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#GrowWithGreen
Grade XIAccountancy(Mock Test)
Q.1 What is GST? [1 mark]
Q.2 Write any one limitation of Single Entry System. [1 mark]
Q.3 Which of the following alternatives is an example of profit for a firm? [1 mark]
a. Compensation received from winning a court case
b. Excess of receipts over the book value of fixed asset
c. Excess of revenue over its related expenses during an accounting year
d. All of the above
Q.4 Which account is prepared to ascertain credit sales? [1 mark]
Q.5 What do you understand by Customised Accounting Software? [1 mark]
Q.6 On 1st March 2018, Aman sold goods To Rohit for Rs.10,000 plus 12% intra-state GST.
Rohit promised To pay the amount after 1 month but paid GST amount in cash. Pass
necessary journal entry in the books of Aman.. [1 mark]
Q.7 State whether the following statements are true or false? [3 marks]
a) According to the Revenue Recognition Concept, cash received from debtors is
considered as revenue.
b) An asset is recorded at the price paid to acquire it.
c) According to the Full Disclosure Convention, business has indefinite life.
Q.8 Differentiate between Accounting and Accountancy on the following basis. [3 marks]
a) Purpose
b) Dependence
c) Scope
Q.9 As per the Matching Concept, which of the following transactions will be considered as
revenue expenditure? [3 marks]
(a) Wages due but not paid Rs 200
(b) Wages paid in advance for the next year Rs 100
(c) Depreciation charged on machinery Rs 400
(d) Purchase of plant for Rs 1,00,000
(e) Payment to creditors Rs 2,000
(f) Cash withdrawn Rs 1,000 for personal use
(g) Cash withdrawn from bank Rs 500
(h) Interest Rs 300 paid on loan for the current year
Q.10 Prepare Profit and Loss Account for the year 2017. [3 marks]
Particulars Amount
(Rs) Particulars
Amount
(Rs)
Gross Profit 32,000 Loss on Exchange 150
Salaries and Wages 5,000 Safe of Old Newspaper 200
Rent 2,000 Sale of Machinery 5,000
Rent from Tenant 3,000 Stationery 200
Interest on Investment 500 Depreciation on Machinery 500
Interest on Loan 800 Provision for Doubtful Debt 600
Interest on Capital 400 Manager’s Commission 50
Interest on Drawing 200
Commission Paid 500
Commission Payable 100
Q.11 List any three advantages of readymade software. [3 marks]
Q.12 “Trial Balance is a conclusive proof of the accuracy of the books of accounts.”
Comment [3 marks]
Q.13 Name any four external users of accounting information and briefly explain their
interest. [4 marks]
Q.14 Prepare Two Column Cash Book of Mr. Deewan for April, 2017. [4 marks]
Apr.01 Cash in hand 500
Apr.01 Bank overdraft 1,200
Apr.02 Additional capital introduced 5,000
Apr.05 Cash sales 2,000
Apr.07 Cash purchases 3,000
Apr.10 Sold goods to Amrita 2,000
Apr.12 Received cheque from Amrita 1950
Discount allowed 50
Apr.15 Amrita’s cheque deposited into bank
Apr.18 With drawn from bank 300
Apr.20 Paid wages 800
Apr.22 Paid to Mr. B 1,500
Q.15 On December 31, 2017, Shyam Babu’s Pass Book showed an overdraft balance of Rs
7,200. On comparing with the Bank Column of the Cash Book, the following differences
were found.
a) Out of the two cheques of Rs 2,000 and Rs 1,200 deposited into the bank, the first
cheque got cleared in January 2018 but the second cheque was yet not cleared.
b) Out of the three cheques (totaling Rs 12,000), a cheque of Rs 5,000 was presented for
payment in the month of January 2018.
c) Bank debited interest of Rs 300, which was not recorded in the Cash Book.
d) A cheque of Rs 200 debited in the Cash Column of the Cash Book and credited in the
Pass Book in the month of December 2017.
