Class Questions Solved

Following are the transactions extracted from the books of M/s Rohni prepare journal, post them
into ledger accounts and then prepare trial balance as on 30th April 2014.
April 1 Started business with cash ` 2,00,000
April 2 Purchased goods for cash ` 30,000
April 5 Purchased goods from Rakesh ` 60,000
April 7 Bought Machinery ` 20,000
April 11 Sold goods to Sudhakar ` 30,000
April 12 Returned goods to Rakesh ` 8,000
April 16 Goods Returned by Sudhakar ` 2,000
April 18 Paid cash to Rakesh `40,000
April 20 Purchased goods from Gopal `20,000
April 22 Received Cash from Sudhakar ` 25,000
April 24 Sold goods to Mahesh ` 12,000
April 26 Goods drawn by the proprietor for personal use ` 3,000
April 28 Salary paid to Harish ` 5,000
April 30 Paid Trade Expenses ` 2,000
In the books of M/s Rohni

Journal
Date Amount ` Amount `
Particulars L.F. Dr. Cr.
1-Apr-14 Cash A/c Dr. 2,00,000
To, Capital A/c 2,00,000
(Being business started with cash)
2-Apr-14 Purchase A/c Dr. 30,000
To, Cash A/c 30,000
(Being goods purchased for cash)
To, Rakesh 60,000
(Being goods purchased on credit from Rakesh)
7-Apr-14 Machinery A/c Dr. 20,000
To, Cash A/c 20,000
Being Machinery purchased for cash)
11-Apr-14 Sudhakar Dr. 30,000
To, Sales A/c 30,000
(Being goods sold on credit to Sudhakar)
12-Apr-14 Rakesh Dr. 8,000
To, Return Outward A/c 8,000
(Being goods returned to Rakesh)
16-Apr-14 Return Inward A/c Dr. 2,000
To, Sudhakar 2,000
(Being goods returned by Sudhakar)
18-Apr-14 Rakesh Dr. 40,000
To, Cash A/c 40,000
(Being cash paid to Rakesh)
To, Gopal 20,000
(Being goods purchased on credit from Gopal)
22-Apr-14 Cash A/c Dr. 25,000
To, Sudhakar 25,000
Being cash received from Sudhakar)
24-Apr-14 Mahesh Dr. 12,000
(Being goods sold to Mahesh)
26-Apr-14 Drawing A/c Dr. 3,000

To, Purchases A/c 3,000
(Being goods draw by proprietor for personal use)
28-Apr-14 Salary A/c Dr. 5,000

To, Cash A/c 5,000
(Being salary paid for cash)
30-Apr-14 Trade expenses A/c Dr. 2,000
To, Cash A/c 2,000
(Being trade expenses paid)
Dr. Cash A/c Cr.

Date Particulars J.F. Amount Date Particulars J.F. Amount
1-Apr-14 To, Capital A/c 200,000 2-Apr-14 By, Purchase A/c 30,000
22-Apr-14 To, Sudhakar 25,000 7-Apr-14 By, Machinery A/c 20,000
18-Apr-14 By, Rakesh 40,000
28-Apr-14 By, Salary A/c 5,000
By, Trade expenses
30-Apr-14 A/c 2,000
30-Apr-14 By, Balance c/d 128,000
225,000 225,000
1-May-14 To Balance B/d 128,000
Dr. Capital A/c Cr.

30-Apr-14 To, Balance c/d 2,00,000 1-Apr-14 By, Cash A/c 2,00,000
2,00,000 2,00,000
1-May-14 By, Balance B/d 2,00,000
Dr. Purchase A/c Cr.

2-Apr-14 To , Cash A/c 30,000 26-Apr-14 By, Drawings A/c 3,000
5-Apr-14 To, Rakesh 60,000 30-Apr-14 By, Balance c/d 107,000
20-Apr-14 To, Gopal 20,000
110,000 110,000
1-May-14 To, Balance B/d 107,000
Dr. Return Inward A/c Cr.

16-Apr-14 To, Sudhakar 2,000 30-Apr-14 By, Balance c/d 2,000
2,000 2,000
Dr. Return Outward A/c Cr.

