Page No 6.16:
Question 1:
Following accounts are being
maintained in the books of Shri Ashok. Classify them
into Personal, Real and Nominal Accounts:
|
(i) Land and Building |
(vii)
Investments |
(xiv)
Ramesh, a debtor |
|
(ii)
Excise Duty |
(viii)
Salary |
(xv)
Interest Received |
|
(iii)
Creditors |
(ix)
Debtors |
(xvi)
Bank Overdraft |
|
(iv)
Capital |
(x)
Bad Debts |
(xvii)
Purchase Returns |
|
(v)
Motor Vehicles |
(xi)
Depreciation |
(xviii)
Drawings |
|
(vi)
Goodwill |
(xii)
Wages |
(xix)
Freight |
|
|
(xiii)
Repairs |
(xx)
Return Inwards. |
Answer:
|
Item |
Nature of Account |
|
Land
& Building |
Real
A/c |
|
Excise
Duty |
Nominal
A/c |
|
Creditors |
Personal
A/c |
|
Capital |
Personal
A/c |
|
Motor
Vehicles |
Real
A/c |
|
Goodwill |
Real
A/c |
|
Investments |
Real
A/c |
|
Salary |
Nominal
A/c |
|
Debtors |
Personal
A/c |
|
Bad
Debts |
Nominal
A/c |
|
Depreciation |
Nominal
A/c |
|
Wages |
Nominal
A/c |
|
Repair |
Nominal
A/c |
|
Ramesh, a debtor |
Personal
A/c |
|
Interest
Received |
Nominal
A/c |
|
Bank
Overdraft |
Personal
A/c |
|
Purchase
Returns |
Nominal
A/c |
|
Drawings |
Personal
A/c |
|
Freight |
Nominal
A/c |
|
Return
Inwards |
Nominal
A/c |
Page No 6.16:
Question 2:
Classify the following into Assets,
Liabilities, Capital, Expenses and Revenue:
|
(i) Land; |
(ii)
Investments; |
(iii)
Building; |
(iv)
Interest Received; |
|
(v)
Salary; |
(vi)
Bank Overdraft; |
(vii)
Debtors; |
(viii)
Creditors; |
|
(ix)
Bad Debts; |
(x)
Capital; |
(xi)
Depreciation; |
(xii)
Motor Vehicles; |
|
(xiii)
Freight; |
(xiv)
Wages; |
(xv)
Goodwill; |
(xvi)
Repairs. |
Answer:
|
Assets |
Liabilities |
Capital |
Expenses |
Revenue |
|
(i)
Land |
(vi) Bank Overdraft |
(x) Capital |
(v) Salary |
(iv) Interest Received |
|
(ii) Investments |
(viii) Creditors |
|
(ix) Bad Debts |
|
|
(iii) Building |
|
|
(xi) Depreciation |
|
|
(vii) Debtors |
|
|
(xiii) Freight |
|
|
(xii) Motor Vehicles |
|
|
(xiv) Wages |
|
|
(xv) Goodwill |
|
|
(xvi) Repairs |
|
|
|
|
|
|
|
Page No 6.17:
Question 3:
Classify the following into Assets, Liabilities, Capital, Revenue, and Expenses:
|
(i) Plant and Machinery; |
(ii)
Bank Loan; |
(iii)
Sales; |
(iv)
Rent; |
|
(v)
Discount Received; |
(vi)
Carriage Inwards; |
(vii)
Carriage outwards; |
(viii)
Purchases; |
|
(ix)
Bills Payable; |
(x)
Wages; |
(xi)
Advance Income; |
(xii)
Accrued Income; |
|
(xiii)
Goodwill; |
(xiv)
Furniture and Fixtures; |
(xv)
Outstanding Expenses; |
(xvi)
Capital. |
Answer:
|
Assets |
Liabilities |
Capital |
Revenue |
Expenses |
|||||
|
(i) |
Plant and Machinery |
(ii) |
Bank Loan |
(xvi) |
Capital |
(iii) |
Sales |
(iv) |
Rent |
|
(xii) |
Accrued Income |
(ix) |
Bills Payable |
|
|
(v) |
Discount Received |
(vi) |
Carriage Inwards |
|
(xiii) |
Goodwill |
(xi) |
Advance Income |
|
|
|
|
(vii) |
Carriage Outwards |
|
(xiv) |
Furniture and Fixtures |
(xv) |
Outstanding Expenses |
|
|
|
|
(viii) |
Purchases |
|
|
|
|
|
|
|
|
|
(x) |
Wages |
Page No 6.17:
Question 4:
On which side will the increase in the following accounts be recorded? Also, state the nature of the account:
|
(i) Furniture A/c |
(ii)
Mohan (proprietor) |
|
(iii)
Salary A/c |
(iv)
Purchases A/c |
|
(v)
Sales A/c |
(vi)
Interest Paid A/c |
|
(vii)
Sohan (Creditor) |
(viii)
Ram (Debtor) |
Answer:
|
Name of Accounts |
Consequence of increase |
Modern Approach |
Traditional Approach |
|
|
(i) |
Furniture |
Debit |
Assets |
Real Account |
|
(ii) |
Mohan (Proprietor) |
Credit |
Capital |
Personal Account |
|
(iii) |
Salary |
Debit |
Expense |
Nominal Account |
|
(iv) |
Purchases |
Debit |
Expense |
Nominal Account |
|
(v) |
Sales |
Credit |
Revenue |
Nominal Account |
|
(vi) |
Interest Paid |
Debit |
Expense |
Nominal Account |
|
(vii) |
Sohan (Creditor) |
Credit |
Liabilities |
Personal Account |
|
(viii) |
Ram (Debtor) |
Debit |
Assets |
Personal Account |
Page No 6.17:
Question 5:
On which side will the decrease in the following accounts be recorded? Also, state the nature of the account:
|
(i) Cash |
(ii)
Bank Overdraft |
|
(iii)
Outstanding Salary paid |
(iv)
Outstanding Rent |
|
(v)
Prepaid Insurance |
(vi)
Mohan, Proprietor of the business |
Answer:
|
Name of Accounts |
Consequence of decrease |
Modern Approach |
Traditional Approach |
|
|
(i) |
Cash |
Credit |
Assets |
Real Account |
|
(ii) |
Bank Overdraft |
Debit |
Liability |
Personal Account |
|
(iii) |
Outstanding Salary Paid |
Debit |
Liability |
Personal Account |
|
(iv) |
Outstanding Rent |
Debit |
Liability |
Personal Account |
|
(v) |
Prepaid Insurance |
Credit |
Asset |
Personal Account |
|
(vi) |
Mohan, proprietor of the business |
Debit |
Capital |
Real Account |