Rectification of Errors — Account STD 11 Commerce — Question

Under which accounting concept asset is recorded at cost, even if the market price is more or less?

A Bill of Exchange for ₹ 3,000 drawn on 1st June, 2018 and payable after 3 months was discounted with a bank at 10% p.a. but was dishonoured on due date and 8 were paid as noting charges. What was the amount claimed by the bank from the Drawer?

On 1st April, 2015, Grand Ltd. purchased a machinery for ₹ 3,00,000 and incurred ₹ 21,000 towards freight and insurance, ₹ 3,000 towards carriage inwards and ₹ 6,000 towards installation charges. It has estimated that the machinery will have a scrap value of ₹ 30,000 at the end of the useful life which is four years. What will be the annual depreciation and the value of machinery after four years according to the Straight Line Method? Ignore GST.

In which basis of accounting Outstanding expenses are not recorded?

What entry is passed for withdrawing of goods by the proprietor for personal use?

A company lost vital machinery in an accident on 2nd March, 2019 which will have adverse impact on its production capacity. As a result, it is likely to loose business to its competitors. The company has not disclosed this fact in its annual report for the year ended 31st March, 2019. Do you think it is complying with the Convention of Full Disclosure?

What is meant by Reserves?

Define Voucher.

What is the nature of the balance in the Petty Cash Book?

Prove that, “Accounting Equation holds good under all circumstances." Give atleast two illustrations.