Question

Q4) Give one word term or phrase which can substitute each of the following statements:
Amount invested in the business by the proprietor .
Tax imposed by Central government on Goods and Services.
Brief explanation of an entry
Page number of Ledger
Credit balance to bank Account .​

Answer 1

Give one word term or phrase which can substitute each of the following statements:

1. Amount invested in the business by the proprietor.

Answer: Capital

2. Tax imposed by Central government on Goods and Services.

Answer: GST

3. Brief explanation of an entry.

Answer: Narration

4. Page number of Ledger.

Answer: Ledger folio number

5. Credit balance to bank Account.

Answer: Bank overdraft

Extra Information:

• Capital is the total amount invested by the owner into the business. It is actually a liability of business, as this amount is payable by him at the time of closure of business.

• GST stands for Goods and Service Tax. GST was imposed in india from 1st July 2017. All the taxes such as Service Tax, Central Sales Tax, Custom duty, etc. comes under GST.

• Narration means a brief explanation about the transactions. It helps to clarify and understand every transaction.

• Ledger Folio number indicates the page number of the ledger. The page number in the ledger should be recorded against every accounts at the time of its posting.

• Bank Overdraft means the credit balance in bank account. Bank account is a personal account and thus it can have debit balance or credit balance.

Answer 2

Question:-

Give one word term or phrase which can substitute each of the following statements:

Answers:-

1) Amount invested in the business by the proprietor.

➾ Capital

• Capital is the amount of cash and other assets owned by a business.

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2) Tax imposed by Central government on Goods and Services.

➾ GST ( Goods and Service Tax )

• Goods and Service Tax is imposed on the supply of goods and services.

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3) Brief explanation of an entry.

➾ Narration

• The recounting of an event is called narration.

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4) Page number of Ledger.

➾ Ledger Folio

• It is a page number of an account in ledger that is written in L.F. column.

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5) Credit balance to bank Account

➾ Bank Overdraft

• It happens when an individual's bank account balance goes down to below zero.

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