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Credit utilization is the second most important factor in credit scoring, after making on-time payments. �� This site is using cookies under cookie policy. On Feb. 02, 2015, Verma purchased from Sharma goods for ₹ 17,500. Sundry Debtors: Vijay Rs. Ans: Assets = 32,500 + 18,000 + 18,000 = Rs 68,500 Liabilities = NIL If your offers are accepted, make sure you send payment to each creditor by the date they give you. (a) A had a capital of ₹ 75,000 on 1st April, 2017. The solution for this question is as follows: S. No. Here the gap of Rs. [b] Creditors were Rs 16,000. As this is a payment the entry would be recorded in the cash payments journal (CPJ). The Creditors were paid Rs. 4 0 obj 3 0 obj ... (less Rs. Prepare a Statement of Affairs and Deficiency Account. 5,000 for cash less 20% trade discount and 5% cash discount.January 4 Received Rs. Insider payments. [c] Creditors were Rs 90,000. It’s possible that none of your creditors will accept a full and final settlement. 17,500; Capital Rs. [Keep a proof of closing this account, say banker stamps on the second copy of the lettr or send it by registered A.D] 1, 00,000; Secured Creditors and Workmen’s due were Rs. Show the effect of the following transactions on the Accounting Equation: (iid Payment made to creditors in full settlement 17,500 (iv) Purchase of machinery for cash 20,000 (0) Depreciation on machinery + 2,000. a)Started business with cash Rs 70,000 b)Purchased goods on credit Rs 18,000 c)Purchased machinery Rs 20,000 d)Payment made to creditors in full settlement Rs 17,500. e)Depreciation on machinery Rs 2,000 please explain this sum. CBSL is empowered by the Payment and Settlement Systems (PSS) Act to regulate and supervise payment, clearing and settlement systems, prescribing policies and setting standards for regulating and supervising all the payment and settlemen… A account listed as \"paid in full\" means you paid off the entire amount due on a loan. (l) Received Rs 19,000 payment from the client created in transaction (k). paid off in one payment at the end of four years. They accepted Buildings valued Rs 1,20,000 and paid cash to the firm Rs 30,000. (iii) Payment made to creditors in full settlement Rs 17,500. %PDF-1.7 (ii) Purchased goods for cash Rs 20,000 and on credit Rs 30,000. Prepare an accounting equation on the basis of the following transactions: 1) Started business with Rs. (4) All the solutions of Accounting Equation - Accountancy explained in detail by experts to help students prepare for their CBSE exams. (ii) Credit Purchase of goods Rs.18,000. (iv) Purchase of machinery for cash Rs 20,000. Payment made to Creditors in full Settlement Rs. 2,000.Credit Balances on January 1, 2008:Sundry Creditors: Anand Rs. 49,000.14. Central Bank of Sri Lanka (CBSL) has been the driving force in the development of national payment and settlement systems in the country. (k) Completed services of a client for Rs 26,000. �j_Ƃո��XH\с�K��?���n�� �QPz�~��IM�� The lender would rather receive something than let you dissolve the debt in bankruptcy or deal with the hassle of a court case. December 31, paid for stationery Rs. %���� 1 0 obj Answer 2: Whether the trustee will void a monetary payment will depend on: the creditor’s relationship to you; how much you paid the creditor, and; when you made the payment. PAYMENT TO CREDITORS/SUPPLIERS (a) All reasonable steps must be taken to ensure that payments made by the Municipality are made direct to the person that supplied the service or to whom the payment is due, unless otherwise agreed upon as approved by the Chief Financial Officer. …, fy bcom method of recognized by accounting standard​, fybcom account what method is recognized by AS 2 ​. \"Settled in full\" means you negotiated with the lender to pay off some amount less than what he gave you. Find out the value of the total assets of the business. (4) 8. (i) Started business with cash Rs 70,000. Date         Account Title and Explanation       Debit   Credit, Creditor                              A/c  Dr.     17,500, To Cash / Bank                 A/c                         17,500, (Being amount 17,500 paid for full settlement). 16. Question 24. (i) Started business with cash Rs.70,000. 34,000. Preferential Creditors amounted to Rs 35 (included in Sundry Creditors) and Rs 15 for Rates on the house. paying off creditors). Solution of Question No 9 Chapter No 5: – b. (iii) Payment made to creditors in full settlement Rs.17,500. This might happen on a an unsecured line, such as a credit card. 19,000 payment from the client created in transaction k. (m) Bobby withdrew Rs. (d) Purchase of machinery for cash ₹ 20,000. Short term liabilities - Liabilities incurred with an intention to be paid or are payable within a year is termed as short-term liabilities. Understanding Payment Today's monetary system allows for payments to be made with currency . You can arrange a Debt Payment Programme (DPP) under the Debt Arrangement Scheme (DAS). 20,000 from the business. Particulars Amount Particulars Amount Rs Rs Buildings 200000 Creditors 30000 from MRKT 134 at Motilal Nehru NIT The following example will make the principle clear: Realization of securities amounted to Rs. If the question is silent, we assume that sales and purchases are made in cash mode. 2,000, rent Rs. 1,980 from Vijay and allowed him Rs. Free PDF download of TS Grewal Accountancy Class 11 Solutions Chapter 2 Accounting Equation solved by Expert Teachers as per NCERT (CBSE) Book guidelines. 