Bill of Exchange — Account STD 11 Commerce — Question

Why is it necessary for accounts to assume that a business entity will remain a going concern?

Goods sold on credit to Ramesh-Ramesh's A/c is debited and Sales A/c is credited.

Give two examples of Nominal Accounts.

Who is a Debtor?

The position of a businessman on 30th June 1994 was as follows :
Cash ₹ 5,000; Debtors ₹ 20,000; Machinery ₹ 60,000; Stock ₹ 25,000; Capital ₹ 75,000. Calculate his liabilities.

What entry is passed for withdrawing of goods by the proprietor for personal use?

A firm has received a large order to supply goods. Will it be recorded in the books of account of the firm? Give reason.

Define Voucher.

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

Give a specimen of an account.