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

Which transactions will:

1. Decrease the Assets and Decrease the Capital.
2. Increase the Assets and Increase the Liabilities.
3. Increase the Assets and Decrease another Asset.
4. Decrease the Assets and Decrease the Liabilities.

What is the rule for an Asset Account?

Give one example of error of Commission.

Roshan purchased from Prem 500 items ₹ 100 each at 20% Trade Discount plus CGST and SGST @ 6% each. He is further given 2% Cash Discount as he made payment for the purchases immediately. Determine the amount that Roshan will debit to Purchases Account.

What is the rule for Revenue or Income Account?

What is Cash Discount?

A transaction is recorded in wrong book of original entry with wrong amount, will it affect the Trial Balance? Give reason.

In which Column (Plus or Minus) you will write the following while preparing Bank Reconciliation Statement from the Cash Book overdraft balance.

1. Cheques deposited but dishonoured.
2. The receipt side of Cash book overcast.
3. Interest on overdraft.
4. Direct amount deposited by the customer into bank.

Profit: earned by the business means an increase in the proprietor's capital. Is it correct?

Explain the meaning of the following term:
Goods.