TS Grewal Solutions for Class 11 Accountancy Chapter 15 – Accounting for Bills of Exchange

Question 1.
Manish sold goods to Kumar to the value of Rs.10,000 drawing upon him a bill for the amount payable 3 month after date. Kumar accepted the bill and returned it to Manish. On the due date, Manish presented the bill to Kumar who honoured it. Pass the Journal entries in the books of both the parties.
Solution:

Question 2.
On 1stJanuary2013, A sold goods to B for Rs.5,000 and drew upon him a bill for this amount payable 3 month after date. The bill was duly accepted by B.A retained the bill due date. On the due,the bill was paid.
Pass the Journal entries in the books of A And B. Also, show the necessary accounts in the books of both the parties.
Solution:

Question 3.
Vinod sold goods to Darbara Singh for Rs. 1,000. He drew on the latter a bill for the amount payable 3 month after date. He discounted the bill with his bankers for Rs.990. On maturity, the bill is duly met. Make the journal entries in the books of Vinod and Darbara Singh.
Solution:

Question 4.
Dinesh received from Shridhar an acceptance for Rs.3,000 on 1stSeptember, 2012 at 3 month. Dines got the acceptance discounted at 9% p.a.from his bank. On the due date, Shridhar paid the required amount. Give the Journal entries in the books of Dinesh and Shridhar.
Solution:

Question 5.
A sold goods to B for Rs.20,000 on credit of 3 moths. He drew on the latter a bill for the amount. The bill was endorsed in favour of C, who got the payment on maturity. Give the journal entries in the books of A.
Solution:

Question 6.
On 10thJuly, 2013, A sold goods to B for Rs.3,500 and drew upon him a bill at 3 month of the amount. B accepted the bill. After 10 days, A endorsed the bill to his credit C. On the due date, acceptance is duly met.
Show the entries in the books of A, B and C.
Solution:

Question 7.
A owed a bill of Rs.1,000 on B for 3 month which was duly accepted by the latter. A endorsed the to C in full payment of his own acceptance to C for like amount. C endorsed the bill to B.
Pass the journal entries in the book of A,B and C.
Solution:

Question 8.
A owed B Rs.8,000.He gave a bill for the same on 1st August,2011 payable after 4 months at the Bank of India, ChandniChowk, Delhi. Immediately after receiving the bill of endorsed it C in payment of his debt. On 1st September, C discounted the bill the at 12% p.a. The bill is met on due date.
Pass the journal entries in the books of A,B and C.
Solution:

Question 9.
Mohan Singh draws a bill on Jagat for Rs.1,000 payable 2 month after date. Immediately after its acceptance, Mohan Singh sends the bill to his Bank for collection . On due date bank gets the payment.Make the entries in the books of all the parties.
Solution:

Question 10.
X draws on Y a bill for Rs.4,000 which was duly accepted by Y. Y meet the bill on its due date show what entries would be passed in the books of X under each of the following circumstance.
a. If X retainthe bill till due date.
b. If X discounts the same with his banker paying Rs.100 for discount.
c. If Xendorses the same to his creditors Z in full settlement of this debtofRs.4,080.
d. If X sends the bill to his banker for collection the next day bank.
Solution:

Question 11.
Ram draws a bill forRs.2,000 on Shyam on 15th September, 2011 for the 3 months on maturity, Shyam failed to honour the bill.
Solution:

Question 12.
On 20thmarch,2013, Naresh sold goods to Kailash to the value of Rs.1,250, taking a bill of 3 months for the amount. On maturity, the bill was dishonoured. Rs.10of noting charges. On 1stJuly, Kailash cleared his account by paying Rs. 1,260.
Make the entries in the books of both the parties to record the above transaction.
Solution:

Question 13.
On 1stJuly, 2011, A drew a bill for Rs.500. On B payable after 3 months. A discounted it the Bank for Rs.485. On maturity B failed to pay the amount of his acceptance and had to pay Rs.5 as noting charges.
Draw up the necessary Journal entries in the books of A and B.
Solution:

Question 14.
On 15thJune, 2015, Mohan sold goods to Sohan valued at Rs.2,000. He drew a bill 3 month for the amount and discounted the same with his bankers atRs.1,960.On the due date the bill was dishonoured and Mohan paid to the bank the amount due plus noting charges of Rs.10.
Draft the journal entries in the books of all parties.
Solution:

Question 15.
On 1stMarch ,2015, R accepted a Bill of Exchange of Rs.20,000 from S payable 3month after date in full settlement of his dues. On the same day S endorsed the Bill of Exchange to T together with a cheque for Rs.5,000 in settlement of his debt to the latter. On 2ndMarch, 2015, T discounted the Bill of exchange @ 6% p.a. with his bankers. On maturity the Bill of Exchange was dishonoured.
Journalise the transaction in the books of R and T.
Solution:

Question 16.
On 1st January, 2015, A drew a bill on B for Rs.1,000 payable after 3 months. B accepted the bill and returned it to A. After 10 days, A endorsed the bill to his creditor C. On the due date, the bill was dishonoured and C paid Rs.5 as noting charges.Record the transactions in the books of A, B and C.
Solution:

Question 17.
B owes A Rs.4,000 on 1st January, 2015. B accepts a 3 months bill for Rs.3,900 being in full settlement of the claim. At its due date the bill is dishonoured. Noting charges Rs.50 are paid by A. Give the Journal entries in the books of A and B.
Solution:

Question 18.
Y owesX Rs.4,000. On 1st January, 2015, Y accepts a 3 months bill for Rs.3,900 in satisfaction of his full claim. On the same date, it was endorsed by Xto Z in satisfaction of his claim of Rs.3,980. The bill is dishonoured on the due date. Give the Journal entries in the books of X.
Solution:

Question 19.
Rama sold goods worth Rs.1,200 to Reshma on 1st January, 2015. On the same date Rama draws a bill on Reshma for Rs.1,200 for a period of 3 months. On receipt of the bill on 1st January, duly accepted by Reshma. Ramadiscounts it with a bank at 6% p.a. On the date of maturity, the bill was dishonoured, the bank having to pay Rs.20 as noting charges. Rama was compelled to make the settlement. Show the Journal entries arising from the above in the books of both Rama and Reshma.
Solution:

Question 20.
On 1st January, 2015, A draws a bill on B for Rs.1,000 payable after 3 months. Immediately after its acceptance, A sends the bill to his bank for collection. On the due date, the bill was dishonoured. Record the transactions in the Journals of A and B.
Solution:

Question 21.
A bill for Rs.21,000 is drawn by A on B and accepted by the latter payable at the New Bank of India. Show what entries should be passed in the books of A under each of the following circumstances:
i. If A retained the bill till the due date and then realised it on maturity.
ii. If A discounted it with his bankers for Rs.950.
iii. If A endorsed it to his creditor C in full settlement of his debt.
iv. If A sent it to his bankers for collection.
Also, give the necessary entries in each of the cases if the bill is dishonoured.
Solution:

Question 22.
On 1st January, 2013 for goods sold, Ramesh drew a Bill of Exchange Mahesh for Rs.4,000, for a period of 3 months. Mahesh accepts it and returns to Ramesh. Ramesh then endorses it to Mukesh who in turn endorses it to Suresh on 1st February. 2013. The bill is then discounted by Suresh on the same date with his banker at 5% p.a. On the due date the bill is dishonoured. Pass the necessary Journal entries in the books of all the four parties.
Solution:

Question 23.
A Bill Receivable for Rs.100, which has been discounted at Rs.95, is dishonoured and the bank paid Rs.2 as noting charges.
Give the Journal entries to record the above in the books of
i. the Drawer
ii. the Drawee
iii. the Bank
Solution:

Question 24.
A purchases goods worth Rs.6,200 from B and gives him his acceptance for Rs.6,000 in full satisfaction. B purchases goods worth Rs. 10,000 from C and endorses the bill to him, paying the balance by cheque. On maturity the bill is dishonoured, noting charges amounted to Rs.100. Give the Journal entries in the books of A, B and C.
Solution:

Question 25.
A draws a bill of Rs.500 on B. on getting B’s acceptance, he endorse it to C and C to D. On maturity the bill is dishonoured, nothing charges amounted to Rs.10.
Give the Journal entries in the books of all the parties to record the above transactions.
Solution:

Question 26.
On 1st January 2013, X received from Y three Bills of Exchange for Rs.6,000; Rs.8,000 and Rs.10,000 for 6 months, 4 months and 3 months respectively. On 3rd January the first was discounted by X with his bankers at a discount of 5% p.a. On 1st February the 3rd bill was endorsed in favor of a creditor Z. The second bill was retained till the due dates all the three bills were dishonored.
Show the necessary Journal entries in the books of X and Y.
Solution:

Question 27.
On 1st January, 2013, Mr. X sold goods to Mr. Y for Rs.4,500 on credit and drew 3 bills on him: first bill for Rs.1,000 for 1 month, second bill for Rs.1,500 for 2 months and third bill Rs. 2,000 for 3 months. Mr. Y accepted and returned all the bills to Mr. X.
The first bill was retained by Mr. X till the date of maturity. Second bill was endorsed his creditor Mr. Z on 3rd January, 2013 and third bill was sent to bank for collection on 4th January, 2013. On maturity all the bills were dishonoured and noting charges amounted to Rs.10, Rs.15 and Rs.20 respectively.
Solution:

Question 28.
Ram owes Rs.2,000 to Mohan on 1st January, 2013. On this date, he accepted a draft for amount for 3 months. Mohan got the bill discounted at his bank @ 6% p.a. On the due the bill was dishonoured, noting charges Rs.20. Ram agreed to pay Rs.520 immediately accept another bill for the remaining amount for 3 months together with interest at 9% p.a.
This bill was met on the due date. Give the Journal entries in the books of both the parties.
Solution:

