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

Describe the informational needs of external users.

Journalise the following transactions:

1. Bought goods from Arun for ₹ 2,00,000 at a trade discount of 15% and cash discount of 2%. Paid 80% amount immediately.
2. Purchased foods for ₹ 20,000 from X and supplied it to Y for ₹ 26,000.
3. Cash withdrawn from bank ₹ 5,000 for personal use and ₹ 25,000 for office use.
4. Goods destroyed by fire: Cost Price ₹ 40,000.
5. Provide 20% depreciation on machinery costing ₹ 50,000.
6. Out of insurance paid this year, ₹ 3,000 is related to next year.
7. Allow ₹ 5,000 as interest on capital and charge ₹ 1,000 as interest on drawings.
8. Sohan who owed us ₹ 25,000 was declared insolvent and a cheque of 40 paise in a ₹ is received from him in full settlement.
9. Paid Income Tax ₹ 10,000 by cheque.
10. Salary paid ₹ 80,000 and Salary Outstanding ₹ 20,000.

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:

1. Received a V.P.P. from Mohan Lal for ₹ 25,000. Sent a peon to collect it who paid ₹ 200 as cartage.
2. Received ₹ 1,000 from sales of old newspapers and ₹ 5,000 from sales of old chairs.
3. Goods given away as charity goods costing ₹ 7,000.
4. Received Cash from a debtor written off as bad-debt last year ₹ 20,000.
5. Sold goods costing ₹ 50,000 to Ashok on credit at a profit of 20% on cost.
6. Sold goods costing ₹ 1,00,000 for ₹ 1,40,000.
7. Provide ₹ 50,000 as interest on Capital.
8. Paid rent of building ₹ 60,000 by cheque. Half the building is used by the proprietor for residential purpose.
9. Outstanding salary at the end of the year ₹ 30,000.

Rectify the following errors:-

1. ₹ 500 paid for the purchases of Radio set for the proprietor debited to General expenses account.
2. Goods sold to Ram for ₹ 300 have been entered in the purchase book. However the account of Ram stands correctly posted.
3. An amount of ₹ 50 paid to Kewal has been credited to the account of Kanwal.
4. A sum of ₹ 450 paid as rent has been debited to Landlord's personal account.
5. Wages paid for the month ₹ 300 was posted twice.
6. Sales return book was undercast by ₹ 10.
7. Goods for ₹ 100 have been returned by a customer. These have been taken into stock but no entry in respect thereof has been made in the books.
8. Repairs ₹ 500 debited to machinery account as ₹ 550.

Journalise the following transactions of Satish, Noida (UP):

2019		₹
Jan 1	Started business with cash	40,000
Jan 2	Opened Bank Account by cheque from Savings Account	60,000
Jan 3	Bought goods from M/s. S. Singh & Co., Delhi	20,000
Jan 4	Introduced additional capital by cheque	5,000
Jan 4	Purchased computer against cheque from Computer Mart, Noida	15,000
Jan 6	Paid for postage stamps	150
Jan 8	Sold goods for cash	4,000
Jan 9	Sold goods to M/s Sharda & Co., Delhi	10,000
Jan 15	Paid the due amount to M/s S. Singh & Co. after availing discount of ₹ 400
Jan 25	Sold goods to M/s Ray & Co., Kolkata	5,600
Jan 27	Received cheque from M/s Sharda & Co. in full settlement of amount due from them	11,000
Jan 31	Paid for electricity charges	1,000
Jan 31	Paid rent of building by cheque. Half of the building is used by the proprietor for residential use.	5,000
Jan 31	Drew for personal use	3,500

Explain errors of principle and give two examples with measures to rectify them.

On 1st January, 2019, A drew a bill on B for ₹ 10,000 payable after 3 months. B accepted the bill and returned it to A. After 10 days, A endorsed the bill to his creditor C. On the due date, the bill was dishonoured and C paid ₹ 50 as noting charges.
Record the transactions in the books of A, B and C.

On comparing the Cash Book with Pass Book of Naman it is found that on March 31, 2017, bank balance of ₹ 40,960 showed by the Cash Book differs from the bank balance with regard to the following:

1. Bank charges ₹ 100 on March, 31 2017, are not entered in the Cash Book.
2. On March 21, 2017, a debtor paid ₹ 2,000 into the company's bank in settlement of his account, but no entry was made in the Cash Book of the company in respect of this.
3. Cheques totalling ₹ 12,980 were issued by the company and duly recorded in the Cash Book before March 31, 2017, but had not been presented at the bank for payment until after that date.
4. A bill for ₹ 6,900 discounted with the bank is entered in the Cash Book without recording the discount charge of ₹ 800.
5. ₹ 3,520 is entered in the Cash Book as paid into bank on March 31st 2017, but not credited by the bank until the following day.
6. No entry has been made in the Cash Book to record the dishonour on March 15, 2017 of a cheque for ₹ 650 received from Bhanu.

Prepare a reconciliation Statement as on March 31, 2017.

Fill up the missing information in the following journal entries: