Download App

Theory Base of Accounting — Account STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceAccountTheory Base of Accounting3 Marks
Question
Identify the values involved in the assumption of going concern.
✓

Answer

  1. It is because of this concept that a distinction is made between capital expenditure and revenue expenditure.
  2. It is because of this concept that full cost of an asset is not treated as an expense in the year of purchase itself and the cost is spread over the useful life of the asset by charging depreciation on a suitable basis.
  3. It is because of this concept that outside parties purchase shares and debentures of the enterprise.

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 "3 Marks Question" from Theory Base of Accounting→Theory Base of Accounting — all question types→Account STD 11 Commerce question papers→CBSE Board STD 11 Commerce question papers→CBSE Board question paper generator→

Similar questions

How does the matching concept apply to depreciation?
→
Mohit has the following transactions, prepare accounting equation:
a.
Business started with cash
₹ 1,75,000
b.
Purchased goods from Rohit
₹ 50,000
c.
Sales goods on credit to Manish (Costing ₹ 17,500)
₹ 20,000
d.
Purchased furniture for office use
₹ 10,000
e.
Cash paid to Rohit in full settlement
₹ 48,500
f.
Cash received from Manish
₹ 20,000
g.
Rent paid
₹ 1,000
h.
Cash withdrew for personal use
₹ 3,000
(Ans: Cash ₹ 1,32,500 + Goods ₹ 32,500 + Furniture ₹ 10,000 = ₹ 1,75,000; Liabilition = Capital ₹ 1,75,000)
→
Distinguish between Provision and Reserve on the following basis:
  1. Basic Nature.
  2. Purpose.
  3. Effect on Taxable Profits.
  4. Presentation in Balance Sheet.
  5. Element of Compulsion.
  6. Use for payment of dividend.
→
Differentiate between source documents and vouchers.
→
Define Accounting Standards. Explain its any two objectives.
→
On Feb. 6, 2017 A sold goods for ₹ 1,00,000 to B. B paid 40% immediately on which Aallowed a cash discount of ₹ 500. For the balance A drew a bill on B payable after 30 days. Due date of bill was a public holiday and the bill was met as per the provisions of Negotiable Instrument Act. Journalise the above transactions in the books of A and B.
→
Mohan Singh draws a bill on Jagat for ₹ 1,000 payable 2 months after date. Immediately after its acceptance, Mohan Singh sends the bill to his bank for collection. On due date, bank gets the payment. Make the entries in the books of all the parties.
→
State with reasons whether the following are capital or revenue expenditures:
  1. A new machine is purchased for ₹ 60,000, ₹ 800 were spent on its carriage and ₹ 1,500 were paid as wages for its installation.
  2. A sum of ₹ 10,000 was spent on painting the new factory.
  3. ₹ 5,000 paid for the erection of a new machine.
  4. ₹ 2,000 were spent on repairs before using a second hand generator purchased recently.
  5. ₹ 1,500 were spent on the repair of a machinery.
  6. ₹ 10,000 was paid as brokerage on issue of shares and other expenses of issue were ₹ 25,000.
→
Briefly explain the term ‘favourable balance as per cash book’
→
What is the difference between trade discounts and cash discounts?
→