Capital and Revenue — Account STD 11 Commerce — Question

Vinod sold goods to Darbara Singh for ₹ 1,000 on 1st January, 2019. He drew on the latter a bill for the amount payable 3 months after date. He discounted the bill with his bank for ₹ 990 on 4th January, 2019. On maturity, the bill is duly met. Make the Journal entries in the books of Vinod and Darbara Singh.

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.

Pass the rectifying entries for the following:

1. Sales of goods ₹ 6,000 to Madan were recorded as ₹ 600 in the Sales Book.
2. Credit purchase of goods from Mohan amounting to ₹ 2,000 has been wrongly passed through the Sales Book.
3. Return of goods worth ₹ 500 by a customer was entered in ‘Purchases Return Book’.
4. Cheque of ₹ 400 received from Ranjan was dishonoured and debited to the Discount Account.
5. Bill for ₹ 820 received from Ramesh for repair of machinery was entered in the Purchases Book as ₹ 720.

Classify the following accounts under personal, real or nominal accounts:

1. Commission Paid.
2. Commission Received.
3. Commission Accrued.
4. Prepaid Salaries.
5. Leasehold Property A/c.
6. Discount Allowed.
7. Carriage Inwards A/c.
8. Life Insurance Corporation of India.
9. Drawings A/c.
10. Rent Received in Advance.
11. Debtors.
12. Sales A/c.
13. Rent Paid in Advance.
14. Bank Overdraft.

Rectify the following errors which are detected before preparation of the Trial Balance:
i. Sale to Prakash ₹ 50,000 posted to his account as ₹ 5,000 .
ii. Sale to Prakash ₹ 30,000 debited to his account as ₹ 3,000 .
iii. Sale to Prakash ₹ 20,000 credited to his account as ₹ 2,000 .
iv. Sale to Ravi ₹ 5,600 posted to his account as ₹ 6,500 .
v. Purchases of ₹ 8,755 from Nitin posted to his account as ₹ 5,578 .
vi. Purchases of ₹ 6,580 from Nitin posted to his account as ₹ 8,560 .
vii. Cash sale to Abhi of ₹ 30,000 posted as ₹ 3,000 .
fiii. Debit balance of ₹ 5,000 was carried forward as a credit balance in Ritesh's Account.
ix. Credit purchase of furniture ₹ 30,000 from Rohit was posted as ₹ 3,000 .

Binny Textiles Ltd. which depreciates its machinery at 20% p.a. on diminishing balance method, purchased a machine for ₹ 6,00,000 on 1st October, 2010. It closes its books on 31st March every year. On 1st January, 2012, it purchased another machine for ₹ 1,50,000. On 1st December, 2012, one-third of the machinery purchased on 1st October, 2010 was sold for ₹ 80,000.
You are required to prepare Machinery A/c and Provision for Depreciation A/c for the relevant years.

The following balances appear in the books of Y Ltd:

	₹
Machinery A/c as on 1-4-2014	8,00,000
Provision for Depreciation A/c as on 1-4-2014	3,10,000

On 1-7-2014, a machinery which was purchased on 1-4-2011 for ₹ 1,20,000 was sold for ₹ 50,000 and on the same date another machinery was purchased for ₹ 3,20,000.
The firm has been charging depreciation at 15% p.a. on Original Cost Method and closes its books on 31st March every year. Prepare the Machinery A/c and Provision for Depreciation A/c for the year ending 31st March 2015.

On Jan. 1, 2017 Neha sold goods for ₹ 20,000 to Muskan and drew upon her a bill of exchange payable after two months. One month before the maturity of the bill Muskan approached Neha to accept the payment against the bill at a rebate @12% p.a. Neha agreed to the request of Muskan and Muskan retired the bill under the agreed rate of rebate.
Journalise the above transactions in the books of Neha and Muskan.

Record the following transactions in a Petty Cash Book with suitable columns. The book is kept on imprest system, amount of imprest being ₹ 4,000.

2017
April 1	Petty cash in hand ₹ 540, Received cash to make-up the imprest
	Paid for office cleaning ₹ 100
April 4	Paid railway fare ₹ 320, bus fare ₹ 280, wages ₹ 150
April 5	Bought shorthand note books for office ₹ 370
April 7	Paid carriage on parcels ₹ 150, paid for wages ₹ 220
April 10	Bought stamps for ₹ 300, envelopes for ₹ 450 and an accounts register for ₹ 400
April 12	Paid for repairs ₹ 200, gave tips to office peon ₹ 150
April 13	Gave charity ₹ 100, served tea to customers ₹ 250
April 15	Paid for wages ₹ 160, rewards to servant ₹ 100