Problems in Foundations of Accounting
Foundations of Accounting
INTRODUCTION TO FINANCIAL ACCOUNTING 1.
Classify the following accounts under Personal, Real and Nominal heads. Stock of Goods, Goodwill, Bank Loan, Furniture and Fixtures, Bank o/d, Cash, Capital, Bank, Drawings and Sachin (Debtor).
2.
Classify the following accounts under Personal, Real and Nominal heads. Prepaid Commission Account, Wages Outstanding Account, Interest Account, Bank Account, Unexpired Insurance Account, Proprietor’s Account, Bad Debts Account, Land and Buildings Account, Goodwill Account and Copyrights Account.
3.
4.
5.
Based on the concept of Accounting equation, you are required to fill the gaps in the following table. S.No
Assets (Rs.)
Liabilities (Rs.)
Capital (Rs.)
1
30,000
8,600
--------
2
66,000
19,800
--------
3
38,600
--------
30,000
4
35,200
--------
28,900
5
--------
10,600
36,400
6
--------
20,300
76,500
Based on the concept of Accounting equation, equation, you are required to fill the gaps in the following table. S.No
Assets (Rs.)
Liabilities Liabilities (Rs.)
Capital (Rs.)
1
28,000
6,600
--------
2
60,000
13,800
--------
3
40,600
--------
32,000
4
37,200
--------
30,900
5
--------
12,600
38,400
6
--------
22,300
78,500
Rakesh had the following transactions: Use Accounting Equation to show their effect on his Assets, Liabilities and Capital. a.
Started business with Rs. 20,000.
b.
Purchases securities for cash Rs. 12,500.
c.
Purchased a building for Rs. 20,000 giving Rs. 10,000 in cash and the balance through a Loan.
d.
Sold securities costing Rs. 5,000 for Rs. 6,500.
e.
Purchased an old car for Rs. 7,800 Cash.
f.
Received cash Rs. 8,600.
g.
Paid cash Rs. 1,000 for loan and Rs. 500 for interest.
h.
Paid cash for household expenses Rs. 500.
i.
Received cash for dividend on securities Rs. 200.
16
6.
Show the Accounting equation on the basis of the following transactions: S. No
Particulars
Amount (Rs.)
1
Mohan commenced business
80,000
2
Withdrew for private use
3
Purchased goods on credit
13,000
4
Purchased goods for cash
9,000
5
Paid wages
6
Paid to creditors
7
Sold goods on credit
8
Sold goods for cash (Cost price was Rs. 3,000)
5,000
9
Purchased Furniture
1,000
1,500
200 9,000 16,000
JOURNAL, LEDGER AND SUBSIDIARY BOOKS 1.
2.
17
Journalize the following transactions and Prepare the Ledger accounts. Date
Particulars
Amount (Rs.)
1-1-07
Business started by Ram
50,000
5-1-07
Opened a bank account
30,000
10-1-07
Purchased goods for cash
15-1-07
Sold goods for cash
10,000
20-1-07
Amount withdrawn from bank
15,000
25-1-07
Purchased goods for cash
30-1-07
Sold goods for cash
5,000
6,000 12,000
Journalize the following transactions and Prepare the Ledger accounts. Date
Particulars
Amount (Rs.)
1-2-07
Business started by Krishna
75,000
3-2-07
Deposited into bank
30,000
7-2-07
Purchased goods for cash
5,000
10-2-07
Goods purchased for cash
6,000
12-2-07
Cash purchases
7,000
15-2-07
Purchases
8,000
18-2-07
Cash withdrawn from bank
15,000
20-2-07
Sold goods for cash
10,000
22-2-07
Goods sold for cash
11,000
25-2-07
Cash sales
12,000
26-2-07
Sales
13,000
28-2-07
Cash withdrawn from bank
2,000
Foundations of Accounting
3.
4.
5.
Journalize the following the transactions and Prepare the Ledger accounts. Date
Particulars
Amount (Rs.)
1-4-07
Business started with a capital
90,000
3-4-07
Deposited into bank
50,000
10-4-07
Purchased goods for cash
10,000
15-4-07
Purchased goods from Arun
11,000
20-4-07
Cash withdrawn from bank
25,000
25-4-07
Sold goods for cash
20,000
30-4-07
Sold goods for Bhargav
22,000
Journalize the following transactions and Prepare the Ledger accounts. Date
Particulars
Amount (Rs.)
1-5-07
Business started with a Capital
75,000
3-5-07
Paid into bank
25,000
5-5-07
Purchased goods for cash
5,000
7-5-07
Sold goods for cash
6,000
10-5-07
Withdrawn from bank
12-5-07
Purchased goods from Suresh
7,000
14-5-07
Sold goods to Ramesh
8,000
16-5-07
Deposited into bank
18-5-07
Purchased goods from Geeta for Cash
20-5-07
Sold goods to Sita for Cash
22-5-07
Withdrawn from Bank
25-5-07
Purchased goods from Govind
11,000
31-5-07
Sold goods to Gopal
12,000
10,000
15,000 9,000 10,000 5,000
Journalize the following transactions and Prepare the Ledger accounts. Date
Particulars
Amount (Rs.)
1-6-07
Business started with a Capital
3-6-07
Purchases goods for cash
5,500
5-6-07
Sold goods for cash
6,500
7-6-07
Purchases returns for cash
500
10-6-07
Sales returns for cash
600
13-6-07
Purchased goods from Manoj
11,100
15-6-07
Sold goods to Sunil
12,200
17-6-07
Goods returned to Manoj
1,000
20-6-07
Goods returned to Sunil
2,000
22-6-07
Purchased goods from Raju for cash
1,01,000
15,500
18
6.
7.
19
Date
Particulars
Amount (Rs.)
25-6-07
Sold goods to Murthy for cash
27-6-07
Goods returned to Raju
1,500
29-6-07
Goods returned by Murthy
2,500
30-6-07
Cash deposited into bank
16,600
50,000
Journalize the following transactions and Prepare the Ledger accounts. Date
Particulars
Amount (Rs.)
1-8-07
Business started by Gopal
60,000
3-8-07
Purchased goods for cash
5,500
6-8-07
Purchased goods by cheque
6,500
10-8-07
Purchased goods from Anand
7,500
12-8-07
Purchased Furniture for cash
8,500
15-8-07
Purchased Type writer by cheque
9,500
18-8-07
Purchased Machinery from Govind
10,500
20-8-07
Sold goods for cash
11,500
22-8-07
Sold goods by cheque
12,500
24-8-07
Sold goods to Eswar
13,500
27-8-07
Sold Land for cash
14,500
29-8-07
Sold Building by cheque
15,500
31-8-07
Sold Furniture to David
16,500
Journalize the following transactions and Prepare the Ledger accounts. Date
Particulars
Amount (Rs.)
1-9-07
Business started by Nithish
70,000
2-9-07
Deposited into bank
30,000
3-9-07
Purchased goods for cash
1,000
4-9-07
Purchased goods by cheque
1,500
5-9-07
Purchased goods from Aravind
2,000
7-9-07
Purchased returns for cash
100
8-9-07
Purchased returns by cheque
200
9-9-07
Purchases returns to Aravind
300
11-9-07
Purchased Machinery For cash
3,000
12-9-07
Purchased Furniture by cheque
4,000
13-9-07
Purchases Type Writer from Godrej ltd
5,000
14-9-07
Withdrawn from bank
16-9-07
Sold goods for cash
6,000
17-9-07
Sold goods by cheque
7,000
1,5000
Foundations of Accounting
8.
9.
Date
Particulars
Amount (Rs.)
18-9-07
Sold goods to Bhargav
20-9-07
Sales returns for cash
500
21-9-07
Sales returns by cheque
600
22-9-07
Sales returns from Bhargav
700
28-9-07
Sold Furniture for cash
5,800
29-9-07
Sold Motor Car by cheque
6,800
30-9-07
Sold Plant to Suresh
7,500
8,000
Journalize the following transactions and Prepare the Ledger Accounts. Date
Particulars
Amount (Rs.)
1-10-07
Business started by Murali
3-10-07
Paid into bank
58,000
6-10-07
Purchased goods from Sanjay
12,000
10-10-07
Sold goods to Vijay
15,000
12-10-07
Purchase returns to Sanjay
1,000
15-10-07
Sales returns from Vijay
1,500
18-10-07
Cash paid to Sanjay
6,000
20-10-07
Cash received from Vijay
5,000
22-10-07
Cheque issued to Sundeep
7,000
23-10-07
Cash paid to Hari
8,000
25-10-07
Cash received from Vamsi
9,000
26-10-07
Cheque received from Sathish
28-10-07
Cash paid to Sanjay, the amount due to him
5,000
31-10-07
Cash received from Vijay, the amount due from him
8,000
1,16,000
10,000
Journalize the following transactions and Prepare the Ledger accounts. Date
Particulars
Amount (Rs.)
1-11-07
Business started by Nagendra
2-11-07
Deposited into bank
3-11-07
Purchased goods for cash
5,000
4-11-07
Purchased goods by cheque
6,000
5-11-07
Purchased goods from Mukesh
7,000
6-11-07
Purchase returns for cash
500
7-11-07
Purchase returns by cheque
600
8-11-07
Purchase returns to Mukesh
700
9-11-07
Purchases Furniture for cash
8,000
10-11-07
Purchased Machinery by cheque
9,000
1,25,000 75,000
20
Date
Particulars
Amount (Rs.)
11-11-07
Purchased Typewriter from Rakesh
10,000
12-11-07
Sold goods for cash
11,000
13-11-07
Sold goods by cheque
12,000
14-11-07
Sold goods to Vipul
13,000
15-11-07
Sales returns for cash
1,000
16-11-07
Sales returns by cheque
2,000
17-11-07
Sales returns from Vipul
3,000
18-11-07
Sold Land for cash
14,000
19-11-07
Sold Building by cheque
15,000
20-11-07
Sold Motor Car to Venkat
16,000
21-11-07
Cash paid to Mukesh
14,000
22-11-07
Cash received from Vipul
5,000
23-11-07
Cheque issued to Rakesh
10,000
24-11-07
Cheque received from Venkat
11,000
25-11-07
Cash paid to Mohan
5,500
26-11-07
Cheque issued to Murali
6,500
27-11-07
Cash received from Radha
7,500
28-11-07
Cheque received from Krishna
8,500
29-11-07
Cash paid to Gopal
9,500
30-11-07
Cash received from Govind
10,500
10. Journalize the following transactions and Prepare the Ledger accounts. Date
21
Particulars
Amount (Rs.)
1-4-07
Paid salaries
2,000
3-4-07
Paid rent to Land lord by cheque
3,000
5-4-07
Paid wages to laborers
2,500
7-4-07
Paid interest to Rakesh
3,500
10-4-07
Paid commission to Rajiv by cheque
4,000
13-4-07
Paid for stationary
15-4-07
Paid insurance by cheque
17-4-07
Paid for postage
22-4-07
Received commission from Arun
2,200
24-4-07
Received interest by cheque
3,300
26-4-07
Received rent from tenant
4,400
28-4-07
Received salaries by cheque
4,400
30-4-07
Received commission by cheque from Murthy
5,500
500 4,500 300
Foundations of Accounting
11. Journalize the following transactions and Prepare the Ledger accounts. Date
Particulars
Amount (Rs.)
1-5-07
Salaries paid in cash
2,100
4-5-07
Wages paid
2,200
6-5-07
Rent paid by cheque
2,300
9-5-07
Interest paid
2,400
11-5-07
Commission paid by cheque
2,500
13-5-07
Postage paid by cheque
2,600
15-5-07
Insurance premium paid by cheque
2,700
18-5-07
Paid for printing
2,800
20-5-07
Paid for advertisement
2,900
22-5-07
Received commission
3,000
23-5-07
Interest received by cheque
3,100
25-5-07
Rent received by cheque
3,200
28-5-07
Paid for repairs
3,300
31-5-07
Paid carriage by cheque
3,400
12. Journalize the following transactions and Prepare the Ledger accounts. Date
Particulars
Amount (Rs.)
1-6-07
Cash with drawn for personal use
5,000
4-6-07
Cheque with drawn for private use
6,000
7-6-07
Goods with drawn for domestic use
7,000
11-6-07
Goods purchased for personal Use
8,000
15-6-07
Rent paid for the residential portion of the proprietor
9,000
18-6-07
Furniture purchased for house hold purpose payment made by cheque
10,000
20-6-07
Son’s college fee paid by cheque
11,000
23-6-07
Bicycle purchased for the proprietor Son
12,000
26-6-07
Jewellery purchased for the Proprietor wife
13,000
30-6-07
Goods withdrawn for personal use
14,000
13. Journalize the following transactions and Prepare the Ledger accounts. Date
Particulars
Amount (Rs.)
1-7-07
Cash withdrawn for personal use
5,500
3-7-07
Cheque withdrawn for domestic use
6,500
6-7-07
Goods withdrawn for private use
7,500
10-7-07
Income Tax paid by cash
8,500
12-7-07
Life Insurance premium paid by cheque
9,500
15-7-07
Goods purchased for private use
10,500
18-7-07
Furniture purchased by cheque for private use
11,500
20-7-07
Rent paid for the Residence of the proprietor by cheque
12,500
22-7-07
Goods withdrawn for personal use
13,500
25-7-07
Goods purchased for private Use
14,500
28-7-07
Son’s college fee paid by Cheque
15,500
31-7-07
Jewellery purchased for proprietor’s wife
16,500
22
14. Journalize the following transactions and Prepare the Ledger accounts. Date
Particulars
Amount (Rs.)
1-8-07
Salaries paid
5,000
3-8-07
Salaries payable
4,000
4-8-07
Rent paid
6,000
7-8-07
Rent payable
3,000
9-8-07
Wages paid
7,000
10-8-07
Wages payable
2,000
11-8-07
Commission received
5,500
13-8-07
Commission receivable
4,500
15-8-07
Interest received
6,500
17-8-07
Interest receivable
3,500
19-8-07
Rent received
7,500
20-8-07
Rent Receivable
2,500
22-8-07
Carriage paid on purchases
4,400
24-8-07
Carriage paid on sales
5,500
26-8-07
Carriage on purchases by cheque
6,600
31-8-07
Carriage paid on Sale by cheque
7,700
15. Journalize the following transactions and Prepare the Ledger accounts. Date
Particulars
Amount (Rs.)
1-9-07
Insurance paid
2,000
3-9-07
Insurance payable
2,500
5-9-07
Commission received
3,000
7-9-07
Commission receivable
3,500
10-9-07
Wages paid by cheque
4,000
12-9-07
Wages payable
4,500
15-9-07
Commission received by cheque
5,000
16-9-07
Commission receivable
5,500
18-9-07
Carriage paid on purchases
6,000
20-9-07
Carriage paid on sales
6,500
22-9-07
Salaries paid by cheque
7,000
23-9-07
Salaries payable
7,500
26-9-07
Rent received
8,000
27-9-07
Rent receivable
8,500
29-9-07
Carriage paid on purchases by cheque
9,000
30-9-07
Carriage paid on sales by cheque
9,500
16. Journalize the following transactions and Prepare the Ledger accounts. Date
23
Particulars
Amount (Rs.)
1-9-07
Insurance paid
2,000
3-9-07
Insurance payable
2,500
5-9-07
Commission received
3,000
Foundations of Accounting
7-9-07
Commission receivable
3,500
10-9-07
Wages paid by cheque
4,000
12-9-07
Wages payable
4,500
15-9-07
Commission received by cheque
5,000
16-9-07
Commission receivable
5,500
18-9-07
Carriage paid on purchases
6,000
20-9-07
Carriage paid on sales
6,500
22-9-07
Salaries paid by cheque
7,000
23-9-07
Salaries payable
7,500
26-9-07
Rent received
8,000
27-9-07
Rent receivable
8,500
29-9-07
Carriage paid on purchases by cheque
9,000
30-9-07
Carriage paid on sales by cheque
9,500
17. Journalize the following transactions and Prepare the Ledger accounts. Date
Particulars
1-12-07
Business started by Nagendra with cash Rs. 50,000 and with Furniture Rs. 25,000.
5-12-07
Paid into bank Rs. 20,000.
10-12-07
Purchased goods from Sreekanth for Rs. 10,000, of which Rs. 4,000 paid in cash.
15-12-07
Purchased goods from Krishnakanth for Rs. 15,000 of which Rs. 7,000 paid in cash and Rs. 8,000 paid by cheque.
20-12-07
Purchased from Sasikanth Rs. 20,000 of which Rs. 12,000 paid by cheque.
23-12-07
Sold goods to Hari Rs. 12,000 of which Rs. 7,000 received in cash.
26-12-07
Sold goods to Giri Rs. 18,000 of which Rs. 10,000 received by cheque.
31-12-07
Sold goods to Suri Rs. 22,000 of which Rs. 11,000 received in cash and Rs. 11,000 by cheque.
18. Journalize the following transactions and Prepare the Ledger accounts. Date
Particulars
1-1-08
Business started by Murthy with cash Rs. 40,000, with Furniture Rs. 50,000 and with Machinery Rs. 60,000.
4-1-08
Purchased goods from Suresh Rs. 10,000 of which Rs. 3,500 paid in cash.
8-1-08
Purchased goods from Ramesh Rs. 11,000 of which Rs. 5,000 paid by cheque.
11-1-08
Purchases goods from Kamesh Rs. 12,000 of which Rs. 7,000 paid by cash and the balance paid by cheque.
14-1-08
Purchased goods from Mukesh Rs. 15,000 of which Rs. 5,000 paid in cash and Rs. 5,000 by cheque.
18-1-08
Sold goods to Avinash Rs. 16,000, of which Rs. 9,000 received in Cash.
22-1-08
Sold goods to Nithish Rs. 17,000, of which Rs.8,000 received by Cheque.
26-1-08
Sold goods to Mallesh Rs. 18,000, of which Rs. 10,000 received by cash and Rs. 8,000 by cheque.
31-1-08
Sold goods to Suresh Rs. 21,000, of which Rs. 7,000 received in cash and Rs. 7,000 by cheque.
24
19. Journalize the following transactions and Prepare the Ledger accounts. Date
Particulars
1-2-07
Purchased goods from Sundeep Rs. 10,000.
4-2-07
Sold goods to Pradeep Rs. 15,000.
6-2-07
Goods returned to Sundeep Rs. 1,000.
9-2-07
Goods returned by Pradeep Rs. 1,500.
10-2-07
Cash paid to Sundeep Rs. 4,000.
12-2-07
Cash received from Pradeep Rs. 3,500.
15-2-07
Cash paid to Sundeep Rs. 4,600 infullsettlement of his account.
17-2-07
Cash received from Pradeep Rs. 9,800 infullsettlement of his account.
20-2-07
Cash paid to Rakesh Rs. 6,700 infullsettlement of Rs. 7,000.
23-2-07
Cheque received from Sanjay Rs. 5,900 infullsettlement of Rs. 6,000.
26-2-07
Venkat became insolvent and Rs. 0.50 in a Rupee received from him for the total amount of Rs. 9,000.
28-2-07
Suresh became insolvent and Rs. 0.40 in a Rupee received from his estate for the total amount of Rs. 10,000.
20. Journalize the following transactions and Prepare the Ledger accounts. Date
Particulars
1-3-07
Purchased goods from Madhuri for Rs. 10,000.
3-3-07
Sold goods to lakshmi Rs. 12,000.
5-3-07
Purchased goods from Anitha for Rs. 15,000.
7-3-07
Sold goods to Sudha for Rs. 18,000.
10-3-07
Purchased goods from Radha for Rs. 20,000.
12-3-07
Cash paid to Madhuri for Rs. 9,750 infullsettlement of account.
15-3-07
Cash received from Lakshmi for Rs. 11,600 infullsettlement of her account.
18-3-07
Cheque issued to Anitha Rs. 14,500 infullsettlement of her account.
20-3-07
Cheque received from Sudha for Rs. 17,400 infullsettlement of her account.
22-3-07
Cash Rs. 10,000 and cheque for Rs. 9,000 paid to Radha infullsettlement of her account.
25-3-07
Sold goods to Manju for Rs. 22,000.
27-3-07
Manju became insolvent and received Rs. 0.25 in a Rupee from her.
29-3-07
Cash Rs. 2,000 and cheque for Rs. 2,400 received from Geetha infullsettlement of Rs. 4,500.
31-3-07
Swetha became insolvent and Rs. 0.60 in a Rupee received from her for the total of Rs. 5,000.
21. Journalize the following transactions and Prepare the Ledger accounts. Date
25
Particulars
1-1-08
Business started by Murthy with cash Rs. 40,000, with Furniture Rs. 50,000 and with Machinery Rs. 60,000.
4-1-08
Purchased goods from Suresh Rs. 10,000 of which Rs. 3,500 paid in cash.
8-1-08
Purchased goods from Ramesh Rs. 11,000 of which Rs. 5,000 paid by cheque.
Foundations of Accounting
Date
Particulars
11-1-08
Purchases goods from Kamesh Rs. 12,000 of which Rs. 7,000 paid by cash and the balance paid by cheque.
14-1-08
Purchased goods from Mukesh Rs. 15,000 of which Rs. 5,000 paid in cash and Rs. 5,000 by cheque.
18-1-08
Sold goods to Avinash Rs. 16,000, of which Rs. 9,000 received in cash.
22-1-08
Sold goods to Nithish Rs. 17,000, of which Rs.8,000 received by cheque.
26-1-08
Sold goods to Mallesh Rs. 18,000, of which Rs. 10,000 received by cash and Rs. 8,000 by cheque.
31-1-08
Sold goods to Suresh Rs. 21,000, of which Rs. 7,000 received in cash and Rs. 7,000 by cheque.
22. Journalize the following transactions and Prepare the Ledger accounts. Date
Particulars
1-10-07
Purchased goods from Raju Rs. 10,000, Trade Discount-10%.
3-10-07
Sold goods to Murthy Rs. 20,000 Trade Discount-5%.
6-10-07
Purchased Horse by cheque Rs. 12,000.
10-10-07
Purchased shares in Reliance Rs. 15,000 and payment made by cheque.
12-10-07
Purchased goods from Suresh Rs. 16,000, Trade Discount-10%.
15-10-07
Sold goods to Ramesh Rs. 18,000, Trade Discount-6%.
18-10-07
Purchased the Horse for Rs. 8,000.
20-10-07
Purchased shares in Satyam Computers and payment made by cheque Rs. 13,000.
22-10-07
Purchased Government bonds Rs. 14,000.
24-10-07
Purchased goods from Ravi Rs. 22,000, Trade Discount-10% of which 50% paid in cash at a cash discount of 10%.
26-10-07
Sold goods to giri Rs. 10,000, Trade Discount-10% of which received in cash at a cash discount of 10%.
31-10-07
Purchased goods from Kiran Rs. 5,000, Trade Discount-10%, cash Paid are a discount of 10%.
23. Journalize the following transactions and Prepare the Ledger accounts. Date
Particulars
1-11-07
Depreciation on Furniture for Rs. 5,000.
3-11-07
Depreciation on Machinery at 10% on Rs. 1, 00,000.
7-11-07
Interest on Capital Rs. 3,000.
10-11-07
Interest on Drawings Rs. 1,000.
24. Write the Opening entry for the following on 1-12-2007. Particulars Debit Balances: Cash in Hand-Rs. 1,000, Cash at Bank-Rs. 5,000, Furniture-Rs. 15,000, Machinery-Rs. 50,000, Ajay-Rs. 10,000, Vijay-Rs. 12,000, Kumar-Rs. 15,000. Credit Balances: Radha-Rs. 10,000, Krishna-Rs. 13,000, Gopi-Rs. 9,000, Bank Overdraft (OD)-Rs. 6,000.
26
25. Write the Opening entry for the following on 1-1-2008. Particulars Debit Balances: Cash in Hand-Rs. 1,500, Cash at Bank-Rs. 2,000, Furniture-Rs.5, 000, Plant-Rs. 20,000, Debtors: Suresh-Rs. 6,000, Ramesh-Rs. 7,000, Harish-Rs. 8,000. Credit Balances: Loan from Bank-Rs. 10,000, Creditors: Hari-Rs.5,000, Giri-Rs. 4,000, Suri -Rs. 3,000-CapitalRs. 40,000.
26. Pass the Journal Entries for the information and transactions. Particulars Debit Balances: On 1-2-08 Cash in Hand-Rs. 2,000, Cash at Bank-Rs. 3,000, Furniture and Fixtures-Rs.40, 000, Plant and Machinery-Rs. 30,000, Debtors: Arun -Rs. 10,000, Bhargav-Rs. 11,000, Krishna-Rs. 12,000. Credit Balances: On 1-2-08 Creditors: Lokesh-Rs.8,000, Mukesh-Rs. 9,000, Nithish -Rs. 10,000-, Loan-Rs. 15,000, Bank o/d-Rs. 12,000 Capital (Balancing Figure). Date
27.
Particulars
3-2-08
Purchased goods from Ravi Rs. 10,000, Trade Discount-10%.
6-2-08
Sold goods to Sunil Rs. 20,000, Trade Discount-7%.
10-2-08
Purchased goods from Gopi Rs. 30,000, Trade Discount-10%, cash paid at a Cash Discount-10%.
12-2-08
Sold goods to Govind Rs. 40,000, Trade Discount-10%, cash received at a Cash Discount-10%.
15-2-08
Depreciation on Machinery-Rs. 6,000.
18-2-08
Depreciation on Furniture-Rs. 7,000.
20-2-08
Interest on Capital-Rs. 9,000.
22-2-08
Interest on Drawings-Rs. 1,500.
25-2-08
Horse purchased by Cheque-Rs. 10,000.
27-2-08
Shares purchased in a Company-Rs. 12,000.
29-2-08
Purchased government bond by Cheque-Rs. 15,000.
Anand Raj was carrying on business as general merchant on 1-March-2007 his assets and liabilities were as under Assets: Furniture-Rs. 8,000, Stock-Rs. 35,000, Bank-Rs.14,000, Cash-Rs. 1,000, Vijay-Rs. 2,500,
Gopal-Rs. 2,500 and Govind-Rs. 2,000. Liabilities: Due to Laxman-Rs. 9,000, Due to Vasanth-Rs. 6,000.
His Transactions were as follows, after passing the opening entry, pass journal entries for the following transaction.
Date
27
Particulars
2-3-07
Additional capital brought into the business Rs. 50,000.
3-3-07
Cash deposited into bank Rs. 25,000.
4-3-07
Purchased goods for cash Rs. 10,000.
Foundations of Accounting
Date
Particulars
5-3-07
Purchased goods from Kumar Rs. 11,000.
6-3-07
Purchased goods by cheque Rs. 12,000.
7-3-07
Purchased goods from Vasanth for cash Rs. 13,000.
8-3-07
Purchased goods from Raju for Rs. 30,000, for which Rs. 10,000 paid in cash and Rs.10,000 by cheque.
9-3-07
Purchases returns for cash Rs. 1,000.
10-3-07
Purchases returns to Kumar Rs. 1,100.
11-3-07
Purchases returns by cheque Rs. 1,200.
12-3-07
Purchases returns to Vasanth Rs. 1,300.
13-3-07
Purchased furniture for cash Rs. 15,000.
14-3-07
Purchased Machinery by cheque Rs. 16,000.
15-3-07
Purchased Land from Srikanth Rs. 17,000.
16-3-07
Purchased Typewriter from Godrej Ltd by cheque Rs. 18,000.
17-3-07
Sold goods for cash for Rs. 20,000.
18-3-07
Sold goods by cheque Rs. 21,000.
19-3-07
Sold goods to Gopal Rs. 22,000.
20-3-07
Sold goods to Govind for cash Rs. 23,000.
21-3-07
Sold goods to Kiran for Rs. 45,000 of which Rs. 15,000 received in cash, Rs. 15,000 by cheque.
22-3-07
Sales returns for cash Rs. 2,000.
23-3-07
Sales returns by cheque Rs. 2,100.
24-3-07
Sales returns by Gopal Rs. 2,200.
25-3-07
Sales returns from Govind Rs. 2,300.
26-3-07
Sold Plant for cash Rs. 25,000.
27-3-07
Sold Motor Car by cheque Rs. 26,000.
28-3-07
Sold Machinery to Lokesh Rs. 27,000.
29-3-07
Sold Furniture to Ajith for cash Rs. 28,000.
30-3-07
Cash paid to Kumar Rs.6,000.
31-3-07
Cheque issued to Srikanth Rs.7,000.
1-4-07
Cash received from Gopal Rs. 8,000.
2-4-07
Cheque received from Lokesh Rs. 9,000.
3-4-07
Cash paid Anand-Rs.9,400 infullsettlement of Rs.10,000.
4-4-07
Cheque issued to Prasad for Rs. 4,500 infullsettlement of Rs. 5,000.
5-4-07
Cash received from Sathish Rs. 7,900 infullsettlement of Rs. 8,200.
28
Date
29
Particulars
6-4-07
Cheque received from Mohan for Rs. 9,250 infullsettlement of Rs. 9,500.
7-4-07
Vamsi became insolvent and Rs. 0.50 in a Rupee received from him for the total amount of Rs.10,000.
8-4-07
Krishna became insolvent and Rs. 0.30 in a Rupee received from his estate for the total amount of Rs. 5,000.
9-4-07
Salaries paid Rs. 2,000
10-4-07
Salaries payable Rs. 3,000
11-4-07
Rent paid by cheque Rs.4,000
12-4-07
Rent payable Rs. 5,000
13-4-07
Interest paid by cash Rs. 2,000 and paid by cheque Rs. 3,000.
14-4-07
Commission received Rs. 6,000.
15-4-07
Commission receivable Rs. 7,000.
16-4-07
Interest received by cheque Rs. 8,000.
17-4-07
Interest receivable Rs. 9,000.
18-4-07
Rent received by cash Rs. 4,000, received by cheque Rs. 6,000.
19-4-07
Wages paid to Rakesh Rs. 1,000.
20-4-07
Carriage paid to Rajendra by cheque Rs.2,000.
21-4-07
Interest received from Geetha Rs. 3,000.
22-4-07
Salaries received from Sita by cheque Rs. 4,000.
23-4-07
Cash withdrawn for personal use Rs. 5,500.
24-4-07
Cheque withdrawn for private use Rs. 6,500.
25-4-07
Goods withdrawn for domestic use Rs. 7,500.
26-4-07
Goods purchased for Personal Use Rs. 8,500.
27-4-07
Income tax paid in cash Rs. 9,500.
28-4-07
Life Insurance premium paid by cheque Rs. 10,500.
29-4-07
Jewellery purchased for the proprietor’s wife Rs. 11,500.
30-4-07
Proprietor’s son college fee paid by cheque Rs.12,500.
1-5-07
Bi-cycle purchased for the proprietor son Rs. 13,500.
2-5-07
Purchased goods from Rajiv Rs. 10,000, Trade Discount-10%.
3-5-07
Purchased goods from Sanjay Rs. 20,000, Trade Discount-10%, cash paid at a Cash Discount-10%.
4-5-07
Sold goods to Manoj Rs. 20,000, Trade Discount-5%.
5-5-07
Sold goods to Ajay Rs. 10,000, Trade Discount-10% of which received in cash at a cash discount-5%.
Foundations of Accounting
Date
Particulars
6-5-07
Purchased Horse by cheque Rs. 20,000.
7-5-07
Purchased shares in Reliance Company Rs. 18,000 and payment made by cheque.
8-5-07
Purchased Government bonds Rs. 16,000.
9-5-07
Depreciation on Furniture Rs. 4,000.
10-5-07
Depreciation on Machinery at 10% on Rs. 50,000.
11-5-07
Interest on Capital Rs. 6,000.
12-5-07
Interest on Drawings Rs. 2,500.
13-5-07
Carriage paid on purchases Rs. 3,500.
14-5-07
Carriage paid in sales by cheque Rs. 4,500.
15-5-07
Purchased machinery for Rs. 20,000 and payment made by cheque.
16-5-07
Carriage paid on the above machinery Rs. 6,000.
17-5-07
Wages paid for the installation of above machinery Rs. 4,000.
18-5-07
Loan taken from Ravi Rs. 11,000.
19-5-07
Loan taken from Kavi Rs. 12,000 by cheque.
20-5-07
Loan given to Hari Rs. 13,000.
21-5-07
Loan given to Giri Rs. 14,000 by cheque.
22-5-07
House hold furniture brought into the business Rs. 15,000.
23-5-07
Cash withdrawn from bank Rs. 14,500.
24-5-07
Received Rs. 600 from Gowri which was return of previously as Bad debts.
25-5-07
Received Rs. 425 from Kiran whose account was return of as Bad previously by cheque.
SUBSIDIARY BOOKS
1.
In the Books of Rani, Prepare a Single column cash book for the month of February- 2008. Date
Particulars
Amount (Rs.)
1-02-08
Cash in hand
10,200
3-02-08
Cash sales
11,200
5-02-08
Received from Pawan
7-02-08
Paid into bank
10-02-08
Paid for postage
400
12-12-08
Paid for wages
200
15-12-08
Interest received
400
20-12-08
Drawn from bank
4,400
25-12-08
Cash purchases
6,000
27-12-08
Cash sales
4,800
1,600 20,000
30
2.
28-12-08
Received from Rajesh
2,200
29-12-08
Drawn for personal use
1,800
30-12-08
Deposited into bank
4,400
From the following particulars, Prepare a Single column cash book in the books of Ram Chandra Rao for the month of December 2007. Date
3.
Particulars
1-12-07
Cash in hand
4,000
2-12-07
Received from Dinesh
2,400
4-12-07
Paid to Sunil
400
6-12-07
Cash purchases
200
8-12-07
Carriage paid
10-12-07
Cash sales
300
15-12-07
Payment for advertisement
100
12-12-07
Received from Panduranga
700
14-12-07
Cash sales
400
18-12-07
Cash purchases
700
20-12-07
Furniture purchased
200
23-12-07
Cash sales
400
25-12-07
Withdrawn for personal use
100
28-12-07
Paid to singh
300
29-12-07
Paid for storage
30-12-07
Salaries paid
30-12-07
Rent paid
20
40 150 80
In the Books of Abhiram, Prepare a Single column cash book for the month of November-2007. Date
31
Amount (Rs.)
Particulars
Amount (Rs.)
1-11-07
Started business with a capital
50,000
2-11-07
Deposited into bank
40,000
4-11-07
Goods purchased for cash
2,400
6-11-07
Goods sold for cash
4,000
7-11-07
Payment for stationery
9-11-07
Received from Shashi
2,250
13-11-07
Payment to Gopal
1,050
15-11-07
Purchased Office furniture
1,250
17-11-07
Payment for advertisement
800
21-11-07
Received cash from Rakesh
3,000
23-11-07
Purchased goods from Siva for cash
1,800
150
Foundations of Accounting
4.
27-11-07
Amount drawn for personal use
700
29-11-07
Salaries for Office staff
900
30-11-07
Received cash from Krishna
31-11-07
Payment to Landlord
600
Record the following transactions in the books of Ramlal for the month of October-2007 in the form of Two column cash book. Date
5.
4,400
Particulars
Amount (Rs.)
1-10-07
Commenced Business with a capital
20,000
2-10-07
Cash sales
8,000
4-10-07
Purchased goods
6,000
6-10-07
Sold goods to Radha on credit
2,400
9-10-07
Cash received from Prasad infullsettlement of Rs. 6,000.
5,800
10-10-07
Cash paid to Hari infullsettlement of Rs. 2,200
1,800
12-10-07
Cash withdrawn for personal use
14-10-07
Cash withdrawn for office use
1,000
15-10-07
Cash deposited into bank
4,000
17-10-07
Interest received from Rakesh
3,000
18-10-07
Commission paid to Sanjay
1,800
20-10-07
Cash received from Geetha and Discount Allowed Rs. 200
2,000
22-10-07
Cash paid to Seetha and Discount Received Rs. 100
2,100
24-10-07
Cash sales
26-10-07
Cash purchases
8,000
27-10-07
Office rent
1,500
29-10-07
Paid salaries
800
30-10-07
Paid wages
200
31-10-07
Purchased stationary
300
800
10,000
In the books of Ananthasri, Prepare a Two column cash book for the month of September-2007. Date
Particulars
Amount (Rs.)
1-9-07
Opening balance of cash
6,000
3-9-07
Cash purchases
1,600
5-9-07
Paid to Guruprasad and Discount received Rs. 80
1,520
7-9-07
Cash sales
2,000
9-9-07
Cash received from Murugesh Discount allowed Rs. 80
3,920
11-9-07
Cash received from Naresh and Discount allowed Rs. 60
1,940
15-9-07
Paid to Amarnath and Discount received Rs. 60
1,760
16-9-07
Received commission
2,200
17-9-07
Received from Narendra
4,000
18-9-07
Wages paid
1,000
20-9-07
Cash received from Shankar + and Discount allowed Rs. 20.
980
32
6.
23-9-07
Purchased stationary
26-9-07
Deposited into bank
1,200
28-9-07
Payment made to Singh and Discount received Rs. 40
1,560
30-9-07
Rent paid
1,600
30-9-07
Salaries paid
1,800
In the books of Ramsita, Prepare a Two column cash book for the month of August-2007. Date
7.
Particulars
Amount (Rs.)
1-8-07
Cash balance in hand
4,400
3-8-07
Cash sales
5,000
5-8-07
Cash purchases
2,400
6-8-07
Payment made to Manoj and Discount received Rs. 20.
1,380
9-8-07
Received from Anirudh and Discount allowed Rs. 100.
2,900
11-8-07
Commission received
2,800
13-8-07
Interest received
1,000
15-8-07
Received from Gopal infullsettlement of Rs. 5,000.
4,800
18-8-07
Payment made to Govardhan infullsettlement of Rs. 3,000
2,900
20-8-07
Rent received
3,200
22-8-07
Postal charges
400
25-8-07
Salaries paid
27-8-07
Wages paid
29-8-07
Withdrawn from bank
2,400
30-8-07
Deposited into bank
1,800
2,000 600
In the books of Varma and Co, Prepare a Three column cash book for the month of July-2007. Date
33
400
Particulars
Amount (Rs.)
1-7-07
Cash balance
820
1-7-07
Bank balance
17,840
2-7-07
Sales for cash
9,000
3-7-07
Deposited into bank
8,000
5-7-07
Stationery purchases
200
8-7-07
Payment to Madhu by cheque and Discount received Rs. 40
560
12-7-07
Gave a cheque for cash purchases
3,000
15-7-07
Drew for personal use
1,000
18-7-07
Received from Sundeep, a cheque infullsettlement of Rs. 4,000
3,940
20-7-07
Withdrawn from bank
2,000
21-7-07
Payment of wages
25-7-07
Sundeep cheque dishonored and returned from the bank
31-7-07
Pass book shows the bank charges
200 20
Foundations of Accounting
8.
In the books of Das and Co, Prepare a cash book, having cash, bank and discount columns for the month of June-2007. Date
9.
