Accounting Standards and International Financial Reporting Standards (IFRS) — Account STD 11 Commerce — Question

Name the steps followed in accounting process.

Why assets are classified into current and non-current?

What is the difference between trade discounts and cash discounts?

State the three fundamental steps in the accounting process.

Briefly explain your understanding of IFRS.

On 31st December, 2014 the Cash Book of Basu showed an overdraft of ₹ 18,000 with the Bank of India. The balance did not agree with balance as shown by the Bank Pass Book and you find that Basu had paid into the Bank on 26th December four cheques for ₹ 10,000; ₹ 12,000; ₹ 6,000 and ₹ 8,000. Of these the cheque for ₹ 6,000 was credited by the bank in January, 2015. Basu had issued on 24th December three cheques for ₹ 15,000, ₹ 12,000, and ₹ 7,000. The first two cheques were presented to the bank for payment in December and the third in January, 2015.
You also find that on 31st December, 2014, the bank had debited Basu's Account for ₹ 500 for interest and ₹ 20 for charges but Basu has not recorded these amounts in his books.
You are required to prepare a Bank Reconciliation Statement as on 31st December, 2014 and ascertain the balance as per bank Pass Book.

Give rectifying entries for the following:

1. A credit sales of goods to Ram ₹ 2,500 has been wrongly passed through the 'Purchases Book'.
2. A credit purchase of goods from Shyam amounting to ₹ 1,000 has been wrongly passed through the 'Sales Book'.
3. A return of goods worth ₹ 1,100 to Mohan was passed through the 'Sales Return Book'.
4. A return of goods worth ₹ 500 by Ganesh were entered in 'Purchases Return Book'.

Explain how the following transactions would be recorded in a Cash Book with Cash and Bank Columns?
Dishonour of cheques deposited into Bank.

Give four advantages of Straight Line Method of providing depreciation.

Give one difference between General Reserve and Specific Reserve.