Good Shepherd International School, Ooty

Winter Holiday Homework

FM III – Accounting

(2021-22)

Instruction:

1. There are total 14 questions.

2. Take a printout of the paper (if possible)

3. Solve the questions in the given space.

4. Take pictures of all the answers and uolpad on the ManageBac in PDF format.
Answer the following questions:

1 What is Accounting Equation?

2 How Accounting is differ from Book-Keeping?

3 What is Contra Entry? Give any two examples.

4 Name all the books of prime entry.

5 What is Trial Balance?

6 Give any two advantages of preparing Trial Balance.

7 State whether each of the following is an Asset, Liability, Expense or Revenue:

Cash …………………………………………..
Salary …………………………………………..
Sales …………………………………………..
Purchase …………………………………………..
Discount Allowed …………………………………………..
Discount Received …………………………………………..
Trade Payable …………………………………………..
Trade Receivable …………………………………………..
Bank …………………………………………..
Machinery …………………………………………..
Inventory …………………………………………..
8 Enter the following transactions in the Purchase Book and Purchase Return
Book of M/s Gopal Book Store.
2018
March 1 Purchased 100 books of Accountancy from Arya Publication, Delhi
@ $120 each less TD @ 10%. (Invoice No. 102).
March 5 Returned 5 books of Accountancy to Arya Publication. (Credit Note
No. 55)
March 12 Purchased 60 books of Commerce from Mukta Stores, Jaipur @
$100 each. (Invoice No. 110)
March 18 Returned 10 books of Commerce to Mukta Stores. (Credit Note
No. 56)
9 Enter the following transactions in Muralis cash book with column for discount,
cash & bank.

2018
Jan 1 Cash balance $4,000; Bank overdraft $10,500.
2 Received $2,000 from Manoj in cash. Allowed him discount of $100.
8 Cash sales $2,000.
10 Furniture purchased $800 by cheque.
12 Paid rent by cheque $1,500.
15 Paid $2,500 to Karthikeyan half cash and half by cheque.
20 Cash sales $15,000.
22 Paid packing charges $500.
25 Paid Murugan $4,000. Discount allowed by him $50.
30 Paid into bank $5,000.
10 Develop the Accounting Equation with the help of following transactions:

a) Commenced business with $5,00000

b) Purchased goods for cash $20,000
c) Sold goods on credit $5,000 (costing $4,000)
d) Paid Salary $1,000
e) Received Rent $500
f) Withdrawn cash for personal use $400
g) Purchased Furniture for cash $1,000
h) Purchased goods on credit $3,000 less Trade discount @ 10%.
11 Define the following:

(i) Debit Note: ...................................................................................................

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(ii) Credit Note: ..................................................................................................

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12. What is a statement of accounts?

13 Prepare Trail Balance as at 31st March, 2018 from the following ledger
accounts balances.
Cash $10,000
Trade Receivable 12,000
Machinery 50,000
Trade Payable 5,000
Bank Loan 22,000
Sales 35,000
Sales return 2,000
Purchase 25,000
Purchase return 3,000
Carriage 500
Salary 6,000
Wages 1,200
Advertisement 1,500
Discount Received 300
Interest on loan 1,000
Capital 43,900

Trial Balance
(as at _________________)
$ $
14 Saleh started to maintain a petty cash book on 1 August 2019. He decided to use the imprest
system, with the monthly imprest of $150 which would be restored on the first day of each month.

Saleh’s transactions for the month of August 2019 included the following.

$
August 4 Purchased stationery 21
9 Paid Omar, a credit supplier 57
14 Bought flowers for office 10
20 Paid taxi fare 9
26 Bought tea and coffee for office 7
30 Paid cleaner 40

REQUIRED

(a) Enter the transactions in Saleh’s petty cash book on the page opposite.

Balance the petty cash book and bring down the balance on 1 September 2019. [10]
 Saleh – Petty Cash Book

Total Date Details Total Office Travel Cleaning Ledger

received paid expenses accounts
$ 2019 $ $ $ $ $

150 Aug 1 Bank .................... .................... .................... .................... ....................

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(b) (i) State the amount which was received on 1 September 2019 when the petty cash was
restored to the imprest amount.

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(ii) State the double entry for restoring the imprest amount.

debit credit

[2]

(c) Show the entries which were made in the following accounts on 31 August 2019.
It is not necessary to total or balance the accounts.

Saleh
Office expenses account

Date Details $ Date Details $

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Omar account

Date Details $ Date Details $

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[2]