Particulars
Amount (Rs.)
1-6-07
Opening balance of cash in hand
10,800
1-6-07
Opening bank balance
2,950
2-6-07
Cheque was issued to Suri and received a discount of Rs. 300.
1,700
3-6-07
Payment of salaries
2,300
5-6-07
Investments sold and received the cash for Rs. 9,800 out of which Rs. 2,500 was deposited into bank.
6-6-07
Received in the form of cheque from Vikrant Rs. 1,550 infullsettlement of his account for Rs. 1,900.
9-6-07
Received from Nandu Rs. 2,300 and discount allowed Rs. 100.
10-6-07
Withdrew for personal use by cheque
11-6-07
Pass book balance of bank charges
14-6-07
Sumanth paid an interest to Das and Co.
16-6-07
Sale of goods
18-6-07
Collection of dividends by bank purchased from Rajesh
20-6-07
Payment of rent
350 20 280 14,000 4,800 800
Prepare a Three column cash book in the books of Pawan Kumar for the Month of May-2007. Date
Particulars
Amount (Rs.)
1-5-07
Cash in hand
10,748
1-5-07
Bank balance
30,980
3-5-07
Goods sold for cash
12,800
5-5-07
Deposited into bank
14,000
6-5-07
Cheque received from Sathish
8-5-07
Deposited the cheque from Sathish into bank
10-5-07
Payment made to Ankit cheque Rs. 1,960 and Discount allowed Rs. 40.
12-5-07
Goods purchased for cash
14-5-07
Withdrawn from bank for Official purposes
15-5-07
Received a cheque from Lokesh for Rs. 1,900 and Discount allowed Rs. 100.
18-5-07
Goods sold for cash
19-5-07
Cheque from Lokesh and the cash of Rs. 8,000 was deposited into bank.
21-5-07
Payment for stationery
23-5-07
Commission paid to Rakesh
25-5-07
Received a cheque for Rs. 2,000 from Manohar and deposited the same into Bank.
27-5-07
Lokesh cheque dishonored
1,400
5,000 10,000
15,000
240 1,000
34
29-5-07
Withdrawn through cheque for personal use.
30-5-07
Payment of salaries by cheque Rs. 3,000 and by cash Rs. 1,000.
31-5-07
As per the pass book, the bank charges are Rs. 40 and insurance premium Rs. 1,040.
1,600
10. In the Books of Nirmala and Co, make out a Cash Book with Cash, Bank and Discount Columns for the Month of April-2007. Date
Particulars
Amount (Rs.)
1-4-07
Opening balance of cash in hand
600
1-4-07
Bank Over draft
900
1-4-07
Payment of salaries for the month of March
500
2-4-07
Goods purchased for cash
2-4-07
Sold goods for cash
160
3-4-07
A cheque was issued in favour of Kamesh and Co in the settlement of his account for Rs. 540.
520
4-4-07
Received cash from Dhruva and Co and Discount allowed for Rs. 30.
270
5-4-07
Chandu Bros issues a cheque infullsettlement of Rs. 400.
380
5-4-07
Deposited into bank.
400
5-4-07
A Cheque was issued for Ranga Bros for the purchase of Furniture.
300
6-4-07
Cheque from Chandu Bros dishonored and Bank debits in respect of charges.
6-4-07
Payment of rent by cheque
200
6-4-07
Collection of interest on securities by bank.
300
60
4
11. Narayan Owed Rs. 5,600 to the bank and had a cash balance of Rs. 920 on hand on 1-3-07. Prepare a Three columnar cash book. Date
Particulars
2-3-07
Withdrawn cash for office use Rs. 3,200 and paid wages for Rs. 2,000.
7-3-07
Sold goods for cash Rs. 800 and purchased goods for Rs. 600.
9-3-07
Amit issued a cheque for Rs. 2,700 infullsettlement of his account for Rs. 2,800 and deposited the same into bank.
11-3-07
Issued a cheque to Rana Deep for Rs. 1,780 infullsettlement of Rs. 1,800.
15-3-07
Amount from the sale of old news papers Rs. 430.
17-3-07
Purchased bicycle by cheque for Rs. 2,300 and payment of Municipal taxes for Rs. 400 by cash.
18-3-07
Amit cheque was dishonored and the bank has charged Rs. 10 towards the same.
20-3-07
Another cheque was issued by Amit for the total amount including bank charges.
21-3-07
The above cheque was deposited into bank.
12. In the Books of Rajdeep, Record the following transactions in the cash book on 14-02-2007 and balance the same. S.No
1.
35
Particulars
Balance at the beginning of the day:
Foundations of Accounting
S.No
Particulars
Cash –Rs. 300. AXIS bank-Rs. 50,000. HDFC bank(Overdraft)-Rs. 6,000 2.
Rama Chandra and Bros has issued a issued a cheque of Rs. 10,700 infullsettlement of invoice for 11,000. The cheque was deposited in HDFC bank, who charged Rs. 6 towards collection charges.
3.
Cash purchases of Rs. 20,000, paid the bearer cheque on AXIS bank.
4.
Amount of Rs. 10,000 transferred from AXIS Bank to HDFC bank.
5.
Withdrew Rs. 10,000 from AXIS Bank, Rs. 6,000 for office use and Rs. 4,000 for personal use.
6.
Advance salary was paid to manager Rs. 2,000 by bearer cheque on HDFC bank.
13. Enter the following transactions in the Petty cash book for the month of January-2008. Date
Particulars
1-1-08
Cash received from the chief cashier Rs. 300.
7-1-08
Postal stamps Rs. 80.
10-1-08
Stationery Rs. 32.
15-1-08
Carriage Rs. 16.
20-1-08
Auto fair to salesman Rs. 20.
22-1-08
Telegrams Rs. 25.
27-1-08
Tea to customers Rs. 15.
30-1-08
Stationery Rs. 36.
14. Prepare a columnar Petty cash book on Imprest system from the following particulars. Date
Particulars
1-2-08
Received for petty cash payment Rs. 2,000.
3-2-08
Paid for postage Rs. 120.
4-2-08
Paid for stationery Rs. 70.
6-2-08
Paid for advertisement Rs. 300.
7-2-08
Paid for wages Rs. 60.
9-2-08
Paid for carriage Rs. 50.
10-2-08
Paid for conveyance Rs. 200.
12-2-08
Paid for traveling expenses Rs. 400.
13-2-08
Paid for postage Rs. 80.
15-2-08
Paid for wages Rs. 90.
28-2-08
Paid for telegrams Rs. 50.
15. From the following transactions, Prepare Purchases book and the Ledger account. Date
Particulars
1-1-07
Purchased goods from Rakesh Rs. 10,000
5-1-07
Purchased goods for cash Rs. 12,000
10-1-07
Purchased goods from Sanjay Kumar Rs. 14,000
15-1-07
Purchased goods by cheque Rs. 16,000
20-1-07
Purchased goods from Murari Rs. 18,000
36
25-1-07
Purchases Furniture for cash Rs. 20,000
28-1-07
Purchased Machinery on credit Rs. 22,000
31-1-07
Purchased goods from Rakesh Rs. 24,000
16. In the books of Prasad and Co, Prepare purchases and purchases return books and the Ledger accounts. Date
Particulars
1-2-07
Purchased goods form Subbu Rs. 10,000.
3-2-07
Purchased goods from Sailesh Rs. 12,000.
6-2-07
Purchased goods from Pandu for cash Rs. 14,000.
10-2-07
Purchased goods from Gowri by cheque Rs. 16,000.
12-2-07
Purchased goods for cash Rs. 18,000.
15-2-07
Purchased furniture from Ramesh on credit Rs. 20,000.
17-2-07
Purchases returns to Subbu Rs. 1000.
19-2-07
Purchases returns to Sailesh Rs. 1,200.
21-2-07
Purchases returns to Pandu Rs. 1,400.
23-2-07
Purchases returns to Gowri Rs. 1,600.
25-2-07
Purchases returns for cash Rs. 1,800.
26-2-07
Purchased goods from Subbu Rs. 24,000 Trade Discount-10%.
27-2-07
Purchased goods from sailesh Rs. 26,000 Trade Discount-10%.
28-2-07
Purchased goods from suresh for cash Rs. 30,000.
17. From the following transactions, Prepare the Sales book and Ledger account. Date
Particulars
1-1-06
Sold goods to Rakesh Rs. 20,000
5-1-06
Sold goods for cash Rs. 24,000
10-1-06
Sold goods to Sanjay Kumar Rs. 28,000
15-1-06
Sold goods and a cheque was received for Rs. 32,000
20-1-06
Sold goods to Murari Rs. 36,000
25-1-06
Sold furniture for cash Rs. 20,000
28-1-06
Sold Machinery on credit Rs. 32,000
31-1-06
Sold goods to Rakesh Rs. 48,000
18. From the following transactions, Prepare Sales book and Sales returns book and Ledger accounts. Date
37
Particulars
1-2-06
Sold goods to Subbu Rs. 20,000.
3-2-06
Sold goods to Sailesh Rs. 24,000.
6-2-06
Sold goods to Panduranga for cash Rs. 28,000.
10-2-06
Sold goods to Gowri by cheque Rs. 32,000.
12-2-06
Sold goods for cash Rs. 36,000.
15-2-06
Sold furniture to Ramesh on credit Rs. 30,000.
17-2-06
Sales returns to Subbu Rs. 2000.
19-2-06
Sales returns to Sailesh Rs. 2,400.
21-2-06
Sales returns to Panduranga Rs. 2,800.
23-2-06
Sales returns to Gowri Rs. 3,200.
25-2-06
Sales returns for cash Rs. 3,600.
Foundations of Accounting
26-2-06
Sold goods to Subbu Rs. 48,000 .Trade Discount-10%.
27-2-06
Sold goods to sailesh Rs. 52,000. Trade Discount-10%.
