Recording of Transactions - 1 — Account STD 11 Commerce — Question

What is a Capital Reserve? How is it different from a Revenue Reserve?
OR
Distinguish between 'Revenue Reserve' and a ‘Capital Reserve' on the basis of:

1. Source of creation.
2. Purpose.
3. Usage.

What are Contra Entries? Why these are not posted into the Ledger?

Pass entries in the books of Devdhar & Bros. Odisha, assuming all transactions have been entered within the state, charging CGST and SGST @ 9% each:

2018
March 4	Purchased goods for ₹ 5,00,000 from Sunil Bros.
March 7	Goods returned to Sunil Bros. for ₹ 20,000
March 10	Sold goods to Mehta & Co. for ₹ 8,00,000
March 12	Goods returned by Mehta & Co. for ₹ 30,000
March 20	Goods withdrawn by Proprietor for personal use ₹ 10,000
March 25	Goods distributed as free samples ₹ 5,000
March 26	Paid advertisement expenses by cheque ₹ 20,000
March 31	Payment made of balance amount of GST.

Distinguish between ‘general reserve’ and ‘specific reserve’.

Identify the values involved in the assumption of going concern.

Pass Journal entries of M/s Bhanu Traders, Delhi from the following transactions. Post them to the Ledger:

2019		₹
April 1	Commenced business with cash	1,50,000
April 2	Opened a bank account with PNB	50,000
April 3	Purchased furniture	20,000
April 7	Bought goods for cash from M/s. Rupa Traders, Delhi	30,000
April 8	Purchased goods from M/s. Hema Traders, Chandigarh	42,000
April 10	Cash sales	30,000
April 14	Sold goods on credit to M/s. Gupta Traders, Kolkata	12,000
April 16	Rent paid	4,000
April 18	Paid Electricity expenses	1,000
April 20	Received cash from Gupta Traders	12,000
April 22	Goods returned to Hema Traders	2,000
April 23	Cash paid to Hema Traders	40,000
April 25	Bought postage stamps	100
April 30	Paid salary to Mohan	4,000

When do you credit a liability account? What will you do to reduce the balance of any liability account? Explain with an example.

Open 'T' shape account for Furniture and write the following on the proper side∶

1. Furniture purchased for ₹ 50,000
2. Furniture sold costing ₹ 20,000
3. Furniture destroyed by fire ₹ 16,000
4. Furniture again purchased ₹ 32,000
5. Old furniture discarded ₹ 2,000
6. Value of furniture was reduced by ₹ 5,000

Raja Ltd. purchased securities for ₹ 50 lakh. At the end of the year, the market value of such securities was ₹ 40 lakh. While preparing the financial statements, the company valued the securities at cost i.e. at ₹ 50 lakh. Is it a correct treatment?

Find the due date of a Bill of Exchange dated 9th December, 2018, payable after 45 days.