Narrate the evolution of accounting

What are the bases of accounting? and briefly explain it.

Prepare accounting equation for the following transactions.
(a) Murugan commenced business with cash Rs.80,000
(b) Purchased goods for cash Rs.30,000
(c) Paid salaries by cash Rs.5,000
(d) Bought goods from Kumar for Rs.5,000 and deposited the money in CDM.
(e) Introduced additional capital of Rs.10,000

Create an accounting equation on the basis of the following transactions:
(i) Started business with cash Rs 80,000 and goods Rs.75,000
(ii) Sold goods to Shanmugam on credit for Rs.50,000
(iii) Received cash from Shanmugam in full settlement Rs. 49,000
(iv) Salary outstanding Rs.3,000
(v) Goods costing Rs.1,000 given as charity
(vi) Insurance premium paid Rs.3000
(vii) Out of insurance premium paid, prepaid is Rs.500

Karthick opened a provisions store on pt April, 2017. Journalise the following transactions in his books:

2017 April		Rs
1	Paid into bank for opening a current account	2,00,000
3	Goods purchased by cheque	40,000
5	Investments made in securities	40,000
6	Goods sold to Radha for Rs.20,000 and cheque received and deposited into bank
7	Amount withdrawn from bank for office use	15,000
10	Purchased goods from Kamala and cash deposited in CDM	10,000
12	Sold goods to Vanitha who paid through debit card	10,000
15	Interest on securities directly received by the bank	1,000
20	Insurance paid by the bank as per standing instructions	2,000
25	Sales made to Kunal who made payment through CDM	6,000

Mohit has the following transactions, prepare accounting equation

		Rs
i)	Business started with Cash	1,75,000
ii)	Purchased goods from Rohit	50,000
iii)	Sold goods on credit to Manish (Costing Rs.17,500)	20,000
iv)	Purchased furniture for office use	10,000
v)	Cash paid to Rohit in full settlement	48,000
vi)	Cash received from Manish	20,000
vii)	Rent paid	1,000
viii)	Cash withdrew for personal use	3,000

Journalise the following transactions of Mr. ManL

2017 June		Rs
3	Received cash from Ramkumar	60,000
4	Purchased goods for cash	15,000
11	Sold goods to Damodaran	22,000
13	Paid to Ramkumar	40,000
17	Received from Damodaran	20,000
20	Bought furniture from Jagadeesan	5,000
27	Paid rent	1,200
30	Paid Salary	2,500

Bragathish is a trader dealing in electronic goods who commenced his business in 2015. For the following transactions took place in the month of March 2018, pass journal entries.

March	Rs
1. Purchased goods from Y and Co. on credit	60,000
2. Sold goods to D and Co. on credit	30,000
3. Paid Y and Co. through bank in full settlement	58,000
4. D and Co. accepted a bill drawn by Bragathish	30,000
5. Sold goods to L and credit	20,000
6. Sold goods to M on credit	40,000
7. Received a cheque from M in full settlement and deposited the same to the bank.	39,000
8. Goods returned to Y and Co.	4,000
9. L became insolvent and only 90 paise per rupee is received by cash in final settlement.
10. Goods returned by M	3,000

The capital and liabilities of a trader were Rs.1,00,000 and Rs. 50,000 respectively. Calculate the value of assets.

Journalise the following transactions in Mr. Ranganathan books. 2015, May 

Date		Rs.
1	Started business with	50,000
5	Bought goods from Chandrasekar on credit for	15,000
8	Sold goods to Nehru on credit for	25,000
10	Goods returned to Chandrasekar	500
15	Goods returned from Nehru	2,500
20	Settled Chandrasekar's account
25	Nehru settled his account

Show the direct ledger postings for the following transactions:

2016 July
1	Shankar commenced business with a cash Rs. 1,00,000
5	Sold goods for cash Rs. 10,000
9	Wages paid Rs. 6,000
19	Salaries paid Rs. 8000
20	Advertisement expenses paid Rs. 4,000

Journalise the following transactions of Mr. Ravi and post them in the ledger and balance the same.

2016 June	.
1	Ravi invested Rs. 5,00,000 cash in the business.
3	Paid into Bank Rs. 80,000
5	Purchased building for Rs. 3,00,00
10	Sold goods for Rs. 80,000
15	Withdrew cash from bank Rs. 10,000
30	Paid Salary Rs. 15,000

Prepare a Sales account from the following transactions.

2018 Jan.		Rs.
1	Sold goods to Sam	4,000
4	Sold goods to Suresh	2,500
11	Sold goods to Joy	8,000
17	Sold goods to Rajan	3,000

Give journal entries from the following transactions and post them to ledger.

2016 Sep		Rs.
1	Commenced business with cash	80,000
7	Bought goods for cash from Roopan	10,000
10	Purchased goods from Hema on credit	42,000
22	Goods returned to Hema	2,000
23	Cash paid to Hema	10,000

Journalise the following transactions and prepare ledger accounts.

2015 Feb.		Rs.
1	Sold goods for cash	5,000
2	Purchased goods from Kumar on credit	4,000
5	Sold goods to Prabu on credit	8,000
12	Received cash from Prabu	1,200
20	Paid to Kumar	2,000
25	Paid salary	3,000

Pass journal entries for the following transactions and post them in the ledger accounts.

2017 June   1	Basu started business with cash Rs. 50,000
4	Purchased furniture by paying cash for Rs. 6,000
7	Purchased machinery on credit from Harish Rs. 10,000
10	Bought goods for cash Rs 4,000
18	Paid insurance premium Rs 100

Bharathi is a sole trader dealing in oil products for the past five years. The books of accounts showed the following balances on 1^st April 2018: Cash in hand Rs. 25,000; Cash at bank Rs. 3,00,000. The following transactions took place for the month of April 2018.

April 1	Goods bought by giving cheque Rs. 30,000
5	Goods sold to Naveen and payment received through NEFT Rs. 40,000
6	Goods sold to Xavier for cash Rs. 20,000
9	Goods sold on credit to Abdul for Rs. 25,000
18	Cash received from Abdul Rs. 10,000

Pass Journal entries for the above transactions and prepare ledger accounts.

Journalise the following transactions in the Journal of Mr. Shanmugam, post them in the ledger and balance them

2013, Aug.	1 Started business with	Rs. 4,50,000
	3 Goods purchased	Rs. 70,000
	5 Goods sold	Rs. 51,000
	10 Goods purchased from Rangasamy	Rs. 2,00,000
	16 Goods returned to Rangasamy	Rs. 5,000
	27 Settled Rangasamy's account

Prepare the trial balance from the following information:

Name of the account	Rs	Name of the account	Rs
Bank Loan	2,00,000	Purchases	1,80,000
Bills Payable	1,00,000	Sales	3,00,000
Stock	70,000	Debtors	4,00,00
Capital	2,50,000	Bank	2,00,000

Balan who has a car driving school gives you the following ledger balances. Prepare trial balance as on 31^st December 2016.

	Rs.		Rs.
Computer	26,000	Freehold land	30,000
Salaries to drivers	4,000	Bank loan	15,000
Taxes and insurance	16,500	Fees received	18,150
Fuel and Power	2,000	Capital	53,850
Rent and rates	1,500	Advertisement	7,000

From the following balances extracted from the books of Chitra, prepare trial balance as on 31st March, 2017.

Particulars	Rs	Particulars	Rs
Adjusted purchases	60,000	Advertisement	4,000
Rent paid	2,000	General expenses	700
Discount received	1,000	Commission paid	1,500
Carriage inward	2,700	Capital	40,000
Closing stock	18,600	Sales	48,500

Prepare trial balance as on 31.03.2013 from the following balances of Mrs. Sujatha.

Name of the account	Rs	Name of the account	Rs
Drawings	43,000	Purchases	2,98,000
Capital	2,12,000	Sales	3,64,000
Sundry creditors	61,500	Salaries	44,950
Bills Payable	22,000	Sales return	500
Sundry Debtors	55,000	Purchases return	2,550
Bills Receivable	72,600	Travelling expenses	12,300
Loan-from Shameem	2,50,000	Commission paid	250
Furniture & Fittings	12,250	Discount earned	2,000
Opening stock	2,23,500	Cash in hand	65,040
Cash at bank	86,250

Enter the following transactions in the Sales book of Kamala Stores, a furniture shop.

