Accounting Process-Books of Accounts - Preparation of Trial Balance (CA Foundation Principles of Accounting): Questions 5 - 10 of 31

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Question number: 5

» Accounting Process » Books of Accounts - Preparation of Trial Balance

Short Answer Question▾

Write in Short

What is an accounting equation?

Question number: 6

» Accounting Process » Books of Accounts - Preparation of Trial Balance

Essay Question▾

Describe in Detail

What is meant by a compound journal entry?

Explanation

Every transaction that has been identified from the source documents, finds its place in the books of original entry namely the journal. A journal entry is passed in the journal for each and every transaction.

Sometimes a combined journal entry is passed for few transactions in the following cases such… (115 more words) …

Question number: 7

» Accounting Process » Books of Accounts - Preparation of Trial Balance

Essay Question▾

Describe in Detail

At the end of the accounting period 31st December 2015, Jackson Ltd, had assets of Rs. 16, 00, 000 and liabilities of Rs. 7, 00, 000.

Using the accounting equation, you are required to find out

(a) The owner’s equity as on 31st December 2015 and

(b) The owner’s equity as on 31st December 2016, assuming that the assets had increased by Rs. 2, 60, 000 and the liabilities had decreased by Rs. 50000 during that year

Explanation

(a) Accounting equation is

Assets = Liabilities + owner’s equity.

Rs. 1600000 = Rs. 700000 + owner’s equity

Owner’s equity = Rs. 1600000 – Rs. 700000

Owner’s equity = Rs. 900000

Image show the Accounting equation

Image Show the Accounting Equation

Different way in writing accounting equation.

(b) Let us first determine the change in… (76 more words) …

Question number: 8

» Accounting Process » Books of Accounts - Preparation of Trial Balance

Essay Question▾

Describe in Detail

Calculate total equity and owner’s equity of Monish Ltd. , at the end of year if

  • Owner’s equity in the beginning is Rs. 50000,

  • Equity of the creditors at the end of year is Rs. 20000

  • Revenue during the year is Rs. 30000

  • Expenses during the same year is Rs. 25000

Explanation

Owner’s equity:

Owner’s equity = Opening of owner’s equity + Revenue – Expenses

Formula for Owner’s equity

Formula for Owner’S Equity

Formula for calculating the owner’s equity for the given period

Given:

Opening Owner’s equity = Rs. 50000

Revenue = Rs. 30000

Expense = Rs. 25000

= 50000 + 30000 – 25000

= Rs.… (46 more words) …

Question number: 9

» Accounting Process » Books of Accounts - Preparation of Trial Balance

Short Answer Question▾

Write in Short

During the financial year 2015 - 16, Santosh had cash sales of Rs. 200000 and credit sale of Rs. 100000. His expenses for the year were Rs. 50000 out of which Rs. 25000 is still to be paid. Find the Santosh income for 2015 - 16 under Cash Basis of Accounting as well as in Accrual Basis of Accounting.

Question number: 10

» Accounting Process » Books of Accounts - Preparation of Trial Balance

Essay Question▾

Describe in Detail

What is meant by the golden rules of accounting?

Explanation

In accounting we have different types of account to deal with. These include accounts such as persons, bank, cash, expenses, losses, profits, revenues, corporate, assets, liabilities etc. All these types of accounts are classified into three major categories such as

  • Personal Accounts

  • Real accounts

  • Nominal accounts.

Major categories of accounts

Major Categories of Accounts… (89 more words) …

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