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Short Question-2 Marks

[2011-Hons. & General]
a. Who are the users accounting information? (mention any
four)
Or, Mention two quantitative characteristics of accounting
information.
b. Using accounting equation, calculate total assets ifi.
Capital
5,00,000
ii. Creditors
3,00,000
iii. Revenue during the period 5,20,000
iv. Expenses during the period 3,80,000
c. What is meant by Accrual Basis of accounting?
Or, from the following information, ascertain income for the
year ended 31.12.10, according to Cash basis of accounting:
i.
Income received in cash for the
Rs.
year ended 31.12.10
50,000
ii. Accrued income as on 31.12.10
5,000
iii. Income received in advance during 2010 15,000
iv. Accrued income of 2009, received in 2010 7,000
d. What is Entity concept?
Or, Mention the name of the accounting concept or
convention being followed in the following instances:
i.
Provision for depreciation is created;
ii. Unsold stock is valued at lower of cost or net realizable
value.
e. What is meant by recognition of revenue?
f. What do you mean by expenses in accounting?
g. What will be the effect on profit for a periodi. If the value of the closing stock/inventory is
understated;
ii. If the value of the opening inventory is overstated.
h. Y ltd. has an item in stock which cost Rs. 20,000 and can be
sold for Rs. 24,000. However, before it can be sold, it will
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require to be modified at a cost of Rs. 3,000. The expected

selling expenses of the item are Rs. 2,000.
Calculate Net realizable value (NRV) of the item.
i. Who pays del-Credere Commission? Why is this commission
paid?
Or, find out the cost price of an item consigned at an
invoice price of Rs. 1, 50,000, load being 20% on cost price.
j. When is the Average clause applicable in calculating
insurance claim for loss of stock?
Or, what do you mean by Standing charges?
[2012-Hons & General]
a. What do you mean by accounting cycle?
Or, what do you mean by Accounting Equation?
b. Mention any two characteristics of assets.
Or, give two examples of current liabilities.
c. What is meant by Money Measurement Concept?
Or, which accounting concepts are being followed in the
following cases:
i.
A business will continue its operation for an indefinite
period and will not be dissolved in the near future.
ii. A business considered as an artificial person different
from owner.
d. Defined deferred revenue expenditure.
e. What is meant by revenue in accounting?
Or, is there is any difference between revenue and gain?
Explain in brief.
f. What do you mean by inventory?
g. Value of physical stock as on 8th April, 2011 was Rs.34,500.
Purchase during the period from 1st April to 8th April, 2011
was Rs. 7,500 of which rs.800worth of goods were delivered
only on 10th April, 2011. Determine the value of closing
stock as on 31st march, 2011.
h. What do you mean by Matching of revenue against
expenses?
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i. What do you mean by goods sold on sale or return basis?

j. What do you mean by sectional balancing system?
Or what are the adjustments accounts opened in the
general ledger under self-balancing system?
[2012-supply]
a. What is Account sale?
b. What is meant by recognition of revenue?
c. What do you mean by revenue in accounting?
d. What do you mean by loss of stock?
e. What is meant by Cash Basis of accounting?
Or, from the following information, ascertain subscription
income for the year ended 31.12.11 according to accrual
basis of accounting:Subscription received in cash for the year ended
31.12.11- 1, 00,000
Accrued subscription as on 31.12.2011
10,000
Subscription received in advanced during 2011 for
2012
30,000
Accrued subscription as on 31.12.2011
14,000
f. L Ltd. an item in the stock which cost Rs. 40,000 and can be
sold for Rs. 48,000. However, before it can be sold, it will
required to be modified at a cost of Rs. 6,000. The expected
selling expenses of the items are Rs. 4,000. Calculate Net
Realisable value (NRV) of the item.
g. What is accounting cycle?
Or, mention any two names of external users of accounting
information.
h. What is going concern concepts?
Or, using accounting equation, calculate value of total
assets:i. Capital
10,00,000
ii. Creditors
6,00,000
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iii.

Net profit earned during the

Period
2,80,000
i. What do you mean by double entry system of book
keeping?
Or, what do you mean by doctrine of consistency?
j. What do you mean by Inventory?
Or, closing stock of a firm was taken on 7.4.11 instead of
31.3.11. Value of stock on 7.4.11 Rs. 10,000. Purchase from
1.4.11 to 7.4.11 Rs. 15,000, sales from 1.4.11 to 7.4.11 Rs.
10,000. Gross profit is 25% on cost. Ascertain the value of
stock in 31.3.11.
[2013-General]
a. State two users of accounting information.
Or, Distinguish between Financial and Management
accounting. (Any two)
b. What do you meant by double entry book keeping
system?
Or, what is contingent Liability?
c. Why Ledger is called a book of final entry?
Or, what do you mean by journal proper?
d. From the following information, ascertain income for the
year ended 31.03.13, according to accrual basis of
accounting:Income received in cash for the year ended 31.03.13
1,00,000
Accrued income as on 31.03.13
35,000
Income received in advanced during the year ended
31.03.13- 10,000
Outstanding expenses as on 31.03.13
30,000
Prepaid expenses as on 31.03.13
5,000
e. What is meant by recognition of expenses?
f. Name four method of valuation of closing stock.
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g. What do you mean by stock reconciliation statement?

