Theory Base of Accounting — Account STD 11 Commerce — Question

What is Money Measurement Concept? Which one factor can make it difficult to compare the monetary value of one year with the monetary values of another years?

Following balances were extracted from the books of Rajesh Associates as at 31st March, 2023:Following balances were extracted from the books of Rajesh Associates as at 31st March, 2023:

	( ₹ )		(₹)
Sundry Debtors	4,10,000	Stock (April 1, 2022)	2,30,000
Sundry Creditors	80,000	Premises	12,00,000
Rent and Taxes	48,000	Fixtures & Fittings	3,10,000
Purchases	34,00,000	Bad Debts written off	8,000
Sales	56,00,000	Rent received from sub-let of part of premises	30,000
Trade Expenses	12,000	Loan from Rahul	1,50,000
Returns Outwards	80,000	Interest on Rahul's Loan	15,000
Returns Inwards	1,20,000	Drawings	40,000
Expenses	4,000	Cash in hand	75,000
Motor Vehicles	6,50,000	Stock on 31st March, 2023
Electricity	25,000	(not adjusted)	3,80,000

You are required to prepare the trial balance treating the difference as his capital.

Give rectifying Journal entries for the following errors:

1. Goods returned by Mohan of ₹ 1,500 not recorded in books.
2. Goods distributed as free samples for ₹ 5,000 not recorded.
3. Depreciation of machinery of ₹ 10,000 not charged.
4. Goods costing ₹ 780, selling price ₹ 1,000 given as charity not recorded.

Darshan sold goods for ₹ 40,000 to Varun on 8.1.2017 and drew upon him a bill of exchange payable after two months. Varun accepted the bill and returned the same to Darshan. On the due date the bill was met by Varun. Record the necessary Journal entries in the books of Darshan and Varun in the following circumstances:
When the bill was retained by Darshan till the date of its maturity.
When Darshan immediately discounted the bill @6% p.a. with his bank.
When the bill was endorsed immediately by Darshan in favour of his creditor Suresh.
When three days before its maturity, the bill was sent by Darshan to his bank for collection.

Define Accounting Standards. Who is responsible for issuing Accounting Standards in India?

Give the similarities of Cash Book with Ledger.

If a transaction has the effect of decreasing an asset, is the decrease recorded as a debit or as a credit? If the transaction has the effect of decreasing a liability, is the decrease recorded as a debit or as a credit?

The following transactions took place during the week ended 28th May, 2019. How will you record them in the Petty Cash Book which was maintained with a weekly 'float' of ₹ 3,000?

2019		₹
May 23	Postage	400
May 24	Casual labour	500
May 24	Taxi hire	600
May 26	Note pads and registers	800
May 27	Cartage	200
May 28	​Bus fare​	300

Rectify the following errors:

1. Sales book undercast by ₹ 300.
2. Purchases book undercast by ₹ 400.
3. Return Inwards book undercast by ₹ 200.
4. Return outwards book undercast by ₹ 100.