Prepare a Bank Reconciliation Statement. [4 marks]
Q.16 Ram Kapur keeps his books on Single Entry System on April 01, 2017 his capital
balance is Rs 1,75,000. On March 31, 2018, accounts are showing the following
balances.
Machinery Rs 20,000 Sundry Debtors Rs 45,000, Stock of Goods Rs 41,000, Cash in
Hand Rs 15,000, Bills Receivable Rs 42,000, Bank (Cr.) Rs 4,500 and Creditors Rs
15,000.
Mr. Kapur deposited Rs 10,000 in National Savings Certificate in the name of his wife
and purchased an Office Furniture for Rs 2,500.
Interest on Capital is to be provided at 10% on opening Capital Balance.
Provide 2% as Provision for bad and doubtful debts.
You are required to prepare Statement of Profit and Loss for Mar 31, 2018 by following
the Alternative Method. [4 marks]
Q.17 Prepare Debtors’ and Creditors’ Account to ascertain their closing balances.[4 marks]
Debit Credit
Debtors and Creditors at the beginning 20,000 12,000
Sales and Purchases 25,000 16,000
Returns 2,000 1,800
Cash/Bank from debtors 28,000
Cash/Bank to creditors 14,000
Bad Debts 200 –
Discount 300 250
Q.18 What is meant by errors in accounting? Explain any three types of clerical errors.
[6 marks]
Q.19 On May 01, 2017, A sold goods to B for 5,000 and on the same date A drew a three
months bill for the same amount on B. B accepted the bill and returned it to A. On May
04, 2017, A discounted the bill with the bank at 12% p.a. On the due date, the bill
dishonoured and bank paid Rs 150 for noting charges. B paid immediately Rs 2,000 plus
noting charges and got another bill drawn together with interest 200 for another three
months. On the due date B became insolvent and nothing was recovered from his
official receiver.
Pass the necessary Journal entries in the books of A and B. [6 marks]
Q.20 On January 01, 2009, a machinery was purchased for Rs 1,20,000 and another machine
was purchased on October 01, 2009 for Rs 50,000. On January 01, 2011, 1/3rd of the
machine purchased on January 01, 2009 was sold for Rs 25,000 and on the same date
another machine was purchased for Rs 1,00,000. Depreciation is charged at 10% p.a. on
the original cost of the machinery. Prepare a Machinery Account for three years.
Accounts are closed on December 31, every year. [6 marks]
Q.21 Pass the necessary rectification entries for the errors given below. [6 marks]
(1) Purchase of Rs 1,500 from Ramesh was wrongly passed through Sales Book.
(2) Sales day book on a folio was carried forward to next page as Rs 560 instead of Rs
650.
(3) Cash of Rs 800 paid to Pallav, but only Rs 80 were debited to his Account.
(4) Goods costing Rs 2,500 having the sale value of Rs 2,800 were returned by a
customer were not recorded.
(5) One item of Rs 250 relating to Prepaid Insurance Account was omitted to be brought
forward from the books of previous year.
(6) Purchases Return Book undercast by Rs 50.
Q.22 What is a computer? How computer is useful in accounting. [6 marks]
Q.23 The Trial Balance of Mr. Somnath is given below.
Particulars
Debit
Amount
(Rs)
Particulars
Credit
Amount
(Rs)
Bills Receivables 3,000 Sales 70,000
Debtors 6,000 Bills Payable 5,600
Pant & Machinery 30,000 Creditors 32,850
Land & Building 20,000 Bank Overdraft 4,000
Stock (Opening) 4,500 Capital 22,750
Purchases 40,000 Discount on issue of shares 2,000
Wages 3,000 Mortgage 1,500
Salaries 2,400
Royalty on Sales 2,000
Export Duty 1.500
Carriage 1,200
Drawings 20,000
Rent 1,100
Additional Information:
a) Building valued at Rs 16,250 and Machinery will be shown at 90% in the balance
sheet.
b) Stock at the end valued at Rs 5,000. It includes goods costing Rs 500 which were sold
and recorded as Sales but not delivered to the customer.
c) Provide 10% Manager Commission on net profit after charging such commission.
d) 2% commission to be provided to salesmen on sales and Rent is paid for 11 months.
f) Ramesh who owed Rs 200 to firm and included in the list of debtors became insolvent
and nothing was recovered from his estate.