30-Apr-14 To, Balance c/d 8,000 12-Apr-14 By, Rakesh 8,000
8,000 8,000
1-May-14 By Balance B/d 8,000
Dr. Salary Ac Cr.

28-Apr-14 To, Cash A/c 5,000 30-Apr-14 By, Balance c/d 5,000
5,000 5,000
Dr. Trade expenses A/c Cr.

30-Apr14 To, Cash A/c 2,000 30-Apr-14 By, Balance c/d 2,000
2,000 2,000
. Drawing A/c Cr.

26-Apr-14 To, Purchase A/c 3,000 30-Apr-14 By, Balance c/d 3,000
3,000 3,000
1-May-14 To Balance B/d 3,000
Dr. Rakesh Cr.

12-Apr-14 To, Return Outward A/c 8,000 5-Apr-14 By, Purchase A/c 60,000
18-Apr-14 To, Cash A/c 40,000
30-Apr-14 To, Balance c/d 12,000
60,000 60,000
1-May-14 By, Balance B/d 12,000
Dr. Gopal Cr.

30-Apr-14 To, Balance c/d 20,000 20-Apr-14 By, Purchase A/c 20,000
20,000 20,000
Dr. Machinery A/c Cr,
20,000 20,000
Mahesh A/c
30-Apr-14 To, Balance c/d 12,000 24-Apr-14 By, Sales A/c 12,000
12,000 12,000
Dr. Sales A/c Cr.
30-Apr-14 To, Balance c/d 42,000 11-Apr 14 By, Sudhakar 30,000
24-Apr-14 By, Mahesh 12,000
42,000 42,000
Dr. Sudhakar Cr.

11-Apr-14 To, Sales A/c 30,000 16-Apr-14 By, Return Inward A/c 2,000
22-Apr-14 By, Cash A/c 25,000
30,000 30,000
Trial balance as on 30th April 2014
S. No. Name of accounts Amount ` Amount `

1 Cash 128,000
2 Capital 200,000
3 Purchase 107,000
4 Sales 42,000
5 Return Inward 2,000
6 Return Outward 8,000
7 Salary 5,000
8 Trade expenses 2,000
9 Drawing 3,000
10 Rakesh 12,000
11 Sudhakar 3,000
12 Gopal 20,000
13 Machinery 20,000
14 Mahesh 12,000
282,000 282,000
Illustration 3: The following balances existed in the books of M/s Mohit Traders on April 1st
2011. Assets: Cash ` 35,000, Bank ` 50,000, ` Stock 15,000, Furniture ` 25,000, Satyendra `
30,000 Liabilities: Bills payable ` 15,000, Suresh ` 20,000. Following transactions took place in
April 2015
April 1 Purchased goods from Suresh ` 10,000
April 2 Sold goods to Satyendra `20,000
April 5 Purchased goods for cash `5,000
April 7 Paid Rent ` 2,500 and Salary `4,000 by cheque
April 10 Paid Suresh ` 28,500 in full settlement of his clam
April 11 Purchased goods from Krishan ` 20,000 less 10% trade discount and 2% cash discount.
40% of the payment was made immediately by cheque
April 12 Sold to goods to Madan ` 3,000

April 15 Goods distributed as free sample ` 2,200
April 17 Cash ` 1,000 withdrawn by owner for personal use
April 20 Received ` 49,000 from Satyendra in full settlement and the payment
April 30 Madan becomes insolvent a dividend of 50 paise in rupee was received
In the Books of M/s Mohit Traders
Journal
Date Particulars L.F. Amount Amount
1-Apr-15 Cash A/c Dr. 35,000

Bank A/c Dr. 50,000
Stock A/c Dr. 15,000
Furniture A/c Dr. 25,000
Satyendra Dr. 30,000
To, Bills Payable A/c 15,000
To, Suresh 20,000
To, Capital A/c 1,20,000
(Being the assets and liabilities of the previous year brought forward)

To, Suresh 10,000
(Being goods purchased on credit from Suresh)
2-Apr-15 Satyendra Dr. 20,000

(Being goods sold on credit to Satyendra )

To, Cash A/c 15,000
(Being goods purchased for cash)
7-Apr-15 Rent A/c Dr. 2,500
Salary A/c Dr. 4,000
To, Bank A/c 6,500
(Being rent and salary paid by cheque)
10-Apr-15 Suresh Dr. 30,000
To, Cash A/c 28,500
To, Discount Received A/c 1,500
(Being payment made to Suresh by cash )
To, Bank A/c 7,056
To, Discount Received A/c 144
To, Krishan 10,800
(Being goods purchased on credit from Krishan )
12-Apr-15 Madan Dr. 3,000

To, Sales A/c 3,000
(Being goods sold on credit to Madan)
15-Apr-15 Advertisement A/c Dr. 2,200

To, Purchase A/c 2,200
(Being goods distributed as free samples)
17-Apr-15 Drawing A/c Dr. 2,000

To, Cash A/c 2,000
(Being cash withdrawn by owner for personal use)
20-Apr-15 Bank A/c Dr. 49,000
Discount Allowed A/c Dr. 1,000
To, Satyendra 50,000
(Being payment received from Satyendra by cheque)
30-Apr-15 Cash A/c Dr. 1,500
Bad debt A/c Dr. 1,500
To, Madan 3,000
(Being Madan become insolvent and a dividend of 50 paise in rupee was
received)
Dr. Cash A/c Cr.

1-Apr-15 To, Balance B/d 35,000 5-Apr-15 By, Purchase A/c 5,000
20-Apr-15 To, Satyendra 49,000 10-Apr-15 By, Suresh 28,500
30-Apr-15 To, Madan 1,500 17-Apr-15 By, Drawing A/c 1,000
85,500 85,500
Dr. Capital A/c Cr.

30-Apr-15 To, Balance c/d 120,000 1-Apr-15 By, Balance B/d 120,000
120,000 120,000
1-May-15 By, Balance B/d 1,20,000
Dr. Bank A/c Cr.

1-Apr-15 To, Balance B/d 50,000 7-Apr-15 By, Rent A/c 2,500
7-Apr-15 By, Salary A/c 4,000
11-Apr-15 By Purchase A/c 7,056
50,000 50,000
Dr. Stock A/c Cr.

1-Apr-15 To, Balance B/d 15,000 30-Apr-15 By, Balance c/d 15,000
15,000 15,000
Dr. Furniture A/c Cr.

1-Apr-15 To, Balance B/d 25,000 30-Apr-15 By, Balance c/d 25,000
25,000 25,000
Dr. Satyendra Cr.

1-Apr-15 To, Balance B/d 30,000 20-Apr-15 By, Cash A/c 49,000
By, Discount Allowed

2-Apr-15 To, Sales A/c 20,000 20-Apr-15 A/c 1,000
50,000 50,000
Dr. Bills Payable A/c Cr.

15,000 15,000
Dr. Purchase A/c Cr.

1-Apr-15 To, Suresh 10,000 15-Apr-15 By, Advertisement A/c 2,200
11-Apr-15 To, Bank A/c 7,056
11-Apr-15 Discount Received A/c 144
11-Apr-15 To, Krishan 10800
33,000 33,000
Dr. Sales A/c Cr.
12-Apr-15 By, Madan 3,000
23,000 23,000
Dr. Rent A/c Cr.
7-Apr-15 To, Bank A/c 2,500 30-Apr-15 By, Balance c/d 2,500
2,500 2,500
1-May-15 To, Balance B/d 2500
Dr. Salary A/c Cr.
7-Apr-15 To, Bank A/c 4,000 30-Apr-15 By, Balance c/d 4,000
4,000 4,000
Dr. Discount Received A/c Cr.
30-Apr-15 To, Balance c/d 1,644 10-Apr-15 By, Suresh 1,500
11-Apr-15 By, Purchase A/c 144
1,644 1,644
Dr. Krishan Cr.
30-Apr-15 To, Balance c/d 10,800 11-Apr-15 By, Purchase A/c 10,800
10,800 10,800
1-May-15 By Balance B/d 10,800
Dr. Madan Cr.

11-Apr-15 To, Sales A/c 3,000 30-Apr-15 By, Cash A/c 1,500
30-Apr-15 By, Bad debt A/c 1,500
3,000 3,000
Dr. Advertisement A/c Cr.

