(ii) Purchased goods for cash Rs 20,000 and on credit Rs 30,000. The corresponding entry, the debit, is to creditors. Particulars Amount Particulars Amount Rs Rs Buildings 200000 Creditors 30000 from MRKT 134 at Motilal Nehru NIT 4,680 from Miss Srijana as full settlement. Received a cheque for Rs. Once your DPP has been approved you make one regular payment to a payment distributor, who sends the money to your creditors. So is the case if you are looking for CBSE class 11 Commerce related topic . 17500 4) Purchase of machinery for cash Rs. Make your payment by CROSSED CHEQUE only; As soon as the payment is done, close this credit card account by giving writing instructions saying w.r.t Final Settlement, I have cleared all the dues and want this account to be closed. All the solutions of Recording of Transactions - I - Accountancy Part I explained in detail by experts to help students prepare for their CBSE exams. <>/XObject<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/Annots[ 10 0 R 12 0 R] /MediaBox[ 0 0 612 792] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> [Keep a proof of closing this account, say banker stamps on the second copy of the lettr or send it by registered A.D] Cash or bank is an asset, which increases on the left side (debit) and decreases on the right side (credit). Capital - It refers to the amount invested in the form of cash or asset by the owner in a firm's business or organisation of his choice. (iii) Payment made to creditors in full settlement ₹ 17,500. (ii) Credit Purchase of goods Rs.18,000. Prove that the Accounting Equation is satisfied in all the following transactions of Suresh. c. Rohit had given a loan of Rs.70,000 to the firm which was duly paid. stream Hope that helps. The following example will make the principle clear: Realization of securities amounted to Rs. He urged the CoC to consider the settlement proposal if the bids received for DHFL continue to be as "low" as the previously received bids. <>/Metadata 950 0 R/ViewerPreferences 951 0 R>> (iv) Purchase of Machinery for cash Rs.20,000. June 20 Bought a ‘Table Fan’ for Rs. Discount received should be divi (a) Creditors worth ₹ 85,000 accepted ₹ 40,000 as cash and Investment worth ₹ 43,000, in full settlement of their claim. The entire NCERT textbook questions have been solved by best teachers for you. Find out the value of the total assets of the business. They decided to dissolve the firm on December 31, 2006. If you are a creditor and you are offered part payment only of money owed by a debtor, you should take caution in accepting particularly if the sum is offered “in full and final settlement”. r���q�p�sV��`�q�V��6��K �Zx���N��Kֳѻ^_E3�dO�$J'�d=]�Ǟ��^_F㞋����pK�h��B[Gg���y��g�q2�0��.��)�4��ӟ��s�\��dr��{"`8l��~�ڄ½�VY�K�t��\@p�}S�[�� Q�cy����MK�ӅȈi��51�hҿ��*����>�b�Tg���Š8�]��ݺ-������Ө �E�6i�!~�. Preferential Creditors amounted to Rs 35 (included in Sundry Creditors) and Rs 15 for Rates on the house. All the solutions of Accounting Equation - Accountancy explained in detail by experts to help students prepare for their CBSE exams. 5,000 for cash less 20% trade discount and 5% cash discount.January 4 Received Rs. You can specify conditions of storing and accessing cookies in your browser, Payment made to Creditors in full Settlement Rs. Despite this fact, Harkham nevertheless discounted the final payment it made to Jade by $17,500, asserting that because it had made all of its required payments it was entitled to the discount. In (iv) Gopinath who is the proprietor of the business takes out Rs.5, 000 from Business. He had also goods amounting to ₹ 15,000 which he had purchased on credit and the payment had not been made. Since it is decreasing we will credit this asset. (ii) Credit purchase of goods Rs 18,000. a)Started business with cash Rs 70,000 b)Purchased goods on credit Rs 18,000 c)Purchased machinery Rs 20,000 d)Payment made to creditors in full settlement Rs 17,500. e)Depreciation on machinery Rs 2,000 please explain this sum. (c) Creditors were ₹ 90,000. cash account will be credit and the creditor account will be debit. 28,750. %PDF-1.7 (ii) Credit Purchase of goods Rs 18,000 (iii) Payment made to creditors in full settlement Rs 17,500 (iv) Purchase of machinery for cash Rs 20,000 (v) Depreciation on machinery Rs 2,000. What are the disclosure requirement in the annual accounts? If the question is silent, we assume that sales and purchases are made in cash mode. Recording of Transactions – I (ii) Credit Purchase of goods Rs 18,000 (iii) Payment made to creditors in full settlement Rs 17,500 (iv) Purchase of machinery for cash Rs 20,000 (v) Depreciation on machinery Rs 2,000. !UA�+�D�LⶽbX��a�r�����1m{��M�f ��4x�a�@ж2�� The lender would rather receive something than let you dissolve the debt in bankruptcy or deal with the hassle of a court case. Prove that the Accounting Equation is satisfied in all the following transactions of Suresh. (iv) Purchase of Machinery for cash Rs.20,000. Accountancy Solutions for Class 11-commerce Accountancy Part I CBSE, 3 Recording of Transactions - I. Here the gap of Rs. 17,500; Capital Rs. 20,000.15. 5,000.Following were further transactions in the month of January 2008:January 1 Purchased goods worth Rs. Prepare a Statement of Affairs and Deficiency Account. 2,000 and Madhu Rs. (4) 8. (i) Started business with cash Rs 70,000. It was decided that A and B would take over the following assets at the following sums: A and B decided to … June 25 Sold goods for cash of the list price of Rs, 8,000 at 10% trade discount and 3% Trade Discount 25% and Cash Discount 5% if full payment is made within 14 days. A account listed as \"paid in full\" means you paid off the entire amount due on a loan. Solution of Question No 9 Chapter No 5: – (iv) Purchase of machinery for cash Rs 20,000. Debt collectors are more likely to negotiate a settlement , often at much lower amounts, if they think there’s a chance that they may not be able to collect at all. LEARNING APP; ANSWR; CODR; XPLOR; SCHOOL OS; answr. paying off creditors). Question 24. Answer T. S. Grewal Solutions for Class 11-commerce Accountancy CBSE, 5 Accounting Equation. �j_Ƃո��XH\с�K��?���n�� �QPz�~��IM�� Total cash lodged at the bank Rs. (b) Creditors were ₹ 16,000. 2, 50,000 and Rs. Solution of Question No 9 Chapter No 5: – (v) Depreciation on machinery Rs 2,000. (i) Started business with cash Rs 70,000. Answer 2: In other words, if realizations of securities are more, full payment may easily be made. Date         Account Title and Explanation       Debit   Credit, Creditor                              A/c  Dr.     17,500, To Cash / Bank                 A/c                         17,500, (Being amount 17,500 paid for full settlement). d. FYI creditors are also known as accounts payable or simply payables. Creditors worth Rs.10,000 were given a piece of furniture costing Rs.8,000 in full and final settlement. (i) Started business with cash Rs.70,000. As this is a payment the entry would be recorded in the cash payments journal (CPJ). 34,000. Explain Capital Reserve and Revenue Reserve with examples. Login. (iv) Purchase of Machinery for cash Rs.20,000. [Keep a proof of closing this account, say banker stamps on the second copy of the lettr or send it by registered A.D] Received a cheque for Rs. 33,000 in full settlement of his account ... Sold goods on cash Rs. Required: Accounting equation Ans: Assets Rs. (iid Payment made to creditors in full settlement 17,500 (iv) Purchase of machinery for cash 20,000 (0) Depreciation on machinery + 2,000. 2,000.Credit Balances on January 1, 2008:Sundry Creditors: Anand Rs. (j) Purchase new office equipment by paying Rs. Expenses of realisation amount to Rs. endobj (iii) Payment made to creditors in full settlement Rs 17,500. An insider is a relative, friend, or business associate. The amount Block owes at the end of the two years is nearest to a. December 31, paid for stationery Rs. 2,000. You can arrange a Debt Payment Programme (DPP) under the Debt Arrangement Scheme (DAS). This amount is to be paid within 30 days. 20,000. (iv) Purchase of machinery for cash ₹ 20,000. 4,680 from Miss Srijana as full settlement. endobj This page contains the CBSE accountancy class 11 chapter Recording of Transactions – I notes.You can find the questions/answers/solutions for the chapter 3 of CBSE class 11 accountancy in this page. "My proposal provides for a full repayment of 100 per cent principal to all creditors within 7-8 years with an upfront payment of Rs 9,000 crore," Wadhawan wrote. [c] Creditors were Rs 90,000. Remaining Creditors allowed a discount of 10%. All Journal Exercise Questions with Solutions to help you to revise complete Syllabus and Score More marks. This site is using cookies under cookie policy. a. Kunal agreed to pay off his wife’s loan of Rs.6,000. Sundry Debtors: Vijay Rs. X agreed to take the entire stock in full settlement of his loan. Simply, creditors make money by charging interest on the loans they offer their clients. (v) Depreciation on machinery ₹ 2,000. 1,000 on the payment made.29 Close H’s Account to record the fact that all but Rs. payment definition: 1. an amount of money paid: 2. reward: 3. an amount of money received by an employee because of a…. Jan. 25 paid Sapana Traders Rs. (iv) Purchase of machinery for cash ₹ 20,000. (i) Commenced business with cash ₹ 60,000. 1,980 from Vijay and allowed him Rs. December 26, cash paid to Amrit in full settlement Rs. (iii) Payment made to creditors in full settlement Rs.17,500. Learn more. Sold goods costing Rs 17,500 for Rs 20,000 to Manish –17,500 ... Payment made to creditors in full settlement ₹ 17,500. (4) (k) Completed services of a client for Rs 26,000. (a) A had a capital of ₹ 75,000 on 1st April, 2017. (a) Credit purchase of goods 18,000. 2000 When the cash discount is given to customer on sale for one time settlement. Q uestion 7: Prepare an Accounting Equation from the following: (i) Started business with cash Rs 1,00,000. (i) Amount paid to creditor Rs. Free PDF download of TS Grewal Accountancy Class 11 Solutions Chapter 5 Journal solved by Expert Teachers as per NCERT (CBSE) Book guidelines. (iii) Payment made to creditors in full settlement Rs 17,500. June 20 Paid Rs. CBSL has taken several initiatives to make payment systems Safe, Secure, Sound, Efficient and Accessible throughout the country. Transaction Assets = Liabilities + Capital Cash (₹) + Stock (₹) + Machinery (₹) (₹) (₹) (i) Started business with Cash ` 70,000 (d) Purchase of machinery for cash ₹ 20,000. It’s possible that none of your creditors will accept a full and final settlement. Bank account, principle Accounting... cash paid to Harry Rs if are. 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