Class 11 Accountancy - Chapter Recording of Transactions - 1 NCERT Solutions | Accounting equation remains intact under
Accounting equation remains intact under all circumstances. Justify the statement with the help of an example.
According to the dual-aspect concept, every transaction simultaneously, has two effects of equal amount, i.e. debit and credit. However, in any case, the equality of total assets with the total claims of business (sum of capital and liabilities) is not disturbed. This equality is algebraically represented as:
Asset = Total Claims
or
Asset = Liabilities + Capital
or, Liabilities = Asset − Capital
or, Capital = Assets − Liabilities
In any circumstance the above equation cannot be changed. For example,
More Questions From Class 11 Accountancy - Chapter Recording of Transactions - 1
- Q:-
Differentiate between source documents and vouchers.
- Q:-
What is a journal? Give a specimen of journal showing at least five entries.
- Q:-
Voucher is prepared from:
(i) Documentary evidence
(ii) Journal entry
(iii) Ledger account
(iv) All of the above - Q:-
A purchase of machine for cash should be debited to:
(i) Cash account
(ii) Machine account
(iii) Purchase account
(iv) None of these - Q:-
The journal entry to record the sale of services on credit should include:
(a) Debit to debtors and credit to capital.
(b) Debit to cash and Credit to debtors.
(c) Debit to fees income and Credit to debtors.
(d) Debit to debtors and Credit to fees income. - Q:-
Select Right Answer:
Voucher is prepared for:
(i) Cash received and paid
(ii) Cash/Credit sales
(iii) Cash/Credit purchase
(iv) All of the above - Q:-
Should a transaction be first recorded in a journal or ledger? Why?
- Q:-
Cash withdrawn by the Proprietor should be credited to:
(i) Drawings account
(ii) Capital account
(iii) Profit and loss account
(iv) Cash account - Q:-
What entry (debit or credit) would you make to:
(a) increase revenue
(b) decrease in expense,
(c) record drawings
(d) record the fresh capital introduced by the owner. - Q:-
Choose the Correct Answer :
The ledger folio column of journal is used to:
(a) Record the date on which amount posted to a ledger account.
(b) Record the number of ledger account to which information is posted.
(c) Record the number of amounts posted to the ledger account.
(d) Record the page number of the ledger account.
Popular Questions of Class 11 Accountancy
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Name any two types of commonly used negotiable instruments.
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Briefly state how the cash book is both journal and a ledger.
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State the meaning of a trial balance?
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Recently Viewed Questions of Class 11 Accountancy
- Q:-
Mr. Sunrise started a business for buying and selling of stationery with ₹ 5,00,000 as an initial investment. Of which he paid ₹ 1,00,000 for furniture, ₹ 2,00,000 for buying stationery items. He employed a sales person and clerk. At the end of the month he paid ₹ 5,000 as their salaries. Out of the stationery bought he sold some stationery for ₹ 1,50,000 for cash and some other stationery for ₹ 1,00,000 on credit basis to Mr. Ravi. Subsequently, he bought stationery items of ₹ 1,50,000 from Mr. Peace. In the first week of next month there was a fire accident and he lost ₹ 30,000 worth of stationery. A part of the machinery, which cost ₹ 40,000, was sold for ₹ 45,000.
From the above, answer the following :
1. What is the amount of capital with which Mr. Sunrise started business?
2. What are the fixed assets he bought?
3. What is the value of the goods purchased?
4. Who is the creditor and state the amount payable to him?
5. What are the expenses?
6. What is the gain he earned?
7. What is the loss he incurred?
8. Who is the debtor? What is the amount receivable from him?
9. What is the total amount of expenses and losses incurred?
10. Determine if the following are assets, liabilities, revenues, expenses or none of the these: sales, debtors, creditors, salary to manager, discount to debtors, drawings by the owner. - Q:-
The role of accounting has changed over the period of time- Do you agree? Explain.
- Q:-
What is ‘Depreciation’?
- Q:-
What is difference between trade discount and cash discount?
- Q:-
Balancing of account means :
(i) Total of debit side
(ii) Total of credit side
(iii) Difference in total of debit & credit
(iv) None of these - Q:-
Briefly state how the cash book is both journal and a ledger.
- Q:-
Briefly explain the term ‘favourable balance as per cash book’.
- Q:-
What are adjusting entries? Why are they necessary for preparing final accounts?
- Q:-
State the causes of difference occurred due to time lag.
- Q:-
Why is it necessary to record the adjusting entries in the preparation of final accounts?
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