Iv Exercises ‘Complete the accounting equation (a) Assets = Capital + Liabilities %1,00,000 %80,000 + z (b) Assets Capital + Liabilities 2,00,000 z + %40,000 (©) Assets Capital + Creditors ? %1,60,000 + —& 80,000 For the following transactions, show the effect on accounting equation. (a) Raj Started business with cash % 40,000 (b) Opened bank account with a deposit of 30,000 (©) Bought goods from Hari on credit for 12,000 (d) Raj withdrew cash for personal use 1,000 (e) Bought furniture by using debit card for % 10,000 (8) Sold goods to Murugan and cash received 6,000 (g) Money withdrawn from bank for office use 1,000 Prepare accounting equation for the following transactions. (a) Murugan commenced business with cash % 80,000 (b) Purchased goods for cash € 30,000 (©) Paid salaries by cash & 5,000 (d) Bought goods from Kumar for & 5,000 and deposited the money in CDM. (e) Introduced additional capital of @ 10,000 ‘What will be the effect of the following on the accounting equation? (a) Sunil started business with % 1,40,000 cash and goods worth € 60,000 (b) Purchased furniture worth % 20,000 by cash (c) Depreciation on furniture % 800 (d) Deposited into bank & 40,000 (©) Paid electricity charges through net banking % 500 (£) Sold goods to Ravi costing & 10,000 for ® 15,000 (g) Goods returned by Ravi 7,500 (costing & 5,000) Create an accounting equation on the basis of the following transactions: (i) Rakesh started business with a capital of & 1,50,000 (ii) Deposited money with the bank % 80,000 (ili) Purchased goods from Mahesh and paid through debit card & 25,000 {iv) Sold goods (costing € 10,000) to Mohan for € 14,000 who pays through debit card (v) Commission received by cheque and deposited the same in the bank & 2,000 (vi) Paid office rent through ECS % 6,000 (vii) Sold goods to Raman for 15,000 of which & 5,000 was received at onceCreate an accounting equation on the basis of the following transactions: (i) Started business with cash % 80,000 and goods % 75,000 (ii) Sold goods to Shanmugam on credit for 8 50,000 (ili) Received cash from Shanmugam in full settlement € 49,000 (iv) Salary outstanding % 3,000 (v) Goods costing ¥ 1,000 given as charity (vi) Insurance premium paid % 3000 (vii) Out of insurance premium paid, prepaid is % 500 Enter the following transactions in the journal of Manohar who is dealing in textiles: 2018 March 5 1 Manohar started business with cash 60,000 2 Purchased furniture for cash 10,000 3 Bought goods for cash 25,000 6 Bought goods from Kamalesh on credit 15,000 8 Sold goods for cash 28,000 10 Sold goods to Hari on credit 10,000 14 Paid Kamalesh 12,000 18 Paid rent 500 25 Received from Hari 8,000 28 Withdrew cash for personal use 4,000 Pass journal entries in the books of Sasi Kumar who is dealing in automobiles. 2017 Oct z 1 Commenced business with goods 40,000 3 Cash introduced in the business 60,000 Purchased goods from Arul on credit 70,000 6 Returned goods to Arul 10,000 10 Paid cash to Arul on account 60,000 15 Sold goods to Chandar on credit 30,000 18 Chandar returned goods worth 6,000 20 Received cash from Chandar in full settlement 23,000 25 Paid salaries through ECS 2,000 30 Sasi Kumar took for personal use goods worth 10,000 Journalise the following transactions in the books of Ramesh who is dealing in computers: 2018 March 1 Ramesh started business with cash % 3,00,000, Goods % 80,000 and Furniture % 27,000. 2 Money deposited into bank & 2,00,000 3 Bought furniture from M/s Jayalakshmi Furniture for % 28,000 on credit. 4 Purchased goods from Asohan for ® 5,000 by paying through debit cardPurchased goods from Guna and paid through net banking: € 10,000 Purchased goods from Kannan and paid through credit card & 20,000 Purchased goods from Shyam on credit for ® 50,000 Bill drawn by Shyam was accepted for % 50,000 Paid half the amount owed to M/s Jayalakshmi Furniture by cheque 10 Shyam’ bill was paid eouan 10. Raja has a hotel. The following transactions took place in his business. Journalise them. Jan. z Started business with cash 3,00,000 2 Purchased goods from Rajiv on credit 1,00,000 3 Cash deposited with the bank 2,00,000 20 Borrowed loan from bank 1,00,000 22 Withdrew from bank for personal use 800 23 Amount paid to Rajiv in full settlement through NEFT 99,000 25 Paid club bill of the proprietor by cheque 200 26 Paid electricity bill of the proprietor’s house through debit card 2,000 31 Lunch provided at free of cost to a charity 1,000 31 Bank levied charges for locker rent 1,000 11. From the following transactions of Shyam, a stationery dealer, pass journal entries for the month of August 2017. Aug. 1 Commenced business with cash % 4,00,000, Goods ® 5,00,000 2 Sold goods to A and money received through RTGS ® 2,50,000 3 Goods sold to Z on credit for & 20,000 5 Bill drawn on Zand accepted by him % 20,000 8 Bill received from Z is discounted with the bank for ® 19,000 10 Goods sold to M on credit 12,000 12 Goods distributed as free samples for @ 2,000 16 Goods taken for office use % 5,000 17 Mbecame insolvent and only 0.80 per rupee is received in final settlement 20 Bill of Z discounted with the bank is dishonoured 12, Mary is a rice dealer having business for more than 5 years. Pass journal entries in her books for the period of March, 2018. March z 1 Ricebags bought on credit from Sibi 20,000 2 Electricity charges paid through net banking 500 3 Returned goods bought from Sibi 5,000 4 Ricebags taken for personal use 1,000 5 Advertisement expenses paid 2,000 6 Goods sold to Mano 20,000 7 Goods returned by Mano 5,000 8 Payment received from Mano through NEFTQ Student activity Fill in the missing information in the following journal entries: ‘To Niha Ale (Received T 18,800 from in full settlement of the due % 19,000) Date Particulars LE] Debit® | Gredit® Ale Dr. Way Ale (Goods purchased for cash & 20,000) Ale Dr Ale Dr. ®Y Student activity Write the narration with reference to the following journal entries. In the books of Shyam Journal entries Date Particulars LE | Debit [ Credit® 2018 [Cash Ale Dr. 3,00,000 April To Shyam’s capital A/c 3,00,000 {. Bank A/e Dr 2,70,000 To Cash Ale 2,70,000