1 No.

Transactions Assets = Liabilities + Capital

Sachin started
1 the business ₹ 100,000.00 = 0 + ₹ 100,000.00
with cash
Purchased goos
2 ₹ 50,000.00
in cash
₹ -50,000.00
New Eqaution ₹ 100,000.00 = 0 + ₹ 100,000.00

Purcahsed
3 furniture from ₹ 20,000.00 = ₹ 20,000.00 + 0
Samrat furniture

New Eqaution ₹ 120,000.00 = ₹ 20,000.00 + ₹ 100,000.00

Sold goods
4 costing Rs 25000 ₹ -25,000.00
for Rs 35000

₹ 35,000.00 = 0 + ₹ 10,000.00
New Eqaution ₹ 1,300,000.00 = ₹ 20,000.00 + ₹ 110,000.00
5 Paid Samrat ₹ -20,000.00 = ₹ -20,000.00 + 0
furniture
New Eqaution ₹ 110,000.00 = 0 + ₹ 110,000.00

No.
2

4
 Transactions Assets = Liabilities + Capital
Cash Stock Machinery = Creditors + Capital
Started business with
₹ 70,000.00 ₹ - ₹ - = ₹ - + ₹ 70,000.00
cash Rs. 70000
Credit Purcahse of
₹ - ₹ 18,000.00 ₹ - ₹ 18,000.00 ₹ -
goods Rs 18000
New Equation ₹ 70,000.00 ₹ 18,000.00 ₹ - = ₹ 18,000.00 ₹ 70,000.00
Payment made to
creditorin full ₹ -17,500.00 ₹ - ₹ - = ₹ -18,000.00 ₹ 500.00
settlement
New Equation ₹ 52,500.00 ₹ 18,000.00 ₹ - = ₹ - ₹ 70,500.00
Purchase of machinery ₹ -20,000.00 ₹
- ₹ 20,000.00 = ₹ - ₹ -
for cash
New Eqaution ₹ 32,500.00 ₹ 18,000.00 ₹ 20,000.00 ₹ - ₹ 70,500.00
3 No. Transactions Assets

Cash furniture Stock Debtors

Rakesh commenced
1 ₹ 150,000.00 ₹ - ₹ - ₹ -
business with cash
Furniture purchased for
2 ₹ -20,000.00 ₹ 20,000.00 ₹ - ₹ -
cash
New Equation ₹ 130,000.00 ₹ 20,000.00 ₹ - ₹ -
3 Purchased goods from ₹ - ₹ - ₹ 25,000.00 ₹ -
Mahesh
New Equation ₹ 130,000.00 ₹ 20,000.00 ₹ 25,000.00 ₹ -
Cash Sales (Profit rs
4 ₹ 14,000.00 ₹ - ₹ -10,000.00 ₹ -
14000- Rs 10000)
New Equation ₹ 144,000.00 ₹ 20,000.00 ₹ 15,000.00 ₹ -
Additioanl capital
5 ₹ 20,000.00 ₹ - ₹ - ₹ -
introduced
New Equation ₹ 164,000.00 ₹ 20,000.00 ₹ 15,000.00 ₹ -
Commision received in
6 ₹ 2,000.00 ₹ - ₹ - ₹ -
advance
New Equation ₹ 166,000.00 ₹ 20,000.00 ₹ 15,000.00 ₹ -
Paid to creditor Mahesh
7 Rs 22500 in full ₹ -22,500.00 ₹ - ₹ - ₹ -
settlement
New Equation ₹ 143,500.00 ₹ 20,000.00 ₹ 15,000.00 ₹ -
Sold goods (costing Rs
15000) for Rs 18000 out
8 of which Rs 5000 ₹ 50,000.00 ₹ - ₹ -15,000.00 ₹ 13,000.00
received in cash
New Equation ₹ 148,500.00 ₹ 20,000.00 ₹ - ₹ 13,000.00
Depreciation on
9 furniture @ 10% rs ₹ - ₹ -2,000.00 ₹ - ₹ -
20000
New Equation ₹ 148,500.00 ₹ 18,000.00 ₹ - ₹ 13,000.00
= Liabilities + Capital
Comission
= Creditors received in
advance

= ₹ - ₹ - + ₹ 150,000.00

= ₹ - ₹ - + ₹ -
= ₹ - ₹ - + ₹ 150,000.00
= ₹ 25,000.00 ₹ - + ₹ -
= ₹ 25,000.00 ₹ - + ₹ 150,000.00
= ₹ - ₹ - + ₹ 4,000.00
= ₹ 25,000.00 ₹ - + ₹ 154,000.00
= ₹ - ₹ - + ₹ 20,000.00
= ₹ 25,000.00 ₹ - + ₹ 174,000.00
= ₹ - ₹ 2,000.00 + ₹ -
= ₹ 25,000.00 ₹ 2,000.00 + ₹ 174,000.00

