Recording of Transactions - 2 — Account STD 11 Commerce — Question

Distinguish between Reserve and Provision on the basis of:

1. Appropriation or charge.
2. Financial Position.
3. Distribution.

What is the purpose of posting J.F. numbers at the time entries are posted to the accounts.

A machine was purchased on 1st April, 2013. The balance of this machine on 31st March, 2016 is ₹ 5,83,200. Depreciation is charged @ 10% p.a. on written down value method. What was the cost price of the machine on 1st April, 2013?

Define Accounting Standards. Explain its any two objectives.

Following balances appeared in the books of Ashok, Delhi on 1st April, 2019:
Assets: Cash ₹ 50,000; Stock ₹ 30,000; Debtors−Ram ₹ 50,000; Machinery ₹ 60,000.
Liabilities: Creditor−Rajesh ₹ 30,000.
The following transactions took place in April, 2019:

2019		₹
April 4	Sold goods for cash	7,000
April 6	Goods returned by Ram, Delhi	1,000
April 10	Purchased goods from Rajesh, Jaipur (Rajasthan) of list price ₹ 10,000 for	9,000
April 15	Bought goods of list price of ₹ 15,000 from Rakesh, Kolkata less 10% trade discount and 5% cash discount and paid 40% of amount immediately.
April 20	Paid to Rajesh in full settlement of his account*	38,600
April 25	Paid for the life insurance premium of the proprietor*	500
April 30	Received commission (Including CGST and SGST @ 6% each)	2,000

CGST and SGST @ 6% each is levied on intra-state transactions and IGST is levied @ 12% on inter-state transactions. Transactions marked with (*) are not subject to levy of GST.
Pass Journal entries for the above transaction, post them into the Ledger and prepare the Trial Balance on 30th April, 2019.

During the year the company purchased ballpoint pens of ₹ 500. These were issued to employees and were still in use at the end of the year. Which accounting concept you would follow in dealing with this item?

On 1st April, 2019, the following were Ledger balances of M/s. Ram & Co., Delhi:
Cash in Hand ₹ 300; Cash at Bank ₹ 7,000; Bills Payable ₹ 1,000; Zahir (Dr.) ₹ 800; Stock ₹ 4,000; Gobind (Cr.) ₹ 2,000; Sharma (Dr.) ₹ 1,500; Rahul (Cr.) ₹ 900; Capital ₹ 9,700.
Transactions during the month of April, 2019 were:

2019		₹
April 2	Bought goods from Gobind, Delhi	900
April 3	Sold goods to Sharma, Kanpur	1,000
April 5	Bought goods from Rahul, Delhi	1,200
April 8	Sold goods to Zahir, Kolkata	500
April 15	Paid Gobind by cheque on account*	1,500
April 18	Received from Sharma a cheque of	2,000
	Allowed him discount*	50
April 20	Sold goods to Sharma, Kanpur	800
April 20	Paid rent by cheque	200
April 25	Sold goods to Zahir, Kolkata	1,000
April 30	Paid salaries in cash*	300

Inter-state transactions are subject to levy of IGST @ 12% and Intra-state transactions are subject to levy of CGST and SGST @ 6% each. GST is not levied on transactions marked with (*).
Post the above transactions to the Ledger and prepare the Trial Balance on 30th April, 2019.

What are the different uses available to a holder for dealing with bills receivable?

Give two examples of entries which appear in a 'Journal Proper'.

Distinguish between Revenue Reserves and Capital Reserves.