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11th Standard Accountancy Public Exam March 2019 Important 5 Marks Questions

Published on: 13/03/2019

11th Public Exam March 2019 Important 5 Marks Questions

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Questions:

Generic 5

40 x 5 = 200

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

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

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 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

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.

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

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.

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

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

10.

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

11.

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.

12.

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.

13.

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.

14.

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.

15.

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.

16.

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.

17.

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

18.

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.

19.

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.

20.

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

21.

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

22.

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

		Rs
2017 July 1	Received advance from cashier	2,000
7	Paid for writing pads and registers	100
8	Purchased white paperss	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

23.

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

24.

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

25.

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

26.

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

27.

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

28.

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

29.

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

30.

Karthick opened a provisions store on 1st 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

31.

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

32.

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

33.

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

34.

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. 3,00,000
10	Sold goods for Rs. 80,000
15	Withdrew cash from bank Rs. 10,000
30	Paid Salary Rs. 15,000

35.

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

36.

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

37.

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

38.

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

39.

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

40.

Narrate the evolution of accounting

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Answers Key:

Generic 5

40 x 5 = 200

Journal Entries of Mr. Renganathan
Date	Particulars		Debit Rs.	Credit Rs.
1.5.15	Cash A/c	Dr	50,000
	To Renganathan's Capital A/c			50,000
	(Amount invested in business)
5.5.15	Purchases A/c	Dr	15,000
	To Chandrasekar A/c			15,000
	(Credit purchases)
8.5.15	Nehru A/c	Dr	25,000
	To Sales A/c			25,000
	(Credit Sales)
10.5.15	Chandrasekar A/c	Dr	500
	To Purchases return A/c			500
	(Goods retuned to Chandrasekar)
15.5.15	Sales returns A/c	Dr	2,500
	To Nehru A/c			2,500
	(Goods returned from Nehru)
20.5.15	Chandrasekar A/c	Dr	14,500
	To cash A/c			14,500
	(Chandrasekar's account settled)
25.4.17	Cash A/c	Dr	22,500
	To Nehru A/c			22,500.
	(Nehru settle his account)

Trial Balance of Mrs. Sujatha as on 31.3.2013
S.No	Name of Account / Particulars	Debit balance Rs	Credit balance Rs
1	Drawings	43,000
2	Capital		2,12,000
3	Sundry Creditors		61,500
4	Bills Payable		22,000
5	Sundry Debtors	55,000
6	Bills receivable	72,600
7	Loan from Shameem		2,50,000
8	Furniture and Fittings	12,250
9	Opening stock	2,23,500
10	Cash at bank	86,250
11	Purchases	2,98,000
12	Sales		3,64,000
13	Salaries	44,950
14	Sales return	500
15	Purchases return		2,550
16	Travelling expenses	12,300
17	Commission paid	250
18	Discount earned	65,450
19	Cash in hand	65,040
		9,14,050	9,14,050

Assets = Capital + Liabilities
Capital + Liabilities = Assets
Rs. 1,00,000 + Rs. 50,000 Rs.1,50,000

Journal Entries of Mr. Shanmugam
Date	Particulars		Debit Rs.	Credit Rs.
1.8.13	Cash A/c	Dr.	4,50,000
	To Shanmugam's Capital A/c			4,50,000
	(Amount invested in business)
3.8.13	Purchases A/c	Dr.	70,000
	To Cash A/c			70,000
	(Cash purchases)
5.8.13	Cash A/c	Dr.	51,000
	To Sales A/c			51,000
	(Cash sales)
10.8.13	Purchases A/c	Dr.	2,00,000
	To Rangasamy A/c			2,00,000
	(Credit purchases)
16.8.2013	Rangasamy A/c	Dr.	5,000
	To Purchases returns A/c			5,000
	(Goods returned to Rangasamy)
27.8.13	Rangasamy A/c	Dr.	1,95,000
	To Cash A/c			1,95,000
	(Rangasamy's Account settled)

Dr. Ledger Accounts of Mr. Shanmugam Cash A/c Cr.
Date	Particulars	Amount Rs.	Date	Particulars	Amount Rs.
1.8.13	To Shanmugam's Capital A/c	4,50,000	3.8.13	By Purchases A/c	70,000
5.8.13	To Sales A/c	51,000	27.8.13	By Rangasamy A/c	1,95,000
			31.8.13	By Balance c/d	2,36,000
		5,01,000			5,01,000
1.9.13	To Balance b/d	2,36,000

Dr. Shanmugam's Capital A/c Cr.
Date	Particulars	Amount Rs.	Date	Particulars	Amount Rs.
31.8.13	To Balance c/d	4,50,000	1.8.13	By Cash A/c	4,50,000
		4,50,000			4,50,000
			1.9.13	By Balance b/d	4,50,000

Dr. Purchases A/c Cr.
Date	Particulars	Amount Rs.	Date	Particulars	Amount Rs.
3.8.13	To Cash A/c	70,000	31.8.13	By Balance c/d	2,70,000
10.8.13	To Rangasmy A/c	2,00,000
		2,70,000			2,70,000
1.9.13	To Balance b/d	2,70,000

Dr. Sales A/c Cr.
Date	Particulars	Amount Rs.	Date	Particulars	Amount Rs.
31.8.13	To Balance c/d	51,000	5.8.13	By Cash A/c	51,000
		51,000			51,000
			1.9.13	By Balance b/d	51,000

Dr. Rangasamy A/c Cr.
Date	Particulars	Amount Rs.	Date	Particulars	Amount Rs.
16.8.13	To Purchases returns A/c	5,000	10.8.13	By Purchases A/c	2,00,000
27.8.13	To Cash A/c	1,95,000
		2,00,000			2,00,000

