BBA Bookkeeping Short Question With Answer 2020
BBA Bookkeeping Short Question With Answer 2020:- In this post, we are sharing the BBA MBA notes bookkeeping short question with an answer. In this post, we have given all the short questions about bookkeeping and accounting and their answers, so that you can prepare your paper well, and you can ask good questions in your BBA.
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Bookkeeping Short Question With Answer
BBA Bookkeeping Short Question With Answer
Q.1. What is the balancing of accounts ?
Ans. The process of ascertaining the difference between the total of both sides of an account and writing it on this side whose total is short is known as balancing of account.
Q.2. What is a double entry system?
Ans. A double-entry system means that at least two accounts are affected by a transaction in both aspects. The double entry system has proved to be a scientific and complete system of accounting followed by every enterprise and organization.
Q.3. Define trial balance?
Ans. A trial balance is a statement, prepared with the debit and credit balances of ledger accounts to test the arithmetical accuracy of the book.
Q.4. Define vouchers.
Ans. The papers, which support a transaction, are known as vouchers, The vouchers which will usually be found in a firm are the following :
- Vouchers in support of payments out of the office cash or out of the bank.
- Invoices made out for goods sold to customers or cash memos.
Q.5. What is Suspense Account?
Ans. A suspense account is an account in which the difference in trial balance has been put temporarily in order to tally the trial balance. If the debit side of the trial balance exceeds the credit side the difference is put on the credit side of the suspense account and if the credit side is more. The difference is put on the debit side.
Q.6. What do you mean by personal accounts?
Ans. The accounts which are related to an individual firm, company or an institution are called personal are called real accounts.
Q.7. Define a real Account?
Ans. The accounts which are related to the tangible or intangible assets of the firm excluding debtors are called real accounts.
Q.8. What is Ledger?
Ans. `The book which contains a classified and permanent record of all transactions of a business is called the ledger.
Q.9. How many types are petty cash books?
Ans. Petty cash books may be of two types :
- Simple petty Cashbook.
- Analytical petty cash book.
Q.10. Give any two differences between trial balance and Balance Sheet.
Ans. Differences between trial balance and balance sheet are :
- The trial balance is prepared on the basis of a balance of ledger accounts. On the other hand, the balance sheet is prepared on the basis of the balance sheet in the trial balance.
- Trial balance may be prepared monthly, quarterly, half-yearly, and yearly basis, on the other hand, balance sheet is prepared yearly.
Q.11. What are the four types of cash books?
Ans. The four types of cash books are :
- Single column cash book,
- Double column cash book,
- Triple column cash book,
- Petty cash book,
Q.12. What are the three advantages of the double-entry system?
Ans. The three advantages of the double-entry system are :
- It maintains a complete record of all business transactions. Hence, it is a complete system.
- The profit earned or loss suffered during a period can be ascertained by preparing a trading and profit and loss account.
- The financial position of a firm can be ascertained at the end of each period through the preparation of a balance sheet.
Q.13. What are the Errors disclosed by a trial balance?
Ans. The Errors disclosed by a trial balance are :
- Wrong totaling or casting of the subsidiary books.
- Posting of the wrong amount.
- Posting an amount on the wrong side.
- Omission of an amount from ledger accounts.
- Omission of an amount from the trial balance.
Q.14. What do you mean by the journal?
Ans. The book in which a transaction is recorded for the first time from a source document is called the book of Original Entry journal is one of the basic books of original entry in which transactions are originally recorded in chronological (day-to-day) order according to the principles of double-entry system.
Q.15. Give the Rules of Debit And Credit.
Ans. The Golden rules of Accounting debit and credit are :
- Personal A/c: Debit the receiver and credit the giver.
- Real A/c: Debit what comes in, credit what goes out.
- Nominal A/c: Debit all losses and expenses, credit all incomes and gains.
BBA Bookkeeping Short Question Answer 2020
BBA Bookkeeping Short Question With Answer 2020:-
Q.1. Write down the need for Accounting.
Ans. Every person doing business is interested to know the trading results of his business. Further, he would also like to know his financial position (assets and liabilities) at a given date.
In addition to proprietors, other persons who have some stake in the business need accounting information. Accounting is the language of business. If communicates the desired information to various persons. In addition to business undertakings accounting is needed by Government also.
Q.2. Write down any four objectives of Accounting.
Ans. Flowing are the four objectives of accounting :
- Maintaining a proper record of the business.
- Calculation of profit and loss.
- To show the financial position.
- To communicate the information to the users.
Q.3. What is the main Feature of Accountancy?
Ans. The main features of Accountancy are :
- In terms of money.
- Transactions and Events.
- Interpretations of results.
Q.4. Write Down the System of Accounting.
Ans. There is two Systems of Accounting :
- Cash system accounting.
- Accrual system of accounting.
Q.5. What is the Branch of Accounting?
Ans. Accounting has three main branches :
- Bookkeeping and financial accounting.
- Cost accounting.
- Management accounting.
Q.6. Give any five advantages of accounting.
Ans. Following are the five advantages of accounting :
- Replace money.
- Give assistance to management.
- Act as legal evidence.
- Helps in taxation matters.
- Facilitates sale of business.
Q.7. What is Management?
Ans. The management uses accounting information to arrive at many decisions such as determination of selling price, investments to be made, cost controls and reduction, etc.
Q.8. What is Sales Book?
Ans. A sales book is used for recording credit sales of goods dealt in by the firm. Hence, cash sale of goods and sale of any other assets, e.g. sales of machinery, etc. are not recorded in this book.
Q.9. Differentiate between profit & loss account and balance sheet.
Ans. The profit and loss account shows the profit or loss of a business over a given period of time e.g. 3 Months, 1 Year etc. In contrast the balance sheet is like a photograph taken at an instant in time giving a picture of what the business owns and what the business owes at that moment in time. As we shall see it will always balance because what the business owns is financed by what the business owes.
One of the most important objectives of a business is to make a profit. The profit and loss account shows the extent to which it has been successful in achieving this objective.
Q.10. Mention the four basic principles of accounting?
Ans. Four basic principles of accounting are :
- Verifiability, objectivity, and evidence.
- Revenue Recognition principles.
- Convention to full disclosure.
- Dual aspect.
Q.11. Define Financial accounting.
Ans. Nearly every business enterprise has an accounting system. It is a means of collecting. Analyzing and reporting monetary terms information about the business.
Q.12. What is bookkeeping?
Ans. Bookkeeping is that branch of knowledge that tells us how to keep a record of financial transactions. It is mainly concerned with record-keeping or maintenance of accounts in a systematic manner. It is restricted to journals, subsidiary books,s and ledger accounts only.
Q.13. Who is Proprietor?
Ans. The proprietor is the main user of accounting through accounts he ascertains the operating results of his business. Further, he knows his financial position (assets and liabilities). He uses accounting information to know amounts due to others and due from others.
Q.14. Define goods and revenue.
Ans. Goods: The articles or things purchased for sale or for sale or for use in the manufacture of certain other goods as raw materials are called goods.
Revenue: It refers to the amount charged by a business entity for the goods sold or services rendered or by permitting others to use its resources.
Q.15. What do you mean by Accounting as a Measurement Discipline?
Ans. Measurement in accounting has traditionally meant the assignment of numerical values to objectives or events related to an enterprise and obtained in such a way that they are suitable for aggregation (such as total valuation of assets ) or disaggregation as required for specific situations.
BBA Bookkeeping Question paper