Question 29.
On 15th June, 2013, X sold to Y goods to the value of Rs.1,500 drawing upon the latter bills, one for Rs.1,000 payable 2 months after date and other for Rs.500 payable 3 month after date. X discounted the first bill with his bankers at 6% p.a. and endorsed the second bill in favor of this creditor Z. The first bill was met on maturity but the second dishonoured. Z paid Rs.5 as noting charges. On 1st October, Y cleared his account paying Rs.510 which included Rs.5 as interest.
Record the necessary Journal entries in the books of both X and Y.
Solution:

Question 30.
X draws a bill on Y for Rs.2,000 on 1st January, 2013. Y accepts the same and returns it to X. The bill was drawn by X in full settlement of a debt owing by Y amounted to Rs.2,050. X discounts the bill on the same date with the Central Bank of India for Rs.1,980. At maturity the bill was duly met by Y. Give the entries in the books of X and Y.
Suppose the bill is dishonoured, what entries will be passed?
Solution:

Question 31.
On 1st June, 2013, A sold goods to B for Rs.250. B gave to A his acceptance payable 1 month after date. Before maturity B requests A to renew it, which A does adding Rs.10 to the new bill for interest. Make the necessary Journal entries to record these transactions in the books of both A and B.
Solution:

Question 32.
A sold goods to B on 1st September, 2013 for Rs.16,000. B immediately accepted a 3 months bill. On the due date, B requested that the bill be renewed for a further period of 2 months. A agreed provided interest at 9% p.a. was paid immediately in cash. To this B was agreeable. The second bill was met on the due date. Give the Journal entries in the books of A.
Solution:

Question 33.
On 1st May, 2013, Merchant and Co. sold goods to A.B and Co. valued at Rs.500 and drew upon them a bill at 3 months for the amount. A.B and Co. accepted the draft on presentation. When the bill was about to mature. A.B and Co. expressed their inability to meet it, and offered to pay Merchant and Co. Rs.200 in cash and to accept a fresh bill for the balance plus interest at 6% p.a. for 3 months. Merchant and Co. agreed to the proposal and bill was renewed. On maturity, the bill was duly met. Make the entries in the books of both the parties to record the above transactions.
Solution:

Question 34.
A owed B Rs.400. A accepted a Bill of Exchange at 3 months date for this amount which B discounted for Rs.380.
Give the necessary Journal entries in the books of A and B if this bill is:
(a) dishonoured on the due date; (b) met at maturity and (c) retired under rebate at 6% p.a. 2 months before its maturity.
Solution:

Question 35.
Amar sells goods to Bhola for Rs.10,000 and draws upon him a bill for the amount payable 3 months after date. The bill is accepted by Bhola. Amar discounts the bill with his bankers at a discount of Rs.150 inclusive of all charges. Bhola fails to meet this bill on maturity. Amar pays off his banker and his expenses amounting to Rs.100. Bhola gives a fresh bill, 2 months’ date to Amar for Rs.10,250, which he met at maturity.
Show the necessary Journal entries in Amar’s books.
Solution:

Question 36.
Amar purchased goods worth Rs.1,000 from Bimal on 1st January, 2013 and accepted a bill for 1 month drawn by Bimal for the same. Being unable to meet the bill on the due date, Amar requested Bimal to accept cash Rs.250 and draw a new bill for 2 months for the balance amount plus interest of Rs.10. Bimal accepted this proposal and drew on Amar another bill. The bill was duly met on the due date. Pass the Journal entries in the books of both the parties.
Solution:

Question 37.
‘B’, being unable to meet his acceptance for Rs.2,000 due on 15th June, approaches the Drawer `A’ (who is in possession of the bill) on 30th June, with the request to receive Rs. 800 in cash and draw on him for the balance plus Rs. 15 for interest at 3 months date and cancel the old Bill for 2000.”A’ agrees to this. Pass the entries in the books of ‘A’ and ‘B’.
Solution:

Question 38.
Give the Journal entries for the following:
a. B’s acceptance to us for Rs.1,000 due this day, renewed at his request for 3 months with interest @ 6% p.a.
b. Our bill to C. Chandra for Rs.5,000 renewed for 2 months with interest @ 6% p.a.
c. B’s acceptance of Rs.3,000 is discharged on his paying us cash 1,000 and accepting a fresh bill for the balance with interest Rs.100.
Solution:

Question 39.
Leena sold goods to Meena on 1st March, 2009 for Rs.68,000 and drew two Bills of Exchange of the equal amount upon Meena payable after three months. Leena immediately discounted the first bill with her bank at 12% p.a. The bill was dishonoured by Meena and Bank paid Rs.55 as noting charges. The second bill was retired on 4th May, 2009 under a rebate of 6% p.a. with mutual agreement.
Journalize the above in the books of Leena and Meena.
(KVS 2010)
Solution:

Question 40.
How will you record the following transactions in the books of Kapadia?
a. A bill received from Dalpat for Rs.1,000 has to be renewed; Dalpat agrees to pay Rs.20 as interest.
b. Swamy’s bill for Rs.800 endorsed in favour of Ghosh dishonoured. Ghosh pays Rs.10 as noting charges. Swamy pays Rs.300 immediately and agrees to accept a new bill for 3 months for the balance together with interest at 6% p.a. Ghosh’s Account is settled by cheque.
Solution:

Question 41.
Y purchased goods for Rs.6,000 on 1st June, 2011 from X and on the same date accepted a bill payable after three months. 3 days later, X endorsed the bill to Z. On maturity, the bill was dishonoured for non-payment and Z had to pay Rs.50 as noting charges. Two days after the dishonour of bill, Y paid Rs.2,000 to X and requested him to draw a second bill of the balance plus Rs.90 for the amount of interest, payable after two months. X accepted the proposal and draws the bill on Y, which was accepted by Y and was duly met on maturity.
Pass Journal entries for the above transactions in the books of X.
(MSE Chandigarh 2013)
Solution:

Question 42.
On 1st January, 2008, A sold goods to B for C Rs.1,00,000 received Rs.25,000 in cash and drew two bills, first Rs.45,000 and second for Rs.30,000 of two months each. Both bills duly accepted by B. First bill was endorsed to C in settlement of his account of Rs.45,000 and second bill was discounted from the bank at the rate of 12% p.a. On the due date of these bills, both bills were dishonoured. C has paid Rs. 100 and bank has paid Rs.80 as noting charges.
Pass Journal entries in the books of A, B and C.
(MSE Chandigarh.)
Solution:

Question 43.
On 1st January, 2015, Y accepted a three months bill for Rs.2,000 drawn on him by X for the latter’s benefit. X discounted the bill on 4th January @ 6% p.a. and on the due date sent a cheque for Rs.2,000 in order to enable him to honor the bill. Y duly honoured his acceptance.
Pass the Journal entries in the books of X and Y.
Solution:

Question 44.
On 1st January, 2015, B accepted a three months bill for Rs.20,000 drawn on him by A for latter’s benefit. A discounted the bill on 4th January @ 20% p.a. and on the due date sent B a cheque for Rs.20,000 in order to enable him to honour the bill. B duly honored his acceptance. Pass the Journal entries in the books of A and B.
Solution:

Question 45.
For the mutual accommodation of P and Q, P draws a bill on Q for Rs.1,500. Q accepts the bill and returns it to P. P discounts the same with his bankers and receives Rs.1,464. The proceeds are shared between P and Q in proportion to 2/3rd and 1/3rd respectively. On the due date P remits his proportion to Q who meets the bill.
Pass the Journal entries in the books of P and Q to record the above transactions.
Solution:

Question 46.
X, for the temporary and mutual accommodation of himself and Y, draws upon the latter a Bill of Exchange at 3 months for Rs.1,000. On 1st January, 2009, X discounts the bill at 6% and hands half the proceeds to Y. On the due date, X remits the amount due to Y who meets the bill. Pass the Journal entries in the books of both the parties.
Solution:

TS Grewal Solutions for Class 11 Accountancy Chapter 13 – Depreciation

Question 1.
On 1st April, 2012, Shri Ram purchased a machinery costing Rs.40,000 and spent Rs.5,000 on its erection. The estimated effective life of the machinery is 10 years with a scrap valued of Rs.5,000. Calculate the Depreciation on the Straight Line Method and show the Machinery Account of first three years. Accounting year ends on 31st March every year.
Solution:

Question 2.
On 1st April, 2011, a merchant purchased a furniture costing Rs.55,000. It is estimated that its life is 10 years at the end of which it will be sold for Rs.5,000. Additions are made 1st April, 2012 and 1st October, 2014 to the value of Rs.9,500 and Rs.8,400 (Residual values Rs.500 and Rs.400 respectively).
Show the Furniture Account for the first four years, Depreciation A/c is written off according to the Straight Line Method.
Solution:

Question 3.
On 1st April, 2011, A Ltd. purchased a machine for Rs.2,40,000 and spent Rs.10,000 on its erection. On 1st October, 2011, an additional machinery costing Rs.1,00,000 was purchased. On 1st October, 2013 the machine purchased on 1st April, 2011 was sold for Rs.1,43,000 and on the same date, a new machine was purchased at a cost of Rs.2,00,000.
Show the Machinery Account for the first four financial years after charging Depreciation at 5% p.a. by the Straight Line Method.
Solution:

Question 4.
From the following transactions of a concern, prepare the Machinery Account for ended 31at March, 2015:
1st April, 2014: Purchased second-hand machinery for Rs.40,000.
1st April, 2014: Spent Rs.10,000 on repairs for making it serviceable.
30th September, 2014: Purchased additional new machinery fort 20,000.
31st December, 2014: Repairs and renewals of machinery Rs.3,000.
31st March, 2015 :Depreciate the machinery at 10% p.a.
Solution:

Question 5.
An asset was purchased for Rs.10,500 on 1st April, 2009. The scrap value was estimated be Rs.500 at the end of asset’s 10 years’ life. Straight Line Method of depreciation was used.
The accounting year ends on 31st March. The asset was sold for Rs.600 on 31st March, 2016. calculate the following:
a. The Depreciation expense for the year ended 31st March, 2010.
b. The net book value of the asset on 31st March, 2014.
c. The gain or loss on sale of the asset on 31st March, 2016.
Solution:

