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Accounting for Goods and Service Tax (GST) — Account STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceAccountAccounting for Goods and Service Tax (GST)3 Marks
Question
What is GST?
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Answer

Goods and Service Tax (GST) is an indirect tax levied at prescribed rate on every supply of goods and services except on petroleum and alcohol for human comsumption. Supply of goods means sale of goods and supply of services means rendering of services. It is a nation-wide tax seeking to unify several indirect taxes and is based on the principle of 'One Nation one Tax'.

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Journalise the following transactions:
2018
 
April 1
Purchased goods for ₹ 1,00,000 from Manoj and availed discount of ₹ 10,000
April 2
Paid amount due to Manoj by cheque and availed discount of ₹ 4,500
April 5
Cash ₹ 5,000 paid to Desai and discount allowed by him ₹ 200
April 10
Cash ₹ 10,000 received from Govardhan and allowed him discount ₹ 500.
April 12
Sold personal Car of the proprietor for ₹ 80,00 against cheque, which was deposited into the firm's bank account.
April 16
Sold personal Car of the proprietor for ₹ 1,50,000 against cheque, which was deposited into the proprietor's personal bank account.
April 20
Sold goods to Gaurav costing ₹ 1,00,000 at a profit of 40% and allowed him 10% trade discount and paid for cartage ₹ 3,000 not to be charged from him.
April 24
Placed an order with Rudra & Co. for supply of goods of ₹ 80,000 and a cheque for 40% amount is sent to them as an advance.
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State reasons for the following:
The Cash Account and the Bank Account are not posted in the Ledger.
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What are the different uses available to a holder for dealing with bills receivable?
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Transactions of M/s Vipin Traders are given below.
Show the effects on Assets, Liabilities and Capital with the help of accounting Equation.
a.
Business started with cash
₹ 1,25,000
b.
Purchased goods for cash
₹ 50,000
c.
Purchase furniture from R.K. Furniture
₹ 10,000
d.
Sold goods to Parul Traders (Costing ₹ 7,000 vide bill no. 5674)
₹ 9,000
e.
Paid cartage
₹ 100
f.
Cash Paid to R.K. furniture in full settlement
₹ 9,700
g.
Cash sales (costing ₹ 10,000)
₹ 12,000
h.
Rent received
₹ 4,000
i. Cash withdrew for personal use ₹ 3,000
(Ans: Asset = cash ₹ 78,200 + Goods ₹ 33,000 + Furniture ₹ 10,000 Debtors ₹ 9,000 = ₹ 1,30,200; Liabilities = Capital ₹ 1,30,200)
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Mukesh found that the Trial Balance did not agree. He found the following errors:
  1. In the Sales Book for the month of January, total of Page No. 3 was carried forward to Page No. 4 as ₹ 1,000 instead of ₹ 1,200 and total of Page No. 7 was carried forward to Page No. 8 as ₹ 5,600 instead of ₹ 5,000.
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Journalise the following transaction in the books of Sanjana and post them into the ledger:
January, 2017
 
₹
1
Cash in hand
6,000
 
Cash at bank
55,000
 
Stock of goods
40,000
 
Due to Rohan
6,000
 
Due from Tarun
10,000
3
Sold goods to Karuna
15,000
4
Cash sales
10,000
6
Goods sold to Heena
5,000
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Purchased goods from Rupali
30,000
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Goods returned from Karuna
2,000
14
Cash received from Karuna
13,000
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Cheque given to Rohan
6,000
16
Cash received from Heena
3,000
20
Cheque received from Tarun
10,000
22
Cheque received from to Heena
2,000
25
Cash given to Rupali
18,000
26
Paid cartage
1,000
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Paid salary
8,000
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Cash sale
7,000
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Cheque given to Rupali
12,000
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Sanjana took goods for Personal use
4,000
31
Paid General expense
500
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Why is only one account posted to the Ledger Account from the Cash Book?
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Total of the Sales Book is posted to the credit side of the Sales Account in the General Ledger while individual account of customers is debited by the amount of their respective purchases. Is the above statement correct? Give reasons.
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Following errors affecting the accounts of the year 2018-19 were detected in the books of Das & Co., Meerut:
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  2. Rent of proprietor’s residence ₹ 6,000 was debited to Rent Account.
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Pass the rectifying Journal entries. State the nature of each of these mistake
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