Trial Balance and Errors — Account STD 11 Commerce — Question

What is the meaning of recording in terms of money?

What is a Capital Reserve? How is it different from a Revenue Reserve?
OR
Distinguish between 'Revenue Reserve' and a ‘Capital Reserve' on the basis of:

1. Source of creation.
2. Purpose.
3. Usage.

Give journal entries of M/s. Mohit traders; post them to the Ledger from the following transactions:

August, 2017		₹
1	Commenced business with cash	1,10,000
2	Opened bank account with H.D.F.C.	50,000
3	Purchased furniture	20,000
7	Bought goods for cash from M/s. Rupa Traders	30,000
8	Purchased good from M/s. Hema Traders	42,000
10	Sold goods for cash	30,000
14	Sold goods on credit to M/s. Gupta Traders	12,000
16	Rent paid	4,000
18	Paid trade expenses	1,000
20	Received cash from Gupta Traders	12,000
22	Goods return to Hema Traders	2,000
23	Cash paid to Hema Traders	40,000
25	Bought postage stamps	100
30	Paid salary to Rishabh	4,000

Explain the following:
Business Entity Concept.

Define a Promissory Note.

A machine was purchased on 1st April, 2013. The balance of this machine on 31st March, 2016 is ₹ 5,83,200. Depreciation is charged @ 10% p.a. on written down value method. What was the cost price of the machine on 1st April, 2013?

Mohan, the owner of a business receives an order for supply of goods worth ₹ 2,00,000. He has also received ₹ 25,000 against this order. Mohan wants to record it as a sale. Is Mohan correct in doing so?

Journalise the following transactions in the Journal of Navin Gupta & Sons.:

1. Out of Insurance premium paid this year, ₹ 15,000 is related to next year.
2. Credit purchases from Ram & Co. for ₹ 50,000. Cash discount will be received at 5% on payment of bill within 10 days.
3. Cash paid to Ram & Co. and discount availed of.
4. Paid Income Tax ₹ 20,000 by cheque.
5. Goods costing ₹ 2,00,000 sold for cash at a profit of 10%.
6. Purchased iron safe for ₹ 2,00,000 filing cabinet for ₹ 50,000 and Computer for ₹ 1,00,000.

State two demerits of Reducing Instalment Method of providing depreciation.

Journalise the following in the books of Som Nath & Sons:

2019
May 1	Purchased a Machinery for ₹ 1,00,000 and the payment was made by issuing a cheque from Proprietor's saving bank account.
May 4	Received an order from Chakravarti for goods of ₹ 4,00,000 alongwith a cheque of 10% of the order as advance.
May 8	Paid cash ₹ 8,000 to Dushyant and discount allowed by him ₹ 800.
May 10	Goods stolen by an employee (Sale Price ₹ 20,000; Cost ₹ 15,000).
May 15	Purchased stationery worth ₹ 8,000 for office use and ₹ 2,000 for personal use.
May 20	Manoj pays us ₹ 5,400 after deducting 10% for prompt payment.
May 28	Sold goods to Kuber costing ₹ 2,00,000 at 25% above cost less trade discount of 10% and cash discount of 5%. Kuber did not avail the cash discount.