Commerce Accountancy · Economics
Journal entries and depreciation are core accountancy topics involving the systematic recording of financial transactions and the calculation of asset value reduction over time. Students must solve problems related to bad debts, provision calculations, and error rectification. These questions are essential for candidates appearing in commerce and accounting competitive exams.
Mr. X accepted a bill of exchange of $Rs. 1500$ drawn by Y and payable in $3$ months. He got it discounted from bank at $2$% discount. On the due date X failed to pay the bill as he was adjudged insolvent. A final dividend of $0.25$ in a rupee was received from his estate. Find the amount recovered from the estate of X.
Discount charges of Rs.1,000 on discounting a Bill Receivable accepted by consignee are debited to:
X sold goods worth Rs 1,50,000 to Y. Y immediately accepted a bill on 1st Nov payable after 2 months. X discounted this bill @ 18% p.a. on 15th Nov. On the due date , Y failed to discharge the bill. Later on Y became insolvent and 50 paise in a rupee is recovered from Y's estate. How much amount of bad debt will be recorded in the books of X?
On 1st Jan X draws a bill of exchange for 1,50,000 due for payment after 3 months on Y who accepts this bill of exchange. On 4th March Y retires the bill of exchange at a discount of 12% p.a. Which of the discount is correct for premature payment in the books of Y.
X draws an accommodation bill on Y. The proceeds are to be borne by Y and X in the ratio of 3:1. The amount of bill was Rs 60,000, discounting charges are Rs 1,200. Discount borne by Y will be:
X drew a bill on Y for 45,000 for mutual accommodation in the ratio 2:1. Y accepted the bill and returned to X. X discounted the bill for 42,300 and remitted 1/3rd proceeds to Y. Before the due date, not having funds to meet the bill, Y drew a bill on X for 63,000 on the same terms as to mutual accommodation. The second bill was discounted for 61,200. The first bill was honored in the due date and a net amount of 10,800 was remitted to X by Y. The proportionate discount charge on both the bills is to be borne by X is:
On 1st Jan, 2017 X sold goods to Y for Rs 10,000 on credit basis. On the same date X drew a bill for Rs 10,000 on Y at two months. Y accepted the bill and returned it to X. On the due date Y could not honor acceptance. What is the journal for recording the dishonor of a bill?
A draws a bill on B for Rs. 60,000. A endorsed it to C in full settlement of Rs. 60,500. On due date, the bill was dishonored. Noting charge of Rs. 500 was paid. A wanted to pay the amount to C at 2% discount. The amount to be paid by A to C will be ___________.
X draws a bill on Y for Rs. 50,000 for 3 months on 1.1.05. The bill is discounted with banker at a discount of Rs. 1000. At maturity the bill returns dishonored. In the books of X, for dishonor, the bank account will be credited by __________.
The original cost of the asset is Rs. 6,00,000 and depreciation is charged @ 10% p.a. at written down value, then the amount of depreciation in 3rd year will be :
The original cost of the asset is Rs. 2,50,000. The useful life of the asset is 10 years and net residual value is estimated to be Rs. 50,000. Now, the amount of depreciation to be charged every year will be _________.
Give journal entry for:
Depreciation transferred to profit and loss account of $Rs.7500$.
On $1-1-2014$, a company acquired a car for Rs. $350,000$ on instalment basis and paid Rs. $1,50,000$ as down payment whose cash price was Rs. $3,00,000$. During $2014$, one instalment of Rs. $50,000$ (including Rs. $15,000$ interest) was paid. The amount of depreciation for the year $2016$ at $10\%$ on SLM is ___________.
On August 01, 2002, a travel company bought four vans costing Rs. $2,40,000$. The company expected to fetch a scrap value of $25$% of the cost price of the vehicles after ten years. The vehicles were depreciated under the fixed installment method up to March 31, 2005. With effect from April 01, 2005, the company decided to introduce the diminishing balance method of depreciation @$30$% p.a instead of the fixed installment method. The company sold one of the vans at Rs. $1,40,000$ on March 31, 2005. The rate of depreciation charged up to March 31, 2005, was
The cost of a machinery having a life span of $5$ years is $Rs. 1,00,000$. It has a scrap value of $Rs. 10,000$. The amount of depreciation under the sum of digits method in the first year will be: