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Question-1

States the three fundamental steps in the accounting process.

Solution:
Identifying, recording and posting are the thee fundamental steps involved in the accounting process.

Question-2

Why is the evidence provided by source documents important to accounting?

Solution:
Hence, the transaction involves this aspect, i.e. Give and Take. Payment of cash involves give aspect and delivery of computer is a take aspect. Thus, business transactions are exchanges of economic consideration between parties and have two-fold effects that are recorded in at least two accounts

Question-3

Should a transaction be first recorded in a journal or ledger? Why?

Solution:
The book in which the transaction is recorded for the first time is called journal or book of original entry. This provides a complete record of each transaction in one place and links the debits and credits for each transaction.

Question-4

Are debits or credits listed first in journal entries? Are debits or credits indented?

Solution:
Yes, the debits and credits are first listed in the journal entries because the transactions are recorded first in the journal and the respective debit or credit is provided for the accounts.

Question-5

Why are some accounting systems called double accounting systems?

Solution:
Double entry accounting systems affect both the accounts. Recording the transactions in double entry system enables the business concern to provide proper financial statements which enables the business entity to compare their performance over a period.

Question-6

Give a specimen of an account.

Solution:

Date

Particulars

J.F.

Amount Rs.

Date

Particulars

J.F.

Amount Rs.
               

 

Question-7

Why are the rules of debit and credit same for both liability and capital?

Solution:
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."

Question-8

What is the purpose of posting J.F numbers that are entered in the journal at the time entries are posted to the accounts.

Solution:
This refers to the time the journals are recorded and not when the transaction takes place.

Question-9

What entry (debit or credit) would you make to:

(a) increase revenue

(b) decrease in expense,

(c) record drawings

(d) record the fresh capital introduced by the owner.


Solution:
  1. fresh capital introduced by the owner

 

Question-10

If a transaction has the effect of decreasing an asset, is the decrease recorded as a debit or as a credit? If the transaction has the effect of decreasing a liability, is the decrease recorded as a debit or as a credit?

Solution:
For a decreasing asset, the decrease is recorded as a credit. In the case of a decreasing liability, the decrease is recorded as a debit.

Question-11

Describe the events recorded in accounting systems and the importance of source documents in those systems?

Solution:
After purchasing a mobile phone, the dealer gives a cash memo along with the mobile and in exchange you pay cash payment of Rs.15, 000. Purchase of mobile phone for cash is an example of a transaction, which involves reciprocal exchange of two things:

(i) Payment of cash,

(ii) Delivery of a mobile phone.

Hence, the transaction involves this aspect, i.e. Give and Take. Payment of cash involves give aspect and delivery of computer is a take aspect.

Thus, business transactions are exchanges of economic consideration between parties and have two-fold effects that are recorded in at least two accounts. 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.

Question-12

Describe how debits and credits are used to analyse transactions.

Solution:
Every transaction involves give and take aspect. In double entry accounting, every transaction effected is recorded in at least two accounts. When recording each transaction, the total amount debited must be equal to the total amount credited.

In accountancy, the terms — debit and credit indicate if the transactions are to be recorded on the left hand side or right hand side of the account. In simple form, an account looks like the letter T. Because of its shape, this simple form called a T-account (refer figure 3.4). You can notice that the T format of accounts has a left side and a right side for recording increases and decreases in the accounts. This helps in ascertaining the ultimate position of each item at the end of an accounting period.

For example, in the books of a customer all goods sold shall appear on the left (debit) side of customer’s account and all payments received on the right (credit) side. The difference between the totals of the two sides is called as balance It represents the amount due to the customer. In a T account, the left side is called debit (abbreviation - Dr.) and the right side is known as credit (abbreviation- Cr.).

Question-13

Describe how accounts are used to record information about the effects of transactions?

Solution:
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."

Question-14

What is a journal? Give a specimen of journal showing at least five entries.

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. Each transaction is individually recorded after determining the particular account to be debited or credited.

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).

 

Date

Particulars

L.F.

Debit Amount Rs.

Credit Amount Rs.

2005

Dec.24

 

Purchases A/c Dr.

To Govind Traders A/c

(Purchases of goods –in –trade from Govind Traders)

 

 

30,000

 

 

30,000

For Rs. 25,000 Office furniture is purchased from Modern Furniture’s on July 4, 2005 and Rs. 5,000 is paid by cash immediately and balance of Rs. 20,000 is still payable. It increases furniture (assets) by Rs. 25,000, decreases cash (assets) by Rs. 5,000 and increases liability by Rs.20,000.
 

Date

Particulars

L.F.

Debit Amount Rs.

Credit Amount Rs.

2005

July 4

 

Office Furniture A/c Dr.

To Cash A/c

To Modern Furniture A/c

(Purchases of office furniture fromModern Furnitures)

 



25,000

 

 

5,000

20,000

 

Question-15

Accounting equation remains intact under all circumstances. Justify the statement with the help of an example.

Solution:
An Accounting equation signifies that the assets of a business are always equal to the total of its liabilities and capital (owner’s equity).

The equation is as follows:

 

A = L + C

Where,

A = Assets

L = Liabilities

C = Capital

 

The above equation can also be presented in the following forms :

 

(i) A – L = C

(ii) A – C = L

 

Since, the accounting equation depict the fundamental relationship among the components of the balance sheet, it is also called the Balance Sheet Equation. As the name depicts, the balance sheet is a statement of assets, liabilities and capital.

The resources of the business entity must always be equal to the claims of those who have financed these resources. The proprietors and (public) outsiders provide the resources of the business. The claim of the proprietors is called capital and that of the outsides is known as liabilities. Each element of the equation in the balance sheet states the financial position of the business on a particular date. On analyzing the transactions, we can know that how balance sheet of a business entity gets affected.

Asset side of the balance sheet is the list of assets, which the business entity owns. The liabilities side of the balance sheet is the list of owner’s claims and outsider’s claims, i.e., what the business entity owes. The equality of the assets side and the liabilities side of the balance sheet is an undeniable fact and this justifies the name of accounting equation as balance sheet equation also.

