Question
Rectify the following errors assuming:-
That such a suspense account has been opened.
  1. Goods costing ₹ 800 purchased from Sachin on credit were omitted to be credited to his account.
  2. Goods costing ₹ 800 purchased from Sachin on credit were credited to his account as ₹ 80.
  3. Goods costing ₹ 800 purchased from Sachin on credit were credited to his account as ₹ 880.
  4. Goods costing ₹ 800 purchased from Sachin on credit were posted to the debit of his account.
  5. Goods costing ₹ 800 purchased from Sachin on credit were posted to the debit of his account as ₹ 80.

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Fill up the missing information in the following journal entries:
On 1st January 2011, Hari Om purchased 6 machines @ Rs 15,000 each. His accounting year ends on 31 st December. Depreciation at the rate of $10 \%$ on the original cost was to be charged.
On 1st January 2012, one machine was sold for Rs 12,500 and on 1st January 2013, a second machine was sold for Rs 12,500 . An improved model which cost Rs 28,000 was purchase on 1st July 2012. Show Machine account till 2013.
On 1st Jan., 2016, Satish drew on Harish three bills of exchange in full settlement of claims, the first for ₹ 14,000 at one month; the second for ₹ 16,000 at two months and the third for ₹ 18,000 at three months. The bills were duly accepted by Harish. The first bill was endorsed by Satish to his creditor Rajnish on 3rd Jan., 2016. The second bill was discounted on 15th Jan. for ₹ 15,900 and the third bill was sent to bank for collection on 4th Feb. All the bills were met on maturity except the second bill which was dishonoured, noting charges being paid ₹ 240. Satish charged ₹ 300 for interest from Harish and drew on him a fourth bill for two months for ₹ 16,540. The fourth bill was duly met on maturity.
Give Journal entries in the books of Satish and Harish.
Enter the following transactions in proper Subsidiary Books, post them into Ledger Accounts, balance the accounts and prepare a Trial Balance:
2017  
Jan. 1 Assets: Cash in hand ₹ 20,000; Debtors: Sri Gopal ₹ 15,000, Poonam & Co. ₹ 30,000; Stock ₹ 1,75,000, Machinery ₹ 1,20,000; Furniture ₹ 40,000
Liabilities: Bank Overdraft ₹ 33,000; Creditors: Niranjan Lal ₹ 24,000, Bombay Trading Co. ₹ 16,000
Jan. 2 Purchased from Manohar Lal & Sons goods of the list price of ₹ 20,000 at 10% trade discount
Jan. 5 Returned to Manohar Lal & sons goods of the list price of ₹ 2,000
Jan. 10 Issued a Cheque to Manohar Lal & Sons in full settlement of their account
Jan. 12 Sold to Sri Gopal, goods worth ₹ 25,000
Jan. 15 Received Cash ₹ 10,000 and a Cheque for ₹ 8,000 from Sir Gopal. The Cheque was immediately sent to bank
Jan. 16 Withdrew for personal use: Cash ₹ 5,000 and goods ₹ 3,000
Jan. 17 Accepted a bill for 45 days drawn by Niranjan Lal for the amount due to him
Jan. 18 Acceptance received from Poonam & Co. for the amount due from them payable after 30 days
Jan. 19 Sold to Raghubir Brothers, goods valued ₹ 16,000
Jan. 20 Cash purchases ₹ 15,000
Jan. 22 Withdrew from bank fo office use ₹ 10,000
Jan. 23 Purchased from Bombay Trading Co., goods valued ₹ 24,000
Jan. 24 Sri Gopal returned goods worth ₹ 2,000
Jan. 25 Received from Raghubir Brothers ₹ 10,000
Jan. 27 Accepted a bill for ₹ 25,000 for 1 month drawn by Bombay Trading Co
Jan. 27 Paid Rent by Cheque ₹ 2,800
Received Commission in Cash ₹ 800
Jan. 31 Paid salaries ₹ 5,000
Following balances appeared in the books of Radhika Traders as on 1st April, 2017:
Assets: Cash ₹ 8,000; Cash at Bank ₹ 7,000; Stock ₹ 30,000; Debtors; ₹ 36,000 (Mohan ₹ 10,000; Sohan ₹ 12,000; Dinesh ₹ 14,000); Furniture ₹ 5,000; Building ₹ 25,000.
Liabilities: Creditors− X ₹ 5,000; Y ₹ 6,000.
In April, 2017, the following transaction took place:
2017
 
April 2
Bought goods of the list price of ₹ 6,000 from Khanna Brothers less 15% trade discount and 2% cash discount and paid 40% price at the same time.
 
April 3
Received a draft from Mohan in full settlement and deposited it into Bank
 
April 5
Purchased goods from Suresh of the list price of ₹ 8,000 at 20% trade discount and paid him by cheque.
9,750
April 8
Sold goods and received a cheque
25,000
April 10
Deposited the above cheque into Bank
12,000
April 12
Sohan deposited in our Bank A/c
4,000
April 16
Paid Income Tax by Cheque
5,600
April 20 Received a cheque from Sohan and sent to Bank 7,800
Discount allowed 200
April 21
Withdrew from Bank−for office
2,000
for private use
4,000
April 23
Sent a cheque to X in full settlement of his A/c
4,900
April 27
Cheque of Sohan returned by the bank as dishonoured.
 
April 28
Dinesh was declared insolvent and a payment of 60 paise in a ₹ received from his estate by a Cheque
 
April 30
Bank allowed Interest
350
Paid for Rent by cheque
1,500
Paid for traveling expenses by cheque
500
Pass Journal entries for the above transactions.
Prove that the Accounting Equation is satisfied in all the following transactions of Suresh. Also prepare a Balance Sheet.
  1. Commenced business with cash ₹ 60,000.
  2. Paid rent in advance ₹ 500.
  3. Purchased goods for cash ₹ 30,000 and credit ₹ 20,000.
  4. Sold goods for cash ₹ 30,000 costing ₹ 20,000.
  5. Paid salary ₹ 500 and salary outstanding being ₹ 100.
  6. Bought motorcycle for personal use ₹ 5,000
Explain the nature of Accounting Standards.
Prepare the Vouchers to be recorded in the books of M/s Computer Aids:
2019
Particular
Jan-1
Bought computer for resale for cash vide Cash Memo No. 512*
7,200
Jan-8
Salary paid for the month of December, 2018
10,000
Jan-10
Sold computer for cash vide Cash Memo No. 64*
12,000
Jan-15
Withdraw cash from bank for office use vide cheque No. 13456
1,700
Transactions marked with * are subject to levy of CGST and SGST @ 6% each.
During the financial year 2018-19, Mohan had cash sales of ₹ 90,000 and credit sales of ₹ 60,000. His expenses for the year were ₹ 70,000 out of which ₹ 30,000 is still to be paid. find out the net income according to Accrual Basis of Accounting.
On 31st January, 2017 the Pass Book of Shri M.L. Gupta shows a debit balance of ₹ 41,000. Prepare a bank reconciliation statement from the following particulars:-
  1. Cheques amounting to ₹ 15,600 were drawn on 27th January, 2017. Out of which cheques for ₹ 11,000 were encashed up to 31-1-2017.
  2. A wrong debit of ₹ 800 has been given by the bank in the Pass Book.
  3. A cheque for ₹ 200 was credited in the Pass Book but was not recorded in the Cash Book.
  4. Cheques amounting to ₹ 21,000 were deposited for collection. But out of these, cheques for ₹ 7,400 have been credited in the Pass Book on 5th February, 2017.
  5. A cheque for ₹ 1,000 was returned dishonoured by the bank and was debited in the Pass Book only.
  6. Interest on overdraft and bank charges amounting to ₹ 100 were not entered in the Cash Book.
  7. A cheque of ₹ 500 debited in the Cash Book omitted to be banked.