Journal — Account STD 11 Commerce — Question

Amar sells goods to Bhola for ₹ 10,000 plus CGST and SGST @ 9% each. He receives the GST amount in cash and draws upon Bhola a bill for the balance amount payable 3 months after date. The bill is accepted by Bhola. Amar discounts the bill with his bank at a discount of ₹ 150 inclusive of all charges. Bhola fails to meet this bill on maturity. Amar pays off his bank and his expenses amounting to ₹ 100. Bhola gives a fresh bill of 2 months' date to Amar for ₹ 10,250, which he meets at maturity. Show necessary Journal entries in Amar's books.

The following information are extract from the Trial Balance of M/s Nisha traders on 31 March 2017.

Sundry Debtors	80,500
Bad debts	1,000
Provision for bad debts	5,000

Additional Information
Bad Debts	₹ 500

Provision is to be maintained at 2% of Debtors.
Prepare bad debts accound, Provision for bad debts account and profit and loss account.

The bookkeeper of a firm found that his Trial Balance was out (excess credit) by ₹ 742. He placed the amount in a Suspense Account and subsequently found the following errors:

1. A discount of ₹ 178 was allowed to Ramesh but in his account only ₹ 100 is recorded.
2. The total of the Purchases Book was ₹ 1,000 short.
3. A sale of ₹ 375 to Kohli was entered in the Sales Book as ₹ 735.
4. From the Purchases Book, Bose’s Account was debited with ₹ 175.
5. Cash ₹ 250 received from Maitra against debt previously written off was credited to his account.
6. Purchase of office furniture worth ₹ 750 on credit from Delhi Furnitures was entered in the Purchases Book.
7. While carrying forward the total of the Sales Book from one page to another the amount of ₹ 11,358 was written as ₹ 11,538.
8. The proprietor took goods of the value of ₹ 150 for his domestic consumption. No record of it has been made in the books.
9. Repairs bill of ₹ 410 for the proprietor’s personal car, has been paid by the firm and debited to the Repairs Account.
10. A sale to Kassim of ₹ 700 has been entered in the Purchases Book.
11. Rectify the errors by means of suitable Journal entries and show the Suspense Account.

Enter the following transaction in the Journal of Marutinandan Stores:

2017
Jan. 10	Purchased goods from Ghanshyam of the list price of ₹ 50,000 at 15% trade discount.
Jan. 13	Returned goods to Ghanshyam of the list price of ₹ 2,000
Jan. 15	Paid cash to Ghanshyam ₹ 40,000 in full settlement of his account.
Jan. 20	Purchased goods from Raghu of the list price of ₹ 60,000 at 10% trade discount.
Jan. 22	Returned goods to Raghu of the list price of ₹ 5,000
Jan. 25	Paid cash to Raghu ₹ 49,000 in full settlement of his Account.

Complete the following Accounting Equation by filling the missing amounts:

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.

What is asset disposal account? Why is it prepared? Give journal entries for preparation of this account when an asset is disposed off.

Journalise the following transactions of Satish, Noida (UP):

2019		₹
Jan 1	Started business with cash	40,000
Jan 2	Opened Bank Account by cheque from Savings Account	60,000
Jan 3	Bought goods from M/s. S. Singh & Co., Delhi	20,000
Jan 4	Introduced additional capital by cheque	5,000
Jan 4	Purchased computer against cheque from Computer Mart, Noida	15,000
Jan 6	Paid for postage stamps	150
Jan 8	Sold goods for cash	4,000
Jan 9	Sold goods to M/s Sharda & Co., Delhi	10,000
Jan 15	Paid the due amount to M/s S. Singh & Co. after availing discount of ₹ 400
Jan 25	Sold goods to M/s Ray & Co., Kolkata	5,600
Jan 27	Received cheque from M/s Sharda & Co. in full settlement of amount due from them	11,000
Jan 31	Paid for electricity charges	1,000
Jan 31	Paid rent of building by cheque. Half of the building is used by the proprietor for residential use.	5,000
Jan 31	Drew for personal use	3,500

The following purchases were made by Karam, Kolkata, during the month of April, 2019. Prepare Purchases Book and post into Ledger Accounts:

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.