1. Rectify the following errors

The payment by cheque to a customer Rs 550 was recorded twice.

Rent paid Rs1,500 was posted to the credit of Rent A/c as Rs 150.

Goods purchased from Suresh Rs 1,800 was recorded in Sales Book as Rs 180.

A sale of Rs 79 to Mohan was posted in his A/c as Rs 97.

Commission of Rs 350 was posted twice in Payment A/c.

2. Pass Journal entries for the following:

Purchased machinery for Rs 30,000 and paid Rs 500 for its carriage.

Paid rent in advance Rs 1,000.

Goods costing Rs 40,000 sold to Manoj at a profit of 20% on cost.

Goods for Rs 10,000 were destroyed by fire.

Outstanding wages Rs 80,000.

3. Prepare the Accounting Equation:

Started business with cash Rs 8,00,000.

Purchased goods for Rs 40,000 on credit.

Commission received in advance Rs 2,000.

Amount withdrawn from bank Rs 8,000.

Sold goods for cash Rs 1,50,000 costing Rs 1,00,000.

4. Define the supply function. What are the determinants of supply of a commodity?

5. How can the deflation in an economy be controlled by the following? Explain.

Monetary Policy

Fiscal Policy

6. What is Perfect Competition Market How is it different from Monopoly Market How is the price of a commodity determined in short run under Monopoly Market?

7. What will be the effect on equilibrium when the demand is constant and the supply changes Explain.

8. What will be the price elasticity of demand if the consumer spends Rs 100 when the price is Rs 1 per unit, and spends Rs 150 when the price increases to Rs 2 per unit