Prepare the Trading Account, Profit and Loss Account and the Balance Sheet. [8 marks]
Q.24 On May 01, 2010, Tom sold goods for Rs 5,200 to Darren and drew a three months after
date bill. Darren accepted the bill and returned it to Tom on May 05, 2010. Tom
endorsed the bill to Harry in the full settlement of the amount due to Harry of Rs 5,300.
On the due date, the bill became dishonored. Harry paid Rs 50 as noting charges.
Pass the necessary Journal entries in the books of all three parties Tom, Darren and
Harry. [8 marks]
A.1 GST or Goods and Services Tax is an indirect tax which has integrated different taxes
being imposed by the Centre and State governments on various goods and services.
A.2 Single Entry System is an incomplete and unscientific system because in this system,
both the aspects (debit and credit) of transaction are not taken while recording in the
books of account.
A.3 The excess of revenues of a period over its related expenses during an accounting year is
profit. But a profit that arises from the events that are incidental to business such as sale
of fixed assets, winning a court case, etc is called gain.
Hence, the correct answer is option (c).
A.4 Debtors Account is prepared to ascertain credit sales. Generally debtors are the persons
To whom goods are sold on credit.
A.5 Customised Accounting Software means altering the readymade software available in
the market as per the specific needs of the users.
A.6
Date 2018 Particulars L.F.
Dr.
Amount
(Rs.)
Cr.
Amount
(Rs.)
Mar.01 Rohit Dr. 10,000
Cash A/c Dr. 1,200
To Sales A/c 10,000
To Output CGST A/c 600
To Output SGST A/c 600
(Goods sold on credit plus 12% intra-state
GST and GST received in cash)
A.7 a) False, as according to the Revenue Recognition Concept, revenue is recognised when
sales take place and not when actual amount is received from the debtors for sales.
b) True, as according to the Cost Concept, an asset is recorded in the books of accounts
at its acquisition price, i.e. the price paid to acquire it and not the (current) market
price of the asset.
c) False, as according to the Going Concern Concept, business has indefinite life. No
matter whether the owners of the business are alive or dead, business will continue.
A.8
Basis of Distinction Accounting Accountancy
Purpose
Main purpose is to find out
the net results and financial
status of the business and
communicating the results to
its various users.
Main purpose of accountancy
includes decision making
function.
Dependence
Accounting depends on the
information provided by
book keeping.
Accountancy independently
guides both book-keeping
and accounting.
Scope
Accounting is narrow in
scope. It starts where book
keeping ends.
It is wider in scope because it
explains the principles and
techniques that are required
to be followed in accounting
and includes both accounting
and book keeping.
A.9 According to the Matching Concept, the following transactions will be considered as
revenue expenditure.
(a) Wages due but not paid Rs 200
(c) Depreciation charged on machinery Rs 400
(h) Interest Rs 300 paid on loan for the current year
A.10
Profit and Loss Account
Dr. Cr.
Particulars Amount
(Rs) Particulars
Amount
(Rs)
Salaries and Wages 5,000 Gross Profit 32,000
Rent 2,000 Rent from Tenant 3,000
Interest on Loan 800 Interest on Investment 500
Interest on Capital 400 Interest on Drawings 200
Commission paid 500 Sale of Old Newspaper 200
Loss on Exchange 150
Stationery 200
Depreciation on Machinery 500
Manager’s Commission 50
Net Profit 26,300
35,900 35,900
A.11 Readymade software is the software that is designed and developed not for a specific
purpose but for the purpose in general. The following are the various advantage of
readymade software.
