How to Prepare Bookkeeping Exam for Appendix3 Exam of Accounts Department

 

How to Prepare for the Advanced Book Keeping Paper 

(Part I of Appendix III-A Examination)

Many candidates find the Advanced Book Keeping paper in Part I of the Appendix III-A Examination quite challenging. Interestingly, a large number of those who fail this paper are commerce graduates. One possible reason is overconfidence, leading to underestimation of the paper’s depth and complexity.

Recommended Books:

1. Official Textbook:
   
   

• “The Students’ Complete Commercial Book-Keeping, Accounting and Banking” by Arthur Fieldhouse
  This is the officially prescribed book for this paper. However, candidates are advised to check its availability with publishers or suppliers, as it may not be easily accessible.
  
  

2. Reference from Appendix II-A:
   
   

• “Double-Entry Book-Keeping” by Jamshed R. Batliboi (Standard Accountancy Publications).  Although recommended for Appendix II-A, this book can serve as a helpful reference. Please verify its availability.
  
  

3. Suggested by Experts:
   
   

• “Advanced Accounts” by Shukla & Grewal (S. Chand & Co. Pvt. Ltd., New Delhi) -  This book is easy to understand, widely used by students of commerce, and offers clear explanations suitable for exam preparation.
  
  

4. Additional Suggestion:
   
   

• Consult students pursuing B.Com, CA, or ICWA to explore more effective and updated book options.
  
  

Key Chapters to Look for in Any Selected Book:

Even if you opt for a different book, ensure that it covers the following essential topics (many of which are part of the Appendix II-A syllabus):

• Elements of Double Entry
  
  

• Rules for Journalizing
  
  

• Ledger Accounts
  
  

• Sub-Divisions of Journal
  
  

• The Cash Book
  
  

• Banking Transactions
  
  

• Bill Transactions
  
  

• The Journal Proper
  
  

• The Trial Balance
  
  

• The Trading Account
  
  

• The Profit and Loss Account
  
  

• The Balance Sheet
  
  

• Depreciation, Reserve, and Other Funds
  
  

Important Tips for Preparation:

• Thoroughly analyze previous question papers to understand the pattern and frequently asked topics.
  
  

• Begin preparation early. Do not wait for the official notification of the Appendix III-A examination to start studying. Starting ahead gives you a strategic advantage.

Bookkeeping - Accountancy - MCQ Test for Appendix3 /Appendix2 Exam

 MCQ Test on Bookkeeping for Appendix2 / appendix3 Exam.  Please attempt and check your score with the help of Key 

Bookkeeping MCQ Test 30

Key for Bookkeeping MCQ Test 30

Bookkeeping - Journal Entries - Examples

 Bookkeeping - Journal Entries - Examples  

Nageswara Rao 9492432160

1. If the Proprietor has withdrawn cash from the Business for Personal use, the journal entry is _________________

1. Drawings Account is Debited and Capital Account is Credited 

2. Cash Account is Debited and Drawings Account is Credited

3. Capital Account is Debited and Cash Account is Credited 

4. None of these  

Answer: D. None of these.  The correct answer is Drawings Account is Debited and Cash Account is Credited. 

Explanation: 

Drawings mean the amount withdrawn by the Proprietor from the Business. Hence Proprietor’s account is a personal account.  However, we operate Drawings Account in case of withdrawal of money and operate Capital Account in case of inducting the money into the Business.  

The drawing account comes under Personal Account.  The Rule of the Personal Account is Debit the Receiver and Credit the Giver.   

Hence Drawings Account is Debited. 

Cash is a Real Account.  The Rule of a Real Account is Debit what comes in and Credit what goes out. 

Hence the Cash Account is credited. 

