goods from Naman for cash 40,000 (c)Sold goods to Bhanu costing 10,000/- 12,000 (d) Bought furniture on credit 7,000

Answer»

HARSHA started BUSINESS with cash 2,00,000
Purchased goods from Naman for cash 40000
Sold goods to Bhanu costing 10,000/-12000
Bought furniture on credit 7000

Solution :ASSET = cash1,60,000 + Goods30,000 + Debtors12,000 +Furniture7,000 =2,09,000, Liabilities = CREDITORS 7,000 + Capital 2,02,000 =2,09,000
Discussion
1004.

PrepareAccounting Equation of the followingtransacitions andalos theBalance sheet.

Answer»

SOLUTION :
Discussion
1005.

PrepareAccounting Equationfrom the following " (a) Started business withcash ₹1,00,000. ltbgt rgt(b) Purchased goods for cash₹20,000 andon credit ₹30,000. (c)Sold goodsfor cash₹10,000 and on creditcosting₹15,000 both at the profitof20%. (d) Paid salaries ₹8,000.

Answer»


Answer :CAPITAL ₹ 97,000 + LIABILITIES : Cresditors ₹ 30,000 = Assets : CASH ₹84,000 + Stock ₹25,000 + DEBTORS ₹ 18,000
Discussion
1006.

PrepareAccounting Equation of the followingtransacitions andalos theBalance sheet.

Answer»

SOLUTION :
Discussion
1007.

PrepareAccounting Equationfrom the following " (a) Started business withcash ₹1,00,000. ltbgt rgt(b) Purchased goods for cash₹20,000 andon credit ₹30,000. (c)Sold goodsfor cash₹10,000 and on creditcosting₹15,000 both at the profitof20%. (d) Paid salaries ₹8,000.

Answer»


Answer :CAPITAL ₹ 97,000 + Liabilities : Cresditors ₹ 30,000 = Assets : Cash ₹84,000 + STOCK ₹25,000 + DEBTORS ₹ 18,000
Discussion
1008.

Prepare accounting equation from the following: (a) Kunal started business with cash 2,50000 (b) He purchased furniture for cash 35,000 (c) He paid c (d) He purchases goods on credit40,000 (e) He sold goods (Costing 20,000) for cash 26,000

Answer»

SOLUTION :Asset = Cash2,39,000 + FURNITURE 35,000 + GOODS 20,000 = 2,94,000, Liabilities = Creditors 40,000 + CAPITAL 2,54,000= 2,94,000
Discussion
1009.

Prepare a Trial Balance with the following information :

Answer»


Solution :Note: For Delhi 2011, figures given above have been reduced to half, HENCE the Total of the TRIAL BALANCE will be Rs. 3,75,000, in that SITUATION.
Discussion
1010.

Prepare a Trial Balance from the following items:

Answer»


ANSWER :TRIAL BALANCE TOTAL - RS. 47,820
Discussion
1011.

Prepare a Trial Balance as on 31st March, 2019 from the following Ledger balances of Subrata Mukherjee:

Answer»

SOLUTION :
Discussion
1012.

Preparation of a Trial Balance is

Answer»

COMPULSORY.
OPTIONAL.
compulsory or optional.
NONE of these.

Answer :B
Discussion
1013.

Prepar Trading Account from the transactions given below: Also pass the Journal entries

Answer»


SOLUTION :DEPRECIATION is not ACCOUNTED in the TRADING ACCOUNT
Discussion
1014.

Prepaid wages Rs. 2,500 appears in a Trial Balance .It will be shown in _______

Answer»


SOLUTION :BALANCE SHEET
Discussion
1015.

Preparation of Trial Balance is

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COMPULSORY
OPTIONAL
compulsory of optional
NONE of these

SOLUTION :optional
Discussion
1016.

Prepaid Insurance in the Trial Balance is shown in shown in the Balance Sheet on the assets side because of ___________

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SOLUTION :ACCRUAL CONCEPT
Discussion
1017.

Prepaid Rent appearing in the Trial Balance is transferred to _______

Answer»


SOLUTION :BALANCE SHEET
Discussion
1018.

Prepaid rent appearing in the Trial Balance is taken only to the Profit and Loss Account.

Answer»


SOLUTION : FALSE
Discussion
1019.

Prepaid Insurance appearing in the Trial Balance is shown in the Balance Sheet on the assets side because of

Answer»

Accrual CONCEPT
MATCHING PRINCIPLE
MATERIALITY Principle
Cost Principle

Solution :NA
Discussion
1020.

Prepaid expenses are _________ of the business.

Answer»


SOLUTION :ASSETS.
Discussion
1021.

Prepaid expenses are assets of the business.Is it correct ?

Answer»


SOLUTION :YES
Discussion
1022.

Prepaid expense is expense

Answer»

PAID in ADVANCE
STILL to be paid.
Both (a) and (B)
NONE of these

Solution :Paid in advance
Discussion
1023.

Prepaid Expansese are deducted from the expense because of

Answer»

Revenue Recognition CONCEPT .
ACCRUAL Concept
MATCHING concept
PRUDENCE Concept

Solution :NA
Discussion
1024.

Prepaid expanses, if given outside the trial Balance is shown in

Answer»

TRADING ACCOUNT, as a deduction form the expense.
PROFIT and LOSS account, as deduction form the expense.
Profit and loss account, as deduction from the expense and in the BALANCE sheet, as an asset.
Balance sheet

Solution :NA
Discussion
1025.

Prepaid Expanses, if given in the Trial Balance is shown in .

Answer»

Trading ACCOUNT, as DEDUCTION from the expense.
Profit and loss account, as deduction form the expense.
Profit and loss Account , as deduction from the expense and in the balance SHEET, as an ASSET.
Balance sheet

Solution :Balance sheet
Discussion
1026.

Prepaid Expanses are

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EXPENSES Payable
Expenses paid in ADVANCE
Can be both (a) and (B)
none of these.

Solution :NA
Discussion
1027.

Prashad keeps his books on Single Entry System Entry Systme. From the following information given by him, ascertain his profit or loss for the year ended 31st March, 2019: On 31st March, 2018 his position was: Plant and Machinery Rs. 30,000, Stock Rs. 5,000, Cash in Hand Rs. 100, Debtors Rs. 17,000, Loan from Anish Rs. 1,000 at 4% p.a interest, Bank Overdraft Rs. 1,100 and Creditors Rs. 12,120 On 31st March, 2019 he owed to his creditors Rs. 9,170 and had paid to Anish Rs. 500 in lieu of his loan on 1st October, 2018 but had paid no interest. He had bought additional plant and Machineary which costed Rs. 13,000. Debtors were Rs. 23,000 out of which Rs. 900 he would not be able to collect. The Cash and Bank Balance was Rs. 4,100. Stock at the end was valued at Rs. 4,500. Prashad withdrew Rs. 8,300 for domestic purposes. He introduced a further capital of Rs. 10,000 during the year.

Answer»

SOLUTION :
Discussion
1028.

Petty cash Receipts are recorded in

Answer»

petty CASH BOOK
JOURNAL proper
cash book
None of these

SOLUTION :cash book
Discussion
1029.

Perpare an AccountingEquationon the following transactions :(i) Started business with cash ₹ 70,000. (ii) Credit purchase of goods ₹ 18,000. (iii) Paymentmade tocrediorsin full settlement ₹17,500. (iv) Purchaseof machinery for cash₹ 20,000. (v) Depreciationon machinery ₹ 2,000.

Answer»


Answer :ASSETS : Cash₹ 32,500 + Stock 18,000 + MACHINERY ₹ 18,000 = LIABILITES:Nil+ CAPITAL : ₹ 51, 000.
Discussion
1030.

Petty cash Book will have a

Answer»

CREDIT BALANCE
DEBIT balance
debit or NIL balance
credit on nil balance.

Solution :debit or nil balance
Discussion
1031.

Personal transactions are distinguished from business transactions in accordance with the concept of ……………..

Answer»


ANSWER :BUSINESS ENTITY
Discussion
1032.

Petty cash Book records

Answer»

payments of SMALL AMOUNTS.
RECEIPTS of small amounts.
Both (a) and (b)
All cash receipts and payments

SOLUTION :payments of small amounts.
Discussion
1033.

Personal accounts many have either debit or credit balance.

Answer»


ANSWER :1
Discussion
1034.

Perpare an AccountingEquationon the following transactions :(i) Started business with cash ₹ 70,000. (ii) Credit purchase of goods ₹ 18,000. (iii) Paymentmade tocrediorsin full settlement ₹17,500. (iv) Purchaseof machinery for cash₹ 20,000. (v) Depreciationon machinery ₹ 2,000.

Answer»


ANSWER :Assets : Cash₹ 32,500 + STOCK 18,000 + Machinery ₹ 18,000 = Liabilites:Nil+ CAPITAL : ₹ 51, 000.
Discussion
1035.

PerpareAccounting Equation from the following : (i) Started business with cash ₹1,00,000 and Goods ₹20,000. (ii) Sold goodsworht ₹10,000 for cash₹12,000 (iii)Purchased furniture on creditfor ₹ 30,000.

