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1 Identify the journal entry to record depreciation on long-term assets.

2 Identify the financial statement that reports the revenues and


expenses for a period of time such as a year or a month.
3 Which of the following is a financial statement that reports the
assets, liabilities, and stockholders' (owner's) equity at a specific
date?
4 Under the accrual basis of accounting, when are revenues reported
in the accounting period?
5 Assets are usually reported in the balance sheet at which of the
following amounts?
6 Which term is associated with 'left' or 'left-side'?
7 When cash is received, the account cash will be ____________.
8 Entries to expenses such as Rent Expense are usually ___________.
9 Entries to expenses such as Electricity Bills are usually ___________.
10 Which of the following is an asset account?
11 Which of the following would NOT be a current asset?
12 Asset accounts have what type of balance?
13 Which account is NOT a liability account?
14 Cash is what type of account?
15 Rent Paid is what type of account?
16 Land is what type of account?
17 Salaries a/c is what type of account?
18 Property is what type of account?
19 Goods/Stock a/c is what type of account?
20 State whether the following statement is True or False. <br><br/>
Assets are typically recorded in the Balance Sheet at their estimated
fair market value.

21 What is the golden rule for Personal Account?

22 What is the golden rule for Real Account?

23 What is the golden rule for Nominal Account?

24 What is the most common method of Book Keeping?

25 Identify the correct journal entry for the transaction given


below.<br><br/>Company purchased goods for cash worth Rs.
15,000

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26 Identify the correct journal entry for the transaction given
below.<br><br/>Sold goods for Cash worth Rs. 20,000

27 Identify the correct journal entry for the transaction given


below.<br><br/>Purchased Machinery for Cash worth Rs. 45,000

28 Identify the correct journal entry for the transaction given


below.<br><br/>Withdrew from Bank Rs. 5,000

29 Identify the correct journal entry for the transaction given


below.<br><br/>Rent received from Mr. A for Rs. 8,000

30 Identify the correct journal entry for the transaction given


below.<br><br/>Goods sold to Mr. C on credit Rs. 15,000

31 Identify the correct journal entry for the transaction given


below.<br><br/>Rent paid in advance for future month for Rs. 500

32 Identify the correct journal entry for the transaction given


below.<br><br/>Salaries due for last year paid for Rs. 5,000

33 Identify the correct journal entry for the transaction given


below.<br><br/>Received Commission by Cheque for Rs. 6,000

34 Identify the correct journal entry for the transaction given


below.<br><br/>Stationery Expenses paid by cash for Rs. 200

35 Identify the correct journal entry for the transaction given


below.<br><br/>Brought additional capital of Rs. 25,000

36 Identify the correct journal entry for the transaction given


below.<br><br/>Paid Loan by cheque for an amount of Rs. 5,000

37 Identify the correct journal entry for the transaction given


below.<br><br/>Commenced business with a capital of Rs.
1,00,000

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38 Identify the correct journal entry for the transaction given
below.<br><br/>Purchased goods from Peter for Rs. 20,000

39 Identify the correct journal entry for the transaction given


below.<br><br/>Returned goods to Peter for Rs. 5,000

40 Identify the correct journal entry for the transaction given


below.<br><br/>Took Loan from Jack for Rs. 25,000

41 Identify the correct journal entry for the transaction given


below.<br><br/>Paid rent by Cheque for Rs. 200

42 Identify the correct journal entry for the transaction given


below.<br><br/>Received Interest for Rs. 14,000

43 Identify the correct journal entry for the transaction given


below.<br><br/>Depreciation Paid for Rs. 500 on Plant &
Machinery.

44 Identify the correct journal entry for the transaction given


below.<br><br/>Bought computer from Intel on credit for Rs.
25,000

45 Identify the correct journal entry for the transaction given


below.<br><br/>Company sold goods on credit for Rs. 200

46 Identify the correct journal entry for the transaction given


below.<br><br/>Company purchased goods on credit for Rs. 1,000

47 Identify the correct journal entry for the transaction given


below.<br><br/>The company gave a discount of Rs. 18 on a cash
sales of Rs. 900

48 Identify the correct journal entry for the transaction given


below.<br><br/>Shyam did not pay us our Rs. 5,000 debt and Ram
did not pay us our Rs. 10,000 debt up to end of the financial year.
This receivable amount has converted in to bad debt loss.

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49 ABC LTD pays loan interest for the month of December 2010 of Rs.
10,000 on 3<sup>rd</sup> January 2011. ABC LTD has an
accounting year end of 31<sup>st</sup> December 2010. ABC LTD
will recognize interest expense of Rs. 10,000 in the financial
statements of year 2010 even though it was paid in the next
accounting period as it relates to the current period. State if the
journal entries given below are correct or incorrect.<br> Interest
Expense a/c Debit Rs. 10,000 to Interest Payable a/c Rs.
10,000<br> Interest Payable a/c Debit Rs. 10,000 to Cash a/c Rs.
10,000

50 Identify the correct journal entry for the transaction given


below.<br><br/>Land belonging to the company which was bought
for Rs. 5,00,000 has now been sold for Rs. 8,00,000 cash.

51 Identify the correct journal entry for the transaction given


below.<br><br/>ABC Co. bought goods from Mr. Paul on credit for
Rs. 24,000, A week later it returned goods to the extent of Rs.
3,000.

52 Identify the correct journal entry for the transaction given


below.<br><br/>Company sold goods to Monica on credit for Rs.
65,000. A few days later, she returned the goods to the extent of Rs.
48,000.

53 When Goods are bought and you have to pay both purchase value
and VAT input or have paid both, at that time, the following journal
entry will be passed. State if the journal entry given below is correct
or incorrect.<br><br> Purchase Account Debit (Value of
Purchase)<br> VAT Input Account Debit ( VAT on Purchase)<br>
Cash or Bank or Name of Creditor Account Credit (Value of Purchase
+ VAT input)
54 Sundry Debtors are posted in which financial statement?

55 Sundry Creditors are posted in which financial statement?

56 Goodwill is posted in which financial statement?

57 General Reserve is posted in which financial statement?

58 Equity Capital is posted in which financial statement?

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59 Cash is posted in which financial statement?

60 Rent Paid is posted in which financial statement?

61 Rent Received is posted in which financial statement?

62 Stationery Expenses is posted in which financial statement?

63 Land & Buildings is posted in which financial statement?

64 Identify the correct side of the financial statements to post


Outstanding Rent.

65 Identify the correct side of the financial statements to post Salary


paid in advance.

66 Identify the correct side of the financial statements to post Bad


Debts.

67 Sales Return is posted in which financial statement?

68 Purchase Return is posted in which financial statement?

69 Drawings is posted in which financial statement?

70 Identify the correct side of the financial statements to post


Depreciation.

71 Opening Stock is posted in which financial statement?

72 Discount Allowed is posted in which financial statement?

73 Bills Payable is posted in which financial statement?

74 Bills Receivable is posted in which financial statement?

75 Debentures is posted in which financial statement?

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76 Preference Shares is posted in which financial statement?

77 Mortgage Loan is posted in which financial statement?

78 Investments made is posted in which financial statement?

79 Identify the correct side of the financial statement to post Electricity


Bill paid in advance.
80 Identify the correct side of the financial statements to post Salary
paid in advance Rs. 2,50,000.

81 Identify the correct side of the financial statements to post Interest


paid for previous months which was overdue.

82 Identify the correct side of the financial statements to post Net


Profit.

83 Petty Expenses are posted in which financial statement?

84 Which of the following accounts helps in tallying the trial balance?


85 What is the journal entry for the following transaction?
<br/><br/>Mr. Gandhi purchased goods from Mayank Ltd.
86 To which of the following accounts is the Drawings account
transferred at the end of the financial period?
87 Straight Line Method (SLM) and Written Down Value (WDV) method
are the two methods used to calculate ________.
88 A statement that contains various ledger balances on a particular
date is known as ________.
89 The cost of land, buildings, patents, machinery, furniture etc. is
treated as ________.
90 Which side of a balance sheet is used to record goodwill?

91 Goodwill, patents, copyrights and trademarks are examples of


________.
92 Which of the following is a Personal account?
93 When goods are returned to a particular supplier, the journal entry is
________.

94 Bills receivable is a/an ________.

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95 Book keepers record all deposits in the bank on ________ side and all
withdrawals on the ________ side of the cash book.
96 ________ can be quickly converted to cash.
97 A bank statement ________.

98 Bank overdraft is a form of ________.


99 In a cash book, if the credit side total of bank column is more than
that of debit side, then it is known as ________.
100 Salary account is an example of ________.
101 Which of the following equations represents the accounting
equation?
102 What is the journal entry for the following transaction?
<br/><br/>'Purchase of furniture for Rs. 5000.'

103 What is the journal entry for the following transaction?


<br/><br/>'Cash paid to the bank.'
104 To which of the following accounts is an insurance debited?

105 Interest on drawings is a/an ________.

106 In the balance sheet, outstanding rent is shown as ________.


107 Which of the following is a correct sequence for recording
transactions?

108 Girish started his business on 1<sup>st</sup> of April, 2003 with


Rs. 20,000 as capital. This will appear in the cash book as ________.
109 A bank reconciliation statement is prepared so that the difference in
the under mentioned balance is reconciled with ________.

110 The sales return book records ________.

111 Which of the following expenses is NOT categorized as 'General and


administrative expenses'?
112 To which of the following accounts should the salary amount paid to
Mr. Ram be debited?
113 Which of the following items is NOT a current asset?
114 To which of the following accounts will the difference be transferred
if a trial balance total doesn't match?
115 Which of the following transactions would NOT be included in a
balance sheet?

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116 Which of the following accounts will be credited in the books of ASN
Ltd. if machinery is purchased on cash?
117 Outstanding income is a/an ________.
118 On which of the following assets is depreciation NOT charged?
119 Reserve is usually shown on the ________.

120 Identify the correct journal entry for the transaction given
below.<br><br/>Purchase of laptop for Rs. 40,000

121 Identify the correct journal entry for the transaction given
below.<br><br/>Sale of goods to Grasse Enterprises on credit Rs.
25,000

122 Identify the correct journal entry for the transaction given
below.<br><br/> Mr. X started his business with cash Rs. 20,000

123 Identify the correct journal entry for the transaction given
below.<br><br/>Freight charges paid in cash Rs. 1,800

124 Identify the correct journal entry for the transaction given
below.<br><br/>Freight charges paid for purchase of computer for
Rs. 1,500

125 Identify the correct journal entry for the transaction given
below.<br><br/>Cash deposited in bank Rs. 50,000

126 Identify the correct journal entry for the transaction given
below.<br><br/>Office expenses paid Rs. 16,000

127 Identify the correct journal entry for the transaction given
below.<br><br/>Purchase of goods from Ravi Stationers for Rs.
4,000

128 Identify the correct journal entry for the transaction given
below.<br><br/>Purchase of office chairs for Rs. 60,000

129 Identify the correct journal entry for the transaction given
below.<br><br/>Cash Sale of Rs. 30,000

130 Identify the correct journal entry for the transaction given
below.<br><br/>Salary paid to employees for Rs. 7,00,000

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131 Identify the correct journal entry for the transaction given
below.<br><br/>Purchases (Credit) from Mr. ABC worth Rs. 38,000

132 Identify the correct journal entry for the transaction given
below.<br><br/>Withdrew from Bank Rs. 50,000

133 Identify the correct journal entry for the transaction given
below.<br><br/>Rent paid in advance for future 6 months for Rs.
12,000

134 Identify the correct journal entry for the transaction given
below.<br><br/>Sale of items to XYZ International on credit Rs.
45,000

135 Identify the correct journal entry for the transaction given
below.<br><br/>Freight charges paid for air conditioners Rs. 2,500

136 Which of the following statements is/are correct?


<br/><br/><ol><li> Real accounts are maintained for tangible
things. </li><li> Real accounts are maintained for intangible
things.</li></ol>
137 Which of the following statements is/are correct?
<br/><br/><ol><li> Balance sheet is summary of the financial
position as on date.</li><li> Profit and loss account shows profit or
loss for the year.</li></ol>
138 What does the Credit balance of bank book indicate?

139 What does the Debit balance of cash book indicate?

140 Identify the correct statement about depreciation.

141 Which of the following is NOT a 'Depreciable asset'?


142 Which of the following refer to the right to use rented properties?
143 Which of the following refers to the amount the company has
declared payable to stockholders?
144 Which of the following is NOT a tangible asset?

145 What is 'Equity' equal to?


146 An expense that gives a benefit for a period of less than 12 months
is called _____________.
147 What does prepaid rent given in the Trial Balance represent?
148 What is the money spent to acquire or upgrade physical assets
known as?

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149 When can we can say that the business is in profit?

150 Which of the following explains the summary of a company's


financial position on a specific date?
151 What type of expenses are paid out of Gross Profit?
152 When 'capital' is increased by a certain amount, it is recorded on the
_______________.
153 When a 'liability' is reduced or decreased, it is recorded on the
_______________.
154 Which of the following is TRUE when a debtor pays his dues?

155 Of the following documents, where is the accrued income posted?

156 Which entry would close the Drawing account?

157 Identify the correct headings of the financial statements to post:


<br/><br/> Purchase of a building on cash

158 While posting in financial statements, equipment depreciation


expense would consist of a debit to Depreciation Expense and a
credit to which of the following accounts?

159 Akshay purchases a piece of land for cash and debit is made to
Machinery account. What would be the effect of this error on the
trial balance while posting in the financial statements?

160 Expenses spent before starting a company are posted in which


financial statement?
161 Which of the following is NOT shown on Assets side of Balance
162 sheet?
Which of the following explains how outstanding salaries are posted
in financial statements? <br/><br/><ol><li> They are added to
'Salaries' while preparing P & L a/c. </li><li>They are shown in
liability side of Balance sheet under 'current liability'. </li></ol>

163 The Drawing account is closed by which of the following entry?

164 Which of the following is TRUE about both sides of the trial balance?

165 Which one of the following is the part of the income statement?
166 Which of the following is NOT a kind of current asset?
167 A journal entry that has more than one debit or credit is known as
___________.

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168 ___________ cost will still be incurred although a plant is shut down
temporarily.
169 P&L a/c is prepared for a period of one year by following which of
the following concept?
170 Where is the credit balance of profit & loss a/c shown?

171 Proprietor (owner) is treated as creditor of business due to


172 ___________.
Which of the following is NOT a kind of 'capital expenditure'?
173 The rent paid to the landlord will be credited to which account?
174 Why are adjusting entries used?

175 Which of the following explains how reserve for doubtful debts
appearing in the trial balance are posted?<br/><br/><ol><li>They
are credited to P & L a/c.</li><li> They are shown as liability side in
balance sheet.</li><li>They are reduced from related assets in the
balance sheet.</li></ol>

176 Identify the correct journal entry for the transaction given
below.<br><br/>Acquired short-term bank loan of Rs. 12,00,000

177 Identify the correct journal entry for the transaction given
below.<br><br/>Karan started his business with cash Rs. 90,000

178 Identify the correct journal entry for the transaction given
below.<br><br/>Paid Loan amount of Rs. 12,000 by check

179 Identify the correct journal entry for the transaction given
below.<br><br/> Return of goods worth Rs. 9,000 to Kyle
International

180 Identify the correct journal entry for the transaction given
below.<br><br/>Purchase of desktop computers for all employees
worth Rs. 1,20,000

181 Identify the correct journal entry for the transaction given
below.<br><br/>Interest on capital amount Rs. 23,000

182 State whether the following statement is True or False. <br><br/>


Long term investments are posted in Assets side of a balance sheet.
183 'Discounts received' are posted on which side of cash book?
184 'Expenses due to payment of rent' is posted on which side of cash
book?
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185 Which of the following is a liability?
186 State whether the following statement is True or False. <br><br/>
Liabilities represent the debts that a company has to pay over time.
187 Which of the following is an asset?
188 _______ is the withdrawal of cash and goods by the owner of the
business for his/her personal use.
189 Net loss occurs when ___________.

190 State whether the following statement is True or False. <br><br/>A


'Double entry' records two aspects of a particular transaction.
191 Which of the following is a nominal account?

192 Which of the following is a real account?

193 Accounts payable is treated as _________.


194 In a double entry accounting system, every business transaction
affects at least ________ accounts.
195 State whether the following statement is True or False. <br><br/>
Data in journal is stored on the basis of date.
196 Identify the correct journal entry for the transaction given
below.<br><br/>Sale made to Aman Rs. 2,50,000

197 Identify the correct journal entry for the transaction given
below.<br><br/>Wages paid in Cash Rs. 10,000

198 State whether the following statement is True or False. <br><br/>


Fire insurance premium is posted in the debit side of Profit & Loss
a/c.
199 'Commission received' is posted in which financial statement?

200 Which of the following will NOT be posted on the debit side of Profit
& Loss a/c?
201 Which of the following will NOT be posted on the liability side of the
balance sheet?
202 Which of the following will NOT be posted on the assets side of the
balance sheet?
203 State whether the following statement is True or False. <br><br/>
Rent and salaries paid are posted on the debit side of trial balance.
204 'Cash in hand' and 'Cash in bank' appear on the _______ side of trial
balance.
205 What does 'Bills receivable' given in the Balance sheet represent?
206 Travelling expenses appear on the _______ side of P&L a/c.

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207 __________ is posted in the credit side of the trial balance.
208 Which of the following will NOT be posted on the debit side of the
trial balance?
209 State whether the following statement is True or False. <br><br/>
Postage expenses are posted in the credit side of Profit & Loss a/c.
210 Which of the following transactions are NOT recorded in a P&L
211 account?
Where is the closing stock posted in the Balance sheet?
212 State whether the following statement is True or False.
<br><br/>Expenses on repair are posted in the credit side of Profit
& Loss a/c.

213 A balance sheets shows which of the following?

214 Mr. Sharma purchased a printing machine for his factory on credit
from MediaX International. How will this journal entry be recorded?

215 KEN International recorded sale of services worth Rs. 10,000 to a


customer on credit. Given below is the journal entry for this
transaction. Identify if it is correct or incorrect. <br/><br/>Accounts
receivable Debit Rs. 10,000 to Sales a/c Rs. 10,000

216 A company sold merchandise worth Rs. 6,500 to a customer and


received the payment in cash. Identify if it is correct or incorrect.
<br/><br/>Cash Debit Rs. 6,500 to Sales a/c Rs. 6,500

217 A company borrowed Rs. 65,000 in cash from a lender. Identify if it is


correct or incorrect. <br/><br/>Cash Debit Rs. 65,000 to
Borrowings a/c Rs. 65,000

218 The owner of a company has invested Rs. 10,00,000 in the


company. The journal entry for this is as follows: <br/><br/> Cash
debit Rs. 10,00,000 to Owner's Equity Rs. 10,00,000<br/><br/> Is
this entry correct or incorrect?

219 For the repair of machinery, a company has paid Rs. 2,000 in cash.
The journal entry for this is as follows: <br/><br/> Machinery a/c
debit Rs. 2,000 to Cash Rs. 2,000<br/><br/> Is this entry correct or
incorrect?
220 Mr. A purchased goods amounting to Rs. 5,000 from Mr. B. The
journal entry for this is as follows: <br/><br/> Purchases a/c debit
Rs. 5,000 to Mr. A Rs. 5,000<br/><br/> Is this entry correct or
incorrect?
221 Which of the following assets is most likely to appreciate than
depreciate?
222 Which of the following is NOT a fixed asset?
223 Which of the following will NOT affect the Cash a/c?

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224 Which of the following can be prepared under the 'Double entry
system'?
225 Interest on capital is credited to ________ account.
226 State whether the following statement is True or False.
<br><br/>Current assets are expected to be converted into cash
within one year.
227 Identify the account affected by the transaction given below.
<br/><br/> Lays Ltd. purchases goods for cash.
228 Which type of account is entered in balance sheet?
229 Which type of account is entered in Profit & Loss a/c?
230 Salary paid in advance must be debited to the ____________.
231
How will 'Stationery Expenses paid in cash' be recorded?
232 Which of the following accounts is NOT a Nominal Account?
233 To which side of the Trading Account will the 'Freight' be recorded?
234

How will 'Depreciation Paid on Plant & Machinery' be recorded?


235
To which side of the Trading Account will the 'Clearing Charges' be recorded?
236 State whether the following statement is true.<br/><br/>Cash receipts,
invoices, cash memos, bank pay-in-slips are examples of vouchers.
237 Which of the following would be classified as a fixed asset on the balance
sheet?
238 Expenses can be recorded by ____________.

239 _______ transaction is one where cash is not involved immediately but will
be paid or received later.
240
A company receives a bill for Rs. 5,550 for its electric service for the month of
November. Identify if the journal entry for this is correct or incorrect.
<br/><br/> Debit Utilities expense Rs. 5,550 to Cash a/c Rs. 5,550
241 Which of the following accounts is NOT an operating liability account?
242 How are outstanding expenses treated in the balance sheet?
243
Which of the following items is posted in an income statement?
244 Which of the following is NOT considered a current liability?
245 Which of the following would be classified as a current asset on the balance
sheet?
246
Which of the following is an example of an investing activity?
247 Identify the type of expenditure incurred for the case given below:
<br/><br/>Cost incurred on installation of an air conditioner in the office
248 State whether the following statement is true.<br/><br/>When an entry affect
both cash and bank accounts it is called a contra entry.
249
State whether the following statement is True or False. <br><br/>Inventory is
an asset held for sale and not a capital expenditure.

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250
What will NOT require adjustment in Cash book balance?
251 To which side of the Trading Account will the 'Wages' be recorded?
252 Which of the following would be classified as a fixed liability on the balance
sheet?
253 _________ account is a type of real account.
254 To which side will the 'cash received from a customer' be recorded in the
Cash Book?
255 A company receives Rs. 10,00,000 as an investment from 3 of its owners.
The journal entry for this is as follows: <br/><br/>Owner's invested capital
debit Rs. 10,00,000 to Cash Rs. 10,00,000<br/><br/> Is this entry correct or
incorrect?
256 State whether the following statement is True or False. <br><br/>Bills
receivable are posted in liability side of a balance sheet.
257 The total assets of a business are Rs. 3,60,000 and capital is Rs. 2,00,000.
Find total liabilities.
258 Which of the following is shown on Debit side of balance sheet?
259

Identify the correct side of the financial statements to post Accrued income.
260 __________ cannot a source of income for any company.
261 To which side will the 'cheque issued and dishonored' be recorded in the
Cash Book?
262 Which of the following accounts is NOT a Real Account?
263
How will 'Buying an additional capital' be recorded?
264
How will 'Interest received in cash' be recorded?
265
How will 'Commission received by Cheque' be recorded?
266 How are prepaid expenses listed on balance sheet?
267 Which of the following is NOT shown on Liabilities side of balance sheet?
268 To which side will the 'cheque received and deposited into bank for collection
immediately' be recorded in the Cash Book?
269
Dividend paid is posted in which financial statement?
270
Which of the following is an example of a financing activity?
271
Closing Stock is posted in which financial statement?
272 Identify the type of expenditure incurred for the case given below:
<br/><br/>ABC Co. incurred an expenditure of Rs. 2,000 on the repair of a
machine
273 Which of the following expenses will be posted on the credit side of Profit &
Loss a/c?
274 Items of revenue nature appearing in the Trial Balance are transferred to the
_________.

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275 State whether the following statement is True or False. <br><br/> Closing
stock is posted in Assets side of a balance sheet.
276
Which of the following is an example of a profit-making transaction?
277 A company has suffered a 'Gross Loss' that has been calculated in the
Trading Account. To which side(s) of the Profit and Loss Account, will this be
recorded?
278 A company has suffered a 'Gross Profit' that has been calculated in the
Trading Account. To which side(s) of the Profit and Loss Account, will this be
recorded?
279 To which book of accounts will purchase of machinery be recorded?
280
State whether the following statement is true.<br/><br/>Trial Balance shows
opening stock only whereas balance sheet shows closing stock only.
281 ___________ enables the trader to find out gross profit or gross loss.
282
To which side will the 'bank charges' be recorded in the Cash Book?
283
In March, a company makes a payment of Rs. 2,50,000 for rent of its facilities
for March. Identify if the journal entry for this is correct or incorrect. <br/><br/>
Debit Rent expense Rs. 2,50,000 to Cash a/c Rs. 2,50,000
284

How will 'Purchase of furniture in cash' be recorded?


285 If a company buys a truck with a cash down payment of Rs. 50,000 and
borrows the remaining Rs. 2,50,000. This will result in _______________.

286 Which of the following would be classified as a current liability on the balance
sheet?
287 To which account is the provision charged?
288 How is accounts receivable listed on balance sheet?
289

How will 'The owner's investment of in a business' be recorded?


290

A company makes a Rs. 30,000 sale on account but with a 10% cash down
payment. Identify the correct journal entry for this transaction.
291

How will 'Cash paid to the bank' be recorded?


292 State whether the following statement is True or False. <br><br/>Interest on
drawings is a gain for the business.
293 _________ transaction increases profit but does not increase cash.
294 Sundry Creditors are posted in the _______ side of the balance sheet and
Sundry Debtors are posted in the __________ side.

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295
To which side will the 'Withdrawals of cash' be recorded in the Pass Book?
296 Which of the following is shown on Credit side of balance sheet?
297
Interest on Investments is posted in which financial statement?
298 What type of sale transaction increases cash and profit?
299 To which side will the 'cheque deposited and dishonored' be recorded in the
Cash Book?
300 State whether the following statement is true.<br/><br/>Stock-in-trade are to
be recorded at cost or market price whichever is more.
301 How will 'a payment on an outstanding balance owed to a supplier' be
recorded?
302
Income Received in Advance is posted in which financial statement?
303
To which side of the balance sheet are the reserves shown?
304 A company recorded a debit to an asset account for Rs. 1,000 and a credit to
a liability account for Rs. 200. What else should be recorded to complete the
journal entry?
305 A piece of land is bought for Rs. 5,00,000. Its market value at the time of
preparation of final accounts is Rs. 8,00,000. What amount will be recorded in
the book of accounts?
306
How will 'Buying computers from Zabronix on credit' be recorded?
307 Which principle of accounting talks about the following, "Anticipate no profit
and provide for all possible losses"?
308
Sales return account are posted under the _______ side of the trial balance.
309 _________ account will be debited when a company purchases a laptop.
310 A customer pays for the subscription of a magazine in the beginning of the
year and receives the magazines throughout the year. This is a
______________ sale.
311
To which side of the Trading Account will the 'Opening Stock' be recorded?
312 Which of the following accounts is a Nominal Account?
313
Interest on Loan is posted in which financial statement?
314
How will 'Payment of rent by Cheque' be recorded?
315
To which side of the Trading Account will the 'Closing Stock' be recorded?
316 Commission to Partners as percentage to Gross Profit is posted in which
financial statement?
317 State whether the following statement is True or False. <br><br/>In the
balance sheet, outstanding rent is shown as an asset.
318 Which account should be 'Credited' while recording a sale in which the buyer
agrees to pay later?

Page 17
Sheet1
319
State whether the following statement(s) is/are true.<br/><br/><ol><li>When a
trader sells goods for cash, he gives a cash memo.</li><li>When a trader
sells goods on credit, he prepares a sales invoice.</li></ol>
320 A customer directly paid an amount of Rs. 5,000 into the bank of ABC Co. To
which side will this transaction be recorded in the Cash Book?
321
Where is the total of Purchase Return Book recorded?
322 To which side will the 'Interest allowed by bank' be recorded in the Cash
Book?
323 When accounts receivable increase, sales revenue _____________.
324 To which book of accounts will goods returned by customers be posted?
325

Which of the following assets is incorrectly classified as fixed assets?


326
Loan amount is posted in which financial statement?
327 To which side of the Trading Account will the 'Sales' be recorded?
328 Where will the 'cash withdrawn from bank for office use' will appear in the
cash book?
329 Which of the following accounts is a Real Account?
330 Is Goodwill a fixed asset?
331 To which side of the Trading Account will the 'Octroi Duty' be recorded?
332
Outstanding expenses is posted in which financial statement?
333 Which of the following accounts is a Nominal Account?
334 Where will be the entry recorded if Sam has sold goods for cash?
335 When a debtor pays his dues, the asset side will ___________.
336 Which of the following accounts is a Real Account?
337 In which side of the balance sheet do you post the account 'Salaries
Outstanding'?
338 State whether the following statement is true.<br/><br/>Insurance expenses
are posted on the Debit side of the Profit and Loss Account.
339

_______ increase assets and revenue when cash is received.


340 Which of the following accounts is NOT an operating asset account?
341 Bad Debts are posted on _______ side of Profit and Loss account.
342 If a company has Rs. 5,000 of credit card sales but has to pay Rs. 100 of
credit card fees, how much should be recorded as cash?
343
If a company obtains a loan to purchase a delivery truck. This will result in
_______________.
344
How will 'Taking Loan from Lokesh' be recorded?
345 The wages paid for erecting a machine is Rs. 2,000. Where should this be
debited?

Page 18
Sheet1
346 To which side will the 'cheque issued to a customer' be recorded in the Cash
Book?
347 A piece of land is bought for Rs. 5,00,000. Its market value at the time of
preparation of final accounts is Rs. 8,00,000. Which book of accounts will
record this event?
348 Where should the commission received on taxes be posted in the profit and
loss account?
349
Transactions in a journal are initially recorded in a _______________ order.
350 Which of the following is NOT a characteristic of debt?
351 Which column of ledger links the entry with the journal?
352 Items of capital nature appearing in the Trial Balance are transferred to the
_________.
353
Repairs to Assets is posted in which financial statement?
354 State whether the following statement is true.<br/><br/>Repair expenses are
posted on the Credit side of the Profit and Loss Account.
355 Which of the following accounts is a Personal Account?
356
To which account is the total of the Sales Book posted?
357
________ account is credited on sale of goods to ABC Solutions on credit.
358
Which of the following will be posted on the debit side of Profit & Loss a/c?
359 Equity Capital is posted in the __________ side of the balance sheet.
360 ___________ is a type of operating expense.
361 State whether the following statement is True or False. <br><br/>Bills payable
are posted in assets side of a balance sheet.
362 Amount spent on the repair of office typewriter should be debited to the
__________.
363

How will 'Office expenses paid in cash' be recorded?


364 Who prepares a debit note?
365 Which of the following accounts is a Real Account?
366 When sales revenues increase, accounts receivable is ____________.
367
To which side will the 'Interest on Overdraft' be recorded in the Cash Book?
368 Stationary expenses are posted in _________ side of the profit and loss
account.
369

How will 'Cash Sale worth Rs. 7,00,000' be recorded?


370 Which of the following accounts is NOT a Personal Account?
371 Which of the following is NOT shown on Assets side of balance sheet?

