Question1) Answer all the questions.
(i) What is accounting cycle or process.
(ii) Write down the difference between ledger and posting?
(iii) What do you understand by T-accounts?
(iv) Write advantages of subsidiary books?
(v) Explain compound journal entry.
Question2) How accounting works as information system? Who are the difference users of accounting information?
Question3) What is trial balance? Write down the functions and limitations of trail balance?
Question4) On 1st Jan 2004 a business man purchased plant for Rs. 18,600 and paid Rs. 1200 for its erection. Estimated life is of 10 years and its residual value would be 2000. Create plant account for three years on fixed instalment method.
Question5) Answer all the questions.
(i) What is cost accounting?
(ii) What do you understand by accounting equation?
(iii) What is suspense account?
(iv) What is sales return book?
(v) Write the major advantages of journal.
Question6) Explain posting. What are the requirements of posting? Describe the rules for posting a transaction.
Question7) Briefly explain trial balance? Why it is prepared? Explain the importance of trial balance sheet.
Question8) From the following particulars, create bank reconciliation statement as on Dec. 31, 2012
a. Balance as per cash book Rs. 4200
b. Cheque issued but not presented for payment Rs. 2000
c. Cheque deposited but not collected Rs. 3000
d. Bank Charges debited by the bank Rs. 250