Accounting Procedures Rules of Debit and Credit — Account STD 11 Commerce — Question

What will be the effect of the following on the Accounting Equation.

1. Purchased goods for ₹ 20,000 from Mahesh on Credit.
2. Sold goods to Suresh costing ₹ 8,000 for ₹ 10,000 in cash.
3. Paid Wages ₹ 500.
4. Withdrew in cash for private use ₹ 2,000.
5. Paid to creditors ₹ 5,000

Name any two users of accounting information.

“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.

What is a bank reconciliation statement?

If the Capital of a business is ₹ 1,20,000 and Outside liabilities are ₹ 20,000, calculate total assets of the business.

What is a Debit Note?

If the Capital is ₹ 2,60,000 and Assets are ₹ 5,00,000, what is the amount of Liabilities?

In which Column (Plus or Minus) you will write the following while preparing Bank Reconciliation Statement from the Cash Book overdraft balance?

1. Cheques drawn but not cleared.
2. Interest on bank overdraft.
3. Cheques paid into the bank but not collected.
4. Interest on investments collected by the bank.

GSC Co. purchased goods from Mohan & Co. for ₹ 50,000 plus CGST and SGST @ 6% each. As per the terms, if GSC Co. made full payment to Mohan & Co. within 15 days it will get Cash Discount of 2%. GSC Co. paid ₹ 28,000 within the stipulated time. Determine the amount of Cash Discount that GSC Co. will get.

What is Depreciable Cost?