Short Questions
1.What is Accounting
2.What are the Objectives of Accounting
3.What is Book keeping
4.What is Double entry system
5.State the Rules of Double entry system
6.Describe the three kinds of Personal Accounts
7.What is a Journal
8.What is a Ledger
9.What is subsidiary books
10. Write the types of Subsidiary Books
11.What is a Trial balance
12. Name the Various types of Cash book .
13.What is a Cash Book
14. What is Meant by Rectification of Errors
15.What you Mean by suspense Account
16. Write the Four types of errors
Answers for Above Questions.
1.What is Accounting ?
According to American Institute of Certified Public Accountants (AICPA) defines " Accounting is the Art of Recording, Classifying and Summarising in a Significant Manner in terms of money transactions and Events which are in part , at least of a Financial Character and Interpreting the Results thereof."
2.What are the Objectives of Accounting ?
The following are the General Objectives of Accounting :
- Maintainance of Accounting Records
- Ascertainment of Profit or loss
- Depiction of financial Position
- Providing information to the users
3.What is Book keeping ?
Book keeping is concerned with the recording of transaction in a systematic manner. Book keeping is the art and science of recording, Classifying , and Summarising business transactions in money or money's worth accurately and systematically.
4.What is Double entry System ?
The system was invented by an Italian named luco pacioli in 1494 A.D. According to this system, every transaction has two aspects. One is benefit receiving aspect or incoming aspect and another one is benefit giving aspect or outgoing aspects. The benefit receiving aspect is calles as Debit and the benefit giving aspect is call as Credit.
5. State the rules of Double entry system.
• For Personal Account
Debit the Receiver
Credit the Giver
• For Real Account
Debit what comes in
Credit what goes out
• For Nominal Account
Debit All Expenses and Losses
Credit All Incomes and Gains
6.Describe the Three Kinds of Personal Accounts
Personal Account are Classified into Three they are ;
1.Natural Personal Account
2.Artificial Personal Account
3.Representative Personal Account
