Trial Balance and Rectification of Errors — Account STD 11 Commerce — Question

What do you mean by posting?

Open a 'T' shape account of creditor, 'Rakesh', and write the following transactions on the proper side:

S.No		₹
i	Goods purchased from Rakesh on credit	50,000
ii	Goods returned to Rakesh for	5,000
iii	Paid to Rakesh	20,000
iv	Purchase goods from Rakesh on credit	10,000

Raghunath had the following transactions in an accounting year:

1. Commenced business with cash ₹ 50,000.
2. Paid into bank ₹ 10,000.
3. Purchased goods for cash ₹ 20,000 and credit ₹ 30,000.
4. Sold goods for cash ₹ 40,000 costing ₹ 30,000.
5. Rent paid ₹ 500.
6. Rent outstanding ₹ 100.
7. Bought furniture ₹ 5,000 on credit.
8. Bought refrigerator for personal use ₹ 5,000.
9. Purchased motorcycle for cash ₹ 20,000.

Create an Accounting Equation to show the effect of the above and also show his Balance Sheet.

Pass Journal entries for the following transactions:

1. Purchased Machinery for ₹ 20,000 and paid ₹ 200 for its carriage.
2. Received a cheque fo ₹ 4,850 from X in full settlement of his account of ₹ 5,000. Cheque was immediately deposited into bank.
3. Received by cheque a first and final payment of 60 paise in a ₹ from Y who owed us ₹ 10,000.
4. Sold goods to Z for ₹ 10,000 at a trade discount of 20%. Next day a cheque was received from him after deducting 5% cash discount. Cheque was immediately deposited into Bank.
5. Goods costing ₹ 20,000 sold to Manoj at a profit of 20% on cost less 10% trade discount.

Give one example of error of Omission?

Distinguish between revenue expenditure and capital expenditure.

What are ‘Books of Original Entry'?

What does the Balance of Suspense Account indicate? How is the balance of Suspense Account treated?

Pass Journal entries in the books of Hari Shankar & Co. from the following:

2017		₹
April 1	Commenced business with cash	50,000
April 2	Purchased goods from Subhash	20,000
April 4	Sold goods to Ramnath	15,000
April 6	Ramnath returned defective goods	1,000
April 10	Received cash from Ramnath and	13,800
	Discount allowed	200
April 12	Gopal sold goods to us	10,000
April 14	Paid to Gopal in full settlement of his account after deducting 5% discount
April 15	Paid Rent	10,000
April 16	Paid Rent of Hari Shankar's residence	5,000
April 18	Purchased goods for cash from Govind for ₹ 6,000 at 20% trade discount
April 20	Purchased goods from Govind for ₹ 10,000 at 20% trade discount
April 24	Paid to Govind ₹ 7,850 in full settlement of his account
April 25	Paid to Subhash ₹ 4,750 discount received ₹ 250
April 30	Paid wages ₹ 400, Salaries ₹ 4,000, Advertisement expenses ₹ 800 and Trade expenses ₹ 1,000

Calculate the due dates of the bills in the following cases:

	Date of the Bills	Period
I.	1st February, 2017	2 months
II.	31st January, 2017	3 months
III.	30th September, 2017	2 months
IV.	30th September, 2017	3 months
V.	29th December, 2017	2 months
VI.	31st December, 2017	2 months
VII.	15th July, 2017	30 days
VIII.	27th January, 2016	1 month