Introduction to Accounting — Account STD 11 Commerce — Question

When do you credit a Liability Account? what will you do to reduce the balance of any Laibility Account? Explain with an example.

Distinguish between Bill of Exchange and Promissory Note on the basis of acceptance.

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

1. Cheques issued but not yet presented for payment.
2. Cheques paid into the bank but not yet cleared.
3. Dividend collected by the bank on customer's investments.
4. Payment of club fee by the bank according to the standing instructions.
5. Direct payment into the bank by a customer.
6. Any wrong entry on the debit side of the Pass Book.
7. Dishonour of the cheques deposited into the bank.

A cheque ₹ 250 have been recorded twice in the pass book. Will they be recorded in the amended cash book?

What is the difference between Straight Line Method and Diminishing Balance Method of charging Depreciation? (Any two)

Name the method of depreciation which assumes that the asset is depreciated more in the earlier years and less in the later years of its life.

Give one point of distinction between Purchases Book and Purchases Account.

Who are the internal users of accounting information?

What is an Income?