Answer»


ANSWER :ASSEST : CASH ₹ 1,12,000 + stock ₹ 10,000 + FURNITURE ₹ 30,000 =Liabilities: Creditors for Furniture ₹ 30,000 + CAPITAL: ₹ 1,22,000
Discussion
1036.

PerpareAccounting Equation from the following : (i) Started business with cash ₹1,00,000 and Goods ₹20,000. (ii) Sold goodsworht ₹10,000 for cash₹12,000 (iii)Purchased furniture on creditfor ₹ 30,000.

Answer»


ANSWER :Assest : CASH ₹ 1,12,000 + STOCK ₹ 10,000 + FURNITURE ₹ 30,000 =LIABILITIES: Creditors for Furniture ₹ 30,000 + Capital: ₹ 1,22,000
Discussion
1037.

Periodic total of Sales Return Journal is posted to the

Answer»

SALES ACCOUNT
GOODS Account
Sales RETURN Account.
Any of these

SOLUTION :Sales Return Account.
Discussion
1038.

Payment of Rent to Shekhar will

Answer»

DECREASE ASSETS and Liabilities
Increase Assets but REDUCE CAPITAL
Decrease Assets and Capital
Increase Assets and Reduce Liabilities.

Solution :Decrease Assets and Capital
Discussion
1039.

Payments made through Petty Cash Book

Answer»

are not POSTED into LEDGER ACCOUNTS
are posted into Ledger Accounts .
Both (a) and (B)
None of these

Solution :are posted into Ledger Accounts
Discussion
1040.

Payments are shown in the debit side of the cash Book

Answer»


SOLUTION : FALSE
Discussion
1041.

Payment to a creditor means

Answer»

Incrcase in ASSET and DECREASE in LIABILITY.
Decrease in asset and decrease in liability.
Decrease in asset and INCREASE in lhability.
Increase in asset and increase in liability

Solution :Decrease in asset and decrease in liability.
Discussion
1042.

Payment done by the account holder through issuing a cheques is entered in

Answer»

the Pass BOOK at the time of ISSUING the cheque
the Pass Book at the time of presenting the cheque to the bank for payment
the CASH Book at the time of issuing the cheque
Both (B) and ( c)

Answer :D
Discussion
1043.

Patents' are classified as a

Answer»

ASSET ACCOUNT
Liability Accounts
Capital Account
RevenueAccount

SOLUTION :Asset Account
Discussion
1044.

Passbook is the statement of account of the customer maintained by the bank.

Answer»

SOLUTION :T
Discussion
1045.

Pass the Opening Entry on 1st April, 2019 on the basis of the following information taken from the books of Raman. Also , post the opening entry. {:(,₹),("Cash in Hand ","20,000"),("Sundry Debtor","60,000"),("Stock of Goods","40,000"),("Input IGST Account","15,000"),("Input SGST Account","5,000"),("Plant","50,000"),("Land and Building","1,00,000"),("Sundry Creditors","1,00,000"):}

Answer»

Solution :
Notes: 1.The EXCESS of assets over liabilities is the PROPRIETOR's capital and is credited to his Capital Account.
2. Input IGST Account and Input SGST Account have debit balance.


Use of the words 'To' and 'By': It is customary to USED the word 'To' with accounts which appears on the debit side of a Ledger Account. Similarly, the word 'By' is used with account which appears on the credit side of a Ledger Account. THe word 'To' and 'By' do not haveany SPECIFIC meaning. Modern accountants, therefore, do notuse these words.
Discussion
1046.

Passbook is a copy of:

Answer»

) Copy of CUSTOMER Account
Bank column of CASH BOOK
Cash column of cash book
Copy of receipts and PAYMENTS

Solution :A
Discussion
1047.

Pass Book is the Statementof Account of the customer maintainedby the bank .

Answer»


SOLUTION :TRUE
Discussion
1048.

Pass Book of the account holder is a copy of

Answer»

the bank COLUMNS in the Cash Book of the ACCOUNT holder.
the relevant accountin the books of a bank
the cash columns in the Cash Book of a CUSTOMER
None of the above

Solution :the relevant accountin the books of a bank
Discussion
1049.

Pass Book and the Bank statement are one and the same thing, because both of them are the copy of customer's ledger account maintained by bank.

Answer»


ANSWER :1
Discussion
1050.

Param purchased goods from Dev. It will be recorded in

Answer»

PURCHASE BOOK .
CASH Book
Purchase RETURN Book
None of these

Solution :Purchase book .
Discussion