Bill of Exchange — Account STD 11 Commerce — Question

Rectify the following errors which were detected before preparing the Trial Balance:

1. Purchase book has been overcast by ₹ 1,000.
2. Purchase from Ram ₹ 20,000 has been omitted to be posted to his account.
3. Purchase from Shyam ₹ 15,000 has been posted to the debit side of his account.
4. Purchase from Ghanshyam ₹ 10,000 has been posted to his account as ₹ 1,000.
5. Purchase from Sita Ram ₹ 5,000 has been posted to his account as ₹ 50,000.

Show the accounting equation on the basis of the following transaction:

a.	Udit started business with: (i) Cash (ii) Goods	₹ 5,00,000 ₹ 1,00,000
b.	Purchased building for cash	₹ 2,00,000
c.	Purchased goods from Himani	₹ 50,000
d.	Sold goods to Ashu (Cost ₹ 25,000)	₹ 36,000
e.	Paid insurance premium	₹ 3,000
f.	Rent outstanding	₹ 5,000
g.	Depreciation on building	₹ 8,000
h.	Cash withdrawn for personal use	₹ 20,000
i.	Rent received in advance	₹ 5,000
j.	Cash paid to himani on account	₹ 20,000
k.	Cash received from Ashu	₹ 30,000

(Ans : Assets = Cash ₹ 2,92,000 + Goods ₹ 1,25,000 + Building ₹ 1,92,000 + Debtors ₹ 6,000 = 6,15,000: Laibilities = Creditors ₹ 30,000 + Outstanding Rent ₹ 5,000 + Accounts receiavable ₹ 5,000 + Capital ₹ 5,75,000 = ₹ 6,15,000)

Journalise the following:

1. Received a V.P.P. from Mohan Lal for ₹ 25,000. Sent a peon to collect it who paid ₹ 200 as cartage.
2. Received ₹ 1,000 from sales of old newspapers and ₹ 5,000 from sales of old chairs.
3. Goods given away as charity goods costing ₹ 7,000.
4. Received Cash from a debtor written off as bad-debt last year ₹ 20,000.
5. Sold goods costing ₹ 50,000 to Ashok on credit at a profit of 20% on cost.
6. Sold goods costing ₹ 1,00,000 for ₹ 1,40,000.
7. Provide ₹ 50,000 as interest on Capital.
8. Paid rent of building ₹ 60,000 by cheque. Half the building is used by the proprietor for residential purpose.
9. Outstanding salary at the end of the year ₹ 30,000.

Enter the following transactions in the Journal of Arun Govil & Co.

2018
June 1	Arun Govil & Co. paid into bank as capital ₹ 6,00,000.
Jane 3	Purchased goods from Mukesh of the list price of ₹ 2,00,000 at 10% trade discount.
June 4	One-fourth of the above goods returned to Mukesh for not being upto specifications.
June 6	Issued a cheque to Mukesh for the amount due to him after deducting 2% as cash discount.
June 7	Withdrew from bank ₹ 2,50,000 for office use and ₹ 10,000 for personal use.
June 10	Purchased a machinery for ₹ 1,00,000 and spent ₹ 5,000 on its installation. Payment for machinery was made by cheque and installation expenses were paid in cash.
June 12	Sold goods for ₹ 1,00,000 to Amar.
June 13	Amar clears his account by giving a cheque of ₹ 98,500. Cheque is immediately sent to bank.
June 15	Purchased stationery for personal use ₹ 3,000 and for office use ₹ 5,000.
June 20	Purchased land for ₹ 2,00,000 and paid 1% as brokerage and ₹ 15,000 as registration charges on it. Entire payment is made by Cheque.
June 30	Wages due to labourers ₹ 20,000 and salary due to the clerk ₹ 30,000.

Ganga Ltd. purchased a machinery on January 01, 2014 for ₹ 5,50,000 and spent ₹ 50,000 on its installation. On September 01, 2014 it purchased another machine for ₹ 3,70,000. On May 01, 2015 it purchased another machine for ₹ 8,40,000 (including installation expenses). Depreciation was provided on machinery @10% p.a. on original cost method annually on December 31. Prepare:

1. Machinery account and depreciation account for the years 2014, 2015, 2016 and 2017.
2. If depreciation is accumulated in provision for Depreciation account then prepare machine account and provision for depreciation account for the years 2014, 2015, 2016 and 2017.

