Long Answer Type Questions<\/span><\/p>\nQuestion 1. \nExplain the need for drawing up the special books. \nAnswer: \nNeed and Importance – The basic objective of accounting is to ascertain as to (I) how much amount is due from each customer or how much amount the firm has to pay to each supplier; (II) how much is the amount of purchase and sale during a particular period; (III) how much amount has been spent on each head of expenditure and how much amount has been earned on account of each head of income.<\/p>\n
The journal fails to provide us the above informations because it is only a chronological record of the daily transactions of a business. Transactions of the same nature are not recorded at one place in the Journal. For example, in order to know on a particular date, the amount due from Sunil & Co., the various transactions pertaining to them will have to be sorted out from Journal or Subsidiary Books and will have to be collected at one place.<\/p>\n
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From sales book the amount of sales made to them on each date will have to be ascertained, from sales return books the amount of goods returned by them will have to be ascertained, from cash book the amount received from them on different dates will have to be ascertained and even the some information may be omitted to be collected from various books. But in the Ledger all the transactions pertaining to Surender Mohan & Company will be posted at one place in an account opened in their name, which will provide a complete picture of all the transactions relating to them at a glance.<\/p>\n
As such, the Ledger is a very useful book and is of the utmost importance in any enterprise. Hence, the Ledger is called the \u2018Principal Book\u2019. It is also called the book of final entry because the transactions which are first entered in Journal or Subsidiary Books are finally incorporated in the Ledger.<\/p>\n
Advantages of ledger \n(1) All accounts are opened on separate pages in this book. Hence, all the transactions pertaining to an account are collected at one place in the Ledger. As such, by looking at the balance of that account, one can understand the collective effect of all such transactions at any point of time. \n(2) Any type of information relating to the business can be easily obtained from the Ledger, such as (1) how much amount each customer owes to the firm; (II) how much amount the first owes to each creditor; (III) how much is the amount of purchase and sales during a particular period; (IV) how much amount has been paid or received on account of various items; and (V) what is the ultimate position of assets and capital. \n(3) A trial balance can be prepared with the help of ledger balances which helps in ascertaining the arithmetical accuracy of the accounts. \n(4) A trading and profit and loss account can only be prepared with the help of ledger balances. \n(5) A balance sheet can also be prepared with the help of ledger balances which depict the financial position of the business.<\/p>\n
Question 2. \nWhat is Cash Book? Explain the types of cash book. \nAnswer: \nCash book is a summary of cash receipts and payments. All cash receipts are recorded in the debit side and all cash payments are recorded in the credit side. All transactions are recorded chronologically.<\/p>\n
Types of Cash Book \nCash Book may be classified into three types : \n(i) Single Column Cash Book \n(ii) Two Column or Double Column Cash Book \n(iii) Three Column Cash Book<\/p>\n
(i) Single column Cash Book: In this type of cash book, a single Amount column on each side records the receipts and payments. The left hand side records receipts of cash and the right hand side the payments. \nFollowing is the specimen: \n <\/p>\n
