Accounting Equation — Account STD 11 Commerce — Question

Enter the following transactions in a Cash Book with Cash and Bank Columns:

2017		(₹)
March 1	Commenced business with ₹ 1,00,000 of which ₹ 20,000 were borrowed from Mr. Ratan
March 2	Opened current account with Punjab National Bank	75,000
March 4	Bought goods by cheque	60,000
March 5	Purchased a typewriter for ₹ 4,000 and spent ₹ 500 on its repairs
March 8	Paid petty cash expenses	200
March 10	Transferred from Current account to Fixed Deposit Account in the Bank	5,000
March 12	Sold goods for Cash ₹ 25,000 and cheque ₹ 15,000
March 13	Deposited the above cheque into bank
March 15	Purchased goods from Ram Singh on Credit	25,000
March 18	Settled Ram Singh's Account by cheque	24,750
March 20	Sent a cheque in payment of the fees of Proprietor's son	500
March 25	Cash sales, received a cheque	4,000
March 28	Deposited the above cheque into bank, collection charges	25
March 31	Repaid the loan taken from Mr. Ratan including interest @18% p.a.

D.Chadha, Delhi commenced business on 1st January, 2019. His transactions for the month are given below. Journalise them. He will close his books on 31st March each year.

2019		₹
Jan.1	Commenced business with Cash	25,000
Jan.2	Opened Bank Account with cheque from his Savings Account	2,25,000
Jan.3	Bought goods from Ramesh & Co., Delhi, plus CGST and SGST @ 6% each	54,000
Jan.3	Sold goods to Rajesh of ₹ 60,000, charged CGST and SGST @ 6% each
Jan.7	Bought goods from Rahul, Chennal, plus IGST @ 12%	65,000
Jan.8	Paid wages in cash (GST not levied)	8,000
Jan.8	Sold goods to Mahesh, Kochi of ₹ 60,000; charged IGST @ 12%
Jan.10	Received cheque from Rajesh (Discount allowed ₹ 1,200)	66,000
Jan.11	Paid to Ramesh & Co. (Discount received ₹ 2,700)	51,300
Jan.12	Paid rent @ ₹ 15,000 per month for three months up to March, plus CGST and SGST @ 6% each
Jan.15	Paid office expenses in cash	700
Jan.21	Sold to Rakesh, Delhi goods of ₹ 25,000, charged CGST and SGST @ 6% each
Jan.22	Paid office expenses in cash	500
Jan.22	Paid to Rahul by cheque (discount ₹ 3,200)	61,300
Jan.25	Received cheque from Mahesh Kochi (discount ₹ 1,500)	65,700
Jan.27	Rakesh, Delhi returned goods (being not as per sample)	2,000
Jan.31	Paid salaries for the month	20,000

Prepare Two-column Cash Book from the following transactions of Mani, Kochi:

2019
March 1	Cash in Hand ₹ 15,000; Cash at Bank ₹ 5,000
March 3	Purchased goods for cash ₹ 6,720 including CGST and SGST @ 6% p.a; received discount of ₹ 220
March 5	Deposited into bank ₹ 5,000
March 7	Cash sales ₹ 10,000 plus CGST and SGST @ 6% each
March 10	Cash withdrawn from Bank for Office use ₹ 2,000
March 15	Received three months post dated cheque of ₹ 20,000 from Raj and deposited in the bank on the same day, discounted from bank paying discounting charges ₹ 750
March 18	Received cheque from Deepak for ₹ 5,000 (not banked), allowed discount ₹ 200
March 20	Cheque received from Deepak deposited in Bank
March 22	Paid to Chandra by cheque ₹ 2,500; received discount ₹ 100
March 25	Withdrew from bank for personal use ₹ 1,000
March 28	Sold goods on credit to Ashok Mitra, Kolkata ₹ 10,000, charged IGST @ 12%
March 30	Purchased goods on credit from Chander, Delhi ₹ 20,000, paid IGST @ 12%
March 31	Received cheque from Ashok Mitra ₹ 5,000 and deposited in bank, allowed cash discount ₹ 200

Following is the Trial Balance as at 31st March, 2015: Having prepared the Trial Balance, it was discovered that following transactions remained unrecorded:

1. Goods were sold on credit amounting to ₹ 40,000.
2. Paid to creditors ₹ 22,000 by cheque.
3. Goods worth ₹ 7,000 were returned to a supplier.
4. Paid salary ₹ 15,000 by cheque.