Page 19
Sheet1
372 To which side will the 'cheque received from a customer' be recorded in the
Cash Book?
373 State whether the following statement is True or False. <br><br/> Discount
received is posted on the credit side of trial balance.
374
A company receives returns from customers worth Rs. 8,000 and refunds the
cash to the customers. Identify if the journal entry for this is correct or
incorrect. <br/><br/> Debit sales returns Rs. 8,000 and credit cash Rs. 8,000
375
The general journal is most commonly used to record _____________.
376
________________ is a financing activity.
377 Which of the following expenses will NOT be posted on the credit side of
Profit & Loss a/c?
378 State whether the following statement is true.<br/><br/>Contingent liabilities
appear on the balance sheet.
379 An item of revenue expenditure, debited to asset account will ________
profit.
380 State whether the following statement is true.<br/><br/>Office expenses are
posted on the Debit side of the Profit and Loss Account.
381 Who prepares a credit note?
382
Bank loan account are posted under the _______ side of the trial balance.
383
To which side of the Trading Account will the 'Carriage Inwards' be recorded?
384
An item of capital expenditure, debited to asset account will ________ profit.
385 When a company purchases stationery items from Golden Stationers,
_________ account will be debited.
386 Capital account are posted under the _______ side of the trial balance.
387
Purchases account are posted under the _______ side of the trial balance.
388 State whether the following statement is True or False. <br><br/> Bank loan
account is posted on the debit side of trial balance.
389 Which of the following accounts is a Personal Account?
390 Which account should be 'Debited' while recording a sale in which the buyer
agrees to pay later?
391 Which of the following accounts is a Personal Account?
392 Expenses spent before starting a company are posted in ________ side of
the balance sheet.
393
Where will the Purchase Account be shown in the Trial Balance?
394 Which of the following is NOT a fixed asset?
395
A Suspense Account will give the ___________.
396 Purchase of office chairs in cash will credit the ______ account.
397 Ram's account was previously written off as Bad debts. He has now paid Rs.
200. To which account should this amount be credited?

Page 20
Sheet1
398 The Sales Manager of ABC Co. is not on good terms with the Production
Manager. Can this fact be recorded according to the Money Measurement
Assumption?
399

The cost of a companys returned inventory is Rs. 10,000. What is the proper
entry to record the returned inventory, assuming it can be sold again?
400 Which of the following accounts is a Nominal Account?
401
Depreciation is posted in which financial statement?
402
Which of the following is NOT a prepaid expense?
403 To which side of the Trading Account will the 'Dock Dues' be recorded?
404 When cost of goods sold increases, inventory is ____________.
405

How will 'Return of goods to KL Enterprises' be recorded?


406 The image given below shows the rules of debit and credit. Identify the
missing gaps given as A, B, C and D.<br/><br/><img
src="FNAACCENTURE_IMAGES/Q1.PNG" border=0>

407 Identify the correct journal entry for the transaction given below.<br/>
'Insurance premium paid by cheque Rs. 8,000'

408 Identify the correct journal entry for the transaction given below.<br/> '
Purchased office supplies on account Rs. 14,500'

409 Identify the correct journal entry for the transaction given
below.<br>'Collected Rs. 50,000 in cash from credit customers'

410 Identify the correct journal entry for the transaction given below.<br>'Paid Rs.
3,50,000 cash to a supplier for goods received 6 months ago'

411 Identify the correct journal entry for the transaction given below.<br/> 'Cash
collected from client for old bills Rs. 10,550'

412 Identify the correct journal entry for the transaction given below.<br/> 'Sales
made on credit Rs. 18,600'

413 Identify the correct journal entry for the transaction given below.<br/>
'Payment to Indian Express for new advertisement Rs. 10,000'

414 Identify the correct journal entry for the transaction given
below.<br><br/>Purchase of laptops for all employees worth Rs. 10,00,000

415 Business transactions in a Journal are recorded ______.

Page 21
Sheet1
416 What is the journal entry for the transaction given below?<br/><br/>Collection
of &#8377;450 dividend by the bank of XYZ Co.

417 What is the journal entry for the following transaction?<br/><br/>'Vijay


purchased goods from BigPrime International Rs. 34,000 '

418 What is the journal entry for the transaction given below?<br/><br/>Sold
household furniture for &#8377;5,000 in cash and paid the money into
business
419 What is the journal entry for the transaction given below?<br/><br/>Loss of
goods worth &#8377;40,000 due to fire

420 What is the journal entry for the transaction given below?<br/><br/>Loss of
goods worth &#8377;8,400 due to theft

421 Identify the correct journal entry for the transaction given below.<br/>
'Ramesh withdrew funds for personal use Rs. 1,500'

422 Identify the correct journal entry for the transaction given below.<br/>
'Secured bank loan for business Rs. 10,00,000'

423 Identify the correct journal entry for the transaction given below.<br>'Bob
deposit Rs. 15,000 in his new business bank account'

424 Identify the correct journal entry for the transaction given below.<br>'Started
venture with a capital of Rs. 20,00,000'

425 Identify the correct journal entry for the transaction given below.<br/>
'Provided services to its customers and received Rs. 28,500 in cash'

426 Identify the correct journal entry for the transaction given below.<br/> 'Paid
advance rent for three months Rs. 36,000'

427 Identify the correct journal entry for the transaction given below.<br/>
'Received advance payment from customers Rs. 40,000'

428 Identify the correct journal entry for the transaction given below.<br/>
'Received Rs. 40,000 cash as advance payment from customer'

429 Identify the correct journal entry for the transaction given below.<br/>
'Miscellaneous expenses paid Rs. 6,470'

430 ABC Co. purchased 50 computers from Dell and made payment immediately.
As a result, Dell granted it a discount of &#8377;10,000. What kind of a
discount is received? Also, how will you record it in the books of accounts?

431 If both Trade Discount and Cash Discount are allowed, _________ is allowed
first and thereafter, ________ is allowed.

Page 22
Sheet1
432 Identify the correct journal entry for the transaction given below.<br/> 'Paid
office rent Rs. 8,000 in cash'

433 What is the journal entry for the transaction given below?<br/><br/>Goods
worth &#8377;20,000 given as charity

434 Identify the correct journal entry for the transaction given below.<br/> 'Goods
worth Rs. 15,000 bought and given as charity'

435 The brief description of the transaction in a Journal is called ___________.

436 What is the journal entry for the transaction given below?<br/><br/>Bought
furniture worth &#8377;14,000 for office use by cheque

437 What is the journal entry for the transaction given below?<br/><br/>Received
a cheque of &#8377;23,000 from Sonal

438 What is the journal entry for the transaction given below?<br/><br/>Payment
of &#8377;6,000 by draft to Vinay<br/>(The bank charges on draft are
&#8377;90.)

439 Identify the correct journal entry for the transaction given
below.<br><br/>Withdrew from Bank Rs. 10,000 for personal use

440 Identify the correct journal entry for the transaction given
below.<br><br/>Received Commission in cash for Rs. 8,500

441 What is the journal entry for the transaction given below?
<br/><br/>Purchased building for &#8377;2,50,000 in cash

442 What is the journal entry for the transaction given below?<br/><br/>Paid
cartage &#8377;400

443 What is the journal entry for the transaction given below?
<br/><br/>Commission of &#8377;10,000 paid as cash

444 What is the journal entry for the transaction given below?<br/><br/>Open a
bank account with SBI for &#8377;35,000

Page 23
Sheet1
445 Identify the correct journal entry for the transaction given below.<br/>
'Introduced Rs. 8,00,000 as cash and Rs. 50,000 by stock'

446 Identify the correct journal entry for the transaction given below.<br/>
'Provided Rs. 54,100 worth of services to its customers. They paid Rs. 32,900
and promised to pay the remaining amount.'

447 What is the journal entry for the transaction given below?<br/><br/>Goods
costing &#8377;15,000 given as charity

448 Identify the correct journal entry for the transaction given
below.<br>'Depreciation Paid for Rs. 2,000 on Computer equipment'

449 What is the journal entry for the transaction given below?<br/><br/>Paid
&#8377;5,000 to a creditor

450 Identify the correct journal entry for the transaction given
below.<br>'Depreciation Paid for Rs. 1,500 on Furniture '

451 What is the journal entry for the transaction given below?<br/><br/>Cash of
&#8377;2,000 withdrawn for household purposes

452 What is the journal entry for the transaction given below?<br/><br/>Interest of
&#8377;850 allowed by the bank<br/>

453 What is the journal entry for the transaction given below?<br/><br/>Kanika
pays &#8377;14,000 cash

454 What is the journal entry for the transaction given below?<br/><br/>Interest
on loan &#8377;600

Page 24
Sheet1
455 Identify the correct journal entry for the transaction given
below.<br><br/>Took Loan from Ramesh for Rs. 1,20,000

456 Identify the correct journal entry for the transaction given
below.<br><br/>Kritika took a loan of Rs. 70,000 from her brother Jatin

457 What is the journal entry for the transaction given below?<br/><br/>Salary of
&#8377;7,500 outstanding

458 What is the journal entry for the transaction given below?<br/><br/>Cash of
&#8377;7,000 withdrawn for wife's birthday party

459 Identify the correct journal entry for the transaction given below.<br>'Returned
consignment to Krishna Enterprises for Rs. 1,20,000'

460 Identify the correct journal entry for the transaction given below.<br>'Returned
goods to Star Enterprise for Rs. 15,000'

461 What is the journal entry for the transaction given below?
<br/><br/>Purchased goods of &#8377;36,000 out of which goods of
&#8377;15,000 were on credit from Daisy

462 What is the journal entry for the transaction given below?<br/><br/>Received
from Ram &#8377;12,000 in cash and allowed him discount of &#8377;100

463 What is the journal entry for the transaction given below?<br/><br/>Paid
&#8377;800 for refreshment

464 Identify the correct journal entry for the transaction given below.<br>'Paid
office rent by Cheque for Rs. 7,200'

465 Identify the correct journal entry for the transaction given below.<br>'Gave a
discount of Rs. 20 on a cash sales of Rs. 1000'

Page 25
Sheet1
466 What is the journal entry for the transaction given below?<br/><br/>Cash
sales for the month &#8377;8,000

467 Mr. Aggarwal has recently purchased a cutting die machine on credit from
SteelDealers Pvt Ltd. How will this journal entry be recorded?

468 Arpit purchased spare parts of his machinery on credit from Steelmakers Pvt.
Ltd. How will this journal entry be recorded?

469 What is the journal entry for the transaction given below?<br/><br/>Telephone
bill of &#8377;500 paid by cheque

470 Identify the correct journal entry for the transaction given
below.<br>'Depreciation Paid for Rs. 1,50,000 on Vehicle '

471 What is the journal entry for the transaction given below?<br/><br/>Provide
10% depreciation on furniture costing &#8377;7,000

472 Identify the correct journal entry for the transaction given below.<br/> 'Paid
Rs. 5,00,000 as dividends'

473 What is the journal entry for the transaction given below?<br/><br/>Goods
worth &#8377;10,000 taken for personal use

474 Identify the correct journal entry for the transaction given below.<br/> 'Cash
withdrawn for household purposes Rs. 8,000'

475 Identify the correct journal entry for the transaction given below.<br/> ' Paid
salary for this month Rs. 1,56,000 in cash'

476 Identify the correct journal entry for the transaction given below.<br/> 'The
company purchased equipment worth Rs. 4,12,000 and paid in cash.'

477 State whether the following statement is true.<br/><br/>Journal is also called


the Book of Original Entry since all transactions are initially recorded in it.

478 State whether the following statement(s) is/are true.<br/><ol><li>Simple


Journal Entry is an entry in which only two accounts are affected i.e. one
account is debited and the other is credited with an equal
amount.</li><li>Compound Journal Entry is an entry in which two or more
accounts are debited and one or more accounts are credited or vice
versa.</li></ol>?

Page 26
Sheet1
479 What is the journal entry for the transaction given below?<br/><br/>Wood
worth &#8377;4,000 used for making office furniture

480 A company has borrowed Rs. 2,00,000 from a private bank. Identify if the
journal entry for this is correct or incorrect. <br/><br/>Cash account Dr Rs.
2,00,000 To Owner's Equity account Rs. 2,00,000
481 A company has paid the telephone bill of Rs. 4,300 by cheque. Identify if the
journal entry for this is correct or incorrect. <br/><br/>Telephone expenses
account Debit Rs. 4,300 to Bank a/c Rs. 4,300
482 A company has purchased stationery worth Rs. 4,900 in cash. Identify if the
journal entry for this is correct or incorrect. <br/><br/>Cash account Debit Rs.
4,900 to Stationery a/c Rs. 4,900
483 A company sold goods to Rajani Enterprises for Rs. 1,25,000. Identify if the
journal entry for this is correct or incorrect. <br/><br/>Sales account Debit Rs.
1,25,000 to Rajani Enterprises a/c Rs. 1,25,000
484 A customer prepays Ajay Rs. 8,000 for guitar lessons for the next 6 months.
Identify if the journal entry for this is correct or incorrect. <br/>'Cash a/c Dr Rs.
8,000 To Unearned Income a/c Rs. 8,000'
485 A departmental store has paid the monthly store rent of Rs. 25,500 in cash.
Identify if the journal entry for this is correct or incorrect. <br/><br/>Rent
Account Debit Rs. 25,500 to Bank a/c Rs. 25,500
486 BigStar Pvt Ltd. purchases goods worth Rs. 2,50,000 from Ganga Intl on
credit. Identify if the journal entry for this is correct or incorrect.
<br/>'Goods Purchase account Dr. Rs. 2,50,000 To Ganga Intl account
Rs. 2,50,000'
487 BL Enterprises has paid its rent of Rs. 80,000 in advance for the next 8
months. Identify if the journal entry for this is correct or incorrect.
<br/><br/>Prepaid rent account Dr Rs. 80,000 To Cash account Rs. 80,000

488 DB Enterprises borrowed Rs. 47,000 in cash from a nearby lender. Identify if
the journal entry for this is correct or incorrect. <br/><br/>Cash Debit Rs.
47,000 to Borrowings a/c Rs. 47,000
489 GlobalStar International borrowed Rs. 1,45,000 in cash from a lender to for
finishing an order. Identify if the journal entry for this is correct or incorrect.
<br/><br/>Cash Debit Rs. 1,45,000 to Borrowings a/c Rs. 1,45,000

490 Komal has invested Rs. 20,00,000 in her new venture. The journal entry for
this is as follows: <br/><br/> Cash debit Rs. 20,00,000 to Owner's Equity Rs.
20,00,000<br/><br/> Is this entry correct or incorrect?
491 Kyrion Ltd. has paid Rs. 5,000 in cash for the repair of a broken lever of a
machine. The journal entry for this is as follows: <br/><br/> Machinery a/c
debit Rs. 5,000 to Cash Rs. 5,000<br/><br/> Is this entry correct or incorrect?