(ii) Double Column Cash Book (Bank and Discount Column) : \nIn case of transactions involving cash there is always a\u2019risk of embezzlement of cash by the employees. For the purpose of minimising this risk some businessmen follow the policy of depositing all Cash receipts into the bank on daily basis and making all payments by the issue of cheques. Such a Cash Book is also known as Bank Cash Book.<\/p>\n
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Following rules are observed for preparing such a book : \n1. All receipts whether in Cash or by Cheque are to be recorded on the debit side of this book in bank column. It is assumed that all cheques received are sent to the bank for collection on the same day. \n2. All payments are to be recorded on the credit side of this book in the bank column. \n3. If cheque sent for collection is dishonoured, it is recorded on the credit side of this book in bank column. If some discount was allowed on receipt of such a cheque, the discount allowed must also be withdrawn. However, the discount withdrawn should not be entered in the discount column on Credit side of Cash book because the total of this column is posted to the Discount Received Account. The entry for withdrawing the discount should be passed through Journal Proper. The entry will be: \nDebtor\u2019s A\/c — Dr. \nTo Discount Allowed A\/c \n4. Bank charges are also recorded on the credit side in bank column. \n5. For small payments like postage, telegrams, conveyance, stationery etc., which cannot be paid by cheque, a separate book is maintained called \u2018Petty Cash Book\u2019. \n \n(iii) Three Column Cash Book : A column for discount when added to the existing two column cash book it is known as\u2019Three- Colurnn Cash Book\u2019. The columns for discount is not balanced but each side are totalled. The total so ascertained is posted to Discount Account, total of discount column on the credit side of cash book is posted to the credit of Discount Received Account and total of discount column on the debit side of cash book is posted to the debit of Discount Allowed Account. It may be noted that Three Column Cash Book is not within the course and hence, has not been discussed in detail. \n <\/p>\n
Question 3. \nWhat is Contra Entry? How can you deal this entry while preparing Double Column Cash Book? \nAnswer: \nContra Entries : When cash is deposited into the hank or when cash is withdrawn from the bank for use in the office, each such transaction affects both \u2018Cash Column\u2019 as well as \u2018Bank Column\u2019 and the transaction is therefore, recorded on both sides of the cash book.<\/p>\n
Such entries, the double entry of which is complete in the Cash Book itself, are called \u201cContra entries\u201d. \n(1) Cash deposited into Bank : When cash is deposited into the bank, it increases the bank balance and reduces the cash balance. Hence, it affects the Cash Column as well as the Bank Column. As such the same amount is recorded on the debit side as well as on the credit side. On the Dr. side \u2018To Cash A\/c\u2019 is written and the amount is recorded in the bank column. On the Cr. side \u2018By Bank A\/c\u2019 is written and the l amount is recorded in the Cash Column<\/p>\n
Debit Bank A \/c (As bank is receiving the Cash i.e., Debit the receiver) Credit Cash A\/c (As cash is going out) \nFor example, if we deposit Rs. 2,000 into the bank, it will be recorded in the cash book as follows \nDouble Column Cash Book (with Cash and Bank Columns) \n <\/p>\n
(2) Cash withdrawn from Bank for office use : In this case, the cash balance is increased and the bank balance is reduced. On the Dr. side \u2018To Bank A\/c\u2019is written and the amount is recorded in Cash Column. On the Cr. side ‘By Cash A\/c’ is written, and the amount is recorded in Bank Column. \nDebit Cash A\/c (As cash is coming in) \nCredit Bank A\/c (As bank is the giver, i.e., credit the giver) For example, if we withdraw Rs. 2,500 from the bank, it will be recorded in the cash book as follows : \n \nContra entries are not required to be posted to ledger as their double entry is complete in the Cash Book itself. Cash Book itself serves as the cash account and bank account. In order to indicate that these entries are not to be posted to the ledger, the word \u2018C\u2019, which stand for contra, is written on both the sides in ‘L.F.’ Column. The word Contra means ‘opposite’ or ‘against’.<\/p>\n
(3) Receipt of Cheque and Bank Draft: ‘ \n(A) Cheques received from customers and deposited into bank the same day : These are entered in Bank Column on the debit side.<\/p>\n
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(B) Cheques received from customers but not deposited into bank the same day : These are treated as cash, and entered in Cash Column on the debit side.<\/p>\n
Contra Entry : When these cheques are actually deposited with \u2018 the bank on a future date, a contra entry, as in the case of cash deposited in the bank, will be passed.<\/p>\n
Question 4. \nWhat is Petty Cash Book? Write the advantages of Petty Cash Book. \nAnswer: \nPetty Cash Book : In every business, of whatever size, a large number of small payments such as for postage, stationery, bus fare, taxi fare, cartage etc., have to be made. These payments are generally repetitive in nature. If all these payments are made by the cashier and are recorded in the main cash books the cashier will be overburdened with the work and the cash books will also become very bulky. To avoid this, it is usual to appoint an employee as \u2018Petty Cashier\u2019. He is entrusted with the task of making small payments, say, below Rs. 50 and records them in a separate book, called Petty Cash Book.<\/p>\n
Advantages Of Petty Cash Book<\/p>\n
(1) Saving of Time and Labour: As petty cashier handles the work of making all petty expenses and recording them as well, a lot of time and energy of the main cashier is saved. He is to record only the total of such expenses and that too only once, at the end of each month.<\/p>\n
(2) Easiness in Posting: Only the total of each head of expense is posted into the Ledger. As such, a lot of space is saved and the posting becomes very convenient.<\/p>\n
(3) Easiness in preparing the Cash Book: As the number of small payments in every business is quite large and as these are recorded in the petty cash books itself, the main cash book is not overburdened and can be more easily totalled.<\/p>\n
(4) Control on Petty Expenses : The main cashier keeps checking the petty cash book from time to time and a proper check is put on any unnecessary expenditure.<\/p>\n
(5) Lesser chances of fraud : Petty cashier obtains a receipt are duly signed by the main cashier while reimbursing the amount to the petty cashier. As such, it minimises the chance of fraud.<\/p>\n
(6) Simple Method : The maintenance of petty cash book does not require any specialised knowledge of accounting.<\/p>\n
(7) Comparative Study is Possible : Results of one year may be compared with those of previous years and reasons for the change may be ascertained.<\/p>\n
(8) Help Management in Decision-Making : The management may obtain good information for its work, specially in making decisions.<\/p>\n
(9) No Scope of Fraud : The firm is saved from frauds and misappropriations since full information about all assets and liabilities will be available. It is because of these advantages that the double entry system has been used extensively in all countries. One should read the advantages again after he has studied \u2018Final Accounts\u2019.<\/p>\n
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Question 5. \nDescribe the advantages of sub-divided the Journal. \nAnswer: \nJournal can be sub-divided into various subsidiary books in order to record various transactions. The various books like cash book, purchase book, sales book, purchase return and sales return journal and journal proper are special books maintained for recording all cash and credit transactions in order to prepare profit and loss account and Balance-sheet to know the financial position of the business.<\/p>\n