= ₹ -25,000.00 ₹ - + ₹ 25,000.00

= ₹ - ₹ 2,000.00 + ₹ 176,500.00

= ₹ - ₹ - + ₹ 3,000.00

= ₹ - ₹ 2,000.00 + ₹ 179,500.00

= ₹ - ₹ - + ₹ -2,000.00

= ₹ - ₹ 2,000.00 + ₹ 1,775,000.00

4 No. Transactions

Ram started business

1 with cash Rs 25000 and
cheques Rs 25000
Purchases goods on
2
credit for Rs 4000
New Equation
3 Purchased goods for
cash for Rs 1000
New Equation
Purchased furniture for
4
cash Rs 1000
New Equation
Withdrew cash for
5 personell use Rs 700
from bank
New Equation
6 Paid Rent Rs 200
New Equation
7 Received intrest Rs 100
New Equation
8 Sold goods costing Rs
500 for 7-- on credit
New Equation
9 Paid creditors Rs 400
New Equation
Paid petty expenses Rs
10
200
New Equation
 Assets Capital Liabilities
Cash Bank Stock Furniture Debtors = capital + Liabilities

₹ 25,000.00 ₹ 25,000.00 ₹ - ₹ - ₹ - = ₹ 50,000.00 + ₹ -

₹ - ₹ - ₹ 4,000.00 ₹ - ₹ - = ₹ - + ₹ 4,000.00
₹ 25,000.00 ₹ 25,000.00 ₹ 4,000.00 ₹ - ₹ - = ₹ 50,000.00 + ₹ 4,000.00
₹ -1,000.00 ₹ - ₹ 1,000.00 ₹ - ₹ - = ₹ - + ₹ -
₹ 24,000.00 ₹ 25,000.00 ₹ 5,000.00 ₹ - ₹ - = ₹ 50,000.00 + ₹ 4,000.00
₹ -500.00 ₹ - ₹ - ₹ 500.00 ₹ - = ₹ - + ₹ -
₹ 23,500.00 ₹ 25,000.00 ₹ 5,000.00 ₹ 500.00 ₹ - = ₹ 50,000.00 + ₹ 4,000.00

₹ - ₹ -700.00 ₹ - ₹ - ₹ - = ₹ -700.00 + ₹ -

₹ 23,500.00 ₹ 24,300.00 ₹ 5,000.00 ₹ 500.00 ₹ - = ₹ 49,300.00 + ₹ 4,000.00

₹ -200.00 ₹ - ₹ - ₹ - ₹ - = ₹ -200.00 + ₹ -
₹ 23,300.00 ₹ 24,300.00 ₹ 5,000.00 ₹ 500.00 ₹ - = ₹ 49,100.00 + ₹ 4,000.00
₹ - ₹ 100.00 ₹ - ₹ - ₹ - = ₹ 100.00 + ₹ -
₹ 23,300.00 ₹ 24,400.00 ₹ 5,000.00 ₹ 500.00 ₹ - = ₹ 49,200.00 + ₹ 4,000.00
₹ - ₹ - ₹ -500.00 ₹ - ₹ 700.00 = ₹ 200.00 + ₹ -
₹ 23,300.00 ₹ 24,400.00 ₹ 4,500.00 ₹ 500.00 ₹ 700.00 = ₹ 49,400.00 + ₹ 4,000.00
₹ -400.00 ₹ - ₹ - ₹ - ₹ - = ₹ - + ₹ -400.00
₹ 22,900.00 ₹ 24,400.00 ₹ 4,500.00 ₹ 500.00 ₹ 700.00 = ₹ 49,400.00 + ₹ 3,600.00
₹ -200.00 ₹ - ₹ - ₹ - ₹ - = ₹ -200.00 + ₹ -
₹ 22,700.00 ₹ 24,400.00 ₹ 4,500.00 ₹ 500.00 ₹ 700.00 = ₹ 49,200.00 + ₹ 3,600.00
 i. Intrest due but not received shall be added to assets on one
5 side and to the capital on other side.
ii. it will increase cash on the assets and increase the
liabilities.
iii. It will decrease one asset abd increase anaother asset
(prepaid insurance)
iv. Salary beig an expense will be deducted from the capital
and being unpaid will be added to liabilities

