Theory Base of Accounting — Account STD 11 Commerce — Question

What is meant by owner's capital?

Write two points of distinction between bills of exchange and promissory note.

M/s Kalra Bros., a dealer in computer hardware, has received an order for 10 computers along with an advance of ₹ 50,000. The firm maintains its accounts on Accrual Basis of Accounting. Should the amount received, i.e., ₹ 50,000 be credited to the Sales Account or to the Advance Received Account? Give reasons for your answer.

Why is a Compensating Error not disclosed by the Trial Balance?

What are Vouchers?

What are the limitations of Accounting? (Any Two)

Give two merits of providing depreciation by Original Cost Method.

What is Liability Account?

Differentiate between reserve and provision on the basis of charge or appropriation.

What are Current Liabilities?