Basic Questions: Accounts/ Banking

1. Credit purchase – journal entry & meaning/definition

2. Credit Sales – Journal entry & meaning//definition
3. Amortization – Meaning
4. Depreciation – Methods and meaning
5. Golden rules – With example for each 5 account (personal/real /nominal)
6. Outstanding Expenses – Meaning/example
7. Income received in advance – Meaning/example
8. Balance Sheet – 2 sides of balance sheet
9. Bank Reconciliation Statement – meaning and examples of entries reflecting in passbook
and not in cash book and vice versa
10. Difference between cash book and pass book
11. Accruals – meaning and example
12. Sales returns – Entry and meaning
13. Operating income
14. Name few current asset
15. Name few fixed asset
16. Name few liabilities
17. Basics of Profit & Loss Account
18. Difference between gross profit and net profit
19. Contingent Liability and example
20. Accumulated Depreciation
21. Golden rules of accounting
22. Depreciation
23. Accumulated Depreciation
24. Difference between depreciation & accumulated depreciation
25. Deferred revenue with example
26. Contingent Liability and its Example
27. Difference between gross profit and net profit
28. Operating income
29. Types of Assets
30. Name few current asset
31. Name few fixed asset
32. Name few liabilities
33. Basics of balance sheet
34. Basics of Profit & Loss Account
35. Basic journal entries
36. Credit purchase journal entry
37. Credit sales journal entry
38. Working capital
 39. Credit purchase journal entry
40. Credit sales journal entry
41. Salary related Journal entry
42. Goods Purchase Journal Entries
43. What is Financial statement?
44. How balance sheet decides the financial statement?
45. What is assets/liability?
46. Basics of balance sheet?
47. Basic Ratio Analysis and their formulas
48. What is depreciation?
49. Underwriting – Brief explanation
50. Prepaid Expenses journal entry
51. Outstanding expenses journal entry
52. Basis of Accounting Concepts
53. Prepaid Income journal entry
54. Accrued Income
55. Journal entry for Depreciation
56. What is Fund flow and cash flow statement?
Golden Rules of Accounts:
Account Types Debit Credit
Personal The receiver The giver
Real What comes in What goes out
Nominal All expenses & Loses All Incomes and gains

list of items comes under balance sheet

Liabilites Assets
Capital Fixed Assets:
Long Term Liabilities Land,
Loan from bank Building,
Mortgage Machinery,
Current Liabilities Furniture,
Sundry Creditors Vehicles,
Advance from Customers Computers
Outstanding Expenses
Income Received in Advance Current Assets:
Bills payable Stock,
Sundry Debtors,
Cash Balance,
Bank Balance,
Prepaid Expenses
Bills Receivable
Banking – Types of Banking /
Definition - Commercial Banking / Retail Banking / Consumer Banking

1) Current Ratio : Current Assets / Current Liabilities

2) Quick Ratio : Liquid Assets / Liquid Liabilities
3) Inventory to Working Capital : Inventory / Working Capital
4) Working Capital : Current Assets – Current Liabilities
5) Debt to Equity Ratio : Long Term Debts / Shareholders Fund
6) Proprietary Ratio : Shareholders Fund / Total Assets
7) Capital Gearing Ratio : Fixed Interest Bearing Securities / Equity Share Capital
8) Current Assets to Fixed Assets ratio : Current Assets / Fixed Assets.
9) Fixed Cost: cost that is fixed irrespective of the production volume & Variable Cost: Cost that
varies based on the production volume
10) Inflation: The value of money decrease over a period of time is called Inflation.