Question 6.
Modern Ltd. purchased machinery on 1st JulyRs.60,000. On 1st October, 2004 based another machine for Rs.20,000. On 30th June, 2005, it sold the first machine hosed in 2003 fort Rs.38,500. Depreciation-is provided at 20% p.a. on the original cost year. Accounts are closed on 31st March every year. Prepare the Machinery A/c for three year.
Solution:

Question 7.
On 1st July. 2010, Sohan Lal and Sons purchased a plant costing Rs.60,000. Additional plant was purchased on 1st January, 2011 for Rs.40,000 and on 1st October, 2011, for Rs.20,000. On 1st April, 2012, one-third of the plant purchased on 1st July, 2010, was found to have become obsolete and was sold for Rs.6,000.
Prepare the Plant Account for the first three years in the books of Sohan Lal and Sons. Depreciation is charged @ 10% p.a. on Straight Line Method. Accounts are closed on 31st March each year.
Solution:

Question 8.
A Van was purchased on 1st April, 2010 for Rs.60,000 and Rs.5,000 was spent on its repair and registration. On 1st October, 2011 another van was purchased for Rs.70,000. On 1st April, 2012, the first van purchased on 1st April, 2000 was sold for Rs.45,000 and a new van costing Rs.1,70,000 was purchased on the same date. Show the Van Account from 2010 – 2011 to 2012-13 on the basis of Straight Line Method, if the rate of Depreciation charged is 10% p.a. Assume that books are closed on 31st March every year.
Solution:

Question 9.
Company whose accounting year is a financial year, purchased on 1st July, 2003 machinery costing Rs.30,000. It purchased further machinery on 1st January. 2004 costing Rs.20,000 and on let October, 2004 costing Rs.10,000. On 1st April, 2005 one-third of the machinery installed on 1st July. 2003 became obsolete, and was sold for Rs.3,000.
Show how machinery Account would appear in the books of the company. It being given that machinery was depreciated by fixed installment Method at 10% p.a. What would be the value of Machinery Account on 1st April, 2006?
Solution:

Question 10.

Solution:

Question 11.
A firm purchased a second-hand machine on 1st April, 2011 and paid Rs.1,40,000 for it spent on its overhauling and installation Rs.20,000. On 1st October, 2011, another costing Rs.80,000 was purchased. On 1st October, 2013 the machine purchased on 1st April 2011 was disposed off for Rs.1,04,000 and a new machine costing Rs.2,00,000 was Depreciation was provided 10% p.a. by the Straight Line Method. Give the Account and Depreciation Account for 3 years. Firm’s books are closed on 31st March.
Solution:

Question 12.

Solution:

Question 13.

Solution:

Question 14.
Following balances appear in the boobs of X Ltd. as on 1st April. 2001:
Machinery Account = Rs.5,00,000
Provision for Depreciation = Rs.2,25,000
The machinery is depreciated at 10% p.a. on the Fixed Installment Method. The accounting being April-March. On 1st October, 2001, a machinery which was purchased on, 1998 for Rs.1,00,000 was sold for Rs.42,000 and on the same date a new machine was purchased for Rs.2,00,000. Prepare Machinery Account and Provision for Depreciation A/c for the year ended 31st March. 2002.
Solution:

Question 15.

Solution:

Question 16.
The original cost of furniture amounted to Rs.4,000 and it is decided to write off 5% on the cost as Depreciation at the end of each year. Shows the Ledger Account as it will appear during the first four years. Show also how the same account will appear if it was write off 5% on the diminishing balance of the asset each year.
Solution:

Question 17.
A boiler purchased from abroad for Rs.10,000;shipping and forwarding charges Rs.2,000, Import duty Rs.7,000 and expenses of installation amounted to Rs.1,000.
Calculate the Depreciation for the first three years (separately for each year) @ 10% on diminishing Method.
Solution:

Question 18.
Babu purchased on 1st April, 2006, a machine fort Rs.6,000. On 1st October, 2006, he also purchased another machine for Rs.5,000. On 1st October, 2007, he sold the machine on 1st April, 2006 for Rs.4,000.
It was decided that Depreciation @10% p.a. was to be written off every year under diminishing Balance Method.
Assuming the accounts were closed on 31st March every year, show the machinery Account for the years ended 31st March,2007 and 2008.
Solution:

Question 19.
Kaushal Traders purchased second-hand machinery on 1st April, 2006 for Rs.23,000 and spent Rs.2,000 in its repair. It was decided to depreciate the machinery @20% every year on 31st March at Diminishing Balance Method.
Prepare the Machinery Account from years ended 31st March, 2007 to 2009 and show Profit or Loss as it was sold on 31st March 2009 for Rs.10,800.
Solution:

Question 20.
X bought a machine for Rs.25,000 on which he spent Rs.5,000 for carriage and freight, Rs.1,000 for brokerage of the middleman, Rs.3,500 for installation and Rs.500 for an iron pad. Machine is depreciated @ 10% every year on Written Down Value basis. After three years, the machine was sold to Y for Rs.30,500 and Rs.500 was paid as commission to the broker through whom the sale was effected. Find out the profit and loss on sale of machine.
Solution:

Question 21.
A company purchased machinery for Rs.50,000 on 1st October, 2008. Another machinery costing Rs.10,000 was purchased on 1st December, 2009. On 31st March, 2010, the machinery purchased in 2008 was sold at a loss of Rs.5,000. The company charges depreciation at the rate of 15% p.a. on Diminishing Balance Method. Accounts are closed 31st March every year. Prepare the Machinery Account for 3 years.
Solution:

Question 22.
On 1st April, 2005, machinery was purchased for Rs.20,000. On 1st October, 2006 another machine was purchased for Rs.10,000 and on 1st April, 2007, one more machine was purchased for Rs.5,000. The firm depreciates its machinery @ 10% on the Diminishing Balance Method. What is the amount of Depreciation for the years ended 31st March, 2006; 2007 and 2008?
What will be the balance in Machinery Account as on 31st March, 2008?
Solution:

Question 23.
A Machinery was purchased for Rs.1,80,000 on 1st July, 2011. Depreciation was charged annually @ 10% on Diminishing Balance Method. 1/4th of this Machinery was sold on 1st October, 2013 for 36,000. Prepare Machinery A/c from the year ended 31st March, 2012 to 2014, if the books are closed on 31st March every year.
Solution:

Question 24.
Astha Engineering Works purchased a machine on 1st July, 2011 for Rs.1, 80,000 and spent Rs.20,000 on its installation.
On 1st April, 2012, it purchased another machine for Rs.2,40,000. On 1st October, 2013, the machine purchased on 1st July, 2011 was sold for Rs.1,45,000. On 1st January, 2014 another machine was purchased for Rs.4,00,000.
Prepare the Machine Account for years ended 31st March, 2012 to 2014 after charging Depreciation @10% p.a. by Diminishing Balance Method.
Accounts are closed on 31st March every year.
Solution:

Question 25.
A firm purchased on 1st April 2008 certain machinery for Rs.5,82,000 and spent Rs.18,000 on its erection. On 1st October, 2008, additional machinery costing Rs.2,00,000 was purchased.
On 1st October, 2010, the machinery purchased on 1st April, 2008 was auctioned for Rs.2,86,000 and a new machinery for Rs.4,00,000 was purchased on the same date. Depreciation was provided annually on 31st March at the rate of 10% on the Written Down Value Method. Prepare the Machinery Account for the years ended 31st March, 2009 to 2011.
Solution:

Question 26.
M/s. P and Q purchased machinery for Rs.40,000 on 1st October, 2013. By Depreciation is provided @10% p.a. on the Diminishing Balance. On 31st January, 2015, one-fourth of the machinery was found unsuitable and disposed off for Rs.5,600. On the same date new machinery at a cost of Rs.15,000 was purchased. Write up the Machinery Account for the years ended 31st March, 2014 and 2015. The accounts are closed on 31st March.
Solution:

Question 27.
Shakti Cements purchased on 1st April, 2013 a plant for Rs.80,000. On 1st July, 2014 it purchased additional plant costing Rs.48,000. On 1st December, 2015 the plant purchased on 1st April, 2013 was sold for Rs.42,000 and on the same date a fresh plant was purchased for Rs.75,000. Depreciation is provided at 10% p.a. on the Diminishing Balance Method. Accounts are closed on 31st March each year. Show the Plant Account for 3 years (along with working notes).
Solution:

Question 28.
A company purchased on 1st July, 2011 machinery costing Rs.30,000. It further purchased machinery on 1st January, 2012 costing Rs.20,000 and on 1st October, 2012 costing Rs.10,000. On 1st April, 2013 one-third of the machinery installed on 1st July, 2011 became obsolete and was sold for Rs.3,000.
The company follows financial year as accounting year.
Show how the Machinery Account would appear in the books of company if depreciation is charged @ 10% p.a. on Written Down Value Method.
Solution:

Question 29.
On 1st October, 2010, Meenal Sharma bought a machine for Rs.25,000 on which he spent Rs.5,000 for carriage and freight; Rs.1,000 for brokerage of the middle-man, Rs.4,000 for installation. The machine is depreciated @ 10% p.a. on written down value basis. On 31st March, 2013 the machine was sold to Deepa for Rs.30,500 and Rs.500 was paid as commission to broker through whom the sales was affected. Find out the profit or loss on sale of machine if accounts are closed on 31st March, every year.
Solution:

Question 30.

Solution:

Question 31.

Solution:

Question 32.

