Question Bank
** Note: Students to be instructed to draw well labeled diagrams wherever
necessary, to support their answers (especially in level B and C questions)
** The format is for Unit wise question bank, kindly insert the sheets for
various units
Question Bank - Unit no.: 1
Program: BHM Course Name: Hotel Accountancy Course
Code: 23BHHM509 Academic year: 2024-25 Sem/Year: 2024
Level A. Easy Questions (2 marks each)
S. Questions BL*
CO*
No.
Q1 Identify the key purpose of accounting. CO1 01
Q2 Define the term "accounting." CO1 01
Q3 List two types of accounting. CO1 01
Q4 Mention one principle of accounting. CO1 01
Q5 Describe the term "financial accounting." CO1 01
Q6 Classify accounting into its main types. CO1 01
Q7 Name one system of accounting. CO1 01
Q8 State one commonly used accounting principle. CO1 01
Q9 Recognize a typical characteristic of double-entry CO1 01
accounting.
Q10 Explain the importance of Generally Accepted CO1 01
Accounting Principles (GAAP).
Q11 Name the book where financial transactions are first CO1 01
recorded.
Q12 State the function of a journal in accounting. CO1 01
Q13 Write the format of a journal entry. CO1 01
Q14 List one rule of debit. CO1 01
Q15 State the rule of credit in accounting. CO1 01
Q16 Identify a key feature of a compound journal entry. CO1 01
Q17 Explain what an opening entry is. CO1 01
Q18 Provide an example of a simple journal entry. CO1 01
Q19 Describe the term "compound entry." CO1 01
Q20 Show the effect of a debit on an asset account. CO1 01
5
Q21 Explain the main purpose of accounting and why it is CO1 01
important for businesses.
Q22 Differentiate between financial accounting and CO1 01
management accounting.
Q23 List and briefly explain two types of accounting CO1 01
systems.
Q24 Outline the key principles of accounting and describe CO1 01
one of them in detail.
Q25 Define Generally Accepted Accounting Principles CO1 01
(GAAP) and explain why they are necessary in
accounting.
Q26 Describe the format of a journal entry and give an CO1 01
example of a simple journal entry.
Q27 Explain the rules of debit and credit with examples CO1 01
for an asset account.
Q28 What is the difference between an opening entry and CO1 01
a compound journal entry? Provide examples.
Q29 Explain the process of recording a transaction in the CO1 01
journal and mention any one type of journal entry
(e.g., simple or compound).
Q30 Demonstrate how a journal entry is made for a CO1 01
business transaction, including both the debit and
credit parts.
10
Q31 Explain the concept of accounting. Discuss its CO1 01
importance in financial decision-making for
businesses, and provide an example of how
accounting helps a company monitor its
performance.
Q32 List and briefly explain the different types of CO1 01
accounting. How do each of these types support the
overall function of a business?
Q33 Describe the main principles of accounting and CO1 01
discuss one of them in detail. Include an example of
how this principle is applied in real-life accounting
practice.
Q34 Define the journal in accounting and explain its role CO1 01
in the accounting system. Include the steps involved
in recording a transaction in the journal and provide
an example.
Q35 Explain the format of a journal entry and describe CO1 01
how the rules of debit and credit apply to various
types of accounts (e.g., assets, liabilities, and
revenue).
Q36 Explain the purpose of a ledger in accounting and CO1 01
describe the process of posting from the journal to
the ledger. Provide an example of a ledger entry and
explain how it reflects the financial position of the
business.
Question Bank - Unit no.: 2
Program: BHM Course Name: Hotel Accountancy Course Code:
23BHHM509 Academic year: 2024-25 Sem/Year: 2024
Level A. Easy Questions (2 marks each)
S. Questions BL*
CO*
No.
Q1 State the purpose of subsidiary books in CO2 01
accounting.
Q2 Identify one benefit of using subsidiary books. CO2 01
Q3 List two types of subsidiary books. CO2 01
Q4 Explain the function of the Purchase Book in CO2 01
accounting.
Q5 Describe the Sales Book and its use in the CO2 01
accounting process.
Q6 Mention one type of transaction recorded in the CO2 01
Purchase Returns Book.
Q7 State the primary purpose of the Sales Returns CO2 01
Book.
Q8 List one type of entry found in the Journal Proper. CO2 01
Q9 Describe one advantage of using subsidiary books CO2 01
instead of recording all transactions in the general
journal.
Q10 Explain the role of subsidiary books in simplifying CO2 01
the accounting process.
Q11 Define a Cash Book in accounting. CO2 01
Q12 Identify one advantage of maintaining a Cash CO2 01
Book.
Q13 Differentiate between a Simple Cash Book and a CO2 01
Double Column Cash Book.
Q14 Describe the purpose of the Three Column Cash CO2 01
Book.
