Capital and Revenue — Account STD 11 Commerce — Question

A owed B ₹ 8,000. He gave a bill for the same on 1st August, 2018 payable after 4 months at the Bank of India, Chandni Chowk, Delhi. Immediately after receiving the bill, B endorsed it to C in payment of his debt. On 1st September, C discounted the bill at 12% p.a. The bill is met on due date.
Pass the necessary Journal entries in the books of A, B and C.

Complete the following Bank Reconciliation Statement:

Journalise the following transactions of Mr. Rahul:

2019		₹
Jan. 1	Rahul started business with cash	1,00,000
Jan. 2	Paid into bank	60,000
Jan. 3	Bought goods from M/s. Singh & Co.	20,000
Jan. 3	Paid cartage	300
Jan. 4	Purchased furniture	2,000
Jan. 4	Placed an order for HP Printers for ₹ 15,000, amount advanced	5,000
Jan. 4	Purchased calculator	1,000
Jan. 4	Purchased computer through cheque	13,000
Jan. 6	Paid for postage	150
Jan. 8	Sold goods for cash	4,000
Jan. 9	Sold goods to M/s. Sharda & Co.	10,000
Jan. 9	Paid cartage	200
Jan. 15	Paid to M/s Singh & Co. on account	17,500
Jan. 25	Sold goods to M/s. Ray & Co.	5,600
Jan. 27	Received cheque from M/s. Sharda & Co. in full settlement of amount due from them	9,750
Jan. 31	Paid for electricity charges	1,000
Jan. 31	Paid salary	1,500
Jan. 31	Paid rent of building by cheque, half of the building is used by the proprietor for residential use	5,000
Jan. 31	Drew for private use	3,500

Enter the following transactions in the Journal of Suresh, Delhi who trades in ready-made garments:

2019		₹
April 1	Suresh paid into bank as Capital*	60,000
April 2	He bought goods and paid by cheque	24,000
April 3	Sold goods to Mukand & Co., Delhi	6,700
April 4	Sold goods for cash	10,900
April 5	Paid sundry expenses in cash*	3,000
April 8	Paid for office furniture and fittings by cheque	4,000
April 9	Bought goods from Ramesh & Bros., Faridabad (Haryana)	10,600
April 11	Returned goods to Ramesh & Bros.	1,500
April 12	Issued cheque to Ramesh & Bros. in full settlement*	9,500
April 30	Bank charged interest*	200
April 30	Borrowed from Ridhi @ 10% per annum interest*	50,000
April 30	Received from Mahendra on account*	6,000
April 30	Sold household furniture and paid the amount into business*	2,000
April 30	Sold goods costing ₹ 5,000 to Anita for cash at a profit of 20% on cost, less 20% trade discount
April 30	Sold goods costing ₹ 20,000 to Sunil at a profit of 20% on sale less 20% Trade Discount and paid cartage ₹ 150 (to be charged from customer).

CGST and SGST is levied @ 6% each on intra-state sale and purchase. IGST is levied @ 12% on inter-state sale and purchase. Out of the above, transactions marked with (*) are not subject to levy of GST.
[Hint: Household furniture is personal asset. When it is sold GST will not be levid. Since amount realised is invested in the firm, Suresh's Capital Account will be credited.}

Fill in the missing information in the following journal entries:

Prepare a Cash Book with Cash and Bank Columns from the following particulars:

2017		(₹)
Feb. 1	Cash in Hand ₹ 14,800; Bank Overdraft ₹ 32,700
Feb. 4	Sold goods, received cheque (deposited same day)	4950
Feb. 5	Sold goods to Navin on Credit	10,000
Feb. 8	Received from Navin a cheque for ₹ 9,500 in settlement of his account.
Feb. 10	Sold goods to Murlidhar on Credit	6,000
Feb. 12	Cheque received from Navin endorsed to Praveen in full settlement of his account	9,800
Feb. 15	Received cheque from Ram	12,800
	Allowed him discount	200
Feb. 16	Paid into Bank (including Ram's cheque)	15,000
Feb. 18	Cheque from Ram returned dishonoured and bank debits our account in respect of charges on this cheque ₹ 20. Discount not withdrawn.
Feb. 19	Received the amount of returned cheque and bank charges in cash from Ram.
Feb. 20	Instructed the bank to issue a bank draft for ₹ 5,000 in favour of Shyam. Bank charged ₹ 40 for issuing the draft.
Feb. 22	Murlidhar settled his account by means of a cheque for ₹ 6,200; including ₹ 200 as the interest charged from him. Lodged the cheque into bank.
Feb. 24	Paid ₹ 5,000 by cheque for cash purchases.
Feb. 25	Sudhir who owed us ₹ 8,000 became bankrupt and paid us 50 paise per rupee.
Feb. 28	Paid salary to Manohar Lal	3,000
Feb. 28	Banked	20,000

On 30th June, 2014, the bank column of Mohan Kapoor's Cash Book showed a debit balance of ₹ 12,000. On checking the Cash Book with bank statement you find that:-

1. Cheques paid into Bank ₹ 8,000, but out of these only cheques of ₹ 6,500 were cleared and credited by the Bankers upto 30th June.
2. Cheques of ₹ 9,200 were issued but out of these only cheques of ₹ 7,000 were presented for payment upto 30th June.
3. The receipt column of the Cash Book has been undercast by ₹ 200.
4. The Pass Book shows a credit of ₹ 330 as interest on investments collected by bankers and debit of ₹ 60 for bank charges.
5. On 29th June a Customer deposited ₹ 3,000 direct in the bank account but it was entered only in the Pass Book.

Prepare a Bank Reconciliation Statement.

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

X sold goods to Y on 1.3.2017 for ₹ 12,000 and drew upon Y a bill of exchange for the same amount payable after two months. X immediately discounted the bill with his bank at 9% p.a. The maturity date of the bill was a non business day (holiday), therefore, X had to present the bill as per the provisions of the Indian Instruments Act, 1881. The bill was dishonoured by Y and X paid ₹ 45 as noting charges. Y settled the claim of X five days after the dishonour of the bill by a cheque which included interest @ 12% for the term of the bill.
Journalise the above transactions in the books of X and Y and prepare Y's account in the books of X and X's account in the books of Y.