Financial Accounting - I – MGT101 VU

Lesson # 10

EXERCISES- RECORDING OF TRANSACTIONS

Transactions of Ali Traders for the month of January:

No. Date Particulars
01 Jan 01 Started business with Rs. 200,000 in cash.
02 Jan 01 Opened a bank account and deposited Rs. 195,000 in it.
03 Jan 02 Paid for furniture Rs. 15,000 through cheque.
04 Jan 03 Paid for vehicle Rs. 50,000 through cheque.
05 Jan 05 Bought goods on credit from Mr. A for Rs. 50,000.
06 Jan 06 Sold goods for cash Rs. 60,000.
07 Jan 08 Purchased goods for cash Rs. 20,000.
08 Jan 10 Returned goods of Rs. 10,000 to Mr. A.
09 Jan 12 Sold goods on credit to Mr. B for Rs. 40,000.
10 Jan 18 Mr. B returned goods of Rs. 5,000.
11 Jan 21 Paid through cheque to Mr. A Rs. 25,000.
12 Jan 25 Mr. B Paid through cheque Rs. 20,000.
13 Jan 31 Paid Salaries through cheque Rs. 5,000.
14 Jan 31 Accrued expenses for the month Rs. 20,000.
15 Jan 31 Deposited in bank Rs. 10,000.

01 – Started business with Rs. 200,000 in cash.

Cash Account Code 01
Date No. Narration Dr. Rs. Date No. Narration Cr. Rs.
01-01--- 01 Capital a/c 200,000

Capital Account Code 03

Date No. Narration Dr. Rs. Date No. Narration Cr. Rs.
01-01--- 01 Cash a/c 200,000

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02 – Deposited Rs. 195,000 in bank.
Bank Account Code 02
Date No. Narration Dr. Rs. Date No. Narration Cr. Rs.

01-01--- 02 Cash a/c 195,000

Cash Account Code 01

Date No. Narration Dr. Rs. Date No. Narration Cr. Rs.

01-01--- 02 Bank a/c 195,000

03 – Paid for furniture Rs. 15,000 through cheque.

Bank Account Code 02
Date No. Narration Dr. Rs. Date No. Narration Cr. Rs.

02-01--- 03 Furniture a/c 15,000

Furniture Account Code 04

Date No. Narration Dr. Rs. Date No. Narration Cr. Rs.

02-01--- 03 Bank a/c 15,000

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Financial Accounting - I – MGT101 VU
04 – Paid for vehicle Rs. 50,000 through cheque.
Vehicle Account Code 05
Date No. Narration Dr. Rs. Date No. Narration Cr. Rs.

03-01--- 04 Bank a/c 50,000

Bank Account Code 02

Date No. Narration Dr. Rs. Date No. Narration Cr. Rs.

03-01--- 04 Vehicle a/c 50,000

05 – Bought goods on credit from Mr. A Rs. 50,000.

Purchases Account Code 06
Date No. Narration Dr. Rs. Date No. Narration Cr. Rs.

05-01--- 05 Mr. A 50,000

Mr. A (Creditor) Account Code 07

Date No. Narration Dr. Rs. Date No. Narration Cr. Rs.

05-01--- 05 Purchases a/c 50,000

Creditor

A person or organization to whom money is payable by the business is called a creditor.

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Financial Accounting - I – MGT101 VU
06 – Sold goods for cash Rs. 60,000.
Cash Account Code 01
Date No. Narration Dr. Rs. Date No. Narration Cr. Rs.

06-01--- 06 Sales a/c 60,000

Sales Account Code 08

Date No. Narration Dr. Rs. Date No. Narration Cr. Rs.

06-01--- 06 Cash a/c 60,000

07 – Purchased goods for cash Rs. 20,000.

Purchases Account Code 06
Date No. Narration Dr. Rs. Date No. Narration Cr. Rs.

08-01--- 07 Cash a/c 20,000

Cash Account Code 01

Date No. Narration Dr. Rs. Date No. Narration Cr. Rs.

08-01--- 07 Purchases a/c 20,000

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Financial Accounting - I – MGT101 VU
08 – Returned goods of Rs. 10,000 to Mr. A.
Mr. A (Creditor) Account Code 07
Date No. Narration Dr. Rs. Date No. Narration Cr. Rs.

10-01--- 08 Purchase return 10,000

Purchases return Account Code 06

Date No. Narration Dr. Rs. Date No. Narration Cr. Rs.

10-01--- 08 Mr.A 10,000

09 – Sold goods on credit to Mr. B for Rs. 40,000.

Sales Account Code 08

Date No. Narration Dr. Rs. Date No. Narration Cr. Rs.

12-01--- 09 Mr. B 40,000

Mr. B (Debtor) Account Code 09

Date No. Narration Dr. Rs. Date No. Narration Cr. Rs.

12-01--- 09 Sales a/c 40,000

Debtor

A person or organization from whom money is receivable by the business is called a debtor.

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Financial Accounting - I – MGT101 VU
10 – Mr. B returned goods of Rs. 5,000.

Sales return Account Code 08

Date No. Narration Dr. Rs. Date No. Narration Cr. Rs.
18-01--- 10 Mr. B 5,000

Mr. B (Debtor) Account Code 09

Date No. Narration Dr. Rs. Date No. Narration Cr. Rs.
18-01--- 10 Sales return 5,000

11 – Paid through cheque to Mr. A Rs. 25,000.

Mr. A (Creditor) Account Code 07

Date No. Narration Dr. Rs. Date No. Narration Cr. Rs.
21-01--- 11 Bank a/c 25,000

Bank Account Code 02

Date No. Narration Dr. Rs. Date No. Narration Cr. Rs.
21-01--- 11 Mr. A 25,000

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12 – Mr. B Paid through cheque Rs. 20,000.

Bank Account Code 02

Date No. Narration Dr. Rs. Date No. Narration Cr. Rs.
25-01--- 12 Mr. B 20,000

Mr. B (Debtor) Account Code 09

Date No. Narration Dr. Rs. Date No. Narration Cr. Rs.
25-01--- 12 Bank a/c 20,000

13 – Paid Salaries through cheque Rs. 5,000.

Salaries Account Code 10

Date No. Narration Dr. Rs. Date No. Narration Cr. Rs.
31-01--- 13 Cash a/c 5,000

Bank Account Code 02

Date No. Narration Dr. Rs. Date No. Narration Cr. Rs.
31-01--- 13 Salaries a/c 5,000

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Financial Accounting - I – MGT101 VU
14 – Accrued expenses for the month Rs. 20,000.

Expenses Account Code 11

Date No. Narration Dr. Rs. Date No. Narration Cr. Rs.
31-01--- 14 Cash a/c 20,000

Accrued Expenses / Expenses Payable Account Code 12

Date No. Narration Dr. Rs. Date No. Narration Cr. Rs.
31-01--- 14 Accrued exp 20,000

15 – Deposited in bank Rs. 10,000.

Bank Account Code 02

Date No. Narration Dr. Rs. Date No. Narration Cr. Rs.
31-01--- 15 Cash a/c 50,000

Cash Account Code 01

Date No. Narration Dr. Rs. Date No. Narration Cr. Rs.
31-01--- 15 Bank a/c 10,000

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Financial Accounting - I – MGT101 VU
Bank Account

Bank Account Code 02

Date No. Narration Dr. Rs. Date No. Narration Cr. Rs.
01-01--- 02 Cash a/c 195,000 02-01--- 03 Furniture a/c 15,000
25-01--- 12 Mr. B 20,000 03-01--- 04 Vehicle aic 50,000
31-01--- 15 Cash a/c 10,000 21-01--- 11 Mr. A 25,000
31-01--- 13 Salaries a/c 5,000
Balance 130,000

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