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Questions
Home
July 2008

Accounting(Tally & Peach Tree)

Choose the correct answer 1 Mark Each

1. The amount invested by the proprietor is called-------------

[Capital, Drawings, Assets]

2. Product name is called --------------

[Stock group, Stock category, Stock item]

3. Suppliers are called ------------in Peac htree

[Customer, Vendor, Creditor]

4. Peachtree follows------------method of ac counts

[Cash, single entry, Acc rual]

5. The main window of Tally is c alled -------------

[Accounts info, display, Gateway of Tally]

6. Goodwill is a-------- asset

[Tangible, Fixed, Intangible]

7. Capital comes under -----------group in Peachtree

[Equity gets closed, current liability, Equity retained earnings]

8. Gross profit is the difference between----------

[Sales and Purchase, Sales and cost of goods sold, Sales and total cost]

9. The person who owe money to us are called ---------

[Debtor, Creditor, Owner]

10. Banks under -----------group in Peac htree

[Bank, Cash, Current asset]

11. _______ is a statement of ledger account balance at a particular instanc e.

(Balance Sheet / Trial Balanc e /Trading Ac count /None of these)

12. The function key to activate calculator is _______.

(Ctrl+F8 /Alt+F8 /Ctrl+N /Alt+N)

13. Owner’s draw is c alled________.

(Capital /Drawings /Stock /Payment)

14. All outstanding comes under ______ group in Tally.

(Current Asset /Current Liabilities /Fixed Asset /Both a&b)

15. _______ assets used for selling purpose.

(Fixed Asset /Intangible Asset/ Current Asset /None of these)

16. Analysis of recorded data to bring entries of similar nature to one

plac e is called______.

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(Analysis / Summarising /Classifying /Rec ording)

17. Book keeping is conc erned with______.

(Analysis of transactions/ Recording of transactions /

Classific ation of transactions /None of these)

18. A Bank Rec onc iliation Statement is prepared by_______

(Banker /Customer / Debtor / Owner)

19. All non cash transactions are rec orded in______ voucher.

(Contra / Receipt /Journal /Payment)

20.Income received in advance is a ______

(Liability / Asset /Income /Expense)

21.Gross profit is the differenc e between…………..

(a)sales and purchase (b) sales and total c ost (c ) sales and cost of goods sold (d) None of the above

22.Bank c harges is an ………….. to the customer.

(a)Statement (b)Account (c)Expense (d) Income

23The person who owes Rs.500/- to the proprietor is a …………

(a) asset (b) debtor (c) liabilities (d) c reditor

24. Tally provide a list of ………..predefined groups.

(a) 15 (b)9 (c ) 28 (d) 22

25. Bank OD a/c comes under the group of …………..

(a) current asset (b) sec ured loans

(c) loans(liability)(d) none of the above

26………… is prepared to ascertain the gross profit or gross loss.

(a)Balance sheet (b) Trail Balanc e

(c) trading acc ount (d) none

27. Tax deducted at source(TDS) is an indirect method of c ollecting……..

(a) F B T (b) C S T (c) Income Tax (d) VAT

28. Bills payable are posted ……..side of the balance sheet.

(a) Liability side (b) Asset side (c) Income side (d) Expense side

29. Tally uses ……… operating system

(a) Dos (b) Windows (c) Unix

30. Changes in ledger ac counts can be made in ……… mode.

(a). Display (b) alter (c ) c reate

Fill in the blanks

1. Customers comes under -------- group in Peachtree

2. Billing name of product is called -------------

3. ---------------is an indirect method of collecting income tax.
4. Properties of the business is called ------------
5. The posting method of Peachtree is--------------
6. Financial Statement is collectively called------------
7. ----------------is a non accounting voucher.
8. ------------is a books of original entry.
9. Double entry system was invented by------------
10. When debit side is less than credit side, in trading account it is called-------------
11. The process of recording transactions to the journal is called_______
12. A person who is entitled to get money from the business is termed as a_______

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13. The process of transferring entries from books of original entry to the

ledger is called_______.

14. A statement of debit and credit balance of accounts is called a _______

15. _______ helps in verifying the correctness of accounts.

16. The source documents provide information about the nature of_______

involved in it.

