Theory Base of Accounting — Account STD 11 Commerce — Question

What are the two sides of an account called?

Explain the meaning of posting of journal entries?

In case of errors of partial omission, will the Trial Balance agree? Why?

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

Goods costing ₹ 10,000 have been sold for cash at 25% profit. How will the transaction be shown in the Accounting Equation?

''Accounting Equation (A = L + C) always holds good under all circumstances''. Explain with the help of two examples.

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.

Do you agree that Depreciation is a permanent, continuing and gradual reduction in the book value of a fixed asset?

What is meant by a rectifying entry?

Give one example each of 'provision' and 'reserve'.