Solution:

Question 33.
On 1st October, 2011, X Ltd. purchased a machinery for Rs.2,50,000. A part of machinery which was purchased for Rs.20,000 on 1st October, 2011 became obsolete and was disposed off on 1st January, 2014 (having a book value Rs.17,100 on 1st April, 2013) for Rs.2,000. Depreciation is charged @10% annually on written down value. Prepare machinery disposal account and also show your workings. The books being closed on 31st March of every year.
Solution:

Question 34.
Sharma and Co. whose books are closed on 31st March, purchased machinery for Rs.1, 50,000 on 1st April, 2005, Additional machinery was acquired for Rs.50,000 on 1st October, 2005. Certain machinery which was purchased for Rs.50,000 on 1st October, 2005 was sold for Rs.40,000 on 30th September, 2007.
Prepare the Machinery Account and Accumulated Depredation Account for all the yeas up to the year ended 31st March, 2008. Depreciation is charged @ 10% p.a. on Straight Line Method. Also, show the Machinery Disposal Account.
Solution:

Question 35.
On 1st April, 2010 Amit Kumar purchased five machines for Rs.60,000 each. Depreciation @ 10% p.a. on initial cost has been charged from the Profit and Loss Account and credited to Provision for Depreciation Account.
On 1st April, 2011 one machine was sold for Rs.50,000 and on 1st April, 2012 another machine was sold for Rs.50,000. An improved model costing Rs.1,00,000 was purchased on 1st October, 2011. Amit Kumar closes his books on 31st March each year.
You are required to show:
(i) Machinery Account; (ii) Machinery Disposal Account and (iii) Provision for Depreciation Account for the period of three accounting years ended 31st March, 2013
Solution:

TS Grewal Solutions for Class 11 Accountancy Chapter 12 – Trial Balance

Question 1.

Solution:

Question 2.

Solution:

Question 3.

Solution:

Question 4.

Solution:

Question 5.

Solution:

Question 6.
From the following ledger balances prepare Trial Balance:
Capital – Rs.20,800;Rent Outstanding – Rs.1,420;Amount due to Param – Rs.15,000;Drawing – Rs.2,800; Goodwill – Rs.12,000;Interest Received – Rs.2,000; Discount Received – Rs.1,580;Amount due from Deepan – Rs.26,000.
Solution:

Question 7.

Solution:

Question 8.

Solution:

Question 9.

Solution:

Question 10.
From the following balances extracted from the Ledger of Sri Narugopal, prepare Balance as on 31st March, 2015:
Capital Rs.75,00,000;Building Rs.7,50,000; Plant Rs.15,00,000;Stock on 1st April 2014, Rs.12,50,000;Cash in Hand Rs.2,500; Cash at Bank Rs.5,75,000;Commission Received Rs.1,75,000;Rates, Taxes and Insurance Rs.30,000;Discount (Dr.) Rs.55,000; Discount (Cr.) 45,000; Purchases Return Rs.50,000;Sundry Creditors Rs.2,50,000;Interest Received Rs.30,000;Sales Rs.62,50,000; Repairing Charges Rs.1,25,000; Book Debts Rs.15,00,000;General Expenses Rs.3,00,000;Rent Rs.62,500; Wages Rs.5,00,000;Purchases Rs.48,00,000; Furniture Rs.1,20,000;Carriage and Freight Rs.75,000;Sales Return Rs.90,000; Delivery Van Rs.5,00,000;Loan Advanced Rs.6,00,000; Travelling Expenses Rs.50,000; Office Salaries Rs.6,25000, Drawings Rs.6,00,000
Solution:

Question 11.

Solution:

TS Grewal Solutions for Class 11 Accountancy Chapter 11 – Bank Reconciliation Statement

Question 1.

Solution:

Question 2.

Solution:

Question 3.
On 31st March, 2015, Cash Book showed a balance of Rs.15,000 as cash at bank, but the Bank Pass Book of the same date showed that cheques for Rs.1,850, Rs.1,000 and Rs.1,750 respectively had not been presented for payment; also cheques amounting to Rs.4,100 paid into the account had not yet been cleared. Find by means of a Bank Reconciliation Statement the balance shown in the Pass Book.
Solution:

Question 4.
Mr. Ram Behari has his account at Punjab National Bank, Delhi. According to his Cash Book, his bank balance on 31st March, 2015 was Rs.72,950. He sent cheques for Rs.90,075 to his bank for collection but cheques amounted toRs. 43,769 were not collected by that date. Out of the cheques issued by him in payment of his debts, cheques for Rs.29,344 were not presented for payment. Prepare Bank Reconciliation Statement and determine the balance as shown by his Pass Book.
Solution:

Question 5.
On 31st March, 2015, Cash Book of Mahesh showed debit bank balance of Rs.75,000. When compared with the Bank Statement, following facts were discovered. 30th March, two cheques of Rs.5,000 and Rs.7,000 were deposited in the bank but were not realised till date. On 28th March, three cheques of Rs.6,000, Rs.8,000 and Rs.12,000 were issued but none of these were presented to the bank for payment. On 31st March, bank credited Rs.1,250 as interest but this was not recorded in the Cash Book. Similarly, bank had charged Rs.150 as bank charges but this was not recorded in the Cash Book Prepare Bank Reconciliation Statement on 31st March, 2015.
Solution:

Question 6.
Cash Book of a merchant showed bank balance of Rs.23,000 on 31st March, 2015. On go’ through the Cash Book, it was found that two cheques for Rs.5,000 and Rs.7,000 deposited the month of March were not credited in the Pass Book till 2nd April, 2015 and three cheques for Rs.6,000, Rs.8,000 and Rs.12,000 issued on 28th March, were not presented payment till 3rd April, 2015. In addition to this, bank had credited merchant for Rs.125 interest and had debited him for Rs.100 as bank charges for which entries in Cash Bo were not recorded. Prepare Bank Reconciliation Statement as on 31st March, 2015.
Solution:

Question 7.
On 30th June, 2015, bank column of the Cash Book showed balance of Rs.12,000 but the Pass Book showed a different balance due to the following reasons:
i. Cheques paid into the bank Rs.8,000 but out of these only cheques of 6,500 credited by bankers.
ii. The receipt column of the Cash Book under cast by Rs.200.
iii. On 29th June, a customer deposited Rs.3000 directly in the Bank Account but it was entered in the Pass Book only.
iv. Cheques of Rs.9,200 were issued of which Rs.2,200 were presented for payment on 15th July.
v. Pass Book shows a credit of Rs.330 as interest and a debit of Rs.60 as bank charges. Prepare Bank Reconciliation Statement as on 30th June, 2015.
Solution:

Question 8.

Solution:

Question 9.
From the following particulars, prepare Bank Reconciliation Statement as on 31st December, 2008:
i. Debit balance as per Cash Book Rs.10,000.
ii. A cheque for Rs.500 issued in favour of Karan has not been presented for payment.
iii. A bill for Rs.700 retired by bank under a rebate of Rs.20, the full amount of the bill was credited in the Cash Book.
iv. A cheque for Rs.295 deposited in the bank has been dishonoured.
v. A sum of Rs.800 deposited in the bank has been credited as Rs.80 in the Pass Book.
vi. Payment side of the Cash Book has been under cast by Rs.200.
vii. A bill receivable for Rs.1,000 (discounted with the bank in November 2008) dishonoured on 31st December, 2008.
Solution:

Question 10.
On examining the Bank Statement of Green Ltd., it is found that the balance shown on 31st March, 2015, differs from the bank balance of Rs.23,650 shown by the Cash Book on that date. From a detailed comparison of the entries it is found that:
i. Rs.2,860 is entered in the Cash Book as paid into the bank on 31st March, 2015 but not credited by the ba until the following day.
ii. Bank charges of Rs.70 on 31st March, 2015 are not entered in the Cash Book.
iii. A bill for Rs.5,500 discounted with the bank is entered in the Cash Book without recording the discount charges of Rs.270.
iv. Cheques totaling Rs.16,720 were issued by the company and duly recorded in the Cash Book before 31st March, 2015 but had not been presented at the Bank for payment until after that date.
v. On 25th March, 2015, a debtor paid Rs.1,000 into the Company’s Bank in settlement of his account but no entry was made in the Cash Book of the company in respect of this.
vi. No entry has been made in the Cash Book to record the dishonor on 15th March, 2015, of a cheque for Rs.550 received from Ram Babu. Prepare a Bank Reconciliation Statement as on 31st March, 2015.
Solution:

Question 11.
Prepare Bank Reconciliation Statement from the following particulars on 31st July, 2015:
i. Balance as per the Pass Book Rs.50,000.
ii. Three cheques for Rs.6,000, Rs.3,937 and Rs.1,525 issued in July, 2015 were presented for payment to the bank in August, 2015.
iii. Two cheques of Rs.500 and Rs.650 sent to the bank for collection were not entered in the Pass Book by 31st July, 2015.
iv. The bank charged Rs.460 for its commission and allowed interest of Rs. 100 which were not mentioned in the Bank Column of the Cash Book.
Solution:

Question 12.

Solution:

Question 13.
Draw Bank Reconciliation Statement showing adjustment between your cash book and pass book as on 31st March, 2011:
i. On 31st March, 2011 your pass book showed a balance of Rs.6,000 to your credit.
ii. Before that date, you had issued cheques amounting to Rs.1,500 of which cheques of Rs.900 have been presented for payment.
iii. A cheque of Rs.800 paid by you into the bank on 29th March, 2011 is not yet credited pass book.
iv. There was a credit of Rs.85 for interest on Current Account in the pass book.
v. On 31st March, 2011 a cheque for Rs.510 received by you and was paid into bank the same was omitted to be entered in cash book.
(MSE Chandigarh 2012)
Solution:

Question 14.

