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Theory Base of Accounting — Account STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceAccountTheory Base of Accounting3 Marks
Question
What do you mean by Accounting Concepts?
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Answer

Accounting Concepts Accounting Concepts are the basic assumptions or fundamental propositions within which accounting operates. They are generally accepted accounting rules based on which transactions are recorded and financial statements are prepared. It is important to follow the accounting concepts because it enables the users of financial statements to understand them better and in the same manner.

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Following transactions took place in M/s Goodluck Computers. Prepare the Accounting Vouchers
2019
Particular
₹
Jan-1 Bought Computer Mouse (4 Nos.) vide Cash Memo No. 338* 6,000
Jan-8 Wages paid for the month of December, 2018 10,000
Jan-12 Purchased two Desktop Computers from M/s Computech for cash vide Cash Memo No. 170 32,500
Jan-25 Paid cash to Hari & Sons vide receipt No. 102 for repairs 1,000
Jan-28 Paid postage 200
Jan-30 Cash withdrawn from bank 10,000
Transactions marked with * are subject to levy of CGST and SGST @ 6% each.
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What is meant by the cash basis of accounting? Why is the cash basis of accounting not popular as a system of accounting?
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“The role of accounting has changed over the period of time". Explain.
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Explain the meaning of the following term:
Capital.
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Journalise the following:
  1. Purchased goods for ₹ 25,000 for Cash and paid ₹ 200 for carriage on these goods.
  2. Purchased goods for ₹ 40,000 on Credit from Sudhir and paid ₹ 500 for carriage on these goods.
  3. Purchased machinery for ₹ 20,000 and spent ₹ 500 on its carriage and ₹ 300 on its installation.
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  5. Sold $\frac{1}{3}\text{rd}$ of the above goods at a profit of 20% on cost.
  6. Goods costing ₹ 12,000 sold to Mr. X, issued invoice at 25% above cost less 10% trade discount.
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Mukesh found that the Trial Balance did not agree. He found the following errors:
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Bobby opened a consulting firm and completed these transactions during November, 2017:
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  2. Purchased land and a small office building. The land was worth ₹ 1,50,000 and the building worth ₹ 3,50,000. The purchase price was price was paid with ₹ 2,00,000 cash and a long term note payable for ₹ 3,00,000.
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  5. Purchased for ₹ 30,000 additional office equipment on credit.
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  9. Paid supplier created in transaction c.
  10. Purchase new office equipment by paying ₹ 93,000 cash and trading in old equipment with a recorded cost of ₹ 7,000.
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Record the following transaction in the Purchases Book of Modern Furniture House, New Delhi assuming CGST @ 6% and SGST @ 6% and post it into Ledger:
2017
 
Nov. 3
Purchased goods from Sachdeva Furniture Store, New Delhi :
50 Chairs @ ₹ 2,000 each
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Nov. 10
Purchased furniture from Mahadeva & Co., Jaipur (Rajasthan) valued ₹ 2,00,000, less $12\frac{1}{2}\%$ Trade Discount
Nov. 18
Purchased furniture from Fashion Furniture House, Chandigarh of the list price of ₹ 2,50,000, less 15%
Nov. 20
Purchased from India Furniture House, New Delhi:
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Nov. 25
Purchased from Mohan Lal & Sons furniture of the value of ₹ 20,000 for cash
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Pass Journal Entries for the following transactions:
2017
 
Jan. 6
 Sold goods to Muskan of the list price of ₹ 2,00,000 at trade discount of 20%.
Jan. 8
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Jan. 15
 Received from Muskan the full payment under a cash discount of 4%.
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What is a Ledger?
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