Tamilnadu State Board New Syllabus Samacheer Kalvi 11th Accountancy Guide Pdf Chapter 3 Books of Prime Entry Text Book Back Questions and Answers, Notes.

Tamilnadu Samacheer Kalvi 11th Accountancy Solutions Chapter 3 Books of Prime Entry

11th Accountancy Guide Books of Prime Entry Text Book Back Questions and Answers

I. Choose the correct answer.

Question 1.
Accounting equation signifies …………….
(a) Capital of a business is equal to assets
(b) Liabilities of a business are equal to assets
(c) Capital of a business is equal to liabilities
(d) Assets of a business are equal to the total of capital and liabilities
Answer:
(d) Assets of a business are equal to the total of capital and liabilities

Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry

Question 2.
‘Cash withdrawn by the proprietor from the business for his personal use’ causes …………….
(a) Decrease in assets and decrease in owner’s capital
(b) Increase in one asset and decrease in another asset
(c) Increase in one asset and increase in liabilities
(d) Increase in asset and decrease in capital
Answer:
(a) Decrease in assets and decrease in owner’s capital

Question 3.
A firm has assets of Rs. 1,00,000 and the external liabilities of Rs. 60,000. Its capital would be ……………….
(a) Rs. 1,60,000
(b) Rs. 60,000
(c) Rs. 1,00,000
(d) Rs. 40,000
Answer:
(d) Rs. 40,000

Question 4.
The incorrect accounting equation is ………………….
(a) Assets = Liabilities + Capital
(b) Assets = Capital + Liabilities
(c) Liabilities = Assets + Capital
(d) Capital = Assets – Liabilities
Answer:
(c) Liabilities = Assets + Capital

Question 5.
Accounting equation is formed based on the accounting principle of ………………
(a) Dual aspect
(b) Consistency
(c) Going concern
(d) Accrual
Answer:
(a) Dual aspect

Question 6.
Real account deals with ……………..
(a) Individual persons
(b) Expenses and losses
(c) Assets
(d) Incomes and gains
Answer:
(c) Assets

Question 7.
Which one of the following is representative personal account?
(a) Building A/c
(b) Outstanding salary A/c
(c) Mahesh A/c
(d) Balan & Co
Answer:
(b) Outstanding salary A/c

Question 8.
Prepaid rent is a ……………….
(a) Nominal A/c
(b) Personal A/c
(c) Real A/c
(d) Representative personal A/c
Answer:
(d) Representative personal A/c

Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry

Question 9.
Withdrawal of cash from business by the proprietor should be credited to
(a) Drawings A/c
(b) Cash A/c
(c) Capital A/c
(d) Purchases A/c
Answer:
(b) Cash A/c

Question 10.
In double entry system of book keeping, every business transaction affects
(a) Minimum of two accounts
(b) Same account on two different dates
(c) Two sides of the same account
(d) Minimum three accounts
Answer:
(a) Minimum of two accounts

II. Very Short Answer Type Questions

Question 1.
What are source documents?
Answer:
Source documents are the authentic evidences of financial transactions.
These documents show the nature of transaction, the date, the amount and the parties involved.
Source documents include cash receipt, invoice, debit note, credit note, pay-in-slip, salary bills, wage bills, cheque record slips, etc.
They also serve as legal evidence in case of any legal dispute.

Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry

Question 2.
What Is accounting equation?
Answer:
The relationship of assets with that of liabilities to outsiders and to owners in the equation form is known as accounting equation.
Accounting equation is a mathematical expression which shows that the total of assets is equal to the total of liabilities and capital.
This is based on the dual aspect concept of accounting.
This means that total claims of outsiders and the proprietor against a business enterprise will always be equal to the total assets of the business enterprise.
Capital + Liabilities = Assets

Question 3.
Write any one transaction which
(a) Decreases the assets and decreases the liabilities:
Answer:
E.g : Outstanding Rent paid by the company Rs. 30,000.
Here Outstanding Rent (Liability) is decreasing, Cash (Asset) is decreasing.

(b) Increases one asset and decreases another asset:
Answer:
E.g: Building purchased for Cash Rs. 50,000.
Here Building (Asset) is increasing and Cash (Asset) is decreasing.

Question 4.
What is meant by journalising?
Answer:
The process of analysing the business transactions under the heads of debit and credit and recording them in the journal is called journalising.

Question 5.
What is real account?
Answer:
A real account is an account that retains and rolls forward its ending balance from period to period. The areas in the balance, sheet in which real accounts are found are assets, liabilities, and equity. Examples of real accounts are: Cash, Accounts receivable, Fixed Assets Accounts payable, Retained earnings.

Question 6.
How are personal accounts classified?
Answer:
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 1

Question 7.
State the accounting rule for nominal account.
Answer:
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 2

Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry

Question 8.
Give the golden rules of double entry accounting system.
Answer:
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 3

III. Short Answer Questions

Question 1.
Write a brief note on accounting equation approach of recording transactions.
Answer:
The relationship of assets with that of liabilities to outsiders and to owners in the equation form is known as accounting equation.
Accounting equation is a mathematical expression which shows that the total of assets is equal to the total of liabilities and capital.
This is based on the dual aspect concept of accounting.

