Question 1.

Received cash from Ram 5,000

Purchased goods for cash 1,500
Sold goods to Hari 1,200
Paid to Ramavtar 400
Received from Hari 100
Bought furniture from Ram 200
Paid rent 280
Paid salary 500
--------------------------------------------------
Sohan commenced business with cash50,000
Purchased goods for cash10,000
Purchased goods from Mohan on credit6,000
Paid into bank 5,000
Purchased furniture 2,000
Sold goods for cash7,000
Sold goods to ram on credit5,000
Cash sales 3,500
Paid to Mohan on credit 3,000
Paid wages 100
Paid rent 1,200
Paid salaries 2,800
Rejected and returned 10% of goods supplied by Mohan

Ram commenced business with cash 30,000

Paid into bank 21,000
Purchased goods 1,500
Drew cash from bank for office use 3,000
Sold goods to Hari on credit 1,000
Purchased goods from Shyam 1,500
Cash sales 3,000
Paid to Shyam 1475 Discount received 25
Paid rent 500
Paid salaries 1,000
Goods (cost 200. sale price 250) taken by the proprietor for his personal use

Ramesh started business with cash 1,00,000

Paid into bank 70,000
Bought goods for cash 5,000
Drew cash from bank for office use 1,000
Sold goods to Krishna on credit 1,500
Bought goods from Shyam on credit 2.250
Received from Krishna 1,450 Allowed him discount 50
Paid cash to Shyam 2,150 Discount received 100
Cash sales for the month 8,000
Paid rent 500
Paid salary 1,000

Rahul started business with cash 1,00,000

Paid into bank 60,000
Bought goods from M/s S. Singh and Co. on credit 20,000
Purchased furniture 2,000
Purchased adding machine 8,000
Purchased typewriter (Payment in all cases made by cheque) 6,000
Paid for postage 150
Sold goods for cash 4,000
Sold goods on credit to Ws S. Sharda and co. 10,000
Paid to M/s S.Singh and Co.19500
Discount allowed by them 500
 Sold goods to M/s. Ray and Co. 5,600
Received cheque from M/s S. Shardhaand Co. in Full settlement of amount due from
them 9,750
Paid for electricity charges 100
Paid salary 1,500
Paid rent of building by cheque, half of the building is used by the proprietor for
residential use 5,000
Drew for private use 3,500

Started business with cash 80,000

Cash paid into bank 50,000
Bought stationary for cash 300
Bought goods for cash 21,000
Bought postage stamps 160
Sold goods for cash 7,500
Bought office furniture from Banerije Bros. 5,000
Sold goods to Mahendra 10,000
Received cheque from Mahendra 10,000
Paid Bannerjee Bros. by cheque 5,000
Sold goods to Ramesh and Co. 5,000
Bought goods from S. Seth and Bros. 7,000
Bought goods for cash from S. Narain and Co. 2,250
Sold goods to R Prakash 3,500
Ramesh and Co. Paid on account 2.500
Paid S. Seth and Bros. by cheque in full settlement 6.850
Paid salaries 2,500
Rent is due to S. Sharma but not yet paid 1000

Commenced business with 2,50,000

Paid into bank 235.000
Bought goods from Ra mesh and Co. 54,000
Sold goods to Rajesh 48,000
Bought goods from Ramchand 64,500
Paid wages in cash 800
Sold goods to MaheshChand 53,500
Received cheque from Rajesh (discount allowed 1,200) 46,800
Paid into bank 46,800
Paid to Ramesh and Co. (discount received 2,700) 51,300
Paid rent for three months up to March 4,000
Bought from C. Khare 74,000
Paid wages in cash 800
Paid offlce expenses in cash 700
Sold goods to Jagdish 32,000
Sold goods to Rajesh 16,000
Sold goods to MaheshChand 25,000
Payment received by cheque from Jagdish 32,000
Paid wages in cash 800
Paid office expenses in cash 500
Paid Ram Chand by cheque (discount 3,200) 61,300
Received cheque from MaheshChand (discount 1,500') 52,000
Mahesh Chand returned goods (not up to sample) 2,000
Paid wages in cash 800
Paid office expenses in cash 400
Paid salaries for the month 20,000
Received 220,000 for a Bills receivable (B/R) from H ari and deposited the same
into the bank

Enter the following transactions in thelournal of Suresh who trades in Readymade

garments
 Suresh paid into bank as capital 60,000
He bought goods for cheque 24,000
3 Sold to Mukand and Co. 6,700
Sold goods for cash 10,900
Paid sund expenses in cash 3,000
Cash sent to bank 15,000
Received cheque from Mukand and Co.6500 Discount allowed 200
Paid wages in cash 1,000
Paid for offce furniture and fittings by cheque 4,000
Bought goods from Ramesh and Bros. 10,800
Sold to Mahendra 18,700
Returned goods to Ramesh and Bros. 1,500
Sent cheque to Ramesh and Bros. in full settlement 9,000
Sold goods for cash 4,900
Paid into bank 4,000
Drew cash from office for personal use 500
Bank charged interest 200
Paid cash for stationary 300
Bought goods from Mohan and Co. Ltd . 10,000
Received from Mahendra on account 6,000
Sold household furniture for 00,000 and paid the money into Business
Sold goods costing 50,000 to Anita for cash at a profit of 20% on cost less 20%
trade Discount

Record the following transactions in the journal of Ashoka furniture Traders:

Started business with cash 4,00,000
Deposited into bank 3,50,000
Purchased Machinery (issued cheque for the same) 1,00,000
Paid installation charges for Machinery 2,000
Purchased timber from Singh and Co. at the list price of 20,000 He allowed
10%Trade Discount
Timber costing 5,000 was used for furnishing the office
Sold furniture to Rakesh on the list price of 10,000 and allowed him 10% Trade
Discount
Sent cheque to Singh and Co. in full Settlement 17,500
Received from Rakesh in full and final settlement 8,750
Paid wages 15,000
Issued a cheque for 5,000 in favour of the landlord for rent of February

Question 10.
Journalise the following transactions :
Paid Rs.2,000 in cash as wages on installation of a machine.
ii. Sold goods to Manohar, list price Rs.4,000, Trade Discount 10% and cash
Discount 5% he paid the amount on the same day and availed the cash discount.
iii. Received as order from Shyam for supply of goods of the list price Rs.1,00,000
with an advance of 10% of list price.
iv. Received commission Rs.5,000 half of which is in advance
v. Rajanikant is declared insolvent. A final compensation of 25 paise in the rupee
is received from his estate out of Rs.5,000.
vi. Cash embezzled by an employee Rs.1,000.

