Year: 9i Reinforcement Sheet.

Subject: Accounting Date: _______

1. What is Accounting? Explain the process of Accounting.

2. Explain the objectives of Accounting
3. Calculate the accounting equation
ASSETS LIABILITIES CAPITAL
456890 121345 ?
980000 ? 498769
? 653535 5454368
? 78901 356789
456781 ? 256000

4. Classify the following accounts into Personal Account, Real Account & Nominal
Account.

1. Furniture Account
2. Salaries Account
3. Outstanding Wages Account
4. National Trading Co. Ltd’s Account
5. Stationery Account
6. Prepaid Insurance Account
7. Capital Account
8. Interest Account
9. Building Account
10. Purchase Account
11. Cash Account
12. Bank Account
13. Sales Account
14. Commission received in Advance Account
15. Discount Account
16. Drawing Account
17. Loan Account
18. Mysore Store’s Account
19. Repairs to Machinery Account
20. Stock Account
21. Investment Account
22. Loose Tools Account
23. Bangalore Sports Club’s Account
24. Loss of Goods by Fire Account
25. Motor Vans Account
26. International Trader’s Account
27. Goodwill Account
 28. Depreciation Account
29. Bad Debts Account
30. Bad Debts Recovered Account
31. Bank Overdraft Account
32. Book Debts Account
33. Purchases Returns Account
34. Sales Returns Account
35. Postage Account
36. Charity Account
37. Carriage Account
38. Rent Account
39. National College’s Account
40. Bills receivable Account

Personal Account Real Account Nominal Account

5. Classify the following accounts into Non-current assets, Current asset, Non-Current
liability and Current liability
1. Furniture Account
2. Outstanding Wages Account
3. . Building Account
4. Cash Account
5. Bank Account
6. Commission received in Advance Account
7. Loan Account
8. Investment Account
9. Loose Tools Account
10. Motor Vans Account
11. Goodwill Account
 12 Bank Overdraft Account

Non-Current Asset Current Asset Current Liability Non-Current

Liability

6. Journalise the following transactions in the books of Himanshu: 2021

Dec.01 Business started with cash 75,000
Dec.07 Purchased goods for cash 10,000
Dec.09 Sold goods to Swati 5,000
Dec.12 Purchased furniture 3,000
Dec.18 Cash received from Swati In full settlement 4,000
Dec.25 Paid rent 1,000
Dec.30 Paid salary 1,500

7. Enter the following Transactions in the Journal of Mudit:

2016 `
Jan.01 Commenced business with cash 1,75,000, Building 1,00,000
Jan.02 Goods purchased for cash 75,000
Jan.03 Sold goods to Ramesh 30,000
Jan.04 Paid wages 500
Jan.06 Sold goods for cash 10,000
Jan.10 Paid for trade expenses 700
Jan.12 Cash received from Ramesh 29,500 Discount allowed 500
Jan.14 Goods purchased for Sudhir 27,000
Jan.18 Cartage paid 1,000
Jan.20 Drew cash for personal use 5,000
Jan.22 Goods use for house hold 2,000
Jan.25 Cash paid to Sudhir 26,700 Discount allowed 300

8. Journalise the following transactions:

2014 `
Dec. 01 Hema started business with cash 1,00,000
Dec. 02 Open a bank account with SBI 30,000
Dec. 04 Purchased goods from Ashu 20,000
Dec.06 Sold goods to Rahul for cash 15,000
Dec.10 Bought goods from Tara for cash 40,000
 Dec.13 Sold goods to Suman 20,000
Dec.16 Received cheque from Suman 19,500 Discount allowed 500 Dec.20 Cheque
given to Ashu on account 10,000
Dec.22 Rent paid by cheque 2,000
Dec.23 Deposited into bank 16,000
Dec.25 Machine purchased from Parigya 10,000
Dec.26 Trade expenses 2,000
Dec.28 Cheque issued to Parigya 10,000
Dec.29 Paid telephone expenses by cheque 1,200
Dec.31 Paid salary 4,500

9. From the following balances extracted from the books of a trader, prepare Trial
Balance as on 31st March, 2006.
Cash in hand 4200 Cash at Bank 16800 Bills Receivable 18000 Bills payable 16000
Sundry debtors 24600 Sundry creditors 32400 Capital 50000 Drawings 18000 Sales
105000 Purchases 75000 Carriage Inward 2700 Salaries 12000 Advertisement 2400
Insurance 1600 Furniture 7500 Stock 18600 Office Rent 2000