Q15 Explain the term "Petty Cash Book" and its CO2 01
purpose.
Q16 Mention one feature of the Petty Cash Book using CO2 01
the Imprest System.
Q17 Describe how a Petty Cash Book is maintained CO2 01
using a tabular format.
Q18 State one advantage of using the Petty Cash Book CO2 01
with the Imprest System.
Q19 Show how cash transactions are recorded in a CO2 01
Simple Cash Book.
Q20 Illustrate a typical entry in a Double Column Cash CO2 01
Book.
Q21 Explain the need for subsidiary books in CO2 01
accounting and provide one example of how they
help in organizing financial transactions.
Q22 List and describe the different types of subsidiary CO2 01
books, and explain the specific purpose of each one.
Q23 Explain the purpose of the Purchase Book and CO2 01
provide an example of a transaction that would be
recorded in it.
Q24 Describe the Sales Returns Book and explain why CO2 01
businesses maintain this book. Give an example of a
transaction recorded in the Sales Returns Book.
Q25 Explain the role of the Journal Proper in the CO2 01
accounting system and give one example of a
transaction that would be recorded in it.
Q26 Define a Cash Book and explain its role in CO2 01
managing cash transactions for a business. Provide
one example of an entry in a Cash Book.
Q27 List the advantages of using a Cash Book, and CO2 01
explain how it simplifies the recording of
transactions.
Q28 Explain the difference between a Simple Cash CO2 01
Book and a Double Column Cash Book. Provide an
example of when each would be used.
Q29 Describe the Three Column Cash Book and explain CO2 01
how it records both cash and bank transactions.
Include an example of an entry.
Q30 Explain the Petty Cash Book using the Imprest CO2 01
System and describe how it is maintained. Give an
example of a petty cash transaction recorded in
tabular form.
Q31 Explain the importance of subsidiary books in CO2 01
accounting. Discuss how they help in organizing and
simplifying financial transactions, and give examples
of at least two types of subsidiary books.
Q32 List and explain the different types of subsidiary CO2 01
books used in accounting. For each book, provide an
example of the kind of transaction that would be
recorded in it.
Q33 Describe the function and usage of the Purchase CO2 01
Returns Book and the Sales Returns Book in
accounting. Provide an example of a transaction for
each.
Q34 Define a Cash Book and explain its role in the CO2 01
accounting system. Describe the different types of
Cash Books (Simple, Double Column, and Three
Column) and explain how each type is used with
examples.
Q35 Discuss the advantages of maintaining a Cash CO2 01
Book in accounting. Compare the Simple Cash Book
with the Double Column Cash Book and explain when
each is used in a business.
Q36 Explain the purpose of a Petty Cash Book with the CO2 01
Imprest System. Describe how transactions are
recorded in a Petty Cash Book in tabular form, and
provide an example of a petty cash transaction.
Question Bank - Unit no.: 3
Program: BHM Course Name: Hotel Accountancy
Course Code: 23BHHM509 Academic year: 2024-25 Sem/Year: 2024
Level A. Easy Questions (2 marks each)
S. Questions BL*
CO*
No.
Q1 State the meaning of a Bank Reconciliation CO3 01
Statement.
Q2 Explain the reason for a difference in balances CO3 01
between the Cash Book and the Pass Book.
Q3 Mention one reason for a discrepancy in the bank CO3 01
balance according to the Pass Book.
Q4 Identify one item that could cause the Cash Book CO3 01
balance to be different from the Pass Book balance.
Q5 List one reason for a cheque being recorded in the CO3 01
Cash Book but not yet cleared in the Pass Book.
Q6 Define "outstanding cheques" and explain their CO3 01
effect on the Bank Reconciliation Statement.
Q7 Describe one item that would cause an error in the CO3 01
Cash Book balance.
Q8 State the purpose of reconciling the Pass Book and CO3 01
Cash Book balances.
Q9 Mention one item that could be added to the Cash CO3 01
Book when preparing a Bank Reconciliation
Statement.
Q10 Identify one item that could be subtracted from CO3 01
the Cash Book during reconciliation.
Q11 Define a Trial Balance in accounting. CO3 01
Q12 Explain the purpose of preparing a Trial Balance. CO3 01
Q13 List one method of preparing a Trial Balance. CO3 01
Q14 Identify one advantage of preparing a Trial CO3 01
Balance.
Q15 State one limitation of the Trial Balance. CO3 01
Q16 Explain one method to check the accuracy of a CO3 01
Trial Balance.
Q17 Mention one type of error that a Trial Balance will CO3 01
not detect.
Q18 Describe one situation where a Trial Balance may CO3 01
not balance.
Q19 Identify one key feature of the Trial Balance. CO3 01
Q20 State one limitation of relying solely on a Trial CO3 01
Balance for detecting errors.
