Depreciation, Provisions and Reserves — Account STD 11 Commerce — Question

Give two points of distinction between Original Cost Method and Written Down Value Method of providing depreciation.

1. A had a capital of ₹ 75,000 on 1st April, 2018. He had also goods amounting to ₹ 15,000 which he had purchased on credit and the payment had not been made. Find out the value of the total assets of the business.
2. After a period of one month, he came to know that he had suffered a loss of ₹ 1,700. He withdrew ₹ 800 for his personal use. Find out his capital and assets of the business.

Give two basic purposes of accounting equation.

What is a Journal?

State one situation when Capital Account is Debited and one situation when Capital Account is Credited.

Which principle states that the financial statements should disclose all significant informations?

Roshan purchased from Prem 500 items ₹ 100 each at 20% Trade Discount plus CGST and SGST @ 6% each. He is further given 2% Cash Discount as he made payment for the purchases immediately. Determine the amount that Roshan will debit to Purchases Account.

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

1. Goods destroyed by fire will be recorded in which of the following books?

1. Purchases Books.
2. Sales Book.
3. Journal.

2. Sen sent a Credit Note to Amar on account of goods sold received back. This transaction will be recorded in which of the following books?

1. Sales Books.
2. Sales Return Book.
3. Purchases Return Book.

Give the formula to calculate annual depreciation as per Straight line method”.