CUET 2024 Accounts Final Attack

Types of Debenture
From Security Point of View
From Redemption Point of View
From Records Point of View
From Priority Point of View
From the Point of View of Coupon Rate
From Convertibility Point of View

Issue of Debentures for Consideration
Other than Cash
1. Purchase of an Asset
2. Purchase of Business
3. Underwriting
Commission
4. Incorporation Expenses
Issue of Debentures for Consideration Other than Cash
1. Purchase of an Asset Vendor’s A/c …Dr.

To % Debentures A/c
Asset A/c …Dr. OR

Vendor’s A/c …Dr.
To Vendor’s A/c
To % Debentures A/c
To Securities Premium A/c
OR
Discount on Issue of Debentures A/c …Dr.
To % Debentures A/c
2. Purchase of an Business
Sundry Asset A/c …Dr. OR

To Sundry Liabilities A/c Sundry Asset A/c …Dr.
To Vendor’s A/c Goodwill A/c …Dr.
To Sundry Liabilities A/c
To Vendor’s A/c
OR
Sundry Asset A/c …Dr.
To Sundry Liabilities A/c
To Vendor’s A/c
To Capital Reserve A/c
2. Purchase of an Business Vendor’s A/c …Dr.

To % Debentures A/c
OR
To % Debentures A/c
OR
To % Debentures A/c
3. Underwriting Commission Underwriter’s A/c …Dr.

To % Debentures A/c
Underwriting Comm. A/c …Dr.

OR
To Underwriter’s A/c Underwriter’s A/c …Dr.
To % Debentures A/c
OR
Underwriter’s A/c …Dr.
To % Debentures A/c
4. Incorporation Expenses Promoter’s A/c …Dr.

To % Debentures A/c
Formation Expenses A/c …Dr.

OR
To Promoter’s A/c Promoter’s A/c …Dr.
To % Debentures A/c
OR
Promoter’s A/c …Dr.
To % Debentures A/c
Issue of Debentures as Collateral Security
1st Method 2nd Method
Show in Notes to
Accounts
Show in Brackets with Liability

Issue of Debentures as Collateral Security
1st Method 2nd Method
Show in Notes to Debentures Suspense A/c
Accounts To % Debentures A/c
Show in Brackets with Liability

Deduct from the debentures
Term Loan from Bank 400000

% Debentures 500000
Less: Debentures Suspense A/c 500000
Issue of Debentures (with Redemption Point of View)
Issue Redemption
At par At par
At premium At par
At discount At par
At par At premium
At premium At premium
At discount At premium
Issued 1,000, 10% Debentures Redeem 1,000, 10% Debentures
Case 1 @Rs. 100 (Par) @Rs. 100 (Par)
Bank A/c …Dr. 1,00,000

To Debentures Application & Allotment A/c 1,00,000
Debentures Application & Allotment A/c …Dr. 1,00,000

To 10% Debentures A/c 1,00,000
Case 2 @Rs. 110 (Rs. 10 Premium) @Rs. 100 (Par)
Bank A/c …Dr. 1,10,000


To Securities Premium A/c 10,000
Case 3 @Rs. 96 (Rs. 4 Discount) @Rs. 100 (Par)
Bank A/c …Dr. 96,000

To Debentures Application & Allotment A/c 96,000
Debentures Application & Allotment A/c …Dr. 96,000

Discount on Issue of Debentures A/c …Dr. 4,000
Case 4 @Rs. 100 (Par) @Rs. 120 (Rs. 20 Premium)
Bank A/c …Dr. 1,00,000


Loss on Issue of Debentures A/c …D 20,000
To Premium on Redemption of Debentures A/c 20,000
Case 5 @Rs. 110 (Rs. 10 Premium) @Rs. 120 (Rs. 20 Premium)
Bank A/c …Dr. 1,10,000

Loss on Issue of Debentures A/c …Dr. 20,000
To Securities Premium A/c 10,000
Case 6 @Rs. 96 (Rs. 4 Discount) @Rs. 120 (Rs. 20 Premium)
Bank A/c …Dr. 96,000

To Debentures Application & Allotment A/c 96,000
Debentures Application & Allotment A/c …Dr. 96,000
Discount on Issue of Debentures A/c …Dr. 4,000
Loss on Issue of Debentures A/c …Dr. 20,000
Discount or Loss on Issue of Debentures
Capital
Securities Premium A/c …Dr. Loss है ये
Statement of Profit and Loss …Dr.
To Discount/Loss on Issue of Debenture A/c
Redemption of Debentures
• Redemption of debentures means repaying or returning the
amount of debentures
• to the debenture-holders
• after the period for which they were issued.
• It refers to extinguishing or discharging the liability on
account of debentures in accordance with the terms of issue.
Sources of Redemption of Debentures
1. Out of capital.
2. Out of profits.
3. By converting them into shares or new debentures.
4. Redemption from the proceeds of fresh issue of
shares and debentures.
5. Redemption out of profit and capital.
Debenture Redemption Reserve (DRR)
• It is the amount set aside out of surplus, i.e., balance in statement
of profit and loss for redeeming the debentures.
• Section 71(4) of the Companies Act, 2013, requires the company to
create DRR out of the profits available for payment of dividend and
the amount so credited to DRR shall not be utilised by the company
except for the redemption of debentures.
• DRR is required to be created for Non-Convertible Debentures (NCD)
and Non-Convertible part of Partly Convertible Debentures (PCD).
Debenture Redemption Reserve (DRR)
• Listed companies (including NBFCs and HFCs) and unlisted companies except exempted
companies required to create DRR,
• shall on or before 30th April in each year, invest or deposit in specified securities, a sum at
least equal to 15% of the amount of debentures maturing for payment during the year
ended 31st March of the next year.
• The amount invested or deposited shall not be used for any purpose other than for
redemption of debentures maturing during the year ending 31st March of the next year.
Note:
Listed companies including
(i) NBFCs registered with RBI
(ii) HFCs registered with National Housing Bank
are not required to create debenture redemption reserve but they are required to invest in
specified securities a sum at least equal to 15% as mentioned above.
Methods of Redemption of Debentures
1. Redemption of Debentures in Lumpsum on Maturity
When all the debentures are redeemed by paying in lumpsum at the end of the specified time, it is called
redemption in lumpsum. When debentures are redeemed in lumpsum on maturity, a company may adopt
any of the following two options for redeeming debentures
(i) Redemption of Debentures Out of Capital: When adequate profits are not transferred to the DRR from
statement of profit and loss for redemption of debentures, it is said to be redemption out of capital.
Note Companies act require every company to transfer an amount equal to 10% of the value of
debentures to DRR before the redemption begins. Therefore, companies act has indirectly placed
restriction to redeem debentures out of capital.
(ii) Redemption of Debentures Out of Profits: When adequate profits are transferred to the DRR from
statement of profit and loss for redemption of debentures, it is said to be redemption out of profits.
Transaction Entry Amount
(a) On Creation of DRR Statement of Profit and Loss …Dr.
To Debenture Redemption Reserve A/c
(b) On investment or deposit DRI A/c Dr.
being made in specified To Bank A/c
securities
(c) On the amount being due to • If the debentures are to be redeemed at par
debenture-holders on % Debentures A/c (with nominal values)
redemption To Debentureholder A/c
• If the debentures are to redeemed at a premium

