Question No 01 Chapter No 1 – USHA Publication 11 Class

Question No 01 Chapter No 1

Question No 01 Chapter No 1

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. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Origin of Transactions

Chapter No. 4 – Vouchers and transactions

Chapter No. 5 – Journal

Chapter No. 6 – Accounting for Goods and Services Tax(GST)

Chapter No. 7 – Ledger

Chapter No. 8 – Cash Book

Chapter No. 9 – Other Subsidiary Books

Chapter No. 10 – Journal Proper

Chapter No. 11 – Trial Balance

Chapter No. 12 – Bank Reconciliation Statement

Chapter No. 13 – Depreciation

Chapter No. 14 – Provisions and Reserves 

Chapter No. 15 – Bills of Exchange

Chapter No. 16 – Rectification of Errors 

Chapter No. 17 – Financial Statements – (Without Adjustments)

Chapter No. 18 – Financial Statements – (With Adjustments)

 

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