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Question-1

Describe the events recorded in accounting systems?

Solution:
The business transactions are exchange of economic consideration between two parties and have two fold effects that are recorded in at least two accounts. Payment of cash involves give aspect and delivery of the product is a take aspect.

For example, when a person make a purchase of a product, say, mobile phone. The dealer gives a cash memo along with the mobile and in exchange we make cash payment for the product. Here the purchase of mobile phone for cash is an example for the transaction, which involves reciprocal exchange of two things :( i) payment of cash, (ii) delivery of mobile phone. Thus transactions involve these aspects (give and take) and they are recorded in the accounting system.

Question-2

Explain the importance of source documents in accounting systems?

Solution:
Business transactions are usually evidenced by appropriate documents such as Cash memo, Invoice, Sales bill, Pay-in-slip, Cheque, Salary slip, etc. A document which provides evidence of the transactions is called the Source Document or a Voucher. In certain types of expenses, like petty expenses there may be no documentary evidence. In such cases voucher may be prepared showing the necessary details of purchase and with the approval by appropriate authority of the firm. All such documents (vouchers) are arranged in chronological order and are serially numbered and kept in a separate file. Thus all the recordings in the books of account are done on the basis of vouchers or source documents. so vouchers are very much essential in the preparation of the accounts without which the accounting system cannot be performed.

Question-3

What is a journal? Give a specimen of journal.

Solution:
This is the fundamental book of original entry. In this book, transactions are recorded in the sequential order, as and when they take place. Later, transactions from this book are posted to the respective accounts. The source document is required to record the transaction in the journal. The journal provides a complete record of each transaction in one place and links the debits and credits for each transaction. After the debits and credits for each transaction are entered in the journal, they are transferred to the individual accounts. The process of recording transactions in journal is called journalising.

The following is a specimen copy of a journal:

 

For Example, Goods Purchased on credit for Rs.30,000 from M/s Govind Traders on December 24, 2005, involves only two accounts: (a) Purchases A/c (Goods), (b) Govind Traders A/c (Creditors). This transaction is recorded in the journal as follows:

Journal

Date

Particulars

L.F.

Debit Amount Rs.

Credit Amount Rs.

2005

Dec 24

Purchases A/c Dr.

To Govind Traders A/c

(Purchase of goods-in-trade from Govind Traders)

 

30,000

 



30,000

 

Question-4

What are the rules of debit and credit and how they affect different accounts?

Solution:
An account is divided into two sides vise, Debit and Credit. The left side of an account is known as debit and the right side as credit. The rules of debit and credit depend upon the nature of an account. The accounts are divided into five categories for the purposes of recording the transactions: (a) Asset (b) Liability (c) Capital (d) Expenses/Losses, and (e) Revenues/Gains.

 

Two fundamental rules are followed to record the changes in the accounts:

 

(1) For recording changes in Assets/Expenses (Losses):

(i) “Increase in asset is debited, and decrease in asset is credited.”

(ii) “Increase in expenses/losses is debited, and decrease in expenses/ losses is credited.”

 

(2) For recording changes in Liabilities and Capital/Revenues (Gains):

(i) “Increase in liabilities is credited and decrease in liabilities is debited.”

(ii) “Increase in capital is credited and decrease in capital is debited.”

(iii) “Increase in revenue/gain is credited and decrease in revenue/gain is debited.”

 

The rules applicable to the different kinds of accounts:                                                                    

Rules of Debit and Credit

 

 

Asset

(Increase)

+

Debit

(Decrease)

-

Credit

 

Liabilities

(Decrease)

-

Debit

(Increase)

+

Credit

 

 

Capital

(Decrease)

-

Debit

(Increase)

+

Credit

 

Expenses/Losses

(Increase)

+

Debit

(Decrease)

-

Credit

 

Revenues/Gains

(Decrease)

-

Debit

(Increase)

+

Credit

 

 

Question-5

Describe about the Ledger books of accounts and its uses.

Solution:
The ledger is the principal book of accounting system. It is the collection of all the accounts, debited or credited, in the journal proper and various special journals (about which you will learn in chapter 4). A ledger may be in the form of a bound register, or cards, or separate sheets may be maintained in a loose leaf binder. In the ledger, each account is maintained in a separate page or card.

 

Utilities of a Ledger:

1. A ledger is a very useful and important account of the organisation.

2. The net result of all transactions in respect of a particular account on a given date can be ascertained only from the ledger.

For example, the management on a particular date wants to know its dues from a certain customer or the amount due particular supplier, such information can be found only in the ledger. This information cannot be ascertained from the journal because the transactions are recorded only in the chronological order and it lacks classification

3. It facilitates easy posting and location of accounts.

Question-6

Explain the differences between a journal and ledger.

Solution:
The Journal and the Ledger are the most important books of the double entry system of accounting and are vital for an accounting system.

 

Following are the differences between a journal and a ledger:

1. The Journal is the book of first (original) entry; while the ledger is the book of second entry.

2. The Journal is the book for chronological record; but the ledger is the book for analytical recording.

3. The Journal, as a book of source entry, gets greater importance as legal evidence than the ledger.

4. Transaction is the basis of classification of data in the Journal; Account is the basis of classification of data incase of the ledger.

5. Process of recording in the Journal is called Journalising; but the process of recording in the ledger is known as Posting.

Question-7

Give a specimen of an account.

Solution:
The ledger is the principal book of accounting system. It is the collection of all the accounts, debited or credited, in the journal proper and various special journals. In the ledger, each account is maintained in a separate page or card.

Specimen copy of the ledger:
 

Dr.

Name of the account

Cr.

Date

Particulars

J.F.

Amount Rs.

Date

Particulars

J.F.

Amount Rs.

 

 

 

 

 

 

 

 

According to this format each column will contain the following information:

An account is debited or credited according to the rules of debit and credit.

Title of the account: The Name of the item is written at the top of the format as the name of the account. The name of the account ends with suffix ‘Account’.

Dr. /Cr.: Dr. means Debit side of the account and Cr. Means Credit side of the account.

Date: Year, Month and Date of transactions are posted in chronological order in this column.

Particulars: Name of the item with reference to the journal is written on debit/credit side of the account.

Journal Folio: It records the page number of the journal in which the relevant transaction is recorded. This column is filled up at the time of posting.

Amount: This column records the amount in numerical figure, entered in the amount column of the journal.

Question-8

Explain the process of posting from a journal.

Solution:
Posting is the process of transferring the entries from the books of original entry (journal) to the ledger. Posting from the journal is done periodically, that is, weekly or fortnightly or monthly as per the requirements and convenience of the business.

 

The process of posting from journal to ledger is as follows:

Step 1: Locating the ledger in which the account is to be debited as entered in the journal.

Step 2: Entering the date of transaction in the date column on the debit side.

Step 3: Entering the name of the account in the ‘particulars’ column as debited in the journal.

For example, furniture sold for cash Rs. 34,000. Now, in cash account on the debit side in the particulars column ‘Furniture’ will be entered signifying that cash is received from the sale of furniture. In Furniture account, in the ledger on the credit side is the particulars column, the word, cash will be recorded. The same procedure is followed in respect of all the entries recorded in the journal.

Step 4: Entering the page number of the journal in the Ledger folio column and ledger in the journal folio columns, respectively.

Step 5: Entering the appropriate amount in the amount columns. An account is opened only once in the ledger and all entries relating to a particular account is posted on the debit or credit side, as the case may be.

Question-9

(x) Withdrawn by owner for personal use Rs. 25,000.

 


Solution:
Transaction (i) It affects Cash and Inventory on the assets side and Capital on the other hand. There is increase in cash by Rs. 8, 00,000 and Inventory of goods by Rs. 50,000 on assets side of the equation. Capital is increased by Rs. 8, 50,000.
  Rs.
Assets = Liabilities+Capital
Cash+Inventory (stock)
8,00,000+50,000
= 8,50,000
Total = 8,50,000 = 8,50,000

Transaction (ii) It affects Cash and Plant and Machinery on the assets side and liabilities on the other side of the equation. There is an increase in plant and machinery by Rs. 3, 00,000 and decrease in cash by Rs. 15,000. Liability to pay to the supplier of plant and machinery increases by Rs. 2,85,000.

  Rs.
Assets = Liabilities+Capital
Cash+Inventory+Plant & Machinery=
8,00,000+50,000
 
= 8,50,000
(15,000) 3,00,000 = 2,85,000
7,85,000+50,000+3,00,000 = 2,85,000+8,50,000
Total = 11,35,000 = 11,35,000

Transaction (iii) It affects assets side only. The composition of the asset side changes.

Cash decreases by Rs. 6,00,000 and by the same amount bank increases.

  Rs.
Assets = Liabilities+Capital
Cash+Inventory+Plant & Machinery +Bank =
7,85,000+50,000+3,00,000
 
=2,85,000+8,50,000
(6,00,000) + 6,00,000  
1,85,000+50,000+3,00,000+6,00,000 =2,85,000+8,50,000
Total = 11,35,000 = 11,35,000

Transaction (iv) It affects assets side only. The composition of the asset side changes.

Furniture increases by Rs. 1,00,000 and by the same amount bank decrease.

  Rs.
Assets = Liabilities+Capital
Cash+Inventory+Plant &  Machinery+Bank+Furniture =
1,85,000+50,000+3,00,000+6,00,000
=2,85,000+8,50,000
(1,00,000) + 1,00,000  
1,85,000+50,000+3,00,000 +5,00,000+1,00,000 =2,85,000+8,50,000
Total = 11,35,000 = 11,35,000

Transaction (v) It affects Cash and Inventory on the assets side and liability on the other side. There is decrease in cash by Rs. 80,000 and increase of inventory of goods by Rs. 1,15,000 on the assts side of the equation. Liabilities increases by Rs. 35,000.

  Rs.
Assets = Liabilities+Capital
Cash+Inventory+Plant & Machinery+Bank+Furniture =
1,85,000+50,000+3,00,000+5,00,000+1,00,000
 
=2,85,000+8,50,000
(80,000)+1,15,000  
1,05,000+1,65,000+3,00,000+5,00,000+1,00,000 = 3,20,000+8,50,000
Total = 11,70,000 = 11,70,000

Transaction (vi) It affects Cash and Inventory on the assets side and capital on the other side. There is an increase in cash by Rs. 60,000 and decrease in inventory of goods by Rs. 45,000 on the assets side of the equation. Capital increases by Rs. 15,000.

  Rs.
Assets = Liabilities+Capital
Cash+Inventory+Plant & Machinery+Bank+Furniture =
1,05,000+1,65,000+3,00,000+5,00,000+1,00,000
 
=3,20,000+8,50,000
(60,000)+(45,000) =15,000
1,65,000+1,20,000+3,00,000+5,00,000+1,00,000 =3,20,000+8,65,000
Total = 11,85,000 = 11,85,000

Transaction (vii) It affects Debtors and Inventory on the assets side and capital on the other side. There is increase in debtors by Rs. 1,25,000 and decrease in Inventory of goods by Rs. 80,000 on the assets side of the equation. Capital increases by Rs.45, 000.

  Rs.
Assets = Liabilities+Capital
Cash+Inventory+Plant & Machinery+Bank +Furniture+Debtors=
1,65,000+1,20,000+3,00,000+5,00,000+1,00,000
 
=3,20,000+8,65,000
(80,000)+1,25,000 =45,000
1,65,000+40,000+3,00,000+5,00,000+1,00,000
+1,25,000
=3,20,000+8,65,000
Total = 12,30,000 = 12,30,000

Transaction (viii) It affects Bank on the assets side on one side and liability on the other side. There is decrease in bank by Rs. 35,000 on the assets side and liability also decreases by Rs. 35,000.

  Rs.
Assets = Liabilities+Capital
Cash+Inventory+Plant & Machinery+Bank+Furniture +Debtors=
1,65,000+40,000+3,00,000+5,00,000+1,00,000 +1,25,000
=3,20,000+9,10,000
(35,000) =(35,000)
1,65,000+40,000+3,00,000+4,65,000+1,00,000+1,25,000 =2,85,000+9,10,000
Total = 11,95,000 = 11,95,000

Transaction (ix) It affects assets side only. The composition of the assets side changes.

Bank increases by R. 75,000 and by the same amount Debtors decreases.

  Rs.
Assets = Liabilities+Capital
Cash+Inventory+Plant & Machinery+Bank+Furniture+Debtors=
1,65,000+40,000+3,00,000+4,65,000+1,00,000 +1,25,000
 
=2,85,000+9,10,000
(75,000) =(75,000)
1,65,000+40,000+3,00,000+5,40,000+1,00,000 +50,000 =2,85,000+9,10,000
Total = 11,95,000 = 11,95,000

Transaction (x) It affects Cash on the asset side and Capital on the other hand. There is decrease in Cash by Rs. 25,000 on the assets side whereas capital decreases by Rs. 25,000.

  Rs.
Assets = Liabilities+Capital
Cash+Inventory+Plant & Machinery+Bank +Furniture+Debtors =
1,65,000+40,000+3,00,000+5,40,000+1,00,000 +50,000
 
=2,85,000+9,10,000
(25,000) =(25,000)
1,40,000+40,000+3,00,000+5,40,000+1,00,000 +50,000 =2,85,000+8,85,000
Total = 11,95,000 = 11,95,000

Question-10

 


Solution:

Journal

Date

Particulars

L.F.

Debit Amount Rs.

Credit Amount Rs.

(i)

Cash A/c Dr.

To Capital A/c

(business started with cash)

  6,00,000

6,00,000
(ii)

Bank A/c Dr.

To Cash A/c

(Cash Deposited into bank)

  4,50,000
4,50,000
(iii)

Plant and Machinery A/c Dr.

To Cash A/c

To Creditors A/c

(Purchase of plant and machinery by paying Rs. 30,000 cash and balance on a later date)

  2,30,000

30,000

2,00,000
 
(iv)

Purchases A/c Dr.

To Cash A/c

To Creditors A/c

(Bought goods for cash as well as on credit)

  85,000

40,000

45,000

(v)

Creditor’s A/c Dr.

To Bank A/c

(Payment made to the supplier of plant and machinery)

Total c/f

Total b/f

  2,00,000



 

________
15,65,000
________

15,65,000



2,00,000
 


________
15,65,000
________

15,65,000

(vi)

Cash A/c                      Dr.

To Sales A/c

(Sold goods on profit)

  70,000

70,000
(vii)

Drawings A/c                Dr.

To Cash A/c

(Withdrew cash for personal use)

 

35,000

 



35,000

 

(viii)

Insurance A/c                Dr.

To Bank A/c

(Paid insurance by cheque)

  2,500

2,500
(ix)

Outstanding salary A/c    Dr.

To Salary A/c

(Salary outstanding )

  5,500

5,500
(x)

Furniture A/c Dr.

To Cash A/c

(Furniture purchased for cash)


Total

  30,000





_________

17,08,000
_________



30,000



_________

17,08,000
_________

 

Question-11

State the title of the accounts affected, type of account and the account to be debited and account to be credited:
 
1. Bhanu commenced business with cash 1,00,000
2. Purchased goods on credit from Ramesh 40,000
3. Sold goods for cash 30,000
4. Paid salaries 3,000
5. Furniture purchased for cash 10,000

Solution:
1. Cash account and capital account, Assets and Liabilities, Assets increase and capital increase.

2. Purchase account and Ramesh account, Expenses and Liabilities, Expenses and Liabilities increases.

3. Cash account and sales account, Assets and Revenues, Assets and Revenues increases.

4. Salaries account and cash account, Expense and Assets, Expenses increases, Assets decreases.

5. Furniture account and Cash account, Asset increases Asset decreases.

6. Loan account and Bank, Liability and Asset, Liabilities increases Asset decreases.

7. Sarita account and Sales account, Asset and Revenue, Assets decreases, Revenue decreases.

8. Ramesh account and Cash, liabilities and Assets, Liabilities decreases Assets increases.

9. Rent account and Cash account, Expense and Assets, Expenses increases, Assets decreases.

Question-12

Journalise the following transactions of M/s Mallika Fashion House and post the entries to the Ledger
 
Date Details    Amount
2005   Rs.
June 05 Business started with cash 2, 00,000
June 08 Opened a bank account with Syndicate Bank 80,000
June 12 Goods purchased on credit from M/s Gulmohar Fashion House 30,000
June 12 Purchase office machines, paid by cheque 20,000
June 18 Rent paid by cheque 5,000
June 20 Sale of goods on credit to M/s Mohit Bros      10,000
June 22 Cash sales   15,000
June 25 Cash paid to M/s Gulmohar Fashion House 30,000
June 28 Received a cheque from M/s Mohit Bros 10,000
June 30 Salary paid in cash      6,000

 


Solution:
(i) Recording the transactions
 

 

Date

Particulars

L.F.

Debit Amount Rs.

Credit Amount Rs.

2005 Cash A/c Dr.   2,00,000  
Jun 05

To Capital A/c

(Business started with cash)

    2,00,000
Jun 08

Bank A/c Dr.

To Cash A/c

(Opened a current account with syndicate bank)

  80,000
80,000
Jun 12

Purchases A/c Dr.

To Gulmohar Fashion House A/c

(Goods purchased on credit)

 

Total c/f

Total b/f

 

30,000



3,10,000

3,10,000




30,000

3,10,000

3,10,000
June 12

Office Machines A/c Dr.

To Bank A/c

(Office machine purchased) 

  20,000

20,000
June 18

Rent A/c Dr.

To Bank A/c

(Rent paid) 

  5,000

5,000
June 20

Mohit Bros A/c Dr.

To Sales A/c 10,000

(Goods sold on credit)

  10,000

10,000
June 22

Cash A/c Dr.

To Sales A/c

(Goods sold for cash) 

  15,000

15,000
June 25

Gulmohar Fashion House A/c Dr.

To Cash A/c

(Cash paid to Gulmohar
Fashion House)

  30,000

30,000
June 28

Bank A/c Dr.

To Mohit Bros A/c

(Payment received in full and final settlement)

  10,000

10,000
June 30

Salary A/c Dr.

To Cash A/c 6,000

(Monthly salary paid)

 

Total

 

6,000
 


___________
4,06,000
_________



6,000

__________
4,06,000
________

 

(ii) Posting in Ledger:

 

 

Dr.

Cash Account

Cr.

Date

Particulars

J.F.

Amount Rs.

Date

Particulars

J.F.

Amount Rs.

2005

June 5

June 22

 

Capital

Sales

 

 

2,00,000

15,000

 

2005

June 8

June 25

June 30

Bank

Gulmohar

 Fashion House

Salary

 

80,000
30,000
6,000

 

 
Dr.

Capital Account

Cr.

Date

Particulars

J.F.

Amount Rs.

Date

Particulars

J.F.

Amount Rs.

       

2005

June 5

 

Cash

 

2,00,000

 

 
Dr.

Bank Account

Cr.

Date

Particulars

J.F.

Amount Rs.

Date

Particulars

J.F.

Amount Rs.

2005

Jun 08

Jun 28

 



Cash

Mohit Bros.

 

 



80,000

10,000

2005

June 12

 

June 18

 

 

Office Machines
Rent

 

 

 


30,000

5,000

 

 
Dr.

Purchases Account

Cr.

Date

Particulars

J.F.

Amount Rs.

Date

Particulars

J.F.

Amount Rs.

2005

Jun 12

 

Gulmohar fashion House.

 

 

 

30,000

 

2005

 

 

 

 

 

 

 

 

 
Dr.

Gulmohar Fashion House Account

Cr.

Date

Particulars

J.F.

Amount Rs.

Date

Particulars

J.F.

Amount Rs.

2005

 

Jun 25

 

 

Cash

 

 

 

30,000

 

2005

 

Jun 12

 

 

 

Purchases

 

 

 

 

30,000

 

 
Dr.

Office Machines Account

Cr.

Date

Particulars

J.F.

Amount

Rs.

Date

Particulars

J.F.

Amount

Rs.

2005

 

Jun 12

 

 

Bank

 

 

 

20,000

 

 

 

 

 

 

 

 

 

 

 

 
Dr.

Rent Account

Cr.

Date

Particulars

J.F.

Amount

Rs.

Date

Particulars

J.F.

Amount

Rs.

2005

 

Jun 18

 

 

Bank

 

 

 

5,000

 

 

 

 

 

 

 

 

 

 
Dr.

Mohit Bros.Account

Cr.

Date

Particulars

J.F.

Amount

Rs.

Date

Particulars

J.F.

Amount

Rs.

2005

 

Jun 20

 

 

Sales

 

 

 

10,000

 

2005

 

Jun 28

 

 

 

Cash

 

 

 

 

10,000

 

 
Dr.

Sales Account

Cr.

Date

Particulars

J.F.

Amount

Rs.

Date

Particulars

J.F.

Amount

Rs.

2005

 

Jun 20

 

 

 

 

 

 

 

2005

 

Jun 20

Jun 22

 

 

 

Mohit Bros.

Cash

 

 

 

10,000

15,000

 

 
Dr.

Salary Account

Cr.

Date

Particulars

J.F.

Amount

Rs.

Date

Particulars

J.F.

Amount

Rs.

2005

 

Jun 30

 

 

Cash

 

 

 

6,000

 

 

 

 

 

   

Question-13

Journalise the following transactions of M/s Time Zone and post them to the ledger accounts :
 
Date Details    Amount
2005   Rs.
Dec. 01 Business started with cash 1,20,000
Dec. 02              Opened a bank account with ICICI 4,00,00
Dec. 04               Goods purchased for cash 12,000
Dec. 10                Paid cartage 500
Dec. 12              Goods sold on credit to M/s Lara India 25,000
Dec. 14              Cash received from M/s Lara India 10,000
Dec. 16                 Goods returned from Lara India 3,000
Dec. 18               Paid trade expenses 700
Dec. 19               Goods purchased on credit from Taranum 32,000
Dec. 20               Cheque received from M/s Lara India for final settlement and deposited same day into bank 11,500
Dec. 22               Goods returned to Taranum 1,500
Dec. 24                Paid for stationery 1,200
Dec. 26                  Cheque given to Taranum on account 20,000
Dec. 28               Paid rent by cheque 4,000
Dec. 29                  Drew cash for personal use 10,000
Dec. 30               Cash sales 12,000
Dec. 31              Goods sold to M/s Rupak Traders 11,000

Solution:

 

Date

Particulars

L.F.

Debit Amount Rs.

Credit Amount Rs.

2005 Cash A/c Dr.  

1,20,000

 
Dec.01

To Capital A/c

( Business started with cash)

    1,20,000
Dec.02

Bank A/c Dr.

To Cash A/c

(Opened a current account with ICICI bank)

  40,000
40,000
Dec 04

Purchases A/c Dr.

To Cash A/c

(Goods purchased for cash)

  12,000

12,000
Dec 10

Cartage A/c Dr.

To Cash A/c

(Cartage paid)

  500

500
Dec 12

Lara India A/c Dr.

To Sales A/c

(Goods sold on credit)

 

Cash A/c Dr.

  25,000

25,000
Dec 14

Cash A/c Dr.

To Lara India A/c

(Cash received from Lara India)

 

Total c/f

Total b/f

  10,000




              _______

2,07,500

2,07,500



10,000


                 _______

2,07,500

2,07,500

Dec 16

Sales Return A/c Dr.

To Lara India A/c

(Goods returned from Lara India)

  3,000 3,000
Dec 18

Trade Expenses A/c Dr.

To Cash A/c

(Trade expenses paid)

  700

700
Dec 19

Purchases A/c Dr.

To Tranum’s A/c

(Goods purchased on credit)

  32,000

32,000
Dec 20

Bank A/c Dr.

Discount A/c Dr.

To Lara India A/c
(Cheque received for final settlement)

 

11,500

500

 



12,000
Dec 22

Taranum’s A/c Dr.

To Purchase Return’s A/c (Goods returned to Tranum)

  1,500

1,500
Dec 24

Stationery A/c Dr.

To Cash A/c

(Cash paid for stationery)

  1,200

1,200
Dec 26

Taranum’s A/c Dr.

To Bank A/c

(Cheque given toTranum)

  20,000

20,000
Dec 28

Rent A/c Dr.

To Bank A/c

(Rent paid by cheque)

  4,000

4,000
Dec 29

Drawings A/c Dr.

To Cash A/c 10,000

(Cash withdrawn for personal use)

  10,000

10,000
Dec 30

Cash A/c Dr.

To Sales A/c 12,000

(Goods sold for cash)

  12,000

12,000
Dec 31

Rupak Trader A/c Dr.

To Sales A/c 11,000

(Goods sold on credit)

Total

  11,000

 


_______
3,14,900
_______



11,000


_______
3,14,900
_______
 
Dr.

Cash Account

Cr.

Date

particulars

J.F.

Amount

Rs.

Date

Particulars

J.F.

Amount

Rs.

2005

Dec.01

Dec 14

Dec 30

 

Capital

Lara India

Sales

 

 

1,20,000

12,000

10,000

2005

Dec. 02 Dec. 04 Dec. 10 Dec. 18

 

Dec. 24. Dec. 29

 

 

Bank
Purchase Cartage
Trade Expenses

Stationery
Drawings

 

 

 

40,000
12,000
   500
  700

1,200
1,000

 

 
Dr.

Capital Account

Cr.

Date

particulars

J.F.

Amount

Rs.

Date

Particulars

J.F.

Amount

Rs.

 

 

 

 

 

 

2005

Dec. 01

 

 

Cash

 

 

1,20,000

 

 
Dr.

Bank Account

Cr.

Date

particulars

J.F.

Amount

Rs.

Date

Particulars

J.F.

Amount

Rs.

2005

Dec 02

Dec 20

 



Cash

Lara India

 

 



40,000

11,500

2005

Dec. 26

Dec 28

 

 

Taranum’s

Rent

 

 



20,000

4,000

 
Dr.

Purchases Account

Cr.

Date

Particulars

J.F.

Amount

Rs.

Date

Particulars

J.F.

Amount

Rs.

2005

Dec 02

Dec 19

 



Cash

Taranum

 

 

 

12,000

32,000

 

 

 

 

 

 

 
Dr.

Cartage Account

Cr.

Date

particulars

J.F.

Amount

Rs.

Date

Particulars

J.F.

Amount

Rs.

2005

Dec 10

 



Cash

 

 

500

     

 

 

 
Dr.

Lara India Account

Cr.

Date

particulars

J.F.

Amount

Rs.

Date

Particulars

J.F.

Amount

Rs.

2005

Dec12

 

 

Sales

 

 

 

25,000

2005

Dec 14

Dec 16

Dec 20

 



Cash

Sales Return

Bank

Discount

 

 



10,000

3,000

11,500

500

 
Dr.

Sales Account

Cr.

Date

particulars

J.F.

Amount Rs.

Date

Particulars

J.F.

Amount

Rs.

       

2005

Dec 12

Dec 30

Dec 31

 



Lara India

Cash

Rupak Traders

 

 



25,000

12,000

11,000

 
Dr.

Sales Return Account

Cr.

Date

particulars

J.F.

Amount Rs.

Date

Particulars

J.F.

Amount Rs.

2005

Dec 16

 

Lara India

 

 

 

3,000

     

 

 

 
Dr.

Trade Expenses Account

Cr.

Date

Particulars

J.F.

Amount Rs.

Date

Particulars

J.F.

Amount Rs.

2005

Dec 18

 



Cash

 

 

 

700

     

 

 
Dr.

Taranum Account

Cr.

Date

particulars

J.F.

Amount Rs.

Date

Particulars

J.F.

Amount Rs.

2005

Dec 22

Dec 26

 

Cash

 

 

 

500

2005

Dec.19

 



Purchase

 

 



32,000

 





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