Cash discount allowed should be debited to discount A/c.

i. (b) Customer A/c ii. (b) Machinery A/c iii. (c) Commission A/c iv. (d) Dena Bank Loan A/c v. (a) Livestock A/c

This statement is False. Correct Statement: If rent is paid to the landlord, the Rent account should be debited. Reasons: Rent paid is an expense and hence it is a nominal...

This statement is True. Reasons: GST is abbreviated from Goods and Service Tax. GST is levied by the government on the purchases of Goods and Services at a specified rate. Since...

Cost of the goods bought = ₹ 10,000 @ 5% GST and 10% cash discount. GST on Goods Purchased = Cost of goods × 5%. = 10,000 × \(\frac{5}{100}\) = ₹ 500. Net value of Goods...

Trade Discount = Catalogue price × Rate of trade discount = 1,00,000 × \(\frac{10}{100}\) = ₹ 10,000  Net amount receivable = Catalogue price – Trade Discount  = 1,00,000 – 10,000  = ₹ 90,000  50% of net amount...

Cash Flow Statement is prepared to determine the cash flows of an enterprise during a specific period from its Operating, Investing and Financing Activities.

(i) Payment of dividend (ii) Cash repayment of amount borrowed.

Net increase in Working Capital implies that more cash is invested in working Capital and thus decreases Cash Flow from Operating Activities.

i. Disagree ii. Disagree iii. Agree iv. Agree v. Disagree

This statement is True. Bank overdraft as per cash book means negative bank balance. The businessman has to pay the Bank. Bank charges are expenses for the business and this increases...