Recording of Transactions - 1 — Account STD 11 Commerce — Question

What is the meaning of Ledger?

What do you understand by Days of Grace?
OR
How many Days of Grace are added to the period of Bills of Exchange?

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?

“When a Sales Book is maintained, there is no need to open Sales Account in the Ledger”. Do you agree?

What is an Income?

Differentiate betwen Cash Basis of accounting and Accrual Basis of accounting on the basis of timing of recording of an income.

Vikas's Cash Book showed an overdrawn Cash Book balance of ₹ 20,200 on 31st March, 2019. He received a bank statement showing an overdrawn balance of ₹ 20,310 on 31st March, 2019. The reason for the difference is that bank charged ₹ 310 and allowed interest ₹ 200 has not been recorded in the Cash Book. What entries should Vikas pass to update his Cash Book?

What are errors of Commission?

An enterprise prepares its accounts under the accrual basis. Salaries arıounting to ₹ 10,000 for the month of March, 2019 were not paid. The owner did not want to account it in the books of account on the ground that the amount was not paid. The ente: prise closes its books of account on 31st March every year. Is he correct?

Trial Balance facilitates the preparation of Final Accounts. Is it correct? Give reason.