Accountancy

Question 1

Trade discount??
Cash discount??

Answer 1

Trade discount– bulk purchase
Cash discount – immediate payment

Question 2

1)Sales book is not equal to??

2)Purchase book is not equal to??

Answer 2

1) Sales book is not equal to SALES A/C

2) Purchase book is not equal to PURCHASE A/C

Question 3

Difference between accountancy ,accounting and book keeping??

Answer 3

Book keeping– journal
Ledger
Trial balance
Accounting– Final A/Cs (starts where book keeping ends)
Accountancy– includes accounting and book keeping (Subject)

Question 4

To pass any journal entry for businessman we use 2 accounts to dedicate him. What are they??

Answer 4

Capital and drawings

Question 5

Journal entry for Interest on capital??

Answer 5

Interest on capital a/c dr
To capital a/c

Question 6

Journal entry for interest on drawings??

Answer 6

Drawings a/c dr
To interest on drawings a/c

Question 7

Journal entry for Purchase return??

Answer 7

Supplier a/c dr.
To purchase return a/c

Question 8

Journal entry for sales return??

Answer 8

Sales return a/c dr
To Customer a/c

Question 9

Expense on purchase??
Expense on sale??

Answer 9

Purchase— Inward expense
Sale— Outward expense

Question 10

Accrued income

Answer 10

Earned but not yet received

Question 11

(BOE)
what is a foreign bill?

Answer 11

A bill which is drawn in one country and payable in another country.

Question 12

Bill drawn on 1 Jan 2023 payable after 3 months. What’s the due date
As well tell its 3 days before date

Answer 12

Due date– 4/4/23 (4 april) (3 days grace period included)
3 days before date— 1/4/23 (1 april)

Question 13

Facts that are generally noted by notary

Answer 13

1) date,fact and reason of dishonor
2) if the bill is not expressly dishonored the reason why he treats it as dishonor
3) the amount of noting charges

Question 14

Why closing stock is not recorded in trial balance??

Answer 14

Different Accounts are recorded in trial balance bcz they all have journal entries and have ledger accounts but closing stock doesn’t have its ledger accounts and that’s why it is written separately and not in trial balance

(Trial Balance is prepared through ledger accounts)

Note— Closing stock’s 1st time entry is recorded when it’s credited in trading a/c

Question 15

Adjustments of closing stock.

Answer 15

1)COGS case mai

2) When adjusted purchase is given in trial balance then closing balance will also appear in trial balance
And then closing stock is not written in trading a/c and directly to b/s

3) GP/GL ke case mai

And 3 cases mai closing stock seedha B/S mai aayega not in trading a/c