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

Open 'T' shape account of our creditor 'Raghubir' and write the following transactions on the proper side:

1. Purchased goods from Raghubir on credit for ₹ 50,000.
2. Returned goods to Raghubir for ₹ 5,000.
3. Paid to Raghubir ₹ 30,000.
4. Purchased goods from Raghubir on credit for ₹ 16,000.
5. Paid to Raghubir ₹ 20,000.

Journalise the following transactions in the books of Himanshu:

2017		₹
Dec.01	Business started with cash	75,000
Dec.07	Purchased goods for cash	10,000
Dec.09	Sold goods to Swati	5,000
Dec.12	Purchased furniture	3,000
Dec.18	Cash received from Swati in full settlement	4,000
Dec.25	Paid rent	1,000
Dec.30	Paid salary	1,500

Mukesh found that the Trial Balance did not agree. He found the following errors:

1. In the Sales Book for the month of January, total of Page No. 3 was carried forward to Page No. 4 as ₹ 1,000 instead of ₹ 1,200 and total of Page No. 7 was carried forward to Page No. 8 as ₹ 5,600 instead of ₹ 5,000.
2. Goods returned to Anshuka ₹ 10,000 were recorded in the Sales Book.
3. Bill Receivable for ₹ 800 from Riya was dishonoured and posted to the debit of Allowances Account.

Journalise the following transactions is the journal of M/s. Goel Brothers and post them to the ledger.

2017		₹
Jan. 01	Started business with cash	1,65,000
Jan. 02	Opened bank account in PNB	80,000
Jan. 04	Goods purchased from Tara	22,000
Jan.05	Goods purchased for cash	30,000
Jan.08	Goods sold to Naman	12,000
Jan.10	Cash paid to Tara	22,000
Jan.15	Cash received from Naman	11,700
	Discount allowed	300
Jan. 16	Paid wages	200
Jan. 18	Furniture purchased for office use	5,000
Jan. 20	Withdrawn from bank for personal use	4,000
Jan. 22	Issued cheque for rent	3,000
Jan. 23	Goods issued for house hold purpose	2,000
Jan. 24	Drawn cash from bank for office use	6,000
Jan. 26	Commission received	1,000
Jan. 27	Bank charges	200
Jan. 28	Cheque given for insurance premium	3,000
Jan. 29	Paid salary	7,000
Jan. 30	Cash sales	10,000

Fill in the missing information in the following journal entries:

Distinguish between Capital Expenditure and Revenue Expenditure.

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)

Describe the events recorded in accounting systems and the importance of source documents in those systems?

Explain the following briefly with appropriate example:
Conservation or Prudence Concept.