492 Starpress Intl has paid the wages amounting to Rs. 5,00,000 to its employees
in cash. Identify if the journal entry for this is correct or incorrect.
<br/><br/>Wages account Dr Rs. 5,00,000 To Cash account Rs. 5,00,000

Page 27
Sheet1
493 The owner of a company has invested Rs. 15,00,000 in the company. Identify
if the journal entry for this is correct or incorrect. <br/><br/>Cash account Dr
Rs. 15,00,000 To Borrowings account Rs. 15,00,000
494 Identify the correct journal entry for the transaction given
below.<br>'Received Interest for Rs. 53,000'

495 Identify the correct journal entry for the transaction given below.<br>'Interest
on capital amount Rs. 67,000'

496 What is the journal entry for the transaction given below?<br/><br/>Interest
on drawings of &#8377;1,500

497 What does the transaction 'Goods sold to Mohan' mean?

498 A Ledger Account is prepared from _______.


499 Identify the correct journal entry for the transaction given below.<br><br/>Sale
of goods to Kyrion Ltd. on credit Rs. 75,000

500 Identify the correct journal entry for the transaction given below.<br/>
'Purchased land in cash Rs. 10,00,000'

501 What is the journal entry for the transaction given below?<br/><br/>Paid
&#8377;2,500 for installation of machinery

502 Identify the correct journal entry for the transaction given below.<br/> 'Paid
trade expenses Rs. 950 '

503 Identify the correct journal entry for the transaction given below.<br/>
'Purchased business car for Rs. 5,00,000 in cash'

504 Identify the correct journal entry for the transaction given below.<br/>
'Purchased office supplies Rs. 9,500 in cash'

505 What is the journal entry for the transaction given below?<br/><br/>Out of the
total rent paid this year, &#8377;2,000 relates to the next year

506 To which account is the 'introduction of funds in the business by the


proprietor' credited?
507 Identify the correct journal entry for the transaction given below.<br/> 'Baking
equipment bought from Cookware Intl Rs. 12,000'

508 What is the journal entry for the transaction given below?
<br/><br/>Purchased goods from Sanjay worth &#8377;45,000 at 10% Trade
Discount

Page 28
Sheet1
509 What is the journal entry for the transaction given below?
<br/><br/>Purchased goods from Priya worth &#8377;45,000 at 5% Cash
Discount

510 What is the journal entry for the transaction given below?<br/><br/>Rent due
to landlord &#8377;500

511 What is the journal entry for the transaction given below?<br/><br/>Salaries
due to Administrative staff of a company &#8377;50,000

512 Identify the correct journal entry for the transaction given
below.<br><br/>KenStar Intl recorded a cash Sale of Rs. 1,50,000.

513 What is the journal entry for the transaction given below?<br/><br/>Goods
worth &#8377;1,000 distributed as free samples for promotion purposes

514 What is the journal entry for the transaction given below?<br/><br/>Transfer
of &#8377;7,200 from State Bank of India (SBI) to Punjab National Bank
(PNB)
515 What is the journal entry for the transaction given below?<br/><br/>Stock at
the end of the year &#8377;3,000

516 What is the meaning of the term 'Posting'?

517 What is the journal entry for the transaction given below?<br/><br/>Received
from a salesman &#8377;6,200 for goods sold by him after deducting his
travelling expenses of &#8377;250

518 Identify the correct journal entry for the transaction given below.<br/>
'Received electricity bill of Rs. 1,375'

519 Identify the correct journal entry for the transaction given below.<br/>
'Received telephone bill of Rs. 1,494'

520 Identify the correct journal entry for the transaction given below.<br/>
'Received a cheque from Warnem Bros Rs. 56,000 '

521 Salary expense will be on the _________ side of the trial balance.
522 Capital account will be on the _________ side of the trial balance.
523 Car Loan will be on the _________ side of the balance sheet.
524 Administrative expenses are posted in which financial statement?

525 Amount invested in share market is posted in which financial statement?

Page 29
Sheet1
526 Bank charges are posted in which financial statement?

527 Cost towards advertisements are posted in which financial statement?

528 Cost towards 'Commission paid' are posted in which financial statement?

529 Custom duty paid is posted in which financial statement?

530 Discount Received is posted in which financial statement?

531 Freehold property is posted in which financial statement?

532 Freight charges paid is posted in which financial statement?

533 Interest paid on loan is posted in which financial statement?

534 Mortgaged value is posted in which financial statement?

535 Student Loan is posted in which financial statement?

536 Taxes paid is posted in which financial statement?

537 Value of furniture is posted in which financial statement?

538 Value of machinery and equipment is posted in which financial statement?

539 Value of raw materials is posted in which financial statement?

540 Identify the correct side of the financial statements to post Outstanding
Salaries.

Page 30
Sheet1
optionA optionB optionC

Decrease total assets and Decrease current assets Decrease total assets and
increase net income and increase expenses decrease earnings before
taxes

Balance Sheet P&L a/c Trial Balance

Balance Sheet Income Statement Statement of Cash Flows

When cash is received When service or goods


have been delivered
Cost Current Market Value Expected Selling Price

Debit Credit
debited credited
debited credited
debited credited
Accounts Payable Prepaid Insurance Unearned Revenue
Accounts Receivable Land Prepaid Insurance
Debit Credit
Accounts Payable Accrued Expenses Cash
Real Account Nominal Account Personal Account
Real Account Nominal Account Personal Account
Real Account Nominal Account Personal Account
Real Account Nominal Account Personal Account
Real Account Nominal Account Personal Account
Real Account Nominal Account Personal Account
True False

Debit what comes in & Debit the receiver & Debit all Expenses & Credit all
credit what goes out Credit the giver Income
Debit what comes in & Debit the receiver & Debit all Expenses & Credit all
credit what goes out Credit the giver Income
Debit what comes in & Debit the receiver & Debit all Expenses & Credit all
credit what goes out Credit the giver Income
Single Entry Book Keeping Double Entry Book Contra Entry Book Keeping
Keeping
Debit Cash a/c by Rs. Debit Purchase a/c by Debit Cash a/c by Rs. 15,000
15,000 and credit Purchase Rs. 15,000 and credit and credit Goods a/c by Rs.
a/c by Rs. 15,000 Cash a/c by Rs. 15,000 15,000

Page 31
Sheet1
Debit Sales a/c by Rs. Debit Purchase a/c by Debit Cash a/c by Rs. 20,000
20,000 and credit Cash a/c Rs. 20,000 and credit and credit Sales a/c by Rs.
by Rs. 20,000 Cash a/c by Rs. 20,000 20,000

Debit Bank a/c by Rs. Debit Land a/c by Rs. Debit Machinery a/c by Rs.
45,000 and credit 45,000 and credit Cash 45,000 and credit Cash a/c by
Machinery a/c by Rs. a/c by Rs. 45,000 Rs. 45,000
45,000
Debit Cash a/c by Rs. Debit Bank a/c by Rs. Debit Withdrawal a/c by Rs.
5,000 and credit Bank a/c 5,000 and credit Cash 5,000 and credit Cash a/c by
by Rs. 5,000 a/c by Rs. 5,000 Rs. 5,000

Debit Rent a/c by Rs. 8,000 Debit Rent a/c by Rs. Debit Cash a/c by Rs. 8,000
and credit Rent Received 8,000 and credit Cash and credit Rent a/c by Rs.
a/c by Rs. 8,000 a/c by Rs. 8,000 8,000

Debit C a/c by Rs. 15,000 Debit Sales a/c by Rs. Debit Cash a/c by Rs. 15,000
and credit Sales a/c by Rs. 15,000 and credit C a/c and credit Sales a/c by Rs.
15,000 by Rs. 15,000 15,000

Debit Outstanding Rent a/c Debit Prepaid Rent a/c Debit Cash a/c by Rs. 500 and
by Rs. 500 and credit Cash by Rs. 500 and credit credit Rent a/c by Rs. 500
a/c by Rs. 500 Cash a/c by Rs. 500

Debit Outstanding Salary Debit Salary a/c by Rs. Debit Cash a/c by Rs. 5,000
a/c by Rs. 5,000 and credit 5,000 and credit and credit Outstanding Salary
Cash a/c by Rs. 5,000 Outstanding Salary a/c a/c by Rs. 5,000
by Rs. 5,000

Debit Cash a/c by Rs. Debit Bank a/c by Rs. Debit Commission a/c by Rs.
6,000 and credit 6,000 and credit 6,000 and credit Cash a/c by
Commission a/c by Rs. Commission a/c by Rs. Rs. 6,000
6,000 6,000

Debit Stationery a/c by Rs. Debit Cash a/c by Rs. Debit Stationery a/c by Rs.
200 and credit Cash a/c by 200 and credit 200 and credit P&L a/c by Rs.
Rs. 200 Stationery a/c by Rs. 200
200
Debit Capital a/c by Rs. Debit Cash a/c by Rs. Debit Capital a/c by Rs.
25,000 and credit Cash a/c 25,000 and credit 25,000 and credit Loan a/c by
by Rs. 25,000 Capital a/c by Rs. Rs. 25,000
25,000
Debit Capital a/c by Rs. Debit Bank a/c by Rs. Debit Loan a/c by Rs. 5,000
5,000 and credit Cash a/c 5,000 and credit Loan and credit Bank a/c by Rs.
by Rs. 5,000 a/c by Rs. 5,000 5,000

Debit Loan a/c by Rs. Debit Cash a/c by Rs. Debit Capital a/c by Rs.
1,00,000 and credit Owner 1,00,000 and credit 1,00,000 and credit Cash a/c
a/c by Rs. 1,00,000 Capital a/c by Rs. by Rs. 1,00,000
1,00,000

Page 32
Sheet1
Debit Purchase a/c by Rs. Debit Cash a/c by Rs. Debit Purchase a/c by Rs.
20,000 and credit Cash a/c 20,000 and credit 20,000 and credit Peter a/c by
by Rs. 20,000 Purchase a/c by Rs. Rs. 20,000
20,000

Debit Peter a/c by Rs. Debit Purchase Return Debit Peter a/c by Rs. 5,000
5,000 and credit Purchase a/c by Rs. 5,000 and and credit Purchase a/c by Rs.
Return a/c by Rs. 5,000 credit Peter a/c by Rs. 5,000
5,000

Debit Cash a/c by Rs. Debit Loan a/c by Rs. Debit Loan a/c by Rs. 25,000
25,000 and credit Loan a/c 25,000 and credit Cash and credit Jack a/c by Rs.
by Rs. 25,000 a/c by Rs. 25,000 25,000

Debit Cheque a/c by Rs. Debit Rent a/c by Rs. Debit Rent a/c by Rs. 200 and
200 and credit Rent a/c by 200 and credit Cash a/c credit Bank a/c by Rs. 200
Rs. 200 by Rs. 200

Debit Interest a/c by Rs. Debit Cash a/c by Rs. Debit Interest a/c by Rs.
14,000 and credit Cash a/c 14,000 and credit 14,000 and credit P&L a/c by
by Rs. 14,000 Interest a/c by Rs. Rs. 14,000
14,000
Debit Plant & Machinery Debit Plant & Machinery Debit Depreciation a/c by Rs.
a/c by Rs. 500 and credit a/c by Rs. 500 and 500 and credit Plant &
Cash a/c by Rs. 500 credit Depreciation a/c Machinery a/c by Rs. 500
by Rs. 500

Debit Intel a/c by Rs. Debit Computer a/c by Debit Computer a/c by Rs.
25,000 and credit Cash a/c Rs. 25,000 and credit 25,000 and credit Intel a/c by
by Rs. 25,000 Cash a/c by Rs. 25,000 Rs. 25,000

Debit Sundry Debtors a/c Debit Sales a/c by Rs. Debit Sundry Debtors a/c by
by Rs. 200 and credit Cash 200 and credit Sundry Rs. 200 and credit Sales a/c by
a/c by Rs. 200 Debtors a/c by Rs. 200 Rs. 200

Debit Purchase a/c by Rs. Debit Purchase a/c by Debit Sundry Creditors a/c by
1,000 and credit Sundry Rs. 1,000 and credit Rs. 1,000 and credit Purchase
Creditors a/c by Rs. 1,000 Cash a/c by Rs. 1,000 a/c by Rs. 1,000

Debit Cash a/c by Rs. 882, Debit Sales a/c by Rs. Debit Sales a/c by Rs. 882 and
debit Discount a/c by Rs. 882, debit Discount a/c credit Cash a/c by Rs. 882
18 and credit Sales a/c by by Rs. 18 and credit
Rs. 900 Cash a/c by Rs. 900

Debit Ram a/c by Rs. Debit Bad Debts a/c by Debit Ram a/c by Rs.
10,000<br>Debit Shyam Rs. 15,000<br>Credit 10,000<br>Debit Shyam a/c
a/c by Rs. 5,000<br>Credit Ram a/c by Rs. by Rs. 5,000<br>Credit Bad
Cash a/c by Rs. 15,000 5,000<br>Credit Debts a/c by Rs. 15,000
Shyam a/c by Rs. 5,000

Page 33
Sheet1
Correct Incorrect

Debit Land a/c by Rs. Debit Cash a/c by Rs. Debit Cash a/c by Rs.
8,00,000 and credit Cash 8,00,000 and credit 8,00,000, credit Land a/c by
a/c by Rs. 8,00,000 Land a/c by Rs. Rs. 5,00,000 and credit Profit
8,00,000 on sale a/c by Rs. 3,00,000

Debit Purchase a/c by Rs. Debit Paul a/c by Rs. Debit Paul a/c by Rs. 3,000
24,000, credit Paul a/c by 24,000, credit Purchase and credit Purchase a/c by Rs.
Rs. 24,000 and Debit Paul a/c by Rs. 24,000 and 3,000
a/c by Rs. 3,000, credit Debit Paul a/c by Rs.
Purchase a/c by Rs. 3,000 3,000, credit Purchase
a/c by Rs. 3,000

Debit Sales a/c by Rs. Debit Sales a/c by Rs. Debit Monica a/c by Rs.
48,000 and credit Monica 65,000, credit Monica 65,000, credit Sales a/c by Rs.
a/c by Rs. 48,000 a/c by Rs. 65,000 and 65,000 and Debit Sales a/c by
Debit Monica a/c by Rs. Rs. 48,000, credit Monica a/c
48,000, credit Sales a/c by Rs. 48,000
by Rs. 48,000

Correct Incorrect

Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side
Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side
Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side
Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side
Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side

Page 34
Sheet1
Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side
Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side
Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side
Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side
Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side
Profit & Loss a/c Debit Profit & Loss a/c Credit Balance Sheet Assets
Side<br>Balance Sheet Side<br>Balance Sheet Side<br>Profit & Loss a/c
Liabilities Side Assets Side Debit Side

Profit & Loss a/c Debit Profit & Loss a/c Credit Balance Sheet Assets
Side<br>Balance Sheet Side<br>Balance Sheet Side<br>Profit & Loss a/c
Liabilities Side Assets Side Debit Side

Profit & Loss a/c Debit Balance Sheet Balance Sheet Assets
Side<br>Balance Sheet Liabilities Side<br>Profit & Loss a/c
Assets Side Side<br>Profit & Loss Credit Side
a/c Credit Side

Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side
Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side
Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side
Profit & Loss a/c Debit Profit & Loss a/c Credit Balance Sheet Assets
Side<br>Balance Sheet Side<br>Balance Sheet Side<br>Profit & Loss a/c
Liabilities Side Liabilities Side Debit Side

Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side
Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side
Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side
Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side
Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side

Page 35
Sheet1
Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side
Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side
Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side
Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side
Profit & Loss a/c Debit Profit & Loss a/c Credit Profit & Loss a/c Debit
Side<br>Balance Sheet Side<br>Balance Sheet Side<br>Balance Sheet
Assets Side Assets Side Liabilities Side

Profit & Loss a/c Debit Profit & Loss a/c Credit Balance Sheet Assets
Side<br>Balance Sheet Side<br>Balance Sheet Side<br>Profit & Loss a/c
Assets Side Liabilities Credit Side

Profit & Loss a/c Debit Profit & Loss a/c Credit Balance Sheet Assets
Side<br>Balance Sheet Side<br>Balance Sheet Side<br>Profit & Loss a/c
Assets Side Liabilities Side Credit Side

Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side
Error account Wealth account Suspense account
Purchase account Dr. to Mayank Ltd. account Dr. Purchase account Dr. to Cash
Mayank Ltd. account to Purchase account account
Profit and Loss account Trading account Capital account

profit depreciation value of current assets

Profit and Loss account Trading account Trial balance

revenue expenditure referred expenditure contingency expenditure

Assets Liabilities Goodwill will not be recorded


at any side.
current assets fixed assets fixed liabilities

Furniture account Cash account Building account


Supplier account Dr. to Purchase return account Supplier account Dr. to Goods
Purchase return account Dr. to Supplier account purchased account

income expense liability

Page 36
Sheet1
credit, debit debit, credit receipt, payment

Liquid assets Current assets Securities


allows the depositor to is a credit reference is a bill from the bank for the
know the financial position letter written by a services rendered
of the bank banker

asset loan expense


Current account Asset Overdraft

Nominal account Personal account Real account


Assets = Liabilities Capital = Liability Assets = Liabilities + Capital

Cash account Dr. Rs. 5000 Assets account Dr. Rs. Furniture account Dr. Rs. 5000
To Furniture account Rs. 5000 To Purchases To Cash account Rs. 5000
5000 account Rs. 5000

Bank account Dr. To Cash Cash account Dr. To Capital account Dr. To Bank
account Bank account account
Trading account Profit and Loss account Profit and Loss appropriation
account
expense for the business expenditure for the gain for the business
business
expense asset liability
Trading account, Balance Trading account, Profit Profit and Loss appropriation
sheet, Profit and Loss and Loss account, account, Balance sheet
account Balance sheet

To Capital account - Rs. By Capital account - Rs. To Cash account - Rs. 20,000
20,000 20,000
the difference in the bank the difference in the the cash book balance
and cash book balance passbook balance in the
beginning of the year

return of goods purchased return of anything return of goods sold


purchased
Legal fees Insurance Interest on bonds

Mr. Ram's account Cash account Salary account

Plant and machinery Prepaid salary Stock of goods


Profit and Loss account Suspense account Capital account

Accounts receivable Accounts payable Sales

Page 37
Sheet1
Cash account Bank account Machinery account

asset liability expense


Land Building Furniture
liability side of balance assets side of the Profit and Loss account
sheet balance sheet
Cash account Dr. Rs. Assets account Dr. Rs. Computer account Dr. Rs.
40,000 To Assets account 40,000 To Purchases 40,000 To Cash account Rs.
Rs. 40,000 account Rs. 40,000 40,000

Grasse Enterprises account Grasse Enterprises Grasse Enterprises account Dr.