6
No. Transactions Assets

Cash Stock Furniture computer =

Commenced business
1 ₹ 50,000.00 ₹ - ₹ - ₹ - =
wit cash Rs 50000
Purchased goods for
2 cash Rs 2000 and ₹ -20,000.00 ₹ 50,000.00 ₹ - ₹ - =
credit Rs 30000
New equation ₹ 30,000.00 ₹ 50,000.00 ₹ - ₹ - =
Sold good for cash Rs
3 ₹ 40,000.00 ₹ -30,000.00 ₹ - ₹ - =
40000 costing Rs3000
New equation ₹ 70,000.00 ₹ 20,000.00 ₹ - ₹ - =
4 Rent paid ₹ -500.00 ₹ - ₹ - ₹ - =
Salaries Paid ₹ -5,000.00
New equation ₹ 64,500.00 ₹ 20,000.00 ₹ - ₹ - =
5 Rent outstanding
Salaries oustanding ₹ - ₹ - ₹ - ₹ - =
New equation ₹ 64,500.00 ₹ 20,000.00 ₹ - ₹ - =
Bought furniture for Rs
6 Rs 5000 on credit ₹ - ₹ - ₹ 5,000.00 ₹ - =
New equation ₹ 64,500.00 ₹ 20,000.00 ₹ 5,000.00 ₹ - =

Bought refrigerator for

7 ₹ -5,000.00 ₹ - ₹ - ₹ - =
personale use Rs 5000

New equation ₹ 59,500.00 ₹ 20,000.00 ₹ 5,000.00 ₹ - =

Purchased computer
8 ₹ -20,000.00 ₹ - ₹ - ₹ 20,000.00 =
for cash Rs 20000
New equation ₹ 39,500.00 ₹ 20,000.00 ₹ 5,000.00 ₹ 20,000.00 =
9 Cash withdrwan for ₹ -10,000.00 ₹ - ₹ - ₹ - =
personal use
New equation ₹ 29,500.00 ₹ 20,000.00 ₹ 5,000.00 ₹ 20,000.00 =
10 Intrest on drwaing ₹ - ₹ - ₹ - ₹ - =

Intrest on capital

New Equation ₹ 29,500.00 ₹ 20,000.00 ₹ 5,000.00 ₹ 20,000.00

 Liabilities + Capital

Expenses
Creditors and Capital
outstanding

₹ - ₹ - ₹ 50,000.00

₹ 30,000.00 ₹ - ₹ -

₹ 30,000.00 ₹ - ₹ 50,000.00
₹ - ₹ - ₹ 10,000.00
₹ 30,000.00 ₹ ₹ - 60,000.00
₹ - ₹ ₹ - -500.00
₹ -5,000.00
₹ 30,000.00 ₹ - ₹ 54,500.00
₹ 100.00 ₹ -100.00
₹ - ₹ 1,000.00 ₹ -1,000.00
₹ 30,000.00 ₹ 1,100.00 ₹ 53,400.00
₹ 5,000.00 ₹ - ₹ -
₹ 35,000.00 ₹ 1,100.00 ₹ 53,400.00

₹ - ₹ - ₹ -5,000.00

₹ 35,000.00 ₹ 1,100.00 ₹ 48,400.00

₹ - ₹ - ₹ -
₹ 35,000.00 ₹ 1,100.00 ₹ 48,400.00
₹ - ₹ - ₹ -10,000.00
₹ 35,000.00 ₹ 1,100.00 ₹ 38,400.00
₹ - ₹ - ₹ 500.00
₹ -500.00
₹ -1,000.00
₹ 1,000.00
₹ 35,000.00 ₹ 1,100.00 ₹ 38,400.00

7 No. Transactions Assets

Started business
with cash and
1 opened back Cash
account with
Rs400000

building
2 purcahse on loan ₹ 100,000.00
from SBI
New Equation ₹ -
Paid intrest on
loan Rs 20000
3 ₹ 100,000.00
and installment
of Rs 100000
₹ -
New Equation ₹ 1,000,000.00
Purchased goods
4 from Rohan ₹ -
New Equation ₹ 100,000.00
Goods return to
5 Rohan costing Rs ₹ -
20000
New Equation ₹ 100,000.00
Sold good woth
Rs 50000 costing ₹
6 -
Rs40000 on creidt
ti Ram
New Equation ₹ 100,000.00
Took goods for Rs
7 10000 for ₹ -
personal use
New Equation ₹ 100,000.00
8 Accrued Intrest ₹ -
New Equation ₹ 100,000.00

Commision
9 received in ₹ 20,000.00
advaned rs 20000

New Equation ₹ 120,000.00

Cash recived fron
10 ₹ 10,000.00
Ram
New Equation ₹ 130,000.00
 = Liabilities

Accrued
bank Building Stock Debtors = Loan from SBI
Intrest

₹ 400,000.00 ₹ - ₹ - ₹ - ₹ - = ₹ -

₹ -200,000.00 ₹ 1,200,000.00 ₹ - ₹ - ₹ - = ₹ 1,000,000.00

₹ 200,000.00 ₹ 1,200,000.00 ₹ - ₹ - ₹ - = ₹ 1,000,000.00

₹ -120,000.00 ₹ - ₹ - ₹ - ₹ - = ₹ -100,000.00
₹ 80,000.00 ₹ 1,200,000.00 ₹ - ₹ - ₹ - = ₹ 900,000.00
₹ - ₹ - ₹ 100,000.00 ₹ - ₹ - = ₹ -
₹ 80,000.00 ₹ 1,200,000.00 ₹ 100,000.00 ₹ - ₹ - = ₹ 900,000.00

₹ - ₹ - ₹ -20,000.00 ₹ - ₹ - = ₹ -

₹ 80,000.00 ₹ 1,200,000.00 ₹ 80,000.00 ₹ - ₹ - = ₹ 900,000.00

₹ - ₹ - ₹ -40,000.00 ₹ 50,000.00 ₹ - = ₹ -

₹ 80,000.00 ₹ 1,200,000.00 ₹ 40,000.00 ₹ 50,000.00 ₹ - = ₹ 900,000.00

₹ - ₹ - ₹ -10,000.00 ₹ - ₹ - = ₹ -

₹ 80,000.00 ₹ 1,200,000.00 ₹ 30,000.00 ₹ 50,000.00 ₹ - = ₹ 900,000.00

₹ - ₹ - ₹ - ₹ - ₹ 5,000.00 = ₹ -
₹ 80,000.00 ₹ 1,200,000.00 ₹ 30,000.00 ₹ 50,000.00 ₹ 5,000.00 = ₹ 900,000.00

₹ - ₹ - ₹ - ₹ - ₹ - = ₹ -

₹ 80,000.00 ₹ 1,200,000.00 ₹ 30,000.00 ₹ 50,000.00 ₹ 5,000.00 = ₹ 900,000.00

₹ - ₹ - ₹ - ₹ -10,000.00 ₹ - = ₹ -
₹ 80,000.00 ₹ 1,200,000.00 ₹ 30,000.00 ₹ 40,000.00 ₹ 5,000.00 = ₹ 900,000.00
 + Capital

Commision
Creditors rec. in + capital
advance

₹ - ₹ - ₹ 500,000.00

₹ - ₹ - ₹ -

₹ - ₹ - ₹ 500,000.00

₹ - ₹ - ₹ -20,000.00
₹ - ₹ - ₹ 480,000.00
₹ 100,000.00 ₹ - ₹ -
₹ 100,000.00 ₹ - ₹ 480,000.00

₹ -20,000.00 ₹ - ₹ -

₹ 80,000.00 ₹ - ₹ 480,000.00

₹ - ₹ - ₹ 10,000.00

₹ 80,000.00 ₹ - ₹ 490,000.00

₹ - ₹ - ₹ -10,000.00

₹ 80,000.00 ₹ - ₹ 480,000.00
₹ - ₹ - ₹ 5,000.00
₹ 80,000.00 ₹ - ₹ 485,000.00

₹ - ₹ 20,000.00 ₹ -

₹ 80,000.00 ₹ 20,000.00 ₹ 485,000.00

₹ - ₹ - ₹ -
₹ 80,000.00 ₹ 20,000.00 ₹ 485,000.00
Balancesheet Rs
Liabilities
Capital ₹ 485,000.00
Loan from SBI ₹ 900,000.00
Creditors ₹ 80,000.00
Commision received
in advance ₹ 20,000.00

₹ 1,485,000.00
 Rs
Assets
Cash in hand ₹ 130,000.00
Cashi in banl ₹ 80,000.00
Stock ₹ 30,000.00
Debitors ₹ 4,000.00
accrued intrest ₹ 5,000.00
building ₹ 1,200,000.00
₹ 1,485,000.00

8 Solution
Total Assets= Liabilities
+capital+profit
₹ 300,000.00
₹ 400,000.00
₹ 550,000.00
₹ 1,250,000.00
Solution

(750000-200000)
(includimg Rs200000
closing stock)
1
S no. Account name Increase in Account type
1 Building account Debit Asset
2 Creditor's account Credit Liability
3 Abhishek (proprietor) Credit capital
4 Purchase account Debit expense
Carriage Inward
5 Debit expense
Account
6 Cash Account Debit Asset
7 Rent Received Account Credit Revenue