% Debentures A/c (with nominal value)
Premium on Redemption of Debentures A/c (with premium payable)
To Debentureholders’ A/c (with Total)
(d) On encashing investment Bank A/c (with the amount paid)
To DRI A/c
(e) On payment to debenture- Debentureholders’ A/c (with the amount paid)
holders To Bank A/c
(f) When all debentures are DRR A/c (with the amount of DRR)
redeemed To General Reserve A/c
Methods of Redemption of Debentures
2. Redemption of Debentures in Instalments by Draw of Lots
• In this method, the company may redeem its debentures in

instalments beginning from a particular year, i.e. by payment of a
certain portion in each year.
• The actual debentures to be redeemed are selected usually by
draw of lots.
• The holders are repaid the amount at par or at a premium as per
the terms of issue.
• The journal entries required to be passed are the same as
discussed when debentures are repayable in lumpsum
Financial Statement of a Company
Financial Statements are summarized statements of
accounting data prepared by an enterprise at the end of an
accounting process.
It includes:
1. Balance Sheet
2. Statement of Profit and Loss
3. Notes to Accounts
4. Statements of Change in Equity
5. Cash Flow Statement
Objectives of Financial Statements
1. To provide financial data on economic resources (assets) and
obligations (liabilities) of an enterprise.
2. To provide information about the earning capacity.
3. To provide sufficient and reliable information to various parties
interested in financial statements.
4. To present true and fair view of the working of the business.
5. To serve as the basis for future planning and implementation of
various operations.
6. To provide information about the cash flows.
7. To help to judge the effectiveness of management.
8. To disclose various accounting policies.
Limitations of Financial Statements
1. The information given in financial statements is historical in nature
and does not reflect the future.
2. Financial statements are the outcome of accounting concepts and
conventions combined with the personal judgement.
3. The financial statements can be prepared on the basis of different
accounting practices. Profit earned or loss suffered will be different
under different assumptions.
4. Financial statements ignore the qualitative elements.
5. It ignores the price level changes of present market value of the assets
as different assets are shown at the historical cost as per the cost
concept.
Balance Sheet
Particulars Notes Figures for the Current Reporting Period Figures for the Previous Reporting Period
I. Equity and Liabilities
(1) Shareholders’ Funds
(a) Share Capital
(b) Reserves and Surplus
(c) Money received against share warrants
(2) Share application money pending allotment
(3) Non-Current Liabilities
(a) Long-term borrowings
(b) Deferred Tax Liabilities (Net)
(c) Other Long-term Liabilities
(d) Long-term Provisions
(4) Current Liabilities
(a) Short-term Borrowing
(b) Trade Payables
(c) Other Current Liabilities
(d) Short-term Provisions
Total
II. Assets
(1) Non-Current Assets
(a) Property, Plants and Equipment’s and Intangible Assets
(i) Tangible Assets
(ii) Intangible Assets
(iii) Capital Work-in-Progress
(iv) Intangible Assets under Development
(b) Non-Current Investments
(c) Deferred Tax Assets (Net)
(d) Long-term Loans and Advances
(e) Other Non-Current Assets
(2) Current Assets
(a) Current Investments
(b) Inventories
(c) Trade Receivables
(d) Cash and Cash Equivalents
(e) Short-term Loans and Advances
(f) Other Current Assets
Total
Statement of Profit and Loss
Particulars Notes Figures for the Figures for the
I
Financial Statement of
Revenue from Operations
Current Previous
Reporting Period Reporting Period
Company
II Other Income
III Total Revenue (I+II)
IV Expenses:
Cost of Material Consumed
Purchases of Stock-in-Trade
By Aman Mehta
Changes in Inventories of Finished Good, WIP and Stock-in-Trade
Employee Benefits Expenses
Finance Costs
Depreciation and Amortization Expenses
Other Expenses
Total Expenses
V Profit Before Tax (III-IV)
VI Tax
VII Profit After Tax (V-VI)
Meaning of Financial Statement Analysis
• The process of critical evaluation of the financial information

contained in the financial statements,
• in order to understand and make decisions regarding the
operations of the firm, is called financial statement analysis.
• It is basically a study of relationship among various financial
facts and figures as given in a set of financial statements.
Purpose and Significance of Financial Statement Analysis
1. To present the complex financial data in simplified and

understandable form.
2. To judge the financial stability of an enterprise.
3. To measure the short-term and long-term solvency of enterprise.
4. To measure the operating efficiency and profitability of enterprise.
5. To compare intra-firm position, inter-firm position and pattern
position within the industry.
6. To assess the future prospects of the enterprise.
Types of Financial Statement Analysis
1. From the Viewpoint of its Users
From the viewpoint of users, it is classified as

(i) External Analysis: Parties/Persons who do not have access to
detailed records of the enterprise conduct external analysis. They
depend on published accounts and directors’ and auditors’
reports.
(ii) Internal Analysis: The analysis conducted by the management to
know the financial position and operational efficiency of the
organisation is known as internal analysis.
2. From the Viewpoint of its Objectivity
From the viewpoint of objectivity, it is classified as

(i) Short-term Analysis: Such an analysis of financial statements is
done to examine the liquidity, profit earning capacity and short-
term solvency of an enterprise.
(ii) Long-term Analysis: Such an analysis of financial statements is
done to examine the long-term financial stability and long-term
solvency as well as future profit earning capacity of an
enterprise.
3. From the Viewpoint of Time Span
From the viewpoint of time span, it is classified as

(i) Horizontal Analysis: It is also called dynamic analysis. It is a time series
analysis. This analysis is made to review and analyse the financial
statements of a number of years and is therefore, based on financial data
taken for those years. It shows comparison of financial data for several
years against a chosen base year.
(ii) Vertical Analysis: It is also called static analysis. This analysis is made to
review and analyse the financial statements of one particular year only.
Such analysis is useful in comparing the performance of several companies
of the same type or divisions or departments in one enterprise.
4. From the Viewpoint of Firm
From the viewpoint of firm, it is classified as

(i) Intra-firm Analysis: This analysis is a comparison of financial statements of an
enterprise for two or more accounting periods. It is conducted to determine the
trend of different financial variables over a period of time. It is also known as
time series analysis or trend analysis.
(ii) Inter-firm Analysis: This analysis is a comparison of financial statements of two
or more enterprise for the same accounting period. It is conducted to determine
the relative position of an enterprise as compared to other competitive
enterprises of the same industry. It is also known as cross sectional analysis.
Limitations of Financial Statement Analysis
1. Financial statement analysis does not consider price level changes.

