Accounting Cycle

Sums for Practice

Sum: 1 Journalise the following transactions:

2020

Jan.1 Started business with cash Rs. 10,000 and Stock of Rs. 6,000
Jan. 3 Paid cash into Indian Overseas Bank Rs. 14,000
Jan. 7 Sold good to Mani Rs. 3,000
Jan. 9 Goods returned by Mani Rs. 700
Jan. 12 Goods purchased from Jayant Rs. 7000
Jan. 15 Goods returned to Janyant Rs. 350
Jan. 18 Purchased goods from Goutam for Rs. 30,000. He allowed 10% trade discounts.
Jan. 20 Paid Salary Rs. 70.
Solution: Journal Entries

Date Particulars L.F. Debit Rs. Credit Rs.

2020 Cash A/c Dr. 10,000
Jan. 1 Stock A/c Dr. 6,000
To Capital A/c 16,000
Jan. 3 Indian Overseas Bank A/c Dr. 14,000
To Cash A/c 14,000
Jan. 7 Mani A/c Dr. 3,000
To Sales A/c 3,000
Jan. 9 Sales Return A/c Dr. 700
To Mani A/c 700
Jan. 12 Purchase A/c Dr. 7,000
To Jayant A/c 7,000
Jan. 15 Jayant A/c Dr. 350
To Purchase Return A/c 350
Jan. 18 Purchase A/c Dr. 27,000
To Goutam A/c 27,000
Jan.20 Salary A/c 70
To Cash A/c 70

Sum: 2 On 1 st January 2020, the following were balance of Mr. Ramesh Shah

Cash in hand Rs. 900

Cash at bank Rs. 2,100
Stock Rs. 12,000
Prasad (Cr.) Rs. 2,800
Transactions during the month were:
2020 Rs.
Jan. 2 Purchased goods from Ramesh 7,200
Jan. 4 Sold goods to Raj 6,000
Jan. 7 Took goods for personal use 6,300
Jan. 12 Received from Mansoor in full settlement for Rs. 2,400 2,350
Jan. 16 Paid to Ravi in full settlement of Rs. 3,000 2,920
Jan. 23 Paid for stationery 100
Jan. 30 Provide interest on capital 100
Jan. 30 Provide interest on drawing 200
Jan. 31 Rent due to landlord 200

Solution: Journal Entries

Date Particulars L.F. Debit Rs. Credit Rs.

2020 Cash in hand A/c Dr. 900
Jan. 1 Cash at Bank A/c Dr. 2,100
Stock A/c Dr. 12,000
To Prasad A/c 2,800
To Capital A/c 12,200
Jan. 2 Purchase A/c Dr. 7,200
To Ramesh A/c 7,200
Jan. 4 Raj A/c Dr. 6,000
To Sales A/c 6,000
Jan. 7 Drawing A/c Dr. 6,300
To Purchase A/c 6,300
Jan. 12 Cash A/c Dr. 2,350
Discount A/c Dr. 50
To Mansoor A/c 2,400
Jan. 16 Ravi A/c Dr. 3,000
To Cash A/c 2,920
To Discount A/c 80
Jan. 23 Stationery A/c Dr. 100
To Cash A/c 100
Jan.30 Interest on Capital A/c Dr. 100
To Capital A/c 100
Jan. 30 Drawing A/c Dr. 200
To Interest on Drawing A/c 200
Jan. 31 Rent A/c Dr. 200
To Outstanding Rent 200
Sum :3 Record the following transaction in the journal of Sai and Brothers:

2020

Jan. 1 Started business with cash Rs. 70,000.

Jan. 2 Deposited in to Indian Bank Rs. 90,000.
Jan. 3 Purchased furniture for Rs. 5,000 from Hurugesan and gave him a cheque for the
amount.
Jan. 15 Paid Salary Rs. 500.
Jan. 20 Purchased goods from Navid of Rs. 2,000 10% Trade discount.
Jan. 25 Sold goods to Karthik for Rs. 1,000 and allowed 5% trade discount.
Jan. 28 Received a cheque from Karthik for Rs. 930 in full settlement through bank.
Jan. 29 Sent to Navid in full settlement a cheque for 1,750.
Jan. 31 Paid wages Rs. 350 and Rent Rs. 250.

Solution: Journal Entries

Date Particulars L.F. Debit Rs. Credit Rs.

2020 Cash A/c Dr. 70,000
Jan. 1 To Capital A/c 70,000
Jan. 2 Indian Bank A/c Dr. 90,000
To Cash A/c 90,000
Jan. 3 Furniture A/c Dr. 5,000
To Bank A/c 5,000
Jan. 15 Salary A/c Dr. 500
To Cash A/c 500
Jan. 20 Purchase A/c Dr. 1,800
To Navid A/c 1,800
Jan. 25 Karthik A/c Dr. 950
To Sales A/c 950
Jan. 28 Bank A/c Dr. 930
Discount A/c Dr. 20
To Karthik A/c 950
Jan.29 Navid A/c Dr. 1,800
To Bank A/c 1,750
To Discount A/c 50
Jan. 31 Wages A/c Dr. 350
Rent A/c Dr. 250
To Cash A/c 600
Sum: 4 Pass necessary journal entries for the following transactions:

1. Rs. 1,000 was stolen from the office.

2. Goods sold for cash Rs. 20,000.
3. Given on charity cash Rs. 100 and a Table Rs. 700.
4. Goods worth Rs. 700 stolen from the office.
5. Purchased furniture for the business of Rs. 7,000 paid through cheque.
6. Goods taken for personal use Rs.300.
7. Goods worth Rs. 100 destroyed by fire.
8. Goods worth Rs. 200 distributed as sample.
9. Purchased building worth Rs. 10,00,000 and paid through cheque.

Solution: Journal Entries

Date Particulars L.F. Debit Rs. Credit Rs.

Loss by theft A/C Dr. 1,000
1 To Cash A/c 1,000
2 Cash A/c Dr. 20,000
To Sales A/c 20,000
3 Charity A/c Dr. 800
To Cash A/c 100
To Table A/c 700
4 Loss by theft A/c Dr. 700
To Purchase A/c 700
5 Furniture A/c Dr. 7,000
To Bank A/c 7,000
6 Drawing A/c Dr. 300
To Purchase A/c 300
7 Loss by fire A/c Dr. 100
To Purchase A/c 100
8 Sales Promotion A/c /Advertisement 200
A/c Dr./Free Samples A/c 200
To Purchase A/c
9 Building A/c Dr. 10,00,000
To Bank A/c 10,00,000
Sum: 5 Journalise the following transaction:

January, Particular Amount

2020
1 Started business with cash 2,00,000
3 Deposited into Canara Bank 1,00,000
5 Purchased building for 5,00,000
12 Paid General Expenses 7,000
17 Paid to Mahajan through Bank 60,000
30 Salaries paid 40,000
31 Drew cash for personal use 25,000

Solution: Journal Entries

Date Particulars L.F. Debit Rs. Credit Rs.

2020 Cash A/c Dr. 2,00,000
Jan. 1 To Capital A/c 2,00,000
Jan. 3 Canara Bank A/c Dr. 1,00,000
To Cash A/c 1,00,000
Jan. 5 Building A/c Dr. 5,00,000
To Cash A/c 5,00,000
Jan. 12 General Expenses A/c 7,000
To Cash A/c 7,000
Jan. 17 Mahajan A/c Dr. 60,000
To Bank A/c 60,000
Jan. 30 Salaries A/c Dr. 40,000
To Cash A/c 40,000
Jan. 31 Drawings A/c Dr. 25,000
To Cash A/c 25,000
Sum: 6 Journalise the following transactions.

July, 2020 Particulars Amount (Rs)

1 Invested cash in business 40,000
2 Opened account with ICICI bank by depositing cash 20,000
3 Purchased goods for cash 1,000
4 Purchased machinery for cash 1,600
5 Cash purchases of goods 600
6 Cash Sales 1,800
16 Withdraw cash for personal use 400
17 Purchased goods from Ram & Sons on credit 1,200
25 Received cash from Raj 700
26 Paid cash to Rajeshwari 500
28 Paid rent 250
30 Received commission 350

Solution: Journal Entries

Date Particulars L.F. Debit Rs. Credit Rs.

2020 Cash A/c Dr. 40,000
July. 1 To Capital A/c 40,000
July. 2 ICICI A/c Dr. 20,000
To Cash A/c 20,000
July. 3 Purchase A/c Dr. 1,000
To Cash A/c 1,000
July. 4 Machinery A/c Dr. 1,600
To Cash A/c 1,600
July. 5 Purchase A/c Dr. 600
To Cash A/c 600
July. 6 Cash A/c Dr. 1,800
To Sales A/c 1,800
July. 16 Drawing A/c Dr. 400
To Cash A/c 400
July. 17 Purchased A/c Dr. 1,200
To Ram & Sons A/c 1,200
July. 25 Cash A/c Dr. 700
To Raj A/c 700
July. 26 Rajeshwari A/c Dr. 500
To Cash A/c 500
July. 28 Rent A/c Dr. 250
To Cash A/c 250
July. 30 Cash A/c Dr. 350
To Commission A/c 350
Sum: 7 Journalise the following transactions in the books of Ram Kumar:

January, Particular Amount

2020
1 Commenced business with cash 80,000
3 Purchased goods for cash 1,000
5 Sold goods for cash 600
6 Purchased one Motor car for cash 30,000
9 Sold machinery for cash 18,000
11 Purchased a building on credit from Rajendra 40,000
15 Sold furniture on credit to Rajveer 19,000
17 Paid cartage 220
22 Received Commission 100
27 Cash Sales 2,400
29 Cash Purchases 1,200
30 Received cash from Azhar 700
31 Paid cash to Raj 380

Solution: Journal Entries

Date Particulars L.F. Debit Rs. Credit Rs.

2020 Cash A/c Dr. 80,000
Jan. 1 To Capital A/c 80,000
Jan. 3 Purchase A/c Dr. 1,000
To Cash A/c 1,000
Jan. 5 Cash A/c Dr. 600
To Sales A/c 600
Jan. 6 Motor Car A/c Dr. 30,000
To Cash A/c 30,000
Jan. 9 Cash A/c Dr. 18,000
To Machinery A/c 18,000
Jan. 11 Building A/c Dr. 40,000
To Rajendra A/c 40,000
Jan. 15 Rajveer A/c Dr. 19,000
To Furniture A/c 19,000
Jan. 17 Cartage A/c Dr. 220
To Cash A/c 220
Jan. 22 Cash A/c Dr. 100
To Commission A/c 100
Jan. 27 Cash A/c Dr. 2,400
To Sales A/c 2,400
Jan. 29 Purchase A/c Dr. 1,200
To Cash A/c 1,200
Jan. 30 Cash A/c Dr. 700
To Azhar A/c 700
Jan. 31 Raj A/c Dr. 380
To Cash A/c 380
Sum: 8 Journalise the following transactions:

May, 2020 Particular

1 Rajesh commenced business with cash Rs. 5,000, Stock worth Rs. 10,000
and Building Rs. 7,000
3 Purchased goods worth Rs. 5,000 less 10% trade discount from Mr. Sharma
4 Sold goods worth Rs. 9,000 less 15% trade discount to Mr. Dhakan.
5 Received cash Rs. 590 from Mr. Mahesh and allowed him discount of Rs.
10.
7 Purchased goods worth Rs. 500 for cash on 5% cash discount terms.
8 Sold goods worth RS. 600 for cash on 5% cash discount terms.
10 Received Rs. 575 form Mr. Ramanujan in full settlement of his account of
Rs. 600

Solution: Journal Entries

Date Particulars L.F. Debit Rs. Credit Rs.

2020 Cash A/c Dr. 5,000
May. 1 Stock A/c Dr. 10,000
Building A/c Dr. 7,000
To Capital A/c 22,000
May. 3 Purchase A/c Dr. 4,500
To Mr. Sharma A/c 4,500
May. 4 Mr. Dhakan A/c Dr. 7,650
To Sales A/c 7,650
May. 5 Cash A/c Dr. 590
Discount A/c Dr. 10
To Mahesh A/c 600
May. 7 Purchase A/c Dr. 500
To Cash A/c 475
To Discount A/c 25
May. 8 Cash A/c Dr. 575
Discount A/c Dr. 25
To Sales A/c 600
May. 10 Cash A/c Dr. 575
Discount A/c Dr. 25
To Mr. Ramanujan A/c 600