Question 1: What do you mean by Book keeping? Describe the main objectives and significance of Book keeping.
Question 2: What are the golden rules of accounts? Give five illustrations of each kind of account.
Question 3:
a) Differentiate between Trading and Non Trading organization.
b) Define the term Depreciation. What are the causes of depreciation?
Question 4: Write Short notes on any four:
a) Objectives of Accountancy.
b) Benefits of Cash Book.
c) Bank Reconciliation Statement.
d) Capital Expenditure.
e) Fixed Installment Method.
Question 5: Rectify the given errors.
a) A machine purchased Rs. 33,100 is debited to Purchases account.
b) Wages paid for erection of new machinery Rs. 3,500 are debited to Wages account.
c) Material of Rs. 10,500 and wages of Rs. 5,500 paid for additions to building were debited to Purchases and Wages account.
d) Land acquisition charges paid Rs. 10,800 were debited to Legal Charges account.
e) Carriage paid on purchases of goods Rs. 4,000 was debited to Goods account.
f) Rs. 1,000 paid for repairs to Machinery were debited to Machinery account.
g) Salaries of Rs. 1,800 paid to Mr. A were debited to Mr. A’s account.
h) Goods sold to Mr. A Rs. 1,000 are recorded in the Purchase book.
i) Wages paid Rs. 4,100 are posted to Salaries Account.
j) Goods purchased from Mr. A Rs. 2,400 on credit were recorded as Rs. 240 in the Purchase Book.