Accounting Equation — Account STD 11 Commerce — Question

Give an example of a transaction which has effect on two items on the assets side.

Name two errors which cannot be disclosed by preparing a Trial Balance.

Give one advantage of Ledger.

A bill of ₹ 5,000 is discounted with the bank for ₹ 4,750. The bill is dishonoured on maturity. The drawee pays 60% of his acceptance. What is the amount of Bad Debts?

Bank column of cash book showed bank balance of Rs.8750. While reconciling the bank balance it was noticed that bank column of cash book was undercast by Rs.90, bank draft charges of Rs.50 and Telephone charges of Rs.550 paid by the bank directly as per standing instruction were not accounted for in the Cash book. Find the adjusted balance of cash as per cash book.

1. 9000
2. 8240
3. 8600
4. 8890

Explain the Discounting a Bill of Exchange.

Calculate total assets if:
Capital is ₹ 2,00,000; Creditors ₹ 50,000; Revenue during the year ₹ 5,00,000; and Expenses during the year ₹ 4,00,000.

What is residual or Scrap value of an asset?

Closing Stock is valued at lower of cost or market value.

Wages paid to a worker for making additions to machinery amounting to 5,000 were debited to the Wages Account. Identify the type of error.