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Read TS Grewal Accountancy Class 11 Solution Chapter 8 Journal 2023 2024. Students should study TS Grewal Solutions Class 11 Accountancy available on Studiestoday.com with solved questions and answers. These chapter-wise answers for Class 11 Accountancy have been prepared by expert teachers of Grade 11. These TS Grewal Class 11 Solutions have been designed as per the latest accountancy TS Grewal Book for Class 11 and if practiced thoroughly can help you to score good marks in standard 11 Accounts class tests and examinations.
TS Grewal Solutions for Chapter 8 Journal Class 11 Accounts have been provided below based on the latest TS Grewal Class 11 book. The answers have been prepared based on the latest 2023 2024 book for the current academic year. TS Grewal Solutions Class 11 will help students to improve their concepts and easily solve accountancy questions for Class 11. Class 11 Grewal solutions should be revised regularly as more practice will help you get a better rank and easily solve more questions.
Answer 1. An account is a record of transaction, both cash and credit under a particular head of account like wages, rent, sales, etc., or a particular head like assets, liability, etc. It only shows the amount of transactions but also shows their effect and direction.
The Natural Personal Accounts like Shyam, Kishan etc., Artifical Personal Account like Hair ltd., Radha Co-operative Society, etc. and Representative Personal Accounts like prepaid rent, outstanding expenses, etc. belongs to persons directly or indirectly. Hence Capital Account belong to persons and is a Personal Account.
Answer 3. Real Accounts are those accounts which relate to tangible or intangible assets of the firm excluding debtors. Examples of tangible assets are land, plant, computer, cash, investments, stock etc. Examples of intangible assets are goodwill, patents, copyrights, trademarks, computer software, etc. The golden rule of debit and credit tells debit what comes in, credit what goes out.
Answer 4. Nominal or Revenue or Expense Accounts are the accounts which relate to losses, expenses, profit, revenue, etc. are termed as Nominal Accounts. The examples of Nominal Accounts are Rent Paid Account, Rent Received Accounts, Sales Account, Purchases Return Account, etc. the net result of all the Nominal Accounts is profit or loss which is transferred to the Capital Account. The golden rule of accounts tells Debit all Expenses and Losses, Credit all Incomes and Gains.
Capital and drawings Accounts look like Representative Personal Accounts like the Outstanding Salary Account represents the amount of salary payable to the employees. Here in the question cash invested and withdrawn by the proprietor of the business is credited and debited to the Capital and Drawings Accounts respectively. Hence Capital and Drawings Accounts look like impersonal accounts but they are always used like personal accounts.
Debit means: Debit refers to the left side of an account. Dr. stands for debit in the abbreviated form. An item recorded in the debit side of an account is said to be debited to the account. Debit may represent either increase or decrease depending upon the nature of an account. The rule of debit depends on the nature of account.
Credit means: Credit refers to the right side of an account. Cr. stands for credit in the abbreviated form. An item recorded in the credit side of an account is said to be credited to the account. Credit may represent either increase or decrease depending upon the nature of an account. The rule of credit depends on the nature of account. No. We don't think 'debit' always stands for decrease in amount and 'credit' for increase.
Accounts which relate to a person or individuals, firms, companies, debtors or creditors, etc., are Personal Accounts. The Natural Personal Accounts like Rakesh, Harish, etc., Artificial Personal Accounts like Rakesh Ltd., Harish Co-operative Society, etc. and Representative Personal Accounts like prepaid rent, outstanding expenses, etc. belongs to persons directly or indirectly. Hence Capital Account belongs to persons and is a Personal Account.
Answer 17. Journal is a book of prime entry or a book of original entry in which transaction are first recorded in a chronological order or sequence they are entered. Journal is called the Book of Original Entry since all transactions are initially recorded in it.
