2 Marks (IMP)
1. State any four fixed assets.
- Land
- Buildings
- Machinery and equipment
- Vehicles
2. What do you mean by computerised accounting.
Computerised accounting, also known as computerized accounting, is the use of computers to record, process, and report financial transactions.
3. What is bank reconciliation .
Bank reconciliation is the process of comparing a company’s bank statement to its own accounting records to ensure that all transactions have been accounted for and that the two balances match.
4. What is balance sheet.
A balance sheet is a financial statement that reports a company’s assets, liabilities, and shareholder equity at a specific point in time. It is one of the three core financial statements, along with the income statement and the cash flow statement.
5. What is pass book .
A passbook, also known as a bankbook, is a small paper booklet that is used to record bank transactions on a deposit account. It is typically issued to customers when they open a savings account.
6. What is cash discount .
A cash discount is a reduction in the amount of an invoice that a seller offers to a buyer in exchange for early payment.
7. What is depreciation.
Depreciation is the process of allocating the cost of a tangible asset over its useful life. This is done because assets tend to lose value over time due to wear and tear, obsolescence, and other factors.
8. What are subsidiary books?mention them.
Subsidiary books are books of original entry in which transactions of a specific type are recorded in chronological order. They are also known as day books or special journals.
- Cash book
- Purchase book
- Sales book
- Purchase returns book
- Sales returns book
9. What is credit note.
A credit note, also known as a credit memo, is a commercial document issued by a seller to a buyer to reduce the amount owed by the buyer. Credit notes are typically issued when a buyer returns goods, cancels an order, or receives a discount.
10.What is drawing.
In accounting, a drawing is a withdrawal of money or assets from a business by its owner(s). Drawings are typically accounted for as a reduction in the owner’s equity account.
11. What is accounting standards.
Accounting standards are a set of rules and principles that define how financial transactions and events should be recorded, measured, and reported. They are developed by accounting bodies such as the Financial Accounting Standards Board (FASB) in the United States and the International Accounting Standards Board (IASB) globally.
12. What is capital.
In accounting, capital refers to the net assets of a business, which is calculated by subtracting liabilities from assets. It is also known as owner’s equity or shareholder’s equity, depending on the type of business entity.
13. state any two fixed assests.
- Land
- Buildings
- Machinery and equipment
- Vehicles
- Furniture and fixtures
14. what is cash book.
A cash book is a financial journal that contains all cash receipts, including bank deposits and withdrawals. It is a subsidiary book, which means that it is used to record a specific type of transaction. Cash books are typically kept on a daily basis, and they are used to track the cash flow of a business.
15. State any two concepts of accounting.
- Business entity concept
- Accrual concept
16. What is trial balance.
A trial balance is a list of all the accounts in a general ledger, along with their balances, at a specific point in time. It is used to verify that all of the debits and credits in the general ledger are equal and to identify any errors in the accounting system.
17. State any two methods of depreciation.
- Straight-line method
- Double-declining balance method
18. What is balance sheet.
A balance sheet is a financial statement that reports a company’s assets, liabilities, and shareholder equity at a specific point in time. It is one of the three core financial statements, along with the income statement and the cash flow statement.
19. What is computerised accounting system.
A computerized accounting system is a software application that automates the financial records and reporting processes of a business. It can be used to record and track all financial transactions, including sales, purchases, expenses, and payroll.
20. What is contra entry.
A contra entry is a journal entry that records a transaction that affects two accounts, with the debit and credit amounts being equal. Contra entries are typically used to record transactions between cash and bank accounts, or between a cash account and a petty cash account.
21. Name any four subsidiary books..
- Cash book
- Purchase book
- Sales book
- Journal proper
22. What is bank Reconcilliation Statement
A bank reconciliation statement is a document that compares the bank balance shown on a company’s balance sheet to the balance shown on its bank statement. The statement displays the reasons for the differences between the two. A company can prepare a bank reconciliation statement at any time during the financial period.
23. What is date.
The date in an account refers to the date on which a transaction occurred or the date on which an account balance was updated.
24. What is goods.
Goods are physical objects that can be bought and sold. They are typically produced by businesses and sold to consumers. Goods can be durable or non-durable.
25. What is narration.
In accounting, narration is a brief explanation of a journal entry. It is used to describe the transaction that is being recorded and to provide additional context. Narration is not required for ledger entries, but it is helpful for understanding the accounting records.
26. What is journal.
A journal in accounting is a chronological record of all financial transactions that occur in a business. It is the first step in the accounting process, and it is used to create the general ledger and financial statements.
27. What is cash book.
A cash book in accounting is a journal that records all cash receipts and payments of a business. It is a subsidiary book, which means that it is used to record a specific type of transaction. Cash books are typically kept on a daily basis, and they are used to track the cash flow of a business.
28. What is purchase book.
A purchase book is a subsidiary book in accounting that records all credit purchases of goods. It is used to track the cost of goods purchased and the supplier of those goods.
29. who is called as creditor.
In accounting, a creditor is a person or entity that is owed money by another person or entity, known as the debtor. Creditors are typically individuals or businesses that have provided goods or services on credit, or have lent money.
30. Expand IF and LF and JF.
- IF = Ledger Folio
- LF = Ledger Folio
- JF = Journal Folio
31. What is transaction.
A transaction is a business event that has a financial impact on an entity’s financial statements. Transactions can be internal or external. Internal transactions are events that occur within the business, such as the depreciation of an asset or the transfer of inventory from one department to another.
32. What is bad debt.
Bad debt is an amount of money that a creditor must write off if a borrower defaults on the loans. If a creditor has a bad debt on the books, it becomes uncollectible and is recorded as a charge-off.
33. Examples of subsidiary books.
- Cash book
- Purchase book
- Sales book
- Purchases return book
- Sales return book
- Bills receivable book
34. Who is called as debtor.
35. What is profit.
36. What is discount.
A discount is a deduction from the original price of a good or service. Discounts can be offered for a variety of reasons, such as to encourage customers to purchase a product, to clear out inventory, or to promote a new product or service.
37. What is trade discount.
A trade discount is a reduction from the list price of a good or service that is offered to businesses that purchase in bulk from suppliers. Trade discounts are typically expressed as a percentage of the wholesale price.
38. What is contra entry.
A contra entry is a journal entry that is used to offset the balance of another account. Contra entries are typically used to record transactions that affect both assets and liabilities, or both income and expenses.