Balbharati solutions, for, Book-keeping, and, Accountancy, 11th Standard, fyjc, Maharashtra State Board, Chapter 2, Meaning and Fundamentals of Double Entry Book-Keeping,
07 Nov 2020 3:57 pm
Answer in one sentence only.
1.What is Double Entry System?
Double entry system is the most scientific method of recording all business transactions in the books of accounts by giving double or two fold effects of each transaction.
2.What is an Account?
An account is a summarized record of transactions relating to a particular person, asset, liability, particular head of expense or income recorded at one place.
3.State the meaning of the Single Entry System.
A single entry system of accounting records only cash books and personal accounts and thus does not provide accurate information about the financial position of a business.
4.What is Personal Account?
Personal account represents accounts relating to individual human beings. the artificial person or accounts of certain person or group of persons in business dealing. Artificial persons mean accounts of organisations, associations, etc. which are created by law.
5.State the rule of Nominal Account.
As per Golden Rules, rule of Nominal account is as follow:
(1) Debit all expenses and losses
(2) Credit all incomes and gains.
6.Give two examples of intangible assets?
Examples of intangible assets are as follow
7.State the meaning of Real Account.
Accounts represent assets and properties owned by the business having monetary value are known as Real Account.
8.Give two examples of income and gains.
Examples of income and gains are:
(1) Discount received
(2) Rent received
(3) Profit on sale of furniture
9.State the rule of Personal Account.
As per Golden Rules, rule of Personal account is as follows:
(1) Debit the receiver.
(2) Credit the giver.
10.How many methods of recording accounting information are there?