Accounting Standards and International Financial Reporting Standards (IFRS) — Account STD 11 Commerce — Question

Journalise the following transactions:

2018
April 1	Purchased goods for ₹ 1,00,000 from Manoj and availed discount of ₹ 10,000
April 2	Paid amount due to Manoj by cheque and availed discount of ₹ 4,500
April 5	Cash ₹ 5,000 paid to Desai and discount allowed by him ₹ 200
April 10	Cash ₹ 10,000 received from Govardhan and allowed him discount ₹ 500.
April 12	Sold personal Car of the proprietor for ₹ 80,00 against cheque, which was deposited into the firm's bank account.
April 16	Sold personal Car of the proprietor for ₹ 1,50,000 against cheque, which was deposited into the proprietor's personal bank account.
April 20	Sold goods to Gaurav costing ₹ 1,00,000 at a profit of 40% and allowed him 10% trade discount and paid for cartage ₹ 3,000 not to be charged from him.
April 24	Placed an order with Rudra & Co. for supply of goods of ₹ 80,000 and a cheque for 40% amount is sent to them as an advance.

Prepare Simple Cash book of Gopal of Amritsar from the following transactions:​

2019			₹
April 1	Gopal commenced business introducing cash ₹ 60,000 and ₹ 1,50,000 by taking a loan from the Allahabad Bank.
April 4	Purchased following assets for business: Computer ₹ 16,000; Furniture ₹ 18,500 and Machinery ₹ 32,000 plus CGST and SGST @ 6% each, paid by cheque.
April 6	Purchased goods of ₹ 40,000 plus CGST and SGST @ 6% each from Bhushan, Amritsar, half of the value paid in cash.
April 8	Paid wages for installation of Machinery		4,000
April 12	Computer repair charges ₹ 1,900 paid along with CGST and SGST @ 6% each
April 15	Paid wages		15,000
	Purchased Postage Stamps		150
	Paid for stationery of ₹ 2,700 along with CGST and SGST @ 6% each
April 19	Sold for cash half the goods purchased from Bhushan to Anil Krishna at a profit of 25% and allowed him Trade Discount of 5%. Charged CGST and SGST @ 6% each
April 24	Payment to carpenter for repairs to personal furniture		350
April 26	Paid for medical expenses of Smt. Gopal		1,800
April 30	Paid for shop rent ₹ 2,000 along with CGST and SGST @ 6% each.

A Company purchased a machinery for ₹ 50,000 on 1st Oct., 2016. Another machinery costing ₹ 10,000 was purchased on 1st Dec., 2017. On 31st March, 2019, the machinery purchased in 2016 was sold at a loss of ₹ 5,000. The Company charges depreciation at the rate of 15% p.a. on Diminishing Balance Method. Accounts are closed on 31st March every year.
Prepare Machinery account for 3 years.

On March 31, 2017 the cash book showed a balance of ₹ 3,700 as cash at bank, but the bank passbook made up to same date showed that cheques for ₹ 700, ₹ 300 and ₹ 180 respectively had not presented for payment, Also, cheque amounting to ₹ 1,200 deposited into the account had not been credited. Prepare a bank reconciliation statement.

A limited company purchased on 01-01-2017 a plant for ₹ 38,000 and spent ₹ 2,000 for carriage and brokerage. On 01-04-2018 it purchased additional plant costing ₹ 20,000. On 01-08-2019 the plant purchased on 01-01-2017 was sold for ₹ 25,000. On the same date, the plant purchased on 01-04-2018 was sold at a profit of ₹ 2,800. Depreciation is provided @10% per annum on diminishing balance method every year. Accounts are closed on 31st December every year. Show the plant A/c for 3 years.

Pass the necessary Journal entries to rectify the following errors:

1. Credit sale of ₹ 850 to Kishan was posted to Krishan's Account.
2. Cash sale of ₹ 850 to Meenu was posted to the credit of Meena.
3. Amount of ₹ 1,500 withdrawn from bank by the proprietor for his personal use was debited to Purchases Account.
4. Credit sale of old furniture to Mohan for ₹ 1,700 was posted as ₹ 7,100.
5. Credit sale of old furniture to Babu Ram for ₹ 3,000 was credited to Sales Account.
6. Cheque of ₹ 1,280 received from Farid was dishonoured and has been posted to the debit of Sales Return Account.

Explain the factors which necessitated systematic accounting.

Berlia Ltd. Purchased a second hand machine for ₹ 56,000 on July 01, 2015 and spent ₹ 24,000 on its repair and installation and ₹ 5,000 for its carriage. On September 01, 2016, it purchased another machine for ₹ 2,50,000 and spent Rs. 10,000 on its installation.

1. Depreciation is provided on machinery @10% p.a on original cost method annually on December 31. Prepare machinery account and depreciation account from the year 2015 to 2018.
2. Prepare machinery account and depreciation account from the year 2011 to 2018, if depreciation is provided on machinery @10% p.a. on written down value method annually on December 31.