Recording of Transactions - 1 — Account STD 11 Commerce — Question

What is the rule of recording transactions in Nominal Accounts?

“In case of a long term asset, repair and maintenance expenses are expected to rise in later years than in earlier year”. Which method is suitable for charging depreciation if the managernent does not want to increase burden on Profit & Loss Account on account of depreciation and repair.

Explain the meaning of posting of journal entries?

Gurpreet purchased 1,000sq. yards land to build a factory and paid ₹ 15 lakhs towards its cost including registration charges. At the end of the financial year, the value of the land came down to ₹ 13 lakhs. Gurpreet recorded the land at ₹ 13 lakhs and bocked a loss of ₹ 2 lakhs. Is he correct in treating the fall in value as a loss?

The accountant of the firm found an error in the books of accounts but neither he rectified the error nor disclosed it to the management fearing that it will risk his job. Which value has been violated by the accountant?

Is reserve a charge against profit or an appropriation of profit?

What entry is passed when cheques received from the customers are not sent to bank on the same day.

What are the two basic objectives of having Accounting Standards?

Give two examples of Representative Personal Accounts.

Capital Reserve may or may not involve any receipts of cash. Do you agree?