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 :
Debit vouchers are a type of ____________vouchers.
Sum of the assets is always equal to total_____________.
Additional capital introduced equal will ____________cash.
Cash memos, cash and bank receipt required for marking entry in cash books.
Goods bought on credit will ____________assets.
Ans. 1. Cash 2. Equities 3. Increase 4. Cash book 5. Increase
TRUE OR FALSE STATEMENT :
Sale of old machines at profit will increase capital.
Credit means decrease in assets.
Increase in revenue is always debited.
Debit means increase in liabilities
Only selected transactions affect the accounting equation
Ans. 1. True 2. True 3. False 4. False 5. False
MULTIPLE CHOICE QUESTIONS :
Which of the following is not a correct equation ?
Assets = Capital + Liabilities
Capital = Assets - Liabilities
Liabilities = Assets - Capital
Capital = Assets + Liabilities
2. What would be the missing amount :
Assets - Liabilities = Capital
? - 9,000 = 7,000
2,000
20,000
14,000
16,000
3. Income will increase by
Purchase of Asset
Drawings
Paying rent
Selling goods on profit
4. Drawings would reduce :
Owner’s equity
Both assets and owner’s equity
Assets and increase liabilities
None of these
5. Capital increase by
Interest on capital
Selling goods on credit
Purchasing machinery on credit
Purchasing assets for cash
6. Amount withdrawn by proprietor for personal use will ____ cash and capital.
Increase
Decrease
Not change
None of these
7. Which accounting equation is incorrect out of the following ?
Liabilities = Assets -m Capital
Assets = Liabilities - Capital
Capital = Assets - Liabilities
Assets = Liabilities + Capital
8. An increase in one asset is accompanied by
Decrease in another asset
Increase in a liability
Increase in capital
All of these
9. Decrease in one liability may lead to
Decrease in an asset
Increase in another liability
Either (a) or (b)
None of these
10. Payment to a creditors means
Increase in assets and decrease in liability
Decrease in asset and decrease in liability
Decrease in asset and increase in liability
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 .