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

What is meant by Error of Partial Omission?

If the Capital is ₹ 2,60,000 and Assets are ₹ 5,00,000, what is the amount of Liabilities?

Differentiate between Assets and Goods on the basis of any two points.

Ashok purchased goods from Delhi Traders for ₹ 2,00,000. As per the, if Ashok made full payment within 21 days, he will get cash discount at 2.5%. Ashok paid ₹ 1,50,000 within the stipulated time. How much discount will he get?

1. A had a capital of ₹ 75,000 on 1st April, 2018. He had also goods amounting to ₹ 15,000 which he had purchased on credit and the payment had not been made. Find out the value of the total assets of the business.
2. After a period of one month, he came to know that he had suffered a loss of ₹ 1,700. He withdrew ₹ 800 for his personal use. Find out his capital and assets of the business.

A Bill of Exchange drawn on 1st July, 2018 for ₹ 5,900 for 3 months was dishonoured on due date and a sum of ₹ 20 was incurred as noting charges. The bill was renewed for another 3 months with 12% interest per annum. Find out the amount of the renewed bill.

State two transactions which may be recorded in Cash Book but not in Pass Book.

Capital Reserve may or may not involve any receipts of cash. Do you agree?

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.

Cash column in the Cash Book cannot have a negative balance, i.e., payments cannot be more than cash balance in hand. Why?