2. Financial statement analysis may be misleading without the
knowledge of the changes in accounting procedure followed by a
firm.
3. Financial statement analysis is just a study of interim reports.
4. Monetary information alone is considered in financial analysis
while non-monetary aspects are ignored.
5. The financial statements are prepared on the basis of on going
concept, as such, it does not reflect the current position.
Tools of Financial Statement Analysis
1. Comparative statements
2. Common size statements
3. Ratio analysis
4. Cash flow statement
Comparative Statement of Profit and Loss
Particulars Previous Current Absolute Percentage
Year (Rs.) Year Change Change
(Rs.) (Rs.) (%)
I. Revenue from Operations
II. Other Income
III. Total Revenue (I+II)
IV. Expenses
(i) Cost of Material Consumed
(ii) Purchases of Stock-in-Trade
(iii) Changes in Inventories of Finished Goods, WIP and Stock-in-Trade
(iv) Employees Benefit Expenses
(v) Finance Cost
(vi) Depreciation and Amortization
(vii) Other Expenses
Total Expenses
V. Profit before Tax (III-IV)
(-) Income Tax
VI. Profit after Tax
Comparative Balance Sheet
Particulars Previous Current Year Absolute Change Percentage Change
Year (Rs.) (Rs.) (Increase or Decrease) (Rs.) (Increase or Decrease) (%)
(a) Share Capital
(b) Trade Payables
Total
II. Assets
(a) Fixed Assets
(i) Tangible Assets
(2) Current Assets
(b) Inventories
Total
Common Size Statement of Profit and Loss
Particulars Absolute Amount Percentage of Net Sales
Previous Current Previous Current

Year (Rs.) Year (Rs.) Year (%) Year (%)
I. Revenue from Operations
II. Other Income
III. Total Revenue (I+II)
IV. Expenses
(i) Cost of Material Consumed
(ii) Purchases of Stock-in-Trade
(iii) Changes in Inventories of Finished Goods, WIP and Stock-in-Trade
(iv) Employees Benefit Expenses
(v) Finance Cost
(vi) Depreciation and Amortization
(vii) Other Expenses
Total Expenses
V. Profit before Tax (III-IV)
(-) Income Tax
VI. Profit after Tax
Particulars
Absolute Amount Percentage of Balance Sheet Total
Previous Year (Rs.) Current Year (Rs.) Previous Year (%) Current Year (%)

(a) Share Capital
(b) Trade Payables
Total
II. Assets
(a) Fixed Assets
(i) Tangible Assets
(2) Current Assets
(b) Inventories
Total
Ratio Analysis
It is a technique which involves analysing the financial

statements by calculating various ratios. It is the most important
and powerful tool for measuring performance of a business
enterprise.
Classification or Types of Ratios
Ratios can be broadly classified as:

1. Liquidity Ratios
2. Solvency Ratios
3. Activity Ratios
4. Profitability Ratios
Liquidity Ratios
(Short-term solvency)
Liquidity ratios shows the ability of the enterprise to meet its

short-term financial obligations. The two ratios included in
this category.
1. Current Ratio
2. Liquidity Ratio
Current Ratio = Current Assets
Current Liabilities
Liquid/Quick Assets
Liquid Ratio =
Current Liabilities
Solvency Ratios
(Long-term solvency)
Solvency ratios are calculated to judge the long-term financial

position of the business. The ratios in this category are:
1. Debt to Equity Ratio

2. Total Assets to Debt Ratio
3. Proprietary Ratio
4. Interest Coverage Ratio
Debt (Long – term debts)
Debt to Equity Ratio =
Equity (Shareholders’ funds)
Total Assets
Total Assets to Debt Ratio =
Long-term Debts
Proprietary Ratio = Proprietors’ Funds or Shareholders’ Funds

Total Assets
Profit before Interest and Tax = ……..Times
Interest Coverage Ratio =
Interest on Long-term Debt
Activity/Performance/Turnover Ratios
Activity/ Turnover ratios show how efficiently a company is using its
assets to generate sales. The ratios in this category are:
(i) Inventory Turnover Ratio

(ii) Trade Receivables or Debtors Turnover Ratio
(iii) Trade Payables or Creditors Turnover Ratio
(iv) Working Capital Turnover Ratio
(v) Fixed Assets Turnover Ratio
(vi) Current Assets Turnover Ratio
Cost of Revenue from Operations (COGS)
Inventory Turnover Ratio = = ……..Times
Average Inventory
Net Credit Revenue from Operations

TRTR = = ……..Times
Average Trade Receivable
Net Credit Purchases

TPTR = = ……..Times
Average Trade Payable
Net Revenue from Operations
WCTR = = ……..Times
Working Capital
Fixed Assets Turnover Ratio

= Net Sales or Net Sales
= ……..Times
Average Fixed Assets Net Fixed Assets
Net Sales
Current Assets Turnover Ratio =
Average Total Assets
Debt Collection Period
= 365/12
Trade Receivables Turnover Ratio
Average Payment Period
= 365/12
Trade Payable Turnover Ratio
Profitability Ratios
These ratios measure the profitability of a business. Profitability ratios help in
assessing the overall efficiency of the business. The ratios in this category are:
(i) Gross Profit Ratio

(ii) Operating Ratio
(iii) Net Profit Ratio
(iv) Return on Investment
(v) Earning Per Share
(vi) Dividend Per Share
(vii) Profit Earning Ratio
Gross Profit
Gross Profit Ratio =
× 100
Operating Cost
Operating Ratio =
× 100
OR
Cost of Revenue from Operation + Operating Expenses
× 100
Net Profit
Net Profit Ratio =
× 100
ROI = Net Profit Before Interest, Tax and Preference Dividend × 100
Capital Employed
EPS =
Net Profit After tax and Preference Dividend
Number of Equity Shares
Total Dividend Paid in a Year

DPS =
Outstanding Shares of a Company
Market Value of Equity Shares

P/E Ratio =
Earning Per Share
#YoddhaOfAmanSir
CFS
Operating Activity
Difference between SPL Balances
Add: Prov. For Tax, Reserves & Prop. Div. & Add/Less: EOI
Net Profit Before Tax and EOI
Add/Less: Non Operating & Non Cash Items
Operating Profit Before Working Capital Changes
Add/Less: Current Assets and Current Liabilities
Cash Generated From Operations
Less: Tax Paid & Add/Less: EOI
Cash Inflow/Outflow from Operating Activities
#YoddhaOfAmanSir
Overview
of CAS
Concept of CAS
• A computerised accounting system refers to
• a system wherein the accounts of the enterprise are
maintained on a computer.
• It processes the financial transactions and events as per
Generally Accepted Accounting Principles (GAAP)
• to produce reports as per requirements of the user.
Concept of CAS
• The complexity of the computerised accounting system depends on
the type of organisation.
• Modern computerised accounting systems are based on the concept
of database.
• Database is a collection of logically related information in an
organised way so that it can be easily accessed, managed and
updated.
• A database is implemented using a Database Management System
(DBMS).
Types of CAS
1. Ready-made Software
2. Customized Software
3. Tailored Software
Ready-made Software
• Developed not for only specific user but for the users in general.
• Hence, it is not necessary that all the modules of such software
are of use for every user who buys this software.
• Suited for organisations running small/conventional business
where the frequency or volume of transactions is very low. e.g.,
Tally, EX- Busy, etc.
Advantages of Ready-made Software
1. The cost of installation - generally low and number of users is limited.
2. Relatively easier to learn and people (accountant) adaptability is very high.
3. The training needs are simple
4. Available off-the-shelf, time required in developing a ‘tailor made software’ is
saved.
5. As these softwares are used by a large number of users, they have better after
sales service
Limits of Ready-made Software

