Question
Explain the following terminologies :
$(a)$ Discount received
$(b)$ Bad debts
$(c)$ Profit
$(a)$ Discount received
$(b)$ Bad debts
$(c)$ Profit
✓
Answer
self
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Disclose the following information in Income — Expenditure Account for the year ending $31-3-2015.$
→From the following transactions, prepare columnar sales book in the books of Shri Durgesh Electronics stores :
$2018$
Dec.
$1$ Sold to Laukik Electronics Stores $10$
$AC$ at $₹ 30,000$ per piece, $6$ cooler at $₹ 6000$ per piece and $100$ fans at $₹ 1400$. Trade discount at $10 \%$, credit period $2$ months. Invoice no. $151.$
$12$ Sold to Aanand Electronics $8$
$AC$ at $₹ 28,000$ per piece and $15$ fans at $₹ 1300$ per piece. Trade discount at the rate of $10 \%$, credit period $1$ month. Invoice no. $152.$
$15$
$10$ cooler sold to Sangharsh Electronics at $₹ 6500$ per piece on cash. Cash memo no. $153$.
$18 $Sold to Krishna Enterprise to $10$ cooler at $₹ 6200$ per piece and $15$ fans at $₹ 1400$ per piece, at $5 \%$ trade discount. Credit period for $1$ month. Invoice no. $154.$
$20$ Sold old furniture of shop at $₹ 8000$ to Khyati.
→$2018$
Dec.
$1$ Sold to Laukik Electronics Stores $10$
$AC$ at $₹ 30,000$ per piece, $6$ cooler at $₹ 6000$ per piece and $100$ fans at $₹ 1400$. Trade discount at $10 \%$, credit period $2$ months. Invoice no. $151.$
$12$ Sold to Aanand Electronics $8$
$AC$ at $₹ 28,000$ per piece and $15$ fans at $₹ 1300$ per piece. Trade discount at the rate of $10 \%$, credit period $1$ month. Invoice no. $152.$
$15$
$10$ cooler sold to Sangharsh Electronics at $₹ 6500$ per piece on cash. Cash memo no. $153$.
$18 $Sold to Krishna Enterprise to $10$ cooler at $₹ 6200$ per piece and $15$ fans at $₹ 1400$ per piece, at $5 \%$ trade discount. Credit period for $1$ month. Invoice no. $154.$
$20$ Sold old furniture of shop at $₹ 8000$ to Khyati.
Pass journal entries in the books of Shri Rohan Rangani for the following tansactions in the journal proper.
$(1)$ $₹ 2000$ received from Rahul for bad debt written off in past, which is credited to his personal account.
$(2)$ $₹ 4500$ received from Sohan is recorded in Mohan's account.
$(3)$ $₹ 1200$ paid for life insurance premium is debited to insurance premium account.
$(4)$ $₹ 6000$ paid for salary to Parag is debited to his personal account.
$(5)$ $₹ 1000$ paid for installation charges for machinery is wrongly debited to wages account.
$(6)$ Old furniture sold of $₹ 4000$, is entered in the sales account.
→$(1)$ $₹ 2000$ received from Rahul for bad debt written off in past, which is credited to his personal account.
$(2)$ $₹ 4500$ received from Sohan is recorded in Mohan's account.
$(3)$ $₹ 1200$ paid for life insurance premium is debited to insurance premium account.
$(4)$ $₹ 6000$ paid for salary to Parag is debited to his personal account.
$(5)$ $₹ 1000$ paid for installation charges for machinery is wrongly debited to wages account.
$(6)$ Old furniture sold of $₹ 4000$, is entered in the sales account.
Classify the following accounts:
$1.$ Telephone deposit account
$2.$ Investment account
$3.$ Installation charges for machine account
$4.$ New India Sport Club’s account
$5.$ Free hold premises account
→$1.$ Telephone deposit account
$2.$ Investment account
$3.$ Installation charges for machine account
$4.$ New India Sport Club’s account
$5.$ Free hold premises account
Discuss the limitations of Single entry system In detail.