(i) The cost of readymade software is comparatively low. Thus, it is economical.
(ii) It is user-friendly and easier to implement and learn.
(iii) Training provision from vendor is available.
A.12 Trial Balance is a statement prepared with the debit and credit balances of ledger
accounts to test the arithmetical accuracy of books. If both the debit and credit column
are equal, it is assumed that books of accounts are arithmetically correct. But it should
never be taken as conclusive proof of accuracy of books of accounts as only those errors
that affect the agreement of a trial balance are detected. Such errors are generally one
sided errors as they affect only one side of the trial balance and due to this the one of the
side of the trial balance does not match with the other side, hence, these are detected and
then rectified. However, certain errors like errors of principle that do not affect the
arithmetic accuracy of trial balance may be present. These are two sided errors wrongly
recorded in the books of accounts. In case of Errors of Principle, Compensating errors
and complete omission of transaction, the trial balance will match but in reality there is
an undetected error.
A.13 External users of information are the individual or the organisations that have direct or
indirect interest in the business firm; however, are not a part of management. They do
not have direct access to the internal data of the firm and uses published data or reports
like profit and loss accounts, balance sheets, annual reports, press releases, etc. Some
examples of external users are government, tax authorities, labour unions, etc.
1. Banks and other financial institutions– Banks provide finance in form of loans and
advances to various businesses. Thus, they need information regarding liquidity,
creditworthiness, solvency and profitability to advance loans.
2. Creditors– These are those individuals and organisations to whom a business owes
money on account of credit purchases of goods and receiving services; hence, the
creditors require information about credit worthiness of the business.
3. Investors and potential investors– They invest or plan to invest in the business.
Hence, in order to assess the viability and prospectus of their investment, creditors
need information about profitability and solvency of the business.
4. Tax Authorities- They need accounting information to know whether the amount of
sales, production, profits, revenues, etc. are correctly calculated and shown
unambiguously in the books. This is very important so that appropriate and correct
tax rates (of taxes such as sales tax, excise duty, etc.) are levied on the business.
A.14
Books of Mr. Deewan
Cash Book
Dr. Cr.
Date Particulars L.F. Cash
Rs
Bank
Rs Date Particulars L.F.
Cash
Rs
Bank
Rs
2017 2017
Apr.01 Balance B/d 500 Apr.01 Balance b/d 1,200
(Overdraft)
Apr.02 Capital 5,000 Apr.07 Purchases 3,000
Apr.05 Sales 2,000 Apr.15 Bank (c) 1,950
Apr.12 Amrita 1,950 Apr.18 Cash (c) 300
Apr.15 Cash (c) 1,950 Apr.20 Wages 800
Apr.18 Bank (c) 300 Apr.22 Mr. B 1,500
Apr.30 Balance c/d 2,500 450
9,750 1,950 9,750 1,950
A.15
Bank Reconciliation Statement of Shyam Babu
as on December 31, 2017
Particulars (+)
items
(–)
items
Over draft as per the Pass Book 7,200
a) Cheques deposited but not cleared in December 3,200
b) Cheques issued but not presented for payment in December 5,000
c) Interest on overdraft charged by the bank 300
d) Cheques wrongly debited in the Cash Column of the 200
Cash Book but cleared in December
Overdraft as per the Cash Book 8,900
12,400 12,400
A.16
Statement of Profit and Loss
as on March 31, 2018
Particulars Amount
(Rs)
Capital at the end as on March 01, 2018 1,46,000
Add: Drawings 10,000
1,56,000
Less: Capital in the beginning as on April 01, 2017 1,75,000
Loss incurred before adjustments 19,000
Less: Interest on Capital @ 10% 17,500
Less: Provision for bad and doubtful debts 900
Loss incurred during the year 37,400
Working Note:
Calculation of capital as on Mar 31, 2018
Statement of Affairs
as on March 31, 2018
Liabilities Amount
(Rs) Assets
Amount
(Rs)
Sundry Creditors 15,000 Machinery 20,000
Bank overdraft 4,500 Sundry Debtors 45,000
Capital (Balancing Figure) 1,46,000 Stock of Goods 41,000
Cash in Hand 15,000
Bills Receivable 42,000
Office Furniture 2,500
1,65,500 1,65,500
A.17
Debtors’ Account
Dr. Cr.
Date Particulars Amount
(Rs.) Date Particulars
Amount
(Rs.)
Balance b/d 20,000 Sales Returns 1,800
Sales 25,000 Cash/Bank 28,000
Bad Debt 200
Discount 300
Balance c/d 14,700
45,000 45,000
Creditors’ Account
Dr. Cr.
Date Particulars Amount
(Rs.) Date Particulars
Amount
(Rs.)
Purchases Returns 2,000 Balance b/d 12,000
Cash/Bank 14,000 Purchases 16,000
Discount 250
Balance c/d 11,750
28,000 28,000
A.18 Errors in simple terms are unintentional mistakes committed at the time of recording any
business transactions or at the time of their posting in the Ledgers. Examples of these
errors are recording of wrong amount, recording in wrong Account (Ledger), posting in
wrong ledger, or incorrect calculations.
Clerical Errors are those errors that arise due to mistake committed in ordinary course
of accounting work. Following are two types of clerical errors:
(i) Errors of Omission: Whenever any transaction is altogether omitted to be recorded in
the books then such type of an error will be called as “Error of Omission”. These
types of error do not effect trial balance as transaction is not at all recorded so neither
debit nor credit aspect of transaction has been considered. If transaction is although
recorded but omitted to be posted in their respective ledgers then such an error is also
Error of Omission.
(ii) Errors of Commission: These errors are related to wrong recording of amount, wrong
totaling, wrong calculation, wrong balancing of Ledgers and often are regarded as
clerical errors. All these errors are either recorded wrongly or they may be recorded
correctly but incorrectly posted in the Ledger Account.
(iii) Compensating Errors: Compensating Errors are those errors in which effect of one
error is compensated by the effect of another error or errors with the same amount.
So in this way two different errors simultaneously counterbalance effect of each
other. These errors do not affect Trial Balance.
A.19
Books of A
Journal
Date Particulars L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
2017
May 01 B Dr. 5,000
To Sales A/c 5,000
(Goods sold To B)
May 01 Bills Receivable A/c Dr. 5,000
To B 5,000
(B's acceptance for three months received)
May 04 Bank A/c Dr. 4,850
Discount A/c Dr. 150
To Bills Receivable A/c 5,000
(Bill discounted)
Aug. 04 B Dr. 5,150
To Bank A/c 5,150
(B's acceptance dishonoured and the bank paid Rs
150
noting charges)
Aug. 04 Cash A/c Dr. 2,150
To B 2,150
(Amount received from B)
Aug. 04 Bills Receivable A/c Dr. 3,000
To B 3,000
(B's acceptance for three months received)
Nov. 07 B Dr. 3,000
To Bills Receivable A/c 3,000
(Bill dishonoured)
Nov. 07 Bad Debt A/c Dr. 3,000
To B 3,000
(Amount due from B became bad)
Books of B
Journal
Date Particulars L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
2017
May 01 Purchases A/c Dr. 5,000
To A 5,000
(Goods bought from A)
May 01 A Dr. 5,000
To Bills Payable A/c 5,000
(Bill accepted drawn by A for three months)
Aug. 04 Noting Charges A/c Dr. 150
Bills Payable A/c Dr. 5,000
To A 5,150
(Bill dishonoured on the due date)
A Dr. 2,150
To Cash 2,150
(Cash paid To A)
Aug. 04 A Dr. 5,000
To Bills Payable A/c 5,000
(Bill accepted drawn by A for three months)
Nov. 07 Bills Payable A/c Dr.
To A
(Bill dishonoured)
Nov. 07 A Dr. 3,000
To Deficiency A/c 3,000
(Amount due To A transferred To
Deficiency Account)
A.20
Machinery Account
Dr. Cr.
