Basic Accounting Terms — Account STD 11 Commerce — Question

Prepare a Purchase Book with atleast two items in it and show its posting.

Describe how debits and credits are used to analyse transactions.

Prepare a purchases return (journal) book from the following transactions for April 2017.

	2017 April	₹
05	Returned goods to M/s Kartik Traders	1,200
10	Goods returned to Sahil Pvt. Ltd.	2,500
17	Goods returned to M/s Kohinoor Traders. for list price₹ 2,000 less 10% trade discount.
28	Return outwards to M/s Handa Traders	550

Journalise the following transactions:

1. Sold goods to Brijesh of the list price of ₹ 10,000 at trade discount of 5%. Received full payment in cash.
2. Goods given away as charity ₹ 1,000.
3. Charge interest on capital of ₹ 5,00,000 @ 7% p.a.
4. Outstanding wages ₹ 3,000.
5. ₹ 5,000 due from Sunny are now bad debts.
6. ₹ 50,000 cash sales (of goods costing ₹ 40,000).

What do you mean by posting?

Rectify the following errors:

1. Purchases Book has been undercast by ₹ 1,000.
2. Credit sale to Anu Prakash ₹ 7,000 was recorded in Purchases Book.
3. Credit sale to Rahul ₹ 7,000 was recorded as ₹ 700.

Land and Buildings are shown at ₹ 10 Lac in the Balance Sheet of the business owned by Mr. Yuvraj. However, as per the certificate of Govt. approved valuer the realisable value of Land and Building is ₹ 200 Lac. Mr. Yuvraj wants to show the Land and Building at this value in his books. Can he do so?

Explain 'Comparability' as qualitative characteristics of accounting information.

On Feb. 6, 2017 A sold goods for ₹ 1,00,000 to B. B paid 40% immediately on which Aallowed a cash discount of ₹ 500. For the balance A drew a bill on B payable after 30 days. Due date of bill was a public holiday and the bill was met as per the provisions of Negotiable Instrument Act. Journalise the above transactions in the books of A and B.

Name and describe the various books of original entrie.