Tamil Nadu Board of Secondary EducationHSC Commerce Class 11th

# Tamil Nadu Board Samacheer Kalvi solutions for Class 11th Accountancy Answers Guide chapter 3 - Books of Prime Entry [Latest edition]

## Chapter 3: Books of Prime Entry

Multiple choice questions [Pages 57 - 58]

### Tamil Nadu Board Samacheer Kalvi solutions for Class 11th Accountancy Answers Guide Chapter 3 Books of Prime EntryMultiple choice questions [Pages 57 - 58]

Multiple choice questions | Q I 1. | Page 57

Accounting equation signifies ___________.

• Capital of a business is equal to assets

• Liabilities of a business are equal to assets

• Capital of a business is equal to liabilities

• Assets of a business are equal to the total of capital and liabilities

Multiple choice questions | Q I 2. | Page 57

‘Cash withdrawn by the proprietor from the business for his personal use’ causes ____________.

• Decrease in assets and decrease in owner’s capital

• Increase in one asset and decrease in another asset

• Increase in one asset and increase in liabilities

• Increase in asset and decrease in capital

Multiple choice questions | Q I 3. | Page 57

A firm has assets of ₹ 1,00,000 and the external liabilities of ₹ 60,000. Its capital would be ___________.

• ₹ 1,60,000

• ₹ 60,000

• ₹ 1,00,000

• ₹ 40,000

Multiple choice questions | Q I 4. | Page 57

The incorrect accounting equation is _____________.

• Assets = Liabilities + Capital

• Assets = Capital + Liabilities

• Liabilities = Assets + Capital

• Capital = Assets – Liabilities

Multiple choice questions | Q I 5. | Page 57

Accounting equation is formed based on the accounting principle of _____________.

• Dual aspect

• Consistency

• Going concern

• Accrual

Multiple choice questions | Q I 6. | Page 58

Real account deals with ____________.

• Individual persons

• Expenses and losses

• Assets

• Incomes and gains

Multiple choice questions | Q I 7. | Page 58

Which one of the following is representative personal account?

• Building A/c

• Outstanding salary A/c

• Mahesh A/c

• Balan and Co. A/c

Multiple choice questions | Q I 8. | Page 58

Prepaid rent is a ____________.

• Nominal A/c

• Personal A/c

• Real A/c

• Representative personal A/c

Multiple choice questions | Q I 9. | Page 58

Withdrawal of cash from business by the proprietor should be credited to ____________.

• Drawings A/c

• Cash A/c

• Capital A/c

• Purchases A/c

Multiple choice questions | Q I 10. | Page 58

In double entry system of book keeping, every business transaction affects _________.

• Minimum of two accounts

• Same account on two different dates

• Two sides of the same account

• Minimum three accounts

Very short answer questions [Page 58]

### Tamil Nadu Board Samacheer Kalvi solutions for Class 11th Accountancy Answers Guide Chapter 3 Books of Prime EntryVery short answer questions [Page 58]

Very short answer questions | Q II 1. | Page 58

What are source documents?

Very short answer questions | Q II 2. | Page 58

What is the accounting equation?

Very short answer questions | Q II 3. a) | Page 58

Write any one transaction which decreases the assets and decreases the liabilities

Very short answer questions | Q II 3. b) | Page 58

Write any one transaction which increases one asset and decreases another asset

Very short answer questions | Q II 4. | Page 58

What is meant by journalising?

Very short answer questions | Q II 5. | Page 58

What is the real account?

Very short answer questions | Q II 6. | Page 58

How are personal accounts classified?

Very short answer questions | Q II 7. | Page 58

State the accounting rule for the nominal account.

Very short answer questions | Q II 8. | Page 58

Give the golden rules of double entry accounting system.

### Tamil Nadu Board Samacheer Kalvi solutions for Class 11th Accountancy Answers Guide Chapter 3 Books of Prime EntryShort answer questions [Page 58]

Short answer questions | Q III 1. | Page 58

Write a brief note on accounting equation approach of recording transactions.

Short answer questions | Q III 2. | Page 58

What is an Account?

Short answer questions | Q III 2. | Page 58

Classify the accounts with suitable examples.

