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

Give two examples of entries which appear in a 'Journal Proper'.

Give the journal entries corresponding to the narration given below:

Identify the values involved in the assumption of going concern.

Journalise the following transaction in the books of Sanjana and post them into the ledger:

January, 2017		₹
1	Cash in hand	6,000
	Cash at bank	55,000
	Stock of goods	40,000
	Due to Rohan	6,000
	Due from Tarun	10,000
3	Sold goods to Karuna	15,000
4	Cash sales	10,000
6	Goods sold to Heena	5,000
8	Purchased goods from Rupali	30,000
10	Goods returned from Karuna	2,000
14	Cash received from Karuna	13,000
15	Cheque given to Rohan	6,000
16	Cash received from Heena	3,000
20	Cheque received from Tarun	10,000
22	Cheque received from to Heena	2,000
25	Cash given to Rupali	18,000
26	Paid cartage	1,000
27	Paid salary	8,000
28	Cash sale	7,000
29	Cheque given to Rupali	12,000
30	Sanjana took goods for Personal use	4,000
31	Paid General expense	500

Open a 'T' shape account for machinery and put the following transactions on the proper side:

S.No		₹
i	Machinery purchased	40,000
ii	Machinery sold	10,000
iii	Machinery purchased	8,000
iv	Machinery discarded	14,000
v	Depreciation on machinery	1,000

Total of the Sales Book is posted to the credit side of the Sales Account in the General Ledger while individual account of customers is debited by the amount of their respective purchases. Is the above statement correct? Give reasons.

Following transactions took place in M/s Goodluck Computers. Prepare the Accounting Vouchers

2019	Particular	₹
Jan-1	Bought Computer Mouse (4 Nos.) vide Cash Memo No. 338*	6,000
Jan-8	Wages paid for the month of December, 2018	10,000
Jan-12	Purchased two Desktop Computers from M/s Computech for cash vide Cash Memo No. 170	32,500
Jan-25	Paid cash to Hari & Sons vide receipt No. 102 for repairs	1,000
Jan-28	Paid postage	200
Jan-30	Cash withdrawn from bank	10,000

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

Pass entries in the books of Krishnan of Bengaluru (Karnataka) in the following cases:

1.	Purchased goods from Karunakaran of Chennai for ₹ 1,00,000. (IGST @18%)
2.	Sold goods to Ganeshan of Bengaluru for ₹ 1,50,000. (CGST @ 6% and SGST @ 6%)
3.	Sold goods to S. Nair of Kerala for ₹ 2,60,000. (IGST @18%)
4.	Purchased a Machinery for ₹ 80,000 from Surya Ltd. against cheque. (CGST @ 9% and SGST @ 9%)
5.	Paid rent ₹ 30,000 by cheque. (CGST @ 6% and SGST @ 6%)
6.	Purchased goods from Ram Mohan Rai of Bengaluru for ₹ 2,00,000. (CGST @ 6% and SGST @ 6%)
7.	Paid insurance premium ₹ 10,000 by cheque. (CGST @ 9% and SGST @ 9%)
8.	Received commission ₹ 20,000 by cheque which is deposited into bank. (CGST @ 9% and SGST @ 9%)
9.	Payment made of balance amount of GST.

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.

Original cost of a Machinery ₹ 5,20,000; Salvage Value ₹ 20,000. What will be the amount of depreciation for second year according to diminishing balance method @ 10% p.a.