Illustration 20. On ist April, 2020, M/s. Atul Bros., Drycleaners purchased 5 Washing Machines for 15,000 each. They sold on 1st April, 2021 one machine for & 12,500. They charged depreciation @ 10% by the Straight Line Method. Prepare the Washing Machine Account, Washing Machine Disposal Account and Provision for Depreciation Account for two years. Accounts are closed on 31st March every year, Solution: Dr. WASHING MACHINE ACCOUNT GIllustration 21. You are given following balances as on 1st April, 2021: Machinery A/c % 5,00,000 Provision for Depreciation Alc 7 1,16,000 Depreciationischargedon machinery at 20% p.a. by the Diminishing Balance Method. Part of machinery purchased on 1st April, 2019 for%1,00,000 was sold on 1st October, 2021 for % 60,000. Prepare the Machinery / ‘and Provision for Depreciation Account for the year ended 31st March, 2022. Als, prepare the Machinery Disposal Account.Prepare Cash Book from the following transactions: 2021 May 1 Balance of Cash in hand Rs.15,600; Overdraft at Bank Rs.7,400. May 2 Capital introduced Rs.30,000, Out of which Rs.25,000 deposited into Bank. May 3 Purchased goods on credit from Mohan of the list price of Rs.15,000. Out of this amount he allowed us a trade discount of 20% plus CGST and SGST @ 6% each. May 6 Settled the account of Mohan by paying cash Rs.14,000. May 8 An amount of Rs.2,500 due from Chaturvedi & sons written off as Bad Debts in the previous year, now recovered. May 10 Cashed a cheque for Rs.7,500. May 10 Drew from bank for household expenses Rs.3,000 and for Income Tax Rs.800 May 14 Received Rs.500 from the sale of old chairs. May 15 Received from X on behalf of ¥ Rs.2,200. Discount allowed Rs.100. May 20 Received a cheque from Naresh Rs.4,210 in full settlement of his account of Rs.4,400. May 22 Cheque received from Naresh sent to bank. May 25 Sagar Chand, who owned us Rs.10,000 became bankrupt and paid us 40 paise in a rupee. May 26 Received repayment of a loan of Rs.3,600 and deposited out of it Rs.2,000 into the bank. May 28 Cheque received from Naresh dishonoured, Bank debits Rs.20 in respect of this cheque for Bank Charges. May 31 Interest debited by bank Rs.650. Deposited with the bank the entire balance after retaining Rs.5,000 at office.Enter the following transactions in the Double Column cash book: 2022 z Jani Bank overdraft 12,000 Cash in hand 2,300 Jan5 Purchased goods & paid by cheque 40,000 Jan6 — Sold goods & received by cheque 30,000 Jan7 Cheque received from S. Nair 4,000 Discount allowed 200 Jan9 Cheque received from S. Nair deposited in bank Jani2 Cheque paid to Radha 2,500 Discount received 50 Jan 45 §Nair’s cheque dishonoured Jan20 Money withdrawn from bank for office use 3,400 Jan 23 Fees of children paid by cheque 75 Jan 25 Cheque received from Hira & endorsed it to Sunita on 27" Jan 4,500 Jan 27 _ Bank charges 20 Jan31 Paid into bank the entire balance afterEnter the following transactions in the proper books of account maintained by Datta Readymade Garments: (CGST and SGST @ 6%) 2020 Aug. 2 Sold goods to Mchra Sons 4 Coats @ Rs.500 each 6 Ladies Suits @ Rs.1, 000 each Less: 10% Trade Discount Aug. 5 Sold goods to Mohan & Co. 6 Kids suits @ Rs.600 each 4 Gents Shirts @ Rs.800 cach Aug. 6 Purchased furniture from Godrej Rs.15, 000 ‘Aug. 7 Charged Depreciation on Furniture Rs.500 Aug. 8 Goods returned by Mohan & Co. 1 Kids Suit @ Rs.600 each 1 Gents Shirts @ Rs.800 each Aug.12 Goods Purchased on credit from Janata Stores 15 Pant Pieces @ Rs.80 each 20 Trousers @ Rs.500 each Aug.15 Goods purchased on Credit from Golden Fabrics 10 Woolen suits @ Rs.2, 000 each 12 Cotton Sarees @ Rs.1, 200 each Less: 10% Discount Aug.25 Purchased cotton sarees for personal use Rs.1, 000vey VUNYUWS OBEIVEGUNE IND) OLY THELY LUVaDUME IL Le, 5. Credit balance as per Cash Book on 30" Sep. 2020, was Rs 16,000. Payment by cheque for Rs. 160 has been entered twice in the Cash Book. Bank wrongly debited Rs.500. A bill of exchange for Rs.1, 000 was discounted with the bank, the bill was dishonoured but no entry has been made in the cash book. State the balance as per the Pass Book. 6. Debit balance as per Cash Book as on 31* June 2020 is Rs. 50,000. Cash and cheques amounting to Rs. 45,000 were sent to the bank on 25" June, but cheques worth Rs. 25,000 were credited on 3 July and one cheque for Rs. 5,000 was returned by the bank as dishonoured on 5 July 2020. State the balance as per Pass Book. 7, Overdraft as per Pass Book as on 31* Oct. 2020 is Rs.17,000, credit balance of Rs. 250 as on page 15 of Pass Book was recorded on page 16 as the debit balance. State the balance as per Cash Book. 8. Favourable balance as per Pass Book as on 31" Dec. 2020 is Rs. 32,750. Cheque for Rs. 2,300 drawn on his savings deposit A/c has been shown as drawn on current A/c in Cash Book. State the balance as per Cash Book.On 31 December, 2020, the Cash Book of Mittal Bros. showed an overdraft of Rs.6920. From the following particulars make out a Bank Reconciliation Statement ascertain the balance as per pass book. a. b. c. Debited by bank for Rs.200 on account of interest on overdraft and Rs.50 on account of charges for collecting bills. Cheques drawn but not cashed before December 31, 2020 for Rs.4, 000. On 15" Dec., the payments side of the Cash Book was undercast by Rs.100. d. A cheque for Rs.131 issued on 25" Dec., was recorded in the cash column. One deposit of Rs.150 was recorded in the Cash Book as if there is not Bank column therein. On 18" Deec., the debit balance of Rs. 1,526 as on previous day was brought forward as accredit balance. - Of the total cheques amounting to Rs. 11,514 drawn in the last week of Dec., cheques aggregating Rs.7, 815 were encashed in Dec.