Ledger — Account STD 11 Commerce — Question

On 30th June 2014, the bank balance as per Sanjay Yadav's Cash Book was ₹ 1,500. On comparing with the Pass Book the following information was received:-

1. Cheques amounting to ₹ 7,290 were issued on 28th June, of which one cheque of ₹ 1,300 was presented in the bank for payment on 4th July.
2. Cheques deposited into bank for ₹ 10,000, but of these cheques for ₹ 4,000 were cleared and credited in July.
3. Interest and Dividend on investments ₹ 580 collected by bank and credited to his account but he did not have any information for this.
4. Life Insurance Premium ₹ 750 paid by bank according to his standing orders.
5. Bank Charges ₹ 25 not recorded in the Cash Book.

Prepare a Bank Reconciliation Statement.

Prepare Accounting Equation from the following:

Rectify the following errors assuming that suspense account was opened. Ascertain the difference in trial balance.

1. Depreciation provided on machinery ₹ 4,000 was not posted to Depreciation account.
2. Bad debts written-off ₹ 5,000 were not posted to Debtors account.
3. Discount allowed to a debtor ₹ 100 on receiving cash from him was not posted to discount allowed account.
4. Goods withdrawn by proprietor for personal use ₹ 800 were not posted to Drawings account.
5. Bill receivable for ₹ 2,000 received from a debtor was not posted to Bills receivable account.

Explain any three of the following:

1. Retiring of Bills of Exchange.
2. Holder in due course.
3. Bills sent to bank for collection.
4. Noting charges.

Rajesh Kumar was unable to reconcile his Trial Balance as on 31st March 2014 and has opened a suspense account from the difference. Later on the following errors were discovered:-

1. There were three compensating errors:-

1. The total of Sales Return Book was overcast by ₹ 100.
2. The total of one page of the Purchase Book was carried forward as ₹ 1,286 instead of ₹ 1,826.
3. Goods purchased from C for ₹ 400 was debited to his account as ₹ 40.

2. ₹ 425 paid for wages to workmen for making office table were debited to wages account.
3. Rent paid ₹ 1,500 were posted to the credit of Rent account as ₹ 150.
4. Cash received from Ghanshyam ₹ 500 were correctly recorded in cash book but were posted to his account as ₹ 50.
5. ₹ 720 paid to Kamal has been debited to Kamlesh A/c as ₹ 520.
6. The total of Purchase Return Book ₹ 2,500 was left unposted.

Pass rectifying entries and prepare Suspense A/c.

In taking out the Trial Balance, book-keeper finds that he is out ₹ 3,809 excess debit. Being desirous of closing his books he places the difference to a newly opened Suspense A/c which is carried forward. In the next period he discovered that :-

1. ₹ 17,715 received from X has not been posted to his account.
2. A sum of ₹ 9,500 written off as depreciation on fixtures has not been posted to the Depreciation A/c.
3. ₹ 1,50,000 paid for furniture purchased has been charged to Ordinary Purchases A/c.
4. A discount of ₹ 3,742 allowed to a customer has been credited to him as ₹ 3,648.
5. The total of the Inwards return has been added ₹ 900 short.
6. An item of Sale for ₹ 5,900 was posted as ₹ 9,500 in the Sales Account.

Give the rectifying entries and prepare the Suspense Account.

On 1st January, 2016, A Ltd. Purchased a machine for ₹ 2,40,000 and spent ₹ 10,000 on its erection. On 1st July, 2016 an additional machinery costing ₹ 1,00,000 was purchased. On 1st July, 2018 the machine purchased on 1st January, 2016 was sold for ₹ 1,43,000 and on the same date, a new machine was purchased at a cost of ₹ 2,00,000.
Show the Machinery Account for the first three calendar years after charging depreciation at 5% by the Straight Line Method.

On 1st April, 2015, a limited company purchased a Machine for ₹ 1,90,000 and spent ₹ 10,000 on its installation. At the date of purchase, it was estimated that the scrap value of the machine would be ₹ 50,000 at the end of sixth year.
Give Machine Account and Depreciation A/c in the books of the Company for 4 years after providing depreciation by Fixed Instalment Method. The books are closed on 31st March every year.