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11th | Accounting Procedures Rules Of Debit And Credit | Question No. 5 To 8 | Ts Grewal Solution 2022-2023

Question 5:


On which side will the decrease in the following accounts be recorded? Also, state the nature of the account:

(i) Cash

(ii) Bank Overdraft

(iii) Outstanding Salary paid

(iv) Outstanding Rent

(v) Prepaid Insurance

(vi) Mohan, Proprietor of the business 

Answer:


Name of Accounts

Consequence of decrease

Modern Approach

Traditional Approach

(i)

Cash

Credit

Assets

Real Account

(ii)

Bank Overdraft

Debit

Liability

Personal Account

(iii)

Outstanding Salary Paid

Debit

Liability

Personal Account

(iv)

Outstanding Rent

Debit

Liability

Personal Account

(v)

Prepaid Insurance

Credit

Asset

Personal Account

(vi)

Mohan, proprietor of the business

Debit

Capital

Real Account

Question 6: Whether an account will be debited or credited to record


(i)                 Increase in revenue

(ii)               Decrease in expenses

(iii)             Drawings

(iv)             The fresh capital introduced by the owner.

Answer:


(i) Increase in revenue 

Treatment: An account will be credited

(ii) Decrease in expenses

Treatment: An account will be debited

(iii) Drawings

Treatment: An account will be debited

(iv) The fresh capital introduced by the owner.

Treatment: An account will be credited

 

Question 7:


From the following transactions, state the nature of account and state which account will be debited and which account credited:

 

 

`

(i)

Manu started business with cash

1,00,000

(ii)

He purchased furniture for business

20,000

(iii)

Purchase goods on credit from Anshul

6,000

(iv) 

Paid to his creditor, Anshul

2,000

(v)

Paid salary to his clerk

1,000

(vi)

Paid rent

500

(vii)

Received interest

200

 

Answer:


Transactions

Nature of Account

Manu started business with cash

Cash A/c- Debit Capital A/c- Credit

He purchased furniture for business

Furniture A/c- Debit Cash A/c- Credit

Purchased goods on credit from Anshul

Purchases A/c- Debit Creditor A/c- Credit

Paid to his creditor, Anshul

Creditor A/c- Debit Cash A/c- Credit

Paid salary to his clerk

Salary A/c- Debit Cash A/c- Credit

Paid rent

Rent A/c- Debit Cash A/c- Credit

Received interest

Cash A/c- Debit Interest A/c- Credit

Question 8:


Open a 'T' shape account for machinery and put the following transactions on the proper side:

 

 

`

(i)

 Machinery purchased

40,000

(ii)

 Machinery sold

10,000

(iii)

 Machinery purchased

8,000

(iv)

 Machinery discarded

14,000

(v)

 Depreciation on machinery

1,000

 

 

 

Answer:


Machinery(Asset) Account

Dr.

 

Cr.

Date

Particulars

 (`)

Particulars

 (`)

 

Bank (Purchased)

40,000

Bank (Sale)

10,000

 

Bank (Purchased)

8,000

Bank (Discarded)

14,000

 

 

 

Depreciation

1,000

 

 

 

Balance c/d

23,000

 

 

48,000

 

48,000

 

 

 

 

 

 

Click below for more Questions

Ts Grewal Solution 2022-2023

Class 11th

Chapter 6 – Accounting Procedures- Rules of Debit and Credit

Question No. 1 To 4
Question No. 5 To 8
Question No. 9 To 12
Question No. 13 And 14

 

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11th TS Grewal’s Accountancy Solutions

Ts Grewal Solution 2022-2023

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