Module 1 Introduction to Accounting

1. Classify the following into:

a) Personal account
b) Nominal account
c) Real account

Sl No Name of Account Type of account Remarks

1. Bad Debts Account Nominal Account Bad Debts is a expense
/ Loses ie, Nominal
Account
2. Bad Debts Recovery Account Nominal Account Bad Debts Recovery
Account is a gain/
Income
3. Shivamogga Corporation Account Personal Account Account of a person
4. Bank Account Personal Account Account of a Person in a
bank
5. Bank OD Account Personal Account Money is borrowed in a
name of the person –
Personal Account
6. Bills Payable A/c Real Account Bills exchange happen –
tangible in nature
7. Bills receivable Account Real Account Bills exchange happen –
Account of assets-
tangible in nature
8. Book Debts Account Personal Account Account of a person
9. Building account Real Account It’s an asset
10. Capital Account Personal Account Generally a proprietors
account
11. Carriage Account Nominal Account It is an expense
12. Cash Account Real Account Account of Assets
13. Charity Account Nominal Account Kind of expense for the
company
14. Commission Received In advance Account Personal Account Commission is received
(representative) in advance as
representation personal
Acc
15. Depreciation Account Nominal account Account of expenses
16. Shivamogga Sports Club Account Personal Account Accounts of a club ie,
person acount
17. Discount Account Nominal Account It’s a sort of expense
18. Drawings Account Personal Account Account of person
19. Furniture Account Real Account Tangible assets ie
Goodwill
20. Good will account Real Account Intangible assets ie
Goodwill
21. Interest Account Nominal Account Account of expenses
22. National Traders Account Personal Account Account of a person ie,
Traders
23. International Traders Account Personal Account Account of a person ie,
Traders
Module 1 Introduction to Accounting

24. Investment Account Real Account Assets Account

25. Loan Account Personal Account Account of a person to
whom the loan is
borrowed
26. Loose tools account Real Account Investment for assets
27. Loss of Good by Fire Account Nominal Account Account for losses
28. Motor Vans Account Real Account Assets account
29. SBI Bank Account Personal Account Account of a person
30. Mysore Bank Account Personal Account Account of a person
31. JNNCE College Account Personal Account Account of a person
32. Nyle Pvt Ltd Account Personal Account Account of a person
33. Outstanding Wages Account Personal Account Account of a person
34. Postage Account Nominal Account Account of expenses
35. Prepaid Insurance Account Personal Account Representation of
person
36. Purchases Account  Nominal  Account of
Account expenses
 Real Account  Account of
Goods/ assets
37. Purchase Returns Account  Nominal  Account of
Account Income
 Real Account  Account of
Assets
38. Rent Account Nominal Account Account of expenses
39. Repairs Machinery Account Nominal Account Account of expenses
40. Salaries account Nominal Account Account of expenses
41. Sales Account Nominal Account Account of income
42. Sales return account Real Account Related to goods ie,
assets
43. Stationery Account Real Account Related to goods ie,
assets
44. Stock Account Real Account Related to goods ie,
assets
45. Trade Mark Account Real Account Related to goods ie,
assets
46. Wages Account Nominal Account Account of expenses
47. Zodiac Pvt Ltd Account Personal Account Account of a person
48. Printing & Stationery Real Account Related to goods
49. Marketing Account Nominal Account Account of expenses
50. Donations Account Nominal Account Kind of Expense

2. From the following transactions listed, indicate the name of accounts, nature of accounts involved
and state whether they are to be debited or credited in the books of accounts.

1. Radha started a business

2. Withdraw from bank
3. Goods purchased for cash from kishor
4. Sold goods for cash to soma
Module 1 Introduction to Accounting

5. Paid carriage on machinery purchased

6. Returned goods to kishor
7. Made repairs to machinery
8. Returned goods from soma
9. Deposited cash in bank
10. Till taking ( Cash Sales)
11. Received a bank draft from Shivamogga Stores
12. Paid Commission
13. Paid Salary to Nisam
14. Received interest on government securities
15. Withdrew from bank for personal use.

Sl No Particulars Name of Nature of Account Debit Credit Reasons

Account

1. Radha started a Cash Account Real Acc Debit Cash comes in

business Capital Account Giver of benefit
Personal acc Credit
2. Withdraw from Cash Acc Real Acc Debit Comes in
bank Bank Acc Personal Acc Credit Giver of Benefit
3. Goods Purchase Acc Real Account Debit Comes In
purchased for
cash from Cash Acc Real Account Credit Goes Out
kishor
4. Sold goods for Cash Acc Real Account Debit Cash Comes in
cash to soma
Sales Account Nominal/Real Credit Goes out
Account
5. Paid carriage on Machinery Real Account Debit Comes in
machinery Account
purchased
Cash Account Real Account Credit Goes out
6. Returned goods Kishor Acc Personal Account Debit Receiver benefit
to kishor
Purchase Real Account Goes out
return Account Credit
7. Made repairs to Repairs Nominal Account Debit Expenses
machinery Account

Cash account Real Account Credit Goes out

8. Returned goods Sales Return Real Account Debit Comes In
from soma Account

Somas Account Personal Account Credit Giver Of the

benefit
9. Deposited cash Bank Account Personal Account Debit Receiver of
in bank Benefit
Module 1 Introduction to Accounting

Cash Account Real Account Credit Goes out

10. Till taking ( Cash Cash Account Real Account Debit Comes In
Sales) Sales Account Real Account Credit Goes Out
11. Received a bank Cash Account Real Account Debit Comes In
draft from
Shivamogga Shivamogga Personal Account Credit Giver of Benefit
Stores Stores Account
12. Paid Commission Nominal A/c Debit Expenses
Commission A/c
Cash A/c Real Account Credit Goes out
13. Paid Salary to Salary Account Nominal Account Debit Expenses
Nisam Cash Account Real Account Credit Goes Out
14. Received Cash Account Real Account Debit Comes In
interest on
government Interest Nominal Account Credit Income
securities Account
15. Withdrew from Drawings Personal Account Debit Receiver of
bank for Account benefit
personal use.
Bank Account Personal Account Credit Giver of Benefit

Journal Entries (Book of Original Entry)

A journal is a chronological systematic record of day to day transactions entered into by a Business. It is
a book where the transactions are recorded first of all according to double entry system.

1. Pass the Journal Entries.

Gopala Commenced Business with:

 Cash in hand Rs 75000

 Cash at bank Rs 225000
 Goods in Hand Rs 50000
 Furniture Rs 30000
 Plant & Machinery Rs 120000
 Land and Building Rs 300000
 Creditors Rs 80000
 Debtors Rs 60000
 Due by Narendra 15000
 Due to Nikhil Rs 90000
 Borrowed from wife Rs 45000
Module 1 Introduction to Accounting

Journal Entries

Sl Particulars LF Debit Credit

No
Cash Account Dr 75000
Bank Account Dr 225000
Goods in hand (stock account) Dr 50000
Furniture Account Dr 30000
Plant and Machinery Account Dr 120000
Land and Building Dr 300000
Debtors Account Dr 60000
Narendras Account Dr 15000

To Creditors account 80000

To Nikhil Account 90000
To Gopala Wife Account 45000
To Capital Account 660000
Capital = Assets total – Liabilities total
Capital = 875000 - 215000