COMMERCE : VERY SHORT & SHORT ANSWER QUESTIONS - DOUBLE ENTRY SYSTEM, CLASS 11 ACCOUNTANCY
VERY SHORT ANSWER QUESTIONS

Q1.What is Double Entry System of Book-Keeping?
Ans: Double entry system refers to a system of accounting in which every transaction affects at least two accounts simultaneously. One of them is debited and other is credited.
Q2. State the Type of Accounts.
Ans: (i) Personal Accounts; (ii) Real Accounts, and (iii) Nominal Accounts.
Q3. What are Personal Accounts?
Ans: The accounts which relate to an individual, firm, company or an institution are called personal accounts.
Q4. What are Real Accounts?
Ans: The accounts of all those things whose value can be measured in terms of money and which are the properties of the business are termed as Real Accounts such as Cash Account, Furniture Account etc,
Q5. What are Nominal Accounts?
Ans: Ans. These are the accounts which are in name only and which do not really exist such as the accounts of all expenses and incomes.
Q6. What are Natural Personal Accounts? Give one example.
Ans: Accounts of 'Natural Persons' means the accounts of human beings. For example. Mohan's Account.
Q7. What are Artificial Personal Accounts? Give one example.
Ans: These accounts do not have physical existence as human beings but they work as personal accounts. For example,any Firrn's account.
Q8. What are Representative Personal Accounts? Give one example.
Ans: When an account represents a particular person or group of persons, it is termed as a representative personal account For example, 'Outstanding Rent' Account.
Q9.What is the rule of recording transactions in Personal Accounts?
Ans: Debit the receiver and Credit the giver.
Q10. What is the rule of recording transactions in Real Accounts?
Ans: Debit what comes in and Credit what goes out
Q11. What is the rule of recording transactions in Nominal Accounts?
Ans: Debit the expenses and losses and Credit incomes and gains.

Qestions:
1. The Double Entry System of
accounting originated in
2. Accounting principles are generally
based on
3. The system of recording transactions
based on dual concept is called
4. Book – keeping is mainly related to
5. Financial statements is a part of
6. The accounting equation is based on
7. Making the provision for doubtful
debts in anticipation of actual bad
debts is on the basis of
8. The assumption that a business
enterprise will not be sold or
liquidated in the near future is know
as the
9. Disclosing essential information in
accounting observes the principle of.
10. According to which of the
following principles all costs which
are applicable to revenue of the
period should be charged against
that revenue.
11. According does not record non –
financial transactions because of
12. The determination of expenses for an
accounting period is based on the
principle of
13. Dual aspect concept results in the
accounting equation
14. On sale of old furniture owner’s
equity would
15. The immediate recognition of loss is
supported by the underlying principle
of
16. Revenue is generally recognized at the
point of sale. Which principle is
applied
17. Accounting is the process of matching of.
18. Payment of a liability results in
19. Economic life of an enterprise is split
into the periodic interval as per
20. Capital brought in by the proprietor
will result
21. Which AS has been withdrawn by
ICAI.
22. Fundamental Accounting Assum-
ptions are specified in
23. Provision should be made for
Discount on Debtors due to ----
principles.
24. Cost Concepts deals with the
valuation of.
25. -----principle requires that the same
accounting method should be used
from one accounting period to the
next.
26. ---- principle is an exception of Full
disclosure method.
27. AS in India are issued by-
28. The concept of conservatism when
applied to the balance sheet results
in.

Answer Sheet
1. Itally
2. Practicability
3. Double entry system
4. Recoding of financial data
5. Accounting
6. Dual aspect concept
7. Convention of conservatism
8. Going Concern Concept
10. Matching
11. Money Measurement concept
12. Matching
13. Capital + Liabilities = Assets
14. May or may not change
15. Conservatism
16. Revenue recognition
17. Revenues and costs
18. Decrease in total Assets
19. Periodicity
20. Increase in asset and increase in
liability.
21. AS 8
22. AS 1
23. Matching & Prudence Concept
24. Fixed Assets
25. Consistency Concept
26. Materiality
27. ICAI
28. Understatement of Assets

Question Bank
1. Current Assets means,
2. Current Liabilities means
3. Financial statements are prepared
primarily for the benefit of
4. Which one is the language of
business?
5. What is the main function of
accounting?
6. ________ is a base for accounting.
7. Financial Statements are part of
______.
8. Accounting is an art & a science.
(True / False)
9. Where book keeping ends,
accountancy starts. (True / False)
10. Difference between asset & liability
is
11. Net worth is the difference between.

Answers :
1. Assets which are converted into
cash or consumed within a period
of not more than 1 year.
2. Payables within 1 year.
3. External parties to the business.
4. Accountancy
5. Communication through recording
of transactions
6. Book Keeping
7.- Accounting
8. True
9. True
10. Capital
11. Total Assets less external liabilities

Thank You.

Double Entry System:
The double entry system is a fundamental concept in accounting where every transaction affects at least two accounts. This system ensures that the accounting equation (Assets = Liabilities + Equity) remains balanced after each transaction.

Importance of Double Entry System:
- Accuracy: By recording both the debit and credit aspects of a transaction, errors can be easily identified and corrected.
- Completeness: Every transaction is recorded in at least two accounts, ensuring that all financial activities are accounted for.
- Reliability: The double entry system provides a clear audit trail, making it easier to track and verify financial information.
- Financial Analysis: With accurate and complete records, stakeholders can make informed decisions based on the financial health of the business.

Example of Double Entry System:
For example, when a business purchases inventory for cash, two accounts are affected. The inventory account is debited to increase the asset value, while the cash account is credited to decrease the asset value. This transaction follows the principle of duality in the double entry system.

Benefits of Double Entry System:
- Prevents Fraud: By requiring two entries for every transaction, the system reduces the risk of fraud or misappropriation of funds.
- Facilitates Decision Making: With accurate and up-to-date financial information, management can make informed decisions about the business.
- Enhances Transparency: The double entry system provides a clear record of all financial transactions, promoting transparency and accountability.
In conclusion, the double entry system is a vital aspect of accounting that ensures accuracy, completeness, and reliability in financial record-keeping. By following this system, businesses can maintain proper financial controls and make well-informed decisions for their future growth and success.