Depreciation — Account STD 11 Commerce — Question

Give two examples of Capital Expenditure.

Why are drawings added to Closing Capital in a statement of profit or loss?

What is meant by incomplete records system of accounting?

What are the factors involved in providing Depreciation?

Which method of Depreciation assumes that an asset should be depreciated more in the earlier years and less in the later years of use?

If debit side of a Trading Account is bigger, does it mean the enterprise has earned profit or incurred a loss? Why?

What is meant by Grouping or Marshalling a Balance Sheet?
OR
What is meant by Marshalling of Assets and Liabilities?

OR
What is meant by Marshalling?

Modern Ltd. sold goods for ₹ 60,000 to Mr. Ashok at a profit of 20% on sale. These goods are still in the godown of Modern Ltd. at the buyer's risk at the close of financial year. What treatment will be made for these goods by Modern Ltd.

Give the adjustment entry and the treatment in Final Accounts of the following:

1. Accrued Income.
2. Unearned Income.

Provision for discount on debtors is made before making provision for doubtful debts. Do you agree?