Theory Base of Accounting — Account STD 11 Commerce — Question

A machine was purchased on 1st April, 2013. The balance of this machine on 31st March, 2016 is ₹ 5,83,200. Depreciation is charged @ 10% p.a. on written down value method. What was the cost price of the machine on 1st April, 2013?

Put the following on the proper side of Cash Account, Debtors's Account and Creditor's Account:

		(₹)
a.	Sold goods to Shankar on Credit	50,000
b.	Sold goods to Ghanshyam for Cash	30,000
c.	Purchased goods from Mohan on Credit	25,000
d.	Received from Shankar	29,000
e.	Shankar returned goods	1,000
f.	Sold goods to Shankar for Cash	5,000
g.	Returned goods to Mohan	2,000
h.	Paid Rent	4,000

State any four essential features of bill of exchange.

Open 'T' shape account of our Debtor 'Ram' and write the following transactions on proper side:

		(₹)
i.	Sold goods to Ram on Credit	20,000
ii.	Received from Ram	15,000
iii.	Ram returned goods to us	3,000
iv.	Again sold goods to Ram on Credit	10,000
v.	Ram returned goods to us	1,000

Open 'T' shape account of our creditor 'Raghubir' and write the following transactions on the proper side:

1. Purchased goods from Raghubir on credit for ₹ 50,000.
2. Returned goods to Raghubir for ₹ 5,000.
3. Paid to Raghubir ₹ 30,000.
4. Purchased goods from Raghubir on credit for ₹ 16,000.
5. Paid to Raghubir ₹ 20,000.

What is a Personal Account? Is Capital Account a Personal Account? If yes, why?

Asha sold goods worth ₹ 19,000 to Nisha on March 2, 2016. ₹ 4,000 were paid by Nisha immediately and for the balance she accepted a bill of exchange drawn upon her by Asha payable after three months. Asha discounted the bill immediately with her bank @ 10% p.a. On the due date Nisha dishonoured the bill and the bank paid ₹ 30 as noting charges.
On 5th June, Nisha paid ₹ 3,030 (including noting charges) in cash and accepted a new bill at one month for the amount due to Asha together with interest @ 15% p.a. Record the necessary journal entries in the books of Asha and Nisha.

Journalise the following transactions:

1. Purchased a Motor Car for ₹ 3,00,000 and paid ₹ 25,000 for its repair and renewal. Entire payment is made by cheque.
2. Received Rent ₹ 5,000.
3. Goods worth ₹ 20,000 were distributed as free samples.
4. Charge depreciation on Motor Car ₹ 32,500.
5. Rent due to Landlord ₹ 10,000 and Salary due to Clerks ₹ 80,000.
6. Charge interest on Capital ₹ 20,000.
7. ₹ 5,000 due from Sanjay Gupta are bad-debts.
8. Goods worth ₹ 50,000 were destroyed by fire.
9. ash ₹ 5,000 and goods worth ₹ 20,000 were stolen by an employee.

Pass entries in the books of Ganguli & Sons. assuming all transactions have been entered in the state of West Bengal:

1.	Purchased goods for ₹ 2,00,000 and payment made by cheque.
2.	Sold goods for ₹ 1,60,000 to Devki Nandan & Sons.
3.	Purchased goods for ₹ 50,000 on credit.
4.	Paid for printing and stationery ₹ 4,000.
5.	Received for commission ₹ 5,000.
6.	Output GST adjusted against Input GST.

Assume CGST @ 6% and SGST @ 6%.

What is the main objective of setting accounting standards?
OR
What is meant by Accounting Standards? Explain one objective of Accounting Standards.