Introduction to Accounting — Account STD 11 Commerce — Question

Rectify the following errors:

1. Sales book undercast by ₹ 300.
2. Purchases book undercast by ₹ 400.
3. Return Inwards book undercast by ₹ 200.
4. Return outwards book undercast by ₹ 100.

Explain how the following transactions would be recorded in a Cash Book with Cash and Bank Columns?
Dishonour of cheques deposited into Bank.

Journalise the following transactions in the books of Dixit & Sons.:

2018
March 2	Sold goods to Dilip of the list price of ₹ 62,000 for ₹ 60,000.
March 16	Purchased goods costing ₹ 2,00,000 from Hari & Co. Paid 75% immediately by cheque to avail 4% discount.
March 20	Sold goods to Vishal Traders costing ₹ 40,000 at 25% profit, allowing 10% trade discount and 10% cash discount. Received 80% payment immediately by cheque.
March 26	Sold goods to Brij & Co. costing ₹ 50,000 at 40% profit, allowing 10% trade discount and 5% cash discount. Brij & Co. paid the full amount by cheque and availed cash discount.

Darshan sold goods for ₹ 40,000 to Varun on 8.1.2017 and drew upon him a bill of exchange payable after two months. Varun accepted the bill and returned the same to Darshan. On the due date the bill was met by Varun. Record the necessary Journal entries in the books of Darshan and Varun in the following circumstances:
When the bill was retained by Darshan till the date of its maturity.
When Darshan immediately discounted the bill @6% p.a. with his bank.
When the bill was endorsed immediately by Darshan in favour of his creditor Suresh.
When three days before its maturity, the bill was sent by Darshan to his bank for collection.

Why assets are classified into current and non-current?

On 31st December, 2014, pass book shows debit balance of ₹ 7,500. From the following particulars, prepare a Bank Reconciliation Statement:

1. Cheques paid in for collection amounted to ₹ 20,600 but cheques of ₹ 7,800 were credited on 3rd January, 2015.
2. A cheque of ₹ 1,000 debited in cash book was omitted to be banked.
3. Cheques of ₹ 7,800 were drawn on 27th December of which cheques of ₹ 2,400 were cashed upto 31st December.
4. A cheque of ₹ 800 was banked and credited, but omitted to be recorded in cash book.
5. Bank charged interest on Overdraft ₹ 650.

Rectify the following errors:

1. The Sales Book has been totalled ₹ 1,000 short.
2. Goods worth ₹ 1,500 returned by Green and Co. have not been recorded anywhere.
3. Goods purchased worth ₹ 2,500 have been posted to the debit of the supplier, Gupta and Co.
4. Furniture purchased from Gulab and Co. worth ₹ 10,000 has been entered in Purchases Day Book.
5. Cash received from A ₹ 2,500 has not been posted in his account.

“Accounting Standards ensure the consistency and comparability of Financial Statements.” Explain.

Rectify the following errors:

1. The total of one page of Sales Book was carried forward as ₹ 371 instead of ₹ 317.
2. ₹ 540 received from Yatin was posted to the debit of his Account.
3. Purchases Returns Book was overcast by ₹ 300.
4. An item of ₹ 1,062 entered in Sales Return Book had been posted to the debit of customer who returned the goods.
5. ₹ 1,500 paid for furniture purchased had been charged to ordinary Purchase Account.

Name the books of original entry where the following transactions will be recorded with reasons thereof:

1. Goods purchased from Ram Lal for ₹ 5,000 on credit.
2. Provision for doubtful debts created @ 5% on debtors with books value of ₹ 10,000.
3. Defective goods sold to Babita on credit worth ₹ 4,000 were returned by her.
4. Purchased furniture on credit from Mr. Ratan Singh for ₹ 15,000 for use in the business.