Plus One

Kerala State Board New Syllabus Plus One Accountancy Chapter Wise Previous Questions and Answers Chapter 12 Accounting System Using Database Management System.

Kerala Plus One Accountancy Chapter Wise Previous Questions and Answers Chapter 12 Accounting System Using Database Management System

Question 1.
Krishna intends to create a table in MS-Access. Suggest suitable data types for the following fields. (March 2015)

Answer:
Field Name – Data Type
a) Job Id – Number/Text
b) Job Name – Text
c) Job Type – Text
d) Job Department – Text
e) Job Unit – Number
f) Job Time – Date/Time

Question 2.
A company has supplied certain information required for creating a table under MS Access. (Say 2015)

Fill in the blanks with suitable data types wherever you find a question mark.
Answer:
Field Name – Data type
a) Account code – Number/Text
b) Account name – Text
c) Debit/Credit – Number/Text
d) Amount – Number
c) Narration – Text

Question 3.
Sorting or filtering of records is not possible in _____ data type. (March 2016)
a) text
b) number
c) memo
d) date
Answer:
c) Memo

Question 4.
Fill in the blank with a suitable data type on the basis of the hint given: (March 2016)
a) Name : Text
b) Birthdate : ________
Answer:
b) Birthdate : Date/Time/Text

Question 5.
List any two ways in which queries may be created in access. (March 2016)
Answer:
Design view, SQL, wizard

Question 6.
Consider the following table and answer the questions given below. (Say 2016)

a) Name of the entity.
b) Primary key.
c) Generate a meaningful record by writing an example in the above boxes with a question mark.
Answer:
a) Student
b) Student Adm. No.
c)

Question 7.
Mention the steps for creating a simple table in MS Access. (Say 2016)
Answer

• MS Access
• Table/Table design
• Data Type
• Set primary key
• Save the table

Question 8.
Entity in MS Access is a ________ (March 2017)
a) object of relation
b) present a working model
c) thing in the real world
d) model of the relation
Answer:
c) Things in the real world

Question 9.
What is the maximum length a text field can be in MS Access? (March 2017)
a) 120
b) 255
c) 265
d) 75
Answer:
b) 255

Question 10.
Write any two data types in MS-Access with suitable examples. (March 2017)
Answer:
The followings are the different data types:

• Text → Example: Job name, Job type, etc.
• Number → Example: Job unit, Job ID
• Date/Time → Example: Job time
• Currency → Example: Dollars, Rupees, etc.
• Yes/No

Kerala State Board New Syllabus Plus One Accountancy Chapter Wise Previous Questions and Answers Chapter 11 Structuring Database for Accounting.

Kerala Plus One Accountancy Chapter Wise Previous Questions and Answers Chapter 11 Structuring Database for Accounting

Question 1.
The formal blueprint or pictorial representation of accounting reality using the entity-relationship model concept is called ________ (March 2015)
a) E R design
b) Voucher
c) Entity
d) Database structure
Answer:
a) E R design

Question 2.
The most suitable ‘data-type’ for storing ‘name’ in a database is a _________ (March 2015)
a) number
b) text
c) date
d) memo
Answer:
b) Text

Question 3.
Consider the following fields of MS-Access and answer the questions. (March 2015)

1. Here, ‘Voucher’ stands for _______
2. ‘Voucher Name’ is termed as _________

Answer:

1. Entity
2. Attribute

Question 4.
State the entity and its attributes for the given information wherever you find a question mark. Entity:? (Say 2015)

(Hint: The above information is taken from the payroll records of a company.)
Answer:
Entity → Employee
Attributes → ID, Name, Age, Designation

Question 5.
________ are some properties or characteristics that give more description of an entity. (March 2016)
a) Objects
b) Attributes
c) Entity types
d) Values
Answer:
b) Attributes

Question 6.
Observe the following table. (March 2016)

a) Give a suitable entity name.
b) Write the relevant attributes relating to the entity.
Answer:
Entity → Employee/student
Attribute → Job ID, Name, Sex, Date of Birth

Question 7.
Arrange the following items given in the brackets into their order of occurrence in the transaction processing cycle. (Say 2016)
(Storage, Data Entry, Processing, validation)

Answer:

1. Data Entry
2. Validation
3. Processing
4. Storage

Question 8.
a) Write a suitable entity for the attributes given below. (March 2017)
Account Code, Account Name
b) Also identify the key attribute to that entity.
Answer:
a) Entity – Accounts
b) Key attributes – Account code, Account name.

Kerala State Board New Syllabus Plus One Accountancy Chapter Wise Previous Questions and Answers Chapter 10 Applications of Computers in Accounting.

Kerala Plus One Accountancy Chapter Wise Previous Questions and Answers Chapter 10 Applications of Computers in Accounting

Question 1.
The physical components of a computer are collectively called as _________ (March 2010)
a) software
b) hardware
c) live-wave
d) None of these
Answer:
b) Hardware

Question 2.
The use of computers in accounting is called computerized accounting.” Explain four points of difference between manual accounting and computerized accounting. (March 2010)
Answer:
Computerised Accounting

1. In computerised accounting data can be easily processed and statements can be prepared with high speed and accuracy.
2. Mass data can be stored in a very small space and brought back very easily.
3. Coding is essential in computerised accounting.
4. Closing entries are not necessary.
5. The possibility of errors is less in computerised accounting.

Manual Accounting

1. In manual accounting financial statements cannot be prepared with such speed and accuracy.
2. Data are stored in a large number of books and retrieval of data is a very tedious job.
3. Coding is not essential.
4. Closing entries are necessary.
5. The possibility of errors is more.

Question 3.
“Even though computers possess many capabilities, they suffer from a number of limitations. Mention any four limitations of computers. (March 2010)
Answer:

1. Lack of commonsense
2. Computers have no intelligence
3. Lack of decision making skill
4. No feeling

Question 4.
What is a computer? Explain its capabilities and limitations. (March 2011)
Answer:
A computer is an electronic device which accepts data and instructions input, stores them, processes the data according to the instructions, and communicates the results as output.
Capabilities of a computer:

• High-speed
• A large volume of data can be stored.
• Accuracy is very high.
• Computers are multi-purpose ¡nformaon machine i.e. versatility.

Limitations of a computer:

• Computers lack common sense.
• Lack of decision-making skills
• Computers have no intelligence.
• Computers cannot make judgments based on feelings.

Question 5.
How is computerized accounting more helpful to business decision making than manual accounting? (March 2011)
Answer:

• Speed and accuracy
• Storage and retrieval of data
• Automatic and instant processing
• Ease in alteration
• Periodic availability of results

Question 6.
Processed data becomes _________ (March 2012)
a) data based
b) information N
c) record
d) data
Answer:
b) Information

Question 7.
What is computerized accounting? What are the differences between computerized accounting and manual accounting? (March 2012)
Answer:
Computerised accounting is different from manual accounting, the following are the main difference between these two:
Computerised Accounting

1. In computerised accounting data can be easily processed and statements can be prepared with high speed and accuracy.
2. Mass data can be stored in a very small space and brought back very easily.
3. Coding is essential in computerised accounting.
4. Closing entries are not necessary.
5. The possibility of errors is less in computerised accounting.

Manual Accounting

1. In manual accounting financial statements cannot be prepared with such speed and accuracy.
2. Data are stored in a large number of books and retrieval of data is a very tedious job.
3. Coding is not essential.
4. Closing entries are necessary.
5. The possibility of errors are more.

Question 8.
Find the odd one out from the following and state the reasons. (March 2012)
a) Printer
b) Keyboard
c) Monitor
d) Plotter
Answer:
b) Keyboard – All others are output devices, the keyboard is an input device.

Question 9.
“Even though computers possess many capabilities it suffers from a number of limitations. Mention any four limitations of computers. (Say 2012)
Answer:

• Computers lack common sense.
• Lack of decision-making skills
• Computers have no intelligence.
• Computers cannot make judgments based on feelings.

Question 10.
Find out the odd one from the following. (Say 2012)
a) Monitor
b) Printer
c) Barcode reader
d) Plotter
Answer:
c) Barcode reader

Question 11.
Mr. A maintains his accounts manually. Mr. B uses computers for the preparation of accounts. State any two differences between these two systems. (Say 2012)
Answer:
Computerised Accounting

1. In computerised accounting data can be easily processed and statements can be prepared with high speed and accuracy.
2. Mass data can be stored in a very small space and brought back very easily.
3. Coding is essential in computerised accounting.
4. Closing entries are not necessary.
5. The possibility of errors is less in computerised accounting.

Manual Accounting

1. In manual accounting financial statements cannot be prepared with such speed and accuracy.
2. Data are stored in a large number of books and retrieval of data is a very tedious job.
3. Coding is not essential.
4. Closing entries are necessary.
5. The possibility of errors is more.

Question 12.
Tally ERP-9 is a/an _______ software. (March 2013)
a) Operating
b) System
c) Application
d) Utility
Answer:
c) Application software

Question 13.
You are given certain components of a computer. Classify them into software and hardware. (March 2013)
a) Keyboard
b) MS-Office
c) Windows
d) Processor
Answer:
Software – MS Office, Windows
Hardware – Keyboard, Processor

Question 14.
A series of operations in a certain specific order to achieve the desired result in data processing is termed as ________ (March 2013)
a) Processor
b) procedure
c) DBMS
d) hardware
Answer:
b) Procedures

Question 15.
“Computerized accounting is more helpful in decision making when compared to manual accounting”. Give any two points favoring this argument. (March 2013)
Answer:
Computerised Accounting

1. In computerised accounting data can be easily processed and statements can be prepared with high speed and accuracy.
2. Mass data can be stored in a very small space and brought back very easily.
3. Coding is essential in computerised accounting.
4. Closing entries are not necessary.
5. The possibility of errors is less in computerised accounting.

Question 16.
VDU stands for ________ (March 2014)
Answer:
Visual Display Unit (VDU)

Question 17.
Which item is different from others? Why? (March 2014)
a) Mouse
b) Printer
c) Scanner
d) Joystick
Answer:
b) Printer – is an output device, others are input devices.

Question 18.
Mention two capabilities of a computer over human beings. (March 2014)
Answer:
The capabilities of a computer system are as follows:

• Speed
• Accuracy
• Storage
• Versatility

Question 19.
Tailored accounting software is usually suitable for a _______ business. (March 2015)
a) small
b) medium
c) large
d) all of these
Answer:
c) Large business

Question 20.
Write any two limitations of a computer. (March 2015)
Answer:

• Lack of common sense
• Computers have no intelligence

Question 21.
Which among the following is NOT true about computers? (March 2015)
a) Computers have no common sense.
b) Computers cannot take decisions on their own.
c) Computers have zero IQ.
d) Computers have no storage capacity.
Answer:
d) Computer have no storage capacity

Question 22.
Computerized accounting has some advantages over manual accounting. List out any four such advantages. (March 2015)
Answer:
Advantages of computerised Accounting

• Speed
• Accuracy
• Efficiency
• Storage and retrieval
• Reliability
• Versatility

Question 23.
Classify the following into input devices and output devices. (March 2015)

1. Optical pen
2. VDU
3. Printer
4. Smart card reader

Answer:

1. Optical pen – Input device
2. VDU – Output device
3. Printer – Output device
4. Smart card reader – Input device

Question 24.
Find out the odd man out. (Say 2015)
a) MICR
b) OCR
c) Optical Scanner
d) VDU
Answer:
d) VDU

Question 25.
State any four elements of a computer system. (Say 2015)
Answer:
Hardware, Software, People, Procedure

Question 26.
Computerized accounting is not free from limitations. What points would you stress on to support this statement? (Say 2015)
Answer:
The following are the limitations of computerised accounting:

• Huge training cost
• System failure
• Staff opposition
• Inability to check unanticipated errors

Question 27.
Which one of the following is NOT an advantage of computerized accounting? (March 2016)
a) Quality report
b) Up to date
c) Accurate
d) Cost of training
Answer:
d) Cost of training

Question 28.
Complete the diagram. (March 2016)

Answer:

Question 29.
Find the pair which is NOT matched. (March 2016)
a) Operating system – System Software
b) Keyboard – Mouse
c) Scanner – Output device
d) Microwave transmission – Satellite link
Answer:
c) Scanner – output device

Question 30.
Computerized accounting has many advantages over manual accounting. (March 2016)

1. List any two advantages of computerized accounting.
2. Write any one condition that must fulfill by an accounting report.
3. The user-oriented programme designed and developed for performing certain specific tasks are called as ________

Answer:

1. High speed, Accuracy is high, efficiency
2. Relevant, timeliness, accuracy, completeness
3. Application software

Question 31.
Give suitable names to the following: (Say 2016)

Answer:

1. Ready-to-use or customized software
2. Tailored

Question 32.
Find the odd one out and justify your answer. (March 2017)
a) Ready-to-use
b) Customized
c) Tailored
d) Database
Answer:
d) Database, others are accounting packages

Question 33.
Complete the following chart. (March 2017)

Answer:

Question 34.
Which of the following is NOT a feature of Ready-to-use accounting software? (March 2017)
a) It is suited to small organizations.
b) Volume of accounting transactions is very low.
c) Cost of installation is high
d) Number of users is limited.
Answer:
c) Cost of installation is high

Question 35.
Classify the following into input devices and output devices. (March 2017)
a) Keyboard
b) Printer
c) Mouse
d) Monitor
Answer:
Input devices – Keyboard, Mouse
Output devices – Printer, Monitor

Question 36.
Give any two limitations of computerized accounting systems. (March 2017)
Answer:

• Huge Training cost
• Staff opposition
• System failure
• Breaches of security

Kerala State Board New Syllabus Plus One Accountancy Chapter Wise Previous Questions and Answers Chapter 9 Accounts from Incomplete Records.

Kerala Plus One Accountancy Chapter Wise Previous Questions and Answers Chapter 9 Accounts from Incomplete Records

Question 1.
Joseph started his textile shop on 1 st January, 2005 with a capital of Rs. 1,00,000. During the year he introduced Rs. 20,000 as additional capital and his withdrawal was of Rs. 1000 per month.
On 31st December, 2005, his position is as follows: Cash in hand Rs. 20,000; Debtors Rs. 75,000; Closing stock Rs. 1,00,000; Building Rs. 50,000; Creditors Rs. 25,000; Bills payable Rs. 20,000. Calculate the profit earned by Joseph in the year 2005. (March 2010)
Answer:
Statement of Affairs as on 31.12.2005

Statement of Profit/Loss

Question 2.
The closing balance of creditors can be ascertained from the ________ (March 2010)
a) Cash account
b) Balance Sheet at the end of the year.
c) Total creditors account
Answer:
c) Total Creditors Account

Question 3.
The amount of credit sale is determined by preparing a total creditors account. (March 2010)
Answer:
False, The amount of credit sale is determined by preparing a total Debtor’s Account.

Question 4.
From the following information find out the credit sales: (March 2010)

Answer:
Total Debtors Account

Question 5.
A retail trader had not kept proper books of account but from the following details, you are required to ascertain the profit or loss for the year ended 30th June, 2009 and also to prepare a statement of affairs as on that date. (March 2010)

The drawings during the year amounted to Rs. 2,600. Depreciate furniture by 10% and write off Rs. 300 on motor van. As regards to the debtors, it is ascertained that Rs. 500 are irrecoverable and create a further reserve of 5% for bad and doubtful debts. Also create a reserve of Rs. 700 with respect to bills receivable. (March 2010)
Answer:
Statement of Affairs as on 1/7/2008 & 30/6/2009

Statement of Profit or Loss for the year ended 30/6/2009

Question 6.
Ascertain the credit sales and purchase from the following figures: (March 2011)

Answer:
Total Debtors A/c

Total Creditors A/c

Question 7.
Statement of affairs is prepared to find out the ________ (March 2011)
a) assets and liabilities
b) capital
c) purchases and sales
Answer:
a) Assets and liabilities OR b) capital

Question 8.
Pooja started her business with Rs. 75,000 and she further introduced Rs. 10,000 while she withdrew Rs. 23,000 for her personal use. The capital at present will be Rs. _______ (March 2011)
Answer:
Rs. 62,000 ie (75,000 + 10,000 – 23,000)

Question 9.
Mr. Kumar commenced business on 1-1-2009 with a capital of Rs. 30,000. On the same day, he bought furniture for Rs. 6,000. During the year, he borrowed Rs. 5,000 from his father for business purposes and introduced further capital of Rs. 3,000. He had withdrawn Rs. 300 at the end of every month for domestic use. From the following particulars obtained from his books, prepare the Trading and Profit & Loss account for the year ending 31-12-2009 and the Balance Sheet on that date. (March 2011)

Mr. Kumar has used goods worth Rs. 1,400 for his private purpose and paid Rs. 1,000 to his son, but not recorded it in the books. On 31-12-2009, his debtors were Rs. 19,000 and creditors were Rs. 16,000. Stock on that date was valued at Rs. 8,000. Furniture is to be depreciated at 15% p.a.
Answer:
Total Debtors A/c

Total Creditors A/c

Cash Account

Trading and Profit & Loss A/c for the year ended 31-12-2009

Balance Sheet as on 31/12/2009

Question 10.
From the following information, find out: (March 2012)
a) Credit purchase by preparing the total Creditors A/c.
b) Total purchase.

Answer:
Total Creditors A/c

Bill Payable A/c

Total purchase = Cash Purchases + Credit Purchases
= 37,000 + 1,25,000
= 1,62,000

Question 11.
If stock at the beginning or at the end is missing, the same can be ascertained with the help of _________ (March 2012)
a) debtors account
b) creditors account
c) statement of affairs
d) Memorandum of Trading Account
Answer:
c) Statement of affairs
or
d) Memorandum of Trading Account

Question 12.
Mr. Sumesh is a retailer whose records are incomplete. You are required to ascertain his profit or loss for the year ended 31S1 December 2011 from the following details. (March 2012)

Answer:
Statement of Profit or Loss for the year ended 31-12-2011

Question 13.
From the following particulars prepare: (Say 2012)
A) Total debtors account and find out credit sales.
B) Total creditors account and find out credit purchases.
C) Bills receivable account.
D) Bills payable account.

