SUBJECT: Accountancy
DATE OF SUBMISSION: 09/05/2020
TOPIC: Basic Accounting Terms
SUBJECT TEACHER: Aditi Arora
Q1: Classify the following under Assets, Liabilities, Capital, Revenue and Expense
a) Machinery
b) Purchases
c) Cash
d) Bank
e) Building
Equipment
g) Sales
h) Discount allowed
Discount received
Stock
k) Creditors
1) Capital
m) Drawings
n) Debtors
o) Rent paid
p] Salary paid to a clerk
q) Interest Received
1) Loan taken
s] Loan granted
D) Goodwill
u) Trade Marks
v) Bad Debts
w] Commission Received
X) Purchase of Chairs, for a Furniture Dealer
y Purchase of Chairs for others
2) Outstanding Fees
aa) Prepaid Fees
bb) Accrued Fees
CC) Unearned Fees
dd) Charity
ee) Loss by fire, theft
fl) Depreciation
Q2. The term sales is used only for the sales of
(a) Assets Investments
and is never used for the sale of
(b) Asset, Goods
Answers
Answer:
1. Machinery = Assets
2. Purchases = Capital
3. Cash = Current Assets
4. Bank = Current Assets
5. Building = Fixed Assets
6. Sales = Revenue
7. Discount Allowed = Indirect Expense
8. Discount Received = Indirect Income
9. Stock = Assets
10. Creditors = Liabilities
11. Capital = Capital
12. Drawing = Capital
13. Debtors = Current Assets
14. Salary = Indirect Expense
15. Int. Received = Indirect Income
16. Loan Taken = Liabilities
17. Loan Granted = Assets
18. Goodwill = Fixed Assets (Intangible)
19. Trade Mark = Fixed Assets (Intangible)
20. Bad Debts = Indirect Expense
21. Commission Rec. = Indirect Income
22. Furniture = Fixed Assets
23. Chairs = Fixed Assets
24. Outstanding Fees = Current Liabilities
25. Prepaid Fees = Current Assets
26. Accrued Fees = Current Assets
27. Unearned Fees = Current Assets
28. Charity = Expense
29. Loss by Fire = Abnormal Loss
30. Depreciation = Indirect Expense
Explanation: