Account 1 Marks Question

Asset Account is a Real Account and thus the rule applicable is ‘Debit what Comes in, Credit what Goes out'. Increase in Asset means that the Asset has come in. Hence, the Asset is debited.

A cheque is an order in writing drawn upon a bank to pay a specified sum to the bearer or the person named in it.

Ledger Folio or L.F. is the page number of the ledger account where the posting has been made from the journal. This page number of the ledger is recorded in the journal.

Furniture Acccount will be debited with ₹ 20,000. Amount related to sale of furniture will be Credited to Furniture Account.

Cash decreases and so does the liability (creditor).

Cash paid to a creditor.

Drawings A/C	Dr.
To Purchases A/C

Total = Liabilities +
Assets Capital
= 80,000 + 1,40,000
= ₹ 2,20,000

1. CGST (Central Goods & Service Tax)
2. SGST (State Goods & Service Tax)

As transactions in journal are entered as and when they take place, the possibility of omission of a transaction in the books of account is minimised.

Capital Account is a Personal Account because it represents the Proprietor of the business who is a human being.

Accounting Voucher is prepared on the basis of source voucher after analysing and determining accounts to be debited and credited.

Credit Voucher is prepared when cash is received.

Amount received from a debtor.

He will not get any discount because he has not paid the full amount.

Machine Account.

Total Assets ₹ 7,00,000.

Non-cash vouchers (or transfer vouchers) are the documentary evidence of non-cash transactions.

An account is a ‘T'shape format having two sides. Left hand side is known as Debit (Dr.) and right hand side is known as Credit (Cr.).

₹ 1,00,000 will be deducted from Asset (Cash/Bank); Asset (Car) will be shown it 5,00,000 and Bank Loan (on the Liabilities side) will be shown at 4,00,000.

Cash increases and so does the capital.

It will result in cash being reduced and Machinery Account being increased.

Voucher is a document evidencing a business transaction. It flows from the above definition that when a transaction is entered into, an evidence to that effect is also established. Such evidences are Source Documents. On the basis of Source Documents, a voucher detailing the accounts that are debited and credited is prepared.

These are the accounts which are in name only and which do not really exist such as the accounts of all expenses and incomes.

Central Goods & Service Tax.

This is a form available from a bank and is used to deposit money in the bank. Each pay-in-slip has a counterfoil which is returned to the depositor duly stamped and signed by the cashier of the bank.

Assets = Liabilities + Capital

Debit Voucher.

It indicates the amount which is owing to the firm by a person. In other words, he is the debtor of the firm.

Capital Account is debited when there is a loss during the year and it is credited when there is a profit.

When the number of transactions is large, it is not possible to record all the transactions in Journal. It will become bulky and voluminous.

When an account represents a particular person or group of persons, it is termed as a representative personal account. For example, 'Outstanding Rent Account'.

An account is divided into two sides. The left side of an account is known as debit and the credit.

Proprietor is represented by Capital Account.

No, the accountant is not correct. The goods taken by the Proprietor should be credited to Purchase instead of Sales Account because the goods taken for personal use are recorded at cost and not on sale price.

Acceptance of Bills Payable.

It is an outstanding expense. It will be shown in the accounting equation as deduction from capital and as an Outstanding Expense on the Liabilities side.

Opening entry is a compound entry which carries forward all the balances of assets and liabilities of previous year to the current year.

Liability is a Personal Account and thus the rule applicable is 'Debit the receiver, Credit the giver'. Increase in Liability (suppose creditor) means that he has given goods or some other benefit. Hence Liability is credited.

The accounts of all those things whose value can be measured in terms of money and which are the properties of the business are termed as Real Accounts such as Cash Account, Furniture Account etc.

After each entry, a brief explanation of the transaction together with necessary details is given. This explanation is called ‘Narration’.

Creditors ₹ 6,00,000.

Balancing of an account means ascertaining the closing balance of a particular account on a particular date.

Cash Voucher is prepared at the time of receipt or payment of cash or cheque.

1. Personal Accounts.
2. Real Accounts.
3. Nominal Accounts.

Source documents ensure the truthfulness of the recorded transactions.

When the total of debit side of an account is more than the total of its credit side.

750,000 (Outside Liabilities = Total Assets - Capital).