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

​Record the following transactions of Prabhat Electric Co., Delhi in the proper subsidiary books:

Pass the rectification entries for the following transactions:

1. An amount of ₹ 2,000 received from Mohan on 1st April, 2019 had been entered in the Cash Book as having been received on 31st March, 2019.
2. The balance in the account of Rahim ₹ 1,000 had been written off as bad but no other account has been debited.
3. An addition in the Returns Inward Book had been cast ₹ 100 short.
4. A cheque for ₹ 200 drawn for the Petty Cash Account has been posted in the account of Asif.
5. A discounted Bill of Exchange for ₹ 20,000 returned by the firm's bank had been credited to the Bank Account and debited to Bills Receivable Account. A cheque was received later from the customer for ₹ 20,000 and duly paid.
6. Ramesh's Account was credited with ₹ 840 twice instead of once.

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.

Enter the following transactions in a Single Column Cash Book∶

2017		(₹)
Feb. 1	Mr. Vipin commenced business with Cash	2,00,000
Feb. 3	Opened a Bank Account and deposited	75,000
Feb. 5	Purchased goods for Cash	30,000
Feb. 7	Purchased goods	15,000
Feb. 10	Purchased goods from Surya Kant	40,000
Feb. 12	Paid to Surya Kant	38,800
	Discount received	1,200
Feb. 15	Paid Wages in Cash	22,500
Feb. 16	Paid to casual labour	1,500
Feb. 20	Sold goods to Dev Raj for Cash	80,000
Feb. 25	Paid electricity bill in Cash	12,000
Feb. 26	Withdrew Cash from Bank	40,000
Feb. 27	Received for Cash sales	5,000
Feb. 27	Paid for miscellaneous expenses	500

What do you mean by Suspense Account? When is it opened?

Explain errors of principle and give two examples with measures to rectify them.

On 10th April, 2018, Ravi purchased from Mohan goods for ₹ 30,000 plus CGST and SGST @ 9% each. Ravi paid ₹ 15,400 in cash and accepted a bill for two months for the balance amount drawn on him by Mohan. Mohan endorsed the bill to Rakesh. The bill was dishonoured on the due date. Rakesh had to spend ₹ 100 as noting charges. Immediately after the dishonour, Mohan accepted a new bill drawn by Rakesh, in which ₹ 200 for interest were also included. After 20 days of the dishonour of the bill, Ravi paid full amount of Mohan including ₹ 50 as interest. Show Journal entries in the books of Ravi, Mohan and Rakesh.

Complete the following Bank Reconciliation Statement:

Pass Journal entries in the books of Hari Shankar & Co. from the following:

2017		₹
April 1	Commenced business with cash	50,000
April 2	Purchased goods from Subhash	20,000
April 4	Sold goods to Ramnath	15,000
April 6	Ramnath returned defective goods	1,000
April 10	Received cash from Ramnath and	13,800
	Discount allowed	200
April 12	Gopal sold goods to us	10,000
April 14	Paid to Gopal in full settlement of his account after deducting 5% discount
April 15	Paid Rent	10,000
April 16	Paid Rent of Hari Shankar's residence	5,000
April 18	Purchased goods for cash from Govind for ₹ 6,000 at 20% trade discount
April 20	Purchased goods from Govind for ₹ 10,000 at 20% trade discount
April 24	Paid to Govind ₹ 7,850 in full settlement of his account
April 25	Paid to Subhash ₹ 4,750 discount received ₹ 250
April 30	Paid wages ₹ 400, Salaries ₹ 4,000, Advertisement expenses ₹ 800 and Trade expenses ₹ 1,000