Basics of Accounting

Questions for practicing accounts

ILL. 1 You are required to give (a) Journal Entries, (b) Nature of Account & (c) Appropriate rule
applicable.

1. Nitin Invested Rs. 5,00,000 cash in the business.

2. Purchased Building for Rs. 2,50,000 in cash.
3. Purchased merchandise(goods) on account for Rs. 50,000.
4. Sold merchandisefor cash Rs. 75,000.
5. Nitin withdrew cash Rs. 12,500 for personal use.
6. Paid Rent Rs. 2,000; salary Rs. 4,000.
7. Cash Sales Rs. 10,000.
8. Cash deposited in bank Rs. 20,000.

ILL. 2 Transactions of Ramesh for April are given below. Journalize them.

2018 Rs.
April 1 Ramesh Started business with Cash 1,00,000
April 2 Paid into Bank 70,000
April 3 Bought goods for cash 5,000
April 4 Drew cash from bank for office 1,000
April 13 Sold goods to Krishna 1,500
April 20 Bought goods from Shyam 2,250
April 24 Received from Krishna 1,500
April 28 Paid Cash to Shyam 2,150
April 30 Cash Sales for the month 8,000
April 30 Paid Salary to Ram 3,000

ILL. 3 Journalize the following transactions

2018 Rs.
Jan 1 Started business with Cash 50,000
Jan 3 Paid into Bank 40,000
Jan 5 Sold goods to Mohan 22,000
Jan 9 Goods return by Mohan 2,000
Jan 11 Goods Purchased from Shyam 31,500
Jan 15 Goods returned to Shyam 1,500
Jan 18 Bought furniture for office use by cheque 9,000
Jan 22 Purchased goods for cash 1,000
Jan 22 Paid Cartage 50
Jan 30 Paid interest on Loan 500
ILL. 4 Record the following transactions in a Journal. (Compound Entries)

2017
Jan 1 Paid to Mohan Rs. 9500 in full settlement of his account of Rs. 10,000.
Jan 5 Received from Ram Rs. 12,000 in cash and allowed him discount of Rs. 100.
Jan 7 Paid Salaries Rs. 5,000.
Jan 7 Paid Rent Rs. 3,000.
Jan 7 Paid Wages Rs. 1,000.
Jan 10 Purchased goods of Rs. 20,000 out of which goods of Rs. 12,000 were on credit
from Shyam Lal.

ILL. 5 Journalize the following transactions (Banking transactions)

2016 Rs.
Jan 1 Paid into Bank for opening a Current Account. 20,000
Jan 2 Withdrew cash for private expenses. 1,000
Jan 3 Withdrawn from bank. 3,000
Jan 4 Withdrawn from bank for private use. 2,000
Jan 5 Goods purchased and amount paid by cheque. 5,000
Jan 10 Goods Sold and cheque received. 8,000

ILL. 6 Journalize the following transactions

2017 Rs.
June 3 Received cash from Ram. 5,000
June 3 Purchsed goods for cash. 1,500
June 3 Sold goods to Hari. 1,200
June 3 Paid Ramavtar. 400
June 3 Received from Hari. 100
June 3 Bought furniture from Ram. 200
June 3 Paid Rent. 280
June 3 Paid Salary. 500

ILL. 7 Pass the Journal Entries for the following transactions (Discount entries)

(i) Purchased goods from Sanjiv of Rs. 40,000 at terms 10% Trade Discount and 5%
Cash Discount. Paid amount at the time of purchase itself.
(ii) Purchased goods from Vijay of Rs. 40,000 on 10% Trade Discount and 5% Cash
Discount. Half of the amount was paid at the time of purchase.
(iii) Sold goods to Anil for Rs. 20,000, allowed him 10% Trade Discount and 10% Cash
Discount. Received half of the amount by cash and balance half by cheque.
(iv) Sold goods to Ajay for Rs. 50,000, allowed him 5% Cash Discount and 10% Trade
Discount. Half of the amount was received by cheque.

ILL. 8 Journalize the following transactions

 2016 Rs.
Jan 1 Sohan commenced business with cash. 50,000
Jan 2 Purchased business with cash. 10,000
Jan 5 Purchased goods from Mohan on credit. 6,000
Jan 7 Paid into bank. 5,000
Jan 10 Purchased furniture. 2,000
Jan 15 Sold goods for cash. 7,000
Jan 20 Sold goods to Ram on credit. 5,000
Jan 25 Cash Sales. 3,500
Jan 27 Paid to Mohan on account 3,000
Jan 28 Paid Wages 100
Jan 30 Paid rent 1,200
Jan 31 Paid salaries 2,800

ILL. 10 Journalize the following transactions of Mr. Rahul

2016 Rs.
Jan 1 Rahul commenced business with cash. 10,000
Jan 2 Paid into bank. 6,000
Jan 3 Bought goods from M/s. S. Singh & Co. on credit 2,000
Jan 4 Purchased furniture. 200
Jan 4 Purchased Machine 800
Jan 4 Purchased Typewriter 600
(all assets payment made by cheque)
Jan 6 Paid for Postage 15
Jan 8 Sold goods for cash 400
Jan 9 Sold goods on credit to M/s S. Sharda & Co. 1,000
Jan 15 Paid to M/s. S. Singh & Co. 1,950
Discount allowed by them 50
Jan 25 Sold goods to M/s. Ray & Co. 560
Jan 27 Received cheque from M/s S. Sharda & Co. in full settlement of 975
amount due from them.
Jan 31 Paid for electric charges. 10
Jan 31 Paid salary 150
Jan 31 Paid rent of building by cheque (half of the building is used by the 500
proprietor for residential use)
Jan 31 Drew for private use 350