8 Intrest payable account Credit Liability

9 Bills payable account Credit Liability
10 Debtors Account Debit Asset
Accured commission
11 Debit Asset
account
12 Bill Receivabe account Debit Asset

2
S no.

5
6

10
 Account Nature of How
Transactions involved account Affected Debt in Rs Credit in Rs

Dinesh Started business

Cash Asset Increased ₹ 500,000.00
with cash Rs500000
Capital Capital Increased ₹ 50,000.00
Borrowef from Naresh Rs
Cash Asset Increased ₹ 10,000.00
100000
loan on naresh Liability Increased ₹ 10,000.00
Purchased furniture for Rs
20000 in cash from Raj furniture Asset Increased ₹ 20,000.00
Furniture house
Cash Asset decreased ₹ 20,000.00
Purchased furniture from
furniture Asset Increased ₹ 40,000.00
Delhi sales for Rs 40000
delhi sale Liability Increased ₹ 40,000.00
Purchased goods for cash
Purchase Expense Increased ₹ 15,000.00
Rs 15000
Cash Asset decreased ₹ 15,000.00
 Purchased goods from
Purchase Expense Increased ₹ 30,000.00
Mahesh Rs 30000
Mahesh Liability Increased ₹ 30,000.00
Sold goods for cash to
cash Asset Increased ₹ 25,000.00
Karim Rs 25000
sales Revenue Increased ₹ 25,000.00
Sold goods to Shyam on
Shyam Asset Increased ₹ 30,000.00
credit Rs20000
sales Revenue Increased ₹ 30,000.00
Cash received from shyam
cash Asset Increased ₹ 20,000.00
rs 20000
Shyam Asset decreased ₹ 20,000.00
Cash paid to Mahesh
Mahesh Liability decreased ₹ 10,000.00
Rs10000
cash Asset decreased ₹ 10,000.00
3
Account Nature of How
S no. Transactions Debt in Rs
involved account Affected

1 Dinesh Started business with Cash Asset Increased ₹ 100,000.00

cash Rs500000
Capital Capital Increased
2 Borrowef from Naresh Rs Bank Asset Increased ₹ 50,000.00
100000
Cash Asset decreased
Purchased furniture for Rs
3 20000 in cash from Raj Drwaing Capital decreased ₹ 5,000.00
Furniture house
Cash Asset decreased
Purchased furniture from
4 Cash Asset Increased ₹ 10,000.00
Delhi sales for Rs 40000
Bank Asset decreased
Purchased goods for cash Rs Cheques in
5 Asset Increased ₹ 5,000.00
15000 hand
Shyam Asset decreased
Purchased goods from
6 Bank Asset Increased ₹ 5,000.00
Mahesh Rs 30000
Cash/cheque
Asset decreased
in hand
Sold goods for cash to Karim
7 Mahesh Liability decreased ₹ 10,000.00
Rs 25000
Bank Asset decreased
Sold goods to Shyam on
8 Salary expense Increased ₹ 20,000.00
credit Rs20000
cash Asset decreased
 Cash received from shyam rs
9 Rent expense Increased ₹ 60,000.00
20000
Bank Asset decreased
Cash paid to Mahesh
10 Intrest expense Increased ₹ 5,000.00
Rs10000
Cash Asset decreased
 Credit in Rs

₹ 100,000.00

₹ 50,000.00

₹ 5,000.00

₹ 10,000.00

₹ 5,000.00

₹ 5,000.00

₹ 10,000.00

₹ 20,000.00
₹ 6,000.00

₹ 5,000.00

4
Furniture account
Dr. Cr.
Increase(+) Rs Decrease(-)
1. Cash- Furniture 2. Cash- Saleof
₹ 50,000.00 ₹ 10,000.00
Purchased furniture
3. Cash- Furniture 4. Furniture
Purchased ₹ 15,000.00 Discarded ₹ 5,000.00

5. Depreciation
on furniture ₹ 3,000.00
Balance ₹ 47,000.00
₹ 65,000.00 ₹ 65,000.00

5
 Mohan's Account
Dr. Cr.
Decrease(-) Rs Increase(+)
2. Cash Paid ₹ 30,000.00 2. Purchases ₹ 50,000.00
3. Goods Returned
(Returns Outward) ₹ 3,000.00 4. Purchases ₹ 10,000.00
Balance ₹ 27,000.00
₹ 60,000.00 ₹ 60,000.00

