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.
Short Answer Questions
Q1. What are the types of accounts? Give two examples of each
Q2. "Every debit must have a corresponding credit?' Discuss,
Q3. State the types of Personal Accounts.
Q4. Give the rules of debit and credit of the three types of accounts.
Q5. Give the four reasons of the popularity of double entry system,
Q6. What is Intangible Real Account? Give two examples of such type of accounts.
Q7. Give two examples of Representative Personal Accounts.