Question
Rectifying the following errors:
  1. Sales Book has been totalled ₹ 1,000 short.
  2. Goods worth ₹ 1,500 returned by Green & Co. have not been recorded anywhere.
  3. Goods purchased worth ₹ 2,500 have been posted to the debit of the supplier, Gupta & Co.
  4. Furniture purchased from Gulab & Co. worth ₹ 10,000 has been entered in Purchases Book.
  5. Cash received from A ₹ 2,500 has not been posted in his account.

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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.
Prepare the Vouchers to be recorded in the books of M/s Elegant Furnitures, New Delhi:
2019
Particular
Jan-1
Bought furniture from Modern Furniture for cash vide Cash Memo No. 241*
7,500
Jan-8
Paid cash to Mani & Sons for purchase of 2 machines vide Cash Memo No. 1230*
5,000
Jan-20
Paid for conveyance
150
Jan-27
Sold old typewriter for cash vide cash receipt No. 314*
500
Transactions marked with * are subject to levy of CGST and SGST @ 6% each.
Pass entries for the following transactions in the books of M/s Karthikeyan & Co. of Chennai:
2019
 
June 10
Purchased goods from Ravichandran of Madurai of the list price of ₹ 2,00,000 at 25% trade discount at 4% cash discount on purchase price of goods. Paid CGST and SGST @ 9% each. Paid the entire amount by cheque on the same date.
June 25
Sold goods to Ramalingam of Erode of the list price of ₹ 3,75,000 at 20% trade discount and 2% cash discount on sale price. Charged CGST and SGST @ 9% each. Full amount was received by cheque on the same date.
Ignore adjustment and payment of GST.
On which side will the decrease in the following accounts be recorded? Also, state the nature of the account:
  1. Cash.
  2. Bank Overdraft.
  3. Outstanding Salary paid.
  4. Outstanding Rent.
  5. Prepaid Insurance.
  6. Mohan, Proprietor of the business
Prepare a Bank Reconciliation Statement as on 31st Dec., 2012 from the following transactions:
  1. Bank overdraft as per Pass Book ₹ 22,000 as on 31st Dec.
  2. On 28th Dec., cheques had been issued for ₹ 50,000 of which cheques worth ₹ 6,000 only had been encashed upto 31st Dec.
  3. Cheques amounted to ₹ 4,500 had been paid into the bank for collection but out of these only ₹ 1,000 had been credited in the Pass Book.
  4. The bank has charged ₹ 1,500 as interest on overdraft and the intimation of which has not been received as yet.
  5. Bank has collected ₹ 1,600 directly in respect of interest on investment.
  6. A cheque of ₹ 1,200 has been debited in bank column of Cash Book, but it was not sent to bank at all.
From the following particulars of a trader, prepare a Bank Reconcilation Statement as on 31st March, 2019.
  1. Bank overdraft as per Cash Book ₹ 52,100.
  2. During the month, the total amount of cheques for ₹ 94,400 were deposited into the bank but of these, one cheque for ₹ 11,160 has been entered into the Pass Book on 5th April.
  3. During the month, cheques for ₹ 89,580 were drawn in favour of creditors. Of them, one creditor for ₹ 38,580 encashed his cheque on 7th April whereas another for ₹ 4,320 have not yet been encashed.
  4. As per instructions the bank on 28th March paid out ₹ 10,500 to a creditor but by mistake, the same has not been entered in the Cash Book.
  5. According to agreement, on 25th March, a debtor deposited directly into the bank ₹ 9,000 but the same has not been recorded in the Cash Book.
  6. In the month of March, the bank without any intimation, debited his account for ₹ 120 as bank charges and credited the same for ₹ 180 as interest.
  7. Cash deposit of ₹ 5,780 in bank was recorded as ₹ 7,580. The error was rectified by the Bank before 31st March, 2019.
Show the effect of the following transactions and also prepare a Balance Sheet:
  1. Started business with cash ₹ 60,000.
  2. Rent received ₹ 2,000.
  3. Accrued interest ₹ 500.
  4. Commission received in advance ₹ 1,000.
  5. Amount withdrawn ₹ 5,000.
[Hint: Capital = Opening Capital ₹ 60,000 + Rent Received ₹ 2,000 + Accrued Interest ₹ 500 - Drawings ₹ 5,000 = ₹ 57,500.]
Fill in the missing information in the Machinery Account given below. Depreciation is charged @ 10% p.a. on Original Cost Method.
Explain Debit and Credit note in five sentences.
On January 01, 2014, a Limited Company purchased machinery for ₹ 20,00,000. Depreciation is provided @15% p.a. on diminishing balance method. On March 01, 2016, one fourth of machinery was damaged by fire and ₹ 40,000 were received from the insurance company in full settlement. On September 01, 2016 another machinery was purchased by the company for ₹ 15,00,000.
Write up the machinery account from 2010 to 2013. Books are closed on December 31, every year.