Financial Statements - 2 — Account STD 11 Commerce — Question

Give an example of capital expenditure treated as revenue expenditure.

Mention any one difference between fixed asset and current asset.

What is meant by Grouping or Marshalling a Balance Sheet?
OR
What is meant by Marshalling of Assets and Liabilities?

OR
What is meant by Marshalling?

“Profit and Loss Account is a point statement whereas a Balance Sheet is a period statement.” Do you agree?

Classify the following as capital expenditure, revenue expenditure and deferred revenue expenditure for a cloth merchant:

1. Preliminary Expenses.
2. Purchase of Furniture.
3. Payment of Salary.
4. Expenses paid for Construction of Building.

Calculate the amount of Total Purchases from the following information:
Opening Creditors ₹ 30,000; Closing Creditors ₹ 50,000; Cash paid to Creditors during the year ₹ 60,000; Cash Purchases ₹ 20,000.

“Profit and Loss Account is a point statement whereas a Balance Sheet is a period statement.” Do you agree?

What is the adjustment entry passed for provision for discount on Debtors?

Goods were sold to Jogi for ₹ 4,000 and to Yogi for ₹ 3,000. The transactions were recorded properly in the Sales Book, but ₹ 3,000 was posted to Jogi, while ₹ 4,000 was posted to Yogi. Identify the type of error.

What is meant by Bad Debts?