SEBA Class 9 An Introduction to Commerce Chapter 4 Introduction Solutions in English Medium to each chapter is provided in the list so that you can easily browse throughout different chapters SEBA Class 9 An Introduction to Commerce Chapter 4 Introduction Question Answer, SEBA Class 9 Elective An Introduction to Commerce Notes in English Medium and select need one.
SEBA Class 9 An Introduction to Commerce Chapter 4 Introduction
Also, you can read the SCERT book online in these sections Solutions by Expert Teachers as per SEBA (CBSE) Book guidelines. SEBA Class 9 An Introduction to Commerce Chapter 4 Introduction Notes. These solutions are part of SCERT All Subject Solutions. Here we have given Elective An Introduction to Commerce Class 9 SEBA Solutions for All Chapters, You can practice these here.
Introduction
Chapter – 4
| UNIT – II INTRODUCTION TO BOOK-KEEPING AND ACCOUNTANCY |
| Questions |
I. Very short answer type questions:
(a) What is Book-keeping?
Ans: Bookkeeping is the process of recording your company’s financial transactions into organized accounts on a daily basis.
(b) What are the scope of Book-keeping?
Ans: The scope Booking-keeping are mentioned below:
(i) Maintenance of the books of accounts.
(ii) Identifying the transactions and events to be recorded.
(iii) Measuring all transactions in terms of money.
(iv) Keeping records of all transactions in terms of money.
(v) Posting them into ledger accounts.
(vi) Preparation of trial balance.
(c) What do you mean by Accounting?
Ans: Accounting is the process of collecting, recording, summarizing and communicating financial information in a systematic order. It aims to measure the financial performances (profit or loss) during a particular period of time. This financial information is communicated to the users i.e. proprietor, creditors, investors, government, etc.
(d) What are the objectives of Accounting?
Ans: The objectives of Accounting are mentioned below:
(i) Maintaining all types of accounting records related to the business.
(ii) Ascertaining profit/loss of the business during a particular period of time.
(iii) Ascertaining the financial position of the enterprise.
(iv) Providing accounting information to the end users.
(e) What are the functions of Accounting?
Ans: The function of Accounting are mentioned below:
(i) Maintaining systematic records of all transactions.
(ii) Determining the profit/loss of the business.
(iii) Protecting and controlling the business properties.
(iv) Ascertaining financial position of the business.
(v) It helps the users like business, investors, creditors, etc in decision making.
(f) What do you understand by Accountancy?
Ans: The Modern Accounting Concept was developed by ‘Luca Pacioli’ of Italy. A description of proper accounts is also found in ‘Arthashastra’ written by Kautilya. Book keeping records all financial transactions that have taken place during a particular period of time so that it is useful for future. But simply recording is not enough. Such records are used for measuring the financial performance of the business as well as calculation of the financial position of the business.
Accounting is the process of collecting, recording, summarizing and communicating financial information in a systematic order. It aims to measure the financial performances (profit or loss) during a particular period of time. This financial information is communicated to the users i.e. proprietor, creditors, investors, government, etc.
II. Short questions:
(a) Write the features or characteristics of Book-keeping.
Ans: The features or characteristics of Book-keeping are mentioned below:
(i) Book-keeping is a branch of knowledge that educates how the financial records are maintained in the books.
(ii) It is concerned with recording all types of financial data of the business in a scientific and systematic manner.
(iii) It is meant to show the effect of all the transactions on the financial position of the business.
(iv) Book-keeping is a clerical work and it is performed by junior staff.
(v) Book-keeping is called the ‘books of primary entry’. It is considered both science and art in nature.
Characteristics:
(i) Maintaining all types of accounting records related to the business.
(ii) Ascertaining profit/loss of the business during a particular period of time.
(iii) Ascertaining the financial position of the enterprise.
(iv) Providing accounting information to the end users.
(b) What are the characteristics of Accounting?
Ans: The characteristics of Accounting are mentioned below:
(i) Accounting records transactions & events which are financial in nature.
(ii) It involves the following activities: recording, classifying and summarizing.
(iii) Accounting helps in determining the financial position of an enterprise and communicating them to the users.
(iv) Accounting is done by individuals, so accounting information can be manipulated.
(v) It records transactions in terms of money only.
(c) What are the different stages of Accounting?
Ans: The different stages of Accounting are mentioned below:
(i) Identify and analyze transactions.
(ii) Record transactions in a journal.
(iii) Post transactions to a general ledger.
(iv) Determine the unadjusted trial balance.
(d) Write the differences between Book-keeping and accounting.
Ans: The different stages of Accounting are mentioned below:
| Basis | Book-keeping | Accounting |
| 1. Objective | The objectives of Book-keeping is to maintain systematic records of financial transactions. | The objective of accounting is to ascertain financial results and financial position of the business and to communicate information to the interested parties. |
| 2. Stage | It is a primary stage of accounting. | It is secondary stage. It begins where book-keeping ends. |
| 3. Scope | It is concerned with identifying measuring recording and classifying transections. | It is concerned with summarizing,interpreting and communicating financial information. |
| 4. Performance | It is performed by junior staff. | It is performed senior staff. |
(e) Write the benefits or advantages of Accounting in trade and business.
Ans: The benefits or advantages of Accounting in trade and business are mentioned below:
(i) It provides financial information about the business to interested parties.
(ii) It helps in the comparison of financial statements between two different periods and financial results of an industry with other firms.
(iii) Accounting information is used as an evidence in legal & taxation matter.
(iv) It helps in decision making and in the valuation of the business.
(f) Write the disadvantages or limitations of Accounting.
Ans: The disadvantages or limitations of Accounting are mentioned below:
(i) Accounting ignores non-monetary transactions. It means any transactions which cannot be expressed in terms of money, is not considered and recorded in the books of accounts.
(ii) Sometimes accounting information is based on estimates.
(iii) It is done by individuals, occurrence of any mistakes may lead to faulty results.
(iv) Accounting ignores the effect of price level changes.
(g) What is Accounting Cycle?
Ans: Accounting cycle is a process of recording and processing all financial transactions of a company starting from the occurrence of a transaction till its representation on financial statement. One of the main task of accountant is to keep track of the full accounting cycle from the starting till the end. The cycle repeats itself in every financial year as long as a company remains in the business. The accounting cycle incorporates all the accounts, journal entries, ledgers, debit and credits, adjusting entries over a full cycle.
(h) Describe the different phases of Accounting Cycle.
Ans: The different phases of Accounting Cycle are mentioned below:
(i) Recording of transaction: As soon as a transaction takes place, it is first recorded in books.
(ii) Journal: Transactions are recorded in the journal chronologically.
(iii) Ledger: All journals are posted into ledger chronologically and in a classified manner.
(iv) Trial Balance: After taking all the ledger account closing balances, a trial balance is prepared at the end of the period for the preparation of financial statements.
(v) Adjustment Entries: All the adjustments entries are to be recorded properly and adjusted accordingly before preparing financial statements.
(vi) Adjusted Trial Balance: An adjusted trial balance may also be prepared.
(vii) Closing Entries: All the nominal accounts are to be closed by the transferring to trading account and profit and loss account.
(viii) Financial Statements: Financial statements can be easily prepared which will exhibit the true financial position and operating results of the business.
