Trial Balance and Rectification of Errors — Account STD 11 Commerce — Question

Show the effect of the following transactions on the Accounting Equation:

1. Started business with cash ₹ 50,000.
2. Salaries paid ₹ 2,000.
3. Wages Outstanding ₹ 200.
4. Interest due but not paid ₹ 100.
5. Rent paid in advance ₹ 150.

Enter the following transactions in the Journal of M/s. Karim Bros., Prop. Shri Karim Khan, Kolkata, post to the Ledger:
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 (*).

Give the meaning of rebate.

On 1st January, 2019, X sold goods of ₹ 20,000 to Y and drew a bill on Y at three months for the amount. Y accepted the bill. The bill is met on maturity. Pass the necessary Journal entries in the books of X and Y, if X discounted the bill @ 12% p.a. from bank on 4th January.

Harpal sold goods to Sompal for ₹ 12,000. Sompal accepted three bills of exchange, the first for ₹ 5,000 at one month, the second for ₹ 4,000 at two months and the third for ₹ 3,000 at three months. Harpal endorsed the first bill to Rajpal. The first bill was dishonoured. Rajpal paid ₹ 30 as noting charges. Harpal charged ₹ 200 for interest and drew on Sompal a fourth bill for ₹ 5,230. The second bill was also dishonoured, noting charges paid being ₹ 25. Harpal charged ₹ 150 as interest and accepted ₹ 2,175 in cash and drew a fifth bill for ₹ 2,000. The bill was paid on due date. The third and fourth bills were also met.
Pass Journal entries in the books of Harpal and prepare Sompal's Account in Harpal's Ledger.

Following transactions took place in M/s Goodluck Computers. Prepare the Accounting Vouchers

2019	Particular	₹
Jan-1	Bought Computer Mouse (4 Nos.) vide Cash Memo No. 338*	6,000
Jan-8	Wages paid for the month of December, 2018	10,000
Jan-12	Purchased two Desktop Computers from M/s Computech for cash vide Cash Memo No. 170	32,500
Jan-25	Paid cash to Hari & Sons vide receipt No. 102 for repairs	1,000
Jan-28	Paid postage	200
Jan-30	Cash withdrawn from bank	10,000

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

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.

A Book-keeper failed to balance his trial balance, the credit side exceeding the debit side by ₹ 175. This amount was entered in a Suspense Account. Later on the under mentioned errors were discovered:

1. Goods amounting to ₹ 620 sold to D & Co. were correctly entered in the Sales book, but posted to the Company's A/c as ₹ 260.
2. A credit balance of ₹ 755 of Rent Received account was shown as ₹ 570.
3. The total of Returns Outwards Book amounting to ₹ 200 was not posted to the Ledger.
4. Goods worth ₹ 100 were purchased from Prakash but the amount was entered in the Sales Book. The account of Prakash was correctly credited.
5. Sales Book was undercast by ₹ 100.
6. The total of the credit side of Sohan's account was overcast by ₹ 100.

Give journal entries to rectify these errors and prepare the Suspense Account.

Pass the rectification entries for the following transactions:

1. Repairs to plant amounting to ₹ 2,000 had been charged to Plant and Machinery Account.
2. Wages paid to the firm's workmen for making certain additions to machinery amounting to ₹ 1,340 were debited to Wages Account.
3. A cheque for ₹ 7,500 received from Sandesh was credited to the account of Ramesh.
4. Goods to the value of ₹ 7,000 returned by Prateek were included in closing stock, but no entry was made in the books.
5. (v) Goods costing ₹ 5,000 were purchased for various members of the staff and the cost was included in 'Purchases'. A similar amount was deducted from the salaries of the staff members concerned and the net payments to them debited to Salaries Account.
6. Credit purchase of old machinery from Sohan for ₹ 1,70,000 was entered in the Purchase Book as purchase from Mohan for ₹ 7,10,000. ₹ 30,000 paid as repairing charges on the reconditioning of a newly purchased second hand machinery were debited to General Expenses Account.
7. Debit and Credit totals of discount columns in the Cash Book which come to ₹ 400 and ₹ 370 respectively have not been posted to Discount Accounts.

Enter the following transactions in the Cash Book with Cash and Bank Columns∶

2016
June 1	Balance of Cash in Hand ₹ 12,000; Overdraft at Bank ₹ 1,500
June 2	Deposited into Bank ₹ 10,000
	Sold goods for Cash ₹ 28,000 and paid half the proceeds into Bank
June 3	Purchased goods for ₹ 7,000 from Manoj & Co. on Credit
June 5	Received a Money Order from Suresh ₹ 500
June 8	Received ₹ 2,800 from Govind. Paid ₹ 1,000 into Bank
June 10	Received a cheque for ₹ 7,600 from Subhash in full settlement of ₹ 8,000 due from him
June 12	Settled the account of Manoj & Co. by payment of ₹ 6,600
	half Cash and half by cheque
June 13	Cheque received from Subhash deposited into Bank
June 15	Paid for purchase of Machinery by cheque ₹ 20,000
June 16	Paid wages for the erection of above Machinery ₹ 1,000
June 17	Cheque issued for ₹ 6,000 in favour of Sachdeva & Co. for purchase of furniture
June 20	Purchased goods from Kalpna Garments for ₹ 10,500 on credit
	Received a Bank Draft for ₹ 4,800 from Damodar & Co. in full settlement of ₹ 5,000 due from them. Sent the draft to bank
June 24	Bank issued a draft for ₹ 10,000 in favour of Kalpna Garments on our request. Bank charged ₹ 25 for issuing the draft. Account of Kalpna Garments was fully settled
June 26	Drew from bank for petty cash ₹ 100
June 28	Paid salary by cheque ₹ 6,000
June 30	Bank Charges ₹ 50 and Interest ₹ 1,620 charged by bank
	Deposited into bank the entire balance after retaining ₹ 4,000 at office