Accountancy Financial Accounting Part I 1st Edition NCERT - Solutions

Unlock the full potential of your accounting studies with our comprehensive resources for "Accountancy Financial Accounting Part I 1st Edition NCERT." Access a wealth of online solutions, including an answer key and solutions PDF, designed to enhance your learning experience. Dive into solved problems and explore detailed questions and answers crafted for your success. Our solution manual offers chapter solutions and step-by-step answers, ensuring clarity and understanding. Benefit from our instructor manual, test bank, and textbook resources, all available for free download. Elevate your mastery in financial accounting with these indispensable tools.

On Nov. 01, 2005 Sonia drawn a bill on sunny for Rs. 15,000 for 3 months for mutual accommodation. Sunny accepts the bill and return it to sonia. Sonia discounted the same with his bankers @ 6% p.a. The proceeds are shared between sonia and sunny in proportion of 2/3rd, 1/3rd respectively. On the
On Jan. 01, 2006, bhanu and Naman drew on each other a bill for Rs.8,000 payable 3 months after the due date for their Mutual benefit. On January 02 they discounted with their bank each other’s bill at 5% p.a.on the due date each met his Own’s acceptance. Give journal entry in the books of
Ritesh and Naina were in need of funds temporarily. On August 01 2005 Ritesh drew upon Naina a bill for Rs. 12,000 for 4 months. Naina Accepted the bill and returned to Ritesh. Ritesh discounted the Bill @8% p.a. Half amount of the discounted bill remitted to Naina. On due date, Ritesh sent the
On Jan. 01, 2006 Harsh accepted a months bill for Rs. 10,000 drawn on him by tanu for latter’s benefit. Tanu discounted the bill on same day @ 8% p.a On the due date tanu sent a cheque to Harsh for honour the bill. Harsh duly honoured his acceptance.Record the journal entries in the Books of Tanu
On Jan 01, 2006 Vibha sold goods worth Rs.18,000 to Sudha and drew upon the latter a bill of exchange for the same amount payable after two months. Sudha accepted Vibha’s draft and returned the same to Vibha after acceptance. Vibha endorsed the bill immediately in favour of her creditor Geeta.
Nikhil sold goods for Rs.23,000 to Akhil on Dec. 01, 2005. He drew upon Akhil a bill of exchange for the same amount payable after 2 months. Akhil accepted the bill and sent it back to Nikhil. Nikhil discounted the bill immediately with his bank @12 p.a. On the due date Akhil dishonoured the bill
On Feb. 14, 2006 Rashmi sold good Rs.7,500 to Alka. Alka paid Rs.500 in cash and for the bank balance accepted a bill of exchange drawn upon her by Rashmi payable after two months. On Apr.10, 2006 Alka approached Rashmi to cancel the bill since she was short of funds. She further requested Rashmi
Kapil purchased goods for Rs.21,000 from Gaurav on 1.2.2006 and accepted a bill of exchange drawn by Gaurav for the same amount. The bill was payable after one month. On 25.2.2002 Gaurav sent the bill to his bank for collection. The bill was duly presented by the bank. Kapil dishonoured the bill
Lilly sold goods to Methew on 1.3.2006 for Rs.12,000 and drew upon Methew a bill of exchange for the same amount payable after two months.Lilly immediately discounted the bill with her bank at 9% p.a. The maturity date of the bill was a non business day (holiday), therefore, Lilly had to present
On Feb. 02, 2006, Verma purchased from Sharma goods for Rs.17,500.Verma paid Rs.2,500 immediately and for the balance gave a promissory note to Sharma payable after 60 days. Sharma immediately endorsed the promissory note in favour of his creditor.Gupta for the full settlement of a debt of
Asha sold goods worth Rs.19,000 to Nisha on March 02, 2006. Rs.4,000 were paid by Nisha immediately and for the balance she accepted a bill of exchange drawn upon her by Asha payable after three months. Asha discounted the bill immediately with her bank. On the due date Nisha dishonoured the bill