10. Prepare Trial Balance of M/s Multiplying enterprise as on 31st December, 2006.

Cash in hand 2500 Debtors 18200 Cash at Bank 14500 Creditors 16600 Capital 70000
Opening stock 8700 Drawing 9000 Wages 6700 Purchases 60000 Rent 5000 Sales 82000
Salary 8400 Machine 35000 Bills Payable 11400 Furniture 12000

11. Prepare Trial Balance as on 31st March, 2006 from the following balances of Sabana :

Cash in hand 3100 Bank overdraft 18250 Opening stock 24600 Purchases 59800 Sales
72350 Sabana’s Capital 50000 Drawings 12000 Carriage Inward 1600 Rent 2400
Commission 2100 Interest 780 Furniture 5220 Creditors 13600 Debtors 27800 Building
20000 1000
12. Prepare the following ledgers accounts in the books of Himanshu: 2021.
Cash account, Purchase account and Furniture account
Dec.01 Business started with cash 75,000
Dec.07 Purchased goods for cash 10,000
Dec.09 Sold goods to Swati 5,000
Dec.12 Purchased furniture 3,000
Dec.18 Cash received from Swati In full settlement 4,000
Dec.25 Paid rent 1,000
Dec.30 Paid salary 1,500
13. Prepare the following ledgers accounts in the books of Ajay.
Bank account, Purchase account and Xavier account
2023
January 21 Ajay sold goods, $245, on credit to Xavier Traders
22 Xavier Traders returned damaged goods, $55, to Ajay
23 Ajay purchased goods, $820, on credit from Varun
25 Xavier Traders paid their account by cheque
27 Ajay returned faulty goods, $44, to Varun
30 Ajay gave Varun a cheque for $700 on account
14.
1) A trader prepares his financial statements.
Which explanations correctly describe his reasons?
1 to be able to calculate his closing inventory
2 to know if he is receiving a return on his investment
3 to make sure that all financial transactions are recorded
4 to measure the progress of his business from year to year
A 1 and 2
B 2 and 4
C 3 and 4
D 4 only

2) When does a trader send a credit note?

A when he purchases goods on credit
B when he receives a return of goods sold on credit
C when he returns goods he purchased on credit
D when he sells goods on credit

3) What are assets?

A items that are expected to be turned into cash in the near future
B items that are owned by or owed to a business
C items that are owned by or owed by a business
D items that are purchased for long-term use by a business

4) A trader wishes to know the cost of goods sold during the year.
Which financial statement will provide the answer?
A Balance Sheet B Profit and Loss Account
C Trading Account D Trial Balance
5) Mahela is a trader. He took goods costing $100 for his own use.
How would Mahela record this in his ledger?

Account to be debited Account to be credited

A drawings inventory
B drawings purchases
C inventory drawings
D purchases drawings

6) What is cash discount?

A an allowance given to a customer for paying in cash
B an allowance given to a customer for prompt payment
C a deduction from the list price of goods bought by a customer
D a deduction from the list price of goods for bulk buying by a customer

7) Fatima bought goods from Miriam at a total list price of $2000. Miriam allows her
customers trade discount of 10% and cash discount of 2%. What was the amount of the
invoice?
A $1760
B $1764
C $1800
D $1960

8) How are sales returns recorded in the ledger? account to be debited account to be
credited
A cash sales returns
B customer sales returns
C sales returns cash
D sales returns customer

9) Udoka bought goods on credit from Francis, $1000. Udoka paid Francis by cheque after
deducting 3% cash discount. Which entries record this payment in Udoka’s books? account
debited $ account credited $
A bank discount allowed 970 30 Francis 1 000
B Francis 1 000 bank discount allowed 970 30
C bank discount received 970 30 Francis 1 000
D Francis 1 000 bank discount received 970 30

10) What is the correct treatment of a sale on credit? general ledger sales ledger
A debit cash credit sales
B credit sales debit cash
C credit sales debit debtor
D debit debtor credit sales

11) Why is a trial balance prepared?

A to calculate net profit
B to check the amount of the owner’s capital
C to check the arithmetical accuracy of the double entry
D to find out how much is owed to creditors

12) Which is a liability of a business?

A amount owing by debtors

B amount owing to creditors
C long term loan to employee
D property tax paid in advance