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

What will be effect of the following on the Accounting Equation?

1. Started business with cash ₹ 45,000
2. Opened a Bank Account with a deposit of ₹ 4,500
3. Bought goods from M\s. Sun & Co. for ₹ 11,200

What is a bank overdraft?

Do you think that the Convention of conservatism results in creation of secret reserves?

On 1st April, 2019, the position of Tendulkar was as follows: Stock-in-Hand ₹ 2,88,000; Bills Payable ₹ 48,000; Cash at Bank ₹ 2,16,000; Plant and Machinery ₹ 1,20,000; Debtors ₹ 60,000; Creditors ₹ 96,000; Investment ₹ 2,40,000, Loan from Suresh ₹ 1,80,000. What was the amount of Tendulkar's capital on the date? Pass an opening Journal entry.

Briefly explain the elements of Statement of Financial Position.

Following balances appeared in the books of Ram & Shyam on January 1, 2017:
Assets: Cash in hand ₹ 30,000; Stock ₹ 36,000; Lal Chand ₹ 7,600; Mukesh Khanna ₹ 16,200; Furniture ₹ 8,000.
Liabilities: Ghanshyam ₹ 6,000; Vinod ₹ 8,000.
Following transactions took place during Jan. 2017:

2017
Jan. 2	Purchased Typewriter for ₹ 7,500
Jan. 4	Sold goods for Cash of the list price of ₹ 25,000 at 20% trade discount and 5% Cash discount
Jan. 6	Sold goods to Gopal Seth for ₹ 10,000
Jan. 8	Gopal Seth returned goods for ₹ 1,500
Jan. 12	Purchased goods from Arun ₹ 12,000, and from varun ₹ 15,000
Jan. 13	Settled Arun's account in full after deducting 5% for cash discount
Jan. 14	Paid cash to Ghanshyam in full settlement of his account
Jan. 16	Received ₹ 7,500 from Lal Chand in full settlement of his account
Jan. 17	Purchased a Scooter for office use ₹ 18,000
Jan. 20	Sold goods for cash 20,000
Jan. 22	Received from Gopal Seth ₹ 4,850 and discount allowed ₹ 150
Jan 27	Paid for Wages ₹ 7,000 and Salaries ₹ 3,000.
Jan. 28	Withdrew goods for ₹ 2,000 and Cash ₹ 1,500 for private use
Jan. 29	Paid for Life Insurance Premium of the Proprietor ₹ 1,600

Journalise the above transactions, post them into Ledger, balance them and prepare a Trial Balance.

Trial Balance is a link between ledger and final accounts.

Fill in the missing information in the following journal entries:

Open 'T' shape account for Machinery and write the following on the proper side:

		(₹)
i.	Machinery purchased for	5,00,000
ii.	Machinery sold	1,20,000
iii.	Machinery discarded	50,000
iv.	New Machinery purchased	2,00,000
v.	Machinery destroyed	40,000

Prepare Accounting Equation from the following:

1. Started business with cash ₹ 1,00,000 and Goods ₹
   20,000.
2. Sold goods worth ₹ 10,000 for cash ₹ 12,000.
3. Purchased furniture on credit for ₹ 30,000.