Recording of Transactions - 1 — Account STD 11 Commerce — Question

Explain the following briefly with appropriate example:
Revenue Recognition (Realisation) Concept.

Distinguish between an accomodation bill and a trade bill.

Jouranlise the following transactions in the books of Harpreet Bros:

1. ₹ 1,000 due from Rohit are now bad debts.
2. Goods worth ₹ 2,000 were used by the proprietor.
3. Charge depreciation @ 10% p.a for two month on machine costing ₹ 30,000.
4. Provide interest on capital of ₹ 1,50,000 at 6% p.a. for 9 months.
5. Rahul become insolvent, who owed is ₹ 2,000 a final dividend of 60 paise in a rupee is received from his estate.

A Limited purchased a machine on 1st July 2011 for ₹ 3,00,000 and on 1st January 2013 bought another machinery for ₹ 2,00,000. On 1st August 2013 machine bought in 2011 was sold for ₹ 1,60,000. Another machine was bought for ₹ 1,50,000 on 1st October 2013. It was decided to provide depreciation @ 10% p.a. on written down value method assuming books are closed on 31st March each year. Prepare Machinery Account and Provision for depreciation account for 3 years.

Prepare the purchase book of M/s Shiv Stationers from the following:

2010
June 1	Purchased from Gagan Stationery Mart on credit
	70 dozens pencils @ ₹ 25 per dozen.
	10 dozens registers @ ₹ 15 per register.
June 10	Purchased from Amrit Furniture.
	2 Tables @ ₹ 1,500 per table.
June 15	Purchased 3 dozens ink pots @ ₹ 80 per dozen from Mehar Paper Co. And received cash discount of ₹ 50.
June 18	Purchased from Rehman Bros. on credit.
	5 reams of white paper @ ₹ 50 per ream
	120 pens @ ₹ 60 per dozen
	Less: trade discount of 10%.

On 10th January, 2017, A sells goods to B for ₹ 12,000. On that date, B accepted a bill drawn upon him by A at two months for ₹ 12,000. A retains the bill till due date and on due date sends the bill to the Banker for collection. In due course, A receives the information from the Bank that the bill has been duly met.
Pass Journal Entries in the books of A and B.

From the following particulars, prepare a, bank reconciliation statement as at March 31, 2017.

1. Balance as per cash book ₹ 3,200
2. Cheque issued but not presented for payment₹ 1,800
3. Cheque deposited but not collected upto March 31, 2014 ₹ 2000
4. Bank charges debited by bank ₹ 150

On 30th June, 2014 the Pass Book of Sh. Mahabir Prashad showed a balance of ₹ 22,000. On comparing the Pass Book with Cash Book the following differences were found:-

1. Mahabir Prashad had paid into the Bank on 26th June four cheques for ₹ 3,000; ₹ 6,000; ₹ 8,000 and ₹ 10,000. Of these, the cheque for ₹ 6,000 was credited by the bank in July 2014.
2. On 23rd June three cheques were drawn for ₹ 12,000; ₹ 13,000 and ₹ 16,000. The first two cheques were presented to the bank for payment in June and the third in July 2014.
3. Cheques amounting to ₹ 3,600 were deposited in the bank but no entry was passed in the Cash Book.
4. Bank charges entered in Cash Book twice ₹ 50.
5. Cheque received entered twice in the Cash Book ₹ 3,200.

Prepare a Bank Reconciliation Statement as on 30th June 2014.

Explain the terms 'Reserve' and 'Provision' with examples.

On 1st July, 2019, A drew a bill for ₹ 5,000 on B payable after 3 months. A discounted it with the Bank for ₹ 4,850. On maturity, B failed to pay the amount of his acceptance and the bank had to pay ₹ 50 as noting charges.
Pass the necessary Journal entries in the books of A and B.