Assignment Questions – MAA – MGT402

Problem 1 (10 marks)

Journalise the following transactions in the books of Mr.Kumar, post them in the Ledger and
prepare trial balance.
2018 March1 Bought goods for cash Rs. 25,000
March 2 Sold goods for cash Rs. 50,000
March 3 Bought goods for credit from Gopal Rs.19,000
March 5 Sold goods on credit to Milton Rs.8,000
March 7 Received from Milton Rs. 6,000
March 9 Paid to Gopal Rs.5,000
March 20 Bought furniture for cash Rs. 7,000

Problem 2 (10 marks)

Enter the following transactions in journal and post them in the ledger of Mr.Albert and
balance them.
2018, Aug 1 Govindarajan commenced his business with the following assets and liabilities.
Plant and Machinery Rs.2,50,000.
Stock Rs.90,000.
Furniture Rs.7,000.
Cash Rs.50,000.
Sundry creditors Rs.1,50,000.
Aug 2 Sold goods to Sundar Rs. 1,50,000.
Aug 3 Bought goods from Natarajan Rs.65,000.
Aug 4 Sundar paid cash Rs.1,25,000.
Aug 6 Returned damaged goods to Natarajan Rs.2,000.
Aug 10 Paid to Natarajan Rs.28,000.
Aug 31 Paid rent Rs. 5,000. Paid salaries Rs.9,000.
Problem 3 (5 marks)
Prepare accounting equation and balance sheet on the basis of the following :
i. Pandiyan started business with cash Rs.60,000
ii. He purchased furniture Rs.10,000
iii. He paid rent Rs.2,000
iv. He purchased goods on credit from Mr.Mahesh Rs.30,000
v. He sold goods (cost price Rs.20,000) for cash Rs.25,000

Problem 4 (5 marks)
Hindustan company has incurred the following expenditure and you are required to identify
the capital, revenue and deferred revenue expenses.
i. Rs.60,000 travelling expenses of their sales manager who travelled to Japan
to attend a meeting in order to increase sales – trip was quite successful.
ii. Rs.500 spent for installing machinery.
iii. Rs.6,00,000 spent on research and development.
iv. Rs.500 paid for fuel.
v. Rs.600 was spent on alteration of a machinery in order to reduce power
consumption.