Recording of Transactions - 2 — Account STD 11 Commerce — Question

Mr. Gopal started business for buying and selling of readymade garments with ₹ 8,00,000 as an initial investment. Out of this he paid ₹ 4,00,000 for the purchase of garments and ₹ 50,000 for furniture and ₹ 50,000 for computers and the remaining amount was deposited into the bank. He sold some of the ladies and kids garments for ₹ 3,00,000 for cash and some garments for ₹ 1,50,000 on credit to Mr. Rajesh.
Subsequently, he bought men's garments of ₹ 2,00,000 from Mr. Satish. In the first week of the next month, a fire broke out in his office and stock of garments worth ₹ 1,00,000 was destroyed. Later on, some garments which cost ₹ 1,20,000 were sold for ₹ 1,30,000. Expenses paid during the same period were ₹ 15,000. Mr. Gopal withdrew ₹ 20,000 from business for his domestic use.
From the above, answer the following:

1. What is the amount of capital with which Mr. Gopal started the business?
2. What fixed assets did he buy?
3. What is the value of the goods purchased?
4. Who is the creditor and state the amount payable to him?
5. Who is the debtor and what is the amount receivable from him?
6. What is the total amount of expenses?
7. What is the amount of drawings of Mr. Gopal?

From the following particulars, prepare a Bank Reconciliation Statement of Sh. Yadav on 31st December 2014:-
Balance as per Pass Book on 31st December, 2014 is ₹ 11,000. Cheques for ₹ 6,200 were issued during the month of December but of these cheques for ₹ 900 were presented in the month of January, 2015 and one cheque for ₹ 500 was not presented for payment. Cheque and cash amounting to ₹ 5,700 were deposited in bank during December but credit was given for ₹ 4,700 only. A customer had deposited ₹ 850 into the bank directly. The bank has credited the merchant for ₹ 150 as interest and has debited him for ₹ 30 as bank charges, for which there are no corresponding entries in Cash Book.

On 31st December, 2014 my Cash Book showed a credit balance of ₹ 8,800. I had paid into Bank three cheques amounting to ₹ 6,000 on 24th December of which I found ₹ 3,200 have been credited in the Pass Book under date 5th January 2015. I had issued cheques amounting to ₹ 8,000 before 31st December of which I found ₹ 2,500 have been debited in the Pass Book after 1st January 2015. I find a debit of ₹ 50 in respect of bank charges in the Pass Book which I have adjusted in the Cash Book on 31st Dec. There is a credit of ₹ 360 for interest on securities in the Pass Book which remains to be adjusted. A cheque of ₹ 1,200 deposited into bank has been dishonoured.
Prepare Bank Reconciliation Statement as on 31st Dec. 2014.

How does a Cash Book serve 'Dual Purpose?

Explain the need for drawing up the special purpose books.

Enter the following transactions in a single column Cash Book:

2023		₹
Mar-01	Commenced business with Cash	20,000
Mar-02	Bought goods for Cash	5,000
Mar-05	Sold goods for Cash	4,000
Mar-10	Goods purchased from Rajesh on Credit	10,000
Mar-13	Paid to Rajesh	7,000
Mar-15	Cash Sales	8,000
Mar-18	Purchased furniture for Cash	6,000
Mar-20	Paid Wages	380
Mar-24	Paid Rent	400
Mar-26	Received Commission	600
Mar-28	Withdrew for personal expenses	1,000
Mar-31	Paid Salary	900

On 1st January, 2019, Ajay sold goods to Bhushan for ₹ 50,000. Ajay draws a bill of exchange for two months for the amount due which Bhushan accepts and returns it to Ajay. Bhushan met the bill on the due date. Pass Journal entries in the books of Ajay and Bhushan.

Give two differences between provisions and reserves.

My bank Pass Book showed an overdraft of ₹ 6,500 on 31st March, 2017. This does not agree with the Cash Book balance. From the following particulars ascertain the Cash Book balance:-
Cheques amounting to ₹ 15,000 were paid into bank in March, out of which, it appears, only cheques amounting to ₹ 4,500 were credited by bank. Cheques issued during March amounted in all to ₹ 11,000. Out of these cheques for ₹ 3,000 were unpaid on 31st March, 2017. The Pass Book stands debited with ₹ 150 for interest and with ₹ 30 for bank charges. The bank had paid the annual subscription of ₹ 100 to my club according to my instructions. The entries for interest, bank charges and subscription have not yet been made in Cash Book.

Record the following transactions in the Sales Book of M/s Ajanta Electronics, Ranchi (Jharkhand) assuming CGST @ 9% and SGST @ 9%.

2018
March 1	Sold to Vandna Electronics, Kolkata (West Bengal) Vide Invoice No. 1255
	50 Musical Alarm Clocks @ ₹ 800 each
	40 Wall Clocks @ ₹ 500 each
	Trade Discount 20%
March 10	Sold to Mohan Watch Company, Patna (Bihar) Vide Invoice No. 1256
	25 Deluxe Wall Clocks @ ₹ 800 each
	Trade Discount 10%
March 15	Sold to Superior Watch Company, Ranchi Vide Invoice No. 1257
	75 Deluxe Wall Clocks @ ₹ 800 each
	40 Super Deluxe Wall Clocks @ ₹ 1,000 each
	Trade Discount 15%
March 20	Sold to Modern Electronics, Ranchi Vide Cash Memo No. 5234 100% Musical Alarm Clocks @ ₹ 800 each Trade Discount 20%