6
Cash Account
Dr.
Increase(+) Rs
1.Sales ₹ 50,000.00
3. X(Debtor) ₹ 56,000.00

₹ 106,000.00
Cash Account
Cr.
Decrease(-) Rs
5. Y (Creditor) ₹ 30,000.00
6. Purchases ₹ 16,000.00
Balance ₹ 60,000.00
₹ 106,000.00
X's Account (debtor)
Dr. Cr.
Increase(+) Rs Decrease(-) Rs
3. Cash
2.Sales ₹ 80,000.00 ₹ 56,000.00
Received
Balance ₹ 24,000.00
₹ 80,000.00 ₹ 80,000.00
 y's Account (Creditors)
Dr. Cr.
Decrease(-) Rs Increase(+) Rs
5. Cash Paid ₹ 30,000.00 4.Purchases ₹ 44,000.00
Balance ₹ 14,000.00
₹ 44,000.00 ₹ 44,000.00

7
Dr.
Particulars Rs
To Drwaing
₹ 6,500.00
Accounts
To Balance c/d ₹ 53,000.00

₹ 59,500.00
 Cr.
Particulars Rs
By Cash a/c - Capital ₹ 30,000.00
By Cash a/c - Capital ₹ 22,000.00
By Profit and Loss A/c ₹ 7,500.00
₹ 59,500.00
By Balance b/d ₹ 53,000.00
1 Date Particulars Dr
1 Cash a/c Dr. ₹ 50,000.00
Bank A/c Dr. ₹ 500,000.00
To Capital a/c
Being capital introduced by bank and cash
2 Bank A/c Dr. ₹ 5,000.00
To cash Ac
Being Deposit cash in bank
3 Purchase A/c Dr. ₹ 5,000.00
To Cash A/C
Being the good purchased against cash
4 Building A/c Dr. ₹ 250,000.00
Being the duilding purchased andTocheques
bank A/c
issued
5 Purchase A/c Dr. ₹ 100,000.00
To Cash A/c
Being the goods purchased on credit
6 Cash a/c Dr. ₹ 50,000.00
To sale A/c
Being the goods sold in cash
7 Ramesh and co. Dr. ₹ 25,000.00
To Sales A/c
Being the goods sold on credit
Sales Return/ Return Inward
8 A/c Dr. ₹ 5,000.00
To Ramesh & Co A/C
Being the sold good returned
9 Hari and co. A/c Dr. ₹ 4,000.00
To purchace return/Return outwards A/c
Being the gooods Purchased Returned
10 Salaries A/c Dr. ₹ 15,000.00
To bank A/c
Being the salaries paid by cheque
11 Rent A/c Dr. ₹ 10,000.00
To bank A/c
Beimg the rent paid by cheque
12 Electricity Expenses A/c Dr. ₹ 1,000.00
To cash A/c
Being the electricity bill paid
13 Telephone charge A/c Dr. ₹ 500.00
To cash A/c
Being the telephone charge paid
14 Furniture A/c Dr. ₹ 25,000.00
To bank A/c
 Being the furniture purchased by cheque
15 Hari and co A/c Dr. ₹ 50,000.00
To Bank A/c
being the payment to creditor by cheque
16 Bank A/c Dr. ₹ 15,000.00
To Ramesh & Co A/C
Being checque recived from debtor
17 Abhi and sons Advance A/c Dr. ₹ 20,000.00
To bank A/c
Being the advance paid
18 Bank A/c Dr. ₹ 30,000.00
To advance received from Ajay co.
Being the advance received
19 Stationary A/c Dr. ₹ 1,000.00
To cash A/c
Being the stationary paid
20 Drawing A/c Dr. ₹ 10,000.00
To cash A/c
Being the cash withdraw for personel use
Cr.

₹ 550,000.00

₹ 5,000.00

₹ 5,000.00

₹ 250,000.00

₹ 100,000.00

₹ 50,000.00

₹ 25,000.00

₹ 5,000.00

₹ 4,000.00

₹ 15,000.00

₹ 10,000.00

₹ 1,000.00

₹ 500.00

₹ 25,000.00
₹ 50,000.00

₹ 15,000.00

₹ 20,000.00

₹ 30,000.00

₹ 1,000.00

₹ 10,000.00

2
Date Particulars
Apr-01 Cash a/c Dr.
To Capital a/c
Being cash introduced in business
Apr-01 Repair A/c
To cash Ac
Being cash paid to repair
Apr-02 Bank A/c
To Cash A/C
Being paid to bank
Apr-02 Cash A/c
To Loan from Bank A/c
Being taken loan from Bank
Apr-03 Purchase A/c
To Cash A/c
Being good purchased in cash
Apr-04 Drawing account
To bank A/C
Being cash drew
Apr-13 Purchased A/C
To Shyam A/C
Bein the goods purchased on credit
Apr-13 Cartage A/c
To Cash A/c
Being the cartage paid
Apr-20 Krishna A/C
 To sale A/c
Being goods sold on credit to krishna
Apr-24 Cash A/c
To Krishna a/c
Being cash received from krishna
Apr-28 Shyam A/c
To bank A/C
Being the cheques payment to shyam
Apr-30 Cash A/c
to Sale A/c
Being sold for cash
Apr-30 Salary A/c
To cash A/c
Being the salary paid
Apr-30 Intrest A/c
To cash A/c
being intrest paid on loan
Apr-30 Loan A/c
to Cash A/c
Being the loan repaid
Dr Cr.
₹ 100,000.00
₹ 100,000.00

