Chapter recording-of-transactions-ii: Recording of Transactions - II Application Questions | accountancy Class 11 CBSE

Chapter recording-of-transactions-ii: Recording of Transactions - II Application Questions | accountancy Class 11 CBSE | ByteNotes.in

Application Question

Hard difficulty • Concept in a practical situation

Hard

Question 1

Applied Concept

M/s Sharma Enterprises received a cheque of ₹15,000 from a customer on 5th August 2017 but deposited it in the bank on 8th August 2017. On 10th August, the bank returned the cheque as dishonoured. Show how all three events are recorded in the double column cash book.

On 5th August: The cheque is treated as cash received; record ₹15,000 on the debit side in the cash column with the customer's name in particulars.
On 8th August: A contra entry is passed — ₹15,000 on the debit side in the bank column and ₹15,000 on the credit side in the cash column; 'C' is written in the L.F. column for both entries.
On 10th August: The dishonour is recorded on the credit side of the cash book in the bank column with the customer's name; this reverses the earlier deposit entry and restores the customer's outstanding balance in the ledger.

ByteNotes

Application Question

Medium difficulty • Concept in a practical situation

Medium

Question 2

Applied Concept

M/s Kanika Traders purchased 20 Mini-size TVs at ₹2,000 each from M/s Neema Electronics, with a trade discount of 20% (Invoice No. 3250). Later, 2 TVs were found defective and returned. Show the entries in the purchases book and the purchases return book.

In the purchases book: Net amount = 20 × ₹2,000 = ₹40,000, less 20% trade discount (₹8,000) = ₹32,000 net; record ₹32,000 against M/s Neema Electronics with Invoice No. 3250.
In the purchases return book: For 2 TVs returned — gross value = 2 × ₹2,000 = ₹4,000, less 20% trade discount (₹800) = ₹3,200 net; record ₹3,200 against M/s Neema Electronics with the debit note number.
In the ledger: Neema Electronics Account is credited ₹32,000 (from purchases book) and then debited ₹3,200 (from purchases return book); Purchases Account is debited ₹32,000 and Purchases Return Account is credited ₹3,200.

ByteNotes

Application Question

Medium difficulty • Concept in a practical situation

Medium

Question 3

Applied Concept

A petty cashier of M/s Rohan Traders is given an imprest amount of ₹3,000 on June 1. During June, total petty payments amount to ₹2,650 (postage ₹400, conveyance ₹750, stationery ₹600, miscellaneous ₹900). Show the balance of the petty cash book at the end of June and explain how the head cashier will reimburse the petty cashier.

Closing balance of petty cash book = ₹3,000 (imprest) − ₹2,650 (total payments) = ₹350, which represents the actual cash remaining with the petty cashier at the end of June.
The petty cashier presents the petty cash book and supporting vouchers to the head cashier; the head cashier verifies the entries and reimburses exactly ₹2,650 — the amount spent — to the petty cashier.
After reimbursement, the petty cashier starts July with the full imprest amount of ₹3,000 again; in the ledger, expense accounts (Postage, Conveyance, Stationery, Miscellaneous) are debited with their respective totals and Petty Cash Account is credited with ₹2,650.

ByteNotes

Application Question

Medium difficulty • Concept in a practical situation

Medium

Question 4

Applied Concept

M/s Koina Supplies of Delhi sold goods on credit to M/s Raman Traders, Delhi (intra-state): 2 water purifiers at ₹2,100 each and 5 buckets at ₹130 each. CGST and SGST are applicable at 6% each. Prepare the entry in the analytical sales book.

Calculate sales value: (2 × ₹2,100) + (5 × ₹130) = ₹4,200 + ₹650 = ₹4,850 (no trade discount mentioned).
CGST @ 6% = ₹291; SGST @ 6% = ₹291; Total invoice value = ₹4,850 + ₹291 + ₹291 = ₹5,432.
In the analytical sales book: record ₹4,850 in the Sales column, ₹291 in the CGST column, and ₹291 in the SGST column against M/s Raman Traders; IGST column remains blank since this is an intra-state transaction.

