Question

Match the following pairs:

Group ‘A’		Group ‘B’
(1)	Accrued Income	(a)	Single Entry System
(2)	Impersonal Accounts are not maintained	(b)	Volatile Memory
(3)	RAM	(c)	Asset side
(4)	Agent who sells goods of Joint Venture	(d)	Charges paid for erection of New Machinery
(5)	Installation Charges	(e)	Liability side
		(f)	Double Entry
		(g)	Non-volatile memory
		(h)	Entitled for commission on sale

Answer 1

Column A is correctly matched with Column B in the following table:

Group ‘A’		Group ‘B’
(1)	Accrued Income	(c)	Asset side
(2)	Impersonal Accounts are not maintained	(a)	Single Entry System
(3)	RAM	(b)	Volatile memory
(4)	Agent who sells goods of Joint Venture	(h)	Entitled for commission on sale
(5)	Installation Charges	(d)	Charges paid for erection of New Machinery

Explanation

Point (1) in Group ‘A’ is matched with point (c) in Group ‘B’

Accrued Income is the income that is earned during the accounting period but not received in the same year. It is an asset of the business, thus, appears on the Assets side of the Balance Sheet.

Point (2) in Group ‘A’ is matched with point (a) in Group ‘B’

Under the Single Entry System, we maintain only the Cash and Personal Accounts. On the other hand, Real and Nominal Accounts (such as Purchase Day Book, Sales Day Book, Purchases Return and Sales Return Book) are completely ignored. Therefore, we can say that impersonal accounts are not maintained under single entry system.

Point (3) in Group ‘A’ is matched with point (b) in Group ‘B’

RAM- Random Access Memory

As the name suggests, it is a form of data storage that can be accessed anytime.

A volatile memory is a kind of storage in which the data is lost if it is not saved when power supply is interrupted. So, RAM is a volatile memory.

Point (4) in Group ‘A’ is matched with point (h) in Group ‘B’

A firm appoints an agent to sell its goods and as a result of his efforts, he is entitled to receive an amount of commission on the total amount of sales made by him. Similar to this, when any of the co-venturer appoints an agent to promote its sales, he will also be entitled to commission on the sales made.

Point (5) in Group ‘A’ is matched with point (d) in Group ‘B’

Installation charges are paid to put an asset (a fixed asset) to use. These are also known as the erection charges. Therefore, charges paid on erection of new machinery will be termed as installation charges.