This page contains the Tips for Accounting Equation, Journalizing and Posting. These tips will be helpful to you while solving the numerical questions on Accounting Equation, Journalizing and Posting. You can find the questions/answers/solutions for the chapter 1 of CBSE class 11 accountancy in this page. So is the case if you are looking for CBSE class 11 Commerce related topic Introduction to Accounting
This page contains tips for solving accounting equation, journalising and posting numerical questions. If you are looking for answers to the theoretical questions or solutions to accounting equation numerical questions or solutions to journalizing numerical questions or solutions to posting numerical questions, you can find them at
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The following tips will be of help when solving the problems related to accounting equation, journalising and posting solutions.
1.
When the word Cash is present in the transaction, then consider that the transaction is cash based. Even if the buyer or seller name is provided, consider it as cash based transaction (when the word cash is present in the transaction).
2.
When the word cash is not present and neither buyer nor seller name is present, consider that it is cash based transaction (even though the word cash is not present)
3.
When the buyer or seller name is present (and the word cash is not present), consider it as a credit transaction.
4.
When the word credit is present, obviously it is a credit transaction.
5.
Unless otherwise specified, all the payments and receipts are considered to be done in cash.
6.
Remember that Purchases are revenue expenses. And Purchases are not assets
7.
When the goods are withdrawn by the owner (drawing of goods), they’re drawn from the stock, if present. If the stock is not present, consider that they’re drawn from purchases.
8.
Purchase of furniture is not an expense. It is capital expenditure. So, furniture is an asset. However, if the business deals in furniture and that furniture is purchased for selling it later, consider it as a revenue expense (same as purchase of goods).
9.
Purchase of stationery is not an asset. It is an expense. However, if the business deals in stationery and that stationery is purchased for selling it later, it is considered as revenue expense (same as purchase of goods)