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Final Accounts of a Proprietary Concern 11th BK Commerce Chapter 9 Solutions Maharashtra Board

Balbharti Maharashtra State Board Bookkeeping and Accountancy 11th Solutions Chapter 9 Final Accounts of a Proprietary Concern Textbook Exercise Questions and Answers.

Class 11 Commerce BK Chapter 9 Exercise Solutions

1. Answer in One Sentence.

Question 1.
What is Trading Account?
Answer:
An account in which direct expenses are compared with direct incomes to find out gross profit or gross loss for a given period is known as Trading Account.

Question 2.
What do you mean by Profit and Loss Account?
Answer:
An account in which indirect expenses are compared with indirect incomes to find out net profit or net loss for a given period is known as the Profit and Loss Account.

Question 3.
Why Balance Sheet is prepared?
Answer:
The balance sheet is prepared to ascertain the financial position of the business on a specific date usually at the end of the accounting year.

Question 4.
State the meaning of Final Accounts.
Answer:
Final Accounts are the group of Trading Account, Profit and loss account and Balance sheet prepared to know the results of business for a given period.

Question 5.
What is Net Profit?
Answer:
When the total credit side of Profit and Loss A/c is greater than the total of debit side, it indicates credit balance which is known as net profit.

Question 6.
What do you mean by Gross Profit?
Answer:
When the total credit side of Trading A/c is greater than the total of debit side, it indicates credit balance, which is called gross profit.

Question 7.
State the meaning of Accrued Income?
Answer:
Income that is due and accumulated but not yet actually received during the current accounting year is called accrued income.

Question 8.
State the meaning of Outstanding Expenses?
Answer:
The expenses which are incurred in the current year, but not paid partly or fully during the current accounting year are termed as outstanding expenses.

Question 9.
What is Depreciation?
Answer:
Depreciation means a continuous reduction in the value of property or asset due to wear and tear, accident, fall in the market price, the passage of time, etc.

Question 10.
What do you mean by Prepaid Expenses?
Answer:
The expense which is paid in advance before they are due for payment is called prepaid expenses.

2. Give a word, term, or phrase which can substitute each of the following statements:

Question 1.
Expenses are paid before it is due.
Answer:
Prepaid Expenses

Question 2.
Income due but not yet received.
Answer:
Accrued Income

Question 3.
Carriage paid on the sale of goods.
Answer:
Carriage Outwards

Question 4.
Statement of Assets and liabilities.
Answer:
Balance Sheet

Question 5.
Account prepared to know Net Profit or Net loss.
Answer:
Profit and Loss A/c

Question 6.
Value of goods remaining unsold at the end of the year.
Answer:
Closing Stock

Question 7.
The provision was made to compensate the loss on account of likely debts.
Answer:
Provision for Bad and Doubtful Debts

Question 8.
The accounts are prepared at the end of the accounting year to know the profit or loss and financial position of the business.
Answer:
Final Accounts

Question 9.
An amount spent on promoting the sale of goods.
Answer:
Selling Expenses

Question 10.
Additional information is provided below the Trial Balance.
Answer:
Adjustments

3. Select the most appropriate alternatives given below and rewrite the sentence:

Question 1.
_____________ is excess of assets over liabilities.
(a) Goodwill
(b) Capital
(c) Investments
(d) Drawings
Answer:
(b) Capital

Question 2.
Discount earned is transferred to credit side of _____________ account.
(a) Current
(b) Profit and Loss
(c) Trading
(d) Capital
Answer:
(b) Profit and Loss

Question 3.
_____________ is a statement which shows the financial position of business on a specific date.
(a) Trading Account
(b) Trial Balance
(c) Profit and Loss A/c
(d) Balance Sheet
Answer:
(d) Balance Sheet

Question 4.
Outstanding expenses are shown on the _____________ side of Balance sheet.
(a) Assets
(b) Liability
(c) Both
(d) None of these
Answer:
(b) Liability

Question 5.
Interest on Drawing is credited to _____________ Account.
(a) Trading
(b) Profit and Loss
(c) Capital
(d) All
Answer:
(b) Profit and Loss

Question 6.
Debit balance of Trading Account means _____________
(a) Gross Loss
(b) Net Loss
(c) Net Profit
(d) Gross Profit
Answer:
(a) Gross Loss

Question 7.
Carriage Inward is debited to _____________ Account.
(a) Trading
(b) Profit and Loss
(c) Capital
(d) Bank
Answer:
(a) Trading

Question 8.
Excess of credit over to debit in Profit and Loss A/c indicates _____________
(a) Net Profit
(b) Gross Profit
(c) Gross Loss
(d) Net Loss
Answer:
(a) Net Profit

Question 9.
Closing stock is always valued at cost or market price which is _____________
(a) more
(b) less
(c) zero
(d) equal
Answer:
(b) less

Question 10.
When specific date is not given, in that case interest on drawings is charged for _____________ month.
(a) Four
(b) Six
(c) Eight
(d) Nine
Answer:
(b) Six

4. State True or False with reasons:

Question 1.
In every adjustment at least there are three effects.
Answer:
This statement is False.
There are at least two effects in every adjustment of final accounts.

Question 2.
Every item of Trial Balance has only one effect.
Answer:
This statement is True.
Every transaction is recorded through journal or subsidiary books with the principle of the double-entry book-keeping system. Journal and subsidiary books are posted to the ledger account and trial balance is prepared from the balances of the ledger so there are already two effects passed. So every item of Trial Balance has only one effect.

Question 3.
Income due but not received is a liability.
Answer:
This statement is False.
Income due but not received is an Asset and not a liability.

Question 4.
Goodwill is not a fictitious asset.
Answer:
This statement is True.
Goodwill is the reputation or name and fame of a business organization in the market. It is the money value of a business reputation earned by a business. It is an intangible asset.
Fictitious assets are created by accounting entry in the books of accounts it doesn’t have any realizable value.
E.g.: Share issue expenses.

Question 5.
The credit balance of the Profit & Loss account shows a net profit.
Answer:
This statement is True.
The credit side of profit and loss A/c represents incomes when the credit side is greater than the debit side (expenses) it shows the Net Profit of the year.

5. Fill in the blanks:

Question 1.
Gross Profit is transferred to _____________ account.
Answer:
Profit and Loss A/c

Question 2.
Debit Balance of Trading Account indicates _____________
Answer:
Gross Loss

Question 3.
Income Receivable appears on _____________ side of Balance Sheet.
Answer:
Asset

Question 4.
Interest on Bank Loan is debited to _____________ A/c.
Answer:
Profit and Loss A/c

Question 5.
Profit and Loss account is prepared to find out _____________ results of the business.
Answer:
Net Working

Question 6.
All indirect/operating expenses are transferred to _____________ account.
Answer:
Profit and Loss A/c

Question 7.
Interest of proprietor’s drawing is credited to _____________ account.
Answer:
Profit and Loss A/c

Question 8.
An excess of debit over credit in the Profit & Loss A/c represents the _____________
Answer:
Net Loss

Question 9.
All direct expenses are transferred to _____________ account.
Answer:
Trading A/c

Question 10.
Balance Sheet is _____________ of assets & liabilities.
Answer:
Statement

6. Find the odd one:

Question 1.
Rent, Salary, Insurance, Plant, and Machinery.
Answer:
Plant and Machinery

Question 2.
Purchases, Closing stock, Debtors, Factory Rent.
Answer:

Question 3.
Capital, Bills Payable, Debtors, Outstanding wages.
Answer:
Debtors

Question 4.
Advertisement, Travelling Expenses, Factory Rent, Insurance.
Answer:
Factory Rent

Question 5.
Cash in Hand, Debtors, Outstanding Income, Reserve for Doubtful Debts.
Answer:
Reserve for Doubtful Debts

7. Do you agree or disagree with the following statements:

Question 1.
Reserve for bad debts is created by debiting Profit and Loss Account.
Answer:
Agree

Question 2.
A balance Sheet is a statement as well as an account.
Answer:
Disagree

Question 3.
Indirect Expenses are debited to Trading Account.
Answer:
Disagree

Question 4.
Bank Overdraft is treated as an Internal Liability.
Answer:
Disagree

Question 5.
Capital is excess of Liabilities over Assets.
Answer:
Disagree

8. Correct and Rewrite the following statements:

Question 1.
The balancing figure of the Trading Account is Net Profit or Net Loss.
Answer:
The balancing figure of the Trading Account is Gross Profit or Gross Loss.

Question 2.
All direct expenses are debited to the Profit and Loss Account.
Answer:
All direct expenses are debited to Trading Account.

Question 3.
When the credit side of the Profit and Loss Account is greater than the debit side, it is called Net Loss.
Answer:
When the credit side of the Profit and Loss account is greater than the debit side, it is called Net Profit.

Question 4.
Capital A/c……………..Dr.
To Profit and Loss Account
(Being Net Profit transferred to Capital A/c)
Answer:
Profit and Loss Account…………….Dr.
To Capital A/c
(Being Net Profit transferred to Capital A/c)

Question 5.
Trading A/c……………Dr.
To Sales A/c
(Being Sales transferred to Trading A/c)
Answer:
Sales A/c…………Dr
To Trading A/c
(Being sales transferred to Trading A/c)

9. Calculate the following.

Question 1.
Calculate the Capital

Solution:
Capital = Assets – Liabilities
= ₹ 1,00,000 – ₹ 39,950
= ₹ 60,050

Question 2.
The machinery of ₹ 35,500 is purchased on 1st July 2018 and on the same day ₹ 4,500 are spent on the installation of the Machinery. The proprietor has decided to Depreciate Machinery at the rate of 7% p.a. Calculate the amount of depreciation, assuming that accounting year is ending on 31st March every year.
Solution:
Cost of Machinery = Purchase Price + Installation Charges
= 35,500 + 4,500
= ₹ 40,000
Depreciation for 9 months = 40,000 × \(\frac{7}{100} \times \frac{9}{12}\) = ₹ 2,100

Question 3.
Mr. Pramod borrowed a Loan from the State Bank of India ₹ 3,50,000 on 1st Oct. 2018 at the rate of interest of 12% p.a. Calculate the Interest on a bank loan for the year 2018-19, assuming that the financial year-end on 31st March every year.
Solution:
Interest on Bank loan for 6 months = 3,50,000 × \(\frac{12}{100} \times \frac{6}{12}\) = ₹ 21,000

Question 4.
Annual Insurance Premium ₹ 8,000 is paid on 1st Dec 2018. Calculate the amount of Insurance Premium for the accounting year ending on 31st March 2019.
Solution:
Annual Insurance Premium for 12 months = ₹ 8,000
Less: Prepaid for 8 months = ₹ 5,333
Insurance for 4 months (01.12.18 to 31.03.19) = ₹ 2,667

Question 5.
Calculate the Gross Profit/Gross Loss
Purchases A/c ₹ 15,500, Sales A/c ₹ 30,000, Carriage Inward ₹ 1,200, Opening Stock ₹ 5,000, Purchases Returns ₹ 500, Closing Stock ₹ 18,000
Solution:
Cost of Goods Sold = Opening Stock + Purchases – Purchases Returns + Carriage Inward – Closing Stock
= 5,000 + 15,500 – 500 + 1,200 – 18,000
= ₹ 3,200
Gross Profit = Sales – Cost of goods sold
= 30,000 – 3,200
= ₹ 26,800

Practical Problems

Question 1.
From the following Balances of Jayashri Traders, you are required to prepare Trading Account for the year ended 31/03/2019.

Solution:
In the books of Jayashri Traders

Question 2.
Prepare Profit and Loss Account of Sanjay Brothers for the year ended 31st March 2018 from the following balances.
1. Bank charges ₹ 22,000
2. Interest (Cr.) ₹ 16,000
3. Sundry expenses ₹ 42,000
4. Insurance ₹ 35,000
5. Salaries ₹ 40,000
6. Rates and Taxes ₹ 13,000
7. Postage ₹ 8,000
8. Advertisement ₹ 40,000
9. Rent paid ₹ 32,000
10. Bad debts ₹ 10,000
11. Commission (Cr) ₹ 17,500
12. Printing & Stationery ₹ 21,000
13. Loss by fire ₹ 18,000
14. Discount (Dr) ₹ 23,000
15. Discount (Cr) ₹ 37,000
16. Misc. Income ₹ 14,000
17. Depreciation ₹ 34,000
18. Carriage Outwards ₹ 60,000
19. Godown Expenses ₹ 40,000
Note: Gross Profit ₹ 4,07,500
Solution:
In the books of the Sanjay Brothers.

Question 3.
From the following Trial Balance of Sanjiv & Sons. Prepare Trading Account and Profit & Loss Account for the year ending on 31st March 2019 and a Balance Sheet as on that date.

Additional information:
1. Closing stock on 31st March 2019, was at cost ₹ 60,000 and Market Price ₹ 70,000.
2. Outstanding expenses: Wages ₹ 4,000, Salary ₹ 2,400
3. Provide depreciation at 10% on Motor Van and 5% on Furniture.
4. Write off ₹ 2,000 for bad debts and create R.D.D. at 5% on debtors.
5. Provide 10% p.a. interest on capital.
Solution:
In the books of Sanjiv & Sons

Balance Sheet as of 31st March, 2019

Question 4.
From the following Trial Balance of Nandini & Co. as of 31st March 2019. Prepare Final Accounts after considering the adjustments given below.

Adjustments:
1. Closing stock valued at ₹ 1,00,000.
2. Write off ₹ 2,000 as bad debts and create a provision for doubtful debts @ 5% on Sundry Debtor.
3. Depreciate Machinery by 10% p.a. and Loose Tools is valued at ₹ 1,00,000.
4. Charge Interest on Capital @ 2% p.a.
Solution:
In the books of Nandini & Co.

Balance Sheet as of 31st March 2019

Question 5.
Prepare Final accounts of Abdul Traders for the year ending 31st March 2019 with the help of the following Trial Balance and Adjustments.
Trial Balance as of 31st March 2019.

Adjustments:
1. Closing stock valued at ₹ 89,600
2. Outstanding expenses Salaries ₹ 2,000, Wages ₹ 4,000
3. Charge depreciation on Machinery @ 10%
4. Bad debts are written off ₹ 2,000 and create a provision for bad and doubtful debts 5% on Sundry Debtors.
Solution:
In the books of Abdul Traders.


Balance Sheet as of 31st March 2019

Question 6.
Following is the Trial Balance of Geeta Enterprises. You are required to prepare a Trading and Profit & Loss Account for the year ended 31st March 2019 and the Balance Sheet as of that date after taking into account the additional information provided to you.
Trial Balance as of 31st March, 2019

Additional information:
1. Closing stock of goods on 31st March 2019 valued at ₹ 7,100 at cost price and ₹ 7,500/- as market price.
2. Travelling expenses include ₹ 125 spent on personal traveling.
3. ₹ 175 is to be written off as bad debts which were due from Mr. Ashok, a debtor, and 5% R.D.D. is to be maintained on debtors.
4. Reserve for discount on debtors as well as on creditors is to be maintained at 2% and 3% respectively.
5. Provide 10% depreciation on Plant & Machinery and Furniture.
Solution:
In the books of Geeta Enterprises.

Balance Sheet as of 31st March 2019

Question 7.
Following are the closing ledger balances of Deepak & Co. Prepare Trading Account and Profit & Loss Account for the year ended 31st March 2019 and Balance sheet as of that date.
Ledger Balances of Mr. Deepak and Co. as of 31st March, 2019

Adjustments:
1. Closing stock was valued at ₹ 60,000
2. An amount of ₹ 3,000 is still to be received on account of commission.
3. Provision for discount on debtors and Provision for discount on Creditors are to be created 2% and 3% respectively.
4. Amount of Furniture is to reduce by ₹ 4,500 and Building by 10%.
5. Outstanding expenses Salaries ₹ 4,500 and Wages ₹ 1,500.
Solution:
In the books of Deepak & Co.

Balance Sheet as of 31st March 2019

Question 8.
Following is the Trial Balance extracted from the books of Raju Traders. You are required to prepare Trading A/c, Profit & Loss A/c for the year ending on 31st March 2019 and Balance Sheet as of that date after Considering the additional information given below.
Trial Balance as of 31st March 2019

Adjustments:
1. Closing stock is valued at ₹ 40,000 at Cost Price and ₹ 44,000 as Market Price.
2. Provide Depreciation on Plant & Machinery, Furniture, Computers @ 5%, 10%, 15% respectively.
3. Salaries are paid for 10 months only.
4. Further Bad debts amounted to ₹ 400 and provide 10% R.D.D. on Sundry Debtors.
5. Advertisement is paid for 2 years.
Solution:
In the books of Raju Traders.


Balance Sheet as of 31st March 2019

Question 9.
From the following Trial Balance of Shradha Enterprises, you are required to prepare Final Accounts for the year ending on 31st March 2019.
Trial Balance as of 31st March 2019

Adjustments:
1. Insurance is prepaid to the extent of ₹ 2,250
2. Closing stock is valued at ₹ 3,80,000 Cost price and ₹ 4,00,000 as Market price.
3. Outstanding Expenses are Wages ₹ 6,000 and Rent ₹ 5,000
4. Write off further had debts ₹ 1,500 and provide 5% Reserve for doubtful debts.
5. Depreciation on Furniture and Plant & Machinery at 10% p.a. and on Freehold Premises at 15% p.a.
Solution:
In the books of Shradha Enterprises

Balance Sheet as of 31st March 2019

Question 10.
From the following Trial Balance of Ayub & Co. as of 31st March 2019, you are required to prepare Trading Account, Profit and Loss Account for the year ending 31st March 2019, and Balance Sheet as of that date after making necessary adjustments.
Trial Balance as of 31st March 2019

Adjustments:
1. Stock on hand on 31st March 2019 valued at ₹ 60,000
2. Rent amounting to ₹ 600 Prepaid.
3. Bad Debts ₹ 600 and create a Provision for Doubtful Debts 5%
4. Depreciation on Plant & Machinery by 10% and Furniture is valued at ₹ 4,500
5. Outstanding Salaries ₹ 900
Solution:
In the books of Ayub and Co.

Balance Sheet as of 31st March 2019

Question 11.
From the following Trial Balance of Rajnish & Sons and the additional information given below prepare Trading & Profit and Loss Account for the year ending on 31st March 2018 and Balance Sheet as on that date.
Trial Balance as of 31st March 2018

Adjustments:
1. Closing Stock valued at ₹ 3,00,000 cost price and ₹ 3,20,000 at Market price.
2. Salaries were paid for 10 months only.
3. Insurance is paid for one year ending on 30.06.2018
4. One of the debtors Mr. Amit became insolvent, from whom ₹ 10,000 was not received.
5. 5% R.D.D. is to be maintained on Debtors.
6. Depreciate Machinery & Furniture @ 10% and 5% respectively.
Solution:
In the books of Rajnish & Sons


Balance Sheet as of 31st March 2018

Question 12.
From the following Trial Balance of John & Sons, you are required to prepare Trading Account, Profit and Loss Account for the year ending 31st March 2019 and Balance Sheet as of that date.
Trial Balance as of 31st March 2019

Adjustments:
1. Closing Stock ₹ 27,000
2. Charge Depreciation on Machinery and Motor car @ 10% and 5% respectively.
3. Create R.D.D. 5% on Sundry Debtors
4. Interest on Drawings @ 5% p.a.
5. Create Discount on Sundry Creditors 3%
6. Advertisement ₹ 1,000 is prepaid.
7. Outstanding Rent ₹ 1,500
Solution:
In the books of John and Sons

Balance Sheet as of 31st March 2019

Question 13.
From the following Trial Balance of Pushkraj, you are required to prepare Trading Account and Profit and Loss Account for the year ended 31st March 2019 and Balance Sheet as of that date.
Trial Balance as of 31st March 2019

Adjustments:
1. Stock on 31st March 2019 was valued at ₹ 28,000
2. Create a Provision for doubtful debts on Sundry Debtors @ 5%
3. Depreciate Motor car by 5% p.a. and Machinery by 7% p.a.
4. Outstanding expenses Rent ₹ 800 & Wages ₹ 1,000
5. Charge interest on Capital @ 3% p.a.
6. Goods of ₹ 4,000 withdrawn by the proprietor for personal use.
Solution:
In the books of Pushkraj


Balance Sheet as of 31st March 2019

Question 14.
From the following Trial Balance of Jyoti, Trading Co. Prepare the Trading Account and Profit and Loss Account for the year ended 31st March 2019 and Balance Sheet as of that date.
Trial Balance as of 31st March 2019

Adjustments:
1. Closing stock valued at ₹ 58,000 Cost Price while the Market price is ₹ 60,000
2. Write off ₹ 1,200 as Bad debts and create provision for doubtful debts 2% on Sundry Debtors and also create provision for discount on Creditors 5%.
3. Loose Tools is valued at ₹ 52,000 and depreciate Furniture by 10% p.a.
4. Outstanding expenses Salary ₹ 1,000 and Wages ₹ 225
5. Charge interest on Capital 2% and on Drawings 10%.
Solution:
In the books of Jyoti Trading Co.

Balance Sheet as of 31st March 2019

Question 15.
From the following Trial Balance of Manish Enterprise, Prepare the Trading Account and Profit and Loss Account for the year ended 31st March 2019 and Balance sheet as of that date.
Trial Balance as of 31st March 2019

Adjustments:
1. Closing Stock was ₹ 32,000.
2. Write off 50% of patents, depreciate Plant & Machinery by 10% p.a and Office Equipment by 20%.
3. Reserve for bad debts is to be created 5% and discount on Debtors 2%.
4. Outstanding expenses Mobile charges ₹ 300 and Freight ₹ 500
5. Charge Interest on Capital @ 5%.
6. Goods of ₹ 2,000 distributed on free samples.
Solution:
In the books of Manish Enterprise

Balance Sheet as of 31st March 2019

Class 11 Commerce Book Keeping & Accountancy Textbook Solutions

• Introduction to Book Keeping and Accountancy Class 11 Commerce BK
• Meaning and Fundamentals of Double Entry Book-Keeping Class 11 Commerce BK
• Journal Class 11 Commerce BK
• Ledger Class 11 Commerce BK
• Subsidiary Books Class 11 Commerce BK
• Bank Reconciliation Statement Class 11 Commerce BK
• Depreciation Class 11 Commerce BK
• Rectification of Errors Class 11 Commerce BK
• Final Accounts of a Proprietary Concern Class 11 Commerce BK
• Single Entry System Class 11 Commerce BK

Rectification of Errors 11th BK Commerce Chapter 8 Solutions Maharashtra Board

Balbharti Maharashtra State Board Bookkeeping and Accountancy 11th Solutions Chapter 8 Rectification of Errors Textbook Exercise Questions and Answers.

Class 11 Commerce BK Chapter 8 Exercise Solutions

1. Answer in One Sentence:

Question 1.
What is meant by rectification of errors?
Answer:
The correction of accounting errors in a systematic manner is called the rectification of errors.

Question 2.
What is meant by the error of principle?
Answer:
An error committed by the accountant by not following accounting principles properly is called an error of principle.

Question 3.
What is meant by the error of partial omission?
Answer:
An error in which a transaction is correctly recorded in the books of account but one of the postings is wrong is known as partial omission. If will affect the trial balance.

Question 4.
What is meant by the error of complete omission?
Answer:
Failure on the part of an accountant to record the business transactions in the books of account is called an error of complete omission. It does not affect the agreement of the trial balance.

Question 5.
What are compensating errors?
Answer:
The error which is committed on one side of the ledger account compensates for an error committed on the other side of some other leader account is called compensating error.

2. Give one word/term or phrase for each of the following statements.

Question 1.
Errors that affect the agreement of Trial Balance.
Answer:
One-sided errors

Question 2.
Taking the total more while closing books of accounts.
Answer:
Overcasting

Question 3.
The error arises when a transaction is partially or completely omitted to be recorded in the books of accounts.
Answer:
Error of omission

Question 4.
Transactions recorded due to violating of the accounting principles.
Answer:
Error of principle

Question 5.
Accounts to which difference in Trial Balance is transferred.
Answer:
Suspense account

Question 6.
Error in which the effect of one mistake is nullified by another mistake.
Answer:
Compensating error

Question 7.
Errors that are not disclosed by the Trial Balance.
Answer:
Two-sided errors

Question 8.
Errors of incorrect entries or wrong posting.
Answer:
Errors of commission

3. Select the most appropriate alternative from those given below and rewrite the sentence.

Question 1.
Rectification entries are passed in ______________
(a) Journal Proper
(b) Ledger
(c) Balance Sheet
(d) Cash Book
Answer:
(a) Journal Proper

Question 2.
The type of error for which journal entry is always required for rectification ______________
(a) over casting
(b) one sided error
(c) under casting
(d) two sided error
Answer:
(d) two-sided error

Question 3.
Error occurred due to wrong posting are called error of ______________
(a) principal
(b) commission
(c) compensating
(d) omission
Answer:
(b) commission

Question 4.
If transaction is totally omitted from the books, it is called ______________
(a) Error of recording
(b) Error of omission
(c) Error of principle
(d) Error of commission
Answer:
(b) Error of omission

Question 5.
Suspense Account is opened when ______________ does not tally.
(a) Balance sheet
(b) Trading Account
(c) Profit and loss
(d) Trial Balance
Answer:
(d) Trial Balance

4. State whether the following statements are True or False with reasons.

Question 1.
Trial Balance is prepared from the balance of ledger accounts.
Answer:
This statement is True.
A Trial balance is a statement of debit and credit balances extracted from the various accounts in the ledger. All business transactions are recorded first in Journal or in subsidiary books and subsequently, they are posted to respective ledger accounts. At the end of the year, they are balanced and transferred to the Trial balance.

Question 2.
A Trial Balance can agree in spite of certain errors.
Answer:
This statement is True.
The error of principle or error of complete omission or compensatory error is not disclosed by the Trial Balance. It will be agreed with debit and credit balances but there may be a certain error.

Question 3.
Rectification entries are passed in Cash Book.
Answer:
This statement is False.
Rectification entries are passed in the Journal Proper book. Cashbook is mainly used for cash transactions and not for rectification of errors.

Question 4.
There is no need to open a Suspense Account if the Trial Balance agrees.
Answer:
This statement is True.
When the Trial Balance does not tally a temporary account called ‘Suspense Account’ is opened to balance the trial balance. So when the trial balance is agreed there is no need to open ‘Suspense Account’.

Question 5.
All the errors can be rectified only through Suspense Account.
Answer:
This statement is False.
The errors of principle and errors of complete omission can be rectified by passing entries. So all the errors can not be rectified by the Trial Balance.

5. Do you agree or disagree with the following statements.

Question 1.
The unintentional omission or commission of amounts and accounts while recording the transactions is known as an error.
Answer:
Agree

Question 2.
The errors committed due to wrong recording, wrong posting, wrong totaling, wrong balancing, wrong calculations are known as Arithmetical errors.
Answer:
Disagree

Question 3.
When one or more debit errors happen to equal one or more credit errors it is said to be a Compensating error.
Answer:
Agree

Question 4.
The agreement of Trial balance is not affected when a transaction is not recorded at all in the original Books.
Answer:
Agree

Question 5.
When a transaction is not recorded according to the principles of accounting it is known as Compensating error.
Answer:
Disagree

6. Complete the following sentence.

Question 1.
______________ is assured only when there are no errors in the books of accounts.
Answer:
Accuracy

Question 2.
Transactions recorded in contravention of the accounting principles are known as ______________
Answer:
errors of principle

Question 3.
______________ entry depends generally on when the error is detected.
Answer:
Rectifying

Question 4.
Temporary account opened to rectify the entry is known as ______________
Answer:
suspense account

Question 5.
Errors are caused due to ______________ recording of transactions.
Answer:
wrong

Practical Problems

Question 1.
Rectify the following errors:
1. Salary paid to Pravin was wrongly debited to his personal account ₹ 6,500/-
2. Cash Purchases ₹ 12,000/- from Siddhant Traders was debited to Siddhant Trader Account.
3. Paid Rent ₹ 5,000 to landlord Shantilal was debited to his personal account.
4. Received interest ₹ 700 from Bank was wrongly credited to Bank Account.
5. Advertisement expenses ₹ 5,000/- paid to Times of India was debited to Times of India.
Solution:
Journal Proper

Working Note:

Question 2.
Rectify the following errors:
1. Machinery purchased for ₹ 9,000/- has been debited to Purchase Account.
2. ₹ 15,000/- paid to Indus Company for Machinery purchased stand debited to Indus Company Account.
3. Printer Purchased for ₹ 10,000/- was wrongly passed through Purchase Book.
4. ₹ 800/- paid to Mohan as Legal Charges were debited to his personal account.
5. Cash paid to Ramesh ₹ 500/- was debited to Suresh.
Solution:
Journal Proper

Working Note:

Question 3.
Rectify the following errors:
1. A credit sale of goods to Sanjay ₹ 3,000/- has been wrongly passed through the ‘Purchase Book’.
2. A credit purchase of goods from Sheetal amounting to ₹ 2,000/- has been wrongly passed through the ‘Sales Book’.
3. A return of goods worth ₹ 500/- to Umesh was passed through the ‘Sales Return Book’.
4. A return of goods worth ₹ 900/- by Ganesh was entered in ‘Purchase Return Book’.
5. Credit Purchases from Neha ₹ 10,000/- were recorded as ₹ 11,000/-
Solution:
Journal Proper

Working Note:

Question 4.
Rectify the following errors:
1. Paid Rent ₹ 2,000/- to Nikhil has been debited to his personal account.
2. Total of the Sales Return Book is wrongly taken more by ₹ 200/-
3. Goods sold to Dhanraj ₹ 6,500/- on credit were not posted to his personal account.
4. Old Computer purchased was debited to Repairs account ₹ 8,000/-
5. Repairs to Furniture of ₹ 500/- have been debited to Furniture account.
Solution:
Journal Proper

Working Note:

Question 5.
Rectify the following errors:
1. Wages paid for the construction of Building ₹ 10,000/- was wrongly debited to Wages Account.
2. Cash received from Patel ₹ 5,000/- though recorded in Cash Book was not posted to his personal account in the Ledger.
3. Sold goods worth ₹ 9,000/- to Rohini has been wrongly debited to Mohini’s Account.
4. Material purchased for construction of Building was debited to Purchase Account ₹ 5,000/-
Solution:
Journal Proper

Working Note:

Question 6.
There was a difference of ₹ 1230/- in a Trial Balance. It was placed on the Debit side of Suspense A/c. Later on, the following errors were discovered. Pass rectifying entries and prepare Suspense A/c.
1. Sales Book was overcast by ₹ 1,000/-
2. Goods sold to Aarti for ₹ 4,400/- has been posted to her account as ₹ 4,000/-
3. Purchases Book was overcast by ₹ 100/-
4. An amount of ₹ 500/- received from Ranjeet, has not been posted to his account.
5. Goods sold to Sameer for ₹ 750/- were recorded in Purchase Book.
6. An amount of ₹ 500/- has been posted to the credit side of the Commission Account instead of ₹ 570/-
Solution:
Journal Proper

Question 7.
A bookkeeper finds that the debit side of the Trial Balance is short of ₹ 308/- and so for the time being, the balances of the side by putting the difference to Suspense Account. The following errors were disclosed.
1. The debit side of the purchases account was undercast by ₹ 100/-
2. ₹ 100/- is the monthly total of discount allowed to customers were credited to the discount account in the ledger.
3. An entry for goods sold of ₹ 102/- to Mihir was posted to his account as ₹ 120/-
4. ₹ 26/- appearing in the Cash Book as paid for the purchase of Stationery for office use have not been posted to Ledger.
5. ₹ 275/- paid by Mihir were credited to Mithali’s Account.
You are required to make the necessary Journal Entries and the Suspense Account.
Solution:
Journal Proper

Question 8.
The trial Balance of Anurag did not agree. It showed an excess credit of ₹ 6,000/-. He put the difference to Suspense Account. He discovered the following errors.
1. Cash received from Ramakant ₹ 8,000/- posted to his account as ₹ 6,000/-
2. Credit purchases from Naman ₹ 7,000/- were recorded in Sales Book. However, Naman’s Account was correctly credited.
3. Return Inwards Book overcast by ₹ 1,000/-
4. Total of Sales Book ₹ 10,000/- was not posted to Sales Account.
5. Machinery purchased for ₹ 10,000/- was posted to Purchases Account as ₹ 5,000/-.
Rectify the errors and prepare Suspense Account.
Solution:

Question 9.
There was an error in the Trial Balance of Mr. Yashwant on 31st March 2019, and the difference in Books was carried to a Suspense Account. Ongoing through the Books you found that.
1. ₹ 1,000/- being purchases return were posted to the debit of Purchase Account.
2. ₹ 4,000/- paid to Badrinath was debited to Kedarnath’s Account.
3. ₹ 5,400/- received from Kishor was posted to the debit of his account.
4. Discount received ₹ 2,000/- was posted to the debit of Discount Allowed Account.
5. ₹ 2,740/- paid to Repairs to Motor Cycle was debited to Motor Cycle Account ₹ 1,740/-
Give Journal Entries to rectify the above errors and ascertain the amount transferred to Suspense Account on 31st March 2019 by showing the Suspense Account, assuming that the Suspense Account is balanced after the above corrections.
Solution:
Journal Proper

Question 10.
Rectify the following errors.
1. Goods purchased from Kishor ₹ 700/- were passed through Sales Book.
2. An item of ₹ 120/- in respect of purchase returns, has been wrongly entered in the Purchase Book.
3. Amount payable to Subhash for repairs done to Printer ₹ 180/- and new Printer supplied for ₹ 1,920/-, were entered in the Purchase Book as ₹ 2,000/-
4. Returned goods to Nitin ₹ 1,500/- was passed through Returns Inward Book.
5. An item of ₹ 450/- relating to the Prepaid Rent account was omitted to be brought forward.
Solution:
Journal Proper

Note: In entry No. 5 Suspense A/c is not used as the problem is silent about the opening of Suspense A/c.

Class 11 Commerce Book Keeping & Accountancy Textbook Solutions

• Introduction to Book Keeping and Accountancy Class 11 Commerce BK
• Meaning and Fundamentals of Double Entry Book-Keeping Class 11 Commerce BK
• Journal Class 11 Commerce BK
• Ledger Class 11 Commerce BK
• Subsidiary Books Class 11 Commerce BK
• Bank Reconciliation Statement Class 11 Commerce BK
• Depreciation Class 11 Commerce BK
• Rectification of Errors Class 11 Commerce BK
• Final Accounts of a Proprietary Concern Class 11 Commerce BK
• Single Entry System Class 11 Commerce BK

Depreciation 11th BK Commerce Chapter 7 Solutions Maharashtra Board

Balbharti Maharashtra State Board Bookkeeping and Accountancy 11th Solutions Chapter 7 Depreciation Textbook Exercise Questions and Answers.

Class 11 Commerce BK Chapter 7 Exercise Solutions

1. Answer in One Sentence only.

Question 1.
What is depreciation?
Answer:
Depreciation is a gradual, continuous, and permanent decline or decrease in the value of a fixed asset due to its use, wear and tear or any other similar reason.

Question 2.
Why depreciation is charged?
Answer:
Depreciation on fixed assets is charged to ascertain the correct profit or loss on its sale, to show assets at the correct value in the Balance sheet, and to provide for its replacement.

Question 3.
What is a ‘Scrap Value’ of an asset?
Answer:
The total amount whatsoever received by selling used or obsolete assets or their spare parts is called residual.

Question 4.
Why depreciation is charged even in the year of loss?
Answer:
Fixed assets are used even in the year of loss and the use of fixed assets reduces its value and hence depreciation is charged even in the year of loss.

Question 5.
Which account is credited when depreciation is charged?
Answer:
The concerned fixed asset account is credited when depreciation is charged.

Question 6.
Where is the profit or loss on sale of the asset is transferred?
Answer:
The profit or loss on the sale of assets is transferred to the profit and loss account.

Question 7.
To which account balance of Depreciation A/c is transferred?
Answer:
The balance of Depreciation A/c is transferred to profit and loss A/c at the end of the year.

Question 8.
What is the formula to calculate depreciation by the Straight Line Method?
Answer:
Depreciation per annum = \(\frac{Cost of Fixed Asset (-) Scrap value}{Estimated life of Fixed Asset}\)

Question 9.
What is Fixed Instalment Method?
Answer:
A method of charging depreciation in which depreciation is charged on fixed assets at a fixed percentage of its original cost is called the fixed installment method.

Question 10.
Which account is debited when expenses are paid on the installation of the Machinery?
Answer:
The machinery account is debited when expenses are paid for the installation of machinery.

2. Write the word/term/phrase which can substitute each of the following statements:

Question 1.
A continuous, gradual, and permanent reduction in the value of the fixed assets.
Answer:
Depreciation

Question 2.
The expenditure incurred for purchase, installation charges, etc. of an asset.
Answer:
Cost of Asset

Question 3.
The amount that a fixed asset is expected to realize at its disposal.
Answer:
Scrap Value

Question 4.
The period for which the asset remains in working condition.
Answer:
The life period of asset

Question 5.
The method of depreciation in which the total depreciation is equally spread over the life of the asset.
Answer:
Fixed Instalment Method

Question 6.
The method of depreciation in which the rate of depreciation is fixed but the amount of depreciation reduces every year.
Answer:
Reducing Balance Method

Question 7.
The type of asset on which depreciation is charged.
Answer:
Fixed Asset

Question 8.
Expenses incurred for fixation of the new asset to bring it in working condition.
Answer:
Installation Charges

Question 9.
Excess of the Selling price of a fixed asset over its Written Down Value.
Answer:
Profit on Sale of Asset

Question 10.
Method of depreciation that cannot reach zero value.
Answer:
Diminishing Balance Method

3. Select the most appropriate answers from the alternatives given below and rewrite the sentence.

Question 1.
Decrease in the value of fixed assets is known as _____________
(a) Depreciation
(b) Appreciation
(c) Combination
(d) None of these
Answer:
(a) Depreciation

Question 2.
Depreciation is charged only on _____________ assets.
(a) Fixed
(b) Current
(c) Non-performing
(d) Fictitious
Answer:
(a) Fixed

Question 3.
The amount spent on installation of new machinery is a _____________ expenditure.
(a) Revenue
(b) Capital
(c) Deferred Revenue
(d) Income
Answer:
(b) Capital

Question 4.
The amount that a fixed asset is expected to realise on its disposal is known as _____________
(a) Book value
(b) Scrap value
(c) Market value
(d) Original value
Answer:
(b) Scrap value

Question 5.
The amount of depreciation reduces year after year under _____________
(a) Fixed Instalment Method
(b) Written Down Value Method
(c) Depreciation Fund Method
(d) Revaluation Method
Answer:
(b) Written Down Value Method

Question 6.
The amount of depreciation remains constant every year under _____________
(a) Straight Line Method
(b) Diminishing Balance Method
(c) Revaluation Method
(d) Insurance Policy Method
Answer:
(a) Straight Line Method

Question 7.
The balance of depreciation account is transferred to _____________
(a) Manufacturing A/c
(b) Trading A/c
(c) Profit & Loss A/c
(d) Balance sheet
Answer:
(c) Profit and Loss A/c

4. State whether the following statements are True or False with reasons.

Question 1.
Depreciation is charged on fixed assets.
Answer:
This statement is True.
Fixed assets working life is longer. The working life of all fixed assets decreases with the passage of time. The value of assets decreases every year so a reduction in the value of fixed assets due to its wear and tear depreciation is charged on fixed assets.

Question 2.
Depreciation increases the value of the asset.
Answer:
This statement is False.
Depreciation reduced the value of the fixed assets. The working life of all fixed assets decreases with the passage of time and its wear and tear.

Question 3.
Balance of the depreciation account is transferred to Profit and Loss A/c.
Answer:
This statement is True.
Depreciation is charged to profit and Loss A/c as it is an element of Cost. It is also essential to arrive at true value of the asset and also net profit or Loss during a particular accounting period. Even if an asset is not in use, its value is reduced due to the passage of time. Depreciation is Cost/Loss to the business. It is a noncash expenditure.

Question 4.
The Profit or Loss on the sale of the asset is ascertained only after charging depreciation.
Answer:
This statement is True.
Cost on date of sale can be ascertained only after deducting depreciation from date of purchase till the date of sale after that it is possible to compare between cost on the date of sale and selling price to ascertain profit or loss on sale of the machine.

Question 5.
Wages paid for the installation of Machinery are debited to Wages A/c.
Answer:
This statement is False.
Wages paid on the installation of machinery are debited to the machinery account as they are the capital nature of expenditures.

Question 6.
It is not necessary to depreciate an asset if it is not in use.
Answer:
This statement is False.
The working life of fixed assets decreases with passes of time. The value of these assets decreases every year as new technology introduced in the market old becomes outdated so it is necessary to depreciate an asset even it is not in use.

Question 7.
Depreciation is charged on Current Assets only.
Answer:
This statement is False.
Depreciation is charged only on fixed assets and not on current assets working life of fixed assets is longer and it decreases with passes of time. The value of fixed assets decreases every year so depreciation is charged on fixed assets.

Question 8.
Depreciation need not be charged when a business is making a loss.
Answer:
This statement is False.
Depreciation is charged whether a business is making losses or profits. Depreciation is the non-cash expenditure of the business like all other expenses are charged in the same way depreciation is charge even business is making losses.

5. Complete the following sentences.

Question 1.
Depreciation is charged on _____________ asset.
Answer:
Fixed

Question 2.
Wages paid for Installation/fixation of Machinery is debited to _____________ account.
Answer:
Machinery

Question 3.
Under _____________ system, the amount of depreciation changes every year.
Answer:
Diminishing Balance

Question 4.
Depreciation = \(\frac{Cost of Asset Less …………}{Estimated Working Life of Asset}\)
Answer:
Scrap value

Question 5.
Gradual and permanent decrease in the value of asset is known as _____________
Answer:
Depreciation

Question 6.
In Fixed Instalment System the amount of depreciation is _____________ every year.
Answer:
Constant

Question 7.
The amount spent on installation of Machinery is a _____________ expenditure.
Answer:
Capital

Question 8.
_____________ is the value which an asset realises at the end of its useful life.
Answer:
Scrap value

Question 9.
Depreciation Account is a _____________ account.
Answer:
Nominal

Question 10.
Depreciation is derived from a Latin word _____________
Answer:
Depretium

6. Do you agree or disagree with the following statements.

Question 1.
Depreciation is a non-cash expense.
Answer:
Agree

Question 2.
Underwritten the down value method the Depreciation curve slopes parallel to the ‘X’ axis.
Answer:
Disagree

Question 3.
The rate of depreciation depends upon the life of the fixed asset.
Answer:
Agree

Question 4.
The terminal value of the asset never affects the annual amount of depreciation.
Answer:
Disagree

Question 5.
By charging depreciation on fixed assets ascertainment of true and fair financial position is possible.
Answer:
Agree

7. Correct the following statement and rewrite the statement.

Question 1.
The residual value of an asset increases the amount of annual depreciation.
Answer:
The residual value of an asset decreases the amount of annual depreciation.

Question 2.
Depreciation is calculated on all assets.
Answer:
Depreciation is calculated on fixed assets only.