1. The level of secrecy is relatively low.
2. Offer little scope of linking to other information systems.
3. Use laser printers which are costly than dot matrix printers.
Customized Software
• Means making changes in the readymade software to suit the
specific requirement of the user i.e., make it user specific.
• Available off-the-shelf and are changed to suit the requirements of
the user.
• The developer, to meet specific user requirement, can modify all the
readymade softwares.
• However, the user has to bear the cost of such changes.
• Best suited for large and medium businesses and can be linked to
the other information systems.
Advantages of Customized Software
1. Secrecy of data and software is high in customised software.
2. Linkage to other information system is available on the basis of
need of the enterprise
Limitation of Customized Software

1. The cost of installation and maintenance is relatively high
2. Since the need to train the software users is important, the training
costs are therefore high.
Tailored Software
• The term ‘tailored software’ refers to designing and developing user
specific software.
• These softwares, being user specific, are not available off-the-shelf
but are developed to meet the requirement of the user on the basis
of discussions between the user and developers.
• Softwares are suited for large business organisations with multi-
users and geographically scattered locations.
Advantages of Tailored Software
● The secrecy and authenticity checks are robust in such softwares.

● Such softwares offer high flexibility in terms of number of users.
● As these softwares are developed according to specification of the
user, it takes care of the specific needs of the enterprise.
● These softwares can be effectively linked to some other information
system
Limits of Tailored Software
● These softwares require specialised training to the users.

● The cost of maintenance and development of such softwares is
much higher as compared to readymade and customised software.
● The results will be misleading, in case the accounts are grouped
in an incorrect manner.
Features of CAS
● Online input and storage of accounting data.
● Printout of purchase and sales invoices.
● Logical scheme for codification of accounts and transactions. Every
account and transaction is assigned a unique code.
● Grouping of accounts is done from the very beginning.
● Instant reports for management e.g., aging statement, stock
statement, trial balance, trading and profit and loss account, balance
sheet, stock valuation, Value Added Tax (VAT), returns, payroll report,
etc.
Requirement of CAS
Every computerised accounting system has two basic requirements
1. Accounting Framework: It consists of a set of rules, principles

followed for recording transactions.
2. Operating Procedure: It refers to the procedure/ method of
recording transactions on a computer
Requirement of CAS
The use of computers in any database oriented application has four basic
requirements as mentioned below
1. Front-end Database: It is an interactive link between the user and database

oriented software through which the user communicates to the back-end
database.
2. Back-end Database: It is the data storage system that is hidden from the user
and responds to the requirement of the user to the extent the user is
authorised to access.
3. Data Processing: It is a sequence of actions that are taken to transform the
data into decision useful information.
4. Reporting System: It is an integrated set of objects that constitute the report.
Structure/Elements of Computerised Accounting System
The computerised accounting system is such as system in which all
accounting activities are operated through computer. The following
items constitutes the structure of a computerised accounting system
Hardware Software
Humanware/People Procedures
Data Connectivity
Hardware
Computer hardware consists of physical components such as keyboard,
mouse, monitor and processor. These components can be physically
touched. These are electronic and electromechanical components. The
basic components of the computer hardware are
● Motherboard
● Processor
● Primary storage memory
● Secondary storage devices
● Keyboard ● Sound card and speakers
● Monitor and Liquid Crystal Display Panel (LCD)
● Printers
Software
It is the invisible part of the computer, which is used with hardware to
make computer perform operations. It is referred to a set of
instructions or programs that enable the computer to perform its task
or commands given by the user. Software is held on the computer’s
hard disk, CD-ROM, DVD or on a diskette (floppy disk) and is loaded
from the disk into the computer’s RAM (Random Access Memory), as
and when required. Software can be divided into two major categories
● System software
● Application software
System Software
It consists of several programs, which are directly responsible for controlling,
integrating and managing the individual hardware components of a
computer system. System software also provides the interface between the
user and components of the computer. Depending on the functionality, the
system software can be further divided into following categories
Operating System Device Driver

Language Translator
Operating System
❖ It consists of programs which control, coordinate and supervise the activities of
various components of a computer system.
❖ Its function is to provide link between the computer hardware and the user.
❖ It provides an environment to run the programs. For example, MS-DOS,
Windows XP/2000/98, Unix, Linux, etc.
❖ The Operating system performs the following functions
● It recognises input from keyboard and sends output to the display screen.
● It makes sure that programs running at the same time do not interfere with
each other.
● It is also responsible for security and ensures that unauthorised users do not
access the system.
Device Driver
• A software, which is written with the objective of making a device
functional when it is connected to the computer is called device
driver.
• It is a system software that acts like an interface between the device
and the user.
• Every device, whether it is a printer, monitor, mouse or keyboard
has a driver program associated with it for its proper functioning.
Language Translator
• It helps in converting programming language to machine language.

• The translated program is called object code.
• There are three different kinds of language translator : Assembler,
Compiler and Interpreter
Application Software
It is a computer software designed to help the user to perform single or
multiple tasks. It is a set of instructions or programs designed for
specific use or application, that enable the user to interact with a
computer. Application softwares are also called the end-user programs.
These programs do the real work for users.
There are two types of application software
General Purpose Software Specific Purpose Software

General Purpose Software
These types of software are used for any general purpose. They allow
people to do simple computer tasks. Some of the general purpose
softwares are as follows
● Word Processing Software
● Electronic Spreadsheets
● Presentation Software
● Database Management System (DBMS)
● Desktop Publishing (DTP) Software
● Graphics Software
Specific Purpose Software
These softwares are designed to perform specific tasks. This type of
application software generally has one purpose to execute. Some of the
specific purpose application softwares are described below
● Inventory Management System and Purchasing System

● Payroll Management System
● Hotel Management System
● Reservation System
● Report Card Generator
Humanware/People
It constitutes the most important part of a computer system. It basically refers
to the individual or the users who interact with the computer through the use of
hardware or software. People who respond to the procedures instituted for
executing the computer programs are also a part of humanware/live -ware.
(i) System Analysts These are the people who design data processing systems.
(ii) Programmers These are the people who write programs to implement the
data processing system design.
(iii) Operators These are the people who participate in operating the computers.
Procedures
A specified series of actions or operations, which have to be executed in a
certain manner, in order to always achieve the desired result in same
circumstances is referred to as procedure. There are three types of procedures
which constitute part of computer system
(i) Hardware-oriented Procedure: It provides details about components and

their method of operation.
(ii) Software-oriented Procedure: It provides a set of instructions required for
using the software of computer system.
(iii) Internal Procedure: It helps to ensure smooth flow of data to computers by
sequencing the operation of each sub-system of overall computer system.
Data
• These are the facts which are gathered and entered into a computer
system.
• Data may comprise of numbers, texts, graphics, etc.
• The computer system processes and organises data to create
information that is relevant and can be used for decision-making.
Connectivity
• It is the sixth element of the computer system.

• It refers to the manner in which a particular computer system is
connected to other electronic devices, say through telephone
lines, microwave transmission, satellite link, etc.
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Using CAS
Installation of Computerized Accounting System
• An accounting system has two aspects,

• It has to work under a set of well-defined
accounting concepts and principles and
• It has to maintain records and generate reports as
defined by the user.
Installation of Computerized Accounting System
• These aspects can be fulfilled by processing the
transactions and events in accordance with the accounting
principles and adopting the software which is capable of
generating the user defined reports.
• The process of performing the accounting function with the
help of accounting software can be said to be as
automation of accounting process.
This process includes following steps in the installation of CAS
1. Planning
Under this stage, assessment of size of entity and volume of
business transactions is done for which automation has to be
made
2. Selection of Accounting Software

It involves selection of appropriate accounting software. The
choice is based upon certain factors like the requirements of
organisation, the size of organisation, security concerns access
from remote locations, etc.
3. Selection of Accounting Hardware

This stage involves choosing the desired computer hardware
compatible with the accounting software. The hardware such
as Hard Disk Drive or RAM should be adequate to support the
accounting software. Also the operating system should be
compatible with the software.
4. Classification and Grouping of Accounts
This stage involves preparing a comprehensive list of accounts
which are to be opened during the year. These accounting heads
are given an accounting code on the basis of which the
transactions are posted to the designated account head in the
ledger. The trial balance is generated automatically alongwith
profit and loss account and balance sheet. The creation of
accounts group and hierarchy is initiated before entering
transactions in the system.
5. Generating Reports
This is the final stage of automation. Under this stage, final
reports are prepared in the form of journal, cash book,
ledger, trial balance, profit and loss account and balance
sheet. Preparing reports is a complex process and is
discussed ahead.
Charts of Accounts
• An important component of CAS is that the accounts should be
appropriately grouped in the manner that
• all accounts of one nature are classified under one broad head
of account and appropriately grouped as asset, liability, etc.
• Accounts groups are maintained to determine the hierarchy of
ledger accounts which is helpful in determining and presenting
meaningful and compliant reports.
• The group behaviour is classified into capital or revenue and
more specifically into assets, liabilities, income and expenditure.
Charts of Accounts
For example,
• the accounts are to be grouped on the basis of their nature

• e.g., salary, wages and staff welfare expenses are grouped
as employee costs.
• The groups ascertain whether the same will affect profit
and loss account which is revenue in nature or balance
sheet which is capital in nature.
• Groups can be sub-classified to practically unlimited levels.
But at the lowest level would be the ledger account.
Data Entry
• In accounting sense, it is a process of recording financial
transactions, i.e. money coming into and going out of the
business.
• There are lot of predefined vouchers in Computerised
Accounting System.
• For example, tally has 23 predefined vouchers where data
can be entered.
Some Vouchers
1. Receipt Voucher: Through this voucher, all inflows of money are recorded.
2. Payment Voucher: With the help of this voucher, all outflows of money
are recorded.
3. Contra Voucher: In this voucher, only transfer of funds between cash and
bank account is recorded.
4. Journal Voucher: This voucher is used to record all the non-cash
transactions of the business.
5. Purchase Voucher: This voucher records all the purchases of goods made
by the business, in cash or in credit.
6. Sales Voucher: In this voucher, all the goods sold by the business are
recorded, both cash and credit.
Data Verification
• Computer accounting systems also provide the facility of
data verification.
• For example, tally comes with the facility of data analysis
report which helps in conducting various internal analysis
and verification of financial data of the company and also
helps in identification of areas which helps in easing the
verification process.
Security Features Available in CAS
1. Password Security: The system facilitates defining the user rights
according to department in which he is working. For example,
purchase vouchers can be accessed by only those persons
working in purchase department.
2. Data Audit: This feature provides data about what changes are
made in the original data and who made those changes.
3. Data Vault: This feature provides security like encryption of data.

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DBMS
Concept of Database Management System
• Database Management System (DBMS) is a software system used to store,
retrieve and run queries on data. It serves as an interface between an end user
and a database, allowing users to create, read, update and delete data in the
database.
• DBMS manages the data, the database engine and the database schema,
allowing for data to be manipulated or extracted by users and other programs.
• This helps in providing data security, data integrity, concurrency and uniform
data administration procedures.
• Examples of DBMS include licensed packages like ORACLE, SQL Server and
open source packages like MySQL, PostgreSQL, etc.
Objects in DBMS
A database object is a data structure which is used to either store the data, or for
referencing purpose. There are some objects in DBMS as follows
1. Table: A table is a collection of data, which is stored in a tabular form. It represents

the records in rows and columns so that the user can see a meaningful and
formatted data. Each column in the table forms the related set of information of an
object.
2. Queries: A query is the request of information from a collection of data. In DBMS,

query means request of data or information by the user from a database. Database
consists of a lot of data stored in the form of tables. In order to extract a specific
data or information, the user needs to run a query in the database. This can be
performed with the help of a database query language like SQL.
Objects in DBMS
A database object is a data structure which is used to either store the data, or for referencing purpose. There are some objects in DBMS as follows
1. Table A table is a collection of data, which is stored in a tabular form. It represents the records in rows and columns so that the user can see a meaningful and formatted data. Each column in the table forms the related set of information of an object.
2. Queries A query is the request of information from a collection of data. In DBMS, query means request of data or information by the user from a database. Database consists of a lot of data stored in the form of tables. In order to extract a specific dat a or information, the user needs to run a query in the database. This can be performed with the help of a database query language like SQL.
3. Forms: In the context of database, a form is a window which consists

of various fields and spaces to fill the data. It is a database object
used to create user interface for database applications.
4. Reports: A report is the result of a database query presented in a

formatted manner. It contains useful information which helps in
decision-making. Most of the applications come with built-in
reporting tools. For example airlines software may contain
specifically defined reports on frequent travelers in business class.
Creating Data Tables for Accounting
Computerised accounting involves identification, storing and extracting the data related
to the transaction of accounting. Data tables are used in database applications which
display a range of outputs given a range of inputs. A table can be created using design
view, wizard or entering data. To create a table, the keyword ‘CREATE TABLE’ is used,
which is followed by a unique name or identifier.
Following steps can guide on how to create an Excel data table
Step 1 - Create a model

Step 2 - Link the output
Step 3 - Enter the input values
Step 4 - Highlight the cells and access the data tables function
Step 5 - Link the input values
Step 6 - Format the data table output
Use of Queries, Forms and Reports to
Generate Accounting Information
1. Queries
2. Forms
3. Reports
Queries:
The accounting information which is presented in the form of accounting
report can be generated by creating and executing some queries under
database management system. For generating the information required, a
query is executed which communicates to access the accounting data. For a
complete view of data which is stored across various tables, queries based on
SQL are needed to be executed. A Query generates the records that contain
fields from various data tables
Forms:
They are used to easily view, enter and change data directly in a table. When
you open a form, MS Access retrieves the data from one or more tables and
displays it on the screen, in a layout you choose. A form is made up of controls
which are used to facilitate the entry of information into the table that the
form represents. To facilitate easier data entry, forms are often designed with
several special features.
Reports:
A report is an effective way to present the data in a printed format. Since you
have control over the size and appearance of everything on a report, you can
display the information the way you want to see it. Most of the information in
a report comes from an underlying table, query or SQL statement, which is the
source of report’s data. Other information in the report is stored in the report
design.
Application of DBMS in Generating
Accounting Information
• DBMS is a system of record keeping. It acts as a container of data from
which a user can define, store, retrieve and update.
• DBMS is also useful for defining, storing, retrieving and updating accounting
data. It performs many functions, like data storage management, data
dictionary management, security management, backup and recovery
management, etc. that ensures the effective running of accounting system.
• DBMS also helps in generating and retrieving accounting data like

shareholders’ records, sales reports, customers’ profile, suppliers’ profiles,
payroll, employees’ profile, petty cash register, etc
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Electronic
Spreadsheet
Concept of Electronic Spreadsheet
• It is a tabular representation of any statistical, mathematical, scientific or
accounting data.
• It is a software tool that lets one enter, calculate, manipulate and analyse set
of numbers.
• It is a large sheet in which data and information is arranged in rows and

columns.
• There are various spreadsheet programs available, like Microsoft Excel,

