Theory Base of Accounting — Account STD 11 Commerce — Question

Increase in a Liability Account is recorded on its credit side. Give reason.

What is an Account?

While preparing Bank Reconciliation Statement from the debit balance of the Pass Book indicate whether the following items will be written in Plus or Minus Column.

1. Insurance premium paid by the bank.
2. Interest and dividend collected by the bank.
3. Payment of ‘Bills Payable' by the bank on behalf of the customer.
4. Interest allowed by the bank.
5. Cheques deposited into the bank but not yet cleared.

Give the performa of a Bills Payable Book.

What is meant by Error of Principle?

When an account is said to have a credit balance?

What is meant by Credit Transaction?

Distinguish between Loss and Expense.

What is an accounting equation?

What will be the effect on Trial Balance if a purchase return of ₹ 5,000 has been wrongly posted to the debit of Sales Return Account but correctly entered in the Customer's Account?