Karnataka State Board Social Science Business Studies Class 9 Chapter 3 Accounting in Business Exercise Question and Answer.
FILL IN THE BLANKS
1.) The book in which the daily business transactions are recorded is called journal
2.) The transaction Paid salaries comes under nominal kinds of accounts
3.) The modern and scientific method of maintaining accounts is called double entry system of book keeping.
4.) The difference between debit and credit side of an account is called balance of an account
5.) The two accounts of commenced business with cash are cash account and capital account
6.) The profit earned by trade is transferred to account
7.) The permanent assets lose a portion of their value every year is called depreciation
8.) The difference between assets and liabilities of a trade is called equity
ANSWER THE FOLLOWING QUESTIONS
Q1. Which is the original entry in Accounting? Why it is called the book of original entry.
Ans. journal is the original entry in accounting. journal is called original entry because all the transactions that are made recorded in it.
Q2. What are the types of accounts? Give example
Ans There are three types of accounts are as follow
- Personal Account Pinki s a\c
- Real account Furniture a\c
- Nominal Account eg Rates and Taxes A\c
Q3. What is the need for accounting in business
Ans. Accounting is required in business because to know the net profit and loss they had. It is also helpful in transaction of business such as purchase of goods, sale of goods, receipt of income to know the result of these matters. Where as it is also needed to know the amount due by the firm to others or due to the firm by others.
Q4. What is double entry system of book keeping?
Ans Double entry system of book keeping involves two aspects one gives benefits and another receive benefits. Every aspect have a ledger. And all are transactions are recorded in books.
Q5. Which are the final account. What is the result of profit and loss account.
Ans There are two types of final account
- Trading and profit and loss account
- Balance sheet
Profit and loss account contains gross profit and loss brought down from trading account and also expenses and loses from non trading items.
Q6 “There is no need to find out balance of good sold account and good purchase account” why.
Ans As we all know in trading account it always keeps the record of all buying and selling goods and also maintain balance data and at the same time it calculate gross profit and gross loss.
Q7 What is the result of depreciation of fixed assets
Ans It decrease the price of fixed assets.
The capacity of work may fall.
It may also reduce the residual value.
It may also create obsolescence.