Abdula sold goods to Tahir on Jan 17, 2006 for Rs.18,000. He drew a bill of exchange for the same amount on Tahir for 45 days. On the same date Tahir accepted the bill and returned it to Abdulla. On the due date Abdulla presented the bill to Tahir which was dishonoured. Abdulla paid Rs.40 as noting
Viaml purchased goods Rs.25,000 from Kamal on Jan 15, 2006 and accepted a bill of exchange drawn upon him by Kamal payable after two months. On the date of the maturity the bill was duly presented for payment. Vimal dishonoured the bill.record the necessary journal entries in the books of Kamal and
On Jan 15, 2006 Raghu sold goods worth Rs. 35,000 to Devendra and drew upto the latter three bills of exchanges. The first bill was for Rs.5,000 payable after one month, the second bill was for Rs.20,000 payable after three months and third bill for balance amount for 4 months. Raghu endorsed the
On Jan 01, 2006 Neha sold goods for Rs.20,000 to Muskan and drew upon her a bill of exchange payable after two months. One month before the maturity of the bill Muskan approached Neha to accept the payment against the bill at a rebate @ 12% p.a. Neha agreed to the request of Muskan and Muskan
Ravi sold goods for Rs.40,000 to Sudershan on Feb 13, 2006. He drew four bills of exchange upon Sudershan. The first bill was for Rs.5,000 payable after one month. The second bill was for Rs.10,000 payable after 40 days; the third bill was for Rs.12,000 payable after three months and fourth bill
Narayanan purchased goods for Rs.25,000 from Ravinderan on Feb.01, 2006. Ravinderan drew upon Narayanan a bill of exchange for the same amount payable after 30 days. On the due date Narayanan dishonoured his acceptance.Pass the necessary journal entries in the books of Ravinderan and Narayanan in
Bansal Traders allow a trade discount of 10% on the list price of the goods purchased from them. Mohan traders, who runs a retail shop made the following purchases from Bansal Traders.Date Amount(Rs.)Dec. 21, 2005 1,000 Dec. 26, 2005 1,200 Dec. 18, 2005 2,000 Dec. 31, 2005 5,000 For all the
Darshan sold goods for Rs. 40,000 to Varun on 8.1.2006 and drew upon him a bill of exchange payable after two months. Varun accepted the bill and returned the same to Darshan. On the due date the bill was met by Varun. Record the necessary Journal entries in the books of Darshan and Varun in the
On Jan. 01, 2006 Arun sold goods for Rs.30,000 to Sunil. 50% of the payment was made immediately by Sunil on which Arun allowed a cash discount of 2%. For the balance Sunil drew a promissory note in favour of Arun payable after 20 days. Since, the date of maturity of bill was a public holiday, Arun
On Jan 15, 2006, Kartar Sold goods for Rs.30,000 to Bhagwan and drew upon him three bills of exchanges of Rs.10,000 each payable after one month, two month, and three months respectively. The first bill was retained by Kartar till its maturity. The second bill was endorsed by him in favour of his
On Feb 01, 2006, John purchased goods for Rs.15,000 from Jimmi. He immediately made a payment of Rs.5,000 by cheque and for the balance accepted the bill of exchange drawn upon him by Jimmi. The bill of exchange was payable after 40 days. Five days before the maturity of the bill, Jimmi sent the
Vishal sold goods for Rs.7,000 to Manju on Jan 05, 2006 and drew upon her a bill of exchange payable after 2 months. Manju accepted Vishal’s draft and handed over the same to Vishal after acceptance.Vishal immediately discounted the bill with his bank@12% p.a. On the due date Manju met her
On Jan 01,2006, Shankar purchased goods from Parvati for Rs.8,000 and immediately drew a promissory note in favour of Parvati payable after 3 months. On the date of maturity of the promissory note, the Government of India declared holiday under the Negotiable Instrument Act 1881. Since, Parvati was
On Jan 01, 2006 Rao sold goods Rs.10,000 to Reddy. Half of the payment was made immediately and for the remaining half Rao drew a bill of exchange upon Reddy payable after 30 days. Reddy accepted the bill and returned it to Rao. On the due date Rao presented the bill to Reddy and received the
Briefly explain the benefits of maintaining a Bills Payable Book and state how is its posting is done in the ledger?
