Solution 1:

1. M/s.Bharat Fashion House - Journal

M/s.Bharat Fashion House - Journal
Date (dd-mm- Particulars L.F Debit (Amount in Credit (Amount in Rs.)
yy) . Rs.)
5-Jun-18 Cash account Dr.   200,000  
To Capital account       200,000
(Capital brought in by proprietor to start business)        
8-Jun-18 Bank account Dr.   80,000  
To Cash account       80,000
(Amount deposited in the bank)        
12-Jun-18 Purchase account Dr.   30,000  
To M/s.Gulmohar Fashion House       30,000
(Purchased goods on credit)        
12-Jun-18 Machinery account Dr.   20,000  
To Bank account       20,000
(Purchased office machines vide payment is made by Cheque No. ...)        
18-Jun-18 Rent account Dr.   5,000  
To Bank account       5,000
(Rent paid vide payment is made by Cheque No. ...)        
20-Jun-18 M/s.Mohit Bros' account Dr.   10,000  
To Sales account       10,000
(Goods sold on credit vide Invoice No. …)        
22-Jun-18 Cash account Dr.   15,000  
To Sales account       15,000
(Goods sold for cash vide Cash Memo No. …)        
25-Jun-18 M/s.Gulmohar Fashion House account Dr.   30,000  
To Cash account       30,000
(Cash paid to M/s.Gulmohar Fashion House)        
28-Jun-18 Bank account Dr.   10,000  
To M/s.Mohit Bros       10,000
(Receipt of payment vide Cheque No. … from M/s.Mohit Bros)        
30-Jun-18 Salary account Dr.   6,000  
To Cash account       6,000
 (Salary paid in cash)        
2. M/s.Bharat Fashion House - Ledger
M/s.Bharat Fashion House - Ledger
(Dr) Cash Account (Cr)
Date (dd-mm- Particulars J.F. Date (dd-mm- Particulars J.F.
yy) Amount (in Rs.) yy) Amount (in Rs.)
5-Jun-18 To Capital   200,000 8-Jun-18 By Bank   80,000
22-Jun-18 To Sales   15,000 25-Jun-18 By M/s.Gulmohar Fashion House   30,000
        30-Jun-18 By Salary   6,000
        30-Jun-18 By Balance c/d   99,000
      215,000       215,000
1-Jul-18 To Balance b/d   99,000        
(Dr) Capital Account (Cr)
Date (dd-mm- Particulars J.F. Date (dd-mm- Particulars J.F.
yy) Amount (in Rs.) yy) Amount (in Rs.)
30-Jun-18 To Balance c/d   200,000 5-Jun-18 By Cash   200,000
      200,000       200,000
        1-Jul-18 By Balance b/d   200,000
(Dr) Bank Account (Cr)
Date (dd-mm- Particulars J.F. Date (dd-mm- Particulars J.F.
yy) Amount (in Rs.) yy) Amount (in Rs.)
8-Jun-18 To Cash   80,000 12-Jun-18 By Machinery   20,000
28-Jun-18 To M/s.Mohit Bros   10,000 18-Jun-18 By Rent   5,000
        30-Jun-18 By Balance c/d   65,000
      90,000       90,000
1-Jul-18 To Balance b/d   65,000        
(Dr) Purchase Account (Cr)
Date (dd-mm- Particulars J.F. Date (dd-mm- Particulars J.F.
yy) Amount (in Rs.) yy) Amount (in Rs.)
To M/s.Gulmohar Fashion
12-Jun-18 House   30,000 30-Jun-18 By Balance c/d   30,000
      30,000       30,000
1-Jul-18 To Balance b/d   30,000        
(Dr) M/s.Gulmohar Fashion House Account (Cr)
Date (dd-mm- Particulars J.F. Date (dd-mm- Particulars J.F.
yy) Amount (in Rs.) yy) Amount (in Rs.)
 25-Jun-18 To Cash   30,000 12-Jun-18 By Purchases   30,000
(Dr) Machinery Account (Cr)
Date (dd-mm- Particulars J.F. Date (dd-mm- Particulars J.F.
yy) Amount (in Rs.) yy) Amount (in Rs.)
12-Jun-18 To Bank   20,000 30-Jun-18 By Balance c/d   20,000
      20,000       20,000
1-Jul-18 To Balance b/d   20,000        
(Dr) Rent Account (Cr)
Date (dd-mm- Particulars J.F. Date (dd-mm- Particulars J.F.
yy) Amount (in Rs.) yy) Amount (in Rs.)
18-Jun-18 To Bank   5,000 30-Jun-18 By Balance c/d   5,000
      5,000       5,000
1-Jul-18 To Balance b/d   5,000        
(Dr) M/s.Mohit Bros Account (Cr)
Date (dd-mm- Particulars J.F. Date (dd-mm- Particulars J.F.
yy) Amount (in Rs.) yy) Amount (in Rs.)
20-Jun-18 To Sales   10,000 28-Jun-18 By Bank   10,000
Sales Account
Date (dd-mm- Particulars J.F. Date (dd-mm- Particulars J.F.
yy) Amount (in Rs.) yy) Amount (in Rs.)
30-Jun-18 To Balance c/d   25,000 20-Jun-18 By M/s.Mohit Bros   10,000
        22-Jun-18 By Cash   15,000
      25,000       25,000
        1-Jul-18 By Balance b/d   25,000
(Dr) Salary Account (Cr)
Date (dd-mm- Particulars J.F. Date (dd-mm- Particulars J.F.
yy) Amount (in Rs.) yy) Amount (in Rs.)
30-Jun-18 To Cash   6,000 30-Jun-18 By Balance c/d   6,000
      6,000       6,000
1-Jul-18 To Balance b/d   6,000        
Solution 2:
1. Accounting Equation
a. Pandiyan started business with cash Rs.1,50,000
  Assets = Liabilities + Capital
Cash
Capital
Introduced 150000 = 0 + 150000

