Recording of Transactions - 1 — Account STD 11 Commerce — Question

Journalise the following transactions is the journal of M/s. Goel Brothers and post them to the ledger.

2017		₹
Jan. 01	Started business with cash	1,65,000
Jan. 02	Opened bank account in PNB	80,000
Jan. 04	Goods purchased from Tara	22,000
Jan.05	Goods purchased for cash	30,000
Jan.08	Goods sold to Naman	12,000
Jan.10	Cash paid to Tara	22,000
Jan.15	Cash received from Naman	11,700
	Discount allowed	300
Jan. 16	Paid wages	200
Jan. 18	Furniture purchased for office use	5,000
Jan. 20	Withdrawn from bank for personal use	4,000
Jan. 22	Issued cheque for rent	3,000
Jan. 23	Goods issued for house hold purpose	2,000
Jan. 24	Drawn cash from bank for office use	6,000
Jan. 26	Commission received	1,000
Jan. 27	Bank charges	200
Jan. 28	Cheque given for insurance premium	3,000
Jan. 29	Paid salary	7,000
Jan. 30	Cash sales	10,000

Following balances appeared in the books of Radhika Traders as on 1st April, 2017:
Assets: Cash ₹ 8,000; Cash at Bank ₹ 7,000; Stock ₹ 30,000; Debtors; ₹ 36,000 (Mohan ₹ 10,000; Sohan ₹ 12,000; Dinesh ₹ 14,000); Furniture ₹ 5,000; Building ₹ 25,000.
Liabilities: Creditors− X ₹ 5,000; Y ₹ 6,000.
In April, 2017, the following transaction took place:

2017		₹
April 2	Bought goods of the list price of ₹ 6,000 from Khanna Brothers less 15% trade discount and 2% cash discount and paid 40% price at the same time.
April 3	Received a draft from Mohan in full settlement and deposited it into Bank
April 5	Purchased goods from Suresh of the list price of ₹ 8,000 at 20% trade discount and paid him by cheque.	9,750
April 8	Sold goods and received a cheque	25,000
April 10	Deposited the above cheque into Bank	12,000
April 12	Sohan deposited in our Bank A/c	4,000
April 16	Paid Income Tax by Cheque	5,600
April 20	Received a cheque from Sohan and sent to Bank	7,800
	Discount allowed	200
April 21	Withdrew from Bank−for office	2,000
	for private use	4,000
April 23	Sent a cheque to X in full settlement of his A/c	4,900
April 27	Cheque of Sohan returned by the bank as dishonoured.
April 28	Dinesh was declared insolvent and a payment of 60 paise in a ₹ received from his estate by a Cheque
April 30	Bank allowed Interest	350
	Paid for Rent by cheque	1,500
	Paid for traveling expenses by cheque	500

Pass Journal entries for the above transactions.

A book-keeper finds that the debit side of the trial balance is short of ₹ 308 and so for the time being, he balances the side by putting the difference to suspense account. Subsequently, the following errors were disclosed:

1. An entry for sale of goods for ₹ 102 to Madhav was posted to his account as ₹ 120.
2. ₹ 100 being the discount allowed to customers were credited to discount received account in the ledger.
3. ₹ 275 paid by Madhav were credited to Jadav's account.
4. ₹ 26 appearing in the cash book as paid for the purchase of stationery for office use have not been posted to ledger.
5. The debit side of purchases account was under-cast by ₹ 100.

You are required to make the necessary journal entries and the suspense account.

Prepare the Vouchers to be recorded in the books of M/s Elegant Furnitures, New Delhi:

2019	Particular	₹
Jan-1	Bought furniture from Modern Furniture for cash vide Cash Memo No. 241*	7,500
Jan-8	Paid cash to Mani & Sons for purchase of 2 machines vide Cash Memo No. 1230*	5,000
Jan-20	Paid for conveyance	150
Jan-27	Sold old typewriter for cash vide cash receipt No. 314*	500

Transactions marked with * are subject to levy of CGST and SGST @ 6% each.

Journalise the following transactions in the books of Shri Manoj, Kolkata and prepare Ledger Accounts. Opening Debit Balances: Cash in Hand ₹ 15,000; Cash at Bank ₹ 55,000; Stock ₹ 28,000; Debtors ₹ 25,000 (Sunil ₹ 5,000; Abhay ₹ 10,000 and Alok ​₹ 10,000); Fixed Assets: Computer and Printer ₹ 50,000; Furniture ₹ 10,000; Delivery Van ₹ 25,000. Opening Credit Balances: Bank Loan ₹ 90,000; Salaries Outstanding ₹ 15,000; Creditors ₹ 20,000; Bills Payable ₹ 10,000; Capital ₹ 73,000. Transactions for the month of April, 2019 were:

1. Purchased goods from M/s Prabhat Electricals, Delhi ₹ 10,000 less 10% Trade Discount.

Cheque was issued immediately and availed 2% Cash Discount on purchase price.

