202 Financial Accounting | Question Bank

Answer the following questions 

 

1. Define the term Financial Accounting

2. Define the term 'Debtor' and 'Creditor.

3. Define the terms 'Capital' and 'Drawing

4. What is Accounting?

5. What is Transaction?

6. Write short notes on:

7. Limitations of Financial Accounting

8. Objectives of Financial Accounting

9. Classify the following accounts:

·         Prepaid Taxes Account Railway Sidings Account

·         Loose Tools Account

·         Bad Debts Account

·        

·         Dena Bank Loan Account

10. What is Financial Accounting? What are the advantages and limitations of Financial Accounting?

11. Explain various concepts of Accounting.

12. Write notes on

·         Conventions of Accounting 

·         Going Concern Concept

·         Business Entity Concept

·         Matching Principle

13. Define the term 'Convention'.

14. What is a Double Entry Book-keeping System?  Explain the advantages and disadvantages of the Double Entry Book-keeping System.

15. Give the rule of journalizing the transactions of a Personal Account.

16. Journalize the following transaction in the book of Mr. Abhaykumar for the month of

December 2011.

December 2001

1 Mr. Abhaykumar started the business with cash of 32,000, Machinery of 21,000, and Furniture of 7,000.

3 Purchased Goods from Mr. Jayant 11,000 at 10% Trade Discount.

5 Sold goods to Mr. Rajesh for 9,000 at 5% Trade Discount.

9 Sold goods to Mr. Ajay 3,000 at 5% Trade Discount.

12 Purchased Machinery of 8,000 for cash and spent 100 for Transport of Machinery in cash.

16 Paid 1,000 as Office Rent.

17. Explain Bank Reconciliation Statement?

18. What is the importance of the Bank Reconciliation Statement?

19. Problems with Bank Reconciliation Statement

20. When Debit bank Balance as per Pass Book is given:

The passbook of Mr. Mukesh shows an overdraft of 25,500 on 30 June 2018. Prepare his bank Reconciliation Statement based on the following:

1. A cheque for 20.000 was deposited but still on 30 June it is not collected.

2. Cheque for 4,000 was issued to Sanskar on 16 June but it was misplaced by him.

3. Bank informed that a cheque of 12,000 which was deposited into the bank on 25 June was dishonored.

4. A cheque for 6,000 was issued to Nayan and it was encashed by her but it was recorded twice in the cash book in the bank column.

5. A cheque for 8,000 was issued to Anjali and she deposited but it was recorded twice in the cash book bank column.

6. A cheque of 16,000 received from Aayushi was recorded as deposited into the bank but was not actually deposited.