Professional Documents
Culture Documents
5. Journalise the following transactions and Post them into the ledger for the month of March 2023 .
Employees had taken stock worth Rs.10,000 (Cost price Rs.7,500) on the eve of Diwali and the same was
deducted from their salaries in the subsequent month.
(5 Marks)
6. The following amounts are due to Ram by Mohan . Mohan wants to pay off (a) on 18th March or (b) on 14th
July . Interest rate of 8% p.a. is taken into consideration .
Due Date Amount
Prepare an Account Current as sent by Mr. Akash to Mr. Kannu as on 31st October,2021 by means of product
method charging interest @ 8% per annum. Round off the amounts to the nearest rupee.
(5 Marks)
8. On 1st January, 2019 Bharangar Transport Company purchased a Bus for Rs.8,00,000. On 1 st July, 2020 this
bus was damaged due to fire and was completely destroyed and Rs.6,00,000 were received by a cheque from the
Insurance Company in full settlement on 1 st October, 2020. On 1st July, 2020 another Bus was purchased by the
company for Rs.10,00,000.
The Company charges Depreciation @ 20% per annum under the WDV Method.
Calculate the amount of depreciation for the year ended 31st March, 2021 and gain or loss on the destroyed Bus.
(5 Marks)
9. From the following particulars prepare an account current, as sent by Mr. Ankit to Mr. Pratap as on 31st
December, 2020 by means of product method charging interest @ 8% p.a.
2021 Particulars Amount
10. On 31st March, 2021 the pass-book of a trader showed a credit balance of Rs.15,65,000 but the passbook balance
was different for the following reasons from the cash book balance:
1. Cheques issued to ‘X’ for Rs.60,000 and to ‘Y’ for Rs.3,84,000 were not yet presented for payment.
2. Bank charged Rs.350 for bank charges and ‘Z’ directly deposited Rs.1,816 into the bank account, which was
not entered in the cash book.
3. Two cheques-one from ‘A’ for Rs.5,15,000 and another from ‘B’ for Rs.12,500 were collected in the first
week of April, 2021 although they were banked on 25.03.2021.
4. Interest allowed by bank Rs.4,500.
Prepare a bank reconciliation statement as on 31st March, 2021..
(5 Marks)
11. Gaurav drew a Trial Balance of his operations for the year ended 31.03.2016. There was a difference in the Trial
Balance which he closed with a Suspense Account. On a scrutiny by the Auditors, the following errors were
found:
1. Purchases day book for the month of April, was undercast by Rs.1,000 .
2. Sales day book of October, was overcast by Rs.10,000 .
3. A furniture purchased for Rs.8,100 was entered in the Furniture Account as Rs.810
4. A bill for Rs.10,000 drawn by Gaurav was not entered in the Bills Receivable Book.
5. A machinery purchased for Rs.10,000 was entered in the Purchase book.
Pass necessary Journal Entries to rectify the same and ascertain the difference in the Trial Balance that was
shown under the Suspense Account in respect of the above items.
(5 Marks)
12. Ayushi purchased goods from Shalini, the average due date for payment in cash is 10.08.2018 and the total
amount due is Rs.1,75,800 . How much amount should be paid by Ayushi to Shalini , if total payment is made
on following dates and interest is to be considered at the rate of 15% p.a .
(i) On Average Due Date
(ii) On 28th August,2018
(iii) On 29th July, 2018
(5 Marks)
13. Sai Garments Ltd invited applications for issuing 10,000 equity shares of ₹ 10 each. The amount was payable as
follows:
(i) On Application ₹ 1 per share
(ii) On Allotment ₹ 2 per share
(iii) On First call ₹ 3 per share
(iv) On Second and final Call ₹ 4 per share .
The issue was fully subscribed. Mr.A to whom 100 shares were allotted, failed to pay the allotment money and
his shares were forfeited immediately after the allotment.
Mr.B to whom 150 shares were allotted, failed to pay the first call. His shares were also forfeited after the first
call. Afterwards the second and final call was made. Mr.C to whom 50 shares were allotted , failed to pay the
second and final call. His shares were also forfeited. All the forfeited shares were re-issued at ₹ 9 per share fully
paid-up.
Pass necessary Journal entries in the books of Sai Garments Ltd.
(10 Marks)
14. Ankit Limited issued at par 2,00,000 Equity shares of ₹ 100 each payable ₹ 25 on application; ₹ 30 on allotment;
₹ 20 on first call and balance on the final call. All the shares were fully subscribed. Mr. Bhanu , who held 40,000
shares, paid the full remaining amount on the first call itself. The final call which was made after 3 months from
first call was fully paid except a shareholder having 4,000 shares who paid his due amount after 2 months along
with interest on calls in arrears. Company also paid interest on calls in advance to Mr. Bhanu .
You are required to prepare journal entries to record these transactions.
(10 Marks)
15. A purchased-on 1st January, 2012 certain machinery for Rs. 1,94,000 and spent Rs. 6,000 on its erection. On 1st
July, 2012 additional machinery costing Rs. 1,00,000 was purchased. On 1st July, 2014 the machinery purchased
on 1st January, 2012 having become obsolete was auctioned for Rs. 1,00,000 and on the same date new
machinery was purchased at a cost of Rs. 1,50,000. Depreciation was provided for annually on 31st December at
the rate of 10% per annum on the original cost of the machinery. No depreciation need be provided when a
machinery is sold or auctioned, for that part of the year in which sale or auction took place. But for the above,
depreciation shall be provided on time basis. In 2015, however, A changed this method of providing depreciation
and adopted the method of writing off 15% p.a. on the written down value on the balance as appeared in the
machinery account on 1-1-2015.
Show the machinery account for the calendar years 2012 to 2015. (Certain matter is underlined by the author for
the attention of the student which indicates the prospective change).
(15 Marks)
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