Basic terms in Accounts

Assets : Something that you own

Building, Car, Land , Furniture, Machines etc

Liability: Something that you owe

Loan, Capital- invested, shareholder

Debtors – customers who have borrowed products from business on credit

Bad debt: customers who have not repaid your amount

Creditors – you have bought goods from others through credit

Goods: means product

Cash : Amt in hand

Bank : amt Deposited in bank

Bank Loan : borrowed from bank

Bank Overdraft: withdrawn from bank beyond deposits

Business : Current a/c- 15000 if only 10000

Profit/ loss: Income beyond expense

Reserves: amt kept for future use

Bills payable: pay in future

Bills Receivable : receive in future

Machinery : manufacture goods

Furniture: table chairs etc

Goodwill: reputation value of the company

Stock: Chicken
1. Raw materials: masala, salt, garlic, onion, chilli, oil etc
2. Semi finshed goods : car assemble,
3. Finished goods : corrinder

Misc expenses: 1 re matches, cotton, pencil.. etc

Drawings: amount withdrawn from business

1000 VKC 2 YEARS = 4000 NIKE 2 YEARS

Dividends: returns earned by the shareholder for the amount invested

in company. (PROFIT)

Interest: Returns from bank

QUALITY

Objectives of accounting:
1. Systematic recording of the monetary transactions
2. Ascertainment of results- Profit/ Loss
3. To check the financial position
4. Communicating to various users – Govt, Shareholders,
5. To make decisions – Expand business, Downsizing employees,
Functions of Accounting

Recording classifying summarising

Interpretation Evaluation

Received Salary Rs 15000

Received from Ms Vinne Rs 1000
Bought sweater Rs 500
Bought biscuits Rs 20
Milk Rs 20
Rent 10000 10690
Tea Powder Rs 150
Date Income Amt Date Expenses Amt
1.6.20 Salary 15000 7.6.20 Sweater 500
5.6.20 Ms Vinne 1000 8.6.20 Biscuits 20
9.6.20 Milk 20
 10.6.20 Rent 10000
11.6.20 Tea Powder 150

Balance 5310
16000 16000
e

Types / classification of Accounts

1. Personal A/c: Names of a person and company
Ex: Mini a/c, Manorama co a/c, Ramesh a/c, wipro a/c, Capital, Drawings
Golden Rule: Debit the receiver, credit the giver

2. Real a/c: Assets of the company will come under real accounts
Ex: Cash a/c , Furniture a/c , Machinery a/c, Land a/c, Building a/c etc

Golden Rule: Debit what comes in, Credit what

goes out

3. Nominal a/c: All income and expenses,

Ex: Rent a/c, Commission A/c, Travel expenses, Internet, etc
Golden Rule: Debit all expenses and losses, credit all
incomes and gains.

Purchase a/c Dr

Cash a/c
Mention the type of account :
1.Girish a/c:
2.Computer a/c:
3.Rent a/c:
4.Machine a/c :
5.Parle G a/c:

2. Mention the type of account

a. Sumithra a/c:
b. SJEC a/c:
c. Electricity a/c :
d. Cash a/c:
e. Printing and stationary a/c :
Identify the type of Accounts based on Personal A/c, Real A/c and
Nominal A/c

1. Ramya a/c:
2. Ramya Pvt Ltd a/c:
3. Drawings a/c:
4. Wages a/c:
5. Cash a/c:
6. Bank a/c:
7. Electricity a/c:
8. Interest a/c:
9. Laptop a/c:
10. Subhash a/c:
 i. Sold goods to Shyam on credit 5,000
ii. Returned goods to Ram 1,000
iii. Goods Returned from Shyam 500
Goods taken by Proprietor for his personal use 1,000

Problem 2
Name the two elements/accounts effected by the following transactions. Also
state the nature/kind/type of the elements

i. Paid cash to Ram 5,000 – amount, item

ii. Received cash from Shyam 3,000
iii. Wages Paid 750
iv. Rent Received 2,000
v. Cash taken by proprietor for his personal use 2,500
vi. Purchased stationery 300
vii. Received interest 800