28-2-06
Sold goods from suresh for cash Rs. 60,000.
19. Prepare Purchases book and Sales book , and Post them into ledger. Date
Particulars
1-7-06
Purchased goods from Kamesh Rs. 12,000.
4-7-06
Sold goods to Ajay Rs. 23,000
7-7-06
Purchased goods from Prasad Rs. 14,000.
10-7-06
Sold goods to Kiran Rs. 24,000
13-7-06
Purchased goods for cash Rs. 15,000.
17-7-06
Sold goods for cash Rs. 25,000.
20-7-06
Purchased Machinery from govind on credit Rs. 16,000.
24-7-06
Sold Furniture to gopal on credit Rs. 26,000.
26-7-06
Purchased goods from kapil Rs. 17,000 less Trade Discount-10%.
27-7-06
Sold goods to Ajay Rs. 27,000 less Trade Discount-10%.
20. Enter the following transactions in the appropriate Subsidiary books and Post them into the ledger. Date
Particulars
1-8-07
Purchases goods from Manohar, list price Rs. 60,000, Trade discount-10%.
5-8-07
Sold goods to Ramu, Catalogue price Rs. 20,000 Trade discount-5%.
8-8-07
List price of goods returned to Manohar Rs. 10,000.
10-8-07
Return of goods from Ramu at catalogue price Rs. 2,000.
13-8-07
List price of goods purchased from Sri is Rs. 20,000, Trade discount-20%.
15-8-07
Sale of goods to Sasidhar, list price of Rs. 10,000, Trade discount-10%.
18-8-07
Return of goods to Sri at list price Rs. 4,000.
20-8-07
Return of goods from Sasidhar at list price Rs. 2,000.
22-8-07
Purchased goods from Manohar Rs. 15,000.
25-8-07
Sold goods to Ramu Rs. 20,000.
28-8-07
Sold goods to Sri catalogue price Rs. 10,000, Trade discount-5%
29-8-07
Purchase returns to Manohar Rs. 1,000.
31-8-07
Sales returns from Ramu Rs. 1,200.
TRIAL BALANCE
1.
From the following ledger balances, Prepare the Trial balance. Particulars
Amount (Rs.)
Capital
60,000
Stock
69,780
Carriage in
4,960
Returns out
3,360
Loan to Anil
4,000
Rent
3,280
Purchases of goods
51,880
38
Particulars
Amount (Rs.)
Good will
6,920
Advertisement expenses
3,816
Bad debts
1,600
Cash in hand
248
Discount allowed
1,320
Drawings
13,000
Returns in
2,216
Furniture
5,500
Carriage out
2,900
Interest on the above loan
100
Commission received
520
Debtors
16,000
Creditors
12,000
Rent received
4,800
Cash at bank
2,000
Sales
1,11,616
Wages 2
3.
39
3,616
The following Trial balance is prepared wrongly, Prepare the correct Trial balance. Debit Balances
Amount (Rs.)
Credit Balances
Amount (Rs.)
Purchases return
2,000
Cash in hand
1,000
Wages
4,000
Sales returns
4,000
Office expenses
6,000
Carriage out
1,000
Capital
11,000
Interest received
Discount received
600
Salaries
Rent received
400
Sales
Carriage in
500
Creditors
6,000
Loan from bank
7,000
Stock
5,000
Purchases
14,000
Machinery
Bank o/d
7,000
Debtors
4,000
Total
56,500
500 7,000 22,000
10,000
56,500
The following Trial balance is prepared wrongly, Prepare the correct Trial balance. Debit Balances
Amount (Rs.)
Credit Balances
Amount (Rs.)
Capital
44,000
Stock
20,000
Debtors
16,000
Creditors
24,000
Bank o/d
28,000
Machinery
40,000
Purchases returns
8,000
Cash in hand
4,000
General expenses
24,000
Sales returns
16,000
Purchases
52,000
Sales
88,000
Wages
20,000
Salaries
24,000
Foundations of Accounting
4.
Bills payable
21,600
Out standing salaries
2,800
Total
2,16,400
Insurance
400
2,16,400
Make the corrections for the following Trial balance. Debit Balances
Amount (Rs.)
Credit Balances
Amount (Rs.)
Capital
17,900
Drawings
Stock
7,450
Sales
Purchases
46,200
Carriage out
460
Wages
4,410
Returns out
580
Salaries
8,000
Discount allowed
630
Lighting
620
Sundry debtors
Equipment
7,200
Carriage in
210
Commission received
700
Rent
2,230
Motor vehicles
2,950
Cash in Hand
220
Sundry creditors
9,850
Bank o/d
1,950
Total
1,10,460
2,100 78,850
27,840
1,10,460
FINAL ACCOUNTS
1.
Ascertain the Gross profit from the following figures. Particulars
Opening stock
40,000
Closing stock
60,000
Purchase of goods
1,60,000
Purchases returns
4,000
Sale of goods
3,20,000
Sales returns
6,000
Carriage in
4,000
Carriage out
8,000
Freight, Duty and Clearing charges Rent, Rates and Taxes 2.
Amount (Rs.)
10,000 7,000
Ascertain the Net Profit from the following Particulars. Particulars
Gross profit for the year
Amount (Rs.)
1,64,000
Salaries for the employees
36,000
Rent, Rates and Taxes
10,000
40
Depreciation on Machinery
3.
16,000
Printing and Stationery for office
4,000
Commission received
3,000
Furniture and Fixtures
30,000
Prepare a Balance sheet from the following Information. Particulars
Amount (Rs.)
Creditors for purchases
2,00,000
Closing stock at the end of the year
1,00,000
Motor Van used for office
1,00,000
Good Will
1,00,000
Debtors for sales
4,00,000
Capital
10,00,000
Machinery
10,00,000
Loan 4.
6,00,000
Ascertain the Cost of Goods of Sold. Particulars
Amount (Rs.)
Opening stock
40,000
Purchases
5.
2,36,000
Direct expenses
44,000
Closing stock
60,000
Ascertain the Cost of goods sold. Particulars
Amount (Rs.)
Opening stock of goods
10,000
Closing stock of goods
12,000
Purchase of goods
1,00,000
Sale of goods
1,60,000
Return of purchases
2,000
Return of sales
3,600
Wages
9,800
Goods used by proprietor 6.
41
400
Ascertain the Net profit f rom the following particulars. Particulars
Amount (Rs.)
Opening stock of goods
20,000
Direct expenses
16,000
Indirect expenses
30,000
Sale of goods
1,20,000
Closing stock of goods
24,000
Gross profit for the year
28,000
Foundations of Accounting
7.
8.
9.
Calculate the Gross profit from the following figures. Particulars
Amount (Rs.)
Cost of goods sold for the year
2,60,000
Sale of goods for the year
3,80,000
Pass necessary adjustments entries to the following. Particulars
Amount (Rs.)
Closing stock of goods
30,000
Outstanding salaries
2,400
Prepaid insurance
300
Interest accrued on investments
1,000
Premium received in advance
2,200
Provide as reserve for Bad and doubtful debts
800
A Trader’s Trail balance contains. Particulars
Amount (Rs.)
Sundry debtors for Sale of goods
1,00,000
Bad debts in Sundry debtors
2000
It is desired to provide for Doubtful at 5% of the Debtors. Make the Necessary provision and show the treatment in the Final accounts. 10.
On 1st January 2007 the Provision for Bad Debts stood at Rs. 4,200.During the year Bad Debts totaled to Rs. 3, 600. At the end of the year Sundry Debtors were Rs. 1,00,000. The firm wishes to maintain the Provision for Bad Debts @ 5% of Sundry Debtors. Give the Necessary Journal Entries and the Provision for Bad Debts Account.
11.
In a Trail Balance Debtors appear at Rs. 1, 22,000 and Creditors at Rs. 66,000. Let us provide for Doubtful Debts at 5% on Debtors and Provide for Discount on Creditors at 2% after considering the fact that included in Debtors is the amount of Rs. 2,000 due from shyam (one of the customers) and included in creditors is the amount of Rs. 6,000 due to shyam.
12.
On 1st January, 2007 the Provision for Doubtful Debts stood at Rs. 1,050.During the year Bad Debts written off were Rs. 800. At the end of the year the Sundry Debtors were Rs. 20,000. The firm wishes to maintain the Provision for Doubtful Debts at 5% on the Sundry Debtors. Give Journal Entries to be passed on 31-Dec-2007.
13.
The Reserve for Discount on Creditors as on 31-Dec -2007 was Rs. 1,800. During 2007 Discounts Received from Creditors totaled Rs. 2,400. On 31-Dec-2007 the creditors totaled Rs. 60,000. The Reserve for Discount on Creditors is to be Kept @2% of the Creditors. Give the required journal entries and the Reserve for Discount on Creditors Account.
14.
Show the treatment of the following items in profit and loss account and Balance sheet prepared at the end of 2007. Particulars
Amount (Rs.) Dr.
Loan @ 10% (Taken on 1-1-2007) Interest on Loan Deposits @ 12% (on 1-1-2007) Interest on Deposits
Amount (Rs.) Cr. 40,000
3,000 20,000 1,000
42
15.
The Closing Stock on 31 st December 2007 was Rs. 70,000.There was a loss by fire of Rs. 20,000 in the first week of December 2007. Show how will you deal with this in case a.
Stock was not at all insured
b.
Stock was fully covered by insurance.
c.
Stock was partly covered by insurance and the claim of Rs. 7,000 was accepted by the insurance company.
16.
A plant of the Book Value of Rs. 1,60, 000 was Sold for Rs. 56,000 in part exchange for a new plant costing Rs. 1, 40,800.The net invoice of Rs. 84,800 was passed through the invoice book. Pass the Necessary Adjustments.
17.
Included in the sales were Sales of Goods of Rs. 40,000 on Sale or return basis for which consent of the customers was not received upto 31-Dec-2007, the day on which accounts are closed. Goods Sold included Profit at 25% on Cost. Pass the Necessary Adjustments.