Short answer questions | Q III 3. | Page 58

What are the three different types of personal accounts?

Short answer questions | Q III 4. | Page 58

What is the accounting treatment for insurance premium paid on the life of the proprietor?

Short answer questions | Q III 5. | Page 58

State the principles of double-entry system of book-keeping.

Short answer questions | Q III 6. | Page 58

Briefly explain about steps in journalising.

Short answer questions | Q III 7. | Page 58

What is the double-entry system?

Short answer questions | Q III 7. | Page 58

State the advantages of the double-entry system.

Exercises [Pages 59 - 61]

### Tamil Nadu Board Samacheer Kalvi solutions for Class 11th Accountancy Answers Guide Chapter 3 Books of Prime EntryExercises [Pages 59 - 61]

Exercises | Q IV 1. (a) | Page 59

Complete the accounting equation.

Assets = Capital + Liabilities

₹ 1,00,000 = ₹  80,000 + ?

Exercises | Q IV 1. (b) | Page 59

Complete the accounting equation.

Assets = Capital + Liabilities

₹ 2,00,000 = ? + ₹  40,000

Exercises | Q IV 1. (c) | Page 59

Complete the accounting equation.

Assets = Capital + Creditors

? = ₹ 1, 60,000 + ₹ 80,000

Exercises | Q IV 2. | Page 59

For the following transactions, show the effect on the accounting equation.

1. Raj started business with cash - ₹ 40,000
2. Opened bank account with a deposit of - ₹ 30,000
3. Bought goods from Hari on credit for - ₹ 12,000
4. Raj withdrew cash for personal use - ₹ 1,000
5. Bought furniture by using debit card for - ₹ 10,000
6. Sold goods to Murugan and cash received - ₹ 6,000
7. Money withdrawn from bank for office use - ₹ 1,000
Exercises | Q IV 3. | Page 59

Prepare accounting equation for the following transactions.

1. Murugan commenced business with cash ₹ 80,000
2. Purchased goods for cash ₹ 30,000
3. Paid salaries by cash ₹ 5,000
4. Bought goods from Kumar for ₹ 5,000 and deposited the money in CDM.
5. Introduced additional capital of ₹ 10,000
Exercises | Q IV 4. | Page 59

What will be the effect of the following on the accounting equation?

1. Sunil started business with ₹ 1,40,000 cash and goods worth ₹ 60,000
2. Purchased furniture worth ₹ 20,000 by cash
3. Depreciation on furniture ₹ 800
4. Deposited into bank ₹ 40,000
5. Paid electricity charges through net banking ₹ 500
6. Sold goods to Ravi costing ₹ 10,000 for ₹ 15,000
7. Goods returned by Ravi ₹ 7,500 (costing ₹ 5,000)
Exercises | Q IV 5. | Page 59

Create an accounting equation on the basis of the following transactions:

1. Rakesh started business with a capital of ₹ 1,50,000
2. Deposited money with the bank ₹ 80,000
3. Purchased goods from Mahesh and paid through debit card ₹ 25,000
4. Sold goods (costing ₹ 10,000) to Mohan for ₹ 14,000 who pays through debit card
5. Commission received by cheque and deposited the same in the bank ₹ 2,000
6. Paid office rent through ECS ₹ 6,000
7. Sold goods to Raman for ₹ 15,000 of which ₹ 5,000 was received at once
Exercises | Q IV 6. | Page 60

Create an accounting equation on the basis of the following transactions:

1. Started business with cash ₹ 80,000 and goods ₹ 75,000
2. Sold goods to Shanmugam on credit for ₹ 50,000
3. Received cash from Shanmugam in full settlement ₹ 49,000
4. Salary outstanding ₹ 3,000
5. Goods costing ₹ 1,000 given as charity
6. Insurance premium paid ₹ 3000
7. Out of insurance premium paid, prepaid is ₹ 500
Exercises | Q IV 7. | Page 60

Enter the following transactions in the journal of Manohar who is dealing in textiles:

 2018 March Particulars ₹ 1 Manohar started business with cash 60,000 2 Purchased furniture for cash 10,000 3 Bought goods for cash 25,000 6 Bought goods from Kamalesh on credit 15,000 8 Sold goods for cash 28,000 10 Sold goods to Hari on credit 10,000 14 Paid Kamalesh 12,000 18 Paid rent 500 25 Received from Hari 8,000 28 Withdrew cash for personal use 4,000
Exercises | Q IV 8. | Page 60

Pass journal entries in the books of Sasi Kumar who is dealing in automobiles.

