Journal — Account STD 11 Commerce — Question

M/s. Auto Help, Delhi purchased 500 pieces of motor cycle horns at ₹ 100 each plusIGST @ 12% from M/s G.S., Auto, Ghaziabad, (UP). Trade terms settled were: Trade Discount will be allowed @ 10% and Cash Discount @ 5% if payment is made within 7 days. M/s. Auto Help made the payment after 30 days. Determine the amount of Trade Discount and Cash Discount.

When you proceed to reconcile the Bank Account starting with 'Credit' Cash Book balance. how will you deal with the transactions?

1. Cheques issued but not presented for payment.
2. Cheques deposited but not yet credited.
3. Bank charges charged by the bank not recorded in the Cash Book.
4. Interest allowed by the bank not recorded in the Cash Book.

"Cancellation entry is not required when a bill is renewed.” Do you agree?

Indicate how Accounting Equation is affected if payment is made to a creditor?

GSC Co. purchased goods from Mohan & Co. for ₹ 50,000 plus CGST and SGST @ 6% each. As per the terms, if GSC Co. made full payment to Mohan & Co. within 15 days it will get Cash Discount of 2%. GSC Co. paid ₹ 28,000 within the stipulated time. Determine the amount of Cash Discount that GSC Co. will get.

Give the rules of debit and credit of the three types of accounts.

1. A had a capital of ₹ 75,000 on 1st April, 2018. He had also goods amounting to ₹ 15,000 which he had purchased on credit and the payment had not been made. Find out the value of the total assets of the business.
2. After a period of one month, he came to know that he had suffered a loss of ₹ 1,700. He withdrew ₹ 800 for his personal use. Find out his capital and assets of the business.

Name two items which are written in Minus Column while starting with Credit balance of Pass Book.

Mr. Vishwanath established a Travel Agency. Over the years the Travel Agency earned high reputation. Mr. Vishwanath considers the value of goodwill of his Travel Agency at ₹ 50 lac. He wants to record the value of the goodwill in the books of accounts. Can he do so?

Which transactions will:

1. Decrease the Assets and Decrease the Capital.
2. Increase the Assets and Increase the Liabilities.
3. Increase the Assets and Decrease another Asset.
4. Decrease the Assets and Decrease the Liabilities.