Financial Statements – With Adjustments — Account STD 11 Commerce — Question

Which of these errors would be disclosed by the Trial Balance and why:

1. Cheque of ₹ 9,500 from Vikas entered in Vikas's Account as ₹ 5,900.
2. Selling expenses have been debited to Sales Account.
3. Credit sales of ₹ 3,000 entered in both the accounts as ₹ 300.
4. A purchase of ₹ 2,500 was omitted entirely from the books?

What is tailor made software?

State any two advantages of incomplete records.

What is the purpose of preparing a Provision for the Doubtful Debts Account?

Arun is a trader. While preparing his final accounts on 31st March. 2018, he made a provision for doubtful debts @ 4% of the sundry debtors amounting to ₹ 42,000. During the year ended 31st March, 2019, doubtful debts amounted to ₹ 3,400. On 31st March, 2019, sundry debtors were ₹ 56,500 and the provision for doubtful debts was maintained at the same rate.
Show the entries to record the above matters in Arun's Ledger Accounts.

‘T' form presentation of financial statements is known as 'Horizontal form' or ‘Vertical form'?

Give two examples of each of Fixed Assets and Current Assets.

A Manager is entitled to a commission of 10% on net profit before charging the commission. Net profit before charging the commission is ₹ 1,00,000. Find the commission payable to the Manager.

Define a Sales Book.

Calculate the amount of Sales' when purchases amount to ₹ 6,00,000; Gross Profit ₹ 1,30,000 and Net Profit ₹ 40,000.