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104c Unit 1 Solution

This document contains journal entries for various business transactions from January 1-31, including: 1) Starting a business with a cash investment and depositing funds into a bank account. 2) Purchasing and selling goods for cash and on credit, returning goods, and receiving credit payments. 3) Paying expenses such as rent, salaries, supplies, and settling credit accounts with cheques. The journal entries record debits and credits for asset/expense/revenue accounts and cash/bank/accounts receivable according to accounting principles. Account titles, dates, descriptions and amounts are provided for each transaction.

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0% found this document useful (0 votes)
156 views23 pages

104c Unit 1 Solution

This document contains journal entries for various business transactions from January 1-31, including: 1) Starting a business with a cash investment and depositing funds into a bank account. 2) Purchasing and selling goods for cash and on credit, returning goods, and receiving credit payments. 3) Paying expenses such as rent, salaries, supplies, and settling credit accounts with cheques. The journal entries record debits and credits for asset/expense/revenue accounts and cash/bank/accounts receivable according to accounting principles. Account titles, dates, descriptions and amounts are provided for each transaction.

Uploaded by

Devil 5103
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Principles of Accounting (B.Com E.

Com) 104C
Unit – I
Journal with solution:
Q.No. 1.
Journalise the following transactions:
2002 Jan 1 Started business with Rs.10000; Paid into Bank Rs.5000
Started business:
Capital a/c Cr the giver Cash a/c Dr what comes in
JE:
Cash a/c Dr
To capital a/c
Paid into Bank:
Bank a/c Dr the receiver Cash a/c Cr What goes out
JE:
Bank a/c Dr
To Cash a/c

Jan 2. Bought Furniture Rs.500


Furniture a/c Dr What comes in Cash a/c Cr What goes out
JE:
Furniture a/c Dr
To cash

Jan 5. Bought goods for Rs.3000


Purchase a/c Dr what comes in Cash a/c Cr what goes out
JE
Purchase a/c Dr
To Cash a/c

Jan 6. Sold goods for Rs.600


Cash a/c : Dr what comes in Sales a/c : Cr goods goes out
JE:
Cash a/c Dr
To sales a/c

Jan 10. Bought one typewriter for Rs.800 from Remington Rang Inc. on credit
Typewriter a/c : Dr all expenses and loses Remington a/c Cr the giver
JE:
Typewriter a/c Dr
To Remington Rang Inc a/c
Jan 13. Sold goods to M/s.Anand &Sons for Rs.1000 on Credit.
Anand a/c Dr the receiver Sales a/c Cr goods goes out
JE:
Anand & Sons a/c Dr
To Sales a/c
Jan 15. Bought goods from M/s.Mohindra &Co. for Rs.2000 on credit.
Purchase a/c: Dr goods comes in Mohindra a/c : Cr the giver
JE:
Purchase a/c Dr
To Mohindra & Co

Jan 18. Paid telephone rent Rs.240 for one year.


JE:
Telephone Rent a/c Dr – all expenses and losses
To Cash - Cr what goes out

Jan 22. Paid Rs.100 for advertisement.


JE:
Advertisement a/c Dr - all expenses and loses
To Cash a/c - Cr what goes out

Jan 26. Sold goods to M/s.Lal &Co., for Rs.800 for cash

Cash a/c Dr – what comes in


To Sales a/c - goods goes out

Jan 31. Paid salaries Rs.200


JE:
Salaries a/c Dr - all expenses and loses
To cash a/c - Cr cash goes out

Jan 31. Paid Rent Rs.100


JE:
Rent a/c Dr – all expenses and loses
To cash a/c - Cr what goes out

Jan 31. Withdrew from bank Rs.300 for Private use


Drawings a/c Dr - The receiver (owner)
To Bank a/c - Cr the giver
Jan 31. Bought one delivery van for Rs.10000 from the Delhi Motor Co payment to be
made by monthly instalments of Rs.500 each together with interest at 9%. First
instalment paid by cheque.
a) Purchased van : journal entry
Delivery van a/c Dr 10000 Dr asset comes
To Delhi motor co a/c 10000 Cr the giver
b) Interest journal entry
Interest a/c Dr Dr all expenses and loses
To Bank a/c Cr the giver
c) Instalment (cheque payment to Delhi Motor)
Delhi motor a/c Dr - Dr the receiver
To Bank a/c - Cr the giver

SOLUTION Q.P 1:
Journal in the books of ____________
Date Particulars LF Debit Credit
2002 No (RS) (RS)
Jan 1 Cash a/c Dr 10000
To Capital a/c 10000
(being business commenced)
Jan 1 Bank a/c Dr 5000
To Cash a/c 5000
(Being cash deposited into bank)
Jan 2 Furniture a/c Dr 500
To Cash a/c 500
(Being furniture purchased for cash)
Jan 5 Purchase a/c Dr 3000
To Cash a/c 3000
(Being Goods purchased for cash)
Jan 6 Cash a/c Dr 600
To Sales a/c 600
(Being goods sold for cash)
Jan 10 Typewriter a/c Dr 800
To Remington Rang Inc a/c 800
(being typewriter purchased on credit
from Remington Rang Inc)
Jan 13 M/s. Anand & Sons a/c Dr 1000
To Sales a/c 1000
(Being goods sold to Anand & sons on
credit)
Jan 15 Purchase a/c Dr 2000
To M/s. Mohindra & Co 2000
(Being goods purchased from Mohindra
&Co on credit)
Jan18 Telephone Rent a/c Dr 240
To Cash a/c 240
(being telephone rent paid)
Jan 22 Advertisement a/c Dr 100
To Cash a/c 100
(being advertisement paid)
Jan 26 Cash a/c Dr 800
To Sales a/c 800
(being goods sold for cash)
Jan 31 Salaries a/c Dr 200
Rent a/c Dr 100
To Cash a/c 300
(Being salary and rent paid)
Jan 31 Drawings a/c Dr 300
To Bank a/c 300
(Being withdrew from bank for personal
use)
Jan 31 Delivery van a/c Dr 10000
To Delhi motor company a/c 10000
(being delivery van purchased)
Jan 31 Delhi motor company a/c Dr 500
To Bank a/c 500
(Being first instalment paid by cheque)
Jan 31 Interest on Van a/c Dr 75
To Bank a/c 75
(being monthly interest 9% paid by
cheque)

EXAMPLES:

a) Purchased machinery from Kandan Bros, Trichy for Rs.30000 on which they paid
Rs.300 freight on my behalf.
(Expenditure you met for purchasing asset, it should be included in asset)

Machinery a/c Dr 30300 Dr Asset Comes in


To Kandan Bros a/c 30300 Cr the giver
b) A cashier has stolen Rs.1500 and he is absconding

Loss by theft a/c Dr 1500 Dr all expenses and loses


To Cash a/c 1500 Cr what goes out

c) Good costing Rs.12000 were insured for Rs.10000


and premium at 8% p.a was paid on them.

Insurance premium a/c Dr 800 Dr all expenses and loses


To cash a/c 800 Cr what goes out
d) Compound entry
Jan 16th:
Paid salary Rs.1000 – cash transaction
Paid Rent Rs.500 – cash transaction
Journal entry:
Salary a/c Dr 1000
Rent a/c Dr 500
To cash a/c 1500
(being salary and rent paid)

e) Paid amount Rs.1000 to Rajan by cheque


Rajan a/c Dr
To Bank a/c
f) Jan 10 Received cheque from Sudhakar for Rs.30000
Cash a/c Dr
To Sudhakar a/c
(being cheque received from sudhakar on his settlement)

Jan 12th deposited sudhakar cheque in to bank


Bank a/c Dr
To cash a/c
(being sudhakar cheque deposited in to bank)

g) Jan 10 Received cheque from sudhakar and deposited on the same date into bank
Bank a/c Dr
To sudhakar a/c

NOTE: Received cheque is treated as bank a/c only if it is deposited on the same
date into bank account. Otherwise it should be considered as cash a/c
Q. No. 2. Journalise the following transactions:
2001 Jan 1. Rama commenced business with Rs.10000
2. Opened current account with the Indian bank Rs.600
4. Purchased goods from Lakshman Rs.4000
5. Sold goods to Bharathan Rs.3000 – credit transaction
6. Bought 2 tables and 3 chairs Rs.250
8. Returned goods to Lakshman Rs.500
11. Purchased paper, ink, and pencil Rs.25
12. Paid Lakshman Rs.3500 by cheque
14. Bharathan returned goods worth Rs.200
15. Bharathan paid us Rs.2800
18. Cash sales Rs.150
19. Bought of Gopal Rs.1000
20. Sales to Liberty Emporium Rs.600
21. Cash purchases Rs.300
23. Returned goods to Gopal Rs.200
25. Paid Gopal by cheque Rs.800
26. Received cheque from Liberty emporium Rs.600
27. Drawings Rs.250
28. Sold goods to Anand and cash received Rs.150
29. Paid rent Rs.150 by cheque
30. Paid salary Rs.200

Solution QP 2
Journal in the books of Rama

Date Particulars LF Debit Credit


2002 No (RS) (RS)
1 Cash a/c Dr 10000
To Capital a/c 10000
(Being Rama started business with capital)
2 Bank a/c Dr 600
To Cash a/c 600
(Being deposited into bank)
4 Purchase a/c Dr 4000
To Lakshman a/c 4000
(Being goods purchased on credit)
5 Bharathan a/c Dr 3000
To sales a/c 3000
(Being goods sold to bharathan on credit)
6 Furniture a/c Dr 250
To Cash a/c 250
(Being purchase tables and chairs for cash)
8 Lakshman a/c Dr 500
To Purchase return a/c 500
(Being goods returned to Lakshman)
11 Stationery a/c Dr 25
To Cash a/c 25
(Being stationery purchased)
12 Lakshman a/c Dr 3500
To Bank a/c 3500
(Being cheque paid to Lakshman)
14 Sales return a/c Dr 200
To Bharathan a/c 200
(being bharathan returned goods to us)
15 Cash a/c Dr 2800
To Bharathan 2800
(being cash received from bharathan)
18 Cash a/c Dr 150
To Sales a/c 150
(Being goods sold for cash)
19 Purchase a/c Dr 1000
To Gopal a/c 1000
(being goods purchased from Gopal on
credit)
20 Liberty Emporium a/c Dr 600
To Sales a/c 600
(Being goods sold to liberty on credit)
21 Purchase a/c Dr 300
To cash a/c 300
(Being goods purchased for cash)
23 Gopal a/c Dr 200
To Purchase return a/c 200
(Being goods returned to gopal)
25 Gopal a/c Dr 800
To Bank a/c 800
(being cheque paid to gopal)
26 Bank a/c Dr 600
To Liberty emporium a/c 600
(Being cheque received from liberty)
27 Drawings a/c Dr 250
To Cash a/c 250
(being withdrew from office for personal
use)
28 Cash a/c Dr 150
To Sales a/c 150
(Being goods sold for cash)
29 Rent a/c Dr 150
To Bank a/c 150
(Being rent paid by cheque)
30 Salary a/c Dr 200
To Cash a/c 200
(Being salary paid)

II LEDGER
EXAMPLE : No.1 WORKED OUT IN ONLINE CLASS
Journalise the following transactions and post them into ledger books:
2000 Jan 1. Rajan started a business with a capital of Rs.100000
2. Paid into Bank Rs.10000
3. Purchased goods for Rs.1500
4. Sold goods for cash Rs.2000
5. Purchased goods from Ganesh for Rs.2500
6. Sold goods to Bharat Rs.5000
7. Paid rent Rs.250
8. Paid Advertisement Rs.500

Journal in the books of Rajan

Date Particulars LF Debit Credit (RS)


2000 No (RS)
Jan 1 Cash a/c Dr 100000
To Rajan’s Capital a/c 100000
(Being Rajan started business)
Jan 2 Bank a/c Dr 10000
To Cash a/c 10000
(Being Deposited into bank)
Jan 3 Purchase a/c Dr 1500
To Cash a/c 1500
(Being goods purchased for cash)
Jan 4 Cash a/c Dr 2000
To Sales a/c 2000
(Being goods sold for cash)
Jan 5 Purchase a/c Dr 2500
To Ganesh a/c 2500
(Being goods purchased on credit from
ganesh)
Jan 6 Bharat a/c Dr 5000
To Sales a/c 5000
(being goods sold to bharat on credit)
Jan 7 Rent a/c Dr 250
To Cash a/c 250
(Being rent paid)
Jan 8 Advertisement a/c Dr 500
To Cash a/c 500
(being advertisement paid)

Note: List of ledgers to be prepared are: Cash a/c, Capital a/c, Bank a/c, Purchase
a/c, Sales a/c, Ganesh a/c, Bharat a/c, Rent a/c, Advertisement a/c

In the books of Ledger


CASH a/c
Dr Cr
Date Particulars JF Amount Date Particulars JF Amount
Jan no Jan no
1 To Rajan’s Capital a/c 100000 2 By Bank a/c 10000
4 To Sales a/c 2000 3 By Purchase a/c 1500
7 By Rent a/c 250
8 By Advertisement a/c 500
31 By balance c/d (b.f) 89750
102000 102000
Feb 1 To Balance b/d 89750

CAPITAL a/c
Dr Cr
Date Particulars Amount Date Particulars Amount
Jan 31 To Balance c/d 100000 Jan 1 By Cash a/c 100000
100000 100000
Feb 1 By balance b/d 100000
BANK a/c
Dr Cr
Date Particulars Amount Date Particulars Amount
Jan 1 To Cash a/c 10000 Jan 31 By balance c/d 10000
10000 10000
Feb 1 To balance b/d 10000

PURCHASE a/c
Dr Cr
Date Particulars Amount Date Particulars Amount
Jan 3 To Cash a/c 1500
Jan 5 To Ganesh a/c 2500
Jan 31 By balance c/d 4000
4000 4000
Feb 1 To Balance b/d 4000
SALES a/c
Dr Cr
Date Particulars Amount Date Particulars Amount
Jan 4 By cash a/c 2000
Jan 6 By Bharat a/c 5000
Jan 31 To Balance c/d 7000
7000 7000
Feb 1 By balance b/d 7000
GANESH a/c
Dr Cr
Date Particulars Amount Date Particulars Amount
Jan 31 To balance c/d 2500 Jan 5 By purchase a/c 2500
2500 2500
Feb 1 By Balance b/d 2500
BHARAT a/c
Dr Cr
Date Particulars Amount Date Particulars Amount
Jan 6 To Sales a/c 5000 Jan 31 By balance c/d 5000
5000 5000
Feb 1 To Balance b/d 5000
RENT a/c
Dr Cr
Date Particulars Amount Date Particulars Amount
Jan 7 To Cash a/c 250 Jan 31 By balance c/d 250
250 250
Feb 1 To balance b/d 250

ADVERTISMENT a/c
Dr Cr
Date Particulars Amount Date Particulars Amount
Jan 8 To Cash a/c 500 Jan 31 By balance c/d 500
500 500
Feb 1 To balance b/d 500

Trial Balance of Rajan as on 31.01.2000

S.N Name of the Account LF NO DEBIT CREDIT


o
1 Cash a/c 89750
2 Capital a/c 100000
3 Purchase a/c 4000
4 Sales a/c 7000
5 Ganesh a/c 2500
6 Bharat a/c 5000
7 Rent a/c 250
8 Advertisement a/c 500
9 Bank a/c 10000
Total 109500 109500

III Subsidiary Books


Q.No.3. Enter the following transactions in proper subsidiary books and post to ledger:
2001 March 1. Bought goods from A. Albert Rs.2000 = PB
2. Sold goods to B. Brown Rs.1000 = SB
7. C. Charles sold goods to us Rs.1000 = PB
8. D. David bought goods from us Rs.700 = SB
10. Received goods returned by B. Brown Rs.80 = SRB
12. We returned goods to A. Albert Rs.50 = PRB
13. D. David returned goods Rs.90 = SRB
18. Sold goods to M. Mohan Rs.500 = SB
22. Purchased goods from M. Moses Rs.600 = PB
25. Returned goods to C. Charles Rs.100 = PRB
30. Sold goods to S. Solomon Rs.600 = SB

PURCHASE BOOK
DATE NAME OF THE SUPPLIER L.F INWARD AMOUNT
INVOICE NO
1.3.2001 A. Albert 2000
7.3.2001 C. Charles 1000
22.3.2001 M. Moses 600
31.3.200 Total 3600
1

SALES BOOK
DATE NAME OF THE CUSTOMER L.F OUTWARD AMOUNT
INVOICE NO
2.3.2001 B. Brown 1000
8.3.2001 D. David 700
18.3.200 M. Mohan 500
1
30.3.200 S. Solomon 600
1
Total 2800

PURCHASE RETURN BOOK


DATE NAME OF THE SUPPLIER L.F DEBIT NOTE AMOUNT
NO
12.3.2001 A. Albert 50
25.3.2001 C. Charles 100
31.3.200 Total 150
1
SALES RETURN BOOK
DATE NAME OF THE CUSTOMER L. CREDIT NOTE AMOUNT
F NO
10.3.2001 B. Brown 80
13.3.2001 D. David 90
31.3.200 Total 170
1

Ledger Accounts
Purchase a/c
(Dr . goods comes in)
Dr Cr
Date Particulars Amoun Date Particulars Amount
t
31.3.200 To Sundries 3600
1 creditors a/c (as
per purchase
book)

Sales a/c
Dr Cr
Date Particulars Amount Date Particulars Amount
31.3.2001 By sundry debtors 2800
a/c (as per sales
book)

Purchase Return a/c


Dr Cr
Date Particulars Amount Date Particulars Amount
31.3.2001 By sundry 150
creditors a/c (as
per purchase
return book)
Sales return a/c
Dr Cr
Date Particulars Amoun Date Particulars Amount
t
31.3.200 To Sundries (as per 170
1 sales return book)

Personal a/c (Dr the receiver, Cr the giver)


A. Albert a/c
Dr Cr
Date Particulars Amount Date Particulars Amount
12.3.200 To Purchase return 50 1.3.200 By Purchase a/c 2000
1 a/c 1

C. Charles a/c
Dr Cr
Date Particulars Amount Date Particulars Amount
25.3.200 To Purchase return 100 7.3.200 By Purchase a/c 1000
1 a/c 1

M. Moses a/c
Dr Cr
Date Particulars Amount Date Particulars Amount
22.3.2001 By Purchase a/c 600

B. Brown a/c
Dr Cr
Date Particulars Amount Date Particulars Amount
2.3.2001 To sales a/c 1000 10.3.2001 By Sales return 80
a/c

D. David a/c
Dr Cr
Date Particulars Amount Date Particulars Amount
8.3.2001 To Sales a/c 700 13.3.2001 By Sales return 90
a/c

M. Mohan a/c
Dr Cr
Date Particulars Amoun Date Particulars Amount
t
18.3.200 To Sales a/c 600
1

S. Solomon a/c
Dr Cr
Date Particulars Amoun Date Particulars Amount
t
30.3.200 To Sales a/c 500
1

Q.No.4. Enter the following transactions in their proper subsidiary books


2000 Jan 1. Sold goods to Rama Rs.2000
2. Hari sold us goods Rs.1500
3. Purchased goods from Krishna Rs.3000
4. Govind purchased goods from us Rs.700
5. Rama returned goods to US Rs.100
6. Returned goods to Hari Rs.250
7. Govind returned goods Rs.50
8. Returned goods to Krishna Rs.450
9. Bought of patel Rs.1700
10. Suresh bought goods from us Rs.1100
11. Returned goods to Patel Rs.200
12. Suresh returned goods Rs.75
Solution: Q.No.4
PURCHASE BOOK
DATE NAME OF THE SUPPLIER L.F INWARD AMOUNT
INVOICE NO
2.1.2000 Hari 1500
3.1.2000 Krishna 3000
9.1.2000 Patel 1700
31.1.200 Total 6200
0

SALES BOOK
DATE NAME OF THE CUSTOMER L.F OUTWARD AMOUNT
INVOICE NO
1.1.2000 Rama 2000
4.1.2000 Govind 700
10.1.200 Suresh 1100
0
Total 3800

PURCHASE RETURN BOOK


DATE NAME OF THE SUPPLIER L.F DEBIT NOTE AMOUNT
NO
6.1.2000 Hari 250
8.1.2000 Krishna 450
11.1.2000 Patel 200
31.1.200 Total 900
0

SALES RETURN BOOK


DATE NAME OF THE CUSTOMER L. CREDIT NOTE AMOUNT
F NO
5.1.2000 Rama 100
7.1.2000 Govind 50
12.1.2000 Suresh 75
31.1.2000 Total 225

Example sum: No.2 Record the following transactions for the month of January 1999
in the purchases book of M/s. Narain Electronics:
Jan 4 Purchased from M/s. Brown Electronics:
20 Black & white T.Vs @ Rs.5200 per piece
10 Colour T.Vs @ Rs.12,000 per piece.
Trade discount on all items @ 12%
Jan 10. Purchased from M/s. Mani Electronics:
12 video tapes @ Rs.600 per piece
8 philips tape recorders @ Rs.2500 per piece.
Jan19 Purchased from M/s Sehgal Electronics:
10 L G stereos @ Rs.3500 per piece
8 LG color T.Vs @ Rs.25000 per piece
Trade discount @ 15%
Jan 24: Purchased from M/s Gupta Electornics:
200 Audio Cassettles @ Rs.25 per piece
30 Equity toasters @ Rs.500 per piece.

PURCHASE BOOK
DATE NAME OF THE SUPPLIER L.F INWARD Details AMOUNT
in no
4.1.90 M/s Brown Electornics:
20 Black & white T.V @ 104000
Rs.5200/piece 120000
10 Colour T.Vs @ Rs.12,000 per
piece. 224000
26880 197120
Less: Trade discount @ 12%
(224000 x12/100)
10.1.9 M/s Mani Electronics:
9 12 video tapes @ Rs.600 per piece 7200
8 philips tape recorders @ Rs.2500
per piece. 20000 27200
19.1.9 M/s Sehgal Electronics:
9 10 L G stereos @ Rs.3500 per piece 35000
8 LG color T.Vs @ Rs.25000 per piece 200000
----------------------------------------- 235000
Less: Trade discount @ 15% 35250 199750
(235000 x15/100) = 35250
24.1.9 M/s Gupta Electronics:
9 200 Audio Cassettles @ Rs.25 /piece 5000
30 Equity toasters @ Rs.500 per 15000 20000
piece.
TOTAL 444070
Petty Cash Book:
Example sum: No.3 (online class)
Petty cashier received Rs.600 on April 1, 1999 from the head cashier. Prepare a Petty
cash book on the imprest system for the month of April 1999 from the following
items:
3. Stamps Rs.50
5. Taxi fire Rs.100
6. Pencils & pen Rs.75
7. Registry Rs.25
10. Speed post Rs.45
12. Telegram Rs.35
15. Refreshment Rs.55
16. Auto fare Rs.20
19. Typing paper Rs.60
20. Bus fare Rs.15
22. Trunk calls Rs.43
25. Office cleaning Rs.18
30. Courier Service Rs.17
Show the analysis of payments as Postage & Stamps, Telephone & Telegram,
Conveyance, Stationery and sundry expenses.
Assume imprest amount of Rs.600.
Analytical Petty Cash Book
Dr Cr
Amt Date Particulars Total Postage Telephone Conveyance Stationery Sundry
1999 Pay Stamps Telegram expenses
600 Apl1 To Cash
3 By Stamps 50 50
5 By Taxi 100 100
6 By Pencil 75 75
7 By Registry 25 25
10 By speed post 45 45
12 By Telegram 35 35
15 By refreshment 55 55
16 By auto fare 20 20
19 By typing paper 60 60
20 By bus fare 15 15
22 By trunk calls 43 43
25 By Office cleaning 18 18
30 By courier services 17 17
Total 558 137 78 135 135 73
30 By balance c/d 42
600 600
42 May1 To balance b/d
558 1 To Cash a/c
Q.No.5. A petty cashier received a sum of Rs.100 on June 7, 2001. The transactions
during the week.
June 8. Bought stamps Rs.15.00
8. Paid bus fare to 4 messengers Rs.4.00
9. Paid taxi Hire rs.2.50
9. Telephone sent rs.4.00
10. Paid for carriage rs.6.50
10. Paid taxi hire rs.8.50
11. Purchased envelope rs. 5.50
11. Paid for repairs of typewriter rs,16.00
12. Paid carriage rs.25.00
12. Paid for coffee to office staff for extra work done rs.10.00
Analytical Petty Cash Book
Dr Cr
Amt Date Particulars Total Postage Telephone Conveyance Carriage office
2001 Pay Stamps Telegram expenses
100 Jun 7 To cash
Jun 8 By Stamp 15.00 15.00
Jun 8 By Bus fare 4.00 4.00
Jun 9 By taxi hire 2.50 2.50
Jun 9 By telephone rent 4.00 4.00
Jun10 By Carriage 6.50 6.50
Jun10 By taxi hire 8.50 8.50
Jun11 By envelope 5.50 5.50
Jun11 By repair of typewriter 16.00 16.00
Jun12 By carriage 25.00 25.00
Jun12 By coffee to office staff 10.00 10.00
Total 97.00 20.50 4.00 15.00 31.50 26.00
June1 By balance c/d 3.00
2
100 100
3.00 Jun13 To balance b/d
97.0 Jun 13 To cash a/c
0

Trial Balance:

Q. No.6 The following balances were extracted from the books of chinnappan as at
June 30, 2002. Prepare Trial balance:
Capital Rs.20000, Drawings Rs.5000, Purchases Rs.90000, Sales Rs.130000, Returns
Inwards Rs.700, returns Outwards Rs.900, Carriage Inwards Rs.1100, Carriage Outward
Rs.800, Duty on Purchases Rs.2000, Stock on 1.7.2001. Rs.11000, Motor Van Rs.6000,
Salaries Rs.5000, Rent Rs.2000, Taxes Rs.300, insurance Rs.600, Sundry debtors
Rs.8000, Sundry creditors Rs.6000, Cash on Hand Rs.500, Cash at Bank Rs.2500,
Furniture Rs.1000, Land Rs.20400.

Trial Balance of Chinappan as on 30.06.2002

S.No Name of the Account LF NO DEBIT CREDIT


1 Capital a/c 20000
2 Drawings a/c 5000
3 Purchase a/c 90000
4 Sales a/c 130000
5 Returns Inwards (Sales return) 700
6 Return outwards (purchase return) 900
7 Carriage Inwards 1100
8 Carriage outwards 800
9 Duty on purchase 2000
10 Opening stock 11000
11 Motor van 6000
12 Salaries 5000
13 Rent 2000
14 Taxes 300
15 Insurance 600
16 Sundry debtors 8000
17 Sundry creditors 6000
18 Cash 500
19 Cash at Bank 2500
20 Furniture 1000
21 Land 20400
Total 156900 156900

Q.No.7 From the following balances extracted from the books of a Trader on 31st 2008,
prepare a Trial Balance as on 31st March 2008.
Cash in hand Rs.2400 Dr Plant and Machinery Rs.1,20,000 Dr
Capital Rs.2,00,000 Cr Sales Rs.4,00,400 Cr
Purchases Rs.2,40,000 Dr Furniture & Fittings Rs.30,000 Dr
Bills payable L Rs.44,000 Cr Bad debts reserve Rs.2,000 Cr
Stock (opening) Rs.70,000 Dr Bills Receivables Rs.40,000 Dr
Sundry Debtors Rs.1,00,000 Dr Rent and Taxes Rs.20,000 Dr
Sundry Creditors Rs.48,000 Cr Salaries Rs.40,000 Dr
Wages Rs.32,000 Dr
ANS: 694400

Trial Balance of a Trader as on 31.03.2008

S.No Name of the Account LF NO DEBIT CREDIT


1 Cash in hand a/c 2400
2 Capital a/c 200000
3 Purchases a/c 240000
4 Bills payable a/c 44000
5 Stock a/c 70000
6 Sundry debtors a/c 100000
7 Sundry creditors a/c 48000
8 Wages a/c 32000
9 Plant and Machinery a/c 120000
10 Sales a/c 400400
11 Furniture and Fittings a/c 30000
12 Bad debts reserve a/c 2000
13 Bills receivable a/c 40000
14 Rent and taxes a/c 20000
15 Salaries a/c 40000
Total 694400 694400

Journal , Ledger, Trial balance and final accounts subsidiary books (TABLE)

Debit Credit
Capital Xxxx
Drawings xxxx
Purchase xxxx
Sales Xxxx
Purchase return Xxxxx
Sales return xxxxx
Expenses and loses: Xxxxx
Rent, salary, advt, wages, carriage,
Discount allowed, Loss on sale of
old machiner, loss by theft, bad
debts etc
Incomes and gains: Xxxx
Rent received/ earned,
Interest received, Discount received
Profit on sales of old machinery etc

Assets: xxxxx
Sundry debtors, bills receivable,
Cash, cash at bank, stock, debtors,
bills receivable, land and building,
furniture, plant, premises, vehicles,
etc
Liabilities Xxxxx
Sundry creditors, bills payable, bank
overdraft, loan from Mr.X, O/s
expenses etc
H.W.1. Enter the transactions in journal, post them and prepare Trial Balance.
2000 Jan 1 Mathavan started business with cash Rs. 3000,
Jan 10 Sold goods to Raman Rs.1500
2 Purchased goods from Mohan Rs.5000 15 Purchased goods from kannan Rs.2000
3 Sold goods for cash Rs.800 20 Raman returned goods Rs.30
5 Paid Mohan Rs.2,050 25 Sold goods to Gopal to a trade discount
8 Returned goods to Mohan Rs.100 of 5% Rs.1000
30 Paid kannan Rs.157, Jan 31. Paid salaries Rs.50, Rent Rs.25 Stationery Rs.30

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