Google Sheets, Libra Office Calc, Lotus 123, etc.
Concept of Electronic Spreadsheet
• These spreadsheets are also known as worksheets. They also provide the
functions of mathematical formulas. They can also recalculate the results
when there is a change in source data.
• Here are some of the basic elements of electronic spreadsheets are as

follows ● Workbook and worksheet ● Rows, columns and cells
Features of Electronic Spreadsheet
1. It is easy to learn and does not require any special training.
2. Mathematical calculations can be done with built-in programs.
3. Data is presented in tables which minimises manual work and
increases accuracy.
4. Information can also be provided in the form of charts and
graphics.
5. It can easily sort data in ascending and descending order.
6. Password can be added to workbook which increases the
security of the data
Application of Electronic Spreadsheet in
Generating Accounting Information
• Electronic spreadsheet plays an important role in recording and
generating accounting data.
• It can be used to find out the profit or loss of the business.

Spreadsheets can also be used to prepare various accounts and
statements like balance sheet.
• It can be used in various other areas like payment tracking, loan

repayment schedules, payroll, etc.
• Some of the items that can be generated using electronic spreadsheets are
1. Depreciation Schedule: It lists the loss in the value of the asset over a period of
time. There are various methods to calculate depreciation like straight line
method or written down value method. Different formulas can be used to
calculate depreciation depending upon the method of depreciation.
(i) Straight Line Method: In this method, the amount of depreciation remains fixed
over the life of the asset. The amount of depreciation can be find out by using
the following syntax SLN (cost, salvage, life)
(ii) Written Down Value Method: In this method, depreciation is charged on the
diminishing balance of the asset, and the value of asset does not remain same.
The amount of depreciation can be find out by using the following syntax DB
(cost, salvage, life, period)
2. Loan Repayment Schedule:
This schedule helps in knowing the amount that needed to be paid back
through a series of periodic payments, which includes principal amount
and interest. The amount can be find out with PMT formula, where is
PMT (include rate, nper, pv, fv). Here, pv = present value; fv = future
value, and nper = number of payment period for an investment.
3. Payroll Accounting:
A payroll is a list of employees working in an organisation and receiving

payments and other work related benefits. Payroll can be created with
the help of electronic spreadsheets as it is easy to maintain in electronic
form rather than manually. In order to create payroll in spreadsheet, we
have to create some columns with headings that can hold the value of
some variables. The hierarchy of columns can be set as
● Employee Name ● Pay Rate

● Total Hours Worked ● Overtime
● Gross Pay ● Income Tax
● Other Deductions ● Net Pay
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Overview of
Computerized
Accounting System
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1. A computerised accounting system processes the financial

transactions and event as per
(a) accounting standards

(b) international financial reporting standards
(c) generally accepted accounting principles
(d) operating system of the computer
Correct Answer : (c)

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2. The framework of storage and processing of data is called
(a) operating environment

(b) processing environment
(c) storage environment
(d) data environment
Correct Answer : (a)

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3 .............. consists of hardware as well as software
(a) Operating system

(b) Computerised accounting system
(c) Motherboard
(d) Application software
Correct Answer : (b)

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4. Both hardware and software components are dependent on

each other. State true or false.
(a) True
(b) False
(c) Either true or false
(d) None of the above

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5. Structure of the hardware depends on the type of
(a) hardware
(b) motherboard
(c) operating system
(d) software
Correct Answer : (d)

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6. Modern computerised accounting system is based on the

concept of
(a) software
(b) hardware
(c) database
(d) spreadsheets

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7. Which of the following is/are the type(s) of computerised

accounting system?
(a) Ready to use

(b) Customised
(c) Tailored
(d) All of these

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8 ................ means modifying the readymade software to suit the

specific requirements of the user
(a) Operating system

(b) Customised software
(c) Ready to use
(d) Tailored

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9. Which of the following is not a feature of computerised

accounting system?
(a) Online input and storage of accounting data

(b) Print out of purchase and sale invoices
(c) Grouping of accounts is done from the very beginning
(d) Hardware based only

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10. Which of the following items constitutes the structure of a

computerised accounting system?
(a) Hardware
(b) Software
(c) Both (a) and (b)
(d) None of these

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11. Which of the following is the basic component of the

computer hardware?
(a) Motherboard
(b) Application software
(c) Operating system
(d) All of these

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12. Software that are meant to manage the resources of a

computer and also facilitates its operations are known as ………… .
(a) operating system

(b) utility program
(c) application software
(d) All of these

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13. Application software can be further classified as
(a) General purpose software

(b) Specific purpose software
(c) General as well as specific purpose software

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14. Which softwares are designed and developed for performing

certain specific task such as payroll accounting?
(a) Utility programmes

(b) Operating systems
(c) Application softwares
(d) Customise softwares

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15. Software which is used to translate or interpret the program is

................. .
(a) system software

(b) application software
(c) language processor
(d) microprocessor

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16. Part of computer system which interact with the computer

through the use of hardware or software is called................. .
(a) language processor

(b) applications software
(c) procedure
(d) humanware

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17. Which of the following is not a type of procedure which

constitutes part of computer system?
(a) Hardware oriented procedure

(b) Software oriented procedure
(c) Internal procedure
(d) External procedure

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18 ............... is a specified series of actions or operations, which
have to be executed in a certain manner, in order to achieve the
desired result in same circumstances.
(a) Hardware
(b) Procedure
(c) Softwares
(d) Humanwares
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19 .............. are the facts which are gathered and entered into a
computer system.
(a) Data
(b) Information
(c) Knowledge
(d) Wisdom

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20 ................. refers to the manner in which a particular computer
system is connected to other electronic devices, say through
telephone lines.
(a) Communication
(b) Connectivity
(c) Information
(d) Data
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21. Name the software used for controlling internal functions,

such as reading data input devices.
(a) System software

(b) Application software
(c) Connectivity software

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22. Identify the requirement(s) of every computerised accounting

system.
(a) Accounting framework

(b) Operating procedure
(d) None of these

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23. Use of computers in any database oriented application

has........... basic requirements.
(a) two
(b) three
(c) four
(d) None of these

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24 ............. is an integrated set of objects that constitute the

report.
(a) Front-end interface

(b) Back-end database
(c) Data processing
(d) Reporting system

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25 ............... is an interactive link between the user and database
oriented software through which user communicates to the back-
end database.
(a) Front-end database