Dr. Rs. 25,000 To Purchase account Dr. Rs. 25,000 Rs. 25,000 To Assets account
account Rs. 25,000 To Sale account Rs. Rs. 25,000
25,000

Cash account Dr. Rs. Assets account Dr. Rs. Assets account Dr. Rs. 20,000
20,000 To Capital account 20,000 To Cash account To Capital account Rs. 20,000
Rs. 20,000 Rs. 20,000

Cash account Dr. Rs. 1,800 Freight account Dr. Rs. Cash account Dr. Rs. 1,800 To
To Assets account Rs. 1,800 To Cash account Freight account Rs. 1,800
1,800 Rs. 1,800

Cash account Dr. Rs. 1,500 Assets account Dr. Rs. Computer account Dr. Rs.
To Assets account Rs. 1,500 To Purchases 1,500 To Cash account Rs.
1,500 account Rs. 1,500 1,500

Bank account Dr. Rs. Assets account Dr. Rs. Bank account Dr. Rs. 50,000
50,000 To Cash account Rs. 50,000 To Cash account To Salary account Rs. 50,000
50,000 Rs. 50,000

Cash account Dr. Rs. Office expenses Assets account Dr. Rs. 16,000
16,000 To Saving account account Dr. Rs. 16,000 To Cash account Rs. 16,000
Rs. 16,000 To Cash account Rs.
16,000
Ravi Stationers account Dr. Purchase account Dr. Purchase account Dr. Rs.
Rs. 4,000 To Saving Rs. 4,000 To Office 4,000 To Ravi Stationers
account Rs. 4,000 expenses account Rs. account Rs. 4,000
4,000

Cash account Dr. Rs. Computer account Dr. Assets account Dr. Rs. 60,000
60,000 To Assets account Rs. 60,000 To Cash To Purchases account Rs.
Rs. 60,000 account Rs. 60,000 60,000

Cash account Dr. Rs. Sale account Dr. Rs. Assets account Dr. Rs. 30,000
30,000 To Sale account Rs. 30,000 To Cash account To Sale account Rs. 30,000
30,000 Rs. 30,000

Cash account Dr. Rs. Office expenses Salary account Dr. Rs.
7,00,000 To Salary account account Dr. Rs. 7,00,000 To Office expenses
Rs. 7,00,000 7,00,000 To Cash account Rs. 7,00,000
account Rs. 7,00,000

Page 38
Sheet1
Cash account Dr. Rs. Goods Purchase Goods Purchase account Dr.
38,000 To Goods Purchase account Dr. Rs. 38,000 Rs. 38,000 To ABC account Rs.
account Rs. 38,000 To Cash account Rs. 38,000
38,000
Cash account Dr. Rs. Bank account Dr. Rs. Savings account Dr. Rs.
50,000 To Bank account 50,000 To Cash account 50,000 To Cash account Rs.
Rs. 50,000 Rs. 50,000 50,000

Cash account Dr. Rs. Prepaid rent account Dr. Rent account Dr. Rs. 12,000 To
12,000 To Bank account Rs. 12,000 To Cash Prepaid rent account Rs.
Rs. 12,000 account Rs. 12,000 12,000

XYZ International account XYZ International XYZ International account Dr.


Dr. Rs. 45,000 To Purchase account Dr. Rs. 45,000 Rs. 45,000 To Assets account
account Rs. 45,000 To Cash account Rs. Rs. 45,000
45,000

Freight account Dr. Rs. Air Conditioner account Assets account Dr. Rs. 2,500
2,500 To Assets account Dr. Rs. 2,500 To Cash To Purchases account Rs.
Rs. 2,500 account Rs. 2,500 2,500

Only 1 Only 2 Both 1 and 2

Only 1 Only 2 Both 1 and 3

Bank Overdraft Cash in hand Expenses of organization

Bank Overdraft Cash in hand Expenses of organization

Depreciation helps in Depreciation helps to Depreciation allows to take


ascertaining uniform profit ascertain the true profit the advantage of tax benefit.
in each accounting year. during a year.

Building Land Vehicle


Goodwill Leasehold Patent
Accounts payable Notes payable Dividends payable

Oil and gas properties Equipments and Patents and trademarks


machinery
Assets - Liabilities Liabilities - Assets Assets + Liabilities
Capital expense Revenue expense Revenue receipt

Asset Liability Revenue


Revenue expense Operating expense Administrative expense

Page 39
Sheet1
When assets exceeds When income exceeds When income exceeds
expenditure liabilities expenditure
Profit & Loss account Balance sheet Income & Expenditure account

General expenses Financial expenses Selling expenses


right or debit side of the left or debit side of the left or credit side of the
account account account
right or debit side of the left or debit side of the left or credit side of the
account account account
The assets side of the The assets side of the The liability side of the
balance sheet will balance sheet will balance sheet will decrease
decrease increase

On the debit side of the On the credit side of the On the liabilities side of the
profit and loss account profit and loss account balance sheet
Drawing a/c Debit; Income Capital a/c Debit; Drawing a/c Debit; Capital -
Summary - Credit Drawing - Credit Credit

Building - Debit <br/> Cash -Debit Building - Debit <br/> Owner's


Cash - Credit <br/>Building - Credit equity - Credit

Equipment Accumulated Retained Earnings


Depreciation:
Equipment

Debit side would decrease Credit side would Total of the trial balance would
by same amount increase by same agree in all aspects
amount

Balance Sheet assets side Balance Sheet liabilities Profit & Loss a/c debit side
side
Investment Current Loan & Provision
Only 1 Advances
Only 2 Both 1 and 2

Capital a/c Debit <br/> Drawing a/c Debit Income Summary a/c Debit
Drawing a/c Credit <br/> Capital a/c Credit <br/> Drawing a/c Credit

Both sides are always Both sides are negative Both sides are equal
positive
Capital Accounts receivables Advertising expenses
Accounts receivable Deferred income Cash and equivalents
Double entry Multiple entry Compound entry

Page 40
Sheet1
Raw material Advertising Depreciation

Consistency concept Conservatism concept Accounting period concept

Assets side of balance Liability side of balance Half on assets side and half on
sheet sheet liability side
Entity concept Periodicity concept Materiality principle
Land and building Wages and salary Computer equipment
Land lord a/c Rent a/c Cash a/c
To bring account balances To close temporary To close permanent accounts
up to date at year end accounts at year end at year end
Only 1 Only 2 Only 3

Cash account Dr. Rs. Cash account Dr. Rs. Savings account Dr. Rs.
12,00,000 To Accounts 12,00,000 To Loans 12,00,000 To Loans Payable
Payable Rs. 12,00,000 Payable Rs. 12,00,000 Rs. 12,00,000

Assets account Dr. Rs. Cash account Dr. Rs. Assets account Dr. Rs. 90,000
90,000 To Cash account Rs. 90,000 To Capital To Capital account Rs. 90,000
90,000 account Rs. 90,000

Debit Capital a/c by Rs. Debit Bank a/c by Rs. Debit Loan a/c by Rs. 12,000
12,000 and credit Cash a/c 12,000 and credit Loan and credit Bank a/c by Rs.
by Rs. 12,000 a/c by Rs. 12,000 12,000

Debit Kyle International a/c Debit Purchase Return Debit Kyle International a/c by
by Rs. 9,000 and credit a/c by Rs. 9,000 and Rs. 9,000 and credit Purchase
Purchase Return a/c by Rs. credit Kyle International a/c by Rs. 9,000
9,000 a/c by Rs. 9,000

Cash account Dr. Rs. Assets account Dr. Rs. Computer account Dr. Rs.
1,20,000 To Assets account 1,20,000 To Purchases 1,20,000 To Cash account Rs.
Rs. 1,20,000 account Rs. 1,20,000 1,20,000

Interest Dr. Rs. 23,000 To Interest on capital Dr. Interest on capital Dr. Rs.
Capital account Rs. 23,000 Rs. 23,000 To Capital 23,000 To Cash account Rs.
account Rs. 23,000 23,000

True False

Debit Credit
Debit Credit

Page 41
Sheet1
Land Building Cash
True False

Cash and cash equivalents Creditors Accounts payable


Depreciation Drawings Outflow of cash

expenses are less than expenses are greater expenses are equal to income
income than income
True False

Machinery account Building account Creditors account

Cash account Rent income account Rent expenses account

Asset Liability Loss


1 2 3

True False

Aman account Dr. Rs. Sale account Dr. Rs. Sale account Dr. Rs. 2,50,000
2,50,000 To Sale account 2,50,000 To Cash To Aman account Rs. 2,50,000
Rs. 2,50,000 account Rs. 2,50,000

Wages account Dr. Rs. Salary account Dr. Rs. Wages account Dr. Rs. 10,000
10,000 To Bank account 10,000 To Wages To Cash account Rs. 10,000
Rs. 10,000 account Rs. 10,000

True False

Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side
Postage expenses Bad debts Interest paid on loans

Bills payable Bills receivable Outstanding expenses

Prepaid expenses Bills receivable Cash in bank

True False

debit credit

Asset Liability Revenue


debit credit

Page 42
Sheet1
Accounts Receivable Accounts Payable Cash at bank
Advertising cost Bank loan Salaries

True False

Market securities Bad debts Office expenses


Liabilities side Assets side
True False

Revenues, Expenses and Cash inflows and cash Assets, Liabilities and Owner's
Net Income outflows Equity
Debit MediaX International Debit MediaX Debit Machinery account<br/>
account<br/> Credit International Credit MediaX International
Machinery account account<br/> Credit account
Purchases account

Correct Incorrect

Correct Incorrect

Correct Incorrect

Correct Incorrect

Correct Incorrect

Correct Incorrect

Land Motor vehicles Plant and machinery

Machinery Equipment Cash in hand


Cash sales Cash received from Cash paid to creditors
debtors

Page 43
Sheet1
Trial balance Trading and profitand Balance sheet
loss a/c
Capital Proprietors Interest on capital
True False

Capital account Fixed assets account Building account

Nominal Real Capital


Nominal Real Capital
Manager's Account Office Expenses Account Salary Account
Debit Stationery a/c and credit Debit Cash a/c and credit Debit Stationery a/c and credit
Cash a/c Stationery a/c P&L a/c
Discount received Sales Rent
Debit side Credit side Asset side
Debit Plant & Machinery
Debit Plant & Machinery a/c a/c and credit Depreciation Debit Depreciation a/c and credit
and credit Cash a/c a/c Plant & Machinery a/c

Debit side Credit side Asset side

True False

Accumulated depreciation Income taxes payable Accrued expenses

decreasing liabilities increasing assets increasing liabilities

Capital Cash Bank

Correct Incorrect
Accounts payable Long-term loans Income tax payable
As an asset As a liability As a revenue
Loss on the sale of
Current liabilities equipment Cash received from customers
Tax payable Accounts payable Customer deposits

Accumulated depreciation Income taxes payable Accrued expenses


Purchasing a new machine
Obtaining a loan from a bank for the factory Hiring a new employee

Revenue expenditure Capital expenditure Deferred Revenue expenditure

True False

True False

Page 44
Sheet1
Cheque issued but not Cheque deposited but not
presented cleared Cheque wrongly credited by bank
Debit side Credit side Asset side

Accounts receivable Long term loan Inventory


Cash Rent income Rent expenses
Credit side of the Cash This transaction does not get
Debit side of the Cash Book Book recorded in the Cash Book

Correct Incorrect

True False

Rs. 3,60,000 Rs. 2,00,000 Rs. 1,60,000


Purchase return Petty expenses Commission received

Profit & Loss a/c Debit Profit & Loss a/c Credit Balance Sheet Assets
Side<br>Balance Sheet Side<br>Balance Sheet Side<br>Profit & Loss a/c Debit
Liabilities Side Assets Side Side
Sales revenue Liability income Interest income
Credit side of the Cash This transaction does not get
Debit side of the Cash Book Book recorded in the Cash Book
Capital Cash Sales
Debit Capital a/c and credit Debit Cash a/c and credit Debit Capital a/c and credit Loan
Cash a/c Capital a/c a/c
Debit Interest a/c and credit Debit Cash a/c and credit Debit Interest a/c and credit P&L
Cash a/c Interest a/c a/c
Debit Cash a/c and credit Debit Bank a/c and credit Debit Commission a/c and credit
Commission a/c Commission a/c Cash a/c
Assets Liabilities Equity
Bills payable Drawings Bank loan
Credit side of the Cash This transaction does not get
Debit side of the Cash Book Book recorded in the Cash Book
Profit & Loss a/c Credit
Profit & Loss a/c Debit Side Side Balance Sheet Assets Side
Purchasing a new machine
Obtaining a loan from a bank for the factory Hiring a new employee
Profit & Loss a/c Credit
Profit & Loss a/c Debit Side Side Balance Sheet Assets Side

Revenue expenditure Capital expenditure Deferred Revenue expenditure

Salaries Rent and rates Commission earned

Profit and Loss Account Trading Account Balance Sheet

Page 45
Sheet1

True False
Purchasing a new machine
Obtaining a loan from a bank for the factory Hiring a new employee

Debit side Credit side Asset side

Debit side Credit side Asset side


Sales Book Journal Proper Purchases Book

True False
Profit and Loss Account Balance Sheet Trading Account
Credit side of the Cash This transaction does not get
Debit side of the Cash Book Book recorded in the Cash Book

Correct Incorrect

Debit cash account and credit Debit assets account and Debit furniture account and credit
furniture account credit purchases account cash account

increase in assets and decrease in assets and increase in assets and decrease in
increase in liabilities increase in liabilities liabilities

Accounts receivable Sales taxes payable Inventory


Profit and Loss Account Trading Account Balance Sheet
Current Liability Fixed Liability Current Asset

Debit cash and credit owners Debit bank and credit Debit owners invested capital and
invested capital owners invested capital credit cash