Q21 Explain the meaning of a Bank Reconciliation CO3 01
Statement. Discuss why businesses prepare this
statement and how it helps in identifying errors.
Q22 Describe at least three common reasons for CO3 01
differences between the balances in the Cash Book
and the Pass Book. Provide an example for each.
Q23 Explain the process of preparing a Bank CO3 01
Reconciliation Statement. Describe how you would
adjust the Cash Book balance to match the Pass Book
balance.
Q24 Discuss the effect of outstanding cheques and CO3 01
deposits in transit on the Bank Reconciliation
Statement. Provide an example for each.
Q25 Describe the relationship between the Pass Book CO3 01
and Cash Book. Explain how reconciling these books
helps in identifying discrepancies and errors in the
accounting records.
Q26 Using the balances provided, prepare a Trial Balance: CO3 01
Accounts Receivable: 1,500
Accounts Payable: 600
Sales: 7,000
Capital: 6,000
Insurance Expense: 300
Rent Income: 1,200
Q27 The following balances have been extracted from the CO3 01
books of ABC Ltd. Prepare a Trial Balance:
Sales Revenue: 10,000
Purchase of Goods: 3,500
Salaries Expense: 1,200
Accounts Payable: 2,000
Cash: 2,800
Buildings: 5,000
Q28 From the given ledger balances, prepare a Trial CO3 01
Balance:
Machinery: 6,000
Bank: 2,500
Accounts Receivable: 4,500
Capital: 10,000
Sales: 5,500
Rent Expense: 800
Q29 The following balances are extracted from the CO3 01
books of XYZ Ltd. Prepare a Trial Balance:
Rent Expense: 500
Sales: 3,000
Wages: 700
Office Supplies: 200
Drawings: 400
Bank Loan: 2,000
Q30 Given the following balances from the ledger, CO3 01
prepare a Trial Balance:
Cash: 5,000
Accounts Payable: 2,000
Accounts Receivable: 3,000
Capital: 8,000
Purchases: 4,000
Q31 Define a Bank Reconciliation Statement and CO3 01
explain its importance in the accounting process.
Discuss how the differences between the Cash Book
and Pass Book are reconciled. Include examples of
common items that may cause discrepancies.
Q32 List and explain the key reasons for differences CO3 01
between the Cash Book and Pass Book balances. For
each reason, provide an example of how it affects
the balances.
Q33 Describe the process of preparing a Bank CO3 01
Reconciliation Statement. Include the steps involved
in adjusting the Cash Book balance to match the Pass
Book balance, and explain how outstanding cheques
or deposits in transit are treated.
Q34 Below are the balances extracted from the books of CO3 01
ABC Corporation:
Cash: 3,200
Accounts Payable: 1,500
Office Supplies: 700
Sales Revenue: 4,500
Rent Expense: 1,200
Capital: 5,000
Prepare a Trial Balance and check if the debits and
credits match.
Q35 The following are the balances extracted from the CO3 01
ledger of XYZ Ltd:
Accounts Receivable: 2,000
Accounts Payable: 1,000
Wages Expense: 800
Bank Loan: 3,000
Office Equipment: 4,500
Sales Revenue: 5,200
Prepare a Trial Balance using the provided figures
and show the total debits and credits.
Q36 The following balances have been extracted from the CO3 01
books of a business:
Cash: 1,000
Accounts Payable: 500
Sales: 3,000
Capital: 2,000
Purchases: 2,500
Rent Expense: 400
Prepare a Trial Balance using these balances. Ensure
that the total of debits equals the total of credits.
Question Bank - Unit no.: 4
Program: BHM Course Name: Hotel Accountancy Course Code:
23BHHM509 Academic year: 2024-25 Sem/Year: 2024
Level A. Easy Questions (2 marks each)
S. Questions BL*
CO*
No.
Q1 State the meaning of final accounts in accounting. CO4 01
Q2 Explain the purpose of preparing final accounts at CO4 01
the end of an accounting period.
Q3 Mention one key component of final accounts. CO4 01
Q4 Identify the three main types of final accounts. CO4 01
Q5 Describe the purpose of the Trading Account in CO4 01
final accounts.
Q6 Explain the role of the Profit & Loss Account in the CO4 01
final accounts.
Q7 State the function of the Balance Sheet in final CO4 01
accounts.
Q8 Differentiate between the Trading Account and the CO4 01
Profit & Loss Account.
Q9 Describe the difference between the Profit & Loss CO4 01
Account and the Balance Sheet.
Q10 Identify one key difference between the Trading CO4 01
Account and the Profit & Loss Account.
Q11 Explain the procedure for preparing final accounts. CO4 01
Q12 List one adjustment made in final accounts related CO4 01
to closing stock.
Q13 Describe the treatment of prepaid expenses in CO4 01
final accounts.
