Introduction to Accounting — Account STD 11 Commerce — Question

Explain the following:
Business Entity Concept.

Record the following transactions in the books of Sahdev & Sons assuming all transactions have been entered within the state of Bihar, Charging CGST and SGST @ 9% each.

1.	Bought goods from Nanak Bros. for ₹ 4,00,000 at 10% trade discount and 3% cash discount on purchase price. 25% of the amount paid at the time of purchase.
2.	Sold goods to Kumar & Sons. for ₹ 2,00,000 at 20% trade discount and 5% cash discount on sale price. 60% of the amount received by Cheque.
3.	Received from Gopi Chand ₹ 38,000 by Cheque after deducting 5% cash discount.
4.	Paid ₹ 20,000 for rent by Cheque.
5.	Paid ₹ 50,000 for salaries by Cheque.
6.	Goods worth ₹ 10,000 distributed as free samples.
7.	₹ 5,000 due from Chanderkant are bad-debts.
8.	Sold household furniture for ₹ 15,000 and the proceeds were invested into business.

Briefly state how the cash book is both journal and a ledger.

Enter the following transactions in the Sales Return Book of Raj Computers, Delhi:

2018
July 1	Sohan & Sons returned 2 Laptops HP sold @ ₹ 40,000 each plus CGST and SGST @ 6% each
July 2	Ramesh 2 'Ricoh' printers sold @ ₹ 10,000 each plus IGST @ 12%
July 25	Dinesh, Chandigarh returned 10 HP Desktops sold @ ₹ 20,000 each plus IGST @ 12% for delayed supply
July 26	Computer Mouse returned by Ravi, Delhi sold to him for cash ₹ 2,000 plus CGST and SGST @ 6% each

Write up the Ledger Accounts.

What is a Voucher? Prepare an imaginary Specimen of Voucher.

Give the rules of Debit and Credit and explain them with imaginary examples.
Under Double Entry System of accounting each transaction has two aspects. One aspect is debit, i.e., receiving or incoming aspect. Another aspect is credit, i.e., giving or outgoing aspect. Debit and credit aspects of a transaction form the basis of Double Entry System.
Rules of Double Entry or Rules of Debit and Credit are formed on the basis of these two aspects in each of the business transactions. There are two approaches for deciding when to write on the debit side of account and when to write on the credit side of an account, i.e., which account is to be debited and which account is to be credited. The rules or: the basis of which such decision is taken are called Rules of Debit and Credit.
Rules of Debit and Credit (Traditional Classification) at a Glance:

S.No	Types of Account	Account to be Debited	Account to be Credited
1	Personal Account	Receiver	Giver
2	Real Account	What comes in	what goes out
3	Nominal Account	Expense and Loss	Income and Gain

From the following transactions, state the nature of accounts and state which account will be debited and which account will be credited:

S.No		₹
1	Mohan started business with cash	5,00,000
2	Purchased goods for cash	1,00,000
3	Sold goods for cash	1,50,000
4	Received interest from Ram in cash	500
5	Sold goods to Ashok	60,000
6	Purchased furniture for cash	50,000
7	Paid wages	20.000

Is the agreement of a Trial Balance absolute proof of the accuracy of the books of account? If not, what are the errors which remain even after agreement?

What is meant by a Sales Return Book? When is it opened?

What is meant by Cash Basis of Accounting? Give two disadvantages of Cash Basis of Accounting.

Explain the meaning of the following term:
Capital.