Introduction to Accounting — Account STD 11 Commerce — Question

Journalise the following trasactions:

		₹
1.	Charge depreciation on Machinery	20,000
2.	Salary due to Office Clerks	1,00,000
3.	Received cash for Bad-Debts written off last year	5,000
4.	Purchased goods from Ashok & Co. for ₹ 50,000 at 20% Trade Discount. Half the payment was made in cash.
5.	Issued cheque to Ashok & Co. in full settlement	19,500
6.	Paid Life Insurance Premium by cheque	6,000
7.	Proprietor used goods for household purposes	20,000
8.	Goods given free to a hospital out of business	10,000

From the following particulars of a trader, prepare a Bank Reconcilation Statement as on 31st March, 2019.

1. Bank overdraft as per Cash Book ₹ 52,100.
2. During the month, the total amount of cheques for ₹ 94,400 were deposited into the bank but of these, one cheque for ₹ 11,160 has been entered into the Pass Book on 5th April.
3. During the month, cheques for ₹ 89,580 were drawn in favour of creditors. Of them, one creditor for ₹ 38,580 encashed his cheque on 7th April whereas another for ₹ 4,320 have not yet been encashed.
4. As per instructions the bank on 28th March paid out ₹ 10,500 to a creditor but by mistake, the same has not been entered in the Cash Book.
5. According to agreement, on 25th March, a debtor deposited directly into the bank ₹ 9,000 but the same has not been recorded in the Cash Book.
6. In the month of March, the bank without any intimation, debited his account for ₹ 120 as bank charges and credited the same for ₹ 180 as interest.
7. Cash deposit of ₹ 5,780 in bank was recorded as ₹ 7,580. The error was rectified by the Bank before 31st March, 2019.

Put the following on the proper side of a Cash Account, a Debtor's Account and a Creditor's Account:

S.No		₹
i	Sold goods to Sanjay on credit	50,000
ii	Sold goods to Mohan for cash	20,000
iii	Purchased goods from Ram on credit	25,000
iv	Cash received from Sanjay	19,000
v	Goods returned by Sanjay	2,000
vi	Paid rent	500
vii	Cash paid to Ram	15,000

On January 01, 2011, Satkar Transport Ltd., purchased 3 buses for ₹ 10,00,000 each. On July 01, 2013, one bus was involved in an accident and was completely destroyed and ₹ 7,00,000 were received from the Insurance Company in full settlement. Depreciation is written off @15% p.a. on diminishing balance method. Prepare bus account from 2011 to 2014. Books are closed on December 31 every year.

On 1st January 2017, Amar sold goods to Akbar for ₹ 60,000. Akbar accepts two bills of ₹ 25,000 for 2 months, and ₹ 35,000 for 3 months.
The first bill was discounted from bank on 3rd January 2017 for ₹ 24,900 and 2nd bill endorsed to Anthony on 15th January 2017.
First bill was met on maturity but second bill got dishonoured and noting charges of ₹ 200 being paid. Amar charged ₹ 300 as Interest and drew another bill for the amount due for further 2 months. This bill was met on maturity.
Pass the necessary Journal Entries in the books of Amar, Akbar and Anthony.

A firm purchased on 1st April, 2009, a second-hand Machinery for ₹ 36,000 and spent ₹ 4,000 on its installation. On 1st Oct. in the same year another Machinery costing ₹ 20,000 was purchased. On 1st Oct., 2011, the Machinery bought on 1st April, 2009 was sold off for ₹ 12,000 and on the same date a fresh Machine was purchased for ₹ 64,000. Depreciation is provided annually on 31st March, @ 10% p.a. on the Written Down Value Method. Show the Machine A/c from 1st April, 2009 to 31st March, 2013.

What are transfer entries?

State briefly the need for providing depreciation.

A limited company purchased on 01-01-2017 a plant for ₹ 38,000 and spent ₹ 2,000 for carriage and brokerage. On 01-04-2018 it purchased additional plant costing ₹ 20,000. On 01-08-2019 the plant purchased on 01-01-2017 was sold for ₹ 25,000. On the same date, the plant purchased on 01-04-2018 was sold at a profit of ₹ 2,800. Depreciation is provided @10% per annum on diminishing balance method every year. Accounts are closed on 31st December every year. Show the plant A/c for 3 years.