b. He purchased furniture Rs.50,000

  Assets = Liabilities + Capital
Cash + Furniture Pandiyan's
Old Balance 150000 + 0 = 0 + 150000
New Transaction -50000 + 50000 = 0 + 0
New Balance 100000 + 50000 = 0 + 150000

c. He paid rent Rs.20,000

  Assets = Liabilities + Capital
Cash + Furniture + Rent Pandiyan's
Old Balance 100000 + 50000 + 0 = 0 + 150000
New Transaction -20000 + 0 + 20000 = 0 + 0
New Balance 80000 + 50000 + 20000 = 0 + 150000

d. He purchased goods on credit from Mr. Mahesh Rs.45,000

  Assets = Liabilities + Capital
Furnitur
Cash + e + Rent + Stock Creditors Pandiyan's
2000
Old Balance 80000 + 50000 + 0 + 0 = 0 + 150000
4500
New Transaction 0 + 0 + 0 + 0 = 45000 + 0
2000 4500
New Balance 80000 + 50000 + 0 + 0 = 45000 + 150000

e. He sold goods (cost price Rs.70,000) for cash Rs.75,000

  Assets = Liabilities + Capital
Cash + Furnitur + Rent + Stock Creditors Pandiyan's
 e
2000
Old Balance 80000 + 50000 + 0 + 45000 = 45000 + 150000
-
New Transaction 75000 + 0 + 0 + 70000 = 0 + 5000
2000 -
New Balance 155000 + 50000 + 0 + 25000 = 45000 + 155000

2. Balance Sheet
Amount (in
Liabilities Rs.) Assets Amount (in Rs.)
Capital 150000   Cash 155000
Furnitur
Add: Profits 5000 155000 e 50000
Creditors   45000 Rent 20000
Stock -25000
200000 200000
Solution 3:
1. Machinery Account
Machinery Account
Date Particulars Amount (in Rs.) Date Particulars Amount (in Rs.)
2015     2016    
31-Mar-
1-Oct-15 To Bank Account 5,000,000 16 By Depreciation A/c  
Machine 1 - 10% on 5,000,000 for 6
  Machine 1     months 250,000
        (Rs. 5,000,000 * 10% * 6/12)  
31-Mar-
      16 By Balance c/d 4,750,000
    5,000,000     5,000,000
2016     2017    
1-Apr- 31-Mar-
16 To Balance b/d 4,750,000 17 By Depreciation A/c  
  Machine 1     Machine 1 - 10% on 5,000,000 500,000
31-Mar-
      17 By Balance c/d 4,250,000
    4,750,000     4,750,000
2017     2018    
1-Apr- 31-Mar-
17 To Balance b/d 4,250,000 18 By Depreciation A/c  
  Machine 1     Machine 1 - 10% on 5,000,000 500,000
1-Apr-
17 To Bank Account 1,000,000   Machine 2 - 10% on 1,000,000 100,000
31-Mar-
  Machine 2   18 By Balance c/d 4,650,000
    5,250,000     5,250,000

2. Depreciation Account
Depreciation Account
Date Particulars Amount (in Rs.) Date Particulars Amount (in Rs.)
2016     2016    
31-Mar- To Machinery 31-Mar-
16 A/c 250,000 16 By Profit & Loss A/c 250,000
2017     2017    
31-Mar- To Machinery 31-Mar-
17 A/c 500,000 17 By Profit & Loss A/c 500,000
2018     2018    
31-Mar- To Machinery 31-Mar-
18 A/c 600,000 18 By Profit & Loss A/c 600,000