Download App

P2 C8 Introduction of Deshi Nama System — Account STD 11 Commerce — Question

Gujarat BoardEnglish MediumSTD 11 CommerceAccountP2 C8 Introduction of Deshi Nama System3 Marks
Question
Explain in brief the methods of calculating profit-loss under Deshi Nama System.
✓

Answer

There are two methods of finding out the profit or loss in Deshi Nama System: $1.$ KharidVakra Khata system and $2.$ Vatav Khata system. $1.$ Kharid-Vakra Khata system: In this method, traders keep a combined Kharid-Vakra Khatu in which purchases (Kharid) are written on the Udhar side and sales (Vakra) are recorded on the Jama side of. the account. Firstly, the trader transfer the opening stock of goods of Kharid-Vakra Khate. Then, Havala for closing stock, incomes- expenses, bad debts, depreciation, rectification of errors are given and after that all Kacha Khata are transferred to Kharid-Vakra Khate and closed. Their posting is done in the Kharid-Vakra Khate. After totalling both the sides of Kharid-Vakra Khatu, the difference is found out. If the total of the Jama side is more, then it is profit and if the total of the Udhar side is more, then it is loss. The Havala for transferring the profit or loss to the Bhandol Khate is made in the Havalamel and by posting this nondh in the Kharid-Vakra Khate, the Kharid-Vakra khata is closed. $2.$ Vatav Khata System: Generally, big traders or traders dealing in more than one commodity prepare a Vatav Khatu to find out the profit or loss. Following two accounts are to be prepared to ascertain the profit or loss under this method: $(I )$ Kharid-Vakra Khatu: In this, the Havala for stock, as well as Havalas to close the accounts relating to the expenses on purchases and to close the accounts relating to the goods are recorded. Thenafter, the result of the Kharid-Vakra Khata is transferred to the Vatav Khate. It means, the profit or loss of Kharid-Vakra Khata is transferred to Vatav Khate. $(ii)$ Vatav-Khatu: Thenafter, the havalas of incomes-expenses, bad debts, rectification of errors, depreciation and Kacha Khata are closed by transferring them to Vatav Khata. The difference of this account, indicates the profit or loss of the business, which is transferred to Bhandol Khate and Vatav Khatu will be closed. If profit is there, Vatav Khatu will be debited and Bhandol Khatu will be credited, and if loss is there, Vatav Khatu will be credited and Bhandol Khatu will be debited.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "Give Answer As Asked . (3 Marks)" from P2 C8 Introduction of Deshi Nama System→P2 C8 Introduction of Deshi Nama System — all question types→Account STD 11 Commerce question papers→Gujarat Board STD 11 Commerce question papers→Gujarat Board question paper generator→

Similar questions

Pass jounral entries for closing the following account:
$(1)$ Dividend received account $Rs.700$
$(2)$ Purchase account $Rs.5,000$
$(3)$ Sales account $Rs. 10,000$
→
Disclose the following balances in the Balance Sheet of Vinayak cricket Club.
Balances of Acconts Amt.
(Rs.)		 Balances of Accounts Amt.
(Rs.)
Match Fund $70,000$ Interest on match fund investment $4,000$
Investments of Match fund $35,000$ Donation received for match fund $16,000$
Prize distribution to match winners $5,700$ Permanent fund $1,05,000$
Match Expense $8,250$ Investments of Permanent fund $1,05,000$

 
→
Define promissory note and state its characteristics.
→
Make classification of account type for the following:
(Stationery expense account, Brokerage received account, Frenchise account, Mumbai University account, Jagdishbhai's account, Excell Company's share account, Calico Mill's account ,Factory building account, Rent received account, Wages account, Prepaid insurance premium account, Repairing expense account)
→
There are $150$ members of Mirazapur Gymkhana Club; every member pays annual subscription of $₹ 400.$ During the year $2013-14, 20$ members have paid subscription for $2014-15.$ Subscription outstanding for $2013-14$ was $₹ 12,000. ₹ 45,000$ received for current year. Prepare Income — Expenditure Account for the year ending $31-3-2015.$
→
State the sources of capital reserve.
→
Explain the concept of Accrual with example.
→
Write Journal Entry for the following transactions in the books of Shashank
$1$ Paid $Rs.500$ for refreshment at inaugural function of shop.
$2$ Purchased necessary books of accounts of $Rs.400$ for business.
$3$ Paid $Rs.200$ for wages and $Rs.100$ for carriage.
→
From the following transaction, prepare subsidiary books with $GST$ effect at $18 \%$ in the books of Manan Stores of Mehsana and post them in the ledger. The amount of $GST$ is not included in following transactions. Prepare subsidiary books by adding applicable amount of $GST.$
$2019$
July $11$ Sold goods of $₹ 32,000$ to Dipakbhai of Dahod at $10 \%$ trade discount. Railway freight of $₹ 1200$ and wages of $₹ 600.$
$13$ Sold goods of $₹ 28,000$ to Amarsinh of Chandigarh (Punjab) at $20 \%$ trade discount. Railway freight of $₹ 2000$ and wages of ₹ $800.$
$18$ Amarsinh returned goods of $₹ 10,000$. Railway freight of $900$ and wages of $₹ 400$ are given credit.
→
Write journal entry for transaction and explain its accounting treatment of individual transaction as per equation method :
Introduced additional capital of $₹ 1,00,000.$
→