Depreciation, Provisions and Reserves — Account STD 11 Commerce — Question

Explain the meaning of any three of the following terms:
Full Disclosure.

Journalise the following transactions in the books of Bhushan Agencies:

1. Received from Bharat cash ₹ 20,000, allowed him discount of ₹ 500.
2. Received from Vikas ₹ 35,000 by cheque, allowed him discount of ₹ 750.
3. Received from Akhil ₹ 38,000 in settlement of his dues of ₹ 40,000 in cash.
4. Received from Amrit ₹ 50,000 by cheque on account against dues of ₹ 60,000.
5. Paid cash ₹ 40,000 to suresh, availed discount of 2%.
6. Paid by cheque ₹ 25,000 to Mehar and settled her dues of ₹ 26,000.
7. Paid ₹ 25,000 to Yogesh by cheque on account.
8. Purchased goods costing ₹ 1,00,000 against cheque and availed discount of 3%.
9. Purchased goods costing ₹ 60,000 from Akash & Co., paid 50% immediately availing 3% discount.
10. Sold goods of ₹ 30,000 against cheque allowing 2% discount.
11. Sold goods of ₹ 60,000 to Vimal received 50% of due amount allowing 2% discount.

Trial balance of Madan did not agree and he put the difference to suspense account. He discovered the following errors:

1. Sales return book overcast by ₹ 800.
2. Purchases return to Sahu ₹ 2,000 were not posted.
3. Goods purchased on credit from Narula ₹ 4,000 though taken into stock, but no entry was passed in the books.
4. Installation charges on new machinery purchased ₹ 500 were debited to sundry expenses account as ₹ 50.
5. Rent paid for residential accommodation of madam (the proprietor) ₹ 1,400 was debited to Rent account as ₹ 1,000. Rectify the errors and prepare suspense account to ascertain the difference in trial balance.

On 1st April, 2010, Plant and Machinery was purchased for ₹ 1,20,000. New machinery was purchased on 1st Oct., 2010, for ₹ 50,000 and on 1st July, 2011, for ₹ 25,000. On 1st January, 2013, a machinery of the original value of ₹ 20,000 which was included in the machinery purchased on 1st April, 2010, was sold for ₹ 6,000. Prepare Plant & Machinery A/c for three years after providing depreciation at 10% p.a. on Straight Line Method. Accounts are closed on 31st March every year.

On Jan. 15, 2017, Kusum sold goods for ₹ 30,000 to Pushpa and drew upon her three bills of exchanges of ₹ 10,000 each payable after one month, two months and three months respectively. The first bill was retained by Kusum till its maturity. The second bill was endorsed by her in favour of her creditor Khushboo and the third bill was discounted by her immediately @ 6% p.a. All the bills were met by Pushpa. Journalise the above transactions in the books of Kusum and Pushpa.

A Company purchased a machinery for ₹ 50,000 on 1st Oct., 2016. Another machinery costing ₹ 10,000 was purchased on 1st Dec., 2017. On 31st March, 2019, the machinery purchased in 2016 was sold at a loss of ₹ 5,000. The Company charges depreciation at the rate of 15% p.a. on Diminishing Balance Method. Accounts are closed on 31st March every year.
Prepare Machinery account for 3 years.

Journalise the following trasactions:

		₹
1.	Charge depreciation on Machinery	20,000
2.	Salary due to Office Clerks	1,00,000
3.	Received cash for Bad-Debts written off last year	5,000
4.	Purchased goods from Ashok & Co. for ₹ 50,000 at 20% Trade Discount. Half the payment was made in cash.
5.	Issued cheque to Ashok & Co. in full settlement	19,500
6.	Paid Life Insurance Premium by cheque	6,000
7.	Proprietor used goods for household purposes	20,000
8.	Goods given free to a hospital out of business	10,000

From the following particulars, prepare Bank Reconciliation Statement as on 31st December, 2008:Debit balance as per Cash Book ₹ 10,000.

1. A cheque for ₹ 500 issued in favour of Karan has not been presented for payment.
2. A bill for ₹ 700 retired by bank under a rebate of ₹ 20, the full amount of the bill was credited in the Cash Book.
3. A cheque for ₹ 295 deposited in the bank has been dishonoured.
4. A sum of ₹ 800 deposited in the bank has been credited as ₹ 80 in the Pass Book.
5. Payments side of the Cash Book has been undercast by ₹ 200.
6. A bill receivable for ₹ 1,000 (discounted with the bank in November 2008) dishonoured on 31st December, 2008.