Accounting for Goods and Service Tax (GST) — Account STD 11 Commerce — Question

Mr. Gopal started business for buying and selling of readymade garments with ₹ 8,00,000 as an initial investment. Out of this he paid ₹ 4,00,000 for the purchase of garments and ₹ 50,000 for furniture and ₹ 50,000 for computers and the remaining amount was deposited into the bank. He sold some of the ladies and kids garments for ₹ 3,00,000 for cash and some garments for ₹ 1,50,000 on credit to Mr. Rajesh.
Subsequently, he bought men's garments of ₹ 2,00,000 from Mr. Satish. In the first week of the next month, a fire broke out in his office and stock of garments worth ₹ 1,00,000 was destroyed. Later on, some garments which cost ₹ 1,20,000 were sold for ₹ 1,30,000. Expenses paid during the same period were ₹ 15,000. Mr. Gopal withdrew ₹ 20,000 from business for his domestic use.
From the above, answer the following:

1. What is the amount of capital with which Mr. Gopal started the business?
2. What fixed assets did he buy?
3. What is the value of the goods purchased?
4. Who is the creditor and state the amount payable to him?
5. Who is the debtor and what is the amount receivable from him?
6. What is the total amount of expenses?
7. What is the amount of drawings of Mr. Gopal?

Rectify the following errors:

1. Furniture purchased for ₹ 10,000 wrongly debited to purchases account.
2. Machinery purchased on credit from Raman for ₹ 20,000 was recorded through purchases book.
3. Repairs on machinery ₹ 1,400 debited to machinery account.
4. Repairs on overhauling of secondhand machinery purchased ₹ 2,000 was debited to Repairs account.

Briefly appreciate the exact nature of accounting.

Balance as per passbook of Mr. Kumar is 3,000.

1. Cheque paid into bank but not yet cleared Ram Kumar ₹ 1,000 Kishore Kumar ₹ 500
2. Bank Charges ₹ 300
3. Cheque issued but not presented Hameed ₹ 2,000 Kapoor ₹ 500
4. Interest entered in the passbook but not entered in the cash book ₹ 100 Prepare a bank reconciliation statement.

Complete the following Rectification Entries:

From the following particulars, prepare a, bank reconciliation statement as at March 31, 2017.

1. Balance as per cash book ₹ 3,200
2. Cheque issued but not presented for payment₹ 1,800
3. Cheque deposited but not collected upto March 31, 2014 ₹ 2000
4. Bank charges debited by bank ₹ 150

Enter the following transactions in the Double Column Cash Book of M/s. Gupta Store:

2019		₹
June 1	Cash in Hand ₹ 800, Bank overdraft ₹ 5,700
June 7	Received a cheque from Bharati, discount allowed ₹ 150	3,250
June 9	Deposited the above cheque into Bank
June 15	Cheque received from Panna Lal	1,200
June 20	Bharati's cheque returned dishonoured
June 28	Panna Lal's cheque was endorsed to Kamal
June 30	Income tax paid by cheque	150

On April 01, 2010 Jain & Sons purchased a second hand plant costing ₹ 2,00,000 and spent ₹ 10,000 on its overhauling. It also spent ₹ 5,000 on transportation and installation of the plant. It was decided to provide for depreciation @ 20% on written down value. The plant was destroyed by fire on Oct. 31, 2013 and an insurance claim of ₹ 50,000 was admitted by the insurance company. Prepare plant account assuming that the company closes its books on March 31, every year.

Briefly explain your understanding of IFRS.

From the following items prepare a Bank Reconciliation Statement on 31st May 2015:

1. Bank balance as per Cash Book on 31st May 2015 ₹ 17,600.
2. Cash and cheques totalling ₹ 36,000 were sent to bank during May but one cheque of ₹ 11,800 was shown in the Pass Book on 2nd June.
3. As per instructions bankers have directly collected ₹ 4,100 from a customer but there is no mention of it in the Cash Book.
4. Three cheques for ₹ 10,000, ₹ 12,000 and ₹ 4,800 respectively were drawn on 27th May but the cheque for ₹ 4,800 was encashed on 1st June.
5. On 31st May bankers had debited ₹ 45 as bank charges but had intimated it on 3rd June.
6. ₹ 16,200 were withdrawn from bank on 25th May but there is no entry for it in the Cash Book.