Question 3.
Underwritten down value method depreciation is calculated on the original cost of an asset.
Answer:
Underwritten down value method depreciation is calculated on its opening balance every year.

Question 4.
Depreciation provided on assets is debited to an asset accounts.
Answer:
Depreciation provided on assets is credited to an asset account.

Question 5.
Profit on sale of the asset is credited to an asset account.
Answer:
Profit on sale of the asset is debited to an asset account.

8. Calculate the following.

Question 1.
A machine costing ₹ 23,000 is estimated to have a life of 7 years and the scrap value is estimated at ₹ 2,000 at the end of its useful life. Find out the amount of depreciation p.a.
Solution:
Depreciation p.a. = \(\frac{Cost of Asset (-) Scrap value}{Estimated life of asset}\)
= \(\frac{23,000-2,000}{7}\)
= \(\frac{21,000}{7}\)
= ₹ 3,000 p.a.

Question 2.
If the cost of the Computer is ₹ 40,000 and depreciation is to be charged at 8% p.a. Calculate the amount of depreciation.
Solution:
Depreciation p.a. = Cost of computer (×) percentage
= 40,000 × \(\frac{8}{100}\)
= ₹ 3,200 p.a.

Question 3.
Mr. ‘X’ purchased Furniture on 1st October 2015 at ₹ 2,80,000 and spent ₹ 20,000 on its installation. He provides depreciation at 6% under the straight-line method on 31st March 2016. Calculate the amount of depreciation.
Solution:
Depreciation as per straight line method = Cost of Furniture × Percentage × Period
= 3,00,000 × \(\frac{6}{100}\) × \(\frac{6}{12}\)
= ₹ 9,000

Question 4.
M/s Sitaram and Co Purchased a Machinery on 1st January 2016 for ₹ 2,00,000. The company provides depreciation @ 10% p.a. on Reducing Balance Method on 31st March every year. Calculate Written Down Value of Machinery as of 31st March 2017.
Solution:
Original cost on 01.01.2016 = ₹ 2,00,000
Less: Dep for 2015-16 for 3 months = ₹ 5,000
W.D.V. on 01.04.2016 = ₹ 1,95,000
Less: Dep for 2016-17 for 12 months = ₹ 19,500
W.D.V. on318t March, 2017 = ₹ 1,75,500

Question 5.
On 1st July 2016 M/s. Ramai & Co. .sold Machinery for ₹ 7,000 the original cost of ₹ 10,000 which was purchased on 18th April 2015. Find out the profit or loss on sale of Machinery by charging depreciation at 10% p.a. on original cost on 31st March every year.
Solution:
Original cost of machinery on 01.04.2015 = ₹ 10,000
Less: Dep for 2015-16 for 12 months = ₹ 1,000
W.D.V. on 01.04.2016 = ₹ 9,000
Less: Dep for 2016-17 for 3 months = ₹ 250
W.D.V. on 01.07.2016 = ₹ 8,750
Less: Selling price = ₹ 7,000
∴ Loss on sale of machinery = ₹ 1,750

Practical Problems on Straight Line Method

Question 1.
On 1st April 2015, Farid of Nasik purchased a Motor Car for ₹ 55,000. The scrap value of the Motor Car was estimated at ₹ 10,000 and its estimated life is 10 years. The Registration charge for the Motor Car was ₹ 5,000.
Show Motor Car Account for first four years, assuming that the books of accounts are closed on 31st March every year.
Solution:
In the books of Farid, Nasik Motor Car Account

Working Note:
Calculation of Depreciation per annum
Depreciation = \(\frac{Original cost of an asset (-) Scrap value}{Estimated life of asset in years}\)
= \(\frac{60,000-10,000}{10}\)
= \(\frac{50,000}{10}\)
= ₹ 5,000 p.a.

Question 2.
On 1st January 2017 ‘Sai Industries, Nagpur’ purchased a Machine costing ₹ 1,65,000 and spent ₹ 15,000 for its installation charges. The estimated life of the Machine is to be 10 years and the scrap value at the end of its life would be ₹ 30,000. On 1st October 2018, the entire Machine was sold for ₹ 1,50,000.
Show Machinery Account, Depreciation Account, for the years 2016-17, 2017-18, and 2018-19 assuming that the accounts are closed on 31st March every year.
Solution:
In the books of Sai Industries, Nagpur

Working Notes:
1. Calculation of Depreciation per annum:
Depreciation = \(\frac{Original cost of an asset (-) Scrap value}{Estimated life of asset in years}\)
= \(\frac{1,80,000-30,000}{10}\)
= \(\frac{1,50,000}{10}\)
= ₹ 15,000 p.a.

2. Calculation of Profit or loss on sale of machine:
Original cost 01.01.2017 = ₹ 1,80,000
Less: Depreciation for 2016-17 (3 months) = ₹ 3,750
W.D.V. on 01-04-2017 = ₹ 1,76,250
Less: Depreciation for 2019-18 (12 months) = ₹ 15,000
W.D.V. on 01.04.2018 = ₹ 1,61,250
Less: Depreciation for 2018-19 (6 months) = ₹ 7,500
W.D.V. on date of sale = ₹ 1,53,750
Less: Selling price = ₹ 1,50,000
∴ Loss on sale of machine = ₹ 3,750

Question 3.
Shubhangi Trading Company of Dombivli purchased Machinery for ₹ 86,000 on 1st January 2016 and immediately spent ₹ 4,000 on its fixation and erection. On 1st October 2016 additional Machinery costing ₹ 40,000 was purchased.
On 1st October 2017, the Machinery purchased on 1st January 2016 became obsolete and was sold for ₹ 70,000. On 1st July 2017, a new Machine was also purchased for ₹ 45,000.
Depreciation was provided annually on 31st March at the rate of 12% per annum on the fixed installment method.
Prepare Machinery Account for three years and pass Journal Entries for the Third year i.e. 2017-2018.
Solution:
In the books of Shubhangi Trading company, Dombivli

Journal of Shubhangi Trading Company

Working Note:
Calculation of Profit or loss on sale of machine:
Original cost on 01.01.2016 = ₹ 90,000
Less: Depreciation for 2015-16 (3 months) = ₹ 2,700
W.D.V. on 01-04-2016 = ₹ 87,300
Less: Depreciation for 2016-17 (12 months) = ₹ 10,800
W.D.V. on 01.04.2017 = ₹ 76,500
Less: Depreciation for 2017-18 (6 months) = ₹ 5,400
W.D.V. on date of sale = 71,100
Less: Selling price = 70,000
∴ Loss on sale of machine = ₹ 1,100

Question 4.
On 1st Jan 2015, Triveni Traders Raigad purchased a Plaint for ₹ 12,000, and installation charges being ₹ 3,000. On 1st July 2016 another Plant was purchased for ₹ 25,000, on 1st April 2017 another Plant was purchased for ₹ 27,000, wages paid for installation amounted to ₹ 2,000. Carriage paid for the Plant amounted to ₹ 1,000.
Show Plant Account up to 31st March 2018 assuming that the rate of depreciation is @ 10% p.a. on Straight Line Method.
Solution:
In the books of Triveni Traders, Raigad

Question 5.
Sameer & Company, Mumbai purchased a Machine worth ₹ 2,00,000 on 1st April 2016. On 1st July 2017, the company purchased an additional Machine for ₹ 40,000.
On 31st March 2019, the company sold the Machine purchased on 1st July 2017 for ₹ 35,000. The company writes off depreciation at the rate of 10% on the original cost and the books of accounts are closed every year on 31st March.
Show the Machinery Account and Depreciation Account for the first three years ending 31st March 2016-17, 2017-18 and 2018-19
Solution:
In the books of Sameer & Company, Mumbai

Working note:
Calculation of Profit or Loss on sale of machine:
Original cost on 01.07.2017 = ₹ 40,000
Less: Depreciation for 2017-18 (9 months) = ₹ 3,000
W.D.V. on 01-04-2018 = ₹ 37,000
Less: Depreciation for 2018-19 (12. months) = ₹ 4,000
W.D.V. on date of sale = ₹ 33,000
Less: Selling price = ₹ 35,000
∴ Profit on sale of machine = ₹ 2,000

Question 6.
Samarth Manufacturing Co. Ltd, Aurangabad, purchased a New Machinery for ₹ 45,000 on 1st Jan 2015 and immediately spent ₹ 5,000 on its fixation and erection. In the same year, 1st July additional Machinery costing ₹ 25,000 was purchased. On 1st July 2016, the Machinery purchased on 1st Jan 2015 became obsolete and was sold for ₹ 40,000.
Depreciation was provided annually on 31st March at the rate of 10% per annum on the Fixed Instalment Method.
You are required to prepare Machinery Account for the year 2014-15, 2015-16, 2016-17.
Solution:
In the books of Samarth Manufacturing Co. Ltd, Aurangabad

Working Note:
Calculation of Profit or Loss on sale of machine:
Original cost on 01.01.2015 = ₹ 50,000
Less: Depreciation for 2014-15 (3 months) = ₹ 1,250
W.D.V. on 01-04-2015 = ₹ 48,750
Less: Depreciation for 2015-16 (12 months) = ₹ 5,000
W.D.V. on 01-04-2016 = ₹ 43,750
Less: Depreciation for 2016-17 (3 months) = ₹ 1,250
W.D.V. on date of sale = ₹ 42,500
Less: Selling price = ₹ 40,000
∴ Loss on sale of machine = ₹ 2,500

Practical Problems on Written Down Value Method

Question 1.
M/s Omkar Enterprise Jalgaon acquired a Printing Machine for ₹ 75,000 on 1st Oct 2015 and spent ₹ 5,000 on its transport and installation. Another Machine for ₹ 45,000 was purchased on 1st Jan 2017. Depreciation is charged at the rate of 20% on Written Down Value Method, on 31st March every year.
Prepare Printing Machine Account for the first four years.
Solution:
In the books of M/s Omkar Enterprise Jalgaon.

Question 2.
Vishal Company, Dhule, purchased Machinery costing ₹ 60,000 on 1st April 2016. They purchased further Machinery on 1st October 2017, costing ₹ 30,000, and on 1st July 2018, costing ₹ 20,000. On 1st Jan 2019, one-third of the Machinery, which was purchased on 1st April 2016, became obsolete and it was sold for ₹ 18,000.
Assume that, company account closes on 31st March every year.
Show Machinery Account for the first three(3) years and pass journal entries for the Third year, after charging depreciation at 10% p.a. on Written Down Value Method.
Solution:
In the books of Vishal Company, Dhule.

Journal of Vishal Company

Working Notes:
1. Calculation of Profit or Loss on sale as Machine:
Original cost on 01.04.2016 = ₹ 20,000
Less: Dep. for 2016-17 (12 months) = ₹ 2,000
W.D.V. on 01.04.2017 = ₹ 18,000
Less : Dep. for 2016-17 (12 months) = ₹ 1,800
W.D.V. on 01.04.2018 = ₹ 16,200
Less : Dep. for 2018-19 (9 months) = ₹ 1,215
W.D.V. on date of sale = ₹ 14,985
Less : Selling Price = ₹ 18,000
∴ Profit on sale & machine = ₹ 3,015

2. Depreciation for 2018-19
(a) Opening balance on 01.04.2018 = ₹ 77,100
Less : W.D.V. of Machine sold on 01.04.2018 = ₹ 16,200
10% depreciation on 60,900 = ₹ 6,090
(b) Purchase of Machine on 01.07.2018 20,000 – 10% – 9 months = ₹ 6,090 + ₹ 1,500 = ₹ 7,590

Question 3.
Mahesh Traders Solapur purchased Furniture on 1st April 2014 for ₹ 20,000. In the same year on 1st, Oct. additional Furniture was purchased for ₹ 10,000.
On 1st Oct. 2015, the Furniture purchased on 1st April 2014 was sold for ₹ 15,000 and on the same day, a new Furniture was purchased for ₹ 20,000.
The firm charged depreciation at 10% p.a. on the Reducing Balance Method.
Prepare Furniture Account and Depreciation Account for the year ending 31st March 2015, 2016, and 2017.
Solution:
In the books of Mahesh Traders, Solapur

Working Notes:
1. Calculation of Profit or loss on sale of furniture:
Original cost on 01.04.2014 = ₹ 20,000
Less: Depreciation for 2014-15 (12 months) = ₹ 2,000
W.D.V. on 01.04.2015 = ₹ 18,000
Less: Depreciation for 2015-16 = ₹ 900
W.D.V. on date of sale = ₹ 17,100
Less: Selling price = ₹ 15,000
∴ Loss on sale of furniture = ₹ 2,100

2. Calculation of Depreciation for 2016 -17:
(a) Opening balance on 01.04.2015 = ₹ 27,500
Less: W.D.V. of furniture sold on 01.04.2015 = ₹ 18,000
9,500 – 10% = ₹ 950
(b) Purchase of furniture on 01.10.2015 – 10% – 6months = 950 + 1,000 = ₹ 1,950

Question 4.
Radhika-Masale’ Amravati purchased a Plant on 1st Jan. 2015 for ₹ 80,000. A new Plant was also purchased
for ₹ 60,000, installation expenses being ₹ 10,000 on 1st April 2016. On 1st Jan 2017, a new Plant was purchased for ₹ 20,000, by disposing of the 1st Plant at ₹ 60,000.
Prepare Plant Account and Depreciation Account for 31st March 2015, 31st March 2016, and 31st March 2017, assuming that the rate of depreciation was @ 10% on Diminishing Balance Method.
Solution:
In the books of Radhika-Masale, Amravati

Working Notes:
1. Calculation of Profit or loss on sale of plant:
Original cost on 01.01.2015 = ₹ 80,000
Less: Depreciation for 2014.15. (3 months) = ₹ 2,000
W.D.V. on 01.04.2015 = ₹ 78,000
Less: Depreciation for 2015 -16 (12 months) = ₹ 7,800
W.D.V. on 01.04.2016 = ₹ 70,200
Less: Depreciation for 2016 -17 (9 months) = ₹ 5,265
W.D.V. on date of sale = ₹ 64,935
Less: Selling price = ₹ 60,000
∴ Loss on sale of plant = ₹ 4,935

2. Calculation of Depreciation for 2016-17:
(a) Opening balance on 01.04.2016 = ₹ 70,200
Less: W.D.V. of plant sold on 01.04.2016 = ₹ 70,200
Nil – 10% = Nil
(b) Purchase of plant on 01.04.2016 – 10% – 12months = ₹ 7,000
(c) Purchase of plant on 01.01.2017 – 10% – 3m months = ₹ 500
Total = ₹ 7,500

Question 5.
On 1st April 2015, Suman Traders purchased Machinery for ₹ 30,000. On 1st Oct. 2015, they purchased further Machinery costing ₹ 20,000.
On 1st Oct. 2016, they sold the Machine purchased on 1st April 2015 for ₹ 18,000 and brought another Machine for ₹ 15,000 on the same date.
Depreciation is provided on Machinery @ 20% p.a. on the Diminishing Balance Method and the financial year closes on 31st March every year.
Prepare the Machinery Account and Depreciation Account for the year 2015-16, 2016-17, and 2017-18.
Solution:
In the books of Suman Traders

Working Notes:
1. Calculation of Profit or loss on sale of machine:
Original cost on 01.04.2015 = ₹ 30,000
Less: Depreciation for 2015-16 (12 months) = ₹ 6,000
W.D.V. on 01.04.2016 = ₹ 24,000
Less: Depreciation for 2016-17 (6 months) = ₹ 2,400
W.D.V. on date of sale = ₹ 21,600
Less: Selling price = ₹ 18,000
∴ Loss on sale of machine = ₹ 3,600

2. Calculation of Depreciation for 2016-17:
(a) Opening balance on 01.04.2016 = ₹ 42,000
Less: W.D.V. of machine sold on 01.04.2016 = ₹ 24,000
18,000 – 20% = ₹ 3,600
(b) Purchase of machine on 01.10.2016 – 15,000 – 20% – 6months = 3,600 + 1,500 = ₹ 5,100

Class 11 Commerce Book Keeping & Accountancy Textbook Solutions

• Introduction to Book Keeping and Accountancy Class 11 Commerce BK
• Meaning and Fundamentals of Double Entry Book-Keeping Class 11 Commerce BK
• Journal Class 11 Commerce BK
• Ledger Class 11 Commerce BK
• Subsidiary Books Class 11 Commerce BK
• Bank Reconciliation Statement Class 11 Commerce BK
• Depreciation Class 11 Commerce BK
• Rectification of Errors Class 11 Commerce BK
• Final Accounts of a Proprietary Concern Class 11 Commerce BK
• Single Entry System Class 11 Commerce BK

Bank Reconciliation Statement 11th BK Commerce Chapter 6 Solutions Maharashtra Board

Balbharti Maharashtra State Board Bookkeeping and Accountancy 11th Solutions Chapter 6 Bank Reconciliation Statement Textbook Exercise Questions and Answers.

Class 11 Commerce BK Chapter 6 Exercise Solutions

1. Answer in one sentence.

Question 1.
Who prepares a bank Pass Book?
Answer:
The Bank passbook is prepared by the bank.

Question 2.
What is a pay-in-slip?
Answer:
Pay-in-slip is the slip that is filled when the bank account holder deposits a cheque or cash into his bank account.

Question 3.
What is a bank overdraft?
Answer:
The amount withdrawn by the account holder from his current account in excess of the balance standing in that account up to, specified limit is known as bank overdraft.

Question 4.
What is a withdrawal slip?
Answer:
It is a document/form, which is used by the savings account holder for withdrawing cash from his bank account.

Question 5.
Who sends the bank statement?
Answer:
A bank statement is sent by the Bank manager to the account holder informing about debit or credit given by the bank.

Question 6.
What does a debit balance in Cash Book represent?
Answer:
The debit balance of the cash Book indicates a positive Bank balance as per Cash Book.

Question 7.
Who prepares the Bank Reconciliation Statement?
Answer:
A Businessman, trader, or accountant prepares Bank Reconciliation Statement at the end of every month.

Question 8.
What does the debit balance in Pass Book represent?
Answer:
The debit balance of Passbook represents Overdraft as per passbook.

Question 9.
On which side is interest on bank deposit recorded in Pass Book?
Answer:
Interest on bank deposits is recorded on the credit side of the passbook.

Question 10.
Why is Bank Reconciliation Statement prepared?
Answer:
A bank reconciliation statement is prepared to disclose the causes of the difference between the balances shown by the cash book and passbook.

2. Give one word/term/phrase which can substitute each of the following statements:

Question 1.
The account on which overdraft facility is allowed by the bank.
Answer:
Current Account

Question 2.
Extract of ledger account of the account holder in the books of the bank.
Answer:
Pass Book

Question 3.
Alphanumeric code that facilitates electronic funds transfer in India.
Answer:
IFSC (Indian Financial System Code)

Question 4.
Statement showing the causes of disagreement between the balance of Cash Book and Pass Book.
Answer:
Bank Reconciliation Statement

Question 5.
Debit balance in Pass Book.
Answer:
Overdraft as per Pass Book

Question 6.
A form which is filled for depositing cash or cheque into bank.
Answer:
Pay-in-slip

Question 7.
The left-hand side of Pay-in-slip.
Answer:
Counterfoil

Question 8.
Credit balance in Cash Book.
Answer:
Overdraft as per Cash Book

Question 9.
A book maintained by traders to record banking transactions.
Answer:
Cash Book

Question 10.
Excess of bank deposits over withdrawals by a businessman in bank current account.
Answer:
Bank Balance (favourable balance)

3. Do you agree or disagree with the following statements:

Question 1.
The bank column of Cash Book represents the bank account.
Answer:
Agree

Question 2.
A bank statement enables the account holder to prepare Bank Reconciliation Statement.
Answer:
Agree

Question 3.
Cheques issued for payment but not presented to bank appear in Cash Book only.
Answer:
Agree

Question 4.
Bank Reconciliation Statement is prepared only during the year-end.
Answer:
Disagree

Question 5.
Bank Reconciliation Statement is similar to the bank statement.
Answer:
Disagree

Question 6.
Bank balance as per Cash Book is always equal to bank balance as per Pass Book.
Answer:
Disagree

Question 7.
Bank advice is sent by the businessman to the bank.
Answer:
Disagree

Question 8.
Pay-in-slip is used for depositing cheques into banks.
Answer:
Agree

Question 9.
The difference in Cash Book Balance and Pass Book balance may arise due to errors committed while recording.
Answer:
Agree

Question 10.
Payment and receipt of cash through internet banking generate an automatic proof.
Answer:
Agree

4. Select the most appropriate alternative from those given and rewrite the following statements:

Question 1.
Overdraft means ____________ balance of Cash Book.
(a) closing
(b) debit
(c) opening
(d) credit
Answer:
(d) credit

Question 2.
When a cheque is deposited and collected by bank Pass Book is ____________
(a) dishonoured
(b) debited
(c) credited
(d) written
Answer:
(c) credited

Question 3.
A ____________ is a summary of financial transactions that take place over a period of time on a bank account.
(a) withdrawal slip
(b) bank advice
(c) bank statement
(d) Pay-in-slip
Answer:
(c) bank statement

Question 4.
Debiting an entry in Cash Book ____________ cash balance.
(a) increases
(b) decreases
(c) nullifies
(d) none of the above
Answer:
(a) increases

Question 5.
Bank Reconciliation Statement is prepared by ____________
(a) student
(b) businessman
(c) bank
(d) none of the above
Answer:
(b) businessman

Question 6.
Bank balance as per Pass Book means ____________ balance of Pass Book.
(a) credit
(b) opening
(c) debit
(d) closing
Answer:
(a) credit

Question 7.
Bank gives overdraft facility to ____________ account holder.
(a) savings
(b) recurring
(c) current
(d) fixed
Answer:
(c) current

Question 8.
Debit balance as per Cash Book is also known as ____________ balance.
(a) favourable
(b) overdraft
(c) abnormal
(d) unfavourable
Answer:
(a) favourable

Question 9.
When extracts of Cash Book and Pass Book are given for uncommon periods, only ____________ items are considered for preparation of Bank Reconciliation Statement.
(a) uncommon
(b) normal
(c) favourable
(d) common
Answer:
(d) common

Question 10.
When extract of Cash Book and Pass Book is given for common period, only ____________ items are considered
for preparation of Bank Reconciliation Statement.
(a) uncommon
(b) common
(c) favourable
(d) unfavourable
Answer:
(a) uncommon

5. Complete the following statements:

Question 1.
Payments credited in Cash Book are ____________ in Pass Book.
Answer:
Debited

Question 2.
While preparing Bank Reconciliation Statement only ____________ column of Cash Book is considered.
Answer:
Bank

Question 3.
Cheques issued to creditors appear first in ____________ book.
Answer:
Cash

Question 4.
A statement showing the reasons for the difference in Cash Book Balance and Pass Book balance is known as ____________
Answer:
Bank Reconciliation Statement

Question 5.
Overcast on receipt side of Pass Book means ____________ in Pass Book balance.
Answer:
Increase

Question 6.
Online transfer made to our creditors appear on the ____________ side of Cash Book.
Answer:
Payment/Credit

Question 7.
Interest on overdraft charged by bank is ____________ in Pass Book.
Answer:
Debited

Question 8.
Normally the Cash Book shows debit balance and Pass Book shows ____________ balance.
Answer:
Credit

Question 9.
The form filled for withdrawing cash from bank is known as ____________
Answer:
Withdrawal Slip

Question 10.
A businessman can update his records on receiving ____________
Answer:
Bank Advice

6. State whether the following statements are True or False with reasons:

Question 1.
Cheques deposited into the bank but not yet cleared appears in the Pass Book only.
Answer:
This statement is False.
Cheques deposited into the bank but not yet cleared appears in the cash book only. Bank records entry in the passbook only after the cheque is cleared. So there is no entry for this transaction in the Pass Book.

Question 2.
Direct deposit made by debtors into a businessman’s bank account is recorded on the credit side of Pass Book.
Answer:
This statement is True.
The credit side of the passbook means deposits made in the bank account. When direct deposits are made by debtors into a businessman’s bank account. It increases the bank balance and it is recorded on the credit side of Pass Book.

Question 3.
A businessman can prepare a Bank Reconciliation statement only with Cash Book Balance.
Answer:
This statement is False.
The businessman can prepare a Bank Reconciliation statement with the help of a cash book, bank column, and passbook. It is a comparison between the two to correct the differences. Both i.e. cash book and pass book/Bank statement are required to prepare a Bank Reconciliation statement.

Question 4.
When overdraft as per Cash Book is given, bank charges debited in Pass Book only are to be added.
Answer:
This statement is True.
Bank overdraft as per cash book means negative bank balance. The businessman has to pay the Bank. Bank charges are expenses for the business and this increases the amount payable to the bank so bank charges debited in the passbook only are to be added in the cash book.

Question 5.
Bank Statement is sent by Bank to the businessman.
Answer:
This statement is True.
A bank statement is a statement issued by the bank to the current account holder informing about the bank transactions during a particular period of time. Generally, it is issued every i.e. month. It gives details information about bank deposits and withdrawals etc.

7. Draft the following specimen with imaginary Name, Account Number, Amount.

Question 1.
Bank Statement
Answer:
Specimen of Bank Statement is given below:

Question 2.
Pay-in-slip
Answer:
(a) Specimen of pay-in-slip is given below: Front side

(b) Reverse (Back-side) of Pay-in-slip:

Question 3.
Withdrawal slip
Answer:
Specimen form of a withdrawal slip is given below:

Question 4.
Bank Advice
Answer:
Specimen of bank advice is given below:

Question 5.
Pass Book
Answer:
Specimen form of the Bank passbook is given below:
Bank Pass Book

8. Correct and rewrite the following statements.

Question 1.
The form filled for depositing cash or cheque into the bank is known as Pass Book.
Answer:
The form filled for depositing cash or cheque into the bank is known as Pay in slip.

Question 2.
Bank Reconciliation Statement is prepared by Bank.
Answer:
Bank Reconciliation Statement is prepared by Businessman.

Question 3.
Debit balance as per Pass Book is known as favourable balance.
Answer:
Debit balance as per Pass Book is known as unfavorable balance.

Question 4.
When a cheque is deposited into Bank it is credited to Cashbook.
Answer:
When a cheque is deposited into Bank it is debited in Cash Book.

Question 5.
When extracts are given for the common period only common items are to be considered.
Answer:
When extracts are given for the common period only uncommon items are to be considered.

9. Complete the following table.

Question 1.

Answer:

Practical Problems

Question 1.
Following is the extract of the Cash Book (Bank Column only) and passbook. Prepare Bank Reconciliation Statement as of 31st Oct. 2018.
In the books of ____________

In the books of Bank

Solution:
Bank Reconciliation Statement as of 31st October 2018.

Working Notes:
When extract of Cashbook and passbook are given for the same period i.e. for the month of April 2018, we have to consider only uncommon entries for adding and deducting from Bank Reconciliation Statement. This is shown in the following working notes.
In order to find out items to be added and items to be deducted in the Bank Reconciliation Statement, we have to prepare Cash Book and passbook on the basis of accounting information given in the problem:
Cash Book

Bank Pass Book

Explanation:
1. First record the opening balance in the appropriate book i.e. either in Cashbook or passbook.
2. Bank balance of ₹ 9,800 as per Cashbook is recorded on the debit side of Cashbook in a box.
3. In this problem, the entries which are passed on the debit side of the Cashbook and passbook are to be added in the Bank Reconciliation Statement and the entries passed on the credit side of the Cashbook and passbook are to be deducted in the Bank Reconciliation Statement. This is because the opening balance appears on the debit side of the Cash Book.

Question 2.
From the following extract of Cash Book and Pass Book prepare Bank Reconciliation Statement as of 31st March 2019.
In the books of ____________

In the books of Bank
Bank Pass Book

Solution:
Bank Reconciliation Statement as of 31st March 2019

Working Notes:
When extract of Cashbook and passbook are given for the same period i.e. for the month of April 2011, we have to consider only uncommon entries for adding and deducting from Bank Reconciliation Statement. This is shown in the following working notes.
In order to find out items to be added and items to be deducted in the Bank Reconciliation Statement, we have to prepare Cash Book and passbook on the basis of accounting information given in the problem:
Cash Book

Bank Pass Book

Question 3.
On 31st August 2018 bank passbook of Mr. Ravi showed a credit balance of ₹ 33,600, but Cash Book showed a different balance. On comparing the two books following differences were noticed:
1. Cheques paid into the bank but not credited before 31st Aug 2018 amounted to ₹ 24,500.
2. Direct deposit by the customer through NEFT ₹ 33,000 recorded in the passbook only.
3. Cheques issued on 28th Aug 2018 were presented for payment on 5th Sep. 2018 amounted to ₹ 38,800.
4. A bill receivable for ₹ 15,000 discounted with the bank was dishonored on 30th Aug 2018. Intimation of the same was received only on 3rd Sep 2018.
5. Passbook credit side was overcast ₹ 2,000.
6. Bank debited ₹ 400 for bank charges in the passbook, which was not recorded in Cash Book.
Prepare Bank Reconciliation Statement as of 31st August 2018.
Solution:
Bank Reconciliation Statement as of 31st August 2018.

Working Notes:
In order to find out items to be added and items to be deducted in the Bank Reconciliation Statement, we have to prepare Cash Book and passbook on the basic information given in the problem:
Cash Book (With Bank Column)

Bank Pass Book

Explanation:
1. First record the opening balance in the appropriate book and at the appropriate side i.e. either in Cashbook or passbook.

2. In the above problem Bank balance of ₹ 33,600 as per the passbook is recorded on the credit side of the passbook in a box.

3. In this problem, the entries which are passed on the credit side of the Cashbook and passbook are to be added in the Bank Reconciliation Statement and the entries passed on the debit side of the Cash Book and passbook are to be deducted in the Bank Reconciliation Statement. This is because the opening balance appears on the credit side of the passbook.

4. Pass the entry of the given transactions in the book in which entry is not passed due to one or another reason, e.g. cheque of ₹ 24,300 is deposited but not collected. In this case, entry is not passed in the passbook, as the cheque is not collected by the bank. Now draft the entry for the given transaction on the credit side of the passbook. This is because, after the collection of cheques, the bank balance is increased. In the same way for remaining transactions pass the entry in that book where entry is not passed corresponding.

Question 4.
From the following details prepare Bank Reconciliation Statement as of 31st Dec. 2018.
1. Bank overdraft as per Cash Book on 31st Dec. 2018 was ₹ 48,450.
2. Bank charges for SMS alerts ₹ 370 were debited in passbook but not recorded in Cash Book.
3. Interest in overdraft ₹ 2,870 did not appear in Cash Book.
4. A bill for ₹ 12,000 discounted with bank appears in Cash Book at the full amount but the bank has deducted ₹ 200 discounting charges.
5. Cheques issued but not presented for payment before 31st Dec. 2018 amounted to ₹ 32,300.
6. Cheques amounting to ₹ 24,000 were deposited into the bank but only a cheque of ₹ 8,000 was collected by the bank before 31st Dec. 2018.
7. Paid stationary bill ₹ 11,300 by debit card. It was not recorded in Cash Book.
Solution:
Bank Reconciliation Statement as of 31st December 2018.

Working Notes:
Cash Book (With Bank Column)

Bank Pass Book

Question 5.
From the following particulars prepare Rank Reconciliation Statement as of 30th June 2019.
1. Credit balance as per pass book ₹ 20,000.
2. A cheque for ₹ 3,500 was issued and paid by the bank, recorded in Pass Book as ₹ 5,300.
3. Cheque deposited ₹ 9,700 collected by the bank was not recorded in Cash Book.
4. Payment side of the Cash Book was undercast by ₹ 100.
5. Electricity bill paid by bank ₹ 6,200 was recorded twice in Pass Book.
Solution:
Bank Reconciliation Statement as of 30th June 2019.

Working Notes:
Cash Rook (With Rank Column)

Bank Pass Book

Question 6.
Prepare Bank Reconciliation Statement from the following information as of 31st March 2019.
1. Balance as per Cash Book ₹ 10,000.
2. Cheque of ₹ 2,000 issued but not presented to Bank for payment.
3. Our debtor directly deposited ₹ 3,500 to our Bank account by NEFT, not recorded in the Cash Book.
4. Bank paid electricity bill on our behalf ₹ 450 and charged Bank charges ₹ 100.
5. Paid ₹ 1,500 to ABC & company, our supplier by business debit card but recorded in Cash Book as ₹ 150.
6. Bank credited interest on Investment ₹ 500.
7. Cheque of ₹ 885 issued and presented to Bank but wrongly entered in the Pass Book as ₹ 865.
Solution:
Bank Reconciliation Statement as on 31st March 2019

Working Notes:
Cash Book (With Bank Column)

Bank Pass Book

Question 7.
On 31st January 2018 Bank balance as per Cash Book was ₹ 40,000 but Pass Book was showing some other balances following were the causes of the difference.
1. Cheques were issued for ₹ 1,00,000 in January 2018 but cheques of ₹ 50,000 were only presented to the Bank for payment before January 31st, 2018
2. Cheques were sent to the Bank for collection of ₹ 2,00,000 out of which cheques of ₹ 80,000 were only credited by the Bank in January 2018.
3. Following entries were shown in the passbook in January 2018, but no corresponding entries were made in the Cash Book.
(i) Payment of ₹ 6,400 by Bank for Electricity Bill by ECS.
(ii) Interest credited by Bank ₹ 12,000
(iii) Bank debited commission ₹ 1,000 and Bank charges for ₹ 600.
(iv) Direct deposit made by customer ₹ 1,000 by NEFT to our account.
Prepare Bank Reconciliation Statement as of 31st January 2018.
Solution:
Bank Reconciliation Statement as of 31st January 2018

Working Notes:
Cash Book (With Bank Column)

Bank Pass Book

Question 8.
In January 2018, the Pass Book of Mr. Girish Kumbhar showed a bank balance of ₹ 14,000. A comparison of the Cash Book with the Pass Book revealed the following.
1. Cheque deposited but not credited by Bank ₹ 10,000
2. Dividend on shares collected by Bank but not recorded in the Cash Book ₹ 1,000
3. Bank paid Insurance premium as per standing instruction by ECS ₹ 500, no corresponding entry was passed in the Cash Book.
4. Bank debited Commission ₹ 75.
5. A debit of ₹ 900 in respect of cheque dishonored appears in Pass Book only.
6. Cheque of ₹ 1,500 deposited into Bank wrongly recorded twice in the Cash Book.
7. Total cheques of ₹ 20,000 were issued during the month of January 2018, but cheques of ₹ 8,000 only were presented for payment in January 2018.
Prepare Bank Reconciliation Statement as of 31st January 2018.
Solution:
Bank Reconciliation Statement as of 31st March 2019

Working Notes:
Cash Book (With Bank Column)

Pass Book

Question 9.
Form the following details provided by Prasharit enterprises, prepare a Bank Reconciliation Statement as of 31st March 2018.
1. Overdraft as per Cash Book ₹ 28,000
2. Cheque issued of ₹ 2,000 and presented to Bank returned dishonored but the effect of dishonored is not recorded in the Cash Book.
3. Bank debited Bank charges ₹ 150.
4. Bank transferred ₹ 2,500 to the savings account of the proprietor but not recorded in the Cash Book.
5. Cheque issued to the supplier but not presented to Bank before 21st March 2018, ₹ 1,600
6. Cheques of ₹ 3,000 and ₹ 2,000 were deposited into Bank but cheques of ₹ 3,000 were only credited by Bank before 31st March 2018.
7. Out customer directly deposited ₹ 1,500 in our Bank account but wrongly recorded it in the cash column of the Cash Book.
8. Bank debited interest on overdraft ₹ 750.
Solution:
Bank Reconciliation Statement as of 31st March 2018.

Working Notes:
Cash Book (Bank column)

Pass Book

Question 10.
Prepare Bank Reconciliation Statement as of 31st Dec. 2018
1. Debit balance as per pass book ₹ 16,000
2. Customer directly deposited in our Bank account by NEFT ₹ 8,000.
3. Cheques deposited into Bank but not credited by Bank ₹ 10,500.
4. Pass Book shows a debit entry for Bank commission ₹ 300, not recorded in Cash Book.
5. A Bill of Exchange of ₹ 3,500 was discounted with the Bank in December 2018, returned dishonored in January 2019.
6. As per standing instructions Bank paid the Telephone bill of ₹ 650, not recorded in the Cash Book.
7. Cheque of ₹ 975 deposited into the Bank but wrongly recorded on ₹ 795 in Cash Book.
Solution:
Bank Reconciliation Statement as of 31st December 2018.

Working Notes:
Cash Book (with Bank column)

Bank Pass Book

Class 11 Commerce Book Keeping & Accountancy Textbook Solutions

• Introduction to Book Keeping and Accountancy Class 11 Commerce BK
• Meaning and Fundamentals of Double Entry Book-Keeping Class 11 Commerce BK
• Journal Class 11 Commerce BK
• Ledger Class 11 Commerce BK
• Subsidiary Books Class 11 Commerce BK
• Bank Reconciliation Statement Class 11 Commerce BK
• Depreciation Class 11 Commerce BK
• Rectification of Errors Class 11 Commerce BK
• Final Accounts of a Proprietary Concern Class 11 Commerce BK
• Single Entry System Class 11 Commerce BK

Subsidiary Books 11th BK Commerce Chapter 5 Solutions Maharashtra Board

Balbharti Maharashtra State Board Bookkeeping and Accountancy 11th Solutions Chapter 5 Subsidiary Books Textbook Exercise Questions and Answers.

Class 11 Commerce BK Chapter 5 Exercise Solutions

Objective Type Questions & Answers

1. Answer the following questions in one sentence.

Question 1.
What are Subsidiary Books?
Answer:
Subdivision of journals on the basis of nature of transactions is known as Subsidiary Books.

Question 2.
What is a Cash Book?
Answer:
The subsidiary book in which details of cash are received in the form of cash, cheques, drafts, etc., and details of payment made in the form of cash, cheques, drafts, etc. is called a cash book.

Question 3.
State the meaning of ‘Contra entry’.
Answer:
The accounting entries which appear on both the sides of cash book are called contra entries.

Question 4.
State the meaning of the imprest system of Petty Cash Book.
Answer:
Imprest System of Petty cash book is a system in which head cashier gives fixed (imprest) amount to the petty cashier at the beginning of month/fortnight to meet the expenses of that period. Later on the shortfall after meeting the expenses is reimbursed by the head cashier.

Question 5.
Which transactions are recorded in Purchase Book?
Answer:
Goods purchased on credit for resale are only recorded in the Purchase Book.

Question 6.
Which sales are recorded in Sales Book?
Answer:
Credit sales of goods are recorded in Sales Book.

Question 7.
Which transactions are recorded in the Journal Proper?
Answer:
Journal Proper is meant for recording opening entries, closing entries, adjustment entries, transfer entries, and rectification entries.

Question 8.
Who is a Petty Cashier?
Answer:
A cashier in charge of recording transactions in a petty cash book is known as Petty Cashier.

2. Give a word/term or phrase for each of the following statements:

Question 1.
A person who maintains Petty Cash Book.
Answer:
Petty Cashier

Question 2.
A bank account which the businessman prefers to open.
Answer:
Current Account

Question 3.
Petty Cash Book in which the payment side is ruled in suitable columns.
Answer:
Analytical Petty Cash Book

Question 4.
Subsidiary book in which only credit purchases of goods are recorded.
Answer:
Purchase Book

Question 5.
Subsidiary book in which return of goods sold on credit is recorded.
Answer:
Sales Return Book

Question 6.
The entry is recorded on both sides of the cash book.
Answer:
Contra Entry

Question 7.
Name the account which encourages personal savings.
Answer:
Saving Account

Question 8.
A note was issued by the buyer to the seller giving full details of goods returned.
Answer:
Debit Note

Question 9.
A note was issued by the seller on receipt of defective goods from the customer.
Answer:
Credit Note

Question 10.
Name the bank account on which overdraft facility is given to the Account holder.
Answer:
Current Account

3. Select the most appropriate answers from the alternatives given below and rewrite the sentences.

Question 1.
Cash column of Cash Book can never have ____________ balance.
(a) credit
(b) debit
(c) zero
(d) none of the above
Answer:
(a) credit

Question 2.
Any entry recorded on both sides of Cash Book is known as ____________ entry.
(a) opening
(b) rectifying
(c) transfer
(d) contra
Answer:
(d) contra

Question 3.
The source document for recording in Sales book is ____________
(a) Inward Invoice
(b) Outward Invoice
(c) Voucher
(d) Cash Memo
Answer:
(b) Outward Invoice

Question 4.
Credit purchase of Machinery is recorded in the ____________
(a) Purchase Book
(b) Cash Book
(c) Journal Proper
(d) Returns Outward Book
Answer:
(c) Journal Proper

Question 5.
Sub-division of journal is known as ____________ book.
(a) Subsidiary
(b) Purchase Return
(c) Purchase
(d) Journal Proper
Answer:
(a) Subsidiary

Question 6.
Additional cash introduced in business is recorded in ____________
(a) Purchase Book
(b) Cash Book
(c) Journal Proper
(d) Returns Inwards Book
Answer:
(b) Cash Book

Question 7.
Entry for bad debts is recorded in the ____________
(a) Sales Book
(b) Purchase Book
(c) Cash Book
(d) Journal Proper
Answer:
(d) Journal Proper

Question 8.
Direct deposit made by the customer into our bank is recorded in the ____________ side of the Cash Book.
(a) payments
(b) credit
(c) receipts
(d) both
Answer:
(c) receipts

Question 9.
The person who draws the cheque and signs on it is the ____________
(a) drawer
(b) drawee
(c) payee
(d) all of the above
Answer:
(a) drawer

Question 10.
A fixed amount is deposited for a fixed period in ____________ deposit account.
(a) Current
(b) Savings
(c) Fixed
(d) Recurring
Answer:
(c) Fixed

4. State whether the following statements are True or False with reasons:

Question 1.
Journal is a book of secondary entry.
Answer:
This statement is False.
Journal is a book of prime entry.

Question 2.
Assets sold on credit are entered in Sales Journal.
Answer:
This statement is False.
Assets sold on credit are entered in Journal Proper.

Question 3.
Cash and credit purchases are entered in Purchase Book.
Answer:
This statement is False.
Only credit purchases are entered in Purchase Book.

Question 4.
Cash sales are entered in Sales Journal.
Answer:
This statement is False.
Cash sales are entered in the cash book.

Question 5.
Cash Book records transactions relating to receipts and payments of cash.
Answer:
This statement is True.
Cashbook is prepared for cash transactions only. All incomes are receipts and they are recorded on the debit side of Cashbook. All expenses are payments recorded to the credit side.