(b) Data processing
(c) Reporting system
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Using Computerized
Accounting System
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1. What is the correct sequence of steps in installation of computerised
accounting system?
(i) Selection of accounting software
(ii) Generating reports
(iii) Planning
(iv) Selection of accounting hardware
(v) Classification and grouping of accounts
(a) (iii), (i), (iv), (v), (ii)

(b) (i), (ii), (iii), (iv), (v)
(c) (v), (iv), (iii), (ii), (i)
(d) (iii), (iv), (i), (v), (ii) Correct Answer : (a)
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2. Which of the following is an accounting software?
(a) Tally
(b) Microsoft Office
(c) Photoshop
(d) Notepad

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3. In CAS, the accounts should be …….. in the manner that all
accounts of one nature are classified under one broad head of
account.
(a) separated
(b) grouped
(c) Either (a) or (b)
(d) None of these
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4. Which tool is used to have a proper classification of data and to

provide special code to various heads of accounts?
(a) Accounting Software

(b) Codification
(c) Gateway of Tally
(d) Microsoft Office

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5 ............ means providing identification mark to the various
heads of account.
(a) Identification tool

(b) Heads of accounts
(c) Codification
(d) None of these er

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6. The relationship between the groups of accounts and its

components is
(a) vertical
(b) horizontal
(c) diagonal
(d) hierarchical

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7. Proper codification is required in order to maintain the

hierarchical relationship between
(a) humans and computers

(b) operating system and application softwares
(c) groups and its sub groups
(d) journal and ledger

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8. Which of the following is not a subhead of assets?
(a) Fixed assets

(b) Current assets
(c) Capital
(d) All of these

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9. Which of the following is a subhead of liabilities?
(a) Non-current liabilities

(b) Short-term liabilities
(d) None of these

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10. Which of the following is a subhead of revenue?
(a) Other incomes

(b) Salary paid
(c) Direct expenses
(d) Current assets

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11. Identify the step(s) that TPS involves in processing a

transaction from the following.
(a) Data collection

(b) Data storage
(c) Query support
(d) All of these

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12. How many predefined vouchers does tally has?
(a) 21
(b) 22
(c) 23
(d) 24

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13. Through which voucher, all inflows of money are recorded?
(a) Received voucher

(b) Payment voucher
(c) Contra voucher
(d) Journal vouch

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14. With the help of .......... voucher, all outflows of money are
recorded.
(a) received
(b) payment
(c) contra
(d) journal

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15. With the help of this voucher, only transfer of fund between
cash and bank account is recorded. Identify the voucher.

(b) Payment
(c) Contra voucher
(d) Journal

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16 .......... voucher is used to record all the non-cash transactions

of the business.
(a) Received
(b) Payment
(c) Contra
(d) Journal

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17. In this voucher all the good sold by the business is recorded
both cash and credit.

(b) Purchase voucher
(c) Contra voucher
(d) Sale voucher

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18. TDL level can add validation at
(a) platform level only

(b) TDL level only
(d) None of these

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19. Tools available for data analysis are
(a) verification of chart of accounts

(b) displaying the lowest and highest value transactions
(d) None of these

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20. Entries that are recorded at the end of the year to update the
balances of all the accounts as per accrual basis.
(a) Opening entry

(b) Journal entry
(c) Adjusting entry
(d) Rectification entry

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21. Which account provides the net result of the operations of the
business for a specified period of time?
(a) Profit and loss account

(b) Cash flow statement
(c) Fund flow statement
(d) Balance sheet

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22. To view the profit and loss account, we have to go to
(a) Gateway of Tally > Accounts > Profit and Loss Account
(b) Gateway of Tally > Final Accounts > Profit and Loss Account
(c) Gateway of Tally > Profit and Loss Account

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23. Balance sheet is a statement with provides information

regarding the
(a) net result of the operations of the business

(b) financial position of a company
(c) inflow and outflow of cash
(d) acquisition and utilisation of funds

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24. The balance sheet is prepared as per the
(a) Schedule I
(b) Schedule II
(c) Schedule III
(d) Schedule lV

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25. The .......... of the previous year becomes the ............ of the
current year
(a) closing balance, opening balance

(b) opening balance, closing balance
(d) Neither (a) nor (b)

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26. Why closing entries are passed?
(a) To update the balances of all the accounts as per accrual basis
(b) To transfer balance of a temporary account to permanent
account
(c) To close journal entries
(d) None of these

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27. Which system provides data about what changes are made in
the original data and who made those changes?
(a) Password security

(b) Data audit
(c) Data security
(d) Data leakage

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Accounting Using
Database
Management System
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1. What is the full form of DBMS?
(a) Database management security

(b) Database management system
(c) Database marketing system
(d) Database monitory system ledge

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2 ………… is the group of data which is interlinked and set of

programs which helps in accessing the data
(a) ABMS
(b) CBMS
(c) DBMS
(d) EBMS

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3. The main objective of DBMS is to
(a) retrieve stored data

(b) collection of data
(c) smooth functioning of systems
(d) All of the above

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4. For which of the following sectors, DBMS will be useful?
(a) Universities
(b) Manufacturing
(c) Human resources

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5. A ………… is a database structure which is used to either store

the data or for referencing purpose
(a) data
(b) information
(c) object
(d) know

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6. Which of the following is the most common database object?
(a) Table
(b) Column
(c) Row
(d) None of these

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7. Data in table is recorded in ………… and ………… so that the user

can see a meaningful and formatted data
(a) upward and downward

(b) horizontal and vertical
(c) diagonal and vertical
(d) rows and columns

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8 ………… is a collection of data which is stored in a tabular form.
(a) Rows
(b) Table
(c) Reports
(d) Object

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9 ………… is the request of information from a collection of data.
(a) Table
(b) Object
(c) Query
(d) Column

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10. Database consists of a lot of data stored in the form of
(a) table
(b) object
(c) query
(d) reports

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11. In order to extract a specific data or information, the user

needs to run a ………… in the database.
(a) command
(b) query
(c) bios
(d) interference

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12. Which of the following is one of the query language in DBMS?
(a) SQL
(b) Microsoft Office
(c) Language translator
(d) None of these

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13 ………… is a window which consist of various fields and spaces

to fill the data.
(a) Query
(b) Table
(c) SQL
(d) Form

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14. Which database object is used to create user interface for

database application?
(a) Table
(b) Object
(c) Form
(d) Report

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15 ………… is the result of a database query presented in a

formatted manner.
(a) Table
(b) Object
(c) Report
(d) Form

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16. Object that contain usual information which helps in decision-

making is known as ………… .
(a) report
(b) form
(c) object
(d) table

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17. Data tables can display
(a) input
(b) output
(c) output given a range of input

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18. Which keyword is used to create a table?
(a) Create table

(b) Table
(c) Open table
(d) New table

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19. The keyword to create a table is followed by
(a) serial number

(b) employee code
(c) date
(d) unique name

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20. Accounting information can be generated by
(a) executing some queries

(b) searching it online

CUET | ACCOUNTS
21. MS Access is a
(a) customised software

(b) relational DBMS
(c) operating system

CUET | ACCOUNTS
22. For a complete view of data which is stored across various

tables, the user is required to
(a) execute queries based on SQL

(b) search for data tables in DBMS

CUET | ACCOUNTS
23 ………… acts as a container of data from which a user can

define, store, retrieve and update.
(a) Accounting information

(b) DBMS
(c) Management information system

CUET | ACCOUNTS
24. Which of the following is not a function of database

management system?
(a) Data storage management

(b) Data dictionary management
(c) Recording accounting data
(d) Recovery management

