Ledger — Account STD 11 Commerce — Question

Prepare journal from the transactions given below:

1. Proprietor withdrew for private use ₹ 10,000 from bank.
2. Goods costing ₹ 50,000 were burnt by fire.
3. Purchased machinery for cash ₹ 1,50,000 and paid ₹ 2,000 on its installation.
4. Charge 5% depreciation on building costing ₹ 2,00,000 and 8% depreciation on furniture costing ₹ 5,000.
5. Prepaid salary ₹ 2,000.
6. Kapil who owed us ₹ 20,000 becomes insolvent and nothing is received from his estate.

Bobby opened a consulting firm and completed these transactions during November, 2017:

1. Invested ₹ 4,00,000 cash and office equipment with ₹ 1,50,000 in a business called Bobbie Consulting.
2. Purchased land and a small office building. The land was worth ₹ 1,50,000 and the building worth ₹ 3,50,000. The purchase price was price was paid with ₹ 2,00,000 cash and a long term note payable for ₹ 3,00,000.
3. Purchased office supplies on credit for ₹ 12,000.
4. Bobbie transferred title of motor car to the business. The motor car was worth ₹ 90,000.
5. Purchased for ₹ 30,000 additional office equipment on credit.
6. Paid ₹ 75,00 salary to the office manager.
7. Provided services to a client and collected ₹ 30,000
8. Paid ₹ 4,000 for the month’s utilities.
9. Paid supplier created in transaction c.
10. Purchase new office equipment by paying ₹ 93,000 cash and trading in old equipment with a recorded cost of ₹ 7,000.
11. Completed services of a client for ₹ 26,000. This amount is to be paid within 30 days.
12. Received ₹ 19,000 payment from the client created in transaction k.
13. Bobby withdrew ₹ 20,000 from the business.

Analyse the above stated transactions and open the following T-accounts: Cash, client, office supplies, motor car, building, land, long term payables, capital, withdrawals, salary, expense and utilities expense.

On 1st April, 2019, Mohit, Delhi started business with a capital of ₹ 50,000. He made the following transactions during the month of April:

2019		₹
April 3	Purchased goods from Rita, Delhi on credit for	20,000
April 4	Cash paid to Rita	10,000
April 6	Goods sold to Rohit, Chandigarh	25,000
April 8	Received cash from Rohit	20,000
April 12	Goods purchased from Rita	12,000
April 18	Cash paid to Rita	20,000
April 25	Goods sold to Rohit, Chandigarh	10,000
April 30	Received cash from Rohit	6,000

You are required to journalise the above transactions and show the respective Ledger accounts.

Is the agreement of a Trial Balance absolute proof of the accuracy of the books of account? If not, what are the errors which remain even after agreement?

What is Trade Discount? Give an example.

What is meant by 'Retiring a bill under rebate'?

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

Give difference between Book-keeping and Accounting on the basis of stage, special skills and nature of job.

Cash Basis of Accounting is not a better basis for depicting the correct financial position of an enterprise. Do you agree? Give reasons in support of your answer.