Download App

Recording of Transactions - 2 — Account STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceAccountRecording of Transactions - 23 Marks
Question
What is Cash Discount?
✓

Answer

Cash Discount is a discount allowed by the seller of goods to encourage prompt or early payment. The usual method to encourage payment within the specific time, the seller allows cash discount say @ 2% of invoice value to the buyer. Cash discount is calculated after deducting trade discount from the invoice price. In other words, cash discount is calculated always on net amount.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "3 Marks Question" from Recording of Transactions - 2→Recording of Transactions - 2 — all question types→Account STD 11 Commerce question papers→CBSE Board STD 11 Commerce question papers→CBSE Board question paper generator→

Similar questions

Explain the following:
Matching Concept.
→
What is meant by Cash Basis of Accounting? Give two disadvantages of Cash Basis of Accounting.
→
State whether the following expenditure are Capital, Revenue or Deferred Revenue. Give reasons:
  1. Furniture of the book value of ₹ 10,000 were sold off at ₹ 2,500 and new furniture of the value of ₹ 6,000 were acquired, cartage on purchase ₹ 50.
  2. Property purchased for ₹ 20,00,000 and ₹ 1,50,000 paid for its registration and legal fee.
  3. Replacement of old machine by a new one.
  4. Damages paid by a transport company to its passengers injured in an accident.
  5. Erection of shed for parking of vehicles at a cost of ₹ 10 Lac.
→
Open 'T' shape account of our creditor 'Raghubir' and write the following transactions on the proper side:
  1. Purchased goods from Raghubir on credit for ₹ 50,000.
  2. Returned goods to Raghubir for ₹ 5,000.
  3. Paid to Raghubir ₹ 30,000.
  4. Purchased goods from Raghubir on credit for ₹ 16,000.
  5. Paid to Raghubir ₹ 20,000.
→
What is a Petty Cash Book?
→
Rohit has the following transactions:
a.
Commenced business with cash
₹ 1,50.000
b.
Purchased machinery on credit
₹ 40,000
c.
Purchased goods for cash
₹ 20,500
d.
Purchased car for personal use
₹ 80,000
e.
Paid to creditors in full settlement
₹ 38,000
f.
Sold goods for cash costing ₹ 5,000
₹ 4,500
g.
Paid rent
₹ 1,000
h.
Commission received in advance
₹ 2,000
(Ans: Assets = Cash ₹ 17,500 + Machine ₹ 40,000 + Goods ₹ 15,000 = ₹ 72,500; Liabilities = Commission ₹ 2,000 + Capital ₹ 70,500 = ₹ 72,500)
→
Mohit has the following transactions, prepare accounting equation:
a.
Business started with cash
₹ 1,75,000
b.
Purchased goods from Rohit
₹ 50,000
c.
Sales goods on credit to Manish (Costing ₹ 17,500)
₹ 20,000
d.
Purchased furniture for office use
₹ 10,000
e.
Cash paid to Rohit in full settlement
₹ 48,500
f.
Cash received from Manish
₹ 20,000
g.
Rent paid
₹ 1,000
h.
Cash withdrew for personal use
₹ 3,000
(Ans: Cash ₹ 1,32,500 + Goods ₹ 32,500 + Furniture ₹ 10,000 = ₹ 1,75,000; Liabilition = Capital ₹ 1,75,000)
→
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.
  4. Purchased goods from Anil for ₹ 15,000.
  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.
  7. Provide 20% depreciation on furniture costing ₹ 10,000.
  8. Gave as charity−Cash ₹ 500 and Goods ₹ 2,000.
→
How is Cash Discount recorded in the books of account?
→
What is an Account?
→