Transactions during the year
Cash received from Debtors ₹ 28000, Cash received against bills receivables ₹ 9,000.
Cash paid to suppliers ₹ 13000, Cash sales ₹ 18000, Cash purchases ₹ 12000.
Cash paid against bills payable ₹ 3150, Discount allowed to debtors ₹ 3500, Bad debts are written off ₹ 1,750.
Return inwards ₹ 3250, Discount received from suppliers ₹ 3150, Return outwards ₹ 1,900, Bills payable dishonoured ₹ 750.
Answer:
Total Debtors a/c

Bill Receivable A/c

Total Creditors A/c

Bill Payable A/c

Question 14.
Calculate the Capital at the beginning. (Say 2012)

Answer:
Capital at the beginning = (75,000 + 12,000) – 20,000 = 67,000/-

Question 15.
Mr. Kiran, a sole trader does not keep full records of books of accounts. However, the following information is available. You are required to calculate Credit Sales and Credit Purchases by preparing the Total Debtors Account and Total Creditors Account. Also, show the Bills Receivable A/c and Bills Payable A/c. (Say 2012)
Balance on 1st January 2010

Balance on 31st December, 2010

Answer:
Bills Receivable A/c

Total Debtors A/c

Bills Payable A/c

Total Creditors A/c

Question 16.
Ascertain the amount of total credit purchases from the following. (March 2013)

Answer:
Total Creditors A/c

Question 17.
Mr. Sankaran commenced business on 1st April 2011 with cash Rs. 20,000, furniture Rs. 10,000 and machinery Rs. 50,000. On 1st January 2011, he introduced Rs. 20,000 into the business. He withdrew @ Rs. 1,000 per month. His financial position as of 31.3.2012 was as follows. Ascertain the profit for the year ending 31.3.2012. (March 2013)
Assets: Stock Rs. 25,000; sundry debtors Rs. 20000; mahcinery Rs.44,000; cash at bank Rs. 20,000; cash in hand Rs. 10,000; bills receivable Rs. 8,000 and furniture Rs. 9,500.
Liabilities: Sundry creditors Rs. 12,500; loan from bank Rs. 20,000; bills payable Rs. 5000.
Answer:
Statement of Affairs as on 01/04/2011 and 31/3/2012.

Statement of Profit and Loss for the year ended 31.3.2012

Question 18.
Prasad kept his books under the single entry system. His position as on 31-12-2012 was as follows. (March 2013)

His capital account shows a credit balance of Rs. 54,000 as on 01-01-2012. He introduced an additional capital of Rs. 5,000 during the financial year. He withdrew Rs. 10,000 for personal purposes. As certain his profit for the year ended 31-12-2012.
Answer:
Statement of Affairs as on 31 -12-2012

Statement of Profit or Loss for the year ended 31/12/2012

Question 19.
If the opening capital is less than the closing capital, provided there are no adjustment, the result is _________ (March 2014)
a) a profit
b) a loss
c) drawings
d) expenses
Answer:
a) Profit

Question 20.
From the following information, find the amount of credit purchase. (March 2014)

Answer:
Total Creditors A/c

Question 21.
The profit or loss under the single entry system is found by/on _______ basis. (March 2014)
a) An estimate
b) Drawing the profit and loss account
c) Drawing the balance sheet
d) the double-entry system
Answer:
a) An estimate

Question 22.
Jaya brothers ¡s a sole trader who invested Rs. 10,000 on 01 .01 .2012 in his business and the same was found at Rs. 18000 at the end of the accounting year. He also withdrew Rs. 6,000 for his private use. Ascertain his profit for the year. (March 2014)
Answer:
Statement of profit/loss for the year ended _______

Question 23.
Mr. John, who does not follow the double-entry system gives you the following details for the period ended 31.12.2012. (March 2014)

Other information:
a) Depreciate plant by 10%.
b) Salary outstanding Rs. 1000.
You are asked to prepare the Profit and Loss Account and the Balance Sheet as of 31.12.2012.
Answer:
Statement of Affairs as on 01.01.2012

Cash Book

Total Debtors A/c

Total Creditors A/c

Trading and Profit & Loss A/c for the year ended 31.12.2012

Balance Sheet as on 31.12.12

Question 24.
From the given information find the following: (March 2015)
a) Credit sales by preparing the total Debtors account
b) Ascertain the total sales.

Answer:
Total Debtors Account

b) Total Sales = Cash sales + Credit sales
= 25,000 + 22,900
= 47,900

Question 25.
Mr. Thomas keeps his books under the single entry system. On 1 st April 2013, his records indicated the following assets and liabilities. (March 2015)

During the year, he introduced Rs. 15000 as further capital and withdrew Rs. 400 every month. Calculate the profit or loss made by him during the year by using the statement of affairs method.
Answer:
Statement of Affairs as of 1/04/2013 & 31/03/2014

Statement of Profit or Loss for the year ended 31/3/2014

Question 26.
Ascertain the profit from the following: (March 2015)

Answer:
Statement of profit/loss

Question 27.
Credit purchases are calculated by preparing ________ (March 2015)
a) Total Debtors account
b) Total Creditors account
c) Bills Receivable account
d) Bills Payable account
Answer:
b) Total Creditors Account

Question 28.
Which of the following cannot be a posting on the credit side of the debtor’s account? (Say 2015)
a) Discount allowed
b) Bad debts
c) Credit sales
d) Cash received
Answer:
c) Credit sales

Question 29.
Abu does not follow any perfect system of accounting. He gives you the following information. (Say 2015)

a) Ascertain the net profit
b) What method have you employed for profit computation?
Answer:
a) Statement of Profit or Loss

b) Single entry system

Question 30.
The following information was extracted from the book of Mr. Raveendran, who maintains a single entry system, for the year ending 31st December 2015. (March 2016)

a) Calculate total purchase made by Mr. Raveendran during the year 31st December 2015.
b) While preparing the final account, from where did he get the value of opening capital and expenses made during the year?
Answer:
a) Total creditors A/c

Total purchase = 75,000 + 12,000 = 1,87,000
b) i) Opening capital is calculated by preparing statement of affairs.
ii) Expensens from cash book or cash summary.

Question 31.
Consider the following information from the books of Mr. Sidique. (March 2016)
a) Profit for the year Rs.60,000
b) Additional capital introduced by him Rs. 50,000
c) Drawings by him this year Rs. 30,000
d) Capital at the end of the year Rs. 2,00,000
Find the capital contributed by him at the beginning of the year.
Answer:

Question 32.
Find the capital at the beginning, from the following information. (Say 2016)

Answer:
Capital at the beginning = Capital at the end + Drawings + Loss during the year – Additional capital
= 1,56,000 + 14,000 + 20,000 – 40,000
= 1,50,000

Question 33.
Vimal started a business on 1st January 2014 with an investment of Rs. 1,60,000. He does not maintain proper books of accounts for his business. During the year 2014, he withdrew Rs. 20,000 for personal use and introduced Rs. 10,000 as fresh capital. His position of assets and liabilities as of 31st December 2014 stood as follows. (March 2017)

Prepare a statement of Profit or Loss for the year ended 31st December. 2014, provided that depreciation on furniture is to be charged at 10%.
Answer:
Statement of Affairs as on 31/12/2014

Statement of profit or loss for the year ended 31/12/14

Kerala State Board New Syllabus Plus One Accountancy Chapter Wise Previous Questions and Answers Chapter 7 Bill of Exchange.

Kerala Plus One Accountancy Chapter Wise Previous Questions and Answers Chapter 7 Bill of Exchange

Question 1.
Bills received from debtors during the year can be obtained from the _______ account. (March 2010)
Answer:
Bill Receivable a/c / Total Debtors a/c

Question 2.
There are only two parties in case of a Bill of Exchange. (March 2010)
Answer:
False. Three parties

Question 3.
On 15th June, 2009, Naveen sold goods to Preman valued at Rs. 20,000. He drew a bill at 3 months for the amount and discounted the same with his bankers at Rs. 19,600. On the due date, the bill was dishonoured and Naveen paid the bank the amount due plus the noting charge of Rs. 100. Pass entries in the books of Naveen. (March 2010)
Answer:
In the books of Naveen

Question 4.
A bill of exchange is a _______ instrument. (March 2010)
Answer:
Negotiable/credit/creditorship instrument

Question 5.
On 1st May, 2007, Rolex Traders sold goods to AB & Company for Rs. 5,000 and drew them a bill of three months for the amount. AB & Co. accepted it and returned to Rolex Traders.
On the due date, AB & Co. expressed their inability to meet the bill and offered Rs. 3,000 in cash and a new bill for the balance with interest of Rs. 200 for 3 months. On maturity, the bill was duly met by AB & Co. Pass the entries in the books of Rolex Traders. (March 2010)
Answer:
Journal Entries in the books of Rolex Traders

Question 6.
A bill is drawn on 20th January 2005, payable after two months. The bill becomes due on _______ (March 2011)
a) 20th March 2005
b) 23rd March 2005
c) 23rd February 2005
d) 20th February 2005
Answer:
b) 23rd March 2005

Question 7.
A bil of exchange is a _______ instrument. (March 2011)
Answer:
Negotiable Instrument

Question 8.
On 1st January, 2000, P sold goods to Q for Rs. 5,000 and drew a bill on him for 3 months. Q accepted the bill and returned it to P. On the same day, P discounted the bill with his bank at 10% per annum. On the due date, the bill was dishonoured and the bankers paid noting charge of Rs. 100. Show the necessary journal entries in the books of P. (March 2011)
Answer:
Journal (In the book of P)

Question 9.
Signing on the back of the instrument for negotiation is called ________ (March 2011)
a) accepting
b) endorsement
c) noting
Answer:
b) Endorsement

Question 10.
Mrs. Latha sold goods for Rs. 5,000 to Mrs. Sheena on 1-1-2010 and drew a bill for 3 months. The latter accepted the same and retired her acceptance after one month at a rebate of 10%. Journalize the transactions in the books of Mrs. Latha and Mrs. Sheena. (March 2011)
Answer:
Journal (In the book of Mrs. Latha)

Journal (In the book of Mrs. Sheena)

Question 11.
When discounted bills of exchange are dishonoured, the amount of the bill is debited in the ______ account and credited in the account in the ________ books of the drawee. (March 2012)
a) debtors, bank
b) debtors, bills receivable
c) bills payable, creditors
d) debtors, creditors
Answer:
c) Bills payable, Creditors

Question 12.
On 1st January, 2010, Raju sold goods to Ravi on credit for Rs.4,000. Raju drew a bill for the same amount for three months and got it accepted by Ravi. On the same date, this bill was discounted with the bank @ 12% p.a. On the due date, the bill was met. Pass the necessary journal entry in the books of Raju. (March 2012)
Answer:
Journal (in the book of Raju)

Question 13.
A bill of exchange is drawn on 29th January, 2012 made payable after ‘2’ months. Calculate the due date of the bill. (March 2012)
Answer:
31-03-2012 or 1-4-2012

Question 14.
A) On 1st July, 2011, Mrs. Kavitha sold goods to Mrs.Molly for Rs. 10,000 and drew two months bill for that amount which was duly accepted. On 5th July, 2011, Mrs. Kavitha discounted the same with the bank for Rs. 8,500. On the due date, the bill was dishonoured and noting charges of Rs. 150 was paid by the bank. Show the journal entries in the books of both the parties.
B) Draw a specimen of the Bill of Exchange and explain any four essential features of it. (March 2012)
Answer:
A) In the book of Mrs. Kavitha

In the book of Molly

B)

The document is a Bill of Exchange.
Features:

• It contains an order to pay money.
• The order should be unconditional.
• The drawer must sign the bill.
• The drawee must be a certain person.
• The order must be for the payment of money only.
• It should be properly stamped.

Question 15.
A bill is noted when it is _______ (Say 2012)
a) Dishonoured
b) Honoured
c) Discounted
d) None of these
Answer:
a) dishonoured

Question 16.
If the acceptor makes payment of the bill before maturity, it is called renewal of a bill. (Say 2012)
Answer:
False. If the acceptor makes payment of the bill before maturity, it is called retiring of the bill.

Question 17.
On 1st January 2005, Ram received from Hari three acceptance for ₹ 5,000, ₹ 8,000, and ₹ 10,000 for two months.
The first bill of ₹ 5,000 was endorsed to Mohan. The second bill of ₹ 8,000 was held till the due date, the third bill of ₹ 10,000 was discounted for a discount of Rs. 100. The maturity date of all the three bills was dishonoured. Give journal entries in the books of Ram, noting charge ₹ 200 for each bill. (Say 2012)
Answer:
Journal (in the book of Ram)

Question 18.
Ram sold goods for Rs. 2,000 to Krishna on 10th January, 2010 and he drew a 10 days bill for the same amount. The due date of the bill is: (Say 2012)
a) 10th January, 2010
b) 23rd January, 2010
c) 20th January, 2010
Answer:
b) 23rd January, 2010.

Question 19.
From the given specimen of bill of exchange, identify: (Say 2012)
(i) Drawer
(ii) Drawee
(iii) Due Date
(iv) Amount of the bill.

Answer:
i) Drawer – George Kurian
ii) Drawee – Robert Mathew
iii) Due Date-15th April 2011
iv) Amount of the bill – Rs. 2500/-

Question 20.
Mr. Akhil sold goods to Mr. Sunil and received a two months bill of exchange for Rs. 5,000. On the due date Mr. Sunil failed to pay the amount of the bill. Pass dishonour entries in the books of Akhil in the following circumstances.
i) If Akhil retains the bill with him.
ii) If he discounted the bill through the bank for Rs. 4,800. (Say 2012)
Answer:

Question 21.
Making payment of the bill of exchange before the due date is called _________ (March 2013)
a) Renewal of the bill
b) Retiring of the bill
c) Discounting of the bill
d) Dishonour of the bill
Answer:
b) Retiring of the bill

Question 22.
On 1st January, 2012 Suresh accepted the 2 monthly bill drawn by Sudhi for Rs. 10,000. On 15th January, Sudhi discounted the bill with his banker @ 10%. On the due date, the bill was dishonoured. Give journal entries in the books of Suresh and Sudhi. (March 2013)
Answer:
Journal (in the book of Sudhi)

Journal (in the book of Suresh)

Question 23.
A bill dated August 1, 2012 is payable 2 months after date. If the due date is a public holiday, what will be the date of maturity of the bill? (March 2013)
Answer:
3rd October 2012. (If the due date falls on holiday, the due date will be the previous day.)

Question 24.
On 1st January, 2012, Rajan sold goods to Suresh for Rs. 25,000 and drew upon him a Bill of exchange for 2 months. Suresh accepted the bill and returned it to Rajan. He then endorsed the bill to Manoj, who discounted the bill with the bank on 15-01-2012 for cash Rs. 24,750. The bill was dishonoured on the due date. Show the journal entries in the books of Rajan and Suresh. (March 2013)
Answer:
Journal (In the Book of Rajan)

Journal (In the Book of Suresh)

Question 25.
A bill of exchange is drawn on _______ (March 2014)
a) debtors
b) Creditors
c) banks
d) None of these
Answer:
a) Debtors

Question 26.
Calculate the due date of the bills in the following cases. (March 2014)
a) Bill drawn on July 1, 2013 for 2 months.
b) Bill drawn on June 30, 2013 for 30 days.
Answer:
a) 4th September, 2013
b) 2nd August, 2013

Question 27.
The drawer of a bill of exchange is always the ________ (March 2014)
a) Debtor
b) endorser
c) Creditor
d) Proprietor
Answer:
c) Creditor

Question 28.
On 01.01.2013, A sold goods to B for Rs. 2000 and on the same day, Adrew upon B a bill of Rs. 2000 for three months. On 06.01.2013, the bill has been discounted and received Rs. 1,800. On the due date, the bill has been dishonored.
Draw up the journal in the drawer’s books. What would the entry have been had the banker spent Rs. 100 for noting the bill? (March 2014)
Answer:
Journal (in the book of ‘A’)

Question 29.
On 1st June 2013, Sujith accepted three months bill drawn by Sooraj for Rs. 5000. on 5th June, Sooraj discounted the bill with his banker @ 12%. The bill was dishonoured on the due date. (March 2015)
a) Calculate the amount of discount.
b) Identify the drawer and drawee in the above bill transaction.
c) Record the necessary journal entries in the books of the drawee and the drawer.
Answer:
a) Amount of discount = \(5000 \times \frac{12}{100} \times \frac{3}{12}\) = 150
b) Drawer is Sooraj
Drawee is Sujith
c) Journal Entries In the Books of Sooraj

Journal Entries In the Books of Sujith

Question 30.
Ali purchased goods for Rs. 30,000 from Stephen on 1st January 2015. A bill was drawn for three months which was accepted by the drawee and returned to Stephen. On the same day, the bill was discounted with the bank @12%. Pass the entries in the books of the drawer and drawee. (March 2015)
Answer:
Journal Entries (In the book of Stephen)

Journal Entries (In the book of Ali)

Question 31.
Record the following bill transactions druing the month fo March 2014 in the books of drawer and drawee. (Say 2015)

1-3-2012 Anu purchased goods from Sasi for Rs.51,000
1-0-2012 A bill was drawn and accepted fa the above amount
4-3-2012The bill was endorsed to Mrs. Thomas On the due date the bill is honoured.
Answer:
Journal (In the book of Sasi)

Journal (In the book of Anu)

Question 32.
A specimen of a document used in a business is given below. (March 2016)

a) Identify the given document.
b) Write any two difference of the above document with Bill of Exchange.
Answer:
a) Promissory note
b) i) Bill of exchange is drawn by the creditor. But the promissory note is drawn by the debtor.
ii) Bill of exchange contains an order to make payment. But promissory note contains a promise to make payment.