Solution hide
i. Ram a/c
↓
Person
↓
Personal a/c

Cash a/c
↓
Tangible aspect (Asset)
↓
Real a/c

Received cash from Shyam 3,000

ii. Cash a/c
↓
Tangible aspect (Asset)
↓
Real a/c

Shyam a/c
↓
Person
↓
Personal a/c

Wages Paid 750

iii. Wages a/c

↓
Expenditure
↓
Nominal a/c

Cash a/c
↓
Tangible aspect (Asset)
↓
Real a/c

Rent Received 2,000

iv. Cash a/c

↓
Tangible aspect (Asset)
 ↓
Real a/c

Rent Received a/c

↓
Income
↓
Nominal a/c

Cash taken by proprietor for his personal use 2,500

v. Cash a/c
↓
Tangible aspect (Asset)
↓
Real a/c

Drawings a/c
↓
Person
↓
Personal a/c

vi. Cash a/c

↓
Tangible aspect (Asset)
↓
Real a/c

Stationery a/c
↓
Expenditure
↓
Nominal a/c

vii. Cash a/c

↓
Tangible aspect (Asset)
↓
Real a/c

Interest Received a/c

↓
Income
↓
Nominal a/c
 Unit 2 Journal & Ledger
Journal, ledger, trial balance meaning advantages and limitations of journal and ledger simple
journal entries and ledger.

Types / classification of Accounts

1. Personal A/c: Names of a person and company
Ex: Mini a/c, Manorama co a/c, Ramesh a/c, wipro a/c, Captial, Drawings
Golden Rule: Debit the receiver, credit the giver

2. Real a/c: Assets of the company will come under real accounts
Ex: Furniture a/c , Machinery a/c, Land a/c, Building a/c etc

Golden Rule: Debit what comes in, Credit what

goes out
3. Nominal a/c: All income and expenses,
Ex: Rent a/c, Commission A/c, Travel expenses, Internet, etc
Golden Rule: Debit all expenses and losses, credit all
incomes and gains.

Pass Journal entries

 1. On 1.8.20 Bought furniture Rs 10000

Soln :
Journal entries

Date Particulars L/F Debit Credit

1.8.20 By Furniture a/c Dr 10000
To Cash a/c Cr 10000
(Being furniture bought)

Problem 2

Pass Journal entries

1. On 1.4.2019 Bought Machinery Rs 50000

2. 2.4.2019 Paid Wages Rs 5,000

Soln :

Date Particulars L/F Debit Credit

1.4.201 By Machinery a/c Dr 50,000
9 To Cash a/c Cr 50,000

(Being machinery bought)

2.4.201 By Wages a/c Dr 5,000

9 To Cash a/c Cr 5,000

(Being wages paid)

Total 55000 55000
Problem 3

Pass Journal entries

1. On 1.4.2020 Bought Stationary Rs 5000

2. 2.4.2020 Electricity Rs 5,000
3. 3.4.2020 Received cash from Mr Ramesh Rs 12,000

Soln: Journal entries

Date Particulars L/F Debit Credit
1.4.202 By Stationary a/c Dr 5000
0 To Cash a/c Cr 5000
(Being stationary a/c)

2.4.202 By Electricity a/c Dr 5000

0 To Cash a/c Cr 5000
(Being electricity due paid)

3.4.202 By Cash a/c Dr 12,000

0 To Ramesh a/c Cr 12000
(received cash from Ramesh)

Total 22,000 22,000

P4
1.8.20 – Girish Started Business With Cash Rs 50,00,000

2.8.20 – Purchased Goods Rs 2500000

3.8.20- Bought Machinery Rs 300000

4.8.20 – Sold Goods to Mary on Credit Rs 250000

5.8.20 – Received Cheque from Deepak Rs 300000

Journal entries in the books of Mr Girish

Date Particulars L/F Debit Credit
1 By Cash Dr 50,00,000
To Girish Capital a/c Cr 50,00,000