This means that total claims of outsiders and the proprietor against a business enterprise will always be equal to the total assets of the business enterprise. The equation is given under:
Capital + Liabilities = Assets
Capital can also be called as owner’s equity and liabilities as outsider’s equity.

As the revenues and expenses will affect capital, the expanded equation may be given as under:
Assets = Liabilities + Capital + Revenues – Expenses
Accounts are classified into five categories: (i) Asset account, (ii) Liability account, (iii) Capital account, (iv) Revenue account and (v) Expense account as follows:
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 4

Question 2.
What is an Account? Classify the accounts with suitable examples.
Answer:
Every transaction has two aspects and each aspect affects minimum one account.
An account is the basic unit of identification in accounting.
A ledger account is a summary of relevant transactions at one place relating to a particular head.
Account is the systematic presentation of all material information regarding a particular person or item at one place, under one head.

Classification of Accounts:
Persona! Account;
Accounting relating to persons is called personal account. The personal account may be natural, artificial or representative personal account.
E.g: Malini account, BHEL account, Prepaid Rent account.

Impersonal Account:
All accounts which do not affect persons are called impersonal accounts. These are further classified into Real and Nominal Accounts.
E.g ; Building account, Goodwill, Salaries account.

Question 3.
What are the three different types of persona! accounts?
Answer:
Natural person’s account: Natural person means human beings. Example: Vinoth account, Malini account.

Artificial person’s account: Artificial person refers to the persons other than human beings recognised by law as persons. They include business concerns, charitable institutions, etc. Example: BHEL account, Bank account.

Representative personal accounts: These are the accounts which represent persons natural or artificial or a group of persons. Example: Outstanding salaries account, Prepaid rent account. When expenses are outstanding, it is payable to a person. Hence, it represents a person.

Question 4.
What is the accounting treatment for insurance premium paid on the of the proprietor?
Answer:
The proprietor has to pay an agreed premium on a monthly or annual basis. The amount should be treated as prepayment which is considered as current asset.
The following entry should be made:
Insurance A/c Dr –
To Cash/Bank A/c –
(Being insurance premium paid.)

Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry

Question 5.
State the principles of double entry system of book keeping.
Answer:
Meaning:
Double entry system of book keeping is a scientific and complete system of recording the financial transactions of an organisation. The two aspects involved is denoted by Debit (Dr.) and Credit(Cr.). The following are the principles of double entry system of book keeping:
In every business transaction, there are two aspects.
The two aspects involved are the benefit or value receiving aspect and benefit or value giving aspect.
These two aspects involve minimum two accounts; at least one debit and at least one credit.
For every debit, there is a corresponding and equivalent credit. If one account is debited the other account must be credited.

Question 6.
Briefly explain about steps in journalising.
Answer:
The process of analysing the business transactions under the heads of debit and credit and recording them in the journal is called journalising. An entry made in the journal is called a journal entry. The following steps are followed in journalising:

Analyse the transactions and identify the accounts (based on aspects) which are involved in the transaction.

Classify the above accounts under Personal account, Real account or Nominal account <•> Apply the rules of debit and credit for the above two accounts.

Find which account is to be debited and which account is to be credited by the application of rules of double entry system. Record the date of transaction in the date column.

Enter the name of the account to be debited in the particulars column very close to the left hand side of the particulars column followed by the abbreviation ‘Dr/ at the end in the same line. Against this, the amount to be debited is entered in the debit amount column in the same line.

Write the name of the account to be credited in the second line starting with the word ‘To’ prefixed a few spaces away from the margin in the particulars column. Against this, the amount to be credited is entered in the credit amount column in the same line.

Write the narration within brackets in the next line in the particulars column.

Question 7.
What is double entry system? State its advantages.
Answer:
“Every business transaction has a two-fold effect and that it affects two accounts in opposite directions and if a complete record is to be made of each such transaction it is necessary to debit one account and credit another account. It is this recording of two fold effect of every transaction that has given rise to the term Double Entry” J.R. Batliboi.

Advantages of double entry system:
Following are the advantages of double entry system:
Accuracy
In this system, the two aspects of each transaction are recorded in the books of accounts. This helps in checking the accuracy in accounting.

Ascertainment of business results
Details regarding expenses, losses, incomes, gains, assets, liabilities, debtors, creditors, etc., are readily available. This helps to ascertain the net profit earned or loss incurred during an accounting period and also to know the financial position as on a particular date.

Comparative study
The business results of the current year can be compared with those of the previous years and also 4 with other business firms. It facilitates business planning for future.

Common acceptance
The business records maintained under this system are accepted by financial institutions, government and others, because it is a systematic and scientific system.

Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry

IV. Exercises

Question 1.
Complete the accounting equation.
(a) Assets = Capital + Liabilities
1,00,000 = 80,000 + ?
Answer:
(a) Liabilities = Assets – Capital
Liabilities = 1,00,000 – 80,000
Liabilities = 20,000

(b) Assets = Capital + Liabilities
2,00,000 = ? + 40,000
Answer:
Capital = Assets – Liabilities
Capital = 2,00,000 – 40,000
Capital = 1,60,000

(c) Assets = Capital + Liabilities
? = 1,60,000 + 80,000
Answer:
Assets = Capital + Liabilities
Assets = 1,60,000 + 80,000
Assets = 2,40,000

Question 2.
For the following transactions, show the effect on accounting equation.
(a) Raj Started business with cash – 40,000
(b) Opened bank account with a deposit of – 30,000
(c) Bought goods from Hari on credit for – 12,000
(d) Raj withdrew cash for personal use – 1,000
(e) Bought furniture by using debit card for – 10,000
(f) Sold goods to Murugan and cash received – 6,000
(g) Money withdrawn from bank for office use – 1,000
Answer:
(a) Raj started business with cash Rs 40,000
Increasing in capital and increasing in Asset Effects:
Cash comes in → Increase in asset
Capital provided by the owner → Increase in capital of owner
Capital = Asset
Capital = Cash
(+)Rs. 40,000 = (+)Rs. 40,000

(b) Opened bank account with a deposit of Rs 30,000
Decrease in one asset and increase in another asset Effects:
Bank is the receiver → Increases in Assets
Cash goes out → Decrease in Asset
Capital = Asset
Capital = Bank + cash
Capital = (+) Rs. 30,000 + (-) Rs. 30,000

(c) Bought goods from Hari on credit for Rs. 12,000
Increasing Asset and Increase in Liabilities Effects:
Stock comes in → Increase in Asset
Creditors arises → Increase in Liabilities
Asset = Liabilities
Stock = Creditors
(+) Rs. 12,000 = (+) Rs. 12,000

(d) Raj withdrew cash for personal use Rs 1,000
Decrease in Asset and decrease in capital Effects:
Cash goes out → Decrease in cash
Drawings proprietor is the receiver → Decrease in capital
Asset = Capital
Cash = Capital
(-) Rs. 1,000 = (-) Rs. 1,000

(e) Bought furniture by using debit card for Rs 10,000
Decrease in one asset and Increase in another asset Effects:
Furniture comes in → Increase in Furniture
Bank is giver → Decrease in a Bank
Asset = Liabilities
Furniture + Bank = Liabilities
(+) Rs. 10,000 + (-) Rs. 10,000 = Liabilities

(f) Sold goods to Murugan and cash received Rs 6,000
Decrease in one asset and increase in another asset Effects:
Cash comes in → Increase in cash
<$> Stock goes out → Decrease in stock
Asset = Liabilities
Cash + Stock = Liabilities
(+) Rs. 6,000 + (-) Rs. 6,000 = Liabilities

(g) Money withdrawn from bank for office use Rs 1,000
Decrease in one asset and increase in another asset Effects:
Cash comes in → Increase in Cash
Bank is a giver → Decrease in Bank
Asset = Liabilities
Cash + Bank = Liabilities
(+) Rs. 1,000 + (-) Rs. 1,000 = Liabilities

Accounting Equation:
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 5

Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry

Question 3.
Prepare accounting equation for the following transactions,
(a) Murugan commenced business with cash Rs 80,000
(b) Purchased goods for cash Rs 30,000
(c) Paid salaries by cash Rs 5,000
(d) Bought goods from Kumar for Rs 5,000 and deposited the money in CDM.
(e) Introduced additional capital of Rs 10,000
Answer:
Accounting Equation:
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 6

Question 4.
What will be the effect of the following on the accounting equation?
(a) Sunil started business with Rs 1,40,000 cash and goods worth Rs 60,000
(b) Purchased furniture worth Rs 20,000 by cash
(c) Depredation on furniture Rs 800
(d) Deposited into bank Rs 40,000
(e) Paid electricity charges through net banking Rs 500
(f) Sold goods to Ravi costing Rs 10,000 for Rs 15,000
(g) Goods returned by Ravi Rs 5,000
Answer:
(a) Sunil started business with Rs 1,40,000 cash and goods worth Rs 60,000
Transactions affecting more than two accounts Effects:
Cash comes in → Increase in asset
Stock comes in → Increase in asset
Capital provide by the owner → Increase in capital
Capital = Asset
Capital = Cash + Stock
(+) 2,00,000 = (+) 1,40,000 + (+) 60,000

(b) Purchased furniture worth Rs 20,000 by cash
Decrease in one asset and Increase in Another asset Effects:
Furniture comes in → Increase in asset
Cash goes out → Decrease in asset
Liabilities = Assets
Liabilities = Cash + Furniture
Liabilities = (-) 20,000 + (-) 20,000

(c) Depreciation on furniture Rs 800
Decrease in asset and decrease in capital effects:
Furniture goes out → Decrease in Asset
Capital → Decrease in Capital
Capital = Asset
Capital = Furniture
(-) 800 = (-) 800

(d) Deposited into bank Rs 40,000
Increase in one Asset and decrease in another asset Effects:
Cash goes out → Decrease in asset
Bank is a receiver → Increase in asset
Liability = Asset
Liability = Cash + bank
= (-) 40,000 + (+) 40,000

