I.Com Part 1 Principles of Accounting chapter wise Short Question Preparation

Question # 1

Write down the difference between the journal and ledger.

Ans 1: Journal : It is book of original entry accounting entries are recorded in journal in order by date.
Ans 2: Ledger; It record classified and summarized financial information from journals as debit and credits.There is no need of narration under each account in the ledger.

Question # 2

What is bank overdraft?

Ans 1: The amount which banks allows to a customer to withdraw in excess of his deposits for the sake of depositor good will is known as bank overdraft.

Question # 3

What is meant by separate entity concept?

Ans 1: According to this concept business is treated as a separate entity from its owner.

Question # 4

What is suspense account?

Ans 1: A suspense account is an account in which those transactions are entered which can not be placed to their proper accounts immediately due to lack of some information etc.

Question # 5

What is meant by retiring of bill?

Ans 1: Retirement of bills means to make payment of the bill before the due date or maturity provides he is allowed some rebate of discount of the unexpired period.This process is called retirement of the bill under rebate.

Question # 6

What is capital loss?

Ans 1: Capital loss is a loss which is incurred on the sale of fixed assets or loss made with the rising of the capital funds of the business.

Question # 7

Explain the difference between expense and expenditure?

Ans 1: The expenditure is incurred for the purchase of an asset for the reduction of a liability,It benefits the business over a long period of time,Conversely an expense is incurred to meet running expenses of the business,.It benefit finish as soon as the payment is made.Purchase of machinery is expenditure whereas electricity charges,salary,rent etc.

Question # 8

Define drawings.

Ans 1: The amount of cash or goods taken away by the owner out of the business for his personal use is known as drawings,

Question # 9

Define discount.

Ans 1: Any deduction allowed by the seller to the purchases of the goods or merchandise is called discount,There are two types of discount viz trade discount and cash discount,.

Question # 10

Define promissory note.

Ans 1: A promissory note is an unconditional promise in writing made by one individual to another signed by the maker promising to on demand or after a fixed future date a certain sum o money to the order of the person specified these on or bearer.

Question # 11

What is cross cheque?

Ans 1: When two parallel lines are drawn across the face of cheque it is said to be crosses cheque,A crosses cheque cannot be encashed at the counter but can be collected only by a bank from the "Drawee Bank"Crossing may be general or special.

Question # 12

What is purchase return book?

Ans 1: The goods we have bought on credit if subsequently returned to the supplier for being defective are recorded in a book known as Purchases .Return book ,Purchases Return book is also known as Return Outwards books.

Question # 13

Define single column cash book.

Ans 1: In single column cash book only cash received are recorded in debit side and cash payments are recorded on credit side the balance is cash in hand.

Question # 14

What is real account?

Ans 1: Accounts which keeps records of properties or things owned by the business are called real accounts or proper accounts,Land accounts ,Machinery accounts,Furniture accounts are the example of real accounts.

Question # 15

What is meant by purchase returns?

Ans 1: When the goods purchase are found defective or unsatisfactory they are returned to the supplier.I t is called purchase return. Purchases return is also known return outwards.

Question # 16

Define unpresented cheque.

Ans 1: These are the cheque which have been issued to the creditors or other person and have been recorded in the bank column of the cash book but those cheques have not yet been presented to the bank for payment.

Question # 17

Define book keeping.

Ans 1: Book keeping is the art of recording monetary transactions in the books of accounts in a proper manner.

Question # 18

What is cash transaction?

Ans 1: If the value of a transaction is met in cash immediately it is called cash transaction.

Question # 19

What are fixed assets?

Ans 1: Fixed assets are the assets of permanent or relatively fixed nature,These assets are also called plant assets or tangible assets,These assets include equipment ,machinery,vehicle ,building ,furniture and land etc.

Question # 20

Define income statement.

Ans 1: A statement which is prepared to ascertain the net income or net loss of the business for specific accounting period is known as income statement.

Ch. #	Test Name	Total Questions	PDF File	Launch Test
1	ICOM Part 1 Principles of Accounting Chapter 1 Short Question Preparation	35	Download PDF	Launch Test
2	ICOM Part 1 Principles of Accounting Chapter 2 Short Question Preparation	4	Download PDF	Launch Test
3	ICOM Part 1 Principles of Accounting Chapter 3 Short Question Preparation	6	Download PDF	Launch Test
4	ICOM Part 1 Principles of Accounting Chapter 4 Short Question Preparation	12	Download PDF	Launch Test
5	ICOM Part 1 Principles of Accounting Chapter 5 Short Question Preparation	8	Download PDF	Launch Test
6	ICOM Part 1 Principles of Accounting Chapter 6 Short Question Preparation	16	Download PDF	Launch Test
7	ICOM Part 1 Principles of Accounting Chapter 7 Short Question Preparation	7	Download PDF	Launch Test
8	ICOM Part 1 Principles of Accounting Chapter 8 Short Question Preparation	27	Download PDF	Launch Test
9	ICOM Part 1 Principles of Accounting Chapter 9 Short Question Preparation	32	Download PDF	Launch Test
10	ICOM Part 1 Principles of Accounting Chapter 10 Short Question Preparation	2	Download PDF	Launch Test
11	ICOM Part 1 Principles of Accounting Chapter 11 Short Question Preparation	8	Download PDF	Launch Test
12	ICOM Part 1 Principles of Accounting Chapter 12 Short Question Preparation	12	Download PDF	Launch Test
13	ICOM Part 1 Principles of Accounting Chapter 13 Short Question Preparation	11	Download PDF	Launch Test
14	ICOM Part 1 Principles of Accounting Chapter 14 Short Question Preparation	0	Download PDF	Launch Test

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