CBSE Class 11

TS Grewal Accountancy Class 11 Solutions Chapter 14 Adjustments in Preparation of Financial Statements are part of TS Grewal Accountancy Class 11 Solutions. Here we have given TS Grewal Accountancy Class 11 Solutions Chapter 14 Adjustments in Preparation of Financial Statements.

Board	CBSE
Textbook	NCERT
Class	Class 11
Subject	Accountancy
Chapter	Chapter 14
Chapter Name	Adjustments in Preparation of Financial Statements
Number of Questions Solved	31
Category	TS Grewal Solutions

TS Grewal Accountancy Class 11 Solutions Chapter 14 Adjustments in Preparation of Financial Statements

Question 1.
Following are the balances extracted from the books of Manish Gupta on 31st March, 2018:

Prepare Trading and Profit and Loss Account and Balance Sheet as at 31st March, 2018 after following adjustments are made:
(i) Closing Stock was ₹ 16,000.
(ii) Depreciate Plant and Machinery @ 10% and Delivery Vehicle @ 15%.
(iii) Unpaid Rent amounted to ₹ 500.
Solution:

Question 2.
Prepare Trading and Profit and Loss Account and Balance Sheet from the following balances relating to the year ended 31st March, 2018:

Additional Information:
(i) Closing Stock was valued at ₹ 14,500.
(ii) Depreciate Plant and Machinery by ₹ 4,000.
(iii) Write off Bad Debts ₹ 5,000.
(iv) A sum of ₹ 400 is due for repairs.
Solution:

Question 3.
Following Trial Balance has been extracted from the books of M/s. Ram Prasad & Sons on 31st March, 2018:

Additional Information:
(i) Outstanding salaries were ₹ 45,000.
(ii) Depreciate Machinery at 10%.
(iii) Wages outstanding were ₹ 5,000.
(iv) Rent prepaid ₹ 10,000.
(v) Provide for interest on capital 5% per annum.
(vi) Stock on 31st March, 2018 ₹ 8,00,000.
Prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that date.
Solution:

Question 4.
From the following Trial Balance of M/s. Shradha & Sons as on 31st March, 2018, prepare Trading and Profit and Loss Account and Balance Sheet.

Adjustments:
(i) Closing Stock ₹ 64,000.
(ii) Wages outstanding ₹ 2,400.
(iii) Bad Debts ₹ 600.
(iv) Provision for Doubtful Debts to be 5%.
(v) Rent is paid for 11 months.
(vi) Insurance premium is paid per annum, ended 31st May, 2018.
(vii) Loan from the bank was taken on 1st October, 2017.
(viii) Provide Depreciation on machinery @ 10% and on Furniture @ 5%.
Solution:

Question 5.
Trial Balance of a business as at 31st March, 2018 is given below:

Prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that date after taking into account the following adjustments:
(i) Closing Stock was valued at ₹ 7,000.
(ii) Outstanding liabilities for wages were ₹ 600 and salaries ₹ 1,400.
(iii) Depreciation is to be provided @ 5% p.a. on all fixed assets.
(iv) Included in Plant and Machinery is a machine purchased for ₹ 10,000 on 1st October, 2017.
(v) Insurance premium paid in advance ₹ 200.
Solution:

Question 6.
​Following are the balances extracted from the books of Narain Lal on 31st March, 2018:​

Additional Information:
(i) Closing Stock as on 31st March, 2018 was ₹ 2,00,600.
(ii) Depreciate: Business Premises by ₹ 3,000 and Furniture and Fittings by ₹ 2,500.
(iii) Make a provision of 5% on debtors for doubtful debts.
(iv) Carry forward ₹ 2,000 for unexpired insurance.
(v) Outstanding salary was ₹ 15,000.
Prepare Trading and Profit and Loss Account for the year and Balance Sheet as at that date.
Solution:

Question 7.
Following balances are taken from the books of Mr. Niranjan. You are required to prepare Trading and Profit and Loss Account and Balance Sheet for the year ended 31st March, 2018:

Adjustments:
(i) Closing Stock ₹ 75,000.
(ii) Depreciate Machinery by 10% and Furniture by 20%.
(iii) Wages ₹ 5,000 and salaries ₹ 2,000 are outstanding.
(iv) Write off ₹ 5,000 as further Bad Debts and create 5% Provision for Doubtful Debts.
(v) Investments were made on 1st July, 2017 and no interest has been received so far.
Solution:

Question 8.
From the following Trial Balance of Mahesh, prepare his Final Accounts for the year ended 31st March, 2018:


Additional Information:
(i) Closing Stock on 31st March, 2018 was ₹ 21,000.
(ii) Rent of ₹ 1,200 has been received in advance.
(iii) Outstanding liability for trade expenses ₹ 12,000.
(iv) Commission earned during the year but not received was ₹ 2,100.
(v) Goods costing ₹ 2,000 were taken by the proprietor for his personal use but no entry has been passed in the books of account.
Solution:

Question 9.
Following balances were extracted from the books of Vijay Kumar on 31st March, 2018:

Prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that date after giving effect to the following adjustments:
(a) Stock as on 31st March, 2018 was valued at ₹ 2,30,000.
(b) Write off further ₹ 1,800 as Bad Debts and maintain the Provision for Doubtful Debts at 5%.
(c) Depreciate Machinery at 10%.
(d) Provide ₹ 7,000 as outstanding interest on loan.
Solution:

Question 10.
Following Trial Balance has been extracted from the books of Shri Sunder Lal on 31st March, 2018:


Closing Stock on 31st March, 2018 was ₹ 12,74,000. You are required to prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that date after making the following adjustments:
(a) Depreciate Plant and Machinery @ 10% and Furniture @ 5%.
(b) Provision for Doubtful Debts to be maintained at ₹ 1,50,000.
(c) Insurance includes annual premium of ₹ 7,200 on a policy which will expire on 30th September, 2018.
(d) Purchases include a computer costing ₹ 60,000 purchased on 1st July, 2017 and is subject to depreciation @ 10% p.a.
Solution:



Working Note:
Calculation of Computer Depreciation
Computer Purchases 1 July 2017 = 60,000
Depreciation = 10%
Computer Depreciation= 60,000 × 10% × 9months = 4,500
Note: As per this Question correct Net Profit is Rs.1,86,200, while, as per the book solution is Net Profit Rs.1,82,600.

Question 11.
Sanjiv Sondhi started business on 1st April, 2017 with a capital of ₹ 3,00,000. Following Trial Balance was drawn up from his books at t he end of the year:

Value of Stock as on 31st March, 2018 was ₹ 2,60,000. You are required to prepare his Trading and Profit and Loss Account for the year ended 31st March 2018 and Balance Sheet as at that date after taking the following facts into account:
(a) Plant and Fixtures are to be depreciated by 10%.
(b) Salaries outstanding on 31st March, 2018 amounted to ₹ 35,000.
(c) Accrued Interest on investment amounted to ₹ 7,500.
(d) ₹ 5,000 are Bad Debts and a Provision for Doubtful Debts is to be created at 5% of the balance of debtors.
Solution:

Question 12.
Following Trial Balance were extracted from the books of Ram as on 31st March, 2018:

Prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that date after taking into account the following:
(a) Depreciation is to be written off as follows: Leasehold premises 5%. Plant and Machinery 10%.
(b) Write off ₹ 5,000 as further Bad Debts and make a Provision for Doubtful Debts equal to ₹ 5,000.
(c) Wages amounted to ₹ 5,700 have become due but have not been paid.
(d) Wages include ₹ 10,000 incurred on installation of new machine. Machine was installed on 1st April, 2017.
(e) The value of stock on 31st March, 2018 was ₹ 1,49,200.
(f) Unexpired premium amount to ₹ 6,800 is to be carried forward to the next year.
Solution:



Note: Wages installation of machinery increases the value of machinery and reduces the value of wages.

Question 13.
From the following Trial Balance of M/s Arjun and Sons as on 31st March, 2018, prepare Trading and Profit and Loss Account and Balance Sheet:

Adjustments:
(i) Closing Stock ₹ 6,40,000.
(ii) Wages Outstanding ₹ 24,000.
(iii) Bad Debts ₹ 6,000 and Provision for Bad and Doubtful Debts to 5% on Debtors.
(iv) Rent is paid for 11 months.
(v) Loan from bank was taken on 1st October, 2017.
(vi) Provide Depreciation on Machinery @ 10% p.a.
(vii) Provide Manager’s Commission at 10% on net profit after charging such commission.
Solution:

Question 14.
From the following Trial Balance and other information prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that date:

Stock on 31st March, 2018 was ₹ 1,24,500. Rent was unpaid to the extent of ₹ 850 and ₹ 1,500 were outstanding for General Expenses; ₹ 4,000 are to be written off as bad debts out of the above debtors; and 5% is to be provided for doubtful debts. Depreciate Plant and Machinery by 10% and Business Premises by 2%.
Manager is entitled to a commission of 5% on net profit after charging his commission.
Solution:


Note: During the year firm has incurred a loss of Rs. 42,750. Therefore, manager commission given in the question as 5% on Net profit after charging commission is not payable.

Question 15.
Following is the Trial Balance of Mr. Bharat on 31st March, 2018.


Following adjustments are to be made:
(a) Stock on 31st March, 2018 – ₹ 52,000.
(b) Three months factory lighting and heating due but not paid – ₹ 300.
(c) 5% depreciation to be written off on furniture.
(d) Write off further Bad Debts – ₹ 700.
(e) Provision for Doubtful Debts to be increased to ₹ 3,000 and Provision of Discount on Debtors @ 2% to be made.
(f) During the year, machinery was purchased for ₹ 20,000 but it was debtied to the Purchases Account.
You are required to prepare Trading Account, Profit and Loss Account and Balance Sheet.
Solution:

Question 16.
From the following Trial Balance, prepare Trading Account, Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at the date:

Following adjustments are to be considered:
(i) Closing Stock ₹ 15,270.
(ii) Printing and Stationery expenses due ₹ 58,650.
(iii) Outstanding liabilities for salaries ₹ 12,000.
(iv) An old machine value at ₹ 12,000 (Book Value of which was ₹ 2,000) was given in exchange for a new machine purchased on 1st April, 2017. The machine given in exchange was not recorded in the books. Cheque issued for new machine purchased was accounted in the books of account.
(v) Depreciation @ 10% p.a. is to be provided on all fixed assets except building.
Solution:

Question 17.
Following balances were extracted from the books of Modern Traders on 31st March, 2018:

Prepare Final Accounts for the year ended 31st March, 2018 after taking into account the following:
(a) Stock on 31st March, 2018 was valued at ₹ 1,50,000.
(b) Outstanding Wages ₹ 5,000.
(c) Provision for Doubtful Debts is to be maintaind at 5% of the Sundry Debtors.
(d) Prepaid Insurance was ₹ 1,000.
(e) An advance paid by the proprietor from his personal bank account of ₹ 50,000 for purchase of a machine on 1st April, 2017 was not recorded in the books. Plant and Machinery was not debited in the books by the amount paid from firm.
(f) Provide Depreciation on Plant and Machinery @ 10% on cost and on Furniture @ 5%.
Solution:



Note: Advance paid by proprietor for Purchased of Plant and Machinery 1st April 2016 out of his personal bank account but not recorded in the books. Therefore, will increase the Plant and Machinery Account and Capital Account balance by Rs.50,000. And also increase in the amount of depreciation by Rs.5,000.

Question 18.
From the following Trial Balance of Shubdo Banerjee, prepare final accounts for the year ended in 31st March, 2018 and Balance Sheet as at that date:


The following adjustments be taken care of:
(i) Depreciate Land and Building @ 6%, Plant and Machinery @ 10%, Office equipments @ 20% and Furniture and Fixtures @ 15%.
(ii) Calculate Provision for Doubtful Debts at 2% on Debtors.
(iii) Insurance premium includes ₹ 250 paid in advance.
(iv) Provide salary to Banerjee ₹ 15,000 p.a.
(v) Outstanding Salaries ₹ 11,500.
(vi) 10% of the final profit is to be transferred to General Reserve.
Solution:

Question 19.
Following is the Trial Balance as on 31st March, 2018. Prepare Trading and Profit and Loss Account and Balance Sheet:

You are to make adjustments in respect of the following:
(a) Depreciate Machinery at 10% p.a.
(b) Make a provision @ 5% for Doubtful Debts.
(c) Provide discount on debtors @ 2\(\frac { 1 }{ 2 }\) %.
(d) Rent includes Rent deposit of ₹ 400.
(e) Insurance Prepaid ₹ 120.
Solution:

Question 20.
Following is the Trial Balance obtained from the books of Mr. Vishwanath on 31st March, 2018:

You are required to prepare Mr. Vishwanath’s Trading and Profit and Loss Account for the year ended 31st March, 2018 and his Balance Sheet as at that date after taking into account the following adjustments:
(a) Stock on 31st March, 2018 was ₹ 15,600.
(b) Depreciate Motor Van and Plant and Machinery by 10% p.a. and Computers @ 20% p.a.
(c) Create Provision for Doubtful Debts @ 5%.
(d) General Expenses include ₹ 2,000 paid of wages.
Solution:

Question 21.
Followingt Trial Balance has been extracted from the books of Santosh on 31st March, 2018:


Following additional information is available:
(a) Stock on 31st March, 2018 was ₹ 3,08,000.
(b) Depreciation is to be charged on Plant and Machinery at 5% and Furniture and Fixtures at 6%. Loose Tools are revalued at ₹ 1,60,000.
(c) Provision for Doubtful Debts is to be maintained at 5% on Sundry Debtors.
(d) Remuneration of ₹ 20,000 paid to Shri B. Barua, a temporary employee, stands debited to his personal account and it is to be corrected.
(e) Unexpired insurance was ₹ 4,000.
You are to prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that date.
Solution:

Question 22.
Prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that date from the following Traial Balance:

Adjustments:
(i) Salaries ₹ 1,000 and Taxes ₹ 2,000 are outstanding but Insurance ₹ 500 is prepaid.
(ii) Commission ₹ 1,000 received in advance for the next year.
(iii) Interest ₹ 2,100 is to be received on Deposits and Interest and Bank Loan ₹ 3,000 is to be paid.
(iv) Provision for Doubtful Debts to be maintained at ₹ 10,000.
(v) Depreciate Furniture by 10%.
(vi) Stock on 31st March, 2018 is ₹ 45,000.
(vii) A fire occurred on 1st April, 2018 destroying goods costing ₹ 10,000. These goods were purchased paying CGST and SGST @ 6% each.
Solution:

Question 23.
​The Trial Balance of M/s. Taj & Co. as on 31st March, 2018 was as follows:​

Prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet after considering the following information:
(i) Depreciation on Furniture @ 10% to be charged.
(ii) Sundry Debtors include ₹ 500 due from a customer who has become insolvent.
(iii) Provision for Doubtful Debts @ 5% on Sundry Debtors is to be maintained.
(iv) Goods costing ₹ 1,500, purchased paying CGST and SGST @ 9% each, were destroyed by fire and insurance company admitted a claim for ₹ 1,000.
(v) Stock on 31st March, 2018 was ₹ 12,550.
Solution:

Question 24.
From the following Trial Balance of Mr. Gaurav and additional information given, prepare Trading and Profit and Loss Account for the year ended 31st March,2018 and Balance Sheet as at 31st March, 2018:​

Adjustments:
(i) Value of the Closing Stock as on 31st March, 2018 is ₹ 50,000.
(ii) Wages and Salaries outstanding are ₹ 12,500 and Insurance prepaid is ₹ 5,000.
(iii) Depreciate Machinery and Furniture @ 10% and 15% p.a. respectively. Machinery included a machine which was purchased for ₹ 38,500 on 30th September, 2017.
(iv) Goods costing ₹ 10,000 were taken by the proprietor for his personal use but no entry has been made in the books of account. These goods were purchased paying IGST @ 18%.
Solution:

Question 25.
Following is the Trial Balance of Shri Bansi Lal as on 31st March, 2018. You are required to prepare Final Accounts:

Following adjustments are to be made:
(a) Stock on 31st March, 2018 was valued at ₹ 68,000.
(b) Provision for Doubtful Debts is to be created to the extent of 5% on Debtors.
(c) Depreciate Machinery by 10% and Patents by 20%.
(d) Wages include a sum of ₹ 20,000 spent on the erection of a cycle shed for employees and customers.
(e) Salaries for the month of March, 2018 amounted to ₹ 15,000 were unpaid.
(f) Insurance includes a premium of ₹ 1,700 on a policy expiring on 30th September, 2018.
Solution:

Question 26.
From the following Trial Balance of M/s. Ram Lal and Sons, prepare Trading, Profit and Loss Account for the year ending 31st March, 2018 and a Balance Sheet as on that date:​


Adjustments:
(i) The cost of stock on 31st March, 2018 was ₹ 37,000. However, its market value was ₹ 35,000.
(ii) Wages outstanding were ₹ 6,000 and salaries outstanding were ₹ 5,000 on 31st March, 2018.
(iii) Depreciate Land and Building @ 2\(\frac { 1 }{ 2 }\) %, Plant and Machinery @ 10% p.a. and Furniture @ 15 p.a.
(iv) Purchase includes purchase of machinery for ₹ 10,000 on 1st October, 2017.
(v) Debtors include bad debts of ₹ 2,000. Maintain a provision for doubtful debts @ 10% on Debtors.
Solution:

Question 27.
Following is the Trial Balance of Mr. S. Kapur on 31st March, 2018:​


Taking into account the following adjustments, prepare Trading and Profit and Loss Account and Balance Sheet:
(a) Stock in Hand on 31st March, 2018 is ₹ 1,36,000.
(b) Machinery is to be depreciated @ 10% and patents @ 20%.
(c) Salaries for the month of March, 2018 amounting to ₹ 30,000 were unpaid.
(d) Insurance includes a premium of ₹ 1,700 for the year ending 31st March, 2019.
(e) Wages include a sum of ₹ 40,000 spent on constructing a scooter shed for employees and customers.
(f) Provision for Doubtful Debts is to be created to the extent of 5% on Sundry Debtors.
Solution:

Question 28.
Following is the Trial Balance of Shri Paras on 31st March, 2018:

Following adjustments are made:
(a) Stock on 31st March, 2018 was valued at ₹ 68,000.
(b) Provision for Doubtful Debts is to be made to the extent of 5% on Sundry Debtors.
(c) Depreciate Machinery by 10%, Patents 20% and Building 5%.
(d) Wages include a sum of ₹ 20,000 spent on constructiion of a cycle shed.
(e) Salaries for the months of February and March, 2018 were not paid.
(f) Insurance includes a premium of ₹ 1,700 on a policy expiring on 30th September, 2018.
(g) General Manager is entitled to a commission of 10% on the net profit after charging his commission.
You are required to prepare Final Accounts after giving effects to the adjustments.
Solution:


Note: There’s a misprint in the book. The correct Net Profit should be Rs.1,19,753 and not Rs.1,19,773 as given.

Question 29.
Following is the Trial Balance of Atam Prakash as on 31st March, 2018:

Adjustments:
(i) Stock on 31st March, 2018 was valued at ₹ 5,30,000.
(ii) Salaries have been paid so far for 11 months only.
(iii) Unexpired insurance is ₹ 1,000.
(iv) Commission earned but not yet received amounting to ₹ 1,220 plus IGST @ 12% is to be recorded in books of account.
(v) Provision for Doubtful Debts is to be bought up 3% of Sundry Debtors.
(vi) Manager is to be allowed a commission of 10% on net profits after charging such commission.
(vii) Furniture is depreciated @ 10% p.a.
(viii) Only one-fourth of advertisement expenses are to be written off.
Prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as on that date.
Solution:

Question 30.
Following balances were extracted from the books of Modern Traders on 31st March, 2018:

Prepare Profit and Loss Account for the year ended 31st March, 2018 and the Balance Sheet as at that date giving effect to the following:
(a) Closing Stock was ₹ 1,50,000.
(b) Wages Outstanding were ₹ 5,000.
(c) Provision for Doubtful Debts is to be maintained at 5% of Sundry Debtors.
(d) Depreciate Plant and Machinery by 10% and Furniture by 5% on Straight Line Method.
(e) Sundry Creditors include ₹ 10,000 due to Nayak who is also included in Sundry Debtors at ₹ 15,000.
(f) New furniture for ₹ 12,000 was purchased on 1st April, 2017. Old furniture valued at ₹ 2,000 was exchanged and balance was paid by cheque. Purchase of furniture was recorded at the net value of furniture, i.e., ₹ 10,000. The firm had purchased this furniture paying IGST @ 18%.
(g) A fire occurred on 27th March, 2018 destroying stock costing ₹ 10,000, which were purchased paying CGST and SGST @ 9% each. Insurance company conveyed acceptance of claim of ₹ 7,500 on 10th April, 2018. Final accounts were prepared on 1st July, 2018.
Solution:

Question 31.
On 31st March, 2018 the following Trial Balance was extracted from the books of Mohan:


Prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that date after taking into account the following:
(a) Stock as at 31st March, 2018 was valued at ₹ 70,000.
(b) All debtors are considered good for recovery.
(c) Depreciate Motor Vehicles by 20%.
(d) Bank intimation of customer’s cheque of ₹ 10,000 being dishonoured is not recorded in the books.
(e) Travelling expenses of ₹ 5,000 paid to sales person was wrongly debited to his Personal Account and was included in debtors.
(f) Amount of ₹ 6,000 received from Ronit was credited to his account and was included in creditors. This amount was written off as bad debt in earlier years.
(g) Drawings included an amount of ₹ 2,000 being amount drawn in cash. It was used by Mohan for Purchase of stationery used in business.
Solution:

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TS Grewal Accountancy Class 11 Solutions Chapter 5 Journal are part of TS Grewal Accountancy Class 11 Solutions. Here we have given TS Grewal Accountancy Class 11 Solutions Chapter 5 Journal.

Board	CBSE
Textbook	NCERT
Class	Class 11
Subject	Accountancy
Chapter	Chapter 5
Chapter Name	Journal
Number of Questions Solved	35
Category	TS Grewal Solutions

TS Grewal Accountancy Class 11 Solutions Chapter 5 Journal

Question 1.
Journal
Without Goods and Services Tax (GST)
Following transactions of Ramesh for April,2018 are given below. Journalise them.

Solution:

Question 2.
Journalise the following transactions of Mr. Rahul:

Solution:

Question 3.
Journalise the following transactions in the books of M/s. R.K. & Co.
(i) Purchased goods at list price of ₹ 20,000 from Vishal at 20% trade discount against cheque payment.
(ii) Purchased goods at list price of ₹ 20,000 from Naman at 15% trade discount against cash.
(iii) Purchased goods at list price of ₹ 30,000 from Amrit at 20% trade discount.
(iv) Purchased goods at list price of ₹ 40,000 for ₹ 35,000 for cash.
(v) Goods returned of list price ₹ 10,000 purchased from Amrit.
(vi) Sold goods to Parul at list price of ₹ 40,000 at 10% trade discount against cheque payment.
(vii) Sold goods to Aman at list price of ₹ 30,000 at 10% trade discount against cash.
(viii) Sold goods to Pawan at list price of ₹ 20,000 at 10% trade discount.
(ix) Sold goods to Yamini at list price of ₹ 25,000 for ₹ 23,000.
(x) Sold goods costing ₹ 10,000 at cost plus 20% less 10% trade discount to Bhupesh.
(xi) Sold goods purchased at list price of ₹ 50,000 less 15% trade discount sold at a profit of 25% & 10% trade discount against cheque.
(xii) Aman returned goods of list price of ₹ 10,000 sold to him at 10% trade discount.
Solution:


Working Notes:
1. Calculation of Sales Price
Sales Price = Goods Sold + Cost – trade discount
Sales Price = 10,000 + 20% – 10% = Rs. 10,800
2. Calculation of Purchase and sales Price
Purchase Price = Purchases goods – Trade Discount
Purchase Price = 50,000 – 15% = Rs.42,500
Sales Price = Goods Sold + Profit – trade discount
Sales Price = 42,500 + 25% – 10% = Rs.47,812.50

Question 4.
Journalise the following transactions in the books of Bhushan Agencies:
(i) Received from Bharat cash ₹ 20,000, allowed him discount of ₹ 500.
(ii) Received from Vikas ₹ 35,000 by cheque, allowed him discount of ₹ 750.
(iii) Received from Akhil ₹ 38,000 in settlement of his dues of ₹ 40,000 in cash.
(iv) Received from Amrit ₹ 50,000 by cheque on account against dues of ₹ 60,000.
(v) Paid cash ₹ 40,000 to suresh, availed discount of 2%.
(vi) Paid by cheque ₹ 25,000 to Mehar and settled her dues of ₹ 26,000.
(vii) Paid ₹ 25,000 to Yogesh by cheque on account.
(viii) Purchased goods costing ₹ 1,00,000 against cheque and availed discount of 3%.
(ix) Purchased goods costing ₹ 60,000 from Akash & Co., paid 50% immediately availing 3% discount.
(x) Sold goods of ₹ 30,000 against cheque allowing 2% discount.
(xi) Sold goods of ₹ 60,000 to Vimal received 50% of due amount allowing 2% discount.
Solution:

Question 5.
Journalise the following transactions:

Solution:

Question 6.
Journalise the following entries:
(i) Goods worth ₹ 500 given as charity.
(ii) Sold goods to Mayank of ₹ 1,00,000, payable 25% by cheque at the time of sale and balance after 30 days of sale.
(iii) Received ₹ 975 from Harikrishna in full settlement of his account for 1,000.
(iv) Received a first and final dividend of 60 paise in a rupee from the Official Receiver of Rajan, who owed us ₹ 1,000.
(v) Charged depreciation on plant ₹ 1,000.
(vi) Charge interest on Drawings ₹ 1,500.
(vii) Sold goods costing ₹ 40,000 to Anil for cash at a profit of 25% on cost less 20% trade discount and charged 8% Value Added Tax and paid cartage ₹ 100, which is not to be charged from customer.
Solution:

Question 7.
Journalise the following transaction:

Solution:

Question 8.
With Goods and Services Tax (GST)
Journalise the following transactions of Singh Enterprises, Delhi:

CGST and SGST @ 6% each is levied on Intra-state sale and purchase.
Solution:

Question 9.
Journalise the following transactions of Rakesh Agencies, Delhi (Proprietor Shri Rakesh):

CGST and SGST is levied @ 6% each on intra-state sale and purchase. IGST is levied @12% on inter-state sale and purchase.
Solution:

Question 10.
Journalise the following transactions of Ram Delhi:

CGST and SGST is levied @ 6% each on intra-state sale and purchase. IGST is levied @12% on inter-state sale and purchase.
Solution:

Question 11.
Following transactions of Ramesh Delhi for April, 2018 are given below. Journalise them.

CGST and SGST is levied @ 6% each on intra-state sale and purchase. IGST is levied @12% on inter-state sale and purchase.
Solution:


Note: In transaction dated Apr 28, there is a misprint in the book. The payment of Rs 2,150 is made to Atul and not Shyam.

Question 12.
Journalise the following transactions of Satish, Noida (UP):

CGST and SGST is levied @ 6% each on intra-state sale and purchase. IGST is levied @ 12% on inter-state sale and purchase.
Solution:

Question 13.
Following are the transactions of R.Singh & Co., Kanpur (UP) for the month of July, 2017. You are required to Journalise them:

Solution:

Question 14.
Record the following transactions in the Journal of Ashoka Furniture Traders, Ludhiana (Punjab):

CGST and SGST is levied @ 6% each on intra-state sale and purchase. IGST is levied @ 12% on inter-state sale and purchase.
Solution:

*Some Error in Question. Amount specified is more than actual amount due.

Question 15.
Enter the following transactions in the Journal of Suresh who trades in ready-made garments:


CGST and SGST is levied @ 6% each on intra-state sale and purchase. IGST is levied @ 12% on inter-state sale and purchase.
Solution:

Question 16.
M/s. Auto Aid, Delhi purchased 500 pieces of car horns @ ₹ 200 each less 10% Trade Discount plus IGST @ 12% from M/s Auto Horns, Chandigarh. What is the invoice value?
Solution:

Question 17.
M/s. Vaish Traders, Delhi purchased 500 Parker Pens @ ₹ 200 each less Trade Discount @ 15% from Luxor Pens Ltd., Delhi. CGST and SGST was levied @ 6% each. Further, Cash Discount was allowed @ 5% as the payment was made within specified time. What will be the amount of trade discount and cash discount ?
Solution:

Question 18.
On 1st April, 2018, the position of Rahman was as follows: Cash-in-Hand ₹ 11,200; Cash at Bank ₹ 2,57,600; Bills Receivable ₹ 68,000; Jai Ram (Dr.) ₹ 16,000; Ram Kumar (Dr.) ₹ 48,080; Office Furniture ₹ 52,800; Stock-in-Trade ₹ 4,16,000; Doulat Ram (Cr.) ₹ 1,74,720, Hari Ram (Cr.) ₹ 2,16,960; Bills Payable ₹ 80,000. What was the amount of capital of Rahman on that date? Show the Journal entry to Open his books.
Solution:

Question 19.
On 1st April, 2018, the position of Tendulkar was as follows: Stock-in-Hand ₹ 2,88,000; Bills Payable ₹ 48,000; Cash at Bank ₹ 2,16,000; Plant and Machinery ₹ 1,20,000; Owing by debtors ₹ 60,000; Owing to creditors ₹ 96,000; Investment ₹ 2,40,000; Loan from S.K. Garg ₹ 1,80,000. What was the amount of Tendulkar’s capital on the date? Show an opening Journal entry.
Solution:

Question 20.
M/s. Auto Help, Delhi purchased 500 pieces of motor cycle horns at ₹ 100 each plus IGST @ 12% from M/s G.S., Auto, Ghaziabad, (UP). Trade terms settled were: Trade Discount will be allowed @ 10% and Cash Discount @ 5% if payment is made within 7 days. M/s. Auto Help made the payment after 30 days. Determine the amount of Trade Discount and Cash Discount.
Solution:

Question 21.
Name the accounts to be credited along with the amount for payment to Ajay of ₹ 4,800 by cheque in full settlement of ₹ 5,000.
Solution:

Question 22.
Pass Journal entry for sale of goods by Rahul, Delhi to Anish, Delhi for ₹ 10,000 less 10% Trade Discount and 2% Cash Discount. Assume payment is received at the time of sale. CGST and SGST is levied @ 6% each.
Solution:

Question 23.
Pass Journal entry for purchase of goods by Amrit, Delhi from Ayur Products, Agra, (UP) for ₹ 25,000 less Trade Discount @ 15% plus IGST @ 12%.
Solution:

Question 24.
Pass Journal entry for purchase of goods by Amrit, Delhi from Add Gel Pens, Delhi for ₹ 15,000 less Trade Discount 10% and Cash Discount 3% CGST and SGST is levied @ 6% each. Assume payment is made at the time of purchase.
Solution:

Question 25.
Mittal Cycles purchased 100 cycles from Hero Cycles, Ludhina (Punjab) @ ₹ 1,200 per cycle plus IGST @ 12%. Hero Cycles allowed 10% Trade Discount and 3% Cash Discount if payment is made within 14 days. Mittal Cycles received 10 cycles damaged during transit, which it returned. Mittal Cycles settled the payment in 10 days time.
​Pass Journal entries for the above transactions.
Solution:

Question 26.
Oswal Woollen Mills, Amritsar (Punjab) sold shawls to Gupta Shawls, Jaipur as per details: Sold 100 shawls @ ₹ 200 per shawl on 4th January, 2018, IGST is levied @ 12%. Trade Discount 25% and Cash Discount 5% if full payment is made within 14 days. Gupta Shawls sent 50% of the payment on 14th January, 2018 and balance payment on 10th February,2018. Pass Journal entries.
Solution:

Question 27.
Journalise the following transactions in the books of Ashok:
(i) Received ₹ 11,700 from Hari Krishan in full settlement of his account for ₹ 12,000.
(ii) Received ₹ 11,700 from Shyam on his account fro ₹ 12,000.
(iii) Received a first and final divident of 70 paise in the rupee from the official receiver of Rajagopal who owed us ₹ 7,000.
(iv) Paid ₹ 2,880 to A.K. Mandal in full settlement of his account for ₹ 3,000.
(v) Paid ₹ 2,880 to S.K. Gupta on his account for ₹ 3,000.
Solution:

Question 28.
Journalise the following transactions:

Solution:

Note for Apr 17:
Cheque of Rs 2,940 dishonoured. Bank charged Rs 10 (to be recovered from Shiv and Co.). Total due from Shiv and Co. Rs 2,950. New cheque received for Rs 3,000, so interest charged should be Rs 50 (not Rs 40, as given in the book).

Question 29.
Journalise the following in the books of Amit Saini, Gurugram (Haryana):
(i) Goods of ₹ 5,000 were used by him for domestic purpose.
(ii) ₹ 2,000 due from Sohan became bad debts.
(iii) Goods of ₹ 6,000 were destroyed by fire and were not insured.
(iv) Paid ₹ 4,000 in cash as wages on installation of machine. GST is not to be levied.
(v) Sold goods to Arjun of Delhi of list price ₹ 20,000. Trade discount @ 10% and cash discount of 5% was allowed.
He paid the amount on the same day and availed the cash discount.
(vi) Received cash for a bad debt written off last year ₹ 2,000.
(vii) Goods of ₹ 1,000 given as charity.
(viii) Received ₹ 9,750 from Ramesh in full settlement of his account of ₹ 10,000.
(ix) Paid rent in advance ₹ 4,000.
​CGST and SGST is to be levied on intra-state sale @ 6% each and IGST @ 12% on inter-state sale.
Solution:

Question 30.
Journalise the following transactions in the books of Mohan Singh, Delhi:
(i) Raj of Alwar, Rajasthan who owed Mohan Singh ₹ 25,000 became insolvent and received 60 paise in a rupee as full and final settlement.
(ii) Mohan Singh owes to his landlord ₹ 10,000 as rent.
(iii) Charge depreciation of 10% on furniture costing ₹ 50,000.
(iv) Salaries due to employees ₹ 20,000.
(v) Sold to Sunil goods in cash of ₹ 10,000 less 10% trade discount plus CGST and SGST @ 6% each and received a net of ₹ 8,500.
(vi) Provided interest on capital of ₹ 1,00,000 @ 10% per annum.
(vii) Goods lost in theft – ₹ 5,000, which were purchased paying IGST @ 12% from Alwar, Rajasthan.
Hint:
(vii) Loss of Stock by Theft A/c – ₹ 5,600
To Purchase A/c – ₹ 5,000
To Input IGST A/c – ₹ 600
Solution:

Question 31.
Pass Journal entries in the books of Puneet, Delhi for the following:
(i) Received an order from Karan & Co. for supply of goods of ₹ 50,000.
(ii) Received an order from AK & Co. for goods of ₹ 1,00,000 along with a cheque for ₹ 25,000 as advance.
(iii) Paid to staff ₹ 40,000 against outstanding salary of ₹ 60,000.
(iv) Sold goods to Bharat, Kaithal (Haryana) of ₹ 10,000 plus IGST @ 12% out of which 1/5th were returned being defective.
(v) Cheque of ₹ 20,000 issued by Feroz was dishonoured.
(vi) Received 40 paise in a rupee from Feroz against the above dues.
(vii) Received a cheque of ₹ 25,000 from Mohan after banking hours.
(viii) Purchased goods from Barun of Chandigarh of ₹ 10,000 plus IGST @ 12% and sold them to Arun of Shimla (HP) at ₹ 22,400, including IGST @ 12%.
(ix) Arun returned goods of ₹ 6,720, including IGST which were returned to Barun.
(x) ABC & Co. purchased 10 TV sets @ 20,000 per set and paid IGST @ 12%. It sold all the sets @ 25,000 per set plus CGST and SGST @ 6% each.
(xi) Paid insurance of ₹ 12,000 plus CGST and SGST @ 6% each for a period of one year.
(xii) Sold personal car for ₹ 1,00,000 and invested the amount in the firm.
(xiii) Goods costing ₹ 1,00,000 were destroyed in fire. Insurance company admitted the claim for ₹ 75,000. These goods were purchased within Delhi.
(xiv) Purchased machinery for ₹ 56,000 including IGST of ₹ 6,000 and paid cartage thereon ₹ 5,000 and installation charges ₹10,000.
(xv) Goods costing ₹ 40,000 sold to Mr. X at a profit of 20% on sales less 10% Trade Discount plus CGST and SGST @ 6% each and received a cheque under 2% cash discount.
(xvi) Purchased machinery from New Machinery House for ₹ 50,000 and paid it by means of a bank draft purchased from bank. Paid charges ₹ 500.
Solution:

Question 32.
D.Chadha commenced business on 1st January, 2017. His transactions for the month are given below. Journalise them.

Solution:

Question 33.
Record the following transactions in the Journal of Ashoka Furniture Traders:

Solution:

Question 34.
Journalise the following transactions in the books of Manoj Store:
(i) Purchased goods from Ramesh ₹ 20,000 less Trade Discount at 20% plus IGST @ 12%.
(ii) Sold goods costing ₹ 7,000 to Krishna for ₹ 9,000 plus IGST @ 12%.
(iii) Sold goods for ₹ 10,000 and charged IGST @ 12% against cheque.
(iv) ₹ 5,000 were deposited into Saving Account.
(v) Machinery costing ₹ 4,00,000 for which order was placed earlier paying advance of ₹ 40,000. The balance payment was paid as follows:
(a) An old machine (personal) valued at ₹ 30,000 was given in exchange;
(b) Issued a cheque from his savings account for ₹ 1,30,000; and
(c) Balance by issue cheque from firm’s bank account.
(vi) Paid in cash wages ₹ 2,500 for installation of machine.
Solution:

Note: An old personal machinery in exchange of Rs.30,000 and bank transaction of Rs.1,30,000 from Saving account will increasing the Capital account of proprietor.

Question 35.
Pass the Opening Entry from the following Balance Sheet as at 31st March, 2018 of Vikas:

Solution:

* Capital Account is tally amount of Balancing Figure.

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TS Grewal Accountancy Class 11 Solutions Chapter 9 Bank Reconciliation Statement are part of TS Grewal Accountancy Class 11 Solutions. Here we have given TS Grewal Accountancy Class 11 Solutions Chapter 9 Bank Reconciliation Statement.

Board	CBSE
Textbook	NCERT
Class	Class 11
Subject	Accountancy
Chapter	Chapter 9
Chapter Name	Bank Reconciliation Statement
Number of Questions Solved	38
Category	TS Grewal Solutions

TS Grewal Accountancy Class 11 Solutions Chapter 9 Bank Reconciliation Statement

Question 1.
Prepare Bank Reconciliation Statement from the following:
(i) Debit balance as per the Cash Book. – ₹ 15,000
(ii) Cheques deposited but not cleared. – ₹ 1,000
(iii) Cheques issued but not presented. – ₹ 1,500
(iv) Bank interest. – ₹ 200
Solution:

Question 2.
Prepare Bank Reconciliation Statement from the following information:
Cash at bank as shown by the Cash Book ₹ 75,000. Cheques drawn but not yet presented:
S. Sahai – ₹ 2,000
Man Mohan – ₹ 3,000
Cheques paid into the bank but not yet credited, ₹ 1,900. Bank charges not yet entered in the Cash Book, ₹ 100.
Solution:

Question 3.
On 31st March, 2018, Cash Book showed a balance of ₹ 15,000 as cash at bank, but the Bank Pass Book of the same date showed that cheques for ₹ 1,850, ₹ 1,000 and ₹ 1,750 respectively had not been presented for payment; also cheques amounting to ₹ 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, 2018 was ₹ 72,950. He sent cheques for ₹ 90,075 to his bank for collection but cheques amounted to ₹ 43, 769 were not collected by that date. Out of the cheques issued by him in payment of his debts, cheques for ₹ 29,344 were not presented for payment.
Prepare Bank Reconcillation Statement and determine the balance as shown by his Pass Book.
Solution:

Question 5.
On 31st March, 2018, Cash Book of Mahesh showed debit bank balance of ₹ 75,000. When compared with the Bank Statement, following facts were discovered. On 30th March, two cheques of ₹ 5,000 and ₹ 7,000 were deposited in the bank but were not realised till date. On 28th March, three cheques of ₹ 6,000, ₹ 8,000 and ₹ 12,000 were issued but none of these were presented to the bank for payment. On 31st March, bank credited ₹ 1,250 as interest but this was not recorded in the Cash Book. Similarly, the bank had charged ₹ 150 as bank charges but this was not recorded in the Cash Book.
Bank paid insurance premium of ₹ 5,000 but it was recorded as ₹ 500 in Cash Book. Prepare Bank Reconcilation Statement on 31st March, 2018.
Solution:

Question 6.
Cash Book of a merchant showed bank balance of ₹ 23,000 on 31st March, 2018. On going through the Cash Book, it was found that two cheques for ₹ 5,000 and ₹ 7,000 deposited in the month of March were not credited in the Pass Book till 2nd April, 2018 and three cheques for ₹ 6,000, ₹ 8,000 and ₹ 12,000 issued on 28th March, were not presented for payment till 3rd April, 2018. In addition to this, bank had credited merchant for ₹ 125 as interest and had debited him for ₹ 100 as bank charges for which entries in Cash Book were not recorded. Bank charges of ₹ 500 were reversed by the Bank. Prepare Bank Reconciliation Statement as on 31st March, 2018.
Solution:

Question 7.
On 30th June, 2017, bank column of the Cash Book showed balance of ₹ 12,000 but the Pass Book showed a different balance due to the following reasons:
(i) Cheques paid into the bank ₹ 8,000 but out of these only cheques of ₹ 6,500 credited by bankers.
(ii) The receipt column of the Cash Book undercast by ₹ 200.
(iii) On 29th June, a customer deposited ₹ 3,000 directly in the Bank Account but it was entered in the Pass Book only.
(iv) Cheques of ₹ 9,200 were issued of which ₹ 2,200 were presented for payment on 15th July.
(v) Pass Book shows a credit of ₹ 330 as interest and a debit of ₹ 60 as bank charges.
Prepare Bank Reconciliation Statement as on 30th June, 2017.
Solution:

Question 8.
Cash Book shows a balance of ₹ 12,500. On comparing the Cash Book with the Pass Book, following discrepancies were noted:

Prepare Bank Reconciliation Statement.
Solution:

Question 9.
From the following particulars, prepare Bank Reconciliation Statement as on 31st December, 2008:
(i) Debit balance as per Cash Book ₹ 10,000.
(ii) A cheque for ₹ 500 issued in favour of Karan has not been presented for payment.
(iii) A bill for ₹ 700 retired by bank under a rebate of ₹ 20, the full amount of the bill was credited in the Cash Book.
(iv) A cheque for ₹ 295 deposited in the bank has been dishonoured.
(v) A sum of ₹ 800 deposited in the bank has been credited as ₹ 80 in the Pass Book.
(vi) Payment side of the Cash Book has been undercast by ₹ 200.
(vii) A bill receivable for ₹ 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, 2018, differes from the bank balance of ₹ 23,650 shown by the Cash Book on that date. From a detailed comparison of the entries it is found that:
(i) ₹ 2,860 is entered in the Cash Book as paid into the bank on 31st March, 2018 but not credited by the bank until the following day.
(ii) Bank charges of ₹ 70 on 31st March, 2018 are not entered in the Cash Book.
(iii) A bill for ₹ 5,500 discounted with the bank is entered in the Cash Book without recording the discount charges of ₹ 270.
(iv) Cheques totalling ₹ 16,720 were issued by the company and duly recorded in the Cash Book before 31st March, 2018 but had not been presented at the Bank for payment until after that date.
(v) On 25th March, 2018, a debtor paid ₹ 1,000 into the Company’s Bank in settlement of his account but no entry was made in the Cash Book of the comapny in respect of this.
(vi) No entry has been made in the Cash Book to record the dishonour on 15th March, 2018, of a cheque for ₹ 550 received from Ram Babu.
Prepare a Bank Reconciliation Statement as on 31st March, 2018.
Solution:

Question 11.
Prepare Bank Reconciliation Statement from the following particulars on 31st July, 2017:
(i) Balance as per the Pass Book ₹ 50,000.
(ii) Three cheques for ₹ 6,000, ₹ 3,937 and ₹ 1,525 issued in last week of July, 2017 were presented for payment to the bank in August, 2017.
(iii) Two cheques of ₹ 500 and ₹ 650 sent to the bank for collection were not entered in the Pass Book by 31st July, 2017.
(iv) The bank charged ₹ 460 for its commission and allowed interest of ₹ 100 which were not mentioned in the Bank Column of the Cash Book.
Solution:

Question 12.
Prepare Bank Reconciliation Statement as on 31st March, 2018 from the following particulars:

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 ₹ 6,000 to your credit.
(ii) Before that date, you had issued cheques amounting to ₹ 1,500 of which cheques of ₹ 900 have been presented for payment.
(iii) A cheque of ₹ 800 paid by you into the bank on 29th March, 2011 is not yet credited in pass book.
(iv) There was a credit of ₹ 85 for interest on Current Account in the pass book.
(v) On 31st March, 2011 a cheque for ₹ 510 received by you and was paid into bank but the same was omitted to be entered in cash book.
Solution:

Question 14.
Prepare Bank Reconciliation Statement as on 30th September, 2016 from the following particulars:

Solution:

Question 15.
Bank Statement of a customer shows bank balance of ₹ 62,000 on 31st March, 2018. 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 – ₹ 3,500; Q – ₹ 2,500; R – ₹ 2,000.
(ii) Cheques issued in March were presented in April:
X – ₹ 4.000; Q – ₹ 4,500.
(iii) Cheque for ₹ 1,000 received from a customer entered in the Cash Book but was not banked.
(iv) Pass Book shows a debit of ₹ 1,000 for bank charges and credit of ₹ 2,000 as interest.
(v) Interest on investment ₹ 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, 2018.
Solution:

Question 16.
On 1st January, 2018, Naresh had an overdraft of ₹ 40,000 as shown by his Cash Book in the bank column. Cheques amounting to ₹ 10,000 had been deposited by him but were not collected by the bank by 1st January, 2018. He issued cheques of ₹ 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 ₹ 600 for interest and ₹ 500 for bank charges.
Prepare a Bank Reconciliation Statement.
Solution:

Question 17.
On 31st March 2018, Cash Book of B. Babu showed an overdraft of ₹ 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 ₹ 10,000, ₹ 12,000, ₹ 6,000 and ₹ 8,000. Out of these the cheque for ₹ 6,000 was credited by the bank in April, 2018. Babu had issued on 24th March three cheques for ₹ 15,000, ₹ 12,000 and ₹ 7,000. The first two cheques were prsented to the bank for payment in March, 2018 and the third cheque in April, 2018.
You also find that on 31st March, 2018 the bank had debited Babu’s Account with ₹ 500 for interest and ₹ 20 as charges, but Babu had not recorded these amounts in his books.
Prepare Bank Reconcliation Statement as on 31st March, 2018 and ascertain the balance as per Bank Pass Book.
Solution:

Question 18.
On 31st March, 2018, Cash Book of a merchant showed bank overdraft of ₹ 1,72,985. On comparing the Cash Book with Bank Statement, following discrepancies were noted:
(i) Cheques issued for ₹ 60.000 were not presented in the bank till 7th April, 2018.
(ii) Cheques amounting to ₹ 75.000 were deposited in the bank but were not collected
(iii) A Cheque of ₹ 15,000 received from Mahesh Chand and deposited in the bank was dishonoured but the non-payment advice was not received from the bank till 1st April, 2018.
(iv) ₹ 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 ₹ 1,500 and interest on overdraft 8,500 appeared in the Pass Book but not in the Cash Book.
(vi) Overdraft balance as per Cash Book of ₹ 500 on 28th February, 2018 was wrongly carried forward as debit balance. The error was noted at the time of preparing the Bank Reconciliation Statement as on 31st March, 2018.
Prepare Bank Reconciliation Statement and show what balance the Bank Pass Book would indicate on 31st March, 2018.
Solution:

Overdraft balance as per Cash book of Rs.500 on 28th Feb 2017 was wrongly carried forward as debit balance, so to correct the error cash book by double amount of shown minus side (500 + 500 = 1000).

Question 19.
Tiwari and Sons find that that the bank balance shown by their Cash Book on 31st March, 2018 is ₹ 40,500 (credit) but the Pass Book shows a difference due to the following reasons:
(i) A cheque for ₹ 5,000 drawn in favor of Manohar has not yet been presented for payment.
(ii) A post-dated cheque for ₹ 900 has been debited in the bank column of the Cash Book but it could not have been presented in any case.
(iii) Cheques totalling ₹ 10,200 deposited with the bank have not yet been collected and a cheque for ₹ 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 Bank Reconcilation Statement and find out the balance as per Pass Book.
Solution:

Question 20.
Prepare Bank Reconciliation Statement from the following:
On 31st March, 2018, 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 ₹ 540 issued to Mohan has not been presented for payment.
(ii) A post-dated cheque for ₹ 100 has been debited in the bank column of the Cash Book but under no circumstances was it possible to prove it.
(iii) Four cheque for ₹ 1,200 sent to the bank have not been collected so far. A cheque of ₹ 400 deposited in the bank has been dishonoured.
(iv) As per instructions, the bank paid ₹ 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 ₹ 15 in respect of bank charges and a credit of ₹ 25 for interest on Current Account but no record exists in the Cash Book.
(vi) Cheque of ₹ 5,000 dated 15th April, 2018 issued to M & Co. was dishonoured being post dated. It was also not recorded in the books of account yet.
Solution:

Note: Point (vi) is Cheque of Rs.5,000 dated 15th April 2018 issued to M and Co. dishonoured will have no any impact as this statement is as on 31st March 2018.

Question 21.
From the following particulars of a trader, prepare a Bank Reconcilaton Statement as on 31st March, 2018.
(i) Bank overdraft as per Cash Book ₹ 52,100.
(ii) During the month, the total amount of cheques for ₹ 94,400 were deposited into the bank but of these, one cheque for ₹ 11,160 has been entered into the Pass Book on 5th April.
(iii) During the month, cheques for ₹ 89,580 were drawn in favour of creditors. Of them one creditor for ₹ 38,580 encashed his cheque on 7th April whereas another for ₹ 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 bank ₹ 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 ₹ 120 as bank charges and credited the same for ₹ 180 as interest.
(vii) Cash deposit of ₹ 5,780 in bank was recorded as ₹ 7,580. The error was rectified by the Bank before 31st March, 2018.
Solution:

Note: Point (vii) is Cash deposit of Rs.5,780 was recorded as Rs.7,580 will have no affect on the bank statement as error in recording cash deposit entry already rectified.