Solution:

Question 15.
From the following particulars, prepare a Bank Reconciliation Statement of Govil as on 31st March, 2015: Balance as per Pass Book on 31st March, 2015 is Rs.8,500. Rs.5,100 were issued during the month of March but out of these, cheques for Rs.1,200 were presented in the month of April, 2015 and one cheque for Rs.200 was not presented for payment. Cheque and cash amounting to Rs.4,800 were deposited in the bank during March but credit was given for Rs.3,800 only. A customer had deposited Rs.800 into the bank directly. The bank has credited Covil for Rs.200 as interest and has debited him for Rs.90 as bank charges, for which there are no corresponding entries in the Cash Book.
Solution:

Question 16.
Bank Statement of a customer shows bank balance of 62,000 on 31st March, 2015. On comparing it with the Cash Book the following discrepancies were noted:
i. Cheques were paid into the bank in March but were credited in April: P-Rs. 3,500; Q-Rs.2,500; R-Rs.2,000.
ii. Cheques issued in March were presented in April: X-Rs. 4,000; Q-Rs. 4,500.
iii. Cheque for Rs.1,000 received from a customer entered in the Cash Book but was not banked.
iv. Pass Book shows a debit of Rs.1,000 for bank charges and credit of Rs.2,000 as interest.
v. Interest on investment Rs.2,500 collected by the bank appeared in the Pass Book. Prepare Bank Reconciliation Statement showing the balance as per Cash Book on 31st March, 2015.
(MSE Chandigarh 2003, Modified)
Solution:

Question 17.
On 1st January, 2015, Naresh had an overdraft of Rs. 40,000 as shown by his Cash Book in the bank column. Cheques amounting to Rs.10,000 had been deposited by him but were not collected by the bank by 1st January, 2015. He issued cheques of Rs.7,000 which were not presented to the bank for payment up to that day. There was also a debit in his Pass Book of Rs.600 for interest and Rs. 500 for bank charges. Prepare a Bank Reconciliation Statement.
Solution:

Question 18.
On 31st March, 2015, Cash Book of B. Babu showed an overdraft of Rs.18,000 with the Bank of India. This balance did not agree with the balance as shown by the Bank Pass Book. You find that Babu had paid into the bank on 26th March, four cheques for Rs.10,000, Rs.12,000, Rs.6,000 and Rs.8,000. Out of these the cheque for Rs.6,000 was credited by the bank in April, 2015. Babu had issued on 24th March three cheques for Rs.15,000, Rs.12,000 and Rs.7,000. The first two cheques were presented to the bank for payment in March, 2015 and the third cheque in April, 2015.
You also find that on 31st March, 2015 the bank had debited Babu’s Account with Rs.500 for interest and Rs.20 as charges, but Babu had not recorded these amounts in his books. Prepare Bank Reconciliation Statement as on 31st March, 2015 and ascertain the balance as per Bank Pass Book.
Solution:

Question 19.
On 31st March, 2015, Cash Book of a merchant showed bank overdraft of Rs.1,72,985. On comparing the Cash Book with Bank Statement, following discrepancies were noted:
i. Cheques issued for Rs.60,000 were not presented in the bank till 7th April, 2015.
ii. Cheques amounting to Rs.75,000 were deposited in the bank but were not collected.
iii. A cheque of Rs.15,000 received from Mahesh Chand and deposited in the bank was dishonored but the non-payment advice was not received from the bank till 1st April, 2015.
iv. Rs.1, 50,000 being the proceeds of a bill receivable collected appeared in the Pass Book but not in the Cash Book.
v. Bank charges Rs.1,500 and interest on overdraft Rs.8,500 appeared in the Pass Book but not in the Cash Book.
Prepare Bank Reconciliation Statement and show what balance the Bank Pass Book would indicate on 31st March, 2015.
Solution:

Question 20.
Prepare Bank Reconciliation Statement from the following: On 31st March, 2015, a merchant’s Cash Book showed a credit bank balance of 10,500 but due to the following reasons the Pass Book showed a difference:
i. A cheque of Rs.540 issued to Mohan has not been presented for payment.
ii. A post-dated cheque for Rs.100 has been debited in the bank column of the Cash Book but under no circumstances was it possible to present it.
iii. Four cheques of Rs.1,200 sent to the bank have not been collected so far. A cheque Rs.400 deposited in the bank has been dishonoured.
iv. As per instructions, the bank paid Rs.50 as Fire Insurance premium but the entry has not been made in the Cash Book.
v. There was a debit in the Pass Book of Rs.15 in respect of bank charges and a credit of Rs.25 for interest on Current Account but no record exists in the Cash Book.
Solution:

Question 21.
Tiwari and Sons find that the bank balance shown by their Cash Book on 31st March, 2015 is Rs.40,500 (credit) but the Pass Book shows a difference due to the following reasons:
i. A cheque for Rs.5,000 drawn in favour Manohar has not yet been presented for payment.
ii. A post-dated cheque for Rs.900 has been debited in the bank column of the Cash Book.
iii. Cheques totaling Rs.10,200 deposited with the bank have not yet been collected and a cheque for Rs.4,000 has been dishonoured.
iv. A bill for 10,000 was retired by the bank under a rebate of 150 but the full amount of the bill was credited in the bank column of the Cash Book.
Prepare a Bank Reconciliation Statement and find out the balance as per the Pass Book.
(KVS 2005, Modified)
Solution:

Question 22.
From the following particulars of a trader, prepare a Bank Reconciliation Statement 31st March, 2015:
i. Bank overdraft as per Cash Book Rs.52,100.
ii. During the month, the total amount of cheques for Rs.94,400 were deposited into the bank but of these, one cheque for Rs.11,160 has been entered into the Pass Book on 5th April
iii. During the month, cheques for Rs.89,580 were drawn in favour of creditors. Of them, one creditor for Rs.38,580 encashed his cheque on 7th April whereas another for Rs.4,320 have not yet been encashed.
iv. As per instructions the bank on 28th March paid out 10,500 to a creditor but by mistake, the same has not been entered in the Cash Book.
v. According to agreement, on 25th March, a debtor deposited directly into the Rs.9,000 but the same has not been recorded in the Cash Book.
vi. In the month of March, the bank without any intimation, debited his account for Rs.120 as bank charges and credited the same for Rs.180 as interest.
Solution:

Question 23.
Prepare Bank Reconciliation Statement from the following particulars as on 31st March, 2015, when Pass Book shows a debit balance of Rs.2,500:
i. Cheque issued for Rs.5,000 but up to 31st March, 2015 only Rs.3,000 could be cleared.
ii. Cheques issued for Rs.1,000 but omitted to be recorded in the Cash Book.
iii. Cheques deposited for Rs.5,500 but cheques for Rs.500 were collected on 4th April, 2015.
iv. A discounted Bill of Exchange dishonoured Rs.1,000.
v. A Rs.500 debited in Cash Book but omitted to be banked.
vi. Interest allowed by bank Rs.200 but no entry was passed in the Cash Book.
(Delhi 2002, Adapted)
Solution:

Question 24.

Solution:

Question 25.
On 31st March, 2015, Bank Pass Book of Naresh and Co. showed an overdraft of Rs.10,700. From the following particulars, prepare Bank Reconciliation Statement:
i. Cheques issued before 31st March, 2015 but presented for payment after that date amounted to Rs.900.
ii. Cheques paid into the bank but not collected and credited until 31st March, 2015 amounted to Rs.2,200.
iii. Interest on overdraft amounting to Rs.1,200 did not appear in the Cash Book.
iv. Rs.5,000 being interest on investments collected by the bank and credited in the Pass Book were not shown in the Cash Book.
v. Bank charges of Rs.50 were not entered in the Cash Book.
vi. Rs.800 in respect of dishonoured cheque were entered in the Pass Book but not in the Cash Book.
Solution:

Question 26.
On 31st March, 2015, Pass Book of Shri Bhama Shah shows debit balance of Rs.10,000. From the following particulars, prepare Bank Reconciliation Statement:
i. Cheques amounting to Rs.8,000 drawn on 25th March of which cheques of Rs.5,000 cashed in April, 2015.
ii. Cheques paid into bank for collection of Rs.5,000 but cheques of Rs.2,200 could only be collected in March, 2015.
iii. Bank charges Rs.25 and dividend of Rs.350 on investment collected by bank could not be shown in the Cash Book.
iv. A cheque of Rs.600 debited in the Cash Book omitted to be banked.
(Delhi 2005, Modified)
Solution:

Question 27.
On checking the Bank Pass Book it was found that it showed an overdraft of Rs. 5,220 as on 31st March, 2015, while as per Ledger it was different. The following differences were noted:
i. Cheques deposited but not yet credited by the bank Rs.6,000.
ii. Cheques dishonoured and debited by the bank but not given effect to it in the Ledger Rs.800.
iii. Bank charges debited by the bank but Debit Memo not received from the bank Rs.50.
iv. Interest on overdraft excess credited in the Ledger Rs.200.
v. Wrongly credited by the bank to account, deposit of some other party Rs.900.
vi. Cheques issued but not presented for payment Rs.400.
(Delhi 2001, Modified)
Solution:

Question 28.
Prepare Bank Reconciliation Statement from the following particulars as on 31st 2015 when Pass Book shows a debit balance of Rs.2,500:
i. Cheque issued for Rs.5,000 but up to 31st March, 2015 only 3,000 could be cleared.
ii. Cheques deposited for Rs.5,500 but cheques of Rs.500 were collected on 10th April, 2015.
iii. A discounted bill of exchange dishonoured Rs.2,000.
iv. A cheque of Rs.300 debited in Cash Book but omitted to be banked.
v. Interest allowed by bank Rs.400 but no entry was passed in the Cash Book.
(KVS 2004, Modified)
Solution:

Question 29.
From the following particulars, you are required to ascertain the bank balance as appear in the Cash Book of Ramesh as on 31st October, 2014:
i. Bank Pass Book showed an overdraft of Rs.16,500 on 31st October.
ii. Interest of Rs.1,250 on overdraft up to 31st October, 2014 has been debited in the Pass Book but it has not been entered in the Cash Book.
iii. Bank charges debited in the Bank Pass Book amounted to Rs.35.
iv. Cheques issued prior to 31st October, 2014 but not presented till that date, amounted, to Rs.11,500.
v. Cheques paid into bank before 31st October, but not collected and credited up to date, were for Rs.2,500.
vi. Interest on investment collected by the bankers and credited in the Bank Pass amounted to Rs.1,800.
(KVS 2003, Modified)
Solution:

Question 30.

