Theory Base of Accounting — Account STD 11 Commerce — Question

Prepare a debit voucher for furniture purchased for ₹ 60,000 from Globe Furniture Mart on 02-01-2017.

From the following information, prepare an Analytical Petty Cash Book:

2019		₹
April 1	Received for cash payment	20,000
April 2	Paid for postage	1,600
April 5	Paid for stationery	1,000
April 8	Paid for advertisement	2,000
April 12	Paid for wages	800
April 16	Paid for carriage	600
April 20	Paid for conveyance	880
April 25	Paid for travelling expenses	3,200
April 27	Paid for postage	480
April 28	Paid for office cleaning	400
April 29	Paid for courier	800
April 30	Sent registered notice to landlord	190

Briefly appreciate the exact nature of accounting.

What is the difference between Book Keeping and Accounting?

Name four errors which cannot be disclosed by preparing a Trial Balance.

Y purchased goods for ₹ 6,000 on 1st June, 2011 from X and on the same date accepted a bill payable after three months. 3 days later, X endorsed the bill to Z. On maturity, the bill was dishonoured for non-payment and Z had to pay ₹ 50 as noting charges. Two days after the dishonour of bill, Y paid ₹ 2,000 to X and requested him to draw a second bill for the balance plus ₹ 90 for the amount of interest, payable after two months. X accepted the proposal and draws the bill on Y, which was accepted by Y and was duly met on maturity. Pass Journal entries for the above transactions in the books of X.

Distinguish between Trade Discount and Cash Discount.

Explain the following terms:

1. Revenue.
2. Trade Payables.
3. Fictitious Assets.
4. Working Capital.

Working Capital = Current Assets - Current Liabilities.

“Capital is a liability for the business." Explain this statement with the principle applied.

Mr. Gopal started business for buying and selling of readymade garments with ₹ 8,00,000 as an initial investment. Out of this he paid ₹ 4,00,000 for the purchase of garments and ₹ 50,000 for furniture and ₹ 50,000 for computers and the remaining amount was deposited into the bank. He sold some of the ladies and kids garments for ₹ 3,00,000 for cash and some garments for ₹ 1,50,000 on credit to Mr. Rajesh.
Subsequently, he bought men's garments of ₹ 2,00,000 from Mr. Satish. In the first week of the next month, a fire broke out in his office and stock of garments worth ₹ 1,00,000 was destroyed. Later on, some garments which cost ₹ 1,20,000 were sold for ₹ 1,30,000. Expenses paid during the same period were ₹ 15,000. Mr. Gopal withdrew ₹ 20,000 from business for his domestic use.
From the above, answer the following:

1. What is the amount of capital with which Mr. Gopal started the business?
2. What fixed assets did he buy?
3. What is the value of the goods purchased?
4. Who is the creditor and state the amount payable to him?
5. Who is the debtor and what is the amount receivable from him?
6. What is the total amount of expenses?
7. What is the amount of drawings of Mr. Gopal?