17. Commission received in advance is a _______.

18. The amount invested by the proprietor is called_______
19. The amount of net profit or net loss is transferred to _______ account
20. ________ is called stock items in Tally.
21. Expenses paid before current date is called …………….
22. ……………..voucher is used for payments in Tally
23. .A Ledger Account can be deleted by using……key combination.
24. Product name is called ………..in Tally.
25. The receipt and payment account is a ……..account.
26. Properties of the business is called…………
27. Balance sheet is a ……………
28. ………. Key is used for receipts in Tally.
29. Financial Statement is collectively called…………
30. ………….. voucher is used for adjustments between ledger a/c’s.
31. Goodwill is ………account.
32. The function key to activate calculator is ………
33. Recording of transactions in the journal is called …………
34. A statement of debit and credit balance of accounts is called a ……
35. …….key is used to delete the company.
36. ……………key is used for physical stock.
vIn tally…………feature is used for recording non valuable entry’s in vouchers.
37. In tally all current assets are purchased transactions are recorded in …………voucher.
38. Tally follows ………. Accounting system.
39. …….key is used for purchase in tally.
40. Real a/c Personal a/c and ------ are three ruler of accounting.
41. The initial investment by the owner of partners into the business is called ------
42. The functioning key used to change current period is ----------
43. A company can be deleted by pressing ----- in
44. In ------ a/c, debited what comen in and credit what goes out.
45. ODBC means --------------
46. Recording Transactions in Tally is called -------------
47. The voucher entry used corresponding to Purchase return Book is --------------
48. The function key to activate Debit Note voucher is -------------
49. Bank Reconciliation statement is prepared by selecting by ------ account
50. ------------- is an organizational such unit for which cost is deouly identified and analyses.
51. When cash is paid for advertisement -------- a/c is debited
52. It a loan is taken from bank ----------- a/c is debited.
53. Final accounts include the preparation of Trading and P&L a/c and _____?
54. Bills Receivable -------- side of Balance Sheet.
55. Wages outstanding is a ………
56. Goodwill comes under……
57. Assets taken out of the business for the personal use of proprietor is called ………
58. Removing a company from from the list of selected companies is known as ……..
59. Changes in ledger accounts can be made in ……….mode
60. The diminishing value charged on fixed assets is called……..
61. The function key to activate payment voucher is ………
62. Father of Accounting…….
63. Gross profit + Indirect income –Indirect expenses is called…….
64. ………….is an indirect method of collecting income tax

State whether True or False.

1. Alt + C key is used for creating secondary ledger in Tally

2. Customers c omes under acc ounts receivable group in Peac htree.

3. Peachtree follows Cash ac counting method.

4. Ctrl + F8 key is used to ac tivate debit note voucher in Tally.

5. Interest on drawings is income

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6. Journal voucher is used for adjustment transac tions.

7. Cash or valuables owned by a business are a liability.

8. Revenues are amounts earned by selling the produc ts of a c onc ern.

9. Balance Sheet is prepared to show profit.

10. Goodwill is an intangible asset.

Match the following

AB

1. Stock Acc ounts Receivable

2. Debtors Unsold Goods

3. Drawings Goods for sale

4. Purchases Long-term use

5. Fixed Assets Withdrawals by owners

Answer any Ten of the following.

1. Explain Acc ounting vouchers in Tally.

2. Write About Trade disc ount and Cash discount.

3. What are the functions and objects of acc ounting?

4. Explain the use of following keys:-

Ctrl +A, Ctrl + F8, Ctrl + F10

5. Write about journal and ledger.

6. Differenc e between Profit & loss ac count and Balance sheet.

7. How to create Tax in Peac htree.

8. Explain sales order proc essing and purc hase order processing in Tally.

9. What is accounting? What are the types of acc ounts?

10. Explain payment, rec eipt and sales invoicing voucher in Peachtree.

11. Draw the Tally startup sc reen; explain the structure of tally sc reen.

12. Journalize the following transaction?

1/4/2008 Manu started his own business using Rs.120000 in a bank acc ount his own motor van Rs. 80000 and 15000 in cash.

2/4/2008 Cash withdraw from Canara Bank Rs.7000.

4/4/2008 Furniture purchased by cash Rs. 8500.

5/4/2008 Salary paid Rs. 5000 (actual salary Rs.7000)

7/4/2008 Cash received from Rajesh Rs. 4500 and discount allowed to him Rs.700.

13. Definition of Accounting. Name the types of accounts.

14. What is meant by Trial Balanc e? Draw the form of a Trial Balance.

15. Explain Journal and Ledger.

16. What is meant by direct expense? How it should be treated?

Give some direct expenses.

17. What is meant by bad debts?Give an adjusting entry for bad debts and also how it

would appear in Profit and Loss Account and Balance Sheet.

18. Explain outstanding or ac crued incomes, give an adjusting entry.

19. What is an asset ? Differenc e between fixed asset and current asset.

20. What is meant by trading account? Give an proforma of a trading ac count.

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21. What are Financial Statements?

