Application of Computers in Accounting — Account STD 11 Commerce — Question

The following balances were extracted from the books of Modern Traders as at 31st March, 2017:

Prepare Final Accounts for the year ended 31st March, 2017 after taking into account the following:

1. Stock on 31st March, 2017 was valued at ₹ 15,000.
2. Goods costing ₹ 6,000 were sent to a customer on "Sale on Return basis" for ₹ 7,200 on 26th March, 2017 and had been recorded in the books as actual sales.
3. Provision for Doubtful Debts is to be maintained at 5% of the Debtors.
4. Prepaid Insurance was ₹ 100.
5. Provide Depreciation on Plant and Machinery @ 10% and on Furniture @ 5%.

On 1st April, 2015, A Ltd. purchased a machine for ₹ 2,40,000 and spent ₹ 10,000 on its erection. On 1st October, 2015 an additional machinery costing ₹ 1,00,000 was purchased. On 1st October, 2017, the machine purchased on 1st April, 2015 was sold for ₹ 1,43,000 and on the same date, a new machine was purchased at cost of ₹ 2,00,000.
Show the Machinery Account for the first four financial years after charging Depreciation at 5% p.a. by the Straight Line Method.

From the following Trial Balance of Mr. Ramesh, you are required to complete the missing figures of Trading Account, Profit and Loss Account and Balance Sheet for the year ending 31st March, 2019:
Adjustments:

1. Amount of Purchases includes a machine purchased on 1st October, 2018 for ₹ 4,000 and wages include ₹ 2,000 paid for its installation.
2. Provide for depreciation on Machinery @ 10%.
3. Stock on 31st March, 2019 was worth ₹ 40,925.
4. Salaries unpaid ₹ 800 and rent is paid up to 30th June, 2019.
5. Write off further bad debte ₹ 400 and create a provision of 5% debtors for doubtful debts.
6. Prepaid insurance ₹ 300.

Pass the necessary Journal entries to rectify the following errors:

1. ₹ 15,000 paid as wages for the construction of office building debited to Salaries Account.
2. ₹ 20,000 spent on the purchases of material for the construction of building debited to Purchases Account.
3. ₹ 50,000 spent on the extension of building was debited to Building Repairs Account.
4. ₹ 25,000 spent on whitewash of a new building was charged to Building Repairs Account.
5. ₹ 1,000 paid as installation charges for newly purchased second hand machinery posted to Cartage Account.
6. ₹ 10,000 paid as repairing charges on the reconditioning of a newly purchased second hand machinery debited to General Expenses Account.
7. ₹ 5,000 paid as repairing charges of an existing machine in use charged to Machinery Account.
8. ₹ 10,000 paid by cheque for a printer was charged to the Office Expense Account.

Write a note on relationship between Accounting Information System, Manufacturing Information System and Human Resource System.

From the following information relating to the business of Abhay who keeps books on Single Entry System, ascertain the profit or loss for the year 2018-19:
Abhay withdrew ₹ 4,100 during the year to meet his household expenses. He introduced ₹ 300 as fresh capital on 15th January, 2019. Machinery and Furniture are to be depreciated at 10% and 5% p.a. respectively.

From the following transactions of a concern, prepare the Machinery Account for the year ended 31st March, 2019:

1st April, 2018	:	Purchased a second-hand machinery for ₹ 40,000.
1st April, 2018	:	Spent ₹ 10,000 on repairs for making it serviceable.
30th September, 2018	:	Purchased additional new machinery for ₹ 20,000.
31st December, 2018	:	Repairs and renewal of machinery ₹ 3,000.
31st March, 2019	:	Depreciate the machinery at 10% p.a.

Computerised accounting system is the best form of accounting system. Do you agree? Comment.