Depreciation, Provisions and Reserves — Account STD 11 Commerce — Question

On 1st Jan., 2015, Mr. Vadera was appointed as Marketing Manager of the firm with a salary of ₹ 50,000 per month. State whether this event will be recorded in the books of accounts.

On 1st April, 2015, Grand Ltd. purchased a machinery for ₹ 3,00,000 and incurred ₹ 21,000 towards freight and insurance, ₹ 3,000 towards carriage inwards and ₹ 6,000 towards installation charges. It has estimated that the machinery will have a scrap value of ₹ 30,000 at the end of the useful life which is four years. What will be the annual depreciation and the value of machinery after four years according to the Straight Line Method? Ignore GST.

Give an example of one sided error.

What are Internal Liabilities?

Explain of the following accounting convention:
Materiality.

What will be the effect of the following on the Accounting Equation.

1. Purchased goods for ₹ 20,000 from Mahesh on Credit.
2. Sold goods to Suresh costing ₹ 8,000 for ₹ 10,000 in cash.
3. Paid Wages ₹ 500.
4. Withdrew in cash for private use ₹ 2,000.
5. Paid to creditors ₹ 5,000

M/s. Auto Aid, Delhi purchased 500 pieces of car horns @ ₹ 200 each less 10% Trade Discount plus IGST @ 12% from M/s Auto Horns, Chandigarh. What is the invoice value?

Proprietor of the business is treated as creditor to the extent of his capital under which Concept?

Which balance of the bank column in the Cash Book signifies bank overdraft?

From the following information find the capital of Vijay: Total Assets 5,00,000; Creditors ₹ 1,00,000; Loan from Bank ₹ 1,50,000.