Financial Statements - 2 — Account STD 11 Commerce — Question

Arun is a trader. While preparing his final accounts on 31st March. 2018, he made a provision for doubtful debts @ 4% of the sundry debtors amounting to ₹ 42,000. During the year ended 31st March, 2019, doubtful debts amounted to ₹ 3,400. On 31st March, 2019, sundry debtors were ₹ 56,500 and the provision for doubtful debts was maintained at the same rate.
Show the entries to record the above matters in Arun's Ledger Accounts.

Provision for Discount on Debtors is calculated before deducting the Provision for Doubtful Debts from debtors. Comment.

Mention any one difference between fixed asset and current asset.

State with reason whether the following statements are True or False:
Total of the Sales Book is posted to the credit of the Sales Account.

What is meant by incomplete records system of accounting?

Calculate Purchases:

	₹
Cost of Goods Sold	65,000
Stock in the beginning	4,000
Closing Stock	5,000

Manish has paid salaries of ₹ 1,50,000 for the year ended 31st March, 2019. Salaries include ₹ 20,000 paid in advance for the year ending 31st March, 2020. Show how it will be shown in the Profit and Loss Account and the Balance Sheet.

What is a Trading Account?

Give names of two multi-user operating systems.

What is meant by Unearned Income?