Meaning and Objectives of Accounting — Account STD 11 Commerce — Question

Y purchased goods for ₹ 6,000 on 1st June, 2011 from X and on the same date accepted a bill payable after three months. 3 days later, X endorsed the bill to Z. On maturity, the bill was dishonoured for non-payment and Z had to pay ₹ 50 as noting charges. Two days after the dishonour of bill, Y paid ₹ 2,000 to X and requested him to draw a second bill for the balance plus ₹ 90 for the amount of interest, payable after two months. X accepted the proposal and draws the bill on Y, which was accepted by Y and was duly met on maturity. Pass Journal entries for the above transactions in the books of X.

Rectify the following errors:

1. Furniture purchased for ₹ 10,000 wrongly debited to purchases account.
2. Machinery purchased on credit from Raman for ₹ 20,000 was recorded through purchases book.
3. Repairs on machinery ₹ 1,400 debited to machinery account.
4. Repairs on overhauling of secondhand machinery purchased ₹ 2,000 was debited to Repairs account.

Explain the terms 'Reserve' and 'Provision' with examples.

State the rules of debiting and crediting of accounts.

Give four advantages of Straight Line Method of providing depreciation.

Feb 1, 2017	Purchased from M/s Brown & Co. on credit.
	5 gross pencils @ ₹ 100 per gross.
	1 gross registers @ ₹ 200 per dozen.
	Less: 10% trade discount.
Feb 2, 2017	Purchased for cash from stationery Mart.
	10 gross exercise books @ ₹ 60 per dozen.
Feb 6, 2017	Purchased from The Paper Co.
	5 reams of white paper @ ₹ 100 per ream
	10 reams of brown paper @ ₹ 65 per ream
	Less: trade discount @ 10%

Explain how the following transactions would be recorded in a Cash Book with Cash and Bank Columns?
Deposit of Cash into Bank?

Enter the following transactions in the Double Column Cash Book of M/s. Gupta Store:

2019		₹
June 1	Cash in Hand ₹ 800, Bank overdraft ₹ 5,700
June 7	Received a cheque from Bharati, discount allowed ₹ 150	3,250
June 9	Deposited the above cheque into Bank
June 15	Cheque received from Panna Lal	1,200
June 20	Bharati's cheque returned dishonoured
June 28	Panna Lal's cheque was endorsed to Kamal
June 30	Income tax paid by cheque	150

My bank Pass Book showed an overdraft of ₹ 6,500 on 31st March, 2017. This does not agree with the Cash Book balance. From the following particulars ascertain the Cash Book balance:- Cheques amounting to ₹ 15,000 were paid into bank in March, out of which, it appears, only cheques amounting to ₹ 4,500 were credited by bank. Cheques issued during March amounted in all to ₹ 11,000. Out of these cheques for ₹ 3,000 were unpaid on 31st March, 2017. The Pass Book stands debited with ₹ 150 for interest and with ₹ 30 for bank charges. The bank had paid the annual subscription of ₹ 100 to my club according to my instructions. The entries for interest, bank charges and subscription have not yet been made in Cash Book.

Write up Return Outward Book of Malthotra & Co., Bhiwani (Haryana) from the following transactions assuming CGST @ 6% and SGST @ 6%.

2017
August 4	Returned to Saraswati House, Bhiwani 25 Chairs @ ₹ 1,800 per Chair, being not of specified quality.
	Trade Discount 10%
August 12	Sent back one Dining Table to Navneet Enterprise, Karnal (Haryana) for not being polished @ ₹ 10,000 and 20 Chairs @ ₹ 2,000 each.
August 20	Returned to Yadav & Co., Patiala (Punjab), being not according to sample
	20 Chairs @ ₹ 1,500 each.
	2 Dressing Tables @ ₹ 7,500 each.
August 28	Allowance claimed from Navneet Enterprise, Ludhiana (Punjab) on account of mistake in the invoice ₹ 5,000.