Theory Base of Accounting — Account STD 11 Commerce — Question

Which concept (principle) assumes that a business enterprise will not be liquidated in the near future?

Accounting records business transactions and events which are of financial nature. Do you consider it a limitation of accounting?

Rahul sold 100 Cricket Bats to V. Sports @ ₹ 5,000 each less 25% Trade Discount plus IGST @ 12% and 2% Cash Discount if V. Sports paid the amount in 14 days of sale. V. Sports paid the amount within 14 days. What will be the amount that Rahul should credit to Sales Account?

Name two items which are written in minus column while starting with Debit balance of Cash Book.

If capital of a business is ₹ 1,40,000 and liabilities are of ₹ 80,000, calculate the total assets of the business.

If the Capital of a business is ₹ 5,00,000 and Outside liabilities are ₹ 2,00,000, calculate total assets of the business.

“In case of a long term asset, repair and maintenance expenses are expected to rise in later years than in earlier year”. Which method is suitable for charging depreciation if the managernent does not want to increase burden on Profit & Loss Account on account of depreciation and repair.

Distinguish between Bill of Exchange and Promissory Note on the basis of acceptance.

Write one distinction between bill of exchange and promissory note.

What is meant by Reserves?