ByteNotes

Application Question

Medium difficulty • Concept in a practical situation

Medium

Question 5

Applied Concept

M/s Hi-Life Fashions received goods back from a customer M/s Ratna Traders: 3 shirts at ₹300 each and 1 pant at ₹700, less 10% trade discount (Credit Note No. 201). Show the entry in the sales return book and its effect on ledger accounts.

Gross value of goods returned = (3 × ₹300) + (1 × ₹700) = ₹900 + ₹700 = ₹1,600; less 10% trade discount = ₹160; net amount = ₹1,440.
In the sales return book: record Credit Note No. 201, M/s Ratna Traders (as customer), net amount ₹1,440.
Ledger effect: Ratna Traders Account (customer) is credited with ₹1,440 (reducing the amount they owe); Sales Return Account is debited with ₹1,440 in total at period end.

ByteNotes

Application Question

Medium difficulty • Concept in a practical situation

Medium

Question 6

Applied Concept

On September 1, M/s Tools India had a bank balance of ₹10,000. On September 5, they withdrew ₹3,000 from the bank for office use. On September 10, they deposited ₹5,000 cash into the bank. Show these transactions in the double column cash book and identify contra entries.

Sept. 5 — Cash withdrawal from bank: Debit side in cash column ₹3,000 (cash received) and credit side in bank column ₹3,000 (bank reduced); 'C' written in L.F. column for both — this is a contra entry.
Sept. 10 — Cash deposited in bank: Debit side in bank column ₹5,000 (bank increased) and credit side in cash column ₹5,000 (cash reduced); 'C' written in L.F. column for both — this is also a contra entry.
Both transactions are contra entries because both the debit and credit sides of each transaction appear within the cash book itself; no ledger posting is required for these entries.

ByteNotes

Application Question

Medium difficulty • Concept in a practical situation

Medium

Question 7

Applied Concept

A business purchases furniture on credit from a supplier for ₹25,000. The accountant is unsure whether to record this in the purchases book or the journal proper. Advise the accountant with reasons.

The purchases book is meant exclusively for credit purchases of goods that the firm deals in (merchandise for resale); furniture is a fixed asset, not goods for resale.
Therefore, the purchase of furniture on credit must be recorded in the Journal Proper (not the purchases book), with the entry: Furniture Account Dr. / To Supplier's Account.
Recording it in the purchases book would incorrectly inflate the Purchases Account balance and misstate both the cost of goods sold and the firm's asset position.

ByteNotes

Application Question

Medium difficulty • Concept in a practical situation

Medium

Question 8

Applied Concept

M/s Samaira Traders gives their petty cashier ₹2,000 on May 1. The petty cashier spends ₹513 on postage, ₹420 on conveyance, ₹350 on stationery, and ₹204 on miscellaneous expenses. What is the closing balance? How will the journal entry for posting look?

Total expenses = ₹513 + ₹420 + ₹350 + ₹204 = ₹1,487; Closing balance = ₹2,000 − ₹1,487 = ₹513, which is the cash remaining with the petty cashier.
Journal entry for posting: Postage A/c Dr. ₹513; Conveyance A/c Dr. ₹420; Stationery A/c Dr. ₹350; Miscellaneous Expenses A/c Dr. ₹204 — all To Petty Cash A/c ₹1,487.
A separate journal entry reimburses the petty cashier: Petty Cash A/c Dr. ₹1,487 / To Cash A/c ₹1,487; this restores the imprest amount at the start of the next period.

ByteNotes

Application Question

Medium difficulty • Concept in a practical situation

Medium

Question 9

Applied Concept

With reference to M/s Vineet Stores, goods were returned by M/s Abha Traders: 20 Card Books at ₹10 each and 5 Note Books at ₹35 each, less 5% trade discount (Credit Note No. 207). Show the entry in the sales return book.