18.
Closing Stock includes goods worth Rs. 11,600 has been credited to sales account. The machinery account stood in the books at Rs. 16,000. Pass the necessary adjustments.
19.
During the year 2007, a machine was purchased for Rs. 40,000 from Sree Ltd. Wages of workmen who installed the machine amounted to Rs. 4,000. No entry has been passed. Pass the necessary entry and show its impact on the Final accounts.
20.
On 1st April 2004 the Provision for Doubtful Showed a Credit Balance of Rs. 6,000.During the year the Bad Debts amounted to Rs. 5,100. The Sundry Debtors on 31-March-2005 were Rs. 1,80,000 and a Provision for Doubtful Debts at 5% is required to be maintained. The Bad Debts during the year ended 31st March, 2006 amounted to Rs. 5,700. On 31st March, 2006 the sundry debtors were Rs. 1,68,000 and a provision for doubtful debts at 5% is to be maintained. During the year ended 31st March ,2007 the bad debts amounted to Rs. 2,400 and the book debts on this date amount to Rs. 60,000 on which a 5% provision for doubtful debts and a 3% provision for discount are to be maintained. Give the necessary ledger accounts and show these items will appear in the profit and loss account and the balance sheet of each of these years.
21.
On 1st January, 2005 the provision for doubtful debts account showed a credit balance of Rs. 45,000. During the year the bad debts amounted to Rs. 36,000.The debtors at 31-Dec-2005 were Rs. 3,75,000 and a 5% provision for doubtful debts was required to be maintained. The bad debts during the year 2006 were Rs. 18,750. On 31-Dec-2006 the debtors were Rs. 4,20,000 and a 5% provision for doubtful debts was to be kept. In 2007, the bad debts were Rs. 6,000 and the debtors at the end of the year amounted to Rs. 1, 20,000 on which 2.5%. Provision for Doubtful debts and 5% provision for discount are to be kept.
22.
Show the necessary ledger accounts and also show how these items will appear in the profit and loss account and balance sheet of each of three years.
23.
A firm maintains a provision for bad debts at 6% and a provision for discount at 3% on debtors. It also maintains a reserve for discount on creditors at 3% from the following particulars write up the provision or reserve accounts for all the years. Balance on 1st January, 2005
Provision for Bad Debts Provision for Discount on Debtors Reserve for Discount on Creditors
-
Rs. 2,000. Rs. 1,200. Rs. 750.
Total Debtors Were
On 31-12-2005 Rs. 48,000, after Writing off Bad Debts Rs. 1,200 and Allowing Discounts Rs. 750. On 31-12-2006 Rs. 32,000 after Writing off Bad Debts Rs. 400 and Allowing Discounts Rs. 500. On 31-12-2007 Rs. 40,000 after Writing off Bad Debts Rs. 1,200 and Allowing Discounts Rs. 700. The Creditors at the end of 2005, 2006 and 2007 were Rs. 32,000, Rs. 24,000 and Rs. 40,000 respectively. Discount Received during each of the years amounted to Rs. 800, Rs. 480 and Rs. 720.
43
Foundations of Accounting
24.
In the Books of Balaji and Company, Prepare a Trading, Profit & Loss Account for the year ended 31-Dec-2007 and a Balance sheet as on that date. Particulars
Amount (Rs.)
Capital
60,000
Drawings
12,000
Sundry creditors for purchases
86,000
Bills payable for purchases
8,000
Sundry debtors for sales
1,02,000
Bills receivable for sales
10,000
Loan advanced to Divya & Co.
24,000
Fixtures & Fittings
17,000
Opening stock of goods
94,000
Cash in hand
1,800
Cash at ICICI bank
25,000
Overdraft with HDFC bank
12,000
Purchases of goods
1,00,000
Duty and Clearing charges
7,000
Sales of goods
2,56,000
Salaries for the employees
19,000
Returns from the customers
2,000
Returns to the creditors
2,200
Commission and Travelling expenses
9,400
General expenses
5,000
Rent paid
4,000
Commission received
8,000
Adjustments
25.
a.
Closing Stock Rs. 1,00,000.
b.
Interest to be received Rs. 400.
c.
Outstanding salaries Rs. 1,000.
d.
Depreciate Fixtures and Fittings by 5%.
e.
Commission received in advance Rs. 1,200.
f.
Allow interest on capital at 8%.
From the following Trail Balance of Nagendra as at 31-Dec-2007.Prepare Trading, Profit & Loss account for the year ended 31-Dec-2007 and the Balance sheet as on that date: Debit Balances
Stock
Amount (Rs.)
90,000
Credit Balances
Capital
1,50,000 8,41,500
Plant and Machinery
1,50,000
Sales
Purchases
4,50,000
Sundry creditors
Trade charges
20,000
Carriage inwards
5,000
Carriage outwards
3,000
Factory rent
3,000
Amount (Rs.)
Bad debts provision Bills payable
30,000 400 4,000
44
Debit Balances
Amount (Rs.)
Credit Balances
Discount
700
Insurance
1,400
Sundry debtors
1,20,000
Office rent
6,000
Printing and Stationery
1,200
Travelers salaries
5,600
Advertising
30,000
Bills receivable
12,000
Drawings
12,000
Salaries
30,000
Wages
40,000
Furniture
15,000
Coal and Gas
2,000
Cash in hand
4,000
Cash at bank
25,000
Total
Amount (Rs.)
10,25,900
10,25,900
Adjustments
26.
a.
Closing stock amounted to Rs. 70,000.
b.
Depreciate Machinery by 10% and Furniture by 5%.
c.
Raise the Bad Debts Provision to 5% on Debtors.
d.
Outstanding Factory rent Rs. 600, Office rent Rs. 1,200, Wages Rs. 1,600 and Salaries Rs. 700.
e.
Insurance prepaid Rs.200.
In the Books of Niranjan lal and Co, Prepare Final accounts for the year ended on 31-Dec-2006. Particulars
45
Amount (Rs.)
Buildings
1,40,000
Motor Car
24,000
Furniture
3,280
Debtors
31,200
Creditors
37,704
Stock
30,080
Cash in hand
1,976
Cash at bank
29,068
Bills receivable
11,688
Bills payable
13,860
Purchase of goods
1,71,044
Sale of goods
2,43,700
Capital
1,84,000
Carriage in
2,582
Reserve for Bad debts
2,640
Foundations of Accounting
Particulars
Amount (Rs.)
Establishment
4,270
Carriage out
1,600
Insurance
1,566
Interest (Credit)
680
Bad debts
1,226
Audit fees
800
General expenses
7,900
Trade expenses
650
Discount (Dr.)
1,240
Investments
17,844
Returns in
570
Adjustments
27.
a.
Closing stock at the end of the year is Rs. 31,000.
b.
Depreciation on Motor Car and Furniture and Fittings is 20% and 10% respectively.
c.
Write off Further Bad Debts of Rs. 200 and maintain the bad debts reserve at 5% on Debtors.
d.
Insurance unexpired Rs. 300.
e.
Interest accrued on investments Rs. 240.
From the following Trial Balance of Sri Krishna, Prepare Final accounts for the year ended on 31Dec-2007, and a Balance sheet as on that date after giving effect to the adjustments. Debit Balances
Adjusted purchases
Amount (Rs.)
69,92,000
Credit Balances
Amount (Rs.)
Sri Krishna capital
4,00,000
Bank balance
15,000
Bills payable
1,00,000
Salaries
42,000
Loan
2,00,000
Carriage on sales
5,000
Sales
72,00,000
Carriage on purchases
4,000
Discount
4,000
Lighting
3,000
Commission
1,000
Land and Building Rates and Taxes
2,70,000
80,000
Furniture and Fittings
60,000
Bills receivable Closing stock at the end of the year Total
2,00,000
4,000
Debtors
Cash in hand
Sundry creditors
2,500 15,000 6,12,500 81,05,000
81,05,000
Adjustments
a.
Rates have been prepaid to the extent of Rs. 1,200.
b.
Write off Bad Debts amounting to Rs. 5,000.
c.
A provision of 5% has to be made on Debtors.
d.
Buildings have to be depreciated at 2% and Furniture at 10%.
46
28.
e.
Goods purchased on credit taken into stock but not recorded in the books Rs. 10,000.
f.
Lighting Expenses are to be divided between Factory and Office in 2:1.
g.
5% Interest on Loan is outstanding.
h.
5% of the Profit is to be carried to Reserve Fund.
From the following particulars extracted from the books of Sai Ram and Co, Prepare Final accounts for the year ended 31-Dec-2007, and a Balance sheet as on that date. Debit Balances
Amount (Rs.)
Credit Balances
Amount (Rs.)
Opening Stock
46,800
Capital
1,08,100
Drawings
10,000
Sales
2,89,600
Sales returns
8,600
Cash in hand
380
Purchases Postage Telegrams Carriage inwards
5,800
Sundry creditors
14,800
2,43,100
Loan from SBI @ 12%
20,000
870
Interest on investments
1,450
Discount
2,990
18,600
Traveling expenses
2,330
Rent
5,700
Salaries
9,300
Sundry debtors
24,000
Interest on loan
900
Printing and Stationery
Purchases returns
3,400
Advertisements
11,200
Cash with Andhra bank
8,000
Investment @ 9% p.a
35,000
Furniture on 1-1-07
1,800
Discount
7,540
General expenses
3,920
Audit fee
700
Fire Insurance premium
600
Total
4,42,740
4,42,740
Adjustments
29.
47
a.
Closing stock at the end of the year Rs. 78,600.
b.
Includes in purchases the purchase of furniture on 30-6-2007 for Rs. 2,000.
c.
Depreciation is to be provided on furniture at 10% p.a
d.
Provide for interest payable to SBI and f or Interest Receivable on Investments.
e.
Provide reserve for Doubtful debts at 5%.
f.
Interest on Capital and on drawings @ 4%.
