Chapter 8 Bills of Exchange Short Answer Type Questions Question1. Name any two types of commonly used negotiable instruments. Solution: Cheques and Bills of exchange are the commonly used negotiable instruments. Question 2. Write two points of distinction between...
Chapter 7 Depreciation, Provisions and Reserves Short Answer Type Questions Question 1. What is ‘Depreciation’? Solution: Depreciation means fall in book value of depreciable fixed asset because of wear and tear of the asset passage/efflux of time obsolescence...
Chapter 6 Trial Balance and Rectification of Errors Short Answer Type Questions Question 1. State the meaning of a Trial Balance.Solution: Trial balance is a statement prepared to check the arithmetical accuracy of transactions recorded in the journal,...
Chapter 5 Bank Reconciliation Statement Short Answer Type Questions Question 1. State the need for the preparation of bank reconciliation statement? Solution: The need and importance of the bank reconciliation statement are as follows: It ensures accuracy of the...
Chapter 4 Recording of Transactions-II Short Answer Type Questions Question 1. Briefly state how the cash book is both journal and a ledger? Answer : Transactions are recorded directly from source documents in the Cash Book, so there is no need to record...
