Bank Reconciliation Statement — Account STD 11 Commerce — Question

Prepare a Purchase Book with atleast two items in it and show its posting.

Explain the following briefly with appropriate example:
Conservation or Prudence Concept.

“In case of a long term asset, repair and maintenance expenses are expected to rise in later years than in earlier year”. Which method is suitable for charging depreciation if the managernent does not want to increase burden on Profit & Loss Account on account of depreciation and repair.

On which side the increase in the following accounts will be recorded? Also mention the nature of account:

1. Furniture
2. Rent Paid
3. Commission Received
4. Salary Paid
5. Proprietor's Account
6. Debtor
7. Creditor

Exe Co. has purchased 50 computers from HCL and is allowed a discount of ₹10,000 for purchase thereof. Is the discount allowed Trade Discount or a Cash Discount? How will you record it in the books of account?

Shyam purchased a building for ₹ 20 lakh. After a period of five years, the depreciation charged on the building amounted to ₹ 3 lakh. However, due to boom in the property market, the current market value of the building is ₹ 28 lakh. State the value at which building should be recorded in the books of accounts. Also, give reasons for the same.

Give specimen of the following, with two entries in each:

1. Purchase Book.
2. Purchase Return Book.

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.

What is meant by renewal of a bill of exchange?

Give journal entries of M/s. Mohit traders; post them to the Ledger from the following transactions:

August, 2017		₹
1	Commenced business with cash	1,10,000
2	Opened bank account with H.D.F.C.	50,000
3	Purchased furniture	20,000
7	Bought goods for cash from M/s. Rupa Traders	30,000
8	Purchased good from M/s. Hema Traders	42,000
10	Sold goods for cash	30,000
14	Sold goods on credit to M/s. Gupta Traders	12,000
16	Rent paid	4,000
18	Paid trade expenses	1,000
20	Received cash from Gupta Traders	12,000
22	Goods return to Hema Traders	2,000
23	Cash paid to Hema Traders	40,000
25	Bought postage stamps	100
30	Paid salary to Rishabh	4,000