UNIT-I ACCOUNTING PROCESS

Short Questions

Sol 15:
Journal Entries in the books of Mahesh

Date Particulars L Debit Amt Credit

F Amt

2018 Cash a/c dr 20,000

April To Swetha a/c 20,000
1 ( being cash received )

Purchases a/c dr 18,000

April To Cash a/c 18,000
3 (being goods purchased for cash)

Machinery a/c dr 15,000

To Cash a/c
April (being Machinery purchased for cash) 15,000
6

Wages a/c dr 1,200

To Cash a/c 1,200
(being wages paid)
April
9

Sol 16:
Journal Entries in the books of Basu

Date Particulars L Debit Amt Credit Amt

F

(i) Bank a/c dr 750

To Sales a/c 750
( being goods sold against cheque )

(ii) Cash a/c dr

To Commission a/c 400
(being commission received) 400

(iii) Insurance Premium a/c dr

To Bank a/c 300
(being insurance premium paid by bank the directly)
300

(iv) Bank a/c dr

To cash a/c
(being amount deposited into bank) 5,000
5,000
Drawings a/c dr
(v) To Bank a/c
(being amount withdrawn from bank for personal use) 850
850

Sol 17:

Journal Entries in the books of Baghwan

Date Particulars L Debit Amt Credit

F Amt

(i) Interest on loan a/c dr 500

To Cash a/c 500
( being interest paid)

(ii) Bad debts recovered a/c dr 425

To Kiran a/c 425
(being amount received from Kiran which was a bad debt)

Sol 18:
Journal Entries

Date Particulars LF Debit Amt Credit Amt

(i) Loss of Goods a/c dr 25,000

To Purchases a/c 25,000
( being stock lost due to fire)

Insurance Company a/c dr 22,000

P&L a/c dr 3,000
To Loss of goods a/c 25,000
( being loss of goods & insurance company admitting the claim
partly brought into account)

Plant a/c dr
(ii) To Cash / Bank a/c 450
(being wages incurred for installation of plant) 450

Sol 19:
Opening Entry

Date Particulars LF Debit Amt Credit Amt

(i) Furniture a/c dr 5,000

Machinery a/c dr 10,000
Inventory a/c dr 5,000
Cash at Bank a/c dr 8,250
Cash in hand a/c dr 2,200
Ram & co a/c dr 6,100
To Bills payable a/c 3,000
To Sudhir a/c 4,400
To Capital a/c ( balancing fig) 29,150
(being opening balance Assets and Liabilities)

Sol 20:
Trial Balance as on 31-3-2013

Particulars Debit Amt Credit Amt

Capital 1,68,000
Stock 2,10,000
Drawings 50,000
Purchases 3,60,000
Sales 7,20,000
Discount allowed
Salaries 7,000
Sales returns 75,000
Purchase returns 30,000 20,000
Debtors
Creditors 45,000 67,000
Wages
Cash 12,000
Bank overdraft 2,61,000 75,000

Total 10,50,000 10,50,000

ESSAY QUESTIONS:

Sol 1:
Journal Entries in the books of Hari & Bros

Date Particulars LF Debit Amt Credit

Amt

July 1 Cash a/c dr 2,00,000

To Capital a/c2,00,00 2,00,000
Bank a/c dr 60,000
To Cash a/c 60,000
( Being capital introduced into business and amount
deposited into bank a/c)
 2 Machinery a/c dr 40,000
To A a/c 40,000
( being Machinery purchased on credit)

5 Furniture a/c dr 10,000

To Cash a/c 10,000
( being Furniture purchased for cash)

10 Y a/c dr 9,000
To Sales a/c 9,000
( being goods sold to Y )

11 Sales returns a/c dr 500

To Y a/c 500
( being goods returned by Y)

12 Cash a/c dr 10,000

To Sales a/c 10,000
( being goods sold for cash)

Cash a/c dr
18 To Y a/c 4,000
( being cash received from Y) 4,000

Advertisement expenses a/c dr

28 To cash a/c 5,000
(being advertisement expenses incurred) 5,000

Stationery a/c dr
30 To cash a/c 2,000
( being stationery purchased) 2,000

Rent a/c dr
31 To Cash a/c 2,000
( being expenses incurred) 2,000

Sol 2:
Journal Entries in the books of Akhilesh

013 Cash a/c dr 2,00,000

April To Capital a/c 2,00,000
1 ( being capital brought into business)

1,75,000
3 Bank a/c dr 1,75,000
To Cash a/c
( being amount deposited into bank)

25,000
4 Purchases a/c dr 25,000
To cash a/c
( being goods purchased for cash)
10,000
7 Cash a/c dr 10,000
To Bank a/c
( being amount withdrawn from bank for office use)

42,000
8 Purchases a/c dr 42,000
To Kiran a/c
( being goods purchased on credit)
20,800
200
15 Cash a/c dr 21,000
Discount a/c dr
To Krishna a/c
(being cash received discount allowed)
42,000
41,700
19 Kiran a/c dr 300
To Cash a/c
To Discount a/c
(being payment made discount received)
20,000
25 Purchases a/c dr 20,000
To Cash a/c
 (being goods purchased for cash)
15,000
15,000
28 Rent a/c dr
To Cash a/c
(being rent paid) 28,000
28,000
30 Salaries a/c dr
To Bank a/c
(being salaries paid by cheque)

Sol 3:
Journal Entries in the books of Rohit
Date Particulars LF Debit Credit Amt
Amt

Jan Cash a/c dr 1,00,000

1 To Capital a/c 1,00,000
( being capital introduced into business)

2 Bank a/c dr 50,000

To Cash a/c 50,000
(being amount deposited into bank)
3
Machinery a/c dr 20,000
To Bank a/c 20,000
( being Machinery purchased and payment made by
cheque)

4 Cash a/c dr 1,000

To Commission a/c 1,000
( being commission received)

5 Salary a/c dr 5,000

To Cash a/c 5,000
( being salary paid)

6 Rent a/c dr 3,000

To Cash a/c 3,000
( being rent paid)

7 Debtor a/c dr 25,000

To Sales a/c 25,000
( being goods sold on credit)

8 Purchases a/c dr 15,000

To Nithin a/c 15,000
( being goods purchases on credit)

9 Nithin a/c dr 1500

To Purchase returns a/c 1500
( being goods returned to Nithin)

10 Sales returns a/c dr 500

To Debtors a/c 500
( being goods returned by debtor)

Sol 4:
Journal Entries in the books of Ravi

Date Particulars L Debit Credit Amt

F Amt

April Cash a/c dr 50,000

2013 To Capital a/c 50,000
1 ( being Capital brought into Business)

SBI Bank a/c dr 28,000

2 To Cash a/c 28,000
( being amount deposited into bank)

3 Purchases a/c dr 2,500

To Cash a/c 2,500
( being goods purchased for cash)
4
Cash a/c dr 1,000
To Bank a/c 1,000
( being cash withdrawn for office use)
5
Krishna a/c dr 2,000
 To Sales a/c 2,000
( being goods sold on credit)
10
Purchases a/c dr 4,200
To Shyam a/c 4,200
( being goods purchased on credit)
15

Cash a/c dr 1900

Discount a/c dr 100
To Krishna a/c 2000
30 ( being amount received and discount allowed)

Cash a/c dr
To Sales a/c 10,000
30 ( being goods sold for cash) 10,000

Rent a/c dr
30 To Cash a/c 5,000
( rent paid) 5,000

Salaries a/c dr
To Cash a/c 5,000
( being salaries paid) 5,000

Sol 5:
Journal Entries

9 Cash a/c dr 10,000

April 1 To Capital a/c 10,000
(being cash brought into business)

April 3 Bank a/c dr 6,000

To Cash a/c 6,000
(being amount deposited into bank)

April 5 Purchase a/c dr

To Mahavir a/c
(being goods purchased on credit) 1,500
1,500

April 9 Gupta a/c dr

To Sales a/c
(being goods sold on credit) 650
650
April Mahavir a/c
12 To cash a/c
To Discount a/c 1,000
(being cash paid and discount received) 990
Cash a/c dr 10
Discount a/c dr
April To Gupta a/c
15 (being cash received and discount allowed)
625
Furniture a/c dr 25
To Cash a/c 650
April (being furniture purchased)
20
Drawings a/c dr
To Bank a/c 300
April (being amount withdrawn for personal use) 300
22
Rent a/c dr
To Bank a/c 600
(being rent paid by cheque) 600
April
30
Salary a/c dr
To Cash a/c 200
April (being salary paid) 200
30

300
300

Sol 6:
Journal Entries
 Date Particulars L Debit Amt Credit
F Amt

Dec 1 Cash a/c dr 50,000

To Capital a/c 50,000
(being cash brought into business)

Dec 4 Bank a/c dr 6,000

To Cash a/c 6,000
(being cash deposited into bank)

Dec 6 Purchase a/c dr 6,500

To Cash a/c 6,500
(being cash purchase made)

Dec 10 Cash a/c dr 8,500

To Sales a/c 8,500
(being cash sales made)
Dec
15 Furniture a/c 3,500
To Bank a/c 3,500
(being furniture purchased and payment made by
cheque)
Dec 20 Cash a/c dr
To Harish loan a/c 2,500
(being loan taken from Harish) 2,500
Dec 22
Cash a/c dr
To Commission a/c 175
Dec 24 (being commission received) 175

Purchases a/c dr
To Cash a/c 3,000
To Discount a/c 2,940
(being goods purchased list price ₹ 3,000 less 60
Dec 25 trade discount ₹60 = 2,940)

Cash a/c dr
Dec To Bank a/c
27 (being cash withdrawn from bank for office use) 5,000
5,000
Advertising a/c dr
To Purchases a/c
(being free samples distributed credited to
Dec purchases a/c) 1,500
30 Charity a/c dr 1,500
To Cash a/c
(being charity expenses paid)
Dec 31
Salary a/c dr 3,500
To Cash a/c 3,500
(being salary paid)

1,800
1,800

Sol 7:
Journal Entries

Date Particulars LF Debit Amt Credit

Amt

1 Purchases a/c dr 40,000

To Cash a/c 36,000
To Discount a/c 4,000
(being goods purchased list price ₹ 40,000 less
trade discount ₹4,000 = 36,000)

Purchases a/c dr
2 To Cash a/c 7,2000
To Discount a/c 68,400
(being goods purchased list price ₹80,000 less 3,600
trade discount ₹8,000 = ₹72,000 less 5% cash
discount on 72,000)

Cash a/c dr
 Discount a/c dr
3 To Sales a/c 42,750
(being goods sold trade discount and cash 2,250
discount received) 45,000

Purchases a/c dr
GST a/c dr
4 To Cash a/c 9,500
(being goods purchased for cash and paid GST) 500
10,000
Loss of goods a/c dr
To Purchases a/c
Insurance company a/c dr
5 P&L a/c dr 8,000
To Loss of goods a/c 8,000
(being loss of goods & Insurance company 6,000
admitted claim partly brought into account) 2,000
8,000

Sol 8:
Journal Entries

Date Particulars L Debit Amt Credit Amt

F

2023 Bank a/c dr 50,000

April To Cash a/c 50,000
1 (being amount deposited into bank)

Purchases a/c dr
April To Bank a/c 10,000
7 (being goods purchased and payment made by cheque) 10,000

Raghav a/c dr
To Ravi a/c
April (being amount directly paid to Raghav by Ravi) 40,000
9 40,000
Drawings a/c dr
To Bank a/c
(being amount withdrawn for personal use)
April 5,000
15 Bank a/c dr 5,000
Discount a/c dr
To Sales a/c
(being goods sold to Ankit received and deposited into
April bank) 2,700
21 3,000
Ankit a/c dr 30,000
To Bank a/c
To Discount a/c
(being cheque received from Ankit dishonored)
April 30,000
26 Interest a/c dr 2,700
To Bank a/c 3,000
(being interest charged by bank)

April 500
29 500

Sol 9:
Journal Entries

Date Particulars LF Debit Amt Credit Amt

2003 Purchases a/c dr 40,000

April 1 Carriage a/c dr 2,000
To Cash a/c 42,000
(being goods purchased for cash)
April
11 Bad debts a/c dr 20,000
To Amar a/c 20,000
(being a debtor become insolvent)
April
16 Machinery a/c dr 5,25,000
To Cash a/c 5,25,000
(being machinery purchased for ₹5,00,000 and
paid installation charges ₹25,000)
 April Machinery a/c dr
19 To Cash a/c 5,000
(being carriage paid on machinery) 5,000

Building a/c dr
April To Bank a/c
24 (being bricks and timber purchased for the 10,00,000
construction of building) 10,00,000

Cash a/c dr
To Bad debts recovered a/c
April 29 (being bad debts recovered)
20,000 x 0.30 paise) 6,000
6,000

Sol 10:
Journal Entries in the Books of Rajeev

Date Particulars LF Debit Amt Credit Amt

2017 25,000
Jan 1 Cash a/c dr 10,000
Furniture a/c dr 45,000
Machinery a/c dr 80,000
To Capital a/c
(being opening balance of asset, capital taken as balancing
figure)

Jan 3 Purchases a/c dr 25,000

To Cash a/c 10,000
To Satyanarayana a/c 15,000
(being purchases made for cash and on credit)

Jan 5 9,000
Dilip a/c dr 18,000
Cash a/c dr 27,000
To Sales a/c
(being amount deposited into bank)

Jan 7 10,000
Bank a/c dr 10,000
To CAsh a/c
(being amount deposited into bank)

Jan 15,000
18 500
Satyanarayana a/c 14,500
To Discount a/c
To Cash a/c
(being cash paid and discount allowed)
8,750
Jan 250
20 9,000
Cash a/c dr
Discount a/c dr
To Dilip a/c
(being cash received and discount allowed) 600
600
Jan
25
Cash a/c dr 1,200
To Interest a/c 1,200
(being interest received)
Jan
28 Rent a/c dr 2,000
To Bank a/c 2,000
(being rent paid by cheque)

Jan Salaries a/c dr

31 To Cash a/c
(being salaries paid)

Ledger
Cash A/C
dr
cr
Date Particulars JF Amount Date Particulars JF Amount
 2017 To Capital a/c 25,000 2017 Jan By Purchases a/c 10,000
Jan 1 3
Jan 5 To Sales a/c 18,000 Jan 7
Jan 20 To Dilip a/c 8,750 Jan 18 By Bank a/c 10,000
Jan 25 Jan 30
To Interest a/c 600 Jan 31 By Satyanarayana a/c 14,500
By Salaries a/c
2,000
By Balance c/d
15,850

Feb 1 52,350 52,350

To balance b/d 15,850

Furniture A/C
dr cr
Date Particulars JF Amount Date Particular JF Amount

2017 To Capital a/c 10,000 2017

Jan 1 Jan 31
By Balance c/d 10,000

10,000 10,000

Feb 1
To Balance b/d 10,000

Machinery A/C
dr
cr
Date Particulars JF Amount Date Particulars JF Amount

2017 To Capital a/c 45,000 2017

Jan 1 Jan 31
By Balance c/d 45,000

45,000 45,000
Feb 1

To Balance b/d 45,000

Purchases A/C
dr

cr
Date Particulars JF Amount Date Particulars JF Amount

2017 To Cash a/c 10,000 2017

Jan 3 To Satyanarayana a/c 15,000 Jan 31
By Balance c/d 25,000

25,000 25,000

Feb 1 To Balance b/d

25,000

Satyanarayana A/C
dr cr
Date Particulars JF Amount Date Particulars JF Amount

2017 To Cash a/c 14,500 2017 By Purchases a/c 15,000

Jan To Discount /ac 500 Jan 3
18
15,000 15.000

Dilip A/C
dr
cr
Date Particula JF Amount Date Particulars JF Amount
 rs

2017 To Sales 9,000 Jan 20 By Cash a/c 8,750

Jan 5 a/c Jan 31 By Discount a/c 250

9,000 9,000

Sales A/C
dr
cr
Date Particulars J Amount Date Particulars J Amount
F F

2017 By Dilip a/c 9,000

Jan 5 By Cash a/c 18,000
2017
Jan 31 To Balance c/d 27,000

27,000 27,000

Feb 1 By Balance b/d 27,000

Bank A/C
dr
cr
Date Particulars JF Amount Date Particulars J Amount
F

2017 Jan To Cash a/c 10,000 2017 Jan

7 28 By Rent a/c 1,200
Jan 31 By Balance c/d 8,800

10,000 10,000

Feb 1 To Balance b/d 8,800

Discount Allowed A/C

dr
cr
Date Particulars J Amou Date Particulars JF Amount
F nt

2017 Jan To Dilip a/c 250

20
2017
31 By Balance c/d 250

250 250

Feb 1 To Balance b/d 250

Discount Received A/C

dr
cr
Date Particulars JF Amount Date Particulars JF Amount

2017 2017 By Satyanarayana 500

Jan a/c
18
Jan 31 To Balance c/d 500
500
500

Feb 1 500
By Balance b/d

Interest A/C
dr
cr
Date Particulars JF Amount Date Particulars J Amount
F
 2017 Jan By Cash a/c 600
25
2017 Jan
31 To Balance c/d 600

