Recording of Transactions - 1 — Account STD 11 Commerce — Question

Give two characteristics of accounting principles.

Which of the following transactions are of financial character and will be recorded in the books?

1. Credit purchase of goods.
2. Strike by employees.
3. Goods worth ₹ 20,000 taken from the business and given by the proprietor to his friend as gift.
4. Withdrawing of money by proprietor from business for personal use.
5. Interviewing the candidates for employment.
6. Sale of household furniture for ₹ 10,000.
7. Payment of school fees of proprietor's son from proprietor's personal bank Account.
8. Make promise to send the goods.
9. Receiving an order to send the goods.
10. Loss of goods by fire.
11. Value of human resources.

Miss Priti. an electronic goods dealer, gifted a washing machine valued ₹ 325,000 to her friend Suruchi. Will it be recorded in the books of accounts?

X Ltd. purchased a plant for ₹ 7,80,000 and spent ₹ 60,000 on its installation. Its scrap value is ₹ 42,000 and useful life 10 years. What will be the rate of depreciation as per straight line method?

Which of the following is not a foreign bill?

1. A bill drawn in India, on a person resident outside India and made payable outside India.
2. A bill drawn outside India, on a person resident outside India.
3. A bill drawn outside India, made payable in India.
4. A bill drawn on a person resident in India, made payable in India.

How an Accounting Voucher is prepared?

Bieflly state the rules of debiting and crediting accounts classified on the basis of Accounting Equation.

Name the method of depreciation which assumes that the asset is depreciated more in the earlier years and less in the later years of its life.

Give an example of a transaction which has effect on two items on the assets side.

If total assets of a business are ₹ 1,30,000 and capital is ₹ 80,000, calculate creditors.