KSEEB Solutions For Class 9 Business Studies Chapter 3 Accounting In Business

KSEEB Solutions For Class 9 Business Studies Chapter 3 Accounting In Business Points To Remember

In general, accounting may be called the systematic record of business transactions to know the result of the business. The American Institute of Certified Public Accounts (AICPA) defined accounting as “the art of recording, classifying and summarising in a significant manner and in terms of money, transactions and events which are, in part at least, of a financial character and interpreting the results there off. American Accounting Association (A.A.A.) defined accounting as the process of identifying, measuring and communicating economic information to permit informed judgments and decisions by users of the information.

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

• Profit to the business is like food to the body (W.C.F. Heartly).
• Accounting records of a business concern are the permanent records of transactions relating to its income and expenditure.
• The art of recording the debit and credit aspects in an account of books is tanned as Book-keeping.
• The book in which Debit and Credit aspects are recorded is called a ledger.

KSEEB Class 9 Business Studies Accounting in Business Summary

There are two systems of Book-keeping:

1. Double-Entry System.
2. Single-Entry System

• While entering the aspects we enter two aspects on opposite sides. This system is called the Double entry system.
• The recording of all the transactions is called the Accounting cycle.
• Accounts are classified into three types. They are:

1. Personal Accounts
2. Real Accounts
3. Nominal Accounts

Accounting In Business Textual Questions And Answers

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

1. The book in which the daily business transactions are recorded is called the Rough book.
2. The transaction. “Paid salaries” comes under the Nominal Account kind of accounts
3. The modern and scientific method of maintaining accounts is called the Double Entry System of Bookkeeping.
4. The difference between the debit and credit sides of an account is called the balance of the account.
5. The two accounts of “commenced business with cash are” Cash and Capital.
6. The profit earned by Trade is transferred to Profit and loss a/c.
7. “The permanent assets lose a portion of their value every year” is called depreciation.
8. The difference between Assets and Liabilities of a Trade is called Capital.

Answer the following questions.

Question 1. Which is the book of original entries in Accounting? Why is it called the book of original entry?
Answer: Double-entry system. Since the full particulars of the transactions are recorded first in the Journal. It is called the book of original entries.

Class 9 Business Studies Accounting in Business KSEEB Notes

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

• Personal Accounts:- bank a/c,
• Real Accounts:- Cash a/c furniture a/c
• Nominal Accounts:- Interest a/c commission a/c

Question 3. What is the need for accounting in business?
Answer:
The need for accounting in business is:

• It is necessary 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.
• It is very essential to write down accounts.
• The concern earns profit through the transactions of the business, such as the purchase of goods, sale of goods, receipt of incomes, expenses, incurring losses, etc, to know the result of all these things is very important.

Question 4. What is the Double-entry system of bookkeeping?
Answer: Every ledger account has two sides (the specimen is given) one account receives the benefit and another account gives the benefit. While entering the aspects we enter two aspects on opposite sides. This system is called the Double entry system.

Question 5. Which are the final accounts? What is the result of the Profit and loss account?
Answer:
1. Final accounts are divided into three parts:

• Trading Account
• Profit and Loss account.
• Balance sheet

2. Profit and Loss account- (Generally these two accounts are clubbed together)
examples: Trading and Profit and Loss account for the year ending.

KSEEB Class 9 Business Studies Chapter 3 Question and Answers

Question 6. There is no need to find out the balance of goods sold account and goods purchases a/ c? Why?
Answer: Goods account appears as a goods purchases account and a goods sales account. So also goods returns account a purchases return account and a sales returns account. These accounts are not balanced but are taken as purchases a/c, sales a/c, purchases returns a/c, and sales returns a/c, and shown in the trial balance.

Question 7. What is the result of the depreciation of fixed assets?
Answer: The permanent assets lose their value every year. It is deducted from the asset and shown as a loss. The total debit and credit balances of personal accounts except for the capital accounts and Bank accounts are shown together.

Accounting In Business Additional Questions And Answers

Answer the following questions:

Question 1. What is accounting?
Answer: In general accounting may be called the systematic record of business transactions to know the result of the business.

Question 2. Define accounting according to the American Institute of Certified Public Accounts.
Answer: The American Institute of Certified Public Accounts (AICPA) defined accounting as “the art of recording, classifying and summarising hi a significant manner and in terms of money, transactions and events which are, in part at least, of a financial character and interpreting the results there off“.

SSLC Class 9 Business Studies Chapter 3 Solutions Karnataka Board

Question 3. What is accounting according to American Accounting Association?
Answer: American Accounting Association (A.A.A.) defined accounting as “the process of identifying, measuring and communicating economic information to permit informed judgments and decisions by users of the information”.

Question 4. What is Profit in business according to W.C.F. Heartly?
Answer: Profit to the business is like food to the body (W.C.F. Heartly). The art of recording the debit and credit aspects in an account of books is termed Book-keeping.

Accounting in Business Class 9 KSEEB Important Questions

Question 5. What is a ledger?
Answer: The book in which Debit and Credit aspects are recorded is called a ledger.

Question 6. Which are the two systems of Book-keeping?
Answer:
There are two systems of Book-keeping:

• Double-Entry System.
• Single-Entry System.

Question 7. What is the accounting cycle?
Answer: The recording of all the transactions is called the Accounting cycle.