Depreciation — Book Keeping & Accountancy STD 11 Commerce / Arts — Question

The person who maintains the Petty Cash Book is called Chief Cashier.

All direct expenses are debited to the Profit and Loss Account.

Small and large business records all transactions in subsidiary books.

The balancing figure of the Trading Account is Net Profit or Net Loss.

Wages paid on the installation of Machinery is Debited to wages A/c.

Capital A/c……………..Dr.
To Profit and Loss Account
(Being Net Profit transferred to Capital A/c)

Opening stock A/c…………….Dr
Direct expenses A/c…………….Dr
Purchase A/c………………Dr
To Trading A/c
(Being Opening Stock, Direct expenses, and purchase transferred to Trading A/c)

When extracts are given for the common period only common items are to be considered.

Depreciation is charged only when the business is making a loss.

Trading A/c……………Dr.
To Sales A/c
(Being Sales transferred to Trading A/c)