Question 11.
Journalise the following :
i. Isha invested Rs.2,00,000 in business.
ii. Opened a current account in bank Rs.1,20,000.
iii. Purchased goods for Rs.60,000 and paid Rs.2,000 for arrange.
iv. Purchased goods for Rs.1,00,000 from Rashmi.

Question 12.
Journalise the following transactions in the books of Akash :
i. Goods given as charity Rs.5,000.
ii. Salary for the month is outstanding Rs.2,000.
iii. Goods sold for a list price of Rs.50,000; trade discount allowed 10%, cash
discount allowed 10%.

Question 13.
Give journal entries for the following transactions giving in each case the nature
of account (whether asset, liability, capital,
expenses or revenue) and the rule applicable:
i. Ajit started business by investing cash Rs.50,00,000. He bought goods old
Rs.4,00,000 and furniture of Rs.5,00,000.
ii. Purchased building for Rs.10,00,000.
iii. Purchased goods for cash Rs.3,00,000.
iv. Purchased goods on credit from Chandler Rs.25,000.
v. Paid cartage Rs.2,000.
vi. Sold goods for cash Rs.2,55,000.
vii. Sold goods for cash to Rs.24,000.
viii. Sold goods to Mahendra on credit Rs.46,500.
ix. Cash withdrawn by Ajit for personal use Rs.5,000.

Question 14.
Journalise the following transactions :
i. Deposited cash into bank Rs.80,000.
ii. Paid salary Rs.46,000.
iii. Withdrew from the bank Rs.50,000 for office use.
iv. Withdrew from the bank Rs.30, 000 for private use.
v. Charged interest on capital Rs.1,25,000.
vi. Mahendra became insolvent. Only Rs.30,000 could be realised from him.

Question 15.
Journalise the following transactions:
i. Tarun introduced capital by cheque Rs.25,000.
ii. Purchased goods for Rs.20,000 and availed discount Rs.1,000.
iii. Sold goods to Puneet for Rs.5,000.
iv. Puneet paid cash and availed discount Rs.100

Question 16.
Journalise the following transactions:
Gaurav commenced business by introducing capital in cash Rs.21,000 and by cheque
Rs.50,000.
Gaurav purchased goods from Saurab for Rs.30,000 and Saurab allowed him Trade
Discount of Rs.3,000.
He sold goods to Ramesh against cash Rs.20,000 and allowed him Cash Discount of
Rs.400.
Paid salary to Suresh Rs.3,000.

Question 17.
Journalise the following transactions:
Rajan commenced business by introducing capital in cash Rs.11,000 and by cheque
Rs.1,50,000.
Purchased car for Rs.3,00,000 by taking loan of Rs.2,50.000 from bank.
Purchased goods for Rs.1,00,000 and availed Trade Discount of Rs.10,000.
Paid Rs.5,000 to bank as installment, Rs.2,000 towards principal and Rs.3,000 as
interest.

Question 18.
Journalise the following transactions in the books of Ajay:
Ajay returned goods purchased from Manoj Rs.22,000. He had availed Trade Discount
of Rs.2,200 on the goods returned.
Ajay received Rs.5,000 from Abhay which he had earlier written off as Bad Debts.
A fire occurred in the godown of Ajay and he lost goods worth Rs.10,000. The stock
was not insured.
Ajay took goods worth Rs.2,500 (Cost) for his personal use.

Question 19.
Journalise the following transactions in our books:
i. Amount due from Sushil Rs.2,000 is not recoverable.
ii. Goods purchased for Rs.1,000 given as charity.
iii. Cheque of Jatinder of Rs.10,000 deposited, returned unpaid.
iv. Bank charges charged by bank Rs.250.

Question 20.
Journalise the following transactions:
i. Shyam became insolvent. A first and final compensation of 75 paise in a rupee
was received from his Official Receiver. He owed us 1000
Received cash for a bad debt written off last year 500
Rent due to landlord. 800
iv. Salaries due to clerks. 1,000
v. Placed an order with Rakesh Mohan for the supply of goods of the list price of
21,00,000. In this connection, we paid 10% of the Out price as an advance by
cheque.

Question 21.
Journalise the following entries:
Goods worth Rs.500 given as charity.
Received Rs.975 from Harikrishna in full settlement of his account for Rs.1,000.
Received a first and final dividend of 60 paise in a rupee from the Official
Receive Rajan, who owed us Rs.1,000.
Charged depreciation on plant Rs.1,000.

Question 22.
Journalise the following transactions with narration:
i. Paid Income Tax Rs.3,000.
ii. Interest on Capital Rs.300.
iii. Goods worth Rs.500 given as charity.

Question 23.
Journalise the following:
i. Goods worth Rs.500 were used by the proprietor for domestic purposes.
ii. Goods uninsured worth Rs.3,000 were destroyed by fire.
iii. Paid Rs.250 as wages on installation of a new machine.
iv. Supplied goods costing Rs.600 to Mohan issued at 10% above cost less 5% Trade
Discount.

Question 24.
Journalise the following transactions:
Goods destroyed by fire Rs.500.
Paid Rs.2,500 in cash as wages on installation of a machinery.
Issued a cheque in favour of M/s. Parmatma Singh and Sons on account of purchase
goods worth Rs.7,500.
Goods sold costingRs.6,000 to M/s Kalu Sons at an invoice price 25% above cost less
5% Trade Discount.

Question 25.
Prepare the journal from the transactions given below:
i. Rent outstanding Rs.5,000.
ii. Received interest on loan from the debtor Rs.25,000.
iii. Provided interest on capital (Rs.50,000) at 6% for six months.
iv. Received Rs.780 from Surinder in full settlement of debt to his account for
Rs.800.

Question 26.
At the end of an accounting year, a trader finds that no entry has been passed in
the books of account in respect of the
following transactions:
i. Outstandingsalary at the end of the year 2,200
Goods given as charity during the year 300
iii. Stock in hand at the end of the year 20.000

Question 27.
Journalise the following transactions in the books of Harpreet Bros:
i. Goods worth Rs.50,000 and Cash Rs.20,000 were stolen by an employee.
ii. Goods costingRs.10,000 were returned to Ram Bros. as the goods were hazardous
for the health of the consumers.
Also give value affected in each of the above case.

Question 28.
Journalise the following:
i. Received a cheque from J. Peterson Rs.5,450. Allowed him discount of Rs.150.
ii. Returned goods to Sudershan of the value of Rs.350.
iii. Issued a cheque in flavor of M/s Karanvir Timber Company on account of the
purchase of timber worth Rs.7,500.
iv. Paid Rs.250 in cash as wages on installation of a machine

Question 29.
Journalise the following transactions in the books of M/s. Hari Ram:
i. Rahul who owned Rs.5,000 was declared insolvent and 60 paise in a rupee are
received as final compensation.
ii. Out of insurance paid this year, Rs.3,000 is related to next year.
iii. Provide depreciation @10% on furniture costing Rs.10,000 for 9 months

Question 30.
Journalise the following transactions:
i. Paid customs duty Rs.11,000 in cash on import of a new machinery.
ii. Goods sold costing Rs.10,000 to M/s Abbas and sons at an invoice price 10%
above cost less 10% trade discount.

Question 31.
Journalise the following transactions in the books of Gaurav:
i. Received Rs.9,500 from Sohan in full settlement of his account for Rs.10,000.
ii. Received Rs.9,500 from Shyam on his account for Rs.10,000.
iii. Paid Rs.4,800 to Mohan in full settlement of his account for Rs.5,000.
iv. Paid Rs.4,800 to Ashok on his account for Rs.5,000.

Question 32.
Journalise the following transactions in the books of Manoj Store:
i. Purchased goods from Ramesh Rs.20,000 less trade discount at 20% plus VAT @10%
ii. Sold goods costing Rs.7,000 to Krishna for Rs.9,000 plus VAT @10%
iii. Sold goods for Rs.10,000 and charged VAT @10% against cheque.
iv. VAT was deposited into government account on due date.

Question 33.
Journalise the following transactions :
i. Paid Rs.2,500 in cash as wages on installation of a machine.
ii. Sold goods to kitty at a list price of Rs.20,000. Sales subject to 10% trade
discount and 5% cash discount if payment is
made immediately. Kitty availed cash discount.
iii. Supplied goods costing Rs.60,000 to Shyam. Issued invoice at 10% above cost
less 5% trade discount.

Question 34.
Pass the opening entry from the following Balance sheet as at 31. March, 2016 of
Vikas:
Liabilities -Capital A/c: Opening balance 5,05,115 Add: profit for the year
1,20,115 Less: drawings 60,000 5,65,230 Salary payable 15,000 Magic trades 27,220
Babbarand co. 11,770
Asset Land and Building 1.50,000 Plant and Machinery 2,50,750 Chandra and Sons
71,270 Closing Stock 56,250 Cash in Hand 15,700 Cash at Bank 75,250

Question 36.
Following balances Appeared in the books of Ashok on IstApril, 2016:
Assets: Cash 050,000:Stock 230,000; Debtors 150,000:M achinery Z60,000
Liabilities: Creditors - Rajesh 130,000
Following transaction took place in April, 2016:
Sold goods for cash 7,000
Goods returned by ram 1,000
Purchased goods from Rajesh list price 10,000 value at 9,000
Bought goods of the list price of Z15,000 from Rakesh less 10% trade -discount and
5% cash discount and paid 40% price immediately
Paid to Rajesh in full settlement of his account 38,600
Paid for life insurance premium of the Proprietor 500
Received for commission 2,000
Pass the journal entries for the above transactions and post them into the ledger
and balance the ledger accounts. Hint: Capital = Assets - Liabilities = 11,60,000

Journalise the followin transaction in the)ournal of M/s. Gupta brothers and post
them to the ledger:
2016 Z March 01 Started business with cash 2.00.000
March 02 Opened bank account in SBI 80,000
March 04 Goods purchased from Raj 22,000
March 05 Goods purchased for cash 30.000
March 08 Goods sold to Naman 12,000
March 10 Cash paid to Raj 22,000
March 15 Cash received frorn Naman 11700 Discount allowed 300
March 16 Paid wages 200
March 18 Furniture purchased for office use 5000
March 20 Withdrawn from bank for personal use 4,000
March 22 Issued cheque for rent 3,000
March 23 Goods taken for household purpose 2,000
March 24 Drawn cash from bank for office use 6,000
March 26 Commission received 1.000
March 27 Bank charges 300
March 28 Cheque issued for insurance premium 3.000
March 29 Paid salary 10,000
March 30 Cash sales 20,000
-----------------------------------
Question 38.
On 1st April, 2016, following were Ledger balances of M/s. Ram Lal and Co.:
Cash in hand T300; Cash at bank 07000:Bills Payable T1,000: Zahir (Dr.) 0800;Stock
24,000
Gobind (Cr.) 2,000;Sharma (Dr.) 01,500; Ram Lai (Cr.) 0900;Capital 09,700.
Transactions during the month were :
2016 0 0 April 02 Bought goods from Gobind 900
April 03 Sold goods to Sharma 1,000
April 05 Bought goods from Ram Lal 1,200
April 08 Sold goods to Zahir 500
April 15 Paid Gobind by Cheque 1500
April 18 Received from Sharma by cheque 2,000 Allowed him discount 50
April 20 Sold goods to Sharma 800
April 20 Paid rent by cheque 150
April 25 Sold goods to Zahir 1,000
April 30 Paid salaries in cash 300
Post the above transactions to the ledger and take out a trial balance on
30thApril, 2016.
----------------------------------------
Question 39.
You are to open the books of Rajesh Prabhu, a trader through the journal to record
the assets and liabilities
and then to record the daily transactions for the month of April, 2016.
Atrial balance is to be extracted as at 30thApril, 2016;
2016 April 01
Assets: Premises 02,00,000, Delivery Van 050,000, Fixtures 05,000, Stock 075,000
Debtors: Hariharan 030,000, Rajan 750,000; Cash at Bank 045,000,
Liabilities: Creditors: Jawahar 01,00,000;Vikas 045,000; Telephone Expenses Payable
04,000:Expenses Payable 05,000
April 01 Paid rent by cheque 75,000
April 02 Goods purchased an credit from Prabhat 015,000; Rajhans 08,000, Passi
07,000
April 03 Goods sold on credit to Rakesh 017,000, Devender 05,000, Lalit 08,000,
Vijay 06,000
April 04 Paid the bill of petrol expenses for delivery van 05,700
April 05 Cash drawings by Rajesh Prabhu 04000
April 07 Paid salaries for the month of March, 2016 7,000
April 09 Cash Sales 05.000
April 11 Goods returned by Rakesh 04,000, Vijay 01000
April 12 Received cheques from debtors Hariharan 020,000, Rajan 040,000
April 16 Goods returned to Prabhat 04.000, Rajhans 01.000
April 20 Cheques issued to Creditors: Jawahar 050,000;Vikas 010,000
April 22 Received cheques from Hariharan010,000;Rajan 010,000, Rakesh 010,000,
Devender 05,000; Cheques received from Rakesh and Devender are dated 15th May, 2016
April 24 Cheques from Rakesh and Devender were got discounted from bank paying
interest @10% p.a.
April 25 Received cash from Lalit in full settlement 07,800
--------------------------------------
Question 40.
Write up the following transactions in the Journal of Ashok and post them to the
ledger for April, 2016.
Also, prepare a trail balance as on 30thApril, 2016

Commenced business with cash 40000

Deposited in bank 30000
Bought goods for cash 5000
Sold goods to Amit 2500
Bought goods from Parvat 5100
Received cash from Amit 1960 Discount allowed 50
Paid cash to Parvat 3900 Discount allowed by him 100
Received cash for goods sold 2750
Bought goods from Dinesh 2350
Withdrew cash for private expenses 1000
Received cash from Amit and deposited into bank 500
Paid sundry trade expenses 250
Paid rent 450
Paid cash to Dinesh 2300 Discount received 50
Goods sold to Remy 4750
Paid for carriage 50
----------------------------------------------
Question 41.
Shri $.K. Gupta commenced business on ast April, 2016 with a capital of €1,00,000of
which 760,000 was paid into his Bank Account
and $40,000 retained as cash. His other transactions during the month were as
follows:

April 02 Bought office furniture and fittings 20,000

April 05 Purchased goods 16,000
April 08 Purchased goods from Ramesh 1,100
April 12 Sold to Sameer 2,100
April 13 Purchased stationary for cash 1,800
April 13 Paid Ramesh in cash 1,000 Discount received 100
April 17 Withdrawn cash for office use 4,000
April 18 Sen sold goods to us 3,000
April 19 Received cash from Sameer 2,000
Allowed him discount 100
April 20 Sold to raj Banwari 4,000
April 28 Cash sales 1,400
April 30 Paid salary 800
April 30 Paid rent 500
April 30 Paid general trade expenses 200
April 30 Paid cash into bank 2,000
------------------------------------------------
Question 42.
Journalise the following transactions, post to the ledger and prepare a trial
balance to check its arithmetical accuracy:
April 01 Commenced business with cash18,000
April 02 Deposited into bank5,000
April 03 Bought goods for cash2,500
April 05 Bought goods from Shyamlal7,320
April 10 Sold goods for cash1,630
April 11 Paid cash into bank2,500
April 13 Bought furniture for cash300
April 15 Sold goods to Vinod1,280
April 16 Received cash from Vinod1,232 Allowed him discount48
April 17 Paid cash to Shyamlal 1,000Discount received 25
April 18 Paid wages18
April 20 Sold goods to Jagdish Chand3,600
April 21 Paid cash for trade expenses15
April 22 Sold goods to Radhey Shyam2,338
April 23 Received from Jagdish Chand2,000Allowed him discount50
April 25 Paid cash to Shyamlal on account2,000
April 27 Cash sales300
April 28 Paid cash for stationary17
April 29 Paid cash for miscellaneous expenses16
April 30 Bought goods from Ram and Co.1683
April 30 Withdrew cash for private expenses150
-----------------------------
============================================
ch6

(i) Land;
(ii) Investments;
(iii) Building;
(iv) Interest Received;
(v) Salary;
(vi) Bank Overdraft;
(vii) Debtors;
(viii) Creditors;
(ix) Bad Debts;
(x) Capital;
(xi) Depreciation;
(xii) Motor Vehicles;
(xiii) Freight;
(xiv) Wages;
(xv) Goodwill;
(xvi) Repairs.
-------------------------------
(i) Plant and Machinery;
(ii) Bank Loan;
(iii) Sales;
(iv) Rent;
(v) Discount Received;
(vi) Carriage Inwards;
(vii) Carriage Outwards;
(viii) Purchases;
(ix) Bills Payable;
(x) Wages;
(xi) Advance Income;
(xii) Accrued Income;
(xiii) Goodwill;
(xiv)Furniture and Fixtures;
(xv) Outstanding Expenses;
(xvi) Capital
---------------------------------
Question 3.
On which side will be the increase in the following accounts recorded? Also,
mention the nature of the account:
i. Furniture A/c
ii. Mohan (Proprietor)
iii. Salary A/c
iv. Purchases A/c
v. Sales A/c
vi. Interest Paid A/c
vii. Sohan (Creditor)
viii. Ram (Debtor)
----------------------------------------
Question 4.
On which side will be the decrease in the following accounts recorded? Also,
mention the nature of the account:
i. Cash
ii. Bank Overdraft
iii. Outstanding Salary paid
iv. Outstanding Rent
v. Prepaid Insurance
vi. Mohan, Proprietor of the business
-------------------------------
Question 5.
Following is the list of various accounts. Find out which are Assets, Liabilities,
Capital, Revenue or Expense Accounts:
i. Machinery
ii. Bank
iii. Sales
iv. Purchases
v. Unsold Stock
vi. Bank Overdraft
vii. Ram (Customer)
viii. Cash
ix. Interest Received
x. Mohan (Proprietor)
----------------------------------
Question 6.
You are given a number of accounts below. State which of them will show a debit
balance and which a credit balance:
i. Carriage
ii. Machinery
iii. Sales
iv. Cash
v. Ram (Customer)
vi. Sales Return
vii. Purchases
viii. Bad Debts
ix. Discount Allowed
x. Rent
xi. Commission Received
xii. Capital
xiii. Repairs
xiv. Purchases Return
-------------------------
Question 7.
Put the following transactions on the proper side of an Interest Account:
i. Interest earned Rs.2,000
ii. Interest paid Rs.1,000
iii. Interest due Rs.500
-------------------------------------
p15
From the following particulars, prepare the proprietor's Capital Account:
2013
April 1 Started business with 45,000
May 10 Withdrew from business for personal use 10,000
July 15 Further capital introduced 55,000
Nov. 30 Income tax paid 5,000
2014
Mar. 31 Profitfor the year 30,000
----------------------------------
Question 13.
From the following particulars, prepare the proprietor's Capital Account:
ist April, 2015 - Commenced business with cash £20,000
3 ist March, 2016 - Net Loss as per Profit and Loss Account £1,800
3 ist March, 2016 - Drawings during the period £1,500
Balance the same and explain what the closing balance indicates.
---------------------------------
question 14.
From the following transactions, state the nature of account and state which be
debited and which account credited:
i. Gaurav started business with cash 71,00,000
ii. He purchased furniture for business 20,000
iii. Purchased goods on credit from Anshul %6,000
iv. Paid to his creditor, Anshul ~2,000
Vv. Paid salary to his clerk £1,000
Vi. Paid rent %500
Vii. Received interest 200
------------------------------------
p12
Put the following on the proper side of a Cash Account, a Debtor's Account and a
Creditor's Account:
i. Sold goods to Sanjay on credit 50,000
ii. Sold goods to Mohan for cash 20,000
iii. Purchased goods from Ram on credit %25,000
iv. ‘Cash received from Sanjay 19,000
Vv. Goods returned by Sanjay %2,000
vi. Paid rent 2500
vii. ‘Cash paid to Ram £15,000
-----------------------------------------------
Question 11.
Open a'T' shape account of debtor ‘Brij’ and write the following transactions on
the proper side:
i. Sold goods to Brij on credit 725,000
ii. Cash received fram Brij 210,000
Discount allowed to him 7500
iii. Goods returned by Brij 75,000
----------------------------------------------
Question 9.
Open a 'T' shape Cash Account. Put the following transactions on the proper side
and balance the account:
Mohan started business with cash = 40,000
Purchased goods = 20,000
Sold goods = 24,000
Paid rent = 400
Paid salaries = 600
Drew for personal use ~ 1,000
-------------------------------
Question 10.
Open a ‘T' shape account of creditor, Rakesh’, and write the following transactions
on the proper side:
i. Goods purchased from Rakesh on credit 250,000
ii. Goods returned to Rakesh for 75,000
iii. Paid to Rakesh =20,000
iv. Purchased goods from Rakesh on credit 710,000
------------------------------------------
Question 8.
i. Machinery purchased %40,000
ii. Machinery sold ~10,000
iii, Machinery purchased +8,000
iv. Machinery sold ~14,000
Vv. Depreciation on machinery 1000
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elements of accounts 1 pdf
4. To which account, the following transactions will be debited and credited in the
books of Nilima?
Describe with reason : Questions
1) ₹ 50,000 brought in cash and started business.
(2) A loan of ₹ 10,000 taken from Jasleen.
(3) Bank account opened by depositing ₹ 30,000.
(4) A computer purchased for ₹ 8,000.
(5) Stationery purchased ₹ 1,000.
(6) Purchase made of ₹ 20,000.
(7) Purchase is made of ₹ 30,000 from Raman.
(8) Goods of ₹ 15,000 sold on cash for ₹ 28,000.
(9) Goods of ₹ 8,000 sold to Nila for ₹ 15,000.
(10) Goods returned to Raman of ₹ 2,000.
(11) Goods returned by Nila of ₹ 1,500.
(12) Paid ₹ 500 for carriage.
(13) Goods of ₹ 200 destroyed by fire.
(14) Commission received ₹ 5,000.
(15) ₹ 2,000 paid for salary.
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5. To which account, the following transactions will be debited and credited in the
books of Ganesh ?
Describe with reason: Questions
(1) ₹ 75,000 brought in cash and commenced business.
(2) Incurred Puja expenses of ₹ 2,000.
(3) Brought furniture of ₹ 10,000.
(4) Deposited ₹ 30,000 to the State Bank of India.
(5) Obtained loan of ₹ 30,000 from wife.
(6) Purchase is made of ₹ 20,000 and amount is paid by cheque.
(7) Sales is made of ₹ 42,000 and amount is received by cheque.
(8) Withdrawn ₹ 22,000 from Bank.
(9) ₹ 2,000 paid insurance premium by cheque.
(10) ₹ 3,500 received for brokerage.
(11) Goods of ₹ 12,000 sold to Dani. Amount received by cheque.
(12) Goods of ₹ 8,000 purchased from Dipak. Amount paid by cheque.
(13) Withdrawn ₹ 2,500 from business for personal use.
(14) Withdrawn goods of ₹ 1,500 from business for personal use.
15) Dividend received ₹ 2,000 through cheque. Cheque deposited with bank.
(16) Bank has credited ₹ 200 of interest.
(17) Bank has debited ₹ 100 of bank charges.
(18) Wages paid ₹ 300.
(19) Paid loan interest of ₹ 350.
(20) Machine purchased of ₹ 12,000.
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(5) Write journal for any two imaginary transactions.
Write journal entries in the books of Dhaval :
(1) Started business with a capital of ₹ 10,000.
(2) Purchased goods of ₹ 2,000 from Ashwin for cash.
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Question 5. From the following transactions write journal in the books of Pranjal :
(1) Introduced ₹ 10,000 cash and commenced business.
(2) Goods of ₹ 5,000 purchased on cash.
(3) Goods of ₹ 8,000 purchased on credit from Rajan.
(4) Goods of ₹ 2,000 given for donation.
(5) Given order to Shivani to dispatch goods of ₹ 3,000.
(6) Shivani has dispatched the goods as per our order.
(7) Paid ₹ 2,500 for life insurance premium.
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Write journal entries for the following transaction in the books of Shubham: 2014
Jan. 1 Introduced goods of ₹ 10,000, cash ₹ 15,000, furniture ₹ 5,000, debtors of ₹
10,000 and commenced business.
12 Personal motor-car sold for ₹ 80,000 and introduced ₹ 50,000 in business.
13 ₹ 1,000 withdrawn from bank for personal use.
15 Income tax refund of ₹ 500 of owner of sole proprietor deposited with bank
account of business.
20 From business goods of ₹ 1,000 and cash ₹ 400 are withdrawn for personal use.
21 Travelling expense of daughter ₹ 1,500 paid from business.
28 Furniture of ₹ 2,000, purchased from Ganga Furniture Mart for house.
31 Life insurance premium of ₹ 500 paid by cheque.
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Write following transactions in the journal of Pushkar: 2014
Feb. 1 Due to additional requirement of funds, 12 % loan of ₹ 20,000 borrowed from
Ram.
3 ₹ 8,000 lent to Laxman at interest rate of 8 %.
8 Received cash ₹ 800 for loan lent to Bharat and ₹ 200 for interest.
10 ₹ 5,000 returned back to Seeta for borrowed loan and paid interest ₹ 400.
12 Received interest ₹ 200, for loan lent to Kaushal.
15 Interest for one month paid for loan obtained from Ram.
18 ₹ 75 became receivable for interest on loan of Laxman
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p8-
March 1 ₹ 20,000 deposited with bank and opened account.
5 A cheque of ₹ 5,000 received from Hari, which immediately deposited with bank.
6 A cheque of ₹ 2,000 received from Ramaniklal for dues.
10 Goods sold to Rupali ₹ 14,000, out of which cheque received for half amount
which deposited with bank.
12 Goods of ₹ 10,000 purchased from Deepkala and paid half amount by cheque.
15 ₹ 400 withdrawn from bank for personal expenses and ₹ 800 for office expense.
18 Life insurance premium ₹ 300 and fire insurance premium ₹ 450 paid by cheque.
20 Bank has approved overdraft of ₹ 25,000.
25 Bank has credited interest of ₹ 250 and debited bank charges of ₹ 100.
31 A cheque of ₹ 5,000 issued for foreign visit of son of owner from business
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p9-
April 1 Cash purchase ₹ 15,000 and cash sale ₹ 14,000.
5 A personal goods of ₹ 10,000, brought into the business.
7 Goods of ₹ 12,000 purchased from Harsh.
10 Out of goods purchased due to defective goods half goods returned to Harsh.
12 Goods of ₹ 10,000 purchased from Ramila and half amount paid by cheque.
15 Goods purchased from Ramila sold to Mita after adding 30 % profit, at 10 % trade
discount.
18 Mita returned goods of ₹ 1,000.
20 Goods of ₹ 20,000 sold to Kalpana at 10 % trade discount and 5 % cash discount.
22 Goods of ₹ 2,000 destroyed by fire and insurance company admitted claim of ₹
1,000.
25 Goods of ₹ 500 ruined in rain, ₹ 200 are realized by selling it.
27 Goods of ₹ 300 received as free sample.
29 Goods of ₹ 250 was received as free sample sold for ₹ 400.
30 A mobile of ₹ 1,500 purchased against exchange of goods of ₹ 1,000.
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p10-
(1) A machine purchased by cheque f 20,000 and paid wages for machine installation
₹ 500 in cash.
(2) Furniture of ₹ 3,000 purchased from Kaveri Furniture Mart and carriage paid in
cash ₹ 60.
(3) 50 shares of Mahalaxmi Mill purchased at ₹ 100 per share and brokerage 20
paise per share, paid by cheque.
(4) For furniture of ₹ 5,000 goods given of ₹ 4,000.
(5) An old machine of ₹ 6,000 sold for X 5,000.
(6) Land purchased ₹ 50,000 and incurred ₹ 2,000 for documentation and legal
charges Payment is made in cash.
--------------------------------
p11
1 Paid ₹ 500 for refreshment at inaugural function of shop.
2 Purchased necessary books of accounts ₹ 400 for business.
3 Paid ₹ 200 for wages and ₹ 100 for carriage.
5 Paid ₹ 500 for shop rent and ₹ 300 for house rent.
10 ₹ 400 received for commission.
12 A cheque of ₹ 800 received for brokerage.