(e) Paid electricity charges through net banking Rs 500
decrease in Asset and Decrease in capital Effects:
Bank is a given → Decrease in Asset
Capital (Expenses) → Decrease in capital
Capital = Asset
Capital = Bank
(-) 500 = (-) 500

(f) Sold goods to Ravi costing Rs 10,000 for Rs 15,000
Increase in asset and decreases in another asset and Increase in Capital Effects:
Creditors → Increases in Liabilities
Stock goes out → Decreases in asset
Capital (Incom(e) → Increase in capital
Liabilities + Capital = Asset
Creditors + Capital = Stock
(+) 15,000 + (+) 5,000 = (-) 5,000

(g) Goods returned by Ravi Rs 5,000
Increase in asset and decrease in Liabilities Effects:
Stock comes in → Increase in asset
Reducing in creditors → Decreases in Liabilities
Liability = Asset
Creditors = Stock
(-) 5,000 = (+) 5,000
Accounting Equation:
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 7

Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry

Question 5.
Create an accounting equation on the basis of the following transactions.
(i) Rakesh started business with a capital of Rs 1,50,000
(ii) Deposited money with the bank Rs 80,000
(iii) Purchased goods from Mahesh and paid through credit card Rs 25,000
(iv) Sold goods (costing Rs 10,000) to Mohan for Rs 14,000 who pays through debit card
(v) Commission received by cheque and deposited the same in the bank Rs 2,000
(vi) Paid office rent through ECS Rs 6,000
(vii) Sold goods to Raman for Rs 15,000 of which Rs 5,000 was received at once
Answer:
Accounting Equation:
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 8

Question 6.
Create an accounting equation on the basis of the following transactions.
(i) Started business with cash 80,000 and goods Rs 75,000
(ii) Sold goods to Shanmugam on credit for Rs 50,000
(iii) Received cash from Shanmugam in full settlement Rs 49,000
(iv) Salary outstanding Rs 3,000
(v) Goods costing Rs 1,000 given as charity
(vi) Insurance premium paid Rs 3,000
(vii) Out of insurance premium paid, prepaid is Rs 500
Answer:
Accounting Equation:
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 9

Question 7.
Create accounting equation on the basis of the following transactions:
(i) Opening balance on 1st January, 2018 cash Rs 20,000; stock Rs 50,000 and bank Rs 80,000
(ii) Bought goods from Suresh Rs 10,000 on credit
(iii) Bank charges Rs 500
(iv) Paid Suresh Rs 9,700 through credit card in full settlement.
(v) Goods purchased on credit from Philip for Rs 15,000
(vi) Goods returned to Philip amounting to Rs 4,000
Answer:
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 10

Question 8.
Enter the following transactions in the journal of Manohar who is dealing in textiles. 2018 March
Manohar started business with cash – 60,000
Purchased furniture for cash – 10,000
Bought goods for cash – 25,000
Bought goods from Kamaiesh on credit – 15,000
Sold goods for cash – 28,000
Sold goods to Hari on credit – 10,000
Paid Kamaiesh – 12,000
Paid rent – 500
Received from Hari – 8,000
Withdrew cash for personal use – 4,000
Answer:
journal of Mr. Manohar
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 11

Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry

Question 9.
Pass journal entries in the books of Sasi Kumar who is dealing in automobiles. 2017 Oct.
1. Commenced business with goods – 40,000
3. Cash introduced in the business – 60,000
4. Purchased goods from Arul on credit – 70,000
6. Returned goods to Arul – 10,000
10. Paid cash to Arul on account – 60,000
15. Sold goods to Chandar on credit – 30,000
18. Chandar returned goods worth – 6,000
20. Received cash from Chandar in full settlement – 23,000
25. Paid salaries through ECS – 2,000
30. Sahil took for personal use goods worth – 10,000
Answer:
journal of Mr. Sasi Kumar:
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 12

Question 10.
Pass Journal entries in the books of Hart who is a deafer in sports items. 2017 Jan.
1. Commenced business with cash 50,000
2. Purchased goods from Subash on credit 20,000
4. Sold goods to Ramu on credit 15,000
8. Ramu paid the amount through cheque
10. Cheque received from Ramu is deposited with the bank
15. Sports items purchased from Gopal on credit 10,000
18. Paid rent for the proprietor’s residence 1,500
20. Paid Gopai in full settlement after deducting 5% discount
25. Paid Subash Rs 4,750 and discount received 250
28. Paid by cash: wages Rs 500; electricity charges Rs 3,000 and trade expenses 1,000
Answer:
journal of Hari:
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 13

Question 11.
Karthick opened a provisions store on 1st April, 2017, Journalise the following transactions in this books:
2017 April?
1. Paid into bank for opening a current account – 2,00,000
3. Goods purchased by cheque – 40,000
5. Investments made in securities – 40,000
6. Goods sold to Radha for Rs 20,000 and cheque received and deposited into bank
7. Amount withdrawn from bank for office use – 15,000
10. Purchased goods from Kamala and cash deposited in CDM – 10,000
12. Sold goods to Vanitha who paid through debit card – 10,000
15. Interest on securities directly received by the bank – 1,000
20. Insurance paid by the bank as per standing instructions – 2,000
25. Sales made to Kunal who made payment through CDM – 6,000
Answer:
journal of karthik:
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 14

