Recording of Transactions - 2 — Account STD 11 Commerce — Question

A firm purchased on 1st April, 2009, a second-hand Machinery for ₹ 36,000 and spent ₹ 4,000 on its installation. On 1st Oct. in the same year another Machinery costing ₹ 20,000 was purchased. On 1st Oct., 2011, the Machinery bought on 1st April, 2009 was sold off for ₹ 12,000 and on the same date a fresh Machine was purchased for ₹ 64,000. Depreciation is provided annually on 31st March, @ 10% p.a. on the Written Down Value Method. Show the Machine A/c from 1st April, 2009 to 31st March, 2013.

On 31st January, 2017 the Pass Book of Shri M.L. Gupta shows a debit balance of ₹ 41,000. Prepare a bank reconciliation statement from the following particulars:-

1. Cheques amounting to ₹ 15,600 were drawn on 27th January, 2017. Out of which cheques for ₹ 11,000 were encashed up to 31-1-2017.
2. A wrong debit of ₹ 800 has been given by the bank in the Pass Book.
3. A cheque for ₹ 200 was credited in the Pass Book but was not recorded in the Cash Book.
4. Cheques amounting to ₹ 21,000 were deposited for collection. But out of these, cheques for ₹ 7,400 have been credited in the Pass Book on 5th February, 2017.
5. A cheque for ₹ 1,000 was returned dishonoured by the bank and was debited in the Pass Book only.
6. Interest on overdraft and bank charges amounting to ₹ 100 were not entered in the Cash Book.
7. A cheque of ₹ 500 debited in the Cash Book omitted to be banked.

From the following particulars, prepare a Bank Reconciliation Statement of Alpha Electronic Motor. Private Ltd. as on 30th September, 2014:

1. Overdraft on 30th September 2014 as per Pass Book ₹ 10,000.
2. Cheque deposited in the bank but not recorded in Cash Book ₹ 100.
3. Cheque received and recorded in the Cash Book but not sent to bank for collection ₹ 1,000.
4. Several cheques were drawn in the last week of September, totalling ₹ 15,000; of these cheques totalling only ₹ 9,000 were cashed before 30th September.
5. Similarly, several cheques, totaling ₹ 9,000 were sent for collection; of these cheques of the value of ₹ 1,500 were credited on 5th October and ₹ 2,000 on 7th October, balance being credited before 30th September.
6. Fees of ₹ 250 was paid directly by the bank but was not recorded in the Cash Book.
7. In the Cash Book, a bank charge of ₹ 30 was recorded twice while another bank charge of ₹ 50 was not recorded at all.
8. Interest of ₹ 1,400 was charged by the bank but was not recorded in the Cash Book.

Journalise the following:

2017
March 4	Purchased building for ₹ 1,50,000 and incurred expenses of ₹ 10,000 on its purchase.
March 10	Satish who owed us ₹ 20,000 is declared insolvent and 60 paise per ₹ is received from his estate.
March 15	Paid ₹ 500 for repairing the office furniture.
March 18	Proprietor withdrew for his personal use cash ₹ 5,000 and goods worth ₹ 2,000.
March 20	Purchased the following items for business: Iron Safe ₹ 15,000; Filing Cabinet ₹ 5,000; Computer ₹ 12,000; Postage ₹ 200 and Stationery ₹ 150
March 28	Paid electricity charges ₹ 1,600.
March 31	Charge depreciation on Machinery @ 10% for one year (Machinery ₹ 75,000).
March 31	Outstanding wages at the end of the year ₹ 6,000.

Leena sold goods to Meena on 1st March, 2009 for ₹ 68,000 and drew two Bills of Exchange of the equal amount upon Meena payable after three months. Leena immediately discounted the first bill with her bank at 12% p.a. The bill was dishonoured by Meena and Bank paid ₹ 55 as noting charges.
The second bill was retired on 4th May, 2009 under a rebate of 6% p.a. with mutual agreement.
Journalise the above in the books of Leena and Meena.

Enter the following transactions in a Single Column Cash Book of M/s Suchitra Sen & Co.:

2017		(₹)
March 1	Cash in Hand	1,20,000
March 2	Bought machinery for ₹ 60,000 and paid carriage	2,000
March 4	Bought goods for ₹ 25,000 and paid carriage	1,000
March 5	Bought goods from Ravi Das	15,000
March 6	Cash received from sale of Motor bike	5,000
March 8	Sold goods for cash less 5% cash discount	20,000
March 10	Sold goods	40,000
March 12	Paid to Ravi Das on account	10,000
March 15	Bought goods from Suresh for cash less 4% cash discount	30,000
March 20	Paid to Ravi Das	4,500
	Discount received	500
March 25	Cash collected from Ashok (Debtor)	10,000
March 28	Purchased postal stamps	500
March 28	Salary paid to accountant	15,000

Explain Revenue Expenditure with examples.

Prepare the Vouchers to be recorded in the books of M/s Computer Aids:

2019	Particular	₹
Jan-1	Bought computer for resale for cash vide Cash Memo No. 512*	7,200
Jan-8	Salary paid for the month of December, 2018	10,000
Jan-10	Sold computer for cash vide Cash Memo No. 64*	12,000
Jan-15	Withdraw cash from bank for office use vide cheque No. 13456	1,700

Transactions marked with * are subject to levy of CGST and SGST @ 6% each.

What is an Opening Entry? Give an example.

On 1st April, 2018, following balances appeared in the books of M/s Krishna Traders:

	₹
Furniture Account	50,000
Provision for Depreciation on Furniture Account	22,000

On 1st October, 2018 a part of Furniture purchased for ₹ 20,000 on 1st April, 2014 was sold for ₹ 5,000. On the same date a new furniture costing ₹ 25,000 was purchased.
The depreciation was provided @ 10% p.a. on original cost of the asset and no depreciation was charged on the asset in the year of sale. Prepare 'Furniture Account' and 'Provision for Depreciation Account' for the year ending 31st March, 2019.