In the Books of Bhagavan Raj, Prepare Final accounts for the year ended on 31-Dec-2006, and a Balance sheet as on that date. Debit Balances
Amount (Rs.)
Credit Balances
Amount (Rs.)
Drawings
5,000
Capital
1,00,000
Freehold Property
30,000
Bills payable
2,850
Plant and Machinery
50,000
Creditors
20,000
Foundations of Accounting
Debit Balances
Amount (Rs.)
Credit Balances
Amount (Rs.)
Salaries
7,000
Provision for Doubtful debts
2,400
Printing and Stationery
1,000
Interest on loan to Subhash
500
Furniture and Fittings
2,000
Trading Profits
58,600
Discount
750
Outstanding Wages on 31-Dec-2006
250
Debtors
12,500
Insurance Claim received for loss
2,500
Insurance
1,500
Bad debts
300
Office rent
1,300
Loose tools
1,000
Loan to Subhash 10% on 1-7-06
20,000
Cash at bank
12,500
Cash in hand
5,250
Closing stock
37,000
Total
1,87,100
1,87,100
Adjustments a. Salaries outstanding Rs. 350.
30.
b.
Prepaid Insurance Rs. 200.
c.
Value of loose Tools on 31-Dec-2006 Rs. 750.
d.
A new machinery was purchased on credit and installed on 30-Nov-2006 costing Rs. 7,500.No entry for the same has yet been made in the books.
e.
Depreciate Plant and Machinery @ 10% and Furniture and Fittings @ 5%.
f.
The provision for Doubtful Debts is to be maintained @ 5%.
In the Books of Ramji Traders, Prepare Final accounts for the year ended on 31-Dec-2007. While preparing the Trading, Profit & Loss Account and Balance sheet consider the adjustment given at the end of the Trial balance. Debit Balances
Amount (Rs.)
Credit Balances
Amount (Rs.)
Sundry debtors
96,000
Capital
1,00,000
Bills receivable
27,590
Provision for Doubtful Debts
6,000
Good will
80,000
5% Loan (1-1-2007)
90,000
Plant and Machinery
1,11,000
Sundry creditors
21,920
Opening stock
54,360
Bills payable
16,300
Cash in hand
1,720
Commission
5,740
Manufacturing charges
15,680
Sales
2,44,080
Wages
16,000
Outstanding wages
3,000
Salaries
8,680
Purchases returns
10,000
Postage and Telegrams
1,080
Rent
1,900
Printing and Stationery
1,720
48
Debit Balances
Amount (Rs.)
General Charges
340
Purchases
59,720
Interest on Loan
2,250
Sales Returns
7,000
Bad Debts
3,000
Depreciation on Plant and Machinery
9,000
Total
4,97,040
Credit Balances
Amount (Rs.)
4,97,040
Adjustments a. Closing Stock Rs. 30,000.
b.
Provision for Doubtful Debts is to be made upto 5%.
c.
A fire occurred on 6th December 2007 and stock of Value of Rs. 12,000 was destroyed and the insurance has admitted a claim of Rs. 10,000.
d.
Goods costing Rs. 2,000 were used by proprietor.
e.
Accrued Commission amounted to Rs. 1,200.
31. In the Books of Acharya, Prepare Final accounts for the year ended on 31-March-2006, and a Balance sheet as on that date. Debit Balances
Amount (Rs.)
Credit Balances
Amount (Rs.)
Drawings
14,400
Capital
1,20,000
Opening Stock
41,000
Creditors
28,600
Purchases
1,36,000
Sales
2,81,000
Carriage In
3,000
Provision for Doubtful Debts
2,000
Sundry Debtors
47,000
Bills Payable
8,400
Cash in Hand
1,000
Cash at Bank
4,400
Carriage Out
3,400
Salaries
32,000
Factory Rent
8,000
Bills Receivable
10,600
Insurance
2,400
Furniture
20,000
Machinery
56,000
Office Rent
4,000
Manufacturing Wages
43,000
Manufacturing Expenses
3,000
General Expenses
10,800
Total
4,40,000
4,40,000
Adjustments a. Closing Stock Rs. 54,000.
b.
49
Write off Rs. 1,000 as Bad debts and maintain the provision for Doubtful Debts at 5% on Sundry Debtors.
Foundations of Accounting
c.
Unexpired Insurance Rs. 600.
d.
On 24th March 2006, a fire broke out and destroyed stock of value of Rs. 20,000.The Insurance Company admitted the claim for loss of stock of the value of Rs. 12,000 only and paid the amount on 15th April 2006.
32. In the Books of Nagarajan, Prepare the Final accounts for the year ended on 31-March-2007, and a Balance sheet as on that date. Debit Balances
Amount (Rs.)
Credit Balances
Amount (Rs.)
Plant and Machinery
40,000
Capital
1,60,000
Wages
69,000
Creditors
89,120
Salaries
31,700
Bank Loan
30,000
Furniture
20,000
Purchases Returns
3,480
Freight on Purchases
3,720
Sales
5,01,700
Freight on Sales
4,280
Reserve for Bad Debts
4,000
Buildings
48,000
Manufacturing Expenses
19,000
Insurance & Tax
8,500
Good Will
50,000
General Expenses
16,400
Factory, Fuel & Power
2,560
Factory Lighting
1,900
Debtors
1,56,400
Opening Stock
68,400
Motor Car
24,000
Purchases
2,04,000
Sales Returns
6,200
Bad Debts
2,800
Interest and Bank Charges
800
Cash at Bank
8,400
Cash in Hand
2,240
Total
7,88,300
7,88,300
Adjustments a. Closing Stock Rs. 61,000.
b.
Depreciate Plant and Machinery by 10%, Furniture-5% and Motor Car by Rs. 2,000.
c.
Bring provision for Bad Debts to 5% on Sundry Debtors.
d.
A Commission of 1% on the Gross Profit is to provided for works manager.
e.
A Commission of 2% on Net profit (after charging the works Manager’s commission) is to be credited to the General Manager.
f.
On 1-March-2007 goods costing Rs. 2,000 lost because of fire accident and the insurance company has given back the entire amount.
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33. In the Books of Gopinathan, Prepare the Trading account, Profit & Loss account and a Balance sheet as on 31-Dec-2005. Debit Balances
Amount (Rs.)
Credit Balances
Amount (Rs.)
Drawings
6,000
Capital
56,000
Sundry Debtors
40,200
Sundry Creditors
20,802
Interest on Loan
600
Loan on Mortgage
19,000
Cash in Hand
4,154
Bad Debts Reserve
1,420
Opening Stock
13,678
Sales
2,20,486
Motor Vehicles
20,000
Purchases Returns
2,692
Cash at Bank
7,110
Discount
1,080
Land and Buildings
24,000
Bills Payable
5,282
Bad Debts
1,050
Rent Received
500
Purchases
1,32,916
Sales Returns
15,642
Carriage Outwards
4,808
Carriage Inwards
5,858
Salaries
18,194
Rates, Taxes and Insurance
5,782
Advertising
6,528
General Expenses
6,978
Bills Receivable
13,764
Total
3,27,262
3,27,262
Adjustments a. Depreciate Land and Buildings at 2% and Motor Vehicles at 10%.
b.
Interest on Loan @6% p.a is unpaid for Six months.
c.
Goods Costing Rs. 500 was destroyed by fire on 15th December, 2007 and insurance company has not admitted any claim for the same.
d.
Prepaid Insurance amounting to Rs. 300.
e.
Provide for Manager’s Commission at 8% on profits after charging such commission.
f.
Closing Stock at the end year was Rs. 13,500.
34. The following balances were extracted from the books of accounts of M/s Silver Gold as on March 31st 2007.
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Particulars
Amount (Rs.)
Capital
2,68,800
Preliminary expenses
21,100
Sundry creditors
1,19,260
15% Loan
40,000
Cash in Hand
6,060
Cash at Hand
37,940
Sundry Debtors
1,24,000
Bills receivable
19,000
Provision for doubtful debts
5,000
Foundations of Accounting
Particulars
Amount (Rs.)
Fittings and Fixtures
17,940
Plant and Machinery
57,600
Opening inventory
1,09,360
Purchases
5,13,180
Manufacturing wages
81,940
Sales
7,12,860
Returns in
5,560
Salaries
1,22,000
Rent and taxes
11,240
Interest and Discount (Debit)
11,740
Traveling expenses
3,760
Repairs and renewals
6,740
Insurance premium
800
Bad debts
7,240
Commission received
11,280
Adjustments a. Inventory on 31st March, 2007 was valued at Rs. 2,57,920.
b.
Manufacturing wages include Rs. 2,400 for erection of machinery purchased last year.
c.
Provide for depreciation on plant and machinery at 15% and on fixtures and fittings at 10% p.a.
d.
Create a provision for doubtful debts at 5% on sundry debtors.
e.
Commission earned but not received by the company amounts to Rs. 1,200.
f.
Interest on loan for the last two months not paid.
g.
Insurance premium includes Rs. 600 paid up to September 30 2007.
h.
Sundry debtors include Rs. 650 due from a customer who has become insolvent.
i.
Goods of the value of Rs. 1,000 have been destroyed by fire and the insurance company has admitted a claim of Rs. 700.
j.
Bills receivable includes a dishonored promissory note for Rs. 650.
You are required to prepare the Trading account, Profit & Loss a/c for the year ending March 31, 2007, and a balance sheet as on 31 st March, 2007 after giving effect to above information. 35. The following is the trial balance of Mr. Anil Ltd as on 31-December 2007. Particulars
Debit Amount (Rs.)
Capital
Credit Amount (Rs.)
6,00,000
Opening Stock
40,000
Sales and Sales returns
80,000
9,60,000
Purchases and Purchases returns
6,64,000
84,000
Carriage in
27,800
Rent and taxes
12,000
Sundry creditors Sundry debtors Bank loan @ 12%
1,16,000 2,40,000 40,000
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