Sanjay started business with a capital of Rs. 10, 00,000. From the accounting point of view, the resources of this business entity are in the form of cash, i.e., Rs. 10, 00,000. Sources of this business entity are the contribution by Sanjay (Proprietor) Rs. 10, 00,000 as Capital.

If we put this information in the form of equality of resources and sources, the picture would emerge somewhat as follows:

Books of Rohit Balance Sheet as at...

Liabilities Amount Rs. Assets Amount Rs.
Capital 5,00,000
________
5,00,000
________
Cash in hand 5,00,000
________

5,00,000
________

 

Question-16

Prepare accounting equation on the basis of the following:
 
(a) Harsha started business with cash Rs.2,00,000
(b) Purchased goods from Naman for cash Rs. 40,000
(c) Sold goods to Bhanu costing Rs.10,000/- Rs. 12,000
(d) Bought furniture on credit Rs. 7,000

Solution:
Asset = cash Rs. 1,60,000 + Goods Rs. 30,000 + Debtors Rs. 12,000 + Furniture Rs. 7,000 = Rs. 2,09,000

Liabilities = Creditors Rs. 7,000 + Capital Rs. 2,02,000 = Rs. 2,09,000

 

Question-17

Prepare accounting equation from the following:
 
(a) Kunal started business with cash Rs.2,50000
(b) He purchased furniture for cash Rs. 35,000
(c) He paid commission Rs. 2,000
(d) He purchases goods on credit Rs. 40,000
(e) He sold goods (Costing Rs.20,000) for cash Rs. 26,000

Solution:
Asset = Cash Rs. 2,39,000 + Furniture Rs. 35,000 + Goods Rs. 20,000 = Rs. 2,94,000

Liabilities = Creditors Rs. 40,000 + Capital Rs. 2,54,000 =Rs. 2,94,000

Question-18

Mohit has the following transactions, prepare accounting equation:
 
(a) Business started with cash Rs. 1,75,000
(b) Purchased goods from Rohit Rs. 50,000
(c) Sales goods on credit to Manish (Costing Rs. 17,500) Rs. 20,000
(d) Purchased furniture for office use Rs. 10,000
(e) Cash paid to Rohit in full settlement Rs. 48,500
(f) Cash received from Manish Rs. 20,000
(g) Rent paid Rs. 1,000
(h) Cash withdrew for personal use Rs. 3,000

Solution:
Cash Rs. 1,33,000 + Goods Rs. 32,500 + Furniture Rs. 10,000 = Rs. 1,75,500

Liabilities = Capital Rs. 1,77,500 + Cash Rs. 1,33,000 + Goods Rs. 32,500 + Furniture Rs. 10,000 = Rs. 1,75,500

Question-19

Rohit has the following transactions:
 
(a) Commenced business with cash Rs.1,50,000
(b) Purchased machinery on credit Rs. 40,000
(c) Purchased goods for cash Rs. 20,000
(d) Purchased car for personal use Rs. 80,000
(e) Paid to creditors in full settlement Rs. 38,000
(f) Sold goods for cash costing Rs. 5,000 Rs. 4,500
(g) Paid rent Rs. 1,000
(h) Commission received in advance Rs. 2,000

Prepare the Accounting Equation to show the effect of the above transactions on the assets, liabilities and capital.


Solution:
Assets = Cash Rs. 17,500 + Machine Rs. 40,000 + Goods Rs. 15,000 = Rs. 72,500

Liabilities = Commission Rs. 2,000 + Capital Rs. 70,500 = Rs. 72,500

Question-20

Use accounting equation to show the effect of the following transactions of M/s Royal Traders:
 
(a) Started business with cash Rs.1,20,000
(b) Purchased goods for cash Rs. 10,000
(c) Rent received Rs. 5,000
(d) Salary outstanding Rs. 2,000
(e) Prepaid Insurance Rs. 1,000
(f) Received interest Rs. 700
(g) Sold goods for cash (Costing Rs. 5,000) Rs. 7,000
(h) Goods destroyed by fire Rs. 500

Solution:
Assets = Cash Rs. 1,22,700 + Goods Rs. 4,500 + Prepaid insurance + Rs. 1,000 = Rs. 1,28,200

Liabilities = Outstanding salary Rs. 2,000 + Capital Rs. 1,26,200 = Rs. 1,28,200

Question-21

Show the accounting Equation on the basis of the following transaction:
 
(a) Udit started business with:
(i) Cash Rs. 5,00,000
(ii) Goods Rs. 1,00,000
(b) Purchased building for cash Rs. 2, 00,000
(c) Purchased goods from Himani Rs. 50,000
(d) Sold goods to Ashu (Cost Rs. 25,000) Rs. 36, 000
(e) Paid insurance premium Rs. 3,000
(f) Rent outstanding Rs. 5,000
(g) Depreciation on building Rs. 8,000
(h) Cash withdrawn for personal use Rs. 20,000
(i) Rent received in advance Rs. 5,000
(j) Cash paid to himani on account Rs. 20,000
(k) Cash received from Ashu Rs. 30,000

Solution:
Assets = Cash Rs. 2,92,000 + Goods Rs. 1,25,000 + Building Rs. 1,92,000 + Debitors Rs. 6,000 = 6,15,000

Laibilities = Creditors Rs. 30,000 + Outstanding Rent Rs. 5,000 + Rent Rs. 5,000 + Capital Rs. 5,75,000 = Rs. 6,15,000

Question-22

Show the effect of the following transactions on Assets, Liabilities and Capital through accounting equation:
 
(a) Started business with cash Rs. 1,20,000
(b) Rent received Rs. 10,000
(c) Invested in shares Rs. 50,000
(d) Received dividend Rs. 5,000
(e) Purchase goods on credit from Ragani Rs. 35,000
(f) Paid cash for house hold Expenses Rs. 7,000
(g) Sold goods for cash (costing Rs.10,000) Rs. 14,000
(h) Cash paid to Ragani Rs. 35,000
(i) Deposited into bank Rs. 20,000

Solution:
Assets = Cash Rs. 37,000 + Shares Rs. 50,000 + Goods Rs. 25,000 +Bank Rs. 20,000 = Rs. 1,32,000

