Depreciation, Provisions and Reserves — Account STD 11 Commerce — Question

Rent is paid for the month of April, 2019 in March, 2019. The accounting year ended on 31st March, 2019. The accountant has shown it on the assets side of the Balance Sheet. Has he given the correct treatment? Give reasons.

Give two examples of Intangible Assets.

If the cheque is not presented for the payment up to the date of the preparation of the Bank Reconciliation Statement then the balance as per pass book will be ________.

1. Higher than the balance shown by the cash book by the amount of unpresented cheque.
2. Same as shown by the cash book.
3. Twice the balance shown by the cash book.
4. Lower than the balance shown by the cash book by the amount of unpresented cheque.

Name the branch of commerce, which keeps a record of monetary transactions in a set of books.

What are the two basic objectives of having Accounting Standards?

Ravi purchased on credit goods for ₹ 5,00,000 Less 20% Trade Discount. As per the terms, he can deduct 4% Cash Discount if he pays the full amount within 15 days. What amount he will have to pay to avail the Cash Discount?

R Ltd. purchased 500 Sq. Metre Land for ₹ 1.5 crore to build a factory. At the end of year, the market value of land was ₹ 1.35 crore. R Ltd. treated ₹ 15 Lakh as loss and recorded the land at ₹ 1.35 crore. Is it a correct treatment?

Does cash basis of accounting violates GAAP? If Yes, how?

M/s. Auto Help, Delhi purchased 500 pieces of motor cycle horns at ₹ 100 each plusIGST @ 12% from M/s G.S., Auto, Ghaziabad, (UP). Trade terms settled were: Trade Discount will be allowed @ 10% and Cash Discount @ 5% if payment is made within 7 days. M/s. Auto Help made the payment after 30 days. Determine the amount of Trade Discount and Cash Discount.

Give one example each of 'provision' and 'reserve'.