The following transactions took place in the business of Mahender:
(i) Withdrew Cash Rs.10,000 for personal use
(ii) Depreciation charged on plant and machinery Rs.20,000
Prepare accounting vouchers for recording the above transactions.

6

(a)

Prepare the accounting equation on the basis of the following transactions:
(i) Commenced business with cash Rs.50,000 and goods Rs.30,000
(ii) Paid Salary Rs.5,000
(iii) Purchased goods for cash Rs.10,000 and on credit Rs.20,000
(iv) Goods costing Rs.25,000 sold at profit of 20% on cost out of which Rs.10,000 received in cash.

6

(a)

Prepare accounting equation on the basis of the following transactions:

		Rs
(i)	Ram started business with cash	50,000
(ii)	Purchased goods on credit	4,000
(iii)	Purchased goods for cash	1,000
(iv)	Purchase furniture for cash	500
(v)	Withdrawal for private use	700
(vi)	Paid rent	200
(vii)	Received interest	100
(viii)	Sold goods on credit (cost Rs.500)	700
(ix)	Paid to creditors	400
(x)	Paid salaries	200

6

(a)

Journalise the following transactions:
(i) Lakhan started business with cash Rs.50,000 and furniture Rs.10,000.
(ii) Purchased goods from Deepak on credit Rs.20,000
(iii) Draw cash from office for his personal use Rs.5,000
(iv) Goods given as charity Rs.1,000
(v) Paid Rs.1,000 for life insurance premium of Lakhan
(vi) Goods return to Deepak Rs.4,000.

6

(a)

Complete the following Accounting Equation by filling the missing amounts.

                                                                      Accounting Equation

No.	Transactions	Assets (Rs)	=	Liabilities (Rs)	+	Capital (Rs)
1	Mannu started business with Cash Rs.50,000	50,000	=	-	+	-
2	Purchases goods on credit for Rs.4,000	-	=	-	+	-
	New Equation	54,000	=	4,000	+	-
3	Purchases goods for cash Rs.1,000	-	=	0	+	-
	New Equation	-	=	4,000	+	50,000
4	Purchases furniture for cash for Rs.500	-	=	0	+	-
	New Equation	-	=	-	+	-
5	Withdraw cash for private use Rs.700	-	=	0	+	700
	New Equation	-	=	4,000	+	-
6	Paid for rent Rs.200	-	=	0	+	-
	New Equation	53,100	=	4,000	+	-
7	Received interest Rs.100	100	=	0	+	-
	New Equation	-	=	4,000	+	-
8	Sold goods on costing Rs.500 for Rs.700 in cash	-	=	0	+	200
	New Equation	53,400	=	4,000	+	-
9	Paid to creditors Rs.400	-	=	-	+	0
	New Equation	-	=	-	+	49,400
10	Paid for salaries Rs.200	-	=	0	+	-
	New Equation	52,800	=	-	+	-

6

(a)

On the basis of the narrations, fill in the missing values:

                                                                                                Journal Entries

Date	Particulars		L.F	Amount Dr(Rs)	Amount Cr(Rs)
(i)	-	Dr		-
	-	Dr		-
	To ........				6,00,000
	(Being the capital introduced in cash Rs.1,00,000 and balance by cheque)
(ii)	-	Dr		-
	To ........				15,000
	(Being the goods purchased in cash)
(iii)	-	Dr		-
	To .....				-
	(Being the land purchased for Rs.2,50,000, payment by cheque)
(iv)	-	Dr		-
	To .....				1,00,000
	(Being the goods purchased from Hari)
(v)	-	Dr		20,000
	To ...				20,000
	(Being the goods sold)
(vi)	-	Dr		50,000
	To ....				50,000
	(Being the goods sold to Rajan)
(vii)	-	Dr		5,000
	To .......				5,000
	(Being the goods returned by Rajan)
(viii)	-	Dr		4,000
	To .....				4,000
	(Being the goods returned to Hari)
(ix)	-	Dr		11,000
	To .....				11,000
	(Being the insurance premium of personal car paid)
(x)	-	Dr		250
	To .....				250
	(Being the newspaper bill for the month)

6

(a)

Describe how debits and credits note are used to analyse transactions

6

(a)

What is a journal? Give a specimen of journal showing at least five entries

6

(a)

Differentiate between source documents and voucher.

6

(a)

Explain the double entry mechanism with an illustrative example.

6

(a)