Required:

1. Pass Journal entries for the above mentioned transactions and post them into Ledger.
2. Redraft the Trial Balance.

Prove that the Accounting Equation is satisfied in all the following transactions of Suresh. Also prepare a Balance Sheet.

1. Commenced business with cash ₹ 60,000.
2. Paid rent in advance ₹ 500.
3. Purchased goods for cash ₹ 30,000 and credit ₹ 20,000.
4. Sold goods for cash ₹ 30,000 costing ₹ 20,000.
5. Paid salary ₹ 500 and salary outstanding being ₹ 100.
6. Bought motorcycle for personal use ₹ 5,000

Mr. Lal operates two bank accounts both of which are maintained in the columnar cash book itself. You are required to prepare a proforma of the cash book, record the following transactions therein and draw the closing balances as on 30th June, 2016:

2016		(₹)
June 20	Opening Balance of Cash	1,180
	Progressive Bank	19,040
	Goodwill Bank (Overdraft)	6,460
June 20	Received cheque for ₹ 1,800 from a debtor Mr. X and deposited in Goodwill Bank. The Bank credited the amount on 23rd June and debited ₹ 4 as its collection charges.
June 21	Purchased goods for ₹ 18,210 and a cheque issued on Progressive Bank.
June 22	Paid office expenses ₹ 410 and ₹ 80 for stationery in cash.
June 23	Deposited a cheque for ₹ 21,090 being sale proceeds of goods in Progressive Bank. The Bank credited the amount on the same day and debited ₹ 21 as cheque discounting charges.
June 23	A cheque for ₹ 8,000 drawn by Mr. Lal himself on Progressive Bank was deposited in his account with Goodwill Bank.
June 25	Cash drawn from the account with Progressive Bank ₹ 600 for office use.
June 25	A cheque for ₹ 1,100 received from Mr. A and earlier deposited in Goodwill Bank (on 14th June) was returned unpaid and Bank debited ₹ 10 towards its charges. Mr. Lal received the amount of returned cheque and Bank charges in cash from Mr. A.
June 28	Deposited cash ₹ 1,500 in the account with Goodwill Bank.
June 29	Purchased postal stamps for ₹ 200 and paid in cash.

During the course of an accounting year, the accountant prepared a trial balance which did not tally. He put the difference in a suspense account. Subsequently, he located the following errors in his books of account:

1. The total of the returns outwards book, ₹ 21,500 has not been posted.
2. A sale of ₹ 4,300 to Ramesh has been credited to him as ₹ 3,400.
3. A sale of ₹ 2,960 to Shyam has been recorded in sales book as ₹ 2,690.
4. Old furniture sold for cash worth ₹ 5,400 has been posted in sales account as ₹ 4,500. There was no profit or loss on sale.
5. Goods taken by proprietor worth ₹ 1,000 have not been recorded in the books of account at all.

Pass journal entries of rectify the above mentioned errors and prepare suspense account assuming no error has remained undetected.

X draws a bill on Y for ₹ 2,000 on 1st January, 2019, Y accepts the same and returns it to X. The bill was drawn by X in full settlement of a debt owing by Y amounted to ₹ 2,050. Xdiscounts the bill on the same date with the Central Bank of India for ₹ 1,980. On maturity the bill was duly met by Y.
Give the entries in the books of X and Y.
Suppose the bill is dishonoured, what entries will be passed?

On Feb. 14, 2017 Rashmi sold good ₹ 7,500 to Alka. Alka paid ₹ 500 in cash and for the bank balance accepted a bill of exchange drawn upon her by Rashmi payable after two months. On Apr.10, 2017 Alka approached Rashmi to cancel the bill since she was short of funds. She further requested Rashmi to accept ₹ 2,000 in cash and draw a new bill for the balance including interest ₹ 500. Rashmi accepted Alka’s request and drew a new bill for the amount due payable after 2 months. The bill was accepted by Alka. The new bill was duly met by Alka on maturity. Record the necessary journal entries in the books of Rashmi and Alka and prepared Alka’s account in the books of Rashmi’s and Rashmi’s account in the books of Alka’s