VS VOUCHERS AND TRANSACTIONS

ONE WORD TO ONE SENTENCE QUESTIONS

Q.1. What is the basic accounting equation ?

Ans. Liabilities + Capital; = Assets .

Q.2. What do you mean by invoice  ?

Ans. Invoice is a bill which is prepared by trader when he sells goods on credit

Q.3. What is the meaning of a voucher ?

Ans. Voucher is a document which is prepared for the purpose of recording business trans-actions in the books.

Q.4. Write down the types of vouchers ?

Ans,. (a) Cash Vouchers (b) Non cash vouchers.

Q.5. A business has assets of Rs. 44321 and capital of Rs. 35,000 Find liabilities ?

Ans. Liabilities + Capital = Assets

Liabilities = 25,000 = 44,321

Liabilities = 44,321 - 25,000 = 19321

Q.6. What do you mean by cash memo /

Ans. When a person sells goods for cash he gives a cash memo to the customer.

Q.7. What is the meaning of pay in slip ?

Ans. Pay in slip is a source document available from the bank free of cost is needed when cash cheques or drafts are  deposited into the bank. 

Q.8. Calculate Assets of business if liabilities are Rs. 40,000 and capital is Rs. 70,000 ?

Ans. Liabilities + Capital  = Assets

Assets = 40,000 + 70,000 = Rs. 1,10,000

Q.9. What is the meaning of a debit note ?

Ans. The debit note may be prepared for the goods retired to the supplier.

Q.10. What is credit not ?

Ans. The credit may not be prepared for the goods returned by customer.

FILL IN THE BLANKS :

1. Debit vouchers are a type of ____________vouchers.

2. Sum of the assets is always equal to total_____________.

3. Additional capital introduced equal will ____________cash.

4. Cash memos, cash and bank receipt required for marking entry in cash books.

5. Goods bought on credit will ____________assets.

Ans. 1. Cash  2. Equities  3. Increase  4. Cash book  5. Increase

TRUE OR FALSE STATEMENT :

1. Sale of old machines at profit will increase capital.

2. Credit means decrease in assets.

3. Increase in revenue is always debited.

4. Debit means increase in liabilities

5. Only selected transactions affect the accounting equation

Ans. 1. True  2.  True  3. False  4. False  5. False 

MULTIPLE CHOICE  QUESTIONS :

1. Which of the following is not a correct equation ?

1. Assets = Capital + Liabilities

2. Capital = Assets - Liabilities

3. Liabilities = Assets - Capital

4. Capital = Assets + Liabilities

2. What would be the missing amount :

Assets - Liabilities = Capital

? - 9,000 = 7,000

1. 2,000

2. 20,000

3. 14,000

4. 16,000

3. Income will increase by

1. Purchase of Asset

2. Drawings

3. Paying rent

4. Selling goods on profit

4. Drawings would reduce :

1. Owner’s equity

2. Both assets and owner’s equity

3. Assets and increase liabilities

4. None of these

5. Capital increase by

1. Interest on capital

2. Selling goods on credit

3. Purchasing machinery on credit

4. Purchasing assets for cash

6. Amount withdrawn by proprietor for personal use will ____ cash and capital.

1. Increase

2. Decrease

3. Not change

4. None of these

7. Which accounting equation is incorrect out of the following ?

1. Liabilities = Assets -m Capital

2. Assets = Liabilities - Capital

3. Capital = Assets - Liabilities

4. Assets = Liabilities + Capital

8. An increase in one asset is accompanied by

1. Decrease in another asset

2. Increase in a liability

3. Increase in capital

4. All of these

9. Decrease in one liability may lead to

1. Decrease in an asset

2. Increase in another liability

3. Either (a) or (b)

4. None of these

10. Payment to a creditors means

1. Increase in assets and decrease in liability

2. Decrease in asset and decrease in liability

3. Decrease in asset and increase in liability

4. Increase in asset and increase in liability

Ans.  1. D  2. D  3. D  4. B  5. A  6. B  7. B  8.  D  9. C  10. B .