SHORT QUESTIONS

short answers of the following questions
-What is meant by "Transaction**?... „ 21
Differentiate between "External transaction" & Internal transaction**?,..... 23
What is meant by 'Taper transaction"?..... , 23
What do you meant by "Monetary Events" & "Non-Monetary Events" 21
Differentiate between "Quantitative changes'* & Qualitative changes"?.... 22
What are the three basic elements of accounting equation? 24
Liabilities of a business Rs. 1,50,000 which are 0.25 of proprietorship what will be the amount
of: .; ™:......... 24,
'(a) Assets . (b) Capital
• Write a transaction that will: 30
Increase a liability and increase an asset?
Increase an asset and increase Proprietorship?
Decrease an asset and increase an asset?
Decrease an asset and decrease in owner's equity?
Increase an asset and increase a liability?
• What will be the amount of capital if assets are amounting Rs. 50,000 and liabilities
Rs. 35,000 ; , ^ 24
• What are the rules for deciding whether a transaction is cash or credit?. «««..«... ...23
• . Distinguish between cash transaction and credit transaction. ~ «...*.! .22
Define the term "Equities". - 833
mpute the missing amount in each of the following cases; 24
Assets Liabilities Owner's equity
(i) 1,05,000 ? 70,000
(u) ? 35,000 90,000
(Hi) 75,500 40,200 ? \ J
(iv) 99,500 ? 50500
(v) ? 95,000 1,03,000
Ant: fti) L= 35,000; (u) A = 1.25,000; (in) O.E - 35.300; (iv) L * 49.000; (v)A * 1,98.000]
THEORETICAL QUESTIONS
What is a transaction in a business? How does it differ from an event? what are the features bf a
transaction?
What are different types of business transactions?
State with reasons which of the following events may be regarded as transaction Mr. Akram, a
trader;

Mr. Akram started business with Rs. 100,000
He bought furniture for Rs. 10,000 and opened a bank account with Rs. 30,000 .
He placed an order with Rehman & Sons for the. purchase of goods worth Rs. 15000.
He appointed Rizwan as accountant at a salary of Rs. 1500 per month
He bought goods for Rs. 5000
Ana:
4, 5.

He agreed to selj goods/or Rs. 10,000 jo Rashjji :
There was a theft of cash for Rs. 2000 in his business
He dismissed Riz wan from service
He paid Rizwan Rs. 5000 as compensation from his service
He withdrew cash of Rs. 2000 for his private use
{Transactions; 1,2,5,7,9,10]
What do you mean by an Accounting Equation?
Briefly describe the effects of various common transactions on accounting equation.
PROBLEMS
1. Show the affects of following transaction on Accounting Equation:
(i) Mr, Saleem started business with Goods Rs. 40,000 Building Rs. 100,000 & Rs. 110,000.
(B) Purchases goods on account for Rs. 30,000. {ii i) Sold goods on account for Rs. 40,000. (Iv) Cash of Rs. 20,000 deposited into bank. (v) Paid cash to supplier of goods Rs. 20,000. . (vi) Received cash from customers Rs. 30,000.
(vii) A part of building costing Rs. 30,000 was destroyed by fire. (vtti) He made additional invesdnent by cheque Ks. 24),(HM). (fa) Paid salaries Rs. 4,000 by cheque. (x) Goods returned to supplier amounting to Rs. 4,000. Ans: {Rs, 242,000],
2. Show the affects of following transactions on the Accounting Equation;
Mr. Naeem started business with cash Rs. 3,00,000
He purchased furniture for Rs. 15,000
'(c) He purchased goods worth Rs. 75,000 for cash
(d) He paw*>a^ good* worth R«.45,0«0 on credit
(«>' He bought office equipment for Rs. 22,500
(f) He sold goods for Rs. 45,000 costing Rs. 37,500
(g) He sold goods to Saleem for Rs. 30,000 costing Rs. 25,500 on credit basis
(b) He withdrew cash Rs.4,500 for his personal use
(I) He nude additions investment in cash Rs. 22,500 (j) Cash paid to creditors Rs. 37,500 (k) Cash received from Saleem Rs. 22,500 (I) He paid salaries Rs.4,500 (m) He paid rent of building Rs. 3,000. Ana: Rs< 330,000].
Transactions AND ACCOUNTING