Recording of Transactions - 2 — Account STD 11 Commerce — Question

Rectify the following errors found in the books of Mr. Aryan by passing entries:

1. The purchase of ₹ 610 from Kabir was entered into sales book but Kabir's personal account was rightly credited.
2. Sale of old furniture of ₹ 2,500 was credited to sales account as ₹ 250.
3. An item of ₹ 500 relating to prepaid insurance account was omitted to be brought forward from the previous year's books.
4. ₹ 220 discount received from a creditor had been duly entered in his account but not posted to discount received account.

Following balances were extracted from the books of Ravinder Associates as at 31st March, 2017: You are required to prepare the trial balance treating the difference as his capital.

Rohit has the following transactions:

a.	Commenced business with cash	₹ 1,50.000
b.	Purchased machinery on credit	₹ 40,000
c.	Purchased goods for cash	₹ 20,500
d.	Purchased car for personal use	₹ 80,000
e.	Paid to creditors in full settlement	₹ 38,000
f.	Sold goods for cash costing ₹ 5,000	₹ 4,500
g.	Paid rent	₹ 1,000
h.	Commission received in advance	₹ 2,000

(Ans: Assets = Cash ₹ 17,500 + Machine ₹ 40,000 + Goods ₹ 15,000 = ₹ 72,500; Liabilities = Commission ₹ 2,000 + Capital ₹ 70,500 = ₹ 72,500)

Enter the following transactions in Return Inward Book of M/s Kanitkar & Co. of Mumbai (Maharashtra) assuming CGST @ 2.5% and SGST @ 2.5% and post it into Ledger:

2018
Jan. 5	Goods returned to us by Giriraj & Co., Pune (Maharashtra) worth ₹ 40,000, less 10% trade discount
Jan. 10	Shah Brothers, Jaipur (Rajasthan) returned goods, being not according to sample ₹ 30,000
Jan. 16	Allowance claimed by Jai Singh & Co., Mathura (U.P) on account of a mistake in the invoice ₹ 10,000
Jan. 20	Good returned by Gopalsons, Mumbai being defective ₹ 20,000

Prepare an Accounting Equation from the following:

1. Started business with cash ₹ 50,000 and goods ₹ 30,000.
2. Purchased goods for cash ₹ 30,000 and on credit from Karan ₹ 20,000.
3. Goods costing ₹ 40,000 were sold for ₹ 55,000.
4. Withdrew cash for personal use ₹ 10,000.
5. Rent outstanding ₹ 2,000.

Journalise the following in the books of Som Nath & Sons:

2019
May 1	Purchased a Machinery for ₹ 1,00,000 and the payment was made by issuing a cheque from Proprietor's saving bank account.
May 4	Received an order from Chakravarti for goods of ₹ 4,00,000 alongwith a cheque of 10% of the order as advance.
May 8	Paid cash ₹ 8,000 to Dushyant and discount allowed by him ₹ 800.
May 10	Goods stolen by an employee (Sale Price ₹ 20,000; Cost ₹ 15,000).
May 15	Purchased stationery worth ₹ 8,000 for office use and ₹ 2,000 for personal use.
May 20	Manoj pays us ₹ 5,400 after deducting 10% for prompt payment.
May 28	Sold goods to Kuber costing ₹ 2,00,000 at 25% above cost less trade discount of 10% and cash discount of 5%. Kuber did not avail the cash discount.

Record the following transactions in a cash book with cash and bank columns:

2017		(₹)
Jan. 1	Bank overdraft	12,000
	Cash in hand	2,300
Jan. 7	Cheque received from Ram ₹ 4,000 and discount allowed ₹ 200
Jan. 8	Deposited the above cheque into Bank	4,000
Jan. 12	Banked	200
Jan. 15	Received a money order from Gopal	500
Jan. 16	Money withdrawn from Bank for office use	300
Jan. 18	Bank Charges	20
Jan. 20	Interest on bank overdraft	1,000

On Jan 01, 2016 Neha sold goods for ₹ 20,000 to Muskan and drew upon her a bill of exchange payable after two months. One month before the maturity of the bill Muskan approached Neha to accept the payment against the bill at a rebate @ 12% p.a. Neha agreed to the request of Muskan and Muskan retired the bill under the agreed rate of rebate. Journalise the above transaction in the books of Neha and Muskan.

Rectify the following errors assuming that suspension account was opened. Ascertain the difference in trial balance.

1. Furniture purchased for ₹ 10,000 wrongly debited to purchase account as ₹ 4,000.
2. Machinery purchased on credit from Raman for ₹ 20,000 recorded through Purchases Book as ₹ 6,000.
3. Repairs on machinery ₹ 1,400 debited to Machinery account as ₹ 2,400.
4. Repairs on overhauling of second hand machinery purchased Rs. 2,000 was debited to Repairs account as ₹ 200.
5. Sale of old machinery at book value ₹ 3,000 was credited to sales account as ₹ 5,000.

On 1st September 2011, Gopal Ltd. purchased a plant for ₹ 10,20,000. On 1st July 2012 another plant was purchased for ₹ 6,00,000. The firm writes off depreciation @ 10% p.a. on original cost and its accounts are closed every year on 31st March. On 1st October 2014, a part of the second plant purchased on 1st July 2012 for ₹ 1,80,000 was sold for ₹ 1,10,000. On 1st December 2014, another plant was purchased for ₹ 3,00,000.
Prepare Plant Account, Provision for Depreciation Account and Plant Disposal Account.