Explain briefly the purpose and advantages of maintaining of a Bills Receivable Book.
Briefly explain the purpose and benefits of retiring a bill of exchange to the debtor and the creditor.
Distinguish between bill of exchange and promissory note.
Explain briefly the procedure of calculating the date of maturity of a bill of exchange? Give example.
Briefly explain the effects of dishonour and noting of a bill of exchange.
A bill of exchange must contain “an unconditional promise to pay” Do you agree with a statement?
Give the performa of a Bill of Exchange.
Give the meaning of rebate.
What is meant by insolvency?
What is retirement of a bill of exchange?
Give the performa of a Bills Payable Book.
Give the performa of a Bills Receivable Book.
What is meant by renewal of a bill of exchange?
What is Noting of a bill of exchange.
What is meant by acceptance of a bill of exchange?
Name the parties to a promissory note
What is meant by dishonour of a bill of exchange?
What is meant by maturity of a bill of exchange?
State the three parties involved in a bill of exchange.
State any four essential features of bill of exchange.
Write two points of distinction between bills of exchange and promissory note.
Name any two types of commonly used negotiable instruments.
The following information are extract from the Trial Balance of M/s Nisha traders on 31 December 2005.Sundry Debtors 80,500 Bad debts 1,000 Provision for bad debts 5,000 Additional Information Bad Debts Rs. 500 Provision is to be maintained at 2% of Debtors.Prepare bad debts accound, Provision for
An extract of Trial balance from the books of Tahiliani and Sons Enterprises on December 31 2005 is given below:Name of the Account Debit Amount Credit Amount Rs. Rs.Sundry debtors. 50,000 Bad debts 6,000 Provision for doubtful debts 4,000 Additional Information:• Bad Debts proved bad but not
A Plant was purchased on 1st July, 2000 at a cost of Rs. 3,00,000 and Rs. 50,000 were spent on its installation. The depreciation is written off at 15% p.a. on the straight line method. The plant was sold for Rs. 1,50,000 on October 01, 2002 and on the same date a new Plant was installed at the
On January 01, 2000, a Limited Company purchased machinery for Rs. 20,00,000. Depreciation is provided @15% p.a. on diminishing balance method. On March 01, 2002, one fourth of machinery was damaged by fire and Rs. 40,000 were received from the insurance company in full settlement.On September 01,
Shri Krishan Manufacturing Company purchased 10 machines for Rs. 75,000 each on July 01, 2000. On October 01, 2002, one of the machines got destroyed by fire and an insurance claim of Rs. 45,000 was admitted by the company. On the same date another machine is purchased by the company for Rs.
A Noida based Construction Company owns 5 cranes and the value of this asset in its books on April 01, 2001 is Rs. 40,00,000. On October 01, 2001 it sold one of its cranes whose value was Rs. 5,00,000 on April 01, 2001 at a 10% profit. On the same day it purchased 2 cranes for Rs. 4,50,000
Give the truck account from 2001 to 2004.Loss on IInd Truck Rs. 5,53,000.Balance of Truck account as on 31.03.04 Rs. 11,80,000).
