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Problem : 1

Show that the accounting equation is satisfied after taking into


consideration each of the following transactions in the books of Mr. N
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Started business with capital 1,00,000


Bought furniture 25,000
Bought goods for cash 20,000
Bought goods from Ram on Credit 5,000
Sold goods for cash for 15,000
Sold goods to Shyam on credit 8,000
Paid cash to Ram 4,000
Received cash from Shyam 5,000
Paid Cash into Bank 25,000
Withdrawn from bank 10,000

Problem : 2
Following are the accounting transactions relating to Mr. P's business.
Use the accounting equation to show their effect on his assets,
liabilities and capital.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Commenced business with a Capital of 50,000


Bought Machinery for cash 10,000
Purchased goods for cash 15,000
Purchased goods from A on credit 5,000
Sold goods for cash 10,000
Paid to A 2,000
Sold goods to B on credit 3,000
Paid into Bank 6,000
Paid to A by cheque 1,000
Received from B a cheque for 2,000

Problem : 1
Record the
ledger and
Oct 1^st
3^rd :
4^th :
5^th :
7^th :
9^th :
10^th
11^th
12^th
14^th
15^th
16^th
17^th
18^th

following transactions in the Journal and post them into


prepare a Trail Balance
:
Neel started business with a capital of 80,000
Bought goods from Karl on credit 20,000
Sold goods to Tarl 25,000
Cash purchases 25,000
Cash sales 15,000
Goods retuned to Karl 2,000
:
Bought furniture for 15,000
:
Cash paid to Karl 12,000
:
Goods returned by Tarl 3,000
:
Goods taken by Neel for personal use 3,000
:
Cash received from Tarl 12,000
:
Took loan from Parl 30,000
:
Salary paid 5,000
:
Bought stationery for 1,000

19^th
20^th

:
:

Amount paid to Parl on loan account 18,000


Interest received 4,000

Problem : 2
Enter the following transactions in the Journal and post them into
ledger and from the information obtained prepare a Trail Balance.
Nov 10^th :
Mr. Roy started business with 60,000
11^th
:
Bought furniture from Modern Furniture for 10,000
12^th
:
Purchased goods for cash 15,000
13^th
:
Purchased goods from B. Sen & Co for 30,000
14^th
:
Opened a bank account by depositing 16,000
16^th
:
Sold goods for cash 15,000
17^th
:
Purchased stationery for 1000 from Bharat Stationery Mart
18^th
:
Sold goods to Zahir Khan for 10,000
19^th
:
Bought machinery for 6,000 and payment made by cheque
20^th
:
Goods returned by Zahir Khan for 2,000
21^st
:
Payment to B.Sen & Co by cheque 5,000
22^nd
:
Withdrew from bank for personal use 3,000
23^rd
:
Interest paid through cheque 2,000
24^th
:
Withdrew from bank for office expenses 10,000
26^th
:
Cheque received from Zahir Khan 5,000
27^th
:
Paid electricity bill for 100
29^th
:
Cash sales for 6,000
30^th
:
Commission received by cheque 5,000
Problem : 1
Journalise the following transactions by combining the related
transactions into a compound entry, post them into the ledger and
prepare a trial balance
July 1^st :
Ajit started business by investing
Cash
Goods and
Furniture
**
3,00,000
1,00,000
50,000
3^rd :
Purchased building
1,00,000
3^rd :
Purchased goods for cash
30,000
3^rd :
Purchased goods on credit from Sujit
25,000
3^rd :
Sold goods for cash
25,500
5^th :
Sold goods for cash to Avtar
24,000
5^th :
Sold goods to Mahendra on credit 40,650
5^th :
Deposited cash into bank
32,000
6^th :
Withdrew from bank for office use 15,000
8^th :
Withdrew from bank for private use
5,000
10^th
:
Paid freight
1,200
10^th
:
Paid cartage
2,000
10^th
:
Paid salary
14,600

Problem : 2
Surendra commenced business on 1^st March, 20_5. His transactions for
the month are given below. Record them in the journal, post into the
ledger and prepare a trial balance at the end of the month.
Mar 1^st
:
Started business with
out of which paid into bank **
80,000
20,000
5^th :
Bought goods of Ram Chand
12,000
5^th :
Bought goods from Ramesh & Co.
10,000
7^th :
Sold goods to Rajesh
8,000
7^th :
Sold goods to Mahesh Chand
10,000
10^th :
Received cheque from Rajesh 6,800
discount allowed 200
12^th
:
Paid into bank
8,000
14^th
:
Paid to Ramesh & Co. 9,000
discount received 200
17^th
:
17^th
:
17^th
:
21^st
:
25^th
:
discount 200
26^th
:
his account
27^th
:
28^th
:
31^st
:
31^st
:
31^st
:

Sold goods to Jagdish 7,200


Sold goods to Rajesh
2,600
Sold goods to Mahesh Chand
6,500
Payment received by cheque from Jagdish
Paid to Ram Chand by cheque 6,800

5,200

Received cheque from Jagadish Chand in full settlement of


1,800
Mahesh Chand returned goods not up to the sample
2,000
Bought goods for cash 15,000
Paid wages in cash
1,000
Paid office expenses in cash
5,000
Paid salaries for the month 12,500

Problem : 1
Journalise the following transactions.
Jun 5^th
:
Acquired the running business of Max, for cash 50, 000 by
taking over the following assets and liabilities at values stated
against them:
Stock of Goods 15,000; Cash 25,000; Furniture 10,000; Debtors 7,000;
Machinery 8,000 & Creditors 15,000.
6^th :
Opened a bank account with 5,000
7^th :
Bought goods worth 6, 000 from Usha & Co. & paid half the
amount in cash.
8^th :
Sold to Bee & Co. goods worth 5,000 and a cheque received for
the due
14^th
:
Sold private car for 4,000 and bought a new one for
business

with the proceeds plus 5,000 from office cash.


16^th
:
Bought furniture worth 4,000 of which, those worth 1,000
are
for office use and the balance for stock.
18^th
:
Sold goods to Arial & Co. 8,000 and to Wheel & Co. 7,000
19^th
:
Payment made to Creditors 4,500
20^th
:
Cash received from Debtors 5,800
25^th
:
Paid Rent by cheque 2,500
30^th
:
Commission received 3,000
Problem : 2
Mr. Madhav acquired the business of Mr. Gowrav on 1^st April, 20_5.
Record the following transactions in the journal and post them into the
ledger of Mr. Madhav. Also prepare a trial balance as on that date.
Apr 1^st
:
Debit Balances on the date of acquisition:
Cash in hand 8,000, Cash at Bank 25,000, Stock of goods 20,000,
Furniture 2,000, Buildings 10,000. Sundry Debtors Vijay 2,000, Anil
1,000 & Madhu 2,000.
Credit Balances on the date of acquisition:
Sundry creditors Anand 5,000, Loan from Bablu 10,000
Following were further transactions in the month of April, 20_5;
4^th :
Sold household furniture for 2,000 and paid the money into
business cash.
5^th :
Cash received from Vijay 1,980 in full settlement of his
account.
6^th :
Paid landlord 1,200 for rent. One third of the premises is
occupied by the proprietor for his own residence.
7^th :
Goods sold to Anil for 3,000 and to Madhu for 5,000
8^th :
Sold some furniture for 1,300 (proceeds being received as 700
by cheque and balance in cash)
11^th
:
Interest received from Madhu 200.
12^th
:
Paid to Bablu towards interest 500
13^th
:
Sold goods for cash 5,000.
14^th
:
Cash paid to Anand 2,000
15^th
:
Withdrew goods from business for personal use 2,000.