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Chapter 7 Double Entry System: Very Short Questions
Chapter 7 Double Entry System: Very Short Questions
Question 1
Solution: The double-entry system is an accounting system which affects at least two accounts
simultaneously with every transaction. Two such examples are debit and credit account.
Question 2
Question 3
Solution: The account which is linked to a single company, institution, or a firm is known as a
personal account.
Question 4
Solution: These are accounts whose value is estimated in money and the business properties are
known as a real account. Few examples are furniture account, cash account, etc.
Question 5
Solution: All the accounts which are only mentioned but does not really exist is known as nominal
account. For instance expense and income account.
Question 6
Solution: ‘Natural Personal Account’ means all the account linked to a human being. Such as
Priya’s account.
Question 7
Solution: These accounts do not have a physical existence, such as human being, but are
considered as a personal account. For example, a company’s account.
Question 8
Question 9
Solution: The rule of recording transactions in a personal account is depicting debitor as receiver
and creditor as a giver.
Question 10
Solution: The rule of recording transactions in a personal account is recording debit as what
comes in and credit as what goes out.
Question 11
Solution: The rule of recording transactions in a personal account is recording debit as losses and
expenses and credit as gains ans income.
Practical Questions
Question 1
Solution:
Question 2
1. Capital 2. Drawings 3. Cash paid 4. Cash Received 5. Commission Paid 6. Commission Received
7. Purchases A/c 8.Sales A/c 9. Furniture 10. Cash A/c 11. Bank A/c 12. Bank Overdraft 13.
Debtors A/c 14. Creditors A/c 15. Travelling Expenses 16. Goodwill 17. Patents 18. Salary A/c 19.
Salary Outstanding A/c 20. Insurance A/c 21. Insurance Prepaid A/c 22. Bad Debts are written off
23. Bad Debts Recovered
Solution
3. Cash paid
19. Salary Outstanding A/c 17. Patents 22. Bad Debts are written off