Question 22.
Prepare Bank Reconciliation Statement from the following particulars as on 31st March, 2018, when Pass Book shows a debit balance of ₹ 2,500:
(i) Cheque issued for ₹ 5,000 but up to 31st March, 2018 only ₹ 3,000 could be cleared.
(ii) Cheques issued for ₹ 1,000 but omitted to be recorded in the Cash Book.
(iii) Cheques deposited for ₹ 5,500 but cheques for ₹ 500 were collected on 4th April 2018.
(iv) A discounted Bill of Exchange dishonoured ₹ 1,000.
(v) A cheque of ₹ 500 debited in Cash Book but omitted to be banked.
(vi) Interest allowed by bank ₹ 200 but no entry was passed in the Cash Book.
Solution:

Question 23.
From the following information, prepare Bank Reconciliations Statement as on 31st March, 2018:

Solution:

Question 24.
On 31st March, 2018, Bank Pass Book of Naresh & Co. showed an overdraft of ₹ 10,700. From the following particulars, prepare Bank Reconciliation Statement:
(i) Cheques issued before 31st March, 2018 but presented for payment after that date amounted to ₹ 900.
(ii) Cheques paid into the bank but not collected and credited unitl 31st March, 2018 amounted to ₹ 2,200.
(iii) Interest on overdraft amounting to ₹ 1,200 did not appear in the Cash Book.
(iii) ₹ 5,000 being interest on investments collected by the bank and credited in the Pass Book were not shown in the Cash Book.
(iv) Bank charges of ₹ 50 were not entered in the Cash Book.
(v) ₹ 800 in respect of dishonoured cheque were intered in the Pass Book but not in the Cash Book.
Solution:

Question 25.
On 31st March, 2018, Pass Book of Shri Bhama Shah shows debit balance of ₹ 10,000. From the following particulars, prepare Bank Reconcilation Statement.
(i) Cheques amounting to ₹ 8,000 drawn on 25th March of which cheques of ₹ 5,000 cashed in April, 2018.
(ii) Cheques paid into bank for collection of ₹ 5,000 but cheques of ₹ 2,200 could only be collected in March 2018.
(iii) Bank charges ₹ 25 and dividend of ₹ 350 on investemnt collected by bank could not be shown in the Cash Book.
(iv) A cheque of ₹ 600 debited in the Cash Book omitted to be banked.
(v) Bill of ₹ 5,000 discounted with Bank but was not recorded in the Cash Book.
Solution:

Question 26.
On checking the Bank Pass Book it was found that it showed an overdraft of ₹ 5,220 as on 31st March, 2018, while as per Ledger it was different. The following differences were noted:
(i) Cheques deposited but not yet credited by the bank ₹ 6,000.
(ii) Cheques dishonoured and debited by the bank but not given effect to it in the Ledger ₹ 800.
(iii) Bank charges debited by the bank but Debit Memo not received from the bank ₹ 50.
(iv) Interest on overdraft excess credited in the Ledger ₹ 200.
(v) Wrongly credited by the bank to account, deposit of some other party ₹ 900.
(vi) Cheques issued but not presented for payment ₹ 400.
Solution:

Question 27.
Prepare Bank Reconciliation Statement from the following particulars as on 31st March, 2018 when Pass Book shows a debit balance of ₹ 2,500:
(i) Cheque issued for ₹ 5,000 but up to 31st March, 2018 only ₹ 3,000 could be cleared.
(ii) Cheques deposited for ₹ 5,500 but cheques of ₹ 500 were collected on 10th April, 2018.
(iii) A discounted Bill of Exchange dishonoured ₹ 2,000.
(iv) A cheque of ₹ 300 debited in Cash Book but omitted to be banked.
(v) Interest allowed by bank ₹ 400 but no entry was passed in the Cash Book.
Solution:

Question 28.
From the following particulars, you are required to ascertain the bank balance as would appear in the Cash Book of Ramesh as on 31st October, 2017:
(i) Bank Pass Book showed an overdraft of ₹ 16,500 on 31st October.
(ii) Interest of ₹ 1,250 on overdraft up to 31st October, 2017 has been debited in the Bank Pass Book but it has not been entered in the Cash Book.
(iii) Bank charges debited in the Bank Pass Book amounted to ₹ 35.
(iv) Cheques issued prior to 31st October, 2017 but not presented till that date, amounted of ₹ 11,500.
(v) Cheques paid into bank before 31st October, but not collected and credited up to that date, were for ₹ 2,500.
(vi) Intrest on investment collected by the bankers and credited in the Bank Pass Book amounted to ₹ 1,800.
Solution:

Question 29.
From the following information supplied by Mr. D.H., prepare his Bank Reconciliation Statement as on 31st March, 2018:
(i) Bank overdraft as per Pass Book. – ₹ 33,000
(ii) Cheques issued but not presented for payment. – ₹ 17,500
(iii) Cheques deposited but not collected. – ₹ 21,000
(iv) Cheques recorded in the Cash Book but not sent to the bank for collection. – ₹ 4,000
(v) Payment received from customers directly by the bank. – ₹ 7,000
(vi) Bank charges debited in the Pass Book. – ₹ 40
(vii) Premium of Life Insurance Policy of Mr. D.H. paid by the bank on standing instructions. – ₹ 360
(viii) A bill for ₹ 6,000 dishonoured on 30th March, 2018 and bank paid Noting charges. This bill was discounted on 30th January, 2018. – ₹ 20
Solution:

Question 30.
Prepare Bank Reconciliation Statement as on 31st March, 2018 from the following particulars:
(i) R’s overdraft as per Pass Book ₹ 12,000 as on 31st March.
(ii) On 30th March, cheques had been issued for ₹ 70,000 of which cheques amounting to ₹ 3,000 only had been encashed up to 31st March.
(iii) Cheques amounting to ₹ 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 ₹ 500 as interest on overdraft and the intimation of which has been received on 2nd April, 2018.
(v) Bank Pass Book shows credit for ₹ 1,000 representing ₹ 400 paid by debtor of R direct into the bank and ₹ 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 ₹ 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 31.
Prepare Bank Reconcilation Statement form the following particulars and show balance as per Cash Book:
(i) Balance as per Pass Book on 31st March, 2018 overdrawn ₹ 10,000.
(ii) Cheques drawn in the last week of March, 2018 but not cleared till 3rd April, 2018 ₹ 20,000.
(iii) Interst on bank overdraft not entered in the Cash Book ₹ 1,500.
(iv) Cheques of ₹ 20,000 deposited in the bank in March, 2018 but not collected and credited till 3rd April, 2018.
(v) ₹ 100 Insurance premium paid by the bank under a standing order has not been entered in the Cash Book.
(iv) A draft of ₹ 10,000 favouring Atul & Co. was issued by the bank charging commission of ₹ 200. However, in the Cash Book entry was passed by ₹ 10,000.
Solution:

Question 32.
Bank Pass Book of Mr. X showed an overdraft of ₹ 33,575 on 31st March 2018. On going through the Pass Book the accountant found the following:
(i) A cheque of ₹ 1,080 credited in the Pass Book on 28th March, being dishonoured is debited again in the Pass Book on 1st April, 2018. There was no entry in the Cash Book about the dishonour of the cheque until 15th April.
(ii) Bankers had credited his account with ₹ 2,800 for interst collected by them on his behalf but the same had not been entered in his Cash Book.
(iii) Out of ₹ 20,500 paid by Mr. X in cash and by cheques on 31st March, cheque amounting to ₹ 7,500 were collected on 7th April.
(iv) Out of chequs amounting to ₹ 7,800 drawn by him on 27th March, a cheque for ₹ 2,500 was enchased on 3rd April.
(v) A credit wrongly given by bank of ₹ 5,500 was reveresed by it on 6th April, 2018.
Prepare Bank Reconcilation Statement on 31st March, 2018.
Solution:

Note: Point (i) as cheque is dishonoured on 1st April 2018 i.e. after the period for which Balance as per pass Book is given. Thus, no effect is bank statement.

Question 33.
From the follwoing information supplied by Sanjay, prepare his Bank Reconcilation Statement as on 31st March, 2018:
(i) Bank overdraft as per Pass Book. – ₹ 16,500
(ii) Cheques issued but not presented for payment. – ₹ 8,750
(iii) Cheques deposited with the Bank but not collected. – ₹ 10,500
(iv) Cheques recorded in the Cash Book but not sent to the bank for collection. – ₹ 2,000
(v) Payments received from customers directly by the bank. – ₹ 3,500
(vi) Bank charges debited in the Pass Book. – ₹ 200
(vii) Premium on Life Policy of Sanjay paid by the bank on standing advice. – ₹ 1,980
(viii) A bill for ₹ 3,000 (discounted with the bank in February) dishonoured on 31st March, 2018 and noting charges paid by the bank. – ₹ 100
Solution:

Question 34.
From the following information, prepare Bank Reconciliation Statement as on 31st March, 2018:
(i) Debit balance shown by Pass Book ₹ 17,800.
(ii) Cheque of ₹ 21,600 were issued in the last week of March but only cheques of ₹ 14,800 were presented for payment.
(iii) Cheques of ₹ 10,750 were presnted to the bank. Out of them, a cheque of ₹ 4,200 was credited in the first week of April, 2018.
(iv) A cheque of ₹ 1,200 was debited in the cash book but was not presented in the bank.
(v) Insurance premium paid by bank ₹ 1,450.
(vi) A bill of exchange of ₹ 6,200 which disocunted with the same was dishonoured but no entry was made in the Cash Book.
(vii) Bank chearges, charged by the bank ₹ 350.
Solution:

Question 35.
Mohan & Co., have two bank accounts – Account No. I and Account No. II. From the following particulars relating to Account No. I, find out the balance on that account as on 31st March, 2018 according to the Cash Book (Bank Column) of the firm:

Solution:

Question 36.
From the following particulars, ascertain the bank balance as per Pass Book as on 31st March, 2018 (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, 2018 ₹ 40,000.
(ii) Cheques issued but not encaashed up to 31st March, 2018 amounted to ₹ 10,000.
(iii) Cheques paid into the bank, but not cleared up to 31st March, 2018 amounted to ₹ 15,000.
(iv) Interest on investments collected by the bank but not entered in the Cash Book ₹ 500.
(v) Cheques deposited in the bank but not entered in the Cash Book ₹ 12,500.
(vi) Bank charges debited in the Pass Book but not entered in the Cash Book ₹ 100.
Solution:

Question 37.
From the folowing particulars, find out corrected bank balance as per Cash Book and thereafter proepare a Bank Reconcilation Statement as on 31st March, 2018 of a sole proprietor:

Solution:

Question 38.
From the following extracts from the Cash Book and the Pass Book for the month of January, 2018, prepare Bank Reconcilation Statement:


Solution:

Note: In Cash Book 10th Jan 2018 cheque received from G. Basu and Co is debited with Rs.1,000 and 14 Jan 2018 dishonour entry is reversed by crediting G. Basu and Co. with Rs.1,000. Therefore no effect is bank statement.

We hope the TS Grewal Accountancy Class 11 Solutions Chapter 9 Bank Reconciliation Statement help you. If you have any query regarding TS Grewal Accountancy Class 11 Solutions Chapter 9 Bank Reconciliation Statement, drop a comment below and we will get back to you at the earliest.

TS Grewal Accountancy Class 11 Solutions Chapter 7 Special Purpose Books I Cash Book are part of TS Grewal Accountancy Class 11 Solutions. Here we have given TS Grewal Accountancy Class 11 Solutions Chapter 7 Special Purpose Books I Cash Book.

Board	CBSE
Textbook	NCERT
Class	Class 11
Subject	Accountancy
Chapter	Chapter 7
Chapter Name	Special Purpose Books I Cash Book
Number of Questions Solved	19
Category	TS Grewal Solutions

TS Grewal Accountancy Class 11 Solutions Chapter 7 Special Purpose Books I Cash Book

Question 1.
Without Goods and Services Tax (GST)
Enter the following transactions of Mr. Ripinder, Delhi in a Single Column Cash Book and balance it:

Solution:

Question 2.
Prepare Simple Cash Book from the following transactions of Mr. Suresh, Delhi:

Solution:

Question 3.
With Goods and Services Tax (GST)
Prepare Simple Cash book of Sri Gopal of Amritsar from the following transactions:​

Solution:

Question 4.
Prepare Simple Cash Book from the following transactions of Simran, Delhi:

Solution:

Question 5.
From the following prepare Single Column Cash Book of Suresh, Chennai and post them into ledger accounts:

Solution:

Question 6.
Without Goods and Services Tax (GST)
​Record the following transactions in Double Columns Cash Book and balance the book on 31st March, 2018:

Solution:

Question 7.
Enter the following transactions in the Double Column Cash Book of M/s. Gupta Store:

Solution:

Question 8.
Prepare Two-column Cash Book of Bimal, Lucknow from the following transactions:

Solution:

Question 9.
Prepare Two-column Cash Book from the following transactions of Mani, Kochi;

Solution:

Question 10.
Prepare Two-column Cash Book of Vinod, Delhi from the following transactions:

Solution:

Question 11.
Enter the following transactions in the Cash Book of Chandrika of Chandigarh:

Solution:

Question 12.
Enter the following transactions in Two-column Cash Book of Reema, Chandigarh and find out cash and bank balances:

Solution:

Question 13.
Write the following transactions in the Cash Book of Premium Stores, Kolkata (Proprietor Amrit Kumar):

Solution:

Question 14.
Record the following transactions in Two-column Cash Book of Ripple, Delhi:

Solution:

Question 15.
Enter the following transactions in Two-column Cash Book of Gaurav, Delhi:


Solution:

Question 16.
From the following information, prepare an Analytical Petty Cash Book:

Solution:

Question 17.
The following transactions took place during the week ended 28th May, 2018. How will you record them in the Petty Cash Book which was maintained with a weekly ‘float&’ of ₹ 3,000?

Solution:

Question 18.
Sri R maintains a Columnar Petty Cash Book on the Imprest System. The imprest amount is ₹ 5,000. From the following information, show how his Petty Cash Book would appear for the week ended 12th September, 2017:

Solution:

Question 19.
With Goods and Services Tax (GST)
A Petty Cashier in a firm received ₹15,000 as the petty cash imprest on 4th June, 2017. During the week, his expenses were as follows:

Write up the Analytical Petty Cash Book and draft the necessary Journal entries for the payments made.
Solution:

We hope the TS Grewal Accountancy Class 11 Solutions Chapter 7 Special Purpose Books I Cash Book help you. If you have any query regarding TS Grewal Accountancy Class 11 Solutions Chapter 7 Special Purpose Books I Cash Book, drop a comment below and we will get back to you at the earliest.

TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship are part of TS Grewal Accountancy Class 11 Solutions. Here we have given TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship.

Board	CBSE
Textbook	NCERT
Class	Class 11
Subject	Accountancy
Chapter	Chapter 15
Chapter Name	Financial Statements of Sole Proprietorship
Number of Questions Solved	29
Category	TS Grewal Solutions

TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship

Question 1.
State whether the following expenses are capital or revenue in nature:
(i) Expenses on whitewashing and painting of a building purchased to make it ready for use.
(ii) ₹ 10,000 spent on construction platform for a new machine.
(iii) Repair expenses of ₹ 25,000 incurred for whitewashing of factory building.
(iv) Purchased a new car.
Solution:

Expenditure	Reason
(i) Capital Expenditure	Paid to make an asset ready to use
(ii) Capital Expenditure	Paid to make an asset ready to use
(iii) Revenue Expenditure	Made for the maintenance of asset
(iv) Revenue Expenditure	Part of normal operating cost
(v) Capital Expenditure	Used in business for a number of years

Question 2.
State with reasons whether the following are Capital or Revenue Expenses:
(i) Excise duty paid on purchase of new machine.
(ii) Wages paid to install a machine.
(iii) Repairs carried out on existing car.
(iv) Office block of building repainted for ₹ 50,000.
(v) Paid telephone bill ₹ 2,500.
Solution:

Expenditure	Reason
(i) Capital Expenditure	Paid for the acquisition of new asset
(ii) Capital Expenditure	Paid to make the asset ready to use
(iii) Revenue Expenditure	Paid for the running and maintenance of car
(iv) Revenue Expenditure	Paid for the maintenance of Building
(v) Revenue Expenditure	Part of normal operating cost

Question 3.
From the following information determine Gross Profit for the year ended 31st March, 2018.

Solution:
Gross Profit = Sales + Closing Stock – (Opening Stock + Goods Purchased + Freight and Packing)
= 1,90,000 + 30,000 – (25,000 +1,40,000 + 10,000)
= 2,20,000 – 1,75,000
= Rs. 45,000
Note: Packing Expenses on sales (Rs.6,000) is not a Direct Expense. Thus, it not considered while computing the amount of Gross Profit.

Question 4.
Calculate Closing Stock from the following details:

Solution:
Gross Profit on cost = 33\(\frac { 1 }{ 3 }\) %.
Cost = \(\frac { 1 }{ 3 }\)rd.
Gross Profit on sales = \(\frac { 1 }{ 4 }\)th
And, Sales = Cash Sales + Credit Sales = 60,000+40,000 = Rs.1,00,000
So, Gross Profit = 1,00,000 x \(\frac { 1 }{ 4 }\) = Rs.25,000
Cost of Goods Sold = Sales – Gross Profit = 1,00,000 – 25,000 = Rs.75,000
Cost of Goods Sold = Opening Stock + Purchases – Closing Stock
75,000 = 20,000 + 70,000 – Closing Stock
Closing Stock = Rs.15,000

Question 5.
Prepare Trading Account from the transactions givne below:

Solution:

Question 6.
Ascertain Gross Profit the following:

Solution:

Note: Carriage on Sales and Office Rent are not a Direct Expense. Thus, it is not considered while computing the amount of Gross Profit.