Date Particulars J.F. Amount
(Rs) Date Particulars J.F.
Amount
(Rs)
Jan.01 Bank (i) 1,20,000
(80,000 + 40,000) Dec.31 Depreciation
(i) 12,000, (ii) 1,250 13,250
Oct.01 Bank (ii) 50,000 Dec.31 Balance c/d
(i) 1,08,000, (ii)
48,750
1,56,750
1,70,000 1,70,000
2010 2010
Jan.01 Balance c/d Dec.31 Depreciation
(i) 1,08,000, (ii)
48,750
1,56,750 (i) 12,000, (ii) 5,000 17,000
Dec.31 Balance c/d
(i) 96,000, (ii)
43,750
1,39,750
1,56,750 1,56,750
2011 2011
Jan.01 Balance c/d Jan.01 Bank (i) 1/ 3rd
of 25,000
Machinery
(i) 96,000, (ii)
43,750
1,39,750 Jan.01 Profit and Loss
(loss)
7,000
Jan.01 Bank (iii) 1,00,000 Dec.31 Depreciation
(i) 12,000 × (2/3) =
8,000
(ii) 5,000, (iii)
10,000
23,000
Balance c/d
(i) 56,000 (ii)
38,750
(iii) 90,000 1,84,750
2,39,750 2,39,750
Working Note: Calculation of Loss on Sale of 1/3rd
of the Machinery (i)
Years Opening
Balance Depreciation
Closing
Balance
Jan 01, 2009 1,20,000 – 12,000 = 1,08,000
Jan 01, 2010 1,08,000 – 12,000 = 96,000
Jan 01, 2011 96,000
January 01, 2011
Book Value of (1/3)rd
of Machinery (i) = 96,000 × (1/3) = 32,000
Sale of 1/3rd
of the Machinery (25,000)
Loss on Sale of Machine Rs 7,000
January 01, 2011
Book Value of (2/3)rd
of the Machinery (i) = 96,000 × (2/3) = Rs 64,000
Depreciation will be charged on the original cost of the Machinery (i) on December 31,
2011 = 1,20,000 × (2/3) × (10/100) = Rs 8,000
A.21
Date Particulars L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
1. Purchases A/c Dr. 1,500
Sales A/c Dr. 1,500
To Ramesh 3,000
(Goods purchased from Ramesh was
wrongly passed through Sales Book, now
rectified)
2. Suspense A/c Dr. 90
To Sales A/c 90
(Sales day book Total of one page Rs 560
was carried forward To next page as Rs 650,
now rectified)
3. Pallav Dr. 720
To Suspense A/c 720
(Cash paid To Pallav Rs 800 was wrongly
debited To his Account as Rs 80, now
rectified)
4. Sales Returns A/c Dr. 2,800
To CusTomer A/c 2,800
(Goods returned by cusTomer not recorded,
now recorded)
5. Prepaid Insurance A/c Dr. 250
To Suspense A/c 250
(Prepaid Insurance was omitted To be
brought forwarded from Previous Year, now
rectified)
6. Suspense A/c Dr. 50
To Purchases Return A/c 50
(Purchases Return Book undercast, now
rectified)
A.22 A computer may be defined as an electronic device whose basic function is to take
information storing and processing it according to the set of information and gives back
the output (result) to the user.
The following are the various characteristics of computer.
(i) Speed- Speed of a computer is faster than the manual techniques. It can perform a
task in much lesser time with very high speed. It is capable of performing millions of
calculation per second.
(ii) Accuracy- A computer performs any function or computation with very a high
degree of accuracy. Errors if any exist only due to wrong commands or wrong
programming.
(iii) Reliable- Function performed by a computer are more reliable as it can work for
comparatively long hours without any tiredness, lack of concentration and without
creating any mistakes. It can perform any number of calculations with the same degree
of accuracy.
