TN STATEBOARD 11TH ACCOUNTANCY UNIT 3 ADDITIONAL QUESTIONS

 

I. Multiple Choice Questions

Choose the correct answer

1.

A debit note is also called as …………….

(a) Credit note

(b) Debit memo

(c) Vouchers

(d) Cash memo

Answer:

(b) Debit memo

 

2.

A credit note is also called as ……………..

(a) Credit memo

(b) Debit note

(c) Vouchers

(d) Cash memo

Answer:

(a) Credit memo

3.

When cash or cheque is deposited in bank, a form is to be filled by a customer is called as …………….

(a) Pay – in – slip

(b) Voucher

(c) Cash memo

(d) Invoice

Answer:

(a) Pay – in – slip

 4.

Owner’s equity is otherwise called as …………….

(a) Capital

(b) Creditors

(c) Debtors

(d) Assets

Answer:

(a) Capital

5.

Outsider’s equity is otherwise called as …………….

(a) Capital

(b) Liabilities

(c) Debtors

(d) Assets

Answer:

(b) Liabilities

6.

The accounts relating to expenses, losses, revenues and gains are called …………….

(a) Nominal accounts

(b) Real accounts

(c) Personal accounts

(d) Tangible Real accounts

Answer:

(a) Nominal accounts

7. Goodwill is an example of accounts …………….

(a) Real

(b) Nominal

(c) Tangible real

(d) Intangible real

Answer:

(d) Intangible real

8. Outstanding salaries account is an example for accounts …………….

(a) Personal account

(b) Real account

(c) Nominal account

(d) Representative Personal account

Answer:

(d) Representative Personal account

9. Journal means …………….

(a) daily

(b) Monthly

(c) Yearly

(d) Weekly

Answer:

(a) daily

10. Record of business transactions in the journal is known as ……………..

(a) Journal entry

(b) Ledger

(c) Book – keeping

(d) Accounting

Answer:

(a) Journal entry

 

1. The author of the famous book “Arthasastra” is Chanakya.

2. Every business transaction reveals two aspects.

3. The incoming aspect of a transaction is called Debit and the outgoing aspect of a transaction is called Credit.

4. Impersonal accounts are classified into two types.

5. Plant and machinery is an example of Real account.

6. Capital account is an example of Personal account.

7. Commission received will be classified under Nominal account

8. Single entry is an entry in which only two accounts are involved, one account is debited and another is credited.

9. Every debit has a corresponding and equal credit.

10. Every credit has a corresponding and equal debit

11. Sourced documents serves as legal evidence in case of any legal dispute.

12. Cash receipt/voucher is a document that shows the date, amount and details of cash purchases and cash sales or other cash transactions.

13. ‘Dr.’ is abbreviation of ‘addebitare’.

14. Cash Deposit Machine (CDM) is an ATM like machine that allows depositing cash directly into a customer’s account.

 ADDITIONAL QUESTION

 

1. A trader sold goods on credit to one of his customers for ` 2,000. After two days, the customer returned some of the goods worth ` 300, which were in damaged condition. The trader received back the goods. Later, when the customer paid ` 1,700, the trader demanded for full payment. He forgot about the returned goods. How can this situation be avoided?

Answer:

 Keep a track of the transaction by noting it down in a book.

 Record the transaction immediately in proper books of account on the basis of source document.

 Find the source documents in the chronological order and check periodically.

 Maintain a separate book for sales returns.

2. Think: Crossed cheque is preferred to a bearer cheque. Why?

Answer:

 A crossed cheque cannot be en-cashed at the cash counter of a bank. It can only be credited to the payee’s account. This is a safer way of transferring money than a bearer cheque as the identity of the payee is known to the banker.

 

3. Think: A customer has returned the goods to his supplier along with a debit note. But, the supplier does not agree with the customer’s claim that the goods are damaged. Can the customer consider his debit note as a valid source document and enter the purchases returns?

Answer:

 the customer cannot assume that the returned goods have been accepted by the supplier. Because sometimes the fault may at the customer’s side, such as damaging the goods while unloading.

 so until the supplier accepts the debit note and sends a credit note on accept it.

 Customer cannot treat debit note as a valid document to enter the returns.

 

4. What is cash receipt or voucher? Pg. no 27

5. What is Invoice? Pg. no 28

6. What is Debit Note? Pg. no 29

7. What is Credit note? Pg. no 30

8. What is pay in slip? Pg. no 31

9. What is cheque? Pg. no 31

10. Write a note on: Pg. No 33 and 34

Transaction

Cash Transaction

Bank Transaction

Credit Transaction.

 

11. Write a note on Pg. No 33 and 34

1. ATM

2. CDM

3. Debit card

4. Credit card

5. NEFT

6. RTGS

 

12. State the two approaches of recording Transactions?

Answer:

There are two approaches for recording transactions, namely, i) Accounting equation approach and ii) Traditional approach.

