Model Paper 4 — Account STD 11 Commerce — Question

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

Open 'T' shape account for Furniture and write the following on the proper side∶

1. Furniture purchased for ₹ 50,000
2. Furniture sold costing ₹ 20,000
3. Furniture destroyed by fire ₹ 16,000
4. Furniture again purchased ₹ 32,000
5. Old furniture discarded ₹ 2,000
6. Value of furniture was reduced by ₹ 5,000

What is Trade Discount? Give an example.

State reasons for the following:
The balance in the cash column of the Cash Book is always a debit balance whereas that in the bank column can sometimes be credit.

Explain the double entry mechanism with an illustrative example.

State two demerits of Reducing Instalment Method of providing depreciation.

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

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Jan-30	Cash withdrawn from bank	10,000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.

Explain the concept of ‘secret reserve’.

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.