Theory Base of Accounting — Account STD 11 Commerce — Question

Explain and give example of the following accounting term:
Drawings.

“When a Sales Book is maintained, there is no need to open Sales Account in the Ledger”. Do you agree?

The accountant of the firm found an error in the books of accounts but neither he rectified the error nor disclosed it to the management fearing that it will risk his job. Which value has been violated by the accountant?

State the meaning of capital expenditure and revenue expenditure. What is the difference between them?

What are the main classes of Liabilities?

R Ltd. purchased 500 Sq. Metre Land for ₹ 1.5 crore to build a factory. At the end of year, the market value of land was ₹ 1.35 crore. R Ltd. treated ₹ 15 Lakh as loss and recorded the land at ₹ 1.35 crore. Is it a correct treatment?

Rent is paid for the month of April, 2019 in March, 2019. The accounting year ended on 31st March, 2019. The accountant has shown it on the assets side of the Balance Sheet. Has he given the correct treatment? Give reasons.

GSC Co. purchased goods from Mohan & Co. for ₹ 50,000 plus CGST and SGST @ 6% each. As per the terms, if GSC Co. made full payment to Mohan & Co. within 15 days it will get Cash Discount of 2%. GSC Co. paid ₹ 28,000 within the stipulated time. Determine the amount of Cash Discount that GSC Co. will get.

Which basis of accounting is recognised under the Companies Act, 2013.

If total assets of the business are ₹ 4,50,000 and outside liabilities are ₹ 2,00,000, calculate owner's equity.