Q14 Explain how outstanding expenses are treated in CO4 01
final accounts.
Q15 State how depreciation is handled in final CO4 01
accounts.
Q16 Describe the effect of closing stock on the Trading CO4 01
Account.
Q17 Explain the accounting treatment of prepaid CO4 01
expenses in the Profit & Loss Account.
Q18 Mention one example of outstanding expenses in CO4 01
final accounts.
Q19 Explain the adjustment for depreciation in the CO4 01
Balance Sheet.
Q20 State the effect of adjustments like prepaid CO4 01
expenses or outstanding expenses on the final
accounts.
Q21 Explain the concept of final accounts in CO4 01
accounting. Discuss their importance in assessing the
financial performance and position of a business at
the end of an accounting period.
Q22 The following information is available: CO4 01
Sales: ₹50,000
Opening Stock: ₹5,000
Purchases: ₹30,000
Closing Stock: ₹6,000
Gross Profit: ₹8,000
Prepare the Trading Account using this information.
Q23 Differentiate between the Trading Account, Profit CO4 01
& Loss Account, and Balance Sheet. Explain the
purpose of each account and provide an example of
an item found in each.
Q24 Given the following balances, prepare the Profit & CO4 01
Loss Account:
Sales: ₹80,000
Opening Stock: ₹4,000
Purchases: ₹50,000
Closing Stock: ₹6,000
Salaries: ₹3,000
Rent: ₹2,000
Gross Profit: ₹12,000
Prepare the Profit & Loss Account.
Q25 Explain the treatment of prepaid expenses in final CO4 01
accounts. Discuss how they are adjusted in both the
Profit & Loss Account and the Balance Sheet. Provide
an example of a prepaid expense.
Q26 Using the following data, prepare a Balance Sheet: CO4 01
Capital: ₹40,000
Liabilities: ₹10,000
Assets: ₹25,000
Cash in hand: ₹5,000
Bank: ₹8,000
Closing Stock: ₹7,000
Prepare the Balance Sheet of the business.
Q27 Explain how depreciation is accounted for in final CO4 01
accounts. Discuss its effect on the Profit & Loss
Account and the Balance Sheet, and provide an
example of an asset subject to depreciation.
Q28 The following balances are given: CO4 01
Gross Profit: ₹15,000
Rent Expense: ₹2,500
Depreciation on Machinery: ₹1,000
Net Profit: ₹8,500
Interest on Loan: ₹1,500
Prepare the Profit & Loss Account showing the Net
Profit.
Q29 Explain the role of the Balance Sheet in final CO4 01
accounts. Discuss its importance in showing the
financial position of a business and the key items
included in it.
Q30 The following balances are available: CO4 01
Sales: ₹100,000
Cost of Goods Sold: ₹60,000
Opening Stock: ₹8,000
Closing Stock: ₹10,000
Rent Expense: ₹4,000
Salaries Expense: ₹5,000
Prepare the Trading Account and calculate the Gross
Profit.
Q31 Define final accounts in accounting and explain CO4 01
their purpose. Discuss the importance of the Trading
Account, Profit & Loss Account, and Balance Sheet in
determining the financial health of a business.
Q32 The following information is provided: CO4 01
Sales: ₹50,000
Purchases: ₹30,000
Opening Stock: ₹7,000
Closing Stock: ₹5,000
Direct Expenses (like wages): ₹2,000
Prepare the Trading Account and calculate the
Gross Profit.
(Hint: Gross Profit = Sales – (Opening Stock +
Purchases + Direct Expenses – Closing Stock))
Q33 Compare and contrast the Trading Account, Profit CO4 01
& Loss Account, and Balance Sheet. Explain the main
difference between these accounts in terms of their
purpose, contents, and role in the final accounting
proc ess.
Q34 The following details are provided for XYZ Ltd: CO4 01
Gross Profit: ₹15,000
Salaries: ₹3,000
Rent Expense: ₹1,500
Depreciation on Machinery: ₹2,000
Interest Income: ₹500
Prepare the Profit & Loss Account and
calculate the Net Profit.
(Hint: Net Profit = Gross Profit – Expenses + Income)
Q35 Discuss the adjustments made for prepaid CO4 01
expenses and outstanding expenses in the
preparation of final accounts. Explain the treatment
of each in the Profit & Loss Account and Balance
Sheet with examples.
Q36 The following information is available for ABC CO4 01
Ltd:
Capital: ₹40,000
Bank Loan: ₹10,000
Cash: ₹5,000
Accounts Payable: ₹3,000
Accounts Receivable: ₹4,000
Machinery: ₹8,000
Prepare the Balance Sheet as of the given
date.
(Hint: The Balance Sheet should show Total Assets =
Total Liabilities + Capital. You will need to classify
assets and liabilities accordingly.)