2017 May 2	Sold to Naveen Stores, Trichy on credit 5 computer tables @ Rs. 1,750 per table
May 9	Sold to Deepa & Co., Madurai on credit 6 dining tables @ Rs. 1,900 per dining table
May 15	Sold to Rajesh 10 dressing tables @ Rs. 2,750 each on credit
May 24	Sold to Anil 5 wooden tables @ Rs. 1,250 per table on credit
May 27	Sold to Gopi 3 old computers @ Rs. 3,500 each
May 29	Sold 50 chairs to Anil @ Rs. 275 each for cash

Enter the following transactions in the purchases returns book of Hari who is dealing in automobiles and post them into the ledger.

2017
Jan 5	Returned to Anand 5 clutch plates @ Rs. 200 each, not in accordance with order.
Jan 14	Returned to Chandran 4 brake shoes @ Rs. 200 each and 10rear view mirrors @ Rs. 350 each, due to inferior quality.

Enter the following transactions in a single column cash book of Pandeeswari for the month of June, 2017.

	Particulars	Rs
June 2	Started business with cash	50,000
8	Paid rent in cash	4,000
10	Purchased printer for cash	7,500
11	Cash purchases	15,000
14	Cash sales	10,000
17	Commission received in cash	6,000
19	Interest paid for loan in cash	2,000
20	Cash withdrawn for personal use	3,000
21	Paid speed post charges in cash	3,500

Prepare analytical petty cash book from the following particulars under imprest system:

		Rs
2017 July 1	Received advance form cashier	2,000
7	Paid for writing pads and registers	100
8	Purchased white paepers	50
10	Paid auto charges	200
15	Paid wages	300
18	Postal charges	100
21	Purchased stationery	450
23	Tea expenses	60
25	Paid for speed post	150
27	Refreshment expenses	250
31	Paid for carriage	150

From the following information, prepare bank reconciliation statement to find out the bank statement balance as on 31^st December, 2017.

Particulars	Rs
1. Balance as per cash book	15,000
2. Cheques deposited but not yet credited	1,000
3. Cheques issued and entered in the cash book before 31st December 2017 but not presented for payment until that date	1,500
4. Dividend directly received by bank	200
5. Direct payment made by bank for rent	1,000
6. Locker rent charged by the bank not recorded in cash book	1,200
7. Wrong debit given by the bank on 30th December 2017	500
8. A payment made through net banking has been entered twice in the cash book	300

Prepare bank reconciliation statement from the following data and find out the balance as per cash book as on 31^st March, 2018.

Particulars	Rs
(i) Bank balance as per bank statement	15,000
(ii) Cheques issued but not yet presented for payment	2,500
(iii) Bank charges not recorded in the cash book	250
(iv) Interest charged by bank not recorded in the cash book	500
(v) Bank paid insurance premium as per standing instruction but not recorded in the cash book	300
(vi) Cheques deposited but not yet credited	900

Prepare bank reconciliation statement from the following data.

Particulars	Rs
Bank overdraft as per bank statement	6,500
Cheques issued, but not yet presented for payment	8,750
Cheques deposited but not yet credited by the bank	500
Business customer directly deposited into cash deposit machine	3,500
Bank charges not entered in the cash book	200
Bank paid rent as per standing instruction	1,980

The following errors were located after the preparation of the trial balance. Assume that there exists a suspense account. Pass journal entries to rectify them.
(a) The total of purchases book was undercast by Rs. 100.
(b) The total of the discount column on the debit side of cash book Rs. 575 were not posted.
(c) The total of one page of the sales book for Rs. 5,975 were carried forward to the next page as Rs. 5,795.
(d) Salaries Rs. 1,800 were posted as Rs. 18,000.
(e) Purchase of goods on credit from Mukilan for Rs. 150 have been posted to his account as Rs. 1,500.

A manufacturing company purchased on 1 April, 2010, a plant and machinery for Rs. 4,50,000 and spent Rs. 50,000 on its installation. After having used it for three years, it was sold for Rs. 3,85,000. Depreciation is to be provided every year at the rate of 15% per annum on the fixed instalment method. Accounts are closed on 31^st March every year. Calculate profit or loss on sale of machinery.

