Introduction to Accounting — Account STD 11 Commerce — Question

Rajan who trades in electronic goods, gifted a television to his daughter. Will it be recorded in the books of account?

‘Accounting information should be verifiable and free from personal Bias’. Name the qualitative characteristic of accounting information denoted by this statement.

What is book value or written down value of a fixed asset?

How is Trade Discount recorded in the books of account?

What is meant by Reserves?

Vikas's Cash Book showed an overdrawn Cash Book balance of ₹ 20,200 on 31st March, 2019. He received a bank statement showing an overdrawn balance of ₹ 20,310 on 31st March, 2019. The reason for the difference is that bank charged ₹ 310 and allowed interest ₹ 200 has not been recorded in the Cash Book. What entries should Vikas pass to update his Cash Book?

What is meant by Posting?

“Capital expenditure is different from Revenue Expenditure." Explain by giving suitable examples.

What is Trade Discount?

Prepare a bank reconciliation statement, taking imaginary figures, starting with the credit balance as per Cash Book.