Theory Base of Accounting — Account STD 11 Commerce — Question

What is meant by Revenue Reserve?

Give two basic purposes of accounting equation.

Do you think that a transaction can break the Accounting Equation?

What are Liabilities?

What is bill at sight?

Profit is earned on sale of Fixed Asset. What should be the accounting treatment of this profit?

X drew a bill for ₹ 10,000 on Y on 7th March, 2019 for 2 months. X discounted this bill with Bank on 10th March, 2019 at 12% p.a. On maturity, the bill was dishonoured and bank paid ₹ 175 as noting charges. How much amount bank will deduct from the bank balance of X at the time of dishonour?

While preparing Bank Reconciliation Statement from the debit balance of the Pass Book indicate whether the following items will be written in Plus or Minus Column.

1. Insurance premium paid by the bank.
2. Interest and dividend collected by the bank.
3. Payment of ‘Bills Payable' by the bank on behalf of the customer.
4. Interest allowed by the bank.
5. Cheques deposited into the bank but not yet cleared.

Name two types of Petty Cash Book.