Theory Base of Accounting — Account STD 11 Commerce — Question

Is it possible to pass a single journal entry for two or more transactions?

Open a 'T' shape Cash Account with the following transactions:

S.No		₹
i	Mohan started business with cash	40,000
ii	Purchased Goods	20,000
iii	Sold Goods	24,000
iv	Paid Rent	400
v	Paid salaries	600
vi	Drew for personal use	1,000

What Journal entries will be made by the drawer in his books, when:

1. A Bill is drawn.
2. A Bill is discounted.
3. A Bill is dishonoured and noting charges paid.

Put the following on the proper side of Cash Account, Debtors's Account and Creditor's Account:

		(₹)
a.	Sold goods to Shankar on Credit	50,000
b.	Sold goods to Ghanshyam for Cash	30,000
c.	Purchased goods from Mohan on Credit	25,000
d.	Received from Shankar	29,000
e.	Shankar returned goods	1,000
f.	Sold goods to Shankar for Cash	5,000
g.	Returned goods to Mohan	2,000
h.	Paid Rent	4,000

What do you understand by ledger folio?

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.

What is a Personal Account? Is Capital Account a Personal Account? If yes, why?

Following balances appeared in the books of Radhika Traders as on 1st April, 2017:
Assets: Cash ₹ 8,000; Cash at Bank ₹ 7,000; Stock ₹ 30,000; Debtors; ₹ 36,000 (Mohan ₹ 10,000; Sohan ₹ 12,000; Dinesh ₹ 14,000); Furniture ₹ 5,000; Building ₹ 25,000.
Liabilities: Creditors− X ₹ 5,000; Y ₹ 6,000.
In April, 2017, the following transaction took place:

2017		₹
April 2	Bought goods of the list price of ₹ 6,000 from Khanna Brothers less 15% trade discount and 2% cash discount and paid 40% price at the same time.
April 3	Received a draft from Mohan in full settlement and deposited it into Bank
April 5	Purchased goods from Suresh of the list price of ₹ 8,000 at 20% trade discount and paid him by cheque.	9,750
April 8	Sold goods and received a cheque	25,000
April 10	Deposited the above cheque into Bank	12,000
April 12	Sohan deposited in our Bank A/c	4,000
April 16	Paid Income Tax by Cheque	5,600
April 20	Received a cheque from Sohan and sent to Bank	7,800
	Discount allowed	200
April 21	Withdrew from Bank−for office	2,000
	for private use	4,000
April 23	Sent a cheque to X in full settlement of his A/c	4,900
April 27	Cheque of Sohan returned by the bank as dishonoured.
April 28	Dinesh was declared insolvent and a payment of 60 paise in a ₹ received from his estate by a Cheque
April 30	Bank allowed Interest	350
	Paid for Rent by cheque	1,500
	Paid for traveling expenses by cheque	500

Pass Journal entries for the above transactions.

Give one distinction between books of original entry and ledger. Ledger.

Briefly explain the elements of Statement of Financial Position.