Introduction to Accounting — Account STD 11 Commerce — Question

Rectify the following errors found in the books of Bheem. Trial Balance had ₹ 930 excess credit. The difference has been posted to a Suspense Account:

1. The total of Returns Inward Book has been cast ₹ 1,000 short.
2. The purchase of an office table costing ₹ 3,000 has been passed through the Purchases Book.
3. ₹ 3,750 paid for wages to workmen for making showcases had been charged to the Wages Account.
4. A purchase of ₹ 670 had been posted to the Creditors' Account as ₹ 600.
5. A cheque for ₹ 2,000 received from Nakul had been dishonoured and was passed to the debit of the Allowances Account.
6. An amount of ₹ 15,720 due from Prasad written off as had in a previous year, was recovered and credited to the Personal Account of Prasad.

After rectification reflect the transactions in the Suspense Account.

Prepare Simple Cash Book from the following transactions of Simran, Delhi:

2019						₹
March 1					Simran commenced business with cash	65,000
March 3					Bought goods for cash, CGST and SGST paid @ 6% each	6,850
March 4					Paid cash to Mr. Mohan	950
March 6					Deposited in Bank	40,000
March 6					Paid for office furniture in cash, CGST and SGST paid @ 6% each	4,650
March 9					Sold goods for cash charged CGST and SGST @ 6% each	30,000
March 12					Paid wages in cash	1,200
March 13					Paid for Stationery, CGST and SGST paid @ 6% each	400
March 15					Sold goods for cash, charged CGST and SGST @ 6% each	25,000
March 17					Paid for miscellaneous expenses	450
March 19					Received cash from Mr. Trilok Chand	4,850
March 22					Purchased goods, CGST and SGST paid @ 6% each	2,500
March 22					Paid Salary	4,000
March 25					Paid rent, CGST and SGST paid @ 6% each	900
March 28					Paid electricity bill	350
March 29					Paid for advertising, CGST and SGST paid @ 6% each	400
March 31					Paid into bank	25,000

Use Accounting Equation to show the effect of the following transactions of M/s Royal Traders:

		(₹)
(a)	Started Business with Cash	1,20,000
(b)	Purchased goods for cash	10,000
(c)	Rent received	5,000
(d)	Salary outstanding	2,000
(e)	Received interest	700
(f)	Sold goods for cash (costing ₹ 5,000)	7,000
(g)	Goods destroyed by fire	500

Enter the following transactions in the Two Column Cash Book of Mr. Mohan:

2018		₹
Jan. 1	Cash in Hand	2,200
	Cash at Bank	50,000
Jan. 3	Purchased goods for ₹ 75,000; Trade Discount 20%; CGST 6%, SGST 6%; Payment made by Cheque
Jan. 4	Sold goods for ₹ 40,000; Trade Discount 15%; IGST 12%; Payment received by Cheque
Jan. 5	Received a cheque from Naresh	1,000
Jan. 8	Cheque received from Naresh endorsed to Suresh in full settlement of his account of ₹ 1,050
Jan. 10	Paid Life Insurance premium of Mr. Mohan	100
Jan. 13	Received a cheque from Pawan in full settlement of his account of ₹ 750	700
Jan. 16	Pawan's cheque returned dishonoured by bank
Jan. 20	Deposited into Bank, balance of Cash in excess of ₹ 250

The accountant of X prepared the Trial Balance at the end of the year on 31st March, 2015. But there was a difference and the accountant put the difference in a Suspense Account. Rectify the following errors found and prepare the Suspense Account:

1. The total of the returns outward book ₹ 420 has not been posted in the ledger.
2. A purchase of ₹ 350 from Y has been entered in the sales book. However Y's Account has been correctly entered.
3. A sale of ₹ 390 to Z has been credited to his account ₹ 290.
4. Old furniture sold for ₹ 5,400 had been posted as ₹ 4,500 in Sales Account.
5. Goods taken by the proprietor ₹ 500 have not been entered in the books at all.

A book-keeper extracted the following Trial Balance as at 31st March, 2017:

On Checking Ram's Cash Book with the bank statement of his overdraft current account for the month of November 2014, you find the following:

1. Cash Book showed an overdraft of ₹ 16,200.
2. The payment side of the Cash Book had been undercast by ₹ 500.
3. A cheque for ₹ 13,600 drawn on his saving deposit account has been wrongly recorded as drawn on current account in the Cash Book.
4. Cheques amounting to ₹ 18,800 drawn and entered in the Cash Book had not been presented.
5. Cheques amounting to ₹ 7,500 sent to the bank for collection though entered in the Cash Book, had not been credited by the bank.
6. Bank charge of ₹ 150 as per bank statement of account had not been taken in the Cash Book.
7. Dividend of the amount of ₹ 420 had been paid direct to the bank and not entered in the Cash Book.

You are requested to arrive at the balance as it would appear in the bank statement as on 30th November 2014.

Enter the following transactions in the Journal of M/s. Karim Bros., Prop. Shri Karim Khan, Kolkata, post to the Ledger:
Inter-state transactions are subject to levy of IGST @ 12% and Intra-state transactions are subject to levy of CGST and SGST @ 6% each. GST is not levied on transactions marked with (*).

Following transactions of Ramesh for April, 2019 are given below. Journalise them.

2019		₹
April 1	Ramesh started business with cash	1,00,000
April 2	Paid into bank	20,000
April 3	Bought goods for cash	50,000
April 4	Drew cash from bank for office use	10,000
April 13	Sold goods to Krishna	15,000
April 20	Bought goods from Shyam	22,500
April 22	Krishna returned goods	2,000
April 24	Received from Krishna	12,500
	Allowed him discount	500
April 28	Paid cash to Shyam	21,500
	Discount received	1,000
April 30	Cash sales for the month	80,000
April 30	Paid rent	5,000
April 30	Paid salary	10,000