	First Account	Second Account
The Accounts Involved in the Transaction	Drawings	Cash
Type of Account	Personal Account	Real Account
Rule of Account	Debit the Receiver and Credit the Giver	Debit is What comes in and Credit is What goes out
Debit or Credit	Debited. Because the Proprietor is a receiver	Credited. Because Cash is going out from the Business

2. Cash Sales to Mr. Mohan.  The Journal Entry is ___________ 

1. The Cash Account is Debited and the Sales Account is Credited

2. Cash Account is Debited and Mohan Account is Credited

3. Mohan's Account is Debited and the Sales Account is Credited 

4. None of these  

The correct answer is A. Cash Account is Debited and the Sales Account is Credited

	First Account	Second Account
The Accounts Involved in the Transaction	Cash	Sales
Type of Account	Real Account	Nominal Account
Rule of Account	Debit is What comes in and Credit is What goes out	Debit all Expenses & losses and Credit all Incomes and Gains
Debit or Credit	Debited (Because cash is received)	Credited (because Sales is income)

Note: Both Purchases and Sales are Nominal Accounts.  Purchases imply expenses, whereas Sales imply generating Revenue (i.e., Incomes and Gains).  Thus as per the Golden Rule of Nominal Accounts, Debit all expenses & losses and Credit all incomes & gains. 

3. Credit purchases from Mr Krishna.  The Journal entry is _________

1. Purchase Account is Debited and Cash Account is Credited 

2. Goods Account is Debited and Krishna Account is Credited

3. Purchases Account is Debited and Krishna Account is Credited 

4. Krishna Account is Debited and Purchases Account is Credited 

The Correct Answer is C.  

	First Account	Second Account
The Accounts involved in the Transaction	Krishna	Purchases
Type of Account	Personal Account	Nominal Account
Rule of Account	Debit the Receiver and Credit the Giver	Debit all Expenses & losses and Credit all Incomes and Gains
Debit or Credit	Credited. Because Krishna is Giver.	Debited (Because Purchases is an expenses)

Note: Both Purchases and Sales are Nominal Accounts.  Purchases imply expenses, whereas Sales imply generating Revenue (i.e., Incomes and Gains).  Thus as per the Golden rule of Nominal Accounts, Debit all expenses & losses and Credit all incomes & gains.  

4. Salary paid to Ms Sunitha through Cheque.  The Journal entry is _________ 

1. Sunitha Account is Debited and Bank Account is Credited

2. Salaries Account is Debited and Bank Account is Credited

3. Bank Account is Debited and Sunitha Account is Credited

4. Bank Account is Debited and Salaries Account is Credited 

The correct Answer is B. 

 

	First Account	Second Account
The Accounts involved in the Transaction	Bank	Salaries
Type of Account	Real Account	Nominal Account
Rule of Account	Debit What comes in and Credit What goes out	Debit all Expenses & losses and Credit all Incomes and Gains
Debit or Credit	Credited (Because cash goes out from the Bank)	Debited (because Salaries is an expense.)

Notes: Sunitha Account is not comes in records. Because the Firm pays salary for services rendered by Sunitha.  Hence Salaries Account is recorded, not Sunitha Account.  

    

5. Goods returned to ABC limited.  Journal entry is _______________

1. Goods outward account is debited and ABC limited account is credited

2. Purchases Account is debited and ABC limited account is credited

3. ABC limited account is debited and Goods inward account is credited

4. None of these  

The Correct answer is ABC Limited Account is Debited and Goods Outward Account is Credited. 

Notes: Goods outward means Purchase Returns  and Goods inward means Sales Returns.  

	First Account	Second Account
The Accounts involved in the Transaction	ABC Limited	Goods outward
Type of Account	Personal Account	Nominal Account
Rule of Account	Debit the Receiver and Credit the Giver	Debit all Expenses & losses and Credit all Incomes and Gains
Debit or Credit	Debited.  Because ABC limited is receiver.	Credited.  Because Purchases is an expenses and Purchase Returns or Goods outward is an gain

Notes: Candidates are advised to do the above templates initially till become confident in journalising.the transactions. 

-- end–