Theory Base of Accounting — Account STD 11 Commerce — Question

Name the various entries which have to be passed through a Journal even though we might have kept all the subsidiary books in the business.

Is the agreement of a Trial Balance absolute proof of the accuracy of the books of account? If not, what are the errors which remain even after agreement?

Explain the following:
Dual Aspect Concept.

What is difference between trade discount and cash discount?

Rectify the following errors:

1. Sales to Vinod of ₹ 143 posted to his account as ₹ 134.
2. Sales to Vinod of ₹ 143 debited to his account as ₹ 134.
3. Sales to Vinod of ₹ 143 credited to his account as ₹ 134.

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?

Journalise the following transactions:
i. Goods for ₹ 50,000 were destroyed by fire.
ii. Goods worth ₹ 18,000 were distributed as free samples and ₹ 20,000 were given away as a charity in cash.
iii. Goods worth ₹ 25,000 and cash ₹ 40,000 were taken away by the proprietor for his personal use.
iv. Goods worth ₹ 20,000 and cash₹ 5,000 were given away as charity.
v. Cash ₹ 1,00,000 were stolen from the Iron Safe of the trader.

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.

Following was the position of Harish & Co. as on 1st April, 2017:
Cash in Hand ₹ 10,000; Cash at Bank ₹ 16,800; Furniture ₹ 8,000; Stock ₹ 50,000; Debtors−Ram ₹ 8,000; Shyam ₹ 12,000; Creditors−Anil ₹ 4,000; Sunil ₹ 5,000.
Following transactions took place during April, 2017:

2017
April 2	Received a cheque from Ram in full settlement of his account after deducting 5% cash discount.
April 4	Deposited the above cheque into Bank.
April 5	Goods purchased for ₹ 20,000 at 10% trade discount and 5% cash discount. Payment made by cheque.
April 6	Discount allowed to him ₹ 140. Cheque deposited into the bank on the same day.
April 10	Cash paid to Anil after deducting 2% cash discount.
April 15	Old furniture sold for ₹ 800.
April 16	Sold goods to Shiv Parshad of the list price of ₹ 10,000 at a trade discount of 15%.
April 18	Shiv Parshad returned goods of the list price of ₹ 1,000.
April 20	Paid for furniture repairs to Bahadur Singh ₹ 100.
April 25	Received a cheque from Shiv Parshad after deducting 4% cash discount. Cheque was deposited into bank.
April 28	Bank charged ₹ 50 for 'Bank Charges'.
April 30	Received Commission ₹ 200.

Pass Journal entries for the above transactions.

What is Trade Discount? Give an example.