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

During the year the company purchased ballpoint pens of ₹ 500. These were issued to employees and were still in use at the end of the year. Which accounting concept you would follow in dealing with this item?

Purchases Book is a record prepared from the invoices received from suppliers. Is it correct? Give reasons.

During the financial year 2018-19, Mohan had cash sales of ₹ 90,000 and credit sales of ₹ 60,000. His expenses for the year were ₹ 70,000 out of which ₹ 30,000 is still to be paid. Find out Mohan's income for 2018-19 following the Cash Basis of Accounting.

Journalise the following transactions:

2017		₹
Dec. 01	Hema started business with cash	1,00,000
Dec. 02	Open a bank account with SBI	30,000
Dec. 04	Purchased goods from Ashu	20,000
Dec.06	Sold goods to Rahul for cash	15,000
Dec.10	Bought goods from Tara for cash	40,000
Dec.13	Sold goods to Suman	20,000
Dec.16	Received cheque from Suman	19,500
	Discount allowed	500
Dec.20	Cheque given to Ashu on account	10,000
Dec.22	Rent paid by cheque	2,000
Dec.23	Deposited into bank	16,000
Dec.25	Machine purchased from Parigya	10,000
Dec.26	Trade expenses	2,000
Dec.28	Cheque issued to Parigya	10,000
Dec.29	Paid telephone expenses by cheque	1,200
Dec.31	Paid salary	4,500

Do you agree that a Sales Book is used to record invoices issued to customers in respect of goods sold on credit and not cash? Give reasons.

A firm follows a practice of giving the figures of previous year alongwith the figures of current year. Now the Accountant of the firm wants to discontinue this practice. Do you justify this decision?

What is a Trial Balance?

Why are the rules of debit and credit same for liability and capital?

Journalise the following transactions in the books of Afzal, Kolkata and post them to the Ledger:

2019		₹
Jan 1	Started business with cash	1,00,000
Jan 3	Bought goods on credit from Gupta & Co., Delhi	20,000
Jan 5	Cash sales	5,000
Jan 8	Cash purchases	8,000
Jan 10	Sold goods to Ahmed & Co., Lucknow	10,000
Jan 11	Deposited cash in bank	50,000
Jan 13	Purchased a computer for office	20,000
Jan 15	Took a loan from Mehboob	70,000
Jan 16	Goods returned by Ahmed & Co.	2,000
Jan 17	Purchased furniture from Mehfil Mart, Kolkata	10,000
Jan 18	Paid interest to Mehboob	2,000
Jan 19	Received claim from Ahmed & Co. for defects in goods supplied to them. Claim was accepted and rebate was allowed	1,000
Jan 22	Paid rent by cheque	2,000
Jan 24	Withdrew from bank	20,000
Jan 25	Sales of goods at counter after allowing trade discount of 10%	10,000
Jan 26	Goods purchased from Gupta & Co., Delhi were destroyed by accident	10,000
Jan 27	Advertisement expenses paid through bank	5,000
Jan 28	Ahmed & Co. settled their account by cheque	7,000
Jan 29	Paid the due amount to Gupta & Co. by cheque after availing discount of ₹ 800
Jan 31	Sold old newspapers	500

When an account is said to have a debit balance and credit balance?