2 By Purchase a/c Dr 25,00,000

To Cash a/c Cr 25,00,000

3 By Machinery Dr 3,00,000
To Cash Cr 3,00,000

4 By Mary Dr 25,00,00
To Sales Cr 25,00,00

5 By Bank a/c Dr 300000

To Deepak a/c Cr 300000

TOTAL 83,50,000 83,50,000

1. Journalize the following transactions
a. Started business with cash 2,30,000, goods 1,00,000, buildings
2,00,000
b. Bought goods for cash 5000
c. Sold goods for cash 35000
d. Purchased goods from Rahul on credit 55000
e. Paid in cash to Rahul in full settlement 53000
f. Paid salary 4,000
g. Paid electricity by cheque 750
h. Cheque given for insurance premium 1,000
i. Bought office furniture 3,000
Journal entries in the books of ….
Date Particulars L/F Debit Credit
1 By Cash a/c Dr 2,30,000
By Purchase a/c Dr 100000
By Building a/c Dr 200000
To Capital a/c Cr 530000
(Being business started)
2 By Purchase a/c Dr
To Cash a/c Cr

3 By Cash a/c Dr
To Sales a/c Cr

4 By Purchase a/c Dr 55,000

To Rahul a/c Cr 55,000

5 By Rahul Dr 55,000
To Discount received a/c Cr 2,000
To Cash a/c Cr 53,000
6 By Salary
To Cash a/c Cr

7 By Electricity a/c Dr
To Bank a/c Cr

8 By Insurance a/c Dr
To Bank a/c Cr

9 By Furniture a/c Dr
To Cash a/c Cr
Journal entries and ledger
1. Started business 20000
2. Sold goods to Garima 10000
3. Bought Furniture 5000
4. Purchased goods from Girish 2000
5. Garima settled the payment Rs 9000
By Cash a/c Dr 9000
By Discount Given a/c Dr 1000
To Garima a/c Cr 10000

Date Particulars L Debit Credit

/
F
 1 By Cash A/c Dr 20000
To Capital A/c Cr 20000

2 By Garima a/c Dr 10000

To Sales a/c cr 10000
(Being …………)

3 Furniture a/c Dr 5000

To Cash a/c Cr 5000

35000 35000

Ledgers

Dr Cash a/c Cr

Date Particulars Amt Date Particulars Amt

1.1.20 To Capital A/c 20000 3.1.20 By Furniture a/c 5000
By Balance c/d 15000
31.1.2
0
2000 20000
0
1.2.2 To Bal b/d 1500
0 0

Dr Capital a/c Cr

Date Particulars Amt Date Particulars Amt

31.1.2 To bal c/d 20000 1.1.20 By Cash A/c 20000
0
20000 20000
1.2.20 By bal b/d 20000
Dr Garima a/c Cr

Date Particulars Amt Date Particulars Amt

2.1.20 To Sales a/c 10000 31.1.2 By bal c/d 10000
0
10000 10000
1.2.20 To Bal b/d 10000

Dr Sales a/c Cr

Date Particulars Amt Date Particulars Amt

31 To Bal c/d 10000 2 By Garima a/c 10000

10000 10000

Dr Furniture a/c Cr

Date Particulars Amt Date Particulars Amt

3 To cash a\c 5000 31 By Bal c/d 5000

5000 5000
1. Journalize the following transaction and prepare
ledger accounts for April 2019
1 Mr X commenced business with cash Rs 80,000
4 Purchased furniture Rs 22000
5 Bought goods for cash from Mr Y 24000
8 Purchased goods from Mr. Z Rs 40000
12 Sold goods on credit to Mr. A 10, 400

Ans:
Date Particulars L Debit Credit
April /
2019 F
1 By Cash A/c Dr 80000
To X Capital A/c Cr 80000

(Being business started)

4 By Furniture a/c Dr 22000
To Cash a/c Cr 22000

5 By purchase a/c Dr 24000

To Cash a/c Cr 24000

8 By purchase a/c Dr 40000

To Mr Z a/c 40000
 12 By Mr A a/c Dr 10,400
To Sales a/c Cr 10,400

176400 176400
Ledgers

Dr Cash a/c Cr

Date Particulars Amt Date Particulars Amt

1.4.19 To X Capital A/c 80000 4.4.19 By Furniture a/c 22000
5.4.19 By purchase a/c 24000
31.4.1 By Bal c/d 34000
9
80000 80000
1.5.1 To Bal b/d 34000
9

Dr X Capital a/c Cr

Date Particulars Amt Date Particulars Amt

31.4.1 To bal c/d 80000 1.4.19 By Cash A/c 80000
9
80000 80000
1.5.19 By bal b/d 80000
Dr Furniture a/c Cr

Date Particulars Amt Date Particulars Amt

4 To cash a\c 22000 31 By Bal c/d 22000

22000 22000
1.5.19 To Bal b/d 22000

Dr Purchase a/c Cr

Date Particulars Amt Date Particulars Amt

8 To Mr Z a/c 40000 31 By Bal c/d 64000
To Cash a/c 24000
64000 64000
1.5.19 To Bal b/d 64000

Dr A a/c Cr

Date Particulars Amt Date Particulars Amt

12 To Sales a/c 10,40 31 By Bal c/d 10,400
0
10,40 10,400
0
1.5.19 To Bal b/d 10,40
0

Dr Sales a/c Cr

Date Particulars Amt Date Particulars Amt

31.4.1 To bal c/d 10,40 12 By Mr A a/c 10,400
9 0
10,40 10,400
0
1.5.19 By bal b/d 10,400

Dr Z a/c Cr

Date Particulars Amt Date Particulars Amt

31.4.1 To bal c/d 40000 12 By purchase a/c 40000
9
40000 40000
1.5.19 By bal b/d 40000
 Unit 3 Cash Book
( Meaning of cash book, types of cash book (problems on simple cash book and
petty cash book)

Cash Book
A Cash Book is a special journal which is used for
recording all cash receipts and all cash payments. Cash
Book is a book of original entry since transactions are
recorded for the first time from the source documents.

The Cash Book is larger in the sense that it is designed in

the form of a Cash Account and records cash receipts on
the debit side and cash payments on the credit side. Thus,
the Cash Book is both a journal and a ledger.

Types of Cash Book

There are different types of Cash Book as follows:

(i) Single/Simple Column Cash Book- Single Column Cash book has one
amount column on each side. All cash receipts are recorded on the debit
side and all cash payments on the payment side, this book is nothing but
a Cash Account and there is no need to open separate cash account in the
ledger.

Dr Simple Cash Book Cr

Date Receipts L/ Amt Date Payments L/ Amt

F F
 (ii) Double Column Cash Book- The Double Column Cash Book having two
amounts. Columns on each side as under:

Dr Double column Cash Book Cr

Date Receipts L/ Cash Bank Date Payments L/ Cash Bank

F (Rs) (Rs) F (Rs) (Rs)

(a) Cash and bank columns

(iii) Triple Column Cash Book- Triple Column Cash Book has three amount
columns, one for cash, one for Bank and one for discount , on each side.
All cash receipts, deposits into book and discount allowed are recorded
on debit side and all cash payments, withdrawals from bank and discount
received are recorded on the credit side. In fact, a triple-column cash
book serves the purpose of Cash Account and Bank Account both. Thus,
there is no need to create these two accounts in the ledger.

Date Receipts L/ Dis Cas Bank Date Payments L/ Dis Cash Bank
F h (Rs) F (Rs) (Rs)
(Rs)
 (iv) Dr Triple column Cash Book Cr

(iv) The petty Cash Book.

Petty Cash Book is maintained to record small expenses such as postage,

stationery, telegram. The difference between the total of the debit items and that of
the ‘total column’ on the credit represents the balance of the petty cash in hand.

Am Receipt Date Particulars Vouch L/ Amt

t No er No F
 Q. Enter the following transactions in simple column cash book of M/s.
Rohan Traders:
Date Details Amount (Rs.)

2005
 December 01 Cash in Hand 27,500
 December 05 Cash received from Nitu 12,000
 December 08 Insurance Premium paid 2,000
 December 10 Furniture purchased 6,000
 December 14 Sold Goods for cash 16,500
 December 18 Purchased Goods from Naman for cash 26,000
 December 22 Cash paid to Rohini 3,200
 December 25 Sold Goods to Kanika for cash 18,700
 December 28 Cash Deposited into Bank 5,000
 December 30 Rent paid 4,000
 December 31 Salary paid 7,000
 Dec 31 Paid Electricity by Cheque 5000

Soln:

Dr Simple Cash Book Cr

Date Receipts L/ Amt Date Payments L/ Amt

Dec F Dec F
2005 2005
1 To bal b/d 2750 8 By Insurance a/c 2000
2 To Nitu a/c 0 10 By Furniture a/c 6000
14 To sales a/c 1200 18 By Purchase a/c 26000
25 To Sales a/c 0 22 By Rohini a/c 3200
1650 28 By Bank a/c 5000
 0 30 By Rent a/c 4000
1870 31 By Salary a/c 7000
0
31 By Bal c/d 21500

7470 74700
0
1.1.06 To Bal b/d 2150
0

Prepare Cash Book for the month of April 2006 from the following
particulars :
Date Details Amount (Rs.) 2006
 April 01 Cash in hand 17,600
 April 03 Purchased Goods for cash from Rena 7,500
 April 06 Sold Goods to Rohan 6,000
 April 10 Wages paid in cash 500
 April 15 Cash paid to Neena 3,500
 April 17 Cash Sales 10,000
 April 19 Commission paid 700
 April 21 Cash received from Teena 1,500
 April 25 Furniture Purchased for cash 1,700
 April 28 Rent paid 3,000
 April 30 Paid Electricity bill in cash 1,300

Ans : 10900
Enter the following transactions in M/s Mukerjee & Bros. Single Column Cash Book:
 
2017 (₹)
April 1 Balance of Cash in hand 50,000
3 Purchased goods for cash 22,000
7 Purchased goods 15,000
10 Purchased goods from Gopi 30,000

13 Purchased goods from Gopi for cash 10,000

15 Sold goods 20,000
18 Sold goods to Vishwakarma 45,000
20 Sold goods to Raghunandan for cash 18,000
25 Received commission 5,000
30 Paid Rent 10,000
ANS : BAL C/D :36000

NSWER:

Cash Book
Dr. Cr.
Date L L
. Cash Date . Cash
Particulars Particulars
April F (Rs) Apr F (Rs)
. .
2017       2017      
01 Balance b/d   50,000 03 Purchases A/c   22,000
15 Sales A/c   20,000 07 Purchases A/c   15,000
20 Sales A/c   18,000 13 Purchases A/c   10,000
Commission   5,000 Rent A/c   10,000
25 30
A/c
        30 Balance c/d   36000
               
      93000 93000
May Balance b/d   36000
 01
 

Question

Enter the following transactions in a Single Column Cash Book∶

2017   (₹)
Feb. 1 Mr. Vipin commenced business with Cash 2,00,000
3 Opened a Bank Account and deposited 75,000
5 Purchased goods for Cash 30,000
7 Purchased goods 15,000
10 Purchased goods from Surya Kant 40,000

12 Paid to Surya Kant 38,800

  Discount received 1,200

15 Paid Wages in Cash 22,500
16 Paid to casual labour 1,500
 20 Sold goods to Dev Raj for Cash 80,000
25 Paid electricity bill in Cash 12,000
26 Withdrew Cash from Bank for office use 40,000
27 Received for Cash sales 5,000
27 Paid for miscellaneous expenses 500

ANSWER:

Cash Book
Dr. Cr.
L.F Cash Cash
Date Particulars Date Particulars L.F.
. (Rs) (Rs)
2017       2017      
Feb.01 Capital A/c   2,00,000 Feb.03 Bank A/c   75,000
Feb.20 Sales A/c   80,000 Feb.05 Purchases A/c   30,000
Feb.26 Bank A/c   40,000 Feb.07 Purchases A/c   15,000
Feb.27 Sales A/c   5,000 Feb.12 Surya Kant   38,800
        Feb.15 Wages A/c   22,500
        Feb.16 Wages A/c   1,500
        Feb.25 Electricity A/c   12,000
        Feb.27 Misc Exp A/c   500
        Feb.28 Balance c/d   1,29,700
      3,25,000       3,25,000
Mar.01 Balance b/d   1,29,700        
Enter the following transactions in a Single Column Cash Book of M/s Suchitra Sen & Co. :
 
2017 (₹)
March 1 Cash in Hand 1,20,000
2 Bought machinery for ₹ 60,000 and paid carriage 2,000

4 Bought goods for ₹ 25,000 and paid carriage 1,000

5 Bought goods from Ravi Das 15,000

6 Cash received from sale of Motor bike 5,000

8 Sold goods for cash less 5% cash discount 20,000

10 Sold goods 40,000

12 Paid to Ravi Das on account 10,000

15 Bought goods from Suresh for cash  less  4% cash discount 30,000

20 Paid to Ravi Das 4,500

  Discount received 500

25 Cash collected from Ashok (Debtor) 10,000

28 Purchased postal stamps 500

28 Salary paid to accountant 15,000

ANSWER:

Cash Book
Dr. Cr.
L.F Cash Cash
Date Particulars Date Particulars L.F.
. (Rs) (Rs)
2017       2017      

Mar.0 Balance b/d   1,20,000 Mar.02 Machinery A/c   62,000

1 (60,000 + 2,000)
Mar.0   5,000 Mar.04 Purchases A/c   25,000
Motor Bike A/c
6
 Mar.0   19,000 Mar.04 Carriage A/c   1,000
Sales A/c
8
Mar.1   40,000 Mar.12 Ravi Das   10,000
Sales A/c
0
Mar.2   10,000 Mar.15 Suresh   28,800
Ashok
5
        Mar.20 Ravi Das   4,500
        Mar.28 Postal Stamps   500
        Mar.28 Salary A/c   15,000
        Mar.31 Balance c/d   47,200
               
      1,94,000       1,94,000
Apr.01 Balance b/d
  47,200      

Prepare petty cash book

Soln:

Petty Cash Book

Amt Rec Date Particulars Vouch L/ Amt

eipt Jan er No F
No 2019
1000 1 Balance b/d
5 Telephone expenses 100
7 Postage 15
10 Cartage 50
11 Travelling 100
12 Office 300
15 Postage 20
 20 Telephone Bill 100
28 Miscellaneous 75
31 Cartage 20

31 By bal c/d 220

1000 1000
220 1.2.19 To bal b/d

1. Enter the following in the petty cash book

2016, March
1. Received a cheque for Rs 100 to open a book
2. Cartage paid Rs 20
3.. Telegram and postage Rs10
8. Purchased stationery Rs 10
11. Paid to collie Rs 20
18. Settled the balance due to Mr. K Rs 10
20. Tiffin charges of customer Rs 5
29. Paid Wages Rs 10
 Unit4 Final Accounts
Meaning of trading accounts, profit and loss account, balance sheet and format of final
accounts.

