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

M/s. Auto Help, Delhi purchased 500 pieces of motor cycle horns at ₹ 100 each plusIGST @ 12% from M/s G.S., Auto, Ghaziabad, (UP). Trade terms settled were: Trade Discount will be allowed @ 10% and Cash Discount @ 5% if payment is made within 7 days. M/s. Auto Help made the payment after 30 days. Determine the amount of Trade Discount and Cash Discount.

Calculate total assets if:
Capital is ₹ 2,00,000; Creditors ₹ 50,000; Revenue during the year ₹ 5,00,000; and Expenses during the year ₹ 4,00,000.

Give two advantages of a Journal.

What is income?

What are the limitations of Accounting? (Any Two)

Write one distinction between bill of exchange and promissory note.

Name the accounts to be credited along with the amount for payment to Ajay of ₹ 4,800 by cheque in full settlement of ₹ 5,000.

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

1. Insurance premium paid by the bank.
2. Interest and dividend collected by the bank.
3. Payment of ‘Bills Payable' by the bank on behalf of the customer.
4. Interest allowed by the bank.
5. Cheques deposited into the bank but not yet cleared.

A credit balance always signifies a balance in the Liabilities Account. Is it correct?

Cash Book balance was ₹ 1,790 (Dr.) when compared with the Bank Statement, unpresented cheques were ₹ 1,040 and deposits but not credited were ₹ 820. What was the balance in the Bank Statement?