Journal — Account STD 11 Commerce — Question

While preparing Bank Reconciliation Statement from the debit balance of the Pass Book indicate whether the following items will be written in Plus or Minus Column.

1. Insurance premium paid by the bank.
2. Interest and dividend collected by the bank.
3. Payment of ‘Bills Payable' by the bank on behalf of the customer.
4. Interest allowed by the bank.
5. Cheques deposited into the bank but not yet cleared.

State the accounts which are not considered while preparing Trial Balance.

Rent is paid by cheque. Which account will be credited and why?

What is meant by Written Down Value Method of providing Depreciation?

Promissory Note is prepared by the Debtor and its payment is also made by him. Do you agree?

Increase in an Asset Account is recorded on its debit side. Give reason.

Name any two types of commonly used negotiable instruments.

Which of the following equations are correct?

1. Assets = Capital + Liabilities
2. Assets = Capital - Liabilities
3. Assets = Liabilities - Capital
4. Capital = Assets - Liabilities
5. Capital = Assets + Liabilities
6. Liabilities = Capital + Assets
7. Liabilities = Capital - Assets
8. Liabilities = Assets - Capital

A bill for ₹ 75,000 is discounted with the bank for ₹ 72,000. The bill is dishonoured at maturity. The drawee pays 40% in full settlement. What is the arnount of Bad Debts?

Explain the meaning of Accounting.