File Details:

Questions:

1. Explain the 'Basic Principles' of Accounting.
2. Explain how the following transactions would be recorded in a Cash Book with Cash and Bank Columns: Deposit of Cash into Bank, Withdrawal of money from Bank for office use, Deposit of cheques (received from others) into Bank, Dishonour of cheques deposited into Bank.
3. What is the need and significance of Depreciation? Differentiate, with suitable examples, between Straight Line Method and Diminishing Balance Methods of charging depreciation.
4. Pass Journal entries in the books of Hari Shankar from the given transactions.
5. What are the objects of preparing a balance sheet? Distinguish between a balance sheet and a trial balance.
6. A company purchased machinery on different dates and sold one of them later. Show the machinery account for 3 years charging depreciation by fixed instalment method at 10% p.a.
7. Shiva Ltd. invited applications for equity shares with payments in installments. Pass the Journal entries of the transactions assuming all sums have been received.
8. What is debenture? What are the various methods of redeeming the debentures? Describe their characteristics.
9. A Ltd. took loans from a Bank and deposited debentures as collateral security. Pass the necessary Journal entries and prepare Balance Sheet in the books of A Ltd.
10. Eti Ltd. issued equity shares with payments in installments. Some shares were forfeited due to non-payment and reissued at a discount. Pass the necessary Journal entries in the books of Eti Ltd.