Journal — Account STD 11 Commerce — Question

On 1st April, 2015, Grand Ltd. purchased a machinery for ₹ 3,00,000 and incurred ₹ 21,000 towards freight and insurance, ₹ 3,000 towards carriage inwards and ₹ 6,000 towards installation charges. It has estimated that the machinery will have a scrap value of ₹ 30,000 at the end of the useful life which is four years. What will be the annual depreciation and the value of machinery after four years according to the Straight Line Method? Ignore GST.

Profit is earned on sale of Fixed Asset. What should be the accounting treatment of this profit?

Name two items which are written in minus column while starting with Debit balance of Cash Book.

What is the full form of IFRS?

What are the two sides of an account called?

What are special purpose book?

What is meant by rectifying entry?

Prepare a bank reconciliation statement, taking imaginary figures, starting with the credit balance as per Cash Book.

Which of these errors would be disclosed by the Trial Balance and why:

1. Cheque of ₹ 9,500 from Vikas entered in Vikas's Account as ₹ 5,900.
2. Selling expenses have been debited to Sales Account.
3. Credit sales of ₹ 3,000 entered in both the accounts as ₹ 300.
4. A purchase of ₹ 2,500 was omitted entirely from the books?

Briefly explain the Petty Cash Book.