Books of Original Entry – Journal — Account STD 11 Commerce — Question

Rajesh Kumar was unable to reconcile his Trial Balance as on 31st March 2014 and has opened a suspense account from the difference. Later on the following errors were discovered:-

1. There were three compensating errors:-

1. The total of Sales Return Book was overcast by ₹ 100.
2. The total of one page of the Purchase Book was carried forward as ₹ 1,286 instead of ₹ 1,826.
3. Goods purchased from C for ₹ 400 was debited to his account as ₹ 40.

2. ₹ 425 paid for wages to workmen for making office table were debited to wages account.
3. Rent paid ₹ 1,500 were posted to the credit of Rent account as ₹ 150.
4. Cash received from Ghanshyam ₹ 500 were correctly recorded in cash book but were posted to his account as ₹ 50.
5. ₹ 720 paid to Kamal has been debited to Kamlesh A/c as ₹ 520.
6. The total of Purchase Return Book ₹ 2,500 was left unposted.

Pass rectifying entries and prepare Suspense A/c.

Journalise the following in the books of Amit Saini, Gurugram (Haryana):

1. Goods of ₹ 5,000 were taken by him for personal use.
2. ₹ 2,000 due from Sohan were bad debts.
3. Goods of ₹ 6,000 were destroyed by fire and were not insured.
4. Paid ₹ 4,000 in cash as wages on installation of machine. (GST is not to be levied).
5. Sold goods to Arjun of Delhi of list price ₹ 20,000. Trade discount @ 10% and cash discount of 5% was allowed. He paid the amount on the same day and availed the cash discount.
6. Received ₹ 2,000 from Ramesh, whose account was written off as bad debts.
7. Goods costing ₹ 1,000 given as charity.
8. Received ₹ 9,750 from Ramesh in full settlement of his account of ₹ 10,000.
9. Paid rent in advance ₹ 4,000.

​CGST and SGST is to be levied on intra-state sale @ 6% each and IGST @ 12% on inter-state sale.

Classify the following accounts under personal, real or nominal accounts:

1. Commission Paid.
2. Commission Received.
3. Commission Accrued.
4. Prepaid Salaries.
5. Leasehold Property A/c.
6. Discount Allowed.
7. Carriage Inwards A/c.
8. Life Insurance Corporation of India.
9. Drawings A/c.
10. Rent Received in Advance.
11. Debtors.
12. Sales A/c.
13. Rent Paid in Advance.
14. Bank Overdraft.

Following balances appeared in the books of Ram & Shyam on January 1, 2017:
Assets: Cash in hand ₹ 30,000; Stock ₹ 36,000; Lal Chand ₹ 7,600; Mukesh Khanna ₹ 16,200; Furniture ₹ 8,000.
Liabilities: Ghanshyam ₹ 6,000; Vinod ₹ 8,000.
Following transactions took place during Jan. 2017:

2017
Jan. 2	Purchased Typewriter for ₹ 7,500
Jan. 4	Sold goods for Cash of the list price of ₹ 25,000 at 20% trade discount and 5% Cash discount
Jan. 6	Sold goods to Gopal Seth for ₹ 10,000
Jan. 8	Gopal Seth returned goods for ₹ 1,500
Jan. 12	Purchased goods from Arun ₹ 12,000, and from varun ₹ 15,000
Jan. 13	Settled Arun's account in full after deducting 5% for cash discount
Jan. 14	Paid cash to Ghanshyam in full settlement of his account
Jan. 16	Received ₹ 7,500 from Lal Chand in full settlement of his account
Jan. 17	Purchased a Scooter for office use ₹ 18,000
Jan. 20	Sold goods for cash 20,000
Jan. 22	Received from Gopal Seth ₹ 4,850 and discount allowed ₹ 150
Jan 27	Paid for Wages ₹ 7,000 and Salaries ₹ 3,000.
Jan. 28	Withdrew goods for ₹ 2,000 and Cash ₹ 1,500 for private use
Jan. 29	Paid for Life Insurance Premium of the Proprietor ₹ 1,600

Journalise the above transactions, post them into Ledger, balance them and prepare a Trial Balance.