Journalise the following transactions in the books of Afzal, Kolkata and post them to the Ledger:

2019		₹
Jan 1	Started business with cash	1,00,000
Jan 3	Bought goods on credit from Gupta & Co., Delhi	20,000
Jan 5	Cash sales	5,000
Jan 8	Cash purchases	8,000
Jan 10	Sold goods to Ahmed & Co., Lucknow	10,000
Jan 11	Deposited cash in bank	50,000
Jan 13	Purchased a computer for office	20,000
Jan 15	Took a loan from Mehboob	70,000
Jan 16	Goods returned by Ahmed & Co.	2,000
Jan 17	Purchased furniture from Mehfil Mart, Kolkata	10,000
Jan 18	Paid interest to Mehboob	2,000
Jan 19	Received claim from Ahmed & Co. for defects in goods supplied to them. Claim was accepted and rebate was allowed	1,000
Jan 22	Paid rent by cheque	2,000
Jan 24	Withdrew from bank	20,000
Jan 25	Sales of goods at counter after allowing trade discount of 10%	10,000
Jan 26	Goods purchased from Gupta & Co., Delhi were destroyed by accident	10,000
Jan 27	Advertisement expenses paid through bank	5,000
Jan 28	Ahmed & Co. settled their account by cheque	7,000
Jan 29	Paid the due amount to Gupta & Co. by cheque after availing discount of ₹ 800
Jan 31	Sold old newspapers	500

Abdulla sold goods to Tahir on Jan. 17, 2017 for ₹ 18,000. He drew a bill of exchange for the same amount on Tahir for 45 days. On the same date Tahir accepted the bill and returned it to Abdulla. On the due date Abdulla presented the bill to Tahir which was dishonoured. Abdulla paid ₹ 40 as noting charges. Five days after the dishonour of his acceptance Tahir settled his debt by making a payment of ₹ 18,700 including interest and noting charges.
Record the necessary journal entries in the books of Abdulla and Tahir. Also prepare Tahir's account in the books of Abdulla and Abdulla's account in the books of Tahir.

Mehak sold goods for ₹ 24,000 to Shally on July 31, 2017 and drew three bills for ₹ 6,000, ₹ 8,000 and ₹ 10,000 payable after two, three and four months respectively. The first bill was kept by Mehak with her till maturity date. She endorsed the second bill in favour of her creditor Kanak. The third bill was discounted on September 3, 2017 @ 12% p.a. from bank. The first and second bill were duly met on maturity but the third bill was dishonoured and the bank paid ₹ 150 as noting charges. On December 3, 2017 Shally paid ₹ 5,000 and noting charges in cash and accepted a new bill at two months after date for the balance amount plus interest ₹ 200. The new bill was met on maturity by Shally.
You are required to give the Journal Entries in the books of Mehak.

Azad Ltd. purchased furniture on October 01, 2014 for ₹ 4,50,000. On March 01, 2015 it purchased another furniture for ₹ 3,00,000. On July 01, 2016 it sold off the first furniture purchased in 2014 for ₹ 2,25,000. Depreciation is provided at 15% p.a. on written down value method each year. Accounts are closed each year on March 31. Prepare furniture account, and accumulated depreciation account for the years ended on March 31, 2015, March 31, 2016 and March 31, 2017. Also give the above two accounts if furniture disposal account is opened.

Enter the following transactions in a Two Column Cash Book:
Purchased goods for ₹ 1,00,000; IGST 18%; Payment made by Cheque

2016		₹
Dec. 1	Started business with cash	50,000
Dec. 2	Pays into Bank	29,000
Dec. 3	Received cheque from Raja & Co.	800
	Discount allowed	20
Dec. 5	Withdrew cash from bank for private use	240
Dec. 12	Sold goods for ₹ 1,50,000; Trade Discount 20%; IGST 18%; Payment received by Cheque
Dec. 14	Received cheque from Kamla	395
	Discount allowed	15
Dec. 16	Kamla's cheque endorsed to Bala in full settlement of her account of ₹ 425
Dec. 29	Paid rent by cheque	1,000
Dec. 30	Deposited into bank, balance of cash in excess of	450