Question 33.
Sajan sold goods for Rs. 8,000 to Roshan on 9th October, 2013 and drew upon him a bill of exchange payable after 2 months. Roshan accepted the bill and returned it to Sajan. Roshan met the bill on maturity date. Pass the journal entries in the books of Sajan under the following situations. (March 2016)
a) Sajan retained the bill till maturity.
b) Sajan discounted the bill with his bank @ 12% p.a. on 9th November, 2013.
Answer:
a) Sajan retained the bill till maturity
Journal (In the book of Sajan)

b) Journal (In the book of Sajan)

Question 34.
When the drawee of the bill of exchange makes the payment before the maturity date of bill it is called _________ (March 2016)
a) dishonour bill
b) discounting of bill
c) retiring of bill
d) renewal of bill
Answer:
c) Retiring of bill

Question 35.
Arun sold goods on credit for Rs. 1,000 to Amal. (March 2016)
a) Who is the debtor in this transaction?
b) Write journal entry on this transaction.
Answer:
a) Amal
b) Amal A/c Dr – 1000
To sales – 1000

Question 36.
On 1st January, 2015 Arya sold goods to Adwaith for Rs. 10,000 and drew a bill of exchange for 3 months. Adwaith accepted the bill.
On 7th February, 2015 Arya discounted the bill with her bank for Rs. 9,800. But on the date of maturity of the bill, Adwaith was unable to make the payment. Pass the journal entries in the books of Arya. (March 2016)
Answer:
Journal Entries in the book of Arya

Question 37.
On 01/01/2015 Sachin sold goods worth Rs.17,000 to Mr. Anand. Anand paid rs.7,000 immediately and for the balance, Sachin drew a bill on Anand payable after three months, which was duly accepted. Sachin discounted the bill with the bank for Rs.9,500. On the due date the bill was dishonored. Pass the entries in the books of Sachin. (Say 2016)
Answer:
Journal entries in the book of Sachin

Question 38.
Anu draws a bill on Achu for Rs.3,000 on 1 st January, 2015 payable after 3 months. Achu accepted and returned the bill to Anu. The bill is discounted by Anu on the same day. (March 2017)
a) Calculate the amount of discount in the following cases.
The bill is discounted for Rs. 2900
The bill is discounted @ 12% p.a.
b) Ascertain the maturity date of the above bill.
Answer:
a) i – Rs. 100
ii – \(3000 \times \frac{12}{100} \times \frac{3}{12}\) = Rs. 90
b) Date of Maturity = April 4th, 2015

Question 39.
Rajeev drew a bill of Rs. 1,20,000 on Sajeev on 1st February, 2015 for 3 months. Immediately after acceptance, Rajeev endorsed the bill to Soman. The bill was met on maturity. Make journal entries in the books of all the parties. (March 2017)
Answer:
Journal Entries (In the book of Rajeev)

Journal Entries (In the book of Sajeev)

Journal Entries (In the book of Soman)

Question 40.
On 1st January, 2016 Arun drew a 3 months bill upon Varun for Rs. 6000. On 3rd January, 2016 Arun discounted the bill with his banker @ 6% per annum. The bill was honoured on the due date. (March 2017)
a) Identify the drawer in the above bill.
b) Record the necessary journal entries in the books of Arun and Varun.
Answer:
a) Drawer – Arun
b) Journal Entries in the book of Arun

Journal Entries in the book of Varun

Kerala State Board New Syllabus Plus One Accountancy Chapter Wise Previous Questions and Answers Chapter 6 Depreciation, Provisions and Reserves.

Kerala Plus One Accountancy Chapter Wise Previous Questions and Answers Chapter 6 Depreciation, Provisions and Reserves

Question 1.
Depreciation of a fixed asset is an example of ________ (March 2010)
a) revenue expenditure
b) capital expenditure
c) deferred revenue expenditure
d) None of these
Answer:
a) Revenue expenditure

Question 2.
Under the ______ method, depreciation remains the same from year to year. (March 2010)
Answer:
Straight-line method

Question 3.
Fixed instalment method is also called _________ (March 2010)
a) Straight-line method
b) Re-evaluation method
c) Depletion method
d) None of these
Answer:
a) Straight-line method

Question 4.
Depletion method of depreciation is used for _________ (March 2010)
a) cattle, loose tools, etc.
b) mines, quarries, etc.
c) machinery, building, etc.
Answer:
b) mines, quarries, etc.

Question 5.
Under the ______ method, depreciation goes on reducing from year to year. (March 2010)
Answer:
Reducing Balance/Diminishing/Written down value method

Question 6.
A firm purchased machinery for ₹ 58,200 on 1st January 1984 and spent ₹ 1,800 on its erection. On 1st July 1984, additional machinery costing ₹ 20,000 were purchased. On 1st July 1986, the machinery purchased on 1st January 1984 was sold for ₹ 28,600. Provide depreciation at the rate of 10% on the written down value. Give the machinery account for 1984 to 1986. (March 2010)
Answer:
Machinery A/c

Question 7.
Reserves can be classified into _______ reserves and revenue reserves. (March 2011)
a) revenue
b) asset
c) capital
d) liability
Answer:
c) Capital Reserve

Question 8.
Under the _____ method, depreciation goes on decreasing from year to year. (March 2011)
Answer:
Diminishing balance/Reducing balance/written down value method

Question 9.
While calculating depreciation, _______ is deducted from the total cost. (March 2011)
Answer:
a) additional purchases of assets
b) scrap value
c) provision for depreciation
Answer:
b) Scrap value

Question 10.
Reserve is a _______ of profit. (March 2011)
Answer:
Appropriation/Adjustment of profit

Question 11.
Machinery was purchased for ₹ 10,000 and ₹ 1,000 spent on its installation. The market value of the machinery is ₹ 15,000. The cost that should be recorded is ₹ _________ (March 2011)
Answer:
₹ 11,000

Question 12.
A firm purchased machinery for ₹ 5,00,000 by cash on 1st January 2001. Depreciation is charged at 10% of the original cost and depreciation transferred to the Depreciation Provision account On 1st January 2003, the machinery was sold for ₹ 3,75,000. Show the Machinery account, Accumulated Provision for Depreciation account, and Machinery Disposal account. (March 2011)
Answer:
Machinery A/c

Accumulated Depreciation A/c

Machinery Disposal A/c

Question 13.
Profit on sale of machinery is __________ (March 2012)
a) capital profit
b) revenue profit
c) deferred revenue expenditure
d) capital reserve
Answer:
a) Capital profit

Question 14.
The amount of depreciation should be accurately estimated and accounted for _________ (March 2012)
a) to present a true Balance Sheet
b) to avoid excess payment of Income Tax
c) to fulfill legal requirements
d) All of these
Answer:
d) All of these

Question 15.
A company purchased machinery costing ₹ 1,25,000 on 1st January 2008 and spent ₹ 25,000 on its erection. On 1st July 2009, additional machinery was purchased for the value of ₹ 60,000. The company decided to write off depreciation at 10% p.a. Prepare the machinery account for the first 4 years under the diminishing balance method. (March 2012)
Answer:
Machinery A/c

Question 16.
Under the diminishing balance method, depreciation provided in the initial years will be higher. True/False. (September 2012)
Answer:
True

Question 17.
On 1 st January 2005 a limited company purchased machinery for ₹ 12,000, and on 30th June 2006, it acquired additional machinery at a cost of ₹ 2,000. On 31st March 2007, one of the original machines which had cost ₹ 500 was found to have become obsolete and was sold as scrap for ₹ 50. It was replaced on that date by a new machine costing Rs. 800. Depreciation is to be provided @ 15% p.a. on the written down value. Show the Machinery A/c for the first 3 years. (September 2012)
Answer:
Machinery A/c

Question 18.
On 1 st October 2000 a firm purchased machinery for ₹ 40,000. Depreciation was provided at 10% per annum on the straight-line method and accounts were closed on 31 st December every year. With effect from 1st January 2002, the firm decided to change the method of depreciation to diminishing balance method @ 15% p.a. On 1st October 2003, the machinery was sold for ₹ 26,000. Prepare Machinery Account from 2000 to 2003. (September 2012)
Answer:
Machinery A/c

Question 19.
Granite quarry is an example of ________ assets. (March 2013)
a) Intangible
b) Wasting
c) Fictitious
d) Tangible
Answer:
b) Wasting

Question 20.
A company bought machinery at a cost of ₹ 8200 and spent ₹ 800 on erection charges. It is estimated that its working life is 4 years and the value of scrap is ₹ 1000. Calculate the amount of annual depreciation. (March 2013)
Answer:
Depreciation = \(\frac{(8200+800)-1000}{4}\) = 2000

Question 21.
On 1st January 2001, Saraswathy Traders purchased a machine at a cost of ₹ 46,000. The erection charges of ₹ 4,000 were paid separately. It was decided to charge depreciation @ 10% on a straight line. On 30th June 2005, the machinery was sold for ₹ 30,000. Write up the machinery account. (March 2013)
Answer:
Machinery A/c

Note: Selling price = 30000
Value of machinery on the date of sale = (30000 – 2500) = 27500
Profit on sale of machinery = 2500

Question 22.
Star Ltd. purchased machinery for ₹ 2,90,000 and spent ₹ 10,000 on its installation on 1st April 2008. After using it for 3 years, it was sold for ₹ 2,00,000 on March 31, 2011. Depreciation is to be provided at 10% on the fixed installment method.
a) Pass a journal entry for recording the purchase of machinery.
b) Find the amount of profit/loss on the sale of machinery assuming that the accounting year closes on 31 st March every year. (March 2013)
Answer:

Question 23.
Erection charges of machinery are debited to the _______ (March 2014)
a) Profit and Loss A/c
b) Sundry Expenses A/c
c) Machinery A/c
d) Trading account
Answer:
c) Machinery a/c

Question 24.
Introduction of the latest technologies may be one of the causes for _______ (March 2014)
a) depletion
b) amortization
c) appreciation
d) depreciation
Answer:
Obsolescence

Question 25.
Mr.Noel, a sole trader bought a building for ₹ 1,00,000 on 01.01.2009. Further, he constructed another building which was completed on 01.01.2010. He spent ₹ 2,00,000 for this. Depreciation was charged at the end of every year on 31 st December on the diminishing balance method @ 10%. Draw the building account till 2012. (March 2014)
Answer:
Building A/c

Question 26.
Mahesh Enterprises purchased machinery for ₹ 1,00,000 on 1 st January 2007. Depreciation is to be charged @ 10% per annum under the diminishing balance method. On 1st July 2010, the machinery was sold for ₹ 52,000. Show the machinery account. (March 2014)
Answer:
Machinery A/c

Question 27.
John and Co. purchased machinery for ₹ 42,000 on 1.1.2010. The estimated life of machinery is 10 years and its scrap value is ₹ 2,000. On 1.7.2012, the machinery was sold for ₹ 38,000.
Depreciation is charged under the straight-line method. (March 2015)
a) Calculate the actual amount of depreciation.
b) Prepare the Machinery account from 2010 to 2012.
Answer:
a) Depreciation = \(\frac{42000-2000}{10}\) = 4000
b) Machinery A/c

Note:
Proft on sale of machinery Cost of machinery as on 1/7/12
(34000 – 2000) = 32,000
The selling price of machinery = 38,000
Proft on Sale = 6,000

Question 28.
On 1st July 2012, a firm purchased a plant worth ₹ 40,000. The firm writes-off depreciation @ 10% on the original cost. The accounts are closed on 31st December every year. If the plant is sold for ₹ 35,000 on 1st July 2013, prepare the Plant account upto this date. (March 2015)
Answer:
Plant Account

Note:
Loss on Sale of plant
Value of plant as on 30/6/2013 = 38000 – 2000 = 36000
Selling Price = 35000
Loss on sale = 1000 (35000 – 36000)

Question 29.
Given below is the transaction relating to the purchase and sale of vehicles by the tour operators for the purpose. 01-01-2010 Purchase of vehicles ₹ 2,00,000. The firm has employed a written down value method for calculating depreciation. The rate being 10% and the accounting year ends on 31st December every year. Prepare vehicles to account for three years. (September 2015)
Answer:
Vehicle A/c

Question 30.
Kannan and Sons acquired a machine for ₹ 1,80,000 on 10th October 2012, and spend ₹ 20,000 on its installation. The firm write-off depreciation at the rate of 10% p.a. on original cost every year. Draw up machinery account for the first 3 years given that the books of accounts close on March 31st, every year. (March 2016)
Answer:
Machinery A/c

Question 31.
SK associates purchased secondhand machinery on 1st October 2009 for ₹ 60,000 and spent ₹ 10,000 for its repairs. They also spent ₹ 5,000 on its installation. Another machinery was purchased for ₹ 20,000 on 1st April 2010. Depreciation is charged @ 10% on a written down value basis.
a) Prepare Machine A/c upto 31st March 2012 assuming the accounts are closed on 31st March every year.
b) Find the profit if the machinery purchased on 1st October 2009 were sold on 31st March 2011 for ₹ 68,000. (March 2016)
Answer:

b) Cost of machinery (Purchased on 1/10/09) = 75,000
Less depreciation (3750 + 7125) = 10875
Valueof machinery on 31/11/11 = 64125
Sales value of machinery = 68,000
Profit on sale of machinery = +3875

Question 32.
A company purchased machinery costing ₹ 90,000 on 01/01/2015. On 01/07/2015 another machinery was purchased for ₹ 95,000. The installation cost was ₹ 5,000. Provide depreciation at the rate of 10% per annum. Show the machinery account for the year 2015. Assume that book is closed on 31/12/2015. (September 2016)
Answer:
Machine A/c

Question 33.
Machinery was purchased by Kefcon Ltd., for ₹ 5,00,000 on 1st April 2011. It purchased additional machinery for ₹ 2,00,000 on 30th September 2012. The machinery purchased on 1 st April 2011 was sold for ₹ 3,70,000 on 30th June 2013. Depreciation is to be charged at 10% p.a. under the straight-line method. (March 2017)
a) Prepare machinery account upto 31 st December 2013 books are closed on 31st December each year.
b) Make correct pairs form the following on the basis of the hint given.
(Hint: Current Assets: Fluctuation)
i) Depreciation
ii) Depletion
iii) Wasting Assets
iv) Fixed Assets
Answer:
Machinery A/c

b) Depreciation – Fixed Assets
Depletion – Wasting Assets

Question 34.
Writing off the cost of intangible assets is termed as _______ (March 2017)
a) depreciation
b) depletion
c) amortization
d) obsolescence
Answer:
c) amortization

Question 35.
a) Mention the name of the reserve that is created out of revenue profits.
b) How does it differ from capital reserve? (March 2017)
Answer:
a) Revenue Reserve/General Reserve
b) Difference between Revenue Reserve and Capital Reserve

Kerala State Board New Syllabus Plus One Accountancy Chapter Wise Previous Questions and Answers Chapter 5 Trial Balance and Rectification of Errors.

Kerala Plus One Accountancy Chapter Wise Previous Questions and Answers Chapter 5 Trial Balance and Rectification of Errors

Question 1.
Which of the following errors does not affect the trial balance? (March 2010)
a) Wrong balancing
b) Wrong totaling
c) Writing an amount in the wrong account, but on the correct side.
d) None of these
Answer:
c) Writing an amount in the wrong account, but on the correct side.

Question 2.
The statement containing various ledger balances on a particular date is known as _______ (March 2010)
Answer:
Trial Balance

Question 3.
Sales to Roy worth Rs. 336 posted to his account as Rs. 363 would affect ________ (March 2010)
a) Sales account
b) Roy’s account
c) Cash account
Answer:
b) Roy’s Account

Question 4.
State whether the following is “true” or “false”. If false, correct the same. (March 2010)
All errors affect the agreement of the Trial Balance.
Answer:
False, All errors do not affect the agreement of the trial balance.

Question 5.
On verification, the following errors are found in the books of Ajith. Help him to rectify the errors. (March 2010)
a) Purchase returns for Rs. 10,000 were entered in the Purchase book.
b) Repairs of motor lorry worth Rs. 2,500 has been debited to the Motor Lorry account.
c) Salary paid to Mujeeb Rs. 10,000 was debited to his personal account.
d) A credit sale of Rs. 15,000 to Ashraf has been wrongly passed through the Purchase book.
Answer:

Question 6.
Installation charge of machinery is debited to _______ (March 2011)
a) Profit and Loss account
b) Income and Expenditure account
c) Machinery account
d) Purchase account
Answer:
c) Machinery account

Question 7.
A sale of old machinery is credited to the sales account. It is an error of ________ (March 2011)
а) principle
b) omission
c) commission
d) None of these
Answer:
a) principle

Question 8.
_______ helps in verifying the correctness of the books of accounts. (March 2011)
Answer:
Trial Balance

Question 9.
Purchase of furniture debited to the sales account is an error of ________ (March 2011)
a) principle
b) commission
c) omission
Answer:
a) Error of Principle

Question 10.
State whether the following is “true” or “false”. If false, correct the same. (March 2011)
If the sale of furniture for Rs. 10,000 to ‘B’ is debited to the sales account, it will not affect the agreement of Trial Balance.
Answer:
False, It will affect the agreement of Trial Balance

Question 11.
State whether the following is “true” or “false”. If false, correct the same. (March 2011)
Tallying of Trial Balance is conclusive proof of the accuracy of the books of account.
Answer:
False, Tailing of Trial Balance is not proof of the accuracy of the books of accounts because there can be errors which do not affect the equality of debits and credits.

Question 12.
The following errors have been discovered in the books of a firm. You are required to rectify these errors. (March 2011)
a) Rs. 5,000 received on the sale of machinery had been credited to the Sales account.
b) A purchase of goods from T. Rajan for Rs. 2,500 had been credited to the account of B. Rajan.
c) Rs. 1,000 drawn by the proprietor for his personal use has been shown as Trade Expenses.
d) Rs. 500 spent for repairs of machinery was debited to the Machinery account.
e) A credit sale of goods worth Rs. 2,400 to Anand has been wrongly passed through the Purchase book.
Answer:
Journal

Question 13.
The following errors are found in the book of Miss. Athira. (March 2011)
a) A cheque for Rs. 4,500 given to Mrs. Rajitha debited to Remithi’s account.
b) A sale of land for Rs. 50,000 has been credited to the sales account.
c) A credit purchase of Rs. 4,000 from Mumthas is entered through the sales book.
d) A credit purchase of Rs. 8,900 from Revathi was entered in the sales book as Rs. 9,800.
Help Athira to rectify the errors by suggesting rectification entries.
Answer:
Journal

Question 14.
Purchase of machinery on credit from Mr.Rajan is not recorded in the journal. It is a/an __________ (March 2012)
a) error of omission
b) error of commission
c) compensating error
d) error of principle
Answer:
a) error of omission

Question 15.
Trial balance consists of ledger balance + ________ balance. (March 2012)
Answer:
Trial balance = Ledger balance + Adjusted/Suspense A/c

Question 16.
Which of the following errors will affect the Trial Balance? (March 2012)
a) Errors of complete omission
b) Errors of principle
c) Compensating error
d) Errors of commission
Answer:
d) Errors of commission

Question 17.
Pass the necessary rectifying entry to correct the errors committed in the following transactions. (March 2012)
a) Wages paid for erecting machinery worth Rs. 5,000 were debited in the wages account.
b) Rs. 340 paid for repairs was debited in the repairs account as Rs. 430/-.
Answer:

Question 18.
Rectify the following errors: (March 2012)
a) The payment of the proprietor’s personal telephone bill of Rs. 4,000 was debited to the postage account.
b) Rent paid Rs. 1,250 was wrongly posted to the Rent A/c as Rs. 1,520.
c) A credit purchase of goods worth Rs. 20,000 from Mr. Mohan was wrongly passed through the Sales Daybook.
d) Bills Receivable Day Book has been overcast by Rs. 1,000.
Answer:

Question 19.
Sale of furniture is credited to sales account is an error of ______ (Say 2012)
a) Commission
b) Omission
c) Principles
d) None of these
Answer:
c) Principles

Question 20.
The statement containing various ledger balances on a specified date is known as _______ (Say 2012)
Answer:
Trial Balance

Question 21.
Machinery purchased for Rs. 25,000 has been recorded as follows. (Say 2012)

Whether it is right or wrong? If it is wrong, identify the type of error.
Answer:
Wrong, Error of Principle

Question 22.
State whether the following is “true” or “false”. If false, correct the same. (Say 2012)
Assets minus total outsiders liabilities is equal to owners equity.
Answer:
True

Question 23.
The following errors have been discovered in the books of a firm. You are required to rectify those errors. (Say 2012)
1. A purchase of goods from Gopal amounting to ₹ 4,500 has been wrongly passed through the sales book.
2. An amount of ₹ 2,500withdrawn by the proprietor for personal use has been debited to trade expenses.
3. ₹ 4000 paid for wages to workers for making a table has been charged to the wages account.
4. Furniture purchased on credit from Modern Furniture Mart for ₹ 9,000 has been entered as ₹ 900.
Answer:
Journal (Rectification Entries)

Question 24.
While checking the accounts of Mr. Suresh it was found that some errors are committed by the accountant. Rectify them bypassing proper rectification entries. (Say 2012)
a) Wages paid for the installation of machinery was debited to wages A/c Rs. 2,000.
b) Cash paid to Anitha Rs. 5,000 was debited to Athira’s account.
c) Purchase of goods from Das for Rs. 4,000 was posted on the debit side of Das’s A/c.
d) A bill for Rs. 500 issued was not entered in the bills payable book.
Answer:
Journal Entries

Question 25.
What will be the effect on the trial balance if Rs. 500 is received as interest and correctly entered in the cashbook, but posted to the debit side of the Interest account? (March 2013)
Answer:
It will affect the agreement of Trial Balance. The Debit side of the Trial Balance shows an increase of Rs. 500 and credit side decreased by Rs. 500.