Question 7.
From the following information prepare Trading Account for the year ended 31st March, 2018:

Net Realisable Value (Market Value) of stock as on 31st March, 2018 was ₹ 1,20,000.
Solution:

Note: According to the Principle of Conservatism, closing stock is valued at Cost or Market Price, whichever is less. Hence, closing stock is valued at Market Price (i.e., Rs.1,20,000)

Question 8.
From the following information, prepare Trading Account for the year ended 31st March, 2018:
Adjusted Purchases ₹ 6,60,000; Sales ₹ 7,44,000; Closing Stock ₹ 50,400; Freight and Carriage Inwards ₹ 3,600; Wages ₹ 6,000; Freight and Cartage Outwards ₹ 2,000.
Solution:

Note :
1. Freight and Carriage Outwards are not a Direct Expense. Thus, it is not recorded in the trading Account.
2. Adjusted Purchases = Opening Stock + Net Purchases – Closing Stock
Therefore, Closing Stock (Rs.50,400) is not considered while preparing Trading Account.

Question 9.
Following balances appear in the Trail Balance of a firm as on 31st March, 2018:

Prepare Trading Account of the firm.
Solution:

Note: Freight Outwards are not a Direct Expense. Thus, it is not recorded in the Trading Account.

Question 10.
From the following information, prepare Trading account for the year ended 31st March, 2018:
Adjusted Purchases ₹ 5,50,000; Sales ₹ 6,25,000; Freight and Carriage Inwards ₹ 3,000; Wages ₹ 7,000; Freight and Cartage Outwards ₹ 2,500; Closing Stock ₹ 50,000.
Solution:

Note :
1. Freight and Carriage Outwards are not a Direct Expense. Thus, it is not recorded in the Trading Account.
2. Adjusted Purchases = Opening Stock + Net Purchases – Closing Stock
Therefore, Closing Stock (Rs.50,000) is not considered while preparing Trading Account.

Question 11.
From the following figures, calculate Operating Profit:

Solution:
Calculation of Operating Profit
Operating Profit = Net Profit – Rent Received – Gain of sales of Machine + Interest on Loan + Donation
= 1,00,000 – 10,000 – 15,000 + 20,000 + 2,000
= Rs.97,000
Operating Profit = Rs.97,000

Question 12.
From the following, prepare Profit and Loss Account of Sohan Lal as it would appear in the 1st year that ended 31st March, 2018:

The Gross Profit was 45% of sales, which amounted to ₹ 6,50,000.
Solution:

Question 13.
From the following information, prepare Profit and Loss Account for the year ended 31st March, 2018:

Solution:

Question 14.
From the following particular, prepare Balance Sheet as at 31st March, 2018:

Solution:

Question 15.
From the following information, prepare Balance Sheet of a trader as at 31st March, 2018 arranging the assets and liabilities-
(i) in order of permanence and
(ii) in order of liquidity:

Solution:

Question 16.
From the Balance Sheet given below, calculate:
(i) Fixed Assets
(ii) Current Assets
(iii) Current Liabilities
(iv) Working Capital

Solution:
i. Calculation of Fixed Asset
Fixed Assets = Land + Plant + Furniture + Goodwill = 20,000 + 32,000 + 8,000 + 20,000 = Rs.80,000
ii. Calculation of Current Assets
Current Assets = Stock + Debtors + Prepaid Expenses = 48,000 + 36,000 + 400 = Rs.84,400
iii. Calculation of Current Liabilities
Current Liabilities = Creditors + Expenses Accrued + Bank Overdraft + Interest on Loan = 42,000 + 3,200 + 4,800 + 1,000 = Rs. 51,000
iv. Calculation of Working Capital
Working Capital = Current Assets – Current Liabilities = 84,400 – 51,000 = Rs.33,400

Question 17.
Prepare Trading and Profit and Loss Account and Balance Sheet of Jagat Shah as at 31st March, 2018 from the following balances:

The Closing Stock was valued at ₹ 2,00,000.
Solution:

Question 18.
From the following balances, prepare Trading and Profit and Loss Account and Balance Sheet:

Closing Stock was valued at ₹ 30,000.
Solution:

Question 19.
The following are the balances as on 31st March, 2018 extracted from the books of Dass:

The stock on 31st March, 2018 was valued at ₹ 2,40,000.
You are required to prepare Trading Account, Profit and Loss Account and Balance Sheet as at 31st March, 2018.
Solution:

Question 20.
From the following balances of Anand, prepare Trading Account, Profit and Loss Account and Balance Sheet as at 31st March, 2018:

Value of goods on hand (31st March, 2018) was ₹ 1,43,000.
Solution:

Question 21.
From the following balances, prepare Final Accounts of M./s. Raja & Sons for the year ended 31st March, 2018:
Salary ₹ 5,400; Insurance ₹ 2,500; Cash ₹ 400; Purchases ₹ 84,170; Rent Received ₹ 3,150; Drawings ₹ 2,100; Bills Payable ₹ 3,900; Debtors ₹ 38,080; Stock (1st April, 2017) ₹ 29,500; Bank Overdraft ₹ 9,700; Carriage ₹ 2,200; Creditors ₹ 4,200; Trade Expenses ₹ 4,900; Sales Return ₹ 4,700; Machinery ₹ 12,000; Wages ₹ 45,000; Sales ₹ 1,47,200; Purchases Return ₹ 3,900; Capital ₹ 58,900; Closing Stock (31st March, 2018) ₹ 36,200.
Solution:

Question 22.
From the following balances, prepare Final Accounts of M./s. Mangal & Sons for the year ended 31st March, 2018:
Opening Stock ₹ 12,500; Bills Receivable ₹ 2,000; Sales ₹ 70,000; Purchases ₹ 37,500; Creditors ₹ 20,000; Salaries ₹ 3,850; Insurance ₹ 200; Debtors ₹ 32,500; Carriage ₹ 1,450; Commission ₹ 750; Interest ₹ 900; Printing ₹ 250; Bills Payable ₹ 3,150; Returns In ₹ 1,300; Returns Out ₹ 500; Bank ₹ 5,250; Rent and Taxes ₹ 1,300; Furniture ₹ 1,000; Capital ₹ 7,100; Stock on 31st March, 2018 ₹ 15,000.
Solution:

Question 23.
From the following balances, prepare Trading and Profit and Loss Account and the Balance Sheet:

Closing Stock was of ₹ 70,000 but its net realisable value was estimated at ₹ 60,000.
Solution:

Note: According to the Principle of Conservatism, closing stock is valued as whichever is less. Hence, closing stock is valued at (i.e., Rs.60,000)

Question 24.
From the following balances taken from the books of Hari & Co., prepare Trading and Profit and Loss Account for the year ended 31st March, 2018
and Balance Sheet as at that date:

Closing Stock was valued at ₹ 1,82,100.
Solution:

Question 25.
From the following balances, as on 31st March, 2018, prepare Trading and Profit and Loss Account and Balance Sheet:

Closing Stock on 31st March, 2018 was valued at ₹ 14,500.
Solution:

Question 26.
Trial Balance of Chatter Sen on 31st March, 2018 revealed the following balances:

Stock on 31st March, 2018 was valued at ₹ 35,000. Prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at the date.
Solution:

Question 27.
Following Trial Balance is extracted from the books of a merchant on 31st March, 2018:

Stock in Hand on 31st March, 2018 was valued at ₹ 32,500.
From the above, prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that date.
Solution:

Question 28.
The following balances were extracted from the books of Harish Chandra on 31st March, 2018:

Stock on 31st March, 2018 was valued at ₹ 2,35,000.
Prepare final accounts for the year ended 31st March, 2018.
Solution:


Setting-off GST:
Input CGST + Input SGST – Output IGST = 15,000 + 15,000 – 30,000 = NIL

Question 29.
From the following Trial Balance and additional information of Mr. Gaurav, a proprietor, prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Seet as at that date:

Closing Stock at cost ₹ 1,00,000 but its market value is ₹ 88,500.
Solution:

We hope the TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship help you. If you have any query regarding TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship, drop a comment below and we will get back to you at the earliest.

TS Grewal Accountancy Class 11 Solutions Chapter 1 Basic Accounting Terms are part of TS Grewal Accountancy Class 11 Solutions. Here we have given TS Grewal Accountancy Class 11 Solutions Chapter 1 Basic Accounting Terms.

Board	CBSE
Textbook	NCERT
Class	Class 11
Subject	Accountancy
Chapter	Chapter 1
Chapter Name	Basic Accounting Terms
Number of Questions Solved	1
Category	TS Grewal Solutions

TS Grewal Accountancy Class 11 Solutions Chapter 1 Basic Accounting Terms

Question 1.
Mr. Gopal started business for buying and selling of readymade garments with ₹ 8,00,000 as an initial investments. Out of this he paid ₹ 4,00,000 for the purchase of garments and ₹ 50,000 for furniture and ₹ 50,000 for computers and the remaining amount was deposited into the bank. He sold some of the ladies and kids garments for ₹ 3,00,000 for cash and some garments for ₹ 1,50,000 on credit to Mr. Rajesh.

Subsequently, he bought men’s garments of ₹ 2,00,000 from Mr.Satish. In the first week of the next month, a fire broke out in his office and stock of garments worth ₹ 1,00,000 was destroyed. Later on, some garments which cost ₹ 1,20,000 were sold for ₹ 1,30,000. Expenses paid during the same period were ₹ 15,000. Mr. Gopal withdrew ₹ 20,000 from business for his domestic use.
From the above, answer the following:
(i) What is the amount of capital with which Mr. Gopal started the business ?
(ii) What fixed assets did he buy?
(iii) What is the value of goods purchased?
(iv) Who is the creditor and state the amount payable to him?
(v) Who is the debtor and what is the amount receivable from him?
(vi) What is the total amount of expenses?
(vii) What is the amount of drawings of Mr. Gopal?
Solution:
(i) Initial capital introduced by Mr. Gopal for starting the business of “Readymade Garments” is Rs.8,00,000.
(ii) He purchased two Fixed Assets i.e., Furniture and Computer. Therefore,
Total Fixed Assets bought by him = Furniture + Computer = Rs.50,000 + Rs.50,000 = Rs.1,00,000
(iii) Value of the goods purchased by Mr. Gopal (Proprietor) = Purchase of Garments + Purchase of Men’s Garments
= 4,00,000 + 2,00,000 = Rs.6,00,000

(iv) The creditor of the business is Mr. Satish with Rs.2,00,000 being payable to him.
(v) The debtor of the business is Mr. Rajesh with Rs.1,50,000 being the amount to be received from him.
(vi) Total amount of expenses is Rs.15,000. (note)
(vii) The amount of drawings of Mr. Gopal is Rs.20,000.
Note: As per this Question correct answer is (vi) Total amount of expenses is Rs.15,000. While, according to the book solution is (vi) Total amount of expenses is Rs.6,15,000.

We hope the TS Grewal Accountancy Class 11 Solutions Chapter 1 Basic Accounting Terms help you. If you have any query regarding TS Grewal Accountancy Class 11 Solutions Chapter 1 Basic Accounting Terms, drop a comment below and we will get back to you at the earliest.

TS Grewal Solutions Class 11

TS Grewal Accountancy Class 11 Solutions Chapter 2 Accounting Equation are part of TS Grewal Accountancy Class 11 Solutions. Here we have given TS Grewal Accountancy Class 11 Solutions Chapter 2 Accounting Equation.

Board	CBSE
Textbook	NCERT
Class	Class 11
Subject	Accountancy
Chapter	Chapter 2
Chapter Name	Accounting Equation
Number of Questions Solved	29
Category	TS Grewal Solutions

TS Grewal Accountancy Class 11 Solutions Chapter 2 Accounting Equation

Question 1.
What will be effect of the following on the Accounting Equation?
(i) Started business with cash ₹ 45,000
(ii) Opened a Bank Account with a deposit of ₹ 4,500
(iii) Bought goods from M/s. Sun & Co. for ₹ 11,200
Solution:

Question 2.
Show the Accounting Equation for the following transactions:

Solution:

 

Question 3.
Show the effect of the following transactions on the Accounting Equation:
(i) Started business with cash ₹ 50,000.
(ii) Salaries paid ₹ 2,000.
(iii) Wages Outstanding ₹ 200.
(iv) Interest due but not paid ₹ 100.
(v) Rent paid in advance ₹ 150.
Solution:

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

 

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

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

 

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

Question 8.
Develop an Accounting Equation from the following transactions:

Solution:

 

Question 9.
Prepare an Accounting Equation on the basis of the following transactions:
(i) Started business with Cash ₹ 70,000
(ii) Credit purchase of goods ₹ 18,000
(iii) Payment made to creditor ₹ 17,500 in full settlement
(iv) Purchase of Machinery for Cash ₹ 20,000
(v) Depreciation on Machinery ₹ 2,000
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 ₹ 60,000.
(ii) Paid Rent in Advance ₹ 500.
(iii) Purchased goods for Cash ₹ 30,000 and Credit ₹ 20,000.
(iv) Sold goods for Cash ₹ 30,000 Costing ₹ 20,000.
(v) Paid Salary ₹ 500 and Salary Outstanding being ₹ 100.
(vi) Bought motorcycle for personal use ₹ 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 ₹ 60,000
(ii) Rent Received ₹ 2,000
(iii) Accrued Interest ₹ 500
(iv) Commission received in advance ₹ 1,000
(v) Amount withdrawn ₹ 5,000
Solution:

Question 12.
Prove that the Accounting Equation is satisfied in all the following transactions of Sameer Goel:
(i) Started business with cash ₹ 10,000.
(ii) Paid rent in Advance ₹ 300.
(iii) Purchased goods for cash ₹ 5,000 and credit ₹ 2,000.
(iv) Sold goods for cash ₹ 8,000 costing ₹ 4,000.
(v) Paid salary ₹ 450 and salary outstanding being ₹100.
(vi) Bought motorcycle for personal use ₹ 3,000.
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 transactions in an accounting year:
(i) Commenced business with cash ₹ 50,000.
(ii) Paid in to bank ₹ 10,000.
(iii) Purchased goods for Cash ₹ 20,000 and Credit ₹30,000.
(iv) Sold goods for Cash ₹ 40,000 Costing ₹ 30,000.
(v) Rent paid ₹ 500.
(vi) Rent Outstanding ₹ 100.
(vii) Bought furniture ₹5,000 on credit.
(viii) Bought refrigerator for personal use ₹ 5,000.
(ix) Purchased motorcycle for cash ₹ 20,000.
Create an Accounting Equations to show the effect of the above transaction 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 ₹ 50,000 and goods ₹ 30,000.
(ii) Purchased goods for cash ₹ 30,000 and on credit from Karan ₹ 20,000.
(iii) Goods costing ₹ 40,000 were Sold for ₹ 55,000.
(iv) Withdrew cash for personal use ₹ 10,000.
(v) Rent outstanding ₹ 2,000.
Solution:

Question 16.
Show an Accounting Equation for the following transactions:
(i) D. Mahapatra commenced business with cash of ₹ 50,000 and ₹ 1,00,000 by cheque; goods ₹ 60,000; machinery ₹ 1,00,000 and furniture ₹ 50,000.
(ii) 1/3 rd of 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 ₹ 10,000 and received a Bill Receivable for the same amount for 3 months.
(vii) Received ₹ 10,000 from Gupta against the Bill Receivable on its maturity.
Solution:

Working Note:
Rs.60,000 × 1/3 = Rs.20,000 × 110% = Rs.22,000
Half received in Cash = Rs.11,000

 

Question 17.
Prepare Accounting Equation from the following:
(a) Started business with cash ₹ 1,00,000.
(b) Purchase goods for cash ₹ 20,000 and on credit ₹ 30,000.
(c) Sold goods for cash costing ₹ 10,000 and on credit costing ₹ 15,000 both at a profit of 20%.
(d) Paid salaries ₹ 8,000.
Solution:

Question 18.
Show the accounting equation on the basis of following transactions:
(a) Ram started business with ₹ 25,000.
(b) Purchased goods from Shyam ₹ 10,000.
(c) Sold goods to Sohan costing ₹ 1,500 for ₹ 1,800.
Solution:

Question 19.
If the capital of a business is ₹ 3,00,000 and liabilities are ₹ 50,000, loss ₹ 70,000, calculate the total assets of the business.
Solution:
Total Assets = Capital – Loss + Liabilities = Rs.3,00,000 – Rs.70,000 + Rs.50,000 = Rs.2,80,000
Total Assets of the business is Rs.2,80,000

Question 20.
If total assets of a business are ₹ 1,30,000 and net worth is ₹ 80,000, calculate the creditors.
Solution:
Creditors = Total Assets – Net worth = Rs.1,30,000 – Rs.80,000 = Rs.50,000
Creditors is Rs.50,000.