600 600

Rent A/C
dr
cr
Date Particulars JF Amount Date Particulars JF Amount

2017 To Bank a/c 1,200

Jan 28
By Balance c/d 1,200

1,200 1,200
1,200
Feb 1 To Balance b/d

Salaries A/C
dr
cr
Date Particulars JF Amount Date Particulars JF Amount

2017 To Cash a/c 2,000

Jan 31
2017
Jan 31 By Balance b/d 2,000

2,000 2,000

Feb 1 To Balance b/d 2,000

Capital A/C
dr
cr
Date Particulars JF Amou Date Particulars J Amount
nt F

By Cash a/c 25,000

By Furniture a/c 10,000
By Machinery a/c 45,000
2017
Jan 31 TO Balance c/d 80,000

80,000 80,000

Feb By Balance b/d 80,000

1

Trial Balance as on 31.1.2017

Particulars Debit Amount Credit Amount

Capital 80,000
Cash 15,850
Furniture 10,000
Machinery 45,000
Purchases 25,000
Sales 27,000
Bank 8,800
Discount allowed 250
Discount received 500
Interest 1,200 600
Rent 2,000
Salaries

Total 1,08,100 1,08,100

Sol 11:
Journal Entries
 Date Particulars LF Debit Amt Credit
Amt

2021 Cash a/c dr 50,000

Jan 1 To Capital a/c 50,000
(being cash brought into business)
Furniture a/c dr
Jan 2 To Cash a/c 21,000
To Godrej co a/c 6,000
(being furniture purchased on cash and on credit) 15,000

Purchases a/c dr
To Raman stores a/c
Jan 4 (being goods purchased on credit) 8,000
8,000
Raman stores a/c dr
To Purchase returns a/c
Jan 8 (being goods returned to raman stores) 500
500
Raman stores a/c dr
Discount a/c dr
To Cash a/c
Jan 10 (being cash paid @discount 2%) 7,840
160
Naman Ltd a/c dr 8,000
Cash a/c dr
Jan 15 To Sales a/c
(being sales made for cash and credit) 2,500
5,000
Drawing a/c dr 7,500
To Purchases a/c
Jan 17 (being goods purchased for personal use)

Cash a/c dr 1,950

To Sales a/c 1,950
Jan 24 (being goods sold for cash )

Sohan Bros a/c dr

Jan 25 To Sales a/c 7,000
(being goods sold on credit with trade discount @10%) 7,000

Salaries a/c dr
Jan 30 To Bank a/c 6,750
(being salaries paid by cheque) 6,750

Jan 30 General Expenses a/c dr

Wages a/c dr
To Cash a/c 1,200
(being expenses paid in cash) 1,200

800
180
980

Sol 12:
Trial Balance
Particulars Debit Amt Credit Amt

Capital 16,800
Drawings 5,000
Opening Stock 36,000
Purchases 21,000
Sales 72,000
Discount allowed 700
Purchase returns 2,000
Sales returns 3,000
Debtors 4,500
Creditors 6,700
Wages 1,200
Cash 26,100

Total 97,500 97,500

Sol 13:
Trial Balance
Particulars Debit Amt Credit Amt

Capital 2,00,000
 Cash 1,80,000
Creditors 1,00,000
Sales 3,00,000
Stock 70,000
Debtors 3,00,000
Bank loan 1,50,000
Purchases 2,00,000

Total 7,50,000 7,50,000

Sol 14:
Correct Trial Balance
Particulars Debit Amt Credit Amt

Purchases 60,000
Reserve Fund 20,000
Sales 1,00,000
Purchase returns 1,000
Sales returns 2,000
Opening Stock 30,000
Expenses 20,000
O/S Expenses 2,000
Bank Balance 5,000
Asset 50,000
Debtors 80,000
Creditors 30,000
Capital 94,000

Total 2,47,000 2,47,000

Sol 15:
Correct Trial Balance
Particulars Debit Amt Credit Amt

Stock on 1-4-2016 2,50,000

Purchases 6,50,000
Sales 10,00,000
Motor vans 3,80,000
Debtors & Creditors 1,50,000 94,000
Premises 3,00,000
Shop fittings 20,000
Interest on Overdraft 16,000
Purchase returns 10,000
Sales returns 20,000
Lighting & heating 18,000
Capital 5,00,000
Discount received 2,000
Repairs 2,500
Electricity 6,500
Bank overdraft 2,00,000
Rent from subletting 15,000
Bills receivable 8,000

Total 18,21,000 18,21,000

Sol 5:
Journal Entries

Date Particulars LF Debit Amt Credit Amt

 2009 Cash a/c dr 10,000
April 1 To Capital a/c 10,000
(being cash brought into business)

April 3 Bank a/c dr 6,000

To Cash a/c 6,000
(being amount deposited into bank)

April 5 Purchase a/c dr

To Mahavir a/c
(being goods purchased on credit) 1,500
1,500
April 9
Gupta a/c dr
To Sales a/c
April (being goods sold on credit) 650
12 650
Mahavir a/c
To cash a/c
To Discount a/c 1,000
(being cash paid and discount received) 990
April Cash a/c dr 10
15 Discount a/c dr
To Gupta a/c
(being cash received and discount allowed)
625
Furniture a/c dr 25
April To Cash a/c 650
20 (being furniture purchased)

Drawings a/c dr
April To Bank a/c 300
22 (being amount withdrawn for personal use) 300

Rent a/c dr
To Bank a/c 600
April (being rent paid by cheque) 600
30
Salary a/c dr
To Cash a/c
April (being salary paid) 200
30 200

300
300

Sol 6:
Journal Entries

Date Particulars LF Debit Amt Credit Amt

Dec 1 Cash a/c dr 50,000

To Capital a/c 50,000
(being cash brought into business)

Dec 4 Bank a/c dr 6,000

To Cash a/c 6,000
(being cash deposited into bank)

Dec 6 Purchase a/c dr 6,500

To Cash a/c 6,500
(being cash purchase made)

Dec 10 Cash a/c dr 8,500

To Sales a/c 8,500
(being cash sales made)
Dec
15 Furniture a/c 3,500
To Bank a/c 3,500
(being furniture purchased and payment made by cheque)
Cash a/c dr
Dec 20 To Harish loan a/c
(being loan taken from Harish) 2,500
2,500
Dec 22 Cash a/c dr
To Commission a/c
(being commission received) 175
 Dec 24 175
Purchases a/c dr
To Cash a/c
To Discount a/c 3,000
(being goods purchased list price ₹ 3,000 less trade discount ₹60 = 2,940
2,940) 60
Dec 25
Cash a/c dr
To Bank a/c
Dec (being cash withdrawn from bank for office use)
27 5,000
Advertising a/c dr 5,000
To Purchases a/c
(being free samples distributed credited to purchases a/c)
Charity a/c dr
Dec To Cash a/c 1,500
30 (being charity expenses paid) 1,500

Salary a/c dr
Dec 31 To Cash a/c
(being salary paid) 3,500
3,500

1,800
1,800

Sol 7:
Journal Entries

Date Particulars LF Debit Amt Credit Amt

1 Purchases a/c dr 40,000

To Cash a/c 36,000
To Discount a/c 4,000
(being goods purchased list price ₹ 40,000 less trade discount ₹4,000 =
36,000)

Purchases a/c dr
2 To Cash a/c 7,2000
To Discount a/c 68,400
(being goods purchased list price ₹80,000 less trade discount ₹8,000 = 3,600
₹72,000 less 5% cash discount on 72,000)

Cash a/c dr
Discount a/c dr
To Sales a/c
3 (being goods sold trade discount and cash discount received) 42,750
2,250
Purchases a/c dr 45,000
GST a/c dr
To Cash a/c
(being goods purchased for cash and paid GST)
4 9,500
Loss of goods a/c dr 500
To Purchases a/c 10,000
Insurance company a/c dr
P&L a/c dr
To Loss of goods a/c
5 (being loss of goods & Insurance company admitted claim partly 8,000
brought into account) 8,000
6,000
2,000
8,000

Sol 8:
Journal Entries

Date Particulars LF Debit Amt Credit Amt

2023 April Bank a/c dr 50,000

1 To Cash a/c 50,000
(being amount deposited into bank)

April Purchases a/c dr

7 To Bank a/c 10,000
 (being goods purchased and payment made by cheque) 10,000

Raghav a/c dr
April 9 To Ravi a/c
(being amount directly paid to Raghav by Ravi) 40,000
40,000
Drawings a/c dr
April To Bank a/c
15 (being amount withdrawn for personal use)
5,000
5,000

April Bank a/c dr

21 Discount a/c dr
To Sales a/c 2,700
(being goods sold to Ankit received and deposited into bank) 3,000
30,000

April Ankit a/c dr

26 To Bank a/c
To Discount a/c 30,000
(being cheque received from Ankit dishonored) 2,700
3,000

Interest
April a/c dr
29 To Bank a/c
(being interest charged by bank) 500
500

Sol 9:
Journal Entries

Date Particulars LF Debit Amt Credit Amt

2003 April 1 Purchases a/c dr 40,000

Carriage a/c dr 2,000
To Cash a/c 42,000
April (being goods purchased for cash)
11
Bad debts a/c dr 20,000
To Amar a/c 20,000
April (being a debtor become insolvent)
16
Machinery a/c dr 5,25,000
To Cash a/c 5,25,000
(being machinery purchased for ₹5,00,000 and paid installation
charges ₹25,000)
April
19 Machinery a/c dr
To Cash a/c 5,000
(being carriage paid on machinery) 5,000

April Building a/c dr

24 To Bank a/c
(being bricks and timber purchased for the construction of building) 10,00,000
10,00,000
Cash a/c dr
To Bad debts recovered a/c
April 29 (being bad debts recovered)
20,000 x 0.30 paise
6,000
6,000

Sol 10:
Journal Entries in the Books of Rajeev

Date Particulars LF Debit Credit Amt

Amt

2017 Jan 1 Cash a/c dr 25,000

Furniture a/c dr 10,000
Machinery a/c dr 45,000
 To Capital a/c 80,000
(being opening balance of asset, capital taken as balancing
figure)

Jan 3 Purchases a/c dr

To Cash a/c 25,000
To Satyanarayana a/c 10,000
(being purchases made for cash and on credit) 15,000

Jan 5 Dilip a/c dr

Cash a/c dr 9,000
To Sales a/c 18,000
(being amount deposited into bank) 27,000

Jan 7 Bank a/c dr

To CAsh a/c 10,000
(being amount deposited into bank) 10,000

Jan 18 Satyanarayana a/c

To Discount a/c 15,000
To Cash a/c 500
(being cash paid and discount allowed) 14,500

Jan 20 Cash a/c dr

Discount a/c dr 8,750
To Dilip a/c 250
(being cash received and discount allowed) 9,000

Jan 25 Cash a/c dr

To Interest a/c 600
(being interest received) 600

Jan 28
Rent a/c dr 1,200
To Bank a/c 1,200
(being rent paid by cheque)

Jan 31 Salaries a/c dr 2,000

To Cash a/c 2,000
(being salaries paid)

Ledger Cash A/C

Date Particulars J Amount Date Particulars JF Amount
F

2017 To Capital a/c 25,000 2017 Jan By Purchases a/c 10,000

Jan 1 3
Jan 5 To Sales a/c 18,000 Jan 7
Jan 20 To Dilip a/c 8,750 Jan 18 By Bank a/c 10,000
Jan 25 Jan 30
To Interest a/c 600 Jan 31 By Satyanarayana a/c 14,500
By Salaries a/c
2,000
By Balance c/d
15,850

Feb 1 52,350 52,350

To balance b/d 15,850

Furniture A/C
Date Particulars JF Amount Date Particular JF Amount

2017 To Capital a/c 10,000 2017 Jan

Jan 1 31
By Balance c/d 10,000

10,000 10,000

Feb 1
To Balance b/d 10,000
 Machinery A/C
Date Particulars JF Amount Date Particulars JF Amount

2017 To Capital a/c 45,000 2017 Jan

Jan 1 31
By Balance c/d 45,000

45,000 45,000
Feb 1

To Balance b/d 45,000

Purchases A/C
Date Particulars JF Amount Date Particulars JF Amount

2017 Jan 3 To Cash a/c 10,000 2017 Jan

To Satyanarayana a/c 15,000 31
By Balance c/d 25,000

25,000 25,000
Feb 1
To Balance b/d
25,000

Satyanarayana A/C
Date Particulars JF Amount Date Particulars JF Amount

2017 Jan To Cash a/c 14,500 2017 Jan 3 By Purchases a/c 15,000
18 To Discount /ac 500

15,000 15.000

Dilip A/C
Date Particulars JF Amount Date Particulars JF Amount

2017 To Sales a/c 9,000 Jan 20 By Cash a/c 8,750

Jan 5 Jan 31 By Discount a/c 250

9,000 9,000

Sales A/C
Date Particulars JF Amount Date Particulars JF Amount

2017 Jan 5 By Dilip a/c 9,000

By Cash a/c 18,000
2017
Jan 31 To Balance c/d 27,000

27,000 27,000
Feb 1
By Balance b/d 27,000

Bank A/C
Date Particulars JF Amount Date Particulars JF Amount

2017 Jan 7 To Cash a/c 10,000 2017 Jan 28

Jan 31 By Rent a/c 1,200
By Balance c/d 8,800

10,000 10,000
Feb 1
To Balance b/d 8,800

Discount A/C
Date Particulars JF Amount Date Particulars JF Amount
 2017 Jan 20 To Dilip a/c 250 2017 Jan By Satyanarayana a/c 500
18
Jan 31
To Balance c/d 250

500 500

Interest A/C
Date Particulars JF Amount Date Particulars JF Amount

2017 Jan 25 By Cash a/c 600

2017 Jan 31
To Balance c/d 600

600 600

Rent A/C
Date Particulars JF Amount Date Particulars JF Amount

2017 To Bank a/c 1,200

Jan 28
By Balance c/d 1,200

1,200 1,200
1,200
Feb 1 To Balance b/d

Salaries A/C
Date Particulars JF Amount Date Particulars JF Amount

2017 Jan 31 To Cash a/c 2,000

2017 Jan 31
By Balance b/d 2,000

2,000 2,000

Feb 1
To Balance b/d 2,000

Capital A/C
Date Particulars JF Amount Date Particulars JF Amount

By Cash a/c 25,000

By Furniture a/c 10,000
By Machinery a/c 45,000
2017 Jan 31
TO Balance c/d 80,000

80,000 80,000

Feb 1 By Balance b/d 80,000

Trial Balance as on 31.1.2017

Particulars Debit Amount Credit Amount
 Capital 80,000
Cash 15,850
Furniture 10,000
Machinery 45,000
Purchases 25,000
Sales 27,000
Bank 8,800
Discount 250
Interest 600
Rent 1,200
Salaries 2,000

Total 1,07,850 1,07,850

Sol 11:
Journal Entries
Date Particulars LF Debit Amt Credit Amt

2021 Jan 1 Cash a/c dr 50,000

To Capital a/c 50,000
(being cash brought into business)
Jan 2 Furniture a/c dr
To Cash a/c 21,000
To Godrej co a/c 6,000
(being furniture purchased on cash and on credit) 15,000

Purchases a/c dr
Jan 4 To Raman stores a/c
(being goods purchased on credit) 8,000
8,000
Raman stores a/c dr
Jan 8 To Purchase returns a/c
(being goods returned to raman stores) 500
500
Raman stores a/c dr
Discount a/c dr
Jan 10 To Cash a/c
(being cash paid @discount 2%) 7,840
160
Naman Ltd a/c dr 8,000
Jan 15 Cash a/c dr
To Sales a/c
(being sales made for cash and credit) 2,500
5,000
Drawing a/c dr 7,500
Jan 17 To Purchases a/c
(being goods purchased for personal use)

Cash a/c dr 1,950

Jan 24 To Sales a/c 1,950
(being goods sold for cash )

Jan 25 Sohan Bros a/c dr

To Sales a/c 7,000
(being goods sold on credit with trade discount @10%) 7,000

Jan 30 Salaries a/c dr

To Bank a/c 6,750
(being salaries paid by cheque) 6,750
Jan 30
General Expenses a/c dr
Wages a/c dr
To Cash a/c 1,200
(being expenses paid in cash) 1,200

