Theory Base of Accounting — Account STD 11 Commerce — Question

Name the various entries which have to be passed through a Journal even though we might have kept all the subsidiary books in the business.

Prepare an Accounting Equation from the following:

1. Started business with cash ₹ 1,00,000.
2. Purchased goods for cash ₹ 20,000 and on credit ₹ 30,000.
3. Sold goods for cash costing ₹ 10,000 and on credit costing ₹ 15,000 both at a profit of 20%

Why are the rules of debit and credit same for both liability and capital?

What is the difference between trade discounts and cash discounts?

State reasons for the following:
Contra entries in the Two-Column Cash Book are not posted into the Ledger.

Asha sold goods worth ₹ 19,000 to Nisha on March 2, 2016. ₹ 4,000 were paid by Nisha immediately and for the balance she accepted a bill of exchange drawn upon her by Asha payable after three months. Asha discounted the bill immediately with her bank @ 10% p.a. On the due date Nisha dishonoured the bill and the bank paid ₹ 30 as noting charges.
On 5th June, Nisha paid ₹ 3,030 (including noting charges) in cash and accepted a new bill at one month for the amount due to Asha together with interest @ 15% p.a. Record the necessary journal entries in the books of Asha and Nisha.

What is meant by 'Retiring a bill under rebate'?

A Company has been charging depreciation @ 10% p.a. on original cost method. It now wants to change the method from original cost to diminishing balance method, the rate of depreciation being 15% p.a. Can it do so?

Define a Promissory Note. What are the features of a Promissory Note?

Why should a business follow the consistency principle?