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

Explain the following terms with examples:

1. Capital Expenditure
2. Non-Current Assets

State three advantages of Sub-Division of Journal.

Prepare accounting equation from the following:

1. Started a business with cash ₹ 1,00,000 and goods worth ₹ 20,000.
2. Sold 50% of above goods at a profit of ₹ 2,000 on credit to Ram.
3. Rent paid ₹ 5,000.
4. Ram paid 50% of his balance in cash.

M/s Ram Narain & Sons of Kerala, who are dealers in readymade garments, purchased the following.

2017
May 2	Purchased from Fashion House, Mumbai (Maharashtra)
	100 Shirts @ ₹ 1,800 per Shirt
	75 T-shirts @ ₹ 1,600 per piece
	Less: Trade Discount 20%; and freight charges payable ₹ 10,000.
May 10	Purchased from Appolo Garments, Kerala
	65 Shirts @ ₹ 2,000 per piece
	80 T-shirts @ ₹ 1,500 per piece
May 15	Less: 20% Trade Discount and freight charges payable ₹ 2,000.
	Purchased from Garden Furniture House, Kolkata 12 Chairs @ ₹ 5,000 per Chair
May 25	Purchased from Amitabh Shirts, New Delhi for cash 120 Shirts @ ₹ 1,500 per Shirt

Prepare Purchase Book assuming CGST @ 9% and SGST @ 9%.

Explain any two Source Documents.

Give two advantages of GST.

Describe the purpose for the preparation of trial balance.

Explain the terms 'Reserve' and 'Provision' with examples.

Prepare Sales Return Book of Shiv Shankar, Delhi from the following transactions and post them into Ledger:

Name the books of original entry where the following transactions will be recorded with reasons thereof:

a	Goods Purchased from Ram Lal ₹ 5,000 on credit.
b	Provision for doubtful debts created @ 5% on debtors with book value of ₹ 10,000.
c	Defective goods sold to Babita on credit worth ₹ 4,000 were returned by her.
d	Purchased furniture on credit from Mr. Ratan Singh for ₹ 15,000 for use in the business.