15 Paid advertisement bill of Gujarat Samachar ₹ 300.
20 Received equity share dividend ₹ 500.
24 Essar company has paid debenture interest by cheque ₹ 1,000.
25 ₹ 3,000 paid for signboard of business.
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p12
June 1 Introduced cash ₹ 50,000, stock of goods ₹ 10,000, debtors of ₹ 15,000 and
commenced business.
2 10 % loan of ₹ 20,000 is borrowed from Smt. Sharda. 3 Goods ₹ 8,000 purchased
from Rameshwar Stores at 10% trade discount.
5 Goods of ₹ 5,000 sold to Gayatri Stores at 10 % trade discount.
7 Goods of ₹ 15,000 purchased from Radha-Kishan Stores at 10% trade discount and 10
% cash discount, issued cheque for half amount.
10 An order of ₹ 5,000 received from Vibhuti to sent goods.
12 As per order of Vibhuti, goods sent at 10 % trade discount. Paid ₹ 50 carriage
in cash.
15 Vibhuti became insolvent and bad debts recorded of ₹ 300, a cheque received for
remaining amount.
16 On payable amount to Anup ₹ 1,050, paid ₹ 1,000 by cheque and settled the
account.
20 Received ₹ 1,500 for written off bad debts of Imandar.
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p13
July 1 Brought ₹ 50,000 cash, debtors ₹ 20,000, stock of goods ₹ 10,000 and
creditors of ₹ 5,000 and commenced business.
2 Deposited cash ₹ 20,000 with Vijaya Bank and opened account.
3 Goods of ₹ 20,000 purchased from Sumul at 10 % trade discount and 10 % cash
discount. Paid half amount by cheque
4 A furniture of ₹ 15,000 purchased on credit from ‘Punit Furniture Mart’. A
carriage of ₹ 100 paid in cash.
5 A defective goods of ₹ 3,000 returned to Sumul.
6 Goods of ₹ 12,000 sold to Rajshri at 10 % trade discount and 10 % cash discount.
Received half amount by cheque.
8 Goods of ₹ 15,000 sold to Mahendra on cash at 10% trade discount and 10% cash
discount.
10 Withdrawn goods of ₹ 300 and cash ₹ 200 for personal use.
11 Purchased plastic bags of ₹ 200 for goods packing by cash.
12 ₹ 2,000 paid by cheque for salary and wages.
13 Bad debts took place ₹ 300, which was due from Rajshri and get the remaining
amount.
14 Due to additional requirement of funds, 12 % loan of ₹ 25,000 obtained from Axis
Bank.
15 Goods of ₹ 2,000 destroyed by fire, for which insurance company has admitted
claim of ₹ 1,500. Realized ₹ 200 from goods burnt by fire.
16 Both life insurance premium of son ₹ 450, and fire insurance premium of ₹ 550
paid by cheque.
18 Nirma Company gave 30 number of soap free of cost as a sample, which are sold
for ₹ 250.
20 Received ₹ 100 from Rajshri for bad debts written off.
25 Axis Bank has charged loan interest of ₹250.
28 Paid ₹ 2,000 for painting work of personal building and ₹ 1,000 for painting
work of shop.
29 Paid internet connection deposit ₹ 2,000 by cheque
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p16-
From the following transaction write journal entries in the books of Shri
Dineshbhai of Dahod:
The following GST rates are applicable to business transactions of Shri Dineshbhai.
GST is not included for follwing transactions. Add applicable amount of GST and
write journal entries.
Particular of GST On goods On services
CGST 6% 2.5 %
SGST 6% 2.5 %
IGST 12% 5.0%
April 1 Goods of ₹ 50,000 purchased at 10 % trade discount from Sureshbhai of
Surendranagar. The payment is made by cheque.
4 Goods of ₹ 40,000 purchased at 10 % cash discount from Vishnubhai of Varansi
(UP).
7 Goods of ₹ 60,000 sold at 10 % trade discount to Himanshubhai Himatnagar.
11 Goods of ₹ 50,000 sold at 10% trade discount to Shashikant of Simla (H.P.) and
payment received through cheque.
15 14 goods returned to Vishnubhai and proportionate GST is adjusted.
18 13 goods returned by Himanshubhai and proportionate GST is adjusted.
25 A cupboard of ₹ 20,000 purchased from Sahajanand Furniture Mart of Ahmedabad.
28 Shop rent paid ₹ 8,000
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p17-
From the following transactions write journal entries in the books of Kiyansh Patel
of Kesod: The following GST rates are applicable to business transactions of Shri
Kiyansh. GST is not included in these transactions. Add applicable amount of GST
and write journal entries
Particular of GST On goods On services
CGST 9% 2.5 %
SGST 9% 2.5 %
IGST 18% 5.0 %
May 1 Goods of ₹ 40,000 purchased at 10 % trade discount and 10 % cash discount
from Savan Patel of Surat.
3 Goods of ₹ 30,000 purchased at 10 % trade discount from Ayush Shah of Amravati
(Maharashtra). The payment is made by cheque.
5 Goods of ₹ 50,000 sold at 10 % trade discount to Ansh Avasthi of Ahmedabad. Half
amount received through cheque.
8 Goods of ₹ 20,000 sold at 10 % trade discount and at 5 % cash discount to Neel
Mehta of Nagpur (Maharashtra).
11 14 goods returned to Savan Patel of Surat. The proportionate amount of GST is
adjusted.
16 15 goods received book from Neel Mehta of Nagpur the proportionate amount of GST
is adjusted.
24 A computer of ₹ 40,000 for office from Shubh Infotech. The payment is made by
cheque.
30 Office rent of ₹ 10,000 paid by cheque.
31 Godown rent of ₹ 20,000 received by cheque.
31 ₹ 25,000 received for commission by cheque from trader of Bhopal (Madhya
Pradesh)
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2. Write journal entries for the following transactions and explain accounting
treatments based on equation :
Questions
(1) Commenced business with capital of ₹ 80,000.
(2) ₹ 20,000 deposited with bank and opened account.
(3) Goods of ₹ 40,000 purchased from Himani on credit.
(4) Goods of ₹ 30,000 purchased for cash.
(5) Goods of ₹ 35,000 sold for ₹ 55,000 to Jaslin on credit.
(6) Goods of ₹ 10,000 sold for ₹ 18,000 in cash.
(7) Goods of ₹ 2,000 returned to Himani.
