Recording of Transactions - 2 — Account STD 11 Commerce — Question

Open 'T' shape account of our Debtor 'Ram' and write the following transactions on proper side:

		(₹)
i.	Sold goods to Ram on Credit	20,000
ii.	Received from Ram	15,000
iii.	Ram returned goods to us	3,000
iv.	Again sold goods to Ram on Credit	10,000
v.	Ram returned goods to us	1,000

Explain how the following transactions would be recorded in a Cash Book with Cash and Bank Columns?
Deposit of cheques (received from others) into Bank.

Explain the following concept:
Business Entity Concept.

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

1. Purchase Book.
2. Purchase Return Book.

Prepare Journal from the transactions given below:

		₹
(a)	Cash paid for installation of machine	500
(b)	Goods given as charity	2,000
(c)	Interest charge on capital @ 7% p.a. when total capital were	70,000
(d)	Received ₹ 1,200 of a bad debts written-off last year.
(e)	Goods destroyed by fire	2,000
(f)	Rent outstanding	1,000
(g)	Interest on drawings	900
(h)	Sudhir Kumar who owed me ₹ 3,000 has failed to pay the amount. He pays me a compensation of 45 paise in a rupee.
(i)	Commission received in advance	7,000

What is meant by the cash basis of accounting? Why is the cash basis of accounting not popular as a system of accounting?

Original Cost of a Machinery ₹ 5,00,000; Salvage value ₹ 20,000; Expected useful life 10 years. What will be the amount of depreciation for the fourth year according to original cost method? Also specify the rate of depreciation.

Classify the following into (i) Assets (ii) Liabilities (iii) Expenses and (iv) Revenues
Sales, Bank balance, Debtors, Bank Overdraft, Creditors, Salary to the manager,Discount to debtors, Cost of goods sold

Total of the Sales Book is posted to the credit side of the Sales Account in the General Ledger while individual account of customers is debited by the amount of their respective purchases. Is the above statement correct? Give reasons.

Following was the position of Harish & Co. as on 1st April, 2017:
Cash in Hand ₹ 10,000; Cash at Bank ₹ 16,800; Furniture ₹ 8,000; Stock ₹ 50,000; Debtors−Ram ₹ 8,000; Shyam ₹ 12,000; Creditors−Anil ₹ 4,000; Sunil ₹ 5,000.
Following transactions took place during April, 2017:

2017
April 2	Received a cheque from Ram in full settlement of his account after deducting 5% cash discount.
April 4	Deposited the above cheque into Bank.
April 5	Goods purchased for ₹ 20,000 at 10% trade discount and 5% cash discount. Payment made by cheque.
April 6	Discount allowed to him ₹ 140. Cheque deposited into the bank on the same day.
April 10	Cash paid to Anil after deducting 2% cash discount.
April 15	Old furniture sold for ₹ 800.
April 16	Sold goods to Shiv Parshad of the list price of ₹ 10,000 at a trade discount of 15%.
April 18	Shiv Parshad returned goods of the list price of ₹ 1,000.
April 20	Paid for furniture repairs to Bahadur Singh ₹ 100.
April 25	Received a cheque from Shiv Parshad after deducting 4% cash discount. Cheque was deposited into bank.
April 28	Bank charged ₹ 50 for 'Bank Charges'.
April 30	Received Commission ₹ 200.

Pass Journal entries for the above transactions.