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

Enter the following transactions in a single column Cash Book:

2023		₹
Mar-01	Commenced business with Cash	20,000
Mar-02	Bought goods for Cash	5,000
Mar-05	Sold goods for Cash	4,000
Mar-10	Goods purchased from Rajesh on Credit	10,000
Mar-13	Paid to Rajesh	7,000
Mar-15	Cash Sales	8,000
Mar-18	Purchased furniture for Cash	6,000
Mar-20	Paid Wages	380
Mar-24	Paid Rent	400
Mar-26	Received Commission	600
Mar-28	Withdrew for personal expenses	1,000
Mar-31	Paid Salary	900

If a transaction has the effect of decreasing an asset, is the decrease recorded as a debit or as a credit? If the transaction has the effect of decreasing a liability, is the decrease recorded as a debit or as a credit?

My bank Pass Book showed an overdraft of ₹ 6,500 on 31st March, 2017. This does not agree with the Cash Book balance. From the following particulars ascertain the Cash Book balance:- Cheques amounting to ₹ 15,000 were paid into bank in March, out of which, it appears, only cheques amounting to ₹ 4,500 were credited by bank. Cheques issued during March amounted in all to ₹ 11,000. Out of these cheques for ₹ 3,000 were unpaid on 31st March, 2017. The Pass Book stands debited with ₹ 150 for interest and with ₹ 30 for bank charges. The bank had paid the annual subscription of ₹ 100 to my club according to my instructions. The entries for interest, bank charges and subscription have not yet been made in Cash Book.

In the following Machinery Account, determine the missing values, if depreciation is to be charged @ 10% p.a. on the Original Cost. On 1st October, 2018, the machinery was sold for ₹ 1,20,000.

M/s Ram Narain & Sons of Kerala, who are dealers in readymade garments, purchased the following.

2017
May 2	Purchased from Fashion House, Mumbai (Maharashtra)
	100 Shirts @ ₹ 1,800 per Shirt
	75 T-shirts @ ₹ 1,600 per piece
	Less: Trade Discount 20%; and freight charges payable ₹ 10,000.
May 10	Purchased from Appolo Garments, Kerala
	65 Shirts @ ₹ 2,000 per piece
	80 T-shirts @ ₹ 1,500 per piece
May 15	Less: 20% Trade Discount and freight charges payable ₹ 2,000.
	Purchased from Garden Furniture House, Kolkata 12 Chairs @ ₹ 5,000 per Chair
May 25	Purchased from Amitabh Shirts, New Delhi for cash 120 Shirts @ ₹ 1,500 per Shirt

Prepare Purchase Book assuming CGST @ 9% and SGST @ 9%.

What is a Trial Balance? State any four functions of a Trial Balance.

How is Cash Discount recorded in the books of account?

Explain the primary objectives of Accounting.

Briefly appreciate the exact nature of accounting.