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

Raja Ltd. purchased securities for ₹ 50 lakh. At the end of the year, the market value of such securities was ₹ 40 lakh. While preparing the financial statements, the company valued the securities at cost i.e. at ₹ 50 lakh. Is it a correct treatment?

Give four examples each of ‘provision’ and ‘reserves’.

Pass entries in the books of Krishnan of Bengaluru (Karnataka) in the following cases:

1.	Purchased goods from Karunakaran of Chennai for ₹ 1,00,000. (IGST @18%)
2.	Sold goods to Ganeshan of Bengaluru for ₹ 1,50,000. (CGST @ 6% and SGST @ 6%)
3.	Sold goods to S. Nair of Kerala for ₹ 2,60,000. (IGST @18%)
4.	Purchased a Machinery for ₹ 80,000 from Surya Ltd. against cheque. (CGST @ 9% and SGST @ 9%)
5.	Paid rent ₹ 30,000 by cheque. (CGST @ 6% and SGST @ 6%)
6.	Purchased goods from Ram Mohan Rai of Bengaluru for ₹ 2,00,000. (CGST @ 6% and SGST @ 6%)
7.	Paid insurance premium ₹ 10,000 by cheque. (CGST @ 9% and SGST @ 9%)
8.	Received commission ₹ 20,000 by cheque which is deposited into bank. (CGST @ 9% and SGST @ 9%)
9.	Payment made of balance amount of GST.

Pass entries in the books of all parties in the following cases assuming CGST @ 6% and SGST @ 6%:

2018
March 1	Mahesh Chandra of Bihar purchased goods for ₹ 1,00,000 from Sunil Soren of Jharkhand and sold the same to Deepak Patnaik of Odisha for ₹ 1,50,000.
March 5	Deepak Patnaik sold goods to Suresh Yadav of Odisha for ₹ 1,80,000.
March 10	Suresh Yadav sold goods to Ravi Chakravarti of West Bengal for ₹ 2,50,000.
March 14	Ravi Chakravarti sold goods costing ₹ 2,50,000 to Sanjay Diwedi of West Bengal at a profit of 40% on cost.

What is a Credit Note?

Show the accounting equation on the basis of following transactions:

1. Commenced business with Cash ₹ 20,000; Goods ₹ 50,000 and Furniture ₹ 30,000.
2. Purchased goods from Gopal on Credit ₹ 40,000.
3. Sold goods for Cash ₹ 40,000 (costing ₹ 30,000).
4. Sold goods to Ram on Credit ₹ 65,000 (costing ₹ 50,000).
5. Withdrew for personal use goods costing ₹ 5,000.
6. Purchased typewriter for personal use of the proprietor ₹ 20,000.
7. Purchased chairs for office use for Cash ₹ 10,000.
8. Paid for printing ₹ 500 and received Commission ₹ 1,200.
9. Introduced fresh Capital ₹ 40,000.
10. Paid to Gopal ₹ 30,000.

What is the main objective of setting accounting standards?
OR
What is meant by Accounting Standards? Explain one objective of Accounting Standards.

Write a short note on 'balancing an account'. Explain by balancing a Cash Account.