 

13. Recording of transactions on accounting approach examples.  Pg. No: 35 and 36

14. Learn accounting equation problems through illustrations and solve exercises problems.

15. Explain traditional approach.  Pg. No. 39

16. Golden Rules of Double entry system.

17. Classify the following accounts under the types of personal, Real and Nominal account.

1) Life insurance premium A/c
2) Mr. Kulkarnis’s Capital A/c
3) Goods A/c
4) Freight A/c
5) Wages A/c
6) Goodwill A/c
7) Copyright A/c
8) Outstanding income A/c
9) Bank charges A/c
10) Outstanding expenses A/c
11) Sundry income A/c
12) Income receivable A/c
13) Export duty A/c
14) Furniture A/c
15) Import duty A/c
16) Free sample distribution A/c
17) Sundry expenses A/c
18) Discount A/c
19) Drawings A/c
20) Fixed deposit A/c
21) Profit on sale of furniture A/c
22) Office equipment A/c
23) Bank of India A/c
24) Machinery A/c
25) Carriage Outward A/c
26) Loss on sale of machinery A/c
27) Loan A/c
28) Deposits with MSEB
29) Loss by fine A/c
30) Legal expenses A/c

ANSWER:

The above mentioned accounts can be classified into the following types of accounts:

• Personal
 

Name of the account	Description
1) Life Insurance Premium A/c	It is classified as a personal account, since the insurance premium paid represents the amount paid for an individual.
2) Mr. Kulkarni’s Capital A/c	It is the account of a natural person, i.e. an account of a person who is alive. Hence, it can be classified as a personal account.
8) Outstanding Income A/c	It is a representative personal account as it represents the outstanding income from several persons/sources. Hence, it can be classified as a personal account.
10) Outstanding Expenses A/c	It is the representative personal account because it represents the outstanding expenses to a group of people. Hence, it can be classified as a personal account.
12) Income Receivable A/c	It is the representative personal account, i.e. it represents the income to be received from a group of persons. Hence, it can be classified as a personal account.
19) Drawings A/c	It is related to the account of an individual, i.e. proprietor’s account which shows the amount withdrawn by the proprietor from the business for his/her personal use. Hence, it can be classified as a personal account.
23) Bank of India A/c	This account is a personal account as it is related to a banking firm which is an artificial person. All those accounts which are related to a person, whether artificial or natural, are termed as personal accounts.
27) Loan A/c	Loan Account is a representative personal account, as it represents the person from whom the loan is obtained or to whom the loan is given. Hence, it is classified as a personal account.

• Real Accounts:

Name of the account	Description
3) Goods A/c	It is classified as a real account as goods are the tangible assets of a business whose value can be measured in terms of money.
6) Goodwill A/c	It is an intangible asset as it cannot be touched but its value can be measured in terms of money. Hence, it is classified as a real account.
7) Copyright A/c	It is an intangible asset as it cannot be touched but its value can be measured in terms of money. Hence, it is classified as a real account.
14) Furniture	It is the tangible asset of a business whose value can be measured in terms of money. Hence, it is classified as a real account.
20) Fixed Deposit A/c	It is an asset of a business. Hence, it is classified as a real account.
22) Office Equipment A/c	It is the account whose value can be measured in terms of money and treated as an asset of the business. Hence, it is classified as a real account.
24) Machinery A/c	It is the real tangible asset of a business and the value of this asset can be measured in terms of money. Hence, it is classified as a real account.
28) Deposits with MSEB	It is the asset of the business and hence, it is classified as a real account.

• Nominal Account:

Name of the account	Description
4) Freight A/c	It is a direct expense of a business and hence, it is classified as a nominal account.
5) Wages A/c	It is a direct expense of a business and hence, it is classified as a nominal account.
9) Bank Charges A/c	It is an indirect expense of a business. All the expenses whether direct or indirect are classified as nominal accounts.
11) Sundry Income A/c	It represents the income of a business and, thus, it is classified as a nominal account.
13) Export Duty A/c	Export duty is an indirect expense and hence, it is classified as a nominal account.
15) Import Duty A/c	It is a direct expense of a business and hence, it is classified as a nominal account.
16) Free Sample Distribution A/c	It is an indirect expense of a business and thus, it is classified as a nominal account.
17) Sundry Expenses A/c	These are the miscellaneous expenses of a business and hence, they are classified as nominal accounts.
18) Discount A/c	It can be the indirect income (if received) or indirect expenses (if paid) of a business and hence, they are classified as nominal accounts.
21) Profit on Sale of Furniture A/c	It is the indirect income or gain for a business since profit is earned on the sale of furniture and hence, it is classified as a nominal account.
25) Carriage Outward A/c	It is an indirect expense of a business and hence, it is classified as a nominal account.
26) Loss on Sale of Machinery A/c	It is a loss for a business. Hence, it is classified as a nominal account.
29) Loss by Fire A/c	It is a loss for a business. Hence, it is classified as a nominal account.
30) Legal Expenses A/c	These are the indirect expenses of a business and hence, they are classified as nominal accounts.

 

18. Meaning of Journal entry: Pg. No: 41

19. Draw the format of journal entry Pg. 41

20. Explain Different types of journal entries. Pg. No: 42

21. Practice Journal entries and solve problems from exercises.

22. Explain Advantages of journal. Pg. No. 56

23. Practice all the problems from the link given below

TN STATEBORAD ACCOUNTANCY JOURNAL ENTRIES WORKSHEET QUESTIONS FOR PRACTICE AND REVISION

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