Trial Balance and Errors — Account STD 11 Commerce — Question

Meena is owner of a Restaurant. She paid son's fees from her personal bank account ₹`20,000. Whether this constitute her Business Transaction? Give reason.

What is Credit?

Name two items which are written in Minus column while starting with Overdraft balance of Cash Book.

Explain of the following accounting convention:
Conservatism.

A bill for ₹ 40,000 was discounted by Ganesh with Axis Bank for ₹ 8,500. At maturity, the bill was dishonoured and bank notified it for ₹ 600. How much amount Axis Bank will deduct from the bank balance of Ganesh at the time of dishonour?

Does cash basis of accounting violates GAAP? If yes, how?

On 25th March, 2017, a fire broke out in the premises of Kamal Ltd. And destroyed a part of its plant and machinery. On account of this, a sharp decline in production for the next six months is expected. The company did not disclose this fact in its annual report for the year ended 31st March, 2017. What is your opinion about this omission?

A firm has received a large order to supply the goods. Will it be recorded in the books?

Exe Co. has purchased 50 computers from HCL and is allowed discount of ₹ 10,000 for purchase thereof. Is the discount allowed Trade Discount or a Cash Discount? How will you record it in the books of account?

What is Opening Entry?