Cash book is a record of all receipts and payments of cash transactions. Credit transactions are recorded in various subsidiary books. After Balance is prepared and final accounts are prepared with the help of Trial Balance.<\/p>\n
Following benefits may be derived from sub-dividing the journal : \n(i) It saves time and cost as the volume of transactions are so large in recording in journal that it convey no meaning. By classifying the various transactions into books of original entry, make meaning and draws certain conclusion.<\/p>\n
(ii) It provides profitability and earning capacity of the business firm. By sub-dividing the journal, the ultimate object of preparing trading, profit and loss account and financial position provides the profitability of the business firm.<\/p>\n
Question 6. \nWhat do you understand by Balancing of account? \nAnswer: \nBalancing of Accounts : After completing the posting of all transactions, accounts are balanced every year or after a certain period. Balancing of account means the two sides of account are totalled and the difference in total of the two sides is written in the side whose total is short.<\/p>\n
For example, if total of credit side is more than the debit side of any account the difference of amount will be recorded as Balance c\/d on debit side and vice-versa on the credit side. If the total of debit side of any account is greater, that account will reveal debit balance and if total of credit side of any accounts is more it will show credit balance. The total of debit and credit side of some account may be equal, those accounts will not show any balance.<\/p>\n
Types of Accounts that are Balanced : Normally, Personal Accounts and Real Accounts are balanced. Nominal Accounts are not balanced but are closed by transfer to Trading and Profit and Loss Account. \n \n \n(1) Cash deposited into Bank : When cash is deposited into the bank, it increases the bank balance and reduces the cash balance. \nDebit Bank A \/c — Dr \nTo Cash A\/c \n(For cash deposited into bank)<\/p>\n
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(2) Cash withdrawn from Bank for office use : In this case, the cash balance is increased and the bank balance is reduced. \nTo Cash A\/c — Dr \nTo Bank A\/c \n(for cash is withdrawn for office use)<\/p>\n
(3) Cheque Received froiti customers and deposited into bank the same day and not deposited the same day : If cheques received are deposited on the same day in the bank are entered in bank column on the debit side, but, if cheques are sent to bank on later date, these are treated as cash and entered in cash column on debit side. When these cheques are actually deposited with the bank on future date, the Contra Entry like cash deposited will be passed.<\/p>\n
(4) Payment by Cheque : As soon as we issue a cheque to someone, it will be immediately recorded on the credit site in Bank Column so that we may be acquainted of the True balance at the bank.<\/p>\n
(5) Dishonour of a Cheque : If a cheque, received from a customer and deposited into Bank for collection is dishonoured, an entry will be made on the credit side of the Cash Book by entering the amount of the dishonoured cheque in the bank column. In particulars column, the name of the customer will be entered. For example, a cheque for Rs. 2.000 received from Ram Kumar is dishonoured, it will be recorded on the credit side as, “By Ram Kumar” and the amount will be entered in Bank Column.<\/p>\n
(6) Cash Discount: In a Cash Book having Cash Bank Columns, the amount of discount is recorded in journal. For example, Rs. 4,800 are received from Yuvraj Singh in full settlement of his account of Rs.5,000. In such a case Rs. 4,800 will be recorded in Cash Book and the discount of Rs.200 will be recorded in Journal as follows : \n <\/p>\n