Liabilities = Capital Rs. 1,32,000

Question-23

Show the effect of following transaction on the accounting equation:
 
(a) Manoj started business with
(i) Cash Rs. 2,30,000
(ii) Goods Rs. 1,00,000
(iii) Building Rs. 2,00,000
(b) He purchased goods for cash Rs. 50,000
(c) He sold goods (costing Rs.20,000) Rs. 35,000
(d) He purchased goods from Rahul Rs. 55,000
(e) He sold goods to Varun (Costing Rs. 52,000) Rs. 60,000
(f) He paid cash to Rahul in full settlement Rs. 53,000
(g) Salary paid by him Rs. 20,000
(h) Received cash from Varun in full settlement Rs. 59,000
(i) Rent outstanding Rs. 3,000
(j) Prepaid Insurance Rs. 2,000
(k) Commission received by him Rs. 13, 000
(l) Amount withdrawn by him for personal use Rs. 20,000
(m) Depreciation charge on building Rs. 10,000
(n) Fresh capital invested Rs. 50,000
(o) Purchased goods from Rakhi Rs. 6,000

Solution:
Assets = Cash Rs. 2,42,000 + Goods Rs. 1,43,000 +Building Rs.1,90,000 + Prepaid Insurance Rs. 2,000 = Rs. 5,77,000

Liabilities = Outstanding Rent Rs. 3,000 + Creditor Rs. 10,000 + Capital Rs. 5,64,000 = Rs. 5,77,000

Question-24

Transactions of M/s Vipin Traders are given below. Show the effects on Assets, Liabilities and Capital with the help of accounting Equation.
 
(a) Business started with cash Rs. 1,25,000
(b) Purchased goods for cash Rs. 50,000
(c) Purchase furniture from R.K. Furniture Rs. 10,000
(d) Sold goods to Parul Traders (Costing Rs. 7,000 vide Rs.9,000 bill no. 5674)
(e) Paid cartage Rs. 100
(f) Cash Paid to R.K. furniture in full settlement Rs. 9,700
(g) Cash sales (costing Rs.10,000) Rs. 12,000
(h) Rent received Rs. 4,000
(i) Cash withdrew for personal use Rs. 3,000

Solution:
Asset = cash Rs. 78,200 + Goods Rs. 33,000 + Furniture Rs. 10,000 + Debtors Rs. 9,000 = Rs. 1,30,200

Liabilities = Capital Rs. 1,30,200

Question-25

Journalising:

Journalise the following transactions in the books of Himanshu:

2005 Rs.
Dec.01 Business started with cash 75,000
Dec.07 Purchased goods for cash 10,000
Dec.09 Sold goods to Swati 5,000
Dec.12 Purchased furniture 3,000
Dec.18 Cash received from Swati in full settlement 4,000
Dec.25 Paid rent 1,000
Dec.30 Paid salary 1,500

Solution:
Journal entries

a) Cash a/c                Dr              75,000

       To Capital                                        75,000

            (Being business started with cash)

 

b) Purchases a/c         Dr               10,000

       To cash                                            10,000

            (Being goods purchased for cash)

 

c) Swati a/c               Dr                 5,000

       To Sales                                             5,000

           (Being goods sold to Swati)

 

d) Furniture a/c           Dr                3,000

      To Cash                                               3,000

           (Being furniture bought for cash)

 

e) Cash a/c                 Dr                4,000

      To Swati                                               4,000

           (Being cash received from Swati in full settlement)

 

f) Rent a/c                  Dr                 1,000

       To Cash                                               1,000

           (Being rent paid)

 

g) Salary a/c                Dr                 1,500

       To Cash                                               1,500

(Being salary paid by cash)

 

Question-26

Enter the following Transactions in the Journal of Mudit :
 
2006 Rs.
Jan.01 Commenced business with cash 1,75,000
Jan.01 Building 1,00,000
Jan.02 Goods purchased for cash 75,000
Jan.03 Sold goods to Ramesh 30,000
Jan.04 Paid wages 500
Jan.06 Sold goods for cash 10,000
Jan.10 Paid for trade expenses 700
Jan.12 Cash received from Ramesh 29,500
Discount allowed 500
Jan.14 Goods purchased for Sudhir 27,000
Jan.18 Cartage paid 1,000
Jan.20 Drew cash for personal use 5,000
Jan.25 Cash paid to Sudhir 26,700
Discount allowed 300

Solution:
Journal entries in the books of Mudit

a) Cash a/c                      Dr                1,75,000

          To Capital                                            1,75,000

     (Being business started with cash)

 

b) Building a/c                 Dr                 1,00,000

          To cash                                                1,00,000

     (Being building purchased for cash)

 

c) Ramesh a/c                  Dr                   30,000

         To sales                                                  30,000

     (Being goods sold to Rameesh)

 

d) wages a/c                     Dr                        500

          To cash                                                       500

     (Being wages paid in cash)

 

e) Trade expenses a/c        Dr                         700

          To cash                                                        700

    (being trade expenses paid by cash)

 

f) Cash a/c                        Dr                        29,500

          Discount a/c            Dr                             500

                      To ramesh                                        30,000

   (being cash received from ramesh)

 

g) Purchases a/c                 Dr                        27,000

                      To Sudhir                                         27,000

    (Being goods purchased from Sudhir)

 

h) Cartage a/c                    Dr                        1,000

                      To cash                                          1,000

     (Being cartage expenses paid by cash)

 

i) drawings a/c                   Dr                         10,000

                     To cash                                            10,000

    (being cash withdrawn for personal use)

 

j) Sudhir a/c                      Dr                          27,000

                    To cash                                               26,700

                   To discount                                               300

(Being cash paid to Sudhir)

 

Question-27

Journalise the following transactions:
 
2005 Rs.
Dec. 01 Hema started business with cash 1,00,000
Dec. 02 Open a bank account with SBI 30,000
Dec. 04 Purchased goods from Ashu 20,000
Dec. 06 Sold goods to Rahul for cash 15,000
Dec. 10 Bought goods from Tara for cash 40,000
Dec.13 Sold goods to Suman 20,000
Dec.16 Received cheque from Suman 19,500
Discount allowed 500
Dec.20 Cheque given to Ashu on account 10,000
Dec.22 Rent paid by cheque 2,000
Dec.23 Deposited into bank 16,000
Dec.25 Machine purchased from Parigya 10,000
Dec.26 Trade expenses 2,000
Dec.28 Cheque issued to Parigya 10,000
Dec.29 Paid telephone expenses by cheque 1,200
Dec.31 Paid salary 4,500

Solution:
a) Cash a/c Dr                                1,00,000

            To Capital                                        1,00,000

              (Being business commenced with cash)

 

b) Bank a/c Dr                                   30,000

            To cash                                         30,000

             (Being bank account opened by paying cash)

 

c) Purchases a/c Dr                            20,000

            To Ashu                                        20,000

            (Being goods purchased from Ashu)

 

d) Rahul a/c Dr                                  15,000

           To Sales                                        15,000

            (being goods sold to Rahul for cash)

 

e) purchases a/c Dr                            40,000

           To cash                                          40,000

           (being goods purchased for cash)

 

f)Suman a/c ; Dr                               20,000

           To Sales                                        20,000

           (Being goods sold to Suman)

 

g) Bank a/c Dr                                  19,500

           Discount a/c Dr                          500

             To Suman                                    20,000

         (Being cheque received from Suman)

 

h) Ashu a/c Dr                                 10,000

             To Bank                                      10,000

        (Being cheque given to Ashu)

 

i) Rent a/c Dr                                    2,000

              To Bank                                    2,000

       (Being rent paid by cheque)

 

j) bank a/c Dr                                  16,000

             To Cash                                      16,000

       (Being cash deposited to bank)

 

k) Machine a/c Dr                             10,000

             To Parigya                                  10,000

       (Being machine purchased from Parigya)

 

l) Trade expenses a/c Dr                      2,000

             To Cash                                      2,000

       (Being trade expenses paid by cash)

 

m) Parigya a/c Dr                               10,000

             To Bank                                       10,000

       (Being cheque issued to Parigya)

 

n)Telephone expenses a/c Dr              1,200

             To bank                                     1,200

       (Being telephone expenses paid by cheque)

 

o) Salary a/c Dr                                4,500

           To cash                                        4,500

(Being salary paid by cash)

 

Question-28

 


Solution:
a) bad debts a/c Dr                 1,000

              To Rohit                             1,000

(Being amount due from Rohit treated as bad debts)

 

b) Depreciation a/c Dr                 3,000

               To Machinery                      3,000

(Being depreciation charged for the machinery)

 

c) Interest on Capital a/c Dr         9,000

              To Capital                           9,000

(Being Interest on capital charged for 9 months )

 

Question-29

Prepare Journal from the transactions given below :

(a) Cash paid for installation of machine Rs. 500

(b) Goods given as charity Rs. 2,000

(c) Interest charge on capital @7% p.a. Rs. 70,000

(d) Received Rs.1,200 of a bad debts written-off last year.

(e) Rent outstanding Rs. 1,000

(f) Interest on drawings Rs. 900

(g) Sudhir Kumar who owed me Rs. 3,000 has failed to pay the amount.

(h) He pays me a compensation of 45 paise in a rupee.

(i) Commission received in advance Rs. 7,000


Solution:
  1. Machinery a/c Dr                   500

                  To cash                        500

    (being cash paid to install machinery)

     

    Charity a/c Dr                        2,000

                  To Cash                        2,000

    (Being goods given to charity)

     

    Interest on capital a/c Dr        4900

                  To Capital                     4900

    (Being interest charged @ 7% p.a)

     

    Cash a/c Dr                          1,200

       To bad debts                 1,200

      (being bad debts written off paid)

 

e) Outstanding expenses a/c Dr     1,000

                    To rent                          1,000

     (Being rent outstanding)

 

f) Interest on drawing a/c Dr           900

                    To cash                          900

     (Being interest on drawings paid by cash)

 

g) cash a/c Dr                               1,350

           bad debts a/c Dr                 1,650

               To Sudhir Kumar                    3,000

     (Being 45 paise recovered out of the total amount due of Rs. 3,000)

 

h) Cash a/c Dr                                7,000

                To Commission                      7,000

(being commission received in advance)

 

Question-30

Posting

Journalise the following transactions, post to the ledger:

2005 Rs.
Nov. 01 Business started with
(i) Cash 1,50,000
(ii) Goods 50,000
Nov. 03 Purchased goods from Harish 30,000
Nov. 05 Sold goods for cash 12,000
Nov. 08 Purchase furniture for cash 5,000
Nov. 10 Cash paid to Harish on account 15,000
Nov. 13 Paid sundry expenses 200
Nov. 15 Cash sales 15,000
Nov. 18 Deposited into bank 5,000
Nov. 20 Drew cash for personal use 1,000
Nov. 22 Cash paid to Harish in full settlement of account 14,700
Nov. 25 Good sold to Nitesh 7,000
Nov. 26 Cartage paid 200
Nov. 27 Rent paid 1,500
Nov. 29 Received cash from Nitesh 6,800
Discount allowed 200
Nov. 30 Salary paid 3,000

Solution:
a) Cash a/c Dr                                  1,50,000

Goods a/c Dr                                          50,000

           To Capital                                             2,00,000

(Being business started with cash of Rs. 1,50,000 and goods worth Rs. 50,000)

 

b) Purchases a/c Dr                              30,000

          To Harish                                          30,000

(Being goods purchased from Harish)

 

d) Cash a/c Dr                                     12,000

         To Sales                                             12,000

(Being goods sold for cash)

 

e) Furniture a/c Dr                                 5,000

        To cash                                               5,000

(being furniture purchased for cash)

 

f) harish a/c Dr                                   15,000

        To cash                                              15,000

(being cash paid to Harish)

 

g) Sundry expenses a/c Dr                       200

        To cash                                               200

(being sundry expenses paid by cash)

 

h) Cash a/ c Dr                                15,000

        To Sales                                          15,000

(Being goods sold on cash)

 

i) Bank a/c Dr                                   5,000

        To Cash                                        5,000

(being cash deposited into bank)

 

j) Drawings a/c Dr                            1,000

       To cash                                           1,000

(Being cash withdrawn for personal use)

 

k) Harish a/c Dr                              15,000

        To cash                                          14,700

        To discount                                         300

(Being cash paid to Harish after discounting Rs. 300)

 

l) Nitesh a/c Dr                               7,000

       To Sales                                        7,000

(being goods sold to Nitesh)

 

m) Cartage a/c Dr                             200

       To cash                                          200

(Being cartage expenses paid by cash)

 

n) Rent a/c Dr                               1,500

      To cash                                          1,500

(being rent paid by cash)

 

o) Cash a/c Dr                              6,800

Discount ac/ Dr                               200

      To Nitesh                                       7,000

(being cash received from Nitesh)

 

p) Salary a/c Dr                           3,000

       To cash                                       3,000

(Being salary paid by cash)

 

Posting in ledger book:

    Cash Account           

Dr.          Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

01.11.05

To Capital

1,50,000

08.11.05

By Furniture

5,000

05.11.05

To Sales

12,000

10.11.05

By Harish

15,000

     

13.11.05

By Sundry Expenses

200

15.11.05

To Sales

15,000

18.11.05

By Bank (C)

5,000

29.11.05

To Nitesh

6,800

20.11.05

By drawings

1,000

     

22.11.05

By harish

14,700

     

26.11.05

By Cartage

200

     

27.11.05

By rent

1,500

     

30.11.05

By Salary

3,000

 

                                                                          Capital Account                                                

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

     

01.11.05

By Cash

1,50,000

 

Bank account

Dr.          Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

18.11.05

To Cash

5,000

     

 

Purchases Account    

Dr.                    Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

03.11.05

To Harish

30,000

     

 

Harish Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

10.11.05

To Cash

15,000

03.11.05

By Purchases

30,000

22.11.05

To Cash

To discount

14,700

300

     

 

Sundry Expenses Account          

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

13.11.05

To Cash

200

     

 

Sales Account             

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

     

05.11.05

By cash

12,000

     

15.11.05

By cash

15,000

 

 

 

07.11.05

By Nitesh

7,000

 

Furniture Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

08.11.05

To Cash

5,000

     

 

Drawings Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

20.11.05

To Cash

1,000

     

 

Discount received Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

     

10.11.05

By Harish

300

 

Nitesh Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

25.11.05

To Sales

7,000

29.11.05

By Cash

By discount allowed

6,800

200

 

Cartage Account

Dr.          Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

26.11.05

To Cash

200

     

 

Rent Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

27.11.05

To Cash

1,500

     

 

Salary Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

30.11.05

To Cash

3,000

     

 

Discount allowed Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

29.11.05

To Nitesh

200

     

 

 

Question-31

Journalise the following transactions is the journal of M/s Goel Brothers and post them to the ledger.
 
2006 Rs.
Jan. 01 Started business with cash 1,65,000
Jan. 02 Open bank account in PNB 80,000
Jan. 04 Goods purchased from Tara 22,000
Jan. 05 Goods purchased for cash 30,000
Jan. 08 Goods sold to Naman 12,000
Jan. 10 Cash paid to tara 22,000
Jan. 15 Cash received from Naman 11,700
Discount allowed 300
Jan. 16 Paid wages 200
Jan. 18 Furniture purchased for office use 5,000
Jan. 20 Withdrawn from bank for personal use 4,000
Jan. 22 Issued cheque for rent 3,000
Jan. 23 Goods issued for house hold purpose 2,000
Jan. 24 Drawn cash from bank for office use 6,000
Jan. 26 Commission received 1,000
Jan. 27 Bank charges 200
Jan. 28 Cheque given for insurance premium 3,000
Jan. 29 Paid salary 7,000
Jan. 30 Cash sales 10,000

Solution:
Journal entries

Jan 01, 06

Cash a/c Dr                               1,65,000

         To Capital                                                      1,65,000

(Being business started with cash)

 

Jan 02, 06

Bank a/c Dr                                  80,000

        To Cash                                                             80,000

(Opened bank account with PNB with cash)

 

Jan 04,06

Purchases a/c Dr                          22,000

       To Tara                                                               22,000

(Being goods purchase from Tara)

 

Jan 05,06

Purchases a/c Dr                          30,000

      To Cash                                                                30,000

(Being goods purchased by cash)

 

Jan 08,06

Naman a/c Dr                              12,000

     To Sales                                                                     12,000

(Being goods sold to Naman)

 

Jan 10, 06

Tara a/c Dr                                  22,000

     To Cash                                                                     22,000

(Being cash paid to Tara)

 

Jan 15, 06

cash a/c Dr                                 11,700

Discount allowed a/c Dr                    300

      To Naman                                                                  12,000

(Being cash received from Naman and discount allowed)

 

Jan 16, 06

Wages a/c Dr                                   200

      To cash                                                                          200

(Being wages paid by cash)

 

Jan 18, 06

Furniture a/c Dr                             5,000

     To cash                                                                      5,000

(Being furniture purchased for office use)

 

Jan 20, 06

Drawings a/c Dr                            4,000

     To cash                                                                       4,000

(being cash withdrawn for personal use)

 

Jan 22, 06

Rent a/c Dr                                  3,000

      To Bank                                                                      3,000

(Being rent paid by cheque)

 

Jan 24, 06

cash a/c Dr                                  6,000

      To Bank                                                                       6,000

(being cash withdrawn from bank for office use)

 

Jan 26, 06

cash a/c Dr                                  1,000

      To commission                                                              1,000

(Being commission received by cash)

 

Jan 27, 06

Bank charges a/c Dr                         200

       To cash                                                                          200

(being bank charges debited)

 

Jan 28, 06

Insurance premium a/c Dr              3,000

        To Bank                                                                      3,000

(being insurance premium paid by cheque)

 

Jan 29, 06

Rent a/c Dr                                   7,000

        To bank                                                                       7,000

(being rent paid by cheque)

 

Jan 30, 06

Cash a/c Dr                                 10,000

        To Sales                                                                     10,000

(being sales done by cash)

 

Posting to ledger

Cash Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

01.01.06

To Capital

1,65,000

02.01.06

By Bank

80,000

15.01.06

To Naman

11,700

05.01.06

By Purchases

30,000

24.01.06

To Bank

6,000

10.01.06

By Tara

22,000

26.01.06

To commission

1,000

16.01.06

By wages

200

30.01.06

To Sales

10,000

18.01.06

By Furniture

5,000

     

20.01.06

By Drawings

4,000

     

27.01.06

By bank charges

200

 

Capital Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

     

01.01.06

By Cash

1,65,000

 

Bank Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

02.01.06

To Cash

80,000

22.01.06

By rent

3,000

     

24.01.06

By cash

6,000

     

28.01.06

By Insurance premium

3,000

     

29.01.06

By rent

7,000

 

Purchases Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

04.01.06

To Tara

22,000

     

05.01.06

To Cash

30,000

     

 

Tara Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

10.01.06

To cash

22,000

04.01.06

By Purchases

22,000

 

Naman Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

08.01.06

To Sales

12,000

15.01.06

By cash

By discount allowed

11,700

300

 

Sales Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

     

08.01.06

By Naman

12,000

     

30.01.06

By cash

10,000

Discount Allowed Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

15.01.06

To naman

300

     

 

Furniture Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

18.01.06

To cash

5,000

     

 

Drawings Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

20.01.06

To Cash

4,000

     

 

Rent Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

22.01.06

To Bank

3,000

     

29.01.06

To Bank

7,000

     

 

Bank Charges

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

27.01.06

To Cash

200

     

 

Insurance Premium

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

28.01.06

To bank

3,000

     

 

Wages Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

16.01.06

To Cash

200

     

 

Commission Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

     

26.01.06

By Cash

1,000

 

Question-32

Journalise the following transaction in the books of Sanjana and post them into the ledger:

January, 2006 Rs.

1. Cash in hand 6,000

Cash at bank 55,000

Stock of goods 40,000

Due to Rohan 6,000

Due from Tarun 10,000

3. Sold goods to Karuna 15,000

4. Cash sales 10,000

6. Goods sold to Heena 5,000

8. Purchased goods from Rupali 30,000

10. Goods returned from Karuna 2,000

14. Cash received from Karuna 13,000

15. Cheque given to Rohan 6,000

16. Cash received from Heena 3,000

20. Cheque received from Tarun 10.000

22. Cheque received from to Heena 2,000

25. Cash given to Rupali 18,000

26. Paid cartage 1,000

27. Paid salary 8,000

28. Cash sale 7,000

29. Cheque given to Rupali 12,000

30. Sanjana took goods for Personal use 4,000

31. Paid General expense 500


Solution:
Journal entries

01.01.06

Cash a/c Dr                         6,000

Bank a/c Dr                        55,000

Stock a/c Dr                       40,000

Tarun a/c Dr                       10,000

To Rohan a/c Dr                    6,000

To capital                           1,05,000

(Being assets and liabilities brought forward)

 

03.01.06

Karuna a/c Dr                      15,000

To Sales                                      15,000

(being goods sold to Karuna)

 

04.01.06

Cash a/c Dr                         10,000

To Sales                                     10,000

(Cash sales recorded)

 

06.01.06

Heena a/c Dr                         5,000

To Sales                                      5,000

(being goods sold to Heena)

 

08.01.06

Purchases a/c Dr                30,000

To Rupali                                   30,000

(being goods purchased from Rupali)

 

10.01.06

Sales return a/c Dr            2,000

To karuna                               2,000

(being goods returned by Karuna)

 

14.01.06

Cash a/c Dr                   13,000

To Karuna                               13,000

(Being cash paid by Karuna)

 

15.01.06

Rohan a/c Dr                 6,000

To Bank                                 6,000

(Being cheque given to Rohan)

 

16.01.06

Cash a/c Dr                 3,000

To heena                              3,000

(Being cash received from Heena)

 

20.01.06

Bank a/c Dr              10,000

To Tarun                            10,000

(Being cheque received from tarun)

 

22.01.06

Bank a/c Dr                2,000

To Heena                           2,000

(being cheque received from Heena)

25.01.06

Rupali a/c Dr            18,000

To cash                              18,000

(being cash given to Rupali)

 

26.01.06

Cartage expenses a/c Dr 1,000

To Cash                   1,000

(being cartage expenses paid by cash)

 

27.01.06

Salary a/c Dr            8,000

To Cash                          8,000

9being salary paid by cash)

 

28.01.06

Cash a/c Dr              7,000

To Sales                         7,000

(being cash sales recorded)

 

29.01.06

Rupali a/c Dr          12,000

To Bank                         12,000

(being cheque given to Rupali)

 

30.01.06

Drawings a/c Dr       4,000

To Sanjana                    4,000

(Being goods taken for personal use)

 

31.01.06

General expense a/c Dr 500

To Cash                           500

(Being general expenses paid by cash)

 

Ledger Posting

Cash Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

01.01.06

To capital

6,000

25.01.06

By Rupali

18,000

04.01.06

To Sales

10,000

26.01.06

By cartage expenses

1,000

14.01.06

To karuna

13,000

27.01.06

By Salary

8,000

16.01.06

To heena

3,000

31.01.06

By general Expenses

500

28.01.06

To Sales

7,000

     

 

Bank Account

Dr.          Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

01.01.06

To Capital

55,000

15.01.06

By Rohan

6,000

20.01.06

To tarun

10,000

29.01.06

By Rupali

12,000

22.01.06

To Heena

2,000

     

 

Stock Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

01.01.06

To Capital

40,000

     

 

Tarun Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

01.01.06

To Capital

10,000

20.01.06

By bank

10,000

 

Rohan Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

15.01.06

To bank

6,000

     

 

Capital Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

     

01.01.06

Cash

6,000

     

01.01.06

Bank

55,000

     

01.01.06

Stock

40,000

     

01.01.06

Tarun

10,000

 

Karuna Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

03.01.06

To Sales

15,000

10.01.06

By Sales Return

2,000

     

14.01.06

By cash

13,000

 

Sales Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

     

03.01.06

By karuna

15,000

     

04.01.06

By cash

10,000

     

06.01.06

By heena

5,000

     

28.01.06

By cash

7,000

 

Heena Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

06.01.06

To Sales

5,000

16.01.06

By Cash

3,000

     

22.01.06

By bank

2,000

 

Purchases Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

08.01.06

To Rupali

30,000

     

 

Rupali Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

25.01.06

To Cash

18,000

08.01.06

By purchases

30,000

29.01.06

To bank

12,000

     

 

Sales return Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

10.01.06

To Karuna

2,000

     

 

Bank Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

01.01.06

To capital

55,000

15.01.06

By Rohan

6,000

20.01.06

To tarun

10,000

29.01.06

By Rupali

12,000

22.01.06

To heena

2,000

     

 

Cartage Expenses Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

26.01.06

To Cash

1,000

     

 

Salary Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

27.01.06

To Cash

1,000

     

 

Drawings Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

30.01.06

To Sanjana

4,000

     

 

Sanjana Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

     

30.01.06

By drawings

4,000

 

General Expenses Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

31.01.06

To cash

500

     

 

Question-33

30. Paid salary to Rishabh 4,000

 


Solution:
01.08.05

cash ac/ Dr                                            1,10,000

          To Capital                                              1,10,000

(Being business started with cash)

 

02.08.05

Bank a/c Dr                                               50,000

         To Cash                                                      50,000

(Being bank account opened with HDFC)

 

03.08.05

Furniture a/c Dr                                         20,000

        To Cash                                                     20,000

(Being furniture purchased for cash)

 

07.08.05

Purchases a/c Dr                                       30,000

         To M/s Rupa Traders                                  30,000

(being goods purchased from m/s Rupa Traders)

 

08.08.05

Purchases a/c Dr                                       42,000

       To M/s Hema traders                                    42,000

(Being goods purchased from M/s hema traders)

 

10.08.05

Cash a/c Dr                                             30,000
       To Sales                                                    30,000

(Being goods sold for cash)

 

14.08.05

M/s Gupta traders a/c Dr                            12,000

      To Sales                                                       12,000

(being goods sold on credit to M/s Gupta Traders)

 

16.08.05

Rent a/c Dr                                                 4,000

      To cash                                                            4,000

(being rent paid by cash)

 

18.08.05

Trade expenses a/c Dr                                   1,000

      To Cash                                                             1,000

(being trade expenses paid by cash)

 

20.08.05

Cash a/c Dr                                                  12,000

   To Gupta traders                                                     12,000

(being cash received from Gupta traders)


22.08.05

Hema traders a/c Dr                                         2,000

     To Purchases return                                                     2,000

(Being goods returned to hema traders)

 

23.08.05

Hema Traders a/c Dr 40,000

    To cash                                                     40,000

(being cash paid to hema traders)

 

25.08.05

Postage stanps a/c Dr                                          100

        To cash                                                                   100

(being postage stamps purchased for cash)

 

30.08.05

Salary a/c Dr                                                   4,000

      To cash                                                                     4,000

(being salary paid to Rishab)

 

Posting in ledger

Cash Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

01.08.05

To Capital

1,10,000

02.08.05

By bank

50,000

10.08.05

To Sales

30,000

03.08.05

By Furniture

20,000

20.08.05

To Gupta traders

12,000

16.08.05

By rent

  4,000

     

18.08.08

By trade expenses

   1,000

     

23.08.05

By hema

40,000

     

25.08.05

By postage stamps

    100

     

30.08.05

By salary

  4,000

 

Capital Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

     

01.08.05

By Cash

1,10,000

 

Bank Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

02.08.05

To Cash

50,000

     

 

Furniture Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

03.08.05

To Cash

20,000

     

 

Purchases Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

07.08.05

To Rupa Traders

30,000

     

08.08.05

To Hema traders

42,000

     

 

M/s Rupa traders

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

     

07.08.05

By purchases

30,000

 

M/ s Hema traders

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

22.08.05

To Purchases returns

2,000

08.08.05

By Purchases

42,000

23.08.05

To Cash

40,000

     

 

M/s Gupta Traders

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

14.08.05

To Sales

12,000

20.08.05

By cash

12,000

 

Sales Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

     

10.08.05

By cash

30,000

     

10.08.05

By M/s Gupta traders

12,000

 

Rent Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

16.08.05

To Cash

4,000

     

 

Trade Expenses Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

18.08.05

To Cash

1,000

     

 

Purchase Return Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

     

22.08.05

By hema

2,000

 

Postage Stamp Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

25.08.05

To Cash

100

     

 

Salary Account

Dr.          Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

30.08.05

To Cash

4,000

     

 

Question-34

31. Office machine purchased for cash 3,000

 


Solution:
Journal entries

01.12.05

Cash a/c Dr                   92,000

     To Capital                             92,000

(Being business started with cash)

 

02.12.05

Bank a/c Dr                  60,000

      To cash                                60,000

(being bank account opened with cash)

 

04.12.05

Purchases a/c Dr          40,000

          To Himani                           40,000

(being goods purchased on credit from Himani)

 

06.12.05

Purchases a/c Dr         20,000

          To Cash                             20,000

(Purchased goods for cash)

 

08.12.05

Himani a/c Dr             4,000

To Purchase return                          4,000

(being goods returned to himani)

 

10.12.05

Cash a/c Dr            20,000

To Sales                                      20,000

(being goods sold for cash)

 

14.12.05

Himani a/c Dr         36,000

To Bank                                      36,000

(being cheque paid to Himani)

 

17.12.05

Goyal traders a/c Dr   35,000

To sales                                    35,000

(being goods sold to Goyal traders)

 

19.12.05

Cash a/c Dr             2,000

To bank                                     2,000

(being cash withdrawn for office use)

 

21.12.05

Sales return a/c Dr    3,500

To Goyal traders                        3,500

(being goods returned to Goyal traders)

 

22.12.05

Bank a/c Dr           20,000

To cash                                 20,000

9being cash deposited into the bank)

 

26.12.05

Bank a/c Dr           31,500

To Goyal                               31,500

(Being cheque received from Goyal)

 

29.12.05

Rent a/c Dr             3,000

To Cash                                 3,000

(being rent paid by cash)

 

30.12.05

Salary a/c Dr           7,000

To Cash                                7,000

(Being salary paid by cash)

 

31.12.05

Machinery a/c Dr    3,000

To cash                               3,000

(being office machinery purchased for cash)

 

Posting to ledger

Cash Account

Dr.          Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

01.12.05

To Capital

92,000

02.12.05

By bank

60,000

10.12.05

To Sales

20,000

06.12.05

By purchases

20,000

19.12.05

To Bank

2,000

22.12.05

By Bank

20,000

     

29.12.05

By rent

3,000

     

30.12.05

By salary

7,000

     

31.12.05

By machinery

3,000

 

Capital Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

     

01.12.05

By cash

92,000

 

Bank Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

02.12.05

To cash

60,000

14.12.05

By himani

36,000

26.12.05

To Goyal

31,500

19.12.05

By cash

2,000

     

22.12.05

By bank

20,000

           

 

Purchases Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

04.12.05

To Himani

40,000

     

06.12.05

To Cash

20,000

     

 

Himani Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

08.12.05

To Purchases return

4,000

04.12.05

By purchases

40,000

14.12.05

To bank

36,000

     

 

Purchases return Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

     

08.12.05

By Himani

4,000

 

Sales Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

     

10.12.05

By cash

20,000

     

17.12.05

By Goyal traders

35,000

 

Goyal traders Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

17.12.05

To Sales

35,000

21.12.05

By Sales return

3,500

     

26.12.05

By bank

31,500

Sales return Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

21.12.05

To Goyal traders

3,500

     

 

Rent Account

Dr.          Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

29.12.05

To cash

3,000

     

 

Salary Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

30.12.05

To Cash

7,000

     

 

Machinery Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

31.12.05

To cash

3,000

     

 

Question-35

 


Solution:
01.12.05

Cash a/c Dr                      2,00,000

        To Capital                           2,00,000

(being business started with cash)

 

02.12.05

Furniture a/c Dr                    30,000

         To Cash                              30,000

(being office furniture bought for cash)

 

03.12.05

Bank a/c Dr                      1,00,000

         To Cash                              1,00,000

(being paid cash into current account)

 

05.12.05

Computer a/c Dr               2,50,000

         To Bank                             2,50,000

(being computer purchased for office use)

06.12.05

Purchases a/c Dr                 60,000

         To Ritika                            60,000

(being goods bought on credit from Ritika)

 

08.12.05

Cash a/c Dr                        30,000

       To Sales                              30,000

(being cash sales recorded)

 

09.12.05

Karishma a/c Dr                 25,000

      To Sales                               25,000

(being goods sold to karishma)

 

12.12.05

Mansi a/c Dr                      30,000

         To Cash                           30,000

(being cash paid to mansi on account)

 

14.12.05

Ritika a/c Dr                      2,000

        To Purchase return             2,000

(being goods returned to Ritika)

 

15.12.05

Stationary a/c Dr                3,000

         To Cash                          3,000

(being stationary paid for cash)

 

16.12.05

Wages a/c Dr                    1,000

        To cash                           1,000

(Being wages paid by cash)

 

18.12.05

Sales return a/c Dr            2,000

        To karishma                    2,000

(being goods returned by karishma)

 

20.12.05

Ritika a/c Dr                 28,000

       To Bank                         28,000

(being cheque paid to Ritika)

 

22.12.05

Cash a/c Dr                15,000

      To Karishma                  15,000

(being cash received from Karishma)

 

24.12.05

Insurance premium a/c Dr 4,000

       To bank                         4,000

(Being insurance premium paid by cheque)

 

26.12.05

Bank a/c Dr                 8,000

       To karishma                 8,000

(being cheque received from karishma)

 

28.12.05

Rent a/c Dr                 3,000

       To bank                      3,000

(being rent paid by cheque)

 

29.12.05

Purchases a/c Dr       20,000

      To meena traders         20,000

(being goods purchased on credit from Meena traders)

 

30.12.05

Cash a/c Dr              14,000

       To Sales                      14,000

(being cash sales recorded)

 

Posting

Cash Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

01.12.05

To capital

2,00,000

02.12.05

By furniture

30,000

08.12.05

To Sales

30,000

03.12.05

By bank

1,00,000

22.12.05

To Karishma

15,000

12.12.05

By mansi

30,000

30.12.05

To Sales

14,000

15.12.05

By Stationary

3,000

     

16.12.05

By wages

1,000

 

Capital Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

     

01.12.05

By Cash

2,00,000

Sales Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

     

08.12.05

By cash

12,000

     

09.12.05

By karishma

25,000

     

30.12.05

By Cash

14,000

 

Bank Account

Dr.         Cr

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

03.12.05

To Cash

1,00,000

20.12.05

By ritika

28,000

26.12.05

To karishma

8,000

24.12.05

By insurance premium

4,000

     

28.12.05

By rent

3,000

 

Purchase return Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

     

14.12.05

By ritika

2,000

 

Sales return Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

18.12.05

To Karishma

2,000

     

 

Purchases Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

06.12.05

To Ritika

60,000

     

29.12.05

To Meena traders

20,000

     

 

Rent Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

28.12.05

To bank

3,000

     

 

Insurance Premium Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

24.12.05

To Bank

4,000

     

 

Ritika Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

14.12.05

To purchase return

2,000

06.12.05

By purchases

60,000

20.12.05

To bank

28,000

     

 

Karishma Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

09.12.05

To Sales

25,000

18.12.05

By Sales return

2,000

     

22.12.05

By cash

15,000

     

26.12.05

By Bank

8,000

 

Wages Account

Dr.         Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

16.12.05

To cash

1,000

     

 

Stationary Account

Dr.          Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

15.12.05

To cash

3,000

     

 

Mansi Account

Dr.          Cr.

Date

Particulars

Amount (Rs)

Date

Particulars

Amount (Rs)

12.12.05

To cash

30,000

     




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