6 Marks Question

Question 16 Marks

Ganga Ltd. purchased a machinery on January 01,2014 for ₹ $5,50,000$ and spent ₹ 50,000 on its installation. On September 01, 2014 it purchased another machine for ₹ $3,70,000$. On May 01,2015 it purchased another machine for $₹ 8,40,000$ (including installation expenses). Depreciation was provided on machinery @10\% p.a. on original cost method annually on December 31. Prepare:
i. Machinery account and depreciation account for the years 2014, 2015, 2016 and 2017.
ii. If depreciation is accumulated in provision for Depreciation account then prepare machine account and provision for depreciation account for the years 2014, 2015,2016 and 2017.

Answer

The balance of machine account is ₹.12, 22,667.

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Question 26 Marks

On 1st January 2011, Hari Om purchased 6 machines @ Rs 15,000 each. His accounting year ends on 31 st December. Depreciation at the rate of $10 \%$ on the original cost was to be charged.
On 1st January 2012, one machine was sold for Rs 12,500 and on 1st January 2013, a second machine was sold for Rs 12,500 . An improved model which cost Rs 28,000 was purchase on 1st July 2012. Show Machine account till 2013.

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Question 36 Marks

Rectify the following errors:
i. Goods for ₹ 5,500 were purchased from Royal Traders on credit, but no entry has yet been passed.
ii. Purchase Return for ₹ 1,500 not recorded in the books.
iii. Goods for ₹ 2,000 sold to Sita Traders on Credit were entered in the sales book as ₹ 200 only.
iv. Goods of the value of ₹ 1,800 returned by Suraj & Co. were included in stock, but no entry was passed in the books.
v. Goods purchased for ₹ 900 , entered in the purchases book as ₹ 9,000
vi. An invoice for goods sold to X was overcast by ₹ 100

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Question 46 Marks

During the course of an accounting year, an Accountant found a difference in the trial balance. He puts this difference in a newly opened suspense account. Subsequently, he located the following errors in his books of account:
i. Goods purchased from Satyam for ₹ 10,000 , but entered in the sales book.
ii. Received a bill receivable for ₹ 18,000 from Gopal, but recorded in bills payable book.
iii. An item of ₹ 4,000 in respect of purchases returns, wrongly debited to purchases account.
iv. An item of ₹ 2,000 relating to the pre-paid salary account omitted to be brought forward.
v. Paid ₹ 1,000 on account of repair of furniture, but wrongly debited to furniture account.
Pass journal entries to rectify the above-mentioned errors and prepare suspense account assuming that no error remained undetected.

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Question 56 Marks

Journalise the following transactions of Ram, Delhi :

2018		Rs.
Jan-01	Ram commenced business with cash	30,000
Jan-02	Opened a bank account with Union Bank by cheque from savings account	21,000
Jan-03	Purchased goods from Rahul in Cash	10,000
Jan-07	Withdrew cash from bank for office use	3,000
Jan-10	Sold goods to Hari, Delhi on credit	5,000
Jan-15	Purchased goods from Shyam, Meerut (UP)	15,000
Jan-20	Cash sales	3,000
Jan-25	Paid to Shyam	14,750
	Discount Received	250
Jan-31	Paid Salaries	10,000

CGST and SGST is levied @ $6 \%$ each on intra-state sale and purchase. IGST is levied @ $12 \%$ on inter-state sale and purchase.

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Question 66 Marks

The following balances appeared in the books of Sumit Stores on 1st April, 2023: Assets: Cash ₹ 15,000 ; Bank balance ₹ 5,000 ; Stock ₹ 40,000; Furniture ₹ 3,600 ; Debtors ₹ 24,000 ( X ₹ 6,000 ; Y ₹ 8,000 and Z ₹ 10,000 ).
Liabilities Bank Loan ₹ 10,000 ; Creditors ₹ 12,500 (Ajit ₹ 5,000 , Vinay ₹ 7,500 ). Following transactions took place during April 2023:

April 2	Bought goods from Karim for ₹ 20,000 at a trade discount of 10% and cash discount of 2%. Paid 60% amount immediately
April 4	Sold goods to X for ₹ 9,000.
April 5	Received ₹ 14,800 from X in full settlement of his account.
April 6	Cash deposited into bank ₹ 10,000.
April 8	Cheque received from Y for ₹ 7,850 in full settlement of his account. This cheque was immediately deposited into bank.
April 10	Received a cheque from Z ₹ 2,000.
April 12	Cheque received from Z deposited into bank.
April 15	Cheque received from Y dishonoured.
April 16	Cash sales ₹ 15,000; Out of this amount ₹ 12,000 deposited into bank.
April 16	Amount due to Ajit paid by Cheque.
April 18	Old newspapers sold ₹ 50.
April 18	Old furniture sold ₹ 750.
April 20	Z became insolvent and 40 paise in a rupee could be received from his
April 22	Purchased goods from Govind and paid by cheque ₹ 8,000.
April 24	Sold half of the above goods to Chandu at a profit of 30% on cost.
April 25	Proprietor withdrew for private use ₹ 2,000 from office and ₹ 3,000 from the bank.
April 30	Paid salary to Moti by Cheque ₹ 2,000.
April 30	Paid Rent by cheque ₹ 1,500.
April 30	Paid trade expenses ₹ 500.

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Account 6 Marks Question

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