Depreciation, Provisions and Reserves — Account STD 11 Commerce — Question

State any four essential features of bill of exchange.

The passbook of Mr. Mohit current account showed a credit Balance of ₹ 20,000 on dated December 31, 2016. Prepare a Bank Reconciliation Statement with the following information.

1. A cheque of ₹ 400 drawn on his saving account has been shown on current account.
2. He issued two cheques of ₹ 300 and ₹ 500 on of December 25, but only the Ist cheque was presented for payment.
3. One cheque issued by Mr. Mohit of ₹ 500 on December 25, but it was not presented for payment whereas it was recorded twice in the cash book.

What is Cash Discount?

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?

When do you credit a liability account? What will you do to reduce the balance of any liability account? Explain with an example.

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

What is the primary reason for business students and others to study accounting discipline?

What is meant by the cash basis of accounting? Why is the cash basis of accounting not popular as a system of accounting?

What are Reserves?

What are the different uses available to a holder for dealing with bills receivable?