Question 26.
Give the rectifications entries for the following. (March 2013)
a) A sale of Rs. 575 to Joseph was entered in the Sales Book as Rs. 755.
b) Rs. 5000 paid for furniture purchased has been charged to the Purchases account.
Answer:

Question 27.
From the following transactions, identify the type of error. (March 2013)
a) Wages paid for making additions to machinery Rs. 100 was debited to the wages account.
b) Sales account was given an excess credit by Rs. 1,600 and at the same time, rent account was totaled shortly by Rs. 1,600.
c) A credit purchase of Rs. 10,000 from Manju Agencies was not recorded at all.
d) A credit sale of Rs. 5,000 was entered in the sales book as Rs. 50,000.
e) Purchase of Rs. 200 from Lexi Traders was not recorded in the purchases day book.
Answer:
a) Error of Principle.
b) Compensating Error/Error of Commission.
c) Error of omission/Error of complete omission.
d) Error of commission.
e) Error of omission/Error of complete omission.

Question 28.
Errors cancelled by themselves are called _______ (March 2014)
Answer:
a) errors of omission
b) compensating errors
c) errors of principle
d) errors of commission
Answer:
b) compensating errors

Question 29.
Furniture bought on credit is wrongly recorded in the cash book. It is an example of an error of _______ (March 2014)
a) Principle
b) Compensation
c) Commission
d) Omission
Answer:
a) Principle

Question 30.
Rectify the following transactions of Baby Stores during the year 2012-13. (March 2014)
a) Salary paid Rs. 900 was recorded as Rs. 90 only.
b) Furniture purchased on credit for Rs. 20000 was recorded through cash book by mistake.
c) Wages worth Rs. 40000 paid for the construction of a car porch were debited to Wages a/c.
d) Purchase book was cast short by Rs. 900.
Answer:
Journal

OR
As the purchase account is less by Rs. 900, it should be debited to the purchase account as “To wrong totaling of Purchase book.” No entry is required.

Question 31.
The following errors are located in the books of Carolin. (March 2014)
a) A machine bought for Rs. 3,000 was debited to the Furniture account.
b) Rent of Rs. 1,000 paid for the proprietor’s residence was debited to the Rent account.
i) Identify the types of errors.
ii) Pass the rectification entries.
Answer:
i) a – Error of commission
b – Error of Principle

Question 32.
_______ is a temporary account created when a trial balance is not tallied. (March 2015)
a) Cash account
b) Purchase account
c) Suspense account
d) Sales account
Answer:
c) Suspense account

Question 33.
The following errors are found in the books of Miss Rincy. Help her to rectify the errors. (March 2015)
a) Wages paid for the installation of machinery were debited to the Wages account worth Rs. 5,000.
b) Cash paid to A. Gomez worth Rs. 8,000 was debited to A. Gautham.
c) Cash sales to Mr. Jijo for Rs. 3,000 not entered in the cashbook.
d) Purchase daybook has been overcast by Rs. 500.
Answer:

OR
Purchase account should be credited with Rs.500/-

Question 34.
The following errors are noticed in the books of accounts of a trader at the time of preparation of a Trial Balance. (March 2015)
a) Sales book was overcast by Rs. 300.
b) Salary paid Rs. 1,500 was wrongly debited to Wages account.
c) Goods sold to Kavitha worth Rs. 2,000 were completely omitted to be recorded.
d) Rent amounting to Rs. 1,200 was received but debited to Rent account as Rs. 120.
i) Pass the rectification entries for the above.
ii) Identify the compensating error from the above.
Answer:

ii) Salary paid Rs.1500 was wrongly debited to wages Account – compensating error.

Question 35.
Interest credited to the pass book Rs. 12,000 was found recorded as Rs. 1,200 in the cash book. This error will cause a decline in the cash book by Rs. ________ (Say 2015)
a) 12,ooo
b) 6,000
c) 10,800
d) 1,200
Answer:
c) 10,800

Question 36.
A few journal entries are given below with narration. (Say 2015)

i) Pass the specification entries, if the above is not correct.
ii) Identify the type of errors committed in (b) and (c).
Answer:

ii) Error of Principle

Question 37.
Trial balance is a statement prepared to check the arithmetical accuracy of the business. (March 2016)
a) Name any two types of errors which cannot be disclosed through this statement.
b) Rectify the following errors.
i) Office furniture purchased for Rs.5,000 was posted to the purchase account
ii) Cash sales Rs.2,000 was posted as Rs. 200
iii) Goods are withdrawn by the proprietor for personal use Rs. 1,000 was not recorded in the books.
Answer:
a) Error of principle, compensating error, error due to complete omission.

Question 38.
At the time of preparing the final accounts, the following errors were detected from the books of Swapna. (March 2016)
a) Purchase of furniture for Rs.25,000 entered through purchase book.
b) Sales day book overcast by Rs. 1,000
c) Purchase of goods for Rs. 5,000 not entered in the cashbook.
d) Repairs of machinery Rs. 2,000 entered in machinery account.
i) Rectify the above errors.
ii) Identify the type of errors
Answer:
a) Error of Principle
b) Error of Commission
c) Error of omission
d) Error of principle

Question 39.
Statement prepared to ascertain arithmetical accuracy of accounts. (Say 2016)
a) Bank Reconciliation Statement
b) Statement of Affairs
c) Trial Balance
d) Financial Statements
Answer:
c) Trial Balance

Question 40.
You are required to (Say 2016)
a) Pass rectification entries for the following based on the narration.
b) Which among the following will affect the agreement of Trial Balance?

Answer:
a)

b) Second transaction will affect the agreement of trial balance, (i.e., posting of a wrong amount)

Question 41.
Trial Balance is ________ (March 2017)
a) an account
b) a statement
c) a subsidiary book
d) a principal book
Answer:
b) a statement

Question 42.
Following errors were noticed in the books of Mr. Prem. (March 2017)
Wages paid Rs. 3,000 to Ganesh was debited to his personal account.
Wages paid for building construction Rs. 12,000 was debited to wages account.
a) Identify the type of error and rectify them.
b) Name the temporary ledger account opened for putting the difference in the trial balance.
Answer:
a) i – Error of commission

b) Suspense Account

Question 43.
Purchases daybook was undercast by Rs. 3,000. Wages paid Rs. 500 in connection with the purchase of machinery have been debited to the wages account. (March 2017)
a) Identify the type of errors committed in the above transactions.
b) Pass the entries to rectify them.
Answer:
a) i) → One side error
ii) → Error of principle/Two side error

Kerala State Board New Syllabus Plus One Accountancy Chapter Wise Previous Questions and Answers Chapter 4 Bank Reconciliation Statement.

Kerala Plus One Accountancy Chapter Wise Previous Questions and Answers Chapter 4 Bank Reconciliation Statement

Question 1.
State whether the following is “true” or “false”. If false, correct the same. (March 2010)
The balance as shown by the bank passbook and the balance as shown by the bank column of the cash book are always equal.
Answer:
False, may be different

Question 2.
Passbook is the statement of accounts of the customers maintained by the bank. (March 2010)
Answer:
True

Question 3.
From the following particulars of a business concern, prepare a Bank Reconciliation Statement as of 31 st March 2004. (March 2010)
a) Bank balance as per cash book Rs. 9,400.
b) During the month, the total amount of Rs. 12,400 was deposited into the bank, out of which one cheque for Rs. 1,500 was entered in the passbook on 2nd April 2004.
c) During the month, cheques for Rs. 15,000 were drawn in favour of creditors, of them one creditor’s cheque for Rs. 6,500 was encashed on 4th April only.
d) A debtor had deposited directly into the bank Rs. 9,000; the same was not recorded in the cash book.
e) As per the agreement, the bank paid an insurance premium of Rs. 2,000 on behalf of the customer, but no entry was recorded in the cash book.
Answer:
Bank Reconciliation Statement as on 31.03.04

Question 4.
From the following particulars of a business concern, prepare a Bank Reconciliation Statement as of 31st March 2004, and find out the balance of the passbook on that date. (March 2010)
a) Balance as per the cash book Rs. 12,000.
b) During the month, the total amount of cheque for Rs. 25,000 was deposited into the bank out of which one cheque for Rs. 7,000 had been credited in the passbook only on 2nd April 2004.
c) During the month, cheques of Rs. 18,000 were drawn in favour of creditors. Out of them, one creditor’s cheque for Rs. 8,000 was encashed on 4th April 2004.
d) As per instruction, the bank on 26th March had paid Rs. 4,000 to a creditor, but by mistake, the same has not been recorded in the cash book.
e) According to the agreement on 24th March, a debtor deposited directly into the bank Rs. 5,000, but the same was not recorded in the cash book till 31st March 2004.
Answer:
Bank Reconciliation Statement

Question 5.
Credit balance in the bank column of the cash book means a ______ (March 2011)
a) bank overdraft
b) bank deposit
c) bank balance
d) None of these
Answer:
a) Bank overdraft

Question 6.
On 31st December 1995, the cash book of Anand and Company showed a bank balance of Rs. 5,000. (March 2011)
From the following information, prepare a bank reconciliation statement showing the balance as per the passbook on that date.
a) Cheques had been issued for Rs. 2,500 out of which cheques worth Rs. 1,500 only were presented for payment.
b) A cheque from Kamal for Rs. 5,000 was paid to the bank on 27th December but was dishonoured and the advice was received on 3rd January 1996.
c) Passbook showed a debt of Rs. 200 for bank charges.
d) Passbook also showed a credit of Rs. 480 collected by the bank as interest.
Answer:
Bank Reconciliation Statement of Anand & company as on 31/12/1995

Question 7.
Sometimes the balances as per the passbook and cashbook do not agree. Illustrate the causes of such disagreements. (March 2011)
Answer:
There are several reasons that contribute to the disagreement of the balance as shown by the cash book and passbook. They are as under:
1. Cheques issued but not presented for payment:
When the trader issues a cheque, he credits its amount immediately in his cash book. The same will be entered in the passbook only on presenting the cheque and making payment by the bank. If the cheque is not presented for payment before the date of preparation of bank reconciliation statement, the balance as per Pass Book will be more than the balance as per Cash Book.

2. Cheque paid in for collection but not collected:
On depositing cheques into the bank for collection, the trader debits the same amount in the bank account. The bank credit the amount in the passbook only on getting the amount collected. Such uncleared cheques make the cash book balance to be more than the passbook balance.

3. Direct payment by a customer to the bank:
Customers of the trader occasionally make some payments directly into the trader’s bank account. The trader may come to know of an only later. But the banker gives immediate credit to the trader on receipt of the amount. If it remains unrecorded in the cash book, the balance as per the passbook will be more than the balance as per the cash book.

4. Interest on deposit credited by the banker:
At regular intervals, banks allow interests on the deposit balance of the trader and credit the amount in the pass book. The same usually remains unrecorded in the cash book. In such a case, the passbook balance will be more than the cash book balance.

5. Interest, dividend, rent, etc. collected by the bank:
Bank collects interest, dividend, rent, etc. on behalf of the customer and credits the same to his account. The trader comes to know of it only on a later date. If such collection remains unrecorded in the cash book, the passbook balance will be more than the cash book balance.

6. Payment made on behalf of the customer:
The banker makes the payment for rent, insurance, etc., for the customer as per standing instructions. The banker debit the trader’s account with such payments. The trader comes to know of it only later. Due to such payments that remain unrecorded in the cash book, the balance as per the pass book will be less than the balance as per the cash book.

7. Bank charges as per Pass Book:
Bank charges and commission for collection of cheques, bills, etc., are debited in the passbook. The corresponding credits are often not given in the cash book. As these items are not entered in the cash book, their balance will be more than that of the pass book.

8. Bills Receivable discounted, but dishonoured:
When a trader discounts bills of exchange, the banker credits the trader’s account with the amount due. The same amount is debited by the trader in cash book. If such a bill is later dishonoured, the banker immediately debit it in the pass book. But the same remains unrecorded in the cash book. This cause the balance as per cash book to be more than the pass book balance.

9. Interest on overdraft debited in pass book:
Periodically the bank calculates interest due by the trader on his overdraft and debits the amount in the pass book. Corresponding credit is often not made by the trader in his cash book. It leads to difference in the balance as per cash book and pass book.

10. Credit instruments credited by bank but not recorded in cash book:
Bills of exchange, promissory notes and other credit instruments collected by bank are credited in the pass book. But if they remain unrecorded in the cash book it may, lead to disagreement between the balance as per the two books.

11. There may also be instance of cheque recorded as paid in for collection but failed to be deposited into the bank, by which the cash book balance will be more than the balance as per pass book.

Question 8.
Credit balance in the passbook means a/an _________ to the depositor. (March 2012)
a) asset
b) liability
c) contingent liability
d) fictitious asset (1)
Answer:
a) Asset

Question 9.
On March 31st, 2011 the cashbook of Eco Travels showed a debit balance of Rs. 18,500. At the same time, its passbook showed a credit balance of Rs. 21,300. On comparing the cashbook with the passbook, the following discrepancies were found. (March 2012)
a) A cheque for Rs. 2,500 issued to Sreedevi on 21st March 2011 has not been cashed till March 31st, 2011.
b) Rs. 1,200 in respect of interest allowed by the bank was not found debited in the cashbook.
c) The bank remittance of Rs. 1,000 was wrongly entered in the cashbook as Rs.100.
Reconcile the cashbook balance with the passbook balance from the above information.
Answer:
Bank Reconciliation Statement as on 31-3-2011

Note: The statement start with pass book balance, we will arrive at the balance as per cash book
i.e, 21,300 – (3700) + 900 = 18500

Question 10.
Prepare a bank reconciliation statement and find the correct passbook balance as on 31st March 2010. (March 2012)
a) Balance as per the cashbook on 31st March, 2010 Rs. 50,000/-.
b) Cheque issued but not presented for payment till 31st March, 2010 Rs. 4,200/-.
c) Dividend credited in the passbook which was not recorded in the cashbook Rs.2,000/-.
d) Bank charges entered only in the pass book Rs. 200/-
Answer:
Bank Reconciliation Statement as on 31/03/2010

Computation of correct Bank Balance

Question 11.
From the following prepare a Bank Reconciliation Statement of Tomy as on 31st March 2003. Balance as per Pass Book on this date was ₹ 22,000 and balance as per cash book was ₹ 24,450. (Say 2012)
1) Cheques amounting ₹ 10,000 was put into bank during March, but credit was given only for ₹ 8,000.
2) The bank paid Insurance Premium of ₹ 300 on March 20th but was not entered in the cash book.
3) A discounted wfl receivable of ₹ 1,500 was dishonoured on March 28, but corresponding entry in cash book was made on 3rd April 2003.
4) Of the cheques amounting ₹ 3,000 issued to creditors, the cheques of Rs. 1,800 only was presented for payment.
5) Bank charge of ₹ 50 appeared only in passbook.
6) Interest collected and credited by the bank ₹ 1,000 was not entered in cash book.
Answer:
Bank Reconciliation Statement as on 31/3/2003

Question 12.
Prepare a bank reconciliation statement from the following details. (March 2013)
a) Balance as per the passbook, Rs. 26,000
b) Cheques deposited but not cleared, Rs. 6,000
c) Cheques issued but not presented, Rs. 300
d) Bank interest credited in the passbook, Rs. 600
e) Bank charges debited in the passbook, Rs. 2,000
Answer:
Bank Reconciliation Statement

Question 13.
On January 31, 2013, the passbook of Miss. Reshmi showed a credit balance of Rs. 15,000. On verifying the passbook with the cashbook, the following were observed: (March 2013)
a) Cheques issued but not presented January 31, 2013 – Rs. 3,000
b) Cheques deposted but not cleared – Rs. 4,500
c) Bank charges not seen in the cashbook – Rs. 100
d) Insurance premium paid by the bank – Rs. 300
i) Ascertain the cashbook balance as on the above date.
ii) Give any two causes of differences between a cashbook and a passbook other than the four stated above.
Answer:
Bank Reconciliation Statement as on 31-1-2013

b) i) – Interest, dividend etc. collected by the bank.
ii) – Direct payment by the bank on behalf of customer.
iii) – Interest credited by the bank.
iv) – Dishonour of cheque/bill discounted with the bank.