On October 01, 2001 Juneja Transport Company purchased 2 Trucks for Rs. 10,00,000 each. On July 01, 2003, One Truck was involved in an accident and was completely destroyed and Rs. 6,00,000 were received from the insurance company in full settlement. On December 31, 2003 another truck was involved
On January 01, 2001, Satkar Transport Ltd, purchased 3 buses for Rs. 10,00,000 each. On July 01, 2003, one bus was involved in an accident and was completely destroyed and Rs. 7,00,000 were received from the Insurance Company in full settlement. Depreciation is writen off @15% p.a.on diminishing
Kapil Ltd. purchased a machinery on July 01, 2001 for Rs. 3,50,000. It purchased two additional machines, on April 01, 2002 costing Rs. 1,50,000 and on October 01, 2002 costing Rs. 1,00,000. Depreciation is provided@10% p.a. on straight line basis. On January 01, 2003, first machinery become
On October 01, 2000, a Truck was purchased for Rs. 8,00,000 by Laxmi Transport Ltd. Depreciation was provided at 15% p.a. on the diminishing balance basis on this truck. On December 31, 2003 this Truck was sold for Rs. 5,00,000. Accounts are closed on 31st March every year. Prepare a Truck Account
On July 01, 2001 Ashwani purchased a machine for Rs. 2,00,000 on credit.Installation expenses Rs. 25,000 are paid by cheque. The estimated life is 5 years and its scrap value after 5 years will be Rs. 20,000. Depreciation is to be charged on straight line basis. Show the journal entry for the year
Saraswati Ltd. purchased a machinery costing Rs. 10,00,000 on January 01, 2001. A new machinery was purchased on 01 May, 2002 for Rs. 15,00,000 and another on July 01, 2004 for Rs. 12,00,000. A part of the machinery which originally cost Rs. 2,00,000 in 2001 was sold for Rs. 75,000 on October 31,
Carriage Transport Company purchased 5 trucks at the cost of Rs. 2,00,000 each on April 01, 2001. The company writes off depreciation @ 20% p.a. on original cost and closes its books on December 31, every year. On October 01, 2003, one of the trucks is involved in an accident and is completely
M/s. Excel Computers has a debit balance of Rs. 50,000 (original cost Rs. 1,20,000) in computers account on April 01, 2000. On July 01, 2000 it purchased another computer costing Rs. 2,50,000. One more computer was purchased on January 01, 2001 for Rs. 30,000. On April 01, 2004 the computer which
The following balances appear in the books of Crystal Ltd, on Jan 01, 2005 Rs.Machinery account on 15,00,000 Provision for depreciation account 5,50,000 On April 01, 2005 a machinery which was purchased on January 01, 2002 for Rs. 2,00,000 was sold for Rs. 75,000. A new machine was purchased on
M/s Lokesh Fabrics purchased a Textile Machine on April 01, 2001 for Rs. 1,00,000. On July 01, 2002 another machine costing Rs. 2,50,000 was purchased . The machine purchased on April 01, 2001 was sold for Rs.25,000 on October 01, 2005. The company charges depreciation @15% p.a.on straight line
Prepare furniture account, and accumulated depreciation account for the years ended on March 31,2003, March 31,2004 and March 31,2005. Also give the above two accounts if furniture disposal account is opened.(Ans.Loss on sale of furniture Rs.1,14,915, Balance of provision for depreciation account
Azad Ltd. purchased furniture on October 01, 2002 for Rs. 4,50,000. On March 01, 2003 it purchased another furniture for Rs. 3,00,000. On July 01, 2004 it sold off the first furniture purchased in 2002 for Rs. 2,25,000.Depreciation is provided at 15% p.a. on written down value method each year.
Prepare:(a) Machinery account and depreciation account for the years 2001, 2002, 2003 and 2004.(b) If depreciation is accumulated in provision for Depreciation account then prepare machine account and provision for depreciation account for the years 2001, 2002, 2003 and 2004.[b] Balance of
Ganga Ltd. purchased a machinery on January 01, 2001 for Rs. 5,50,000 and spent Rs. 50,000 on its installation. On September 01, 2001 it purchased another machine for Rs. 3,70,000. On May 01, 2002 it purchased another machine for Rs. 8,40,000 (including installation expenses).Depreciation was
Prepare machinery account and depreciation account from the year 2001 to 2004.(b) Prepare machinery account and depreciation account from the year 2001 to 2004, if depreciation is provided on machinery @10% p.a. on written down value method annually on December 31.[b] Balance of Machine account as
Berlia Ltd. Purchased a second hand machine for Rs. 56,000 on July 01, 2001 and spent Rs. 24,000 on its repair and installation and Rs. 5,000 for its carriage. On September 01, 2002, it purchased another machine for Rs. 2,50,000 and spent Rs. 10,000 on its installation.(a) Depreciation is provided
Reliance Ltd. Purchased a second hand machine for Rs. 56,000 on October 01, 2001 and spent Rs. 28,000 on its overhaul and installation before putting it to operation. It is expected that the machine can be sold for Rs. 6,000 at the end of its useful life of 15 years. Moreover an estimated cost of
On July 01, 2000, Ashok Ltd. Purchased a Machine for Rs. 1,08,000 and spent Rs. 12,000 on its installation. At the time of purchase it was estimated that the effective commercial life of the machine will be 12 years and after 12 years its salvage value will be Rs. 12,000.Prepare machine account and
On April 01, 2000, Bajrang Marbles purchased a Machine for Rs. 2,80,000 and spent Rs. 10,000 on its carriage and Rs. 10,000 on its installation. It is estimated that its working life is 10 years and after 10 years its scrap value will be Rs. 20,000.(a) Prepare Machine account and Depreciation
What are ‘provisions’. How are they created? Give accounting treatment in case of provision for doubtful Debts.
