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

Prepare a Bank Reconciliation Statement on 31 December, 2014 from the following particulars:

1. A's overdraft as per Pass Book ₹ 20,000 as at 31st Dec.
2. On 30th December, cheques had been issued for ₹ 80,000, of which cheques worth ₹ 15,000 only had been encashed up to 31st December.
3. Cheques amounting to ₹ 6,500 had been paid into the bank for collection but of these only ₹ 2,500 had been credited in the Pass Book.
4. The bank has charged ₹ 700 as interest on overdraft and the intimation of which has been received on 2nd January 2015.
5. The Bank Pass Book shows credit for ₹ 2,000 representing ₹ 1,400 paid by debtor of A direct into the bank and ₹ 600 collected direct by bank in respect of interest on A,s investment. A had no knowledge of these items.
6. A cheque for ₹ 3,600 has been debited in bank column of Cash Book by A, but it was not sent to bank at all.

Journalise the following transactions in the books of Mohan, Delhi:

1. Raj of Alwar, Rajasthan who owed Mohan ₹ 25,000 became insolvent and received 60 paise in a rupee as full and final settlement.
2. Mohan owes to his landlord ₹ 10,000 as rent.
3. Charge depreciation of 10% on furniture costing ₹ 50,000.
4. Salaries due to employees ₹ 20,000.
5. Sold to Sunil goods in cash of ₹ 10,000 less 10% trade discount plus CGST and SGST @ 6% each and received a net of ₹ 8,500.
6. Provided interest on capital of ₹ 1,00,000 @ 10% per annum.
7. Goods lost in theft ₹ 5,000, which were purchased paying IGST @ 12% from Alwar, Rajasthan.

Give any four points of distinction between Provisions and Reserves.

Enter the following transactions in a Two Column Cash Book:
Purchased goods for ₹ 1,00,000; IGST 18%; Payment made by Cheque

2016		₹
Dec. 1	Started business with cash	50,000
Dec. 2	Pays into Bank	29,000
Dec. 3	Received cheque from Raja & Co.	800
	Discount allowed	20
Dec. 5	Withdrew cash from bank for private use	240
Dec. 12	Sold goods for ₹ 1,50,000; Trade Discount 20%; IGST 18%; Payment received by Cheque
Dec. 14	Received cheque from Kamla	395
	Discount allowed	15
Dec. 16	Kamla's cheque endorsed to Bala in full settlement of her account of ₹ 425
Dec. 29	Paid rent by cheque	1,000
Dec. 30	Deposited into bank, balance of cash in excess of	450

Journalise the following transactions in the books of M/s. R.K. & Co:

1. Purchased goods of list price of ₹ 20,000 from Vishal at 20% trade discount against cheque payment.
2. Purchased goods of list price of ₹ 20,000 from Naman at 15% trade discount against cash.
3. Purchased goods of list price of ₹ 30,000 from Amrit at 20% trade discount.
4. Purchased goods of list price of ₹ 40,000 for ₹ 35,000 for cash.
5. Goods returned of list price ₹ 10,000 purchased from Amrit.
6. Sold goods to Parul of list price of ₹ 40,000 at 10% trade discount against cheque payment.
7. Sold goods to Aman of list price of ₹ 30,000 at 10% trade discount against cash.
8. Sold goods to Pawan of list price of ₹ 20,000 at 10% trade discount.
9. Sold goods to Yamini of list price of ₹ 25,000 for ₹ 23,000.
10. Sold goods costing ₹ 10,000 at cost plus 20% less 10% trade discount to Bhupesh.
11. Sold goods purchased at list price of ₹ 50,000 less 15% trade discount sold at a profit of 25% less 10% trade discount against cheque.
12. Aman returned goods of list price of ₹ 10,000 sold to him at 10% trade discount.

Correct the following errors: (1) without Suspense Account and (2) with Suspense Account:
i. Sales Book has been totalled ₹ 8,000 short.
ii. Goods of ₹ 1,500 returned by Shivam & Co., have not been recorded.
iii. Goods purchased of ₹ 2,500 was posted to debit of the supplier, Ram.
iv. Furniture purchased from Pink & Co., of ₹ 10,000 has been entered in Purchases Book.
v. Cash received from Aniket ₹ 3,500 has not been posted in his account. Also prepare Suspense Account.

On January 01, 2011, Satkar Transport Ltd., purchased 3 buses for ₹ 10,00,000 each. On July 01, 2013, one bus was involved in an accident and was completely destroyed and ₹ 7,00,000 were received from the Insurance Company in full settlement. Depreciation is written off @15% p.a. on diminishing balance method. Prepare bus account from 2011 to 2014. Books are closed on December 31 every year.

Ganga Ltd. purchased a machinery on January 01, 2014 for ₹ 5,50,000 and spent ₹ 50,000 on its installation. On September 01, 2014 it purchased another machine for ₹ 3,70,000. On May 01, 2015 it purchased another machine for ₹ 8,40,000 (including installation expenses). Depreciation was provided on machinery @10% p.a. on original cost method annually on December 31. Prepare:

1. Machinery account and depreciation account for the years 2014, 2015, 2016 and 2017.
2. If depreciation is accumulated in provision for Depreciation account then prepare machine account and provision for depreciation account for the years 2014, 2015, 2016 and 2017.