Question 14.
Ascertain the bank Balance as per the passbook of RK Traders from the given particulars. (March 2014)
a) Debit balance as per the cash book – Rs. 6,844
b) Cheques issued but not cashed – Rs. 32,00
c) Bank charges not shown in the cash book – Rs. 200
d) Insurance premium paid by the bank – Rs. 1,100
e) Interest on deposit – Rs. 396
Answer:
Bank Reconciliation Statement as on……

Question 15.
Prepare a Bank Reconciliation Statement on behalf of Lalu Shoe Mart, as on 31.03.2013. (March 2014)
Balance as per cash book as on 31.03.2013 was Rs. 3,000.
Cheque worth Rs. 2,000 issued for rent, so far not presented to bank.
Interest credited to passbook was only Rs. 1,200.
Chinnu, one of our customers, credited Rs. 4,000 to our bank directly.
Bank charges of Rs. 200 were not credited to the cash book so far.
Answer:
Bank Reconciliation Statement as on 31.03.2013

Question 16.
The Cashbook of Mr. Mathew as on 31/12/2014 shows a difference when compared to the passbook. The following were noticed in this respect. (March 2015)
a) Credit balance as per passbook Rs. 30,000.
b) Cheque issued but not presented worth Rs. 1,000.
c) Two cheques for Rs. 3,700 and Rs. 1,300 were deposited but only the cheque for Rs. 3,700 was credited by the bank.
d) Bank charges of Rs. 100 not recorded in the cashbook.
e) Electricity bill of Rs. 700 paid by the bank on behalf of the customer.
i) Prepare a Bank Reconciliation Statement.
ii) While preparing a cashbook, the bank overdraft will have ______ balance in the bank column of the cashbook (Debit/Credit)
Answer:
i) Bank Reconciliation Statement as on 31/12/2014

ii) Credit Balance

Question 17.
a) Bank Reconciliation Statement is usually prepared by the _________ (March 2015)
i) bank
ii) account holder
iii) government
iv) None of these
b) Prepare a Bank Reconciliation Statement.

Answer:
a) Account Holder
b) Bank Reconciliation Statement as on 31/12/2012

Question 18.
Prepare a bank reconciliation statement as of 31-03-2014. (Say 2015)
a) Cash book balance as of 31-03-2014 – Rs. 30,000
b) Cheque deposited but not collected – Rs. 4,000
c) Cheque given to Kumar but not presented Rs. 7,000
d) Ravi, a customer made a direct payment to the bank – Rs. 11,000
e) A sum of Rs. 6,000 deposited into the bank not recorded in the cash book.
Answer:
Bank Reconciliation Statement as on 31/03/2014

Question 19.
Credit balance in the bank column of cash book indicates ________ (March 2016)
a) cash at bank
b) overdraft
c) cash in hand
d) None of these
Answer:
b) overdraft

Question 20.
A bank reconciliation statement is prepared to reconcile the cash book and pass book balance on a certain date. (March 2016)
a) This statement is prepared by
b) Write anyone causes for the difference in Passbook and Cashbook.
c) Cashbook of Tinu shows a bank balance of Rs. 15,000. On comparing the cash book and pass book the following discrepancies were found.
i) Cheque issued to Deepa but not yet presented for payment of Rs. 1,000.
ii) Bank interest credited by the bank Rs. 400
iii) Divya, a customer directly deposited as. 4,000 to the firm’s bank account.
iv) Bank charges Rs. 100 not entered in the cash book.
Prepare bank reconciliation statement.
Answer:
a) Customer/Businessman/Trader
b) Cheques issued but not presented for payment
c) Bank reconciliation statement

Question 21.
Overdraft as per the cash book on 01/12/2015 Rs. 750. (Say 2016)
The dividend credited by the bank on 31/12/2015 was Rs. 1,250.
New balance as per the cash book will be ____
a) Overdraft as per the cash book Rs. 2,000
b) overdraft as per the cash book Rs. 750
c) balance as per the cash book Rs. 1,250
d) balance as per the cash book Rs.500
Answer:
d) Balance as per the cash book Rs. 500

Question 22.
Prepare a Bank Reconciliation Statement as of 31/01/2015, from the following information. (Say 2016)

Answer:
Bank Reconciliation Statement as on 31/01/2015

Question 23.
The cashbook of a trader showed a debit balance of Rs. 48000 on 31st January 2015. On comparing the same with bank passbook, the following information was received. (March 2017)

i) Prepare a Bank Reconciliation Statement as of 31st January 2015.
ii) Choose the correct answer from brackets for the following question
A bank reconciliation statement is prepared by ____ (bank/depositor)
Answer:
a) Bank reconciliation statement as on 31/01/2015

b) Depositor

Question 24.
The cashbook of Manu showed a debit balance of Rs. 18,000. On comparing a cashbook with a passbook, the following differences were noted. (March 2017)
a) Cheque issued but not yet presented for payment Rs. 4,000.
b) Bank charges debited in the passbook Rs. 500.
c) Cheques sent to the bank for collection but not yet collected Rs. 3,000.
d) Rent collected and credited by bank Rs. 3,500.
i) Name the statement Manu will prepare in order to reconcile the balance as per cashbook with the passbook.
ii) Prepare that statement to reconcile it.
Answer:
i) Bank reconciliation statement
ii) Bank reconciliation statement as on _______

Kerala State Board New Syllabus Plus One Accountancy Chapter Wise Previous Questions and Answers Chapter 3 Recording of Transactions – I & II.

Kerala Plus One Accountancy Chapter Wise Previous Questions and Answers Chapter 3 Recording of Transactions – I & Recording of Transactions – II

Question 1.
The journal is the book of ________ (March 2010)
a) original entry
b) secondary entry
c) only cash transaction
d) only credit transaction
Answer:
a) original entry

Question 2.
Sales journals record all ________ sales of goods. (March 2010)
Answer:
Credit

Question 3.
All drawings made by the proprietor are debited to the _______ account. (March 2010)
Answer:
Drawing a/c / Capital a/c

Question 4.
State whether the following is “true” or “false”. If false, correct the same.
Sales Return Journal is also known as Return Outward Journal. (March 2010)
Answer:
False.
Sales returns journal is also known as the Return inward journal.
or
Purchase Returns Journal is also known as Return outward journal

Question 5.
Sales Journal records all _______ sale of goods. (March 2010)
Answer:
Credit sales of goods

Question 6.
Develop an accounting equation with respect to Ram Traders on 1st January 2004.
a) Started business with a capital of Rs. 1,50,000.
b) On 2nd January 2004, purchased machinery for Rs. 25,000.
c) On 15th January 2004, purchased goods from Raju on credit worth Rs. 75,000.
d) On 20th Feb 2004 paid Rs. 50,000 to Raju. (March 2010)
Answer:

Question 7.
Recording of transactions in the journal is called ________ (March 2011)
a) Posting
b) Journalizing
c) balancing
d) Trial Balance
Answer:
b) Journalizing

Question 8.
Withdrawal of goods by an owner for his private use must be _______ in the Drawings account. (March 2011)
a) debited
b) credited
c) deleted
d) not entered
Answer:
a) Debited

Question 9.
The Purchase Day Book contains _______ (March 2011)
a) all purchases
b) credit purchases of goods
c) cash purchases
d) None of these
Answer:
b) Credit purchase of goods.

Question 10.
Which of the following is not a book of original entry? (March 2011)
a) Cashbook
b) Ledger
c) Purchase book
Answer:
b) Ledger

Question 11.
Shyam started the business with Rs. 50,000/-. The value of the total assets at the moment will be Rs. ________ (March 2011)
Answer:
Rs. 50,000

Question 12.
State whether the following is “true” or “false”. If false, correct the same.
If the debit side of an account is more than the credit side, it has a credit balance. (March 2011)
Answer:
False, Debit balance

Question 13.
M.S. Brothers carry on business as cloth dealers. From the following, write their Purchase book for January 2010
3rd January 2010: Purchased on credit from Ambika Mills, 100 meters long cloth @ Rs. 30 per meter and 50-meter shirting @ Rs. 50 per meter.
8th January 2010: Purchased for cash from Aravind Mills, 50 meters muslin @ Rs. 40 per meter.
15th January 2010: Purchased on credit from India Textile Mills, 120 meters suiting @ Rs. 100 per meter and 100 meters shirting @ Rs. 60 per meter.
20th January 2010: Purchased laser printer on credit from Bharat Company Ltd. for Rs. 12,000. (March 2011)
Answer:
Purchase Day Book

Question 14.
The following are the transactions taken from the books of a furniture dealer. (March 2011)
March 1: Sold to Anil, 5 tables, @ Rs. 2,000 per table
March 7: Sold to Mithra, 2 dressing tables, @ Rs. 1,900 per table.
March 8: Sold to Ganga, 2 dining tables, @ Rs. 3,000 per table.
March 18: Sold to Ameer, a motorcycle for Rs. 14,000
March 21: Sold to Assis, 10 wooden chairs, @ Rs. 500 per chair.
March 25: SoldtoShilpa, 5 wooden tables, @Rs. 2,500 per table
Prepare the sales book for the month of March.
Answer:

Question 15.
Total of the discount column in the payment side of the cashbook is posted to the ________ (March 2012)
a) discount allowed account
b) discount received an account
c) returns inwards account
d) returns outwards account
Answer:
b) Discount Received Account

Question 16.
Fixed asset purchases on credit are recorded in the ______ journal. (March 2012)
Answer:
Special journal/General journal/Journal proper

Question 17.
Cashbook is different from other journals. Explain any four features of a cashbook. (March 2012)
Answer:
Features of a Cash Book
a) It is a daybook used to record all receipts and payments of cash.
b) All receipts of cash are entered on the debit side of the cash book, while all cash payments are entered on the credit side.
c) All entries are made date-wise.
d) A cash book serves the purpose of both journal and a ledger account.

Question 18.
Correct the following statements. (March 2012)
a) Increase in expense is debited in the income account.
b) Increase in liability is debited in the asset account.
Answer:
a) Increase in expense is debited in the expense account
b) Increase in liability is credited in the liability account

Question 19.
Write the business transaction corresponding to the following entries: (March 2012)

Answer:
a – Withdraw from the bank for personal or domestic uses.
b – Goods distributed as free samples.

Question 20.
The following transactions took place during the week ending 7th May 2011. How will you record them in the analytical petty cashbook which is maintained with a weekly cash float (interest) of Rs 500? (March 2012)

(Hint: Cash float (imprest) is the amount which the main cashier hands over to the petty cashier in order to meet the petty cash expense of a given week)
Answer:
Analytical Petty Cash Book

Question 21.
“Accounting equation forms the basis of the accounting process.” Prove that the accounting equation is satisfied in all the following transactions. (March 2012)
a) Mr. Suresh commenced business with cash Rs.40,000.
b) Purchased goods on credit Rs. 6,500.
c) Paid rent Rs.500.
d) Sold goods costing Rs. 6,500 on credit for Rs.8,000.
Answer:

Question 22.
Prepare an analytical petty cash book on the Imprest system from the following. (March 2012)

Answer:
Analytical Petty Cash Book

Question 23.
An asset account will usually show ______ balance only. (Say 2012)
a) Credit
b) Debit
c) Equality
d) None of these
Answer:
b) Debit

Question 24.
The type of account usually having a debit balance is _______ (Say 2012)
a) Capital Account
b) Bills payable
c) Bank Account
d) Depreciation
Answer:
c) bank a/c or d) Depreciation

Question 25.
If both the aspect of the same transaction appears in one account it is called _______ entry. (Say 2012)
Answer:
Contra

Question 26.
Journal is a book of ______ entry, while ledger is the book of _______ entry. (Say 2012)
Answer:
Original/Primary and Secondary

Question 27.
Identify the debit and credit aspects of the following business transaction. Goods took by the owner for his personal use. (Say 2012)
Answer:
Goods took by the owner for his personal use.
Debit – Drawings
Credit – Purchase

Question 28.
List out the appropriate source document for recording the following transactions. (Say 2012)
a) Electricity charges paid
b) Salary paid
c) Deposit of money into a bank
d) Receipt of cash from the sale of goods.
Answer:
a) Receipt from KSEB
b) Payroll or Acquittance
c) Counterfoil of Pay-in-slip
d) Sales bill/Receipt

Question 29.
Show the impact of the following transactions on the accounting equation: (Say 2012)
a) On 1st January 2008 Umesh started the business with ₹ 5,00,000.
b) On 5th January 2008 purchased Land for ₹ 1,00,000
c) On 10th January 2008 purchased machinery for ₹ 50,000.
d) On 20th January 2008 purchased goods for ₹ 1,00,000 on credit from Raju.
e) On 25th January 2008 deposited ₹ 2,00,000 in the bank.
f) On 26th January 2008 purchased furniture for ₹ 25,000.
g) On 27th January 2008 introduced Additional Capital of ₹ 50,000.
h) On 30th January 2008 purchased goods for cash ₹ 2,00,000.
Answer:
Assets = Liabilities + Capital

650000 = 550000 + 100000

Question 30.
Roy started a business on 1 st April 2010 by investing Rs. 50,000. Help him to find out the closing balance of cash for the month considering the following transactions. (Say 2012)

Answer:
Cash Book

Question 31.
The transaction started the business with cash results in ________ (March 2013)
a) Increase in assets and decrease in assets
b) Increase in assets and a decrease in liability
c) Decrease in asset and increase in liability
d) Increase in asset and increase in liability
Answer:
d) Increase in asset and increase in liability

Question 32.
Purchase of furniture from M/s. Thankam Traders is recorded in _________ (March 2013)
a) Purchase Day Book
b) Cashbook
c) Journal Proper
d) Sales Day Book
Answer:
c) Journal Proper

Question 33.
Accounts that normally have debit balances are _______ (March 2013)
a) Assets, expenses, and revenues
b) Assets, expenses, and owner’s capital
c) Assets, liabilities, and owner’s drawings
d) Assets, owner’s drawings, and expenses
Answer:
d) Assets, Owner’s drawings, and Expenses.

Question 34.
Match the following. (March 2013)

Answer:
Purchase Day Book – Invoice
Sales Return Book – Credit Note
Cash Book – Voucher
Purchase Return Book – Debit Note

Question 35.
Unni purchased goods for Rs. 9818 and the trader allowed a discount of Rs. 18 at the time of purchase. (March 2013)
a) Identify the type of discount.
b) Mention the other types of discounts available and differentiate them from the one stated above.
Answer:
a) Trade Discount
b) Cash Discount/Discount allowed.
Difference between Trade Discount and Cash Discount

Question 36.
Give the accounting equation after each transaction. (March 2013)
a) Thomas started business with cash Rs. 50,000
b) Purchased goods on credit from Smitha, Rs. 90,000
c) Sold goods for cash Rs. 40,000
d) Paid wages Rs. 2,000
Answer:
Assets = Liabilities + Capital

Question 37.
Journal is prepared on a ______ basis. (March 2014)
a) daily
b) weekly
c) monthly
d) yearly
Answer:
a) daily

Question 38.
If goods are sold for Rs. 12500 and the discount allowed is Rs. 600, what amount will be recorded in the cash book? (March 2014)
a) 12500
b) 11900
c) 13100
d) 600
Answer:
b) 11900

Question 39.
Debit note is a source of document for recording the ________ (March 2014)
a) Sales returns
b) Purchase returns
c) Purchases
d) Sales
Answer:
b) Purchase returns

Question 40.
Complete the following with “Principal Book, Primary Book, First Entry, Second Entry.” (March 2014)
a) Cash book: _________: ___________
b) Cash account: ________: __________
Answer:
a. Cash book – Primary Book, First Entry
b. Cash Account – Principal Book, Second Entry

Question 41.
Enter the following transactions in the Purchase Returns book of Morazha Ltd. (March 2014)
2013
March 5: Returned to Shalima Traders, Goa, 5 bags of coffee @ Rs. 300 per bag.
March 12: Returned to Dhanesh Enterprises, Madgoa, 10 chests of tea @ Rs. 400 per chest less trade discount 10%.
March 25: Allowance claimed on account of a mistake in the invoice Rs. 1,000.
Answer:
Purchase Return Book of Morazha Ltd.

Question 42.
Record the following transactions in the petty cash book. On 1st January 2013, Rs. 50 was given to the petty cash clerk who made the following payments. (March 2014)
Jan. 2 – Stationery Rs.2.50, Postage Rs.3.00
Jan. 5 – Freight Rs. 6.00; Telegram Rs. 4.50
Jan. 10 – Printing Rs. 5, Stationery Rs. 2.50
Jan. 18 – Travelling expenses Rs. 10
Answer:
Analytical Petty Cashbook

Question 43.
Prepare a double column cash book on behalf of a cloth merchant from the information given below. (March 2014)

Answer:
Cashbook with Cash and Bank columns

Question 44.
_______ is used as a source document for recording purchase returns. (March 2015)
Answer:
Debit Note

Question 45.
Given below are some journal entries. (March 2015)
a) Give Journal entries to these entries.
b) Explain the type of discount mentioned in the second Journal entry.

Answer:

Question 46.
Some transactions relating to a business are given below. (March 2015)

a) Prepare a suitable cashbook from the above.
b) Identify a special Journal where goods are withdrawn by the proprietor for personal use worth Rs. 200 will be recorded.
Answer:
a) Cash Book with cash and Bank column

b) Journal Proper

Question 47.
a) Fill in the blank. (March 2015)
“Deposited money into the bank worth Rs. 5,000”. While posting the above entry into the cashbook, this is treated as a/an _________ entry.
b) Fill in the blank columns.

Answer:
a) a contra entry
b) i. Purchase Day Book
ii. Cash Book
iii. Opening and closing entries, Adjustingentries, Rectification entries, etc.
iv. Sales Return Book

Question 48.
a) Asset = ______ + Capital
b) Show the accounting equations on the basis of the following transactions.
i) Nibin commenced business with cash of Rs. 80,000
ii) Bought goods for cash Rs. 14000
iii) Bought goods on credit Rs. 10000
iv) Received interest Rs. 1200
v) Paid rent Rs. 1,600
c) Prepare a Cash account from the above transactions. (March 2015)
Answer:
a) Assets = Liabilities + Capital
b)

Question 49.
Sathees gives you the following transaction: (Say 2015)
01-07-2014. Purchased goods from Revathy Rs. 10,000. Trade discount @ 10%
a) In which book will this transaction be recorded?
b) Prepare the special journal.
Answer:
a) Purchase journal/Purchase daybook
b) Purchase Daybook

Question 50.
A firm has given you certain particulars relating to Siva Kumar. (Say 2015)
The amount owed to Siva Kumar on 01-01-2014 Rs.4,000
Purchases from him during the year Rs.4,000
Discount received from Siva Kumar Rs. 1,000
Cash paid to him Rs. 14,000
a) Who is Siva Kumar to the business?
b) Prepare Siva Kumar’s account.
Answer:
a) Creditor
b) Sivakumar’s A/c

Question 51.
Prepare a petty cash book for the following transactions during the month of January 2014 with a weekly imprest of Rs. 500. (Say 2015)


Answer:
Analytical petty cash book

Question 52.
Ravi, a stationery merchant whose cash transactions during the month of January 2014 are as follows: (Say 2015)
1-1-2014 Balance of cash in hand Rs.12,000
1- 1-2014 Bank balance Rs.9,ooo
2-1-2014 Sold goods for cash Rs.17,000
4-1-2014 Payment by cheque for the following expenditure
Salary Rs. 1,200
Rent Rs. 800
DTP charges Rs. 500
05-01-2014 Suresh, a customer has deposited Rs.6,000 into our bank directly.
Prepare a suitable cash book for recording the above transactions.
Answer:
Cashbook with cash and bank column

Question 53.
Purchased goods from Sreejesh for cash. In this transaction which account is credited? (March 2016)
a) Purchase
b) Sreejesh
c) Cash
d) None of these
Answer:
c) Cash

Question 54.
Journal and ledger are two important books maintained in accounting. (March 2016)
a) State any two differences between these books.
b) Purchase office furniture for Rs. 500 by cheque.
The account to be debited is _______
Answer:
a) i) Journal is the book of primary entry whereas ledger is the book of secondary entry.
ii) The process of entering transactions in the journal is called journalizing. The process of recording entries in the ledger is called posting.
b) Furniture Account is debited.