15-Apr-15 To, Purchase A/c 2,200 30-Apr-15 By, Balance c/d 2,200
2,200 2,200
1-May-15 To, Balance B/d 2200
Drawing A/c
1,000 1,000
Dr. Bad debt A/c Cr.

30-Apr-15 To, Madan 1,500 30-Apr-15 By, Balance c/d 1,500
1,500 1,500
Dr. Suresh Cr.

10-Apr-15 To, Cash A/c 28,500 1-Apr-15 By, Balance B/d 20,000
10-Apr-15 To, Discount Received A/c 1,500 1-Apr-15 By, Purchase A/c 10,000
30,000 30,000
Dr. Discount Allowed A/c Cr.

20-Apr-15 To, Satyendra 1,000 30-Apr-15 By, Cash A/c 1,000
1,000 1,000
Trial Balance as on 30th April 2015
S. No. Name of accounts Amount ` Amount `

1 Cash 51,000
2 Capital 120,000
3 Bank 36,444
4 Stock 15,000
5 Furniture 25,000
6 Bills payable 15,000
7 Purchase 30,800
8 Sales 23,000
9 Rent 2,500
10 Salary 4,000
11 Discount Received 1,644
12 Discount Allowed 1,000
13 Krishan 10,800
14 Advertisement 2,200
15 Drawing 1,000
16 Bad debt 1,500
170,444 170,444
Illustration 4 : From the following particulars prepare a Trial Balance as on 30th September 2010:
Stock 1st October 2014 ` 15000, Debtors ` 29,000, Creditors `26000, Capital Account 1st Oct. 2010
` 40,000, Drawings ` 10,000, Bills Receivable ` 8,000, Bad Debt ` 1,000, Provision for Bad and
Doubtful Debts ` 300, Bills Payable ` 5000, Wages ` 6900, Salaries `11,000, Purchases ` 76,500,
Sales `1,75,500, Bank `9,000, Cash `3,500, Rent, Rates & Insurance ` 3050, Sales Returns `400,
Purchases Returns ` 500, Furniture ` 15,600, General Expenses ` 2,500, Discounts allowed `
1050, Discounts Received ` 800,Machinery ` 50,000, Interest ` 3,500, Dividend received ` 2,500,
Carriage Inward `2,000 and Carriage Outward ` 2,600

Trial Balance
as on 30th September, 2014
S. No. Name of accounts Amount (Dr.) Amount (Cr)

1 Stock 15,000
2 Debtors 29,000
3 Creditors 26,000
4 Capital 40,000
5 Drawing 10,000
6 Bills Receivable 8,000
7 Bad Debts 1,000
8 Provision for Bad and Doubtful debts 300
9 Bills payable 5,000
10 Wages 6,900
11 Purchases 76,500
12 Sales 175,500
13 Bank 9,000
14 Cash 3,500
15 Rent 3,050
16 Sales Return 400
17 Purchase Return 500
18 General Expenses 2,500
19 Discount Allowed 1,050
20 Discount Received 800
21 Salary 11,000
22 Machinery 50,000
23 Furniture 15,600
24 Carriage Inward 2,000
25 Carriage Outward 2,600
26 Dividend Received 2,500
27 Interest paid 3,500
Total 2,50,600 2,50,600
Multiple choice questions: Choose the most appropriate answer from the given options in
respect of the following:
i) Opening entry is passed with —

(a) Balances from trial balance
(b) Balances from the last year’s balance sheet
(c) Items of trading account
(d) Items of profit and loss account.
ii) The following error would not affect the profit —
(a) Goods sold to Ram, debited to Mohan
(b) Sales book was undercast by `1,000
(c) A purchase of ` 400 was wrongly written as ` 40 in purchases book
(d) Expenses of plant repairs debited to plant account.

iii) The process of entering transactions in the ledger is called —
(a) Journalizing
(b) Posting
(c) Summarizing
(d) Balancing.
iv) Cash purchases are made of goods at the list price of ` 40,000 at a trade discount @ 5% and a
cash discount @ 2%; cash payable is —
(a) ` 40,000
(b) ` 38,000
(c) ` 37,240
(d) ` 38,800
v) Plant and machinery account is a —