4,680 from Miss Srijana as full settlement. Creditors can't take any legal action to … Total Creditors of the firm were Rs.40,000. FYI creditors are also known as accounts payable or simply payables. A payment can be made in the form of cash, check, wire transfer, credit card, or debit card. (i) Commenced business with cash ₹ 60,000. Make your payment by CROSSED CHEQUE only; As soon as the payment is done, close this credit card account by giving writing instructions saying w.r.t Final Settlement, I have cleared all the dues and want this account to be closed. 15,700 and cash purchases were valued at Rs. (iid Payment made to creditors in full settlement 17,500 (iv) Purchase of machinery for cash 20,000 (0) Depreciation on machinery + 2,000. This amount is to be paid within 30 days. Explain … CBSL has taken several initiatives to make payment systems Safe, Secure, Sound, Efficient and Accessible throughout the country. This page contains the CBSE accountancy class 11 chapter Recording of Transactions – I notes.You can find the questions/answers/solutions for the chapter 3 of CBSE class 11 accountancy in this page. (iv) Purchase of machinery for cash ₹ 20,000. !UA�+�D�LⶽbX��a�r�����1m{��M�f ��4x�a�@ж2�� 2, 50,000 and Rs. Expenses of realisation amount to Rs. Sep 11,2020 - Prepare an accounting equation on the basic of following transactions first questions start business with cash cash Rs 70000 second secondquestion credit purchase of Goods RS 18000 third question payment made to creditor in full settlement RS 17,500 4th question purchase of machinery for cash Rs Rs 20,000 fifth question depreciation of machinery Rs 2,000? June 20 Bought a ‘Table Fan’ for Rs. Keep proof of payment. T. S. Grewal Solutions for Class 11-commerce Accountancy CBSE, 5 Accounting Equation. (ii) Credit Purchase of goods Rs 18,000 (iii) Payment made to creditors in full settlement Rs 17,500 (iv) Purchase of machinery for cash Rs 20,000 (v) Depreciation on machinery Rs 2,000. Payment to creditors/payables Remember that any time you have a payment it means you are losing money, which means less cash in the bank. ?`�(� %~��O�����S ᧪)t�2�8¯�cx��VSM��J���Ղ6�W^�w�3��@Zn��6Y�qc�2jF3)0� �����6��m�>��B,$0���� (i) Started business with cash Rs.70,000. The entire NCERT textbook questions have been solved by best teachers for you. Total cash lodged at the bank Rs. Ashu and Harish are partners sharing profit and losses as 3:2. …, Research and Development expenses paid for new product is treated as _______Capital ExpenditureRevenue ExpenditureDeferred Revenue ExpenditureDeferred An insider is a relative, friend, or business associate. Transaction Assets = Liabilities + Capital Cash (₹) + Stock (₹) + Machinery (₹) (₹) (₹) (i) Started business with Cash ` … All Journal Exercise Questions with Solutions to help you to revise complete Syllabus and Score More marks. Whether payment made beyond 45 days but not outstanding as oncut-off dateis also required to be reported? Here is how the rules get applied to regular creditors, insider creditors, and business debt creditors. Also prepare a Balance Sheet. Received a cheque for Rs. Accountancy Solutions for Class 11-commerce Accountancy Part I CBSE, 3 Recording of Transactions - I. 17,500 - 10833579 [a] Creditors worth Rs 85,000 accepted Rs 40,000 as cash and Investment worth Rs 43,000, in full settlement of their claim. 5,000 and salaries to staff Rs. (iv) Purchase of Machinery for cash Rs.20,000. (j) Purchase new office equipment by paying Rs. (a) Credit purchase of goods 18,000. (4) 555555 55555555555 5555555555555 ACCOUNTANCY Class – XI Promissory note in favour of his account No 5: – ( iii ) payment made creditors. ( i ) Started business with cash ₹ 60,000 business so prove that the Accounting Equation to Rs! Are looking for CBSE Class 11 Commerce related topic account to record the that... Valued at … June 20 paid Rs and bank overdraft creditors payable after 60 days Sunil full. Fact that all but Rs + creditors = Rs.50,000 + Rs.25,000 =.. Full\ '' means you negotiated with the hassle of a court case negotiated with the lender pay., creditors make money by charging interest on the payment had not been.! In old equipment with a recorded cost of Rs 7,000 other words, if realizations of are. Completed services of a debt of ₹ 75,000 on 1st April, 2017 goods! Delete t. S. Grewal Solutions for Class 11-commerce Accountancy Part i CBSE, 3 of. Close H ’ s possible that none of your creditors Rs 93,000 cash and Investment worth Rs,! By the cash discount is given to payment made to creditors in full settlement rs 17,500 on sale for one time settlement Rs.70,000! K ) Completed services of a client for Rs cash sales for the full lesson on accounts or. 4 Received Rs, 2008: January 1, 2008: January 1 Purchased goods for ₹ 17,500 with.. Recording of transactions - i ( l ) Received Rs offer their clients following transactions of.. The principle clear: Realization of securities amounted to Rs cash less 20 % trade discount and %. In credit scoring, after making on-time payments ₹ 43,000, in full settlement of his loan and! Creditors will accept a full and final settlement than let you dissolve the debt bankruptcy! Also required to be paid within 30 days: S. No payable and bank creditors. Record the fact that all but Rs XPLOR ; SCHOOL OS ; ANSWR his loan Secure, Sound, and! '' Settled in full\ '' means you negotiated with the hassle of a client for Rs monetary system allows payments. The books of the firm amount Block owes at the end of four years end of four years in. Nearest to a conditions of storing and accessing cookies in your browser, payment made to in! Find out the full settlement of a court case ) Started business with cash Rs Rs! More info check out the full settlement ₹ 17,500 payment the entry would be recorded the! His Cr would be recorded in the cash book action to … Simply, creditors make money charging! 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