Balancing : \n(1) Debit side of cash column will always exceed the credit column and as such the balance will be shown on the credit side by writing the words, ‘By Balance c\/d’.<\/p>\n
(2) Usually the bank columns are balanced just like the cash columns. However, the bank column may show either a debit balance or a credit balance. If it shows\u00ab credit balance, it is called overdraft. Overdraft is a situation when cash withdrawn from the bank exceeds the amount deposited into the bank. In such a case, the total of the credit side of bank column will be bigger than the total of the debit side. The difference will be written on the debit side as “To Balance c\/d”. At the beginning of the next month the balance will be shown as “By Balance b\/d”.<\/p>\n
Some important transactions : \n(1) Amount withdrawn for personal use : Amount withdrawn from bank for the personal use of the proprietor is not a contra transaction, ft will affect only the bank column of the cash book. As it reduces the bank balance, it will be recorded on the credit side of cash book as \u2018By Drawings A\/c\u2019 and the amount will be written in the bank column.<\/p>\n
(2) Endorsement of a Cheque : Sometimes, a cheque received from a customer is not deposited into bank, but it may be given to some other peson, i.e., endorsed. When the cheque was received, it must have been entered in the cash column on the debit side On endorsement, it will be entered in the cash column on the credit side.<\/p>\n
(3) Bank Charges : Bank usually charges some amount for the services rendered to its cumtomers. Such charges will be recorded on the credit side as \u2018By Bank Charges\u2019 and the amount will be recorded in the bank column.<\/p>\n
(4) Bank Charges on dishonoured cheques : Expenses charged by the bank on dishonoured cheques will be added into the amount of dishonoured cheque itself.<\/p>\n
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(5) Amount directly deposited by a customer into our Bank A\/c : When the information of such a deposit is received by the trader, it will be recorded on the debit side of the cash book and the amount will be entered in the bank column.<\/p>\n
(6) (i) Interest allowed by bank: Interest allowed (credited) by the bank increases the balance at bank. The entry ‘ for such interest is, therefore, recorded on the debit side in bank column.<\/p>\n
(ii) Interest charged by bank: When interest is charged (debited) by the bank on the amount of bank overdraft, the entry is recorded on the credit side in bank column.<\/p>\n
(7) Discounting of Bill Receivable (B\/R) from Bank : If a bill receivable is discounted from a bank, the entry for discount deducted by the bank is passed in the journal proper 1 and the net proceeds is entered in the Bank Column on the debit side.<\/p>\n
Numerical Questions<\/span><\/p>\nQuestion 1. \nSimple Cash Book \nEnter the following transactions in a simple cash book for the year December 2005: \n01 Cash in hand — 12,000 \n05 Cash received from Bhanu — 4,000 \n07 Rent Paid — 2,000 \n10 Purchase goods Murari for cash — 6,000 \n15 Sold goods for cash — 9,000 \n18 Purchase Stationery — 300 \n22 Cash paid to Rahul on account — 2,000 \n28 Paid Salary — 1,000 \n30 Paid Rent — 500 \n[Ans. Cash in hand Rs. 13,200] \nAnswer: \n <\/p>\n
Question 2. \nRecord the following transaction in Simple Cash Book for the year November 2005 \n01 Cash in hand — 12,500 \n04 Cash paid to Hari — 600 \n07 Purchase goods — 800 \n12 Cash received from Amit — 1,960 \n16 Sold Goods for cash — 800 \n20 Paid to Manish — 590 \n25 PaidCartage — 100 \n31 Paid Salary — 1,000 \n[Ans. Cash in hand Rs. 12,170] \nAnswer: \n <\/p>\n
Question 3. \nEnter the following transaction in Simple Cash Book the year December 2005 : \n01 Cash hand — 7,750 \n06 Paid to Sonu — 45 \n08 Purchased Goods — 600 \n15 Received cash from Parkash — 960 \n20 Cash sales — 500 \n25 Paid to S.Kumar — 1,200 \n30 Paid rent — 600 \n[Ans. Cash in hand Rs. 6,765)] \nAnswer: \n <\/p>\n
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Question 4. \nBank Column Cash Book \nRecord the following transactions in a Bank Column Cash Book for the year December 2005 : \n01 Started Business with cash — Rs. 80,000 \n04 Deposited in Bank — Rs. 50,000 \n10 Received Cash from Rahul — Rs. 1,000 \n15 Bought goods for cash — Rs. 8,000 \n22 Bought goods by Cheque — Rs. 10,000 \n25 Paid to Shyam by Cash — Rs. 20,000 \n30 Drew from Bank for office use — Rs. 2,000 \n31 Rent paid by Cheque — Rs. 1,000 \n[Ans. Cash in hand Rs. 5,000 : Cash at Bank Rs. 37,000] \nAnswer: \n <\/p>\n
Question 5. \nPrepare a Double Column Cash Book with the help of following information for the year December 2005 : \n1 Started business with Cash — Rs. 1,20,000 \n3 Cash paid into Bank — Rs. 50,000 \n5 Purchased Goods from Sushmita — Rs. 20,000 \n6 Sold goods to Dinker and received a Cheque — Rs. 20,000 \n10 Paid to Sushmita cash — Rs. 20,000 \n14 Cheque received on December 6, 2005 deposited into bank — Rs. 20,000 \n18 Sold goods to Rani — Rs. 12,000 \n20 Cartage paid in cash — Rs. 500 \n22 Received Cash from Rani — Rs. 12,000 \n27 Commission received — Rs. 5,000 \n30 Drew Cash for Personal Use — Rs. 2,000 \n[Ans. Cash in hand Rs. 64,500 : Cash at Bank Rs. 70,000] \nAnswer: \n <\/p>\n
Note: No entries will be passed for Dec. 05, and Dec. 18 as these transactions are non-cash transactions.<\/p>\n
Question 6. \nEnter the following transactions in Double Column Cash Book of M\/s. Ambica Traders for the year November 2005: \n01 Commenced business with cash — Rs. 50,000 \n03 Opened Bank account with ICICI — Rs. 30,000 \n05 Purchased goods for cash — Rs. 10,000 \n10 Purchased office Machine for cash — Rs. 5,000 \n15 Sales goods on credit from Rohan and received cheque — Rs. 7,000 \n18 Cash sales — Rs. 8,000 \n20 Rohan\u2019s cheque deposited into bank \n22 Paid cartage by cheque Rs. 500 \n25 Cash withdrawn for personal use — Rs. 2,000 \n30 Paid rent by cheque — Rs. 1,000 \n[Ans. Cash in hand Rs. 11,000 : Cash at bank — Rs. 35,500] \nAnswer: \n <\/p>\n
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Question 7. \nPrepare Double Column Cash Book from the following information for the year September 2004: \n01 Cash in hand — Rs.7,500 \nBank overdraft — 3,500 \n03 Paid wages — 200 \n05 Cash sales — 7,000 \n10 Cash deposited into Bank — 4,000 \n15 Goods purchased and paid by cheque — 2,000 \n20 Paid rent — 500 \n25 Drew from Bank for personal use — 400 \n30 Salary paid — 1,000 \n[Ans. Cash in hand Rs. 8,800 : Bank overdraft Rs. 1,900] \nAnswer: \n <\/p>\n
Question 8. \nEnter the following transaction in a Double column cash Book of M\/s. Mohit Traders for the year January 2005 : \n01 Cash in hand — Rs.3,500 \nBank Overdraft — 2,300 \n03 Good purchased for Cash — 1,200 \n05 Paid Wages — 200 \n10 Cash Sales — 8,000 \n15 Deposited into Bank — 6,000 \n22 Sold goods for cheque which was deposited into bank same day — 2,000 \n25 Paid rent by cheque — 1,200 \n28 Drew from bank for personal use — 1,000 \n31 Bought goods by cheque — 1,000 \n[Ans. Cash in hand R-s. 6,100 : Casli at bank Rs. 500] \nAnswer: \n <\/p>\n
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Question 9. \nPrepare Double Column Cash Book from the following transactions for the year December, 2005 : \n01 Cash in hand — Rs.17,500 \nCash at Bank — 5,000 \n03 Purchased goods for cash — 3,000 \n05 Received cheque from Jasmeet –10,000 \n08 Sold Goods for Cash — 7,000 \n10 Jasmeet\u2019s Cheque deposited into Bank \n12 Purchased goods and paid by cheque — 20,000 \n15 Paid Establishment expenses through bank — 1,000 \n18 Cash Sales — 7,000 \n20 Deposited into Bank — 10,000 \n24 Paid Trade Expenses — 500 \n27 Received Commission by cheque — 6,000 \n29 Paid Rent — 2,000 \n30 Withdrew cash for Personal use — 1,200 \n31 Salarypaid — 6,000 \n[Ans. Cash in hand Rs. 8,800 : Cash at Bank Rs. 10,000] \nAnswer: \n <\/p>\n
