Meaning and Fundamentals of Double Entry Book-Keeping — Book Keeping & Accountancy STD 11 Commerce / Arts — Question

Give the accounting equation for the following transactions1) Rupali commenced business with bank balance ₹ 25,000.
2) Purchased Machinery for cash ₹ 5,000.
3) Bought goods from Swara worth ₹ 3,000 on credit.
4) Paid for Salaries ₹ 3,000.
5) Received Interest ₹ 200.

Put ‘4’ mark for the nature of balance for the following.:

Following are some accounting errors, rectify them.
1) Sales for ₹15,000/- made to Vaishnavi was not entered in the Sales Book.
2) Salary of ₹9,000/- paid to Accountant Varundas was debited to his personal account
3) Old Furniture sold for ₹3,500/- was entered in the Sales Book.
4) Carriage paid ₹500 on purchase of a Machine was debited to Carriage A/c
5) Cash ₹45,000/- paid to Aditya Verma was debited to Kumar Verma’s A/c

Consider the following example.
Prepare two column Cash Book of Seema Traders

2019 Jan			₹
	01	Started business with Cash	60,000
	04	Cash deposited into Bank of India	25,000
	06	Cash Purchases	6,000
	10	Purchased Computer for office use	22,000
	15	Sold goods to Rakesh & Co. and received a bearer cheque.	10,000
	20	Rakesh's cheque deposited into Bank.
	24	Paid Carriage	300
	25	Cash withdrawn for personal use	3,000
	30	Paid Rent by cheque	1,200

Complete the following table.:

Arjun keeps his books under Single Entry System. His Assets and Liabilities were as under.;

Particulars	31.3.2017(₹)	31.3.2018(₹)
Cash	1,500	1,000
Sundry Debtors	30,000	46,000
Stock	35,000	31,000
Plant and Machinery	61,000	75,000
Sundry Creditors	15,000	13,500
Bills Payable		4,000

During the year 2017-18 he introduced ₹ 15,000 as additional capital. He withdrew ₹ 2,500
every month for his private purpose.
Ascertain his Profit or Loss for the year ended 31st March 2018.

Rectify the following errors.
1) Sales return book was overcast by ₹ 800/-
2) Factory electricity bill ₹ 7,000/- paid but recorded twice in the books.
3) Total of Sales book was undercast by ₹ 900/-
4) Paid for Rent ₹ 825/- was wrongly posted to Rent account as ₹ 325/-
5) Wages paid for extension of Building ₹ 9,900/- was charged to wages account.
6) Paid carriage for purchase of Machinery ₹ 2,000/- was charged to carriage account.
7) Life insurance premium of proprietor paid ₹ 1,500/- wrongly debited to Insurance A/c

Give Journal Entries to rectify the following errors:
1) Goods purchased from Sujit for ₹ 3,000/- were recorded in Sales Book.
2) Goods for ₹5,200/- sold to Sachin was passed through Purchase Book.
3) A customer returned goods worth ₹800/- was recorded in Purchase Return Book.
4) A credit sale of ₹ 240/- to Ajit was entered in the Sales books as ₹ 420/-
5) Sale of old Table and Chairs for ₹ 900/- was treated as sale of goods.
6) Rent paid for proprietor’s residence ₹ 1,200/- , debited to Rent A/c.

Amar bought goods worth ₹20,000 from Rakesh at 10% trade discount.

Cash Book of Kunal showed an Overdraft of ₹ 36,280 as on 31st July 2019. On comparing his Cash
Book and Pass Book following differences were found:
i) An amount of ₹ 18,700 was directly paid into bank by our customer Manish, was not recorded
in Cash Book.
ii) Cheque of ₹ 18,900 deposited in the bank, was collected and credited by bank but was entered
in Cash Book as ₹ 19,800.
iii) Cheques issued for salary to staff ₹ 25,000 on 27th July 2019 was presented for payment only
on 4th Aug 2019.
iv) Cash ₹ 20,000 withdrawn from ATM for office use was not recorded in Cash Book.
v) Debit side of Cash Book, bank column was overcast by ₹ 100.
vi) As per standing instruction bank paid our office rent ₹ 19,500.
vii) Commission collected by bank ₹ 3,750 on behalf of us was not recorded in Cash Book.
Prepare Bank Reconciliation Statement as on 31st July 2019.