Introduction to Accounting — Account STD 11 Commerce — Question

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.

What is the traditional function of Accounting?

What are Fixed Assets?

Distinguish between Cash Basis and Accrual Basis of Accounting. (Two Points)

What is a Cheque?

What are Internal Liabilities?

Indicate how Accounting Equation is affected if payment is made to a creditor?

What is Depreciation?

While preparing Bank Reconciliation Statement from the balance of Cash Book indicate whether the following items will be written in Plus or Minus column.

1. Cheques issued but not yet presented for payment.
2. Cheques paid into the bank but not yet cleared.
3. Dividend collected by the bank on customer's investments.
4. Payment of club fee by the bank according to the standing instructions.
5. Direct payment into the bank by a customer.
6. Any wrong entry on the debit side of the Pass Book.
7. Dishonour of the cheques deposited into the bank.

Name the two Central Taxes that have merged into GST.