Practice Questions on Introduction to Accounting | Test Your Understanding on Basic Terms of Accounting | Class 11 Accountancy

Practice Questions on Introduction to Accounting | Test Your Understanding | Class 11 Accountancy

 

Try these questions on Introduction to Accounting and Share your answers in the comment section (correct answers given at the end)

 

Rajesh started a business for buying and selling of books with Rs. 2,00,000 as an initial investment. Out of this, he paid Rs. 50,000 for buying furniture and Rs.100,000 for buying books. He also bought books worth Rs. 25,000 on credit from Shyam. He employed a salesperson to whom he paid Rs. 5,000 as salary. Other expenses included rent of Rs. 8,000 for the shop. He sold some of the books for Rs. 60,000 for cash and some other books for Rs. 20,000 on credit basis to Mohan. Some of the furniture which costed Rs. 20,000 was sold for Rs. 25,000. Rajesh withdrew the books worth Rs. 2,500 for gifting them to his son on his birthday. 

In the context of above case, answer the following questions:

1. What is the amount of capital with which Rajesh started business?
2. Name the fixed asset that he bought. Also, state the amount spent to purchase it.
3. Which of the following can be termed as goods for the business? (Cash, books or furniture)
4. What is the value of goods he purchased?
5. Who is the creditor and state the amount payable to him?
6. What are his total expenses?
7. Who is the debtor and state the amount receivable from him?
8. What is the gain or loss he earned/suffered on selling the furniture?
9. What is the amount of drawings?
10. Mention if the following are assets, liabilities, revenues or expenses: furniture, rent paid for the shop, salary paid to salesperson, sales, Shyam, Mohan.

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