in accounting systems and the importance of source documents in those systems? . Describe how debits and credits are used to analyse transactions. .
Describe how accounts are used to record information about the effects of transactions? . What is a journal? Give a specimen of journal showing at least five entries.
. Differentiate between source documents and vouchers. . Accounting equation remains intact under all circumstances.
Justify the statement with the help of an example. . Explain the double entry mechanism with an illustrative example. Numerical Questions Analysis of Transactions .
Prepare accounting equation on the basis of the following : (a) Harsha started business with cash Rs. , , (b) Purchased goods from Naman for cash Rs. , (c) Sold goods to Bhanu costing Rs. , /- Rs.
, (d) Bought furniture on credit Rs. , ( Ans: Asset = cash Rs. , , + Goods Rs. , + Debtors Rs.
, + Furniture Rs. , = Rs. , , ; Liabilities = Creditors Rs. , + Capital Rs.
, , = Rs. , , ) . Prepare accounting equation from the following: (a) Kunal started business with cash Rs. ,50000 (b) He purchased furniture for cash Rs.
, (c) He paid commission Rs. , (d) He purchases goods on credit Rs. , (e) He sold goods (Costing Rs. , ) for cash Rs.
, ( Ans: Asset = Cash Rs. , , + Furniture Rs. , + Goods Rs. , = Rs.
, , ; Liabilities = Creditors Rs. , + Capital Rs. , , = Rs. , , ) .
Mohit has the following transactions, prepare accounting equation: (a) Business started with cash Rs. , , (b) Purchased goods from Rohit Rs. , (c) Sales goods on credit to Manish (Costing Rs. , ) Rs.
, (d) Purchased furniture for office use Rs. , (e) Cash paid to Rohit in full settlement Rs. , (f) Cash received from Manish Rs. , (g) Rent paid Rs.
, (h) Cash withdrew for personal use Rs. , ( Ans: Cash Rs. , , + Goods Rs. , + Furniture Rs.
, = Rs. , , ; Liabilition = Capital Rs. , , ) . Rohit has the following transactions : (a) Commenced business with cash