Trial Balance and Rectification of Errors — Account STD 11 Commerce — Question

Original cost of a Machinery ₹ 5,20,000; Salvage Value ₹ 20,000. What will be the amount of depreciation for second year according to diminishing balance method @ 10% p.a.

What is the reason that the capital expenditure is shown in the Balance Sheet?

Elucidate the following statement:
Cash Book is both Journal and Ledger'.

A sold goods to B for ₹ 20,000 plus CGST and SGST @ 9% each on credit 3 months. B paid A ₹ 3,600 by cheque and accepted a draft for the balance amount. The draft was endorsed in favour of C, who got the payment on maturity.
Give Journal entries in the books of A.

Following errors affecting the accounts of the year 2018-19 were detected in the books of Das & Co., Meerut:

1. Sale of old furniture for ₹ 5,000 was treated as sales of goods.
2. Rent of proprietor’s residence ₹ 6,000 was debited to Rent Account.
3. Cash received from Rajesh ₹ 2,150 was credited to Brajesh.

Pass the rectifying Journal entries. State the nature of each of these mistake

'Accounting Standards have been evolved to improve the reliability and credibility of Financial Statements. Accounting Standards provide the solution in case of conflicts among various groups'. In the light of this statement, enumerate the objectives of Accounting Standards.

Do you agree that a Sales Book is used to record invoices issued to customers in respect of goods sold on credit and not cash? Give reasons.

Enter the following transactions in the Journal of Arun Govil & Co.

2018
June 1	Arun Govil & Co. paid into bank as capital ₹ 6,00,000.
Jane 3	Purchased goods from Mukesh of the list price of ₹ 2,00,000 at 10% trade discount.
June 4	One-fourth of the above goods returned to Mukesh for not being upto specifications.
June 6	Issued a cheque to Mukesh for the amount due to him after deducting 2% as cash discount.
June 7	Withdrew from bank ₹ 2,50,000 for office use and ₹ 10,000 for personal use.
June 10	Purchased a machinery for ₹ 1,00,000 and spent ₹ 5,000 on its installation. Payment for machinery was made by cheque and installation expenses were paid in cash.
June 12	Sold goods for ₹ 1,00,000 to Amar.
June 13	Amar clears his account by giving a cheque of ₹ 98,500. Cheque is immediately sent to bank.
June 15	Purchased stationery for personal use ₹ 3,000 and for office use ₹ 5,000.
June 20	Purchased land for ₹ 2,00,000 and paid 1% as brokerage and ₹ 15,000 as registration charges on it. Entire payment is made by Cheque.
June 30	Wages due to labourers ₹ 20,000 and salary due to the clerk ₹ 30,000.

Show the accounting equation on the basis of the following transaction:

a.	Udit started business with: (i) Cash (ii) Goods	₹ 5,00,000 ₹ 1,00,000
b.	Purchased building for cash	₹ 2,00,000
c.	Purchased goods from Himani	₹ 50,000
d.	Sold goods to Ashu (Cost ₹ 25,000)	₹ 36,000
e.	Paid insurance premium	₹ 3,000
f.	Rent outstanding	₹ 5,000
g.	Depreciation on building	₹ 8,000
h.	Cash withdrawn for personal use	₹ 20,000
i.	Rent received in advance	₹ 5,000
j.	Cash paid to himani on account	₹ 20,000
k.	Cash received from Ashu	₹ 30,000

(Ans : Assets = Cash ₹ 2,92,000 + Goods ₹ 1,25,000 + Building ₹ 1,92,000 + Debtors ₹ 6,000 = 6,15,000: Laibilities = Creditors ₹ 30,000 + Outstanding Rent ₹ 5,000 + Accounts receiavable ₹ 5,000 + Capital ₹ 5,75,000 = ₹ 6,15,000)

Prepare a proforma of Petty Cash Book with imaginary figures?