Question 10 . \nM\/s. Ruchi Trader started their cash book with the following balances on Dec. 01,2005: Cash in hand Rs. 1,354 and balance at \nBank Account Rs. 7,560. He had the following \ntransaction in the month of December, 2005. Rs. \n3 Cash Sales 2,300 \n05 Purchased goods, paid by cheque — 6,000 \n8 Cash Sales — 10,000 \n12 Paid Trade Expenses — 700 \n15 Sales goods, received cheque \n(Deposited the same day) — 20,000 \n18 Purchased Motor Car paid by cheque — 15,000 \n20 Cheque received from Manisha \n(Deposited same day) — 10,000 \n22 Cash Sales — 7,000 \n25 Manisha\u2019s cheque dishonoured \n28 Paid Rent — 2000 \n29 Paid Telephone Expenses by cheque — 500 \n31 Cash withdrawn for personal use — 2,000 \nPrepare Bank Column cash Book \n[Ans. Cash in hand Rs. 1 5,954 : Cash at Bank Rs. 6,060] \nAnswer: \n <\/p>\n
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Question 11. \nPetty Cash Book \nPrepare Petty Cash Book from the following transactions. The imprest system amount is Rs. 2,000. \nJanuary — Rs. \n01 Paid Cartage — 50 \n02 STD Charges — 40 \n02 Bus Fare — 20 \n03 Postage — 30 \n04 Refreshment for Employees — 80 \n06 Courier charges — 30 \n08 Refreshment of Customers — 50 \n10 Cartage — 35 \n15 Taxi fare to Managers — 70 \n18 Stationery — 65 \n20 Bus fare — 10 \n22 Fax Cheques — 30 \n25 Telegram charges — 35 \n27 Postage Stamps — 200 \n29 Repair on furniture — 105 \n30 Laundry Expenses — 115 \n31 Miscellaneous Expenses — 100 \nAnswer: \n \n <\/p>\n
Question 12. \nRecord the following transactions daring the week ending Dec. 30,2005 with a weekly interest of Rs. 500. \n24. Stationery 100 \n25. Bus Fare 12 \n25. Cartage 40 \n26. Taxi fare 80 \n27. Wages to Casual labour 90 \n29. Postage 80 \n[Ans. Cash balance Rs. 98] \nAnswer: \nPreposition of Petty cash book for the month of Dec. 2005. \n <\/p>\n
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Other Subsidiary Books<\/p>\n
Question 13. \nEnter the following transactions in the purchase Journal (Book) of M\/s. Gupta Traders of July 2005 : \n01 Bought from Rahul Traders as per Invoice No. 20041<\/p>\n
40 Registers @ Rs. 60 Each \n80 Gel Pens @ Rs. 15 Each \n50 Note Books @ Rs. 20 Each \nTrade Discount 10%.<\/p>\n
15. Bought from Global Stationers as per Invoice No. 1132 \n40 Ink Pads @ Rs. 8 Each \n50 files @ Rs. 10 Each \n20 Color Books @ Rs. 20 \nEach Trade Discount 5%<\/p>\n
23. Purchase from Lamba Furniture as per Invoice No. 3201 \n2 Chairs @ 600 Per Chair \n1 Table (a), 1,000 Per Table<\/p>\n
25. Bought from Mumbai Traders as per Invoice No. 1111 \n10 Paper Rim @ Rs. 100 per rim \n400 Drawing Sheets @ Rs. 3 Each. \n20 Packet Water Color @ Rs. 40 Per Packet. \n[Ans. Total of purchase journal 8,299] \nAnswer: \n \n \nFurniture purchased from Lamba Traders will not be recorded in the Purchase Book as furniture is not to be considered as goods for M\/s- Gupta Traders. This is because M\/s Gupta Traders deals in stationery and not in furnitures.<\/p>\n
Question 14. \nEnter the following Transaction in Sales Journal (Book) of M\/s. Bansal Electronics \nSept 01. Sold to Amit Traders as per Bill No. 4321<\/p>\n
20 Pocket Radio @ 70 per Radio \n2 TV sets B&W (6″) @ 800 per TV<\/p>\n
10. Sold to Arun Electronics as per Bill No. 4351 \n5 TV sets (20″) B&W @ Rs. 3,000 per TV. \n2 TV sets (21″) Colour @ Rs. 4,800 per TV.<\/p>\n
22. Sold to Handa Electronics as per Bill No. 4399 \n10 Tape recorders @ Rs. 600 each \n5 Walkman @ Rs. 300 each<\/p>\n
28. Sold to Harish Trader as per Bill No. 4430 \n10 Mixer Juicer Grinder @ Rs. 800 each. \n[Ans. Total of sales book Rs. 43,100] \nAnswer: \n <\/p>\n
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Question 15. \nPrepare a Purchase Return Journal (Book) from the followirg Transaction : \nJan.2006 \n5 Return Goods to M\/s. Kartik Trader for Rs. 1,200 \n10 Goods Return to Sahil Pvt. Ltd. for Rs. 2,500 \n17 Goods Return to M\/s Kohinour Traders for \nList Price Rs. 2,000 less 10% Trade Discount \n28 Return Outward to M\/s. Handa Traders for Rs. 550 \n[Ans. Total of purchase returns book Rs. 6,050] \nAnswer: \n <\/p>\n
