BOOKS OFO

Govil &
Govil & Co.
Co, :

1 7 . Enter the in the

Journal of Arun
2018 following transactions

June 1 Arun Govil & Co. capital

R6,00,000.

paid into bank as at 1 0 o trade discount.

June 3
Purchased from Mukesh of the list e
price of 2,00,000
of 2,00,000
being upto specifications
June 4 One-fourth goods returned to
Mukesh for
not

une
above goods
to him afer deducting 2% as c a s h
6 amount due
to Mukesh for the
discountcque
unt. use.
for personal
une 7 d 10,000
Withdrew from bank t2.50,000 for office use its lation.
installatic Payment
on
ane 10 5,000
Purchased a machinery for R1,00,000 and spent were paid in cash.
installation expenses
n e r y was made by chegque and
June 12 Sold
goods for 1,00,000 to Amar 1s immediate!ly sent
SAmar clears his account by giving a cheque of 98,500. Cheque
to bank.
useS,000.
nC 20 Purchased stationery for personal use 3,000 and for office
and R15,000 as registration
une
Purchased land for 2.00.000 and naid 1% as brokerage
charges o n it. Entire
payment is made by Cheque.
une 50 Wages due to labourers 20,000 and salary due to the clerk R50,000.

[Ans.Total 18,00,000.]
O
 Q. 27. Journalise the following:
Received V.P.P. from Mohan Lal for
a
25,000. Sent a peon to collect it who pala
200 as cartage.
() Received 1,000 from sales
of old newspapers and 5,000 from sales of old chairs.
(iin Goods given away as charity
goods costing 7,000.
(iv) Received Cash from a debtor written off as bad-debt last
year 20,000.
(v)Sold goods costing 50,000 to Ashok on credit at a
profit on cost.
of 20%
(vi) Sold
goods costingT1,00,000 for R1,40,000.
(vin Provide 50,000 as interest on
Capital.
(vii) Paid rent building 60,000 by cheque. Half the building
of is used by the proprietor
for residential purpose.
(ix) Outstanding salary at
-
the end of the year 30,000.
[Ans. Total 3,98,200]
Q. 37. Journalise the following transactions in the books of Prakash:
() Openedacurrent account with Punjab National Bank1,00,000.
G) Received a cheque of R12,900 from Chandradevand allowed discount
500 to him. The cheque was depositedinto Bank on the same day.
9.74 BOOKS OF ORIGINAL ENTRY
JOURNAL
made by cheque.
(u) Purchased machinery for 1,00,000, payment
cash.
Installation change of machinery 76,000 paid in
( ) Purchased a horse for business for 20,000.
discount 10% and cash
() Sold goods to Gokul at a list price of 4,000. Trade availed the
the same day and cash
discount 5%. He paid the amount on

discount
these goods
(v) Purchased goods for 10,000 and paid 400 for carriage
on

(vi) Additional cash introduced by the proprietor 40,000.

100.
(vii) Purchased stationery 800 and postal stamps
() Withdrawn form Bank 20,000. from Manu and received
()Received order to supply goods of 740,000
an

T10,000 a s a n advance together with the order.

stolen
(z) Cash 10,000 and goods worth 4,000 were
and the payment was made
xi) Purchased goods from Devendra for R40,000
by cheque.
Sold 1/4th of the above goods at a profit of 25% on cash.
(rii)
IAns. Total 3,90,600.1
Hints: In transaction No. (iin Machinery Alc will be debited by 1,06,000
In trunsaction No. (vi) Purachases Alc will be debited by 710,000 and Carriage
Inwards Ae will be debited by 400.
 SNunneu n e chncque nas Deen depOSIted on h e
|Her "
and
Q. 12. Enter the following transactions in the Cash Book with Cash
Columns :

2016
June I Balance of Cash in Hand 12,000; Overdraft at Bank R1.500.
2 Deposited into Bank R10,000.
Sold goods for Cash 28,000 and paid half the proceeds into Bank.
3 Purchased goods for R7,000 from Manoj & Co. on Credit.
5 Received a Money Order from Suresh 500.
8 Received?2,800 from Govind. Paid 1,000 into Bank.
due
10 Received a
cheque lor R7,600 trom Subhash in full setlement of R8,000 iro
him.
12 Settled the account of Manoj & Co. by payment of 6,6100
half Cash and half by cheque. into Bank.
13 Cheque received from Subhash deposited R20,000.
15 Paid for purchase of Machinery by cheque
16 Paid wages for the erection of above Machinery 21,000.
of lurniture.
Cheque Issued for 6,000 in favour of Sachdeva Co. purchase
& tor
17

20 Purchased goods from Kalpna Garments for R10,500 on

credit.
Bank Dralt for R4,800 irom Damodar & Co. in full settlement of R5,000
Received a

due Irom them. Sent the dralt to bank.