Question 55.
Complete the table given below. (March 2016)

Answer:
a) Expenses, Radha
b) Sales returns, Assets
c) Expenses, Asset

Question 56.
GM Traders has the following transactions with SP Traders. (March 2016)

Prepare SP Trader’s account in the books of GM Traders for June 2014.
Answer:
SP Traders A/c

Question 57.
Prepare a cashbook from the following transactions for March 2015. (March 2016)

Answer:

Question 58.
In every organization, a large number of small payments of repetitive nature are there. To record these as a separate cash book is maintained is called petty cashbook. (March 2016)
a) Name the person who prepares this book.
b) What is imprest?
c) Prepare a petty cashbook from the following transactions of Nisha associates for the month of January 2000, under analytical firm given that imprest amount is Rs. 500.

Answer:
a) Petty cashier
b) Imprest is a fixed sum given by the main cashier to the petty cashier at the beginning of the period.
c) Analytical Petty Cash Book

Question 59.
For the quite efficient and accurate recording of a business transaction, the journal is subdivided into special journals. (March 2016)
a) List any two examples for special journals.
b) Prepare a cash book from the following transactions of grace enterprises for the month of December 2010.

Answer:
a) Cashbook, purchase day book, sales day book, purchase return book, sales return books
b) Cashbook with cash and bank column

Question 60.
Goods withdrawn by the proprietor for personal use are debited to _________ (Say 2016)
a) capital account
b) drawings account
c) stock account
d) purchase account
Answer:
b) Drawings account

Question 61.
Goods returned by customers are also known as ______ (Say 2016)
a) purchase returns
b) returns outwards
c) returns inwards
d) goods in transit
Answer:
c) Returns inwards

Question 62.
Show the accounting equation in the respect of the following transactions. (Say 2016)
a) Started business with cash Rs. 1,00,000
b) Purchased goods from Menon Rs. 30,000
c) Sold goods for cash Rs. 20,000
d) Paid salary Rs. 5,000
Answer:
Asset = Liabilities + Capital

Asset = Liabilities + Capital
1,25,000 = 30,000 + 95,000

Question 63.
a) Prepare a simple cash book from the following: (Say 2016)

Answer:

Question 64.
Prepare an analytical petty cash book from the following details. (Say 2016)

Answer:
Analytical Petty Cash Book

Question 65.
Journal entry to record salaries paid will include ________ (March 2017)
a) debit cash and credit salaries
b) debit salaries and credit cash
c) debit capital and credit salaries
d) debit salaries and credit capital
Answer:
b) debit salaries and credit cash

Question 66.
JMr. Adwaith started a business with Rs. 2,50,000 as an initial investment. of which he paid Rs. 20,000 for the purchase of furniture, Rs. 25,000 for computers and Rs.40,000 for the stock of goods. He sold goods on credit to Ashok for Rs. 3,000. He also purchased goods from Sudeep on credit for Rs. 15,000. From the above information, identify (March 2017)
a) What is the amount of capital?
b) Who is the debtor and what is the amount receivable from him?
c) What are the fixed assets he bought?
Answer:
a) Capital = Rs. 2,50,000
b) Debtor – Ashok
Amount Receivable – Rs. 3000
c) Furniture and computer

Question 67.
Mr. Mrinal got an appointment as a cashier in a firm for handling only the small payments and expenses. He records these in a separate book. (March 2017)
a) Identify the name of the book prepared by Mr. Mrinal.
b) Prepare the book from the following transactions.

Answer:
a) Petty cash book
b) Petty cash book

Question 68.
You are given certain transactions of a trader. (March 2017)
Started business with cash Rs. 60,000
Furniture purchased Rs. 12,000
Purchased goods on credit from Abhi Rs. 8,000
Received commission Rs. 2,000
a) Prepare an accounting equation for the above.
b) Supply the missing amounts on the basis of the accounting equation.

Answer:

2) _____ = 30,000 + 9000
Assets = 39,000

Question 69.
Prepare Purchase Book from the following transactions. (March 2017)

Answer:
Purchase Book

Question 70.
Started business with cash Rs. 85,000 and stock Rs. 15,000. Sold goods for cash Rs. 10,000. (March 2017)
a) Prove that the accounting equation is satisfied in the above transactions.
b) Also pass the journal entries to record the above transactions.
Answer:
a) Assets = Liabilities + Capital

Question 71.
Sethu a dealer in books had the following transactions for the month of June 2016. (March 2017)
a) Purchased books on credit from Himalaya Publishers:
100 copies of Accountancy Text for Class XI @ Rs. 150 per text. 80 copies of Business Studies Text for Class XI @ Rs. 120 per text.
b) Purchased books on credit from Saradhi Books:
90 copies of Accountancy Text for Class XII @ Rs. 180 per text. 75 copies of Business Studies Text for Class XII @ Rs. 140 per text. Trade discount allowed 5%.
c) Returned to Saradhi Books:
8 copies of Accountancy Text for Class XII @ 180 per text. 15 copies of Business studies Text for Class XII @ Rs. 140 per text.
i) Record the above transactions in the appropriate day books.
ii) Identify the source document for recording the transaction no. (c) above.
Answer:
(i) Purchase Day Book

Purchase Return Book

(ii) Debit note

Question 72.
Prepare a double-column cashbook from the details given below. (March 2017)

Answer:
(b) Cashbook with cash and Bank column

Kerala State Board New Syllabus Plus One Accountancy Chapter Wise Previous Questions and Answers Chapter 2 Theory Base of Accounting.

Kerala Plus One Accountancy Chapter Wise Previous Questions and Answers Chapter 2 Theory Base of Accounting

Question 1.
Closing stock is valued at _______ (March 2010)
a) Cost price
b) Market price
c) Cost price or market price whichever is lower.
d) replacement cost
Answer:
c) Cost price or market price whichever is lower.

Question 2.
Assets are shown at cost less depreciation due to the following principles. (March 2010)
a) Realization
b) Going concern
c) Duality
d) Dissolution
Answer:
b) Going concern

Question 3.
Revenue from the sale of products ordinarily is reported as part of the earning in the period when _________ (March 2010)
a) the sale is made
b) the cash is collected
c) the products are manufactured
Answer:
a) the sale is made

Question 4.
In double-entry book-keeping, every transaction has two aspects. (March 2010)
Answer:
True

Question 5.
The _____ concept makes a distinction between a business and its proprietor. (March 2011)
a) business entity
b) consistency
c) going concerned
d) accounting entity
Answer:
d) accounting entity

Question 6.
Assets are always equal to capital plus ________ (March 2011)
Answer:
Liabilities

Question 7.
Revenue is generally recognised being earned at, when ________ (March 2011)
a) cash is received
b) goods are delivered
c) sale is effected
Answer:
c) Sales is effected

Question 8.
According to the _______ principle, frequent changes in accounting policies adversely affect the reliability of financial information. (March 2011)
Answer:
Consistency principle

Question 9.
State whether the following is “true” or “false”. If false, correct the same. (March 2011)
It is on the basis of the going concern concept, that assets are valued at market price.
Answer:
False, It is on the basis of the going concern concept, the business has an indefinite life.

Question 10.
Excess of assets over liability is _________ (March 2012)
a) fixed assets
b) current assets
c) capital
d) drawings
Answer:
c) capital

Question 11.
Accounting Standards-2 (AS2) deals with ________ (March 2012)
a) depreciation accounting
b) revenue recognition.
c) valuation of inventory
d) accounting for fixed assets
Answer:
c) valuation of inventory

Question 12.
Debit Means _______ (March 2012)
Answer:
Receiving aspects of a transaction

Question 13.
Enumerate four different forms of the accounting equation. (March 2012)
Answer:
Accounting Equation
Assets = Equities
The properties owned by a business are called assets, the right to the properties are called equities. Equities may be creditors’ equity or owners’ equity. Equities of creditors being debts of the business are called liabilities. The equity of owners is called capital or owners equity.
Therefore, Assets = Liabilities + Capital i.e., A = L + C
Capital = Assets – Liabilities i.e., C = A – L
Liabilities = Assets – Capital i.e., L = A – C
Assets – Capital – Liabilities = Zero i.e, A – C – L = Zero

Question 14.
Identify the accounting principles or concepts involved in the following: (March 2012)
a) Mr. Sreenath, owner of the business, invested Rs. 10,000 in his business. He is treated as a creditor of the business to the extent of Rs. 10,000 and his capital account is credited with the amount.
b) All transactions recorded in the books of accounts must have a supporting document in evidence of it.
c) Closing stock is valued at cost price or market price whichever is less.
Answer:
a) Business Entity/Accounting Entity Assumption
b) Verifiability/Objectivity Principle
c) Prudence/Conservatism Principle

Question 15.
Briefly explain any four of the modifying principles of accounting. (March 2012)
Answer:
There are certain general conventions or principles which supplement the basic principles for the preparation of accounting records and financial statements. They are called modifying conventions or principles.
The important modifying principles are:
a. Cost-Benefit
b. Materiality
c. Consistency
d. Prudence or conservatism
e. Timeliness
f. Substance over legal form
g. Variation in accounting practices.

a. Cost-Benefit Principle: This principle is a generally accepted norm that the cost of doing anything must not exceed the possible benefit that may be derived. This is applicable in the case of accounting also. Money spent for undertaking accounting work should definitely provide more benefit than the cost incurred.

b. Materiality Principle: Materiality means relevance or importance or significance. As per this principle, all material facts should be disclosed in the financial statements, but insignificant and immaterial facts need not be disclosed in detail. For example, purchase of items like pen, pencil, scissors etc. are to be recorded as assets but practically these items are treated as expenses under the head stationary.

c. Consistency Principle: Consistency means steadiness or unchanging nature. Accounting policies and practices adopted must be consistent for a relatively reasonable period of time. The comparison of the financial statement of one year with that of another year will be effective and meaningful only if accounting practices and methods remain unchanged over year.

d. Conservatism or Prudence Principle: This principle calls for losses while recording accounting information but at the same time does not permit anticipation of profits. This principle implies that while preparing financial statements all possible losses are to be provided for but incomes can be recognized only when there is a certainty. It is base on the principle of prudence that stock is the value at market price or cost price whichever is less and provision is provided for doubtful debts.

Question 16.
According to ________ concept, it is assumed that business will last for a long period. (Say 2012)
a) Going concerned
b) Accounting entity
c) Dual aspect
d) Consistency
Answer:
a) Going concerned

Question 17.
A firm purchased pen and paperweight and included these items under the head stationery. Identify the relevant accounting principle. (Say 2012)
Answer:
Materiality Principles

Question 18.
Premier Ltd. supplies stationeries to ABT Ltd. on credit assuming that they can realise the amount in the future period. Name the relevant accounting concept and explain it. (Say 2012)
Answer:
Going concerned or Revenue Realisation concept.

Question 19.
Transactions relating to the qualitative aspect of business are not recorded because of the _________ (March 2013)
a) money measurement concept
b) entity concept
c) accrual concept
d) consistency principle
Answer:
a) money measurement concept

Question 20.
Find the odd one and state the reason. (March 2013)
a) Matching
b) Full disclosure
c) Dual aspect
d) Going concerned
Answer:
d) Going concerned.
All others are Accounting principles.

Question 21.
A firm decided to make provision for doubtful debts @10% on debtors for the year 2012-13. Name the relevant accounting principle applied here and explain. (March 2013)
Answer:
Conservatism or Prudence Principle: This principle calls for losses while recording accounting information but at the same time does not permit anticipation of profits. This principle implies that while preparing financial statements all possible losses are to be provided for but incomes can be recognized only when there is a certainty. It is base on the principle of prudence that stock is the value at market price or cost price whichever is less and provision is provided for doubtful debts.

Question 22.
‘Business entity assumption is not applicable to a partnership firm.’ State whether this statement is True or False. (March 2014)
Answer:
False. Business Entity Assumption applies to all forms of business like sole proprietorship, partnership, and Joint Stock companies.

Question 23.
Accounting standards in India are issued by _______ (March 2014)
Answer:
Accounting Standard Board (ASB) was set up by the Institute of Chartered Accountants of India.

Question 24.
Which one of the following principles of accounting helps to equate the assets of a firm with its liabilities? (March 2014)
a) Full Disclosure principle
b) Duality principle
c) Matching principle
d) Cost principle
Answer:
b) Duality principle

Question 25.
Which assumption of accounting, states that the capital supplied by the proprietor is a liability to the business? Describe it in one or two sentences. (March 2014)
Answer:
Accounting Entity/Business Entity Assumption This concept assumes that the entity of business is different from its owners. The business is treated as a unit or entity separate from the person who control it. The proprietor is treated as a creditor to the extent of the amount invested by him on the assumption that he has given money and the business has received it.

Question 26.
Identify the relevant principles and concepts associated with the following. (March 2015)

1. The quality of manpower is not recorded in the books of accounts.
2. Capital is a liability for the business.
3. For every debit, there is an equal and corresponding credit.
4. Contingent liabilities are shown as a footnote in the balance sheet.
5. Anticipate no profit but provide for all possible losses.

Answer:

1. Money measurement concept
2. Business Entity concept
3. Duality principle
4. Full Disclosure Principle
5. Prudence or conservatism Principle

Question 27.
Every transaction has two aspects which will be recorded in the books of accounts. (March 2015)
a) Identify and explain the accounting concept referred to above, by giving suitable examples.
b) Narrate a transaction which affects only the asset side of an accounting equation.
Answer:
a) Duality Principle
According to this concept, each and every business transaction has two aspects’ – a giving aspect and a receiving aspect. The giving aspect of a transaction is called “credit” and the receiving aspect of a transaction is called “Debit”.
For example Manu started the business with Rs. 10000 The effect of this transaction is that
It increases cash (assets) Rs. 10000
It increases capital (liability) Rs. 10000

b) Purchased goods for cash
cash deposited into bank
sales of assets

Question 28.
Match the following: (Say 2015)

Answer:
a) Matching concept – Salary outstanding
b) Money measurement Concept – Efficiency of the labour
c) Conservatism concept – Provision for bad debts
d) Vouchers and bills – Verifiable objective

Question 29.
Which one of the following is INCORRECT. (March 2016)
a) Assets = Liabilities + Capital
b) Liabilities = Assets – Captial
c) Captial = Assets – Liabilities
d) Liabilities = Assets + Captial
Answer:
d) Labilities = Assets + Capital

Question 30.
The fact that a business is separate and distinguished from its owner is best exemplified by the ______ concept. (March 2016)
a) money measurement
b) going concerned
c) business entity
d) cost
Answer:
c) Business entity

Question 31.
Identify the accounting principle related to the following transactions. (March 2016)
a) A land was purchased for Rs.5,00,000. But the market value of it was Rs.7,50,000. It was recorded in the books of the firm at Rs.5,00,000.
b) A business unit would continue to carry out its operations indefinitely fora long period of time and not liquidate in the near future.
Answer:
a) Historical cost principle/Cost principle
b) Going concern concept

Question 32.
In a meeting, the General Manager appreciate the sales department’s achievement of Rs.25 lakhs sales during the year 2015. But this activity of the General Manager is not recorded in the accounts of the business. (March 2016)
a) Identify the accounting principle on the basis of which this activity is not recorded?
b) Explain the above principle.
Answer:
a) Money measurement concept
b) According to this concept, transactions that can be measured in terms of money only are recorded in the books of accounts. Here, the activity of the general manager cannot be measured in terms of money.

Question 33.
Rajanesh is a manager with great expertise in management and leading his firm very well. But his expertise does not find a place in the accounting records of the firm. (March 2016)
a) Is it genuine according to the rules of accounting?
b) State your answer with the reason.
Answer:
a) Yes
b) According to the money measurement concept, transactions that can be measured in terms of money only are recorded in the books of accounts.

Question 34.
State the relevant principles/Concepts. (Say 2016)

Answer:

1. Accounting Entity concept or Business Entity concept
2. Money Measurement concept
3. Going concern concept
4. Consistency principle
5. Conservatism or prudence principle
6. Matching principle

Question 35.
Transactions between owner and business are recorded due to the ______ principle. (March 2017)
a) going concerned
b) accounting entity
c) matching
d) consistency
Answer:
b) accounting entity

Question 36.
A building worth Rs. 10 lakhs is purchased for Rs. 8 lakhs and recorded the same in the books of account at Rs. 8 lakhs.
a) Name the accounting principle referred to in the above. (March 2017)
b) Explain that principle.
Answer:
a) Historical cost principle
b) This principle requires that all transactions should be recorded at their acquisition cost. The cost principle assumes that all assets are to be recorded at the total amount paid to acquire them and this cost is the basis for all subsequent accounting for those assets.

Question 37.
Match the following. (March 2017)

Answer:
a → iv. Principle of conservatism
b → iii. Dual aspect concept
c → ii. money measurement concept
d → i. objectivity principles

Kerala State Board New Syllabus Plus One Accountancy Chapter Wise Previous Questions and Answers Chapter 1 Introduction to Accounting.

Kerala Plus One Accountancy Chapter Wise Previous Questions and Answers Chapter 1 Introduction to Accounting

Question 1.
Find the odd one out. (March 2010)
a) Machinery
b) Land and building
c) Closing stock
d) Furniture
Answer:
c) Closing stock

Question 2.
“The primary objective of accounting is to provide information to facilitate business decisions”. Mention any four objectives of accounting. (March 2010)
Answer:
1) Maintenance of business records
2) Ascertainment of profit/loss
3) Ascertainment of financial position
4) Providing information to users

Question 3.
The major objectives of accounting include ascertaining the operating results of a business. Mention four advantages of accounting to business. (March 2010)
Answer:
The following are the important objectives of accounting.