₹ 10,000.00
₹ 10,000.00

₹ 70,000.00
₹ 70,000.00

₹ 25,000.00
₹ 25,000.00
₹ 5,000.00
₹ 5,000.00

₹ 1,000.00
₹ 1,000.00

₹ 22,500.00
₹ 22,500.00

₹ 500.00
₹ 500.00

₹ 15,000.00
 ₹ 15,000.00

₹ 15,000.00
₹ 15,000.00

₹ 22,500.00
₹ 22,500.00

₹ 8,000.00
₹ 8,000.00

₹ 3,000.00
₹ 3,000.00

₹ 250.00
₹ 250.00

₹ 25,250.00
₹ 25,250.00

3
Bina Watch
i. On Purchase:
Purchase A/c Dr.
To Pioneer watches, Delhi

(Being the purchase of 25 times

star watches at Rs 2000 each at a
Trade Discount of 10%)
(Being the purchase of 25 times
star watches at Rs 2000 each at a
ii Trade Discount of 10%)

Pioneer Watches, Delhi Dr.

To cash A/C
To Discount Recived A/c

Being the cash paid in settlement

of dues at a discount of 2%
atch Pioneer Watches
Rs. Rs. i. On sale Rs. Rs.
₹ 45,000.00 Bina Watch Co. Dr. ₹ 45,000.00
₹ 45,000.00 ₹ 45,000.00

Being the sale of 25

time star watches at
Rs 2000 each at a
trade discount of 10%

ii. On receiving Cash

Payment
Rs. Rs. Rs. Rs.
₹ 45,000.00 Cash A/C Dr. ₹ 44,100.00

₹ 44,100.00 Discount Allowed A/c Dr. ₹ 900.00

₹ 900.00 To Bina Watch ₹ 45,000.00
(Being the cash
received in
settkement of a bill at
a discount of 2%
4
Date Particulars Dr. Rs Cr. Rs
i Bad Debt A/C Dr. ₹ 5,000.00
To ramesh
 (Being the bad Debts written off)
ii Cash A/c Dr. ₹ 6,000.00
Bad Debt A/C Dr. ₹ 4,000.00
To Sohan ₹ 10,000.00
(Being the cash divided of 60 paise in a Rupee out of
his debt of Rs 10000 Received from Sohan on his
insolvency)
iii Cash A/c Dr. ₹ 700.00
To bad Debts Recovered A/c ₹ 700.00
(Being the cash recived on account of recovery of a
bad debt which was previously written off)
 Assignment 5

Credit
Sl No. Heads of Accounts Reason Debit Balance
Q.1 Balance
1 Furniture Asset yes
2 Plant and Machinery Asset yes
3 Discount Allowed Loss yes
4 Salary Expense yes
5 Bank Overdraft Liability Yes
6 Cash in Hand Asset Yes
7 Creditors Liability Yes
8 Sundry Debtors Asset Yes
9 Carriage Outwards Expense yes
10 Carriage Inwards Expense yes
11 Sales Income Yes
12 Purchases Expense yes
13 Discount Received Income Yes
14 Interest Received Gain Yes
15 Interest Paid Expense yes
16 Bad debts Loss yes