Question 16. \nPrepare a Return Inward (Journal Book) from the following Transactions of: \nM\/s. Bansal Electronics for the year November 2005 : \n4 M\/s. Gupta Trader returns the goods amounted Rs. 1500 \n10 Goods Return from M\/s. Harish Traders for Rs. 800 \n18 M\/s. Rahul Traders return the goods not as per specification for Rs. 1,200 \n28 Goods Return from Sushil Traders for Rs. 1,000 \n[Ans. Total of Sales Returns Rs. 4,500] \nAnswer: \n <\/p>\n
Question 17. \nPrepare proper subsidiary Journal (Books) and post to the Ledger from the following Transactions for the month of February 2006 : \n1 Goods sold to Sachin — Rs. 5,000 \n4 Purchase from Kushal Traders for — Rs. 2.480 \n6 Sold goods to Manish Traders for — Rs. 2.100 \n7 Sachin Returns the goods for — Rs. 600 \n8 Returns to Kushal I\u2019raders — Rs. 280 \n10 Sold to Mukesh — Rs. 3.300 \n14 Purchase from Kunal Traders for — Rs. 5,200 \n15 Furniture Purchase from Tarun for — Rs. 3,200 \n17 BoughtofNaresh — Rs. 4.060 \n20 Return to Kunal Traders for — Rs. 200 \n22 Return Inward from Mukesh — Rs. 250 \n24 Purchase Goods from Kirit & Co. for list price of Rs. 5.700 less 10% Trade Discount \n25 Sold to Shri Chand Goods for — Rs. 6,600 \nless 5% Trade Discount \n26 Sold to Ramesh Brothers for — Rs. 4,000 \n28 Return outwards to Kirit & Co. for — Rs. 1.000 \nLess 10% Trade Discount \n28 Rainesh Brothers Return the goods — Rs. 500 \n(Total of Sales Book Rs. 20.670. Purchase Book Rs. 16,870) \n(Purchase Returns Book Rs. 1 ,380, Sale Returns Book Rs. 1 .350) \n \n <\/p>\n
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\n \n \n \n <\/p>\n
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Question 18. \nThe following Balances of ledger of MIs. Marble Traders on 1st April 2006. \n <\/p>\n
Apr.01 Goods sold to Nia nish — Rs. 3,000 \nApr.02 Purchase goods from Rarnesh — Rs. 8,000 \nApr.03 Received cash froni Rahul in full settlement — Rs. 9,200 \nApr.05 Cash received from Himanshu on account — Rs. 4,000 \nApr.06 Paid to Ramesh by Cheque — Rs. 6,000 \nApr.08 Rent paid by Cheque — Rs. 1,200 \nApr.10 Cash received from Manish — Rs. 3,000 \nApr.12 Cash Sales — Rs. 6,000 \nApr.14 Goods return to Ranwsh — Rs. 1,000 \npl5 Cash paid to Ramcsli in full settlement — Rs. 3,700 \n(Discount received Rs. 300) \nApr.19 Goods Sold to Kushal — Rs. 10,000 \nApr.20 Paid Trade Expenses — Rs. 200 \nApi21 l)rew for personal tise — Rs. 1,000 \nApi22 Goods return froni Kushal — Rs. 1,200 \nApr.24 Cash received from Kushal — Rs. 6,000 \nApr.26 Paid for stationery — Rs. 100 \nApr.27 Postage charges — Rs. 60 \nApr.28 Salary Paid — Rs. 2,500 \nApi29 Goods purchased from Sheetal Traders — Rs. 7,000 \nApr.30 Sold goods to Kirti — Rs. 6,000 \nGoods purchase from Handa Traders — Rs. 5,000 \nJournalise the above transactions and post them to the ledger. \n[Ans. Total of accounts Balance Debit and Credit Rs. 1,35060] \nAnswer: \n \n \n \n \n <\/p>\n
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Detailed, Step-by-Step NCERT Solutions for 11 Accountancy Chapter 4 Recording of Transactions 2 Questions and Answers were solved by Expert Teachers as per NCERT (CBSE) Book guidelines covering each topic in chapter to ensure complete preparation. Recording of Transactions 2 NCERT Solutions for Class 11 Accountancy Chapter 4 Recording of Transactions 2 Questions and Answers …<\/p>\n
NCERT Solutions for Class 11 Accountancy Chapter 4 Recording of Transactions 2<\/span> Read More »<\/a><\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","spay_email":""},"categories":[4],"tags":[],"yoast_head":"\nNCERT Solutions for Class 11 Accountancy Chapter 4 Recording of Transactions 2 - MCQ Questions<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n