• Keeping records of business transactions.
• Ascertainment of Profit or Loss.
• Ascertainment of the financial position of business enterprises.
• Providing meaningful information to different groups of people having an interest in the business.

a) Keeping of records of business transaction
The main purpose of accounting is to identify business transactions of financial nature and enter into appropriate books of accounts. The accounting records should be made properly and systematically, so that requisite information may be obtained at a glance.

b) Ascertainment of Profit or Loss
The result of business (Profit or Loss) is available from the statement prepared for ascertaining it, called the Profit and Loss Account.

c) Ascertainment of financial position
At the end of an accounting year, a position statement is known as the ‘Balance Sheet’ is prepared. The value of assets and liabilities are depicted in the Balance Sheet. The Balance sheet gives a true and fair view of the state of affairs of the concern.

d) Providing meaningful information to different groups of people having an interest in the business
Accounting records provide meaningful information to a different group of people having an interest in the business.

Question 4.
Define accounting and explain five objectives of accounting. (March 2010)
Answer:
According to American Institute of certified Public Accountants, “Accounting is the art of recording, classifing and summarizing in a significant manner and in terms of money, transations and events which are in part, at least, of a financial character and interpreting the results there of.”
The following are the important objectives of accounting.
a) Keeping of records of business transaction.
b) Ascertainment of Profit or Loss.
c) Ascertainment of financial position of business enterprises.
d) Providing meaningful information to different groups of people having interest in the business.

Question 5.
Business sold goods to Mujeeeb on credit. Mujeeb is the _________ of the business. (March 2011)
Answer:
Debtor

Question 6.
What represents the amount invested by the owner into the business? (March 2011)
a) Assets
b) Revenue
c) Capital
Answer:
c) Capital

Question 7.
If Mr. Kumar purchased from our business for Rs. 10,000, he is our creditor. (March 2011)
Answer:
False, Debtor

Question 8.
Assets that can be converted into cash with a year are called current assets. (March 2011)
Answer:
True

Question 9.
“The primary objective of accounting is to provide information to facilitate business decisions.” Mention any four objectives of accounting. (March 2011)
Answer:
a) Facilitate maintenance of business records
b) Ascertainment of profits or loss
c) Ascertainment of financial position
d) Providing information to users.

Question 10.
_________ are the internal users of an account. (March 2012)
Answer:
Owners

Question 11.
Fund based accounting is used by ________ (March 2012)
a) multinational companies
b) trading organizations
c) government organizations
d) manufacturing organizations
Answer:
c) government organizations

Question 12.
Fathima took an educational loan of Rs. 10,000 from SBI, Calicut. The relationship which exists between SBI and Fathima is ______ (March 2012)
a) Fathima is the debtor of SBI, Calicut
b) SBI, Calicut is the debtor of Fathima
c) Fathima is the creditor of SBI, Calicut
d) Fathima is the proprietor of SBI, Calicut
Answer:
a) Fathima is the debtor of SBI, Calicut

Question 13.
A student of XI commerce, after going through the topic, “Capital expenditure and revenue expenditure” has classified certain expenditure as given below. (March 2012)

Do you agree with the above classification? If not correct it.
Answer:
No, Capital expenditure

• Machinery purchased
• Installation charge on machinery

Revenue Expenditure

• Depreciation on machinery
• Rent paid
• Goods purchases

Question 14.
Identify the events not amenable to accounting treatment. (Say 2012)
a) Sale of goods
b) Salary paid
c) Directors are appointed
d) Rent received
Answer:
c) Directors are appointed

Question 15.
Find the odd one out. (Say 2012)
a) Manager
b) Bank
c) Government
Answer:
a) Manager

Question 16.
Minnu is working as an accountant in an organization and Chinnu is working as a book-keeper. Minnu argued that her work is much wider than that of Chinnu. Do you agree? Why? (Say 2012)
Answer:
Yes.

Question 17.
Complete the series based on the hint given: (March 2013)
Hint: Intangible asset – goodwill
a) Fictitious asset – ______
b) Liquid asset – _________
Answer:
a) Fictitious asset – Preliminery Expenses/Profit & Loss Debit balance.
b) Liquid asset – Cash/Bank/Debtors/Bill receivables.

Question 18.
Name any to internal users of accounting information of your choice. (Say 2012)
Answer:
Managers, Owners, Employees, Management

Question 19.
Mr. Ali is of the opinion that all transactions of a businessman are business transactions. Do you agree with him? Why? (Say 2012)
Answer:
No, Business transactions, which can be expressed in terms of money and have an impact on the assets and liabilities of the business.

Question 20.
The difference between what is owed and what is owed by a business is called ______ (March 2014)
a) assets
b) Liabilities
c) capital
d) profit
Answer:
c) capital

Question 21.
Under which one of the following can the asset of ‘Debtors’ be well placed? (March 2014)
a) Real asset
b) Fixed asset
c) Current asset
d) Human asset
Answer:
c) Current asset

Question 22.
Choose the appropriate answer from the bracket. (March 2014)
(Goods, Liabilities, Assets)
a) Things in which a business deals: __________
b) Things with which a business deals: __________
Answer:
a. Goods
b. Assets

Question 23.
Reliability is one of the qualitative features of accounting. Give two more such features. (March 2014)
Answer:
Relevance, Understandability, Timeliness, Comparability

Question 24.
In how many ways are assets classified? Mention these ways. (March 2014)
Answer:
Assets can be grouped under the following categories:

• Fixed Assets
• Current Assets
• Tangible Assets
• Intangible Assets
• Fictitious Assets
• Wasting Assets

Question 25.
Classify the following liabilities under appropriate heads. (March 2015)

1. Bills payable
2. Bank overdraft
3. Debentures
4. Creditors

Answer:

1. Bills payable – Current Liability
2. Bank overdraft – Current Liability
3. Debentures – Longterm Liability
4. Creditors – Current Liability

Question 26.
What do you mean by accounting? (March 2015)
Answer:
Accounting is an information system which receives data, inputs, processes the same, and gives its output in the form of information which is useful for decision making.

Question 27.
The creditors and bankers need qualitative accounting information for taking appropriate decisions. What qualitative features do they expect in accounting information? (March 2015)
Answer:
Reliability, Relevance, Understandability, comparability, and timeliness.

Question 28.
Write any three objectives of accounting. (March 2015)
Answer:
Objectives of Accounting

• Facilitate maintenance of business records
• Ascertainment of profit or loss
• Ascertainment of financial position
• Providing information to users.

Question 29.
Pick out the wrong pair. State the reason. (Say 2015)
a) Patent, Copyright
b) Stock, Debtors
c) Salary, Rent
d) Cash, Furniture
Answer:
d) Cash, furniture

Question 30.
Find the odd one and state the reason. (March 2016)
a) Debtors
b) Creditors
c) Cash at bank
d) Stock
Answer:
b) Creditors
All others are current assets, this is a current liability.

Question 31.
Which of the following is NOT a business transaction? (March 2016)
a) Bought motorcar for business Rs. 1,00,000
b) Paid employee’s salary Rs. 1,000
c) Paid sons’ fees from business Rs. 2,000
d) Paid sons’ fees from his personal account Rs. 2,000
Answer:
d) Paid sons’ fees from his personal account Rs.2,000

Question 32.
Saritha, dealing in stationery items, purchased an alamarah for 34,000 and also purchased stationery items like pen, pencil, paper, etc for Rs. 10,000. (March 2016)
a) Which of the above transactions is a capital expenditure?
b) Distinguish between capital expenditure and revenue expenditure.
Answer:
a) Purchase of Alamarah
b)

Question 33.
Things or properties of value are called _______ (Say 2016)
a) assets
b) liabilities
c) capital
d) revenue
Answer:
a) assets

Question 34.
Accounting means recording of _______ (March 2017)
a) economic transactions
b) economic events
c) both options a & b
d) neither options a & b
Answer:
c) both options A and B

Question 35.
Vinod took a loan of Rs. 1,00,000 from Canara Bank. Identify the debtor in the above transaction. (March 2017)
Answer:
Vinod – Debtor

Question 36.
Accounting possesses certain qualitative features. List them. (March 2017)
Answer:
Qualitative features of accounting are
a) Reliability
b) Relevance
c) Understandability
d) comparability

Question 37.
Classify the following assets under appropriate heads. (March 2017)
a) Cash
b) Machinery
c) Land
d) Stock
Answer:
Fixed Assets – Machinery
Current Assets – Cash

Students can Download Chapter 10 IT Applications Notes, Plus One Computer Application Notes helps you to revise the complete Kerala State Syllabus and score more marks in your examinations.

Kerala Plus One Computer Application Notes Chapter 10 IT Applications

E-Governance
The integration of computers and communication technology for the benefit of government functions to the public is termed as E-Governance by this Govt can serve the public in a convenient, efficient, and transparent manner.

Types of interactions in e-Governance facilitate interaction between different Stakeholders in governance

• Government to Government(G2G): Electronically exchanging data or information among Government agencies, departments, or organizations.
• Government to Citizens(G2C): Exchange information between Government and Citizens
• Government to Business(G2B): Interaction between the Government and Businessmen.
• Government to Employees(G2E): The exchange of information between the Government and its employees

E-Government infrastructure
a) State Data Centre(SDC): It is used for providing e-Governance to Government agencies(G2G), Citizens(G2C), Business persons(G2B) by National e-Governance Plan(NeGP). The services are

b) Kerala State Wide Area Network(KSWAN)
It is envisaged to be the core common network infrastructure for e-Governance and the State Information Infrastructure(SII), connecting Thiruvananthapuram, Kochi, and Calicut. It acts as the backbone of SII.

c) Common Service Centre(CSC): These are the web-enabled points of the government, private, and social sector services. They provide services such as Agriculture, Health, Banking, Educational, Entertainment, Commercial, Transport services for the rural citizens of India. In Kerala, Akshaya centers are working as CSC.

Akshaya centers: These were launched in 2002 in the Malappuram Dist. In Kerala by the project of Kerala State Information Technology Mission(KSITM). Its aim is to provide services such as e-grants, e filing, e district, e-ticketing, ration card application, voter Id application, insurance, and Banking to the peoples of Kerala.

Benefits of E-governance: Its main aim is to provide better service to the people at any time and place with high speed. In the modern world, it is very helpful and convenient for people.

• It enables automation of Govt, services
• It ensures the participation of citizens hence strengthen the democracy
• It ensures more transparency hence eliminates corruption
• It enhances the responsibilities of various Govt. Departments
• Its proper implementation saves time and money of the people by avoiding unnecessary visits to offices.

Challenges to E-Governance

• Due to lack of e-Literacy, there is difficulty to access the service of E-Governance.
• High-security measures are required because of the possibility of cyberattacks.
• Implementation and maintenance requires a huge amount and planning
• Some people refuse to give personal information due to anxiety
• Various Departments’ integration is needed for the efficiency and effectiveness of e- Governance

Useful E Governance websites

E-business(electronic Business): Providing services or running a business through the internet is called E-business.

e-commerce and e-business: Both are different. E-commerce means Electronic commerce. It includes the exchange of goods or services through the internet that involves the exchange of money whereas e-Business includes activities to run a business.

Electronic Payment System(EPS): It is also called plastic money that is electronically exchanging money between two individuals or firms(buyers and sellers) in, an online environment.

E-banking (Electronic Banking): Through electronic channels doing all the banking activities at any time and place through the internet.

Advantages of e-business:

• It overcomes geographical limitations
• It reduces the operational cost
• It minimizes the time and cost
• It remains open all the time
• We can locate the product faster from a wider range of choices

Challenges to E-business

• Peoples are unaware of IT applications and its uses
• Most peoples don’t have plastic money(credit/debit card) and net banking
• It requires high-security measurements otherwise you may lose money
• We can’t touch or smell products through online
• Some companies may not have proper Goods delivery service.

Useful e-Business websites

Learning: It is the use of electronic media(lt includes text, audio, video, image, animation, etc), educational technology(lt includes Satellite TV, CD ROM, Computer Based Learning, etc) and information and communication technologies(ICT- it uses intranet/extranet and web-based learning) in education.

e-Learning tools

• Electronic books reader(eBooks): With the help of a tablet or portable computer or any other device we can read digital files by using an s/w is called electronic books reader.
• e-text: The electronic format of textual data is called e-Text.
• Online chat: Real-time exchange of text or audio or video messages between two or more people over the Internet.
• e-Content: The data or information such as text, audio, video, presentations, images, animations etc, are stored in electronic format.
• Educational TV channels: TV channels dedicated only for the e-Learning purpose.
  Eg. VICTERS (Virtual Classroom Technology on Edusat for Rural Schools OR Versatile ICT Enabled Resources for Students)

Advantages of E-Learning :

• It can offer a variety of courses to a large number of students from distant locations.
• It saves journey time and money, instructor fees, etc.
• People can enjoy e-Learning at a lower cost
• It enables people to do courses conducted by national or international institutions.

Challenges to e-Learning

• Face to face contact between student and teachers is not possible
• Proper interaction is limited lack of infrastructure facilities
• Its implementation requires a computer and high-speed Internet
• The pupil may not get the proper motivation
• It does not provide a real lab facility

Useful e-Learning websites

ICT applications in health care
In the field of medicine and healthcare computers play a very important role. Such as diagnosing diseases, monitoring patients during surgery etc.

Medical equipment: Most of the medical equipment such as CT scanner, MRI scanner, Ultra Sound scanner, ECG, ECHO test, TMT, etc work with the help of computers

Electronic Medical Record(EMR): It is a digital version of a paper chart that contains all of a patient’s medical history from one practice. An EMR is mostly used by doctors for diagnosis and treatment.

Web-based support/diagnosis
Internet is used by the doctors to acquire information to diagnose and give treatment to the patients who are suffering from diseases,

Telemedicine:
With the help of Tele-Medicine, equipment doctors and nurses can examine patients in remote locations by monitoring the patient conditions such as BP, temperature etc., and give the correct medical treatment. Telemedicine is implemented with a telephone line and a computer.

Research and development:
Computers play an inevitable role in almost every branch of science and engineering. The role of computers in different fields of research and development is unavoidable. The most complex genetic problem may be evaluated with the help of computers easily and can simulate the actual systems using a computer. The computers help in diagnosis, treatment of patients and better running of hospitals

ICT enabled services:
Business Process Outsourcing(BPO): A business firm’s main aim is to increase the profit by reducing the expenditure for this some works are transferred to other contractors(manpower supply company common in other countries). The parent company is not responsible to such employees but the work will be carried out smoothly.

Knowledge Process Outsourcing(KPO): It is a form of outsourcing. Here the main job is knowledge and information related that is carried out by a third party company.

Call center: It is a third party company and its main aim is to serve the public for the payment of bills, purchase of goods, doubt clearance, etc. Here Telephone facility is set up to handle incoming and outgoing calls about goods or services for an organization.

Teleconferencing: It is a way of conferring, discussing or communicating by audio and video circuits, by a group of people located in geographically distributed areas. There are two types of conferencing video and audio. In audio conferencing, the participants can’t see each other but only hear the voices of one another.

Video conferencing: It is a type of Teleconferencing. The participants can see each other live on-screen and can speak to each other with the help of teleconferencing. They must.be sit in conference rooms connected through a teleconference system(A video camera and a speakerphone are connected to a computer with an Internet connection).

Students can Download Chapter 9 Internet Notes, Plus One Computer Application Notes helps you to revise the complete Kerala State Syllabus and score more marks in your examinations.

Kerala Plus One Computer Application Notes Chapter 9 Internet

History of the Internet: the Internet means an international network of networks. The first form of Internet is ARPANET(Advanced Research Project Agency Network) started by the US Department of Defence for their military during 1970’s. In 1989 a team lead by Tim Berners Lee introduced WWW(World Wide Web) by using the protocol HTTP. In 1998, the Internet Corporation for Assigned Names and Numbers (ICANN) was established.

Internet: It is a network of networks. It means that the international network. We can transfer information between computers within nations very cheaply and speedily.

Intranet: A private network inside a company or organisation is called an intranet.
Extranet: It allows vendors and business partners to access the company resources.

The hardware and software requirements for the internet.

• A computer with a modem (internal/external)
• A telephone connection
• An account with an ISP
• A browser S/W eg: Internet ExplorerorMozilla…

Types of connectivity
There are two ways to connect to the internet. First one dialing to an ISP’s computer or with a direct connection to an ISP.

Dial-up Connection: Here the internet connection is established by dialing into an ISP’s computer. If ISP is not busy they verify the user name and password if it is valid they will connect our computer to the internet.lt uses Serial Line Internet Protocol (SLIP) or Point to Point Protocol (PPP). It is slower and has a higher error rate.

Direct connection: In direct connection, there is a fixed cable or dedicated phone line to the ISP. Here it uses ISDN (Integrated Services Digital Network) a high-speed version of a standard phone line. Another method is leased lines that uses fibre optic cables. Digital Subscribers Line (DSL) is another direct connection, this uses copper wires instead of fibre, optic for data transfer. Direct connection provides high-speed internet connection and error rate is less. Fibre To The Home(FTTH) uses optical fibers for data transmission.

Wireless broadband connectivity
a) Mobile broadband: Accessing the Internet using wireless devices like mobile phones, tablet, USB dongles.

b) Wi-MAX(Wireless Microwave Access): It uses microwaves to transmit information across a network in a range 2 GHz to 11 GHz over very long distance.

c) Satellite broadband: Accessing internet through satellite. A Very Small Aperture Terminal(VSAT) dish antenna and transceiver and modem are required at the user’s location. Expensive and high speed.

Internet access sharing methods:
One Internet connection can be shared among several computers using a LAN, Wi-Fi or Li-Fi
a) Using LAN: The Internet connection in a LAN can be shared among other computers in the network

b) Using Wi-Fi (Wireless Fidelity): It uses radio waves to transmit information across a network in a range of 2.4 GHz to 5 GHz in short distance. Nowadays this technology is used to access the internet in campuses, hypermarkets, hotels by using Laptops, Desktops, tablet, mobile phones etc

c) Using Li-Fi(Light Fidelity) network: It is a fast optical(uses visible light for data transmission) version of Wi Fi. Its main component is a LED. lamp that can transmit data and a photodiode that acts as a receiver.

Services on the Internet
a) www – World Wide Web – This means this website address is unique and can be accessed each nook and corner of the world.

b) A browser is a piece of software that acts as an interface between the user and the internal working of the. internet. With the help of a browser the user can search information on the internet and it allows user to navigate through the web pages. The different browsers are

• Microsoft internet explorer
• Mozilla Firefox
• Netscape Navigator
• Google Chrome
• Opera

c. Web Browsing:

1. The browser determines the URL entered.
2. The browser asks the DNS for URLS corresponding IP address (Numeric address)
3. The DNS returns tne address to the browser.
4. The browser makes a TCP connection using the IP address.
5. then it sends a GET request for the required file to the server.
6. The server collects the file and send it back to the browser.
7. The TCP connection is released.
8. The text and the images in the web pages are displayed in the browser.

