Theory Base of Accounting — Account STD 11 Commerce — Question

Distinguish between expenses and losses.

Give two merits of providing depreciation by Original Cost Method.

Explain the following terms with example:

1. Sales.
2. Cost.

Under which principle the calibre or quality of the management is not disclosed in the balance sheet?

Which column in a Journal is not filled at the time of Journalising?

What does credit in an Asset Account signify?

Is Journal a book of original entry?

Name the external user of accounting information from whom the firm purchases goods on credit.

X Ltd. purchased a plant for ₹ 7,80,000 and spent ₹ 60,000 on its installation. Its scrap value is ₹ 42,000 and useful life 10 years. What will be the rate of depreciation as per straight line method?

Classify the following as capital expenditure. revenue expenditure and deferred revenue expenditure for a cloth merchant?

1. Preliminary Expenses
2. Purchase of Furniture
3. Payment of Salary
4. Expenses paid for construction of building.