Prepare a Bank Reconciliation Statement as on 31st March 2015 from the following informations:

		₹
(a)	Cash Book Balance (Overdraft)	12,500
(b)	Cheques deposited but not recorded in Cash Book	2,000
(c)	Cheque received but not sent to Bank	1,500
(d)	Credit side of the Bank Column has been overcast	60
(e)	Bank charges entered in Pass Book twice	75
(f)	Bills Receivable directly collected by the Bank	4,000
(g)	Deposited cheques returned dishonoured by Bank	1,700
(h)	Electricity Bill paid by Bank as per instruction	800
(i)	Cheques issued but not presented for payment	5,400
(j)	Cheques deposited but not cleared	3,200

On 1st January, 2018, Dinesh purchased goods from Chander for ₹ 60,000 plus CGST and SGST @ 6% each. Dinesh pays ₹ 7,200 in cash and accepts a bill drawn by Chander for the balance amount payable after two months. On the due date Dinesh is able to manage ₹ 20,000 in cash and he arranges with Chander for the retirement of the bill in consideration of this payment and a fresh bill at four months for the balance plus interest at 18% per annum. The second bill is duly met on maturity.
make the necessary Journal entries in the books of Chander and Dinesh.

Trial Balance of Madan did not agree and he put the difference to Suspense Account. He discovered the following errors:

1. Sales Returns book overcast by ₹ 800.
2. Purchases returns to Sahu ₹ 2,000 were not posted to his account.
3. Goods purchased on credit from Narula ₹ 4,000 though taken into stock, but no entry was passed in the books.
4. Installation charges on new machinery purchased ₹ 500 were debited to sundry expenses account as ₹ 50.
5. Rent paid for residential accommodation of Madan (the proprietor) ₹ 1,400 was debited to Rent A/c as ₹ 1,000.

Rectify the errors and prepare Suspense Account to ascertain the difference in Trial Balance.

From the following particulars, you are required to ascertain the bank balance as would appear in the Cash Book of Ramesh as on 31st October, 2018:

1. Bank Pass Book showed an overdraft of ₹ 16,500 on 31st October.
2. Interest of ₹ 1,250 on overdraft up to 31st October, 2018 has been debited in the Bank Pass Book but it has not been entered in the Cash Book.
3. Bank charges debited in the Bank Pass Book amounted to ₹ 35.
4. Cheques issued prior to 31st October, 2018 but not presented till that date, amounted to ₹ 11,500.
5. Cheques paid into bank before 31st October, but not collected and credited up to that date, were for ₹ 2,500.
6. Interest on investment collected by the bankers and credited in the Bank Pass Book amounted to ₹ 1,800.

Shri S. K. Gupta, Chandigarh commenced business on 1st April, 2019 with a capital of ₹ 1,20,000 of which ₹ 60,000 was paid into his Bank Account and balance retained as cash. His other transactions during the month were as follows:

2019		₹
April 2	Bought office furniture	20,000
April 5	Purchased goods	16,000
April 8	Purchased goods from Ramesh, Chandigarh	11,000
April 12	Sold goods to Sameer, Delhi	21,000
April 13	Purchased stationery for cash	1,800
April 13	Paid to Ramesh in cash on account*	10,000
	Discount allowed by him*1,000
April 17	Withdrawn cash for office use*	4,000
April 18	Sen of Chandigarh sold goods to S.K. Gupta	30,000
April 19	Cash received from Sameer on account*	20,000
	Allowed him discount*	1,000
April 20	Sold to Raj Banwari, Delhi	40,000
April 28	Cash sales	1,400
April 30	Paid salary by cheque*	8,000
April 30	Paid rent by cheque	5,000
April 30	Paid telephone expenses by cheque	2,000
April 30	Paid cash into bank*	2,000

Inter-state transactions are subject to levy of IGST @ 12% and Intra-state transactions are subject to levy of CGST and SGST @ 6% each. GST is not levied on transactions marked with (*).
Journalise the above transactions and post them to the Ledger.

Mr. Yadav, the petty cashier of M/s Triputi Traders received ₹ 10,000 on April 1, 2016 from the Head Cashier. Following were the petty expenses:

2016		(₹)
April 2	Taxi fare	750
April 3	Refreshments	450
April 5	Registered postal charges	200
April 5	Wages	700
April 8	Auto fare	200
April 9	Courier charges	150
April 12	Postal Stamps	600
April 14	Eraser/ Sharpeners/ Pencils	400
April 17	Speed Post charges	200
April 20	Cartage	600
April 20	Computer Stationery	500
April 22	Wages	300
April 24	Bus fare	600
April 25	Office Sanitation	800
April 26	Refreshments	750
April 28	Loading Charges	300
April 30	Photostatting Charges	200
April 30	Wages	800

You are required to prepare a Petty Cash Book.