(a) Personal account
(b) Tangible real account
(c) Intangible real account
(d) Nominal account.
vi) Prepaid insurance is an example of
(a) A liabilities
(b) An asset
(c) An expense
(d) An income
vii) The effect of debit is :
(a) Increase in liabilities
(b) Increase in assets
(c) Increase in capital
(d) Increase in Income
viii) Double entry system of bookkeeping means--
(a) Entry in two sets of books
(b) Entry at two books
(c) Entry for two aspects of the transactions
(d) Entry by two persons
ix) Stock is generally valued at
(a) Cost
(b) Market price
(c) Cost or market price, whichever is higher
(d) Cost or market price, whichever is lower
x) Cost of goods given as sample should be credited to:
(a) Sales a/c
(b) Purchase a/c
(c) Advertisement a/c
(d) Purchase return a/c
xi) Which of the following item is not financial in nature--
(a) Purchase of a car on credit
(b) Dismissing an employee from a job
(c) Withdrawal of cash by proprietor for his personal use
(d) Purchase of building for cash.
xii) A Schedule of balances drawn from ledger is called
(a) A trial balance
(b) A statement of affairs
(c) A balance sheet
(d) A statement of account

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Following are the transactions extracted from the books of M/s Rohni prepare journal, post them

April 1 Started business with cash ` 2,00,000

April 2 Purchased goods for cash ` 30,000

April 5 Purchased goods from Rakesh ` 60,000

April 7 Bought Machinery ` 20,000

April 11 Sold goods to Sudhakar ` 30,000

April 12 Returned goods to Rakesh ` 8,000

April 16 Goods Returned by Sudhakar ` 2,000

April 18 Paid cash to Rakesh `40,000

April 20 Purchased goods from Gopal `20,000

April 22 Received Cash from Sudhakar ` 25,000

April 24 Sold goods to Mahesh ` 12,000

April 26 Goods drawn by the proprietor for personal use ` 3,000

April 28 Salary paid to Harish ` 5,000

April 30 Paid Trade Expenses ` 2,000

In the books of M/s Rohni

26-Apr-14 Drawing A/c Dr. 3,000

28-Apr-14 Salary A/c Dr. 5,000

Dr. Cash A/c Cr.

Dr. Capital A/c Cr.

Dr. Purchase A/c Cr.

Dr. Return Inward A/c Cr.

Dr. Return Outward A/c Cr.

30-Apr-14 To, Balance c/d 8,000 12-Apr-14 By, Rakesh 8,000

Dr. Salary Ac Cr.

Dr. Trade expenses A/c Cr.

. Drawing A/c Cr.

Dr. Rakesh Cr.

Dr. Gopal Cr.

Dr. Sudhakar Cr.

Trial balance as on 30th April 2014

S. No. Name of accounts Amount ` Amount `

April 1 Purchased goods from Suresh ` 10,000

April 2 Sold goods to Satyendra `20,000

April 5 Purchased goods for cash `5,000

April 7 Paid Rent ` 2,500 and Salary `4,000 by cheque

April 10 Paid Suresh ` 28,500 in full settlement of his clam

40% of the payment was made immediately by cheque

April 12 Sold to goods to Madan ` 3,000

April 17 Cash ` 1,000 withdrawn by owner for personal use

April 30 Madan becomes insolvent a dividend of 50 paise in rupee was received

In the Books of M/s Mohit Traders

Date Particulars L.F. Amount Amount

1-Apr-15 Cash A/c Dr. 35,000

1-Apr-15 Purchase A/c Dr. 10,000

2-Apr-15 Satyendra Dr. 20,000

5-Apr-15 Purchase A/c Dr. 15,000

12-Apr-15 Madan Dr. 3,000

15-Apr-15 Advertisement A/c Dr. 2,200

17-Apr-15 Drawing A/c Dr. 2,000

Dr. Cash A/c Cr.

Dr. Capital A/c Cr.

Dr. Bank A/c Cr.

1-May-15 To, Balance B/d 36,444

Dr. Stock A/c Cr.

Dr. Furniture A/c Cr.

Dr. Satyendra Cr.

By, Discount Allowed

Dr. Bills Payable A/c Cr.

Dr. Purchase A/c Cr.

Dr. Madan Cr.

Dr. Advertisement A/c Cr.

Dr. Bad debt A/c Cr.