Debit cash Rs. 30,000, debit Debit cash Rs. 3,000, debit Debit cash Rs. 3,000, credit
accounts receivable Rs. 3,000, accounts receivable Rs. accounts receivable Rs. 27,000,
and credit sales revenue Rs. 27,000, and credit sales and credit sales revenue Rs.
30,000 revenue Rs. 30,000 30,000

Debit bank account and credit Debit cash account and Debit capital account and credit
cash account credit bank account bank account

True False
Advance cash sale Cash sale Credit sale

liabilities, liabilities assets, assets assets, liabilities

Page 46
Sheet1
Credit side of the Pass
Debit side of the Pass Book Book Both sides of the Pass Book
Rent paid Office Expenses Opening stock
Profit & Loss a/c Credit
Profit & Loss a/c Debit Side Side Balance Sheet Assets Side
Advance cash sale Cash sale Credit sale
Credit side of the Cash This transaction does not get
Debit side of the Cash Book Book recorded in the Cash Book

True False
debit accounts receivable and debit accounts payable and debit cash and credit accounts
credit cash credit cash payable
Profit & Loss a/c Credit
Profit & Loss a/c Debit Side Side Balance Sheet Assets Side
It is not shown in the balance
Liabilities side Assets side sheet

Debit to another account for Credit to another account Debit to another account for Rs.
Rs. 800 for Rs. 800 1,200

Rs. 5,00,000 Rs. 8,00,000 Rs. 13,00,000


Debit Zabronix a/c and credit Debit Computer a/c and Debit Computer a/c and credit
Cash a/c credit Cash a/c Zabronix a/c

Materiality Principle Going Concern Principle Conservatism Principle

debit credit assets


Cash Assets Computer

Cash Credit Advance credit

Debit side Credit side Asset side


Capital Sales Cash
Profit & Loss a/c Credit
Profit & Loss a/c Debit Side Side Balance Sheet Assets Side
Debit Cheque a/c and credit Debit Rent a/c and credit
Rent a/c Cash a/c Debit Rent a/c and credit Bank a/c

Debit side Credit side Asset side


Profit & Loss a/c Credit
Profit & Loss a/c Debit Side Side Balance Sheet Assets Side

True False

Accounts payable Bank Sales revenue

Page 47
Sheet1

FT FF TF
Credit side of the Cash This transaction does not get
Debit side of the Cash Book Book recorded in the Cash Book
Purchase Return Account: Purchase Return Account:
Debit Credit Purchase Account: Debit
Credit side of the Cash This transaction does not get
Debit side of the Cash Book Book recorded in the Cash Book
increases decreases remains same
Sales Book Sales Return Book Purchase Return Book
Car used in the ordinary
sales operations of a Equipment held for resale by an
Factory building business equipment dealer
Profit & Loss a/c Credit
Profit & Loss a/c Debit Side Side Balance Sheet Assets Side
Debit side Credit side Asset side
Credit side of the Cash
Debit side of the Cash Book Book Both sides of the cash book
Capital Drawings Cash
Yes No Can't say
Debit side Credit side Asset side
Profit & Loss a/c Credit
Profit & Loss a/c Debit Side Side Balance Sheet Assets Side
Cash Interest paid Building
Cash Book Sales Book Journal Proper
decrease increase remains same
Rent Sales Capital
This account is not posted in the
Liabilities side Assets side balance sheet

True False

Credit sales Advance payment sales Cash sales


Accounts receivable Prepaid insurance Prepaid rent
debit credit assets

Rs. 4,900 Rs. 5,100 Rs. 5,000

increase in assets and decrease in assets and increase in assets and decrease in
increase in liabilities increase in liabilities liabilities
Debit Cash a/c and credit Loan Debit Loan a/c and credit Debit Loan a/c and credit Lokesh
a/c Cash a/c a/c

Wages Account Machinery Account Capital Account

Page 48
Sheet1
Credit side of the Cash This transaction does not get
Debit side of the Cash Book Book recorded in the Cash Book

Trial Balance Profit and Loss Account Balance Sheet

assets liabilities debit

Alphabetical Ascending Chronological


Money borrowed Informal agreement Liability
L.F Column J.F Column Particulars Column

Profit and Loss Account Trading Account Balance Sheet


Profit & Loss a/c Credit
Profit & Loss a/c Debit Side Side Balance Sheet Assets Side

True False
Cash Building Outstanding salary
The Credit of Purchases
The credit of Sales Account Account The Credit of the capital Account

Purchase Sale Assets

Rent and rates Distribution expenses Bad debts


assets liabilities debit
Interest expense Income tax expense Rental income

True False
Miscellaneous Expenses
Account Typewriter Account Repairs Account
Debit office expenses
Debit cash account and credit account and credit cash Debit assets account and credit
saving account account cash account
Seller Buyer Owner
Building Capital Interest paid
debited credited
Credit side of the Cash This transaction does not get
Debit side of the Cash Book Book recorded in the Cash Book

assets liabilities debit

Debit Rs. 7,00,000 from


Debit Rs. 7,00,000 from cash sale account and credit Rs. Debit Rs. 7,00,000 from assets
account and credit Rs. 7,00,000 from cash account and credit Rs. 7,00,000
7,00,000 to sale account account from sale account
Capital Rent and rates Drawings
Bills payable Sundry Debtors Goodwill

Page 49
Sheet1
Credit side of the Cash This transaction does not get
Debit side of the Cash Book Book recorded in the Cash Book

True False

Correct Incorrect
accounts receivable
repeating transactions transactions non-routine accounting entries
Purchasing a new machine for
the factory Acquisition of patents Hiring a new employee

Commission earned Advertisement Discount received

True False

understate overstate

True False
Seller Buyer Owner

debit credit assets

Debit side Credit side Asset side

understate overstate

Golden Stationers account Purchase account Cash


debit credit assets

debit credit assets

True False
Sales Drawings Cash

Accounts receivable Accounts payable Sales revenue


Capital Sales Cash

assets liabilities debit

Credit column Debit column It is not shown in the Trial Balance


Factory building Inventory held for sale Office equipment
debit or credit balance, depending
debit balance credit balance on the case
assets cash purchases

Bad Debts Recovered Account Ram's Account Cash Account

Page 50
Sheet1

Yes No Can't say

Debit capital Rs. 10,000 and Debit cost of goods sold Debit inventory Rs. 10,000 and
credit cost of goods sold Rs. Rs. 10,000 and credit credit cost of goods sold Rs.
10,000 capital Rs. 10,000 10,000
Rent Capital Sales
Profit & Loss a/c Credit
Profit & Loss a/c Debit Side Side Balance Sheet Assets Side
Insurance premium paid
before time Supplies purchased in bulk Rent paid in advance
Debit side Credit side Asset side
debited credited
Debit Purchase Return a/c
Debit KL Enterprises a/c and and credit KL Enterprises Debit KL Enterprises a/c and credit
credit Purchase Return a/c a/c Purchase a/c
A: Increase, B: Increase, C: A: Decrease, B: Increase, A: Decrease, B: Increase, C:
Increase, D: Increase C: Increase, D: Increase Increase, D: Decrease

Accounts Payable a/c Dr. Rs. Accounts Payable a/c Dr. Insurance Premium a/c Dr. Rs.
8,000 to Cash a/c Rs. 8,000 Rs. 8,000 to Insurance 8,000 to Bank a/c Rs. 8,000
Premium a/c Rs. 8,000

Office Supplies Dr Rs. 14,500 Accounts Payable Dr Rs. Accounts Receivable Dr Rs.
To Accounts Receivable Rs. 14,500 To Office Supplies 14,500 To Office Supplies Rs.
14,500 Rs. 14,500 14,500
Accounts Payable a/c Dr. Rs. Accounts Receivable a/c Cash a/c Dr. Rs. 3,50,000 to
3,50,000 to Cash a/c Rs. Dr. Rs. 3,50,000 to Cash Accounts Payable a/c Rs.
3,50,000 a/c Rs. 3,50,000 3,50,000
Accounts Payable a/c Dr. Rs. Accounts Receivable a/c Cash a/c Dr. Rs. 3,50,000 to
3,50,000 to Cash a/c Rs. Dr. Rs. 3,50,000 to Cash Accounts Payable a/c Rs.
3,50,000 a/c Rs. 3,50,000 3,50,000
Cash Dr Rs. 18,600 To Accounts receivable Dr Rs. Cash Dr Rs. 18,600 To Bank Rs.
Accounts receivable Rs. 18,600 To Bank Rs. 18,601 18,601
18,601
Sales Dr Rs. 18,600 To Accounts receivable Dr Rs. Sales Dr Rs. 18,600 To Credit Rs.
Accounts receivable Rs. 18,600 To Credit Rs. 18,600
18,600 18,600
Advertising Dr Rs. 10,000 To Advertising Dr Rs. 10,000 Expenses Dr Rs. 10,000 To
Bank account Rs. 10,000 To Expenses Rs. 10,000 Advertising Rs. 10,000

Cash account Dr. Rs. Assets account Dr. Rs. Laptop account Dr. Rs. 10,00,000
10,00,000 To Assets account 10,00,000 To Purchases To Cash account Rs. 10,00,000
Rs. 10,00,000 account Rs. 10,00,000

weekly at the end of the month in the order in which they occur

Page 51
Sheet1
Dividend A/c &#8377;450 To Bank A/c &#8377;450 To XYZ A/c &#8377;450 To Dividend
Bank A/c &#8377;450 Dividend A/c &#8377;450 A/c &#8377;450

Purchase account Dr to BigPrime International Purchase account Dr to Cash


BigPrime International account account Dr to Purchase account
account
Cash A/c &#8377;5,000 To Capital A/c &#8377;5,000 Business A/c &#8377;5,000 To
Capital A/c &#8377;5,000 To Cash A/c &#8377;5,000 Cash A/c &#8377;5,000

Purchases A/c &#8377;40,000 Cash A/c &#8377;40,000 Loss by fire A/c &#8377;40,000 To
To Loss by fire A/c To Loss by fire A/c Purchases A/c &#8377;40,000
&#8377;40,000 &#8377;40,000
Purchases A/c &#8377;8,400 Cash A/c &#8377;8,400 To Loss by theft A/c &#8377;8,400 To
To Loss by theft A/c Loss by theft A/c Purchases A/c &#8377;8,400
&#8377;8,400 &#8377;8,400
Drawings account Dr Rs. Cash account Dr Rs. 1,500 Drawings account Dr Rs. 1,500 To
1,500 To Bank account Rs. To Personal Rs. 1,500 Personal Rs. 1,500
1,500
Capital account Dr Rs. Cash account Dr Rs. Bank account Dr Rs. 10,00,000 To
10,00,000 To Bank account 10,00,000 To Bank loan Bank loan Rs. 10,00,000
Rs. 10,00,000 Rs. 10,00,000

Capital account Dr Rs. 15,000 Cash account Dr Rs. Bank account Dr Rs. 15,000 To
To Bank account Rs. 15,000 15,000 To Capital Rs. Capital Rs. 15,000
15,000
Loan account Dr Rs. Cash account Dr Rs. Capital account Dr Rs. 20,00,000
20,00,000 To Owner Rs. 20,00,000 To Capital Rs. To Cash Rs. 20,00,000
20,00,000 20,00,000
Service Revenue Dr Rs. Cash account Dr Rs. Service Revenue Dr Rs. 28,500 to
28,500 to Cash account Rs. 28,500 to Service Revenue Bank Rs. 28,500
28,500 Rs. 28,500
Expense Dr Rs. 36,000 to Cash account Dr Rs. Prepaid rent Dr Rs. 36,000 to
Cash account Rs. 36,000 36,000 to Prepaid rent Rs. Cash Rs. 36,000
36,000
Earned revenue Dr Rs. 40,000 Cash account Dr Rs. Unearned revenue Dr Rs. 40,000
to Cash Rs. 40,000 40,000 to Earned revenue to Cash Rs. 40,000
Rs. 40,000
Bank account Dr Rs. 40,000 Cash account Dr Rs. Unearned Revenue Dr Rs. 40,000
To Unearned Revenue Rs. 40,000 To Unearned To Cash account Rs. 40,000
40,000 Revenue Rs. 40,000
Miscellaneous Expense Dr Rs. Cash account Dr Rs. 6,470 Miscellaneous Expense account
6,470To Cash account Rs. To Miscellaneous Expense Dr Rs. 6,470 To Bank account Rs.
6,470 Rs. 6,470 6,470

Cash discount; It is recorded Cash discount; It is Trade discount; It is recorded by


by crediting it to a 'Discount recorded by crediting it to a crediting it to a 'Discount Received
Allowed Account.' 'Discount Received Account.'
Account.'
Trade Discount; Cash Cash Discount; Trade
Discount Discount

Page 52
Sheet1
Cash Dr Rs. 8,000 To Cash Dr Rs. 8,000 To Office Rent Expense Dr Rs. 8,000
Miscellaneous Expense Rs. Office Rent Expense Rs. To Bank Rs. 8,000
8,000 8,000
Purchases A/c &#8377;20,000 Charity A/c &#8377;20,000 Charity A/c &#8377;20,000 To
To Charity A/c &#8377;20,000 To Cash A/c Purchases A/c &#8377;20,000
&#8377;20,000
Purchase a/c Dr. Rs. 15,000 to Charity a/c Dr. Rs. 15,000 Cash a/c Dr. Rs. 15,000 to Charity
Charity a/c Rs. 15,000 to Purchase a/c Rs. 15,000 a/c Rs. 15,000

Narration Comments Posting

Debit Furniture A/c by Debit Asset A/c by Debit Bank A/c by &#8377;14,000
&#8377;14,000 and Credit &#8377;14,000 and Credit and Credit Furniture A/c by
Bank A/c by &#8377;14,000 Bank A/c by &#8377;14,000
&#8377;14,000
Debit Cash A/c by Debit Bank A/c by Debit Sonal A/c by &#8377;23,000
&#8377;23,000 and Credit &#8377;23,000 and Credit and Credit Bank A/c by
Sonal A/c by &#8377;23,000 Sonal A/c by &#8377;23,000
&#8377;23,000
Debit Vinay A/c by Debit Bank A/c by Debit Vinay A/c by &#8377;6,000,
&#8377;6,000, Credit Bank &#8377;6,090, Credit Bank Debit Bank charges A/c
charges A/c &#8377;90 and charges A/c &#8377;90 &#8377;90 and Credit Bank A/c by
Credit Bank A/c by and Credit Vinay A/c by &#8377;6,090
&#8377;6,090 &#8377;6,000

Debit Cash a/c by Rs. 10,000 Debit Bank a/c by Rs. Debit Withdrawal a/c by Rs.
and credit Bank a/c by Rs. 10,000 and credit Cash a/c 10,000 and credit Cash a/c by Rs.
10,000 by Rs. 10,000 10,000
Debit Cash a/c by Rs. 8,500 Debit Bank a/c by Rs. Debit Commission a/c by Rs.
and credit Commission a/c by 8,500 and credit 8,500 and credit Cash a/c by Rs.
Rs. 8,500 Commission a/c by Rs. 8,500
8,500
Debit Asset A/c by Debit Building A/c by Debit Cash A/c by
&#8377;2,50,000 and Credit &#8377;2,50,000 and &#8377;2,50,000 and Credit
Cash A/c by &#8377;2,50,000 Credit Cash A/c by Building A/c by &#8377;2,50,000
&#8377;2,50,000
Debit Cash A/c by &#8377;400 Debit Cartage A/c by Debit Cartage A/c by &#8377;400
and Credit Cartage A/c by &#8377;400 and Credit and Credit Bank A/c by
&#8377;400 Cash A/c by &#8377;400 &#8377;400
Debit Commission A/c by Debit Cash A/c by Debit Commission A/c by
&#8377;10,000 and Credit &#8377;10,000 and Credit &#8377;10,000 and Credit Cash
Bank A/c by &#8377;10,000 Commission A/c by A/c by &#8377;10,000
&#8377;10,000
Debit Bank A/c by Debit Cash A/c by Debit Bank A/c by &#8377;35,000
&#8377;35,000 and Credit &#8377;35,000 and Credit and Credit Withdrawal A/c by
Cash A/c by &#8377;35,000 Bank A/c by &#8377;35,000
&#8377;35,000

