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When noting charges are paid finally the amount will be recovered from Drawee.

Pocket Allowance(R.) 

(X) 

15

20

30

22

25

18

40

50

55

65

\(\sum X = 340\)

\(\overline X = \frac{\sum X}N= \frac{X_1 + X_2 + ....+ X_{10}}{10} = \frac{340}{10} = 34\)

Average pocket allowance of the 10 students = Rs. 34.

Disadvantages of computerized accounting are as follows: 

• Extremely high cost is involved in developing, introducing and using the system. 
• Special training for personal is required. 
• There is dependence on machines. 
• There is an inability to check unanticipated errors. 
• There are ill-effects on health. 

Correct answer is (a) Dishonoured

Honouring of discounted bill - No entry in the book of drawer.

Gross income = Net sales – Cost of goods sold

= Rs. 9,800 – Rs. 6,700 

= Rs. 3100

Working Notes :

a. Cost of goods sold = Opening stock + Net purchases + wages + freight – Closing stock

= Rs. 1,000 + Rs. 5,900 + Rs. 700 + Rs. 300 – Rs. 1,200 

=  Rs. 6,700

b. Net sales = Sales – Sales Returns

= Rs.10,000 – Rs. 200

= Rs. 9,800

c. Net Purchases = Purchase – Purchase returns

= Rs. 6,000 – Rs. 100

= Rs. 5,900 

It is always beneficial to avail the benefits of nomination facility/ survivorship clause provided to locker-hirers. The major advantage of availing these facilities is that in the event of unfortunate death of one of the joint locker-hirer, the right of access to the contents of the locker does not automatically devolve on the surviving joint locker-hirer/ nominee (s), unless there is a survivorship clause/ nomination

According to American Institute of certified Public Accountants, “Accounting is the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are in part, at least, of a financial character and interpreting the results thereof.”

1. Profit: The excess of revenues of a period over its related expenses during an accounting year is profit. Profit increases the investment of the owners.

2. Gain: A profit that arises from events or transactions which are incidental to business such as sale of fixed assets, winning a court case, receipt of interest and dividend, etc. Gain is irregular in nature. Gains are part of capital receipt. Gains are also known as “non-operating income.”

Rebate is allowed When bill is honoured before due date.

• Rahim – Debtor
• Raju – Creditor 

Capital expenditure represents the amount spent for the acquisition of assets, the benefit from which is derived over a period that extends beyond the accounting year. It is long term in nature. 

Examples: Furniture purchased, Land Purchased, Building purchased, etc.

Bill of exchanges is called Hundi in Indian language.

The following are the important objectives of accounting.

1.Keeping of records of business transactions.

2. Ascertainment of Profit or Loss.

3. Ascertainment of financial position of business enterprises.

4. Providing meaningful information to different groups of people having interest in the business.

1. Keeping of records of business transaction:

The main purpose of accounting is to identify business transactions of financial nature and enter into appropriate books of accounts. The accounting records should be made properly and systematically, so that requisite information may be obtained at a glance.

2. Ascertainment of Profit or Loss:

The result of business (Profit or Loss) is available from the statement prepared for ascertaining it, called the Profit and Loss Account.

3. Ascertainment of financial position:

At the end of an‘ accounting year, a position statement known as the ‘Balance Sheet’ is prepared. The value of assets and liabilities are depicted in the Balance Sheet. The Balance sheet gives a true and fair view of the state of affairs of the concern.

4. Providing meaningful information to different groups of people having interest in the business:

Accounting records provide meaningful information to different groups of people having interest in the business.

Accounting is the language of the business:

The performance of business in terms of profit or losses is conveyed to users of accounting information in a systematic manner. The financial position of the business concerned is revealed through accounting information.

Services provided by the depository are: 

• Opening of depository system 

• Dematerialisation of Equity Shares, Debt Instruments, Government Securities & Mutual Fund units 

• Re-dematerialisation 

• Settlement of trades in dematerialised securities 

• Account transfer

Making payment of the bill of exchange before the due date is called Retiring of the bill

Events can be anything, some events can be expressed in monetary terms while others are not. Only those events which can be expressed in money, terms are business transactions. Transaction is an event or economic activity of a businessman in his business having exchange of money or money’s worth. While events is part of the business transaction.

1. Revenue:

These are the amounts earned by a business concern through sale of its products or providing services to customers. The common items of revenues are sales, commission received, rent received, interest received, etc.

2. Expenses:

The amount spent in the process of earning revenue is termed as expenses. Examples are Wages, Salaries, rent, Interest paid, electricity charges, etc.

All claims against the business are called Equity.

4^th April 2017

The transaction is one wherein payment or receipt of money is postponed for a future date is called Credit transaction.

Information in financial reports is based on Economic transaction.

1. Capital Expenditure:

• Machinery Purchase
• Purchased building

2. Revenue Expenditure:

• Rent paid
• Interest
• paid Amount for repair of building

The person to whom payment of the bill is to be made is known as Payee.

Correct answer is (c) Sundry creditors, all others are long term liabilities.

The person to whom the amount mentioned in the promissory note is payable is known as Promisee.

A person who endorse the promissory note in favour of another is known as Endorser.

Bill of exchange is drawn on the Debtor/Drawee.

Correct answer is (b) Capital Expenditure.

(b) Obtained a loan of Rs. 1,00,000 from Bank of India. Loan is taken meant for business. So it is a business transaction.

In a promissory note, the person who makes the promise to pay is called Promissor.

Correct answer is (a) Understandability.

An amount of Rs. 1,08,000 will be given to his executors as his share of profits till the date of death.

Answer:1,08,000.

Solution: 4,00,000/2000000×180000= 3,60,000.

Then, 3,60,000× shares of tex, i.e, 3/10= 1,08,000 ✓

Correct answer is (c) Promissory Note

Correct answer is (c) Advertisers

(a) Dissolution of Partnership

(b) Profit and loss Appropriation account.

a) Assertion is correct but Reason is wrong. 

b) Both A and R are true and R is not the correct explanation of A 

Answer: (d) Rs. 2,000

c) Both assertion and reason are wrong. 

(d) Interest on Partner’s capital.

Correct option is c) Both assertion and reason are wrong

Correct option is b) Both A and R are true and R is not the correct explanation of A

Correct option is c) Assertion (A) is true and Reason (R) is false.

Correct option is c) Both assertion and reason are correct.