1
What is Dual Aspect Concept?
It is the basic principle of accounting. It states that every transaction has a two-fold effect in the book of accounts i.e two accounts are involved.
Is the purchase return account have a debit or credit balance?
Credit.
What is a compound entry?
A compound journal entry is an accounting entry in which there is more than one debit, more than one credit, or more than one of both debits and credits. It is essentially a combination of several simple journal entries.
Write the journal entry for opening a bank account in HDFC.
Bank A/c Dr
To Cash A/c
Name the four classification of errors
Which one affects the books of accounts?
Errors of Commission - Affects
Errors of Omission - Affects
Errors of Principle- Do not affect
Compensating Errors- Do not affect
Tell any two differences between capital reserve and revenue reserve
Source of creation
Profits
Usage
Salaries
Purchases less returns
Sales less returns
Opening Stock
Rent Received
Gross Loss
Which side of the Tr& P/L account does the above items come?
Salaries - Dr
Purchases less returns - Dr
Sales less returns - Cr
Opening Stock - Dr
Rent Received - Cr
Gross Loss - Cr (when we balance it)
State the steps to find the
(a) profit and loss
(b) credit purchases
(c) credit sales
from incomplete records
(a) profit and loss - To the difference of opening capital and closing capital, sum withdrawn is added back and additional capital introduced is deducted.
(b) credit purchases- Preparation of total creditors account and the balancing figure would be the credit purchases
(c) credit sales - Preparation of total debtors account and the balancing figure would be the credit sales
Name the 5 steps in the data processing cycle
1. Source documents
2. Input of data
3. Data storage
4. Manipulation of Data
5. Output of data