Depreciation, Provisions and Reserves — Account STD 11 Commerce — Question

Mohit has the following transactions, prepare Accounting Equation:

State reasons for the following:
The Cash Account and the Bank Account are not posted in the Ledger.

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.

State with reasons whether the following receipts would be treated as Capital or Revenue:

1. ₹ 5,000 received from a customer whose account was previously written off as bad.
2. ₹ 20,000 received from sale of old machine.
3. ₹ 2,60,000 received from sale of stock-in-trade.
4. ₹ 5,00,000 is contributed by a partner as capital.
5. Took a loan of ₹ 10 Lac from Punjab National Bank.
6. Received ₹ 4 Lac as subsidy from State Government.
7. Received ₹ 8 Lac as grant from State Government for the construction of quarters for the staff.

Record the following transactions in the books of Sahdev & Sons assuming all transactions have been entered within the state of Bihar, Charging CGST and SGST @ 9% each.

1.	Bought goods from Nanak Bros. for ₹ 4,00,000 at 10% trade discount and 3% cash discount on purchase price. 25% of the amount paid at the time of purchase.
2.	Sold goods to Kumar & Sons. for ₹ 2,00,000 at 20% trade discount and 5% cash discount on sale price. 60% of the amount received by Cheque.
3.	Received from Gopi Chand ₹ 38,000 by Cheque after deducting 5% cash discount.
4.	Paid ₹ 20,000 for rent by Cheque.
5.	Paid ₹ 50,000 for salaries by Cheque.
6.	Goods worth ₹ 10,000 distributed as free samples.
7.	₹ 5,000 due from Chanderkant are bad-debts.
8.	Sold household furniture for ₹ 15,000 and the proceeds were invested into business.

Pass Journal entries of M/s Bhanu Traders, Delhi from the following transactions. Post them to the Ledger:

2019		₹
April 1	Commenced business with cash	1,50,000
April 2	Opened a bank account with PNB	50,000
April 3	Purchased furniture	20,000
April 7	Bought goods for cash from M/s. Rupa Traders, Delhi	30,000
April 8	Purchased goods from M/s. Hema Traders, Chandigarh	42,000
April 10	Cash sales	30,000
April 14	Sold goods on credit to M/s. Gupta Traders, Kolkata	12,000
April 16	Rent paid	4,000
April 18	Paid Electricity expenses	1,000
April 20	Received cash from Gupta Traders	12,000
April 22	Goods returned to Hema Traders	2,000
April 23	Cash paid to Hema Traders	40,000
April 25	Bought postage stamps	100
April 30	Paid salary to Mohan	4,000

What is Trade Discount? Give an example.

Journalise the following transactions:

1. Goods for ₹ 50,000 were destroyed by fire.
2. Goods worth ₹ 18,000 were distributed as free samples and ₹ 20,000 were given away as charity in cash.
3. Goods worth ₹ 25,000 and cash ₹ 40,000 were taken away by the proprietor for his personal use.
4. Goods worth ₹ 20,000 and cash ₹ 5,000 were given away as charity.
5. Cash ₹ 1,00,000 were stolen from the Iron Safe of the trader.

Distinguish between Journal and Ledger.

The assets of Standard Sugar Co. were acquired by the Government on 1st April, 2000 and the company received a compensation of ₹ 10 crores. The company did not have any other business as on the date of acquisition and has also not ventured into any other business after acquisition of assets. The company placed the amount so received in a fixed deposit with a bank, which is lying deposited with the bank as on date also. It has also filed a case in the Court seeking higher compensation. Is the company a going concern?