Journal — Account STD 11 Commerce — Question

A sold goods to B for ₹ 60,000 Charging IGST @18% and immediately drew a bill on Bwho duly accepted the same. A endorsed the bill to C. C endorsed it to his creditor D. Ddiscounted the bill for ₹ 68,000. On the date of maturity, the bill was dishonoured and Bank paid noting charges amounting to ₹ 200.
Show Journal entries in the books of all the parties to record these transactions.

Write a short note on Double Entry System of Accounting.

Kapil Ltd. purchased a machinery on July 01, 2011 for ₹ 3,50,000. It purchased two additional machines, on April 01, 2012 costing ₹ 1,50,000 and on October 01, 2012 costing ₹ 1,00,000. Depreciation is provided @10% p.a. on straight line basis. On January 01, 2013, first machinery become useless due to technical changes. This machinery was sold for ₹ 1,00,000. prepare machinery account for 4 years on the basis of calendar year.

Following is the Trial Balance as at 31st March, 2015: Having prepared the Trial Balance, it was discovered that following transactions remained unrecorded:

1. Goods were sold on credit amounting to ₹ 40,000.
2. Paid to creditors ₹ 22,000 by cheque.
3. Goods worth ₹ 7,000 were returned to a supplier.
4. Paid salary ₹ 15,000 by cheque.

Required:

1. Pass Journal entries for the above mentioned transactions and post them into Ledger.
2. Redraft the Trial Balance.

What is Depreciation? What is the need for providing Depreciation?

A drew a bill of ₹ 1,000 on B for 3 months which was duly accepted by the latter. A endorsed the bill to C in full payment of his own acceptance to C for a like amount. C endorsed the bill to B.
Pass the Journal entries in the books of A, B and C.

On 1st April, 2015, furniture costing ₹ 55,000 was purchased. It is estimated that its life is 10 years at the end of which it will be sold for ₹ 5,000. Additions are made on 1st April 2016 and 1st October, 2018 to the value of ₹ 9,500 and ₹ 8,400 (Residual values ₹ 500 and ₹ 400 respectively). Show the Furniture Account for the first four years, if Depreciation is written off according to the Straight Line Method.

On Jan 01, 2016 Neha sold goods for ₹ 20,000 to Muskan and drew upon her a bill of exchange payable after two months. One month before the maturity of the bill Muskan approached Neha to accept the payment against the bill at a rebate @ 12% p.a. Neha agreed to the request of Muskan and Muskan retired the bill under the agreed rate of rebate. Journalise the above transaction in the books of Neha and Muskan.

Enter the following transactions in a Double Column Cash Book and Journal Proper and post them into Ledger∶

May 1	Balance of Cash in Hand ₹ 12,400; Bank Overdraft ₹ 36,000
May 3	Direct deposit by Mr. Ganesh in our bank account ₹ 10,000. Discount allowed ₹ 200
May 5	Issued a cheque of ₹ 7,700 to Mr. Suresh in full settlement of his account of ₹ 8,000
May 6	Received a cheque from X for ₹ 12,000. Discount allowed ₹ 500. This cheque was deposited into bank on 7th May
May 8	Received Cash ₹ 22,000 and cheque of ₹ 8,000 for cash sale
May 12	Cash sale ₹ 70,000 of which ₹ 55,000 banked
May 15	Cheque received on 8th May endorsed to Mr. Sunil. Discount received ₹ 150
May 20	Discounted a B/R of ₹ 10,000 at 1% through bank
May 24	Cheque received from X dishonoured, Bank debits ₹ 20 in respect of bank charges
May 25	Purchased goods for ₹ 50,000 at a trade discount of 10%. Payment was made in cash
May 26	Withdrew from bank ₹ 10,000 for office use and ₹ 2,000 for personal use
May 31	Interest debited by Bank ₹ 4,500

What is asset disposal account? Why is it prepared? Give journal entries for preparation of this account when an asset is disposed off.