Solution:

Question 31.
Prepare Bank Reconciliation Statement as on 31st March, 2015 from the following particulars :
i. R’s overdraft as per Pass Book Rs.12,000 as on 31st March.
ii. On 30th March, cheques had been issued for Rs.70,000 of which cheques amounting Rs.3,000 only had been encashed up to 31st March.
iii. Cheques amounting to Rs.3,500 had been paid into the bank for collection but of these only 500 had been credited in the Pass Book.
iv. Bank has charged Rs.500 as interest on overdraft and the intimation of which has been received on 2nd April, 2015.
v. Bank Pass Book shows credit for Rs.1,000 representing Rs.400 paid by debtor of R direct into the bank and Rs.600 collected directly by the bank in respect of interest on R’s investment. R had no knowledge of these items.
vi. A cheque for Rs.200 has been debited in the bank column of Cash Book by R but it was not sent to the bank at all.
Solution:

Question 32.
Prepare Bank Reconciliation Statement from the following particulars and show balance as per Cash Book:
i. Balance as per Pass Book on 31st March, 2015 overdrawn Rs.10,000.
ii. Cheques drawn in the last week of March, 2015 but not cleared till 3rd April, 2015 Rs.20,000.
iii. Interest on bank overdraft not entered in the Cash Book Rs.1,500.
iv. Cheques of Rs.20,000 deposited in the bank in March, 2015 but not collected and credited till 3rd April, 2015.
v. Rs.100 insurance premium paid by the bank under a standing order has not been entered in the Cash Book.
Solution:

Question 33.
Bank Pass Book of Mr. X showed an overdraft of Rs.33,575 on 31st March, 2015. On going through the Pass Book the accountant found the following:
i. A cheque of Rs.1,080 credited in the Pass Book on 28th March, being dishonoured is debited again in the Pass Book on 1st April, 2015. There was no entry in the Cash Book about the dishonour of the cheque until 15th April.
ii. Bankers had credited his account with Rs.2,800 for interest collected by them on his behalf but the same had not been entered in his Cash Book.
iii. Out of Rs.20,500 paid in by Mr. X in cash and by cheques on 31st March, cheques amounting to Rs.7,500 were collected on 7th April.
iv. Out of cheques amounting to Rs.7,800 drawn by him on 27th March, a cheque for Rs.2,500 was encashed on 3rd April.
Prepare Bank Reconciliation Statement on 31st March, 2015.
Solution:

Question 34.

Solution:

Question 35.
From the following information, prepare Bank Reconciliation Statement as on 31st March, 2015:
i. Debit balance shown by Pass Book Rs.17,800.
ii. Cheques of Rs.21,600 were issued in the last week of March but only cheques of Rs.14,800 were presented for payment.
iii. Cheques of Rs.10,750 were presented to the bank. Out of them, a Rs.4,200 was credited in the first week of April, 2015.
iv. A cheque of Rs.1,200 was debited in the cash book but was not presented in the bank.
v. Insurance premium paid by bank Rs.1,450.
vi. A bill of exchange of Rs.6,200 which discounted with the same was dishonoured but no entry was made in the cash book.
vii. Bank charges, charged by the bank Rs.350.
(MSE Chandigarh 2011, Modified)
Solution:

Question 36.

Solution:

Question 37.
From the following particulars, ascertain the bank balance as per Pass Book 31st March, 2015 (a) without correcting the Cash Book balance and (b) after correcting the Cash Book balance:
i. The bank balance as per Cash Book on 31st March, 2015 Rs. 40,000.
ii. Cheques issued but not encashed up to 31st March, 2015 amounted to Rs.10,000.
iii. Cheques paid into the bank, but not cleared up to 31st March, 2015 amounted to Rs.15,000.
iv. Interest on investments collected by the bank but not entered in the Cash Book Rs.500.
v. Cheques deposited in the bank but not entered in the Cash Book Rs.12,500.
vi. Bank charges debited in the Pass Book but not entered in the Cash Book Rs.100.
Solution:

Question 38.

Solution:

Question 39.


Solution:

TS Grewal Solutions for Class 11 Accountancy Chapter 10 – Special Purpose Books II – Other Books

Question 1.

Solution:

Question 2.

Solution:

Question 3.

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Question 4.

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Question 5.

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Question 6.

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Question 7.

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Question 8.

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Question 9.

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Question 10.

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Question 11.

Solution:

Question 12.

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Question 13.

Solution:

Question 14.

Solution:

Question 15.

Solution:

Question 16.

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Question 17.
Following balance appeared in the Balance Sheet of Ram Stores on 31st March, 2013.
Pass the necessary Journal entries for opening the books for the year 2013-14:
Debit Balances: Furniture Rs.4,000; Machinery Rs.20,000;Debtors Rs.5,000; Bills Receivable Rs.11,800; Cash Rs.14,200.
Credit Balances: Capital Rs.30,000; Bills Payable Rs.15,000;Creditors Rs.10,000.
Solution:

Question 18.
Enter the following transactions in Journal Proper of Geeta (Proprietor):
i. Rent not paid (Rent outstanding) Rs.1,000.
ii. Goods withdrawn by proprietor for personal use Rs.5,000.
iii. Purchase of machine on credit for Rs.10,000 from Ram Sons.
iv. Depreciate motor car with book value Rs.1,00,000 @ 10% p.a. for one year.
Solution:

Question 19.
From the following information available on 31st March, 2013, pass the necessary Adjustment Entries in the Journal for the year ending on that date:
Interest accrued Rs.2,500.
Wages for March, 2013 outstanding Rs.10,000.
Insurance prepaid Rs.1,500.
Rent for April, 2013 received in advance Rs.3,000.
Depreciation on furniture Rs.5,000.
Commission due to Manager 6% on net profit after charging such commission. The profit before charging such commission was Rs.1,06,000.
Interest due on loan but not paid. Loan of Rs.1,50,000 was taken at 9% p.a.; 9 months before end of the year.
Solution:

Question 20.

Solution:

Question 21.

Solution:

Question 22.

Solution:

Question 23.

Solution:

Question 24.

Solution:

Question 25.

Solution:

Question 26.

Solution:

Question 27.

Solution:

Question 28.

Solution:

Question 29.
Following were the balances of accounts appearing in the books of Ram Mohan, Iron and Steel Merchant, on 31st March, 2013:
Debit Balances: Stock in Warehouse Rs.21,000;Fixtures and Fittings Rs.6,300;Motor Lorries Rs.35,000; Harish Chander Rs.9,600, Rs.3,200;Rs.8,900;Cash in Hand Rs.2,500; Cash at bank Rs.17,300.
Credit Balances: Satish, Rs.17,900; Gyan Chand, Rs.9,900.
Enter the above balances in the Journal and post them to the Cash Book and Ledger Accounts. Also enter the following transactions in the proper subsidiary books and post them to the Ledger. Cheques received are paid into the bank on the same day. Balance the accounts and take out a Trial Balance.

Solution:

Question 30.

Solution:

TS Grewal Solutions for Class 11 Accountancy Chapter 9 – Special Purpose Books I – Cash Book

Question 1.

Solution:

Question 2.

Solution:

Question 3.

Solution:

Question 4.

Solution:

Question 5.

Solution:

Question 6.
Record the following transactions in a suitable Cash Book and find out the cash and bank balances:
i. Commenced business with cash Rs.50,000.
ii. Deposited in bank Rs.40,000.
iii. Received cash from Mohan Rs.950.
iv. Bought goods for cash Rs.10,000.
v. Bought goods by cheque Rs.15,000.
vi. Sold goods by cheque for Rs.20,000 and deposited in bank on the same day.
vii. Paid to Arun by cheque Rs.1,900.
viii. Drew from bank for office use Rs.1,000.
Solution:

Question 7.

Solution:

Question 8.

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Question 9.

Solution:

Question 10.

Solution:

Question 11.

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Question 12.

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Question 13.

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Question 14.

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Question 15.

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Question 16.

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Question 17.

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Question 18.

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Question 19.

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Question 20.

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Question 21.

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Question 22.

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Question 23.

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Question 24.

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Question 25.

Solution:

Question 26.

Solution:

Question 27.

Solution:

Question 28.

Solution:

Question 29.

Solution:

Question 30.

Solution:

Question 31.

Solution:

TS Grewal Solutions for Class 11 Accountancy Chapter 8 – Journal and Ledger

Question 1.

Solution:

Question 2.

Solution:

Question 3.

Solution:

Question 4.

Solution:

Question 5.

Solution:

Question 6.

Solution:

Question 7.

Solution:

Question 8.

Solution:

Question 9.

