Page 28 - DMGT104_FINANCIAL_ACCOUNTING

Financial Accounting

Notes 5. Illustrate the key points which make double entry accounting system more significant
than the other traditional accounting systems.
6. As per the double entry system of accounting what will be the impact of following
transactions on balance sheet:
(i) Mr. Rakesh started business with cash of 1,00,000
(ii) Gods sold on credit for 10000
(iii) Furniture purchased for 5000

7. Explain the meaning and importance of double entry system of accounting.
8. What is meaning of Debit and Credit?
9. Explain the different methods of accounting.
10. Explain the various types of accounts.

Answers: Self Assessment

1. Accounting 2. Internal
3. Money or money’s worth 4. Solvency

5. Transactions 6. Revenues, Expenses
7. Recording 8. Original Value
9. Book-keeping 10. Transaction

11. Single Entry 12. Double entry
13. Personal accounts 14. Natural persons’ personal account
15. Real Accounts 16. Nominal accounts
17. Journal 18. General Ledger
19. Cash book

1.11 Further Readings

Books Dr. S.N. Maheshwari, Sharad, K. Maheshwari, Financial Accounting, Vikas
Publishing Co. Pvt. Ltd., New Delhi.
Grewal, T.B, Double Entry Book-keeping.

Jain and Narang, Advanced Accountancy.
R.L. Gupta, M. Radhaswami, Advanced Accountancy, Sultan Chand, New Delhi.
T.S. Grewal, M.C. Shukla, Advanced Accounts, S. Chand, New Delhi.

Online links www.futureaccountant.com
http://www.globusz.com/

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