two accounts (b) Same account on two different dates (c) Two sides of the same account (d) Minimum three accounts Answers . (d) . (a) . (d) .
(d) . (b) . (a) II Very short answer questions . What are source documents?
. What is accounting equation? . Write any one transaction which a) Decreases the assets and decreases the liabilities b) Increases one asset and decreases another asset .
What is meant by journalising? . What is real account? .
How are personal accounts classified? . State the accounting rule for nominal account. .
Give the golden rules of double entry accounting system. III Short answer questions . Write a brief note on accounting equation approach of recording transactions. .
What is an Account? Classify the accounts with suitable examples. . What are the three different types of personal accounts?
. What is the accounting treatment for insurance premium paid on the life of the proprietor? . State the principles of double entry system of book keeping.
. Briefly explain about steps in journalising. . What is double entry system?
State its advantages. Accountancy - IV Exercises . Complete the accounting equation (a) Assets = Capital + Liabilities ` , , = ` , + ? (b) Assets = Capital + Liabilities ` , , = ?
+ ` , (c) Assets = Capital + Creditors ? = ` , , + ` , . For the following transactions, show the effect on accounting equation. (a) Raj Started business with cash ` , (b) Opened bank account with a deposit of ` , (c) Bought goods from Hari on credit for ` , (d) Raj withdrew cash for personal use ` , (e) Bought furniture by using debit card for ` , (f) Sold goods to Murugan and cash received ` , (g) Money withdrawn from bank for office use ` , .
Prepare accounting equation for the following transactions. (a) Murugan commenced business with cash ` , (b) Purchased goods for cash ` , (c)