Solution:

Question 10.
Journalise the following transactions :
i. Paid Rs.2,000 in cash as wages on installation of a machine.
ii. Sold goods to Manohar, list price Rs.4,000, Trade Discount 10% and cash Discount 5% he paid the amount on the same day and availed the cash discount.
iii. Received as order from Shyam for supply of goods of the list price Rs.1,00,000 with an advance of 10% of list price.
iv. Received commission Rs.5,000 half of which is in advance.
v. Rajanikant is declared insolvent. A final compensation of 25 paise in the rupee is received from his estate out of Rs.5,000.
vi. Cash embezzled by an employee Rs.1,000.
Solution:

Question 11.
Journalise the following :
i. Isha invested Rs.2,00,000 in business.
ii. Opened a current account in bank Rs.1,20,000.
iii. Purchased goods for Rs.60,000 and paid Rs.2,000 for arrange.
iv. Purchased goods for Rs.1,00,000 from Rashmi.
Solution:

Question 12.
Journalise the following transactions in the books of Akash :
i. Goods given as charity Rs.5,000.
ii. Salary for the month is outstanding Rs.2,000.
iii. Goods sold for a list price of Rs.50,000; trade discount allowed 10%, cash discount allowed 10%.
Solution:

Question 13.
Give journal entries for the following transactions giving in each case the nature of account (whether asset, liability, capital, expenses or revenue) and the rule applicable:
i. Ajit started business by investing cash Rs.50,00,000. He bought goods old Rs.4,00,000 and furniture of Rs.5,00,000.
ii. Purchased building for Rs.10,00,000.
iii. Purchased goods for cash Rs.3,00,000.
iv. Purchased goods on credit from Chandler Rs.25,000.
v. Paid cartage Rs.2,000.
vi. Sold goods for cash Rs.2,55,000.
vii. Sold goods for cash to Rs.24,000.
viii. Sold goods to Mahendra on credit Rs.46,500.
ix. Cash withdrawn by Ajit for personal use Rs.5,000.
Solution:

Question 14.
Journalise the following transactions :
i. Deposited cash into bank Rs.80,000.
ii. Paid salary Rs.46,000.
iii. Withdrew from the bank Rs.50,000 for office use.
iv. Withdrew from the bank Rs.30, 000 for private use.
v. Charged interest on capital Rs.1,25,000.
vi. Mahendra became insolvent. Only Rs.30,000 could be realised from him.
Solution:

Question 15.
Journalise the following transactions:
i. Tarun introduced capital by cheque Rs.25,000.
ii. Purchased goods for Rs.20,000 and availed discount Rs.1,000.
iii. Sold goods to Puneet for Rs.5,000.
iv. Puneet paid cash and availed discount Rs.100
Solution:

Question 16.
Journalise the following transactions:
Gaurav commenced business by introducing capital in cash Rs.21,000 and by cheque Rs.50,000.
Gaurav purchased goods from Saurab for Rs.30,000 and Saurab allowed him Trade Discount of Rs.3,000.
He sold goods to Ramesh against cash Rs.20,000 and allowed him Cash Discount of Rs.400.
Paid salary to Suresh Rs.3,000.
Solution:

Question 17.
Journalise the following transactions:
Rajan commenced business by introducing capital in cash Rs.11,000 and by cheque Rs.1,50,000.
Purchased car for Rs.3,00,000 by taking loan of Rs.2,50.000 from bank.
Purchased goods for Rs.1,00,000 and availed Trade Discount of Rs.10,000.
Paid Rs.5,000 to bank as installment, Rs.2,000 towards principal and Rs.3,000 as interest.
Solution:

Question 18.
Journalise the following transactions in the books of Ajay:
Ajay returned goods purchased from Manoj Rs.22,000. He had availed Trade Discount of Rs.2,200 on the goods returned.
Ajay received Rs.5,000 from Abhay which he had earlier written off as Bad Debts.
A fire occurred in the godown of Ajay and he lost goods worth Rs.10,000. The stock was not insured.
Ajay took goods worth Rs.2,500 (Cost) for his personal use.
Solution:

Question 19.
Journalise the following transactions in our books:
i. Amount due from Sushil Rs.2,000 is not recoverable.
ii. Goods purchased for Rs.1,000 given as charity.
iii. Cheque of Jatinder of Rs.10,000 deposited, returned unpaid.
iv. Bank charges charged by bank Rs.250.
Solution:

Question 20.

Solution:

Question 21.
Journalise the following entries:
Goods worth Rs.500 given as charity.
Received Rs.975 from Harikrishna in full settlement of his account for Rs.1,000.
Received a first and final dividend of 60 paise in a rupee from the Official Receive Rajan, who owed us Rs.1,000.
Charged depreciation on plant Rs.1,000.
Solution:

Question 22.
Journalise the following transactions with narration:
i. Paid Income Tax Rs.3,000.
ii. Interest on Capital Rs.300.
iii. Goods worth Rs.500 given as charity.
Solution:

Question 23.
Journalise the following:
i. Goods worth Rs.500 were used by the proprietor for domestic purposes.
ii. Goods uninsured worth Rs.3,000 were destroyed by fire.
iii. Paid Rs.250 as wages on installation of a new machine.
iv. Supplied goods costing Rs.600 to Mohan issued at 10% above cost less 5% Trade Discount.
Solution:

Question 24.
Journalise the following transactions:
Goods destroyed by fire Rs.500.
Paid Rs.2,500 in cash as wages on installation of a machinery.
Issued a cheque in favour of M/s. Parmatma Singh and Sons on account of purchase goods worth Rs.7,500.
Goods sold costingRs.6,000 to M/s Kalu Sons at an invoice price 25% above cost less 5% Trade Discount.
Solution:

Question 25.
Prepare the journal from the transactions given below:
i. Rent outstanding Rs.5,000.
ii. Received interest on loan from the debtor Rs.25,000.
iii. Provided interest on capital (Rs.50,000) at 6% for six months.
iv. Received Rs.780 from Surinder in full settlement of debt to his account for Rs.800.
Solution:

Question 26.
At the end of an accounting year, a trader finds that no entry has been passed in the books of account in respect of the following transactions:

Solution:

Question 27.
Journalise the following transactions in the books of Harpreet Bros:
i. Goods worth Rs.50,000 and Cash Rs.20,000 were stolen by an employee.
ii. Goods costingRs.10,000 were returned to Ram Bros. as the goods were hazardous for the health of the consumers.
Also give value affected in each of the above case.
Solution:

Question 28.
Journalise the following:
i. Received a cheque from J. Peterson Rs.5,450. Allowed him discount of Rs.150.
ii. Returned goods to Sudershan of the value of Rs.350.
iii. Issued a cheque in flavor of M/s Karanvir Timber Company on account of the purchase of timber worth Rs.7,500.
iv. Paid Rs.250 in cash as wages on installation of a machine.
Solution:

Question 29.
Journalise the following transactions in the books of M/s. Hari Ram:
i. Rahul who owned Rs.5,000 was declared insolvent and 60 paise in a rupee are received as final compensation.
ii. Out of insurance paid this year, Rs.3,000 is related to next year.
iii. Provide depreciation @10% on furniture costing Rs.10,000 for 9 months.
Solution:

Question 30.
Journalise the following transactions:
i. Paid customs duty Rs.11,000 in cash on import of a new machinery.
ii. Goods sold costing Rs.10,000 to M/s Abbas and sons at an invoice price 10% above cost less 10% trade discount.
Solution:

Question 31.
Journalise the following transactions in the books of Gaurav:
i. Received Rs.9,500 from Sohan in full settlement of his account for Rs.10,000.
ii. Received Rs.9,500 from Shyam on his account for Rs.10,000.
iii. Paid Rs.4,800 to Mohan in full settlement of his account for Rs.5,000.
iv. Paid Rs.4,800 to Ashok on his account for Rs.5,000.
Solution:

Question 32.
Journalise the following transactions in the books of Manoj Store:
i. Purchased goods from Ramesh Rs.20,000 less trade discount at 20% plus VAT @10%
ii. Sold goods costing Rs.7,000 to Krishna for Rs.9,000 plus VAT @10%
iii. Sold goods for Rs.10,000 and charged VAT @10% against cheque.
iv. VAT was deposited into government account on due date.
Solution:

Question 33.
Journalise the following transactions :
i. Paid Rs.2,500 in cash as wages on installation of a machine.
ii. Sold goods to kitty at a list price of Rs.20,000. Sales subject to 10% trade discount and 5% cash discount if payment is made immediately. Kitty availed cash discount.
iii. Supplied goods costing Rs.60,000 to Shyam. Issued invoice at 10% above cost less 5% trade discount.
Solution:

Question 34.

Solution:

Question 35.

Solution:

Question 36.

Solution:

Question 37.

Solution:

Question 38.

Solution:

Question 39.

Solution:

Question 40.

Solution:

Question 41.

Solution:

Question 42.

Solution:

Origin of Transactions – Source Documents and Preparation of Voucher

TS Grewal Solutions for Class 11 Accountancy Chapter 6 – Accounting Procedures – Rules of Debit and Credit

Question 1.
Following accounts are being maintained in the books of Shri Ashok. Classify them under Assets, Liabilities, Expenses and Revenue Accounts.
(i) Land; (ii) Investments; (iii) Building; (iv) Interest Received; (v) Salary;(vi) Bank Overdraft; (vii) Debtors; (viii) Creditors; (ix) Bad Debts; (x) Capital; (xi) Depreciation; (xii) Motor Vehicles; (xiii) Freight; (xiv) Wages; (xv) Goodwill; (xvi) Repairs.
Solution:

Question 2.
Classify the following into assets, liabilities, capital, revenue, and expenses:
(i) Plant and Machinery; (ii) Bank Loan; (iii) Sales; (iv) Rent; (v) Discount Received; (vi) Carriage Inwards; (vii) Carriage Outwards; (viii) Purchases;(ix) Bills Payable; (x) Wages; (xi) Advance Income; (xii) Accrued Income;(xiii) Goodwill; (xiv) Furniture and Fixtures; (xv) Outstanding Expenses;(xvi) Capital.
Solution:

Question 3.
On which side will be the increase in the following accounts recorded? Also, mention the nature of the account:
i. Furniture A/c
ii. Mohan (Proprietor)
iii. Salary A/c
iv. Purchases A/c
v. Sales A/c
vi. Interest Paid A/c
vii. Sohan (Creditor)
viii. Ram (Debtor)
Solution:

Question 4.
On which side will be the decrease in the following accounts recorded? Also, mention the nature of the account:
i. Cash
ii. Bank Overdraft
iii. Outstanding Salary paid
iv. Outstanding Rent
v. Prepaid Insurance
vi. Mohan, Proprietor of the business
Solution:

Question 5.
Following is the list of various accounts. Find out which are Assets, Liabilities, Capital, Revenue or Expense Accounts:
i. Machinery
ii. Bank
iii. Sales
iv. Purchases
v. Unsold Stock
vi. Bank Overdraft
vii. Ram (Customer)
viii. Cash
ix. Interest Received
x. Mohan (Proprietor)
Solution:

Question 6.
You are given a number of accounts below. State which of them will show a debit balance and which a credit balance:
i. Carriage
ii. Machinery
iii. Sales
iv. Cash
v. Ram (Customer)
vi. Sales Return
vii. Purchases
viii. Bad Debts
ix. Discount Allowed
x. Rent
xi. Commission Received
xii. Capital
xiii. Repairs
xiv. Purchases Return
Solution:

Question 7.
Put the following transactions on the proper side of an Interest Account:
i. Interest earned Rs.2,000
ii. Interest paid Rs.1,000
iii. Interest due Rs.500
Solution:

Question 8.