 

Question 21.
A commenced his cloth business on 1st April, 2017 with a capital of ₹ 30,000. On 31st March 2018, his assets were worth ₹ 50,000 and liabilities of ₹ 10,000. Find out his closing capital and profits earned during the year.
Solution:
Closing Capital = Assets – Liabilities = Rs.50,000 – Rs.10,000 = Rs.40,000
Profit = Closing Capital – Opening Capital = Rs.40,000 – Rs.30,000 = Rs.10,000

Question 22.
If capital of a business is ₹ 1,40,000 and liabilities are of ₹ 80,000, calculate the total assets of the business.
Solution:
Total Assets = Liabilities + Capital = Rs.80,000 + Rs.1,40,000 = Rs.2,20,000
Total Assets of the business is Rs.2,20,000

Question 23.
Calculate the total assets if:
(i) Capital is ₹ 40,000.
(ii) Creditors are ₹ 25,000.
(iii) Revenue during the period is ₹ 50,000.
(iv) Expenses during the period are ₹ 40,000.
Solution:
Capital after Adjustments = Capital + Revenue – Expenses = Rs.40,000 + Rs.50,000 – Rs.40,000 = Rs.50,000
Total Assets = Capital after adjustment + Creditors = Rs.50,000 + Rs.25,000 = Rs.75,000

Question 24.
(a) A had a capital of ₹ 75,000 on 1st April, 2017. He had also goods amounting to ₹ 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 ₹ 1,700. He withdrew ₹ 800 for his personal use. Find out his capital and assets of the business.
Solution:
a. Total Assets = Capital + Creditors = Rs. 75,000 + Rs. 15,000 = Rs. 90,000
b. Revised Capital = Capital – Loss – Drawings = Rs. 75,000 – Rs. 1,700 – Rs. 800
i. Revised Capital = Rs. 72,500
Assets = Revised Capital + Creditors = Rs. 72,500 + Rs. 15,000
ii. Assets = Rs. 87, 500

Question 25.
(a) Mohan started a business on 1st April, 2017 with a capital of ₹ 10,000 and borrowed ₹ 3,000 form a friend. He earned a profit of ₹ 5,000 during the year ended 31st March, 2018 and withdrew cash ₹ 4,000 for private use. What is his capital on 31st March, 2018 ?
(b) Mahesh started a business with a capital of ₹ 15,000 on 1st April, 2017. During the year, he made a profit of ₹ 3,000. He owes ₹ 2,500 to suppliers of goods. What is the total of assets in his business on 31st March, 2018 ?
Solution:
Mohan Started the Business
a. Capital on 31st March 2018 = Capital on April 01,2017 + Profit – Drawings
= Rs.10,000 + Rs.5,000 – Rs.4,000 = Rs.11,000
Mahesh Started the Business
b. Total Assets on 31st March 2018 = Capital on April 01, 2017 + Profit + Creditors
= Rs.15,000 + Rs.3,000 + Rs.2,500 = Rs.20,500

 

Question 26.
Mohan started a business on 1st April, 2017 with a capital of ₹ 25,000 and a loan of ₹ 12,500 borrowed from Shyam. During 2017-18 he had introduced additional capital of ₹ 12,500 and had withdrawn ₹ 7,500 for personal use. On 31st March, 2018 his assets were ₹ 75,000. Find out his capital as on 31st March, 2018 and profit made or loss incurred during the year 2017-18.
Solution:
Mohan Started the Business
Capital on 31st March 2018 = Assets – Loan from Shyam = Rs.75,000 – Rs.12,500 = Rs.62,500
Profit (or Loss) during the year 2017 – 18 = Capital on March 31, 2018 + Drawings – (Capital on April 01,2017 + Additional Capital)
= Rs. 62,500 + Rs. 7,500 – (Rs. 25,000 + Rs. 12,500) = Rs.70,000 – Rs.37,500 = Rs.32,500

Question 27.
On 31st March, 2018, the total assets and external liabilities were ₹ 2,00,000 and ₹ 6,000 respectively. During the year, the proprietor had introduced capital of ₹ 20,000 and withdrawn ₹ 12,000 for personal use. He made a profit of ₹ 20,000 during the year. Calculate the capital as on 1st April, 2017.
Solution:
Capital on 31st March 2018 = Total Assets – External Liabilities = Rs. 2,00,000 – Rs. 6,000 = Rs. 1,94,000
Capital on 01st April 2017 = Capital on March 31, 2018 – Additional Capital + Drawings – Profit
= Rs. 1,94,000 – Rs. 20,000 + Rs. 12,000 – Rs. 20,000 = Rs. 1,66,000

Question 28.
Show an Accounting Equation on the basis of the following transactions:

Solution:

 

Question 29.
Draw an Accounting Equation on the basis of the following transactions:
​(i) Commenced business with cash ₹ 50,000, cheque ₹ 1,00,000, goods ₹ 30,000 and furniture ₹ 20,000.
(ii) Car, personal asset of the proprietor, was sold for ₹ 1,00,000 against cheque which he deposited in his Savings Account.
(iii) An amount of ₹ 50,000 was transferred from his Savings Account to the firm’s Bank Account.
(iv) A new car was purchased for ₹ 6,00,000 for office use. It was paid by taking loan from Bank of ₹ 5,00,000 and balance by issue of cheque from firm’s Bank Account.
(v) Sold goods to Ajay on credit costing ₹ 4,000 for ₹ 5,000.
(vi) Sold goods for cash costing ₹ 12,000 for ₹ 16,000.
(vii) Purchased good for cash ₹ 40,000.
(viii) Purchased goods on credit for ₹ 20,000.
(ix) Paid rent ₹ 3,000 including ₹ 2,000 in advance.
(x) Paid salaries ₹ 2,000.
(xi) Sold goods costing ₹ 8,000 for ₹ 10,000.
(xii) Salaries outstanding ₹ 1,000.
(xiii) Charge depreciation on furniture ₹ 500.
Solution:



Note: In transaction (ii), there is not impact on the Accounting Equation, therefore it is not shown in the above statement.

We hope the TS Grewal Accountancy Class 11 Solutions Chapter 2 Accounting Equation help you. If you have any query regarding TS Grewal Accountancy Class 11 Solutions Chapter 2 Accounting Equation, drop a comment below and we will get back to you at the earliest.

 

TS Grewal Accountancy Class 11 Solutions Chapter 6 Ledger are part of TS Grewal Accountancy Class 11 Solutions. Here we have given TS Grewal Accountancy Class 11 Solutions Chapter 6 Ledger.

Board	CBSE
Textbook	NCERT
Class	Class 11
Subject	Accountancy
Chapter	Chapter 6
Chapter Name	Ledger
Number of Questions Solved	12
Category	TS Grewal Solutions

TS Grewal Accountancy Class 11 Solutions Chapter 6 Ledger

Question 1.
On 1st April, 2018, Mohit started business with a capital of ₹ 50,000. He made the following transactions:

You are required to journalise the above transactions and show the respective Ledger accounts.
Solution:

Question 2.
Suresh, Kanpur commenced business on 1st January, 2018 introducing capital in cash ₹ 1,00,000. His other transactions during the month were as follows:

Enter the above transactions in his books of account.
Solution:

Question 3.
Journalise the following transactions in the books of Afzal, Kolkata and post them to the Ledger:

Intra-state transactions are subject to levy of CGST and SGST @ 6% each whereas inter-state transactions are subject to levy of IGST @ 12%. Out of the above transactions, transactions marked (*) are not subject to levy of GST.
Solution:

Question 4.
Pass Journal entries of M/s. Bhanu Traders, Delhi from the following transactions. Post them to the Ledger:

Intra-state transactions are subject to levy of CGST and SGST @ 6% each whereas inter-state transactions are subject to levy of IGST @ 12%. Out of the above transactions marked (*) are not subject to levy of GST.
Solution:

Question 5.
Journalise the following transactions in the Journal of M/s. Gupta Brothers (Prop. Shri R. K. Gupta), Delhi and post them to the Ledger:

Inter-state transactions are subject to levy of IGST @ 12% and Intra-state transactions are subject to levy of CGST and SGST @ 6% each. GST is not levied on transactions marked with (*).
Solution:

Question 6.
Following balances appeared in the books of Ashok, Delhi on 1st April, 2018:
Assets: Cash – ₹ 50,000; Stock – ₹ 30,000; Debtors – Ram ₹ 50,000; Machinery – ₹ 60,000.
Liabilities: Creditor – Rajesh ₹ 30,000.
The following transactions took place in April, 2018:

CGST and SGST @ 6% each is levied on intra-state transactions and IGST is levied @ 12% on inter-state transactions. Transactions marked (*) are not subject to levy of GST.
Pass Journal entries for the above transaction, post them into the Ledger and prepare the Trial Balance on 30th April, 2018.
Solution:

Question 7.
On 1st April, 2018, the following were Ledger balances of M/s. Ram & Co., Delhi: Cash in Hand – ₹ 300; Cash at Bank – ₹ 7,000; Bills Payable – ₹ 1,000; Zahir (Dr.) – ₹ 800; Stock – ₹ 4,000; Gobind (Cr.) – ₹ 2,000; Sharma (Dr.) – ₹ 1,500; Rahul (Cr.) – ₹ 900; Capital – ₹ 9,700. Transactions during the month of April, 2018 were:

Inter-state transactions are subject to levy of IGST @ 12% and Intra-state transactions are subject to levy of CGST and SGST @ 6% each. GST is not levied on transactions marked with (*).
Post the above transactions to the Ledger and prepare the Trial Balance on 30th April, 2018.
Solution:

Question 8.
You are to open the books of Rajesh Prabhu, Gurugram (Haryana) a trader, through the Journal to record the assets and liabilities and then to record the daily transactions for the month of April, 2018. A Trial Balance is to be extracted as on 30th April, 2018:

Inter-state transactions are subject to levy of IGST @ 12% and Intra-state transactions are subject to levy of CGST and SGST @ 6% each. GST is not levied on transactions marked with (*).
Solution:

Question 9.
Enter the following transactions in the Journal of M/s. Karim Bros., Prop. Shri Karim Khan, Kolkata, post to the Ledger and prepare the Trial Balance:

Inter-state transactions are subject to levy of IGST @ 12% and Intra-state transactions are subject to levy of CGST and SGST @ 6% each. GST is not levied on transactions marked with (*).
Solution:

Question 10.
Write up the following transactions in the Journal of Ashok, Delhi and post them to the Ledger for April, 2018. Also, prepare the Trial Balance as on 30th April, 2018.

Solution:

Question 11.
Shri S. K. Gupta, Chandigarh commenced business on 1st April, 2018 with a capital of ₹ 1,20,000 of which ₹ 60,000 was paid into his Bank Account and ₹ 60,000 retained as cash. His other transactions during the month were as follows:

Inter-state transactions are subject to levy of IGST @ 12% and Intra-state transactions are subject to levy of CGST and SGST @ 6% each. GST is not levied on transactions marked with (*).
Journalise the above transactions and post them to the Ledger.
Solution:

Question 12.
Journalise the following transactions in the books of Shri Manoj, Kolkata and prepare Ledger Accounts.
Opening Debit Balances:
Cash in Hand – ₹ 15,000; Cash at Bank – ₹ 55,000; Stock – ₹ 28,000; Debtors – ₹ 25,000 (Sunil – ₹ 5,000; Abhay – ₹ 10,000 and Alok – ₹ 10,000); Fixed Assets: Computer and Printer – ₹ 50,000; Furniture – ₹ 10,000; Delivery Van – ₹ 25,000.
Opening Credit Balances:
Bank Loan – ₹ 90,000; Salaries Outstanding – ₹ 15,000; Creditors – ₹ 20,000; Bills Payable – ₹ 10,000; Capital – ₹ 73,000.
Transactions for the month of April, 2018 were:
(i) Purchased goods from M/s Prabhat Electricals – ₹ 10,000 less 10% Trade Discount. Cheque was issued immediately and availed 2% Cash Discount on purchase price.
(ii) Cheque was received from Abhay for the balance allowing him discount of 2%*.
(iii) Cheque was received from Alok for the balance due*.
(iv) Sunil was unable to pay the full dues and offered to pay 75%, which was accepted. Cheque was duly received*.
(v) Gave goods costing ₹ 1,000 as charity. These goods were purchased in Kolkata.
(vi) In a competition held by the RWA where the shop is located an electric iron costing ₹ 500 was given as an award. It had been purchased from Prabhat Electricals, Delhi.
(vii) A debt of ₹ 10,000 that was written off as bad debt in the past was received*.
(viii) Salaries amounting to ₹ 15,000 provided in the books for the month of March, 2018 were paid through cheque*.
(ix) Sales for the month were: Cash Sales ₹ 15,00,000 (Intra-state) and Credit Sales ₹ 3,00,000 (Inter-state).
(x) Purchases for the month were: Cash Purchases ₹ 1,00,000 (Intra-state) and Credit Purchases (Inter-state) ₹ 9,00,000.
Cheques Received from Debtors ₹ 2,00,000; Deposited Cash ₹ 15,00,000.
(xi) Paid to creditors through cheques ₹ 8,90,000*.
(xii) Bank Loan repaid during the month ₹ 20,000*.
Inter-state transactions are subject to levy of IGST @ 12% and Intra-state transactions are subject to levy of CGST and SGST @ 6% each. GST is not levied on transactions marked with (*).
Solution:

We hope the TS Grewal Accountancy Class 11 Solutions Chapter 6 Ledger help you. If you have any query regarding TS Grewal Accountancy Class 11 Solutions Chapter 6 Ledger, drop a comment below and we will get back to you at the earliest.

TS Grewal Accountancy Class 11 Solutions Chapter 13 Rectification of Errors are part of TS Grewal Accountancy Class 11 Solutions. Here we have given TS Grewal Accountancy Class 11 Solutions Chapter 13 Rectification of Errors.

Board	CBSE
Textbook	NCERT
Class	Class 11
Subject	Accountancy
Chapter	Chapter 13
Chapter Name	Rectification of Errors
Number of Questions Solved	49
Category	TS Grewal Solutions

TS Grewal Accountancy Class 11 Solutions Chapter 13 Rectification of Errors

Question 1.
How will you rectify the following errors?
(i) Purchases Book is overcast by ₹ 10,000.
(ii) Purchases Return Book is overcast by ₹ 1,000.
(iii) Purchases Return Book’s balance is carried forward in excess by ₹ 100.
(iv) Purchases Book’s balance is carried forward in excess by ₹ 1,000.
Solution:

Question 2.
How will you rectify the following errors?
(i) Sales Book is short casted by ₹ 5,000.
(ii) Sales Return Book is short casted by ₹ 500.
(iii) Balance of Sales Book is carried forward short by ₹ 1,000.
(iv) Balance of Sales Return Book is carried forward short by ₹ 100.
Solution:
b

Question 3.
How will you rectify the following errors?
(i) Sales Book is overcast by ₹ 5,000.
(ii) Sales Return Book is short casted by ₹ 500.
(iii) Balance of Sales Book is carried forward in excess by ₹ 1,000.
(iv) Balance of Sales Return Book is carried forward in excess by ₹ 100.
Solution:

Question 4.
Rectify the following errors assuming that there is no Suspense Account:
(i) Salary of ₹ 5,000 paid to Rahul was not posted to Salaries Account.
(ii) Sales to Amrish of ₹ 1,430 posted to his account as ₹ 1,340.
(iii) Sales to Vijay of ₹ 2,470 posted to his account as ₹ 2,740.
(iv) Purchases from Pal of ₹ 1,430 posted to his account as ₹ 1,340.
Solution:

Question 5.
Which of the following errors will affect the Trial Balance?
(i) The total of the Sales Book has not been posted to the Sales Account.
(ii) ₹ 1,000 paid as installation charges of a new machine has been debited to Repairs Account.
(iii) Goods costing ₹ 4,000 taken by the proprietor for personal use have debited to Debtors Account.
(iv) ₹ 1,000 paid for repairs to building have been debited to Building Account.
Solution:
The correct answer is option (i).
Total of Sales book has not been posted to Sales Account will affect the Trial Balance because due to undercast of Sales Accounts results in undercasting of credit side of the Trial Balance.

