Special Purpose Books 2 Cash Book — Account STD 11 Commerce — Question

Calculate the value of Closing Stock from the following particulars:

State with reasons whether the following are Capital or Revenue Expenses:

1. Excise duty paid on purchase of new machine.
2. Wages paid to install a machine.
3. Repairs carried out on existing car.
4. Office block of building repainted for ₹ 50,000.
5. Paid telephone bill ₹ 2,500.

Mukesh found that the Trial Balance did not agree. He found the following errors:

1. In the Sales Book for the month of January, total of Page No. 3 was carried forward to Page No. 4 as ₹ 1,000 instead of ₹ 1,200 and total of Page No. 7 was carried forward to Page No. 8 as ₹ 5,600 instead of ₹ 5,000.
2. Goods returned to Anshuka ₹ 10,000 were recorded in the Sales Book.
3. Bill Receivable for ₹ 800 from Riya was dishonoured and posted to the debit of Allowances Account.

Define a Promissory Note.

If Depreciation reduces profits and value of fixed assets and thus, the capital of the owner, why do businesses charge Depreciation?

Books maintained by the Single Entry System are not as reliable as they are when maintained following the Double Entry System. Comment.

Find out the amount of bills matured during the year on the basis of information given below:

	₹
Bills payable dishonoured,	37,000
Closing balance of Bills payable,	85,000
Opening balance of Bills payable,	70,000
Bills payable accepted,	90,000
Cheque dishonoured,	23,000

What is Binary System?

Goods costing ₹ 26,000 were sent to a customer at 20% profit on sale on sale or return basis. Customer returned goods of the selling price of ₹ 7,000. At what amount the remaining goods with the costomer will be shown in the Balance Sheet?

Name and describe the various books of original entrie.