 2017 Oct Particulars ₹ 1 Commenced business with goods 40,000 3 Cash introduced in the business 60,000 4 Purchased goods from Arul on credit 70,000 6 Returned goods to Arul 10,000 10 Paid cash to Arul on account 60,000 15 Sold goods to Chandar on credit 30,000 18 Chandar returned goods worth 6,000 20 Received cash from Chandar in full settlement 23,000 25 Paid salaries through ECS 2,000 30 Sasi Kumar took for personal use goods worth 10,000
Exercises | Q IV 9. | Page 61

Journalise the following transactions in the books of Ramesh who is dealing in computers:

 2018 March Particulars 1 Ramesh started business with cash ₹ 3,00,000, Goods ₹ 80,000 and Furniture ₹ 27,000. 2 Money deposited into bank ₹ 2,00,000 3 Bought furniture from M/s Jayalakshmi Furniture for ₹ 28,000 on credit. 4 Purchased goods from Asohan for ₹ 5,000 by paying through debit card. 5 Purchased goods from Guna and paid through net banking for cash ₹ 10,000 6 Purchased goods from Kannan and paid through credit card ₹ 20,000 7 Purchased goods from Shyam on credit for ₹ 50,000 8 Bill drawn by Shyam was accepted for ₹ 50,000 9 Paid half the amount owed to M/s Jayalakshmi Furniture by cheque 10 Shyam’s bill was paid
Exercises | Q IV 10. | Page 61

Raja has a hotel. The following transactions took place in his business. Journalise them.

 Jan. Particulars ₹ 1 Started business with cash 3,00,000 2 Purchased goods from Rajiv on credit 1,00,000 3 Cash deposited with the bank 2,00,000 20 Borrowed loan from bank 1,00,000 22 Withdrew from bank for personal use 800 23 Amount paid to Rajiv in full settlement through NEFT 99,000 25 Paid club bill of the proprietor by cheque 200 26 Paid electricity bill of the proprietor’s house through debit card 2,000 31 Lunch provided at free of cost to a charity 1,000 31 Bank levied charges for locker rent 1,000
Exercises | Q IV 11. | Page 61

From the following transactions of Shyam, a stationery dealer, pass journal entries for the month of August 2017.

 Aug. Particulars 1 Commenced business with cash ₹ 4,00,000, Goods ₹ 5,00,000 2 Sold goods to A and money received through RTGS ₹ 2,50,000 3 Goods sold to Z on credit for ₹ 20,000 5 Bill drawn on Z and accepted by him ₹ 20,000 8 Bill received from Z is discounted with the bank for ₹ 19,000 10 Goods sold to M on credit ₹ 12,000 12 Goods distributed as free samples for ₹ 2,000 16 Goods taken for office use ₹ 5,000 17 M became insolvent and only 0.80 per rupee is received in final settlement 20 Bill of Z discounted with the bank is dishonoured
Exercises | Q IV 12. | Page 61

Mary is a rice dealer having business for more than 5 years. Pass journal entries in her books for the period of March, 2018.

 March Particulars ₹ 1 Cement bags bought on credit from Sibi 20,000 2 Electricity charges paid through net banking 500 3 Returned goods bought from Sibi 5,000 4 Cement bags taken for personal use 1,000 5 Advertisement expenses paid 2,000 6 Goods sold to Mano 20,000 7 Goods returned by Mano 5,000 8 Payment received from Mano through NEFT 15,000

## Tamil Nadu Board Samacheer Kalvi solutions for Class 11th Accountancy Answers Guide chapter 3 - Books of Prime Entry

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Concepts covered in Class 11th Accountancy Answers Guide chapter 3 Books of Prime Entry are Transaction, Introduction to Book of Prime Entry, Source Documents, Journal Entries, Double Entry System, Account, Approaches of Recording Transactions, Accounting Rules.

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