Question 12.
Journalise the following transactions in the books of Ramesh who is dealing in computers:
2018, may 1. Ramesh started business with cash Rs 3,00,000, Goods Rs 80,000 and Furniture Rs 27,000.
2. Money deposited into bank Rs 2,00,000
3. Bought furniture from M/s Jayalakshmi Furniture for Rs 28,000 on credit.
4. Purchased goods from Asohan for Rs 5,000 by paying through debit card.
5. Purchased goods from Guna and paid through net banking for cash Rs 10,000
6. Purchased goods from Kannan and paid through credit card Rs 20,000
7. Purchased goods from Shyam on credit for Rs 50,000
8. Bill drawn by Shyam was accepted for Rs 50,000
9. Paid half the amount owed to M/s Jayalakshmi Furniture by cheque
10. Shyam’s bill was paid
Answer:
journal of Mr. Ramesh
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 15

Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry

Question 13.
Journalise the following transactions in the books of Sundar who is a book seller.
dec 2017. 1. Commenced business with cash – 2,00,000
2. Bought goods from X and Co. on credit – 80,000
4. Opened a bank account with – 50,000
5. Sold goods to Naresh who paid the amount through net banking – 5,000
6. Sold goods to Devi who paid through credit card – 7,000
7. Sold goods to Ashish on credit – 700
8. Money withdrawn from bank through ATM for office use – 1,000
9. Purchased a furniture and paid through debit card – 2,000
10. Salaries paid by cash – 6,000
11. Furniture purchased from Y for Rs 25,000 and advance given – 5,000
Answer:
journal of Mr. Sundar
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 16

Question 14.
Raja has a hotel. The following transactions took place in his business. Journalise them.
Jan. 1. Started business with cash – 3,00,000
2. Purchased goods from Rajiv on credit – 1,00,000
3. Cash deposited with the bank – 2,00,000
20. Borrowed loan from bank – 1,00,000
22. Withdrew from bank for personal us – 800
23. Amount paid to Rajiv in full settlement through NEFT – 99,000
25. Paid club bill of the proprietor by cheque – 200
26. Paid electricity bill of the propHetor’s house through debit card – 2,000
31. Lunch provided at free of cost to a charity – 1,000
31. Bank levied charges for lofcker rent – 1,000
Answer:
journal of Mr. Raja
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 17

Question 15.
From the following transactions of Shyam, a stationery dealer, pass journal entries for the month of August 2017,
Aug 1. Commenced business with cash Rs 4,00,000, Goods Rs 5,00,000
2. Sold goods to A and money received through RTGS 12,50,000
3. Goods sold to Z on credit for Rs 20,000
5. Bill drawn on Z and accepted by him Rs 20,000
8. Bill received from Z is discounted with the bank for 119,000
10. Goods sold to M on credit Rs 12,000
12. Goods distributed as free samples for Rs 2,000
16. Goods taken for office use Rs 5,000
17. M became insolvent and only 0.80 per rupee is received in final settlement
20. Bill of Z discounted with the bank is dishonoured
Answer:
Journal of Mr. Shyam
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 18

Question 16.
Mary is a cement dealer having business for more than 5 years. Pass journal entries in her books for the period of March, 2018,
March 1. Cement bags bought on credit form Sibi – 20,000
2. Electricity charges paid through net banking – 500
3. Returned goods bought form Sibi – 5,000
4. Cement bags taken for personal use – 1,000
5. Advertisement expenses paid – 2,000
6. Goods sold to Mano – 20,000
7. Goods returned by Mano – 5,000
8. Payment received from Mano through NEFT
Answer:
Journal of Mr. Mary
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 19

11th Accountancy Guide Conceptual Framework of Accounting Additional Important Questions and Answers

I. Choose the correct answer.

Question 1.
Journal is a book of ………
(a) Prime Entry
(b) Compound Entry
(c) Closing Entry
(d) Adjustment Entry
Answer:
(a) Prime Entry

Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry

Question 2.
Journal is a book of ……….
(a) Original Entry
(b) Final Entry
(c) Assets
(d) None of the above
Answer:
(a) Original Entry

Question 3.
Drawings account is …………..
(a) Personal A/c
(b) Real A/c
(c) Nominal A/c
(d) None of the above
Answer:
(c) Nominal A/c

Question 4.
Accounts of persons with whom the business deals is known as ………….
(a) Personal A/c
(b) Real A/c
(c) Nominal A/c
(d) Profit & Loss A/c
Answer:
(a) Personal A/c

Question 5.
Nominal Account relates to …………
(a) Drawings A/c
(b) Impersonal A/c
(c) Capital A/c
(d) Bank A/c
Answer:
(d) Bank A/c