CUET | ACCOUNTS
25. Which of the following accounting information can be

retrieved using DBMS?
(a) Shareholders record
(b) Customers’ profile
(c) Petty cash register
(d) All of these

CUET | ACCOUNTS
Accounting
Applications of
Electronic Spreadsheet
CUET | ACCOUNTS
1. A sheet in which data and information is arranged in rows and
columns is called
(a) paper sheet

(b) notebook
(c) spreadsheet

CUET | ACCOUNTS
2. Which of the following is a type of electronic spreadsheet?
(a) Microsoft Excel

(b) Google sheets
(c) Lotus 123

CUET | ACCOUNTS
3. Spreadsheets are also known as
(a) worksheets
(b) paper sheet
(c) notebook
(d) All of these

CUET | ACCOUNTS
4. Mathematical formulas are provided in
(a) electronic spreadsheets

(b) paper sheets
(c) notebooks

CUET | ACCOUNTS
5. What happens when there is a change in source data of an

electronic spreadsheet?
(a) The results needs to be recalculated manually

(b) It can recalculate the result automatically

CUET | ACCOUNTS
6. The basic elements of an electronic spreadsheets include
(a) workbook and worksheets

(b) rows, columns and cells

CUET | ACCOUNTS
7. Which of the following are the features of electronic

spreadsheets?
(a) Easy to learn and does not require any special training
(b) Data is not presented in tables
(c) Information can be provided in the form of charts and graphs
(d) Both (a) and (c)

CUET | ACCOUNTS
8. Spreadsheets can also be used to
(a) generate accounting information

(b) video editing
(c) electronic mail

CUET | ACCOUNTS
9. Which application can be used to find out the profit or loss of

the business?
(a) Adobe reader

(b) Microsoft word
(c) Electronic spreadsheet

CUET | ACCOUNTS
10. Which of the following applications can be used to prepare

various accounts and statements like balance sheet?
(a) Adobe reader

(b) Electronic spreadsheet
(c) Microsoft word

CUET | ACCOUNTS
11. What are the other areas in which an electronic spreadsheet

can be used?
(a) Payment tracking

(b) Loan repayment schedules
(c) Payroll

CUET | ACCOUNTS
12. The schedule which lists the loss in the value of the asset over
a period of time is known as ………… .
(a) depreciation schedule

(b) payment tracking schedule
(c) loan requirement schedule
(d) none of the above

CUET | ACCOUNTS
13. Different formulas can be used to calculate depreciation

depending upon
(a) system
(b) humanware
(c) method of depreciation
(d) All of these

CUET | ACCOUNTS
14. In which method, the amount of depreciation remains fixed

over the life of the asset?
(a) Written down value method

(b) Straight line method

CUET | ACCOUNTS
15. The syntax used to calculate the amount of depreciation using

straight line method is
(a) OCM
(b) SLN
(c) SLMD
(d) DEP

CUET | ACCOUNTS
16. In which method, depreciation is charged on the diminishing

balance of the asset?
(a) Written down value method

(b) Straight line method

CUET | ACCOUNTS
17. In written down value method, the value of the asset
(a) remain same

(b) does not remain same
(c) depending up on the type of the business
(d) Either (a) or (b)

CUET | ACCOUNTS
18. The syntax used to calculate the amount of depreciation using

written down value method is
(a) WDV
(b) DBM
(c) DEP
(d) DB

CUET | ACCOUNTS
19. Which schedule helps in knowing the amount that needed to

be paid back through a series of periodic payments?
(a) Payment tracking

(b) Payroll accounting
(c) Depreciation schedule
(d) None of these

CUET | ACCOUNTS
20. Periodic payment includes
(a) principal amount only

(b) interest amount only
(d) None of these

CUET | ACCOUNTS
21. The syntax used to calculate the amount of periodic payments

is
(a) PPA
(b) PMT
(c) PMA
(d) PMO

CUET | ACCOUNTS
22. In the given syntax, (rate, nper, pv, fv) pv stands for
(a) post value

(b) past value
(c) present value
(d) pre volume

CUET | ACCOUNTS
23. A ………… is a list of employees working in an organisation and

receiving payments and other work related benefits.
(a) payment tracking

(b) payroll accounting
(c) depreciation schedule

CUET | ACCOUNTS
24. In the given syntax, (rate, nper, pv, fv) nper means
(a) number of years

(b) principal amount
(c) interest rate
(d) number of payment period for an investment

CUET | ACCOUNTS
25. Payroll is easy to maintain in ………… .
(a) manually system

(b) electronic form
(c) virtually

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Types of Debenture

From Security Point of View

From Redemption Point of View

From Records Point of View

From Priority Point of View

From the Point of View of Coupon Rate

From Convertibility Point of View

1. Purchase of an Asset Vendor’s A/c …Dr.

Asset A/c …Dr. OR

Sundry Asset A/c …Dr. OR

2. Purchase of an Business Vendor’s A/c …Dr.

3. Underwriting Commission Underwriter’s A/c …Dr.

Underwriting Comm. A/c …Dr.

4. Incorporation Expenses Promoter’s A/c …Dr.

Formation Expenses A/c …Dr.

Show in Brackets with Liability

Show in Brackets with Liability

Term Loan from Bank 400000

Bank A/c …Dr. 1,00,000

Debentures Application & Allotment A/c …Dr. 1,00,000

Bank A/c …Dr. 1,10,000

Debentures Application & Allotment A/c …Dr. 1,10,000

Bank A/c …Dr. 96,000

Debentures Application & Allotment A/c …Dr. 96,000

Bank A/c …Dr. 1,00,000

Debentures Application & Allotment A/c …Dr. 1,00,000

Bank A/c …Dr. 1,10,000

Bank A/c …Dr. 96,000

• If the debentures are to redeemed at a premium

• In this method, the company may redeem its debentures in

• The process of critical evaluation of the financial information

1. To present the complex financial data in simplified and

From the viewpoint of users, it is classified as

From the viewpoint of objectivity, it is classified as

From the viewpoint of time span, it is classified as

From the viewpoint of firm, it is classified as

1. Financial statement analysis does not consider price level changes.

Previous Current Previous Current

I. Equity and Liabilities

It is a technique which involves analysing the financial

Ratios can be broadly classified as:

Liquidity ratios shows the ability of the enterprise to meet its

Solvency ratios are calculated to judge the long-term financial

1. Debt to Equity Ratio

Proprietary Ratio = Proprietors’ Funds or Shareholders’ Funds

(i) Inventory Turnover Ratio

Net Credit Revenue from Operations

Net Credit Purchases

Fixed Assets Turnover Ratio

Average Payment Period

(i) Gross Profit Ratio

Total Dividend Paid in a Year

Market Value of Equity Shares

Limits of Ready-made Software

Limitation of Customized Software

● The secrecy and authenticity checks are robust in such softwares.

● These softwares require specialised training to the users.

Every computerised accounting system has two basic requirements

1. Accounting Framework: It consists of a set of rules, principles