Bank Reconciliation Statement — Account STD 11 Commerce — Question

What do you mean by Suspense Account?

Capical contributed by the proprietor is credited to his Capital Account.

Is Capital Account a Personal or Real Account and why?

Give an example of decrease in an asset and decrease in a liability.

Ravi purchased on credit goods for ₹ 5,00,000 Less 20% Trade Discount. As per the terms, he can deduct 4% Cash Discount if he pays the full amount within 15 days. What amount he will have to pay to avail the Cash Discount?

How do we ascertain the financial position of the business?

A company lost vital machinery in an accident on 2nd March, 2019 which will have adverse impact on its production capacity. As a result, it is likely to loose business to its competitors. The company has not disclosed this fact in its annual report for the year ended 31st March, 2019. Do you think it is complying with the Convention of Full Disclosure?

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?

What is meant by a Journal?

Ashok purchased goods from Delhi Traders for ₹ 2,00,000. As per the, if Ashok made full payment within 21 days, he will get cash discount at 2.5%. Ashok paid ₹ 1,50,000 within the stipulated time. How much discount will he get?