problem 1: What do you mean by the term business? Describe the different forms of business organization?

problem 2: ‘Accounting Equation is true beneath all circumstances’. Justify this statement with the help of five exs.

problem 3: prepare short notes on the given terms:

a) Narration
b) Ledger Folio
c) Opening Entry
d) Compound Entry (4 × 3)

problem 4: Prepare a Bank Reconciliation Statement in the books of Neha Ltd. As on 30th June, 2010 from the given information
                                                                                                               Rs.
A) Credit Balance (Overdraft) as per Cash Book as on 30th June, 2010               15,000
B) Cheque deposited but not yet credited by the Bank                                     8,500
C) Another Cheque deposited but dishonored                                                  1,200
D) Cheques issued but not yet presented for payment                                      6,000
E) Interest on overdraft not recorded in Cash Book                                           780
F) A cheque of Rs. 2,420 received from a customer, although entered in the Cash Book, was not sent to bank.

problem 5: ‘Is Trial Balance just a proof of Arithmetical accuracy’? Describe the errors which are not disclosed through a trial balance.

problem 6: What do you meant by the term Suspence Account? Why is it opened and how is it closed?

problem 7: From the given Trail balance of Shri Rai Bahadur prepare Trading and Profit and Loss A/c for the year ending 31st December, 2010 and Balance Sheet as on that date. The Closing Stock on 31st December, 2010 was valued at Rs. 25,000.