(8) Goods of ₹ 4,000 returned by Jaslin.
(9) Accounts are settled with Himani and Jaslin.
(10) Withdrew ₹ 5,000 from bank.
(11) Salary of ₹ 4,000 paid by cheque.
(12) Commission received in cash ₹ 3,000 and ₹ 2,500 are outstanding.
(13) Rent paid in cash ₹ 4,000 and ₹ 1,500 are outstanding.
 (14) Goods donated ₹ 2,000.
(15) Furniture of ₹ 15,000 purchased from Prexa Furniture Mart.
(16) College fees of daughter paid ₹ 6,000.
(17) ₹ 500 bank has credited for interest and debited ₹ 200 for bank charges.
(18) ₹ 2,500 received in advance for interest.
(19) Advertisement expense paid in advance ₹ 2,000.
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ts grewal ch 6
Question 1: Following accounts are being maintained in the books of Shri Ashok.
Classify them
into Personal, Real and Nominal Accounts:
i} Land and Building
(vil) Investments
(xiv) Ramesh, a debtor(
(ii) Excise Duty
(vil) Salary
(xv) Interest Received
(ili) Creditors
(ix) Debtors
(xvi) Bank Overdraft
(iv) Capital
(x) Bad Debts
(xvil} Purchase Returns
(v) Motor Vehicles
(xi) Depreciation
(xvill) Drawings
(vi) Goodwill
(xil) Wages
(xix) Freight
(xii) Repairs
(xx) Return Inwards.
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Question 2: Classify the following into Assets, Liabilities, Capital, Expenses and
Revenue:
(i) Land
(il) Investments
(i) Building
(iv) Interest Received
(v) Salary
(vi) Bank Overdraft
(vil) Debtors
(vill) Creditors
(ix) Bad Debts
(x) Capital
(xi) Depreciation
(xi) Motor Vehicles
(xi) Freight
(xiv) Wages
(xv) Goodwill
(xvi) Repairs
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Question 3: Classify the following into assets, liabilities, capital, revenue, and
expenses:
i} Plant and Machinery
(il) Bank Loan
(iil) Sales
iv) Rent
(v) Discount Received
(vi) Carriage Inwards
(vil) Carriage outwards
vill) Purchases
(ix) Bills Payable
(x) Wages
(xi) Advance Income
(xii) Accrued Income
(xiii) Goodwill
(xiviFurniture and Fixtures
xv) Outstanding Expenses |
(xvi) Capital
--------------------------------
Question 4: On which side will the increase in the following accounts be recorded?
Also, state the
nature of the account:
i) Furniture A/c
ii) Mohan (proprietor)
y) Sales A/c
vi) Interest Paid A/c
((ili) Salary A/c
( vil) Sahan (Greditar)
(iv) Purchases A/c
vil) Ram (Debtor)
------------------------------
Question 5: On which side will the decrease in the following accounts be recorded?
Also, state the nature of the account:
(i) Cash
(ii) Bank Overdratt
(il) Qutstanding salary paid
(iv) Outstanding Rent
(vy) Prepaid Insurance
(vi) Mohan, Proprietor of the busines
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Question 6. Whether an account will be debited or credited to record
(i) Increase in revenue.
(ii) Decrease in expense.
(iii) Drawings
(iv) The fresh capital introduced by the owner
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Question 6: From the following Transactions, state the nature of account and state
which account will be debited and which account credited:(Old Question)
(i) manu started business with cash 1,00,000
(ii) [He purchased furniture for business 20,000
(ii) |Purchase goods on credit from Anshul 5,000
(iv) [Paid to his creditor, Anshull 2,000
(v) [Paid salary to his clerk 1,000
(vi) [Paid Rent 500
(vil) [Received Interest 200
-----------------------------------
Question 7: Open a 'T' shape account for machinery and put the following
transactions on the proper side:
(i) | Machinery purchased 40,000
(ii) | Machinery sold 10,000
(ili) | Machinery purchased 8,000
(iv) | Machinery discarded 14,000
(v} |Depreciation on machinery 1,000
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Question 8: Open a 'T' shape Cash Account. Put the following transactions on the
proper side and balance the account:
(i) [Mohan started business with cash 40,000
(ii) Purchased Goods 20.000
(iii) [Sold Goods 24.000
(iv) [Paid Rent 400
(Vv) |Paid salaries 600
(vi) Drew for personaluse 1,000
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Question 9: Open a 'T’ shape account of creditor, ‘Rakesh’ and write the following
transactions on
the proper side:
(i) (Goods purchased from Rakesh on credit 30,000
(ii) (Goods returned to Rakesh for 5,000
(iiPaid to Rakesh 20,000
(ivJPurchase goods from Rakesh on credit 10,000
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Question 10: Open a'T’ shape account of debtor ‘Brij’ and write the following
transactions on the
proper side:
(1) (Sold goods to Bri on creait 25.000
ji) [Cash received from Brij 10,000
Discount allowed to him 500
(ii) [Goods returned by Sri 5 000
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Question 11: Put the following on the proper side of a Cash Account, a Debtor's
Account and a Creditor's Account :
(i) Sald goodsto Sanjay on credit 50.000
(ii) Sold goodsto Mohan for cash 20.000
(O) Purchased goods fram Ram on credit 25.000
(iv) Cash received fram Sanjay 19,000
iv) Goods returned by Sanjay 2.000
(vi) Paid rent 500
(Vii) Gash paid to Ram 15.000
---------------------------------
Question 12: From the following particulars, prepare the proprietor's Capital
Account:
1st April, 2017 Commenced business with cash 2,00.000
31st March, 2015 Net Loss as per Profit and Loss Account 16,000
31st March, 2016 Drawings during the period 15,000
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Question 13: From the following particulars, prepare the proprietor's Capital
Account:
2013 7
April Started business with 45.000
May10 |Withdrew fram business for personal use 10.000
July 16 = [Further Capital introduced 45.000
Nov. 30 [income tax paid 5.000
Mar.31 Profit forthe year 30,000
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