Basic Accounting Terms — Account STD 11 Commerce — Question

What does credit in an Asset Account signify?

Is the basic objective of Book Keeping to maintain systematic records or to ascertain net results of operations of financial transactions?

What is an account?

Mr. Vishwanath established a Travel Agency. Over the years the Travel Agency earned high reputation. Mr. Vishwanath considers the value of goodwill of his Travel Agency at ₹ 50 lac. He wants to record the value of the goodwill in the books of accounts. Can he do so?

Give transaction that:
Decrease an asset and decrease capital.

A bill for ₹ 40,000 was discounted by Ganesh with Axis Bank for ₹ 8,500. At maturity, the bill was dishonoured and bank notified it for ₹ 600. How much amount Axis Bank will deduct from the bank balance of Ganesh at the time of dishonour?

Distinguish between Bill of Exchange and Promissory Note on the basis of acceptance.

State the accounts which are not considered while preparing Trial Balance.

Prepare an imaginary specimen of a bill of exchange.

What will be the effect on Trial Balance if ₹ 5,000 received as rent and correctly entered in the cash book are not posted to Rent Account?