Page 53
Sheet1
Debit Cash a/c by Rs. 32,900, Debit Cash a/c by Rs. Debit Service Revenue a/c by Rs.
Debit Accounts Receivable a/c 32,900, Debit Credit 54,100, Debit Accounts
by Rs. 21,200 and Credit Service Revenue a/c by Receivable a/c by Rs. 21,200 and
Service Revenue a/c by Rs. Rs. 54,100 and Accounts Credit Cash a/c by Rs. 32,900
54,100 Receivable a/c by Rs.
21,200

Debit Cash a/c by Rs. 32,900, Debit Cash a/c by Rs. Debit Service Revenue a/c by Rs.
Debit Accounts Receivable a/c 32,900, Debit Credit 54,100, Debit Accounts
by Rs. 21,200 and Credit Service Revenue a/c by Receivable a/c by Rs. 21,200 and
Service Revenue a/c by Rs. Rs. 54,100 and Accounts Credit Cash a/c by Rs. 32,900
54,100 Receivable a/c by Rs.
21,200

Debit Charity A/c by Debit Charity A/c by Debit Purchases A/c by


&#8377;15,000 and Credit &#8377;15,000 and Credit &#8377;15,000 and Credit Charity
Goods A/c by &#8377;15,000 Purchases A/c by A/c by &#8377;15,000
&#8377;15,000
Debit Computer equipment a/c Debit Computer equipment Debit Depreciation a/c by Rs.
by Rs. 2,000 and credit Cash a/c by Rs. 2,000 and credit 2,000 and credit Computer
a/c by Rs. 2,000 Depreciation a/c by Rs. equipment a/c by Rs. 2,000
2,000
Debit Creditor's A/c by Debit Creditor's A/c by Debit Cash A/c by &#8377;5,000
&#8377;5,000 and Credit Cash &#8377;5,000 and Credit and Credit Creditor's A/c by
A/c by &#8377;5,000 Bank A/c by &#8377;5,000 &#8377;5,000

Debit Furniture a/c by Rs. Debit Depreciation a/c by Debit Furniture a/c by Rs. 1,500
1,500 and credit Cash a/c by Rs. 1,500 and credit and credit Depreciation a/c by Rs.
Rs. 1,500 Furniture a/c by Rs. 1,500 1,500

Debit Drawings A/c by Debit Drawings A/c by Debit Cash A/c by &#8377;2,000
&#8377;2,000 and Credit Cash &#8377;2,000 and Credit and Credit Drawings A/c by
A/c by &#8377;2,000 Bank A/c by &#8377;2,000 &#8377;2,000

Debit Bank A/c by Debit Interest received A/c Debit Bank A/c by &#8377;850,
&#8377;850, Credit Interest by &#8377;850, Credit Credit Interest on loan A/c by
received A/c by &#8377;850 Bank A/c by &#8377;850 &#8377;850

Debit Bank A/c by Debit Kanika A/c by Debit Cash A/c by &#8377;14,000
&#8377;14,000 and Credit &#8377;14,000 and Credit and Credit Kanika A/c by
Kanika A/c by &#8377;14,000 Cash A/c by &#8377;14,000
&#8377;14,000
Debit Cash A/c by &#8377;600 Debit Loan A/c by Debit Interest on loan A/c by
and Credit Interest on loan A/c &#8377;600 and Credit &#8377;600 and Credit Cash A/c
by &#8377;600 Cash A/c by &#8377;600 by &#8377;600

Page 54
Sheet1
Debit Loan a/c by Rs. 1,20,000 Debit Loan a/c by Rs. Debit Ramesh a/c by Rs. 1,20,000
and credit Ramesh a/c by Rs. 1,20,000 and credit Cash and credit loan a/c by Rs. 1,20,000
1,20,000 a/c by Rs. 1,20,000

Debit Cash a/c by Rs. 70,000 Debit Loan a/c by Rs. Debit Loan a/c by Rs. 70,000 and
and credit Loan a/c by Rs. 70,000 and credit Cash a/c credit Jatin a/c by Rs. 70,000
70,000 by Rs. 70,000
Debit Salary A/c by Debit Outstanding Salary Debit Outstanding Salary A/c by
&#8377;7,500 and Credit A/c by &#8377;7,500 and &#8377;7,500 and Credit Salary
Outstanding Salary A/c by Credit Cash A/c by A/c by &#8377;7,500
&#8377;7,500 &#8377;7,500
Debit Drawings A/c by Debit Party A/c by Debit Cash A/c by &#8377;7,000
&#8377;7,000 and Credit Cash &#8377;7,000 and Credit and Credit Party A/c by
A/c by &#8377;7,000 Bank A/c by &#8377;7,000 &#8377;7,000

Debit Krishna Enterprises a/c Debit Purchase Return a/c Debit Krishna Enterprises a/c by
by Rs. 1,20,000 and credit by Rs. 1,20,000 and credit Rs. 1,20,000 and credit Purchase
Purchase Return a/c by Rs. Krishna Enterprises a/c by a/c by Rs. 1,20,000
1,20,000 Rs. 1,20,000

Debit Star Enterprise a/c by Debit Purchase Return a/c Debit Star Enterprise a/c by Rs.
Rs. 15,000 and credit by Rs. 15,000 and credit 15,000 and credit Purchase a/c by
Purchase Return a/c by Rs. Star Enterprise a/c by Rs. Rs. 15,000
15,000 15,000
Debit Daisy A/c by Debit Purchases A/c by Debit Purchases A/c by
&#8377;15,000, Credit Cash &#8377;36,000, Credit &#8377;36,000, Debit Cash A/c
A/c &#8377;21,000 and Credit Cash A/c &#8377;21,000 &#8377;21,000 and Credit Daisy
Purchases A/c by and Credit Daisy A/c by A/c by &#8377;15,000
&#8377;36,000 &#8377;15,000
Debit Cash A/c by Debit Ram A/c by Debit Cash A/c by &#8377;12,100,
&#8377;12,000, Debit &#8377;12,000, Debit Debit Discount allowed A/c
Discount allowed A/c Discount allowed A/c &#8377;100 and Credit Ram A/c
&#8377;100 and Credit Ram &#8377;100 and Credit by &#8377;12,000
A/c by &#8377;12,100 Cash A/c by
&#8377;12,100

Debit Cash A/c by &#8377;800 Debit Refreshment A/c by Debit Refreshment A/c by
and Credit Refreshment A/c by &#8377;800 and Credit &#8377;800 and Credit Bank A/c
&#8377;800 Cash A/c by &#8377;800 by &#8377;800

Debit Cheque a/c by Rs. 7,200 Debit Rent a/c by Rs. Debit Rent a/c by Rs. 7,200 and
and credit Rent a/c by Rs. 7,200 and credit Cash a/c credit Bank a/c by Rs. 7,200
7,200 by Rs. 7,200
Debit Cash a/c by Rs. 980, Debit Sales a/c by Rs. 980, Debit Sales a/c by Rs. 980 and
debit Discount a/c by Rs. 20 debit Discount a/c by Rs. credit Cash a/c by Rs. 980
and credit Sales a/c by Rs. 20 and credit Cash a/c by
1000 Rs. 1000

Page 55
Sheet1
Debit Sales A/c by Debit Seller A/c by Debit Cash A/c by &#8377;8,000
&#8377;8,000 and Credit Cash &#8377;8,000 and Credit and Credit Sales A/c by
A/c by &#8377;8,000 Cash A/c by &#8377;8,000 &#8377;8,000

Debit SteelDealers Pvt Ltd. Debit SteelDealers Pvt Ltd. Debit Machinery account<br />
account<br /> account<br /> Credit SteelDealers Pvt Ltd.
Credit Machinery account Credit Purchases account account

Debit Steelmakers Pvt. Ltd Debit Steelmakers Pvt. Ltd Debit Machinery account<br/>
account<br/> Credit Machinery account<br/> Credit Credit Steelmakers Pvt. Ltd
account Purchases account account
Debit Telephone expenses A/c Debit Telephone expenses Debit Cash A/c by &#8377;500
by &#8377;500 and Credit A/c by &#8377;500 and and Credit Telephone expenses
Cash A/c by &#8377;500 Credit Bank A/c by A/c by &#8377;500
&#8377;500
Debit Vehicle a/c by Rs. Debit Vehicle a/c by Rs. Debit Depreciation a/c by Rs.
1,50,000 and credit Cash a/c 1,50,000 and credit 1,50,000 and credit Vehicle a/c by
by Rs. 1,50,000 Depreciation a/c by Rs. Rs. 1,50,000
1,50,000
Depreciation A/c &#8377;500 Depreciation A/c Furniture A/c &#8377;500 To
To Furniture A/c &#8377;5,000 &#8377;500 To Furniture Depreciation A/c &#8377;500
A/c &#8377;500
Cash account Dr Rs. 5,00,000 Dividends account Dr Rs. Dividends account Dr Rs. 5,00,000
To Bank account Rs. 5,00,000 5,00,000 To Cash Rs. To Personal Rs. 5,00,000
5,00,000
Drawings A/c &#8377;10,000 Drawings A/c Purchases A/c &#8377;10,000 To
To Purchases A/c &#8377;10,000 To Cash Drawings A/c &#8377;10,000
&#8377;10,000 A/c &#8377;10,000
Cash a/c Dr. Rs. 8,000 to Drawings a/c Dr. Rs. 8,000 Cash a/c Dr. Rs. 8,000 to
Purchases a/c Rs. 8,000 to Purchase a/c Rs. 8,000 Drawings a/c Rs. 8,000

Salary expense Dr Rs. Employee's bank Dr Rs. Salary expense Dr Rs. 1,56,000 To
1,56,000 To Employee's bank 1,56,000 To Cash Rs. Cash Rs. 1,56,000
Rs. 1,56,000 1,56,000
Equipment a/c Dr. Rs. Expenses a/c Dr. Rs. Equipment a/c Dr. Rs. 4,12,000 To
4,12,000 To Cash a/c 4,12,000 4,12,000 To Cash a/c Expenses a/c 4,12,000
4,12,000

True False

FT FF TF

Page 56
Sheet1
Furniture A/c &#8377;4,000 To Furniture A/c &#8377;4,000 Purchases A/c &#8377;4,000 To
Wood A/c &#8377;4,000 To Purchases A/c Furniture A/c &#8377;4,000
&#8377;4,000

Correct Incorrect

Correct Incorrect

Correct Incorrect

Correct Incorrect

Correct Incorrect

Correct Incorrect

Correct Incorrect

Correct Incorrect

Correct Incorrect

Correct Incorrect

Correct Incorrect

Correct Incorrect

Correct Incorrect

Page 57
Sheet1
Correct Incorrect

P&L account Dr Rs. 53,000 to Interest account Dr Rs. Interest account Dr Rs. 53,000 to
Interest account Rs. 53,000 53,000 to Cash account P&L account Rs. 53,000
Rs. 53,000
Interest Dr. Rs. 67,000 To Interest on capital Dr. Rs. Interest on capital Dr. Rs. 67,000
Capital account Rs. 67,000 67,000 To Capital account To Cash account Rs. 67,000
Rs. 67,000
Drawings A/c &#8377;1,500 To Interest on Drawings A/c Drawings A/c &#8377;1,500 To
Interest on Drawings A/c &#8377;1,500 To Drawings Interest on Capital A/c
&#8377;1,500 A/c &#8377;1,500 &#8377;1,500

It is a cash transaction. It is a credit transaction. Sales Account will be debited and


Mohan's Account will be credited.

transactions Journal events


Kyrion Ltd. account Dr. Rs. Kyrion Ltd. account Dr. Rs. Kyrion Ltd. account Dr. Rs. 75,000
75,000 To Purchase account 75,000 To Sale account To Assets account Rs. 75,000
Rs. 75,000 Rs. 75,000

Cash Dr Rs. 10,00,000 To Land Dr Rs. 10,00,000 To Bank account Dr Rs. 10,00,000 To
Bank account Rs. 10,00,000 Cash Rs. 10,00,000 Land Rs. 10,00,000

Cash A/c &#8377;2,500 To Machinery A/c Machinery A/c &#8377;2,500 To


Machinery A/c &#8377;2,500 &#8377;2,500 To Bank A/c Cash A/c &#8377;2,500
&#8377;2,500
Cash a/c Dr. Rs. 56,000 to Miscellaneous Expenses Trade Expenses a/c Dr. Rs.
Trade Expenses a/c Rs. a/c Dr. Rs. 56,000 to Cash 56,000 to Cash a/c Rs. 56,000
56,000 a/c Rs. 56,000
Cash Dr Rs. 5,00,000 To Office Expense Dr Rs. Cash Dr Rs. 5,00,000 To Vehicles
Office Expense Rs. 5,00,000 5,00,000 To Vehicles Rs. Rs. 5,00,000
5,00,000
Miscellaneous Expense Dr Rs. Office supplies Dr Rs. Bank account Dr Rs. 9,500 To
9,500 To Bank account Rs. 9,500 To Cash Rs. 9,500 Office supplies Rs. 9,500
9,500

Rent A/c &#8377;2,000 To Prepaid rent A/c Rent A/c &#8377;2,000 To Cash
Prepaid rent A/c &#8377;2,000 &#8377;2,000 To Rent A/c A/c &#8377;2,000
&#8377;2,000
Interest on Capital Account Proprietor Account Capital Account

Bank account Dr Rs. 12,000 Purchase account Dr Rs. Baking Equipment Dr Rs. 12,000
To Baking Equipment Rs. 12,000 To Baking To Bank account Rs. 12,000
12,000 Equipment Rs. 12,000
Purchases A/c &#8377;40,500 Purchases A/c Purchases A/c &#8377;45,000 To
To Cash A/c &#8377;40,500 &#8377;45,000 To Cash Cash A/c &#8377;45,000
A/c &#8377;40,500

Page 58
Sheet1
Purchases A/c &#8377;45,000 Purchases A/c Purchases A/c &#8377;45,000 To
and Discount Received A/c &#8377;45,000 To Cash Cash A/c &#8377;45,000
&#8377;2,250 To Cash A/c A/c &#8377;42,750 and
&#8377;42,750 Discount Received A/c
&#8377;2,250
Outstanding Rent A/c Rent A/c &#8377;500 To Rent A/c &#8377;500 To
&#8377;500 To Rent A/c Cash A/c &#8377;500 Outstanding Rent A/c &#8377;500
&#8377;500
Salaries A/c &#8377;50,000 To Salaries A/c Outstanding Salaries A/c
Outstanding Salaries A/c &#8377;50,000 To Cash &#8377;50,000 To Salaries A/c
&#8377;50,000 A/c &#8377;50,000 &#8377;50,000
Cash account Dr. Rs. 1,50,000 Sale account Dr. Rs. Assets account Dr. Rs. 1,50,000
To Sale account Rs. 1,50,000 1,50,000 To Cash account To Sale account Rs. 1,50,000
Rs. 1,50,000
Samples A/c &#8377;1,000 To Samples A/c &#8377;1,000 Purchases A/c &#8377;1,000 To
Expenditure A/c &#8377;1,000 To Purchases A/c Samples A/c &#8377;1,000
&#8377;1,000

PNB A/c &#8377;7,200 To SBI A/c &#8377;7,200 To PNB A/c &#8377;7,200 To SBI A/c
Transfer A/c &#8377;7,200 PNB A/c &#8377;7,200 &#8377;7,200

