Bank Reconciliation Statement — Account STD 11 Commerce — Question

Original cost of a Machinery ₹ 5,20,000; Salvage Value ₹ 20,000. What will be the amount of depreciation for second year according to diminishing balance method @ 10% p.a.

Find out the due dates of the bills in the following cases:

	Date of the Bills	Period
I.	29th May, 2017	4 months
II.	31st March, 2017	1 month
III.	21st July, 2017	60 days
IV.	14th May, 2017	90 days
V.	28th January, 2016	1 month
VI.	31st January, 2016	1 month
	Emergency holiday 22nd September

On Feb. 6, 2017 A sold goods for ₹ 1,00,000 to B. B paid 40% immediately on which Aallowed a cash discount of ₹ 500. For the balance A drew a bill on B payable after 30 days. Due date of bill was a public holiday and the bill was met as per the provisions of Negotiable Instrument Act. Journalise the above transactions in the books of A and B.

What are the advantages of allowing Trade Discount? (Two points)

Prepare Journal from the transactions given below:

		₹
(a)	Cash paid for installation of machine	500
(b)	Goods given as charity	2,000
(c)	Interest charge on capital @ 7% p.a. when total capital were	70,000
(d)	Received ₹ 1,200 of a bad debts written-off last year.
(e)	Goods destroyed by fire	2,000
(f)	Rent outstanding	1,000
(g)	Interest on drawings	900
(h)	Sudhir Kumar who owed me ₹ 3,000 has failed to pay the amount. He pays me a compensation of 45 paise in a rupee.
(i)	Commission received in advance	7,000

A firm has stationery stock amounting to ₹ 400 as at the end of financial year. Accountant of the firm has written it off to Profit & Loss Account. Is he right in doing so?

Why fixed assets are not shown in the books at market value?

Prove that the Accounting Equation is satisfied in all the following transactions of Rajaram. Also prepare a Balance Sheet:

1. Started business with Cash ₹ 1,20,000.
2. Purchased a typewriter for Cash for ₹ 8,000 for office use.
3. Purchased goods for ₹ 50,000 for cash.
4. Purchased goods for ₹ 40,000 on credit.
5. Goods costing ₹ 60,000 sold for ₹ 80,000 on credit.
6. Paid for Rent ₹ 1,500 and for salaries ₹ 2,000.
7. Received ₹ 800 for Commission.
8. Withdrew for private use ₹ 5,000 in cash.

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?

What are the advantages of allowing Cash Discount? (Two points)