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Short Answer Questions Question 1. Define depreciation. State any two reasons for providing depreciation. Solution 1: Depreciation may be defined as the permanent and continuing diminution in the...
Long Answer Question Question 1. What is a Bank Reconciliation Statement? Explain any four points regarding need and importance of preparing a Bank Reconciliation Statement. Solution 1: Bank...
Short Answer Question Question 1. What is a Trail Balance? State any four functions of a Trail Balance. Solution 1: According to J.R. Batliboi, "A Trial Balance is a statement, prepared with the...
Short Answer Question Question 1. Distinguish between Journal and Ledger. Solution 1: Question 2. Enumerate four advantages of Ledger. Solution 2: Below are the advantages of ledger:- (1) All...
Question 1. Give specimen of the following, with two entries in each- (i) Purchase Book, (ii) Purchases Return Book. Solution 1: Purchases Book :- All the credit purchases of goods are recorded in...
Short Answer Questions Question 1. What is Sub-division of Journal? Solution 1: It is convenient to maintain a separate book for each such class of transactions-one to record cash transactions,...
Short Answer Question Question 1. What is GST? Solution 1: Goods and services tax (GST) is a tax imposed indirectly on the goods and services supply. Question 2. Name the two central taxes that have...
Very Short Questions Question 1. What is a journal? Solution 1: Journal is a book of prime entry or a book of original entry in which transaction are first recorded in a chronological order or...
Very Short Questions Question 1. Define source documents of accountancy. Solution 1: The source documents are the information about the transaction based on which account are debited or credited with...
Very Short Questions Question 1. What is the double-entry system of book-keeping? Solution 1: Double Entry System of Book-keeping refers to a system of accounting. Under this system two aspects of...
Short Answer Question Question 1. Give two basic purposes of the accounting equation. Solution 1: The two basic purposes of the accounting equation are. (i) The accounting equation is always equal...
Short Questions Question 1. Define accounting standard. Solution 1: Kohler has defined Accounting Standards as, “a code of conduct imposed on an accountant by custom, law and a professional body.”...