Search engines
By using search engines we will get a variety of information. It is a newly developed tool that helped to search the information on the internet more effectively and easily. Search engines are programs that help people to locate information from crores of website on internet using a database that consists of references. Users can interact with the search engine through the home page of the search engine. To get the information about artificial intelligence just type this in the box provided for it and click the search button. Search engines searches by using a particular search algorithm then displays the matching documents or web addresses. Search engine use soft wares called spiders or bots to search documents and their web addresses. Spiders search the internet using the directions given by the search engines and prepare an index and stores it in a database. The searching algorithm searched this database when the users submits a request and create a web page displaying the matching results as hyperlinks.
Eg: Google, Yahoo, Rediff etc.

Email(Electronic mail) : It is used to send text, multimedia messages between computers over internet. An example of an email id is [email protected]. Here jobi_cg is the user name, rediffmail is the website address and .com is the top-level domain which identifies the types of the organisation. To send an email we require an email address. Some websites provide free email facility. To send an email first type the recipient’s address and type the message then click the send button. The website’s server first check the email address is valid, if it is valid it will be sent otherwise the message will not be sent and the sender will get an email that it could not deliver the message. This message will be received by the recipient’s server and will be delivered to the recipient’s mailbox. He can read it and it will remain in his mailbox as long as he will be deleted. Simple Mail Transfer Protocol(SMTP) is used.

The email message contains the following fields.

1. To: Recipient’s address will be entered here. Multiple recipients are also allowed by using coma.
2. CC: Enter the address of other recipients to get a carbon copy of the message.
3. bcc: The address to whom blind carbon copies are to be sent. This feature allows people to send copies to third recipient without the knowledge of primary and secondary recipients.
4. From: Address of the sender
5. Reply to: The email address to which replies are to be sent.
6. Subject: Short summary of the message.
7. Body: Here the actual message is to be typed.

The advantages of email are given below:

• Speed is high
• It is cheap
• We can send email to multiple recipients
• Incoming messages can be saved locally
• It reduces the usage of paper
• We can access the mailbox anytime and from anywhere.

The disadvantages are:

• It requires a computer, a modem, software, and an internet connection to check the mail.
• Some mails may contain viruses
• Mailboxes are filled with junk mail. So very difficult to find the relevant mail.

a. Social media: Various social media are Internet forums, social blogs, microblogs etc.

1. Internet forums: It is an online discussion site where people can exchange information about various issues like social, political, educational, etc in text form.
2. Social blogs: Conducting discussions about particular subjects by entries or posts.
   Eg. Blogger.com
3. Microblogs: It allows users to exchange short messages, multimedia files etc.
   Eg. www.twitter.com
4. Wikis: In this, we can give our contributions regarding various topics.
   Eg. www.wikipedia.org
5. Social networks: By using these websites we can post our data and view others’ data.
   Eg. www.facebook.com
6. Content communities. By using these websites we can share multi-media files.
   Eg. www.youtube.com

b. Advantages of social media.

• Bring people together: It allows people to maintain the friendship
• Plan and organize events: It allows users to plan and organize events.
• Business promotion: It helps the firms to promote their sales.
• Social skills: There is a key role of the formation of society.

c. Disadvantages.

• Intrusion to privacy: Some people may misuse personal information.
• Addiction: sometimes it may waste time and money.
• Spread rumours: The news will spread very quickly and negatively.

Cyber Security: It is used to provide protection of valuable information such as credit card information from unauthorized access, intentional access, deletion etc. while shopping on the internet.

Computer virus: A virus is a bad program or harmful program to damage the routine working of a computer system. It reduces the speed of a computer. It may delete the useful system files and make the computer useless.

Worm: It is a stand-alone malware program that replicates itself in order to spread to other computers. It slows down the traffic by consuming the bandwidth. In 2000 a worm called “ILOVEYOU” is affected by many computers.

Trojan horse: It appears as useful software but it is harmful software and it will delete useful software or files.

Spams: Sending an email without the recipient’s consent to promote a product or service is called spamming. Such an email is called spam.

Hacking: It is a process of trespassing computer networks. Two types of white hats and black hats. White hats hack the computer networks to test the security but black hats intentionally stealing valuable data or destroying data.

Phishing (Fishing): It is an attempt to get other information such as usernames, passwords, bank a/c details etc by acting as the authorized website. Phishing websites have URLs and home pages similar to their original ones and mislead others it is called spoofing.

Denial of Service(DoS) attack: Its main target is a Web server. Due to this attack, the Web server/computer forced to restart and this results in refusal of service to the genuine users. If we want to access a website first you have to type the website address in the URL and press the Enter key, the browser requests that page from the webserver. Dos attacks send a huge number of requests to the web server until it collapses due to the load and stop functioning.

Man in the Middle attacks: It is an attack in which an attacker secretly intercepts electronic messages sent by the sender to the receiver and then modifies the message and retransmit it to the receiver. To prevent this type, of attack encrypted connections such as HTTPS(HTTP Secure), SFTP(Secure FTP), etc, must be used, which will be displayed in the URL.

Preventing network attacks
Firewall: It is a system that controls the incoming and outgoing network traffic by analyzing the data and then provides security to the computer network in an organization from another network (internet)

Antivirus scanners: It is a tool used to scan computer files for viruses, worms, and Trojan horses and cure the infected system. If any fault found it stops the file from running and stores the file in a special area called Quarantine(isolated area) and can be deleted later.

Cookies: Cookies are small text files that are created when we visit a website that keeps track of our details. This information will help the hacker to use it for malicious purposes. It acts like spyware.

Guidelines for using computers over the internet

• Emails may contain Viruses so do not open any unwanted emails
• Download files from reputed sources(sites)
• Avoid clicking on pop-up Advt.
• Most of the Viruses spread due to the use of USB drives so use cautiously.
• Use a firewall in your computer
• Use anti-virus and update regularly
• Take backups in regular time intervals

Students can Download Chapter 8 Computer Networks Notes, Plus One Computer Application Notes helps you to revise the complete Kerala State Syllabus and score more marks in your examinations.

Kerala Plus One Computer Application Notes Chapter 8 Computer Networks

Computer network: Two or more computers connected through a communication media that allows the exchange of information between computers is called a Computer Network.
Eg: Internet

Need for network
The advantages of Networks are given below.

1. Resource sharing: All the computers in a network can share software (programs, data ) and hardware (printer, scanner, CD drive, etc.).
2. Reliability: If one computer fails, the other computer can perform the work without any delay. This is very important for banking, air traffic control, and other application.
3. Price Vs Performance: A mainframe computer can be 10 times faster than a PC but it costs a thousand times a PC. Therefore instead of a mainframe 10 personal computers are used with less cost and the same performance.
4. Communication Medium: It is a powerful communication medium. We can exchange information between computers in a network.
5. Scalable: This means, System performance can be increased by adding computers to a network.

Terminologies
Bandwidth: The maximum amount of data that can be transmitted by the medium measured in Hertz.
Noise: It is the unwanted electrical or electromagnetic interferences that adversely affect the transmitted data signals.
Node: A computer or an I/O device connected to a network is called Node.

Data communication system
Communication is the exchange of information between two human beings. But data communication is the exchange of information between two computers(devices).
Message: It is the data/information to be transmitted from one computer to another
Sender: It is a computer or a device that sends data. It is also called source or transmitter
Receiver: It is a computer or a device that receives data.
Medium: It is the path through which a message transmitted from the sender to the receiver. There are two types Guided and Un Guided media. Protocol: The rules and conventions for transmitting data.

Communication Medium – There are two types guided and unguided.
Guided Media

1. Twisted Pair cable – 2 types unshielded twisted pair and shielded twisted pair. Two copper wires individually insulated and twisted around each other and put in a plastic cover.
2. Coaxial cable – A sturdy copper wire is insulated by plastic, it is covered just like a mesh by a conductor which is enclosed in a protective plastic coating. It is expensive, less flexible and more difficult to install. But it is more reliable and carry for higher data rates.
3. Optical fiber – These are made of glass fibers that are enclosed in a plastic jacket. It uses light instead of electrical signals. The light sources are LED or ILD.

Unguided Media

1. Radio waves – It transmits data at different frequencies ranging from 3 KHz. to 300 GHz.
2. Microwaves – Microwave signals can travel in straight line if there is any obstacle in its path, it can’t bend. So it uses tall towers instead of short one.
3. Infrared waves – These waves are used for transmitting data in short distance and its frequency range is 300 GHz to 400 GHz.

Wireless communication technologies using radio waves

1. Bluetooth: This technology uses radio waves in the frequency range of 2.402 GHz to 2.480 GHz. And transmit data in a short distance. Mobile phones, Laptops, tablets etc use Bluetooth technology to transmit data.
2. Wi-Fi(Wireless Fidelity): It uses radio waves to transmit information across a network in a range 2.4 GHz to 5 GHz in a short distance. Nowadays this technology is used to access internet in Laptops, Desktops, Tablets, Mobile phones etc.
3. Wi-MAX(Wireless Microwave Access): It uses micro waves to transmit information across a network in a range 2 GHz to 11 GHz over very long distance.
4. Satellites: By using satellites we can communicate from any part of the world to any other. The ground stations are connected via satellite. The data signals transmitted from earth to satellite (uplink) ahd from the satellite to the earth (downlink).

Data communication devices: It acts as an interface between computer and the communication channel

Network Interface Card (NIC): This device enables a computer to connect to a network and transmit information.

Hub: It is a small, simple and inexpensive device used to connect computers(devices) to a network. If a computer wants to transmit data to another computer. First it sends to the hub, the hub retransmits this data to all other computers. Each and every computer gets the data and check whether it is for them or not. It increases the network traffic and hence the transmission speed is low.

Switch: It is an expensive device used to connect computers(devices) to a network. Unlike a hub, switch transmit data not to all computers, it retransmits data only to the intended computer. So the traffic is less and speed is high

Repeater – It is a device used to strengthen weak signals on the network.

Bridge – It is a device used to link the same type of network.

Router – It is similar to a bridge, but it can connect two networks with different protocols.

Gateway – It is used to connect two different networks with different protocols.

Data terminal equipment: This device are used to control data flow to and from a computer

Modem – It is a device used to connect the computer to the internet. It converts the digital signal into an analog signal (modulation) and vice versa (Demodulation)

Multiplexer – It combines the inputs from different channels of a medium and produces one output.

Network topologies: Physical or logical arrangement of computers on a network is called structure or topology. It is the geometrical arrangement of computers in a network. The major topologies developed are star, bus, ring, tree, and mesh.

1. Star Topology: A star topology has a server all other computers are connected to it. If computer A wants to transmit a message to computer B. Then computer A first transmit the message to the server then the server retransmits the message to computer B. That means all the messages are transmitted through the server. Advantages are added or remove workstations to a star network is easy and the failure of a workstation will not affect the other. The disadvantage is that if the server fails the entire network will fail.

2. Bus Topology: Here all the computers are attached to a single cable called bus. Here one computer transmits all other computers listen. Therefore it is called a broadcast bus. The transmission from any station will travel in both the direction. The connected computers can hear the message and check whether it is for them or not.
Advantages are added or remove a computer is very easy. It requires less cable length and the installation cost is less. The disadvantage is fault detection is very difficult because of no central computer.

3. Ring Topology: Here all the computers are connected in the shape of a ring and it is a closed-loop. Here also there is no central computer. Here a computer transmits a message, which is tagged along with its destination computer’s address. The message travels in one direction and each node check whether the message is for them. If not, it passes to the next node.
It requires only short cable length. If a single node fails, at least a portion of the network will fail. To add a node is very difficult.

4. Hybrid Topology: It is a combination of any two or more network topologies. Tree topology and mesh topology can be considered as hybrid topologies.

a) Tree Topology: The structure of a tree topology is the shape of an inverted tree with a central node and branches as nodes. It is a variation of bus topology. The data transmission takes place in the way as in bus topology. The disadvantage is that if one node fails, the entire portion will fail.

b) Mesh Topology: In this topology, each node is connected to more than one node. It is just like a mesh (net). There are multiple paths between computers. If one path fails, we can transmit data through another path.

Types of networks
The networks are classified into the following based upon the amount of geographical area that covers.
i) Personal Area Network(PAN): It is used to connect devices situated in a small radius by using guided media or unguided media

ii) Local Area Network (LAN): This is used to connect computers in a single room, rooms within a building, or buildings of one location by using twisted-pair wire or coaxial cable. Here the computers can share hardware and software. The data transfer rate is high and the error rate is less.
eg: The computers connected in a school lab.

iii) Metropolitan Area Network (MAN): A Metropolitan Area Network is a network spread over a city. For example a Cable TV network. MAN has a lesser speed than LAN and the error rate is less. The here optical fiber cable is used.

iv) Wide Area Network (WAN): This is used to connect computers over a large geographical area. It is a network of networks.
Here the computers are connected using telephone lines or Micro Wave stations or Satellites. Internet js an example for this. LAN and MAN are. owned by a single organization but WAN is owned by multiple organizations. The error rate in data transmission js high. ,

Logical classification of networks
Peer to peer: In this configuration, all the computers have equal priority. That means each computer can function as both a client and a server. There is no dedicated server.

Client-Server: In this configuration, a computer is powerful which acts as a dedicated server and all others are clients (work stations). A Server fulfills the needs of the clients.

• File Server: A computer that stores and manages files for other devices on a network
• Web Server: A computer that handles the requests for web pages.
• Print Server: A computer that handles the print jobs from other computers on a network.
• Database Server: A computer that manages the database.

Network protocols
A protocol is a collection of rules and regulations to transfer data from one location to another. Transmission Control Protocol (TCP), which uses a set of rules to exchange messages with other Internet points at the information packet level. Internet Protocol (IP), which uses a set of rules to send and receive messages at the Internet address level

FTP – File Transfer Protocol which is used for transferring files between computers connected to local network or internet.
HTTP – is a protocol used for WWW for enabling the web browse to access web server and request HTML documents.
DNS (Domain Name System): When we type web sites address in the address bar , the browser determines the URL and asks the DNS for URLS corresponding IP address (Numeric address). The DNS returns the address to the browser.

Identification of computers over a network: A computer gets a data packet on a network, it can identify the sender’s address easily. It is similar to our snails mail, each letter is stamped in sender’s post office as well as receiver’s post office.

Media Access Control(MAC) address. It is a unique 12 digit hexadecimal number (IMEI for mobile phones, it is a 15 digit decimal number) assigned to each NIC by its manufacturer. This address is known as MAC address and its permanent.
It is of the form. MM:MM:MM:SS:SS:SS.
The first MM:MM:MM contains the ID number of the adapter company and the second SS:SS:SS represents the serial number assigned to the adapter by the company.

Internet Protocol (IP) address: An IP address has 4 parts numeric address. Each parts contains 8 bits. By using 8 bits we can represent a decimal number between 0 to 255(28=256 numbers). Each part is separated by dot. A total of 4*8=32 bits used. But nowadays 128 bits are used for IP address.

Uniform Resource Locator(URL): Every resource on the internet has a unique URL. Mainly it has three parts
Eg: http://www.hscap.kerala.gov.in/index.html.
http: http means hyper text transfer protocol. It is a protocol used to transfer hyper text.
www: World Wide Web. With an email address we can open our mail box from anywhere in the world.
hscap.kerala: It is a unique name. It is the official website name of Single Window System
gov: It is the top-level domain. It means that it is a government organization’s website.
in: It is the geographical top-level domain. It represents the country, in is used for India.
index.html: It represents the file name.

TOP Level Domain Names

• .com – The site register for commercial purpose
• .edu – The site register for educational purpose
• .gov – The site register by Government agencies
• .mil – The site register for military services
• .net – The site register for network purpose
• .org – The site register by organizations

Country Specific Domain Names

• .in – India
• .au – Australia
• .ca – Canada
• .ch – China
• .jp – Japan
• .us – United States of America

Students can Download Chapter 7 Control Statements Notes, Plus One Computer Application Notes helps you to revise the complete Kerala State Syllabus and score more marks in your examinations.

Kerala Plus One Computer Application Notes Chapter 7 Control Statements

These are classified into two decision making and iteration statements

Decision-making statements:
if statement:
Syntax: if (condition)
{
Statement block;
}
First, the condition is evaluated if it is true the statement block will be executed otherwise nothing will happen.

if… else statement:
Syntax: if (condition)
{
Statement block1;
}
Else
{
Statement block2;
}

Nested if
An if statement contains another if statement completely then it is called nested if.
if (condition 1)
{
if (condition 2)
{
Statement block;
}
}
The statement block will be executed only if both the conditions evaluated are true.

The else if ladder: The syntax will be given below
if (expression 1)
{
statement block 1;
}
else if (expression 2)
{
statement block 2;
}
else if (expression 3)
{
statement block 3;
}
else
{
statement block n;
}

Here firstly, expression 1 will be evaluated if it is true only the statement block1 will be executed otherwise expression 2 will be evaluated if it is true only the statement block 2 will be executed and so on. If all the expression evaluated is false then only statement block n will be executed

switch statement:
It is a multiple branch statement. Its syntax is given below.
switch(expression)
{
case value: statements;break;
case value: statements;break;
case value: statements;break;
case value: statements;break;
case value: statements;break;
…………..
default: statements;
}

First expression evaluated and selects the statements with matched case value. If all values are not matched the default statement will be executed.

Conditional operator: It is a ternary operator hence it needs three operands. The operator is ?:. Syntax: expression ? value if true : value if false. First evaluates the expression if it is true the second part will be executed otherwise the third part will be executed.

Iteration statements: If we have to execute a block of statements more than once then iteration statements are used.

while statement
It is an entry controlled loop. An entry controlled loop first checks the condition and execute(or enters in to) the body of loop only if it is true. The syntax is given below
Loop variable initialised
while(expression)
{
Body of the loop;
Update loop variable;
}

Here the loop variable must be initialised before the while loop. Then the expression is evaluated if it is true then only the body of the loop will be executed and the loop variable must be updated inside the body. The body of the loop will be executed until the expression becomes false.

for statement
The syntax of for loop is
for(initialization; checking ; update loop variable)
{
Body of loop;
}

First part, initialization is executed once, then checking is carried out if it is true the body of the for loop is executed. Then loop variable is updated and again checking is carried Out this process continues until the checking becomes false. It is an entry controlled loop.

do – while statement: It is an exit controlled loop. Exit control loop first execute the body of the loop once even if the condition is false then check the condition.
do
{
Statements
} while(expression);

Here the body executes at least once even if the condition is false. After executing the body it checks the expression if it false it quits the body otherwise the process will continue.