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

How is Cash Discount recorded in the books of account?

Record the following transactions of M/s Mahipal Bros. in Proper Subsidiary Books, post them into the Ledger and take out a Trial Balance:

2017
Jan. 1	Commenced business with Cash ₹ 2,00,000
Jan. 2	Deposited into U.T.I Bank ₹ 1,75,000
Jan. 4	Purchased goods from Dilip for ₹ 40,000. Trade Discount 20%
Jan. 6	Gave a cheque to Dilip for ₹ 16,800 and discount allowed by him ₹ 200
Jan. 8	Goods bought from Nilesh for Cash ₹ 14,000
Jan. 10	Accepted a bill at 2 months for ₹ 15,000 drawn by Dilip
Jan. 11	Bought goods from Suresh ₹ 75,000
Jan. 13	Paid to Suresh a Cheque for ₹ 58,800 after receiving discount of 2%
Jan. 15	Cash sales made to Jyoti Parshad ₹ 8,000
Jan. 16	Sold goods to Mohinder for ₹ 20,000
Jan. 17	Goods returned by Mohinder for ₹ 1,500
Jan. 18	Received from Mohinder ₹ 7,900 after allowing a discount of 1.25%
Jan. 20	Goods sold to Banerjee ₹ 50,000
Jan. 21	Deposited into Bank ₹ 20,000
Jan. 25	Goods taken for personal use ₹ 2,000
Jan. 25	Purchased furniture ₹ 40,000 and Typewriter ₹ 10,000 for office use
	Payment for both the items is made by Cheque
Jan. 25	Sold goods to Anubhav ₹ 30,000
Jan. 27	Goods returned by Anubhav ₹ 5,000
Jan. 27	Received full payment from Banerjee by Cheque, sent it to Bank, Discount allowed 2%
Jan. 28	Acceptance received from Anubhav at 30 days for the amount due from him
Jan. 28	Paid for stationery ₹ 400 and for Postage ₹ 200
Jan. 31	Rent of proprietor's house paid by Cheque ₹ 2,500

Record the following transactions in the books of Sahdev & Sons assuming all transactions have been entered within the state of Bihar, Charging CGST and SGST @ 9% each.

1.	Bought goods from Nanak Bros. for ₹ 4,00,000 at 10% trade discount and 3% cash discount on purchase price. 25% of the amount paid at the time of purchase.
2.	Sold goods to Kumar & Sons. for ₹ 2,00,000 at 20% trade discount and 5% cash discount on sale price. 60% of the amount received by Cheque.
3.	Received from Gopi Chand ₹ 38,000 by Cheque after deducting 5% cash discount.
4.	Paid ₹ 20,000 for rent by Cheque.
5.	Paid ₹ 50,000 for salaries by Cheque.
6.	Goods worth ₹ 10,000 distributed as free samples.
7.	₹ 5,000 due from Chanderkant are bad-debts.
8.	Sold household furniture for ₹ 15,000 and the proceeds were invested into business.

Is it possible to pass a single journal entry for two or more transactions?

On 1st April, 2019, the following were Ledger balances of M/s. Ram & Co., Delhi:
Cash in Hand ₹ 300; Cash at Bank ₹ 7,000; Bills Payable ₹ 1,000; Zahir (Dr.) ₹ 800; Stock ₹ 4,000; Gobind (Cr.) ₹ 2,000; Sharma (Dr.) ₹ 1,500; Rahul (Cr.) ₹ 900; Capital ₹ 9,700.
Transactions during the month of April, 2019 were:

2019		₹
April 2	Bought goods from Gobind, Delhi	900
April 3	Sold goods to Sharma, Kanpur	1,000
April 5	Bought goods from Rahul, Delhi	1,200
April 8	Sold goods to Zahir, Kolkata	500
April 15	Paid Gobind by cheque on account*	1,500
April 18	Received from Sharma a cheque of	2,000
	Allowed him discount*	50
April 20	Sold goods to Sharma, Kanpur	800
April 20	Paid rent by cheque	200
April 25	Sold goods to Zahir, Kolkata	1,000
April 30	Paid salaries in cash*	300

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 (*).
Post the above transactions to the Ledger and prepare the Trial Balance on 30th April, 2019.

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?

Distinguish between ‘provision’ and ‘reserve’.

Original cost of a Machinery ₹ 5,20,000; Salvage Value ₹ 20,000. What will be the amount of depreciation for second year according to diminishing balance method @ 10% p.a.

If Depreciation reduces profits and value of fixed assets and thus, the capital of the owner, why do businesses charge Depreciation?

Enter the following transaction in the Journal of Marutinandan Stores:

2017
Jan. 10	Purchased goods from Ghanshyam of the list price of ₹ 50,000 at 15% trade discount.
Jan. 13	Returned goods to Ghanshyam of the list price of ₹ 2,000
Jan. 15	Paid cash to Ghanshyam ₹ 40,000 in full settlement of his account.
Jan. 20	Purchased goods from Raghu of the list price of ₹ 60,000 at 10% trade discount.
Jan. 22	Returned goods to Raghu of the list price of ₹ 5,000
Jan. 25	Paid cash to Raghu ₹ 49,000 in full settlement of his Account.