Anand bought a machinery for Rs.1,00,000 on 1-1-2015. On 1-6-2016, he bought another machine for Rs.50,000. On 1-10-2017, he purchased another machine for Rs.20,000. Provide depreciation at 10% p.a. on straight line method. Prepare machinery account for the years 2015 to 2017 by using accounts by assuming accounts are closed on 31^st December every year.

Classify the following items into capital and revenue.
i) Registration expenses incurred for the purchase of land.
ii) Repairing charges paid for remodelling the old building purchased.
iii) Carriage paid on goods purchased.
iv) Legal expenses paid for raising of loans

From the following particulars, prepare profit and loss account for the year ended 31st December 2017.

Particulars	Rs	Particulars	Rs
Gross profit	21,05,000	Discount allowed	30,000
Trade expenses	20,000	Office lighting	19,800
Carriage on sales	1,00,000	Commission received	14,400
Office salaries	2,38,000	Interest on loan	22,000
Postage (office)	2,200	Stationery (office)	14,000
Legal charges	4,000	Export duty (on sales)	23,000
Audit fees	16,000	Miscellaneous receipts	5,000
Donation given	11,000	Travelling expenses related to sales	66,000
Sundry expenses	3,600	Selling expenses	53,200

Abstracts from trial balance as on 31st December 2016 are as follows:

Particulars	Debit Rs.	Credit Rs.
Bad debts written off	1,800
Discount allowed	600
Sundry debtors	20,000
Provision for bad and doubtful debts		1,500
Provision for discount on debtors		500

A provision for doubtful debts @ 5% and a provision for discount @ 2% on sundry debtors are to be maintained by the trader. Show how these items would appear in the final accounts.

From the following balances as on 31st December, 2017, prepare profit and loss account.

Particulars	Rs	Particulars	Rs
Gross profit	50,000	Rent received	2,000
Salaries	18,000	Discount received	3,000
Office rent paid	12,000	Carriage outwards	2,500
Advertisement	8,000	Fire insurance premium	6,500

Adjustments:
(a) Rent accrued but not yet received Rs. 500
(b) Fire insurance premium prepaid to the extent of Rs. 1,500
(c) Provide manager’s commission at 10% on profits before charging such commission.

Pass adjusting entries for the following:
(a) The closing stock was valued at Rs. 5,000
(b) Outstanding salaries Rs. 150
(c) Insurance prepaid Rs. 450
(d) Rs. 20,000 was received in advance for commission.
(e) Accrued interest on investments is Rs. 1,000.

The following are the extracts from the trial balance.

Particulars	Debit Rs.	Credit Rs.
Sundry debtors	50,000
Provision for doubtful debts		5,000
Bad debts	3,000

Additional information:
(a) Additional bad debts Rs. 3,000.
(b) Keep a provision for bad and doubtful debts @ 10% on sundry debtors.
You are required to pass necessary adjusting entries and show how these items will appear in profit and loss account and balance sheet.

From the following information, prepare trading and profit and loss account and balance sheet in the books of Sangeetha for the year ending 31^st March, 2018.

Debit balance	Rs	Credit balance	Rs
Capital	20,000	Salaries	6,600
Bills receivable	8,000	Establishment expenses	4,500
Bills payable	10,500	Advertisement	2,300
Purchases	75,000	Furniture	10,000
Sales	95,000	Cash at bank	3,200
Opening stock	12,000	Miscellaneous receipts	600
Drawings	4,500

Adjustments:
a) Stock on 31^st March, 2018 Rs. 14,200
b) Income tax of Sangeetha paid Rs. 800
c) Charge interest on drawings @ 12% p.a.
d) Provide managerial remuneration @ 10% of net profit before charging such commission.

Calculate depreciation under Straight Line Method using Spreadsheet based on the details given below.

A	B	C	D	E	F
Asset	Cost of purchase Rs	Installation charge Rs	Transportation charge Rs	Salvage value Rs	Life in years
1. Machinery	200000	20000	5000	25000	10
2. Furniture	50000	4000	2000	5000	8