Sn No.
Q.2
1
2
3
4
5
6
7

8
9
10
11

12

13
14
 Heads of Debit Balance Credit Balance
Accounts
Capital A/c ₹ 200,000.00
Debtors A/c ₹ 30,000.00
Fixed Assets A/c ₹ 192,000.00
Sales A/c ₹ 110,000.00
Return Outwards ₹ 1,000.00
A/c
Bills Payable A/c ₹ 8,000.00
Bank Overdraft
₹ 11,000.00
A/c
Opening Stock
₹ 15,000.00
A/c
Creditors A/c ₹ 30,000.00
Purchases A/c ₹ 70,000.00
Return Inward
₹ 2,000.00
A/c
Wages and
₹ 30,000.00
Salaries A/c
Bills Receivable
₹ 15,000.00
A/c
Rent A/c ₹ 6,000.00
Total ₹ 360,000.00 ₹ 360,000.00
Q.3 Sl No. Heads of Accounts
1 Fixed Assets A/c
2 Capital A/c
3 Debtors A/c
4 Creditors A/c
5 Purchases A/c
6 Sales A/c
7 Return Outward A/c
8 Return Inward A/c
9 Bills Payable A/c
10 Bills Receivable A/c
11 Bank Overdraft A/c
12 Opening Stock A/c
13 Wages A/c
14 Salaries A/c
15 Rent A/c
Total
Debit Balance Credit Balance
₹ 246,000.00
₹ 250,000.00
₹ 20,000.00
₹ 22,000.00
₹ 35,000.00
₹ 53,000.00
₹ 500.00
₹ 1,000.00
₹ 4,000.00
₹ 8,000.00
₹ 6,000.00
₹ 7,500.00
₹ 6,000.00
₹ 9,000.00
₹ 3,000.00
₹ 335,500.00 ₹ 335,500.00

Q.4 Debit Balance Rupee Credit Balance

Building ₹ 60,000.00 Capital
Machinery ₹ 17,000.00 Fixtures
Returns Outward ₹ 2,600.00 Sales
Bad Debts ₹ 2,800.00 Debtors
Cash ₹ 400.00 Interest Received
Discount Received ₹ 3,000.00
Bank Overdraft ₹ 10,000.00
Creditors ₹ 50,000.00
Purchases ₹ 100,000.00
₹ 245,800.00
 Credit Balance Rupee
Capital ₹ 73,600.00
Fixtures ₹ 5,600.00
Sales ₹ 104,000.00
Debtors ₹ 60,000.00
Interest Received ₹ 2,600.00

₹ 245,800.00

Ans- Even the credit and debit side is balanced, The Trial Balance is incorrect. Corre

shown Correct side

Returns Outward Debit Credit
Discount Received Debit Credit
Bank Overdraft Debit Credit
Creditors Debit Credit
Fixtures Credit Debit
Debtors Credit Debit
, The Trial Balance is incorrect. Correct sides as shown below

Debit Balance Rupee Credit Balance Rupee

 Building ₹ 60,000.00 Capital ₹ 73,600.00
Machinery ₹ 17,000.00 Bank Overdraft ₹ 10,000.00
Fixtures ₹ 5,600.00 Sales ₹ 104,000.00
Bad Debts ₹ 2,800.00 Discount Received ₹ 3,000.00
Cash ₹ 400.00 Interest Received ₹ 2,600.00
Purchases ₹ 100,000.00 Returns Outward ₹ 2,600.00
Debtors ₹ 60,000.00 Creditors ₹ 50,000.00

Total ₹ 245,800.00 Total ₹ 245,800.00

Q.5
Head of Accounts Dr. Balance (₹) Cr. Balance (₹)
Furniture ₹ 20,000.00
Capital ₹ 200,000.00
Debtors ₹ 200,000.00

Stock (1st April 2018) ₹ 104,000.00

Creditors ₹ 80,000.00
Trade Expenses ₹ 50,000.00
Sales ₹ 858,000.00
Wages ₹ 30,000.00
Stock (31st March
2019) ₹ 98,000.00
Machinery ₹ 50,000.00
Purchases ₹ 625,000.00
Wife’s Loan to
Business ₹ 50,000.00
Discount Allowed ₹ 4,000.00
Drawings made by
Proprietor ₹ 45,000.00
Motor Van ₹ 60,000.00
Total ₹ 1,237,000.00 ₹ 1,237,000.00

Ans-
i) a) Stock on 31st March, 2019, will not appear in the Trail
Balance because it has not yet been brought into account.

b) Machinery is an asset and thus will appear in the debit

column
c) Wife's loan to the business is a liability . It will appear in
the credit side.
d) Discount allowed , being an expense, will appear in the
debit side.
e) Drawings made by the proprietor is a decrease of capital.
It will appear in the debit side.

Head of
Accounts
Furniture
Capital
Debtors
Stock (1st April
2018)
Creditors
Trade Expenses
Sales
Wages
Machinery
Purchases
Wife’s Loan to
Business
Discount
Allowed
Drawings made
by Proprietor
Motor Van
Total
Dr. Balance (₹) Cr. Balance (₹)
₹ 20,000.00
₹ 200,000.00
₹ 200,000.00
₹ 104,000.00
₹ 80,000.00
₹ 50,000.00
₹ 858,000.00
₹ 30,000.00
₹ 50,000.00
₹ 625,000.00
₹ 50,000.00

₹ 4,000.00

₹ 45,000.00
₹ 60,000.00
₹ 1,188,000.00 ₹ 1,188,000.00