800
180
980

Sol 12:
Trial Balance
Particulars Debit Amt Credit Amt

Capital 16,800
Drawings 5,000
Opening Stock 36,000
Purchases 21,000
 Sales 72,000
Discount allowed 700
Purchase returns 2,000
Sales returns 3,000
Debtors 4,500
Creditors 6,700
Wages 1,200
Cash 26,100

Total 97,500 97,500

Sol 13:
Trial Balance
Particulars Debit Amt Credit Amt

Capital 2,00,000
Cash 1,80,000
Creditors 1,00,000
Sales 3,00,000
Stock 70,000
Debtors 3,00,000
Bank loan 1,50,000
Purchases 2,00,000

Total 7,50,000 7,50,000

Sol 14:
Correct Trial Balance
Particulars Debit Amt Credit Amt

Purchases 60,000
Reserve Fund 20,000
Sales 1,00,000
Purchase returns 1,000
Sales returns 2,000
Opening Stock 30,000
Expenses 20,000
O/S Expenses 2,000
Bank Balance 5,000
Asset 50,000
Debtors 80,000
Creditors 30,000
Capital 94,000

Total 2,47,000 2,47,000

UNIT-II: SUBSIDIARY BOOKS

Short Answers:-

Sol 2:
Purchases Book
Date Invoice No. Voucher No. Particulars LF Details Amount
(₹) (₹)

June 1 Gupta
100T-Shirts @80 each
8,000
Vijay
June 3 10 Bush Shirts @90 each

Total 900

8,900

Sol 3:
Purchases Book
Date Invoice No. Voucher No. Particulars LF Details Amount
(₹) (₹)

Jan 5 Dyanora Ltd 20,000

5 sets @4000each
Less: Trade discount 15% 3,000 17,000

Jan 9 Bajaj &- co

Electric Irons 20@ 60 1,200
Table lamps 6@ 35 210 1,410

Total 18,410

Sol 4:
Sales Book
Date Invoice No. Particulars LF Details Total
(₹) (₹)

2013 Goyal &- co

April 4 20 polyester sarees @75 each
1,500
April 9 Mittal &-Co
5 Art silk sarees @195 each

Total 975

2,475

Sales A/C
Date Particulars JF ₹ Date Particulars JF ₹

April By sundries 2,475

9 (as per sales book)
Sol 5:
Sales Book
Date Invoice No. Particulars L.F Details Total
(₹) (₹)

2014 Manoj 5,400

Feb 1
Feb 3 Harry 5,800

Feb 19 Lucky 4,200

(-)Trade discount 2% 84 4,116

Feb 21 Hari 2,150

Feb 27 Nandan 2,200

Total 19,666

Sales Returns Book

Date Particulars L.F Details Total
(₹) (₹)

Feb 15 Harry 300

Feb 25 Lucky 100

Feb 25 Sales returns a/c 400

Sol 6:
Sales Book
Date Invoice No. Particulars L.F Details Total
(₹) (₹)

2013
Oct 2 Aditya &-Co 18,000
Oct 3 Kamal &-Co 6,000
Oct 8 Manu &-Co 5,900
Oct 12 Aditya &-Co 4,300
Oct 22 Lal &-Bros 3,800
Oct 30 KK &-Co 6,700

Total 44,700

Sales A/C
Date Particulars J.F ₹ Date Particulars J.F ₹

2013 By Sundries 44,700

Oct 30

Sol 7:
Sales Book
Date Invoice No. Particulars L.F Details Total
(₹) (₹)

2013 Sharma
July 4 12 Tables @80 960
50 Chairs @40 2,000

2,960
Less: Trade Discount 10% 296 2,664
July 16
Mahesh Enterprises
8 Almirahs @1,500 12,000
10 Chairs @40 400
3 Dining Tables @800 2,400

14,800
Less: Trade Discount 10% 1,480 13,320

15,984
Total

1. Single Cashbook

DATE Receipt LF DATE Amt Payment LF Amt

2013 To balance b/d 100000 2013 By Furniture 12000

Jan-1 JAN 2

“ 5 To Sales A/c 5000 “ 6 By Kareem 2975

“ 7 To Abdullah 5000 “31 By balance c/d 95025

110000 110000

2. Analytical petty cash book

Cash Date Particulars Vou Total Analytical payments
received cher payme
no nts
(Rs)
Electricity Teleph postage Stationery &
charges one Printing
charge
s

500 AUG 1 To bank

2013
AUG 2 To electricity 3.25 3.25
charges
AUG 4 To telephone 2.50 2.50
charges
AUG 8 To printing 3.75 3.75
AUG To stationary 6 6
15
AUG To post cards 3 3
20
18.50 2.50 3 9.75
AUG By bal c/d
31 81.50
52
100 100
81.50 SEP 1 To bal b/d
18.50 SEP 1 To cash
DATE Receipt LF DATE Amt Payment LF Amt

Jan-1 To Balance b/d 7000 Jan-10 By Purchases 2500

“ 15 To Sales 4700 “ 17 By salary 1000

11700 “ 17 By Drawings 500

“ 31 By Balance c/d 7700

11700 11700

Feb -1 To Balance b/d 7700

3.Single Column Cash Book

4.
Three column
DATE Particulars LF CASH BAN DIS DATE Particulars L CASH BAN DIS Cash Book
AMT K AM F AMT K AMT
AMT T AMT
2016 To balance 50000 2000 2016
June-1 b/d June-6 By Bank 1000
“ 5 To sales 2000 “ 7 By Anil 800
“ 6 To Cash C 1000 “ 30 By Balance 6000 2200
c/d
7000 3000 7000 3000
6000 2200
July-1 To Balance
b/d

5. Analytical cash book

Cash Date Particulars Voucher Total Analytical payments
received no payments

(Rs)
Electricity Telephon postage Stationery &
charges e charges Printing

500 MAR 1 To cash

2013
To travelling 52 52
exp
To carriage 25 25
To postage 78 78
To stationary 87 87

242 52 25 78 87
MAR 1 By bal c/d
2013 258
500

500
258 APR 1 To bal b/d
242 APR 1 To cash

6) 1) Wrong .It records only credit purchases of goods.

2) Right. Trade Discount is not recorded in the books of account.
3) Wrong. It records only credit Sales .
4) Right. A cash book is Kept for recording cash transactions.

Essay Answers
1. Single column cash book
 DATE Particulars L AMT DATE Particulars LF AMT
F
2015 To Balance b/d 5100 2015 By bank a/c 10000
Dec- 1 Dec.7
“ 3 To Sales 5600 “ 10 By Postage A/c 200
“ 5 To Vinay 800 “ 12 by wages A/c 100
“ 15 To Interest on 200 “ 25 By Purchases 3000
Invst
“ 20 To Bank 2200 “ 29 By Drawings 900
“ 27 To Sales A/c 2400 “ 30 By Bank (bal/fig) 2200
“ 29 To Raj A/c 1100 “ 31 By balance c/d 1000
17400 17400
2016 To balance b/d 1000
Jan 1

2. Single column cash book

DATE Particulars L AMT DATE Particulars LF AMT

F
JAN 1 2013 To capital 25000 JAN 2 By bank 20000
2013
JAN 6 To sales 2000 JAN 4 By purchases 1200
JAN 9 To shashikanth 1125 JAN 7 By stationary 100
JAN 21 To ranjeeth 1500 JAN By gopal 525
13
JAN 30 To Sandeep 2200 JAN By furniture 625
15
JAN By advertisement 400
17
JAN By purchases 900
23
JAN By drawings 350
27
JAN By salary 450
29

JAN By rent 500

31
JAN By bal c/d 6775
31

31825 31825
FEB 1 To bal b/d 31825

Q.3 Single column cash book

DATE Reciept LF Amt DATE Payment LF Amt

JAN 1 To bal b/d 5000 JAN 5 By purchases 2000

2013 2013
JAN 12 To bank 3000 JAN 8 By wages 500

JAN 15 To sales 2500 JAN 20 By furniture 4000

JAN 25 By drawings 400

JAN 28 By intrest 100

JAN 31 By bank 500

JAN 31 By bal c/d 3000

10500 10500

FEB 1 To bal b/d 3000

Q.4 Two column cash book – Cash and discount column

Date Particulars L A Dis Date Particulars L A Dis

M cou M cou
F T nt F T nt
₹ ₹
 50000 30000
DEC 1 To capital DEC 2 By
purchases
2015 2015
DEC 5 To arun 2000 DEC 7 By sanjay 2900 100

DEC 7 To sanjay 2900 DEC By wages 3000

10
950 50 10000
DEC To rajesh DEC By bank
14 16
DEC To sales 5000 DEC By stationary 250
18 20
DEC To rajesh 1900 100 DEC By suresh 3900 100
20 23
2000
DEC By salaries
30
7800
DEC By bal c/d
31
59850 150 59850 200

JAN 1 To bal b/d 7800

2016
Q.5 Single column cash book

DATE Particulars LF CASH DIS DATE Particulars LF CASH DIS

AMT AMT AMT AMT
JUNE 1 To bal b/d 5200 JUNE 5 By sohan 1300
2013 2013
JUNE 3 To mohan 2200 JUNE 8 By ram gopal 290 10
JUNE To gupta 980 20 JUNE 9 By purchases 500
11
JUNE To sales 500 JUNE 10 By mukesh 300
15
JUNE To 250 JUNE 21 By Tiwari 725 25
28 Commission
JUNE To interest 200 JUNE 23 By wages 150
30
JUNE 29 By naresh 380 20
JUNE 30 By bal c/d 5685
9330 20 9330
JULY 1 To bal b/d 5685
Q.6 Three column cash book

DATE Particulars LF CASH BANK DIS DATE Particulars L CASH BANK DIS
AMT AMT AM F AMT AMT AMT
T
APR 1 To cal b/d 2500 10000 APR 2 By bank C 1000
2016 2016
APR 2 To cash C 1000 APR 5 By 2000
furniture
APR 12 To 980 20 APR 8 By 500
mohinder purchases
APR 14 To sales 4000 APR 16 By 1450 50
amaranth
APR 19 To cash C 400 APR 19 By bank C 400
APR 24 To patel 1430 20 APR 23 By 600
drawings
APR 26 To cash C 1430 APR 26 By bank C 1430
APR 28 To bank C 2000 APR 28 By cash C 2000
APR 30 By rent 800
APR 30 By bal c/d 7580 5980
10910 12830 40 10910 12830 50
MAY 1 7580 5980
Q.7 Three column cash book

DATE Particulars L CASH BANK DIS DATE Particulars L CASH BANK DIS
F AMT AMT AMT F AMT AMT AMT
APR 1 To bal b/d 400 APR 1 By bal b/d 5000
2016 2016
APR 4 To capital 10000 APR 4 By bank C 6000 65
APR 4 To cash C 6000 APR 11 By ramvilas 2500
 APR 5 To sales 8000 APR 13 By 530
commission
APR 6 To Sridhar 8000 200 APR 17 By drawings 700
APR 18 To atal 4000 APR 19 By bank C 4000
APR 19 To cash C 4000 APR 20 By cash C 500
APR 20 To bank C 500 APR 21 By petty cash 150
APR 30 To cash C 10000 APR 29 By salaries 1500
APR 30 By bank C 10000
APR 30 By bal c/d 7870 12150
30900 20000 200 30900 20000 65
MAY 1 To bal b/d 7870 12150
Q.8 Three column cash book

DATE Particulars L CASH BANK DIS DATE Particulars L CASH BANK DIS
F AMT AMT AMT F AMT AMT AMT
JAN 1 To bal b/d 5400 1475 JAN 2 By sekhar 850 150
2013 2013
JAN 5 To sale of 650 1250 JAN 3 By salaries 1150
interest
JAN 6 To vikram 775 175 JAN 10 By drawings 175
JAN 9 To naidu 1150 50 JAN 11 By bank 10
charges
JAN 14 To interest 140 JAN 28 By 2400
purchases
JAN 16 To sales 7000 JAN 20 By rent 400
JAN 18 To 360 JAN 31 By bal c/d 13390 2825
dividend
on shares
17340 3860 225 17340 3860 150
FEB 1 To bal b/d 13390 2825
Q.9 Three column cash book

DATE Receipt L DIS CASH BANK DATE Payment L DIS CASH BANK
F AMT AMT AMT F AMT AMT AMT
JAN 1 To bal b/d 5357 15490 JAN 5 By bank C 7000
2013 2013
JAN 3 To sales C 6400 JAN 8 By bank C 700
JAN 5 To cash 7000 JAN 10 By Anurag 20 980
JAN 6 To satyam 700 JAN 12 By 2500
purchases
JAN 8 To cash C 700 JAN 14 By cash C 5000
JAN 14 To bank C 5000 JAN 19 By C 4950
stationary
JAN 15 To 50 950 JAN 21 By 120
lakshman commissio
n

JAN 18 To sales 7500 JAN 23 By 500

drawings
JAN 19 To cash C 4950 JAN 29 By 800
lakshman
JAN 25 To mohan 1000 JAN 27 By salaries 950
JAN 31 By bank 500 1500
charges
JAN 31 Bt ins 20
premium
JAN 31 By bal c/d 520
JAN 31 9655 19370
50 25925 29140 20 25925 29140
FEB 1 To bal b/d 9655 19370

Q.10 Three column cash book

DATE Receipt L DIS CASH BANK DATE Payment L DIS CASH BANK
F AMT AMT AMT F AMT AMT AMT
APR 1 To bal b/d 460 APR 1 By bal b/d 2800
2013 2013
APR 2 To bank C 1600 APR 2 By cash C 1600
APR 7 To sales 400 APR 2 By wages 1000
APR 9 To ajith 1350 APR 7 By 300
purchase
APR 15 To old 215 APR 11 By 10 890
news ramvilas
paper
APR 20 To ajith 14100 APR 17 By 1150
bicycle
APR 21 To cash 1410 APR 17 By 200
municipal
taxes
APR 30 To bal c/d 5040 APR 18 By ajith 1350
(dishonou
red
cheque)
APR 18 By bank 10
charges
APR 21 By bank C 1410
APR 30 By bal c/d 1175
4085 7800 4085 7800
MAY 1 To bal b/d 1175 By bal b/d 5040
11. Three Column Cash Book

DATE Particulars L CAS BAN DIS DATE Particulars L CAS BAN DIS
F H K AM F H K AMT
AMT AMT T AMT AMT
APR 1 To bal b/d 300 APR 1 By bal b/d 450
2013 2013
APR 2 To sales 80 APR 1 By salaries 250
APR 4 To pawan 235 15 APR 2 By purchases 30
APR 5 To ali bros 190 10 APR 3 By Krishna & 260 10
co
APR 6 To cash C 200 APR 6 By bank C 200
APR 7 To int on 150 APR 6 By furniture 150
securities
APR To bal c/d 612 APR 7 By ali bros 190 1
30
APR 7 By bank 20
charges
APR 7 By rent 100
APR 7 By bal c/d 135
615 1152 25 615 1152 20
MAY To bal b/d 135 MAY By bal b/d 612
1 1
12. Three Column Cash Book

DATE Particular L CAS BAN DIS DATE Particulars L CASH BAN DIS
s F H K AM F AMT K AMT
AMT AMT T AMT
JAN 1 To bal 410 8920 JAN 3 By bank C 4000
2015 b/d 2015
JAN 2 To sale 4500 JAN 5 By stationary 100
JAN 3 To cash C 4000 JAN 8 By Mahesh 280 20
JAN To suresh 1970 30 JAN By purchases 1500
18 12
JAN To bank C 1000 JAN By drawings 500
20 15
JAN By cash C 1000
20
JAN By wages 100
21
JAN By suresh 1970
25 (dishonoured)
JAN By bank charges 10
31
JAN By bal c/d 4710 9630
31
5910 14890 30 5910 14890 20
FEB 1 To bal 1710 9630
b/d
13) THREE COLUMN CASH BOOK
Date Particulars L Di Cash Bank Date Particulars L Di Cash Ban
s ₹ ₹ s ₹ k
F co F co ₹
un un
t t
₹ ₹
1-7-16 To Capital 15,00 2-7-16 By 500
A/c 0 Preliminary
Exp
2-7-16 To Cash C 13,50 2-7-16 By Bank C 13,50
A/c 0 0
8-7-16 To Kannan 60 3,300 3-7-16 By Raman 50 3,45
0
8-7-16 To Cash 2,500 4-7-16 By Carriage 85
Sales on Goods
9-7-16 To Cash C 2,400 5-7-16 By Furniture 700

12-7- To 150 9-7-16 By Bank C 2,400

16 Commissio
n
18-7- To Bank C 500 10-7- By Purchases 5,00
16 16 0
20-7- To 50 1,250 15-7- By 120
16 Muruga 16 Advertising
n Exp
(Cheque
)
18-7- By Cash C 500
16
25-7- By Drawings 500
16
28-7- By General 125
16 Exp
31-7- By Salaries 500
16
31-7- By Rent 1,00
16 0
31-7- By 3,20
16 Typewriter 0
31-7- By Balance 1,420 5,60
16 C/d 0
110 18,15 20,45 50 18,15 2045
0 0 0 0
1-8-16 To 1,420 5,600
Balanc
e B/d
 14. Analytical Petty cash book

Note: There is no Separate column for conveyance, so it is shown in the sundries column.