Or, calculate the value of closing stock as on 31.3.13 from
the following information:
i. Value of physical stock taken on 10.04.13 (for the
year ended 31.03.13) was Rs. 5,00,000.
ii. Purchased during the period from 01.04.13 to
10.04.13 was Rs. 50,000 out of which 10,000 worth
of goods was received on 15.04.13.
iii. Freight paid on above purchase was Rs. 5,000.
iv. Goods sold during the period from 01.04.13 to
10.04.13 ( making a profit 25% on cost ) was Rs.
55,000.
h. What is meant by revenue in accounting?
i. What is the treatment of Normal loss on valuation of
stock in consignment account?
Or, what do you mean by Del- Credere Commission?
j. How do you treat the salvaged goods for calculating
insurance claim for loss of stock?
[2013-Hons.]
a. Name two users of accounting information.
Or, what do you mean by comparability of accounting
information?
b. What you mean by Balance of an account?
Or, mention the names of two intangible assets.
c. Give examples of two entries which are recorded in a
journal proper.
Or, show the application of accounting equation in the
following transaction. Mr. A started business with cash Rs.
50,000.
d. Which accounting concept is being used/followed in the
following cases:i. The life of the business is assumed to be indefinite,
yet business prepare their account annually.
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ii.

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Profit is being determined by comparing the sale of

an accounting period with the corresponding cost of
goods sold.
e. What do you mean by revenue?
Or, when revenue will be recognized in case of a concern
engaged in rendering services?
f. State the difference between expense and expenditure.
g. State the effect of valuing inventory wrongly.
h. What is FIFO Method of valuing inventory?
i. What is average clause?
Or, what is short sale?
j. Mention two advantage of preparing of self-balancing of
ledger.
[2013-Supple]
a. What do you mean by Net Realisable value?
b. What are the adjustments accounts opened in the general
ledger under self-balancing system?
c. What do you mean by loss of stock?
Or, define Average Clause?
d. What do you mean by revenue?
e. What do you mean by accounting equation?
f. What do you mean by cash basis of accounting?
Or, what do you mean by Going Concern?
g. Define Liability.
Or, give examples of two current assets?
h. What do you mean by accounting cycle?
Or, what is meant by Doctrine of conservation?
i. Value of physical stock as on 16th may, 2012 was Rs.
44,250. Purchase during the period from may1, 2012 to
may16, 2012 were Rs. 15,000 of which goods worth Rs.
2,000 were delivered on 18th may, 2012. Determine the
value of stock on April 30, 2012.
Or, write two objective Revenue Recognition.
j. Mention two methods of inventory valuation.
[2014-General]
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a. Who are the two users of accounting information (any two)?

Or, mention two objective of accounting.
b. State any two feature of Double Entry System.
Or, what is meant by accounting information?
c. Using accounting equation, calculate total assets from the
following information:
i.
Capital Rs. 5, 00,000; ii. Creditor Rs.3, 00,000; iii.
Revenue during the period Rs.5, 20,000; IV. Expenses
during the period Rs. 3, 80,000.
Or, mention two errors which are not disclosed by trail
balance.
d. What do you mean by accrual basis of accounting?
e. What do you mean by recognition of revenue?
Or, mention two features of expenses.
f. What is FIFO Method of valuing inventory?
g. What will be the effect on profit for a period if opening stock
is overstated and closing stock is understated?
Or, value the physical stock as on 10th April, 2014 was Rs.
40,500. Purchase during the period from 1st April, 2014 to
10th April, 2014 was Rs. 8,500 which Rs. 800 worth of goods
were delivered only on 15th April, 2014. Determine the value
of stock on 31st March, 2014.
h. What do you mean by separate entity concept?
i. What do you mean by sale of approval basis ?
j. How is abnormal loss treated in consignment accounts?
[2014-Hons.]
a. Distinguish between financial accounting and management
accounting (any two).
Or, mention two qualitative characteristics of accounting
information.
b. What do you mean by fictitious assets?
Or, mention the names of two contingent assets.
c. Why journal is called a book of original entry?
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Or, briefly mention why fixed assets a/c cannot show a

credit balance?
d. Distinguish between return inward books and return inward
account.
Or, mention two differences between revenue and receipts.
e. From the following information ascertain income for the
year ended 31.03.2014 according to the cash basis of
accounting:
i.
Income received in cash for the year ended 31.3.2014
1,40,000
ii. Accrued income as on 31.3.14
2,500
iii. Income received in advanced during the year 31.3.14
15,000
iv. Outstanding expenses as on 31.3.14
3,500
v. Prepaid expenses as on 31.3.14
5,000
f. Show the application of accounting equation in the following
transactions:
Purchased goods on credit for Rs. 30,000.
g. What will be the effect on profit for the period in following
cases?
i. If the value of the closing stock is overstated.
ii. If the value of the closing stock is understated.
h. From the following particular for the year ended 31.3.14,
determine the value of the closing stock at the end of the
year.
Opening stock on 1.4.13
40,000
Purchases
2, 25,000
Sales
3, 00,000
At the end of the year goods on credit for Rs. 25,000 were
received but no entry was passed for non- receipt of invoice.
Uniform rate of gross profit is 30%.
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i. Why self-balancing ledger is prepared?

Or, when Average clause is applied in respect of insurance
claim?
j. What do you mean by standing charges?
[2015-general]
a. What is meant by Revenue in accounting?
b. What do you mean by assets?
Or, what are the characteristics of liabilities?
c. Explain going concern concept?
Or, explain the doctrine of conservatism.
d. Why journal is called a book of original entry?
Or, show the application of accounting equation in following
transaction:
Creditors are paid a sum of Rs. 20,000.
e. A business has an item of closing stock which costs Rs.
10,000. It can be sold at Rs. 11,000. But selling expense
would be Rs. 1,100. What is the Net Realisable Value of the
item?
f. Write the two differences between cash basis and accrual
basis of accounting.
Or, what is meant by accounting information?
g. Why stock reconciliation statement is prepared?
h. show the impact of the following on gross profit:
i. If the closing stock is overvalued by Rs. 10,000.
ii. If the opening stock is overvalued by s. 10,000.
i. What Average Clause in respect of insurance claim?
j. How is normal loss treated in consignment a/c?
[2015-hons.]
a. What do you mean by GAAP?
Or, name two users of accounting information.
b. What do you mean by money measurement concept?
Or, which accounting concepts are being followed in the
following cases:
i.
A business will continue its operation for an indefinite
period and will not be dissolved in the near future.
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A business is considered as an artificial person different

from its owner.
c. What is the fundamental accounting equation?
Or, what do you mean by accounting cycle?
d. What is meant by recognition of expenses?
Or, what do you mean by inventory?
e. From the following information, ascertain the income for the
year ended31.12.14 according to accrual basis of
accounting:
i.
Income received in cash during the year ended
31.12.14
1,48,000
ii. Accrued income as on 1.1.14
10,000
iii. Accrued income as on 31.12.14
12,000
iv. Income of 2014 received in 2013
5,000
f. What do you mean by Account Sales?
Or, distinguish between consignment sale and ordinary
sales?
g. What is the LIFO Method of valuing inventory?
h. Mention two advantage of preparing self-balancing ledger.
i. What do you mean by net Realisable value in the context of
valuation of inventory?
j. What do you mean by Revenue?
[2016- Hons.]
a. Mention two qualitative characteristics of accounting
information.
Or, mention two objectives of accounting.
b. What do you mean by assets?
Or, using accounting equation, calculate the value of
creditors from the following data: total assets Rs. 1,
50,000 and capital is Rs. 75,000.
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c. From the following particular ascertain the net income of

mr. roy for the year ended 31.12.15 according to cash basis
of accounting:
i.
Income received in cash for the year ended 31.12.15
45,000
ii. Income received in advanced during 2015
10,000
iii. Accrued income as on 31.12.15
4,000
iv. Accrued income of 2014 received in 2015
6,500
d. What do you mean by doctrine of conservatism?
Or, what do you mean by matching concept?
e. State two effects of valuing inventory wrongly.
f. What do you mean by recognition of revenue?
Or, mention two features of expenses.
g. The value of the stock was verified on 4th April, 2015 at Rs.
75,000. Determine the value of closing stock as on 31.3.15.
given that the following transaction took place between
31.3.15 and 4.4.2015:
i. Purchase between 31.3.15 and 4.4.15 at Rs. 1600 out
of these goods worth Rs. 400 were not receive until 4th
April, 2015
ii. Arithmetical error in the stock sheet on 4th April, 2015
resulted in an overvaluation of Rs. 600.
h. What is FIFO method of valuing inventory?
i. What do you mean by standing charges
Or, when is average clause applicable in calculating
insurance claim .
j. What do you mean by pro-forma invoice?

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