Trial Balance and Rectification of Errors — Account STD 11 Commerce — Question

Pass entries in the books of Sh. Jagdish Mishra of Lucknow (U.P.) assuming CGST @ 6% and SGST @ 6%.

2018
March 5	Purchased goods for ₹ 2,50,000 from Virender Yadav of Patna (Bihar).
March 12	Sold goods costing ₹ 60,000 at 50% profit to Partap Sinha of Ranchi (Jharkhand).
March 14	Purchased goods for ₹ 70,000 from Ram Nath of Kanpur (U.P.) against cheque.
March 18	Sold goods at Varanasi (U.P.) Costing ₹ 2,25,000 at 3313%3313%profit less trade discount 10% against cheque which was deposited into bank.
March 20	Paid rent ₹ 25,000 by cheque.
March 31	Payment made of balance amount of GST.

A sold goods for ₹ 40,000 to B on Jan. 01, 2017. He drew upon B a bill of exchange for the same amount payable after 1 month. B accepted the bill and sent it back to A. Adiscounted the bill immediately with his bank @ 9% p.a. On the due date B dishonoured the bill of exchange and the bank paid ₹ 200 as noting charges. B requested A to draw a new bill upon him with interest @ 12% p.a. which he agreed. The new bill was payable after 1 month. One week before the maturity of the second bill B requested A to cancel the second bill. He further requested to accept ₹ 15,000 in cash immediately and draw a third bill upon him including interest of ₹ 1,000. A agreed to B's request. The third bill was payable after one month. B met the third bill on its maturity. Record the necessary journal entries in the books of A and B and also prepare B's account in the books of Aand A's account in the books of B.

A drew a bill of ₹ 1,000 on B for 3 months which was duly accepted by the latter. A endorsed the bill to C in full payment of his own acceptance to C for a like amount. C endorsed the bill to B.
Pass the Journal entries in the books of A, B and C.

Vimal purchased goods ₹ 25,000 from Kamal on Jan. 15, 2017 and accepted a bill of exchange drawn upon him by Kamal payable after two months. On the date of the maturity the bill was duly presented for payment. Vimal dishonoured the bill.
Record the necessary journal entries in the books of Kamal and Vimal when:

1. The bill was retained by Kamal till the date of its maturity.
2. The bill was immediately discounted by Kamal with is bank @ 6% p.a.
3. The bill was endorsed by Kamal in favour of his creditor Sharad.
4. Five days before its maturity the bill was sent by Kamal to his bank for collection.

On 1st April, 2015, a limited company purchased a Machine for ₹ 1,90,000 and spent ₹ 10,000 on its installation. At the date of purchase, it was estimated that the scrap value of the machine would be ₹ 50,000 at the end of sixth year.
Give Machine Account and Depreciation A/c in the books of the Company for 4 years after providing depreciation by Fixed Instalment Method. The books are closed on 31st March every year.

Binny Textiles Ltd. which depreciates its machinery at 20% p.a. on diminishing balance method, purchased a machine for ₹ 6,00,000 on 1st October, 2010. It closes its books on 31st March every year. On 1st January, 2012, it purchased another machine for ₹ 1,50,000. On 1st December, 2012, one-third of the machinery purchased on 1st October, 2010 was sold for ₹ 80,000.
You are required to prepare Machinery A/c and Provision for Depreciation A/c for the relevant years.

What is the objective behind preparing an Account? What is meant by recording on debit and credit sides of any Account? Explain with examples.

Show the accounting equation on the basis of following transactions:

1. Commenced business with Cash ₹ 20,000; Goods ₹ 50,000 and Furniture ₹ 30,000.
2. Purchased goods from Gopal on Credit ₹ 40,000.
3. Sold goods for Cash ₹ 40,000 (costing ₹ 30,000).
4. Sold goods to Ram on Credit ₹ 65,000 (costing ₹ 50,000).
5. Withdrew for personal use goods costing ₹ 5,000.
6. Purchased typewriter for personal use of the proprietor ₹ 20,000.
7. Purchased chairs for office use for Cash ₹ 10,000.
8. Paid for printing ₹ 500 and received Commission ₹ 1,200.
9. Introduced fresh Capital ₹ 40,000.
10. Paid to Gopal ₹ 30,000.

On 1st April 2012, Banglore Silk Ltd. purchased a machinery for ₹ 20,00,000. It provides depreciation at 10% p.a. on the Written Down Value Method and closes its books on 31st March every year. On 1st July 2014, a part of the machinery purchased on 1st April 2012 for ₹ 4,00,000 was sold for ₹ 3,20,000. On 1st November 2014, a new machinery was purchased for ₹ 4,80,000. You are required to prepare Machinery Account, Depreciation Account and Provision for Depreciation Account for three years ending 31st March 2015.

Journalise the following transactions of Singh Enterprises, Delhi:

2018		₹
June 1	Started business with cash	50,000
June 2	Deposited cheque from Savings Account in firm's account	2,00,000
June 3	Received cash from Ram	50,000
June 4	Purchased goods for cash	15,000
June 11	Sold goods to M/s. Hari Sales, Delhi	12,000
June 13	Paid to Ramavtar	40,000
June 17	Received from M/s. Hari Sales	10,000
June 20	Bought furniture from S.R. Furnishers against Cash	22,400
June 27	Paid rent	28,000
June 30	Paid salary	50,000