Theory Base of Accounting — Account STD 11 Commerce — Question

On 31st March, 2019. Bank Account in the books of Ramesh shows a credit balance of ₹ 36,000. On the same date, outstanding cheques amounted to ₹ 14,000 and outstanding deposits a mounted to ₹ 20,000. A cheque for ₹ 5,000 received from a debtor, was subsequently dishonoured. The receipt had been correctly recorded but no entry has yet been made in the books for the dishonour. On the basis of the above information, determine the balance as per the Bank Statement.

Why Cash Book is called a book of original entry?

What is an Account?

Why sit necessary for accountants to assume that a business entity will remain a going concen?

The realisation concept determines when goods sent on credit to customers are to be included in the sales figure for the purpose of computing the profit or loss for the accounting period. Which of the following tends to be used in practice to determine when to include a transaction in the sales figure for the period. When the goods have been:

1. Dispatched
2. Invoiced
3. Delivered
4. Paid for

Give reasons for your answer.

Prove that accounting equation is satisfied in all the following cases:

1. Commenced business with cash ₹ 50,000.
2. Paid rent ₹ 4,000 including ₹ 1,000 as advance.
3. Bought goods for cash ₹ 30,000 and on credit ₹ 20,000.
4. Sold the goods bought on credit for ₹ 25,000.
5. Purchased furniture worth ₹ 10,000 for office use and for ₹ 5,000 for domestic use.

Journalise the following transactions:
i. Goods destroyed by fire for Rs 4,500
ii. Paid Rs 1,500 in cash as wages on the installation of machinery
iii. Issue a cheque in favour of M/s. Parmatma Saran & Sons on accounts of purchase of goods Rs 7,500
iv. Goods sold costing Rs 6,000 of M/s. Kalu sons at an invoice price of 10% above cost less 5% Trade Discount.

Trial Balance is a link between ledger and final accounts.

A sold goods to B for ₹ 20,000 plus CGST and SGST @ 9% each on credit 3 months. B paid A ₹ 3,600 by cheque and accepted a draft for the balance amount. The draft was endorsed in favour of C, who got the payment on maturity.
Give Journal entries in the books of A.

Why fixed assets are not shown in the books at market value?