5. Do you agree with the following statements.

Question 1.
Trade discount is recorded in Cash Book.
Answer:
Disagree

Question 2.
Petty Cash Book is a book with having a record of big payments.
Answer:
Disagree

Question 3.
Cash received is entered on the debit side of the Cash Book.
Answer:
Agree

Question 4.
Transactions recorded on both debit and credit side of Cash Book is known as Contra Entry.
Answer:
Agree

Question 5.
Credit purchase of machinery is entered in Purchase Journal.
Answer:
Disagree

6. Complete the following sentences:

Question 1.
Cash Book is a ____________ Journal.
Answer:
Subsidiary

Question 2.
In Journal Proper, only ____________ discount is recorded.
Answer:
Cash

Question 3.
Return of goods purchased on credit to the suppliers will be entered in ____________ Journal.
Answer:
Purchase return

Question 4.
Assets sold on credit are entered in ____________
Answer:
Journal proper

Question 5.
Double column Cash Book records transactions relating to cash and ____________
Answer:
Bank

Question 6.
Credit purchases of goods are recorded in ____________
Answer:
Purchase Book

Question 7.
Cash Book does not record the ____________ Transactions.
Answer:
Credit

Question 8.
Credit balance shown by a bank column in Cash Book is ____________
Answer:
Overdraft

Question 9.
Petty Cash Book is used for recording ____________ expenses.
Answer:
Petty

Question 10.
In Purchase Book goods purchased on ____________ are recorded.
Answer:
Credit

7. Correct the following sentences and rewrite them the same.

Question 1.
Cash purchases of goods are recorded in the Purchase book.
Answer:
Cash purchases of goods are recorded in Cashbook.

Question 2.
Cash Book records cash transactions as well as credit transactions.
Answer:
Cash Book records only cash transactions.

Question 3.
Small and large business records all transactions in subsidiary books.
Answer:
Large business records all transactions in subsidiary books.

Question 4.
The person who maintains the Petty Cash Book is called Chief Cashier.
Answer:
The person who maintains the Petty Cash Book is called Petty Cashier.

8. Calculate the following.

Question 1.
Cash purchases for ₹ 1,60,000 at 10% T.D. and 5% C.D. What is the amount of Net purchases?
Answer:
Gross Price = ₹ 1,60,000
Less: 10% T.D. = ₹ 16,000
Net Price = ₹ 1,44,000
Less: 5% C.D. = ₹ 7,200
Net Purchases = ₹ 1,36,800

Question 2.
Purchased goods from Harish for ₹ 12,000 @ 7% T.D. What is the amount of Trade discount?
Answer:
Trade Discount = Purchases Price × Percentage of T.D.
= 12,000 × \(\frac{7}{100}\)
= ₹ 840

Question 3.
Sold 50 Shirts at ₹ 300 per shirt and 40 Trousers at ₹ 600 each. What is the amount of sales?
Answer:
(1) 50 Shirts × ₹ 300 = ₹ 15,000
(2) 40 Trousers × ₹ 600 = ₹ 24,000
Total Sales = ₹ 39,000

Question 4.
Sold 30 Jackets at ₹ 500 per Jacket at 8% Trade discount, What is the amount of Trade discount?
Answer:
Sales Value = 30 Jackets × ₹ 500 = ₹ 15,000
Trade Discount = 15,000 × \(\frac{8}{100}\) = ₹ 1,200

9. Complete the following Table.

Question 1.

Answer:
2,000

Question 2.

Answer:
45,000

Question 3.

Answer:
1,84,000

Question 4.

Answer:
1,10,000

Question 5.

Answer:
8,000

Question 6.

Answer:
1,40,000

Question 7.

Answer:
1,10,000

Question 8.

Answer:
1,580

Question 9.

Answer:
1,650

Question 10.

Answer:
600

Practical Problems

Question 1.
Prepare a two-column Cash Book with the help of the following information for January 2018.

Solution:
In the books of ____________


Note: Transactions dated 5th and 18th are credit transactions, hence not to be recorded in the cash book.

Question 2.
Prepare a two-column Cash Book from the following transaction for the year July 2018.

Solution:
In the books of ____________

Question 3.
Record the following transactions in the Cash Book of M/s Kamal Traders. Balance for the month of July 2018: Cash in hand ₹ 2,000 and balance in Bank Current account ₹ 8,000.

Prepare a two-column Cash Book.
Solution:
In the books of M/s Kamal Traders

Question 4.
Prepare Analytical Petty Cash Book from the following transactions in the books of Swarali General Stores, Kolhapur. The imprest amount is ₹ 1,500 received from the main cashier.

Solution:
Analytical Petty Cash Book of Swarali General Stores

Question 5.
From the following information prepare Columnar Petty Cash Book kept on imprest system in the books of Manisha Books Stall, Beed.

Solution:
Analytical Petty Cash Book of Manish a Books Stall, Beed

Question 6.
Prepare proper Subsidiary Books and post them to the ledger from the following transactions for the month of February 2018.

Solution:
In the books of ____________
Purchase Book

Sales Book

Purchase Return Book

Sales Return Book

In the books of ____________

Question 7.
Enter the following transactions in the books of Vijay in Purchase Book, Sales Book, Purchase Returns Book and Sales Returns Book and Journal Proper for the month of August 2018.
2018 August
01 Purchased goods from Vikas Stores ₹ 18,000 at 5% Trade Discount
02 Sold goods of ₹ 9,000 to Prabhakar Traders
05 Veena sold goods of ₹ 16,000 to us at 5% Trade Discount as per our order dated 28th July, 2018.
08 Sent a Debit Note to Vikas Stores ₹ 1,600 (Gross) for goods returned.
10 Sold goods of ₹ 12,000 on credit to Shamal & Sons at 6% Trade Discount.
18 Received Credit Note from Veena ₹ 900 (Gross) for goods returned.
22 Sent Credit Note to Prabhakar Traders for ₹ 1,500 for goods returned. Received Dedit note from Shamal & Sons for ₹ 1,200 (Net) for goods returned.
23 Purchased goods of ₹ 16,600 from Priya Stores and paid for Carriage ₹ 150.
25 Purchased goods from Sadhana Stores ₹ 12,000 and sold the same to Aradhana Stores at a profit of 20% on cost.
28 Aradhana Stores returned goods of ₹ 2,400 as they were defective and the same were returned to Sadhana Stores.
31 Purchased Furniture for office use ₹ 30,000 from Art Furniture Works on credit.
Solution:
In the books of Vijay
Purchase Book

Sales Book

Purchase Return Book

Sales Return Book

Journal Proper

Question 8.
Mr. Akash gives you the following information and asks you to prepare Purchase Book, Sales Book, Purchase Returns Book and Sales Return Book for the month of January 2018.
2018 January
01 Purchased goods on credit from Dhanal Traders for ₹ 15,000 and sold the same to Kunal Traders at a profit of 25% on cost.
05 Placed an order with Sunetra for goods of ₹ 10,000 less 5% Trade discount.
08 Purchased goods of ₹ 20,000 at 10% Trade Discount from Saurabha Traders.
13 Sold goods to Vinayak Stores ₹ 8,000 at 5% Trade Discount.
15 Vinayak Stores returned goods to us ₹ 200.
18 Sunetra executed our order placed on 5th Jan. 2018.
20 Sold goods to Vishnu Traders ₹ 21,000 less 5% Trade Discount.
22 Returned goods to Sunetra ₹ 1,000 (Gross).
28 Kunal Traders returned goods to us ₹ 500
30 Returned goods to Sourabh Traders ₹ 1,500.
Solution:
In the books of Mr. Akash
Purchase Book

Sales Book

Purchase Return Book

Sales Return Book

Question 9.
Enter the following transactions in the Subsidiary Book of Kamal Traders.
2018 April
01 Bought from Suhas goods of ₹ 12,000 as per his Invoice No. 41.
04 Purchased from Virat goods of ₹ 11,870 less 10% Trade Discount vide Bill No. 12.
07 Bought from Kuldip goods of ₹ 11,000 less 25% Trade Discount vide Bill No. 12.
08 Bought from M/s. Art Furniture Works, Furniture for ₹ 13,000 vide Invoice No. 84.
12 Sold to Dhiraj goods of ₹ 11,500 vide Sales Invoice No. 27
13 Sold to Raja goods of ₹ 12,780 less 5% Trade Discount, vide invoice No. 88
21 Sold to Suresh goods of ₹ 8,000 less 20% Trade Discount
23 Dhiraj returned goods of ₹ 500 vide our Credit note No. 14
26 Suresh returned goods of ₹ 150 (gross) vide our Credit Note No. 115
28 Returned to Suhas goods ₹ 1,200 vide our Debit Note No. 09
30 Returned to Virat goods of ₹ 1,300 (Gross) vide our Debit Note No. 10.
30 Returned to Kuldip goods of ₹ 1,100 (Gross) vide our Debit Note No. 11.
Solution:
In the books of Kamal Traders
Purchase Book

Sales Book

Purchase Return Book

Sales Return Book

Journal Proper

Question 10.
Enter the following transactions in the Subsidiary Books of Navyug Traders:
2018 March
01 Sold to Bharat Patil goods ₹ 10,000 at 10% Trade discount.
04 Purchased from Naresh goods of ₹ 11,000 less 10% Trade discount.
06 Purchased Furniture from M/s. Sham Furniture Works, of ₹ 15,000 for office use.
07 Bharat Patil returned 20% of the goods bought by him on 1st March above and we gave him fresh goods in exchange.
08 Sold to Sundar goods of ₹ 13,000 less 15% Trade Discount.
10 Sold to Sumit Computer for ₹ 23,800 with a book value of ₹ 24,000.
12 Placed an order with Sajan for goods of ₹ 12,000.
17 Purchased from Naresh goods of ₹ 14,000 and sold them to Kamesh for ₹ 16,000.
19 Kamesh returned us goods of ₹ 1,600 and immediately returned the same to Naresh.
23 Sold to Rakesh for ₹ 4,500 old Furniture with a book value of ₹ 4,800.
26 Returned to M/s. Sham Furniture Works, office Furniture of ₹ 4,500.
28 Sajan executed our order dated 12th March, 2018.
Solution:
In the books of Navyug Traders
Purchase Book

Sales Book

Purchase Return Book

Sales Return Book

Journal Proper

Class 11 Commerce Book Keeping & Accountancy Textbook Solutions

• Introduction to Book Keeping and Accountancy Class 11 Commerce BK
• Meaning and Fundamentals of Double Entry Book-Keeping Class 11 Commerce BK
• Journal Class 11 Commerce BK
• Ledger Class 11 Commerce BK
• Subsidiary Books Class 11 Commerce BK
• Bank Reconciliation Statement Class 11 Commerce BK
• Depreciation Class 11 Commerce BK
• Rectification of Errors Class 11 Commerce BK
• Final Accounts of a Proprietary Concern Class 11 Commerce BK
• Single Entry System Class 11 Commerce BK

Ledger 11th BK Commerce Chapter 4 Solutions Maharashtra Board

Balbharti Maharashtra State Board Bookkeeping and Accountancy 11th Solutions Chapter 4 Ledger Textbook Exercise Questions and Answers.

Class 11 Commerce BK Chapter 4 Exercise Solutions

1. Answer in one sentence only.

Question 1.
What is Ledger?
Answer:
Ledger is an important book of account in which individual records business transactions with respect to persons, properties, expenses, or losses are maintained.

Question 2.
What is ledger posting?
Answer:
Transferring the entry passed in the journal to the ledger for the individual record is called ledger posting.

Question 3.
When does an account show a nil balance?
Answer:
When the total credit side of an account equals the total of the debit side, such an account shows a nil balance.

Question 4.
What is Folio?
Answer:
Page number of the account opened in the ledger is called Ledger folio.

Question 5.
Where is the statement form of ledger A/c is used in actual practice?
Answer:
The statement form of ledger A/c is used in the banks and financial institutions to prepare the client’s account showing balances of accounts after each transaction is complete.

Question 6.
Why Proprietor’s Capital account is a liability for the business?
Answer:
Capital invested in the business by the proprietor is an asset for the proprietor and liability for the business.

Question 7.
Why does a cash account never shows a credit balance?
Answer:
Available cash with the business is an asset of the business and the account of every asset shows debit, cash account always shows debit balance.

Question 8.
What is ‘Trial Balance’?
Answer:
Trial Balance is an abstract or list of all the ledger accounts as on a specified date showing debit total and the credit total of all the accounts or their net balance.

2. Write the word, term, phrase, which can substitute each of the statements.

Question 1.
Principal Book of accounts.
Answer:
Ledger

Question 2.
Transferring a journal entry to the appropriate accounts in the Ledger.
Answer:
Posting

Question 3.
Page number of Ledger to which an entry is posted.
Answer:
Ledger folio

Question 4.
The process of extracting the balance and inserting it on the lesser side of an account.
Answer:
Balancing

Question 5.
A debit balance to Personal Accounts.
Answer:
Debtor

Question 6.
A credit balance to Bank Account.
Answer:
Bank overdraft

Question 7.
An account to be debited for goods damaged by fire.
Answer:
Loss by fire

Question 8.
A Trial Balance in which only net balances of all ledger accounts are transferred.
Answer:
Net Trial Balance

3. Select appropriate alternatives from those given below and rewrite the sentences.

Question 1.
In case of a credit transaction one of the account must be a ______________ account.
(a) Cash
(b) Credit
(c) Personal
(d) Debit
Answer:
(c) Personal

Question 2.
‘c/d’ indicates ______________ balance.
(a) Opening
(b) Closing
(c) Positive
(d) Negative
Answer:
(b) Closing

Question 3.
______________ Column of ledger is used for writing page number of Journal.
(a) J.F.
(b) L.F.
(c) Date
(d) Particulars
Answer:
(a) J.F.

Question 4.
Debtors Account shows ______________ balance.
(a) Real
(b) Negative
(c) Credit
(d) Debit
Answer:
(d) Debit

Question 5.
______________ is the process of deriving the difference between totals of the debit and credit side of each ledger a/c.
(a) Totalling
(b) Journalizing
(c) Balancing
(d) Posting
Answer:
(c) Balancing

Question 6.
Total of Purchase book is ______________ to Purchase Account.
(a) posted
(b) moved
(c) given
(d) entered
Answer:
(a) posted

Question 7.
Real account always shows ______________ balance.
(a) minimum
(b) maximum
(c) debit
(d) credit
Answer:
(c) debit

Question 8.
______________ is prepared to test arithmetical accuracy of Books of Accounts.
(a) Trial Balance
(b) Ledger
(c) Journal
(d) List
Answer:
(a) Trial Balance

4. State whether the following statements are ‘True or False’ with reasons.

Question 1.
Ledger is a book of Original Entry.
Answer:
This statement is False.
Ledger is a book of Secondary Entry.
Journal is a book of Original Entry: First, all transactions are recorded to journal or subsidiary books, and then they are pasted to the respective ledger accounts.

Question 2.
The process of recording a transaction in the Journal is called Posting.
Answer:
This statement is False.
The process of recording a transaction in the Journal is called Journalising. Posting means transferring journal entries to respective ledger accounts.

Question 3.
A cash withdrawal from business by the trader should be credited to Drawings A/c.
Answer:
This statement is False.
Cash withdrawn from the business by the trader should be debited to Drawing A/c. It is a personal account and as per the golden rules of a personal account Debit the receiver.

Question 4.
Balances of Nominal Accounts are carried forward to the next year.
Answer:
This statement is False.
Balances of Nominal Accounts are transferral to Trading and Profit and loss accounts of the year to find Gross Profit and Net Profit.

Question 5.
When the debit side of an account is greater than the credit side, the account shows a debit balance.
Answer:
This statement is True.
While balancing the ledger account the side which is greater is the balance of that account so when the debit side of an account is greater the account shows debit balances.

Question 6.
The name of an account written on top of each account is called ‘Head of Account’.
Answer:
This statement is True.
There are many ledger accounts in the ledger book. To identity, the name of the account, every account on the Top Head of Account is written.

Question 7.
Agreement of Trial Balance always proves accounting accuracy.
Answer:
This statement is False.
Even though the Trial balance is tally there may be some mistake like the complete omission of transaction or compensatory error so Agreement of Trial Balance does not always prove accounting accuracy.

Question 8.
The trial balance is based on the double-entry principle that for every debit there is an equal amount of corresponding credit.
Answer:
This statement is True.
Trial balance is an extract of ledger balances. Ledger is prepared of journal book which follows the Double Entry System of book-keeping. When both the effects of debit and credit with equal amount is given. The trial balance will be tally.

5. Fill in the blanks.

Question 1.
______________ Balance on Nominal Account shows expenses or loss.
Answer:
debit

Question 2.
Cash account always shows ______________ balance.
Answer:
debit

Question 3.
The right hand side of an account is called ______________ side.
Answer:
credit

Question 4.
Creditors shows ______________ balance.
Answer:
credit

Question 5.
______________ accounts are closed by transferring its balances to Profit and Loss Account.
Answer:
Nominal

Question 6.
‘b/d’ means ______________
Answer:
brought down

Question 7.
Rent paid for the residential quarter will be debited to ______________ account.
Answer:
Drawings

Question 8.
Sold goods of ₹ 24,000 at 20% Profit on cost, the purchase price of the goods is ______________
Answer:
₹ 20,000

6. Complete the following table.

Question 1.

Answer:
Ledger

Question 2.

Answer:
Return outward

Question 3.

Answer:
J.F.

Question 4.

Answer:
Credit balance

Question 5.

Answer:
Nominal A/c

7. Put ‘4’ mark for the nature of balance for the following.

Question 1.


Answer:

Practical Problems

Question 1.
Give Journal entries of the following posting from the ledger account.
In the books of Sopan



Solution:
Journal of Sopan

Question 2.
Prepare necessary Ledger Accounts from the following Subsidiary Books.
Purchase Book

Purchase Return Book

Solution:
In the Ledger of ______________

Question 3.
From the following transactions prepare necessary Ledger Accounts in the Books of Vinay and balance the same.
2019 Jan.
1 Started business with Cash ₹ 10,000
6 Bought goods from Vikas ₹ 3,000
9 Sold goods to Bhushan ₹ 2,400
12 Paid to Vikas on account ₹ 1,600
19 Received on account from Bhushan ₹ 1,000
25 Cash Purchases ₹ 3,600
30 Cash Sales ₹ 5,000
31 Paid Wages ₹ 400
Solution:
In the Ledger of Vinay

Question 4.
Journalise the following transactions and prepare Cash A/c only.
2019 July
1 Hardik started the business with Cash ₹ 15,000 and Machinery ₹ 20,000.
4 Purchased goods for ₹ 9,000 less 10% Cash Discount.
9 Sold goods to Amar ₹ 3,000.
12 Distributed goods worth ₹ 700 as free samples.
14 Bought Stationery for ₹ 550 for office use.
18 Received ₹ 950 from Dhanashree, a customer, whose account was earlier written off as a bad debt.
21 Abhiram invoiced us goods worth ₹ 3,000.
24 Settled Abhiram’s account, he allowed 5% cash discount.
27 Exchanged goods worth ₹ 2,500 against Furniture of the same amount.
29 Withdrawn cash from ATM ₹ 5,000 for office use and ₹ 3,000 for personal use.
Solution:
Journal of Hardik ______________


Ledger of Hardik

Question 5.
Prepare Aparna’s account in the books of Suparna.
2019 Jan.
1 Balance due from Aparna ₹ 60,000
4 Sold goods to Aparna ₹ 15,000 at 10% Trade Discount.
7 Goods returned by Aparna ₹ 1,500 (Gross)
11 Received crossed cheque from Aparna ₹ 50,000
17 Invoiced goods to Aparna ₹ 12,000
25 Sold goods to Aparna in cash ₹ 6,000
30 Received cash from Aparna ₹ 33,000 in full settlement of her account.
Solution:
Ledger of Suparna

Working Notes:
Jan. 4:
Trade discount = 10% on ₹ 15,000
= \(\frac {10}{100}\) × ₹ 15,000
= ₹ 1,500
Net Selling Price = Catalogue price – Trade discount
= 15,000 – 1,500
= ₹ 13,500

Question 6.
Prepare Cash A/c, Bank A/c, Purchases A/c, Sales A/c, and Capital A/c and balance the same in the books of Madanlal.
2019 Aug.
1 Started business with a bank balance of ₹ 40,000.
2 Purchased goods from Aseem worth ₹ 15,000 less 10% Trade Discount.
3 Sold goods to Arun for ₹ 8,000 in cash.
4 Paid Rent ₹ 3,000 and Electricity bill ₹ 500.
5 Purchased 100 Shares of Perfect Technologies for ₹ 55 per share and paid Brokerage ₹ 250 by transfer through net banking.
6 Withdrawal of goods for personal use ₹ 500.
7 Sold goods for cash ₹ 5,000 less 10% Cash Discount.
8 Deposited cash into Bank ₹ 2,000.
9 Paid ₹ 3,000 for daughter’s tuition fees by Debit Card.
10 Purchased a Table for ₹ 2,000.
19 Received ₹ 1,500 by selling the scrap.
27 Paid cash into a bank in excess of ₹ 2,000
Solution:
In the Ledger of Madanlal

Question 7.
Journalise the following transactions; post them into Ledger for February 2019
1 Sunil Started business with a stock of goods ₹ 20,000 and Cash ₹ 1,70,000 out of which ₹ 50,000 borrowed from his friend Kedar @ 10 p.a.
5 Placed an order for goods worth ₹ 7,000 with Mohan for which an advance of ₹ 5,500 was paid.
9 Purchased Stationery for office use ₹ 4,500
12 Goods distributed as free samples ₹ 2,000
17 Paid Freight ₹ 400 on behalf of Mr. Dev.
24 Received Goods from Mohan as per our order dated 5th Feb and settled his account.
27 Bought goods from Shekhar on two months credit for ₹ 7,000 at 20% Trade Discount with instructions to send them to Sagar.
28 Sent to Sagar Outward Invoice for goods supplied by Shekhar, at list price less 10% Trade Discount.
Solution:
Journal of Sunil

Ledger of Sunil

Question 8.
Journalise the following transactions and Prepare ledger accounts in the books of Sanjeev.
2019 June
1 Cash Received from Raju ₹ 10,000 for commission.
3 Intra-state sale to Rakesh ₹ 3,000 and SGST @ 2.5% and CGST @ 2.5% applicable.
5 Received full amount from Rakesh.
8 Intra-state purchases from Mangesh ₹ 2,000 and SGST @ 2.5% and CGST @ 2.5% applicable.
11 Paid the necessary amount to Mangesh.
18 Paid Rent ₹ 2,500
24 Paid mobile bill ₹ 1,000 out of which ₹ 700 for office use and for ₹ 300 for personal use.
Solution:
Journal of Sanjeev


In the Ledger of Sanjeev

Question 9.
The following ledger balances were extracted from the books of Pawan Pawar, Pune as of 1st July 2019.

The following transactions took place during July 2019. Post them into Ledger and prepare Trial Balance as of 31st July 2019.
1 Introduced additional Capital ₹ 40,000
4 Bought goods from Rakesh ₹ 80,000 @ 10% Trade Discount
7 Sold goods to Rashmi ₹ 30,000
9 Returned goods to Rakesh ₹ 20,000 (Gross)
11 Rashmi returned goods to us ₹ 400
14 Paid to Rakesh ₹ 40,000 @ 2% Cash Discount
22 Made purchases ₹ 17,000 and amount paid by cheque
24 Cash Sales ₹ 8,000
27 Bought Stationery ₹ 3,000
28 Received from Rashmi ₹ 39,000 by RTGS and discount allowed ₹ 1000
29 Paid Salary ₹ 10,000
29 Sold goods to Rashmi ₹ 20,000
31 Bought goods from Rakesh ₹ 36,000 and paid by cheque.
Solution:
Ledger of Pawan Pawar, Pune

Trial Balance as of 31st July 2019

Class 11 Commerce Book Keeping & Accountancy Textbook Solutions

• Introduction to Book Keeping and Accountancy Class 11 Commerce BK
• Meaning and Fundamentals of Double Entry Book-Keeping Class 11 Commerce BK
• Journal Class 11 Commerce BK
• Ledger Class 11 Commerce BK
• Subsidiary Books Class 11 Commerce BK
• Bank Reconciliation Statement Class 11 Commerce BK
• Depreciation Class 11 Commerce BK
• Rectification of Errors Class 11 Commerce BK
• Final Accounts of a Proprietary Concern Class 11 Commerce BK
• Single Entry System Class 11 Commerce BK

Journal 11th BK Commerce Chapter 3 Solutions Maharashtra Board

Balbharti Maharashtra State Board Bookkeeping and Accountancy 11th Solutions Chapter 3 Journal Textbook Exercise Questions and Answers.

Class 11 Commerce BK Chapter 3 Exercise Solutions

1A. Answer in One Sentence:

Question 1.
What is Journal?
Answer:
Journal is a book of account in which all types of day-to-day business transactions are recorded in chronological
order.

Question 2.
What is Narration?
Answer:
Explanation of transaction which is written just below the accounting entry in the particular column is called narration.

Question 3.
What is GST?
Answer:
GST is an abbreviated form of Goods and Service Tax that is levied by the Government on specific goods and services in the place of different taxes levied earlier.

Question 4.
In which year GST was imposed by the Central Government of India?
Answer:
In the year 2017 GST was imposed by the Central Government of India.

Question 5.
What is meant by simple entry?
Answer:
An entry in which only two accounts are affected viz. one account is debited and the other account is credited is called simple entry.

Question 6.
What is the meaning of combined entry?
Answer:
A journal entry that combines more than one debit or more than one credit or both is called a combined/compound entry.

Question 7.
Which account is debited, when rent is paid by Debit card?
Answer:
The rent account is debited when rent is paid by debit card.

Question 8.
Which discount is not recorded in the books of account?
Answer:
Trade discount is not recorded in the books of the account.

Question 9.
In which order monthly transactions are recorded in a Journal?
Answer:
In chronological (date wise) order monthly transactions are recorded in the journal.

Question 10.
Which account is credited, when goods are sold on credit?
Answer:
Sales account is credited, when goods are sold on credit.

2. Give one word/term or phrase for each of the following statements:

Question 1.
A book of prime entry.
Answer:
Journal

Question 2.
The tax imposed by Central Government on Goods and Services.
Answer:
GST

Question 3.
A brief explanation of an entry.
Answer:
Narration

Question 4.
The process of recording transactions in the Journal.
Answer:
Journalising

Question 5.
The French word from which the word Journal is derived.
Answer:
Jour

Question 6.
Concession is given for immediate payment.
Answer:
Cash discount

Question 7.
Entry in which more than one accounts are be debited or credited.
Answer:
Combined Entry

Question 8.
Anything took by the proprietor from the business for his private use.
Answer:
Drawings

Question 9.
Tax payable to the Government on purchase of goods.
Answer:
Input Tax

Question 10.
Page number of the ledger.
Answer:
Ledger Folio

3. Select the most appropriate alternative from the alternatives given below and rewrite the statements.

Question 1.
___________ means explanation of the transactions recorded in the Journal.
(a) Narration
(b) Journalising
(c) Posting
(d) Casting
Answer:
(a) Narration

Question 2.
___________ discount is not recorded in the books of accounts.
(a) Trade
(b) Cash
(c) GST
(d) VAT
Answer:
(a) Trade

Question 3.
Recording of transaction in Journal is called ___________
(a) posting
(b) journalising
(c) narration
(d) prime entry
Answer:
(b) journalising

Question 4.
Every Journal entry require ___________
(a) casting
(b) posting
(c) narration
(d) journalising
Answer:
(c) narration

Question 5.
The ___________ column of the Journal is not recorded at the time of journalising.
(a) date
(b) particulars
(c) ledger folio
(d) amount
Answer:
(c) ledger folio

Question 6.
Goods sold on credit should be debited to ___________
(a) Purchase A/c
(b) Customer A/c
(c) Sales A/c
(d) Cash A/c
Answer:
(b) Customer A/c

Question 7.
Wages paid for installation of Machinery should be debited to ___________
(a) Wages A/c
(b) Machinery A/c
(c) Cash A/c
(d) Installation A/c
Answer:
(b) Machinery A/c

Question 8.
The commission paid to the agent should be debited to ___________
(a) Drawing A/c
(b) Cash A/c
(c) Commission A/c
(d) Agent A/c
Answer:
(c) Commission A/c

Question 9.
Loan taken from Dena Bank should be credited to ___________
(a) Capital A/c
(b) Dena Bank A/c
(c) Cash A/c
(d) Dena Bank Loan A/c
Answer:
(d) Dena Bank Loan A/c

Question 10.
Purchase of animals for cash should be debited to ___________
(a) Livestock A/c
(b) Goods A/c
(c) Cash A/c
(d) Bank A/c
Answer:
(a) Livestock A/c

4. State whether the following statements are True or False with reasons.

Question 1.
Narration is not required for each and every entry.
Answer:
This statement is False.
Correct statement: Narration is required for each and every entry.
Reasons: Narration is a brief explanation of the Journal Entry. It is written in the bracket just below the accounting entry. By reading the narration, the reader understands the meaning and significance of accounting entry and the nature and type of business transactions. Narration should be as short as possible and it should be simple and easy to understand.

Question 2.
A journal voucher is a must for all transactions recorded in the Journal.
Answer:
This statement is True.
Reasons: A voucher is a document that supports a payment made by the businessmen. It is legal evidence that a certain sum of money has been paid to a specific person or party. A Journal voucher is an original or basic voucher on the basis of which business transactions are journalized in the journal. Journal voucher provides legal proof for the business transactions. Therefore a journal voucher is necessary for all transactions recorded in the journal.

Question 3.
Cash discount allowed should be debited to discount A/c.
Answer:
This statement is True.
Reasons: Any allowance or reduction in payment allowed by the seller to the buyer or creditor to the debtor on payment of cash is called cash discount. It is the concession given to encourage prompt payment. The gash discount allowed is an expense or a loss to the receiver. Expenses or Losses are always to be debited. Cash discount allowed is an expense or loss and therefore it is debited to Discount A/c.

Question 4.
Journal is a book of prime entry.
Answer:
This statement is True.
Reasons: Journal is the most important book of accounts. It is a book of daily records. It is the main book of accounts in which transactions are recorded for the first time from source documents. Therefore this book is known as the book of original entry or first entry or prime entry. Business transactions are first entered in the journal and then they are recorded in other accounts book. For these reasons, the journal is called a book of prime entry.

Question 5.
Trade discount is recorded in the books of accounts.
Answer:
This statement is False.
Correct statement: Trade discount is never recorded in the books of accounts.
Reasons: The discount which is allowed or given by the manufacturer to wholesalers and by wholesalers to retailers and retailers to customers on the bulk purchases is called trade discount. By custom or by law trade discount is calculated on the catalog or printed price of the goods. Trade discount is directly deducted from the printed price and net prices of the goods or services are recorded in the books of accounts. A trade discount is given to encourage the buyers to increase their purchases. It is given to traders to enable them to earn a sizeable profit on the printed prices.

Question 6.
Goods lost by theft are debited to the goods account.
Answer:
This statement is False.
Correct statement: Goods lost by theft is credited to the goods account.
Reasons: Goods account is a real account because unsold goods are the property of the business. If goods are purchased or acquired, the Goods account is debited and if goods are sold or lost from the business, they are credited. As per the traditional approach, goods lost means go away from the business, and whatever goes out an account of it is credited. As per the modern approach if loss of business increases account of such loss is credited in the hooks of account.

Question 7.
If rent is paid to the landlord, the landlord’s A/c should be debited.
Answer:
This statement is False.
Correct Statement: If rent is paid to the landlord, the Rent account should be debited.
Reasons: Rent paid is an expense and hence it is a nominal account. When rent is paid to the landlord, the rent account is affected and not the landlord’s account. Rent is an expense to a tenant who pays it and it is an income for the landlord. Such payment is not personally due to the landlord as there is no lending and borrowing of money between landlord and rent payer. As per the rule of nominal account, the rent account is debited because it is an expense. As cash goes out cash account is credited.

Question 8.
Book Keeping records monetary and non-monetary transactions.
Answer:
This statement is False.
Correct Statement: Book Keeping records only monetary transactions.
Reasons: According to the money measurement concept, in the books of accounts accountant records only those business transactions which are monetary or financial in nature and capable to be expressed in monetary terms. It means the qualitative and quantitative aspects which cannot be measured in terms of money are not recorded in the books of account personal or non-monetary transactions are not recorded, in the books of accounts e.g. giving lift from car to neighbour, drinking tea along with friends in the restaurant, etc. are not recorded in the books of account as these transactions are not monetary in nature.

Question 9.
Drawings made by the proprietor increase his capital.
Answer:
This statement is False.
Correct statement: Drawings made by the proprietor decreases his capital.
Reasons: Total amount of goods and services withdrawn by the proprietor from the business from time to time for personal use or family use is called drawings. Withdrawals made by a businessman for business purpose is not treated as drawings. Drawings are always adjusted or deducted from capital. Heavy withdrawals made by a businessman for self-use reduces capital in the business. If the businessman controls the drawings more funds are made available for the development of the business. Drawing made by the proprietor reduces his capital investment.

Question 10.
GST paid on the purchase of goods Input tax A/c should be debited.
Answer:
This statement is True.
Reasons: GST is abbreviated from Goods and Service Tax. GST is levied by the government on the purchases of Goods and Services at a specified rate. Since it is imposed on purchases of goods and services, it increases its cost. GST is added to the purchase price. Purchases are always debited and hence GST i.e. Input tax account is also debited along with purchases. In the case of sales of goods and services, the output tax account is credited.

5. Fill in the blanks.

Question 1.
The first book of original entry is the ___________
Answer:
Journal

Question 2.
The process of recording transaction into journal is called ___________
Answer:
Journalising

Question 3.
An explanation of the transaction recorded in the journal ___________
Answer:
Narration

Question 4.
___________ discount is not recorded in the books of accounts.
Answer:
Trade

Question 5.
___________ is concession allowed for bulk purchase of goods or for immediate payment.
Answer:
Discount

Question 6.
Every Journal Entry requires ___________
Answer:
Narration

Question 7.
___________ discount is always recorded in the books of accounts.
Answer:
Cash

Question 8.
___________ is the document on the basis of which the entry is recorded in the journal.
Answer:
Voucher

Question 9.
There are ___________ parties to a cheque.
Answer:
Three

Question 10.
The ___________ cheque is safer than other cheques as it cannot be encashed on the counter of the bank.
Answer:
Crossed.

6. Specimen and Proforma.

Question 1.
Prepare specimen of Tax Invoice.
Answer:

Question 2.
Prepare specimen of Receipt.
Answer:

Question 3.
Prepare specimen of the Crossed cheque.
Answer:

Question 4.
Prepare specimen of Cash voucher.
Answer:

7. Correct the following statements and rewrite the statements.

Question 1.
All business transactions are recorded in the Journal.
Answer:
Only monetary transactions are recorded in the Journal.

Question 2.
A cash discount is not recorded in the books of accounts.
Answer:
A cash discount is recorded in the books of accounts.

Question 3.
Journal is a book of Secondary entry.
Answer:
Journal is a book of Prime entry.

Question 4.
GST is imposed by the Government of India from 1st July 2018.
Answer:
GST is imposed by the Government of India from 1st July 2017.

Question 5.
The machinery purchased by the Proprietor decreases his capital.
Answer:
Machinery purchased by the proprietor increases his Capital.

8. Do you agree or disagree with the following statements.

Question 1.
Narration is required for every entry.
Answer:
Agree

Question 2.
GST stands for Goods and Sales Tax.
Answer:
Disagree

Question 3.
Trade discount is not recorded in the books of accounts.
Answer:
Agree

Question 4.
Wages paid for the installation of Machinery is debited to Wages Account.
Answer:
Disagree

Question 5.
The process of entering or recording the transactions in a Journal is called Journalising.
Answer:
Agree

9. Calculate the following:

Question 1.
Purchased Motor Car from Tata & Company worth ₹ 2,00,000 at 18% GST. Find out GST amount.
Solution:
Cost of the Motor Car = ₹ 2,00,000
GST @ 18% = 2,00,000 × \(\frac{18}{100}\) = ₹ 36,000
Net value of the Motor Car = ₹ 2,00,000 + ₹ 36,000 = ₹ 2,36,000

Question 2.
Paid Transport charges ₹ 10,000 @ 5% GST. Calculate CGST & SGST.
Solution:
Transport charges = ₹ 10,000 @ 5% GST.
CGST = Transport charges × 2.5%.
= 10,000 × \(\frac{2.5}{100}\)
= 10,000 × \(\frac{25}{1000}\)
= ₹ 250
SGST = Transport charges × 2.5%.
= 10,000 × \(\frac{2.5}{100}\)
= 10,000 × \(\frac{25}{1000}\)
= ₹ 250
Net value = 10,000 + 250 + 250 = ₹ 10,500.

Question 3.
Bought goods from Ranjan ₹ 10,000 @ 5% GST and 10% cash discount. Calculate cash discount.
Solution:
Cost of the goods bought = ₹ 10,000 @ 5% GST and 10% cash discount.
GST on Goods Purchased = Cost of goods × 5%.
= 10,000 × \(\frac{5}{100}\)
= ₹ 500.
Net value of Goods Purchased = 10,000 + 500 = ₹ 10,500
Cash discount = Net value × 10%.
= 10,500 × \(\frac{10}{100}\)
= ₹ 1,050.

Question 4.
Received cheque of ₹ 90,000 from Kiran in full settlement of his account ₹ 1,00,000/-. Calculate discount rate.
Solution:
Discount allowed to Kiran = Amount due – Amount received
= 1,00,000 – 90,000
= ₹ 10,000.
Rate of discount allowed to Kiran = \(\frac{100 \times \text { Total Discount allowed }}{\text { Amount on which discount allowed }}\)
= \(\frac{100 \times 10,000}{1,00,000}\)
= 10%

Question 5.
Sold goods of ₹ 1,00,000 at 10% Trade Discount and 10% cash discount to Ram and received 50% amount by cheque. Calculate the amount of cheque received.
Solution:
Trade Discount = Catalogue price × Rate of trade discount
= 1,00,000 × \(\frac{10}{100}\)
= ₹ 10,000
Net amount receivable = Catalogue price – Trade Discount
= 1,00,000 – 10,000
= ₹ 90,000
50% of net amount received.
∴ Amount receivable = 50% of 90,000
= \(\frac{50}{100}\) × 90,000
= ₹ 45,000
Cash discount allowed = 10% on ₹ 45,000
= \(\frac{10}{100}\) × 45,000
= ₹ 4,500
Amount of cheque received = 50% of total amount – Cash discount
= 45,000 – 4,500
= ₹ 40, 500
Amount received by cheque = ₹ 40,500.

10. Complete the following table.

Question 1.

Answer:
1. Drawings A/c
2. Sonali’s A/c
3. Bad debts A/c
4. Livestock A/c
5. Capital A/c

Practical Problems

Question 1.
Journalise the following transactions in the books of Anand General Merchants.
2019 April
1 Mr. Anand started the business with cash of ₹ 60,000.
5 Purchased goods for cash ₹ 30,000.
7 Sold goods of ₹ 10,000 to Suresh.
10 Purchased Furniture from Mr. Govind on credit ₹ 30,000.
15 Paid for Rent ₹ 3000 and paid by debit card.
21 Purchased goods from Urmila on credit ₹ 70,000.
27 Paid for Transport ₹ 1,000 to United Transport.
30 Paid to Urmila ₹ 20,000 on behalf of Sharmila.
Solution:
In the Journal of Anand General Merchants

Question 2.
Journalise the following transactions in the books of Gajanan.
2019 May
3 Purchased goods for ₹ 90,000 and amounts paid by Bank directly.
7 Sold goods to Satish on credit ₹ 30,000.
9 Paid for Postage ₹ 10,000.
12 Paid for Wages ₹ 15,000.
15 Received cheque of ₹ 30,000 from Satish.
21 Received Dividend ₹ 5000.
25 Purchased Laptop of ₹ 40,000 and paid by cheque.
28 Deposited cash ₹ 10,000 into State Bank of India.
31 Purchased goods for ₹ 40,000 and paid by RTGS.
Solution:
Journal of Gajanan

Question 3.
Journalise the following transactions in the books of Ashok General Stores.
2019 May
1 Received ₹ 5,000 from Ram on behalf of Bharat.
4 Purchased Goods for cash ₹ 55,000.
8 Paid for Salary ₹ 8,000.
12 Purchased goods from Ganesh ₹ 30,000 on credit.
17 Sold goods to Mrs. Neha ₹ 60,000 on credit.
20 Purchased Machinery of ₹ 80,000 @ 12% GST and amount paid by cheque.
25 Paid to SG & Sons by cheque ₹ 30,000.
28 Received Commission ₹ 10,000 from Ganesh.
30 Paid Rent ₹ 5000.
31 Purchased Shares of Atul Company Ltd. for ₹ 10,000 through Demat account.
Solution:
Journal of Ashok General Stores


Working Note:
Dated 20th May 2019:
Calculation of CGST and SGST on Machinery
Catalogue price of ₹ 80,000 @ 12%.
CGST i.e. Central Goods and Services Tax = 12% × \(\frac{1}{2}\) = 6%.
CGST = Price of Machinery × 6%.
= 80,000 × \(\frac{6}{100}\)
= ₹ 4,800.
SGST i.e. State Goods and Service Tax = 12% × \(\frac{1}{2}\) = 6%.
SGST = 80,000 × \(\frac{6}{100}\) = ₹ 4,800.

