KSEEB Solutions for Class 9 Business Studies Chapter 3 Accounting in Business

Students can Download Business Studies Chapter 3 Accounting in Business Questions and Answers, Notes, KSEEB Solutions for Class 9 Social Science helps you to revise the complete Karnataka State Board Syllabus and score more marks in your examinations.

Karnataka State Syllabus Class 9 Social Science Business Studies Chapter 3 Accounting in Business

Class 9 Social Science Accounting in Business Textual Questions and Answers

I. Fill in the blanks with appropriate words in the following sentences.

Question 1.
The book in which the daily business transactions are recorded is called _________
Answer:
Rough book.

Question 2.
The transaction, “Paid salaries” comes under _________ kind of accounts.
Answer:
Nominal.

Question 3.
The Modern and scientific method of maintaining accounts is called __________ system of Bookkeeping.
Answer:
Double-entry.

Question 4.
The difference between the debit and credit side of an account is called ___________
Answer:
Balance Account.

Question 5.
The two accounts of “commenced business with cash are” ___________ and ___________
Answer:
Debit – Credit

Question 6.
The profit earned by Trade is transferred to __________ account.
Answer:
Credit.

Question 7.
“The permanent assets lose a portion of their value every year”, it is called __________
Answer:
Depreciation.

Question 8.
The difference between Assets and Liabilities of a Trade is called ______________
Answer:
Capital.

II. Answer the following questions :

Question 1.
Which is the book of original entry in Accounting? Why is it called the book of original entry?
Answer:
The journal in which the full particulars of the journals are recorded first is called the book of original entry. The journal entries very important and they are original. Without these original entries, it is impossible to transfer them to the respective ledger accounts.

Question 2.
What are the types of Accounts? Give examples.
Answer:
There are three types of Accounts. They are :

1. Personal Account
2. Real Accounts
3. Nominal Accounts. In personal account – Debiting the benefit receiver’s account and crediting to the benefit giver’s account. A debit is what comes in and credit is what goes out.

Question 3.
What is the need for accounting in business?
Answer:
Every business concern is started to earn a profit. The concern earns profit through transactions of the business such as the purchase of goods, sale of goods, receipt of incomes, expenses, incurring losses, etc. to know all these things is very important. Accounting is needed to know the net profit earned or the loss suffered. It is also required to know the amounts due by the firm to others or due to the firm by others. For all these purposes it is very essential to write down accounts.

Question 4.
What is the Double-entry system of bookkeeping?
Answer:
Every business transaction involves two aspects. Of these one aspect gives the benefit and the other aspect receives the benefit. Both of these aspects are to be recorded in books. For every aspect, there is an account in the ledger. Every ledger account has two sides, one account receives the benefit and the other account gives the benefit. While entering the aspects, we enter two aspects on opposite sides. This system is called the Double entry system of book-keeping.

Question 5.
Which are the final accounts? What is the result of the profit and loss account?
Answer:
Trial Balance is prepared to ascertain the arithmetical accuracy of ledger accounts. After ascertaining the accountancy of ledger, Final accounts are prepared. It is also called Financial Statements. Final accounts consist of two statements. They are

1. Trading and profit and loss a/c
2. Balance Sheet

Trading and Profit and Loss account may be divided into two accounts, namely,

• Trading account
• Profit and Loss account

They may be prepared separately, but general practice is that they are prepared together. A trading account gives the result of buying and selling. It includes all the expenses incurred for buying and selling or manufacturing goods* The result is gross profit or gross loss. Profit and Loss account contains Gross Profit or Gross loss, brought down from trading account and also all the expenses and losses and all gains or profits which are of non-trading items.

Question 6.
“There is no need to find out the balance of goods sold account and goods purchases account? Why?
Answer:
Goods account appears as goods purchases account and goods sales account. These accounts are balanced but taken as purchases account, sales account, shown in the trial balance. So there is no need to find out the balance of goods sold account and goods purchases account.

Question 7.
What is the result of the depreciation of fixed assets?
Answer:
The balance sheet is the statement contains all assets and liabilities. Of these, the permanent assets lose their value every year. It is called the “Depreciation”. As a result of the depreciation of fixed assets, it is deducted from the asset and shown as a loss.

Additional Questions:

Question 1.
Mention the two accounts of the following transactions and give the rule for debiting and crediting of them.

1. Shivaraj started a business.
2. Bought goods from Mohan.
3. Goods returned to Rajesh.
4. Paid rent for premises.

Answer:

1. Shivaraj started a business :
   Two accounts and debit credit effect.
   • Cash account, Real account – comes in debt.
   • The capital account, personal account – given in credit.
2. Bought goods from Mohan:
   • Goods purchases real account – debit what comes it.
   • Mohan – personal account – credit the given.
3. Goods returned to Rajesh :
   Two accounts and debit credit effect.
   • Rajesh account and personal account – debit the receiver.
   • Sales account – real account – credit what goes out.
4. Paid rent for premises :
   Two accounts and debit credit effect.
   • Rent account – nominal account – debit expenses.
   • Cash account – Real account – credit what goes out.