Trial Balance and Rectification of Errors — Account STD 11 Commerce — Question

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March 20	Goods withdrawn by Proprietor for personal use ₹ 10,000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.

On 1st April, 2015, a Company bought Plant and Machinery costing ₹ 68,000. It is estimated that its working life is 10 years, at the end of which it will fetch ₹ 8,000. Additions are made on 1st April, 2016 to the value of ₹ 40,000 (Residual value ₹ 4,000). More additions are made on Oct. 1, 2017 to the value of ₹ 9,800 (Break up value ₹ 800). The working life of both the additional Plant and machinery is 20 years.
Show the Plant and Machinery account for the first four years, if depreciation is written off according to Straight Line Method. The accounts are closed on 31st March every year.

Show the accounting equation on the basis of following transactions:

1. Commenced business with Cash ₹ 20,000; Goods ₹ 50,000 and Furniture ₹ 30,000.
2. Purchased goods from Gopal on Credit ₹ 40,000.
3. Sold goods for Cash ₹ 40,000 (costing ₹ 30,000).
4. Sold goods to Ram on Credit ₹ 65,000 (costing ₹ 50,000).
5. Withdrew for personal use goods costing ₹ 5,000.
6. Purchased typewriter for personal use of the proprietor ₹ 20,000.
7. Purchased chairs for office use for Cash ₹ 10,000.
8. Paid for printing ₹ 500 and received Commission ₹ 1,200.
9. Introduced fresh Capital ₹ 40,000.
10. Paid to Gopal ₹ 30,000.

Kapil Ltd. purchased a machinery on July 01, 2011 for ₹ 3,50,000. It purchased two additional machines, on April 01, 2012 costing ₹ 1,50,000 and on October 01, 2012 costing ₹ 1,00,000. Depreciation is provided @10% p.a. on straight line basis. On January 01, 2013, first machinery become useless due to technical changes. This machinery was sold for ₹ 1,00,000. prepare machinery account for 4 years on the basis of calendar year.

Rectify the following entries assuming that the narration in each case is correct:

Journalise the following transactions:

2017		₹
Dec. 01	Hema started business with cash	1,00,000
Dec. 02	Open a bank account with SBI	30,000
Dec. 04	Purchased goods from Ashu	20,000
Dec.06	Sold goods to Rahul for cash	15,000
Dec.10	Bought goods from Tara for cash	40,000
Dec.13	Sold goods to Suman	20,000
Dec.16	Received cheque from Suman	19,500
	Discount allowed	500
Dec.20	Cheque given to Ashu on account	10,000
Dec.22	Rent paid by cheque	2,000
Dec.23	Deposited into bank	16,000
Dec.25	Machine purchased from Parigya	10,000
Dec.26	Trade expenses	2,000
Dec.28	Cheque issued to Parigya	10,000
Dec.29	Paid telephone expenses by cheque	1,200
Dec.31	Paid salary	4,500

Draw Bank Reconciliation Statement showing adjustment between your Cash Book and Pass Book as on 31st March, 2011.

1. On 31st March, 2011 your pass book showed a balance of ₹ 6,000 to your credit.
2. Before that date, you had issued cheques amounting to ₹ 1,500 of which cheques of ₹ 900 have been presented for payment.
3. A cheque of ₹ 800 paid by you into the bank on 29th March, 2011 is not yet credited in pass book.
4. There was a credit of ₹ 85 for interest on Current Account in the pass book.
5. On 31st March, 2011 a cheque for ₹ 510 received by you and was paid into bank but the same was omitted to be entered in cash book.

Explain the nature of Accounting Standards.

On December 31, 2017, the cash book of Mittal Bros. Showed an overdraft of ₹ 6,920. From the following particulars prepare a Bank Reconciliation Statement and ascertain the balance as per passbook.

1. Debited by bank for ₹ 200 on account of Interest on overdraft and ₹ 50 on account of charges for collecting bills.
2. Cheques drawn but not encashed before December, 31, 2017 for ₹ 4,000.
3. The bank has collected interest and has credited ₹ 600 in passbook.
4. A bill receivable for ₹ 700 previously discounted with the bank had been dishonoured and debited in the passbook.
5. Cheques paid into bank but not collected and credited before December 31, 2017 amounted ₹ 6,000.