Name and explain different types of reserves in details.
Explain determinants of the amount of depreciation.
Describe in detail two methods of recording depreciation. Also give the necessary journal entries.
Discuss in detail the straight line method and written down value method of depreciation. Distinguish between the two and also give situations where they are useful.
Explain the concept of depreciation. What is the need for charging depreciation and what are the causes of depreciation?
Explain the concept of ‘secret reserve’.
Distinguish between ‘general reserve’ and ‘specific reserve’.
Give four examples each of ‘revenue reserve’ and ‘capital reserves’.
Distinguish between ‘revenue reserve’ and ‘capital reserve’.
Give four examples each of ‘provision’ and ‘reserves’.
Distinguish between ‘provision’ and ‘reserve’ .
What are the effects of depreciation on profit and loss account and balance sheet?
“In case of a long term asset, repair and maintenance expenses are expected to rise in later years than in earlier year”. Which method is suitable for charging depreciation if the management does not want to increase burden on profits and loss account on account of depreciation and repair.
Distinguish between straight line method and written down value method of calculating depreciation.
Explain basic factors affecting the amount of depreciation.
What are the causes of depreciation?
State briefly the need for providing depreciation.
What is ‘Depreciation’?
Trial balance of John did not agree. He put the difference to suspense account and discovered the following errors :(a) In the sales book for the month of January total of page 2 was carried forward to page 3 as Rs. 1,000 instead of Rs. 1200 and total of page 6 was carried forward to page 7 as Rs.
Trial balance of Khatau did not agree. He put the difference to suspense account and discovered the following errors :(a) Credit sales to Manas Rs. 16,000 were recorded in the purchases book as Rs. 10,000 and posted to the debit of Manas as Rs. 1,000.(b) Furniture purchased from Noor Rs. 6,000 was
Give journal entries to rectify the following errors assuming that suspense account had been opened.(a) Goods distributed as free sample Rs. 5,000 were not recorded in the books.(b) Goods withdrawn for personal use by the proprietor Rs. 2,000 were not recorded in the books.(c) Bill receivable
Trial balance of Kohli did not agree and showed an excess debit of Rs.16,300. He put the difference to a suspense account and discovered the following errors:(a) Cash received from Rajat Rs. 5,000 was posted to the debit of Kamal as Rs. 6,000.(b) Salaries paid to an employee Rs. 2,000 were debited
Trial balance of Madan did not agree and he put the difference to suspense account. He discovered the following errors:(a) Sales return book overcast by Rs. 800.(b) Purchases return to Sahu Rs. 2,000 were not posted.(c) Goods purchased on credit from Narula Rs. 4,000 though taken into stock, but no
Trial balance of Raju showed an excess debit of Rs. 10,000. He put the difference to suspense account and discovered the following errors :(a) Depreciation written-off the furniture Rs. 6,000 was not posted to Furniture account.(b) Credit sales to Rupam Rs. 10,000 were recorded as Rs. 7,000.(c)
Trial balance of Anuj did not agree. It showed an excess credit of Rs. 6,000.He put the difference to suspense account. He discovered the following errors.(a) Cash received from Ravish Rs. 8,000 posted to his account as Rs. 6,000.(b) Returns inwards book overcast by Rs. 1,000.(c) Total of sales

Showing 1 - 100 of 4740

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Last

Accountancy Financial Accounting Part I 1st Edition NCERT - Solutions

Step by Step Answers