Recording of Transactions - 1 — Account STD 11 Commerce — Question

Assertion: Journal Proper is a residuary book which is used for recording those transactions which are not recorded in any of the other books of original entry.
Reason:Journal proper or General Journal is a simple book of chronological records of business transactions. This book of original entry (simple journal) in which miscellaneous credit transactions which do not fit in any other books are recorded.

Assertion (A) : The main purpose of cost accounting is to ascertain total cost and per unit cost of goods produced.
Reason (R): The main purpose of financial accounting is to record the business transactions and to ascertain profit or loss and the financial position of the business.

Assertion: Ledger is called Principal Book of accounts as any accounting information can be extracted from it.
Reason: Ledger are essential to complete a system of accounting.

Assertion (A) : When the cheques are not presented for payment, favourable
balance as per the cash book is less than that of the pass book.
Reason (R) :  If an entry of payment has been recorded in the pass book but not in the cash book, then the balance of pass book will be less than of cash book.

Assertion (A): Bank statement is prepared by Bank.
Reason (R): All business firms open current account with banks.

Assertion (A) : Accounting has a wider scope than book-keeping.
Reason (R): Book-keeping involves recording, classifying, summarizing and analysing the financial transactions.

Assertion (A) : A bank reconciliation statement is a statement prepared to reconcile the bank balance as per cash book with the balance as per pass book or bank statement
Reason (R) : The amount of balance shown in the pass book or the bank statement must tally with the balance as shown in the cash book.

Assertion (A) : Charging depreciation is important to represent true and fair financial position.
Reason (R) : If depreciation on assets is not provided for, then the assets will be overvalued.

Assertion (A) - There should be complete and understandable reporting on the financial statements of all significant information relating to the economic affairs of the entity.
Reason (R) – Such disclosure of material information will result in better understanding of financial statements.

Assertion (A): For transactions which reduce the Cash Book balance, Passbook must be decreased for the purpose of reconciliation of BRS.
Reason (R): If BRS is prepared with Passbook Balance.