Question 4.
Journalise the following transactions in the books of Sanjay General Stores.
2019 June
1 Started business with cash ₹ 50,000, Bank ₹ 1,00,000, Goods worth ₹ 50,000.
5 Purchased goods from Mohan on credit ₹ 80,000 at 10% Trade Discount.
9 Sold goods to Urmila ₹ 30,000 at 5% Trade Discount.
12 Paid into Dena Bank ₹ 40,000.
15 Goods worth ₹ 5000 were distributed as a free samples.
22 Paid for Commission ₹ 5,000 to Anand.
24 Received ₹ 28,000 from Urmila in full settlement of her account by Debit Card.
29 Paid for Advertisement ₹ 9,000.
30 Purchased Laptop for ₹ 20,000 @ 28% GST and amount paid by NEFT.
Solution:
Journal of Sanjay General Stores

Working Note:
5th June 2019:
Calculation of Trade discount
Purchased goods for ₹ 80,000 @ 10% Trade discount
Trade discount = 80,000 × \(\frac{10}{100}\) = ₹ 8,000
Net Purchase Price = 80,000 – 8,000 = ₹ 72,000

24th June 2019:
Discount allowed to Urmila = Amount due – Amount received
= 28,500 – 28,000
= ₹ 500

30th June 2019:
Calculation of CGST and SGST
Price of Laptop = ₹ 20,000 @ 28% GST.
CGST = (Price of Laptop) × Rate of CGST
= 20,000 × \(\frac{14}{100}\)
= ₹ 2,800
SGST = (Price of Laptop) × Rate of SGST
= 20,000 × \(\frac{14}{100}\)
= ₹ 2,800

Question 5.
Journalise the following transactions in the books of Kunal Stores.
2018 August
1 Purchased goods of ₹ 90,000 at 10% Trade Discount and 10% Cash Discount from Rakesh and 1/3rd amount paid by cheque.
5 Opened current account in State Bank of India by depositing ₹ 60,000.
8 Cash purchases ₹ 85,000.
10 Goods sold on credit to Tushar ₹ 20,000 @ 10% Trade Discount.
12 Paid Salary ₹ 4,000.
16 Tushar returned goods of ₹ 250.
17 Goods taken by Kunal for his private use ₹ 2,000.
20 Purchased Laptop of ₹ 40,000 from Joshi Electronics @ 18% GST and paid by cheque.
22 Rent paid by cheque ₹ 15,000.
25 Purchased Motor car worth ₹ 2,00,000 for cash @ 18% GST and paid by Bank.
26 Goods distributed as free sample ₹ 4,000.
28 Purchased goods from Amit of ₹ 60,000 on credit.
30 Paid by ECS cash to Amit ₹ 58,500, who allowed us a discount of ₹ 1,500.
30 Sold goods ₹ 5,000 at a loss of ₹ 1,000
31 Sold goods for ₹ 20,000.
Solution:
Journal of Kunal Stores


Working Notes:
1. 2018 Aug. 1st:
Trade discount = 10% on Purchase catalogue price
= \(\frac{10}{100}\) × 90,000
= ₹ 9,000
Net Purchase price = 90,000 – 90,00 = ₹ 81,000
Amount paid = \(\frac{1}{3}\) × 81,000 = ₹ 27,000
Cash discount = 10% on 27,000
= \(\frac{10}{100}\) × 27,000
= ₹ 2700
Amount paid by cheque = 27,000 – 2700 = ₹ 24,300

2. Aug. 10th:
Net price of Goods sold to Tushar = 20,000 – 10% Trade discount
= 20,000 – \(\frac{10}{100}\) × 20,000
= 20,000 – 2,000
= ₹ 18,000

3. 20th Aug. 2018:
Calculation of GST
CGST = 9% on ₹ 40,000
= \(\frac{9}{100}\) × 40,000
= ₹ 3,600
SGST = 9% on ₹ 40,000
= \(\frac{9}{100}\) × 40,000
= ₹ 3,600

4. 25th Aug. 2018:
Calculation of GST
CGST = 9% on ₹ 2,00,000
= \(\frac{9}{100}\) × 2,00,000
= ₹ 18,000
SGST = 9% on ₹ 2,00,000
= \(\frac{9}{100}\) × 2,00,000
= ₹ 18,000

Question 6.
Journalise the following transactions in the books of Nina General Stores.
2018 Sept
1 Sold goods of ₹ 50,000 at 10% Trade Discount and 10% Cash Discount to Raj and received 50% by cheque and 20% by cash.
3 Bought goods worth ₹ 60,000 from Prashant at 7.5% Trade Discount and half amount paid by cash.
5 Returned goods worth ₹ 550 to Prashant.
7 Sold goods worth ₹ 90,000 to Ranvir on credit at 10% Trade Discount.
12 Received Commission ₹ 4,500.
15 Received cheque of ₹ 80,000 from Ranvir in full settlement of his account.
18 Purchased Computer worth ₹ 80,000 from Reliance Company by cheque at 28% GST.
22 Wages paid ₹ 13,000.
23 Paid for Life Insurance premium ₹ 17,000.
27 Sold goods worth ₹ 28,000 to Tushar who paid us ₹ 18,000 immediately
Solution:
Journal of Nina General Stores


Working Notes:
1. 1st Sept. 2018:
Selling (invoice) price = ₹ 50,000
Trade Discount = 10% on ₹ 50,000
= \(\frac{10}{100}\) × 50,000
= ₹ 5,000
Net selling price = 50,000 – 5,000 = ₹ 45,000
50% of the Net selling price received by cheque
Amount of cheque received = 50% of Net selling price – Cash discount
= \(\frac{50}{100}\) × 45,000 – 10% on ₹ 22,500
= 22,500 – 2,250
= ₹ 20,250
20% of Net selling price received by cash.
Net amount of cash received = 20% of Net selling price – Cash discount
= \(\frac{20}{100}\) × 45,000 – Cash discount
= 9,000 – \(\frac{10}{100}\) × 9000
= 9,000 – 900
= ₹ 8,100
30% of Net Selling price is not received
∴ Amount not received = \(\frac{30}{100}\) × 45,000 = ₹ 13,500
Total of cash discount = 2,250 + 900 = ₹ 3,150

2. 3rd Sept. 18:
Trade discount = 7.5% on 60,000
= \(\frac{7.5}{100}\) × 60,000
= ₹ 4,500
Net Purchase price = 60,000 – 4,500 = ₹ 55,500

3. 18th Sept. 18:
Calculation of GST
CGST = (Purchase Price of Computer) × 14%
= 80,000 × \(\frac{14}{100}\)
= ₹ 11,200
SGST = 80,000 × \(\frac{14}{100}\) = ₹ 11,200
Net Purchase price of Computer = 80,000 + 11,200 + 11,200 = ₹ 1,02,400

Question 7.
Journalise the following transactions in the books of Varun
2018 Oct.
1 Purchased Machinery of ₹ 95,000 and paid ₹ 5,000 for freight.
3 Purchased goods for ₹ 1,50,000 and amount paid by Bank.
6 Purchased Laptop from Nagesh & Co. worth ₹ 1,80,000 @ 18% GST.
10 Paid into Bank of Baroda ₹ 70,000.
12 Paid for Rent ₹ 4,000 and Commission ₹ 3,000.
15 Bought goods from Tushar Company Ltd. ₹ 1,20,000 at 12% GST and paid 1/2 amount by RTGS.
16 Cash purchases ₹ 50,000 amount paid by cheque.
20 Invoiced goods to Satish ₹ 80,000 at 12% GST and the amount received by cheque.
25 Paid for Telephone charges ₹ 90,000
27 Mrs. Varsha bought goods from us ₹ 90,000 at a 12% Trade Discount.
28 Purchased goods from Abhijeet & Sons ₹ 1,50,000 at 18% GST.
30 Paid to Abhijeet & Sons and received 10% Cash Discount by cheque.
31 Paid for Advertisement ₹ 8,000 and Brokerage ₹ 12,000.
Solution:
Journal of Varun

Question 8.
Journalise the following transactions in the books of Dhoni Auto Car Centre
2018 Nov
1 Sold 1,000 shares for ₹ 100 each and paid brokerage @ 1% and the amount credited to our account.
4 Purchased goods from Ashish & Co. of ₹ 2,00,000.
6 Sold goods to Virat & Co. ₹ 1,50,000.
8 Paid for Advertisement ₹ 30,000 to Times of India.
10 Paid for Printing and Stationery ₹ 7,000.
12 Purchased goods from Prakash & Co. ₹ 1,50,000 @ 18% GST.
15 Paid for Transport charges ₹ 10,000 @12% GST.
20 Purchased goods from Vikram & Sons ₹ 1,20,000 @ 18% GST and paid half the amount immediately.
25 Paid to Prakash & Co. less 10% discount.
30 Invoiced Goods to Sanjay ₹ 60,000.
31 Sanjay returned goods of ₹ 10,000.
31 Sanjay became insolvent and recovered only 50 paise in a rupee as a final settlement from him.
Solution:
Journal of Dhoni Auto Car Centre


Working Notes:
1. 2018, Nov. 1:
Amount credited to Bank A/c = Sales proceed – Brokerage @ 1%
= 1,000 × 100 – \(\frac{1}{100}\) × 1,000 × 100
= 1,00,00 – 1,000
= ₹ 99,000

2. Nov. 12:
Net Purchase price = Purchase price + 9% CGST + 9% SGST
= 1,50,000 + \(\frac{9}{100}\) × 1,50,000 + \(\frac{9}{100}\) × 1,50,000
= 1,50,000 + 13,500 + 13,500
= ₹ 1,77,000

3. Nov. 20:
Net Purchase price = Purchase price + 9% CGST + 9% SGST
= 1,20,000 + \(\frac{9}{100}\) × 1,20,000 + \(\frac{9}{100}\) × 1,20,000
= 1,20,000 + 10,800 + 10,800
= ₹ 1,41,600
Amount paid = \(\frac{1}{2}\) of 1,41,600 = ₹ 70,800 and credit purchased = ₹ 70,800.

4. Nov. 25:
Cash discount = Amount due to Prakash & Co × 10%
= 1,77,000 × \(\frac{10}{100}\)
= ₹ 17,700

5. Bad debts = Amount due from Sanjay – Amount recovered
= 50,000 – 50% of 50,000
= 50,000 – 25,000
= ₹ 25,000

Question 9.
Journalise the following transactions in the books of Hero Enterprises.
Balance on 1st April 2019
Cash at Bank ₹ 80,000, Sundry Debtors Ram ₹ 20,000, Rahim ₹ 30,000, Stock ₹ 55,000, Building ₹ 1,50,000.
Credit Balances on 1st April 2019
Sundry Creditors Swapna ₹ 20,000, Rohit ₹ 30,000, Bank Loan ₹ 50,000.
2019 April
1 Purchased goods worth ₹ 1,50,000 from Prashant & Co., less 10% Trade Discount.
4 Sold goods to Mr. Amit Sharma ₹ 70,000 at 10% Trade Discount on credit.
9 Purchased goods for cash ₹ 2,00,000 @ 28% GST amount paid by NEFT.
12 Sold Goods to Aditya Ray of ₹ 90,000 @ 28% GST.
15 Paid for Rent ₹ 5000 and Salary ₹ 18,000.
17 Paid for Proprietor’s house Rent ₹ 12,000.
20 Sold half of the goods purchased on 9th April at 20% Profit and 28% GST.
25 Paid for Wages ₹ 1,500.
25 Purchased Furniture ₹ 1,80,000 @ 12% GST and amount paid by RTGS.
28 Sold an old Furniture of ₹ 20,000 for ₹ 12,000.
30 Sold shares of ₹ 10,000 for ₹ 15,000 and the amount received by cheque.
Solution:
Journal of Hero Enterprises


Working Notes:
1. 2019 April, 20:
Cost of Goods sold = \(\frac{1}{2}\) of purchases on 9th April, 2019
= \(\frac{1}{2}\) × 2,00,000
= ₹ 1,00,000
Selling price of Goods sold = \(\frac{120}{100}\) × ₹ 1,00,000 = ₹ 1,20,000

2. April, 28:
Loss on sale of furniture = Cost of furniture – Selling price
= 20,000 -12,000
= ₹ 8,000

3. April, 30:
Profit on sale of shares = Selling price – Cost of shares
= 15,000 – 10,000
= ₹ 5,000

Question 10.
Journalise the following transactions in the books of Harbhajan & Co. for the month of 1st April 2019.
Balance on 1st April 2019
Cash in hand ₹ 35,000, Cash at Bank ₹ 25,000, Furniture ₹ 1,50,000, Laptop ₹ 1,00,000
Debtors: Sangita ₹ 40,000, Viru ₹ 30,000
Creditors: Ganesh ₹ 10,000, Garima ₹ 40,000, Bank loan ₹ 50,000.
2019 April
1 Purchased goods from Ajay Kumar worth ₹ 2,50,000 at 10% Trade discount @ 18% GST and paid 1/4 amount in Cash.
5 Purchased shares of Infosys Company ₹ 50,000 and ₹ 500 paid as a brokerage for Demat A/c.
8 Sold goods to Raj worth ₹ 90,000 at 10% Trade discount and 1/3 amount received by cash and 5% cash discount is allowed.
12 Paid house rent of proprietor ₹ 9,000 and office rent ₹ 5,000.
15 Purchased Laptop of ₹ 60,000 @ 18% GST and paid amount by cheque.
20 Paid transport charges on the above Laptop ₹ 1,000 @ 18% GST.
25 Paid Commission ₹ 20,000 to Ram.
26 Paid Telephone Charges ₹ 1,000.
28 Transferred from private Bank A/c of proprietor to business Bank A/c ₹ 40,000.
30 Bought goods for ₹ 1,50,000 @ 12% as GST by cheque.
30 Exchanged our Furniture of ₹ 30,000 against a Motor car of the same value for business.
Solution:
Journal of Harbhajan & Co.


Working Notes:
1. 8 April 2019:
Net selling price = Selling price – 10% Trade discount
= 90,000 – 10% on 90,000
= 90,000 – 9,000
= ₹ 81,000
Cash received = \(\frac{1}{3}\) of 81,000
= \(\frac{1}{3}\) × 81,000
= ₹ 27,000
Net cash received = 27,000 – Cash discount @ 5%
= 27,000 – \(\frac{5}{100}\) × 27,000
= 27,000 – 1,350
= ₹ 25, 650
Credit sale = \(\frac{2}{3}\) of 81,000
= \(\frac{2}{3}\) × 81,000
= ₹ 54,000

Class 11 Commerce Book Keeping & Accountancy Textbook Solutions

• Introduction to Book Keeping and Accountancy Class 11 Commerce BK
• Meaning and Fundamentals of Double Entry Book-Keeping Class 11 Commerce BK
• Journal Class 11 Commerce BK
• Ledger Class 11 Commerce BK
• Subsidiary Books Class 11 Commerce BK
• Bank Reconciliation Statement Class 11 Commerce BK
• Depreciation Class 11 Commerce BK
• Rectification of Errors Class 11 Commerce BK
• Final Accounts of a Proprietary Concern Class 11 Commerce BK
• Single Entry System Class 11 Commerce BK

Meaning and Fundamentals of Double Entry Book-Keeping 11th BK Commerce Chapter 2 Solutions Maharashtra Board

Balbharti Maharashtra State Board Bookkeeping and Accountancy 11th Solutions Chapter 2 Meaning and Fundamentals of Double Entry Book-Keeping Textbook Exercise Questions and Answers.

Class 11 Commerce BK Chapter 2 Exercise Solutions

1. Answer in one sentence only.

Question 1.
What is a Double Entry System?
Answer:
A system of accounting is which double or two-fold effects of every business transaction are recorded systematically in the books of accounts is called a double-entry book-keeping system.

Question 2.
What is an Account?
Answer:
The summarised record of all transactions related to a person, an institution, an income, and expenditure, an asset, a liability, a profit, gain as per the accounting principles is called an account.

Question 3.
State the meaning of the Single Entry System.
Answer:
A book-keeping system in which only one aspect of every business transaction is considered and systematically recorded in the books of accounts and other aspects are completely ignored is called Single Entry System.

Question 4.
What is Personal Account?
Answer:
Account of person or account relating to a person with whom a business keeps dealings is called Personal Account.
e.g. Kishor’s A/c, Bank of India’s A/c.

Question 5.
State the rules of Nominal Account.
Answer:
The rules of Nominal Account state that Debit all expenses or loses and Credit all incomes and gains.

Question 6.
Give two examples of intangible assets.
Answer:
Goodwill and Patents or Trademark are two examples of intangible assets.

Question 7.
State the meaning of Real Account.
Answer:
Account of tangible as well as intangible property or anything owned and possessed by the business is called real account, e.g. Cash A/c.

Question 8.
Give two examples of income and gains.
Answer:
Interest received, Discount earned, sales, etc. are examples of income and gains.

Question 9.
State the rule for Personal Account.
Answer:
The rule of personal account states that Debit the receiver and Credit the giver.

Question 10.
How many methods of recording accounting information are there?
Answer:
The methods of recording accounting information are broadly classified as (i) Indian System and (ii) English System. It is sub-classified as (a) a Single Entry System and (b) a Double Entry System.

2. Write one word/term or phrase which can substitute each of the following statements.

Question 1.
Method of Accounting which records both aspects of the transaction.
Answer:
Double Entry System

Question 2.
The right-hand side of an account.
Answer:
Credit side

Question 3.
Name of the account which is debited when proprietor uses business money for personal use.
Answer:
Drawings A/c

Question 4.
Accounts of Assets and Properties.
Answer:
Real A/c

Question 5.
Accounts of Expenses and Losses and Incomes and Gains.
Answer:
Nominal A/c

Question 6.
The left-hand side of an account.
Answer:
Debit side

Question 7.
The Assets which cannot be seen, touched or felt.
Answer:
Intangible Asset

Question 8.
A person who invented the Double Entry System.
Answer:
Luca D. Bargo Pacioli

Question 9.
Incomplete system of recording business transactions.
Answer:
Single Entry System

Question 10.
A scientific system of recording business transactions.
Answer:
Double Entry system

3. Select the most appropriate alternatives from those given below and rewrite the statements.

Question 1.
International Accounting day is observed on _______________
(a) 10th November
(b) 12th November
(c) 10th December
(d) 15th December
Answer:
(a) 10th November

Question 2.
Conventional system of accounting is _______________
(a) English entry system
(b) Double entry system
(c) Indian System
(d) None of these
Answer:
(c) Indian System

Question 3.
Every debit has corresponding _______________
(a) Debit
(b) Credit
(c) Right hand side
(d) None of these
Answer:
(b) Credit

Question 4.
Radha’s Account is a type of _______________ account.
(a) Nominal
(b) Personal
(c) Real
(d) Expenses
Answer:
(b) Personal

Question 5.
Machinery Account is _______________ account.
(a) Nominal
(b) Income
(c) Personal
(d) Real
Answer:
(d) Real

Question 6.
Goodwill is _______________ asset.
(a) Tangible
(b) Current
(c) an intangible
(d) None of these
Answer:
(c) an intangible

Question 7.
Prepaid expenses is _______________ account.
(a) Real
(b) Personal
(c) Nominal
(d) Income
Answer:
(b) Personal

Question 8.
Debit the receiver, Credit the _______________
(a) Goes out
(b) Giver
(c) Income and gains
(d) Comes in
Answer:
(b) Giver

Question 9.
Debit what comes in, Credit what _______________
(a) Giver
(b) Expenses and losses
(c) Goes out
(d) Income and gains
Answer:
(c) Goes out

Question 10.
Debit all _______________ and Credit all income and gains.
(a) Giver
(b) Expenses and losses
(c) Goes out
(d) None of these
Answer:
(b) Expenses and Losses

4. State whether the following statements are True or False with reasons.

Question 1.
Outstanding expense is a nominal account.
Answer:
This statement is False.
Outstanding expenses are personal accounts. It is a representative personal account. Expenses are payable to some person.

Question 2.
A capital account is a real account.
Answer:
This statement is False.
Capital is a personal account. Amount invested in the business by the proprietor is capital. A proprietor is a natural person.

Question 3.
Every debit has equal and corresponding credit.
Answer:
This statement is True.
Under the Double Entry System, the two-fold effects of each transaction are recorded. Under this system one account is to be debited and another is to be credited with an equal amount.

Question 4.
The discount received is a nominal account.
Answer:
This statement is True.
Discount received in an income for the business. All expenses and income come under the Nominal account.

Question 5.
The drawings account is a nominal account.
Answer:
This statement is False.
The drawing is a Personal account. Drawing means cash on goods withdrawn by the proprietor for personal use. As the proprietor is a Personal account his drawings are also a Personal account.

Question 6.
Outstanding salary is a nominal account.
Answer:
This statement is False.
Outstanding salary is Personal account. Salary is the amount payable to staff. As he is a person, the amount payable to him is a personal account. It is a Representative Personal account.

Question 7.
A loan account is a personal account.
Answer:
This statement is True.
The loan is taken from a person or bank and they are persons either natural or person or artificial persons.

Question 8.
A goodwill account is a real account.
Answer:
This statement is True.
All properties/assets come under real accounts. Goodwill is an intangible asset so goodwill is a Real account.

Question 9.
A discount account is a nominal account.
Answer:
This statement is False.
Trade discount is a noncash transaction it is not recorded in the books of account so it doesn’t fall under any account.

Question 10.
Personal transactions of proprietors are recorded in the books of account of business.
Answer:
This statement is False.
Personal transactions of proprietors are not recorded in the books of account of business. Only business transactions are recorded in the books of account of business as businesses have a separate entity.

Question 11.
A motor car account is a Real Account.
Answer:
This statement is True.
All properties and assets fall under real accounts. Motor car is property so it is a real account.

Question 12.
The rule of a Nominal Account is to Debit the receiver and Credit the giver.
Answer:
This statement is False.
The rule of the Nominal account is to debit all expenses and losses Credit all incomes and gains.

Question 13.
A bank loan account is a Nominal account.
Answer:
This statement is False.
The bank account is a Personal account. It is a representative person.

Question 14.
Assets = Capital + Liabilities
Answer:
This statement is True.
Total assets are always equal to total liabilities. Total liabilities include capital also.
So Assets = Capital + Liabilities.

Question 15.
A Trademark account is a personal account.
Answer:
This statement is False.
Trademark is a real account. All tangible and intangible assets are properties and they fall under real account.