24 Bank issued a draft for 10,00t0 in favour ot Kalpna Ciaments on ur request. Bank
2 5 tor issuing the draft. Account of Kalpna Gaments was fully settled.
charged
bank lor petty cash 00.
26 Drew trom

28 Paid salary by cheque 6,000.

30 Bank 50 and Interest I.620 charged by bank.
Charges
at office.
Deposited into
bankthe entire balance after retaining R4,000
[Ans. Cash Balance R4,000; Bank Overdratt R1,195. ENCess cash deposited into
bank on 30h June R10,000.
 Q. 16. Record the following transactions in a Petty Cash Book with suitable
columns. The book is kept on imprest system, amount of imprest being R4,000.
2017

April 1 Petty cash in hand 540. Received cash to make-up the imprest.
Paid for office cleaning 100.
April 4 Paid railway fare fare R280, wages R150.
R320, bus
April 5 Bought shorthand note books for oflice R370.

April 7 Paid carriage on parcels 150, paid for wages *220. accounts
for R450 and an register for 400.
April 10 Bought stamps for 300, envelopes
12 Paid for repairs 200, tips to oftice peon R150.
April gave
April 13 Gave charity R100, served tea
to customers250.
R100.
April 15 Paid for wages R 160, rewards to servant
[Ans. Petty cash balance 300. Postage & Courier300; Wages 7530;
Miscellaneous Expenses 900.]
Conveyance R600; Cartage R150; Stationery 1,220;
 deos

at
4 Following balances
31st March, 2017:
were extracted from the books of Ravinder Associates as

Sundry Debtors 1,2016) 2,30,000

Sundry Creditors
4,10,000 Stock (April
80,000 Premises 12,00,000
Rent and Taxes 3,10,000
48,000 Fixtures & Fittings
Purchases 34,00,000 Bad Debts written off 8,000
Sales 56,00,000 Rent received from sub-let of
Trade Expenses 12,000 part of premises 000
Returns Outwards Loan from Mukul
80,000
Retums Inwards 1,20,000 Interest on Mukul's Loan 15,000
4,000 Drawings 40,000
Expenses
Motor Vehicles 6,50,000 Cash in hand 75,000
Electricity 25,000 Stock on 31st March, 2017

not adjusted) 3,80,000

o u are required to prepare the trial balance treating
the difference as his capital.
[Ans. Trial Balance Total R65,47,000; Capital R6,07,000.]
Hint: Closing stock will not be shown in Trial Balance.

1 Lnlan hsc SAP1 nr nared hv 3T PxnerienCed

 repare Bank Reconcillation Statement from the following particulars as
a
on 3Ist March 2015:

heques were deposited into bank on 25th March for 20,000. Out of these
were cleared on 4th April, cheques for 6,000 on 6ih Apni
hcgues ror *8,000
and one cheque for R1,400 was dishonoured on 7th April.
neuCs amounting to 12,000 were issued in March, out
of which cheques for
2,000 werë encashed upto 31st March.
(iii) A bill for5,000 (discounted with the bank in January) dishonoured on
and noting charges paid by bank 50. No information regardinE
Marcn201D
the dishonour was received from the bank in March 2015.
(iv) Cheque issued toa creditor for 2,000 was through mistake entered in the cash
column of the Cash Book. The same has not been presented for payment till

today.
() Receipt side of the Cash Book (bank column) was undercast by 100.
(vi) Bank has paid a bill payable amounting to 2,500 but it has not been entered in
the Cash Book.
(vin A cheque for 2,000 issued to omitted to be recorded in Cash Book.
Mr. Xwas
(viit) Dr. balance as per Pass Book was 7,200.
[Ans. Balance as
per Cash Book R7,650.]
 Q. 40. The bank statement
of Mr. James Flint showed an overdraft to the tune
60,400 as or
on 31-12-014. Cash Book showed a debit balance of
2,00,120 as on the
same date. The tolloWing further lacts are
available

(a) Cheque issued to 1ax Consultants was

not cashed till 31-12-2014. 12,000
(b) Cheque issued to
Management Consultancy Services was
cashed on l14-1-2015. 20,000
(c) Cheque received trom M/s General Studies and deposited
into the bank was credited in the account on 3-1-2015. 2,20,000
() Dividend warrant deposited on 29-12-2014 was not
credited by the bank till 31-12-2014. 4,4400
(e) Bank charge not adjusted in books of Mr. Flint till 31-12-2014 680
) Interest credited by the bank and not adjusted in the books
till 31-12-2014 2,560
Prepare a Bank Reconciliation Statement of Mr. James Flint as on 31-12-2014.
25,000.
Bhushan & Company purchased Machinery on 1st April, 2015, f
a

RS4,000 and spent 6,000 on its installation. On Ist December, 2u16, 1t purchased
another machine for R30,000.
1st is sold
On 30th June 2017,
the
first machine
R36,000 and on the same date it purchased
purchased on
new machinery
April, 205, for
a
for x80000.
On December 1, 2018, the second machine (purchased on December 1, 2016) Was
also sold oft for R26,000.
Depreciation was provided on machinery @10% p.a. on Original Cóst Method
annually on 3 1st March. Give the machinery account for four years.
LAns. Loss on sale of First Machine 710,500; Profit on sale of Second Machine
000, Balance of Machine A/c on 31st March, 2019, R66,000.
Q.8. On Ist October, 2009, Raj & Co. purchased machinery worth 40,000. On
stOctober, 2011, it buys additional machinery worth 10,000. On 30th September,
0 2 , hall
of the machinery purchased on 1st Oct., 2009, is sold for 8,200. The
company wTites off 10 per cent p.a. on the original cost. The accounts are closed every
year on 3lst March.
Show the Machinery Account for four years.
LAns. Loss on sale 5,800. Balance of Machinery ANc on 31st March, 2013,
R21,500.]
 Note: 1ere will be no effect of IGST on
Machine A/c.
Q.13. A fim purchased on Ist April, 2009, a second-hand for R36,000
and spent 4,000 on its Machinery
installation.
On Ist Oct. in the same year another
costing 20,000 was purchased. On lst Oct., 2011, the Machinery
Machinery
2009 was sold off for R12,000 and on the same date a fresh bought
on istA for
Machine was purchased
64,000. Depreciation 1S provided annually 31st March,
Down Value Method. Show the @ 10% p.a. on the Written
on
Machine A/c from Ist April, 2009 to 31st Marcn,
2013
[Ans. Loss sale of
on
Machinery 18,780; Balance of Machinery Alc on 3lst
March, 2013, F68,571.]
Q.14. Company purchased a machinery for 750,000 on Ist Oct., 2016. Another
A
machinery costing 10,000 was purchased on Ist Dec., 2017. On 31st March, 2019,
the machinery purchased in 2016 was sold at a loss of
R5,000. The Company charges
depreciation at the rate of 15% p.a. on Diminishing Balance Method. Accounts are
closed on 31st March every year.
Prepare Machinery account for 3 years.
[Ans. Sale price of Machinery 28,415; Balance of Machinery A/c on 31st March,
2019 R8,075,
 S t MarCh

. 2 5 . On Ist August, 2010, Hindustan Toys Ltd. purchased a plant for

2,00,000. The fim writes off depreciation at 10% p.a. on thec diminishing
balance
and the books are closed on 31st March each year. On lIst July, 2012, a part of this
plant of which the original cost was 1,80,000 was sold for 1,00,000 and on the same
date a new plant was purchased for 74,00,000, Show the Plant Account and Provision
tor Depreciation Account for three years ending 31st March, 2013.
Ans. Balance of Plant A/c on 31st March, 2013 14,20,000; Balance of Provision
for Depreciation A/c 31st March, 2013 2,78,880; Loss on sale of Plant
on 747,420.]
Q 26. On Ist April 2012, Banglore Silk Lid. purchased a machinery for
20,00,000. It provides depreciation at 10% p.a. on the Written Down Value Method
and closes its books on 31st March every year. On Ist July 2014, a part of the
machinery purchased on Ist April 2012 for 74,00,000 was sold for R3,20,000. On Ist
November 2014, a new machinery was purchased for 4,80,000. You are required to
prepare Machinery Account, Depreciation Account and Provision for Depreciation
Account for three years ending 31st March 2015.
[Ans. Balance of Machinery A/c on 31st March 2015 20,80,000; Balance of
Provision for Depreciation A/c on 31st March 2015 4,53,600; Gain on sale of
Machinery 4,100.]
 s . Prove nar une 4ccounting equation is satisfied in the followng

ansacuons

Mohan commenced business

) Brij with Cash |,00,000
goods for Cash
(6) Bought 60,000

(rd of the above goods sold at a profit of 20% on cost.

Half the payment received in Cash
(Purchased typewriter for oflice use 15,000

(e)Purchased goods on Credit from X 25,000

Paid to X 15,000
g)Paid Salary 3,000
(h) Reccived commission 500

0 Soldgoodsfor Cash(CostR50,000) 60,000

Ans. Assets : Cash 79,500+Stock 15,000+ Debtors R12,000 + Typewriter
i5,000= Liabilties:Creditors(8) R10,000+Capital 1,11,50.]
Q.26. Show the accounting cquation on the basis of the following transactions and
the Balance Sheet:
alsoshow
Started business with Cash 60,000 and Goods 30,000.
() Purchased goods for Cash 740,000 and on Credit 25,000.

(i) Goods costing 748,000 sold at a profit of 33h. Three-fourth

payment received in Cash
Goods costing 20,000 sold at a loss of 5%, out of which
(iv)
12,000 received in Cash.
) Paid Rent 74,000 and Salary ?6,00.
(vi) Received Cash from Debtors R15,000.
(vi) Paid telephone bill amounting to 800.
Ans. Assets : Cash 84,200 +Stock R27,000 +
Debtors
Creditors 25,000+Capital 94,200; Balance Sheet Total RI,19,200.]
78,000 Liabilities: