Page 168 - Account 10

Exercise

A. Answer the following questions in one sentence.
1. What are prepaid expenses?
2. What are bad debts recovered?
3. What is Reserve Fund?
4. What is bank overdraft?
5. What is adjustment?
6. What is accrued income?
7. What is drawing?
8. Write any two examples of intangible asset.
9. What is liabilities? 2068 (R)

B. Give short answers to the following questions.
10. Define a balance sheet. Mention its any four objectives.
11. Describe any five points of importance of balance sheet.
12. Briefly describe the advantages of balance sheet.
13. Draw-up a specimen of a balance sheet along with its left hand side and right-
hand side items.
14. Distinguish between a trial balance and a balance sheet.
15. Write short notes on the following
Capital & drawing Bank overdraft
Fictitious assets Revenue income and expenses
Outstanding expenses Depreciation
Capital income and expenditure Fixed assets

NUMERICAL PROBLEMS

16. Prepare Balance Sheet in the book of Kaji Lal & Co. as on 30-12-2075, with the
help of the following balances:
Capital 60,000 Drawing 5,000
Leasehold land 25,000 Freehold premises 20,000
Goodwill 13,000 Trade mark 7,000
Plant and machinery 15,000 Fixtures and fitting 2,000
Bills payable 6,000 Bills receivables 4,000
Sundry debtors 16,000 Sundry creditors 24,000
Cash in hand 700 Cash at bank 1,000
Reserve fund 20,000 Net profit 18,700
Stock 20,000
Ans: B/S. Total: 1,23,700

168 Aakar’s Office Practice and Accountancy - 10 Final Accounts 169