Question

Under barter system, which of the following is not correct?

a) Exchange of money for product. b) Exchange for product for product

c) Exchange of product for service d) Exchange of product/ service for

product/service

2) Rent paid ` 10,000, what type of the transaction is it?

a) cash transaction of asset

b) Non- cash transaction of service

c) Cash transaction of service

d) Cash transaction of liability

3) When good purchased on credit.

a) Increase in assets – increase in liability

b) Decrease in assets – decrease in liability

c) Increase in assets – decrease in liability

d) Decrease in assets – increase in liability

4) Credit sales of goods will be recorded in _____________

a) sales book b) purchase book c) Journal proper d) Bills receivable book

5) Which type of discount is not recorded in the book?

a) Kasar b) Discount received c) Discount allowed d) trade discount

6) Transactions which are not recorded in other subsidiary books are recorded in

______________

a) Journal b) Journal proper c) Cash book d) other book

SECTION – B

 Answer in one sentences: (04)

1) Who provides capital to the business?

2) What is cash transaction?

3) What is meant by subsidiary?

4) What is bank overdraft?

SECTION – C

 Answer the following questions: (21)

1) To which account, the following transactions will be debited and credited in the

book of Nilima? Describe with reason:

a) ` 50,000 brought in cash and started business.

b) A loan of `10,000 taken from Jasleen.

c) Bank account opened by depositing ` 30,000.​

Answer 1

1. a

2. a

3. a

4.a

5. d

6. b

section b

1 lenders and equity holders

2. A cash transaction is the immediate payment of cash for the purchase of an asset.

3.subsidiary is a company that belongs to another company, which is usually referred to as the parent company or the holding company.

4.A bank overdraft is a line of credit that covers your transactions if your bank account balance drops below zero.

section c

1 .a) cash A/ c dr 50000

To capital A/c 50000

( being capital introduced in business )

b ) cash A/c dr 10000

To jasleen A/c 10000

( being loan taken)

c) bank A/c dr 30000

To cash A/c 30000

( being cash depositing in bank)