Trading Account
Trading means buying and selling. The trading account shows the result of buying and
selling of goods. End result of trading account is gross profit or gross loss.  Following
are format for Trading Account.
Profit and Loss Account
After calculating the gross profit or gross loss the next step is to prepare the profit and
loss account. To earn net profit a trader has to incur many expenses apart from those
spent for purchases and manufacturing of goods. If such expenses are less than gross
profit, the result will be net profit. When total of all these expenses are more than
gross profit the result will be net loss.
Balance Sheet
Balance sheet is defined as ‘a statement which sets out the assets and liabilities of a
business firm and which serves to ascertain the financial position of the same on any
particular date’. On the left hand side of the statement, the liabilities and capital are
shown. On the right hand side, all the assets are shown. Balance sheet is not an
account but it is a statement prepared from the ledger balances.
Trial Balance
A trial balance is a book keeping worksheet-like account that reflects all
the credit and debit balances of all the ledger accounts. Once we prepare
this statement, we can prepare the final accounts of the company on the
basis of this trial balance.

Rules:
All Assets and Expenses- Debit Column
All Liabilities and Incomes – Credit Column

1. Prepare the trial balance from the following.

Capital 25,000
Purchases 8,950
Bills payable 1,350
Sales 22,500
Bills receivable 4,400
Discount received 970
Stock 8,500
Carriage 300
Furniture 2,600
Cash at bank 25,570

Particulars L/F Debit Credit

Capital 25,000
Purchases 8,950
Bills payable 1,350
Sales 22,500
Bills receivable 4,400
Discount received 970
Stock 8,500
Carriage 300
Furniture 2,600
Cash at bank 25,570
Suspense a/c(Bal 500
Figure)
TOTAL 50320 50320

Question 1:

Prepare a Trial Balance with the following information:

Balance Balance
Sr. No Name of Account Sr. No Name of Account
(₹) (₹)

(i) Capital 2,00,000 (ii) Stock 70,000

(iv)
(iii) Cash 1,80,000 Debtors 3,00,000
(vi)
(v) Creditors 1,00,000 Bank Loan 1,50,000
 (vii) Sales 3,00,000 (viii) Purchases 2,00,000

All Assets and Expenses- Debit Column

All Liabilities and Incomes – Credit Column

ANSWER:

Trial Balance
S. Account Title Debit Credit
No. Balance Balance
(Rs) (Rs)
(i) Capital 2,00,000

(ii) Stock 70,000

(iii) Cash 1,80,000

(iv) Debtors 3,00,000

(v) Creditors 1,00,000

(vi) Bank Loan 1,50,000

(vii) Sales 3,00,000

(viii) Purchases 2,00,000
   TOTAL  750000 750000

Prepare a Trial Balance from the following items:

         

  ₹  ₹

24,00 12,000
Capital Building
0

Opening Stock 8,500 Returns Inward 1,900

Furniture 2,600 Returns Outward 350

Purchases 8,950 Trade Expenses 1,000

Cash 7,300 Discount Received 970

Carriage 300 Salary 3,000

22,50
Sales Office Rent
0 2,270

ANSWER:

Trial Balanceas on March 31, 2018

S.No List of Items Debit Balances Credit Balances
.
1 Capital   24,000
2 Opening Stock 8,500  
3 Furniture 2,600  
4 Purchases 8,950  
5 Cash 7,300  
6 Carriage 300  
7 Sales   22,500
8 Building 12,000  
9 Returns Inward 1,900  
10 Returns Outwards   350
11 Trade Expenses 1,000  
12 Discount   970
Received
13 Salary 3,000  
14 Office Rent 2,270  
  Total 47,820 47,820

Real a/c: Debit what comes in and Credit what goes out

Journal entries and Ledger

1. Started business with cash 10000

2. Sold goods on credit to Ramesh 5000
3. Paid Electricity 3000
Journal Entries in the books of Mr……

Date Particulars L/ Dr Cr
F
1 Cash a/c Dr 10000
To Capital a/c Cr 10000
(Being business started with
cash)
2 Ramesh a/c Dr 5000
To Sales a/c Cr 5000
(Being Sold goods on credit to
Ramesh)
3 Electricity a/c Dr 3000
Cash a/c Cr 3000
(Being Electricity bill paid)

