DK Goel Accountancy Class 11 Solutions Chapter 7 Double Entry System is based on the current edition of DK Goel Class 11 Accountancy books and is explained by expert Accountancy teachers. MNS EdTech offers DK Goel Solutions to help students understand all of the theories in particular. While there are several concepts in accounting, the concepts of trial balance, depreciation, and bank reconciliation statement (BRS) are essential.
DK Goel Accountancy Class 11 Solutions – Chapter 7
Very Short Questions
Question 1
What is the double-entry system of book-keeping?
Solution: The double-entry system is an accounting system which affects at least two accounts simultaneously with every transaction. Two such examples are debit and credit account.
Question 2
State two type of accounts
Solution: The two types of accounts are.
(i) Personal account
(ii) Real account
(iii) Nominal account
Question 3
What are the personal account?
Solution: The account which is linked to a single company, institution, or a firm is known as a personal account.
Question 4
What are the real account?
Solution: These are accounts whose value is estimated in money and the business properties are known as a real account. Few examples are furniture account, cash account, etc.
Question 5
What are the nominal account?
Solution: All the accounts which are only mentioned but does not really exist is known as nominal account. For instance expense and income account.
Question 6
What are a natural personal account? Give an example.
Solution: ‘Natural Personal Account’ means all the account linked to a human being. Such as Priya’s account.
Question 7
What are artificial personal accounts? Give an example.
Solution: These accounts do not have a physical existence, such as human being, but are considered as a personal account. For example, a company’s account.
Question 8
What are representative personal accounts? Give an example.
Solution: When an account represents an individual or a group of individual, is known as a representative personal account. Such as outstanding rent account.
Question 9
What is the rule of recording transactions in a personal account?
Solution: The rule of recording transactions in a personal account is depicting debitor as receiver and creditor as a giver.
Question 10
What is the rule of recording transactions in a real account?
Solution: The rule of recording transactions in a personal account is recording debit as what comes in and credit as what goes out.
Question 11
What is the rule of recording transactions in a nominal account?
Solution: The rule of recording transactions in a personal account is recording debit as losses and expenses and credit as gains ans income.
Practical Questions
Question 1
Classify the following accounts under personal, real or nominal accounts:
| (i) Commission Paid(iii) Commission Accrued(v) Leasehold Property A/c(vii) Carriage Inwards A/c(ix) Drawings A/c(xi) Debtors(xii) Rent Paid in Advance | (iv) Prepaid Salaries(vi) Discount Allowed(viii) Life Insurance Corporation of India(x) Rent Received in Advance(xii) Sales A/c(xiv) Bank Overdraft(ii) Commission Received |
Solution:
| Personal Account | Real Account | Nominal Account |
| (iii) Commission Accrued(iv) Prepaid Salaries(viii) Life Insurance(ix) Drawings A/c(x) Rent Received in Advance(xi) Debtors(xii) Rent Paid in Advance(xiv) Bank Overdraft | (v) Leasehold Property A/c | (i) Commission Paid(ii) Commission Received (vi) Discount Allowed(vii) Carriage Inwards Account(xii) Sales A/c |
Question 2
Classify the following into real, personal, or Nominal account.
1. Capital 2. Drawings 3. Cash paid 4. Cash Received 5. Commission Paid 6. Commission Received 7. Purchases A/c 8.Sales A/c 9. Furniture 10. Cash A/c 11. Bank A/c 12. Bank Overdraft 13. Debtors A/c 14. Creditors A/c 15. Travelling Expenses 16. Goodwill 17. Patents 18. Salary A/c 19. Salary Outstanding A/c 20. Insurance A/c 21. Insurance Prepaid A/c 22. Bad Debts are written off 23. Bad Debts Recovered
Solution
| Personal Account | Real Account | Nominal Account |
| 1. Capital2. Drawings11. Bank A/c12. Bank Overdraft13. Debtors A/c14. Creditors A/c19. Salary Outstanding A/c21. Insurance Prepaid A/c | 3. Cash paid4. Cash Received9. Furniture10. Cash A/c16. Goodwill17. Patents | 5. Commission Paid6. Commission Received 7. Purchases A/c8.Sales A/c15. Travelling Expenses18. Salary A/c20. Insurance A/c22. Bad Debts are written off23. Bad Debts Recovered |
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