Explain the following terminologies :
$(a)$ Bills payable
$(b)$ Goods
$(c)$ Cost
→$(a)$ Bills payable
$(b)$ Goods
$(c)$ Cost
From the following transactions, prepare a purchase book and sales book in the books of Kohli Traders. Prepare subsidiary books on the basis of total rate of $GST$ at $12 \%$. $GST$ is not included in the amount of following transactions. Prepare subsidiary books by adding applicable amount of $GST$.
$2018$
April $1$ Goods of $₹ 65,000$ are purchased from Dhawan Traders at $10 \%$ trade discount. Railway freight of $₹ 900$. Invoice no. $501.$
$4$ Purchased goods of $₹ 52,000$ from Sharma stores; railway freight of $₹ 620$ and wages of $300$ paid by Sharma Stores. Invoice no. $502.$
$6$ Sold goods of $₹ 40,000$ to Bhuneshwar Traders at $10\%$ trade discount. Wages of $₹ 200$ and railway freight of $₹ 300$ are also included. Invoice no. $351.$
$8$ Sold entire goods purchased from Sharma stores fo Bumrah Traders at $20\%$ profit on cost, on $2$ month's credit. Railway freight ₹ $900$ and wages of $₹ 300$ are included. Invoice no. $352.$
In the above all transactions, purchases and sales are in the respective state (intra state) only.
→$2018$
April $1$ Goods of $₹ 65,000$ are purchased from Dhawan Traders at $10 \%$ trade discount. Railway freight of $₹ 900$. Invoice no. $501.$
$4$ Purchased goods of $₹ 52,000$ from Sharma stores; railway freight of $₹ 620$ and wages of $300$ paid by Sharma Stores. Invoice no. $502.$
$6$ Sold goods of $₹ 40,000$ to Bhuneshwar Traders at $10\%$ trade discount. Wages of $₹ 200$ and railway freight of $₹ 300$ are also included. Invoice no. $351.$
$8$ Sold entire goods purchased from Sharma stores fo Bumrah Traders at $20\%$ profit on cost, on $2$ month's credit. Railway freight ₹ $900$ and wages of $₹ 300$ are included. Invoice no. $352.$
In the above all transactions, purchases and sales are in the respective state (intra state) only.
Record the following transaction of April $2019$ in the books of Bijal Shah of Vadodara. $6\% CGST; 6 \% SGST$ and $12 \% IGST$ are applicable of business transactions. $2019$ April $1$ Sold goods of $Rs.30,000$ at $10 \%$ trade discount to Karnal Shah by cheque. $10$ Sold goods of $Rs.40,000$ at $10 \%$ cash discount to Manoj Bhatt. $18$ Half goods returned from Manoj Bhatt.
→Write journal entries for the following transactions and explain accounting treatments basedon equation :
$(1)$ Goods of $₹ 30,000$ purchased for cash.
$(2)$ Goods of $₹ 35,000$ sold for $₹ 55,000$ to Jaslin on credit.
$(3)$ Goods of $₹ 10,000$ sold for $₹ 18,000$ in cash.
→$(1)$ Goods of $₹ 30,000$ purchased for cash.
$(2)$ Goods of $₹ 35,000$ sold for $₹ 55,000$ to Jaslin on credit.
$(3)$ Goods of $₹ 10,000$ sold for $₹ 18,000$ in cash.
State the name of the accounting principle, concept or convention which is followed in the practices or statements given below :
$(1)$ In addition to book value of investment in listed shares, the market value thereof is also shown as additional information in financial statements.
$(2)$ Entire expense of a ball pen refill purchased for ? $5$ on $25-03-2016$ is debited to Stationery Expenses on date of purchase itself even if only about a half of this refill is used by $31$st March, $2016.$
$(3)$ As far as possible same method of providing depreciation should be followed year after year.
→$(1)$ In addition to book value of investment in listed shares, the market value thereof is also shown as additional information in financial statements.
$(2)$ Entire expense of a ball pen refill purchased for ? $5$ on $25-03-2016$ is debited to Stationery Expenses on date of purchase itself even if only about a half of this refill is used by $31$st March, $2016.$
$(3)$ As far as possible same method of providing depreciation should be followed year after year.