Question 6.
Which one of the following equation is correct?
(a) Owner’s Equity = Liability + Asset
(b) Owner’s Equity = Asset – Liability
(c) Liability = Owner’s Equity + Asset
(d) Asset = Owner’s Equity – Liability
Answer:
(b) Owner’s Equity = Asset – Liability

Question 7.
Decrease in the amount of creditors results in ……………
(a) Increase in cash
(b) Decrease in cash
(c) Increase in assets
(d) No change in assets
Answer:
(b) Decrease in cash

Question 8.
Atul purchased a car for Rs. 5,00,000, by making down payment of Rs. 1,00,000 and signing a Rs. 4,00,000 bill payable due in 60 days. As a result of this transaction
(a) Total assets increase by Rs. 5,00,000
(b) Total liabilities increase by Rs.4,00,000
(c) Total assets increase by Rs. 4,00,000
(d) Total assets increase by Rs. 4,00,000 with a corresponding increase in liabilities by Rs. 4,00,000
Answer:
(d) Total assets increase by Rs. 4,00,000 with a corresponding increase in liabilities by Rs. 4,00,000

Question 9.
Identify the personal accounts from the following
(a) Salary Payable Account
(b) Taxes Paid Account
(c) Investment Account
(d) Trademark Account
Answer:
(a) Salary Payable Account

Question 10.
Amount paid to a supplier is ……….
(a) An event
(b) A Transaction
(c) Both (a) and (b)
(d) Neither (a) Nor (b)
Answer:
(c) Both (a) and (b)

Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry

Question 11.
Goods worth Rs. 2,000 were distributed as free samples in the market. The journal entry will be
(a) Drawings A/c Dr. 2,000
To Purchases A/c 2,000
(b) Saies A/c Dr. 2,000
To Cash A/c 2,000
(c) Advertisement A/c Dr. 2,000
To Purchases A/c 2,000
(d) No entry
Answer:.
(c) Advertisement A/c Dr. 2,000
To Purchases A/c 2,000

Question 12.
If two or more transactions of the same nature are journalised together, it is known as;
(a) Compound journal entry
(b) Separate journal entry
(c) Posting
(d) None of the above
Answer:
(a) Compound journal entry

Question 13.
An amount of Rs.200 received from A credited to B would affect ………….
(a) Accounts of A and B
(b) A’s Account
(c) Cash Account
(d) B’s Account
Answer:
(a) Accounts of A and B

Question 14.
Contra entries are passed only when …………..
(a) Double Column cash book is prepared
(b) Three-Column Cash book is prepared
(c) Single Cash book is prepared
(d) None of the above
Answer:
(b) Three-Column Cash book is prepared

Question 15.
Which of the following statements is correct?
(a) Accounting profit is the difference between cash receipts and cash paid in a period.
(b) Accounting profit is the total of cash sales in the year iess the expenses for the period.
(c) Accounting profit is the difference between revenue income and expenses for the period.
(d) Accounting profit is the difference between revenue income and cash payment for the period.
Answer:
(c) Accounting profit is the difference between revenue income and expenses for the period.

Question 16.
Direct Expenses are those which can be identified with the particular products. Which of the following items is a direct cost?
(a) The rent of the factory in which products are made
(b) The wages of the production supervisor
(c) A royalty paid to the holder of a patent after each item is produced
(d) The cost of the glue used to attach labels to the products.
Answer:
(c) A royalty paid to the holder of a patent after each item is produced

Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry

Question 17.
Rent payable to the landlord Rs. 5,00,000 is credited to
(a) Cash Account
(b) Landlord Account
(c) Outstanding Rent Account
(d) None of the above
Answer:
(c) Outstanding Rent Account

Question 18.
Bad debts entry is.passed in …………
(a) Sales Book
(b) Cash Book
(c) journal Book
(d) None of the above
Answer:
(c) journal Book

Question 19.
Return of cash sales is recorded in …………..
(a) Sales Return book
(b) cash book
(c) Journal proper
(d) None of the above
Answer:
(b) cash book

Question 20.
Jhony purchased goods ‘ Rs, 5900 for cash at 20% trade discount and 5% cash discount. Purchase account Is to fee debited by Rs ………….
(a) Rs, 3,800
(b) Rs. 5,000
(c) Rs. 3,750
(d) Rs. 4,000
Answer:
(d) Rs. 4,000

Question 21.
Out of the following Identify the wrong statement.
(a) Real & Personal accounts are transferred to Balance Sheet
(b) Nominal accounts are transfer to profit and loss account
(c) Cash account is not opened separately in the ledger
(d) Rent account is a personal account and outstand rent account is a Nominal Account
Answer:
(a) Real & Personal accounts are transferred to Balance Sheet

Question 22.
Financial position of a business concern is ascertained on the basis of ………….
(a) Records Prepared under book – keeping process
(b) Trial Balance
(c) Accounting reports
(d) None of the above
Answer:
(c) Accounting reports

Question 23.
Salary “payable to an employee Rs.50,000. Which account is to be credited?
(a) Cash Account
(b) Salaries Account
(c) Outstanding Salaries
(d) None
Answer:
(b) Salaries Account

Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry

Question 24.
Loss on sale of machinery Is credited to …………..
(a) Machinery Account
(b) Purchase Account
(c) Profit and Loss Account
(d) None of the above
Answer:
(a) Machinery Account

Question 25.
The Capital of a sole trader Is affected by ……………..
(a) Purchase of raw material
(b) Commission received
(c) Cash received from trade receivables
(d) Purchase of an asset for cash
Answer:
(b) Commission received

II. Very Short Answer Type Questions

Question 1.
From the following information below journalise its
i. Salary paid Rs. 5,000
ii. Rent paid to house owner Rs. 1,000
iii. Cash sales Rs. 10,000
Answer:
Journal Entries
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 20

Question 2.
Journalise the following transactions:
2017, Jan 11 Purchased goods for Rs. 1,500
13. Bought furniture for cash Rs. 2,000
19. Drew for private use Rs. 500
Answer:
Journal Entries
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 21

Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry

III. Short Answer Questions

Question 1.
Journalise the following transitions in the books of G.
i. Started business with cash Rs. 9,000
ii. Deposited into Canara Bank Rs, 3,000
iii. Paid Salary Rs, 5,000
iv. Received commission Rs. 200
v. Cash received from Rajan Rs. 400
Answer:
Journal Entries
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 22

IV. Additional Sums

Question 1.
Prepare accounting equation on the basis the following.
1) Ramya started business with cash Rs. 1,20,000
2) She Paid Rent Rs. 4,000
3) She Purchases Furniture Rs. 20,000
4) She Purchased goods on credit from Mr. Parthiban Rs. 60,000
5) She Sold goods (Cost Price Rs. 40,000) for Cash Rs. 50,000
Answer:
Accounting Equation
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 23

Question 2.
Show the Accounting equation the basis of the following transaction.
1. Pailavan Started business with cash Rs. 50,000
2. Purchased goods from Monisha Rs. 40,000
3. Sold goods to Aruna (Costing Rs. 36,000) for Rs. 50,000
4. wan withdraw from business Rs. 10,000
Answer:
Accounting Equation
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 24

Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry

Question 3.
Journalise the following transaction of Mrs. Padmini
2018 May 1. Received Cash from Siva – 75,000
8. Paid Cash to Sayed – 45,000
11. Bought Goods for cash – 27,000
12. Bought Furniture – 48,000
15. Sold Goods for cash – 70,000
18. Sold Furniture – 50,000
Answer:
Journal of Mrs. Padmini
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 25

Question 4.
Journalise the following transactions of Mr. Dharani. 2018
Jan 1. Mr. Dharani Started Business with Cash – 1,00,000
4. Sold Goods to Mohan – 70,000
10. Purchased goods from Bashyam – 50,000
20. Sold goods for cash from Natarajan – 70,000
25. Paid to Bashyam – 50,000
28. Received from Mohan – 70,000
Answer:
Journal of Mr. Dharani
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 26

Question 5.
Journilise the following transaction of Tmt. Rani
2018 Feb 1. Tmt Rani Started Business With cash – 300000
5. Opening a current account with Indian Overseas Bank – 50000
10. Bought goods from Sumathi – 90000
18. Paid to Sumathi – 90000
20. Sold Goods to Chitra – 126000
28. Chitra Settled her account
Answer:
Journal of Tmt. Rani
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 27

Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry

Question 6.
Joumalise the following transactions of Mr.Jeevan.
2018 Mar 5. Sold goods to Arun on Credit – 17,500
10. Bought Goods for cash from Ravi – 22,500
12. Met Travelling Expenses – 2,500
18. Received Rs.80000 from Sivakumar as loan
21. Paid wages to workers – 3,000
Answer:
Journal of Mr. Jeevan
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 28

Question 7.
Give Transaction with imaginary figure involving the following
(i) Increase in assets and capital
(ii) Increase and decrease in assets
(iii) Increase in an assets and a liabilities
(iv) Decrease of an asset and owners capital
Answer:
(i) Mr. Raja Commenced Business with Rs. 2,00,000
(ii) Purchased Computer Rs. 15,000
(iii) Purchased goods from Suresh Rs. 80,000
(iv) Drawings Rs. 15,000

Question 8.
Journalise the following transaction of Mrs. Rama
2018 April 1. Mrs. Rama Commenced Business with cash – 30,000
2. Paid into Bank – 21,000
3. Purchases goods and paid through Debit Card – 15,000
7. Drew Cash from Bank for Personal Use – 3,000
15. Purchased goods from Siva – 15,000
20. Cash Sales – 30,000
23. Money Withdrawn from Bank thought ATM for office use – 1,000
25. Paid to Siva – 14,750
Discount Received – 250
31 Paid Rent – 500
Paid Salaries – 2,000
Answer:
Journal of Mrs. Rama
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 29

Question 9.
Record the transactions in the books of Shri. Ganesh & Co.
2012
Jan 1. Ganesh started a business with cash – 90,000
1. Paid into bank – 20,000
2. Purchased goods for cash – 50,000
4. Purchased furniture by issuing cheque – 24,000
5. Sold goods to Siva – 17,000
6. Purchased goods from Anand – 30,000
9. Returned goods to Anand – 3,000
10. Cash received from Siva – 16,000
11. Withdraw cash for personal use – 1,500
18. Purchase of stationary – 500
Answer:
Journal Entries in the Books of Shri. Ganesh & Co.
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 30

Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry

Question 10.
Record the transactions in the books of XYZ & Co:
2017
may 1. Furniture purchased for Rs. 10,000
2. Old Computer worth Rs. 13,700 sold to Sankar on credit
3. Rent paid Rs. 5,000
6. Depreciation on Machinery Rs. 6,400 paid by cheque
10. Paid Rs. 250 for the installation charges of Machinery
13. Cash taken for personal use Rs. 7,000
Answer:
Journal Entries in the books XYZ & Co.
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 31

Question 11.
Record the transaction in the books of Y.
2017, April 1. Started Business with cash Rs, 9,000
2. Purchased goods for cash Rs. 21,000
3. Sold goods for cash Rs. 8,000
4. Deposited into Canara Bank Rs. 3,000
5. Cash received from Rajan Rs. 4,000
7. Paid salary Rs. 3,000
8. Paid Rent Rs. 4,000
9. Received Commission Rs. 500
10. Withdrew from Canara Bank Rs. 2,700
Answer:
Journal Entries in the books of Y
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 32

Question 12.
Journalize the following transactions:
2016, Dec 1. Purchased goods for cash Rs. 14,000
8. Purchased goods from Anand Stores Rs. 600
12. Sold goods for Rs. 12,500
16. Sold goods to Sridhar Rs. 6,450
18. Bought Machinery for Cash Rs. 1,20,000
20. Goods returned to Anand Stores Rs. 300
22. Sridhar returned goods worth Rs. 450
25. Drew for personal use Rs. 500
25. Electric charges amounted Rs. 1,000
30. Got a loan from Joice Rs. 750
Answer:
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 33

Question 13.
Journalise the following transactions in the books of Z.
2016, july 1. Sold goods for Cash Rs. 2,800
2. Purchased goods for cash Rs, 5,900
5. Purchased goods from K Rs. 3,500
8. Sold goods to P Rs. 6,500
5. Received cash from P Rs. 6,200
9. Paid to K Rs. 3,200
9. Paid Telephone Charges Rs: 1,200
10. Paid Salary Rs. 2,600
10. Received Commission Rs. 3,000
10. Computer purchased from S for Rs. 20,000 and an advance of Rs. 8,000 is given as cash
Answer:
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 34

Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry

Question 14.
Varna, is a women entrepreneur, dealing in textiles. From the following transactions, pass journal entries for the month of March 2017.
2017,
March, 1. Commenced business with cash Rs. 50,000 & with goods Rs. 45,000
2. Purchased 20 sarees from V & Co on credit Rs. 60,000
3. Cash deposited into bank Rs. 48,000
4. Paid to V & Co through net banking
5. Sold 10 sarees @ Rs. 3,000 each on credit to X & Co.
6. Paid Travelling expenses Rs. 450
8. Bank Charges levied Rs. 150
9. X become insolvent and only Rs. 2,000 per saree received by cash in final settlement.
10. Electricity charges amount to Rs. 1,500
10. Received Commission Rs. 2,000
Answer:
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 35

Question 15.
Journalise the following transactions:
2018, march 1. Salary paid Rs. 8,000
2. Rent paid to the house owner Rs. 7,000
3. Credit purchases from Mr. A Rs. 5,800
8. Cash sales Rs. 10,000
9. Deposited cash into bank Rs. 2,500
10. Purchased furniture Rs. 2,400
Answer:
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 36

Question 16.
Complete the accounting equation.
(a) Assets = Capital + Liabilities
Rs.2,00,000 = Rs. 1,60,000 + ?
Answer:
Rs. 40,000

(b) Assets = Capital + Liabilities
Rs. 1,00,000 = ? + Rs. 20,000
Answer:
Rs. 80,000

(c) Assets = Capital + Liabilities
? = Rs. 1,60,000 + Rs. 80,000
Answer:
Rs. 2,40,000

Question 17.
Journalise the following transactions in the books of S.
2017, march 1. M commenced business with Rs. 20,000
2. Remitted in to bank account Rs. 18,000
3. Paid to K by cheque Rs. 5,000 and discount allowed Rs. 100
10. Cash sales Rs. 4,500
15. Issued a cheque to L for furniture Rs. 2,000
18. Withdrew from bank Rs. 500
25. Cash purchase Rs. 800
31. Paid salaries by cheque Rs. 6,000
Answer:
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 37

Question 18.
Write down the transactions for the following.
Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry 38
Answer:
1. Sale of building for Rs. 2,50,000
2. Paid Telephone Charges by Cheque Rs. 2,000
3. Withdrew Cash from Bank Rs. 5,000
4. Withdrew cash for personal use Rs. 3,000
5. Purchased good for Rs. 6,400 and paid by cheque.

Samacheer Kalvi 11th Accountancy Guide Chapter 3 Books of Prime Entry