TOTAL 18000 18000

Dr Cash a/c Cr

Date Particulars Amt Date Particulars Amt

1 To Capital a/c 10000 3 By Electricity a/c 3000
31 By bal c/d 7000

10000 10000

1.2.20 To bal b/d 7000

Dr Capital a/c Cr

Date Particulars Rs Date Particulars Rs

31 To bal c/d 10000 1 By Cash a/c 10000
 10000 10000
1.2 By bal b/d 10000

Dr Ramesh a/c Cr

Date Particulars Rs Date Particulars Rs

2 To Sales a/c 5000 31 By bal c/d 5000

5000 5000
1.2.20 To bal b/d 5000

Dr Sales a/c Cr

Date Particulars Rs Date Particulars Rs

31 To bal c/d 5000 Ramesh a/c 5000

5000 5000
1.2 By bal b/d 5000

Dr Electricity a/c Cr

Date Particulars Rs Date Particulars Rs

3 To Cash a/c 3000 31 By bal c/d 3000

3000 3000
1 To bal b/d 3000

Enter the following transactions in a Single Column Cash Book∶−

2016   (₹)
May 1 Commenced business with Cash 25,000
3 Bought goods for Cash 10,000
 3 Paid Carriage 200
4 Sold goods for Cash 6,000
10 Received from Ram 1,000
12 Paid to Shiv Kumar 2,600
15 Cash Sales 8,400
18 Purchased furniture for cash for office 5,000
20 Paid for Advertisement 500
20 Purchased goods from Mahesh on credit 6,000
24 Paid to Mahesh 4,000
25 Paid Wages 400
27 Received for Commission 1,500
28 Withdrew for personal use 2,200
31 Paid salary 700

ANSWER:

Cash Book

Dr. Cr.

Date Particulars L.F. Cash (Rs) Date Particulars L.F. Cash (Rs)

2016       2016      
 May Capital A/c   25,000 Purchases A/c   10,000
May 03
01

May   6,000 Carriage A/c   200

Sales A/c May 03
04

May   1,000 Shiv Kumar   2,600

Ram May 12
10

May   8,400 Furniture A/c   5,000

Sales A/c May 18
15

May   1,500 Advertisement A/c   500

Commission A/c May 20
27

        May 24 Mahesh   4,000

        May 25 Wages A/c   400

        May 28 Drawings A/c   2,200

        May 31 Salary A/c   700

        May 31 Balance c/d   16,300

      41,900       41,900

June   16,300      
Balance b/d  
01

Note: Transaction dated May 20, 2016, will not be recorded in Cash Book
because credit transactions do not affect the cash balance.

Enter the following transactions in the simple petty cash book:

2018
May 2 Cheque received for Rs. 700 to open the book.
May 3 Postage paid    Rs. 50.
May 6 Paid taxi hire of travelling salesman    Rs. 100.
May 8 Paid wages    Rs. 125.
May 13 Telegram sent to Delhi    Rs. 40.
May 17 Cart hire paid on commodities bought    Rs. 60.
May 19 Stationary purchased    Rs. 120.
May 25 Customer's tiffin charges    Rs. 60.
May 31 Settled the balance due to Smith    Rs.80.

Amt Rec Date Particulars Vouch L/ Amt

eipt er No F
 No
700 2.5.18 To Bank a/c
3 By Postage a/c 50
6 By Taxi a/c 100
8 By Wages a/c 125
13 By Telegram a/c 40
17 By cart a/c 60
19 By stationery a/c 120
25 By Tiffin a/c 60
31 By Smith a/c 80

31 By bal c/d 65
700 700
65 1.6.18 To bal b/d