Dr. Purchases returs A/c Cr.
Date	Particulars	Amount Rs.	Date	Particulars	Amount Rs.
31.8.13	To Balance c/d	5,000	16.8.13	By Rangasamy A/c	5,000
		5,000			5,000
			1.9.13	By Balance b/d	5,000

In the books of Hari Purchase return book
Date	Particulars	Debit Note No.	L.F.	Amount Rs.		Remarks
Date	Particulars	Debit Note No.	L.F.	Details	Total	Remarks
2017
Jan 5	Anand					Not in accordance with order
	5 clutch plates @ Rs. 200				1,000
Jan 14	Chandran
	4 brake shoes @ Rs. 200 each			800		Due to inferior quality
	10 rear view mirrors @ Rs. 350 each			3,500	4,300
	Purchase A/c Cr.				5,300

Dr. Purchases returns A/c Cr.
Date	Particulars	J.F.	Amount Rs.	Date	Particulars	J.F.	Amount Rs.
				2017
				Jan 31	By Sundry Creditors A/c		5,300

Dr. Anand accounts A/c Cr.
Date	Particulars	J.F.	Amount Rs.	Date	Particulars	J.F.	Amount Rs.
2017
Jan 5	To Purchases return A/c		1,000

Dr. Chandran returns A/c Cr.
Date	Particulars	J.F.	Amount Rs.	Date	Particulars	J.F.	Amount Rs.
2017
Jan 14	To Purchases return A/c		4,300

**In the books of Bragathish Journal entries**
Date	Particulars	Debits Rs	Credit Rs
2018 March 1.	Purchases A/c Dr. To Y and Co. A/c (Goods purchased on credit)	60,000	60,000
2.	D and Co. A/c Dr. To Sales A/c (Credit sales made to D and Co.)	30,000	30,000
3.	Y and Co.A/c Dr. To Bank A/c To Discount received A/c (Payment made to Y and Co. and discount received).	60,000	58,000 2,000
4.	Bills Receivable A/c Dr. To D and Co. A/c (Bills received from D and Co.)	30,000	30,000
5.	L A/c Dr. To Sales A/c (Goods sold on credit to L)	20,000	20,000
6.	M A/c Dr. To Sales A/c (Goods sold on credit to M)	40,000	40,000
7.	Bank A/c Dr. Discount allowed A/c To M A/c (Cheque received and discount allowed).	39,000 1,000	40,000
8.	Y and A/c Dr. To Purchases returns A/c (Goods returned to Y and Co.)	4,000	4,000
9.	Cash A/c (20,000 x 0.9) Dr. Bad debts A/c Dr. To L A/c (Cash received from L in final settlement.	18,000 2,000	20,000
10.	Sales returns A/c To M A/c (Goods returned by M).	3,000	3,000

In the books of Bharathi Journal entries
Date	Particulars	Debit Rs	Credit Rs.
2018
April 1	Purchases A/c Dr.	30,000
	To Bank A/c		30,000
	(Goods purchased and payment made through cheque)
5	Bank A/c Dr.	40,000
	To Sales A/c		40,000
	(Good sold and payment received through NEFT)
6	Cash A/c Dr.	20,000
	To Sales A/c		20,000
	(Goods sold for cash)
9	Abdul A/c Dr.	25,000
	To Sales A/c		25,000
	(Goods sold on credit to Abdul)
18	Cash A/c Dr.	10,000
	To Abdul A/c		10,000
	(Cash received from Abdul)

Dr. Cash account Cr.
Date	Particulars	Rs.	Date	Particulars	Rs.
2018			2018
April 1	To Balance b/d	25,000	April 30	By Balance c/d	55,000
6	To Sales A/c	20,000
18	To Abdul A/c	10,000
		55,000			55,000
May 1	To Balance b/d	55,000

Dr. Bank account Cr.
Date	Particulars	Rs.	Date	Particulars	Rs.
2018			2018
April 1	To Balance b/d	3,00,000	April 1	By Purchases A/c	30,000
5	To Sales A/c	40,000	30	By Balance c/d	3,10,000
		3,40,000			3,40,000
May 1	To Balance b/d	3,10,000

Dr. Purchases account Cr.
Date	Particulars	Rs	Date	Particulars	Rs
2018			2018
April 1	To Bank A/c	30,000	April 30	By Balance c/d	30,000
		30,000			30,000
May 1	To Balance b/d	30,000

Dr. Sales account Cr.
Date	Particulars	Rs.	Date	Particulars	Rs.
2018			2018
April 30	To Balance c/d	85,000	April 5	By Bank A/c	40,000
			6	By Cash A/c	20,000
			9	By Abdul A/c	25,000
		85,000			85,000
			May 1	By Balance b/d	85,000

Dr. Abdul account Cr.
Date	Particulars	Rs.	Date	Particulars	Rs.
2018			2018
April 9	To Sales A/c	25,000	April 18	By Cash A/c	10,000
	To Bank A/c		30	By Balance c/d	15,000
		25,000			25,000
May 1	To Balance b/d	15,000

In the books of Chitra Trial balance as on 31st March, 2017

S.No.	Name of the.account	Debit balance Rs	Credit balance Rs
1.	Adjusted purchases	60,000
2.	Rent paid	2,000
3.	Discount received		1,000
4.	Carriage inward	2,700
5.	Closing stock	18,600
6.	Advertisement	4,000
7.	General expenses	700
8.	Commission paid	1,500
9.	Capital		40,000
10.	Sales		48,500
	Total	89,500	89,500

In the books of Basu Journal entries
Date	Particulars		Debit Rs	Cresit Rs
2017 June 1	Cash A/c To Basu's capital A/c (Started business with cash)	Dr.	50,000	50,000
June 4	Furniture s A/c To Cash A/c (Furniture bought for cash)	Dr.	6,000	6,000
June 7	Machinery A/c To Harish A/c (Machinery bought on credit from Harish)	Dr.	10,000	10,000
June 10	Purchase A/c To Cash A/c (Goods bought for cash)	Dr.	4,000	4,000
June 18	Insurance premium A/c To Cash A/c (Insurance premium paid)	Dr.	100	100

Ledger accounts

Dr. Cash account Cr.
Date	Particulars	J.F.	Rs	Date	Particulars	J.F.	Rs
2017 June 1	To Basu's capital A/c		50,000	2017 June 4 10 18	By Furniture A/c By Purchases A/c By Insurance premium A/c.		6,000 4,000 100

Dr. Basu's Capital account Cr.
Date	Particulars	J.F.	Rs	Date	Particulars	J.F.	Rs
				2017 June 1	By Cash A/c		50,000

Dr. Furniture account Cr.
Date	Particulars	J.F.	Rs	Date	Particulars	J.F.	Rs
2017 June 4	To Cash A/c		6,000

Dr. Machinery account Cr.
Date	Particulars	J.F.	Rs	Date	Particulars	J.F.	Rs
2017 June 7	To Harish A/c		10,000

Dr. Harish account Cr.
Date	Particulars	J.F.	Rs	Date	Particulars	J.F.	Rs
				2017 June 7	By Machinery A/c		10,000

Dr. Purchases account Cr.
Date	Particulars	J.F.	Rs	Date	Particulars	J.F.	Rs
2017 June 10	To Cash A/c		4,000

Dr. Insurance premium account Cr.
Date	Particulars	J.F.	Rs	Date	Particulars	J.F.	Rs
2017 June 18	To Cash A/c		100

10.

Journal of Mr. Mani
Date	Particulars		Debit	Credit
2017 June 3	Cash A/c	Dr	60000
	To Ramkumar A/c			60000
	(Being cash received)
4	Purchases A/c	Dr	15000
	To Cash A/c			15000
	(Being cash purchases)
11	Damodaran's A/c	Dr	22000
	To Sales A/c			22000
	(Being credit sales to Damodaran)
13	Ramkumar A/c	Dr	40000
	To Cash A/c			40000
	(Being cash paid to Ramkumar)
17	Cash Ale	Dr	20000
	To Damodaran A/c			20000
	(Being credit received from Damodaran)
20	Furniture A/c	Dr	5000
	To Jagadeesan A/c			5000
	(Being furniture purchased on credit)
27	Rent A/c	Dr	15000
	To Cash A/c			14750
	(Being rent paid)
30	Salary A/c	Dr	2500
	To Cash A/c			2500
	(Being salary paid)

11.

**Dr Trading and profit and loss account of Sangeetha for the year ended 31^st March 2018 Cr**
Particulars	Amount Rs.	Particulars	Amount Rs.
To Opening stock	12,000	By Sales	95,000
To Purchases	75,000	By Closing stock	14,200
To.Gross profit c/d	22,200
(Transferred to profit and loss account)
	1,09,200		1,09,200
To Salaries	6,600	By Gross profit b/d	22,200
To Establishment expenses	4,500	(Transferred from trading account)
To Advertisement	2,300	By Interest on drawings	540
To Income tax	800	By Miscellaneous receipts	600
To Managerial remuneration	914
To Net profit c/d	8,226
(Transferred to capital account)
	23,340		23,340

**Balance sheet for the year ended 31^st March 2018**
Liabilities	Amount Rs.	Amount Rs.	Assets	Amount Rs.	Amount Rs.
Capital	20,000		Bills receivable		8,000
Add: Net profit	8,226		Furniture		10,000
	28,226
Less : Drawings	4,500		Cash at bank	3,200
	23,726		Less : Income tax payable	800
Less: Interest on drawings	540				2,400
		23,186	Closing stock		4,200
Bills payable		10,500
Manager's remuneration		914
		34,600			34,600

12.

Working Notes:

		Rs
Sundry debtors	=	50,000
Less: Additional Bad debts	=	3,000
	=	47,000
Provision for Bad and doubtful debts \(\left[47,000\times{10\over100}\right]\)	=	4,700

**Adjusting Entries**
Particulars		Debit Rs	Credit Rs
Bad debts A/c	Dr	3,000
To Sundry Debtors A/c			3,000
(Bad debts written off)
Profit and Loss A/c	Dr	4,700
To Provision for bad and doubtful debts A/c			4,700
(Provision for bad and doubtful debts created)

**Dr Profit and loss account Cr**
Particulars	Amount Rs	Amount Rs
To Provision for bad and doubtful debts A/c	4,700
Add : Bad debts	3,000
	7,700
Add : Additional bad debts	3,000
	10,700
Less: Provision for doubtful debts	5,000
Profit and loss account		5,700

**Balance Sheet**
Assets	Amount Rs	Amount Rs
Sundry debtors	50,000
Less : Additional bad debts	3,000
	47,000
Less: Provision for Bad and doubtful debts 10%	4,700
		42,300

13.

**Adjusting Entries**
Date	Particulars		Debit Rs	Credit Rs
a	Closing Stock A/c	Dr	5,000
	To Trading A/c			5,000
	(Closing stock recorded)
b	Salaries A/c	Dr	150
	To Outstanding Salaries A/c			150
	(Salaries out-standings)
c	Insurance prepaid A/c	Dr	450
	To Insurance A/c			450
	(Insurance prepaid)
d	Received commission A/c	Dr	20,000
	To commission received in advance A/c			20,000
	(Income received in advance adjusted)
e	Accrued interest on investment A/c	Dr	1,000
	To Interest on investment A/c			1,000
	(Interest accrued but not received adjusted)

14.

Dr. Profit and Loss Account for the year ended 31st December 2017 Cr.
Particulars	Rs.	Rs.	Particulars	Rs.	Rs.
To Salaries		18,000	By Gross profit b/d		50,000
To Office rent		12,000	By Rent received	2,000
To Advertisement		8,000	Add: Rent accrued	500	2,500
To Carriage outwards		2,500	By Discount received		3,000
To Fire insurance premium	6,500
Less: Prepaid	1,500	5,000
To Manager’s commission		1,000
To Net profit (transferred to capital account		9,000
		55,500			55,500

Working note:
Manager’s Commission = Net profit before charging commission × \(\frac{Rate \ of \ commission}{100}\)
Net profit = 55,500 – (18,000 + 12,000 + 8,000 + 2,500 + 5,000) = Rs. 10,000
Manager’s commission = 10,000 × \(\frac{10}{100}=\) 1,000

15.

Dr. Machinery Account Cr
Date	Particulars	Rs	Date	Particulars	Rs
2015			2015
Jan 1	To Bank A/c	1,00,000	Dec 31	By Depreciation A/c	10,000
			Dec 31	By Balance c/d	90,000
		1,00,000			1,00,000
2016			2016
Jan 1	To Balance b/d	90,000	Dec 31	By Depreciation A/c	12,500
June 1	To Bank A/c	50,000	Dec 31	By Balance c/d	1,27,500
		1,40,000			1,40,000
2017			2017
Jan 1	To Balance b/d	1,27,500	Dec 31	By Depreciation A/c	15,500
Oct 1	To Bank A/c	20,000	Dec 31	By Balance c/d	1,32,000
		1,47,500			1,47,500
2018 Jan1	To Balance b/d	1,32,000

16.

Working note:
Particulars	Rs.
Sundry debtors	20,000
Less: Provision for bad and doubtful debts (closing) (20,000 x 5/100)	1,000
	19,000
Less: Provision for discount on debtors (19,000 x 2/100)	380
	18,620

Dr. Profit and loss account for the year ended 31st December 2016 Cr.
Particulars	Rs.	Rs.
To Provision for bad and doubtful debts (closing)	1,000
Add: Bad debts	1,800
	2,800
Less: Provision for bad and doubtful debts (opening)	1,500	1,300
To Provision for discount (closing)	380
Add: Discount allowed	600
	980
Less: Provision for discount (opening)	500	480

Balance Sheet as on 31st December 2016
Assets	Rs.	Rs.
Sundry debtors	20,000
Less: Provision for bad and doubtful debts	1,000
	19,000
Less: Provision for discount on debtors	380	18,620

17.

Procedure and answer
(i) Open a new spreadsheet in MS-EXCEL
(ii) Enter labels and values in the cells as given above
(iii) Write total cost in G1 and annual depreciation in H1
(iv) Calculate total cost in the cell G2 by the formula
= Sum(B2:D2) and copy formula to cell G3
(v) Calculate annual depreciation in the cell H2 by the formula
= SLN(G2,E2,F2) and copy formula to cell H3
Output

A	B	C	D	E	F	G	H
Asset	Cost of purchase Rs	Installation charge Rs	Transportation charge Rs	Salvage value Rs	Life in years	Total cost Rs	Annual depreciation Rs
1. Machinery	200000	20000	5000	25000	10	225000	20,000
2. Furniture	50000	4000	2000	5000	8	56000	6,375

18.

Calculation of profit or loss on sale of machinery
Particulars	Amount Rs.
Cost price	4,50,000
Add : Installation charges	50,000
	5,00,000
Less : Depreciation for 2010 - 11	75,000
\(\left(5,00,000\times{15\over 100}\right)\)
	4,25,000
Less: Depreciation for 2011 - 12	75,000
\(\left(5,00,000\times{15\over 100}\right)\)
	3,50,000
Less: Depreciation for. 2012 - 13	75,000
\(\left(5,00,000\times{15\over 100}\right)\)
Book value on the date of sale	2,75,000
Less: Selling price	3,85,000
Profit on sale	1,10,000

The selling price is more than the book value on the date of sale of machinery. Hence, the difference 1,10,000 is profit on sale of machinery.

19.

	Particulars		Dr.	Cr.
a	Purchases A/c	Dr	100
	To Suspense A/c			100
	(Under casting of purchases book rectified)
b	Discount allowed A/c	Dr	575
	To Suspense A/c			575
	(Omission to post the total of discount allowed, now rectified)
c	Suspense A/c		180
	To Sales A/c			180
	(Lesser amount carried forward in the sales book rectified)
d	Suspense A/c (18,000 −1,800)	Dr	16,200
	To salaries A/c			16,200
	(Excess amount posted to the salaries account rectified)
e	Mukilan A/c (1,500 −150)	Dr	1,350
	To Suspense A/c			1,350
	(Excess amount posted to Mukilan account rectified)

20.

Dr. Profit and loss account for the year ended 31st December, 2017 Cr.
Particulars	Rs	Particulars	Rs
To Trade expenses	20,000	By Gross Profit b/d	21,05,000
To Carriage on sales	1,00,000	By Commission received	14,400
To Office salaries	2,38,000	By Miscellaneous receipts	5,000
To Postage	2,200
To Legal charges	4,000
To Audit fees	16,000
To Donation given	11,000
To Sundry expenses	3,600
To Selling expenses	53,200
To Discount allowed	30,000
To Office lighting	19,800
To Interest on loan	22,000
To Stationery (office)	14,000
To Export duty	23,000
To Travelling expenses	66,000
To Net Profit (transferred to capital account)	15,01,600
	21,24,400		21,24,400

21.

