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

Original Cost of a Machinery ₹ 5,00,000; Salvage value ₹ 20,000; Expected useful life 10 years. What will be the amount of depreciation for the fourth year according to original cost method? Also specify the rate of depreciation.

What is Contra Entry?

Record journal entries for the following transactions in the books of Anudeep of Delhi:

1. Bought goods ₹ 2,00,000 from Kanta of Delhi (CGST @ 9%, SGST @ 9%)
2. Bought goods ₹ 1,00,000 for cash from Rajasthan (IGST @ 12%)
3. Sold goods ₹ 1,50,000 to Sudhir of Punjab (IGST @ 18%)
4. Paid for Railway Transport ₹ 10,000 (CGST @ 5%, SGST @ 5%)
5. Sold goods ₹ 1,20,000 to Sidhu of Delhi (CGST @ 9%, SGST @ 9%)
6. Bought Air-Condition for office use ₹ 60,000 (CGST @ 9%, SGST @ 9%)
7. Sold goods ₹ 1,50,000 for cash to Sunil to Uttar Pradesh (IGST 18%)
8. Bought Motor Cycle for business use ₹ 50,000 (CGST 14%, SGST @ 14%)
9. Paid for Broadband services ₹ 4,000 (CGST @ 9%, SGST @ 0%)
10. Bought goods ₹ 50,000 from Rajesh, Delhi (CGST @ 9%, SGST @ 9%)

Prepare Bank Reconciliation Statement from the following:

		₹
(i)	Debit balance as per the Cash Book.	15,000
(ii)	Cheques deposited but not cleared.	1,000
(iii)	Cheques issued but not presented.	1,500
(iv)	Bank interest.	200

Name and describe the various books of original entrie.

Pass Journal entries of M/s Bhanu Traders, Delhi from the following transactions. Post them to the Ledger:

2019		₹
April 1	Commenced business with cash	1,50,000
April 2	Opened a bank account with PNB	50,000
April 3	Purchased furniture	20,000
April 7	Bought goods for cash from M/s. Rupa Traders, Delhi	30,000
April 8	Purchased goods from M/s. Hema Traders, Chandigarh	42,000
April 10	Cash sales	30,000
April 14	Sold goods on credit to M/s. Gupta Traders, Kolkata	12,000
April 16	Rent paid	4,000
April 18	Paid Electricity expenses	1,000
April 20	Received cash from Gupta Traders	12,000
April 22	Goods returned to Hema Traders	2,000
April 23	Cash paid to Hema Traders	40,000
April 25	Bought postage stamps	100
April 30	Paid salary to Mohan	4,000

Journalise the following transactions:

1. Purchased a Motor Car for ₹ 3,00,000 and paid ₹ 25,000 for its repair and renewal. Entire payment is made by cheque.
2. Received Rent ₹ 5,000.
3. Goods worth ₹ 20,000 were distributed as free samples.
4. Charge depreciation on Motor Car ₹ 32,500.
5. Rent due to Landlord ₹ 10,000 and Salary due to Clerks ₹ 80,000.
6. Charge interest on Capital ₹ 20,000.
7. ₹ 5,000 due from Sanjay Gupta are bad-debts.
8. Goods worth ₹ 50,000 were destroyed by fire.
9. ash ₹ 5,000 and goods worth ₹ 20,000 were stolen by an employee.

What is Accounting Cycle?

During the financial year 2018-19, Mohan had cash sales of ₹ 90,000 and credit sales of ₹ 60,000. His expenses for the year were ₹ 70,000 out of which ₹ 30,000 is still to be paid. Find out Mohan's income for 2018-19 following the Cash Basis of Accounting.

Classify the following into Capital, Revenue and Deferred Revenue expenditure, stating reasons in each case:

1. A sum of ₹ 32,000 has been spent on a machine as follows: (i) ₹ 20,000 for addition to double the output, (ii) ₹ 5,000 for repairs necessitated by negligence and (iii) ₹ 7,000 for replacement of worn-out parts.
2. Total expenditure on a cinema building during the year was ₹ 2,00,000 out of which 20% related to repairs and 80% represented improvements and additions.
3. Compensation paid to a retrenched employee for the loss of employment.
4. Second-hand furniture worth ₹ 40,000 was purchased and repairing of this furniture cost ₹ 15,000. The furniture was installed by own workmen-wages for this being ₹ 5,000.
5. A person was injured by the motor car of the company. ₹ 10,000 was paid to him by way of compensation.
6. Advertisement expenditure in special advertisement drive.