Answer 19. Compound Journal Entry is an entry in which two or more accounts are debited and one or more accounts are credited or vice versa. The following are two examples for compound Journal Entries:
The need for sub-division of Journal is to conveniently maintain a separate book for each class of transaction for recording. Book of this type is called a book of original entry or prime entry - it is a special form of Journal, a sub-division of it. Journal entry is not passed for the transactions recorded in such books. They are posted to the ledger accounts. The system is called the practical system of accounting. The Journal is sub-divided into Cash Book, Purchases Book, Sales Book, Purchases Return Book, Sales Return Book, and Journal Proper.
Answer 22. Trade Discount is allowed by the seller on purchase of goods in large quantity. It is usually by the wholesalers to the retail shop owners who further sell the goods to the consumer. Trade Discount is deducted in the invoice from sale price and is not recorded in the books of account. Sales are recorded at net sales price or sale price less trade discount. GST or CGST, SGST and IGST are levied on the net sale price. Trade discount is allowed on sales, hence it is allowed on both cash and credit sales.
Answer 23. Cash Discount is allowed by the seller to the customers to encourage prompt or early payment. It is allowed as a per cent of invoice value or payment made say @ 5% of invoice value to the buyer. Cash discount is calculated after deducting trade discount from the invoice price. Cash discount is calculated always on net amount. It is allowed at the time of receipt of amount in cash or by cheque. It is an expense for business allowing it and gain for the business availing it. It is recorded in the books of both seller and buyer. Cash discount allowed is debited to ' Discount Allowed Account' by the party receiving the amount and cash discount received is credited to 'Discount Received Account' by the party making the payment. Discount allowed or received is related to payment and thus, they are recorded in the books of account along with the entry recorded for payment and receipt of the amount, in cash or cheque. When cash discount is allowed or received GST or CGST, SGST, IGST is not levied since it is for early payment and not on sale or purchase of goods.
Answer 27. Trade Discount is deducted in the invoice from sale price and is not recorded in the books of account. Sales are recorded at net sales price or sale price less trade discount. GST or CGST, SGST and IGST are levied on the net sale price. Trade discount is allowed on sales, hence it is allowed on both cash and credit sales. It is only recorded in the work sheets but not in the amount columns in the books like Journal and other principle books.
Answer 28. Cash Discount allowed is debited to 'Discount Allowed Account' by the party receiving the amount and cash discount received is credited to 'Discount Received Account' by the party making the payment. Discount allowed or received is related to payment and thus, they are recorded in the books of account along with the entry recorded for payment and receipt of the amount, in cash or cheque. When cash discount is allowed or received GST or CGST, SGST, IGST is not levied since it is for early payment and not on sale or purchase of goods.
Read TS Grewal Accountancy Class 11 Solution Chapter 5 Accounting Equation 2023 2024. Students should study TS Grewal Solutions Class 11 Accountancy available on Studiestoday.com with solved questions and answers. These chapter-wise answers for Class 11 Accountancy have been prepared by expert teachers of Grade 11. These TS Grewal Class 11 Solutions have been designed as per the latest accountancy TS Grewal Book for Class 11 and if practiced thoroughly can help you to score good marks in standard 11 Accounts class tests and examinations.
TS Grewal Solutions for Chapter 5 Accounting Equation Class 11 Accounts have been provided below based on the latest TS Grewal Class 11 book. The answers have been prepared based on the latest 2023 2024 book for the current academic year. TS Grewal Solutions Class 11 will help students to improve their concepts and easily solve accountancy questions for Class 11. Class 11 Grewal solutions should be revised regularly as more practice will help you get a better rank and easily solve more questions.
About this chapter: TS Grewal Accountancy Class 11 Chapter 5 provides details relating to Accounting Equations which are used by various organizations. It is important to understand various accounting equations which are used by organizations to better understand financial statements. It is important for students in Class 11 to understand all the accounting equations as it will help them to gain more marks in exams. Equations should be learned and practiced daily so that they can be really useful in understanding further chapters in this book. This is a very scoring chapter and if the students have practiced all questions given below then they will get higher score in examinations
An Accounting Equation is a mathematical expression which shows that the assets and liabilities of a firm are equal. An Accounting Equation is based on the dual aspect concept of accounting meaning; every transaction has two aspects- debit and credit. It holds that for every debit there is a credit of equal amount and vice versa.
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