Bills of Exchange — Account STD 11 Commerce — Question

Explain the following briefly with appropriate example:
Revenue Recognition (Realisation) Concept.

What is IGST? Give an example.

Raghav & Co. have two bank accounts, Account No. I and Account No. II. From the following particulars relating to Account No. I, find out the balance on that account on December 31, 2016 according to the Cash Book of the firm.

1. Cheques paid into bank prior to December 31, 2016, but not credited until after that date for ₹ 10,000.
2. Transfer of funds from Account No. II to Account No. I recorded by the bank on December 31, 2016 but entered in the Cash Book after that date for ₹ 8,000.
3. Cheques issued prior to December, 31 2016 but not presented until after that date for ₹ 7,429.
4. Bank charges debited by bank not entered in the Cash Book for ₹ 200.
5. Interest debited by the bank not entered in the Cash Book ₹ 580.
6. Overdraft as per Pass Book ₹ 18,990.

Prepare a Purchase Book in the books of M/s Modern Furniture House, Lucknow (U.P) from the following transactions assuming CGST @ 6% and SGST @ 6%.

2017
June 5	Bought from Mohan Lal & Co., Kanpur (U.P)
	20 Godrej Chairs @ ₹ 2,000 each
	5 Godrej Tables @ ₹ 6,000 each
	Trade Discount 20%
June 10	Purchased from Bharat Bhushan & Sons, Varanasi (U.P)
	5 Almirahs @ ₹ 12,000 each
	2 Revolving Chairs @ ₹ 20,000 each
	Trade Discount 10%
June 14	Purchased from Surya Traders, Lucknow (U.P)
	80 Desks @ ₹ 2,500 each
	10 Sofa Sets @ ₹ 20,000 each
	Trade Discount @ 15%
June 20	Purchased for cash from Gopi Chand Haldi Ram, Delhi
	4 Tables @ ₹ 5,000 each
25 June	Bought Furniture for office use from New Furniture House, Faridabad on Credit
	5 Chairs @ ₹ 2,500 per Chair.
	2 Tables @ ₹ 5,000 per Table.

On 1st July, 2019, A drew a bill for ₹ 5,000 on B payable after 3 months. A discounted it with the Bank for ₹ 4,850. On maturity, B failed to pay the amount of his acceptance and the bank had to pay ₹ 50 as noting charges.
Pass the necessary Journal entries in the books of A and B.

What is the purpose of posting J.F numbers that are entered in the journal at the time entries are posted to the accounts.

Prepare the Bank Reconciliation Statement from the following particulars for the period ending 31st December, 2012.

1. Overdraft as per Pass Book on 31-12-2012 ₹ 7,600.
2. Cheques deposited but not collected by the bank ₹ 8,560.
3. Incidental charges not recorded in Cash Book ₹ 80.
4. Cheques were issued for ₹ 7,800 but only ₹ 4,400 were presented for payment.
5. Insurance premium paid by bank not recorded in the Cash Book ₹ 4,200.
6. On 31st December, 2012 cash was deposited in bank ₹ 385 but the cashier debited the bank column with ₹ 485 by mistake.

Fill up the missing information in the following journal entries:

Rectify the following errors:

1. Salary paid ₹ 5,000 was debited to employee’s personal account.
2. Rent Paid ₹ 4,000 was posted to landlord’s personal account.
3. Goods withdrawn by proprietor for personal use ₹ 1,000 were debited to sundry expenses account.
4. Cash received from Kohli ₹ 2,000 was posted to Kapur’s account.
5. Cash paid to Babu ₹ 1,500 was posted to Sabu’s account.

What is IGST? Give an example.