Cash Date Particulars L Total Analytical Petty cash Book

Rec f Paym
ents
Postage Cartage Printing Tavelli Wages Stati Sundri
& & & ng oner es
Telegra carriage Advertise y
m ment
1000 2016 ₹ ₹ ₹ ₹ ₹ ₹ ₹
June-1 To cash
“ 2 by postage 80 80
“ 5 by stationery 50 50
“ 8 by 100 100
advertisemen
t
“ 12 by wages 40 40
“ 16 by Carriage 30 30
“ 20 By 44 44
Conveyance
“ 25 By Traveling 160 160
Exp

“ 27 By Postage 100 100

“ 28 By wages 20 20
“ 30 By 40 40
Telegrams
“ 30 By registered 6 6
Notice to
land lord
670 226 30 100 160 60 50 44
“30 BY Balance 330
c/d
1000 1000
330 JUly 1 To Balance
July b/d
1 To Cash A/c
670

BANK RECONCILIATION STATEMENT

SHORT QUESTIONS:

6 sol:
Bank Reconciliation statement as on 31-12-2012

PARTICULARS AMT AMT

Balance as per cash book 22,000

ADD:Cheque issued but not 2000

presented for payment
 Dividends collected and credited in 650 2650
passbook
but not entered in cash book

Less:Cheque deposited but not 1800 1800

credited in passbook

Balance as per Passbook 22,850

7 sol:
Bank Reconciliation Statement as on 31st January, 2017
PARTICULARS AMT AMT

Overdraft as per the Cash Book (Cr.) 20,100

Add: Fire Insurance premium paid by bank 550

Cheques deposited but not yet cleared 1700 2250

Less: 6500
Cheques issued not presented for payment

Interest collected by the bank 740

Customer deposited directly into the bank 620 7860

Bank Overdraft as per Passbook 14,490

8 sol:
Bank Reconciliation Statement
PARTICULARS AMT AMT

Balance as per Cash Book 15,000

Add: Cheques issued but not 1500 1,500

presented

Less: Cheque deposited but not 1000

cleared

Bank paid interest 200 1,200

Balance as per Pass Book 15,300

9 Sol:
Bank Reconciliation Statement
Particulars Amt Amt

Balance as per cash book 12,500

Add: Cheques issued but not yet presented for payment 6,000

A cheque directly deposited by a customer 8,000

Interest on Investment collected by bank 2,000 16,000

Less: Cheque deposited in the bank but not collected 9,000

 Bank paid insurance premium 5,000

Bank charges 300

Cash discount allowed was recorded on the 200 14,500

Debit side of the bank column.

Balance as per Pass book 14,000

10 Sol:
Bank Reconciliation Statement as on 1-7-2020

Particulars Amt Amt

Overdraft as per Pass book (Dr) 7,540

Add: Cheques issued but not presented for payment 1,500 1500

Less: Cheques deposited but not credited by the 3200

Banker

Pass Book shows an interest in overdraft. 57 3257

Overdraft as per cash book 5,783

11 Sol:
Bank reconciliation statement as on 31-3-2021

Particulars Amt Amt

Overdraft as per Cash Book 16,200

Add:

Less: cheque deposited but not recorded in the Cash Book 700

Bills collected directly by Bank 3,200

Bank charges recorded twice in the Cash Book 30

Bank Overdraft as per Pass Book

Bank charges recorded twice in the Cash Book 30.

12 Sol:
Bank Reconciliation Statement as on 30-4-2020
Particulars Amt Amt

Overdraft as per cash book 15000

Add:Interest on overdraft entered the pass book only. 150 150

Less: cheques issued prior to the date not presented for 2,500
payment

Interest on Investments collected by Bank for Rs 500 500 3,000

Bank Overdraft as per Pass book 12,150

13 Sol:
Bank reconciliation statement as on 31-3-2020
Particulars Amt Amt

Balance as per Pass Book 1,565

Add: Bank charges charged 35 35

Less: Cheques issued to X and Y were not presented for 984

payment(600+384)

Interest allowed by Bank 40

Z a customer directly deposited into the Bank account , which 816 1840
was not entered in the cash book.
 Balance as per Cash Book 240

PROBLEMS:

sol 1: Bank reconciliation statement as on 31-12-2012

Particulars Amt Amt

Overdraft as per Passbook 20,000

Add:Interest on investment collected by bank 500 500

Less:Bank has paid towards insurance premium and not 300

entered in the cash book.

Cheque received, entered in cash book but not sent to bank 500
for collection

A wrong debit is appearing in the passbook. 400 1200

Overdraft as per Cash Book 19300

sol 2:Bank reconciliation statement as on 31-12-2013

Particulars Amt Amt

Overdraft as per pass book 30,000

Add:Cheques issued but not presented 10,000

Wrong credit in Passbook 2,000

Interest credited in Passbook 1,200 13,200

Less: cheques paid in but not credited in Passbook 3,000

Interest on overdraft not entered in cash book 1,000 4,000

Overdraft as per Cash Book 39,200

Sol 3:Bank reconciliation statement as on 31-3-2010

Particulars Amt Amt

Overdraft as per Cash book 8,200

Add:Interest debited in Passbook 525

Cheque deposited but not collected 750 1,275

Less:Wrong credit in passbook 290

Interest credited only in passbook 2,200

Cheque issued not encashed 950 3,340

Overdraft as per Cash Book 6,035

Sol 4:Bank reconciliation statement as on 31-3-2009

Particulars Amt Amt

Overdraft as per Cash book 7,200

Add:Interest debited in Passbook 225

Cheque deposited but not collected 750 975

Less: Interest collected by Bank 1200

Cheque issued not presented 750

Credit relating to other account in passbook 90 2,040

 Bank Overdraft as per Passbook 6,135

Sol 5:Bank reconciliation statement as on 31-3-2017

Particulars Amt Amt

Bank Balance as per Cash Book 1,54,300

Add:Cheques issued but not presented 80,760

Cheques received by bank directly from Trade Debtors 1,35,200

Dividend collected not recorded in Cash Book 1,000 2,16,960

Less: Cheques deposited but not credited by the bank 75,450

Bank charges not recorded in the Cash Book 1,135

Insurance premium paid as per standing instructions 15,400 91,985

Bank balance as per Pass Book 2,79,275

Sol 6: Bank reconciliation statement as on 30-6-2014

Particulars Amt Amt

Bank Balance as per Cash Book 12,000

Add:Cheques issued but not presented (9,200 – 2,200

7,000)

Receipt column of Cash Book was undercast 200

Interest on investment collected by Bank 330

Amount directly deposited by Customer 3,000 5,730

Less: Cheques deposited but not credited (8,000 – 1500

6,500)

Bank Charges 60 1560

Bank Balance as per Pass Book 16,170

Sol 7: Bank reconciliation statement as on 31-3-2017

Particulars Amt Amt

Bank Balance as per Cash Book 40,960

Add: Amount directly paid by debtors 2,000

Cheques issued but not presented for payment 12,980 14,980

Less: Bank charges not recorded in Cash Book 100

Discounting charges not recorded in Cash Book 800

Amount deposited but not credited 3,520

Cheque dishonored but not recorded in Cash Book 650 5,070

Bank Balance as per Pass Book 50,870

Sol 8: Bank reconciliation statement as on 31-12-2016

Particulars Amt Amt

Bank Balance as per Cash Book 40,500

Add:Cheque issued but not presented for 5,000

payment

Rebate received not recorded in Cash Book 150 5150

Less:Post-dated cheque recorded as deposit in 900

Cash Book

Cheques deposited but not credited 10,200

Cheque dishonored and not recorded in Cash 4,000 15,100

Book

Bank Balance as per Pass Book 30,550

Sol 9:Bank reconciliation statement as on 31-12-2014

Particulars Amt Amt

Overdraft as per Cash Book 18,000

Add: Cheque deposited but not credited by Bank 6,000

Bank charged interest 500

Bank charges 20 6,520

Less: Cheque issued but not presented for payment 7,000 7,000

Bank Overdraft as per Pass Book 17,520

Sol 10: Bank reconciliation statement as on 31-12-2012

Particulars Amt Amt

Overdraft as per Passbook 9,600

Add: Cheque issued but not presented for payment 3,400 3,400

Less: Cheque deposited but not collected 8,560

Incidental charges paid by Bank 80

Insurance premium paid by the bank not recorded in the 4,200

Cash Book

Amount wrongly entered in Cash Book (485 – 385) 100 12,940

Overdraft as per Cash Book 940

Sol: 11

Adjusted Cash Book (Bank Column only )as on March 31, 2019

Date Particulars J.F. Amount Date Particulars J.F. Amount

Balance b/d 12,580 (vii) Bank Charges 100

(v) Cheques deposited undercasted 450 Balance c/d 18,500
(12,720 – 12,270)
(iii) Customer’s A/c 5,000
(Direct deposit by customer)
(vi) Dividend 570

18,600 18,600
 Bank Reconciliation Statement as on March 31, 2019

Particulars Amt Amt

Balance as per Amended Cash Book 18,500

Add: Cheque issued but not presented (18,000-4800) 13,200

Less:Cheque deposited but not credited 8,200

Balance as per Pass Book 23,500

Sol 12: Bank reconciliation statement as on 31-12-2014

Particulars Amt Amt

Bank Balance as per Cash Book 12,000

Add: Cheque issued but not presented 7,700

Cheque deposited but not entered in Cash 2,000

Book

Amount wrongly credited by bank(530 – 350) 180

Interest on Debentures received 300

Overcasting of Payment side of Cash Book 900 11,080

(5,420 – 4,520)

Less: Cheques deposited in the bank but not 3,800 3,800

credited

Bank Balance as per Pass Book 19,280

Sol 13: Bank reconciliation statement as on 31-1-2017

Particulars Amt Amt

Bank Balance as per Pass Book 62,500

Add: Cheque issued wrongly taken in Cash 4,000

Column

Bank charges 55 4,055

Less:Cheque issued but not presented for 17,800

payment

Cheque deposited but not entered in Cash Book 15,000

Bank allowed interest 50 32,850

Bank Balance as per Cash Book 33,705

Sol 14:Bank reconciliation statement as on 31-10-2017

Particulars Amt Amt

Overdraft as per Cash Book 5,000

Add:Cheque deposited but not credited in 500

passbook

Bank charges, Interest on overdraft,Insurance 310 810

premium debited in Passbook(10+50+250)

Less: Cheques issued not presented 1,350

Amount directly deposited by customer not 2,000 3,350

recorded in cash book

Bank overdraft as per Passbook 2,460

Sol15: Bank reconciliation statement as on 31-3-2013

Particulars Amt Amt

Overdraft as per Cash book 4397.50

Add: Cheque deposited not credited in Passbook 350

Interest on overdraft debited in passbook 142

Proceeds of bill discounted entered wrongly in cash book 12.60 504.60

Less: Cheques issued, but not presented for payment 6,345 6,345

Favorable balance as per passbook 1,442.9

Sol16: Bank reconciliation statement as on 31-12-2006

Particulars Amt Amt

Overdraft as per cash book 2,45,900

Add: Interest debited in Passbook 27,800

Draft deposited not credited in Passbook 13,500

Wrong debit in Passbook 7,400 48,700

Less: Cheques issued , but not presented 66,000

Transport subsidy credited in Passbook 42,500

Bills credited in Passbook 83,600 1,92,100

Bank overdraft as per Pass book 1,02,500

Sol 17: Bank reconciliation statement as on 31-3-2013

Particulars Amt Amt

Overdraft as per cash book 1,729

Add: Cheque deposited but not collected 750

Cheque received ,omitted to sent to bank 150

Bank charges and interest debited in Passbook(15+85) 100 1,000

Less: Cheques issued, but not presented 600

B/R collected by Bank 2500 3100

Favorable balance as per Passbook 371

Sol 18: Bank reconciliation statement as on 31-3-2013

Particulars Amt Amt

Overdraft as per Pass book 9,550

Add: Cheque issued for 5,900 credited in Passbook as 11,300

5,400 (5900+5400)

Bill discounted dishonored credited instead of debiting 5,000

Cheque issued but canceled not entered in CashBook 3,600 19,900

Less: Cheque received entered twice in cash book but 4,300 4,300
not collected by bank

Overdraft as per Cash Book 25,150

Note: Salary paid in cash wrongly posted in salary account and cheque directly deposited in bank , dishonored will not appear in Reconciliation
statement.
Sol 19: Bank reconciliation statement as on 31-3-2013

Particulars Amt Amt

Overdraft as per Cash book 4,300

Add: Interest on S.B not entered in Cash Book 160

Cheques deposited not credited in Passbook 450

Receipt side of Cash Book overcast 175 785

Less:Cheques issued, not presented 1500

Direct payment entered only in Passbook 275 1775

Overdraft as per Passbook 3,310

Sol 20: Bank reconciliation statement as on 31-3-2016

Particulars Amt Amt

Bank Balance as per Pass Book 5400

Add: Cheques deposited but not collected 240

Bank charges entered in passbook 30 270

Less:cheques issued but not presented 515

Interest on current account but not credited in cash 25 540

book

Balance as per CashBook 5,130

Rectification of Errors

Journal Entries
Problem-1.
Date Particulars L.f Debit (Rs) credit(Rs)

1 Purchases A/c — Dr 300

Sales A/c —- Dr 300
To Raman A/c
(Being purchases from Raman wrongly 600
entered in sales book now rectified)
______________________________

Bills receivable A/c— Dr

Bills Payable A/c —- Dr
2 To Ramesh A/c 500
(Being bills received from Ramesh 500
wrongly passed mto bills payable now 1000
rectified)
______________________________

3 Prepaid Rent A/c — Dr

To Suspense A/c 150
(Being Prepaid item which was omitted 150
now rectified)
_____________________________

Bills Payable – Dr
To Mehta N A/c
4 (Being Account debited to mehta N now 400
rectified) 400
______________________________

5 Amit A/c —Dr 200

To Bad debts recovered A/c 200
(Being wrong credit given to Amit now
Rectified)
Problem-2. Journal Entries
Date particulars L.F Debit(Rs.) Credit(Rs.)

1 X’s A/c—- Dr 2200

To Suspense A/c 2200
(Being mistake rectified)
_________________________________
2 Furniture A/c —Dr 8100
To Z A/c 8100
(Being error rectified)
_________________________________
Suspense A/c —- Dr 900
3 To sales A/c 900
(Being cash sales to rajesh posted to sales
account now rectified)
_________________________________
4 Amit A/c —- Dr 9000
To Suspense A/c 9000
Being mistake rectified)
_________________________________
5 Salaries A/c—-Dr 5000
To Suspense A/c 5000
(Being salaries paid not posted now rectified)
_________________________________

Problem-3 Journal entries

Date particulars L.F Debit(Rs.) Credit(Rs.)

1 salesA/c—- Dr 100
To Suspense A/c 100
(Being overcast of sales book now rectified)
_________________________________
X A/c —Dr 50
To Y A/c 50
2 (Being wrong debit given to Y now rectified)
_________________________________
Suspense A/c —- Dr
To General expenses A/c
((Being mistake rectified) 62
3 _________________________________ 62
Bills Receivable A/c—- Dr
Bills payable A/c —---Dr
To P A/c 155
4 155
Being mistake rectified) 310
_________________________________
Legal Expenses A/c —- Dr
To Hari A/c
(Being legal expenses paid was debited to 119
5 hari’s personal account now rectified) 119
_________________________________
Suspense A/c — DR
To Govind A/c
To Gopal A/c 300
6 (BEing amount received from gopal wrongly 150
debited to Govind now rectified) 150
_________________________________

Problem NO :4 Journal entries

 Date Particulars L.f Debit (Amt) Credit(Amt)

1 Shanthi A/c -Dr 4000

To Suspense A/c 4000
(Being Sales to shanthi credited to her
account now rectified)
___________________________
Sales Returns a/c —-- Dr 1000
To Suspense A/c 1000
2 (Being sales returns undercast now
rectified)
___________________________
Suspense A/c — Dr 3000
To Sales A/c 1500
To purchases A/c 1500
3 (Being sales made wrongly passed
through purchases book now rectified)
___________________________
Parul A/c— Dr
To Suspense A/c 12880
4 (Being Purchases from parul debited 12880
less amount now rectified)
___________________________
Furniture A/c —- Dr
To Wages A/c 3750
(Being wages paid for furniture were 3750
5 charged to wages a/c mistake now
rectified)
___________________________

Problem:5 Journal entries

Date particulars L/F Debit (Amt) Credit(Amt)

1 Suspense A/c — Dr 350

To Sales A/c 350
(Being undercast sales book now
rectified)
_____________________
Legal expenses A/c — Dr 95
2 To Suspense A/c 95
(Being legal expenses not posted
now rectified)
_____________________
Suspense A/c — Dr 20
3 To DIscount Allowed 20
(Being Wrong totaling of discount
allowed now rectified)
_____________________
Suspense A/c — Dr
To Commission A/c 25
4 (Being Twice posted commission 25
paid account mistake now rectified)
_____________________
Suspense A/c — Dr
To Ramnath A/c
(Being more amount posted in 54
5 ramnath account mistake now 54
rectified)

Suspense A/c

Particulars Amount particulars Amount

To Sales A/c 350 By Balance b/d(bal,fig) 354

To Discount A/c 20 By Legal expenses A/c 95
To commission A/c 25
 To Ramanath A/c 54
_____________ _____________
449 449
_____________ _____________

Problem:6 Journal entries

Date particulars L/F Debit (Amt) Credit(Amt)

1 Merchant A/c — Dr 49.50

To Suspense A/c 49.50
(Being Wrong posting to credit side
of merchant a/c mistake now
rectified)
_____________________
2 Customer A/c-Dr 200
To General expenses A/c 200
(Being Wrong debit given to general
expenses mistake now rectified)
__________________________
Suspense A/c —- Dr
To Customer A/c 20.20
3 (Being wrong amount debited to 20.20
customer A/c now rectified)
__________________________
Sales A/c —-------- Dr
To Plant A/c 260
4 (Being wrong entry to sales book 260
mistake now rectified)
__________________________
S. Debtors A/c—- Dr
To Suspense A/c 60
5 (Being amount owing by a 60
customer omitted mistake now
rectified )
__________________________
Discount A/c—- Dr
To Suspense A/c 2.5
6 (Being Wrong posting in the 2.5
discount column now rectified)
_________________________

Problem -7 Journal Entries

Date particulars L/F Debit (Amt) Credit(Amt)

1 Suspense A/c— Dr 210

To Purchase Returns A/c 210
(Being total of purchases returns
book not posted now rectified)
__________________________
Krishna Textiles A/c— Dr 770
2 To Suspense A/c 770
(Being wrong credit to Krishna
textiles now rectified)
__________________________
Purchases A/c —- Dr 400
Sales A/c— Dr 400
To Suspense A/c 800
3 (Being wrong credit given to sales
now rectified)
__________________________
Kailasam A/c — Dr 27
To Sales A/c 27
4 (Being less amount entered in sales
book now rectified)
__________________________
Sales A/c—-- Dr 450
Suspense A/c —- Dr 90
5 To Furniture A/c 540
(Being old furniture sold entered in
 sales account now rectified)
__________________________
Drawings A/c — Dr 75
To Purchases A/c 75
6 (Being entry not entered in books
now rectified)
__________________________

Suspense A/c

Particulars Amount particulars Amount

To Balance b/d(bal,fig) 1270 By Krishna Textiles A/c 770

To Purchase Returns A/c 210 By Purchases A/c 400
To Furniture A/c 90 By Sales A/c 400
_____________ _____________
1570 1570
_____________ _____________

Problem-8 Journal entries

Date particulars L/F Debit (Amt) Credit(Amt)

1 Repairs/c —--- Dr 300

To Furniture A/c 300
Being wrong debit made to
furniture account now rectified)
_____________________
Sales A/c-Dr 200
2 To Suspense A/c 200
(Being sales book overcast mistake
now rectified)
__________________________
X’sA/c —- Dr 50 50
To Y’s A/c
(Being wrong debit given to Y’s
3 A/c now rectified)
__________________________
Suspense A/c —-------- Dr 62 62
ToGeneral Expenses A/c
(Being wrong amount posted to
4 general expenses account mistake
now rectified)
__________________________
Bills Receivable A/c—Dr 600
Bills Payable A/c—- Dr 600 1200
5 To P' A/c
(Being bills receivable passed
through bills payable mistake now
rectified )
__________________________
Suspense A/c—- Dr 120 120
6 To Discount A/c
(Being amount not posted to
discount account error now
rectified)
_________________________

Suspense A/c

Particulars Amount particulars Amount

To Balance b/d(bal,fig) 18 By sales A/c 200

To General expensesA/c 62
To Discount A/c 120
_____________ _____________
200 200
_____________ _____________
Problem- 9 Journal Entries

Date particulars L.F Debit(Amt) Credit(Amt)

1 Ram A/c--- Dr 270

To Suspense A/c 270
(Being wrong posting made to his account
now rectified)

Suspense A/c---- Dr 1000

2 To SalesA/c 1000
(Being sales day book undercast now
rectified)
______________________________
Stationery a/c- Dr 200
3 To Purchases A/c 200
( Being wrong debit given to purchases
now rectified)
_______________________________
Banu A/c ---Dr 3600
4 To Suspense A/c 3600
(Being wrong posting now rectified)
_______________________________
Furniture A/c --- Dr
5 To Office Expenses A/c 500
(Being wromg debit given to office 500
expenses mistake now rectified)
______________________________
Salaries A/c – Dr 500
6 To X A/c 500
(Being salary paid debited to personal
account now mistake rectified)

PROBLEM-10
Date particulars L.F Debit(Rs.) Credit(Rs.)

1 Buildings A/c— Dr 890

To wages A/c 890
(Being wages spent on construction to wages
now rectified)
_________________________________
2 Drawings A/c —- D r 300
To Purchases A/c 300
(being goods withdrawn for personal use
wrongly debited to purchases account now
rectified)
_________________________________
Factory plant A/c—- Dr 3000
3 To Repairs A/c 3000
(Being wrong debit to repairs now rectified)
_________________________________
Rama Rao A/c —- Dr
To allowances A/c 2500
4 (Being wrong debit given to allowance now 2500
rectified)
_________________________________
Sita Ram A/c —-- DR
To Customers A/c 1500
5 (Being wrong credit given to sita ram now 1500
rectified)
_________________________________

11 JOURNAL ENTRIES
Date particulars L.F Debit(Rs.) Credit(Rs.)

1 Purchases A/c— Dr 300

 Sales A/c —- Dr 300
To Mani A/c 600
(Being purchases from Mani wrongly entered
in sales book now rectified)
_________________________________
2 B/R A /c—--- Dr 500
B/P A/c —--- Dr 500
To Arun A/c 1000
(Being a bill received from arun wrongly
entered in bills payable now corrected)
_________________________________
3 Rent A/c—Dr 150
To Prepaid Rent A/c 150
(Being entry omitted now rectified)
_________________________________
Suspense A/c —- Dr 80
4 To purchases A/c 40
To Purchases Returns A/c 40
(Being entry of purchases returns wrongly
entered in purchases book ,now rectified)
_________________________________
Bills Payable A/c —- Dr
5 To Malhotra Bros. A/c 500
(Being Acceptance paid wrongly debited to 500
Malhotra Bros, now rectified)\
_________________________________
Repairs a/c—--- Dr
Electronic Equipments A/c —--Dr 150
6 To purchases A/c 950
To Suspense A/c 1000
(Being bill for repair and radio purchased 100
wrongly entered in purchases book now
rectified)
_________________________________

PROBLEM -12
Date particulars L.F Debit(Rs.) Credit(Rs.)

1 Sales Returns A/c— Dr 300

To C 300
(Being mistake rectified)
_______________________________
Mahesh A/c --- Dr 700
2 To Suspense A/c 700
(Being goods sold not entered in his account
mistake now rectified)
_________________________________
Suspense A/c---- Dr 72
To Varsha Traders A/c 72
3 (BEING mistake rectified)
Sundry Debtors A/c --- DR 260
To Suspense A/c 260
(Being mistake rectified)
4 _________________________________
Suspense A/c ---- Dr 188
To Purchases A/c 188
5 (Being purchases book over cast now
rectified)
_________________________________

PROBLEM-13
Date Particulars L.F Debit (Amt) Credit(Amt)
1 Sales A/c--- Dr 100
To Suspense A/c 100
(Being sales book overcast now
corrected)
 X a/c --- Dr 50
To y’s A/c 50
(Being sales to X wrongly
debited to Y now rectified)
Suspense A/c ---- Dr 62
To General expenses A/c 62
(Being General expenses
amount rectified)
Bills Payable A/c--- Dr
Bills Receivable A/c--- Dr 155
To P’s A/c 155
(Being Bills receivable from P 310
wrongly recorded in Bills
payable book now rectified)
Legal expenses A/c --- Dr
119
To Mr. Dutt A/c
119
(Being wrong amount debited
to his personal account now
rectified)
Suspense A/c _ Dr 300
To C Dass A/c 150
To G. Dass A/c 150
(Being amount wrongly debited
to G. Dass , now rectified)
Suspense A/c ----- Dr
To Purchases A/c 90
(Being total of purchases book 90
mistake now rectified)
_______________________

Suspense A/c

Particulars Amount particulars Amount

To General Expenses A/c 62 By Difference in books as 352

To C.Dass A/c 150 perTrial Balance (Bal fig)
To G.Dass A/c 150 By sales A/c 100
ToPurchases A/c 90
_____________ _____________
452 452
_____________ _____________

PROBLEM-14
Date Particulars L.F Debit (Amt) Credit(Amt)
1 Repairs A/c—Dr 300
To Furniture A/c 300
(Being repairs to furniture wrongly
debited to furniture account now
rectified)
___________________________
Sales A/c ---- Dr 200
To Suspense A/c 200
(Being sales book over cast mistake now
rectified)
______________________________
X A/c--- Dr 50
To Y’s A/c 50
(Being wrong debit given to Y’s a/c now
rectified)
Suspense A/c---- Dr 162
To General expenses A/c 162
(Being excess amount posted to general
expenses now rectified)
Krishna Textiles A/c --- Dr
To Suspense A/c 770
(Being mistake corrected) 770
 Problem- 15 Journal Entries
Date Particulars L.F Debit (Rs) Credit(Rs.)

1 Sales A/c –Dr 2000

TO Furniture A/c 2000
(Being Sale of old furniture
wrongly credited to sales now
rectified)
___________________
Salary A/c — Dr 12000
2 To Nayeem A/c 12000
(Being Salary paid wrongly
debited to Nayeem A/c now
Rectified)
___________________
Drawings A/c —- Dr
To Trade Expenses A/c 5000
3 (Being Wrong debit given to 5000
trade Expenses Now rectified)
_____________________
Mr. Baber A/c ___ Dr
To Mr. Bilal A/c
(Being Wrong Credit given to 300
4 Mr. Billal Now rectified) 300
_____________________

Repairs A/c —-- Dr

To Buildings A/c
5 (BEing repairs made debited to 100
building a/c now corrected) 100
_____________________
Commission A/c — Dr
TO Interest A/c
(Being Wrong amount credited
to commission account now 1000
6 rectified) 1000

Problem- 16
Date Particulars L.F Debit (Rs.) Credit(Rs.)

1 Ravi A/c —-- DR 1750

To Sales A/c 1750
(Being Goods sold to ravi not
posted now ratified)
______________________
2 Srinivas A/c– Dr 4800
To Sales A/c 2400
To PurchasesA/c 2400
(Being Credit sales wrongly
posted to purchases account now
rectified)
______________________
3 Conveyance A/c —- Dr 150
 To Kiran A/c 150
(Being Wrong debit given to
kiran now rectified)
4 ______________________
Sai kumar A/c– Dr 2000
To Sri kumar A/c 2000
(Being wrong debit given to sri
kumar now rectified)
______________________
Drawings A/c _– Dr 4000
5 To GoodsA/c 4000
(Being entry not entered now
mistake rectified)
______________________
Suspense A/c —- Dr 2000
6 To Purchases returns A/c 2000
(Being Purchases book under
cast now rectified)
______________________

DEPRECIATION
SHORT QUESTIONS:

SOL 6:
Calculation of Depreciation under Straight line method
Cost of asset + Installation expenses - Estimated scrap
Estimated Life of the Asset
= 96,000+ 24,000-72,000
4yrs
Depreciation =Rs 12,000 p.a

SOL 7:
Calculation of Depreciation under Straight line method
Cost of asset + Installation expenses - Estimated scrap
Estimated Life of the Asset
= 4,00,000+50,000-50,000
10 yrs
Depreciation = 40,000 p.a

MACHINERY A/C (SLM)

Dr Cr

Date Particulars Amt Date Particulars Amt

2015 1st To Bank 4,00,000 2016 By depreciation 40,000

April To Bank 50,000 31st
March By Balance c/d 4,10,000

4,50,000 4,50,000
2016 2017
1st April To Balance b/d 4,10,000 31st By Depreciation 40,000
March By Balance c/d 3,70,000

2017 4,10,000 4,10,000

1st April
To Balance b/d 3,70,000 2018 By Depreciation 40,000
31st By Balance c/d 3,30,000
March

3,70,000 3,70,000
2018
1st April

To Balance b/d 3,30,000

SOL 8:
MACHINERY A/C (Written Down Value Method)
Dr Cr
 Date Particulars Amt Date Particulars Amt

2008 To Bank 3,90,000 2008 By depreciation 30,000

1st To Bank 10,000 31st ( 4,00,000 x 15% x6/12)
July Dec By Balance c/d 3,70,000

4,00,000 4,00,000
2009 By Depreciation
2009 To Balance b/d 3,70,000 31st (3,70,000 x15%) 55,500
1st Dec By Balance c/d
Jan 3,14,500
3,70,000
3,70,000
2010 To Balance b/d 3,14,500 2010 By Depreciation
1st 31st (3,14,500x15%) 47,175
Jan Dec By Balance c/d
2,67,325
3,14,500

3,14,500

2011 To Balance b/d 2,67,325

1st
Jan

SOL 9:
Assume cost of Asset=100
Depreciation in 2013 yr at 10% on 100= 10
WDV = 90
Depreciation in 2014 yr at 10% on 90 = 9
WDV =81
Depreciation in 2015 yr at 10% on 81=8
WDV = 73
73=72,900
100=?
= Rs 99,863 or 1,00,000
Cost price of Asset =Rs 99,863 or 1,00,000

SOL 10:
A Trader purchased a second hand Motor Lorry for Rs 1,20,000 and paid Rs 30,000 towards repairs. The life of the Lorry is estimated to be 5
years . The scrap value is estimated to be Rs 20,000. Calculate Depreciation under Diminishing Balance Method @20% p.a. for 3 years.
Calculation of Depreciation under Diminishing Balance method in I year
Depreciation =
Cost of asset + Installation expenses - Estimated scrap
Estimated Life of the Asset
= 1,20,000+ 30,000-20,000
5 years
=Rs 26,000 p.a
Depreciation in II second year
WDV of asset= 1,50,000-26000=1,24,000
Depreciation =1,24,000 x 20%=24,800 p.a
Depreciation in III second year
WDV of asset= 1,24,000-24,800=99,200
Depreciation = 99,200 x20%=19,840 p.a

Sol 11:
Year Opening Balance Dep@10% Closing Balance

2014 80,000 8000 72,000

2015 72,000 7200 64,800

2016 64,800 6480 58,320

2017 58,320 2916 55,404

Sale price Rs 60,000
( less) Book value 55,404
Profit on sale 4,596

PROBLEMS:

Sol 1: Machinery A/c

Dr Cr
Date Particulars Amt Date Particulars Amt

2009 To Bank 40,000 2010 By Depreciation 4050

1st July March 31st (3,450 + 600)
To Bank ( Exp) 6,000
2010 By Balance c/d 65,950
1st Jan To Bank 24,000

70,000 70,000
2010
1st April To Balance b/d 65,950 2011 By Depreciation 7000
March 31st (4600+2400)
By Balance c/d 58,950

65,950 65,950

2011 2011 June 30 By Bank 16,000

1st April To Balance b/d 58,950 By Depreciation
30 June To Bank 30,000 ( 4600+600+2250) 7,450
By P&L (loss) 4,400
2012
March 31st By balance c/d 61,100

88,950 88,950

2012
1st April To Balance b/d 61,100

Cost 24,000
Less: Dep ( 600+2400+600) 3600
20,400
Less: Amt realized 16,000
Loss on sale 4,400

Sol 2:
Machinery A/c
Dr Cr
Date Particulars Amt Date Particulars Amt

20101st April To Bank 18,000 2010 By Depreciation 1500

Dec 31st
To Bank 2000 By Balance c/d 18,500

20,000 20,000
2011
1st Jan To Balance b/d 18,500 2011
Dec 31st By Depreciation 2,000
By Balance c/d 16,500
18,500
18,500

2012 2012
Jan 1st To Balance b/d 16,500 Dec 31st By Depreciation 2,000
By Balance c/d 14,500

16,500 16,500

2013 2013 By Depreciation 1,000

Jan 1st To Balance b/d 14,500 June 30
By Bank 4000
By P&L -Loss 9500

14,500 14,500

SOl 3:
Machinery A/c
Dr Cr
Date Particulars Amt Date Particulars Amt
2010 To Bank (1st Machine) 40,000 2010 By Depreciation 5000
1st April Dec 31st (4000+1000)
To Bank (2nd Machine) By Balance c/d 55,000
20,000
60,000
60,000
2011 To Balance b/d
1st Jan
55,000 2011 By Depreciation 5500
Dec 31st (3600+1900)
By Balance c/d 49,500
55,000
55,000
2012 To Balance b/d
Jan 1st To Bank (3rd Machine) 2012
49,500 Oct 1st By Bank (1st Machine)sale 25,000
1st Oct 38,000 By Depreciation(1st Machine)
By P&L a/c(loss) 2,430

By Depreciation(1710+950) 4,970
By balance c/d
Dec 31st 2,660

52,440
87,500 By Depreciation
To Balance b/d By balance c/d 87,500

2013
Jan 1st 52,440 2013 5,244
Dec 31st 47,196
By Depreciation
To Balance b/d 52,440 By Balance c/d 52,440

2014
Jan 1st 47,196 2014 4,720
Dec 31st 42,476

To Balance b/d 47,196 47,196

2015 42,476
Jan 1st

Sol 4:
Machinery A/c
Dr Cr
Date Particulars Amt Date Particulars Amt
2000 To Bank 12,000 2010 By Depreciation (2000+500) 2,500
1st April To Bank (exp) 8,000 Dec 31st By Balance c/d
To Bank 10,000 27,500

30,000
30,000

ByDepreciation
2001 To Balance b/d 27,500 2001 (2000+1000) 3,000
1st Jan Dec 31st By Balance c/d
24,500

27,500 27,500

2012 By Bank(sale)
2002 Dec 31st By Depreciation(1st Machine) 4000
Jan 1st To Balance b/d 24,500 By P&L Loss 1,000
July 1st To Bank (3rd Machine) By Depreciation(1000+1200)
24,000 By Balance c/d 11,000

2200

30,300

48,500 48,500
By Depreciation
(1000+2400)
2003 By Balance c/d
Jan 1st To Balance b/d 2003
30,300 Dec 31st
3,400
26,900
By Depreciation
30,300 By Balance b/d 30,300

2004 To Balance b/d 2004

Jan 1st 26,900 Dec 31st 3,400
By Depreciation 23,500
26,900 By Balance c/d
26,900
2005 To Balance b/d
Jan 1st 23,500 2005 3,400
Dec 31st 20,100

23,500 23,500

2006 To Balance b/d

Jan 1st 20,100

Working notes:
Cost of 1st Machine Rs 20,000
Less: Total Dep (2000+2000+1000) Rs 5000
Rs 15000
Less: Sale proceeds Rs 4000
Loss on sale Rs 11,000

Sol 5: Machinery A/c

Dr Cr
Date Particulars Amt Date Particulars Amt

2001 To Bank (1st Machine) 20,000 2002 By Depreciation 2,025

1st April March 31st (1725+300)
To Bank (exp) By Balance c/d 32,975
3,000

2002 To Bank(2nd Machine)

1st Jan 12,000

35,000 35,000

To Balance b/d 3,500

 2002 2003 By Depreciation
Apr 1st 32,975 March 31st (2300+1200) 29,475
By Balance c/d

32,975
32,975
To Balance b/d
To Bank ( 3rd Machine) 8,000
2003 29,475 2003 By Bank (2 nd Machine)sale
Apr 1st June 30 By Depreciation(2nd Machine) 300
15,000 By P&L a/c(loss)
2,200
By Depreciation
2004 (2300+1125) 3,425
Mar 31st By balance c/d
30,550

44,475

44,475

To Balance b/d

2004
Apr1st 30,550
Working notes:
Cost of Machine Rs 12,000
Less: Total Dep (300+1200+300) Rs 1800
Rs 10,200
Less: Sale proceeds Rs 8000
Loss on sale of machine Rs 2,200

Sol 6: Machinery A/c

Dr Cr
Date Particulars Amt Date Particulars Amt

1999 To Bank (1st Machine) 10,00,000 2010 By Depreciation 1,25,000

1st April To Bank (2nd Machine) Dec 31st (1,00,000+25000)
Oct 1st 5,00,000 By Balance c/d 13,75,000

15,00,000 15,00,000
To Balance b/d

2000 13,75,000 2000 By Bank 4,00,000

1st April Oct 1st By Depreciation 45,000
By P&L (loss) 4,55,000

2001
Mar 31st By Depreciation(2nd Machine) 47,500
By Balance
4,27,500

To Balance b/d 13,75,000 13,75,000

By Bank(sale)
2001 4,27,500 2001 By Depreciation 4,20,000
Apr 1st To Bank (3rd Machine) Oct 1st 21375
To P&L (Profit) 2002 By Depreciation
Oct 31 12,00,000 Mar 31 By Balance c/d 60,000
11,40,000
13,875

To Balance 16,41,375 16,41,375

2002 11,40,000
Apr 1

Sol 7: Machinery A/c

Dr Cr
Date Particulars Amt Date Particulars Amt
2002 To Bank 1,20,000 2002 By Depreciation 14000
1st Jan Dec 31st (12000+2000)
1st July To Bank (2nd Machine) 40,000 1,46,000
By Balance c/d
1,60,000 1,60,000

2003 To Balance b/d 2003

1st Jan 1,46,000 Dec 31st
By Depreciation 14,600
By Balance c/d 1,31,400

1,46,000 1,46,000

2004 To Balance b/d 2004

Jan 1st To Bank 1,31,400 Jan 1st By Bank 57200
1,00,000 By P&l a/c(loss) 40,000
By Depreciation 13420
By Balance c/d 1,20,780
2,31,400
2,31,400

2005 To Balance b/d 2005 By Depreciation 12,078

Jan 1st 1,20,780 Dec 31
By Balance c/d 1,08,702

1,20,780 1,20,780

2006 To Balance b/d

Jan 1st 1,08,702

Sol 8: Machinery A/c

Dr Cr
Date Particulars Amt Date Particulars Amt

2004 To Bank 2002 By Depreciation 87,500

1st Jan (2,00,000+50,000+50,000) 3,00,000 Dec 31st (75000+12,500)
To Bank (2nd Machine)
1st July 1,00,000 By Balance c/d 3,12,500

4,00,000 4,00,000
To Balance b/d

2005 3,12,500 2005

1st Jan Dec 31st By Depreciation 1,00,000
(75000+25000) 2,12,500
By Balance c/d
3,12,500 3,12,500
To Balance b/d
To Bank( 3rd Machine)
2006 To P&L (profit) 2,12,500 2006
Jan 1st 65,000 July 1st By Bank 45000
By Depreciation 12,500
7500 (1/3rd Machine 1/2yr)
By Depreciation
31st Dec (50000+8125) 58,125
By Balance c/d
1,69,375
To Balance b/d
2,85,000 2,85,000
2007 1,69,375
Jan 1st 2007 By Depreciation
Dec 31 (50,000+16,250)
66,250
By Balance c/d
1,69,375 1,03,125

To Balance b/d 1,69,375

2008 1,03,125
Jan 1st
Working notes:
Profit on sale of 1/3rd Machinery
Cost of ⅓ rd machine 1,00,000
Less: Depreciation for 2 yrs
( 25,000+25,000+12,500) 62,500
________
37,500
 Less: sale proceeds 45000
Profit 7500
________

Sol 9: Machinery A/c

Dr Cr
Date Particulars Amt Date Particulars Amt

2004 To Bank (1st Machine) 2004 By Depreciation 27,500

1st April 3,00,000 Dec 31st (22,500+5000)
To Bank (2nd Machine)
1st Oct 2,00,000 By Balance c/d 4,72,500

5,00,000 5,00,000
To Balance b/d

2005 4,72,500 2005 By Depreciation 50,000

1st Jan Dec 31st (30000+20000)
By Balance c/d 4,22,500

3,12,500

3,12,500
2006 To Balance b/d
Jan 1st
4,22,500 2006
Jan 1st By Bank (1st Machine) 30,000
By P&L (loss)
By Depreciation 52,500
31st Dec By Balance c/d 40,000
3,00,000

To Balance b/d 4,22,500 4,22,500

3,00,000
2007
Jan 1st

Working notes:
Loss on sale of ⅓ rd Ist Machine
Cost 1,00,000
Less: Depreciation (7500+10000) 17,500
_______
82,500
Less: sale proceeds 30,000
_______
Loss on sale 52,500
_______

Sol 10: Trucks A/c

Dr Cr
Date Particulars Amt Date Particulars Amt

2009 To Bank (cost of 10 trucks) 2009 By Depreciation 6,75,000

1st April 45,00,000 Dec 31st
By Balance c/d 38,25,000

45,00,000 45,00,000

To Balance b/d
2010 38,25,500 2010 By Depreciation 9,00,000
1st Jan Dec 31st
By Balance c/d 29,25,000

38,25,000
3,12,500

2011 To Balance b/d

Jan 1st 29,25,000 2011
To P&L a/c (profit) Oct 1st By Bank 2,70,000
Oct 1st 45,000 By Depreciation 67,500
To Bank ( 9 trucks
5,00,000 8,10,000+25,000 on 8,35,000
10trucks)
31st Dec By Balance c/d 22,97,500

34,70,000
34,70,000
2012 To Balance b/d 22,97,500
Jan 1st

Working notes:
Cost 4,50,000
Less: Depreciation
(67500+90000+67500) 2,25000
_________
2,25,000
Less: Amt received 2,70,000
_______
Profit 45,000
________
Sol 11:
Machinery A/c
Dr Cr
Date Particulars Amt Date Particulars Amt

2007 To Bank 2007 By Depreciation 1,75,000

1st April (5,00,000+50,000+50,000) 6,00,000 Dec 31st (1,50,000+25,000)
To Bank (2nd Machine)
1st July 2,00,000 By Balance c/d
6,25,000

8,00,000 8,00,000
To Balance b/d
By Depreciation
2008 6,25,000 2008 (1,50,000+50,000) 2,00,000
1st Jan Dec 31st By Balance c/d

4,25,000

6,25,000
To Balance b/d 6,25,000
2009 By Bank(½ of 1st
Jan 1st To P&L a/c (profit) 4,25,000 2009 Machine)
July 1st By Depreciation
July 1st To Bank(3rd Machine) 77,500 By Depreciation ( 1st 1,90,000
Machine ½ 37,500
1,00,000 31st Dec 75000+50,000+12,500)
By Balance c/d 1,37,500

2,37,500

To Balance b/d
6,02,500 By Depreciation 6,02,500
2010 2,37,500 (75000+50000+25,000)
Jan 1st 2010 By Balance c/d
Dec 31st
1,50,000

87,500
___________ _________
2,37,500 By Depreciation 2,37,500
To Balance c/d __________ (Nil+ 25,000+25,000) _________
By Balance c/d
87,500 2011
2011 Dec 31st
Jan 1st
50,000
__________ 37,500
87,500 ________
To Balance c/d ___________ 87,500
________
2012 37,500
Jan 1st
Working notes:
Profit on Sale of 1st Machine
Cost (1/2) 3,00,000
Less Depreciation ( 75000+75000+37500) 1,87,500
__________
1,12,500
Sale proceeds 1,90,000
__________
Profit 77,500
_______
 Sol 12: Machinery A/c

Dr Cr
Date Particulars Amt Date Particulars Amt

2006 To Bank 40,000 2006 By Depreciation 2000

1st July Dec 31st
By Balance c/d 38,000

40,000
40,000

2007 To Balance b/d 38,000 2007 By Depreciation 3,800

1st Jan Dec 31st
By Balance c/d 34,200

38,000 38,000

2008 To Balance b/d 34,200 2008

Jan 1st Oct 31st By Bank 5600
To Bank(2rd Machine) 15,000 By Depreciation 713
Oct 31 By P&L a/c(loss) 2237
31st Dec By
Depreciation(3/4Machin
e 2565+2nd Machine 2815
250)
By Balance b/d 37,835

49,200 49,200

2009 To Balance b/d 37835 By Depreciation

Jan 1st 2009 3784
Dec 31st By Balance c/d
___________ 34051
37835 _________
__________ 37835
_________

2010 To Balance b/d 34,051

Jan 1st

Working notes:
Loss on sale of ¼ Machine
Cost 10,000
Less: Depreciation (500+950+713) 2163
_______
7837
Less: Amt realized 5600
_______

Loss on sale 2237

______
Sol 13: Truck A/c
Dr Cr
Date Particulars Amt Date Particulars Amt
2007 To Bank( 5 trucks) 10,00,000 2007 By Depreciation 1,50,000
1st April Dec 31st
By Balance c/d 8,50,000

10,00,000
10,00,000

2008 To Balance b/d 8,50,000 2008 By Depreciation 2,00,000

1st Jan Dec 31st
By Balance c/d 6,50,000

8,50,000 8,50,000

2009
Jan 1st To Balance b/d 6,50,000 2009
1st Oct By Bank(sale of one 90,000
Oct 1st To Bank(New truck) 1,20,000 machine)
By Depreciation 30,000
By P&L a/c(loss) 10,000
31st Dec By Depreciation
(4 machines 1,66,000
1,60,000+6000)
By Balance b/d 4,74,000

7,70,000 7,70,000
2010 4,74,000
Jan 1st To Balance b/d

Sol 14: Machinery A/c

Dr Cr

Date Particulars Amt Date Particulars Amt

2005 To Bank 4,80,000 2005 By Depreciation 48,000

1st Jan Dec 31st
By Balance c/d 4,32,000

4,80,000
4,80,000

2006 To Balance b/d 4,32,000 2006 By Depreciation 43,200

1st Jan Dec 31st
By Balance c/d 3,88,000

4,32,000 4,32,000

2007
Jan 1st To Balance b/d 3,88,000 2007 By Depreciation 38,880
Dec 31st
By Balance c/d 3,49,920

____________ _______
3,88,000 3,88,000
____________ _________
2008 2008
Jan 1st To Balance b/d 3,49,920 Dec 31st By Depreciation 48,000
By P&L a/c 13,920
By Balance c/d 2,88,000
____________ _________
3,49,920 3,49,920
____________ _________

2009 2009
Jan 1st To Balance b/d 2,88,000 Dec 31st By Depreciation 48,000
By Balance c/d 2,40,000
_________
___________ 2,88,000
2,88,000 _________
____________

2010
Jan 1st To Balance b/d 2,40,000

Sol 15:
 Machinery A/c
Dr Cr
Date Particulars Amt Date Particulars Amt

2003 To Bank 40,000 2003 By Depreciation 4,000

1st Jan Dec 31st
By Balance c/d 36,000

4,80,000
4,80,000

2004 To Balance b/d 36,000 2004 By Depreciation 6150

1st Jan To Bank (2 nd Machine) 10,000 Dec 31st (5400+750)
July 1st By Balance c/d 39,850

46,000
46,000

To Balance b/d
2005 39,850 2005 By Bank 28,000
Jan 1st To Bank (3rd machine) July 1st
July 1st 25,000 By Depreciation 2295
( on 30600)
By P&L a/c(loss) 305
Dec 31st By Depreciation
(1388+1875) 3263
By Balance c/d 30,987

______
____________ 64,850
64,850 _________
___________
To Balance b/d
2006 2006
Jan 1st 30,987 July 1st By Bank 2000
By Depreciation 590
By P&La/c(loss) 5,272
By Depreciation 3,469
By Balance c/d 19,656
_________
__________ 30,987
30,987 _________
___________

Working notes:
Loss on sale of 1st Machine
Cost 40,000
Less: Depreciation (4000+5400+2295) 11,695
_________
28,305
Less: sale proceeds 28,000
______
Loss on sale 305
_______

Loss on sale of 2nd Machine

Cost 10,000
Less: Depreciation (750+1388+590) 2728
_________
7272
Less: sale proceeds 2000
______
5272
Loss on sale

Sol 16:
Machinery A/c
Dr Cr
Date Particulars Amt Date Particulars Amt
2014 To Bank( 1st Machine) 60,000 2014 By Depreciation 7,000
1st Jan To Bank ( 2nd Machine) Dec 31st ( 6000+1000)
1st July 20,000 By Balance c/d 73,000

4,80,000
80,000

To Balance b/d
2015 To Bank (3 nd Machine) 2015 By Depreciation
1st Jan 73,000 July 1st (2700) 2700
July 1st 40,000 By Bank 38,600
By P&L a/c (loss) 12,700
By Depreciation
Dec 31st (1900+2000) 3,900
By Balance c/d
55,100

1,13,000 1,13,000
To Balance b/d

By Depreciation
2016 55,100 2016 (1710+3800)
Jan 1st Dec 31 5,510
By Balance c/d
49,590

____________ ______
55,100 55,100
To Balance b/d ___________ _________

2017 49,590
Jan 1st

Loss on sale of 1st Machine

Cost 60,000
Less: Depreciation (6000+2700) 8,700
_________
51,300
Less: sale proceeds 38,600
______
Loss on sale 12,700
_______

Sol 17:
Machinery A/c
Dr Cr
Date Particulars Amt Date Particulars Amt

2010 To Bank 40,000 2010 By depreciation 5,000

1st (36,000+4000) 31st ( 4000 +1000 for 6/12m)
Jan Dec

Ist July To Bank 20,000 By Balance c/d

55,000
60,000
60,000

2011 2011 By Depreciation

1st To Balance b/d 55,000 31st ( 55,000 x 10%) 5,500
Jan Dec By Balance c/d
49,500

55,000
55,000
2012 By Depreciation
1st To Balance b/d 49,500 2012 (1620+1710+3200)
Jan 31st By Bank 6530
1st July Dec By P&La/c(loss)
By Balance c/d 12,000
To Bank 64,000 18,780
76,190
 1,13,500

1,13,500
2013
1st
Jan To Balance b/d 76,190
Loss on sale of 1st Machine
Cost 40,000
Less: Depreciation (4000+3600 +1620) 9,220
_________
30,780
Less: sale proceeds 12,000
______
Loss on sale 18,780
_______

UNIT-5: FINAL ACCOUNTS

Trading A/c of---- for the year ended ----
1.
Particulars Amount Particulars Amount
To opening stock 12,000 By sales
To purchases Credit--- 100000
Credit—60000 Cash ----- 60000
Cash--- 50000 160000
110000 (-) S/R 600 159400
(-) P/R 400 109600 By Closing stock 42000
To Import duty 6000
To carriage inwards 3200
To clearoing charges 1000
To Gas, coal & water 14000
To Manufacturing exp 22000
To wages 20000
To Marine Insurance 4000
To Gross Profit c/d 9600
----------- 201400
201400 __________

By Gross profit b/d 9600

2. Profit & Loss A/c of ---- for the year ending -----.
Particulars Amount Particulars Amount
To salaries 18000 By Gross Profit b/d 92000
To Rent, Rates & Taxes 5000 By Commission Received 1500
To Depreciation on Machinery 8000
To Printing & stationery 2000
To Net Profit 60500
60500
______ _______
93500 93500

3. Balance sheet of ---as on -----

Particulars Amount Particulars Amount
Creditors 200000 Closing stock 50000
Loan 300000 Motor van 50000
Capital 500000 Good will 100000
Debtors 300000
Machinery 500000
100000 1000000

4. Cost of goods sold

Opening stock + purchases +direct expenses—Closing stock
=30000+118000+32000-30000=150000
5. Cost of goods sold
Opening stock + purchases – P/R-- Goods used by Proprietor(Drawings)+ wages - closing stock
=5000+50000-1000-200+4900-6000=52700
6. calculation of purchases
Particulars Amount Particulars Amount
To opening stock 10000 By sales 60000
To purchases X By closing stock 12000
 To direct expenses 8000
To gross profit 14000
72000 72000

Purchases = 72000-32000= 40000

7. Adjustment Entries
Date Paticulars L.F Debit (Rs) Credit(Rs)
1 Closing stock A/c ----- Dr 50000
To Trading A/c 50000
(Being Adjustment entry shown)
2 Expenses A/c--- DR 1000
To o/s expenses 1000
(Being outstanding expenses shown)_
Prepaid Expenses A/c—Dr
To Expenses A/c 1500
(Being Prepaid adjustment entry shown) 1500
Interest Accrued A/c—Dr
To Interest A/c
500
(Being Interest accrued adjustment
500
shown)
Premium A/c---Dr
To Premium received in advance A/c
2100
(Being premium received in advance
adjustment shown)
2100
Profit & Loss A/c ---Dr ‘
To Reserve for bad doubtful debts
(Being provision for bad debts adjustment
account shown) 500
500

Problem-8
Sundry Debtors = 50000
(-) Bad debts = 2000
48000
Provision of doubtful debts= 48000 * 5%= 2400
Bad debts A/c--- Dr 2000
To S. Debtors A/c 2000
(Being Bad debts incurred)
Profit & Loss A/c --- Dr 2400
To Provision for bad & doubtful debts A/c 2400
(Being P.BD.Debts shown)
Problem-9
Profit & Loss A/c of -----for the year ended 31/12/2020
Particulars Amount Particulars Amount
To Interest on loan By Interest on Investment
Paid 1500 Received 600
(+) o/s 500 (+) Receivables 600 1200
(20000*10%) 2000 (10000*12%= 1200)

Balance sheet of --- As on 31/12/2020

Particulars Amount Particulars Amount
Loan 20000 Investment 10000
(+) o/s Interest 500 20500 (+) Interest Receivables 600 10600
(20000*10%) (10000*12%)

Problem-10
a) Stock was not at all insured
Loss by Fire A/c--- Dr 10000
To Trading A/c 10000
(Being the above entry is passed whether it is insured or not)

Profit & Loss A/c --- Dr 10000

To Loss by fire A/c 10000
(Being goods destroyed by fire)
b) Stock was fully covered by Insurance
Insurance Company A/c--- Dr
To Loss by Fire A/c
 1) Loss of goods by Fire is shown on the credit side of trading A/c
2) Amount due from Insurance Company is shown on asset side of the Balance sheet.
C) Stock was partly covered by insurance and the claim of Rs. 1000 was accepted by the insurance company.
Insurance Company A/c---- Dr 1000
P& L A/c ----- Dr 9000
To Loss by Fire A/c 10000
(Being insurance company admit the loss and loss transferred to P& L A/c
Problem-1
Trading & Profit &Loss A/c of Kautilya &co for the year ended 31/3/2020t
Particulars Amount Particulars Amount
To opening stock 500 By Sales 25000
To Purchases 19500 (-) Returns inwards 650 24350
(-) Returns outwards 250 To 19250 By Closing Stock 12500
wages 1400
To carriage inwards 400
To Gross Profit c/d 15300
36850 36850

To Trade expenses 100 By Gross Profit b/d 15300

To insurance 550 By Commission received 200
To commission (Dr) 400
To Interest on capital 350
To Stationery 225
To Rent & taxes 550
To Carriage outwards 725
To Net Profit 12600
(Transferred to capital A/c)
15500
15500

Balance sheet of ----- as on 31/3/2020

Particulars Amount Particulars Amount
Bills Payable 1500 Bills Receivable 2250
Creditors 9825 S.Debtors 15000
Capital 8950 Cash in Hand 250
(+) Net profit 12600 21550 Cash at Bank 2375
Closing Stock 12500
Office Fixtures 500
32875 32875

Problem-2
Trading & profit & Loss A/c of M/s Kasthuri agencies for the year ending 31/12/2020
Particulars Amount Particulars Amount
To opening stock By sales 100000
To purchases 75000 By closing stock 32000
To wages 2000
(+) o/s wages 500 2500
To Gross profit c/d 29500 132000
132000 By Gross profit b/d 29500
By Commission Received 4500
To Establishment Expenses 15000 (-) Com. Rec. in adv 1300 3200
To insurance 1000 By interest 3000
(-) prepaid ins. 300 700 (+) acc. Interest 500 3500
To interest on loan 900 By interest on drawings 500
(+) o/s Interest 900 1800
To Interest on capital
To depreciation on building 10000
To Depreciation on furniture &
Fittings 375
To depreciation on motor Van
To Net Profit c/d 750
2500

5575
36700 36700

Balance sheet of M/s kasthuri agencies as on 31/3/2020

Particulars Amount Particulars Amount
Capital 100000 Buildings 15000
(+) Interest on cap 10000 (-) dep 2.5% 375 14625
 @10% 110000 Furniture 7500
(-) Drawings 18000 (-) dep 10% 750 6750
(+)Int. on Draw. 500 18500 Motor van 25000
91500 (-) dep 10% 2500 22500
(+) Net Profit 5575 97075 s. Debtors 28100
Loan from Hari @ 12% 15000 Accrued Interest 500
(+) o/s Int (15000*12%) 900 154900 Bank balance 20000
S.creditors 10000 Closing stock 32000
o/s wages 500 Prepaid Insurance 300
Commission received in advance
1300
124775 124775

Problem-3 Trading & profit & Loss A/c of shri charan Singh for the year ending 30th sep 2020
Particulars Amount Particulars Amount
To opening stock 26420 By sales 91230
To Purchases 42160 (-) S/R 1760 89470
(-) P/R 8460 33700 By closing stock 29390
To wages 21470
(+) o/s wages 530 22000
To carriage inwards 4370
To coal,gas & water 720
To Gross profit c/d 31650
118860 118860

To Salaries 4670 By Gross Profit b/d 31650

To Bank Charges 140 By Discount Rec 120
To Rent Rates &Taxes 840 By App. Premium 500
(-) Prepaid rates &taxes 240 600 (-) prepaid App.Prem 400 100
To trade expenses 1990 BY Accrued int, on Invst 3000
To intesest on capital 6000 By Int. on Drawings 300
To depreciation on Land & 625 By old Prov.for b.debts 2470
Building (-) New Prov.for b.debts 1890 580
To Depreciation on Plant & 1427
Machinery
To dep. on Funiture & fittings 125
To Fire Insurance 490
(-) Prepid Insurance 125 365
To Net Profit c/d 19808 35750
35750

Balance sheet of shri charan Singh as on 31/sep 2020

Liabilities Amount Assets Amount
Capital 120000 L&B 25000
(+) Int. on cap 6000 (-) Dep 2.5% 625 24375
126000 P& M 14270
(-) Drawings 6480 (-) Dep 10% 1427 12843
(+) Int on Dr. 300 6780 Fur & Fitt 1250
119220 (-) Dep @10% 125 1125
(+) Net Profit 19808 139028 B/R 1270
s.creditors 12170 Invst 30000
unexpired premium 400 (+) Int on Invst 3000 33000
o/s wages 530 S.Drs 37800
(-)PBDDebts 5% 1890 35910
Cash at bank 13000
Cash in hand 850
Prepaid fire Insurance 125
Prepaid /unexpired Rates &
Taxes 240
152128 Closing stock 29390
152128

Problem-4
Trading & Profit & Loss A/c of shri shekar for the year ending 31/3/2020
Particulars Amount Particulars Amount
To opening stock 8000 By sales 30500
To purchases 20000 (-) S/R 1500 29000
To wages 1200 By closing stock 7000
 (-) o/s wages 200 1400
To Gross profit c/d 6600
36000 36000

To Interest on capital 1200 By Gross Profit b/d 6600

To salary 4200 By discount 1900
(+o/s salary 200 4400 By discount on creditors 100
To Rent 350 By Net Loss(transferred to cap 390
To bad debts 400 A/c)
(+) New Prov.for 700 1100
Bad D.Debts
To Discount 700
To Insurance 400
(-) Prepaid Ins 60 340
To trade expenses 300
To printing 150
To depreciation on machinery
To dep. on furniture 250
200
8990 8990

Balance sheet of shri.shekar as on 31/3/2020

Liabilities Amount Assets Amount
Capital 24000 Furniture 2000
(+) Int on cap @ 5% 1200 (-) Dep 10% 200 1800
25200 Machinery 5000
(-) Drawings 4500 (-) Dep 5% 250 4750
20700 Sundry debtors 14000
(-) Net Loss 390 20310 (-) P.B.D.Debts@ 5% 700 13300
S.creditors 10000 Cash in hand 260
(-) Dis on crs@1% 100 Cash at Bank 5940
Bills payable 9900 Closing stock 7000
o/s wages 2500 Prepaid Insurance 60
o/s salary 200
200
33110__ 33110

Problem-5:
Trading & profit & Loss A/c of --- for the year ending 31/12/2014
Particulars Amount Particulars Amount
To opening stock 12000 By sales 21000
To purchases 15750 (-) S/R 800 20200
To freight 265 By closing stock 22500
To carriage inwards 250
To gross profit c/d 14835 ______
42700 42700
To salaries 1572 By Gross profit b/d 14835
To rent & taxes 526 BY Discount Rec. 110
To travelling expenses 387
To discount allowed 225
To commission paid 108
To Net Profit 12127 __________
14945___________ 14945

Balance sheet of ------ as on 31/12/2014

Liabilities Amount Assets Amount
Capital 28500 Bank balance 6147
(-) Drawings 4500 S.Debtors 6680
24000 B/R 8000
(+) NP 12127 36127 Closing stock 22500
Trade creditors 5200 43327
B/P 2000
43327

Problem-6
Trading & profit & Loss A/c of shri Ram for the year ending ---------
Particulars Amount Particulars Amount
To opening stock 21000 By sales 243000
To purchases 10000 By closing stock 60000
To wages 21400
To carriage inwards 700
To gross profit c/d 159900 ______
303000 303000
To Insurance 600
(-) unexpired insurance 280 320 By Gross profit b/d 159900
To Trade expenses 2050 BY Discount Rec. 5350
To Bad debts 6120
To Rent , Rates & Taxes 3100
(+) o/s Rent 120 3220
To Salaries 3120
(+) o/s sal. 280 3400
To Dep.on loose Tools 2200
To Interest on cap 3750
To Discount 580
To Net Profit (transferred to cap a/c) 143610 __________
165250____ 165250

Balance sheet of shri Ram as on --------

Liabilities Amount Assets Amount
Capital 75000 FHP 70000
(+) Int on cap @ 5% 3750 Loose Tools 11200
78750 (-) Dep 2200 9000
(+) NP 143610 222360 P& M 91000
Debtors 36400
Trade creditors 40000 Cash at bank 22000
B/P 6800 B/R 10800
o/s salaries 31200 Cash in hand 1280
o/S Rent 280 Un expired insurance 280
Mortgage loan 120 Closing stock 60000
300760
300760

Problem-7
Trading & profit & Loss A/c of --------- for the year ending 31/12/2013
Particulars Amount Particulars Amount
To opening stock 47000 By sales 128000
To purchases 50000 (-) Returns from cust.1000 127000
(-) Returns to cust. 1100 48900 By closing stock 50000
To Duty & Clearing charges 3500
To gross profit c/d 77600
______
177000 177000

To Salaries 9500 10000 By Gross profit b/d 77600

(+) o/s sal. 500 BY Com.Rec 4000
To Com.& Trav.Exp 4700 (-) com Rec. in Adv 600 3400
To General Exp 2500 By Interest Rec. 200
To Rent paid 2000
To dep. on Fixtures 850
To Interest on cap 2400
To Net Profit (transferred to cap a/c) 58750 _______
81200___ 81200

Balance sheet of ------as on 31/12/2013

Liabilities Amount Assets Amount
Capital 30000 Fixtures & Fittings 8500
(+) Int on cap @ 8% 2400 (-) Dep @ 10% 850 7650
32400 S.Debtors 51000
(-) Drawings 6000 B/R 5000
26400 Loan advanced to Deepak & co 12000
(+) NP 58750 85150 Cash in hand
Trade creditors 43000 Closing stock 900
Overdraft with CBI 6000 Interest accrued 50000
o/s salaries 500 Cash at SBI 200
Com.Rec.in adv 600 12500
 139250 300760

Problem-8 Profit & Loss A/c of Mr.Sudhir for the year ending 31/03/2020
Particulars Amount Particulars Amount
To Rent , Rates & Taxes 9300 By Gross Profit b/d 61500
To salaries 19600 BY Commission 3000
To insurance 800 By Discount on S.Crs 800
To interest on loan 600
(+) o/s int. on loan 600 1200
To Bad debts 500
To New Prov. 2500
(-) Old Prov. 2000 500 .
To Dis. On S.Drs 950
To Dep. on Furniture 1200
To dep on Machinery 2840
To Net Profit(transferred to cap A/c) 28410
________ ______
65300 65300

Balance sheet of Mr.Sudhir as on 31/03/2020

Liabilities Amount Assets Amount
Capital 100000 Fixtures & Fittings 12000
(-) Drawings 12000 (-) Dep @ 10% 1200 10800
88000 Machinery 28400
(+) NP 28410 (-) Dep 10% 2840 25560
Trade creditors S.Debtors 50500
Overdraft with CBI 85150 (-) Bad debts 500
o/s salaries 43000 50000
Com.Rec.in adv 6000 (-) P.B.D.Debts @ 5% 2500
500 47500
600 (-) Dis on Drs @ 2% 950 46550
Cash in hand 2200
Closing stock 68500
Cash at bank 10400
Suspense /c 4200
139250 139250

Problem-9
Trading & profit & Loss A/c of Harshit for the year ending 31/12/2020
Particulars Amount Particulars Amount
To opening stock 65000 By sales 220000
To purchases 182000 (-) Returns from cust.2000 218000
(-) Returns to cust. 10000 181000 By closing stock 14000
To wages & Salaries 21300 By Gross Loss C/d 37300
To Freight & Duty 2000
______
269300 269300
To Gross Loss b/d 37300
To Insurance 700 By Rent by subletting Premises 1600
To carriage o/w 500 By Net Loss (Transferred to cap
To trade exp 800 A/c) 59500
To Printing & Stationery 400
To Rent , Rates & Taxes 4800
To Postage 600
To New Prov. 1500 700
(-) old Prov. 800
To Bad debts 600
To Dep. on Furniture 250
To Dep. on MAchinery 14500 _______
cap a/c) 61550
61550__

Balance sheet of Harshit as on 31/03/2020

 Liabilities Amount Assets Amount
Capital 180000 Plant & Mac 70000
(-) Drawings 6000 (+) 5000
174000 75000
(-) Net Loss 59550 114450 (-) Dep
Trade creditors 20000 (70000*20%=14000
5000*20%*6/12=500)14500 60500
Furniture 5000
(-) dep @5% 250 4750

Debtors 30600
(-) Bad debts 600
30000
(-) R.B.D.Debts@5% 1500 28500
Cash in hand 6200
Cash at Bank 20500
Closing stock 14000

134450 134450

Problem-10 Trading & Profit & Loss A/c of XYZ for the year ending 31/3/2020
Particulars Amount Particulars Amount
To opening stock 60000 By sales 354000
To purchases 120000 (-) Returns from cust.2000 352000
(-) P/R 1500 118500 By closing stock 70000
To manufacturing .wages 20000
To Carriage inwards 1500 __
To gross profit c/d 222000
____
422000 422000
_________ By Gross profit b/d 222000
To Discount 700 By Dis. Received. 1600
To bank charges 150 BY Old Prov. 1050
To salaries 13600 (-) New Prov. 1000 50
To carriage outwards 2400
To rent ,Rates & taxes 20000
To advertisement 4000
To dep. on P & M 19200
To Int on Cap 10000
To General reserve 7680
(153000*5%)
To Net Profit (transferred to cap a/c) 145920
_______
223650 223650

Balance sheet of XYZ as on 31/03/2020

Liabilities Amount Assets Amount
Capital 100000 Plant & Mac 160000
(+) Int on cap @ 10% 10000 (-) Dep @ 12% 19200 140800
110000 S.Debtors 90000
(+) NP 145920 255920 (-) PBDDebts 1000 89000
Trade creditors 50000 Cash in hand 1800
General Reserve 7680 Closing stock 70000
Cash at bank 12000

313600 313600

Problem-11 Trading & Profit & Loss A/c of ---- for the year ending 31/12/2020
Particulars Amount Particulars Amount
To opening stock 20500 By sales 140500
To purchases 68000 By closing stock 27000
To carriage inwards 1500 By loss by fire 10000
To fac.rent 4000
To manufacturing exp 1500
To wages 21500
To Gross profit c/d 60500
177500 177500
To salaries 16000 By Gross Profit b/d 60500
To insurance 1200
(-) Prepaid 300 900
To Rent 2000
To general exp
 To prov. D.Debts 5400
Bad debts 500
New Prov. 1150
1650
(-) old Prov. 1000
To dep. on Machinery 650
To dep. on furniture 1400
1000
4000
27450
60500 60500

Balance sheet of _____ as on 31/12/2013

Liabilities Amount Assets Amount
Capital 60000 Cash in hand 500
+) NP 27450 Closing stock 27000
87450 Cash at bank 2200
(-) Drawings 7200 80250 B/R 5300
Trade creditors 14300 Prepaid Insurance
B/P 4200 Debtors 23500
(-) Bad debts 500
23000
98750 (-) Bad debts Prov. 1150 21850
Amount due from Insurance
company 6000
Furniture 10000
(-) Dep 1000 9000
Machinery 28000
(-) Dep 1400 26600
98750

Problem-12
Trading & Profit & Loss A/c of --------- for the year ending 31/3/2020
Particulars Amount Particulars Amount
To opening stock 2920 By sales 23812
To purchases 20724 (-) Returns from cust. 420 23392
(-) R/O(P/R) 582 20142 By closing stock 3400
To gross profit c/d 3730
26792 26792
To dep on Mac. 190 By Gross profit b/d 3730
To sundry exp. 880 By Dis. Received. 120
To Rent 240 By App. Premium 240
(+) o/s Rent 80 320 (-) Carried Forward 40 200

To Rates & Taxes 400

(-) Taxes paid in advance 60 340
To Bad debts 344
To New Prov. 320
(-) old Prov. 210 110
To interest on capital 425
To Net profit c/d 1441
4050 _______
4050

Balance sheet of Raghavendra as on 31/12/2020

Liabilities Amount Assets Amount
Mohan’s Capital 8500 Machinery 1900
(-) Mohan’s Drawings 1420 (-) Dep 10% 190 1710
7080 S. Debtors 6400
(+) Int on Cap @5% 425 (-) PBDD @ 5% 320 6080
7505 Taxes paid in adv. 60
(+) NP 1441 8946 Cash at office 96
S.Creditors 2000 B/R 480
o/s Rent 80 Closing stock 3400
App Premium 40
Bank OD 400
B/P 360
11826 11826
Problem-13
Trading & Profit & Loss A/c of Vishwanath for the year ending 31/3/2016
Particulars Amount Particulars Amount
To opening stock 35000 By sales 200200
To purchases 120000 By closing stock 40000
To wages 16000
(+)O/s wages 3000 19000
To gross profit c/d 66200
240200 240200
By Gross profit b/d 66200
To salaries 20000
(+) o/s salaries 4000 24000
To Rent & taxes 10000
(+) o/s rent 2000 12000
To new reserve 1250
(-) old Reserve 1000 250
To dep. on Furniture 1500
To dep.on Machinery 3000
To Net Profit (transferred to cap a/c) 25450 _______
66200 66200
Balance sheet of Vishwanath as on 31/3/2016
Liabilities Amount Assets Amount
S.creditors 24000 Cash in hand 1200
B/P 22000 Debtors 50000
O/S salaries 4000 (-) Res. for bad debts 1250 48750
o/s Rent 2000 B/R 20000
o/s Wages 3000 Closing stock 40000
capital 100000 Furniture 15000
(+) Net Profit 25450 125450 (-) Dep 1500 13500
Plant & Machinery 60000
(-) Dep 3000 57000
180450 180450

Problem-14
Trading & Profit & Loss A/c of shri Madhav for the year ending 31/12/2015
Particulars Amount Particulars Amount
To opening stock 20500 By sales 140500
To purchases 68000 (-) Included drawn 500 140000
(-) Drawings 500 67500 for self 2700
To Manufacturing wages 21500 By closing stock
To Manufacturing Exp. 1500
To carriage inward 1500
To factory Rent 4000
To gross profit c/d 26200
142700 142700
To General Expenses 5400 By Gross profit b/d 26200
To office Rent 2000 By Net Loss (transferred to cap 3750
To Insurance 1200 a/c)
(-) Prepaid 300 900
To salaries 16000
To Carriage outwards 1700
To Bad debts 500
To prov. For doubtful debts 150
To Dep on Machinery 2800
To Dep. on Furniture 500 _______
29950 29950
Balance sheet of shri Madhav as on 31/12/2015
Liabilities Amount Assets Amount
S.creditors 14300 Cash at bank 4700
B/P 4200 Prepaid Insurance 300
capital 60000 B/R 3300
(-) Net Loss 3750 S.Debtors 23500
56250 (-) Bad debts 500
(-) Drawings 7200 49050 23000
(-) PBDDebts 1150 21850
Closing stock 2700
Furniture 10000
(-) Dep 500 9500
Machinery 28000
(-) Dep 2800 25200
 67550 67550

Problem-15
Trading & Profit & Loss a/c of Mr. Rangoli for the year ended 31st December 2015
Particulars Amount Particulars amount

To opening stock 21000 By sales 243000

To purchases 100000 By closing stock 60000
To wages 21400
To carriage inwards 700
To Gross profit c/d 159900 303000
303000
To salaries 3120 By Gross profit b/d 159900
(+)o/s salaries 280 3400 By discount received 350
To Rent, Rates 2600
(-) o/s Rent 120 2720
To Trade expenses 300
To interest 500
To Bad debts(old) 1120
To Insurance 600
(-) prepaid 180 420
To new P.B.Debts 1820
4000
To interest on capital 2200
To Loose tools written off 1750
To repairs 580
To Discount allowed 141440
To new profit(transferred to cap
160250 160250
a/c)

Balance sheet as at 31/12/2015

Liabilities Amount Assets Amount
Creditors 31200 Cash in hand 1120
Bills Payable 6800 Cash at Bank 22000
Outstanding expenses B/R 10800
Salaries 280 S.debtors 36400
Rent 120 400 (-) RBDD 1820 34580
Mortgage loan 40000 Closing stock 60000
Capital 80000 Prepaid insurance 180
(-) Drawings 5000 Suspense a/c(Dr. Bal) 160
_________ Free hold Land 70000
75000 Plant & Machinery 91000
(-) Net Profit 141400 Loose tools 9000
(+) Interest on cap 4000 220440
298840 298840

Problem-16
Trading & Profit & Loss a/c of Mr. Raju for the year ended 31st December 2015
Particulars Amount Particulars Amount

To Purchases 90000 By sales 231700

(-) overvaluation 1000 89000
Of opening stock 14400
To wages 750
To carriage inwards 1247550
To Gross profit c/d 231700 ____________
231700
To over casting of opening 1000 By Gross profit b/d 127550
stock
To salaries 11000 20000
(-) o/s salaries 9000

To carriage outwards 1000

To Bad debts 950
(+)New Prov. 1265
2215 1865
(-) Old Prov. 350 1750
To postage & Stationery
To General charges 1500
To interest on capital 3500
29615
To Reserve 2448
 To Net profit(transfer to
capital a/c) 95487 97935
127550
------------- 127550

Balance sheet as at 31/12/2015

Liabilities Amount Assets Amount
O/s salaries 9000 Cash in hand 800
S.creditors 10000 Cash at Bank 5300
B/P 5000 B/R 5000
Reserve (20000+2448) 22448 S.debtors 50660
Capital 70000 (-) RBDD 1265 49335
(-) Interest on Capital 3500 Closing stock 30000
(-) Net Profit 95487 168987 Plant & Machinery 75000
Free hold Premises 50000
225435 225435

Problem- 17
Trading & profit & Loss A/c of shri chandra shekar for the year ended 31/3/2016
Particulars Amount Particulars Amount

To opening Stock 8000 By sales 30500

To purchases 20000 (-) Returns 1500 29000
To wages 1200 By Closing stock 7000
(-) o/s wages 200 1400
To Gross Profit c/d 6600
36000 36000
To salaries 4200
(+) O/s Salaries 200 4400 By Gross Profit b/d 6600
To Rent 350 By Discount(1900-700) 1200
TO Bad Debts 400 By Reserve for discount on crs@ 100
To Insurance 400 1%
(-) Prepaid 60 340 By Net Loss (transferred to 390
TO Trade Expenses 300 capital a/c)
To Printing 150
To Int on Cap @ 5% 1200
To Dep. on Mac 250
To Dep. On Furn. 200
To Prov. For D.Debts 700 ________
8290 8290

Balance sheet of chandra sekhar as on 31/3/2016

Particulars Amount Particulars Amount
S.creditors 10000 Cash in hand 260
(-) Reserve for discount on crs Cash in Bank 5940
100 9900 S.Debtors 14000
B/P 2500 (-) P.B.D.Debts 700 13300
O/s Expenses Closing Stock 7000
Salary 200 Prepaid Insurance 60
Wages 200 400 Machinery 5000
Capital 24000 (-) Dep 250 4750
(+) Int on cap 1200 Furniture 2000
25200 (-) Dep 200 1800
(-) Net Loss 390
24810
(-) Drawings 4500 20310 33110
33110

Problem-18
Trading & profit & Loss A/c of shri Raj kumar for the year ended 31/3/2016
Particulars Amount Particulars Amount

To opening Stock 44000 By sales 300000

To purchases 220000 (-) Returns 4000 296000
To Carriage on Purchases 3600 By Stock destroyed by fire 10000
Gross Profit c/d 78520 By Closing stock 40120
346120 346120

To salaries 18000 By Gross Profit b/d 78520

To Taxes & Insurance 4000 By Rent 2000
(-) unexpired 400 3600 By Discount 4000
 To General expenses 8000
To commission 4400
To Discount 3200
To Bad debts 1600
To Stock destroyed by fire 10000
To Prov.for Doubtful debts
(5% of 36000) 1800
To Depreciation on Buildings 2000
To Depreciation on Furniture 500
To Interest on capital@ 5% 3000
To Net Profit transferred to capital A/c
28420 ________
84520 84520

Balance sheet of Raj kumar as on 31/3/2016

Particulars Amount Particulars Amount
S.creditors 27600 S.Debtors 36000
Bank Over draft 8400 (-) P.B.D.Debts 1800 34200
Capital 60000 Closing Stock 40120
(-) Drawings 10000 unexpired Insurance 400
50000 Buildings 40000
(+) Int on cap 3000 (-) Dep 2000 38000
53000 Furniture 5200
(+) Net Profit 28420 81420 (-) Dep 500 4700
117420 117420

Problem-19 Trading & Profit & Loss A/c of ---- for the year ending 31/12/2013
Particulars Amount Particulars Amount
To opening stock 27180 By sales 122040
To purchases 29860 (-) sales Returns 3500 118540
(-) P/R 5000 By closing stock 15000
24860 By Goods Destroyed by Fire 6000
(-) Drawings 1000 23860
To manufacturing Exp 7840
To wages 8000
To gross profit c/d 72660 ____
139540 By Gross profit b/d 139540
_________ By Comm.Recd 2870 72660
To salaries 4340 (-) Receivables 600
To postage & Telegram 540 3470
To Rent 950
To Stationery & Print. 860
To General Exp 170
To Loss by Fire 1000
To bad debts 1500
+ new prov 2400
3900
(-) old Prov. 3000 900
To dep on Mac. 4500
To Good will written off 10000
To Int. on Mortg.
Paid 1125
(-) o/s 1125 2250

To Net Profit (transferred to cap a/c) 50620

_______
76130 76130
Balance sheet of -----as on 31/12/2013
Liabilities Amount Assets Amount
Capital 50000 Cash in hand 860
(+) NP 50620 B/R 13795
100620 Debtors 48000
(-) Drawings 1000 99620 (-) P.B.D.Debts 2400 45600
Trade creditors 10960 Closing stock 15000
B/P 8150 Amt. due from Insurance Co. 5000
Mortgage Comm.Receivable 600
Loan 45000 Machinery 55500
(+) o/s int. 1125 46125 Goodwill 40000
Wages o/s 1500 (-) Written off 10000 30000

166355 166355
Problem -20
Provision for Bad debts A/c
Date Particulars Amount(Rs) Date Particulars Amount(Rs)

2015 To Bad debts A/c 800 2015 By Balance b/d 4550

Dec.31 To Profit & Loss Jan .1
850
A/c(Bal.fig)
To balance c/d 2900
(5% on 50000)
4550 4550
2016 2016 By Balance b/d
1500 2900
Dec.31 To Bad Debts A/c Jan.1 By Profit & Loss A/c 600
Dec.31 To Balance c/d 2000 Dec.31
(5% on 40000)
3500 3500