Basic Accounting Terms — Account STD 11 Commerce — Question

Oswal Woollen Mills, Amritsar (Punjab) sold shawls to Gupta Shawls, Jaipur as per details:
Sold 100 shawls @ ₹ 200 per shawl on 4th January, 2019, IGST is levied @ 12%. Trade Discount 25% and Cash Discount 5% if full payment is made within 14 days. Gupta Shawls sent 50% of the payment on 14th January, 2019 and balance payment on 10th February, 2019. Pass Journal entries.

What are Errors of Principle?

Show the accounting equation on the basis of the following transactions and present a Balance Sheet of the last new equation balance:

		(₹)
i.	Mohan commenced business with	70,000
ii.	Purchased goods on Credit	14,000
iii.	Withdrew for private use	1,700
iv.	Purchased goods for Cash	10,000
v.	Paid wages	300
vi.	Paid to Creditors	10,000
vii.	Sold goods on Credit at par	15,000
viii.	Sold goods for Cash (cost price was ₹ 3,000)	4,000
ix.	Purchased furniture for cash	500

State with reasons whether the following are capital or revenue expenditures:

1. A new machine is purchased for ₹ 60,000, ₹ 800 were spent on its carriage and ₹ 1,500 were paid as wages for its installation.
2. A sum of ₹ 10,000 was spent on painting the new factory.
3. ₹ 5,000 paid for the erection of a new machine.
4. ₹ 2,000 were spent on repairs before using a second hand generator purchased recently.
5. ₹ 1,500 were spent on the repair of a machinery.
6. ₹ 10,000 was paid as brokerage on issue of shares and other expenses of issue were ₹ 25,000.

Show the Accounting Equation on the basis of the following and present a balance sheet on the last new equation balances:

Distinguish between Reserve and Provision on the basis of:

1. Appropriation or charge.
2. Financial Position.
3. Distribution.

Open a 'T' shape account of creditor, 'Rakesh', and write the following transactions on the proper side:

S.No		₹
i	Goods purchased from Rakesh on credit	50,000
ii	Goods returned to Rakesh for	5,000
iii	Paid to Rakesh	20,000
iv	Purchase goods from Rakesh on credit	10,000

'Accounting Standards have been evolved to improve the reliability and credibility of Financial Statements. Accounting Standards provide the solution in case of conflicts among various groups'. In the light of this statement, enumerate the objectives of Accounting Standards.

Prepare Return Inward Journal (Book) from the following transactions of M/s Bansal Electronics for July 2017:

	2017 July	₹
04	M/s Gupta Traders returned the goods	1,500
10	Goods returned from M/s Harish Traders	800
18	M/s Rahul Traders returned the goods not as per specifications	1,200
28	Goods returned from Sushil Traders	1,000