Question 6.
Rectify the following errors:
(i) The Sales Book of December was added short by ₹ 500.
(ii) A periodical total of the Purchases Book was cast short by ₹ 5,000.
(iii) The total of Purchases Return Book has been undercast by ₹ 1,500.
(iv) The Sales Return Book is added ₹ 200 short.
Solution:

Question 7.
Rectify the following errors assuming that there is no Suspense Account:
(i) The Returns Inward Book has been overcast by ₹ 200.
(ii) Purchases Book carried forward ₹ 75 less.
(iii) Sales Book carried forward ₹ 41 less on Page 10 and ₹ 43 more on Page 12.
(iv) Goods sold to Gautam were posted as ₹ 215 instead of ₹ 251.
Solution:

Question 8.
Following errors are discovered in the books of Sh. Ram Lal. Make the necessary entries to rectify them:
(i) Purchases Journal was undercast by ₹ 2,150.
(ii) ₹ 500 received from K. Krishna was debited to his account.
(iii) An amount of ₹ 3,000 withdrawn by the proprietor of the firm for his personal use was posted to the Travelling Expense Account.
(iv) An amount of ₹ 175 for a credit sale to R. Gopalan correctly entered in the Sales Book, has been debited to his account as ₹ 157.
Solution:

Question 9.
Pass the Journal entries rectifying the following errors:
(i) Purchases for ₹ 10,000 was omitted to be recorded.
(ii) Purchases of office furniture of ₹ 10,000 was recorded in Purchases Book.
(iii) Office Rent of ₹ 15,000 was debited to the Personal Account of the landlord.
(iv) Old machine was sold for ₹ 5,000 was credited to Sales Account.
Solution:

Question 10.
Following errors affecting the accounts of the year 2016-17 were detected in the books of Das & Co., Meerut:
(i) Sale of old furniture for ₹ 5,000 was treated as sales of goods.
(ii) Rent of proprietor’s residence ₹ 6,000 was debited to Rent Account.
(iii) Cash received from Rajesh ₹ 2,150 was credited to Brajesh.
Pass the rectifying Journal entries. State the nature of each of these mistakes.
Solution:

Question 11.
Rectify the following errors:
(i) Purchases Book has been undercast by ₹ 1,000.
(ii) Credit sale to Anu Prakash ₹ 7,000 was recorded in Purchases Book.
(iii) Credit sale to Rahul ₹ 7,000 was recorded as ₹ 700.
Solution:

Note: In the book, this transaction is incomplete, thus it has been assumed that Credit sales to Rahul was recorded as Rs.700 instead of Rs.7,000

Question 12.
Rectify the following errors:
(i) Total of one page of the Sales Book was carried forward to the next page as ₹ 2,785 instead of ₹ 2,587.
(ii) A cheque of ₹ 400 received from Mohan was dishonoured and had been posted to the debit side of the ‘Allowance Account’.
(iii) Return of goods worth ₹ 5,000 by a customer was entered in the Purchases Return Book.
(iv) Sum of ₹ 200 owed by ‘X’ has been included in the list of Sundry Creditors.
(v) Sale of old furniture worth ₹ 430 was credited to the Sales Account as ₹ 340.
Solution:

Question 13.
Rectify the following errors:
(i) Purchases Book is overcast by ₹ 500.
(ii) Salary paid to an employee, Mr. Ajay, is debited to his Personal account ₹ 3,000.
(iii) Goods sold to Shashi on credit ₹ 300 have been wrongly passed through the Purchases Book.
(iv) Total of returns inward has been added ₹ 9 short.
(v) Purchase of chair from Happy Traders for ₹ 35 has been entered in the Purchases Books as ₹ 53.
Solution:

Question 14.
Correct the following errors in Mohan Lal’s Book:
(i) A payment of ₹ 5,000 for salaries (to Mr. Ram) has been posted twice to the Salaries Account.
(ii) ₹ 750 received from Rajesh are entered on the debit side of the Cash Book. No posting was done in Rajesh’s Account.
(iii) Sales Book was overcast by ₹ 3,000.
(iv) Goods (Cost ₹ 2,000, Sales Price ₹ 2,500) distributed as free simples among prospective customers were not recorded anywhere.
Solution:

Question 15.
Rectify the following errors:
(i) Sales to Vinod of ₹ 143 posted to his account as ₹ 134.
(ii) Sales to Vinod of ₹ 143 debited to his account as ₹ 134.
(iii) Sales to Vinod of ₹ 143 credited to his account as ₹ 134.
Solution:

Question 16.
Give the rectifying entries of the following:
(i) Sales of ₹ 20,000 to Manoj were recorded as ₹ 2,000 in the Sales Book.
(ii) An amount of ₹ 25,000 spent for the extension of machinery has been debited to the Wages Account.
(iii) Discount received from Ram & Co. ₹ 350, has not been entered in the discount column of the Cash Book.
(iv) Goods of ₹ 3,000 sold to Mahesh were recorded in the Purchases Book.
Solution:

Question 17.
Correct the following errors in Mohan Lal’s Book:
(i) A sum of ₹ 1,500 written off as depreciation on furniture has not been debited to the Depreciation Account.
(ii) Returns Outward Journal has been overcast by ₹ 85.
(iii) Basudev returned goods worth ₹ 500; his account was debited by this amount.
(iv) Purchase from Krishna Mohan of ₹ 2,250 has been debited to his account.
Solution:

Question 18.
Correct the following errors in Hari’s Books:
(i) Credit sale of ₹ 132 to R. Krishan correctly entered in Sales Journal but posted to his account as ₹ 312.
(ii) The total of the credit side of Ramesh’s Account was overcast by ₹ 2,000.
(iii) Total of the Purchases Journal of ₹ 5,250 has been posted to Purchases Account as ₹ 5,205.
(iv) Printer purchased from R. Ltd. for ₹ 4,000 on credit was entered in the Purchases Book.
(v) An item of ₹ 2,000 entered in the Sales Return Book was posted to the debit of Pandey who had returned the goods.
Solution:

Question 19.
Rectify the following errors:
(i) A purchase of ₹ 5,000 from Ram was omitted to be entered in the Purchases Book.
(ii) A credit sale of ₹ 257 to Messrs Goodluck & Co. was recorded as ₹ 275.
(iii) A purchase of office furniture for ₹ 500 from Salwan Furnitures was entered through the Purchases Book.
(iv) Rent paid to Landlord ₹ 500 was debited to his Personal Account.
(v) A debt balance of ₹ 2,000 on the Personal Account of Mr. John (correctly shown in the Ledger) has been omitted when extracting a Trial Balance.
Solution:

Question 20.
Mukesh found that the Trial Balance did not agree. He found the following errors:
(i) In the Sales Book for the month of January, total of Page No. 3 was carried forward to Page No. 4 as ₹ 1,000 instead of ₹ 1,200 and total of Page No. 7 was carried forward to Page No. 8 as ₹ 5,600 instead of ₹ 5,000.
(ii) Goods returned to Anshuka ₹ 10,000 were recorded in the Sales Book.
(iii) Bill Receivable for ₹ 800 from Riya was dishonoured and posted to the debit of Allowances Account.
Solution:

Question 21.
Pass the rectifying entries for the following:
(i) Sales of goods ₹ 6,000 to Madan were recorded as ₹ 600 in the Sales Book.
(ii) Credit purchase of goods from Mohan amounting to ₹ 2,000 has been wrongly passed through the Sales Book.
(iii) Return of goods worth ₹ 500 by a customer was entered in ‘Purchases Return Book’.
(iv) Cheque of ₹ 400 received from Ranjan was dishonoured and debited to the Discount Account.
(v) Bill for ₹ 820 received from Ramesh for repair of machinery was entered in the Purchases Book as ₹ 720.
Solution:

Question 22.
Give rectifying Journal entries for the following errors:
(i) Sales of goods to Madan ₹ 6,000 were entered in the Sales Book as ₹ 600.
(ii) Credit purchase of ₹ 1,500 from Ajay has been wrongly passed through the Sales Book.
(iii) Repairs to building ₹ 300 were debited to Building Account.
(iv) ₹ 2,050 paid to Rohit is posted to the debit of Mohit’s Account as ₹ 5,020.
(v) Purchases Return Book is overcast by ₹ 400
Solution:

Question 23.
Give rectifying entries for the following:
(i) ₹ 5,400 received from Mr. A was posted to the debit of his account.
(ii) The total of Sales Return Book overcast by ₹ 800.
(iii) ₹ 2,740 paid for repairs to motor car was debited to Motor Car Account as ₹ 1,740.
(iv) Returned goods to Shyam ₹ 1,500 were passed through Returns Inward Book.
Solution:

Question 24.
Pass Journal entries rectifying the following errors:
(i) A cheque for ₹ 10,000 was received from Ranjan on which ₹ 200 Cash Discount was allowed. The cheque was not honoured on due date and the amount of discount was credited to Discount Received Account.
(ii) ₹ 2,000 paid as wages for machinery installation was debited to Wages Account.
(iii) ₹ 5,000 received from Rakesh were credited to his Personal Account. The amount had been written off as bad debt earlier.
(iv) Repair bill of machinery was recorded as ₹ 100 against the bill amount of ₹ 1,000.
Solution:

Question 25.
Rectifying the following errors:
(i) Sales Book has been totalled ₹ 1,000 short.
(ii) Goods worth ₹ 1,500 returned by Green & Co. have not been recorded anywhere.
(iii) Goods purchased worth ₹ 2,500 have been posted to the debit of the supplier, Gupta & Co.
(iv) Furniture purchased from Gulab & Co. worth ₹ 10,000 has been entered in Purchases Book.
(v) Cash received from A ₹ 2,500 has not been posted in his account.
Solution:

Question 26.
How will you rectify the following errors?
(i) ₹ 500 spent on building repairs has been debited to the Building Account.
(ii) Furniture worth ₹ 5,000 purchased from X on credit omitted from being recorded in the books.
(iii) Total of Returns Inward Book was added by ₹ 200 instead of ₹ 250.
(iv) Goods purchased from Mohan for ₹ 5,000 was passed through Returns Inward Book.
(v) Goods returned to Ram was passed through Sales Book.
(vi) Bills payable of ₹ 5,000 accepted in favour of Murari, was passed through bills receivable book with ₹ 500 but Murari’s account was correctly debited.
Solution:

Question 27.
Pass Journal entries to rectify the errors in the following cases:
(i) A purchase of goods from David amounting to ₹ 150 has been wrongly passed through the Sales Book.
(ii) A credit sale of goods of ₹ 120 to Peter has been wrongly passed through the Purchases Book.
(iii) ₹ 200, salary paid to Cashier, B. Naidu, stands wrongly debited to his Personal Account.
(iv) A credit sales of ₹ 4,230 to Krishan entered as purchase from Kishan ₹ 4,320.
(v) Ramesh’s Account was credited with ₹ 840 twice instead of once.
Solution:

Question 28.
(i) What are the different causes that make a Trial Balance incorrect?
(ii) Pass the rectifying Journal entries:
(a) A credit sale of goods for ₹ 2,500 to Krishna has been wrongly passed through the Purchases Book.
(b) ₹ 5,000 paid for freight on machinery purchased was debited to the Freight Account as ₹ 500.
(c) The Returns Inward Book has been wrongly overcast by ₹ 100.
(d) An amount of ₹ 500 due from Ramesh which had been written off as bad debt in previous year was recovered and had been posted to the Personal Account of Ramesh.
(e) A sum of ₹ 460 owed by Hari had not been included in the list of debtors.
Solution:
(i) The following are the causes that make a Trial Balance incorrect.
(a) Incomplete posting of Journal Entry
(b) Posting in the wrong side of Account.
(c) Wrong totalling of Subsidiary Books
(d) Wrong balance of Account
(e) Omission of total of Subsidiary book into Account
(f) Wrong totalling of the Trial Balance

Question 29.
Rectify the following errors:
(i) Wages paid for the construction of office debited to the Wages Account, ₹ 5,000
(ii) Machinery purchased for ₹ 35,000 was passed through the Purchases Book.
(iii) Old furniture sold for ₹ 1,000, passed through the Sales Book.
(iv) ₹ 2,000 paid to Mehta Bros. against acceptance were debited to Malhotra Bros. Account.
(v) Sales of ₹ 204 to Ram debited to his account as ₹ 402 and purchases of ₹ 1,012 from Shyam credited to his account as ₹ 1,210.
Solution:

Question 30.
There was an error in the Trial Balance of Ram Gopal on 31st March, 2018 and the difference in books was carried to the Suspense Account. On going through the books, you find that:
(i) ₹ 540 received from M. Mehta was posted to the debit side of his account.
(ii) ₹ 100 being purchases return was posted to the debit of the Purchases Account.
(iii) Discount of ₹ 300 received was posted to the debit of the Discount Account.
(iv) ₹ 374 paid for motor car repairs was debited to the Motor Car Account as ₹174.
(v) ₹ 400 paid to C. Das was debited to the account of G. Dass.
Pass the Journal entries to rectify the above errors and state what amount was carried to the Suspense Account.
Solution:

Question 31.
Trial Balance of a bookkeeper shows an excess of debits over credits by ₹ 261. This difference is placed in a Suspense Account to facilitate books closure. Later on the following errors were discovered:
(i) A credit item of ₹ 349 has been debited to a Personal Account as ₹ 439.
(ii) A sum of ₹ 625 written off from fixtures as depreciation has not been posted to the Depreciation Account.
(iii) ₹ 9,000 paid for furniture bought have been charged to the Purchases Account.
(iv) A discount allowed to a customer has been credited to him as ₹ 145 in place of ₹ 154.
(v) A sale of ₹ 594 was posted as ₹ 495 in the Sales Account.
(vi) The total of Returns Inward Book has been added ₹ 10 short.
Pass the Journal entries to correct these errors and prepare the Suspense Account.
Solution:

Question 32.
The accountant of a firm finds that the Trial Balance as on 31st December, 2017 is out by as excess debit of ₹ 283. He placed the amount in the Suspense Account. In the first week of January, 2018, he discovered the following errors. Pass the Journal entries necessary to rectify these errors and show the Suspense Account as it would appear at the end of the week. Have you any comment to make?
(i) Cash paid to Amar Nath, ₹ 75, was posted to the credit of Amar Singh’s Account as ₹ 57.
(ii) Discount allowed by Brijesh of ₹ 5 was not entered in the Cash Book but Brijesh stands debited correctly.
(iii) No entry was made of goods worth ₹ 40 taken away by proprietor for personal use.
(iv) ₹ 500 received from Jhaveri Bros. for interest on loan advanced to them were recorded in the Cash Book. But the entry was not posted in the Ledger.
(v) The total of Returns Outward Book was short by ₹ 100.
Solution:

As the Suspense account has not tallied, there are errors still to be rectified.

Question 33.
You are presented with a Trial Balance showing a difference which has been carried to the Suspense Account and the following errors are revealed:
(i) ₹ 1,700 paid in cash for an office equipment was charged to Office Expenses Account.
(ii) A cash sale of ₹ 5,000 to Black, correctly entered in the Cash Book, was posted to the credit of Black’s Account in the Ledger.
(iii) Goods amounting to ₹ 800, returned by Blue, were entered in the Sales Book and posted therefrom to the credit of Blue’s Account.
(iv) Furniture purchased for ₹ 8,100 was posted to Furniture Account as ₹ 810.
(v) Goods amounting to ₹ 10,000 sold to Red were correctly entered in Sales Book but posted to Red’s Account for ₹ 18,000.
(vi) Sales Return Book was overcast by ₹ 100.
You are required to pass the necessary rectification entries in respect of the above.
Solution:

Question 34.
Rectify the following errors found in the books of Mr. B. Trial Balance had ₹ 930 excess credit. The difference has been posted to a Suspense Account:
(i) The total of Returns Inward Book has been cast ₹ 1,000 short.
(ii) The purchase of an office table costing ₹ 3,000 has been passed through Purchases Book.
(iii) ₹ 3,750 paid for wages to workmen for making showcases had been charged to the Wages Account.
(iv) A purchases of ₹ 670 had been posted to the Creditors Account as ₹ 600.
(v) A cheque for ₹ 2,000 received from Mr. P.C. Joshi had been dishonoured and was passed to the debit of the Allowances Account.
(vi) An amount of ₹ 15,720 due from Prasad written off as had in a previous year, was recovered and credited to the Personal Account of Prasad.
After rectification reflect the transactions in the Suspense Account.
Solution:

Question 35.
Pass the rectification entries for the following transactions:
(i) An amount of ₹ 2,000 received from Mohan on 1st April, 2017 had been entered in the Cash Book as having been received on 31st March, 2017.
(ii) The balance in the account of Mr. Rahim ₹ 1,000 had been written off as bad but no other account has been debited.
(iii) An addition in the Returns Inward Book had been cast ₹ 100 short.
(iv) A cheque for ₹ 200 drawn for the Petty Cash Account has been posted in the account of Asif.
(v) A discounted Bill of Exchange for ₹ 20,000 returned by the firm’s bank had been credited to the Bank Account and debited to Bills Receivable Account. A cheque was received later from the customer for ₹ 20,000 and duly paid.
(vi) Ramesh’s Account was credited with ₹ 840 twice instead of once.
Solution:

Question 36.
The Trial Balance of M/s. Gupta & Sons shows a difference of ₹ 52,200. To prepare the Final Account on 31st March, 2009, this difference is placed in a Suspense Account. Afterwards the following errors were disclosed. Pass the necessary entries to rectify them and show the Suspense Account.
(i) Purchases Book total had been undercasted by ₹ 20,000.
(ii) A cheque received from Vasudev for ₹ 7,800 had been debited in the Cash Book but not posted in Vasudev’s Personal Account.
(iii) Returns Outward Book had been overcasted by ₹ 10,000.
(iv) Goods returned by Yash Pal worth ₹ 15,000 have been entered in Returns Outward Book. However, Yash Pal’s Account is correctly posted.
Solution:

Question 37.
A Trial Balance disclosed a difference of ₹ 417 placed on the credit side of the Suspense Account. Later on the following errors were located:
(i) Goods worth ₹ 200 purchased from Sohan had been posted to his account as ₹ 250.
(ii) A purchase of furniture for ₹ 500 was recorded in the Purchases Book.
(iii) Instead of crediting Gian’s Account with ₹ 512, it was debited with ₹ 215.
(iv) Goods worth ₹ 130 returned by Gian were entered in the Sales Book and posted therefrom to the credit of Gian’s Personal Account.
Pass the rectifying entries and prepare a Suspense Account.
Solution:

Question 38.
There was a difference of ₹ 720 in the Trial Balance which has been transferred to the credit side of the Suspense Account. Pass the rectifying entries and prepare a Suspense Account to rectify the following errors:
(i) An amount of ₹ 375 now posted on the debit side of the Commission Account instead of ₹ 275.
(ii) Credit amount of ₹ 260 posted to the debit of the Personal Account as ₹ 360.
(iii) Goods sold to Surinder recorded in Purchases Book ₹ 300.
(iv) D’s bill for erection of godown at a cost of ₹ 1,200 has been charged to the Repairs Account.
Solution:

Question 39.
Rectify the following errors by means of Journal entries:
(i) A cheque of ₹ 5,000 received from Ashish was dishonoured and was debited to Discount Account.
(ii) Purchases of ₹ 540 from Ramneek was written in Sales Book but was correctly posted to correct side to Ramneek’s Account.
(iii) Salary paid to Miss Yugakshi ₹ 1,000 was debited to her Personal Account as ₹ 900.
(iv) Furniture costing ₹ 500, purchased from Jyoti, was wrongly entered in Purchases Book as ₹ 450.
Solution:

Question 40.
The Trial Balance of S. Sen did not agree and the difference in books as carried to a Suspense Account. Pass the entries required to rectify the following errors which accounted for the difference. Also, prepare the Suspense Account:
(i) A Sales Invoice for ₹ 1,000 for goods sold on credit to B. Basu was entered in the Purchases Book but in the Ledge, the amount was correctly debited to the account of B. Basu.
(ii) Goods bought on credit from Ram Lal for ₹ 1,500 were wrongly debited to his account as ₹ 5,100.
(iii) An amount of ₹ 275 was posted as ₹ 325 to the debit side of the Commission Account.
(iv) The Sales Book for the month of April was undercast by ₹ 100.
(v) ₹ 460 paid for building repairs was debited to the Building Account as ₹ 640.
Solution:

Question 41.
Rectify the following errors:
(i) Sale of old furniture worth ₹ 3,000 treated as sales of goods.
(ii) Sales Book added ₹ 5,000 short.
(iii) Rent of proprietor’s residence, ₹ 6,500 debited to Rent Account.
(iv) Goods worth ₹ 11,970 returned by Manav posted to his debit as ₹ 11,790.
Solution:

Question 42.
There was a difference in the Trial Balance of M/s. Jain & Sons, prepared for the year ended 31st March, 2009. The accountant put the difference in Suspense Account.
The following errors were found:
(i) Purchases Return Book total ₹ 400 has not been posted to Ledger Account.
(ii) ₹ 5,100 spent on legal expense for the newly acquired Building was debited to the Building Account as ₹ 1,500.
(iii) A sale of ₹ 6,540 to Rajat has been credited to his account.
Rectify the errors and show the Suspense Account with Nil closing balance.
Solution:

Question 43.
Give the Journal entries to rectify the following errors:
(i) Purchases Book was overcast by ₹ 1,000.
(ii) Installation charges on new machinery purchased ₹ 500 were debited to Sundry Expenses Account as ₹ 50.
(iii) Radhey Shyam returned goods worth ₹ 500 which was entered in the Purchases Return Book.
(iv) Goods taken by the proprietor for ₹ 5,000 have not been entered in the books at all.
Solution:

Question 44.
Rectify the following errors:
(i) The total of one page of Sales Book was carried forward as ₹ 371 instead of ₹ 317.
(ii) ₹ 540 received from Yatin was posted to the debit of his Account.
(iii) Purchases Returns Book was overcast by ₹ 300.
(iv) An item of ₹ 1,062 entered in Sales Return Book had been posted to the debit of customer who returned the goods.
(v) ₹ 1,500 paid for furniture purchased had been charged to ordinary Purchase Account.
Solution:

Question 45.
Rectify the following errors by passing Journal entries:
(i) Old furniture sold for ₹ 500 has been credited to Sales Account.
(ii) Machinery purchased on credit from Raman for ₹ 2,000 recorded through Purchases Book as ₹ 16,000.
(iii) Cash received from Rajat ₹ 5,000 was posted to the debit of Bhagat as ₹ 6,000.
(iv) Depreciation provided on machinery ₹ 3,000 was posted to Machinery Account as ₹ 300.
Solution:

Question 46.
Rectify the following errors by passing Journal entries:
(i) A sum of ₹ 470 received from Ganga was posted to her debit as ₹ 740.
(ii) A debit balance of ₹ 550 in the personal account of Mr. John was undercast.
(iii) Bills Receivable from Brown for ₹ 3,000 posted to the credit of Bills Payable Account and credited to Brown’s Account.
(iv) Goods returned by Mridul ₹ 225 have been entered in the Returns Outward Book.
Solution:

Question 47.
While trying to close his books for the year ended 31st March, 2014, Mahesh found that the Trial Balance did not agree. He traced the following errors:
(i) In the Sales Book for the month of January total of Page No. 2 was carried forward to Page No. 3 as ₹ 1,000 instead of ₹ 1,200 and total of Page No. 6 was carried forward to Page No. 7 as ₹ 5,600 instead of ₹ 5,000.
(ii) Goods returned to Ram ₹ 1,000 were recorded in the Sales Book.
(iii) Bills Receivable for ₹ 1,600 from Noor was dishonoured and posted to debit of Allowances Account.
Rectify the above errors.
Solution:

Question 48.
Pass the rectification entries for the following transactions:
(i) Repairs to plant amounting to ₹ 2,000 had been charged to Plant and Machinery Account.
(ii) Wages paid to the firm’s workmen for making certain additions to machinery amounting to ₹ 1,340 were debited to Wages Account.
(iii) A cheque for ₹ 7,500 received from S. Desai was credited to the account of R. Gupta.
(iv) Goods to the value of ₹ 7,000 returned by X were included in closing stock, but no entry was made in the books.
(v) Goods costing ₹ 5,000 were purchased for various members of the staff and the cost was included in Purchases. A similar amount was deducted from the salaries of the staff members concerned and the net payments to them debited to Salaries Account.
(vi) Credit purchase of old machinery from Sohan for ₹ 1,70,000 was entered in the Purchase Book as purchase from Mohan for ₹ 7,10,000. ₹ 30,000 paid as repairing charges on the reconditioning of a newly purchased second had machinery were debited to General Expenses Account.
(vii) Debit and Credit totals of discount columns in the Cash Book which come to ₹ 400 and ₹ 370 respectively have not been posted to Discount Accounts.
Solution:

Question 49.
The bookkeeper of a firm found that his Trial Balance was out (excess credit) by ₹ 742. He placed the amount in a Suspense Account and subsequently found the following errors:
(i) A discount of ₹ 178 was allowed to Ramesh but in his account only ₹ 100 is recorded.
(ii) The total of the Purchases Book was ₹ 1,000 short.
(iii) A sale of ₹ 375 to Kohli was entered in the Sales Book as ₹ 735.
(iv) From the Purchases Book, Bose’s Account was debited with ₹ 175.
(v) Cash ₹ 250 received from Maitra against debt previously written off was credited to his account.
(vi) Purchase of office furniture worth ₹ 750 on credit from Delhi Furnitures was entered in the Purchases Book.
(vii) While carrying forward the total of the Sales Book from one page to another the amount of ₹ 11, 358 was written as ₹ 11,538.
(viii) The proprietor took goods of the value of ₹ 150 for his domestic consumption. No record of it has been made in the books.
(ix) Repairs bill for the proprietor’s personal car, ₹ 410, has been paid by the firm and debited to the Repairs Account.
(x) A sale to Kassim of ₹ 700 has been entered in the Purchases Book.
Rectify the errors by means of suitable Journal entries and show the Suspense Account.
Solution:

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TS Grewal Accountancy Class 11 Solutions Chapter 8 Special Purpose Books II Other Books are part of TS Grewal Accountancy Class 11 Solutions. Here we have given TS Grewal Accountancy Class 11 Solutions Chapter 8 Special Purpose Books II Other Books.

Board	CBSE
Textbook	NCERT
Class	Class 11
Subject	Accountancy
Chapter	Chapter 8
Chapter Name	Special Purpose Books II Other Books
Number of Questions Solved	23
Category	TS Grewal Solutions

TS Grewal Accountancy Class 11 Solutions Chapter 8 Special Purpose Books II Other Books

Question 1.
Record the following transactions in the Purchases Book of Subhash General Stores, Delhi:

Solution:

Question 2.
Verma Bros. Kolkata carry on business as wholesale cloth dealer. From the following, write up their Purchases Book for January, 2018:

Solution:

Note:
a. Cash purchases made on 8th Jan will be recorded in cash book as it is cash transaction and not credit.
b. Purchase of Typewriters on 20th Jan is not recorded in Purchase book as it is not goods that the firm trade in. It is an asset for the firm and not goods (i.e., stock)

Question 3.
From the following information of Kamal, Guwahati, prepare a Purchases Book and post them into Ledger:

Solution:

Question 4.
The following purchases were made by M/s. B.K Gupta, Kolkata, during the month of April, 2018. Prepare Purchases Book and post them in the Ledger Accounts:

Solution:


Note:
a. Cash purchases made on 12th April will be recorded in cash book as it is cash transaction and not credit.
b. Purchase of show cases on 18th April is not recorded in Purchase book as it is not goods that the firm trade in. It is an asset for the firm and not goods (i.e., stock)
c. Purchases made on 25th April will not be recorded in purchases book as it is purchased for household consumption for the proprietor and not for the trading purpose of the firm.

Question 5.
Prepare a Sales Book from the following transactions of Hema Traders, Kolkata dealing in furniture. Open a Ledger Account also:

Solution:

Question 6.
From the following particulars, prepare a Sales Book of M/s. Gyan Prasad & Bros., Delhi, dealers of stationery and post into Ledger Accounts:

Solution:

Question 7.
From the following particulars, prepare Sales Book of Gupta & Co., Kolkata who deals in furniture :

Solution:

Question 8.
Prepare the Purchase Book and Sales Book from the following transactions:


Solution:

Question 9.
Prepare Purchases Return Book of Aruna Stores, Kolkata from the following transactions and post them into Ledger:

Solution:

Question 10.
Record following transactions in the Purchases Return Book of Kamla Stores for June 2017:

Solution:

Question 11.
Prepare Sales Return Book of Shiv Shankar, Delhi from the following transactions and post them into Ledger:

Solution:

Question 12.
Enter following transactions in the Sales Return Books of Raj Computers, Delhi:

Solution:

Question 13.
Prepare Returns Inward and Return Outward Books of Manoj, Mumbai from the following transactions:

Solution:




Question 14.
(Closing Entries). Give the necessary entries in the Journal Proper of Ram on 31st March, 2018 to close their books:
Freehold Premises ₹ 30,000; Plant and Machinery ₹ 20,000; Sundry Debtors ₹ 25,000; Purchases ₹ 37,500; Sales ₹ 95,000; Discount (Dr.) ₹ 150; Discount (Cr.) ₹ 175; Sundry Creditors ₹ 12,500; Carriage Inwards ₹ 375; Carriage Outwards ₹600; Furniture and Fixtures ₹ 2,500; Wages ₹ 5,000; Bad debts ₹ 750; Salaries ₹ 3,600; Commission (Cr.) ₹ 2,125; Capital Account ​₹ 25,000; Bills Payable ₹ 7,500; Bills Receivable ₹ 9,000; Trade Expenses ₹ 2,550; Ram’s Loan Account ₹ 20,000; Cash in Hand ₹ 75; Cash at Bank ₹ 3,125.
Solution:

Question 15.
(Transfer Entries). Give the Journal entries for the following:
(i) Gross Profit of ₹ 32,000 from Trading Account to Profit and Loss Account.
(ii) Net Profit of ₹ 14,500 to Capital Account of Sri Sankar Saha.
(iii) Sri Sankar Saha draws ₹ 10,000 from his Capital Account.
(iv) Purchases Return of ₹ 7,000 plus IGST @ 12%.
(v) Sales Return of ​₹ 6,000 plus CGST and SGST @ 6% each.
Solution:

Question 16.
(Adjustment Entries) From the following information available on 31st March, 2018, pass the necessary Adjustment Entries in the Journal for the year ending on that date:
(i) Interest accrued ₹ 2,500.
(ii) Wages for March, 2018 outstanding ₹ 10,000.
(iii) Insurance prepaid ₹ 1,500.
(iv) Commission due to Manager 6% on net profit after charging such commission. The profit before charging such commission was ₹ 1,06,000.
(v) Interest due on loan but not paid. Loan of ₹ 1,50,000 was taken at 9% p.a. 9 months before end of the year.
Solution:

Question 17.
Enter the following transactions in Proper Subsidiary Books of Ram, Lucknow (UP) for the month of January 2018:

Solution:

Question 18.
Write up Purchases and Sales Books from the following transactions of Kalyan Silks, Kochi, Kerala given for April, 2018 and post the totals in the Ledger.

Solution:

Question 19.
Record the following transactions of Prabhat Electric Co., Delhi in the proper subsidiary books:

Solution:

Question 20.
R. Chetan has the following balances in his books on 1st March, 2018:
Cash ₹ 15,400; Cash at Bank ₹ 82,500; Stock ₹ 1,92,500; Plant and Machinery ₹ 4,40,000.
Sundry Debtors: Rajesh ₹ 27,500; James ₹ 13,750.
Sundry Creditors: Rao ₹ 19,250; Samanta ₹ 35,750; Capital ₹ 7,16,650.
The following are the transactions for the month of March 2018:

Transactions marked * are intra-state transactions subject to CGST and SGST @ 6% each. Transactions marked ** are inter-state transactions subject to IGST @ 12%.
Record these transactions in his subsidiary books, post to the Ledger and prepare a Trail Balance as on 31st March, 2018.
Solution:










Calculation of Total Sales
Total Sales = Sales – Sales Return = 16,000 – 2,000 = 14,000

Question 21.
On 1st March, 2018, Shri Kailash Chand, Lucknow commenced business with cash ₹ 50,000. The following are his transactions for the month of March, 2018. Record them in proper books, post them to the Ledger and take out a Trial Balance:

Transactions marked * are intra-state transactions subject to CGST and SGST @ 6% each.
Transactions marked ** are inter-state transactions subject to IGST @ 12%.
Solution:

Question 22.
On 1st January, 2018, Ram of Kolkata commenced business with a capital of ₹ 50,000 and entered into following transactions:
Pass the following transactions through proper books to the Ledger. Take out a Trial Balance as on 31st January, 2018. The Cash Book must be balanced.

Transactions marked * are intra-state transactions subject to CGST and SGST @ 6% each.
Transactions marked ** are inter-state transactions subject to IGST @ 12%.
Solution:

Question 23.
The following are the transactions of Kamal, Delhi for the month of July, 2017:
(All cheques are paid into the Bank on the day received.)


Transaction marked * are intra-state transactions subject to CGST and SGST @ 6% each.
Transactions marked ** are inter-state transactions subject to IGST @ 12%.
Pass above transactions through suitable books of original entry. Post them to Ledger accounts and draw up a Trial Balance.
Solution:

We hope the TS Grewal Accountancy Class 11 Solutions Chapter 8 Special Purpose Books II Other Books help you. If you have any query regarding TS Grewal Accountancy Class 11 Solutions Chapter 8 Special Purpose Books II Other Books, drop a comment below and we will get back to you at the earliest.

TS Grewal Accountancy Class 11 Solutions Chapter 4 Origin of Transactions Source Documents and Preparation of Voucher are part of TS Grewal Accountancy Class 11 Solutions. Here we have given TS Grewal Accountancy Class 11 Solutions Chapter 4 Origin of Transactions Source Documents and Preparation of Voucher.

 

Board	CBSE
Textbook	NCERT
Class	Class 11
Subject	Accountancy
Chapter	Chapter 4
Chapter Name	Origin of Transactions Source Documents and Preparation of Voucher
Number of Questions Solved	6
Category	TS Grewal Solutions

TS Grewal Accountancy Class 11 Solutions Chapter 4 Origin of Transactions Source Documents and Preparation of Voucher

Question 1.
The following transactions took place in M/s. Goodluck Computers. Prepare the Accounting Vouchers:

Transactions marked with * are subject to levy of CGST and SGST @ 6% each.
Solution:

 

Question 2.
Prepare the Accounting Vouchers for the following transactions:​

Transactions marked with * are subject to levy of CGST and SGST @ 6% each.
Solution:

 

Question 3.
Prepare the Vouchers to be recorded in the books of M/s. Computer Aids:

Transactions marked with * are subject to levy of CGST and SGST @ 6% each.
Solution:

 

Question 4.
Prepare the Vouchers to be recorded in the books of M/s. Elegant Furnitures, New Delhi:

Tranactions marked with * are subject to levy of CGST and SGST @ 6% each.
Solution:

Question 5.
Prepare the Vouchers:

Transactions marked with * are subject to levy of CGST and SGST @ 6% each.
Solution:

 

Question 6.
Prepare the Transfer Vouchers from the books of Mangla Agencies, Faridabad, Haryana from the Source Vouchers:

Solution:

We hope the TS Grewal Accountancy Class 11 Solutions Chapter 4 Origin of Transactions Source Documents and Preparation of Voucher help you. If you have any query regarding TS Grewal Accountancy Class 11 Solutions Chapter 4 Origin of Transactions Source Documents and Preparation of Voucher, drop a comment below and we will get back to you at the earliest.