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

What is the basic accounting equation?

What is owner's equity? Give an equation for calculating owner's equity. Give two examples at least.

The accountant of the firm found an error in the books of accounts but neither he rectified the error nor disclosed it to the management fearing that it will risk his job. Which value has been violated by the accountant?

Interest Account is credited in the books of drawee at the time of renewal of a bill. Do you agree?

Give two examples of Nominal Accounts.

Harpreet has entered into agreement whereby he will earn ₹ 10 lakhs for the services to be provided in the next year. The income should be recognised as revenue in the next year after services have been provided.

Sale is recognised on the basis of Cash Memo or Invoice.

What are Assets?

Where will you transfer profit on sale of a fixed asset?

What is Cash Discount?