S.No	Transactions	Classification
i)	Registration expenses incurred for the purchase of land.	Capital expenditure
ii)	Repairing charges paid for remodeling the old building purchased	Capital expenditure
iii)	Carriage paid on goods purchased	Revenue expenditure
iv)	Legal expenses paid for raising of loans	Capital expenditure

22.

Analytical Petty Cash Book
Dr. Analysis of Payments Cr.
Receipts ( Rs)	C.B.F.N.	Date	Particulars	V.N.	Total payment (Rs)	Printing & Stationery (Rs)	Conveyance (Rs)	Wages (Rs)	Postage and telegrams (Rs)	Carriage (Rs)	Sundries (Rs)
	C.B.F.N.	Date	Particulars	V.N.	Total payment (Rs)		2017July				Sundries (Rs)
2,000		1	To Cash
		7	By Writing pads and registers		100	100
		8	By White papers		50	50
		10	By Auto charges		200		200
		15	By Wages		300			300
		18	By Postal charges		100				100
		21	By Stationery		450	450
		23	By Tea expenses		60						60
		25	By Speed Post		150				150
		27	By Refreshment Expenses		250						250
		31	By Carriage		150					150
					1,810	600	200	300	250	150	310
		31	By Balance c/d		190
2,000					2,000
190		Aug 1	To Balance b/d To Cash
1810

23.

Bank Reconciliation Statement
Particulars	Amount Rs	Amount Rs
Bank overdraft as per bank statement		6,500
Add: Cheques issued but not presented for payment	8,750
Directly deposited into cash	3,500	12,250
		18,750
Less: Cheques deposited but not credited	500
Bank charges not entered	200
Bank paid rent as per standing instruction	1,900	2,680
Overdraft as per cash book		16,070

24.

S.No.	Transaction	Cash	Stock	Debtors	Furniture	Total Assets		Total Liabilities	Creditors	Capital
i)	Started Business with Cash	+1,75,000	0	0	0					+1,75,000
	Balance	+1,75,000								+1,75,000
	Equation					+1,75,000	=	+1,75,000
ii)	Purchased goods from Rohit		+ 50,000						+50,000
	Balance	+1,75,000	+ 50,000						+50,000	+1,75,000
	Equation					+2,25,000	=	+2,25,000
iii)	Sold goods on credit Manish		-17,500	+ 20,000						+ 2,500
	Balance	+1,75,000	+ 32,500	+ 20,000					+50,000	+1,77,500
	Equation					+2,27,500	=	+2,27,500
iv)	Purchase furniture for office use	- 10,000			+ 10,000
	Balance	+1,65,000	+ 32,500	+20,000	+ 10,000				+50,000	+1,77,500
	Equation					+2,27,500	=	+2,27,500
v)	Cash paid to if Rohit in full settlement	- 48,500							-50,000	+ 1,500
	Balance	+1,16,500	+ 32,500	+ 20,000	+ 10,000				0	+1,79,000
	Equation					+1,79,000	=	+1,79,000
vi)	Cash received from Manish	+ 20,000		-20,000
	Balance	+1,36,500	+ 32,500	0	+ 10,000				0	+1,79,000
	Equation					+1,79,000	=	+1,79,000
vii)	Rent Paid	-1,000								-1,000
	Balance	+1,35,500	+ 32,500	0	+ 10,000				0	+1,78,000
	Equation					+1,78,000	=	+1,78,000
viii)	Cash withdrew for Personal use	- 30,000								- 30,000
	Balance	+ 1,05,500	+ 32,500	0	+ 10,000				0	+1,48,000
	Equation					+1,48,000	=	+1,48,000

25.

Bank Reconciliation Statement as on 31^st March 2018
Particulars	Amount Rs	Amount Rs
Bank balance as per bank statement		15,000
Add: Bank charges not recorded in the cash book	250
Interest charged by bank	500
Bank paid Insurance Premium	300
Cheques deposited but not yet credited	900	1,950
		16,950
Less: Cheques issued but not yet presented	2,500
Balance as per Cashbook		14,450

26.

Bank Reconciliation Statement of Kamakshi Traders as on 31^st March 2018
Particulars	Amount Rs	Amount Rs
Balance as per cash book		15,000
Add: Cheques issued but not presented	1,500
Divided Received	200
Net payment entered twice in the Cashbook	300	2,000
		17,000
Less: Cheques deposited but not yet credited	1,000
Direct payment by bank	1,000
Locker Rent charged by the bank	1,200
Wrongly Debited in the bank	500	3,700
Balance as per bank statement		13,300

27.

Dr. In the Books of Pandeeswari Cash Book (Single Column) Cr.
Date	Receipts	Amount Rs	Date	Payments	Amount Rs
2017 June			2017 June
2	To Pandeeswari Capital A/c	50,000	8	By Rent A/c	4,000
14	To Sales A/c	10,000	10	By Printer A/c	7,500
17	To Commission A/c	6,000	11	By Purchases Alc	15,000
			19	By Interest on Loan	2,000
			20	By Drawings Alc	3,000
			21	By Post charges Alc	3,500
			30	By Balance c/d	31,000
		66,000			66,0000
July 1	To Balance b/d	31,000

28.

Journal Entries
Date	Particulars	Debit Rs.	Credit Rs.
2015 Feb. 1	Cash A/c Dr. To Sales A/c (Cash Sales)	5,000	5,000
2	Purchases A/c Dr. To Kumar's A/c (Credit purchases)	4,000	4,000
5	Prabu A/c Dr. To Sales A/c (Credit Sales)	8,000	8,000
12	Cash A/c Dr. To Prabu A/c (Cash paid)	1,200	1,200
20	Kumar A/c Dr. To Cash A/c (Cash paid)	2,000	2,000
25	Salary A/c Dr. To Cash A/c (Salary paid)	3,000	3,000

Dr. Ledger Account Cash Account Cr.
Date	Particulars	Amount Rs	Date	Particulars	Amount Rs
2015 Feb. 1	To Sales A/c	5,000	2015 Feb 20	By Kumar A/c	2,000
12	To Prabu A/c	1,200	25	By Salary A/c	3,000
			28	By Balance c/d	1,200
		6,200			6,200
2016 Mar. 1	To Balance b/d	1,200

Dr. Sales Account Cr.
Date	Particulars	Amount Rs	Date	Particulars	Amount Rs
2015 Feb. 28	To Balance c/d	13,000	2015 Feb. 1	By Cash A/c	5,000
			5	By Prabu A/c	8,000
		13,000			13,000
			Mar. 1	By Balance b/d	13,000

Dr. Purchases Account Cr.
Date	Particulars	Amount Rs.	Date	Particulars	Amount Rs.
2015 Feb. 2	To Kumar A/c	4,000	2015 Feb. 28	By Balance c/d	4,000
		4,000			4,000
Mar. 1	To Balance b/d	4,000

Dr. Kumar Account Cr.
Date	Particulars	Amount Rs	Date	Particulars	Amount Rs
2015 Feb. 20	To Cash A/c	2,000	2015 Feb. 2	By Purchases A/c	4,000
28	To Balance c/d	2,000
		4,000			4,000
			2015 Mar. 1	By Balance b/d	2,000

Dr. Prabhu Account Cr.
Date	Particulars	Amount Rs	Date	Particulars	Amount Rs
2015 Feb. 5	To sales A/c	8,000	2015 Feb. 12	By Cash A/c	1,200
			28	By Balance c/d	6,800
		8,000			8,000
2015 Mar. 1	To Balance b/d	6,800

Dr. Salary Account Cr.
Date	Particulars	Amount Rs	Date	Particulars	Amount Rs
2015 Feb. 25	To Cash A/c	3,000	2015 Feb. 28	By Balance c/d	3,000
		3,000			3,000
Mar. 1	To Balance b/d	3,000

29.

Journal Entries
Date	Particulars	Debit Rs	Credit Rs
2014 Aug. 1	Cash A/c Dr. To Capital A/c (Amount invested in business)	80,000	80,000
7	Purchases A/c Dr. To Cash A/c (Cash purchases)	10,000	10,000
10	Purchases A/c Dr. To Hema A/c (Credit purchases)	42,000	42,000
22	Hema A/c Dr. To Purchases return A/c (Goods returned to Hema)	2,000	2,000
23	Hema A/c Dr. To Cash A/c (Cash paid)	10,000	10,000

Dr. Ledger Account Cash Account Cr.
Date	Particulars	Amount Rs	Date	Particulars	Amount Rs
2016 Sep. 1	To Capital A/c	80,000	2016 Sep. 7	By purchases A/c	10,000
			23	By Hema A/c	10,000
			30	By Balance c/d	60,000
		80,000			80,000

Dr. Capital Account Cr.
Date	Particulars	Amount Rs	Date	Particulars	Amount Rs
2016 Sep. 30	To Balance c/d	80,000	2016 Sep. 1	By Cash A/c	80,000
		80,000			80,000
			2016 Oct. 1	By Balance b/d	80,000

Dr. Purchases Account Cr.
Date	Particulars	Amount Rs	Date	Particulars	Amount Rs
2016 Sep. 7	To Cash A/c	10,000	2016 Sep. 30	By Balance c/d	52,000
10	To Hema A/c	42,000
		52,000			52,000
Oct. 1	To Balance b/d	52,000

Dr. Ledger Account Cash Account Cr.
Date	Particulars	Amount Rs	Date	Particulars	Amount Rs
2016 Sep. 22	To Purchases return A/c	2,000	2016 Sep. 10	By Purchases A/c	42,000
23	To Cash A/c	10,000
30	To Balance c/d	30,000
		42,000			42,000
			2016 Oct. 1	By Balance b/d	30,000

Purchases return c/d
Date	Particulars	Amount Rs	Date	Particulars	Amount Rs
2016 Sep. 30	To Balance A/c	2,000	2016 Sep. 22	By Hema A/c	2,000
		2,000			2,000
			2016 Oct. 1	By Balance b/d	2,000

30.

Date	Particulars		Debit Rs	Credit Rs
2017 April 1	BankA/c	Dr	2,00,000
	To Cash A/c			2,00,000
	(Opening a current account)
3	Purchases A/c	Dr	40,000
	To Bank A/c			40,000
	(Goods purchased by cheque)
5	Investments A/c	Dr	40,000
	To Karthick capital A/c			40,000
	(Being investments made)
6	Cash A/c	Dr	20,000
	To Sales A/c			20,000
	(Sales made and cheque received).
	Bank A/c	Dr	20,000
	To Cash A/c			20,000
	(Cheque received from Radha and deposited in the CDM)
7	Cash A/c	Dr	15,000
	To Bank A/c			15,000
	(Amount withdrawn from bank for office use)
10	Purchases A/c	Dr	10,000
	To Bank A/c			10,000
	(Cash deposited in CDM)
12	Bank A/c	Dr	10,000
	To Sales A/c			10,000
	(Sales made and money credited through debit card)
15	Bank A/c	Dr	1,000
	To Interest on securities A/c			1,000
	(Interest on securities received by the bank)
20	Insurance A/c	Dr	2,000
	To Bank A/c			2,000
	(Insurance paid by the bank)
25	Bank A/c	Dr	6,000
	To Sales A/c			6,000
	(Sales made and money received through CDM)

31.

In the Books of Kamala Stores Sales Book
Date	Particulars	Outward Invoice No.	L.F	Amount
Date	Particulars	Outward Invoice No.	L.F	Details (Rs)	Total (Rs)
2017 May 2	Naveen Stores
	5 computer tables @ Rs 1,750				8,750
May 9	Deepa& Co.,
	6 dining tables @ Rs 1,900				11,400
May 15	Rajesh
	10 dressing tables @ Rs 2,750				27,500
May 24	Anil
	5 wooden tables @ Rs 1,250				6,250
	Sales A/c Cr.				53,900

Note:
(i) Sold of old computers on May 27 should not be recorded in this book, because computer is an asset for firm dealing in Furniture.
(ii) The transaction of cash sales on May 29 should not be recorded in this book.

32.

In the books of Rohini Trial Balance as on 31.03.2016
S.No	Name of account	Debit balance Rs.	Credit balance Rs.
1.	Computer	26,000
2.	Salaries to drivers	4,000
3.	Taxes and insurance	16,500
4.	Fuel and Power	2,000
5.	Rent and rates	1,500
6.	Freehold land	30,000
7.	Bank loan		15,000
8.	Fees received		18,150
9.	Capital		53,850
10.	Advertisement	7,000	55,350
	Total	87,000	87,000

33.

Dr. Sales Account Cr.
Date	Particulars	J.F.	Amount Rs.	Date	Particulars	J.F.	Amount Rs.
				2018 Jan. 1	By Sam A/c		4,000
				4	By Suresh A/c		2,500
				11	By Joy A/c		8,000
2018 Jan. 31	To Balance c/d		17,500	17	By Rajan A/c		3,000
			17,500				17,500
				2018 Feb. 1	By Balance b/d		17,500

34.

In the books of Mr.Ravi Journal Entries
Date	Particulars	Debit Rs.	Credit Rs.
2016 June 1	Cash A/c Dr. To Ravi's Capital A/c (Amount invested in business)	5,00,000	5,00,000
3	Bank A/c Dr. To Cash A/c (Amount paid into bank)	80,000	80,000
5	Building A/c Dr. To Cash A/c (Buildings purchased)	3,00,000	3,00,000
10	Cash A/c Dr. To Sales A/c (Cash Sales)	80,000	80,000
15	Cash A/c Dr. To Bank A/c (Amount drawn from bank)	10,000	10,000
30	Salary A/c Dr. To Cash A/c (Salary paid)	15,000	15,000

Ledger Account Cash Account
Date	Particulars	Amount Rs.	Date	Particulars	Amount Rs.
2016 June 1	To Ravi's Capital A/c	5,00,000	2016 June 3	By Bank A/c	80,000
10	To Sales A/c	80,000	5	By Building A/c	3,00,000
15	To Bank A/c	10,000	30	By Salary A/c	15,000
			30	By Balance c/d	1,95,000
		5,90,000			5,90,000
2016 July 01	To Balance b/d	1,95,000

Ravi's Capital Account
Date	Particulars	Amount Rs.	Date	Particulars	Amount Rs.
2016 June 30	To Balance c/d	5,00,000	2016 June 1	By Cash A/c	5,00,000
		5,00,000			5,00,000
			2016 July 1	By Balance b/d	5,00,000

Bank Account
Date	Particulars	Amount Rs.	Date	Particulars	Amount Rs.
2016 June 3	To Cash A/c	80,000	2016 June 15	By Cash A/c	10,000
			30	By Balance c/d	70,000
		80,000			80,000
2016 July 1	To Balance b/d	70,000

Dr. Building Account Cr.
Date	Particulars	Amount Rs.	Date	Particulars	Amount Rs.
2016 June 5	To Cash A/c	3,00,000	2016 June 30	By Balance c/d	3,00,000
		3,00,000			3,00,000
2016 July 1	To Balance b/d	3,00,000

Dr. Sales Account Cr.
Date	Particulars	Amount Rs.	Date	Particulars	Amount Rs.
2016 June 30	To Balance c/d	80,000	2016 June 10	By Cash A/c	80,000
		80,000			80,000
			2016 June 01	By Balance b/d	80,000

Dr. Salary Account Cr.
Date	Particulars	Amount Rs.	Date	Particulars	Amount Rs.
2016 June 30	To Cash A/c	15,000	2016 June 30	By Balance c/d	15,000
		15,000			15,000
2016 July 1	To Balance b/d	15,000

35.

S.No.	Transaction	Cash Rs.	Stock Rs.	Prepaid Expenses Rs.	Debtors Rs.	Total Assets Rs.	=	Total Liabilities Rs.	Capital Rs.	Creditors Rs.
i)	Started business with cash and stock	+8,000	+75,000						+1,55,000
	Balance	+80,000	+75,000						+1,55,000
	Equation					+1,55,000	=	+1,55,000
ii)	Credit sales		-50,000		+50,000
	Balance	+80,000	+25,000		+50,000				+1,55,000
	Equation					+1,55,000	=	+1,55,000
iii)	Received cash from Shanmugam	+49,000			-50,000				-1,000
	Balance	+1,29,000	+25,000		0				+1,54,000
	Equation					+1,54,000	=	+1,54,000
iv)	Salary outstanding								-3,000	+3,000
	Balance	+1,29,000	+25,000						+1,51,000	+3,000
	Equation					+1,53,000	=	+1,53,000
v)	Goods coasting given as charity		-1,000						-1,000
	Balance	+1,29,000	+24,000						+1,50,000	+3,000
	Equation					+1,53,000	=	+1,53,000
vi)	Insurance premium paid	-3,000							-3,000
	Balance	+1,26,000	+24,000						+1,47,500	+3,000
	Equation					+1,50,000	=	+1,50,000
vii)	Prepaid insurance			+500					+500
	Balance	+1,26,000	+24,000	+500					+1,47,500	+3,000
	Equation					+1,50,500	=	+1,50,500

36.

S.No.	Transaction	Cash Rs.	Stock Rs.	Total Assets Rs.	=	Total Liabilities Rs.	Capital Rs.
a)	Started business with cash	+80,000					+80,000
	Balance	+80,000					+80,000
	Equation			+80,000	=	+80,000
b)	Cash purchases	-30,000	+30,000
	Balance	+50,000	+30,000				+80,000
	Equation			+80,000	=	+80,000
c)	Paid salaries by cash	-5,000					-5,000
	Balance	+45,000	+30,000				+75,000
	Equation			+75,000	=	+75,000
d)	Deposited money in CDM	-5,000	+5,000
	Balance	+40,000	+35,000				+75,000
	Equation			+75,000	=	+75,000
e)	Introduced additional capital	+10,000					+10,000
	Balance	+50,000	+35,000				+85,000
	Equation			+85,000	=	+85,000

37.

Dr Ledger Account Cash Account Cr

Date	Particulars	J.F.	Amount Rs.	Date	Particulars	Amount Rs.
2017 July 1	To Sankar Capital A/c		1,00,000	2017 July 9	By Wages A/c	6,000
5	To Sales A/c		10,000	19	By Salaries A/c	8,000
				20	By Advertisement A/c	4,000
				31	By Balance c/d	92,000
			1,10,000			1,10,000
2017 Aug. 1	To Balance b/d	92,000

Dr Shankar Capital Account Cr

Date	Particulars	Amount Rs.	Date	Particulars	Amount Rs.
2017 July 31	To Balance c/d	1,00,000	2017 July 1	By Cash A/c	1,00,000
		1,00,000			1,00,000
			2017 Aug. 1	By Balance b/d	1,00,000

Dr Sales Account Cr

Date	Particulars	Amount Rs.	Date	Particulars	Amount Rs.
2017 July 31	To Balance c/d	10,000	2017 July 05	By Cash A/c	10,000
		10,000			10,000
			2017 Aug. 1	By Balance b/d	10,000

Dr Wages Account Cr

Date	Particulars	Amount Rs.	Date	Particulars	Amount Rs.
2017 July 9	To Cash A/c	6,000	2017 July 31	By Balance c/d	6,000
		6,000			6,000
2017 Aug. 1	To Balance b/d	6,000

Dr Salaries Account Cr

Date	Particulars	Amount Rs.	Date	Particulars	Amount Rs.
2017 July 19	To Cash A/c	8,000	2017 July 31	By Balance c/d	8,000
		8,000			8,000
2017 Aug. 1	To Balance b/d	8,000

Dr Advertisement Account Cr

Date	Particulars	Amount Rs.	Date	Particulars	Amount Rs.
2017 July 20	To Cash A/c	4,000	2017 July 31	By Balance c/d	4,000
		4,000			4,000
2017 Aug. 1	To Balance b/d	4,000

38.

Trial Balance

S.No	Name of account	Debit Balance	Credit Balance
1	Bank Loan		2,00,000
2	Bills Payable		1,00,000
3	Stock	70,000
4	Capital		2,50,000
5	Purchases	1,80,000
6	Sales		3,00,000
7	Debtors	4,00,000
8	Bank	2,00,000
	Total	8,50,000	8,50,000

39.

There are three bases of accounting in common usage, namely
(i) Cash basis
(ii) Accrual or mercantile basis
(iii) Mixed or hybrid basis
(i) Accounting on cash basis:
1. Under cash basis of accounting, actual cash receipts and actual cash payments are recorded.
2. Credit transactions are not recorded till the cash is actually received or paid.
3. Under the basis,
a) Any income received
b) Any expenditure paid
c) Any asset purchased for which cash is paid.
d) Any liability paid during the accounting period. Whether related to the past, present or future is taken into account.
(ii) Accrual or mercantile basis :
1) Under accrual basis of accounting, the income whether received or not but has been earned or accrued during the period and expenses incurred whether paid or not are recorded.
2) Under this basis,
a) Any income earned whether received or not
b) Any expenditure incurred whether paid or not
c) Any asset purchased whether cash is paid or not
d) Any liability incurred whether paid or not during the accounting period is recorded.
(iii) Hybrid or mixed basis :
1. Under mixed basis of accounting both cash basis and accrual basis are followed.
2. Incomes are generally recorded on cash basis whereas expenses are generally taken on accrual basis.

40.

(i) In the earliest days of civilisation, accounting was done by stewards who managed the properties of wealthy people. They rendered accounts periodically to the owners of property.
(ii) The stewardship accounting is said to be the root of accounting. Records of debit and credit were found in the 12^th century itself.
(iii) In 1494, Luca Pacioli an Italian developed double-entry book-keeping system.
(iv) Due to the industrial revolution in the 18th and 19^thcenturies, large scale operations were carried on and joint stock companies emerged as an important form of organisation which required separation of ownership from management.
(v) Hence, to safeguard the interest of owners and investors, the business establishments required detailed information about business which paved the way for development of comprehensive financial accounting information system.
(vi) In the 20^th century, the need for analysis of financial information for managerial decision making caused emergence of Management Accounting as a separate branch of accounting.
(vii) Though accounting was individual centric in the initial stage of evolution of accounting, it has gradually developed into Social Responsibility Accounting in the 21^st century, due to the vast growth in business activities as a result of development in various fields.