Q.

1 Decide whether each of the following accounts is a(n) asset, liability, owner’s equity, revenue, or expense; Example:

a) Cash : Asset

b) Accounts Payable: liability

c) Accounts Receivable : Asset

.d) Building :Asset

e) Rent : expense

f) Fees Earned : revenue

g) Commissions Earned : revenue

h) Wages Expense : expense

i) Bank Loan : liability

Q. 2 Classify each of the following accounts as either asset, liability, owner’s equity, revenue, or expense and write the appropriate
letter (A, L, OE, R, E) in the corresponding blank given.

1. Cash : A

2. Accounts Payable : L

3. Goods : A

4. Commission Received : R

5. Vehicle : A

6. Monthly Telephone costs: E.

7. Bank Loan : L

8. Accounts Receivable : A

9. Truck : A

10. Wages paid to employees : E

11. Loan Taken: L

Q. 3 Classify the accounts into Real Nominal and Personal

a) Cash : Real

b) Accounts Payable : personal

c) Accounts Receivable: personal

d) Building: Real

e) Rent: Nominal

f) Fees Earned: Nominal

g) Commissions Earned: Nominal

h) Wages Expense: Nominal

i) Bank Loan: Personal

Q. 4 Classify the accounts into Real Nominal and Personal

1. Cash: Real

2. Accounts Payable: personal

3. Goods: real

4.Goodwill: Real

5. Insurance charges: Nominal

6. Monthly Telephone costs: Nominal

7. Bank Loan: Personal

8. Accounts Receivable: personal

9. Truck: Real

10. Wages paid to employees: Nominal

11. Mortgage Payable: Personal

Q. 5. Identify two effects for the following business transactions.

Classify the effects into Real, Personal and Nominal.

Apply the rules of journal entries and define the debit and credit

( in short - Create journal entries for the following transactions)

1. Hari started business with cash Rs. 100000

Cash : real : Debit

Hari : personal : Credit

1A. Cash deposited into Business Bank account 40000

cash : Real a/c : Debit

capital: Personal a/c : Credit

2. Bought goods from Manohar on credit Rs. 25000

Goods : real a/c : debit

Manohar : personal a/c : credit

3. Purchased furniture for cash Rs. 8000

Furniture: nominal a/c : debit

Cash: real a/c : credit

4. Sold goods to Charanjeet Rs. 16000 on credit.

Charanjeet : personal a/c : debit

Sales : real a/c : credit

5. Cash Paid to Manohar Rs. 23000

Manohar : personal a/c : debit

Cash paid : real a/c : credit

6. Sold goods to Ram Rs. 2000 on credit

Ram : personal a/c : debit

Sales : real a/c : credit

7. Cash Received from Charanjeet Rs. 15400

Cash: real a/c : debit

Charanjeet: personal a/c: credit

8. Paid wages Rs. 2000 by cash

Wages Paid : nominal a/c : debit

Cash: real a/c : credit

9. Bought goods for cash Rs. 6000

Goods purchase : real a/c : debit

Cash: real a/c : credit

10. Sold goods to Ramesh Rs. 3400 on credit

Ramesh: personal a/c : debit (Rs. 3400)

Sales : real a/c : credit

11. Purchased goods from M/S Purchotam and Sons on credit Rs. 2600

Goods purchase : real a/c : debit

M/S Purchotam and Sons : Personal : credit

12. Paid to Manohar in settlement Rs. 2000

Manohar : personal a/c : debit

Cash: real a/c: credit

13. Paid transportation charges by cash Rs. 400

Transportation charges: Nominal a/c : debit

Cash: real a/c : credit

14. Paid for stationery Rs. 450

Stationery : nominal a/c : debit

Cash: real a/c : credit

15. Bought goods from Manohar Rs. 5000 by cheque.

Goods purchase : real a/c : debit

Bank : personal a/c : credit

16. Bought goods for cash Rs. 800

Goods purchase: real a/c : debit

Cash: real a/c : credit

17. Sold goods to Ram Rs. 6000

Ram : personal a/c : debit

Sales : real a/c : credit

18. Ram paid us by cheque Rs. 4000

Bank: personal a/c : debit

Ram: real a/c : credit

19. Purchased goods from Harbans Rs. 1500

Goods purchase a/c : real : debit

Harbans: personal a/c : credit

20. Sold goods for cash Rs. 1600

Cash : real a/c : debit

Sales: real a/c : credit

21. Paid wages Rs. 800

Wages : nominal a/c : debit

Cash: real a/c: credit

22. Paid to Harbans Rs. 1440 and discount allowed by him Rs. 60

Harbans: persona; a/c : debit-1440

Cash: real a/c : credit-1380

Discount: nominal a/c : credit-60

23. Sold goods to Charanjeet Rs. 2600 on credit

Charanjeet: personal a/c : debit

Sales: real a/c : credit

24. Bought goods for Manohar Rs. 1400 on credit

Goods purchase: real a/c : debit

Manohar: personal a/c : credit

25. Bought goods for cash Rs. 1460

Goods purchase : real a/c : debit

Cash: real a/c : credit

26. Paid to Manohar Rs. 2000

Manohar: personal a/c : debit

Cash: real a/c: credit

27. Cash Received from Charanjeet Rs. 4000

Cash: real a/c : debit

Charanjeet: personal a/c: credit

28. Office rent paid by cheque Rs. 7800

Rent: nominal a/c : debit

Bank: personal a/c: credit

29. Paid for electricity bill Rs. 500 by cash

Electricity bill: nominal a/c : debit

Cash: real a/c : credit

30. Paid by cheque for insurance Rs. 1600

Insurance: real a/c : debit

Bank: personal a/c : credit

31. Hari withdrew cash for personal use Rs. 300

Hari drawing : personal a/c : debit

Cash: real a/c : credit

32. Goods Purchased for Rs. 680 by cash

Goods purchase: real a/c : debit

Cash: real a/c : credit

33. General expense paid by cash Rs. 590

General expense : nominal a/c : debit

Cash: real a/c: credit

Q. 6 On April 01, 2016 Anees started business with Rs. 100,000 and other transactions for the month are:
2. Purchased Furniture for Cash Rs. 7,000.
8. Purchase Goods for Cash Rs. 2,000 and for Credit Rs. 1,000 from Khalid Retail Store.
14. Sold Goods to Khan Brothers on credit Rs. 12,000
15. Cash Sales Rs. 5,000.
18. Owner withdrew cash of Rs. 2,000 for personal use.
22. Paid Khalid Retail Store Rs. 500 by cheque
26. Received Rs. 10,000 from Khan Brothers by cash.
30. Paid Salaries Expense Rs. 2,000 by cheque.
Prepare the journal entries for the above transactions.
(ie in short Identify two effects for the business transaction.
Classify the effects into real, personal and Nominal.
Apply the rules of journal entries and define the debit and credit)

Q.7 Prepare journal entries for the following transactions of a business called “Pose for Pics” in 2019:
Aug. 1: Hashim Khan, the owner, invested Rs. 57,500 cash and Rs. 32,500 of photography equipment in the business.
04: Paid Rs. 3,000 cash for insurance charges.
13: Purchased office supplies from M/S Doshi and Sons for Rs. 1,400. On credit.
13. Cash paid to M/S Doshi and Sons Rs. 400 and remaining amount is outstanding.
20: Received Rs. 2,000 cash in photography fees.
24: The client immediately pays Rs. 15,000 as advance for services to be performed at a later date.
29: Bank loan is taken to buy the photography equipment.
30: The business acquires photography equipment from Kodak photo shop and paid by cheque. The purchase price is Rs. 100,000.

Q. 8 On March 2017, Farhan Rahim, started wholesale business. Journalise the following transactions :
1. He started business with capital of Rs. 15,000 and Land worth Rs. 10,000.
2. Bought goods from Bilal and Friends Rs. 1,000 on credit and by cash from XYZ Co. Rs 2,000.
3. Sold goods to Rehman & Sons Rs. 1,500 on credit and by cash Rs. 5,000.
4. Donations given by cash Rs. 500
5. Paid Bilal and Friends cash Rs. 975; discount received Rs. 25.
6. Received cash from Rehman & Sons Rs. 1,450; allowed him discount of Rs. 50.