Maharashtra Board 11th BK Important Questions Chapter 2 Meaning and Fundamentals of Double Entry Book-Keeping

Balbharti Maharashtra State Board 11th Commerce Book Keeping & Accountancy Important Questions Chapter 2 Meaning and Fundamentals of Double Entry Book-Keeping Important Questions and Answers.

Maharashtra State Board 11th Commerce BK Important Questions Chapter 2 Meaning and Fundamentals of Double Entry Book-Keeping

1. Answer in one sentence only.

Question 1.
State the meaning of the accounting equation.
Answer:
An equation that indicates or shows that the total assets of a business are always equal to the total liabilities of a business plus capital is called the accounting equation.

Question 2.
What do you mean by debt?
Answer:
To debit an account means to enter the entry or write on the left-hand side of an account.

Question 3.
Give two examples of personal accounts.
Answer:
Two examples of personal accounts are stated below:

1. Mr. Raghuvir Sharma’s Account
2. The Bank of India’s Account.

Question 4.
What is a Nominal Account?
Answer:
The account relating to business expenses, incomes, and gains is called a nominal account.
e.g. Rent A/c.

Question 5.
Give two examples of real accounts.
Answer:
Two examples of real accounts are:

1. Cash A/c
2. Goodwill A/c

Question 6.
State whether drawings increase or decrease owner’s equity.
Answer:
Drawings made by the owner of the business decrease its equity.

Question 7.
What is a conventional cash book?
Answer:
A cash book that is prepared to record not only cash transactions but all types of transactions such as credit purchase or sale, banking transactions, opening, and closing entries, adjustments entries is called a conventional cash book.

Question 8.
Explain the term dual aspect.
Answer:
Every transaction has two aspects i.e. for every debit there is corresponding and equal credit.

Question 9.
State the meaning of impersonal account.
Answer:
The account which is not of a person is called an impersonal account.

Question 10.
Write the rule of Real account.
Answer:
The rule of real account states that Debit what comes in and Credit what goes out.

Question 11.
Which account will be debited when goods are sold to Ram on credit?
Answer:
When goods are sold to Ram, Ram’s A/c will be debited.

Question 12.
Which account will be debited when Mr. Shyam has paid cash to you?
Answer:
Cash A/c will be debited when Mr. Shyam has paid cash to us.

2. Write one word/term or phrase which can substitute each of the following statements.

Question 1.
Expenses are paid before it is due.
Answer:
Prepaid Expenses

Question 2.
Income due but not yet received.
Answer:
Accrued Income

Question 3.
Carriage paid on the sale of goods.
Answer:
Carriage Outward

Question 4.
Statement of Assets & Liabilities.
Answer:
Balance Sheet

Question 5.
Account prepared to know Net Profit or Net Loss.
Answer:
Profit & Loss Account

Question 6.
Value of goods remaining unsold at the end of the year.
Answer:
Closing Stock

Question 7.
The provision was made to compensate the loss on account of likely debts.
Answer:
Provision for Bad & Doubtful Debts

Question 8.
The accounts are prepared at the end of the accounting year to know the profit or loss and financial position of the business.
Answer:
Final Accounts

Question 9.
An amount spent on promoting the sale of goods.
Answer:
Selling Expenses

Question 10.
Additional information is provided below the Trial Balance.
Answer:
Adjustments

3. Select the most appropriate alternatives from those given below and rewrite the statements.

Question 1.
___________ is excess of assets over liabilities.
(a) Goodwill
(b) Capital
(c) Investments
(d) Drawings
Answer:
(b) Capital

Question 2.
Discount earned is transferred to credit side of ___________ account.
(a) Current A/c
(b) Profit & Loss Account
(c) Trading
(d) Capital
Answer:
(b) Profit & Loss Account

Question 3.
___________ is a statement that shows the financial position of a business on a specific date.
(a) Trading account
(b) Trial Balance
(c) Profit & Loss A/c
(d) Balance Sheet
Answer:
(d) Balance Sheet

Question 4.
Outstanding expenses are shown on the ___________ side of Balance Sheet.
(a) Assets
(b) Liability
(c) Both
(d) None of these
Answer:
(b) Liability

Question 5.
Interest on Drawing is credited to ___________ Account.
(a) Trading
(b) Profit & Loss Account
(c) Capital
(d) All
Answer:
(b) Profit & Loss Account

Question 6.
Debit balance of Trading Account means ___________
(a) Gross Loss
(b) Net Loss
(c) Net Profit
(d) Gross Profit
Answer:
(a) Gross Loss

Question 7.
Carriage Inward is debited to ___________ Account.
(a) Trading A/c
(b) Profit & Loss
(c) Capital
(d) Bank
Answer:
(a) Trading A/c

