Bills of Exchange — Account STD 11 Commerce — Question

Prepare an Accounting Equation and Balance Sheet on the following basis:

1. Ajeet started business with cash ₹ 20,000.
2. He purchased furniture for ₹ 2,000.
3. He paid rent of ₹ 200.
4. He purchase goods on credit ₹ 3,000.
5. He sold goods (cost price ₹ 2,000) for ₹ 5,000 on cash.

Prepare the Vouchers to be recorded in the books of M/s Elegant Furnitures, New Delhi:

2019	Particular	₹
Jan-1	Bought furniture from Modern Furniture for cash vide Cash Memo No. 241*	7,500
Jan-8	Paid cash to Mani & Sons for purchase of 2 machines vide Cash Memo No. 1230*	5,000
Jan-20	Paid for conveyance	150
Jan-27	Sold old typewriter for cash vide cash receipt No. 314*	500

Transactions marked with * are subject to levy of CGST and SGST @ 6% each.

What do you mean by Suspense Account? When is it opened?

There was an error in the Trial Balance of Mr. Steel on 31st March, 2015, and the difference in Books was carried to a Suspense Account. On going through the Books you find that:

1. ₹ 5,400 received from Mr. A was posted to the debit of his account.
2. ₹ 1,000 being purchases return were posted to the debit of Purchases Account.
3. Discount received ₹ 2,000 was posted to the debit of Discount Account.
4. ₹ 2,740 paid for Repairs to Motor Car was debited to Motor Car Account as ₹ 1,740.
5. ₹ 4,000 paid to B was debited to A's Account.

Give Journal Entries to rectify the above errors and ascertain the amount transferred to Suspense Account on 31st March, 2015 by showing the Suspense Account, assuming that the Suspense Account is balanced after the above corrections.

Journalise the following transactions:

1. Purchased a Motor Car for ₹ 3,00,000 and paid ₹ 25,000 for its repair and renewal. Entire payment is made by cheque.
2. Received Rent ₹ 5,000.
3. Goods worth ₹ 20,000 were distributed as free samples.
4. Charge depreciation on Motor Car ₹ 32,500.
5. Rent due to Landlord ₹ 10,000 and Salary due to Clerks ₹ 80,000.
6. Charge interest on Capital ₹ 20,000.
7. ₹ 5,000 due from Sanjay Gupta are bad-debts.
8. Goods worth ₹ 50,000 were destroyed by fire.
9. ash ₹ 5,000 and goods worth ₹ 20,000 were stolen by an employee.

Fill up the missing information in the following journal entries:

“Every transaction has debit and credit aspects.” Explain.

A Company, which closes its books on 31st March every year, purchased on 1st July, 2010, machinery costing ₹ 30,000. It purchased further machinery on 1st January, 2011, costing ₹ 20,000 and on 1st October, 2011, costing ₹ 10,000. On 1st April, 2012, one-third of the machinery installed on 1st July, 2010, became obsolete and was sold for ₹ 3,000.
Show how the machinery account would appear in the books of the Company, it being given that machinery was depreciated by Diminishing Balance Method at 10% per annum. What would be the balance of Machinery Account on 1st April, 2013?

Enter the following transactions in proper Subsidiary Books, post them into Ledger Accounts, balance the accounts and prepare a Trial Balance:

2017
Jan. 1	Assets: Cash in hand ₹ 20,000; Debtors: Sri Gopal ₹ 15,000, Poonam & Co. ₹ 30,000; Stock ₹ 1,75,000, Machinery ₹ 1,20,000; Furniture ₹ 40,000
	Liabilities: Bank Overdraft ₹ 33,000; Creditors: Niranjan Lal ₹ 24,000, Bombay Trading Co. ₹ 16,000
Jan. 2	Purchased from Manohar Lal & Sons goods of the list price of ₹ 20,000 at 10% trade discount
Jan. 5	Returned to Manohar Lal & sons goods of the list price of ₹ 2,000
Jan. 10	Issued a Cheque to Manohar Lal & Sons in full settlement of their account
Jan. 12	Sold to Sri Gopal, goods worth ₹ 25,000
Jan. 15	Received Cash ₹ 10,000 and a Cheque for ₹ 8,000 from Sir Gopal. The Cheque was immediately sent to bank
Jan. 16	Withdrew for personal use: Cash ₹ 5,000 and goods ₹ 3,000
Jan. 17	Accepted a bill for 45 days drawn by Niranjan Lal for the amount due to him
Jan. 18	Acceptance received from Poonam & Co. for the amount due from them payable after 30 days
Jan. 19	Sold to Raghubir Brothers, goods valued ₹ 16,000
Jan. 20	Cash purchases ₹ 15,000
Jan. 22	Withdrew from bank fo office use ₹ 10,000
Jan. 23	Purchased from Bombay Trading Co., goods valued ₹ 24,000
Jan. 24	Sri Gopal returned goods worth ₹ 2,000
Jan. 25	Received from Raghubir Brothers ₹ 10,000
Jan. 27	Accepted a bill for ₹ 25,000 for 1 month drawn by Bombay Trading Co
Jan. 27	Paid Rent by Cheque ₹ 2,800
	Received Commission in Cash ₹ 800
Jan. 31	Paid salaries ₹ 5,000