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Question No 01 Chapter No 1
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1. State whether the following are business transaction?
| (a) | Jasbir Singh Started business with stock Rs 40,000 and Furniture RS 10,000. |
| (b) | Received an order for the sale of the goods Rs 30,000. |
| (c) | Goods sold for Rs 25,000 on credit. |
| (d) | Interest paid on loan taken for business Rs 1,000. |
| (e) | Paid tuition fees of the proprietor’s daughter from the personal bank account Rs 1,800. |
| (f) | Paid rent of the residence of the proprietor from the business bank account Rs 2,000. |
| (g) | Proprietor planned to sell goods worth Rs 5,00,000 next year. |
| (h) | The commission received Rs 700. |
| (i) | Goods returned by customer Rs 1,000. |
The solution of Question No 01 Chapter No 1: –
| (a) | Yes, because starting a business with an investment of the stock and furniture is a business transaction. |
| (b) | No, because it is receipt of order only. Until the order is executed, it does not amount to a business transaction |
| (c) | Yes, because the sale has taken place. It is immaterial whether is on credit or for cash. |
| (d) | Yes, because the loan is taken for the business. Hence, the payment of interest is a business transaction. |
| (e) | No, because neither it is a business expense nor it is paid from the business bank account |
| (f) | Yes, because the payment is made from the bank account of the business though it is for personal purposes. |
| (g) | No, because it is only planning for the sale. The sale is yet to take place in future. Hence, it is not a business transaction |
| (h) | Yes, because business income in the form of the commission is earned. Moreover, cash in the hand of the business is also increased. Hence, it is a business transaction |
| (i) | Yes, because goods are returned by a customer of the business. The stock will increase and the amount from the debtor of the business will be an increase |
Financial Accounting – Introduction and its Functions
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Also, Check out the solved question of all Chapters: –
Usha Publication – Elements of Book-Keeping PSEB (Class 11) – Solution
Chapter No. 2 – Theory Base of Accounting
Chapter No. 3 – Origin of Transactions
Chapter No. 4 – Vouchers and transactions
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Chapter No. 6 – Accounting for Goods and Services Tax(GST)
Chapter No. 9 – Other Subsidiary Books
Chapter No. 10 – Journal Proper
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Chapter No. 11 – Trial Balance
Chapter No. 12 – Bank Reconciliation Statement
Chapter No. 14 – Provisions and Reserves
Chapter No. 15 – Bills of Exchange
Chapter No. 16 – Rectification of Errors
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Chapter No. 17 – Financial Statements – (Without Adjustments)
Chapter No. 18 – Financial Statements – (With Adjustments)