2. Cheque was received from Abhay for the balance allowing him discount of 2%*.
3. Cheque was received from Alok for the balance due*.
4. Sunil was unable to pay the full dues and offered to pay 75%, which was accepted. Cheque was duly received*.
5. Gave goods costing ₹ 1,000 as charity. These goods were purchased in Kolkata.
6. In a competition held by the RWA where the shop is located an electric iron costing ₹ 500 was given as an award. It had been purchased from Prabhat Electricals, Delhi.
7. A debt of ₹ 10,000 that was written off as bad debt in the past was received*.
8. Salaries amounting to ₹ 15,000 provided in the books for the month of March, 2019 were paid through cheque*.
9. Sales for the month were: Cash Sales ₹ 15,00,000 (Intra-state) and Credit Sales ₹ 3,00,000 (Inter-state).
10. Purchases for the month were: Cash Purchases ₹ 1,00,000 (Intra-state) and Credit

Purchases (Inter-state) ₹ 9,00,000.
Cheques Received from Debtors ₹ 2,00,000; Deposited Cash ₹ 15,00,000.

11. Paid to creditors through cheques ₹ 8,90,000*.
12. Bank Loan repaid during the month ₹ 20,000*.

Inter-state transactions are subject to levy of IGST @ 12% and Intra-state transactions are subject to levy of CGST and SGST @ 6% each. GST is not levied on transactions marked with (*).

Correct the following errors in Mohan Lal’s Book:

1. A payment of ₹ 5,000 for salaries (to Mr. Ram) has been posted twice to the Salaries Account.
2. ₹ 750 received from Rajesh are entered on the debit side of the Cash Book. No posting was done in Rajesh’s Account.
3. Sales Book was overcasted by ₹ 3,000.
4. Goods (Cost ₹ 2,000, Sales Price ₹ 2,500) distributed as samples among prospective customers were not recorded anywhere.
5. A sum of ₹ 1,500 written off as depreciation on furniture was not debited to Depreciation Account.

Rectify the following errors identified in the books of Goel. The Trial Balance did not match, ₹ 14,930 being excess credit. The difference was placed in Suspense Account:
i. An amount of ₹ 100 was received from Das on 31st March, 2023 but was entered in the Cash Book on 4th April, 2023.
ii. Returns Inward Book for March was short casted by ₹ 1,000 .
iii. Purchase of an office table for ₹ 3,000 was passed through the Purchases Book.
iv. ₹ 3,750 paid for wages to workmen for making showcases was charged to the Wages Account.
v. Purchase of ₹ 670 was posted to Creditor's Account as ₹ 600 .
vi. A cheque for ₹ 200 received from Kuldeep was dishonoured and was debited to the 'Printing and Stationery Account'.
vii. ₹ 10,000 paid for purchase of a motorcycle was debited to 'Miscellaneous Expenses Account'.
iii. An amount of ₹ 10,000 owed by Danish was omitted from Sundry Debtors.
ix. Daman paid ₹ 6,700 but her account was wrongly credited with ₹ 10,700 .

Fill up the missing information in the following rectifying entries:

Enter the following transactions in subsidiary books, post them into Ledger and prepare a Trial Balance:
The following balances existed in Sunil Bros. books on April 1, 2017:
Assets: Cash in hand ₹ 27,500; Bank Balance ₹ 40,000; Debtors: Ashok ₹ 18,000, Bahadur ₹ 25,000, Charu ₹ 30,000; Stock ₹ 1,60,000 and Furniture ₹ 40,000.
Liabilities: Creditors: Dinesh ₹ 20,000 and Ekta ₹ 15,000.

2017
April 1	Cash Sales ₹ 18,000
April 2	Deposited into Bank ₹ 20,000
April 3	Purchased from Dinesh:
	300 metres Cotton @ ₹ 60 per metre
	200 metres Silk @ ₹ 100 per metre
April 5	Cheque issued to Dinesh for ₹ 25,000
April 6	Accepted a bill at one month for ₹ 15,000 drawn by Dinesh
April 8	Sold to Ashok:
	400 metres Cotton @ ₹ 80 per metre
	250 metres Silk @ ₹ 140 per metre
April 10	Returned by Ashok 50 metres Silk
April 12	Received Cash ₹ 8,000 and a Cheque for ₹ 40,000 from Ashok. Cheque was immediately sent to Bank.
April 13	Received a B/R from Bahadur for ₹ 20,000 at one month
April 15	Accepted a bill at two months drawn by Ekta for the amount due to her.
April 16	Purchased a Computer for office use from Shiva Ltd. for ₹ 45,000 on Credit.
April 18	Cash purchases ₹ 10,000
April 19	Received full payment from Charu by cheque, sent it to Bank. Discount allowed 2%
April 20	Issued a cheque to Dinesh in full payment of his account after deducting 1% discount
April 22	Settled the account of Shiva Ltd. by a cheque
April 24	Proprietor took away goods worth ₹ 5,000 and Cash ₹ 6,000
April 25	Purchased from Ganesh 200 metres Cotton @ ₹ 70 per metre subject to trade discount of 5%
April 27	Paid Rent ₹ 3,000 and Salaries ₹ 8,000
April 30	Interest allowed by bank ₹ 600