Question 8.
Excess of credit over to debit in Profit & Loss Account indicates ___________
(a) Net Profit
(b) Gross Profit
(c) Gross Loss
(d) Net Loss
Answer:
(a) Net Profit

Question 9.
Closing stock is always valued at cost or market price which is ___________
(a) more
(b) less
(c) zero
(d) equal
Answer:
(b) less

Question 10.
When a specific date is not given, in that case, interest on the drawing is charged for ___________ month.
(a) Four
(b) Six
(c) Eight
(d) Nine
Answer:
(b) Six

4. Fill in the blanks.

Question 1.
Gross Profit is transferred to ___________ account.
Answer:
Profit & Loss Account

Question 2.
Debit Balance of Trading Account indicates ___________
Answer:
Gross Loss

Question 3.
Income Receivable appears on ___________ side of Balance Sheet.
Answer:
Asset

Question 4.
Interest on Bank Loan is debited to ___________ A/c.
Answer:
Profit & Loss Account

Question 5.
Profit and Loss Account is prepared to find out ___________ results of the business.
Answer:
Networking

Question 6.
All indirect/operating expenses are transferred to ___________ account.
Answer:
Profit and Loss Account

Question 7.
Interest of proprietor’s drawing is credited to ___________ account.
Answer:
Profit & Loss Account

Question 8.
An excess of debit over credit in the Profit & Loss A/c represents the ___________
Answer:
Net Loss

Question 9.
All direct expenses are transferred to ___________ account.
Answer:
Trading A/c

Question 10.
Balance Sheet is ___________ of assets & liabilities.
Answer:
Statement

5. Classify the following accounts under the types of Personal, Real, and Nominal accounts.

Question 1.
Investments A/c
Answer:
Real Account

Question 2.
Creditors A/c
Answer:
Personal Account

Question 3.
Land A/c
Answer:
Real Account

Question 4.
Purchase Returns A/c
Answer:
Personal Account

Question 5.
Cash A/c
Answer:
Real Account

Question 6.
Building A/c
Answer:
Real Account

Question 7.
Capital A/c
Answer:
Personal Account

Question 8.
Goodwill A/c
Answer:
Real Account

Question 9.
Interest received A/c
Answer:
Nominal Account

Question 10.
Depreciation A/c
Answer:
Nominal Account

Question 11.
Stationery A/c
Answer:
Nominal Account

Question 12.
Salary A/c
Answer:
Nominal Account

Question 13.
Excise duty A/c
Answer:
Nominal Account

Question 14.
Bank Loan A/c
Answer:
Personal Account

Question 15.
Bank Overdraft A/c
Answer:
Personal Account

Question 16.
Sales A/c
Answer:
Nominal Account

Question 17.
Return Inwards A/c
Answer:
Personal Account

Question 18.
Rent received A/c
Answer:
Nominal Account

Question 19.
Wages A/c
Answer:
Nominal Account

Question 20.
Discount received A/c
Answer:
Nominal Account

Question 21.
Debtors A/c
Answer:
Personal Account

Question 22.
Furniture & Fixtures A/c
Answer:
Nominal Account

Question 23.
Purchases A/c
Answer:
Nominal Account

Question 24.
Bad Debts A/c
Answer:
Nominal Account

Question 25.
Dadar Library A/c
Answer:
Personal Account

Question 26.
Rent paid A/c
Answer:
Nominal Account

Question 27.
Prepaid Insurance A/c
Answer:
Personal Account

Question 28.
Carriage Outwards A/c
Answer:
Nominal Account

Question 29.
Rent Receivable A/c
Answer:
Personal Account

Question 30.
Profit on sale of machinery A/c
Answer:
Nominal Account

Question 31.
Bills Payable A/c
Answer:
Personal Account

Question 32.
Bank of India A/c
Answer:
Personal Account

Question 33.
Carriage Inwards A/c
Answer:
Nominal Account

Question 34.
Stock A/c
Answer:
Real Account

Question 35.
Accrued Interest A/c
Answer:
Personal Account

Question 36.
Bank A/c
Answer:
Personal Account

Question 37.
12% Government Bonds A/c
Answer:
Real Account

Question 38.
Carriage A/c
Answer:
Nominal Account

Question 39.
Advertisement A/c
Answer:
Nominal Account

Question 40.
Conveyance A/c
Answer:
Nominal Account

Question 41.
Premises A/c
Answer:
Real Account

Question 42.
Octroi A/c
Answer:
Nominal Account

Question 43.
Postage A/c
Answer:
Nominal Account

Question 44.
Electricity Charges A/c
Answer:
Nominal Account