Opening stock A/c Trading A/c &#8377;3,000 Closing stock A/c &#8377;3,000 To
&#8377;3,000 To Trading A/c To Opening stock A/c Trading A/c &#8377;3,000
&#8377;3,000 &#8377;3,000

Transfer of a Ledger Account Transfer of Journal entry to None of the above


entry to Journal a Ledger Account
Cash A/c &#8377;6,200, Travelling expenses A/c Sales A/c &#8377;6,450,
Travelling expenses A/c &#8377;250 To Sales A/c Travelling expenses A/c
&#8377;250 To Sales A/c &#8377;6,450, Cash A/c &#8377;250 To Cash A/c
&#8377;6,450 &#8377;6,200 &#8377;6,200
Electricity Expense Dr Rs. Utilities Payable Dr Rs. Bank account Dr Rs. 1,375 To
1,375 To Utilities Payable Rs. 1,375 To Bank Rs. 1,375 Electricity Expense Rs. 1,375
1,375

Bank account Dr Rs. 1,494 To Utilities Payable Dr Rs. Telephone Expense Dr Rs. 1,494
Telephone Expense Rs. 1,494 1,494 To Bank Rs. 1,494 To Utilities Payable Rs. 1,494

Bank a/c Dr. Rs. 56,000 to Warnem Bros a/c Dr. Rs. Cash a/c Dr. Rs. 56,000 to
Warnem Bros a/c Rs. 56,000 56,000 to Bank a/c Rs. Warnem Bros a/c Rs. 56,000
56,000
debit credit
assets liabilities
assets liabilities
Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side
Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side

Page 59
Sheet1
Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side
Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side
Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side
Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side
Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side
Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side
Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side
Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side
Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side
Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side
Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side
Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side
Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side
Profit & Loss a/c Debit Side Profit & Loss a/c Credit Balance Sheet Assets Side
Side
Profit & Loss a/c Debit Profit & Loss a/c Credit Balance Sheet Assets
Side<br>Balance Sheet Side<br>Balance Sheet Side<br>Profit & Loss a/c Debit
Liabilities Side Assets Side Side

Page 60
Sheet1
optionD

Increase earnings
before taxes and
increase tax
expense
Cash a/c

Trial Balance

Supplies

Notes Payable

Page 61
Sheet1

Balance Sheet
Liabilities Side
Balance Sheet
Liabilities Side
Balance Sheet
Liabilities Side
Balance Sheet
Liabilities Side
Balance Sheet
Liabilities Side

Page 62
Sheet1
Balance Sheet
Liabilities Side
Balance Sheet
Liabilities Side
Balance Sheet
Liabilities Side
Balance Sheet
Liabilities Side
Balance Sheet
Liabilities Side
Profit & Loss a/c
Credit
Side<br>Balance
Sheet Liabilities Side

Balance Sheet
Liabilities
Side<br>Profit &
Loss a/c Credit Side

Balance Sheet
Liabilities
Side<br>Profit &
Loss a/c Debit Side

Balance Sheet
Liabilities Side
Balance Sheet
Liabilities Side
Balance Sheet
Liabilities Side
Balance Sheet
Assets
Side<br>Profit &
Loss a/c Credit Side

Balance Sheet
Liabilities Side
Balance Sheet
Liabilities Side
Balance Sheet
Liabilities Side
Balance Sheet
Liabilities Side
Balance Sheet
Liabilities Side

Page 63
Sheet1
Balance Sheet
Liabilities Side
Balance Sheet
Liabilities Side
Balance Sheet
Liabilities Side
Balance Sheet
Liabilities Side
Balance Sheet
Liabilities
Side<br>Profit &
Loss a/c Credit Side

Balance Sheet
Liabilities
Side<br>Profit &
Loss a/c Debit Side

Balance Sheet
Liabilities
Side<br>Profit &
Loss a/c Debit Side

Balance Sheet
Liabilities Side
Any account
Goods account Dr. to
Cash account
Reserves account

bad debts

Journal account

capital expenditure

Goodwill can be
recorded at any
side.
intangible assets

Debtors account
Supplier account Dr.
to Subsidiaries
account

asset

Page 64
Sheet1
payment, receipt

Gold
shows the activities
that increase or
decrease the
customer's balance

Current account
Debit balance

Neutral account
Capital = Assets +
Liabilities
Assets account Dr.
Rs. 5000 To
Furniture account
Rs. 5000
Capital account Dr.
To Cash account

loss for the business

loss
Balance sheet, Profit
and Loss account,
Trading account

By Cash account -
Rs. 20,000

return of anything
sold
Office rent

Creditors' account

Cash
Nominal account

Cash

Page 65
Sheet1
ASN Ltd. account

income
Plant and equipment
Manufacturing
account
Assets account Dr.
Rs. 40,000 To Cash
account Rs. 40,000

Grasse Enterprises
account Dr. Rs.
25,000 To Cash
account Rs. 25,000

Capital account Dr.


Rs. 20,000 To Cash
account Rs. 20,000

Freight account Dr.


Rs. 1,800 To Assets
account Rs. 1,800

Freight account Dr.


Rs. 1,500 To
Computer account
Rs. 1,500

Cash account Dr. Rs.


50,000 To Bank
account Rs. 50,000

Office expenses Dr.


Rs. 16,000 To Assets
account Rs. 16,000

Office expenses Dr.


Rs. 4,000 To Ravi
Stationers account
Rs. 4,000

Assets account Dr.


Rs. 60,000 To Cash
account Rs. 60,000

Purchase account
Dr. Rs. 30,000 To
Cash account Rs.
30,000
Salary account Dr.
Rs. 7,00,000 To Cash
account Rs.
7,00,000

Page 66
Sheet1
Cash account Dr. Rs.
38,000 To ABC
account Rs. 38,000

Bank account Dr. Rs.


50,000 To Savings
account Rs. 50,000

Bank account Dr. Rs.


12,000 To Rent
account Rs. 12,000

XYZ International
account Dr. Rs.
45,000 To Sale
account Rs. 45,000

Freight account Dr.


Rs. 2,500 To Air
conditioner account
Rs. 2,500

Neither 1 nor 2

Neither 1 nor 3

Income of
organization
Income of
organization
All of the above are
correct

Machinery
Copyright
Bonds payable

Land and buildings

Deferred expense

Deferred expense
Capital expense

Page 67
Sheet1

Cash Flow
statement
All of the above
right or credit side of
the account
right or credit side of
the account
There is no change
in total assets or
total liabilities

On the assets side


of the balance sheet
Income Summary
a/c Debit; Drawing -
Credit

Building - Debit
<br/> Accounts
Payable - Credit

Cash

None of the above

Profit & Loss a/c


credit side
Lease Holds
Neither 1 nor 2

Drawing a/c Debit


<br/> Income
Summary a/c Credit

Both sides are not


linked with each
other
Accounts payable
Prepaid expenses

Page 68
Sheet1
Carriage

Cost concept

It is not shown in
balance sheet
Consistency concept
Machinery
Tenant a/c
To bring account
balances at zero
Both 1 and 2

Accounts Receivable
Dr. Rs. 12,00,000 To
Loans Payable Rs.
12,00,000

Capital account Dr.


Rs. 90,000 To Cash
account Rs. 90,000

Debit Capital a/c by


Rs. 12,000 and
credit Bank a/c by
Rs. 12,000

Debit Purchase a/c


by Rs. 9,000 and
credit Kyle
International a/c by
Rs. 9,000

Assets account Dr.


Rs. 1,20,000 To Cash
account Rs.
1,20,000
Interest Dr. Rs.
23,000 To Savings
account Rs. 23,000

Page 69
Sheet1
Creditors

Bank loan
Appreciation

Rent expenses
account
Insurance expenses
account
Capital
4

Purchase account
Dr. Rs. 2,50,000 To
Aman account Rs.
2,50,000

Cash account Dr. Rs.


10,000 To Salary
account Rs. 10,000

Balance Sheet
Liabilities Side
Commission
received
Loan amount

Bills payable

Deferred expense

Page 70
Sheet1
Inventory cost
Cash at bank

Commission
received

All the accounts and


their ending
balances

Fixtures and fittings

Buildings
Discount received

Page 71
Sheet1
All of the above

Cash account

Expense
Expense

Interest paid
Liability side

Liability side

Land

increasing revenues

Credit

Salaries payable
As an expense
Dividends paid to
stockholders
Bonds payable

Accounts receivable
Selling services to
customers

Page 72
Sheet1

All of the above


Liability side

Investments
Insurance expenses

Rs. 5,60,000
Rent received
Balance Sheet
Liabilities
Side<br>Profit & Loss
a/c Credit Side
Investment income

Building

Sundry Creditors

Balance Sheet
Liabilities Side
Selling services to
customers
Balance Sheet
Liabilities Side

Advertisement

Trial Balance

Page 73
Sheet1

Selling services to
customers

Liability side

Liability side

Trial Balance

Debit assets account


and credit furniture
account

decrease in assets and


decrease in liabilities

Investments
Trial Balance
Fixed Asset

Debit owners invested


capital and credit bank

Debit cash Rs. 30,000,


credit accounts
receivable Rs. 27,000,
and credit sales
revenue Rs. 3,000
Debit capital account
and credit cash
account

Customer deposit

liabilities, assets

Page 74
Sheet1

Purchase return
Balance Sheet
Liabilities Side
Customer deposit

debit cash and credit


accounts receivable
Balance Sheet
Liabilities Side

Credit to another
account for Rs. 1,200

Rs. 3,00,000

Revenue Realization
Principle

liabilities
Bank

Customer deposit

Liability side
Discount received
Balance Sheet
Liabilities Side

Liability side
Balance Sheet
Liabilities Side

Purchases

Page 75
Sheet1

TT

Purchase Account :
Credit

Fence around a factory


building owned by a
company
Balance Sheet
Liabilities Side
Liability side

Discount received

Liability side
Balance Sheet
Liabilities Side
Sales

Outstanding salary

Cash sales and


advanced payment
sales
Accrued liabilities
liabilities

Rs. 100

decrease in assets and


decrease in liabilities

Page 76
Sheet1

Land Account

credit

Alphanumeric
Interestbearing

Trial Balance
Balance Sheet
Liabilities Side

Rent

Cash

All of the above


credit
Rent expense

Debit office expenses


account and credit
assets account
Shareholder
Outstanding salary

credit
Debit Rs. 7,00,000
from purchase account
and credit Rs.
7,00,000 from cash
account
Outstanding salary
Buildings

Page 77
Sheet1

fixed asset details


Selling services to
customers

Rent received

Shareholder

liabilities

Liability side

liabilities

liabilities

Building

Purchases
Discount received

credit

Factory equipment

Page 78
Sheet1

Debit cost of goods


sold Rs. 10,000 and
credit inventory Rs.
10,000
Drawings
Balance Sheet
Liabilities Side
Magazine subscription
received
Liability side

A: Decrease, B:
Decrease, C: Increase,
D: Decrease

Bank a/c Dr. Rs. 8,000


to Insurance Premium
a/c Rs. 8,000

Office Supplies Dr Rs.


14,500 To Accounts
Payable Rs. 14,500
Purchase a/c Dr. Rs.
3,50,000 to Cash a/c
Rs. 3,50,000
Purchase a/c Dr. Rs.
3,50,000 to Cash a/c
Rs. 3,50,000
Accounts payable Dr
Rs. 18,600 To Cash
Rs. 18,601
Accounts receivable Dr
Rs. 18,600 To Sales
Rs. 18,600
Bank account Dr Rs.
10,000 To Advertising
Rs. 10,000
Assets account Dr. Rs.
10,00,000 To Cash
account Rs. 10,00,000

yearly

Page 79
Sheet1

Goods account Dr to
Cash account

Personal account Dr
Rs. 1,500 To Cash Rs.
1,500
Capital account Dr Rs.
10,00,000 To Bank
loan Rs. 10,00,000

Capital account Dr Rs.


15,000 To Cash Rs.
15,000
Capital account Dr Rs.
20,00,000 To Loan Rs.
20,00,000
Bank account Dr Rs.
28,500 to Service
Revenue Rs. 28,500
Bank account Dr Rs.
36,000 to Prepaid rent
Rs. 36,000
Cash account Dr Rs.
40,000 to Unearned
revenue Rs. 40,000
Unearned Revenue Dr
Rs. 40,000 To Bank
account Rs. 40,000
Personal account Dr
Rs. 6,470 To
Miscellaneous
Expense Rs. 6,470
Trade discount; It is
recorded by crediting it
to a 'Discount Allowed
Account.'

Page 80
Sheet1
Bank Dr Rs. 8,000 To
Miscellaneous
Expense Rs. 8,000

Charity a/c Dr. Rs.


15,000 to Cash a/c Rs.
15,000

Page 81
Sheet1
Debit Cash a/c by Rs.
54,100, Debit Accounts
Receivable a/c by Rs.
21,200 and Credit
Service Revenue a/c
by Rs. 32,900

Debit Cash a/c by Rs.


54,100, Debit Accounts
Receivable a/c by Rs.
21,200 and Credit
Service Revenue a/c
by Rs. 32,900

Page 82
Sheet1
Debit Cash a/c by Rs.
1,20,000 and credit
Loan a/c by Rs.
1,20,000

Debit Purchase a/c by


Rs. 15,000 and credit
Star Enterprise a/c by
Rs. 15,000

Debit Sales a/c by Rs.


980, debit Cash a/c by
Rs. 20 and credit
Discount a/c by Rs.
1000

Page 83
Sheet1

Debit Machinery
account<br />
Credit Purchases
account

Cash account Dr Rs.


5,00,000 To Dividends
Rs. 5,00,000

Drawings a/c Dr. Rs.


8,000 to Cash a/c Rs.
8,000
Cash Dr Rs. 1,56,000
To Salary Expense Rs.
1,56,000
Cash a/c Dr. Rs.
4,12,000 To Expenses
a/c 4,12,000

TT

Page 84
Sheet1

Cash account Dr Rs.


53,000 to Interest
account Rs. 53,000
Interest Dr. Rs. 67,000
To Savings account Rs.
67,000

Kyrion Ltd. account Dr.


Rs. 75,000 To Cash
account Rs. 75,000

Cash Dr Rs. 10,00,000


To Land Rs. 10,00,000

Vehicles Dr Rs.
5,00,000 To Cash Rs.
5,00,000
Office supplies Dr Rs.
9,500 To Miscellaneous
Expense Rs. 9,500

Baking Equipment Dr
Rs. 12,000 To
Drawings Rs. 12,000

Page 85
Sheet1

Purchase account Dr.


Rs. 1,50,000 To Cash
account Rs. 1,50,000

Utilities Payable Dr Rs.


1,375 To Electricity
Expense Rs. 1,375

Utilities Payable Dr Rs.


1,494 To Telephone
Expense Rs. 1,494

Warnem Bros a/c Dr.


Rs. 56,000 to Cash a/c
Rs. 56,000

Balance Sheet
Liabilities Side
Balance Sheet
Liabilities Side

Page 86
Sheet1
Balance Sheet
Liabilities Side
Balance Sheet
Liabilities Side
Balance Sheet
Liabilities Side
Balance Sheet
Liabilities Side
Balance Sheet
Liabilities Side
Balance Sheet
Liabilities Side
Balance Sheet
Liabilities Side
Balance Sheet
Liabilities Side
Balance Sheet
Liabilities Side
Balance Sheet
Liabilities Side
Balance Sheet
Liabilities Side
Balance Sheet
Liabilities Side
Balance Sheet
Liabilities Side
Balance Sheet
Liabilities Side
Profit & Loss a/c Credit
Side<br>Balance
Sheet Liabilities Side

Page 87