Solution:

Question 9.

Solution:

Question 10.

Solution:

Question 11.

Solution:

Question 12.
Solution:

Question 13.

Solution:

Question 14.

Solution:

Question 15.

Solution:

TS Grewal Solutions for Class 11 Accountancy Chapter 5 – Accounting Equation

Question 1.

Solution:

Question 2.

Solution:

Question 3.

Solution:

Question 4.
What will be the effect of the following on the Accounting Equation?
i. Harish started business with cash Rs.18,000
ii. Purchased goods for cash 5,000 and on credit Rs.2,000
iii. Sold goods for cash Rs.4,000 (costing Rs.2,400)
iv. Rent paid Rs.1,000 and rent outstanding Rs.200
(Delhi 1998)
Solution:

Question 5.
Prepare Accounting Equation from the following:
i. Started business with cash Rs.1,00,000 and Goods Rs.20,000.
ii. Sold goods worth Rs.10,000 for cash Rs.12,000.
iii. Purchased furniture on credit for Rs.30,000.
(Delhi 2011)
Solution:

Question 6.
Prepare an Accounting Equation and Balance Sheet on the following basis:
i. Ajeet started business with cash Rs.20,000.
ii. He purchased furniture for Rs.2,000.
iii. He paid rent of Rs.200.
iv. He purchased goods on credit Rs.3,000.
v. He sold goods (cost price Rs.2,000) for Rs.5,000 on cash.
Solution:

Question 7.
Prepare an Accounting Equation from the following:
i. Started business with cash Rs.1,00,000.
ii. Purchased goods for cash Rs.20,000 and on credit Rs.30,000.
iii. Sold goods for cash costing Rs.10,000 and on credit costing Rs.15,000 both at a profit of 20%.
(Delhi 2010)
Solution:

Question 8.

Solution:

Question 9.

Solution:

Question 10.
Prove that the Accounting Equation is satisfied in all the following transactions of Suresh. Also prepare a Balance sheet.
i. Commenced business with cash Rs.60,000.
ii. Paid rent in advance Rs.500.
iii. Purchased goods for cash Rs.30,000 and credit Rs.20,000.
iv. Sold goods for cash Rs.30,000 costing Rs.20,000.
v. Paid salary 500 and salary outstanding being Rs.100
vi. Bought motorcycle for personal use Rs.5,000.
Solution:

Question 11.
Show the effect of the following transactions on assets, liabilities and capital using the Accounting Equation. Also prepare a Balance sheet:
i. Started business with cash Rs.60,000
ii. Rent received Rs.2,000
iii. Accrued interest Rs.500
iv. Commission received in advance Rs.1,000
v. Amount withdrawn Rs.5,000
[Hint : Capital = Opening Capital Rs.60,000 + Rent Received Rs.2,000 + Accrued Interest Rs.500 – Drawings Rs.5,000 = Rs.57,500]
Solution:

Question 12.
Prove that the Accounting Equation is satisfied in all the following transactions of Sameer Goel :
(i) Started business with cash Rs.10,000.
(ii) Paid rent in advance Rs.300.
(iii) Purchased goods for cash 5,000 and credit Rs.2,000.
(iv) Sold goods for cash Rs.8,000 costing Rs.4,000.
(v) Paid salary Rs.450 and salary outstanding being Rs.100.
(vi) Bought motorcycle for personal use Rs.3,000.
(KVS 1997)
Solution:

Question 13.
Show the Accounting Equation on the basis of the following transactions and present a Balance sheet on the last new equation balance:

Solution:


Question 14.
Raghunath had the following transaction in an accounting year:
i. Commenced business with cash Rs.50,000.
ii. Paid into bank Rs.10,000.
iii. Purchased goods for cash Rs.20,000 and credit Rs.30,000.
iv. Sold goods for cash Rs.40,000 costing Rs.30,000.
v. Rent paid Rs.500.
vi. Rent outstanding Rs.100.
vii. Bought furniture Rs.5,000 on credit.
viii. Bought refrigerator for personal use Rs.5,000.
ix. Purchased motorcycle for cash Rs.20,000.
Create an Accounting Equation to show the effect of the above transactions on his assets, liabilities and capital and also show his final Balance sheet.
Solution:


Question 15.
Prepare an Accounting Equation from the following:
i. Started business with cash Rs.50,000 and goods Rs.30,000.
ii. Purchased goods for cash 30,000 and on credit from Karan Rs.20,000.
iii. Goods costing Rs.40,000 were sold for Rs.55,000.
iv. Withdraw cash for personal use Rs.10,000.
v. Rent outstanding Rs.2,000.
(MSE Chandigarh)
Solution:

Question 16.
Show an Accounting Equation on the basis of the following transactions:
i. D. Mahapatra commenced business with cash Rs.1,50,000; goods Rs.60,000; machinery Rs.1,00,000 and furniture Rs.50,000.
ii. 1/3rd of the above goods sold at a profit of 10% on cost and half of the payment is received in cash.
iii. Depreciation on machinery provided @10%.
iv. Cash withdrawn for personal use 10,000.
v. Interest on drawings charged @5%.
vi. Goods sold to Gupta for Rs.10,000 and received a Bill Receivable for the same amount for 3 months.
vii. Received Rs.10,000 from Gupta against the Bills Receivable on its maturity.
[Hints:
1. Opening Capital Rs.3,60,000 = Cash Rs.1,50,000 + Stock Rs.60,000 + Machinery Rs.1,00,000 + Furniture Rs.50,000
2. Liabilities: Nil]
Solution:

Question 17.

Solution:

Question 18.
Create an Accounting Equation on the basis of the following transactions:
i. Commenced business with cash Rs.50,000, goods Rs.30,000 and furniture Rs.20,000.
ii. Sold goods to Ajay on credit costing Rs.4,000 for Rs.5,000.
iii. Sold goods for cash costing Rs.12,000 for Rs.16,000.
iv. Purchased goods for cash Rs.40,000.
v. Purchased goods on credit for Rs.20,000.
vi. Paid rent Rs.3,000 including Rs.2,000 in advance.
vii. Paid salaries Rs.2000.
viii. Sold goods costing Rs.8,000 for Rs.10,000.
ix. Salaries outstanding Rs.1,000.
x. Charge depreciation on furniture Rs.500.
Solution:


Question 19.
Prepare Accounting Equation from the following:
a. Started business with cash Rs.1,00,000.
b. Purchased goods for cash Rs.20,000 and on credit Rs.30,000.
c. Sold goods for cash costing Rs.10,000 and on credit costing Rs.15,000 both at profit of 20%.
d. Paid salaries Rs.8,000.
[Delhi 2012]
Solution:

Question 20.
Show the accounting equation on the basis of following transactions:
a. Ram started business with Rs.25,000.
b. Purchased goods from Shyam Rs.10,000.
c. Sold goods to Sohan costing Rs.1,500 for Rs.1,800.
[MSE Chandigarh 2015]
Solution:

Question 21.
If the capital of a business is Rs.3,00,000 and liabilities are Rs.50,000, loss 70,000, calculate the total assets of the business.
Solution:

Question 22.
If total assets of a business are Rs.1,30,000 and net worth is Rs.80,000, calculate the creditors.
[Hint: Net worth = Assets – Liabilities]
Solution:

Question 23.
A commenced his cloth business on 1^st April 2014 with a capital of Rs.30,000. On 31^st March 2015, his assets were worth Rs.50,000 and liabilities of Rs.10,000. Find out his closing capital and profits earned during the year.
Solution:

Question 24.
If capital of a business is Rs.1,40,000 and liabilities are of Rs.80,000, calculate the total assets of the business.
Solution:

Question 25.
Calculate the total assets if:
i. Capital is Rs.40,000.
ii. Creditors are Rs.25,000.
iii. Revenue during the period is Rs.50,000.
iv. Expenses during the period are Rs.40,000.
(Delhi 2001)
Solution:

Question 26.
a. A had a capital of Rs.75,000 on 1st April 2015. He had also goods amounting to Rs.15,000 which he had purchased on credit and the payment had not been made. Find out the value of the total assets of the business.
b. After a period of one month, he came to know that he had suffered a loss of Rs.1,700. He withdrew Rs.800 for his personal use. Find out his capital and assets of the business.
Solution:

Question 27.
a. Mohan started a business on 1^st April 2014 with a capital of Rs.10,000 and borrowed Rs.3,000 from a friend. He earned a profit ofRs.5,000 during the year ended 31^st march, 2013 and withdrew cash Rs.4,000 for private use. What is his capital on 31^st March, 2015?
b. Mahesh started a business with capital of Rs.15,000 on 1^st April, 2014. During the year he made a profit of Rs.3,000. He owes Rs.2,500 to suppliers of goods. What is the total of assets in his business on 31^st March, 2015?
Solution:

Question 28.
Mohan stared a business on 1^st April 2014 with a capital of Rs.25,000 and a loan of Rs.12,500 borrowed from Shyam. During 2014-15 he had introduced additional capital of Rs.12,500 and had withdrew Rs.7,500 for personal use. On 31^st March 2015 his assets were Rs.75,000. Find out his capital as on 31^st March,2015 and profit made or loss incurred during the year 2014 – 15.
Solution:

Question 29.
On 31^st March, 2015, the total assets and external liabilities were Rs.2,00,000 and Rs.6,000 respectively. During the year, the proprietor had introduced capital of Rs.20,000 and withdrawn Rs.12,000 for personal use. He made a profit of Rs.20,000 during the year.
Calculate the capital as on 1^st April, 2014.
Solution: