Accounts from Incomplete Records — Account STD 11 Commerce — Question

State the meaning of:
Income received in advance.

State with reasons whether the following are capital or revenue expenditures:

1. A new machine is purchased for ₹ 60,000, ₹ 800 were spent on its carriage and ₹ 1,500 were paid as wages for its installation.
2. A sum of ₹ 10,000 was spent on painting the new factory.
3. ₹ 5,000 paid for the erection of a new machine.
4. ₹ 2,000 were spent on repairs before using a second hand generator purchased recently.
5. ₹ 1,500 were spent on the repair of a machinery.
6. ₹ 10,000 was paid as brokerage on issue of shares and other expenses of issue were ₹ 25,000.

Name and describe the various books of original entrie.

Calculate operating profit from the following:

	₹
Net Profit	5,00,000
Dividend Received	6,000
Loss on sale of Furniture	12,000
Loss by Fire	50,000
Salaries	1,20,000
Interest on Loan from Bank	10,000
Rent Received	24,000
Donation	5,100

Cash sales of a business in a year were ​₹ 85,000, the Cost of Goods Sold (including direct expenses) was ₹ 97,000 and Gross Profit as shown by the Trading Account for the year was ₹ 1,29,000. Calculate Credit Sales during the year.

What is meant by Statement of Affairs?

What is an operating profit?

List the assets in order of permanence:
Sundry Debtors, Stock, Land and Building, Plant and Machinery, Furniture, Investments, Cash in Hand and Cash at Bank.

Computerised Accounting System is the best form of accounting system. Do you agree? Comment.

Illustrate with example the principle for valuation of stock or inventory.