5. Fill in the blanks.

Question 1.
Increase in asset is debited and decrease in asset is _______________
Answer:
Credited

Question 2.
Assets = Liabilities + _______________
Answer:
Capital

Question 3.
Increase in capital is credited and decrease in capital is _______________
Answer:
Debited

Question 4.
Scientific and complete system of recording is known as _______________
Answer:
Double Entry System

Question 5.
Debit all expenses and losses, Credit all _______________
Answer:
Income and Gains

Question 6.
Land and Building account is _______________ account.
Answer:
Real

Question 7.
Cash Book and Personal Accounts are only maintained under _______________ system.
Answer:
Single Entry

Question 8.
Debit what comes in and credit what goes out is the rule of _______________ account.
Answer:
Real

Question 9.
Travelling expenses account is _______________ type of Account.
Answer:
Nominal

Question 10.
Every transaction has _______________ effect.
Answer:
Two Fold

Question 11.
_______________ accounts are accounts of properties and assets.
Answer:
Real

Question 12.
Laptop account is a _______________ account.
Answer:
Real

6. Classify the following accounts under the types of Personal, Real, and Nominal accounts.

Question 1.
Mr. Rohit’s capital A/c
Answer:
Personal Account

Question 2.
Loose Tools A/c
Answer:
Real Account

Question 3.
Drawing A/c
Answer:
Personal Account

Question 4.
Cartage A/c
Answer:
Nominal Account

Question 5.
Prepaid Rent A/c
Answer:
Personal Account

Question 6.
Copyright A/c
Answer:
Real Account

Question 7.
Patent A/c
Answer:
Real Account

Question 8.
Outstanding Income A/c
Answer:
Personal Account

Question 9.
Prepaid Expenses A/c
Answer:
Personal Account

Question 10.
Commission Received A/c
Answer:
Nominal Account

Question 11.
Freight A/c
Answer:
Nominal Account

Question 12.
Plant and Machinery A/c
Answer:
Real Account

Question 13.
Sundry Income A/c
Answer:
Nominal Account

Question 14.
Live Stock A/c
Answer:
Real Account

Question 15.
Goods distributed as free sample A/c
Answer:
Nominal Account

Question 16.
Radhika’s A/c
Answer:
Personal Account

Question 17.
Outstanding Wages A/c
Answer:
Personal Account

Question 18.
Loss on Sale of Furniture A/c
Answer:
Nominal Account

Question 19.
Bank of Maharashtra A/c
Answer:
Personal Account

Question 20.
Loan A/c
Answer:
Personal Account

Question 21.
Computer A/c
Answer:
Real Account

Question 22.
Legal Expenses A/c
Answer:
Nominal Account

Question 23.
Fixed Deposit A/c
Answer:
Real Account

Question 24.
Income Receivable A/c
Answer:
Personal Account

Question 25.
Audit Fees A/c
Answer:
Nominal Account

Question 26.
Trademark A/c
Answer:
Real Account

Question 27.
Loss by fire A/c
Answer:
Nominal Account

Question 28.
Motor Car A/c
Answer:
Real Account

Question 29.
Income tax A/c
Answer:
Personal Account

Question 30.
GST A/c (Goods and Service Tax)
Answer:
Nominal Account

Question 31.
Siddhivinayak Trust A/c
Answer:
Personal Account

Question 32.
Office Equipment A/c
Answer:
Real Account

Question 33.
The stock of Stationery A/c
Answer:
Real Account

Question 34.
Indian Railways A/c
Answer:
Personal Account

Question 35.
Income Received in Advance A/c
Answer:
Personal Account

Question 36.
Dividend on Investment Advance A/c
Answer:
Nominal Account

Question 37.
Discount A/c
Answer:
Nominal Account

Question 38.
Raj & company A/c
Answer:
Personal Account

Question 39.
Repairs A/c
Answer:
Nominal Account

Question 40.
Royalty A/c
Answer:
Nominal Account

7. Complete the following Accounting equation table.

Question 1.

Answer:

8. Give necessary transactions for the following effect of increase and decrease in Assets, Capital, and Liabilities.

Question 1.

Answer:

Practical Problems

Question 1.
Prepare a chart showing Analysis of the following transactions in a Tabular form according to the Traditional Approach:
1. Rajasaheb started the business with cash of ₹ 85,000.
2. Goods Purchased for cash ₹ 5,000.
3. Sold goods on credit worth ₹ 6,000 to Ramesh.
4. Cash deposited into Bank of Maharashtra ₹ 12,000.
5. Interest received ₹ 700 from Radhika.
6. Paid Rent ₹ 2,000 to the landlord.
7. Bought goods on credit from Birajmohan ₹ 7,000.
8. Withdrew cash from bank ₹ 1,000 for office use.
9. Purchased computer ₹ 9,000 for cash.
10. Paid Mobile bill (office) ₹ 500.
11. Sold old Mobile ₹ 2,000.
12. Received Rent ₹ 1,000 from the tenant.
Solution:
Table showing analysis of the transactions is given below (Traditional Approach)

Question 2.
Prepare Chart showing Analysis of the following transaction in a Tabular form according to Modern Approach.
1. Mr. Meghraj started the business with cash of ₹ 30,000.
2. Deposited cash into Bank of India ₹ 2,000.
3. Withdrew cash ₹ 1,000 for personal use.
4. Purchased goods on credit from Nilesh ₹ 2,000.
5. Cash purchases ₹ 3,000.
6. Paid Wages ₹ 400.
7. Purchased a chair for office use ₹ 3,200.
8. Sold goods to Mohan worth ₹ 1,200.
9. Withdrew Cash for Office use ₹ 3,000.
10. Sold old furniture ₹ 9,000.
11. Received Dividend of ₹ 1,000.
12. Paid for Printing bill book ₹ 200.
Solution:
Analysis of transactions by applying rules of Debit and Credit (Modern Approach)

Question 3.
Give the accounting equation for the following transactions:
1. Mr. Vaibhav started the business with Cash of ₹ 1,00,000.
2. Purchased goods on credit from Rita Stores ₹ 9,000.
3. Purchased Laptop for office use ₹ 10,000.
4. Sold goods to Rina on credit ₹ 12,000.
5. Received Interest ₹ 2,500.
6. Paid Telephone bill ₹ 1,300.
Solution:
Table showing Accounting equations for the transactions.

Question 4.
Give the accounting equation for the following transactions.
1. Mr. Swaraj commenced business with a Bank balance of ₹ 1,10,000.
2. Purchased Furniture on credit from S.M Furniture Mart ₹ 25,000.
3. Bought goods on credit from Yuvraj ₹ 15,000.
4. Purchased Machinery ₹ 10,000.
5. Paid Electricity bill ₹ 3,500.
6. Goods destroyed by fire ₹ 1,500.
Solution:
Table showing equation for the transactions.

Question 5.
Show accounting equation for the following transactions:
1. Rohit started the business with cash of ₹ 50,000.
2. Bought goods on credit from Manoj ₹ 6,000.
3. Cash purchases ₹ 5,000.
4. Paid wages ₹ 3,000 to Casual labour.
5. Sold goods to Santosh ₹ 7,000 on credit.
6. Received Commission ₹ 1,000 from Vaishali.
Solution:

Class 11 Commerce Book Keeping & Accountancy Textbook Solutions

• Introduction to Book Keeping and Accountancy Class 11 Commerce BK
• Meaning and Fundamentals of Double Entry Book-Keeping Class 11 Commerce BK
• Journal Class 11 Commerce BK
• Ledger Class 11 Commerce BK
• Subsidiary Books Class 11 Commerce BK
• Bank Reconciliation Statement Class 11 Commerce BK
• Depreciation Class 11 Commerce BK
• Rectification of Errors Class 11 Commerce BK
• Final Accounts of a Proprietary Concern Class 11 Commerce BK
• Single Entry System Class 11 Commerce BK

Introduction to Book Keeping and Accountancy 11th BK Commerce Chapter 1 Solutions Maharashtra Board

Balbharti Maharashtra State Board Bookkeeping and Accountancy 11th Solutions Chapter 1 Introduction to Book Keeping and Accountancy Textbook Exercise Questions and Answers.

Class 11 Commerce BK Chapter 1 Exercise Solutions

1. Answer in One Sentence:

Question 1.
What is Book-keeping?
Answer:
Recording the business transactions in the books of accounts systematically by considering some definite principles is called book-keeping.

Question 2.
What is meant by Goods?
Answer:
Any commodity, article, or merchandise in which trader regularly deals or carries on trade is called goods e.g. cloth is the goods for cloth merchant.

Question 3.
What is Capital?
Answer:
Amount invested by the proprietor into the business from time to time is called Capital.

Question 4.
What are Drawings?
Answer:
The total amount of goods and services are withdrawn by the proprietor from time to time for self-use is called drawings.

Question 5.
What is Goodwill?
Answer:
The money value of business reputation earned by the business over the number of years is called Goodwill.

2. Give the word term or phrase which can substitute each of the following statements:

Question 1.
Recording of business transactions.
Answer:
Book-keeping

Question 2.
Amount invested in the business by the proprietor.
Answer:
Capital

Question 3.
A person to whom the amount is payable.
Answer:
Creditor

Question 4.
The exchange between two persons.
Answer:
Transaction

Question 5.
Excess of expenses over income.
Answer:
Loss

Question 6.
A person whose assets are sufficient enough to meet business obligations.
Answer:
Solvent

Question 7.
Book-keeping is providing all required financial information to the businessman.
Answer:
Decision Making

Question 8.
Property of any description owned by Proprietor.
Answer:
Assets

Question 9.
Assets that remain in the business for only for short time and can be converted into cash very easily.
Answer:
Current Assets

Question 10.
Allowance is given on catalogue price of goods.
Answer:
Trade Discount

3. Select the most appropriate alternatives from those given below and rewrite the statements.

Question 1.
Surplus of income over expenses is _____________
(a) Profit
(b) Deficit
(c) Loss
(d) Financial Statements
Answer:
(a) Profit

Question 2.
In _____________ basis of accounting, actual cash receipts and actual cash payments are recorded.
(a) Accrual
(b) Hybrid
(c) Cash
(d) Mercantile
Answer:
(c) Cash

Question 3.
Amount which is not recoverable from customer is known as _____________
(a) Bad Debts
(b) Debts
(c) Debtors
(d) Doubtful debts
Answer:
(a) Bad Debts

Question 4.
Accounts must be honestly prepared and they must disclose all material information is known as _____________
(a) Entity Concepts
(b) Dual Aspect Concept
(c) Disclosure Concept
(d) Cost Concept
Answer:
(c) Disclosure Concept

Question 5.
A commodity in which a trader deals is known as _____________
(a) Goods
(b) Income
(c) Property
(d) Expenditure
Answer:
(a) Goods

Question 6.
_____________ means a reputation of a business valued in terms of money.
(a) Trademark
(b) Assets
(c) Patents
(d) Goodwill
Answer:
(d) Goodwill

Question 7.
According to _____________ Cash flow statement is prepared and presented for the period for which the profit and loss account is prepared.
(a) AS-3
(b) AS-10
(c) AS-6
(d) AS-2
Answer:
(a) AS-3

Question 8.
The immediate recognition of loss is supported by principle of _____________
(a) Conservatism
(b) Objective
(c) Matching
(d) Consistency
Answer:
(a) Conservatism

Question 9.
Brief explanation of an entry is called as _____________
(a) Folio
(b) Narration
(c) Posting
(d) Journalising
Answer:
(b) Narration

Question 10.
An act of exchange of things or services between the two parties is termed as _____________
(a) Ledger
(b) Transfer
(c) Transaction
(d) Business
Answer:
(c) Transaction

4. State whether the following statements are true or false with reasons:

Question 1.
Book-keeping and accounting are one and the same thing.
Answer:
This statement is False.
Book-Keeping means recording business transactions in a separate set of books and accountancy is the process of summarising and analyzing the business transactions which are recorded in the books of accounts, so book-keeping and accounting are not one and the same thing.

Question 2.
Conservatism means to follow the safe side.
Answer:
This statement is True.
This accounting concept suggests that while preparing accounting statements, planning, policies, strategies, and budgets, all possible or anticipated losses must be taken into consideration. While unrealized prospective or anticipated profits should be ignored. This is known as “The policy of playing a safe game” or “Principal of Prudence”.

Question 3.
The double entry system is based on the “Dual Aspect” concept.
Answer:
This statement is True.
This accounting concept explains that every business transaction has two aspects viz. (i) acquisition or increase in the asset of the business and (ii) creation or increase in claims against the business. Assets refer to the valuable things owned by the business. Capital refers to the proprietor’s contribution to the business to provide funds to undertake activities. Capital refers to the proprietor’s contribution to the business to provide funds to undertake activities. Capital is the owner’s claim against the business, e.g. a capital of ₹ 5,00,000 received in cash by the business from the proprietor has dual aspects viz. business has cash i.e. asset of ₹ 5,00,000 and the proprietor has a claim of ₹ 5,00,000 against the business entity called capital.

Question 4.
Bank overdraft is an asset of the business.
Answer:
This statement is False.
Bank overdraft is a liability of the business. Businesses owe to the bank for the excess amount withdrawn from the bank account. It is a temporary loan from a bank.

Question 5.
A solvent person is a person whose assets are more than his liabilities.
Answer:
This statement is True.
A person who is unable to pay his debts is called insolvent. An insolvent person does not have sufficient assets to pay his debts. His business debts are much larger than his business and personal assets. He cannot settle the dues of his creditors fully. Insolvency leads to the compulsory dissolution of the business.

Question 6.
Cash discount does not appear in the books of accounts.
Answer:
This statement is False.
It is the amount deducted from the final amount due at the time of receipt. It is the concession given for encouraging prompt payment. It is given either for the spot payment or for payment within a specific period. A cash discount is calculated after deducting a trade discount, since it is a loss to the seller and gain to the buyer, a cash discount appears in the books of accounts.

Question 7.
A transaction is concerned with money or money’s worth.
Answer:
This statement is True.
In common parlance, a transaction is a dealing between two or more persons, in which one person gives something to the other and in exchange for that receives something from the other. It is an exchange of goods and services either for cash or for any other goods or services. In other words, it is a business activity that interprets in money terms what business gives and what business receives in that exchange. To complete the transaction at least two persons are required. Purchase of goods, sale of goods, receipt, and payment of cash, borrowing, and lending, depositing cash into the bank, withdrawal of cash from the bank, etc. are examples of business transactions.

Question 8.
Accounting is the language of business.
Answer:
This statement is True.
Book-keeping is a part of Accounting. It is the primary stage in accounting. It is the process of recording transactions in accounts. Accounting is part of Accountancy. Accountancy is the practice of recording, classifying and reporting business transactions for a business. Accounting principles are the basic norms and assumptions developed and established as the basis for an accounting system. These principles are adopted by accountants universally. So accounting is the language of business.

Question 9.
In the early times of civilization, accounting was done by owners.
Answer:
This statement is False.
Booking is a part of Accounting that follows certain rules for recording transactions. It has classification, concepts, conventions, and principles which requires certain knowledge and qualifications. So it is done by an accountant.

Question 10.
Book-keeping is useful to find out all tax liabilities.
Answer:
This statement is True.
As all business transactions are recorded in the books of accounts so there is no question of hiding any income or expenses, with the help of book-keeping businessmen know their liabilities towards the government for tax payments like GST., Income tax, etc.

5. Do you agree or disagree with the following statements:

Question 1.
Accounting is useful only to the owner.
Answer:
Disagree

Question 2.
Book-keeping is an art, science, and profession.
Answer:
Agree

Question 3.
Bills Payable is an asset of the business.
Answer:
Disagree

Question 4.
In Book-keeping and Accountancy, only non-monetary transactions are recorded.
Answer:
Disagree

Question 5.
Totalling of Journal or Ledger is called casting.
Answer:
Agree

6. Complete the following sentences:

Question 1.
Revenue arising as a result of business transactions is known as _____________
Answer:
Income

Question 2.
Excess of gross profit over operating expenses is _____________
Answer:
Operating profit

Question 3.
An expenditure which is basically revenue in nature but the benefit of which is not exhausted within one year is called as _____________
Answer:
Deferred revenue expenditure

Question 4.
The amount deducted by the seller from the list price of goods at the time of sale is _____________
Answer:
Trade Discount

Question 5.
A person to whom the business owes money for the goods or services is known as _____________
Answer:
Creditor

Student Activity: (Textbook Page No. 9)

Collect some Advertisements relating to discounts and stick them in the notebook.
Answer:
Go through daily new paper read advertisements regarding sales like flip cart, Amazon, Big Bazar, etc.

Class 11 Commerce Book Keeping & Accountancy Textbook Solutions

• Introduction to Book Keeping and Accountancy Class 11 Commerce BK
• Meaning and Fundamentals of Double Entry Book-Keeping Class 11 Commerce BK
• Journal Class 11 Commerce BK
• Ledger Class 11 Commerce BK
• Subsidiary Books Class 11 Commerce BK
• Bank Reconciliation Statement Class 11 Commerce BK
• Depreciation Class 11 Commerce BK
• Rectification of Errors Class 11 Commerce BK
• Final Accounts of a Proprietary Concern Class 11 Commerce BK
• Single Entry System Class 11 Commerce BK

11th Marathi Bhag 5.5 Exercise Question Answer Maharashtra Board

Balbharti Maharashtra State Board Marathi Yuvakbharati 11th Digest Bhag 5.5 व्याकरण शब्दभेद Notes, Textbook Exercise Important Questions and Answers.

व्याकरण शब्दभेद 11 वी मराठी स्वाध्याय प्रश्नांची उत्तरे

11th Marathi Digest Chapter 5.5 व्याकरण शब्दभेद Textbook Questions and Answers

कृती

प्रश्न 1.
शब्दांतील उच्चार साधर्म्यावरून कृती करा.

उत्तर :

प्रश्न 2.
शब्दलेखनातील सूक्ष्म बदल.

उत्तर :

प्रश्न 3.
संदर्भानुसार शब्दप्रयोजन.

उत्तर :

प्रश्न 4.
अक्षर फरकाने अर्थबदल.

उत्तर :

11th Marathi Book Answers Chapter 5.5 व्याकरण शब्दभेद Additional Important Questions and Answers

प्रश्न 1.
शब्दांतील उच्चार साधर्म्यानुसार कृती करा.
उत्तर :

प्रश्न 2.
शब्दलेखनातील सूक्ष्म बदलानुसार कृती करा.
उत्तर :

प्रश्न 3.
संदर्भानुसार शब्दप्रयोजन कृती करा.
उत्तर :

प्रश्न 4.
अक्षरफरकाने होणारा अर्थबदल कृती करा.
उत्तर :

शब्दभेद प्रास्ताविक:

दैनदिन जीवनात आपण भाषेतील अनेकविध शब्दांचा वापर अगदी सहजतेने करत असतो. चांगले बोलणे व चांगले लिहिणे यांसाठी शब्दज्ञानाची आवश्यकता असते. शब्दज्ञान, त्या शब्दाचा विशिष्ट अर्थ, सूक्ष्म अर्थच्छटा, शब्दांचे योग्य लेखन, शब्दांच्या अचूक संदर्भाचे ज्ञान आवश्यक आहे. प्रभावी अभिव्यक्तीसाठी शब्दज्ञानाची आवश्यकता आहे.

शब्दांच्या योग्य ज्ञानाअभावी आपले बोलणे व लिहिणे प्रभावशाली होत नाही. म्हणूनच शब्दभेद समजून घेणे आवश्यक आहे. चांगले बोलणे हे चांगले ऐकण्यातून आकारास येते. चांगले ऐकणे म्हणजे श्रवण, समजून बोलणे म्हणजे भाषण, आकलन करून ग्रहण करणे म्हणजे वाचन आणि या तिहींचा समन्वय म्हणजे लेखन.

शब्दभेदाचे आकलन जर नीट झाले नाही, तर अर्थभेद, अर्थहानी आणि अर्थविसंगती होते. म्हणूनच शब्दभेद समजून घेणे आवश्यक आहे.

1. शब्दांचे उच्चार साधर्म्य

शब्दाच्या उच्चारातून व लेखनातून जेव्हा सूक्ष्म बदल जाणवतात व अर्थाच्या दृष्टीने खूप फरक निदर्शनास येतात तेव्हा तिथे शब्दभेद असतो.

भाषेतील दोन शब्दांच्या उच्चारात काहीसे साधर्म्य (सारखेपणा) असते. परंतु संदर्भ साधर्म्य अजिबात नसते. दोन शब्दांचा उच्चार वरवर जरी सारखा वाटत असला तरी योग्य संदर्भ पूर्णपणे जाणून न घेतल्यामुळे शब्दांचा योग्य प्रकारे वापर केला जात नाही.

यांसारखे अन्य काही शब्द

• कळ – वेदना, भांडणाचे मूळ
• घाट – डोंगरातील वळणाचा रस्ता, नदीवरील पायऱ्यांचे बांधकाम
• तट – किनारा, किल्ल्याची संरक्षक भिंत.
• दर्प – वास, गर्व
• पात्र – लायक, नाटकातील भूमिका, भांडे
• वार – दिवस, धारदार शस्त्राचा घाव, लांबी मोजण्याचे एकक.
• सुमन – फूल, निर्मळ मन

2. शब्दलेखनातील सूक्ष्म बदल

भाषा विषयात शुद्धलेखनाचे महत्त्व अनन्यसाधारण आहे. शब्दलेखन करताना हस्व – दीर्घ, अनुस्वार, काना, मात्रा यांकडे जाणीवपूर्वक लक्ष दयावे. शब्दलेखनात चूक झाली तर बराचसा चुकीचा अर्थ प्राप्त होतो.

यांसारखे अन्य काही शब्द

• अध्ययन – शिकारी, अध्यापन – शिकविणे
• खत – पिकाला घालायचे खत, खंत – काळजी
• गृह – घर, ग्रह – सूर्यमालेतील ग्रह.
• पिक – कोकिळ पक्षी, पीक – शेतात उत्पन्न आलेले धान्य
• मास – महिना, मांस – प्राण्यांचे मांस वदन – तोंड, वंदन – नमस्कार
• शिव – शंकर, शीव – सीमा
• सन – वर्ष, सण – उत्सव
• सुर – देव, सूर – स्वर
• तण – गवत, तन – शरीर

3. शब्दांच्या संदर्भाची अचूक जाण

बोलताना वा लेखन करताना कोणता शब्द कोठे वापरावा याबद्दल काही संकेत असतात. या संकेतांना विशिष्ट अशा संदर्भाची पार्श्वभूमी असते. संदर्भ आणि संकेत यांत अंतर पडल्यास अर्थातही फरक पडतो. बोलण्या, लिहिण्यातली ही अर्थविसंगती मनाला खटकते.

4. शब्दांच्या लेखनात एखादया अक्षराचा फरक

दोन शब्दांच्या एखादया अक्षराचा जरी फरक असला तरी अर्थात खूप मोठा फरक पडतो. हा फरक समजण्यासाठी शब्दांच्या अर्थाची योग्य जाण असणे आवश्यक आहे.

Marathi Yuvakbharati 11th Digest Text Book Solutions

• शब्दशक्ती Class 11 Marathi Textbook Solutions
• काव्यगुण Class 11 Marathi Textbook Solutions
• वाक्यसंश्लेषण Class 11 Marathi Textbook Solutions
• काळ Class 11 Marathi Textbook Solutions
• शब्दभेद Class 11 Marathi Textbook Solutions