(iv) Versatility- A computer has the capacity to perform variety of tasks. A task may be
simple as well as complicated. It is able to perform variety of jobs.
(v) Storage- A computer has in-built capacity to store huge data in a very small space. It
stores the data in a safe way. If needed, its storage capacity can also be increased
through secondary storage devices such as floppy disks, optical disks, etc.
A.23
Trading Account
Dr. Cr.
Particulars Amount
(Rs) Particulars
Amount
(Rs)
Opening Stock 4,500 Sales 70,000
Purchases 40,000 Closing Stock 5,000
Wages 3,000
Less: Sold and Wrongly
included 500 4,500
Carriage 1,200
Gross Profit (Balancing Figure) 25,800
74,500 74,500
Profit and Loss Account
Dr. Cr.
Particulars Amount
(Rs) Particulars
Amount
(Rs)
Depreciation on: Gross Profit 25,800
Building 3,750
Machinery 3,000 6,750
Outstanding Commission on sale 1,400
Royalty on Sales 2,000
Export Duty 1.500
Bad Debts 200
Salaries 2,400
Rent 1,100
Add: Outstanding rent 100 1,200
Outstanding Manager’s Commission 941
Net Profit 9,409
25,800 25,800
Balance Sheet
Liabilities Amount
(Rs) Assets
Amount
(Rs)
Capital 22,750 Fixed Assets
Less: Drawings 20,000 Plant & Machinery 30,000
Add: Net Profit 9,409 12,159 Less: Depreciation 3,000 27,000
Mortgage 1,500 Land and Building 20,000
Current Liabilities Less: Depreciation (3,750) 16,250
Bank Overdraft 4,000 Current Assets
Bills Payable 5,600 Closing Stock (5,000 – 500) 4,500
Creditors 32,850 Bills Receivables 3,000
Outstanding Rent 100 Debtors 6,000
Outstanding commission on sale 1,400 Less: Bad Debts 200 5,800
Outstanding Manager’s
Commission 941 Discount on issue of shares 2,000
58,550 58,550
Working Note:
10Manager's Commission 10,350 Rs 941
110
Ans. 24
Journal of Tom
Date Particulars L.F.
Debit
Amount
(Rs.)
Credit
Amount
(Rs.)
2010
May 01 Darren Dr. 5,200
To Sales A/c 5,200
(Goods sold To Darren)
May 05 Bills Receivable A/c Dr. 5,200
To Darren 5,200
(Darren's acceptance received for three months)
May 05 Harry Dr. 5,300
To Bills Receivable A/c 5,200
To Discount Received A/c 100
(Darren's acceptance endorsed To Harry and discount
received for Rs 100)
Aug.04 Darren Dr. 5,250
Discount Received A/c Dr. 100
To Harry Dr. 5,350
(Darren's acceptance dishonored and Harry
paid Rs 50 as Noting charges)
Dr.
Journal of Darren
Date Particulars L.F.
Debit
Amount
(Rs.)
Credit
Amount
(Rs.)
2010
May 01 Purchases A/c Dr. 5,200
To Tom 5,200
(Goods brought from Tom)
May 01 Tom Dr. 5,200
To Bills Payable A/c 5,200
(Bill drawn by Tom for three months accepted)
Aug.04 Bills Payable A/c Dr. 5,200
Noting Charges A/c Dr. 50
To Tom 5,250
(Bill drawn by Tom got dishonored and Noting
charges Rs 50)
Journal of Harry
Date Particulars L.F.
Debit
Amount
(Rs.)
Credit
Amount
(Rs.)
2010
May 05 Bills Receivable A/c Dr. 5,200
Discount Allowed A/c Dr. 100
To Tom 5,300
(Bill received from Harry and allowed him discount
Rs 100)
Aug.04 Tom Dr. 5,350
To Bills Receivable A/c 5,200
To Discount Allowed A/c 100
To Cash A/c 50
(Bill received from Tom dishonoured and Rs
50 paid as noting charges )