22.Explain Bank Rec onc iliation Statement and Pass book.

23.Explain four acc ounting vouc her’s in Tally?

24.What are the func tions and objec ts of ac counting?

25..What are the advantage of computerized ac counting?

26.Write five primary group of ledgers in tally?

27.Draw the tally start up screen, explain the struc ture of Tally Screen?

28.What is asset? Differenc e between fixed asset and current asset?

29. What are the main vouc hers in tally and explain eac h ?

30. Define Accounting , Explain its functions and objects of Ac counting?

31. Explain Final Acc ounts?

32.Explain types of Ac counting and give examples for each ?

33 Prepare format of Profit and loss a/c?

34. Explain the structure of tally screen?

35.Journalize the following transactions

a) Purc hased furniture for cash Rs 3000

b) Purc hased goods for cash Rs 4200
c) Sold mac hinery for cash Rs 6000
d) Paid salary Rs 600
e) Rec eived commission Rs 400
f) Paid to kumar Rs 500
g) Rec eived cash from somu Rs 1000
h) Paid for advertisement Rs 200
i) Withdrew for domestic use Rs 300

36.Prepare Final Acc ounts of M/s Meena Agenc ies, Punalur from the following :-

2008 April 1 Started business with Rs 2,00,000

Opened current account with Punjab

National Bank
”2
Rs1,00,000

Purchased machinery and paid by cheque Rs

”2
35000/-

Purchased goods from National Traders Rs

”2
80000

2008 May 1 Sold goods to Vinay Rs 1,40,000

Returned goods to National Traders Rs.

”2
12000

”2 Vinay Returned goods for Rs. 7000/-

2008 June 1 Paid For Carriage Rs 2000

”1 Paid rent Rs 8000/-

”1 Paid salaries Rs 10000/-

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”1 Interest received Rs 2000/-

”2 Sold goods for cash Rs. 25000

”2 Cash purc hase Rs 15000/-

Adjustments:

Closing stock Rs 14000/-

Deprec iation for Machinery Rs 400/-

TALLY QUESTIONS

Time: 2 Hours Maximum Marks: 100

Part I

Fill in the blanks Answer all questions (10X2=20)

1. When the c ommission is rec eived, omission ac count is __________.

2. In tally F2 is used for ---------------
3. A c redit balance in the blank c olumn of the cash is denotes__________.
4. ____________ in tally displays the details with closing balance.
5. ____________ is the complete business solution.
6. The item plant is the machinery appearing in the balance sheet is a________asset.
7. A ________ is an evidence of a transac tion.
8. The process of recording transactions chronologically in the journal is called _________.
9. A ___________ is there fore , defined as a statement of asset and liabilities of the business
10. A portion certain expenses paid during the current period relates to the next period is c alled _________.

Part Il State True or False. (10X2=20)

1. All the credit purchase of goods dealt-in is entered in the purc hase book.
2. On payment of salary to employees salary ac count is c redited.
3. The bank balance of c ash is denoted by a credit balance in bank acc ount.
4. Ledger option is found in gateway of Tally.
5. Sundry debtor is c onnec ted to credit purchase.
6. In real ac count debit what comes in credit what goes out.
7. All adjustments entries pass journal voucher not include closing stock.
8. Prepaid expense means its found that a portion of certain expenses paid during the current period.
9. In ac crual method all income and expense are recorded whether they are paid or not.
10. Recurring means the first accounting to set up fixed journal entries for a transaction for further months or acc ounting periods.

Part IllExplain briefly Answer any 10 of the following (10*6=60)

1. Definition of acc ounting, Explain its func tions.

2. What is the difference between purchase order and sales order?
3. Difference between fixed asset and c urrent asset.
4. Explain outstanding, prepaid, deprec iation and bad debt?
5. Define vouchers? Procedure for voucher entry.
6. Difference between journal and ledger?
7. What are the main features of computerized accounting?
8. How to create display and alter a ledger?
9. Difference between rec eipt note and delivery note?

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10. Explain the classific ation of accounts?
11. Draw the Tally start up sc reen; explain the structure of tally screen?
12. What is meant by trial balance? Draw the form of a trial balance?

MODEL EXAMINATION-2008

ACCOUNTING AND TALLY (CTTC)

Choose the correc t answer from the bracket (10*2=20)

1. _______ is a statement of ledger acc ount balanc e at a partic ular instance.

(Balanc e Sheet / Trial Balanc e /Trading Acc ount /None of these)

2. The func tion key to ac tivate c alc ulator is _______.

(Ctrl+F8 /Alt+F8 /Ctrl+N /Alt+N)

3. Owner’s draw is called________.

(Capital /Drawings /Stock /Payment)

4. All outstanding c omes under ______ group in Tally.

(Current Asset /Current Liabilities /Fixed Asset /Both a&b)

5. _______ assets used for selling purpose.

(Fixed Asset /Intangible Asset/ Current Asset /None of these)

6. Analysis of rec orded data to bring entries of similar nature to one

plac e is c alled______.

(Analysis / Summarising /Classifying /Recording)

7. Book keeping is c oncerned with______.

(Analysis of transac tions/ Recording of transac tions /

Classific ation of transactions /None of these)

8. A Bank Reconciliation Statement is prepared by_______

(Banker /Customer / Debtor / Owner)

9. All non c ash transac tions are recorded in______ voucher.

(Contra / Receipt /Journal /Payment)

10.Inc ome received in advance is a ______

(Liability / Asset /Income /Expense)

Fill in the blanks (10*2=20)

1. The proc ess of recording transactions to the journal is c alled_______.

2. A person who is entitled to get money from the business is termed as a_______.

3. The proc ess of transferring entries from books of original entry to the

ledger is c alled_______.

4. A statement of debit and c redit balanc e of acc ounts is called a _______.

5. _______ helps in verifying the correctness of accounts.

6. The sourc e documents provide information about the nature of_______

involved in it.

7. Commission received in advance is a _______.

8. The amount invested by the proprietor is called_______

9. The amount of net profit or net loss is transferred to _______ acc ount.

10.________ is c alled stoc k items in Tally.

. State whether the following are True or False (5*2=10)

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1. Journal vouc her is used for adjustment transactions.

2. Cash or valuables owned by a business are a liability.

3. Revenues are amounts earned by selling the products of a conc ern.

4. Balance Sheet is prepared to show profit.

5. Goodwill is an intangible asset.

Match the following (5*2=10)

Stock Acc ounts Receivable

Debtors Unsold Goods
Drawings Goods for sale
Purc hases Long-term use
Fixed Assets Withdrawals by owners

. Answer the following questions (10*2=20)

1. Definition of Acc ounting. Name the types of acc ounts.

2. What is meant by Trial Balance? Draw the form of a Trial Balanc e.

3. Explain Journal and Ledger.

4. What is meant by direc t expense? How it should be treated?

Give some direct expenses.

5. What is meant by bad debts?Give an adjusting entry for bad debts and also how it

would appear in Profit and Loss Ac count and Balance Sheet.

6. Explain outstanding or acc rued inc omes, give an adjusting entry.

7. What is an asset ? Difference between fixed asset and c urrent asset.

8. What is meant by trading acc ount? Give an proforma of a trading acc ount.

9. What are Financ ial Statements?

10.Explain Bank Reconc iliation Statement and Pass book.

. Answer any one of the following (1*20=20)

1. The following balances were extrac ted from the books of Raj

on 31 st December,2004. Prepare Trading and profit and Loss Acc ount

and Balanc e Sheet.

Partic ulars LF Dr.Amount Cr.Amount

Capital 46000

Drawings 3000

Purchases and Sales 90000 130000

Return 2000 3000

Cash in hand 4000

Bank overdraft 6000

Debtors and Creditors 40000 22000

Bad debts 1000

Scooter 8000

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Interest 3500

Commission 4000

Furniture 5000

Opening Stock 22000

Advertising 2000

Taxes and Insuranc e 3500

Machinery 20000

Discount allowed 1000

General Expenses 2500

Wages 3500

211000 211000

The following adjustments are to be made;

1. Stoc k on 31 st Dec 2004 is Rs.34000

2. Wages outstanding is Rs.500

3. Insuranc e Rs.300 is prepaid.

4. Commission receivable amounts to Rs.1000.

2. Journalize the following transac tions, prepare ledger acc ounts and also

Prepare a TrialBalanc e.

2004

Marc h 1. Arun started business with c ash Rs.12000.

Marc h 2. Purchased goods for cash Rs.6000.

Marc h 3. Purchased furniture Rs.2000.

Marc h 4. Sold goods for cash Rs.8000.

Marc h 5. Opened Bank Acc ount Rs.5000.

Marc h 6. Purchased goods and paid by cheque Rs.4000.

Marc h 7. Cash sales Rs.3000.

Marc h 8. Paid in to bank Rs.2000.

Marc h 9. Paid salary by cheque rs.400.

Marc h10. Received Commission Rs.200.

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