Bills of Exchange — Account STD 11 Commerce — Question

Pass Journal entries in the books of Raghunath Bros. from the following transactions:

2016
June 1	Raghunath Bros. started business with cash ₹ 80,000; Goods ₹ 40,000 and furniture ₹ 20,000
June 2	Sold goods to Nandlal of the list price of ₹ 20,000 at trade discount of 10%
June 4	Nandlal returned goods of the list price of ₹ 4,000
June 8	Received from Nandlal ₹ 14,150 in full settlement of his account
June 10	Purchased goods from Brij Mohan of the list price of ₹ 10,000 at 15% trade discount
June 13	Returned goods to Brij Mohan of the list price of ₹ 1,000
June 16	Settled the account of Brij Mohan by paying cash, under a discount of 4%
June 18	Purchased goods from Anil ₹ 5,000, Sunil ₹ 10,000
June 19	Paid cash to Anil ₹ 1,900 and discount received ₹ 100
June 20	Paid ₹ 9,800 to Sunil in full settlement of his account
June 20	Bought a 'Table Fan' for ₹ 8,000 for the domestic use of Raghunath
June 25	Sold goods for cash of the list price of ₹ 8,000 at 10% trade discount and 3% cash discount
June 30	Paid Rent ₹ 8,000; Trade Expenses ₹ 7,000 and Travelling Expenses ₹ 3,800

Pass the necessary Journal entries to rectify the following errors:

1. Credit sale of ₹ 570 to Mohan was recorded as ₹ 750.
2. Credit sale of ₹ 850 to Sohan was recorded as sale to Mohan.
3. Credit sale of ₹ 850 to Meenu was recorded as sale to Meena as ₹ 580.
4. Credit sale of ₹ 850 to Ram was recorded in the Purchases Book.
5. Credit sale of old machinery to Sohan for ₹ 1,700 was entered in the Sales Book as ₹ 7,100.
6. Bill Receivable for ₹ 5,000 accepted by Mahinder recorded as acceptance given to Mahinder for ₹ 6,000.

Vishal sold goods for ₹ 7,000 to Manju on Jan 05, 2016 and drew upon her a bill of exchange payable after 2 months. Manju accepted Vishal’s draft and handed over the same to Vishal after acceptance. Vishal immediately discounted the bill with his bank @ 12% p.a. On the due date Manju met her acceptance. Journalise the above transactions in the books of Vishal and Manju.

On 1st July, 2016, Sohan Lal & Sons purchased a plant costing ₹ 60,000. Additonal plant was purchased on 1st January, 2017 for ₹ 40,000 and on 1st October, 2017, for ₹ 20,000, plus CGST and SGST @ 6% each. On 1st April, 2018, one-third of the plant purchased on 1st July, 2016, was found to have become obsolete and was sold for ₹ 6,000, charging CGST and SGST @ 6% each.
Prepare the Plant Account for the first three years in the books of Sohan Lal & Sons. Depreciation is charged @ 10% p.a. on Straight Line Method. Accounts are closed on 31st March each year.

Rectify the following errors found in the books of Mr. Aryan by passing entries:

1. The purchase of ₹ 610 from Kabir was entered into sales book but Kabir's personal account was rightly credited.
2. Sale of old furniture of ₹ 2,500 was credited to sales account as ₹ 250.
3. An item of ₹ 500 relating to prepaid insurance account was omitted to be brought forward from the previous year's books.
4. ₹ 220 discount received from a creditor had been duly entered in his account but not posted to discount received account.

On 1st April, 2015, a limited company purchased a Machine for ₹ 1,90,000 and spent ₹ 10,000 on its installation. At the date of purchase, it was estimated that the scrap value of the machine would be ₹ 50,000 at the end of sixth year.
Give Machine Account and Depreciation A/c in the books of the Company for 4 years after providing depreciation by Fixed Instalment Method. The books are closed on 31st March every year.

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.

Journalise the following transactions:

2017		₹
Jan. 1	Paid into bank for opening a Current Account	10,000
Jan. 3	Goods sold for ₹ 50,000 and the amount was deposited into the bank
Jan. 7	Amount withdrawn from bank	20,000
Jan. 10	Goods sold for Cash	15,000
Jan. 12	Amount deposited into bank	12,000
Jan. 14	Goods purchased and payment made by cheque.	25,000

Prepare Simple Cash Book from the following transactions of Simran, Delhi:

2019						₹
March 1					Simran commenced business with cash	65,000
March 3					Bought goods for cash, CGST and SGST paid @ 6% each	6,850
March 4					Paid cash to Mr. Mohan	950
March 6					Deposited in Bank	40,000
March 6					Paid for office furniture in cash, CGST and SGST paid @ 6% each	4,650
March 9					Sold goods for cash charged CGST and SGST @ 6% each	30,000
March 12					Paid wages in cash	1,200
March 13					Paid for Stationery, CGST and SGST paid @ 6% each	400
March 15					Sold goods for cash, charged CGST and SGST @ 6% each	25,000
March 17					Paid for miscellaneous expenses	450
March 19					Received cash from Mr. Trilok Chand	4,850
March 22					Purchased goods, CGST and SGST paid @ 6% each	2,500
March 22					Paid Salary	4,000
March 25					Paid rent, CGST and SGST paid @ 6% each	900
March 28					Paid electricity bill	350
March 29					Paid for advertising, CGST and SGST paid @ 6% each	400
March 31					Paid into bank	25,000

Pass the rectification entries for the following transactions:

1. An amount of ₹ 2,000 received from Mohan on 1st April, 2019 had been entered in the Cash Book as having been received on 31st March, 2019.
2. The balance in the account of Rahim ₹ 1,000 had been written off as bad but no other account has been debited.
3. An addition in the Returns Inward Book had been cast ₹ 100 short.
4. A cheque for ₹ 200 drawn for the Petty Cash Account has been posted in the account of Asif.
5. A discounted Bill of Exchange for ₹ 20,000 returned by the firm's bank had been credited to the Bank Account and debited to Bills Receivable Account. A cheque was received later from the customer for ₹ 20,000 and duly paid.
6. Ramesh's Account was credited with ₹ 840 twice instead of once.