Basic Accounting Terms — Account STD 11 Commerce — Question

Write up Cash Book of Bhanu Partap with Cash and Bank Columns from the following transactions:

2017		(₹)
March 1	Cash-in-hand	2,710
	Cash at Bank	27,500
March 3	Received from Subhash	3,500
March 4	Sold goods for cash	10,000
March 7	Paid Rent by Cheque	800
March 8	Paid Sohan by cheque	3,000
March 10	Bought goods for cash	15,000
March 12	Paid cash for stationery	200
	Drew from Bank for office use	8,000
March 15	Received cheque from Surendra and sent it to Bank	6,600
March 16	Paid for advertisement	750
March 18	Issued cheque in favour of Nath Brothers	4,300
March 19	Cash Sales	13,000
	Paid into Bank	16,000
March 20	Received cheque from Vinod and sent it to Bank	2,400
March 22	Bought Scooter and paid for the same by cheque	18,000
March 25	Bank returned Surendra's cheque dishonoured
March 28	Paid salary by cheque	7,200
	Paid Trade expenses	2,000
March 29	Cash sales	9,500
March 30	Paid into Bank	10,000

Prove that accounting equation is satisfied in all the following cases:

1. Commenced business with cash ₹ 50,000.
2. Paid rent ₹ 4,000 including ₹ 1,000 as advance.
3. Bought goods for cash ₹ 30,000 and on credit ₹ 20,000.
4. Sold the goods bought on credit for ₹ 25,000.
5. Purchased furniture worth ₹ 10,000 for office use and for ₹ 5,000 for domestic use.

From the following particulars, prepare the proprietor's Capital Account:

		₹
2018
1 April	Commenced business with cash	2,00,000
2019
31 march	Net Loss as per Profit and Loss Account	18,000
31 march	Drawings during the period	15,000

Distinguish between Journal and Ledger.

A debtor who owes ₹ two lac to the Company is rumoured to be declared insolvent. Will you disclose this information in the books?

Classify the following into (i) Assets (ii) Liabilities (iii) Expenses and (iv) Revenues
Sales, Bank balance, Debtors, Bank Overdraft, Creditors, Salary to the manager,Discount to debtors, Cost of goods sold

What is the object of preparing an account?

Original cost of a Machinery ₹ 5,20,000; Salvage Value ₹ 20,000. What will be the amount of depreciation for second year according to diminishing balance method @ 10% p.a.

Enter the following transactions in the Purchase Journal (Book) of M/s Gupta Traders of July
01 Bought from Rahul Traders as per invoice no.20041

40 Registers @ ₹ 60 each

80 Gel Pens @ ₹ 15 each

50 note books @ ₹ 20 each

Trade discount 10%.

15 Bought from Global Stationers as per invoice no.1132

40 Ink Pads @ ₹ 8 each

50 Files @ ₹ 10 each

50 Files @ ₹ 10 each

Trade Discount 5%

23 Purchased from Lamba Furniture as per invoice no. 3201

2 Chairs @ 600 per chair

1 Table @ 1000 per table

25 Bought from Mumbai Traders as per invoice no.1111

10 Paper Rim @ ₹ 100 per rim

400 drawing Sheets @ ₹ 3 each

20 Packets waters colour @ ₹ 40 per packet

Amrit prepared his Trial Balance on 31st March, 2019, which did not match. What step should he take to proceed further?