Bill of Exchange — Account STD 11 Commerce — Question

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 total assets of a business are ₹ 1,30,000 and net worth is ₹ 80,000, calculate the creditors.
[Hint: Net Worth = Assets - Liabilities]

What is going concern concept?

Financial statements of the firm are prepared every year on 31st March.

What is Compound Journal Entry? Give an example.

State with reasons that Capital and Drawings Accounts look like impersonal accounts but they are always used like personal accounts.

Mr. Vishwanath established a Travel Agency. Over the years the Travel Agency earned high reputation. Mr. Vishwanath considers the value of goodwill of his Travel Agency at ₹ 50 lac. He wants to record the value of the goodwill in the books of accounts. Can he do so?

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.

Give two examples of Nominal Accounts.

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