18. A) L’s acceptance given to M FOR Rs 8,000 was discounted with bank for Rs 7,900has been dishonoured. Noting charges were paid Rs 160. L pays the amount due toM. Journalise the above in the books of M.B) P’s acceptance in favour of Q was endorsed for Rs 9,000 to R was dishonoured. R paid noting charges Rs 190. Journalise the transactions in the books of Q. (6)19. Rectify the following errors:a. Rs 5,000 received from a customer as an advance against order was creditedto sales account.b. Payment of Rs 300 made to Shivani and Rs 500 to Shiv was debited with Rs300 and Rs 500 reapectively.c. A piece of furniture purchased for Rs 4,500 for personal use was entered inthe purchase book d. The sales book was overcast to Rs 300.e. Purchase of a table for Rs 354 from Ram for Rs 354 has been recorded inpurchase book as Rs 345.f. A bill receivable of Rs 770 received from Umar entered through bills payablebook. (6)20. On 31st March, 2007 the following Trial Balance was extracted from the books of amerchant:
Debit Balances Rs. Debit Balances (Contd.) Rs.
Drawings 3,000 Rates, Taxes andInsurance2,891Sundry Debtors 20,100 Advertising 3,264Interest on loan 300 General Expenses 3,489Cash-in Hand 2,050 Bills Receivable 6,882Stock on 1
Motor vehicles 10,000 Capital 28,000Cash at Bank 3,555 Sundry Creditors 10,401Land and Buildings 12,000 Loan on Mortgage 9,500Bad Debts 525 Provision for DoubtfulDebts710Purchases 66,458 Sales 1,10,243Sales Returns 7,821 Purchases Returns 1,346Carriage Outward 2,404 Discounts 540Carriage Inward 2,929 Bills Payable 2,614Salaries 9,097 Rent Received 250Prepare the Trading and Profit and Loss Account for the year ended 31st March,2007 and balance Sheet as on that date after following adjustments
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