Gross value = (20 × ₹10) + (5 × ₹35) = ₹200 + ₹175 = ₹375; less 5% trade discount = ₹18.75 (rounded to ₹18.75); net amount = ₹356.25.
In the sales return book: record Credit Note No. 207, name M/s Abha Traders, net amount ₹356.25 (trade discount deducted as per the terms).
Ledger effect: Abha Traders Account is credited ₹356.25 (reducing the customer's outstanding balance), and the periodic total of the sales return book is debited to Sales Return Account.

ByteNotes

Application Question

Hard difficulty • Concept in a practical situation

Hard

Question 10

Applied Concept

A firm issues a cheque to a supplier. The supplier presents it to the bank but it is returned dishonoured due to insufficient funds. What document will the supplier prepare? How will this event be recorded in the firm's books?

From the supplier's perspective, the supplier will treat the dishonoured cheque as if the payment was never received; the firm's account in the supplier's ledger will continue to show the balance outstanding.
In the firm's books, the firm had recorded the cheque on the credit side of the double column cash book in the bank column when it was issued; on dishonour, the bank debits the firm's account and the firm should record the return in its accounts.
The firm's bank account is reduced again (bank debits the firm), so the entry may be reversed or adjustments made via the bank reconciliation statement; the supplier remains a creditor for the original amount.

ByteNotes

Premium Access

Unlock all Application Questions

You are viewing 10 free application questions from this chapter. Upgrade to Premium to unlock the remaining 13 questions.

Upgrade to Premium13 questions locked

Chapter sections

Chapter recording-of-transactions-ii: Recording of Transactions - II | Application Questions

M/s Sharma Enterprises received a cheque of ₹15,000 from a customer on 5th August 2017 but deposited it in the bank on 8th August 2017. On 10th August, the bank returned the cheque as dishonoured. Show how all three events are recorded in the double column cash book.

M/s Kanika Traders purchased 20 Mini-size TVs at ₹2,000 each from M/s Neema Electronics, with a trade discount of 20% (Invoice No. 3250). Later, 2 TVs were found defective and returned. Show the entries in the purchases book and the purchases return book.

M/s Koina Supplies of Delhi sold goods on credit to M/s Raman Traders, Delhi (intra-state): 2 water purifiers at ₹2,100 each and 5 buckets at ₹130 each. CGST and SGST are applicable at 6% each. Prepare the entry in the analytical sales book.

M/s Hi-Life Fashions received goods back from a customer M/s Ratna Traders: 3 shirts at ₹300 each and 1 pant at ₹700, less 10% trade discount (Credit Note No. 201). Show the entry in the sales return book and its effect on ledger accounts.

On September 1, M/s Tools India had a bank balance of ₹10,000. On September 5, they withdrew ₹3,000 from the bank for office use. On September 10, they deposited ₹5,000 cash into the bank. Show these transactions in the double column cash book and identify contra entries.

A business purchases furniture on credit from a supplier for ₹25,000. The accountant is unsure whether to record this in the purchases book or the journal proper. Advise the accountant with reasons.

M/s Samaira Traders gives their petty cashier ₹2,000 on May 1. The petty cashier spends ₹513 on postage, ₹420 on conveyance, ₹350 on stationery, and ₹204 on miscellaneous expenses. What is the closing balance? How will the journal entry for posting look?

With reference to M/s Vineet Stores, goods were returned by M/s Abha Traders: 20 Card Books at ₹10 each and 5 Note Books at ₹35 each, less 5% trade discount (Credit Note No. 207). Show the entry in the sales return book.

A firm issues a cheque to a supplier. The supplier presents it to the bank but it is returned dishonoured due to insufficient funds. What document will the supplier prepare? How will this event be recorded in the firm's books?

Unlock all Application Questions