Introduction to Accounting — Account STD 11 Commerce — Question

Pass Journal entry for purchase of goods by Amrit, Delhi from Add Gel Pens, Delhi for ₹ 15,000 less Trade Discount 10% and Cash Discount 3%. CGST and SGST is levied @ 6% each. Assume payment is made at the time of purchase.

On 1st January, 2019, Ajay sold goods to Bhushan for ₹ 50,000. Ajay draws a bill of exchange for two months for the amount due which Bhushan accepts and returns it to Ajay. Bhushan met the bill on the due date. Pass Journal entries in the books of Ajay and Bhushan.

Give a definition of Bill of Exchange and give its four characteristics.

“Revenue earned and cost of earning that revenue should be properly identified for a period." Explain this statement.

From the following transactions of a concern, prepare Machinery Account for the year ending 31st March, 2013:

2012
April 1	Purchased a second-hand machinery for ₹ 40,000.
April 1	Spent ₹ 10,000 on repairs for making it serviceable.
Sept. 30	Purchased additional new machinery for ₹ 20,000.
Dec. 31	Repairs and renewals of machinery ₹ 2,000.
2013
March 31	Depreciate the machinery at 10% p.a.

Raghav & Co. have two bank accounts, Account No. I and Account No. II. From the following particulars relating to Account No. I, find out the balance on that account on December 31, 2016 according to the Cash Book of the firm.

1. Cheques paid into bank prior to December 31, 2016, but not credited until after that date for ₹ 10,000.
2. Transfer of funds from Account No. II to Account No. I recorded by the bank on December 31, 2016 but entered in the Cash Book after that date for ₹ 8,000.
3. Cheques issued prior to December, 31 2016 but not presented until after that date for ₹ 7,429.
4. Bank charges debited by bank not entered in the Cash Book for ₹ 200.
5. Interest debited by the bank not entered in the Cash Book ₹ 580.
6. Overdraft as per Pass Book ₹ 18,990.

Briefly explain your understanding of IFRS.

A Trial Balance disclosed a difference of ₹ 417 placed on the credit side of the Suspense Account. Later on the following errors were located:

1. Goods worth ₹ 200 purchased from Sohan had been posted to his account as ₹ 250.
2. A purchase of furniture for ₹ 500 was recorded in the Purchases Book.
3. Instead of crediting Gian’s Account with ₹ 512, it was debited with ₹ 215.
4. Goods worth ₹ 130 returned by Gian were entered in the Sales Book and posted therefrom to the credit of Gian’s Personal Account.

Pass the rectifying entries and prepare a Suspense Account.

Prepare a Bank Reconciliation Statement in the books of Bharti as on 31st January 2017:

1. Balance as per Pass Book as on 31st January, 2017 was ₹ 62,500.
2. Cheque of ₹ 17,800 was issued by her on 28th January 2017 but this was not presented for payment till 31st January 2017.
3. A cheque of ₹ 4,000 issued to Mr. Rahim, was taken in the cash column.
4. A cheque of ₹ 15,000 was paid into bank but was omitted to be entered in the cash book.
5. The bank has charged ₹ 55 as its commission and has allowed interest ₹ 50.

In the following Bank Reconciliation Statement. determine the missing amount: