VERY SHORT ANSWER QUESTIONS
VQ-1._____ If capital of a business is Rs.60,000 and outside liabilities are Rs.90,000, calculate total assets of the business.
Ans: Rs.150,000
VQ-2._____ If total assets of a business are Rs.780,000 and net worth is Rs.480,000. Calculate creditors. Ans: 300,000
VQ-3._____ If the capital of a business is Rs.420,000 and liabilities are of Rs.240,000. Calculate total assets. Ans: 660,000
VQ-4._____ Give an example for each of the following types of transaction:
a. Increase in one asset, decrease in another asset. b. Increase in assets, increase in liabilities.
c. Increase in assets, increase in owner's capital. d. Decrease in assets, decrease in liabilities.
e. Decrease in assets, decrease in owner's capital. f. Increase in liabilities, decrease in owner's capital.
g. Decrease in liabilities, increase in owner's capital.
VQ-5._____ Indicate the effect of each transaction on assets, liabilities and stockholders' equity.
i. Issued common stock to investors in exchange for cash stockholders' equity.
ii. Purchased equipment from a supplier of equipment on credit.
iii. Incurred advertising expenses on account
iv. Paid dividend to stockholders
Solution,
i. Effect Increase cash (Assets)
Increase capital (shareholders' equity)
ii. Effect Increase equipment (Assets)
Increase creditors (liabilities)
iii. Effect Decrease shareholders' equity (expenses made)
Increase account payable (liabilities)
iv. Effect Decrease cash (Assets) expenses paid
Decrease shareholders' equity (expenses)
VQ-6._____ At the beginning of the year, a company has total assets of Rs. 1,050,000 and total liabilities of Rs. 500,000. During
the year, total assets increase by Rs. 250,000 and total liabilities decreased by Rs. 100,000.
Required: Accounting equation to find out the amount of equity at the end of the year.
Solution,
Accounting Equation
S.N Transaction Assets = Liabilities + Shareholders' Equity
At beginning ..................................................................................................1..0..,.5..0..,.0..0..0.......=................................5..,.0..0..,.0..0..0.....+........................... ?
Beginning equation .....................................................................................1..0..,.5..0..,.0..0..0.......=................................5..,.0..0..,.0..0..0.....+........................... 5,50,000
Assets increased and liabilities decreased ...................................................+..2..,.5..0..,.0..0..0.......=..............................–..1..,.0..0..,.0..0..0.....+........................... 350,000
Final Equation ..............................................................................................1..3..,.0..0..,.0..0..0.......=................................4..,.0..0..,.0..0..0.....+........................... 9,00,000
VQ-7._____ Prepare accounting equation from the following
i. A new business was started by collecting Rs. 100 per share by issuing 5,000 shares
ii. Paid Rs. 26,000 for wages including advance wages of Rs. 2,000
Solution, Accounting Equation
S.N Transaction Assets = Liabilities + Shareholders' Equity
i. Started business –
500,000 500,000
Beginning equation 500,000 500,000
ii. Paid wages with advance +2,000 –24,000
–26,000
Final equation 524,000 524,000
VQ-8._____ Prepare accounting equation from the following
i. Started business with cash Rs. 100,000 and machinery Rs. 50,000
ii. Paid wages Rs. 10,000 and still outstanding wages Rs. 1,000.
2 Accounting-XI
Solution,
Accounting Equation
Date Transaction Assets = Owner's equity + Liabilities
a. Started business with cash and machinery......................................1..0..0..,.0..0..0...(..C..a..s..h..).......................................1..5..0..,.0..0..0..................................... 0
50,000 (Machine)
Beginning equation 150,000 150,000 0
b. Paid wages and still outstanding .................................................................(.1..0..,.0..0..0..)......................................(..1..1..,.0..0..0..).................................... 1,000
Final equation 140,000 139,000 1,000
SHORT ANSWER QUESTIONS
SQ-1._____ You are given the following transactions:
i. Commencement of business with Rs.5,00,000
ii. Purchased goods for Rs.1,00,000 from A and Co. and made partial payment of Rs.60,000
iii. Salary paid Rs.20,000
iv. Paid rent Rs.5,000 including advance Rs.2,000
v. Commission received Rs.13,000 including advance commission receive Rs.3,000
Required: Accounting equation
Solution,
Accounting Equation
SN Transactions Assets .= Capital .+ Liabilities
i. Commenced business 500,000
500,000 500,000 -
Initial equation 100,000 40,000
ii. Purchased goods and partial payment made (60,000) 500,000 40,000
540,000 40,000
New equation (20,000) 500,000
iii. Paid salary 520,000 (20,000) 40,000
(5,000) 480,000 3,000
New equation 2,000 43,000
iv. Rent paid including advance 517,000 (3,000)
13,000 477,000
New equation 530,000 10,000
v. Commission received including advance commission receive 487,000
Final equation
SQ-2._____ The following transactions are given:
i. Started business with Rs.1,00,000 ii. Goods purchased Rs.60,000
iii. Salary paid Rs.10,000 iv. Paid rent Rs.3,000 including advance of Rs.1,000.
v. Interest received from bank deposit Rs.1,000
Required: Accounting equation
Solution,
Accounting Equation
SN Transactions Assets = Capital + Liabilities
i. Started business 100,000 100,000
100,000 100,000 -
Initial equation 60,000 -
ii. Purchased goods (60,000) 100,000 -
100,000 (10,000)
New equation (10,000) -
iii. Paid salary 90,000 90,000
1,000 (2,000)
New equation (3,000)
iv. Paid rent including advance 88,000 88,000
1,000 1,000
New equation 89,000 89,000
v. Interest received from bank deposit
Final equation
SQ-3._____ You are given the following transactions:
i. Commenced business with a capital of Rs.1,00,000 deposited into a bank.
ii. Purchased goods from Maya for Rs.50,000.
iii. Rent paid Rs.5,000, Rs.2,000 was outstanding.
iv. Interest received Rs.3,000.
v. Goods sold for cash Rs.12,000 at a profit of Rs.2,000.
Required: Accounting equation
Basic Accounting Terminologies CHAPTER 3 3
Solution: Accounting Equation
Transactions Assets = Capital + Liabilities
i. Commenced business with cash depositing into a
1,00,000 (bank) 1,00,000 (capital) 0
bank
Initial equation 1,00,000 1,00,000 0
ii. Purchased goods from Maya on credit 50,000 (stock) 0 50,000 (Maya)
New equation
iii. Rent paid and outstanding rent accounted 1,50,000 1,00,000 50,000
New equation –5,000 (bank) –7,000 (rent) 2,000 (rent outstanding)
iv. Interest received
New equation 1,45,000 93,000 52,000
3,000 (cash) 3,000 (interest) 0
v. Goods sold for cash at a profit
1,48,000 96,000 52,000
Final equation 12,000 (cash)
–10,000 (stock) 2,000 (profit) 0
1,50,000 98,000 52,000
SQ-4._____ The following information is given to you:
i. Raju started business with a bank balance of Rs.60,000 and stock of goods Rs.20,000.
ii. Purchased a machine at Rs.16,000.
iii. Goods costing Rs.5,000 was sold for Rs.6,000 in credit.
iv. Received cash Rs.5,500, discount allowed Rs.500
v. Deposited cash Rs.5,000 into the bank.
Required: Accounting equation
Solution,
Accounting Equation
Transactions Assets = Capital + Liabilities
i. Raju started business with a bank balance and stock 60,000 (bank) 80,000 (capital) 0
of goods 20,000 (stock) 0
0
Initial equation 80,000 80,000 0
ii. Purchased a machine for cash 16,000 (machine) 0 0
–16,000 (cash) 0
0
New equation 80,000 80,000 0
iii. Goods sold in credit at a profit 6,000 (debtors) 1,000 (profit) 0
–5,000 (stock) 0
New equation 81,000 81,000
iv. Received cash from debtors and discount allowed 5,500 (cash) –500
–6,000 (debtors) (discount allowed)
New equation 80,500 80,500
v. Deposited cash into the bank 5,000 (bank) 0
–5,000 (cash)
Final equation 80,500 80,500
SQ-5._____ The following information is supplied to you:
i. Commencement of business with Rs. 90,000 and goods Rs.30,000.
ii. Sold goods to Hari at Rs.20,000, cost price Rs.21,000.
iii. Paid salary Rs.10,000, still due Rs.2,000.
iv. Loan received from bank Rs.30,000.
v. Withdrawn goods amounting Rs.2,000 and cash Rs.5,000 for personal use.
Required: Accounting equation
Solution,
Accounting Equation
Transactions Assets = Capital + Liabilities
i. Commenced business with cash and stock of 1,20,000 (capital)
90,000 (cash) 0
goods 30,000 (stock) 1,20,000
Initial equation –1,000 (loss)
ii. Sold goods to Hari at a loss in credit 1,20,000 0
20,000 (Hari) 1,19,000 0
New equation –21,000 (stock) –12,000 (salary)
iii. Paid salary and salary due accounted
1,19,000 1,07,000 0
New equation –10,000 (cash) 0 2,000 (salary due)
iv. Loan taken from bank
1,09,000 1,07,000 2,000
New equation 30,000 (cash) –7,000 (drawings) 30,000 (loan)
v. Goods and cash withdrawn for personal use
1,39,000 1,00,000 32,000
Final equation –5,000 (cash) 0
–2,000 (goods)
1,32,000 32,000
SQ-6._____ Prepare an accounting equation from the following transactions:
i. Started business with Rs.1,20,000 and furniture worth Rs.30,000.
ii. Rent paid Rs. 4,000 and outstanding rent Rs.1,000.
4 Accounting-XI
iii. Depreciation charged on furniture Rs.3,000.
iv. Insurance premium paid Rs.2,500 including prepaid insurance Rs.500.
v. Sold furniture at Rs.4,500 (cost price Rs.5,000)
Required: Accounting equation
Solution,
Accounting Equation
Transactions Assets = Capital + Liabilities
i. Started business with cash and furniture 1,20,000 (cash) 1,50,000 (capital) 0
30,000 (furniture)
Initial equation 1,50,000 1,50,000 0
ii. Rent paid and outstanding rent accounted –4,000 –5,000 (rent) 1,000 (rent payable)
(cash)
New equation 1,46,000 1,45,000 1,000
iii. Depreciation charged on furniture –3,000 (furniture) –3,000 (depn.) 0
1,43,000
New equation prepaid 500 (prepaid ins.) 1,42,000 1,000
iv. Insurance premium paid including –2,500 (cash) –2,000 (insurance) 0
insurance 1,41,000 1,40,000 1,000
New equation 4,500 (cash) –500 (loss) 0
v. Sold furniture at a loss –5,000 (furniture)
Final equation 1,40,500 1,39,500 1,000
SQ-7._____ The following transactions of Mr. Joshi are provided to you:
i. Mr. Joshi commenced business by investing Cash Rs. 25,000 and bank balance Rs. 50,000
ii. He purchased furniture for Rs. 20,000 by paying cash by cheque.
iii. He purchased goods for Rs. 25,000 by making partial payment of Rs. 20,000 in cash
iv. He paid staff salary Rs. 5,000
v. He paid office rent Rs. 10,000 by cheque
vi. He sold goods costing Rs. 22,000 for Rs. 28,000.
Required: accounting equation by incorporating above transactions
Solution,
Effects on accounting Equation
Date Transactions Assets (Rs.) = Capital (Rs.) + Liabilities (Rs.)
i. Business commencement Cash = 25,000 75,000 0
Bank = 50,000
ii. Beginning equation 75,000 75,000 0
Furniture purchased 0 0
iii. + Furniture = 20,000
New equation – Bank = 20,000 75,000 0
Goods purchased 75,000 0 +Creditor = 5,000
+Goods = 25,000
New equation –Cash = 20,000 75,000 5,000
80,000 0
iv. Paid salary to staff –Cash = 5,000 –Salary = 5,000 5,000
New equation 75,000 70,000 0
v. Rent paid –Bank = 10,000 –Rent = 10,000 5,000
0
New equation 65,000 60,000
vi. Goods sold on profit +Cash = 28,000 +Profit = 6,000 5,000
–Goods = 22,000
Ending equation 66,000
71,000
SQ-8._____ Your are given the following transactions of Mr. Suresh
i. Commenced business by investing Cash Rs. 100,000.
ii. He purchased goods for Rs. 25,000 from Mr. Hari by making partial payment of Rs. 20,000 in cash.
iii. Sold goods for Rs. 25,000 by making profit of Rs. 7,000.
iv. Paid Rs. 4,500 to Mr. Hari for final settlement of the books of account.
v. Paid office rent Rs. 7,500.
Required: Accounting equation by incorporating above transactions
Solution,
Effects on accounting Equation
Date Transactions Assets (Rs.) = Capital (Rs.) + Liabilities (Rs.)
i. Commencement of business Cash = 10,000 100,000 0
ii. New equation 100,000 100,000 0
Goods purchased from Hari 0
iii. New equation +Goods = 25,000 100,000 +Creditor = 5,000
Goods sold on profit –Cash = 20,000 5,000
New equation +Profit = 7,000 0
105,000 107,000 5,000
+Cash = 25,000
–goods = 18,000
112,000
Basic Accounting Terminologies CHAPTER 3 5
iv. Payment to Hari in Settlement –Cash = 4,500 +dis = 500 –Creditor = 5,000
New equation 107,500 107,500 0
0
v. Rent paid –Cash = 7,500 Rent = 7,500 0
Ending equation 100,000 100,000
Liabilities (Rs.)
SQ-9. ____ The following information of Mr. Krishna is provided to you: 0
0
i. Started business by investing capital of Rs. 1,25,000.
Creditor = 13,000
ii. Purchase goods for Rs. 55,000 by paying partial payment of Rs. 42,000. 13,000
iii. Borrowed loan from Nepal Bank Ltd. for Rs. 20,000. +Loan = 20,000
33,000
iv. Sold goods costing Rs. 24,000 for Rs. 31,000. 0
33,000
v. Rent payable to house owner Rs. 3,500.
+Outstanding rent = 3,500
vi. Settled credit purchased account by paying Rs.12,000 cash in fullsettlement 36,500
Required: Accounting equation by incorporating above transactions (13,000)
23,500
Solution,
+ Liabilities (Rs.)
Effects on accounting Equation 0
0
Date Transactions Assets (Rs.) = Capital (Rs.) + 0
i. Business started Cash = 125,000 125,000 0
Beginning equation 125,000
ii. Goods purchased 125,000 0 +Creditor = 18,000
+Goods = 55,000 18,000
New equation 125,000
iii. Borrowed loan from NBL –Cash = 42,000 0 +Payable = 2,500
20,500
New equation 138,000 125,000
iv. Goods sold on profit +Cash = 20,000 +Profit = 7,000 20,500
New equation 158,000 132,000
v. Rent payable +Cash = 31,000 –Rent = 3,500
–Goods = 24,000
New equation 128,500
Vi Settlement of credit purchase 165,000 1,000
0
Ending equation 129,500
165,000
(12,000)
153,000
SQ-10.____ The following information of Mr. Ashim is provided to you:
i. Started business by investing cash of Rs. 60,000 and stock Rs. 40,000.
ii. Sold good costing Rs. 36,000 for Rs. 34,000.
iii. Purchased goods from Suraj for Rs. 20,000 by getting 10% trade discount.
iv. Wage payable to workers Rs. 2,500.
v. Interest on capital Rs.10,000 and Interest in drowing Rs.5,000
Required: Accounting equation
Solution,
Effects on accounting Equation
Date Transactions Assets (Rs.) = Capital (Rs.)
i. Business started with cash & goods 100,000
Cash = 60,000
ii. Beginning equation Goods = 40,000 100,000
Goods sold on loss –Loss = 2,000
iii. 100,000
iv. New equation +Cash = 34,000 98,000
v. Purchased goods from Suraj –Goods = 36,000 0
New equation
Wages payable to worker 98,000 98,000
New equation +Goods = 18,000 –wages = 2500
Interest on capital & drowing
116,000 95,500
Ending equation 0 15,000
(15,000)
116,000 95,500
116,000
SQ-11.____ The following information of Mr. Binod is provided to you:
i. Capital invested Rs. 75,000.
ii. Loan borrowed from Everest Bank Ltd. Rs. 25,000.
iii. Purchase goods worth Rs. 45,000
iv. Sold goods on credit of costing Rs. 20,000 at a loss of Rs. 1,000.
v. Salary paid to staffs Rs. 5,500.
vi. Rent received from house letout Rs.5,000
Required: Accounting equation
6 Accounting-XI
Solution,
Effects on accounting Equation
Date Transactions Assets (Rs.) = Capital (Rs.) + Liabilities (Rs.)
i. Business started Cash = 75,000 75,000 0
ii. Beginning equation 75,000 75,000 0
iii. Loan from Everest Bank Ltd. +Cash = 25,000
New equation 100,000 75,000 +Loan = 25,000
iv. Goods Purchased 0 25,000
+Goods = 45,000 0
v. New equation –Cash = 45,000 75,000
vi. Goods sold on credit (1,000) 25,000
100,000 0
New equation 74,000
Salary paid to staff +Debtor = 19,000 (5,500) 25,000
New equation Goods = 20,000 68,500 0
Rent received
Ending equation 99,000 5,000 25,000
–Cash = 5,500 73,500 0
93,500 25,000
5,000
98,500 Liabilities (Rs.)
0
SQ-12.____ The following information of Mr. Bikash is provided to you:
0
i. Commence business with cash Rs. 45,000 and bank balance Rs. 55,000. 0
ii. Purchase furniture for Rs. 15,000 by paying amount through cheque. 0
0
iii. Purchase goods worth Rs. 25,000.
0
iv. Sold goods on credit of costing Rs. 15,000 at a profit of Rs. 3,000. 0
v. Interest paid Rs. 5,000. 0
0
vi. Goods withdrawn valued Rs.10,000 for personal use. 0
Required: Accounting equation 0
Solution,
Effects on accounting Equation
Date Transactions Assets (Rs.) = Capital (Rs.) +
i. Business started with Cash and bank Cash = 45,000 100,000
Bank = 55,000
Beginning equation 100,000 100,000
0
ii. Furniture purchased + Furniture = 15,000
– Bank = 15,000
New equation 100,000 100,000
0
iii. Goods purchased +Goods = 25,000
–Cash = 25,000
New equation 100,000 100,000
+Profit = 3,000
iv. Sold goods on credit at a profit +Debtor = 18,000
–Goods = 15,000
New equation 103,000 103,000
v. Interest paid –Cash = 5,000 –Int. = 5,000
New equation 98,000 98,000
(10,000)
vi. Good withdrawn for personal use (10,000)
88,000
Ending equation 88,000
LONG ANSWER QUESTIONS
LQ-1._____ Your are given the following transactions of Mr. Chaudary
i. Commenced business by investing Cash Rs. 120,000.
ii. He purchased goods for Rs. 55,000 from Mr. Harish by making partial payment of Rs. 45,000 in cash.
iii. Sold goods for Rs. 40,000 by making profit of Rs. 5,000.
iv. Paid Rs. 9,500 to Mr. Harish for final settlement of the books of account.
v. Paid office rent Rs. 10,000.
vi. Borrowed loan from Nepal Bank Ltd. for Rs. 20,000.
vii. Sold good costing Rs. 25,000 for Rs. 31,000.
viii. Rent payable to house owner Rs. 3,500.
Required: Accounting equation by incorporating above transactions.
Basic Accounting Terminologies CHAPTER 3 7
Solution,
Effects on accounting Equation
Date Transactions Assets (Rs.) = Capital (Rs.) + Liabilities (Rs.)
i. Business commencement Cash = 120,000 120,000 0
ii. Beginning equation 120,000 120,000 0
Goods purchased from Harish 0
iii. +Goods = 55,000 Creditor = 10,000
New equation –Cash = 45,000 120,000
iv. Goods sold on profit 130,000 +Profit = 5,000 10,000
v. +Cash = 40,000 0
vi New equation 125,000
Paid to Harish in full settlement –Goods = 35,000 + dis. = 500 10,000
vii. New equation –Creditor = 10,000
Rent paid 135,000 125,500
viii. New equation –Cash = 9,500 –Rent = 10,000 0
Borrowed loan from Nepal Bank 0
Ltd 125,500 115,500 0
New equation –Cash = 10,000 0 20,000
Goods sold at profit
115,500 20,000
New equation 20,000
Rent payable ot house owner 20,000
Ending equation 135,500 115,500 3,500
31,000 23,500
(25,000) 6,000
141,500 121,500
(3,500)
141,500 118,000
LQ-2._____ A trader had the following transactions. Use the accounting equation to show their effect on his Assets, liabilities
and capital.
i. Commenced business with cash balance Rs.1,60,000, bank balance Rs.1,10,000 stock of goods Rs.60,000 and office
building Rs.3,00,000.
ii. Purchase a motor bike for Rs.116,000 with cash of Rs.50,000 and balance through a loan.
iii. Sold goods costing Rs.18,000 at a profit Rs.5,000.
vi. Invested in government bond Rs.1,00,000
v. Received interest on investment Rs.3,500.
vi. Accrued rent received Rs.1,000
vii. Withdrew from bank for office use Rs.12,000
viii. Salary due but unpaid Rs.500
Solution, Accounting Equations = Capital + Liabilities
630,000
SN Transactions Assets
i. Opened business with cash, bank, stock & building 160,000 630,000 -
110,000 66,000
Initial equation 60,000 630,000 66,000
ii. Purchased a motor bike on cash & through loan 300,000 5,000
630,000 66,000
New equation 116,000 635,000
iii. Sold goods on cash at profit (50,000) 66,000
696,000 635,000 66,000
New equation 23,000 3,500
iv. Invested in government bond (18,000) 66,000
701,000 638,500
New equation 100,000 66,000
v. Received interest on investment 638,500 500
(100,000)
New equation 701,000 638,500 66,500
vi. Accrued rent received 3,500 (500)
704,500
New equation -1000 638,000
vii. Withdrew from bank for office use 1,000
704,500
New equation 12,000
viii. Salary due but unpaid (12,000)
704,500
Final equation 0
704,500
LQ-3._____ The following information of Mr. Ashim is provided to you:
i. Started business by investing cash of Rs. 60,000 and stock Rs. 40,000.
ii. Sold good costing Rs. 36,000 for Rs. 34,000.
iii. Purchased goods from Suraj for Rs. 20,000 by getting 10% trade discount.
iv. Wage payable to workers Rs. 2,500.
8 Accounting-XI
v. Rent earned Rs.10,000 but not received yet.
vi. Goods costing Rs. 20,000 destroyed by fire and claim admitted by insurance company Rs. 15,000 only.
vii. Interest paid Rs. 5,000.
Required: Accounting equation
Solution,
Effects on accounting Equation
Date Transactions Assets (Rs.) = Capital (Rs.) + Liabilities (Rs.)
i. Business started with cash & goods Cash = 60,000 100,000 0
Goods = 40,000
Beginning equation 100,000 100,000 0
ii. Goods sold on loss +Cash = 34,000 –Loss = 2,000 0
–Goods = 36,000
New equation 98,000 0
iii. Purchased goods from Suraj 98,000 0 +Creditor = 18,000
+Goods = 18,000
New equation 98,000 18,000
iv. Wages payable to worker 116,000 –wages = 2500 +Payable = 2,500
0
New equation 95,500 20,500
v. Rent earned but not received yet 116,000 10,000 0
105,500
New equation 10,000 (5,000) 20,500
vi. Goods destroyed by fire 0
126,000 100,500
New equation (5,000) 20,500
vii. Interest paid (20,000) 95,500 0
15,000
Final equation 20,500
1,21,000
(5,000)
1,16,000
LQ-4._____ The following transactions are given:
i. Started business with cash Rs. 50,000, bank Rs. 30,000 and stock of Rs.20,000.
ii. Paid wages Rs. 10,000 and salary Rs. 2,000. iii. Withdrew for private use Rs. 1,700
iv. Goods purchased on credit Rs. 10,000 v. Paid to creditors Rs. 9,000 in full settlement.
vi. Sold goods on credit Rs. 15,000 vii. Sold goods for cash (Cost price Rs. 3,000) Rs. 4,000
viii. Received interest from investment Rs. 100
Required: Accounting Equations
Solution,
Effects on accounting Equation
Date Transactions Assets (Rs.) = Capital (Rs.) + Liabilities (Rs.)
i. Business started 100,000 = 100,000 + 0
ii. Beginning equation 100,000 = 100,000 + 0
iii. Wages and salary paid – 12,000 = – 12,000 + 0
iv. New equation 88,000 = 88,000 + 0
v. Withdrew for private use –1,700 –1,700 0
vi New equation 86,300 = 86,300 + 0
Goods purchased 10,000 0
vii New equation 96,300 = 86,300 10,000
Paid to creditors in full settlement –9,000 1,000 10,000
viii. New Equation 87,300 = 87,300 –10,000
Sold goods and credit 15,000 0
–15,000 0
New Equation 87,300 87,300 0
Sold goods for cash 4,000 1,000 +
–3,000 0
New Equation 88,300 88,300 0
Received interest from investment 100 100
Ending Equation 88,400 0
88,400 + 0
0
LQ-5._____ Following transactions are given:
i. Gaurav started business with cash Rs.2,00,000 and stock of Rs.50,000
ii. He purchased furniture for Rs. 20,000
iii. He sold goods costing Rs. 15,000 for Rs. 20,000 to Gopal.
iv. Purchased goods on credit Rs. 30,000.
v. Settled credit purchase account by paying cash Rs. 29,000.
vi. Rent paid Rs. 10,000 including advance rent Rs. 5,000.
vii. Commission received Rs. 20,000.
viii. Loan taken from Hari Rs. 50,000
ix. Loan paid to Hari Rs. 55,000 including interest on loan Rs. 5,000.
x. Depreciation charged on furniture Rs. 5,000.
Required: Accounting equation
Basic Accounting Terminologies CHAPTER 3 9
Solution,
Effects on accounting Equation
Date Transactions Assets (Rs.) = Capital (Rs.) + Liabilities (Rs.)
i. Business started 0
Cash = 200,000 250,000
Goods = 50,000 0
0
Beginning equation 250,000 250,000
ii. Purchased furniture 0
+Furniture = 20,000 0 0
–Cash = 20,000
0
New equation 250,000 250,000 +Creditors = 30,000
iii. Goods sold to Gopal on credits
+Debtors = 20,000 +Profit = 5,000 30,000
–Goods = 15,000 –Creditors = 30,000
New equation 255,000 255,000 0
iv. Purchased goods on credit 0
+Goods = 30,000 0
New equation 0
v. Paid to creditors in full settlement 285,000 255,000 0
0
New equation –Cash = 29,000 +dis = 1,000 50,000
vi. Rent paid including advance 50,000
256,000 256,000 (50,000)
0
(10,000) (5,000) 0
5,000 0
New equation 251,000 251,000 Liabilities (Rs.)
vii. Commission received 0
20,000 20,000
New equation 0
viii. Loan received 271,000 271,000 0
New equation 50,000 0 0
ix. Loan paid with interest +Creditor = 5,000
321,000 271,000
New equation 5,000
x. Depreciation on furniture (55,000) (5,000) 0
Ending equation 266,000 266,000 5,000
0
(5,000) (5,000)
5,000
261,000 261,000 0
LQ-6._____ The following transactions of Mr. Joshi are provided to you: 5,000
0
i. Mr. Jha commenced business by investing Cash Rs. 10,000 and bank balance Rs. 100,000.
5,000
ii. He purchased furniture for Rs. 15,000 by paying cash by cheque.
iii. He purchased goods for Rs. 25,000 by making partial payment of Rs. 20,000 in cash.
iv. Sold goods for Rs. 40,000 by making profit of Rs. 5,000.
v. He paid staff salary Rs. 4,000.
vi. He paid office rent Rs. 7,000 by cheque.
vii. He sold goods costing Rs. 21,000 for Rs. 25,000.
Required: Accounting equation by incorporating above transactions.
Solution,
Effects on accounting Equation
Date Transactions Assets (Rs.) = Capital (Rs.) +
i. Business started Cash = 10,000
Bank = 100,000 110,000
Beginning equation 110,000
ii. Purchased furniture 110,000
+Furniture = 15,000 0
New equation –Bank = 15,000
iii. Goods purchased 110,000 110,000
0
New equation + Goods = 25,000
iv. Goods sold on profit –Cash = 20,000 110,000
115,000 +Profit = 5,000
New equation +Cash = 40,000
v. Salary paid 115,000
–Goods = 35,000 –Salary = 4,000
New equation 120,000
vi Paid office rent 111,000
–Cash = 4,000 –Rent 7,000
New equation 116,000
vii. Goods sold on profit 104,000
–Bank = 7,000 +Profit = 4,000
Ending equation 109,000
108,000
Cash = 25,000
–Goods = 21,000
113,000
LQ-7. ____ The following information of Mr. Suraj is provided to you:
i. Started business by investing capital of Rs. 1,25,000.
ii. Purchase goods for Rs. 25,000 by paying partial payment of Rs. 15,000.
iii. Borrowed loan from Nepal Bank Ltd. for Rs. 20,000.
iv. Sold good costing Rs. 25,000 for Rs. 31,000.
v. Rent payable to house owner Rs. 3,500.
vi. Sold good costing Rs. 45,000 for Rs. 43,000.
10 Accounting-XI
vii. Purchased goods from Suraj for Rs. 20,000 by getting 10% trade discount.
viii. Commission payable to workers Rs. 2,000.
ix. Sold goods on credit of costing Rs. 25,000 at a loss of Rs. 1,000.
Required: Accounting equation by incorporating above transactions
Solution,
Effects on accounting Equation
Date Transactions Assets (Rs.) = Capital (Rs.) + Liabilities (Rs.)
i. Business started Cash = 125,000 125,000 0
ii. Beginning equation 125,000 125,000 0
Purchased goods 0
iii. +Goods = 25,000 +Creditor = 10,000
iv. New equation –Cash = 15,000 125,000 10,000
Loan borrowed from NBL 135,000 0
v. New equation +Cash = 20,000 +Loan = 20,000
vi, Goods sold on loss 155,000 125,000 30,000
+Cash = 31,000 + Profit = 6,000 0
vii. New equation 30,000
viii. Rent payable to house owner –Goods = 25,000 131,000
ix New equation 161,000 –Rent = 3,500 +Payable = 3,500
Goods sold on loss 0 33,500
161,000 127,500 0
New equation –Loss = 2,000 33,500
Goods purchased from Suraj +Cash = 43,000
New equation –Goods = 45,000 125,500 +Creditor = 18,000
Commission payable –0 51,500
New equation 159,000
Sold goods on loss +Goods = 18,000 125,500 +Payable = 2,000
–Comm. = 2,000 53,500
Ending equation 177,000 53,500
0 123,500
-Loss on sale 1,000 + Liabilities
177,000 -
+Cash 24,000 122,500 -
- Goods 25,000 -
-
176,000
13,000
LQ-8._____ The following are the transactions of a trader: 13,000
13,000
i. He invested in business Rs.2,00,000. 13,000
13,000
ii. Purchased goods for Rs.20,000. 13,000
iii. He sold goods to Ram costing Rs.13,000 for Rs.15,000.
iv. He paid rent of Rs.15,000 including advance rent Rs.5,000.
v. He took a loan from bank Rs.13,000.
vi. He withdrew Rs.5,000 from business for private use.
vii. Salary paid Rs.10,000 with advance salary of Rs.1,500.
viii. Cash sales Rs.6,000 (cost price Rs.7,000).
ix. Cash paid into bank Rs.55,000.
Required: Accounting equation
Solution,
Accounting Equation
SN Transactions Assets = Capital
i. Invested in business 200,000 200,000
200,000 200,000
Initial equation 20,000
ii. Purchased goods on cash (20,000) 200,000
200,000 2,000
New equation 15,000
iii. Sold goods on credit at profit (13,000) 202,000
202,000 (10,000)
New equation 5,000 192,000
iv. Paid rent including advance (15,000) 192,000
192,000 (5,000)
New equation 13,000 187,000
v. Took a loan from bank 205,000 (8,500)
(5,000) 178,500
New equation 200,000 (1,000)
vi. Withdrew from business 1,500 177,500
(10,000)
New equation 191,500 177,500
vii. Paid salary including advance 6,000
(7,000)
New equation 190,500
viii. Sold goods on cash at loss 55,000
(55,000)
New equation 190,500
ix. Cash paid into bank
Final equation
Basic Accounting Terminologies CHAPTER 3 11
LQ-9._____ Show the effects of the following transactions in an accounting equation:
i. Commenced business with cash Rs.25,000 stock of goods Rs.50,000 and bank balance Rs.1,00,000.
ii. Paid rent in advance Rs.10,000.
iii. Purchased goods from Laxmi Narayan Rs.30,000.
iv. Sold goods of Rs.30,000 and received a cheque of Rs.15,000 and balance in cash.
v. Withdrew goods for private use of Rs.10,000.
vi. Purchased van for Rs.2,00,000, giving Rs.1,50,000 in cash and balance through a loan.
vii. Sold goods (cost price Rs.10,000) for Rs.12,000.
viii. Paid salary Rs.50,000 and salary outstanding Rs.5,000.
ix. Deposited into bank Rs.30,000.
Solution,
SN Transactions Accounting Equation = Capital + Liabilities
i. Commenced business with cash, goods & bank 175,000
Assets -
Initial equation 25,000 175,000
ii. Paid rent in advance 50,000 -
100,000 175,000 30,000
New equation 175,000 175,000 30,000
iii. Purchased goods on credit 10,000
175,000 30,000
New equation (10,000) (10,000) 30,000
v. Sold goods on cash & received cheque 175,000 165,000 50,000
30,000 80,000
New equation 205,000 165,000
vi. Withdrew goods for private use 15,000 2,000 80,000
15,000 5,000
New equation (30,000) 167,000 85,000
ii. Purchased van on cash & balance through loan 205,000 (55,000)
(10,000) 112,000 85,000
New equation 195,000
iv. Sold goods on cash at profit 200,000 112,000
(150,000)
New equation 245,000
v. Paid salary and a part still payable 12,000
(10,000)
New equation 247,000
vi. Deposited into bank (50,000)
197,000
Final equation 30,000
(30,000)
197,000
VERY SHORT ANSWER QUESTIONS
VQ-1. _____ Prepare a journal entry for a cheque of Rs. 17,500 issued by a firm for salary of 14 months.
Solution,
Journal entry
Date Particulars LF Debit Rs. Credit Rs.
17,500
Salary expense a/c..........................................................................................................................Dr. 15,000
Prepaid salary expense a/c.............................................................................................................Dr. 2,500
To Bank a/c
(Payment of 14 months' salary)
VQ-2._____ The following transaction if provided:
Goods worth Rs.30,000 destroyed by fire but insurance company admitted only 50% of the amount claimed.
Required: Journal entries
Solution,
Journal entries
Date Particular JF Dr. (Rs) Cr. (Rs.)
30,000
Insurance company A/c.........................................................................................................................................Dr 15,000
Goods destroyed by fire A/c..................................................................................................................................Dr 15,000
To Purchase A/c
(Being goods destroyed by fire and claim limited by insurance company)
VQ-3._____ The following transaction is provided:
Received goods from CG group for Rs. 40,000 and payment of Rs.30,000 was made in cash and balance by cheque.
Required: Journal entries
Solution:
Journal entries
Date Particular JF Dr. (Rs) Cr. (Rs.)
Purchase A/c......................................................................................................................................................... Dr 40,000 30,000
To cash A/c 10,000
To bank A/c
(Being goods purchase from CG group)
VQ-4._____ The following transaction is provided:
Goods costing Rs.150,000 sold to ABAC Company Ltd. and received a cheques of Rs.100,000 and balance in cash after
providing discount of Rs.5,000.
Required: Journal entries
Solution:
Journal entries
Date Particular JF Dr. (Rs) Cr. (Rs.)
a) Cash A/c................................................................................................................................................................ Dr 45,000
Bank A/c ................................................................................................................................................................ Dr 1,00,000
Discount A/c .......................................................................................................................................................... Dr 5,000
To sales A/c 1,50,000
(Being goods sold to ABC company ltd and receive cheque and cash)
VQ-5._____ The following transaction is provided to you:
Cheque issued to accounts payable of Rs.145,000 in full settlement of Rs.150,000.
Required: Journal entries
Solution:
Journal entries
Date Particular JF Dr. (Rs) Cr. (Rs.)
a) A/c payable A/c..................................................................................................................................................... Dr 1,50,000 1,45,000
To Bank A/c
To discount A/c 5,000
(Being cheque issued to A/c payable in full settlement)
Recording of Transaction CHAPTER 4 13
SHORT ANSWER QUESTIONS
Business started
SQ-1._____ Journalize the following transaction:
i. Ram started a business with Rs.45,000.
ii. He introduced cash into the business Rs.12,000.
iii. Commencement of business with Rs.3, 00,000 cash and taking loan from bank Rs.200000
iv. Business begun with cash Rs. 2,00,000 and bank balance of Rs. 50,000.
v. Cash Rs.20,000, furniture worth Rs.10,000 and stock of Rs.15,000 were invested in the business
vi. Hari commenced business with cash Rs. 1,00,000, Goods costing Rs. 50,000, furniture worth Rs. 25,000, Land and
building of Rs. 5, 00,000.
Solution:
Journal entries
Date Particulars LF Debit Rs. Credit Rs.
i. Cash a/c...................................................................................................................................................Dr. 45,000 45,000
To Capital a/c 12,000 12,000
(Being, business started.) 500,000 300,000
200,000
ii. Cash a/c...................................................................................................................................................Dr. 200,000 250,000
To Capital a/c 50,000
(Being business started.) 20,000 45,000
iii. Cash a/c...................................................................................................................................................Dr. 10,000
To Capital a/c 15,000 6,75,000
To Bank loan a/c 1,00,000
(Being commencement of business.) 50,000
iv. Cash a/c...................................................................................................................................................Dr. 25,000
Bank a/c ...................................................................................................................................................Dr. 5,00,000
To Capital a/c
(Being business started with cash and bank balance.)
v. Cash a/c...................................................................................................................................................Dr.
Furniture a/c.............................................................................................................................................Dr.
Goods a/c.................................................................................................................................................Dr.
To Capital a/c
(Being business started.)
vi. Cash a/c ..................................................................................................................................................Dr
Purchase/ Goods a/c ................................................................................................................................Dr
Furniture a/c..............................................................................................................................................Dr
Land and building a/c................................................................................................................................Dr
To Capital a/c
(Being business started with different items)
Drawing
SQ-2._____ The following transactions of a sole trading concern are given:
June 1 Cash of Rs.2,000 withdrawn by Mr. Jeevan for his personal use
June 5 Goods worth Rs.3,000 was taken away by Mr. Jeevan for his domestic purpose
June 6 Cash of Rs.4,000 withdrawn by Mr. Jeevan to pay the school fee of his children
June 8 Goods worth Rs.5,000 and furniture worth Rs.6,000 were taken by Mr. Jeevan for his personal use
June 10 Cash Rs.200, goods Rs.300 withdrawn by the proprietor
June 12 Cash withdrawn from bank for business use Rs.1000
June 14 Withdrew from bank Rs. 6,000 out of which Rs.4,000 for domestic use of the owner
June 18 Life insurance premium Rs.20000 was paid on behalf of the owner
June 20 Income tax Rs.10000 paid on behalf of the proprietor
Required: Journal entries
Solution:
Journal Entries
Date Particulars LF Debit Rs. Credit Rs.
June 1 Drawing a/c..............................................................................................................................................Dr. 2,000 2,000
3,000
June 5 To Cash a/c 3,000 4,000
(Being cash withdrawn.) 5,000
June 6 Drawing a/c..............................................................................................................................................Dr. 4,000 6,000
June 8 To Purchase a/c 11,000
(Being goods withdrawn for his domestic purpose)
Drawing a/c .............................................................................................................................................Dr.
To Cash a/c
(Being cash withdrawn)
Drawing a/c..............................................................................................................................................Dr.
To Purchase a/c
To Furniture a/c
14 Accounting-XI
(Being goods and furniture withdrawn for his personal use.) 500 300
June Drawing a/c .............................................................................................................................................Dr. 200
10 To Purchase a/c 1,000 1,000
4,000
To Cash a/c 2,000 6,000
(Being cash and goods withdrawn by the proprietor.) 20,000 20,000
June 12 Cash a/c ..................................................................................................................................................Dr. 10,000 10,000
To Bank a/c
(Being cash withdrawn for business use.)
June 14 Drawing a/c..............................................................................................................................................Dr.
Cash a/c...................................................................................................................................................Dr.
To Bank a/c
(Being cash withdrawn from bank for office use and personal use.)
June 18 Drawing a/c..............................................................................................................................................Dr.
To Cash a/c
(Being life insurance paid on behalf of the owner.)
June 20 Drawing a/c..............................................................................................................................................Dr.
To Cash a/c
(Being income tax paid on behalf of the owner.)
Goods purchase
SQ-3._____ The following transactions of Lava and Kush Brothers are provided:
July 2 Bought goods for Rs. 22,000.
July 6 Purchased goods from Ram Rs.44,000.
July 12 Purchased goods from Sima of the list price of Rs.60,000 at a trade discount of 10%.
July 17 Bought goods of the list price of Rs.125,000 from Karuna less 20% trade discount and paid 40% by cheque
under a cash discount of 2%.
July 22 Goods purchased from Ram worth Rs.4,000 in cash and Rs.6,000 on credit.
July 25 Goods purchased from Kathmandu traders for Rs.100,000 and paid cash Rs.50,000, cheque of Rs.20,000 and
balance on credit.
July 30 Goods purchased for Rs.20000 and paid VAT @ 13%.
Required: Journal entries
Solution:
Journal Entries
Date Particulars LF Debit Rs. Credit Rs.
July 2 Purchase a/c............................................................................................................................................Dr. 22,000 22,000
July 6
July 12 To Cash a/c 44,000 44,000
July 17 (Being goods purchase)
Purchase a/c............................................................................................................................................Dr. 54,000 54,000
July 22
July 25 To Ram's a/c 100,000 60,000
(Being goods purchase from Ram.) 39,200
July 30 Purchase a/c............................................................................................................................................Dr.
800
To Sima's a/c
(Being goods purchase from Seema.) 10,000 4,000
Purchase a/c............................................................................................................................................Dr. 6,000
To Karuna's a/c 100,000 50,000
To Bank a/c 20,000
To Discount a/c 30,000
(Being goods purchase from Karuna.)
Purchase a/c............................................................................................................................................Dr. 20,000 22,600
To Cash a/c 2,600
To Ram's a/c
(Being goods purchase from Ram on cash and credit.)
Purchase a/c............................................................................................................................................Dr.
To Cash a/c
To Bank a/c
To Kathmandu Trader's a/c
(Being goods purchase from Kathmandu trader's)
Purchase a/c............................................................................................................................................Dr.
VAT a/c ....................................................................................................................................................Dr.
To Cash a/c
(Being goods purchase and paid VAT.)
Sale of goods
SQ-4._____ The following transactions of Shiva and Sons are provided:
Magh 1 Sold goods for Rs.40,000
Magh 4 Sold goods to Amar for Rs.25,000
Magh 10 Sold goods to Bimal of the list price of Rs.30,000 at a trade discount of 10%
Magh 14 Sold goods to Sajan of the list price of Rs.50,000 less 20% trade discount and received 40% by cheque under
a cash discount of 2%
Magh 16 Goods sold to Santosh for Rs.6,000 and cash received only Rs.2,500.
Magh 18 Good sold to Himal concern for Rs.100,000 and cash received Rs.40,000, cheque received Rs.20,000 and
balance on credit
Recording of Transaction CHAPTER 4 15
Magh 20 Goods sold to Saroj in cash costing Rs.6,000 at Rs.6,500.
Magh 25 Goods costing Rs.10000 was sold for Rs.8000
Magh 27 Goods costing Rs.20000 sold at a profit of 10% and collect VAT @ 13%
Required: Journal entries
Solution:
Journal Entries
Date Particulars LF Debit Rs. Credit Rs.
Magh 1 Cash a/c...................................................................................................................................................Dr. 40,000 40,000
To Sales a/c 25,000 25,000
27,000 27,000
(Being goods sold on cash.) 24,000
Magh 4 Amar a/c...................................................................................................................................................Dr. 15,680 40,000
To Sales a/c 320 6,000
3,500
(Being goods sold to Amar.) 2,500 100,000
Magh Bimal a/c ..................................................................................................................................................Dr. 40,000 500
10 To Sales a/c 20,000
(Being goods sold to Bimal.) 40,000 6,000
Magh14 Sajan a/c ..................................................................................................................................................Dr. 6,500 10,000
Bank a/c ...................................................................................................................................................Dr. 22,000
Discount a/c .............................................................................................................................................Dr. 8,000 2,860
To Sales a/c 2,000
(Being goods sold to Sajan.) 24,860
Magh Santosh a/c..............................................................................................................................................Dr.
16 Cash a/c...................................................................................................................................................Dr.
To Sales a/c
(Being goods sold to Santosh.)
Magh Cash a/c...................................................................................................................................................Dr.
18 Bank a/c ...................................................................................................................................................Dr.
Himal concern a/c ....................................................................................................................................Dr.
Magh
20 To Sales a/c
(Being good sold to Himal concern.)
Cash a/c...................................................................................................................................................Dr.
To P/L a/c
To Sales a/c
(Being goods sold to Saroj.)
Magh Cash a/c...................................................................................................................................................Dr.
25 P/L a/c......................................................................................................................................................Dr.
Magh To Sales a/c
27 (Being goods sold at loss.)
Cash a/c ..................................................................................................................................................Dr.
To Sales a/c
To VAT a/c
(Being good sold and collect VAT.)
Goods Return
SQ-5._____ Enter the following transactions in the books of Niraz & Brothers.
i. Goods returned to Ramesh due to bad packaging worth Rs.300.
ii. Suresh returned goods due to damage worth Rs.150.
iii. Goods returned by Ram worth Rs.1,000
iv. Goods returned from Bijay of Rs.5000 due to destroyed by accident.
v. Goods returned to Hemant which were previously purchased on cash amounting Rs.4000
vi. Goods return for Rs.3000 from Biraj which were sold on cash.
Required: Journal entries
Solution:
Journal Entries
Date Particulars LF Debit Rs. Credit Rs.
i. Ramesh a/c..............................................................................................................................................Dr. 300 300
To Purchase return a/c 150 150
(Being goods return to Ramesh.)
ii. Sales return a/c........................................................................................................................................Dr. 1,000 1,000
To Suresh a/c 5,000 5,000
(Being Sales return by suresh.) 4,000 4,000
iii. Sales return a/c........................................................................................................................................Dr. 3,000 3,000
To Ram's a/c
(Being sales return by Ram.)
iv. Sales return a/c........................................................................................................................................Dr.
To Bijay a/c
(Being sales return by Bijay.)
v. Cash a/c...................................................................................................................................................Dr.
To Purchase return a/c
(Being goods return to Hemant which previously purchase on cash.)
vi. Sales return a/c........................................................................................................................................Dr.
To Cash a/c
(Being sales return by Biraj which were sold on cash.)
16 Accounting-XI
Discount
SQ-6._____ The following informations are given. LF Debit Rs. Credit Rs.
i. Good purchased worth Rs.10000 from Bijay at a 10% trade discount. 9,000 9,000
ii. Sold goods to Ram on cash Rs.15000 with 20% discount. 12,000 15,000
iii. Paid cash to Bijay Rs. 8,100 after deducting 10% cash discount. 3,000 8,100
iv. Cash received Rs.10000 from Hemant for full settlement of Rs.10500. 9,000 900
v. Cash paid to Bibek Rs.300 and discount received Rs.150. 10,500
vi. Cash paid to creditors Rs.5000 for full settlement of Rs.5500. 10,000 300
Required: Journal entries 500 150
450 5,000
Solution: 500
Journal Entries 5,500
Credit Rs.
Date Particulars 4,000
i. Purchase a/c............................................................................................................................................Dr. 50,000
To Bijay a/c 70,000
(Being goods purchase from Bijay.) 3,000
ii. Cash a/c...................................................................................................................................................Dr. 500
Discount a/c .............................................................................................................................................Dr.
To Sales a/c
(Being goods sold to Ram with discount.)
iii. Bijay a/c ...................................................................................................................................................Dr.
To Cash a/c
To Discount a/c
(Being cash paid to Bijay with discount.)
iv. Cash a/c...................................................................................................................................................Dr.
Discount a/c .............................................................................................................................................Dr.
To Hemant's a/c
(Being cash received from Hemant in full settlement.)
v. Bibek a/c ..................................................................................................................................................Dr.
To Cash a/c
To Discount a/c
(Being cash paid to Bibek and discount received.)
vi. Creditors a/c.............................................................................................................................................Dr.
To Cash a/c
To Discount a/c
(Being cash paid to creditor in full settlement.)
Goods Destroyed
SQ-7._____ Journalise the following transactions in the books of Bibek:
i. Goods lost by fire costing Rs.4,000, insurance company didn’t admit the claim.
ii. Goods lost by damage worth Rs.50,000 and insurance admitted the claim for full amount.
iii. Good lost by accident worth Rs.70,000 and insurance company admitted the claim for Rs.30,000 only.
iv. Goods distributes as free sample Rs.3,000.
v. Goods given as charity to Red Cross Society Rs.500
Solution:
Journal Entries
Date Particulars LF Debit Rs.
i. Goods loss by fire a/c ..............................................................................................................................Dr. 4,000
To Purchas a/c 50,000
30,000
(Being goods lost by fire but didn't admit the claim.) 40,000
ii. Insurance Company a/c...........................................................................................................................Dr. 3,000
To Purchase a/c 500
(Being goods lost by damage and insurance company admitted claim fully.)
iii. Insurance company a/c ...........................................................................................................................Dr.
Goods lost by accident a/c ......................................................................................................................Dr.
To Purchase a/c
(Being goods lost by accident and claim admitted partially.)
iv. Advertisement a/c ....................................................................................................................................Dr.
Purchase a/c
(Being goods distributed as free sample.)
v. Charity a/c................................................................................................................................................Dr.
To Purchase a/c
(Being goods given as charity.)
Expenses
SQ-8._____ The following information are given:
i. Salary paid to Ram Rs. 20,000.
ii. Rent and commission paid Rs. 2,000 and Rs. 3,000 respectively.
iii. Interest on loan paid Rs. 5,000.
iv. Salary paid Rs. 10,000 including advance salary Rs. 2,000.
v. Wages paid Rs. 5,000 and still payable Rs. 3,000.
vi. Prepaid salary expired Rs. 2,000.
vii. Paid office rent and insurance Rs.10000 and 15000 respectively by cheque.
Recording of Transaction CHAPTER 4 17
viii. Depreciation on machinery Rs. 10,000.
ix. Depreciation on furniture @ 10% of Rs. 2,00,000.
x. Interest on capital Rs. 3,000.
Required: Journal entries:
Solution: LF Debit Rs. Credit Rs.
Journal Entries 20,000 20,000
2,000
Date Particulars 3,000 5,000
i. Salary a/c .................................................................................................................................................Dr. 5,000 5,000
To Cash a/c 8,000
(Being salary paid to Ram.) 2,000 10,000
ii. Rent a/c ...................................................................................................................................................Dr. 8,000 5,000
Commission a/c .......................................................................................................................................Dr. 3,000
To Cash a/c 2,000 2,000
(Being rent and commission paid.) 10,000
iii. Interest on loan a/c ..................................................................................................................................Dr. 15,000 25,000
To Cash a/c 10,000 10,000
(Being Interest on loan paid.) 20,000 20,000
iv. Salary a/c .................................................................................................................................................Dr. 3,000 3,000
Advance salary a/c .................................................................................................................................Dr.
To Cash a/c
(Being salary paid including advance)
v. Wages a/c ................................................................................................................................................Dr.
To Cash a/c
To Outstanding wages a/c
(Being wages paid and still payable.)
vi. Prepaid salary expired a/c.......................................................................................................................Dr.
To Prepaid salary a/c
(Being prepaid salary expired.)
vii. Office rent a/c...........................................................................................................................................Dr.
Insurance a/c ...........................................................................................................................................Dr.
To Bank a/c
(Being office rent and insurance paid by cheque.)
viii. Depreciation a/c.......................................................................................................................................Dr.
To Machinery a/c
(Being depreciation on Machinery.)
ix. Depreciation a/c.......................................................................................................................................Dr.
To Furniture a/c
(Being depreciation charge on Furniture.)
x. Interest on capital a/c...............................................................................................................................Dr.
To Capital a/c
(Being interest on capital.)
Income
SQ-9._____ The following information are given:
i. Dividend received Rs. 5,000.
ii. Interest received Rs. 10,000 and still receivable Rs. 2,000.
iii. Interest on investment Rs. 10,000.
iv. Rent received Rs. 20,000 including advance rent Rs. 5,000 .
v. Sundry income earned Rs.2,000 but not yet received.
vi. Commission and dividend received Rs.10000 and Rs.8000 respectively through cheque.
vii. Appreciation of land by Rs. 20,000.
viii. Interest on drawing Rs. 4,000.
Required: Journal entries
Solution: LF Debit Rs. Credit Rs.
Journal Entries 5,000 5,000
10,000
Date Particulars 2,000 12,000
i. Cash a/c...................................................................................................................................................Dr. 10,000 10,000
To Dividend a/c 20,000 15,000
(Being dividend received.) 5,000
ii. Cash a/c ..................................................................................................................................................Dr. 2,000 2,000
Interest receivable a/c .............................................................................................................................Dr.
To Interest a/c
(Being Interest received and still receivable.)
iii. Cash a/c...................................................................................................................................................Dr.
To Interest on investment a/c
(Being interest on investment.)
iv. Cash a/c...................................................................................................................................................Dr.
To Rent a/c
To Advance rent a/c
(Being rent received and including advance rent.)
v. Accrued sundry income a/c .....................................................................................................................Dr.
To Sundry income a/c
(Being sundry income receivable.)
18 Accounting-XI
vi. Bank a/c ...................................................................................................................................................Dr. 18,000 10,000
To Commission a/c 8,000
To Dividend a/c 20,000 20,000
4,000 4,000
(Being commission and dividend received through cheque.)
vii. Land a/c ...................................................................................................................................................Dr.
To Appreciation a/c
(Being appreciation on Land.)
viii. Drawing a/c..............................................................................................................................................Dr.
To Interest on drawing a/c
(Being interest on drawing.)
Assets purchased
SQ-10.____ You are given following transactions for the month of January 2019:
January 10 Purchased a second hand motorbike for Rs. 80,000.
January 12 Purchased two computers costing Rs.40,000 each from Computer Link.
January 14 Bought a machine for Rs.100000 from ABC trading concern.
January 19 Purchased furniture for Rs.50000 on credit and paid Rs.1000 on transportation and Rs.2000 on its
installation.
January 20 Purchased land and building from ABC company for Rs.2000000 and paid Rs.500000 as part payment.
January 25 New plant and machinery purchase by giving furniture of Rs. 20,000.
January 27 Furniture purchased worth Rs 12,000 and paid Rs.4,000 in cash and balance by cheque.
January 29 Paid Rs. 2,000 for installation charge of machinery.
January 30 Old furniture costing Rs.4000 exchange for new furniture costing Rs.10000 and balance paid in cash.
Required: Journal entries
Solution:
Journal Entries
Date Particulars LF Debit Rs. Credit Rs.
Jan. 10 Motorbike a/c ...........................................................................................................................................Dr. 80,000 80,000
Jan. 12
Jan. 14 To Cash a/c 40,000 40,000
Jan. 19 (Being Purchase second hand motorbike.)
Computer a/c ...........................................................................................................................................Dr. 100,000 100,000
Jan. 20
To Computer Link a/c 53,000 50,000
Jan. 25 (Being Purchase two computer from computer link.) 3,000
Jan. 27 Machine a/c..............................................................................................................................................Dr.
2000,000 1500,000
Jan. 29 To ABC trading concern 50,000
Jan. 30 (Being Machine purchase from ABC trading concern.)
Furniture a/c.............................................................................................................................................Dr. 20,000 20,000
To Creditors a/c 12,000 4,000
To Cash a/c 8,000
(Being furniture purchase.)
Land and building a/c...............................................................................................................................Dr. 2,000 2,000
To ABC a/c
To Cash a/c 10,000 4,000
(Being Purchase land and building from ABC company paid partially.) 6,000
Plant and Machinery a/c ..........................................................................................................................Dr.
To Furniture a/c
(Being plant and machinery purchase by giving furniture.)
Furniture a/c.............................................................................................................................................Dr.
To Cash a/c
To Bank a/c
(Being furniture purchase.)
Machinery a/c...........................................................................................................................................Dr.
To Cash a/c
(Being paid installation charged of machinery.)
New Furniture a/c ....................................................................................................................................Dr.
To Old Furniture
To Cash a/c
(Being exchange of old furniture with new furniture.)
Sale of Assets
SQ-11.____ You are given following transactions:
i. Machinery sold for Rs.100000.
ii. Furniture sold for Rs.20000 to Hari.
iii. Office equipment costing Rs.100000 was sold and received cash Rs.20000, cheque Rs.30000 and balance on credit.
iv. An old furniture having book value of Rs.20,000 was sold for Rs.22,000 on credit to Hemanta.
v. Sold a computer having book value of Rs.30,000 at a loss of Rs.5,000.
vi. Machinery costing Rs. 10,000 has been sold for Rs. 15,000.
vii. Furniture costing Rs. 15,000 has been sold for Rs. 10,000.
Required: Journal entries
Recording of Transaction CHAPTER 4 19
Solution: LF Debit Rs. Credit Rs.
100,000 100,000
Journal Entries 200,000 200,000
20,000 100,000
Date Particulars 30,000 20,000
i. Cash a/c...................................................................................................................................................Dr. 50,000 2,000
To Machinery a/c 22,000 30,000
(Being Machinery sold.) 10,000
ii. Hari's a/c .................................................................................................................................................Dr. 25,000 5,000
To Furniture a/c 5,000 15,000
(Being furniture sold to Hari.) 15,000
iii. Cash a/c...................................................................................................................................................Dr. Credit Rs.
Bank a/c ...................................................................................................................................................Dr. 10,000 5,000
Debtor a/c ................................................................................................................................................Dr. 5,000 1,500
To Equipment a/c 2,000
(Being equipment sold.) 30,000
iv. Hemanta's a/c ..........................................................................................................................................Dr. 10,000
To Old furniture a/c 1,000
To P/L a/c
(Being Old furniture sold on profit.)
v. Cash a/c...................................................................................................................................................Dr.
P/L a/c......................................................................................................................................................Dr.
To Computer a/c
(Being computer sold at a loss.)
vi. Cash a/c...................................................................................................................................................Dr.
To Machinery
To P/L a/c
(Being Machinery sold at a profit.)
vii. Cash a/c ..................................................................................................................................................Dr.
P/L a/c......................................................................................................................................................Dr.
To Furniture a/c
(Being furniture sold at a loss.)
Bad debt
SQ-12.____ The following information are given:
i. Bad debt written off Rs. 5,000
ii. Received only Rs. 1,000 from debtor out of his debt Rs. 1,500
iii. Received Rs. 2,000 as bad debt recovered out of previous bad debt.
iv. Shyam become bankrupt only 60 paisa in a rupee was received out of his debt of Rs. 30000
v. Shree became insolvent and he could pay Rs. 2000 only out of his debt Rs. 10,000
vi. Rs. 1,000 was due from Ram. He became insolvent and could pay at the rate of 40 paisa in a rupee.
Required: Journal Entries
Solution: LF Debit Rs.
5,000
Journal Entries 1,000
500
Date Particulars 2,000
i. Bad debt written off a/c............................................................................................................................Dr. 18,000
To Debtor a/c 12,000
(Being bad debt written off.) 2,000
ii. Cash a/c...................................................................................................................................................Dr. 8,000
Bad debt a/c.............................................................................................................................................Dr. 400
To Debtor's a/c 600
(Being Cash received from debtor.)
iii. Cash a/c ..................................................................................................................................................Dr.
To Bad debt recovered a/c
(Being cash received as a bad debt recovered.)
iv. Cash a/c...................................................................................................................................................Dr.
Bad debt a/c.............................................................................................................................................Dr.
To Shaym a/c
(Being amount received from Shyam partially and balanced treated as bad debt.)
v. Cash a/c...................................................................................................................................................Dr.
Bad debt a/c.............................................................................................................................................Dr.
To Shree a/c (Debtor)
(Being amount received from Shree partially and balanced treated as bad debt.)
vi. Cash a/c...................................................................................................................................................Dr.
Bad debt a/c.............................................................................................................................................Dr.
To Ram a/c (Debtor)
(Being amount received from Ram partially and balanced treated as bad debt.)
20 Accounting-XI
Loan and banking transactions
SQ-13.____ The following information are given:
i. Started business with cash Rs.10,00,000 and by taking loan from NIC Asia bank Rs.500,000.
ii. Loan received from Everest Bank Rs. 2,00,000
iii. Re-payment of loan Rs. 1,00,000 with interest 10% p.a.
iv. Loan given to Bijay Rs.100000
v. Loan repaid to Everest Bank Rs.120000 including interest amounting Rs.20000 through cheque.
vi. Cash deposited Rs. 40,000 into bank.
vii. Cash withdrawn from bank Rs.10000 for office purpose
Required: Journal Entries
Solution:
Journal Entries
Date Particulars LF Debit Rs. Credit Rs.
i. Cash a/c...................................................................................................................................................Dr. 1500,000 1000,000
To Capital a/c 200,000 500,000
To Loan a/c 100,000 200,000
(Being business started with cash and bank loan.) 10,000 110,000
ii. Cash a/c...................................................................................................................................................Dr.
To Everest Bank Loan a/c 100,000 120,000
(Being loan received from Everest Bank.) 20,000
10,000
iii. Loan a/c ...................................................................................................................................................Dr. 10,000
Interest a/c ...............................................................................................................................................Dr.
To Cash a/c
(Being repayment of loan with interest.)
iv. Loan a/c ...................................................................................................................................................Dr.
To Bank a/c
(Being loan given to Bijay.)
v. Loan a/c ...................................................................................................................................................Dr.
Interest on Loan.......................................................................................................................................Dr.
To Bank a/c
(Being repayment of loan with interest.)
vi. Bank a/c ...................................................................................................................................................Dr.
To Cash a/c
(Being cash deposited into bank.)
vii. Cash a/c...................................................................................................................................................Dr.
To Bank a/c
(Being cash withdrawn from bank.)
Bill of Exchange
Bills of Exchange Retained by the Drawer
SQ-14.____ Consider the following transactions of Sunil.
i. Sold goods to Sanjay for Rs. 30,000 and drew a 40 days bills for the same.
ii. The bill accepted by Sanjay was endorsed to Ramesh.
iii. Sanjay made payment of the bill on the maturity date.
Required: Journal entries in the books Sunil and Sanjay.
Solution,
Journal entries in the books of Sunil
Date Particulars LF Debit (Rs.) Credit (Rs.)
i. Sanjay a/c ............................................................................................................................................... Dr. 30,000 30,000
To Sales a/c 30,000
(Being goods sold to Sanjay.) 30,000 30,000
30,000
ii. Bills receivable a/c .................................................................................................................................. Dr.
To Sanjya a/c
(Being bills accepted by Sanjay)
iii. Ramesh a/c ............................................................................................................................................. Dr.
To Bills receivable a/c
(Being bill endorse to Ramesh)
Journal entries in the books of Sanjay
Date Particulars LF Debit (Rs.) Credit (Rs.)
i. Purchase a/c ........................................................................................................................................... Dr. 30,000
To Sunil a/c 30,000
(Being goods purchase) 30,000
ii. Sunil a/c .................................................................................................................................................. Dr.
To Bills payable a/c 30,000
(Being accepted bill drawn by Sunil)
iii. Bills payable a/c ...................................................................................................................................... Dr. 30,000 30,000
To Cash/Bank a/c
(Being bills paid.)
Recording of Transaction CHAPTER 4 21
SQ-15.____ On 1st Baishakh, Mr. Bishal sold goods worth Rs. 10,000 to Mr. Bijay and drew a bill of 6 months for the amount.
Bijay accepted the bill and returned to the Mr. Bishal. The bill was duly honoured at maturity.
Required: Necessary journal entries in the books of Bishal and Bijay.
Solution, Journal entries in the books of Bishal
Date
Particulars LF Debit (Rs.) Credit (Rs.)
1st Baishakh Mr. Bijay a/c ............................................................................................................................................. Dr. 10,000 10,000
1st Baishakh To Sales a/c 10,000
(Being goods sold to Bijay.) 10,000 10,000
1st Kartik 10,000
Bills receivable a/c .................................................................................................................................. Dr.
To Mr. Bijay a/c
(Being drawn in favour of Mr. Bijay.)
Cash a/c................................................................................................................................................... Dr.
To Bills receivable a/c
(Being bills receivable collected.)
Journal entries in the books of Bijay
Date Particulars LF Debit (Rs.) Credit (Rs.)
1st Baishakh Purchase a/c ........................................................................................................................................... Dr. 10,000 10,000
1st Baishakh To Bishal a/c 10,000
(Being goods purchase) 10,000 10,000
1st Kartik Bishal a/c ................................................................................................................................................ Dr. 10,000
To Bills payable a/c
(Being accepted bill drawn by Sunil)
Bills payable a/c ...................................................................................................................................... Dr.
To Cash/Bank a/c
(Being bills paid.)
SQ-16.____ Consider the following transaction of Bibek
Aswin 2 : Sold goods to Bijay for Rs. 40,000.
4 : Drew a 40 days bill upon Bijay amounting to Rs. 40,000 and he accepted the bill.
26 : Discounted the bill with the bank of for Rs. 39,500.
Required: Journal entries.
Solution,
Journal entries in the books of Bishal
Date Particulars LF Debit (Rs.) Credit (Rs.)
Aswin 2 Bijay a/c .................................................................................................................................................. Dr. 40,000 40,000
Aswin 4 To Sales a/c 40,000 40,000
Aswin 26 (Being goods sold to Bijay) 39,500
500 40,000
Bill receivable a/c .................................................................................................................................... Dr.
To Bijay a/c
(Being bill drawn in favour of Bijay.)
Cash/bank a/c ......................................................................................................................................... Dr.
Discount a/c ............................................................................................................................................ Dr.
To Bills receivable a/c
(Being bill discounted with the bank.)
SQ-17 ____ Sita draws a bill on Ram for four months for Rs 30,000. Ram accepts the same on 1st May 2016 and returns it to
Sita, who endorses the bill after one month to Laxman.
Required: a. Journal entries in the books of Sita if the bill is honoured
b. Journal entries in the books of Sita if the bill is dishonoured.
Solution,
a. Journal entries in the books of Sita if the bill is honoured
Date Particulars LF Debit (Rs.) Credit (Rs.)
1st May 2016 Bills Receivable A/c .............................................................................................................................. Dr. 30,000 30,000
1st June 2016 To Ram’s A/c 30,000
(Being four months bill drawn for credit sales and accepted by Ram) 30,000
Laxman’s A/c ........................................................................................................................................... Dr
To Bills Receivable A/c
(Being bills receivable endorsed to Mr. Laxman)
b. Journal entries in the books of Sita if the bill is dishonoured.
Date Particulars LF Debit (Rs.) Credit (Rs.)
1st May 2016 Bills Receivable A/c .............................................................................................................................. Dr. 30,000 30,000
To Ram’s A/c 30,000 30,000
(Being four months bill drawn for credit sales and accepted by Ram) 30,000
1st June 2016 Laxman’s A/c ........................................................................................................................................... Dr 30,000
To Bills Receivable A/c
(Being bills receivable endorsed to Mr. Laxman)
1st Sep. 2016 Ram’s A/c ............................................................................................................................................... Dr.
To Laxman’s A/c
(Being dishonored bill amount)
22 Accounting-XI
Bills of exchange retained by the drawer
SQ-18.____ Ajit sold goods on credit to Bijay for Rs 100,000 at a trade discount of 10%. Ajit drew a bill on 1st February 2016 for
the amount due for 3 months. The bill was duly accepted by Bijay on 3rd February 2016.
Required: a. Journal entries in the books of Bijay if the bill is honoured
b. Journal entries in the books of Bijay if the bill is dishonoured.
Solution,
a. Journal entries in the books of Bijay if the bill is honoured
Date Particulars LF Debit (Rs.) Credit (Rs.)
1st Feb 2016 90,000 90,000
Purchase A/c .......................................................................................................................................... Dr. 90,000
3rd Feb 2016 To Ajit’s A/c 90,000 90,000
(Being goods purchased from Ajit on credit after deducting trade discount)
1st May 2016 90,000
Ajit’s A/c .................................................................................................................................................. Dr.
To Bills Payable A/c
(Being four months bill drawn for credit sales and accepted by Ram)
Bills Payable A/c ...................................................................................................................................... Dr
To Bank A/c
(Being bills amount at the date of maturity)
b. Journal entries in the books of Bijay if the bill is dishonoured.
Date Particulars LF Debit (Rs.) Credit (Rs.)
90,000 90,000
1st Feb 2016 Purchase A/c .......................................................................................................................................... Dr.
To Ajit’s A/c 90,000 90,000
0,300
(Being goods purchased from Ajit on credit after deducting trade discount) 90,000
3rd Feb 2016 Ajit’s A/c .................................................................................................................................................. Dr.
1st May 2016 To Bills Payable A/c
(Being four months bill drawn for credit sales and accepted by Ajit)
Bills Payable A/c ...................................................................................................................................... Dr
To Ajit’s A/c
(Being dishonored bills amount)
Note: Trade discount of 10% of Rs.1,00,000 i.e. Rs.10,000 is not taken into account.
Bills of exchange discounted by the drawer
SQ-19.____ Simran sold goods on credit to Arman for Rs 150,000 for which he drew a bill for 3 months on 1st March 2016.
Arman accepted the bill on the same day and returned to Simran. After a month Simran discounted the bill at 12% p.a.
Required: a. Journal entries in the books of Arman if the bill is honoured
b. Journal entries in the books of Arman if the bill is dishonoured.
Solution,
a. Journal entries in the books of Arman if the bill is honoured
Date Particulars LF Debit (Rs.) Credit (Rs.)
1st March 2016 1,50,000 1,50,000
Purchase A/c ..........................................................................................................................................Dr. 1,50,000
1st March 2016 To Simran’s A/c 1,50,000 1,50,000
(Being goods purchased from Simran on credit after deducting trade discount)
1st June 2016 1,50,000
Simran’s A/c ............................................................................................................................................Dr.
To Bills Payable A/c
(Being four months bill drawn for credit sales and accepted by Simran)
Bills Payable A/c .....................................................................................................................................Dr.
To Bank A/c
(Being bills amount at the date of maturity)
b. Journal entries in the books of Arman if the bill is dishonoured.
Date Particulars LF Debit (Rs.) Credit (Rs.)
150,000 150,000
1st Feb 2016 Purchase A/c ..........................................................................................................................................Dr. 150,000
To Simran’s A/c 150,000 150,000
(Being goods purchased from Simran on credit after deducting trade discount)
150,000
3rd Feb 2016 Simran’s A/c ............................................................................................................................................Dr.
To Bills Payable A/c
(Being four months bill drawn for credit sales and accepted by Simran)
1st May 2016 Bills Payable A/c .....................................................................................................................................Dr.
To Simran’s A/c
(Being dishonored bills amount)
Bills of exchange endorsed by the drawer
SQ-20. ____ Ram sold goods to Shyam for Rs 100,000. Shyam paid Rs 20,000 by cheque and accepted a bill for the balance for four
months on 1st April 2016. Ram endorsed the bill in favour of Ghanashyam, his creditor, in full settlement of his dues of Rs 82,000.
Required: a. Journal entries in the books of Ram if the bill is honoured
b. Journal entries in the books of Ram if the bill is dishonoured.
Recording of Transaction CHAPTER 4 23
Solution,
a. Journal entries in the books of Ram if the bill is honoured
Date Particulars LF Debit (Rs.) Credit (Rs.)
1st April Shyam’s A/c............................................................................................................................................ Dr. 80,000 1,00,000
2016 Bank A/c ................................................................................................................................................. Dr. 20,000 80,000
80,000 2,000
To Sales A/c 82,000 80,000
(Being goods sold on partial payment)
1st April Bills Receivable A/c ................................................................................................................................ Dr. Debit (Rs.) Credit (Rs.)
2016 To Shyam’s A/c................................................................................................................................ Dr. 80,000 1,00,000
20,000 80,000
1st June (Being four months bill drawn for credit sales and accepted by Shyam) 80,000 2,000
2016 Ghanashyam’s A/c ................................................................................................................................. Dr. 82,000 80,000
To Discount Received A/c 82,000
To Bills Receivable A/c 82,000
(Being bills receivable endorsed to Ghanashyam for full settlement of his a/c)
b. Journal entries in the books of Ram if the bill is dishonoured.
Date Particulars LF
1st April Shyam’s A/c ........................................................................................................................................... Dr.
2016 Bank A/c ................................................................................................................................................. Dr.
To Sales A/c
(Being goods sold on partial payment)
1st April Bills Receivable A/c................................................................................................................................. Dr.
2016 Shyam’s A/c
(Being four months bill drawn for credit sales and accepted by Shyam)
1st June Ghanashyam’s A/c .................................................................................................................................. Dr.
2016 To Discount Received A/c
To Bills Receivable A/c
(Being bills receivable endorsed to Ghanashyam for full settlement of his a/c)
1st August Shyam’s A/c (82,000 +1,500)
2016 To Ghanashyam’s A/c
(Being Sham’s account is debited and Ghanashyam’s account credited due .......... to dishonored of bill)
LONG ANSWER QUESTIONS
Mixed Transaction
LQ-1._____ The following transactions of Mr Ravi are given to you:
i. Mr. Ravi started business with cash Rs.150,000 bank deposited Rs.200,000
ii. He purchased furniture for Rs. 25,000 and paid by cheque.
iii. He purchased goods Rs. 100,000 in cheque payment and Rs. 100,000 on credit.
iv. He paid credit amount of Rs. 50,000 by cheque.
v. Furniture costing Rs. 20,000 sold for Rs. 25,000.
vi. He sold goods Rs. 50,000 in cash and Rs. 50,000 on credit.
vii. Interest on capital @ 5% of Rs. 1,00,000.
viii. He paid staff salary Rs. 20,000 by cheque
ix. Commission received Rs. 10,000.
Required: Journal entries
Solution, In the Book of Mr. Ravi
Journal entries
Date Particulars LF Debit (Rs.) Credit (Rs.)
2,00,000
i. Bank A/c ................................................................................................................................ Dr. 150,000
Cash A/c................................................................................................................................. Dr. 3,50,000
To Capital A/c
(Being business started by investing cash) 25,000
ii. Furniture A/c ......................................................................................................................... Dr.
To Bank A/c 25,000
(Being goods purchased through bank payment)
iii. Purchase A/c ......................................................................................................................... Dr. 200,000 100,000
To Bank A/c 100,000
To Creditor's a/c
(Being goods purchased on cash and credit )
iv. Creditor's A/c ........................................................................................................................ Dr. 50,000
To Bank A/c 50,000
(Being partial amount paid to creditor through cheque)
v. Cash A/c................................................................................................................................. Dr. 25,000
To P/L A/c 5,000
To Furniture A/c 20,000
(Being furniture sold at profit)
vi. Cash A/c ................................................................................................................................dr. 50,000 100,000
Debtor's A/c 50,000
To Sales a/c
(Being goods sold on cash and credit )
24 Accounting-XI
vii. Interest on capital A/c ........................................................................................................... Dr. 5,000 5,000
To Capital A/c 20,000 20,000
10,000 10,000
(Being interest on capital)
viii. Salary a/c............................................................................................................................... Dr.
To Bank a/c
(Being salary paid.)
ix. Cash a/c ................................................................................................................................ Dr.
To Commission a/c
(Being commission received.)
LQ-2._____ Following transactions are given: ii. Ram settled his account and allowed him Rs.500 discount
i. Sold goods Rs.5,000 to Ram on credit iv. Furniture costing Rs.4,000 was sold for Rs.3,500
iii. Goods returned by Ram worth Rs.1,000 vi. Rent paid Rs. 10,000 and still payable Rs. 5,000.
v. Cash withdrawn from bank for office use Rs.8,000 vi. Goods purchased and paid by a cheque Rs.34,500.
v. Sold furniture costing Rs. 1600 at Rs. 2,000
Required: Journal entries
Solution,
Journal entries
Date Particulars LF Debit Rs. Credit Rs.
i. Ram's a/c ....................................................................................................................................Dr. 5,000 5,000
To Sales
(Being goods sold to Ram on credit)
ii. Cash a/c......................................................................................................................................Dr. 4,500
Discount allowed a/c...................................................................................................................Dr. 500
To Ram 5,000
(Being cash received from Ram and discount allowed to him)
iii. Sales return a/c...........................................................................................................................Dr. 1,000 1,000
To Ram
(Being goods returned by Ram)
iv. Cash a/c...................................................................................................................................................Dr. 3,500
Loss on sale a/c ......................................................................................................................................Dr. 500
To Furniture 4,000
(Being furniture sold at loss)
v. Cash a/c ..................................................................................................................................................Dr. 8,000 8,000
To Bank
(Being cash withdrawn from bank for office use)
vi. Rent A/c .....................................................................................................................................Dr. 15,000 5,000
To Rent payable 10,000
To Cash A/c
(Being rent paid and still payable)
vii. Cash a/c .....................................................................................................................................Dr. 2,000 1,600
To Furniture a/c
To P/L a/c 400
(Being furniture sold at profit.)
viii. Purchase a/c...............................................................................................................................Dr. 34,500 34,500
To Bank a/c
(Being Goods purchased.)
LQ-3._____ Following transactions are given:
i. Goods sold to Ram Rs.10,000 ii. Goods returned by Ram Rs.1,000
iii. Cash sent by Ram is full settlement Rs.8,500 and discount allowed Rs.500
iv. Cash deposited into Bank Rs5,000 v. Goods withdrawn for private use Rs. 5,000.
vi. Depreciation on machinery @ 10% of Rs. 100,000. vii. Salary payable Rs. 20,000.
Required: Journal entries
Solution,
Journal Entries
Date Particulars LF Debit Rs. Credit Rs.
i. Ram's a/c ......................................................................................................................................Dr. 10,000
To Sales 10,000
(Being goods sold to Ram)
ii. Sales return a/c.............................................................................................................................Dr. 1,000 1,000
To Ram
(Being goods returned by Ram)
iii. Cash a/c........................................................................................................................................Dr. 8,500
Discount allowed a/c.....................................................................................................................Dr. 500
To Ram 9,000
(Being cash received from Ram in full settlement of his account)
iv. Bank a/c ........................................................................................................................................Dr. 5,000
Recording of Transaction CHAPTER 4 25
To Cash 5,000 5,000
(Being cash deposited into bank) 5,000
Drawing A/c...................................................................................................................................Dr.
10,000 10,000
To Purchase A/c 20,000 20,000
v. (Being Goods withdrawn for private use)
Depreciation A/c .........................................................................................................................Dr.
To Machinery A/c
vi. (Being depreciation charge on machinery)
Salary A/c ...................................................................................................................................Dr.
To Salary payable A /c
vii. (Being Salary payable.)
LQ-4._____ Following information is provided:
i. Sold goods to Rita for cash Rs.10,000 and on credit Rs.15,000.
ii. Purchased goods from Dina worth Rs.8,000 and Bills payable accepted for the same.
iii. Rita settled her account and allowed 4 percent discount.
iv. Paid to Ram Rs.7,600 in full settlement of his account of Rs. 8,000.
v. Machine purchase for Rs. 12,000 from Ram and installed paying Rs. 1000 as wages.
vi. Bad debt recovered Rs. 5,000.
vii. Plant costing Rs. 10,000 sold for Rs. 8,000.
viii. Appreciation on building Rs. 8,000.
ix. Furniture sold for Rs. 5,000, at gain Rs. 1000
Required: Journal entries
Solution,
Journal Entries
Date Particulars LF Debit Rs. Credit Rs.
i. Cash a/c......................................................................................................................................Dr. 10,000 25,000
Rita's a/c .....................................................................................................................................Dr. 15,000
To Sales
(Being goods sold to Rita on cash and credit)
ii. Purchase a/c...............................................................................................................................Dr. 8,000
To Bills payable
(Being goods purchased from Dina and bills payable accepted) 8,000
iii. Cash a/c......................................................................................................................................Dr. 14,400 15,000
Discount allowed a/c...................................................................................................................Dr. 600
To Rita
(Being cash received from Rita and discount allowed)
iv. Ram's a/c .................................................................................................................................................Dr. 8,000
To Cash 7,600
To Discount received
(Being cash paid to Ram and discount received) 400
Machinery A/c ..........................................................................................................................................Dr. 13,000 1000
To Cash A/c 12000
To Ram A/c
v. (Being Machinery purchase from Ram.)
vi. Cash A/c .......................................................................................................................................Dr. 5,000
To Bad debt recovered A/c 5,000
(Being bad debt recovered.)
vii. Cash a/c .......................................................................................................................................Dr. 8,000
P/L a/c ..........................................................................................................................................Dr. 2,000
To Plant a/c 10,000
(Being Plant sold on loss.)
viii. Building a/c ..................................................................................................................................Dr. 8,000
To Appreciation on building a/c 8,000
(Being Appreciation on building.)
ix. Cash a/c .......................................................................................................................................Dr. 5,000
To Furniture a/c 4,000
To P/L a/c 1,000
(Being furniture sold on gain.)
LQ-5._____ The following transactions are provided to you in the books of M/S Harish Enterprises:
January 1. Started business by investing worth Rs. 150,000
January 5. Purchased goods for Rs. 50,000
January 10. Purchased goods from Ram Enterprises Rs. 25,000
January 15. Sold goods for Rs. 55,000
January 20. Rent paid to house owner Rs. 5,000
January 25. Paid to Ram Enterprise Rs. 24,000 in full settlement of his account
January 26. Provide interest on capital @ 10%, amount of capital is Rs. 1,50,000.
January 28. Paid installation charge of machinery Rs. 10,000
Required: Journal entries in the book of M/S Harish Enterprises
26 Accounting-XI
Solution, Particulars LF Debit (Rs.) Credit (Rs.)
Date Cash A/c ............................................................................................................................. Dr. 1,50,000 1,50,000
50,000 50,000
Jan. 1 To Capital A/c 25,000 25,000
Jan.5 (Being business started by investing capital) 55,000 55,000
Jan.10 Purchase A/c ..................................................................................................................... Dr. 5,000 5,000
Jan.15 25,000 24,000
Jan.20 To Cash A/c 1,000
Jan.25 (Being goods purchased for cash) 15,000 15,000
Purchase A/c ...................................................................................................................... Dr. 10,000 10,000
Jan. 26
Jan. 28 To Ram Enterprises A/c Credit (Rs.)
(Being goods purchased from Ram Enterprises on credit) 1,00,000
Cash A/c ............................................................................................................................. Dr. 50,000
10,000
To Sales A/c 35,000
(Being goods sold for cash) 2,000
Rent A/c .............................................................................................................................. Dr. 10,000
25,000
To Cash A/c 5,000
(Being rent paid to house owner) 10,000
Ram Enterprises A/c........................................................................................................... Dr. 1,000
To Cash A/c
To Discount received A/c
(Being amount paid to Ram Enterprises in full settlement of account)
Interest on capital A/c......................................................................................................... Dr.
To Capital A/c
(Being interest on capital provided @ 10%)
Machinery a/c ..................................................................................................................... Dr.
To Cash a/c
(Being installation charge on machinery.)
LQ-6._____ The following transactions of Mrs. Reena are given to you:
Shrawan 1. Commenced business with cash Rs. 25,000 and bank balance Rs. 75,000
Shrawan 2. Goods purchased from Mrs. Reshma for Rs. 50,000
Shrawan 5. Good purchased worth Rs. 10,000
Shrawan 10. Sold goods for Rs. 35,000
Shrawan 15. Goods withdrawn by proprietor for personal use Rs. 2,000
Shrawan 20 Goods destroyed by fire of Rs. 10,000 and claim admitted by the insurance company for Rs. 9,500.
Shrawan 25. Paid Rs. 25,000 to Mrs Reshma
Shrawan 26. Goods of Rs. 5,000 distributed as free sample.
Shrawan 28. Commission received Rs. 10,000.
Shrawan 30. Goods of Rs. 1,000 provided to Pashupati Trust as donation.
Required: Journal entries in the book of Mrs. Reena
Solution,
In the Book of Mrs. Reena
Journal entries
Date Particulars LF Debit (Rs.)
Shrawan 1 Cash A/c ................................................................................................................................................. Dr. 25,000
Bank A/c ................................................................................................................................................ Dr. 75,000
Shrawan 2 To Capital A/c 50,000
Shrawan 5 (Being business started by investing capital) 10,000
Shrawan 10 Purchased A/c ....................................................................................................................................... Dr. 35,000
To Reshma's A/c
(Being goods purchased from Mrs. Reshma on credit)
Purchase A/c .......................................................................................................................................... Dr.
To Cash A/c
(Being goods purchased for cash)
Cash A/c ................................................................................................................................................. Dr.
To Sales A/c
(Being goods sold for cash)
Shrawan 15 Drawing A/c ............................................................................................................................................ Dr. 2,000
Shrawan 20 To Purchase A/c 9,500
(Being goods drawn by proprietor for personal use ) 500
Insurance Company A/c ......................................................................................................................... Dr.
Shrawan 25 Profit and Loss A/c ................................................................................................................................ Dr. 25,000
Shrawan 26 5,000
To Purchase A/c
(Being goods destroyed by fire and partial admitted by the insurance)
Reshma's A/c........................................................................................................................................... Dr.
To Cash A/c 10,000
(Being amount paid to Reshma )
Advertisement A/c ................................................................................................................................... Dr.
To Purchase A/c
(Being goods distributed as free sample)
Shrawan 28 Cash A/c .................................................................................................................................................. Dr.
To Commission A/c
1,000
(Being commission received)
Shrawan 30 Donation A/c ............................................................................................................................................ Dr.
To Purchase A/c
(Being goods donated to Pashupati trust)
Recording of Transaction CHAPTER 4 27
LQ-7._____ You are given following transactions:
i. Mahendra commenced a business with cash of Rs.200,000 and goods worth Rs.30,000
ii. Bought goods from Sohan for Rs.100,000 at a trade discount of 10% and cash discount of 5%, paid 60% of the amount
immediately
iii. Paid Rs.3,000 and 4,000 for wages and salary respectively
iv. A customer of Rs.5,000 was declared insolvent and entire amount receivable from him written off as bad debts
v. Received cash Rs.4,500 from a debtor whose debts was written off last year
vi. Goods destroyed by fire amounting to Rs.50,000 and insurance company admitted claim 60% only.
vii. Goods stolen by an employee Rs.800 (i.e. loss by embezzlement a/c)
viii. Goods used in making of furniture Rs.2,000 for office use
Required: Journal entries in the books of Shraddha
Solution,
Journal Entries
Date Particulars LF Debit (Rs.) Credit (Rs.)
i. Cash A/c .................................................................................................................................................. Dr. 200,000
Goods A/c ................................................................................................................................................ Dr. 30,000
To Capital A/c 230,000
(Being commenced a business with cash and goods)
ii. Purchase A/c (10000090%).................................................................................................................. Dr. 90,000 4,500
51,300
To Discount A/c (Cash) (900005%) 34,200
To Cash A/c
To Sohan A/c
(Being bought goods with trade & cash discount and paid partially)
iii. Wages A/c ............................................................................................................................................... Dr. 3,000
Salary A/c ................................................................................................................................................ Dr. 4,000
To Cash A/c
(Being paid wages and salary) 7,000
iv. Bad debts A/c .......................................................................................................................................... Dr. 5,000
To Debtors A/c
5,000
(Being a customer declared insolvent)
v. Cash A/c .................................................................................................................................................. Dr. 4,500
To Bad debts recovered A/c
4,500
(Being received from debtors whose debts were written off)
vi. Insurance company A/c........................................................................................................................... Dr. 30,000
Profit & loss A/c ....................................................................................................................................... Dr. 20,000
To Purchase A/c
(Being goods destroyed by fire and insurance company admitted chain 60% only) 50,000
vii. Profit & Loss A/c ...................................................................................................................................... Dr. 800
To Purchase A/c
800
(Being goods stolen by employees)
viii. Furniture A/c ............................................................................................................................................ Dr. 2,000
To Purchase A/c
2,000
(Being goods use in making furniture)
LQ-8._____ You are given following transactions:
i. Salary paid Rs.4,000
ii. Salary paid to Kamal Rs.500
iii. Rent payable Rs.1,000
iv. Rent payable now paid
v. Rent paid in advance (prepaid rent) Rs.600
vi. Rent paid in advance (prepaid rent) now expired
vii. Rent paid Rs.3,000 and Rs.800 still payable
viii. Rent paid Rs.2,000 including advance Rs.500
ix. Rent payable (outstanding rent) Rs.300 paid
x. Provide interest on capital Rs.50,000 at 15% p.a.
xi. Provide interest on loan from Ram Rs.100,000 at 10% p.a.
xii. Charge depreciation at 10% p.a. on the furniture worth Rs.12,000
Required: Journal entries
28 Accounting-XI
Solution, Journal entries in the book of.....
Date
i. Particulars LF Debit Rs. Credit Rs.
ii. 4,000 4,000
iii. Salary A/c ................................................................................................................................................ Dr. 500 500
iv. 1,000 1,000
v. To Cash A/c 1,000 1,000
vi. 600 600
vii. (Being salary paid) 600 600
3,800 3,000
viii. Salary A/c ................................................................................................................................................ Dr. 800
1,500
ix. To Cash A/c 500 2,000
x. 300 300
xi. (Being Salary paid to Kamal)
xii. 7,500 7,500
Rent A/c ................................................................................................................................................... Dr. 10,000 10,000
1,200 1,200
To Rent payable
Credit (Rs.)
(Being rent payable) 4,000
500
Rent payable A/c ..................................................................................................................................... Dr. 1,000
1,000
To Cash A/c
(Being rent payable paid)
Prepaid rent A/c....................................................................................................................................... Dr.
To Cash A/c
(Being rent paid in advance)
Prepared rent expired A/c ....................................................................................................................... Dr.
To Prepaid rent
(Being rent paid in advance expired)
Rent A/c ................................................................................................................................................... Dr.
To Cash A/c
To Rent payable
(Being rent paid & still payable
Rent A/c ................................................................................................................................................... Dr.
Prepaid rent A/c
To Cash A/c
(Being rent paid including advance)
Outstanding rent A/c................................................................................................................................ Dr.
To Cash A/c
(Being rent payable paid)
Interest on capital A/c.............................................................................................................................. Dr.
To Capital
(Being provide indirect on capital)
Interest on loan A/c.................................................................................................................................. Dr.
To Loan A/c
(Being provide interest on loan from Ram)
Depreciation on furniture A/c................................................................................................................... Dr.
To Furniture A/c
(Being charge depreciation on furniture)
LQ-9._____ Prepare journal entries for the following transactions:
i. Rent received Rs.4,000
ii. Rent received from Kamal Rs.500
iii. Interest receivable Rs.1,000
iv. Interest receivable now received
v. Interest received in advance (advance interest) Rs.600 i.e. unearned interest received
vi. Interest received in advance (advance interest) now earned i.e. unearned interest now earned
vii. Interest received Rs.3,000 and Rs.800 still receivable
viii. Received commission Rs.1,000, half of which is in advance
ix. Charge interest on drawing (Rs.5,000) at 12% p.a. for six months
x. Charge interest on loan to Ram (Rs.200,000) at 18% p.a. for ten months
Solution,
Journal entries in the book of ...
Date Particulars LF Debit (Rs.)
i. Cash A/c .................................................................................................................................................. Dr. 4,000
To Rent received
(Being rent received)
ii. Cash A/c .................................................................................................................................................. Dr. 500
To Rent received
(Being rent received from Kamal)
iii. Interest receivable A/c............................................................................................................................. Dr. 1,000
To Interest received A/c
(Being interest receivable)
iv. Cash A/c .................................................................................................................................................. Dr. 1,000
To Interest receivable A/c
(Being interest receivable received)
Recording of Transaction CHAPTER 4 29
v. Cash A/c .................................................................................................................................................. Dr. 600 600
To Advance interest A/c 600
3,000 600
(Being interest received in advance) 800 3,800
vi. Advance interest A/c................................................................................................................................ Dr. 1,000 500
500
To Interest earned A/c 300 300
(Being unearned interest was earned) 30,000 30,000
vii. Cash A/c .................................................................................................................................................. Dr.
Interest receivable A/c
To Interest received A/c
(Being interest received and still receivable)
viii. Cash A/c .................................................................................................................................................. Dr.
To Commission received
To Advance commission received\
(Being commission received with advance)
ix. Drawing A/c ............................................................................................................................................. Dr.
To Interest on drawing
(Being interest charged on drawing)
x. Ram's loan A/c......................................................................................................................................... Dr.
To Interest on loan
(Being interest charged on loan to Ram)
LQ-10.____ Following transactions are given to you:
i. Ram started business with a Bank Deposit 120,000
ii. Purchased goods for inventory issuing a cheque 45,000
iii. Sold goods in cash and deposited into the Bank 50,000
iv. Paid Rent for the month by cheque 5,000
v. Paid staffs salaries by cheque 7,000
vi. Drew by proprietor for personal use from bank 5,000.
vii. Unused furniture were disposed off for Rs.2,000
viii. Gateway Limited, a debtor for Rs.3,000 settled its account receiving cash discount of Rs.1,000
ix. Loan taken from bank Rs.100,000 and deposited into own bank account.
x. Amount due from Bharati Rs.500 has been written off as bad debt.
Required: Journal entries
Solution,
Journal entries
Date Particulars LF Debit (Rs.) Credit (Rs.)
1,20,000
i. Bank A/c ..................................................................................................................................................Dr. 1,20,000 45,000
To Capital A/c 50,000
(Being Ram started business by investing capital)
ii. Purchased A/c ........................................................................................................................................Dr. 45,000 5,000
To Bank A/c 7,000
(Being goods purchased on cash) 5,000
2,000
iii. Bank A/c..................................................................................................................................................Dr. 50,000
To Sales A/c 3,000
(Being goods sold on cash and amount deposited into bank) 100,000
iv. Rent A/c ..................................................................................................................................................Dr. 5,000
To Bank A/c 500
(Being rent paid for the month by cheque)
v. Salaries A/c .............................................................................................................................................Dr. 7,000
To Bank A/c
(Being salaries paid by cheque)
vi Drawing A/c ............................................................................................................................................Dr. 5,000
To Bank A/c
(Being amount withdrawn for personal use)
vii. Cash a/c...................................................................................................................................................Dr. 2,000
To Furniture
(Being unused furniture disposed off)
viii. Cash a/c...................................................................................................................................................Dr. 2,000
Discount allowed a/c................................................................................................................................Dr. 1,000
To Gateway Ltd.
(Being cash received from Gateway Ltd. and discount allowed)
ix. Bank a/c ...................................................................................................................................................Dr. 100,000
To Bank loan a/c
(Being loan taken)
x. Bad debts a/c...........................................................................................................................................Dr. 500
To Bharati
(Being amount due from Bharati written off as bad debts)
LQ-11.____ The following information relates to Laxman Furniture House of Kalopul:
July 1. : Commenced business with Cash of Rs. 20,000; Goods worth Rs. 25,000 and loan taken Rs. 50,000.
4 : Withdrawn Rs. 1,000 on a permanent basis out of capital.
30 Accounting-XI
6 : Brought in additional capital of Rs.15,000.
10 : Sale of Goods Rs.19,500 and received Rs. 9,500 in cash and balanced by cheque.
14 : Drawings made during the year Rs. 2,500.
18 : Furniture purchased from Ram Krishna 80,000
20 : Furniture sold to Hari 25,000 and received by cheque Rs. 15,000 and rest on credit.
24 : Furniture purchased and paid by cheque 50,000
26 : Salaries due for the month 20,000
31 : Rent paid in advance Rs. 10,000.
Required: Journal entries
Solution,
Journal entries
Date Particulars LF Debit (Rs.) Credit (Rs.)
July 1 70,000 45,000
Cash A/c ................................................................................................................................................. Dr. 25,000 50,000
4 Stock of Goods A/c ............................................................................................................................... Dr. 1,000
6 To Capital A/c 1,000 15,000
10 To Loan A/c 15,000
(Being business commenced with bank balance and stock of goods and loan) 9,500 19,500
14 10,000 2,500
18 Drawing A/c ............................................................................................................................................ Dr. 2,500 80,000
20 To Cash A/c 80,000
(Being amount withdrawn on a permanent basis for personal use) 10,000 25,000
24 15,000 50,000
26 Cash A/c ................................................................................................................................................. Dr. 50,000 20,000
31 To Capital A/c 20,000 10,000
(Being additional capital brought) 10,000
Cash A/c ................................................................................................................................................. Dr.
Bank A/c .................................................................................................................................................. Dr.
To Sales A/c
(Being goods sold on cash)
Drawing A/c ............................................................................................................................................ Dr.
To Cash A/c
(Being drawing made during the year)
Purchased A/c ......................................................................................................................................... Dr.
To Ram Krishna’s A/c
(Being furniture (goods) purchased from Ram Krishna on credit)
Hari’s A/c ................................................................................................................................................ Dr.
Bank A/c .................................................................................................................................................. Dr.
To Furniture A/c
(Being furniture(goods) sold to Hari on credit)
Purchase A/c ......................................................................................................................................... Dr.
To Bank A/c
(Being goods purchased and paid by cheque)
Salaries A/c ............................................................................................................................................. Dr.
To Outstanding salaries A/c
(Being salaries due for the month)
Advance rent A/c ..................................................................................................................................... Dr.
To Cash A/c
(Being Rent paid in advance.)
VERY SHORT ANSWER QUESTIONS
VQ-1._____ Following are the transactions relating to purchase:
February 01 Purchased goods from A store
5 computers @ Rs. 55,000 each, less trade discount of 10%
20 printers at Rs. 10,000 each
February 06 Purchased goods from B Store
15 UPS for Rs. 100,000
12 printers for Rs. 96,000
(Trade discount @ 10%)
Required: Purchase book
Solution,
Purchase Book
Date Particulars Invoice No. LF Amount
Feb. 1
Details Total
Feb. 6
A Store
5 computers @ 55,000 each.............................................................................................................................2..7..5...,0...0..0.....................
Less: Trade discount (10%)..........................................................................................................................................2..7..,.5..0...0.....................
247,500
20 printers @ Rs. 10,000 each .........................................................................................................................2..0..0...,0...0..0...............4..4..7..,500
B Store
15 UPS ..............................................................................................................................................................1..0..0...,0...0..0.....................
12 printers ...........................................................................................................................................................9..6..,.0..0...0.....................
196,000
Less: Trade discount (10%).............................................................................................................................................1..9..,.6..0...0...............1..7..6..,400
Total 623,900
VQ-2._____ The following transactions are given
March 2: Purchased from Agrawal Book Shop, 6 dozens of Accounting Books @ Rs. 100 per book less 10% trade discount
March 15: Purchased from Sharina Book Shop, 100 pieces of Exercise Books @ Rs. 600 per dozen, purchased from
Aryal Book Shop, 60 copies of Economics Books @ Rs. 100 each (less trade discount 5%)
March 28: Purchased from Shrestha Book Shop, 50 copies of Economic Books @ Rs. 120 each in cash
Required: Purchase book and purchase account.
Solution, Purchase Book
Date Particulars Invoice No. LF Amount
March 2
Details Total
March 15
March 15 Agrawal Book Shop
6 dozens of Accounting books @ Rs. 100 each...................................................................................................7...,.2..0..0.....................
Less: 10% trade discount 720 6,480
Sharina Book Shop
100 pieces of exercise Books @ Rs. 50 per piece...............................................................................................5..,.0...0..0...................5..,000
Aryal Book Shop
60 copies of economics Books @ Rs. 100 each..................................................................................................6...,.0..0..0.....................
Less: 5% trade discount ....................................................................................................................................................3...0..0...................5..,700
Total 17,180
Dr. Purchase Account Cr.
Date
Particulars JF Amount Rs. Date Particulars JF Amount Rs.
March 28
March 31 To Cash a/c.................................................................6..,.0..0..0......M...a..r.c..h...3..1................B...y..B...a..l.a..n..c..e...c../.d...........................................................2..3..,.1..8..0.......................................................
To Sundry creditors a/c.............................................1..7..,.1..8..0.............................................................................................................................
April 1
23,180 23,180
To Balance b/d..........................................................2..3..,.1..8..0.............................................................................................................................
VQ-3._____ The following transactions relating to Book stop is given below:
Mangsir 5: Purchased from Pustak Bhandar
500 Books of Accountancy @ Rs. 450 each.
300 Books of Economics @ Rs. 250 each.
(20% trade discount on both)
Mangsir 10: Purchased on cash from Book center 100 Books of Hotel management @ Rs. 200 each.
Required: Purchase book
32 Accounting-XI
Solution, Purchase Book
Date Particulars Invoice No. LF Amount
8-5 Details Rs. Total Rs.
Pustak Bhandar
500 Books of Accountancy @ Rs. 450 each...........................................................................................2..,.2..5..,.0..0...0..............................
300 Books of Economics @ Rs. 250 each ................................................................................................7..5..,.0..0...0..............................
3,00,000
Less: Trade discount @ 20% ..................................................................................................................................6..0..,.0..0...0..............................
Total 2,40,000
VQ-4._____ Following are the transactions relating to sales:
Chaitra 5 : Sales to Hari
300 pieces Boo-keeping @ Rs. 500 (10% trade discount)
100 pieces marketing @ Rs. 200.
Chaitra 15 : Cash sales 50 pieces Economics @ Rs. 400
Required: Sales Book
Solution,
Sales Book
Date Particulars Invoice No. LF Amount
Chaitra- 5 Details Rs. Total Rs.
Hari
300 pcs Book keeping @ Rs. 500.........................................................................................................................1..5..0...,0...0..0..............................
100 pcs marketing @ Rs. 200.................................................................................................................................2..0..,.0..0...0..............................
170,000
Less: Discount (10% of Rs. 150,000)....................................................................................................................(.1..5..,.0..0..0..)...............1..5..5..,.0..0..0....
Total 155,000
VQ-5._____ Following transactions are relating to sales:
Sold to Ram
100kg tea: @ Rs. 450 per kg. 200kg sugar @ Rs. 80 per kg
5% Trade discount on tea sold 50kg tea: @ Rs. 400 per kg on cash
Required: Sales book
Solution,
Sales book
Date Particulars Invoice No. LF Amount
Details Rs. Total Rs.
100 kg tea @ Rs.450............................................................................................. 45,000
Less: Trade discount @ 10% ................................................................................ 4,500 40,500
200 kg sugar @ Rs.80 .......................................................................................... 16,000
Total 56,500
VQ-6._____ Prepare the sales book from the following transactions: January 5th
January 2nd
Sold on credit to Ram Hari & Co. Sold on credit to Shyam
50 cans coffee @ Rs. 300 per can 100 kg rice @ Rs. 34 per kg
30 kg tea @ Rs. 150 per kg
Solution,
Sale Book
Date Particulars Debit Note LF Amount
No.
Details Total
Jan 2 Ramhari & Co.
50 cans coffee @ Rs. 300 per can .....................................................................................................................1..5..,.0..0...0.....................
30 kg tea @ Rs. 150 per kg ..................................................................................................................................4...,.5..0..0.................1..9..,500
Jan 5 Shyam 100 kg rice @ Rs. 34 per kg ............................................................................................................................................................3..,400
Total............................................................................................................................................................................................................2..2..,900
VQ-7._____ Following are the transactions relating to return:
Ashadh 3 Return to Gautam Ashadh 5 Return to Ramesh
2 tape recorders player: Rs.3,500
3 tape recorders: Rs. 4,000 each
5 VCD players: Rs. 3,500 each
Required: Purchase Return Book
Solution,
Purchase return book
Date Particulars Debit Note No. L/F Details Total
Ashadh 3 Gautam
3 tape recorders: Rs. 4,000 12,000
5 VCD players: Rs. 3,500 17,500 29,500
Ashadh 5 Ramesh
2 tape recorders player: Rs.3,500 7,000 7,000
Total 36,500
Subsidiary books CHAPTER 5 33
VQ-8._____ Following are the transactions relating to sales return
Baisakh 2: Return from Ramita Baisakh 2: Return from Harish
8 electricity fans @ Rs.1,000 per unit 5 heaters @ Rs.1,200 per unit (10% trade discount)
12 tape recorder @ Rs.1,000 per unit 2 radios @ Rs.500 per unit
3 record players @ Rs. 3,500 per unit
Required: Sales Return Book
Solution,
Date Particulars Sales return Book L/F Details Total
Baisakh 2 Ramita Credit Note no. 20,000
8 electricity fans @ Rs.1,000 8,000
Baisakh 2 12 tape recorder @ Rs.1,000 12,000 16,900
Harish 36,900
6,000
5 heaters @ Rs.1,200 per unit (600)
Less (10% trade discount) 1,000
2 radios @ Rs.500 per unit 10,500
3. record players @ Rs. 3,500 per unit
Total
VQ-9._____ B Company drew the following bills during Baishak 2074
i. Bills drawn to Mr. Bijay on 1st Baishakh 2074 for Rs. 100,000 payable after one month.
ii. Bill drawn to Mr. Bibek on 15th Baishakh 2074 for Rs. 60,000 payable after two months
Required: Bills receivable Book
Solution,
Bills receivable Book of B Company
S.N. Bill No. Name of the acceptor From who received Date of Bill Term Date of maturity Amount How dealt with
i. Mr. Bijay Mr. Bijay 30-1-2074 100,000
ii. Mr. Bibek Mr. Bibek 1-1-2074 30 days 14-3-2074 60,000
160,000
Total 15-1-2074 60 days
VQ-10.____ Himal co. has accepted the following bills during March 2017.
i. Bills drawn by Mr. Suman and Co. on 15th March 2017 for Rs. 80,000 payable after one month.
ii. Bijay & Company draws a bill on 26th March 2017 for Rs. 70,000 payable after one month.
Required: Bills payable book.
Solution,
Bills Payable Book of Himal Co.
S.N. Bill No. Name of the drawer Payee Date of Bill Term Date of maturity Amount Remarks
i. Mr. Suman & Co. Mr. Suman & Co. 15-3-2017 90 days 14-6-2017 80,000
ii. Bijay & Co. Bijay & Co. 26-3-2017 60 days 25-5-2017 70,000
150,000
Total
SHORT ANSWER QUESTIONS
Purchase Book
SQ-1._____ Following transaction of Rajesh Flatware, a dealer of furniture, are given:
Magh-8 Purchased on credit from Himal Magh-16 Purchased from Bimal For cash
Magh - 20 15 Tables @ Rs. 250 each Magh 29 2 Almirahs @ Rs. 3000 each
20 Chairs @ Rs. 300 each 2 Sofa set @ Rs. 5000 each
(Trade discount at 5% for both purchases)
Purchased computer for office use from Purchased from Bibek
Vijay on credit Rs. 30,000 15 Tables @ Rs. 600 each
10 Chairs @ Rs. 200 each
Required: a. Purchase Book b. Purchase Account
Solution,
Purchase Book
a. Invoice No.
Date Particulars L.F. Amount (Rs.)
Magh 7 Himal: 15 Tables @ Rs. 250 each
20 Chairs @ Rs. 300 each Details Amount
3,750
6,000
Less: Trade discount 5% 9,750
Bibek: 15 tables @ Rs. 600 each 487.5 9262.5
Magh 29 10 Chairs @ Rs. 200 each 9,000 11,000
Total 2,000
20262.5
34 Accounting-XI
b. Purchase Account
Date
Magh 16 Particulars JF Amount Rs. Date Particulars JF Amount Rs.
Magh 30 To Cash By Balance c/d 36262.5
To Sundry creditors 16,000 Magh 30
Falgun 1 20262.5 36262.5
To Balance b/d
36262.5
36,262.5
SQ-2._____ Following are the transactions relating to purchase of M/S Birat Furniture House, a dealer of furnishing items:
5 April: Purchase on credit from Himal Furniture Dealers
25 chairs @ Rs. 750 per unit
20 tea tables @ Rs.1,000 per unit
5 coffee tables @ Rs.1,500 per unit
11 April: Purchased from Mount Furniture Co. for cash
5 sofa sets @ Rs. 12,000 per set, 10% cash discount
15 April: Purchased on credit from Himshikhar Furnishing House
10 computer tables @ Rs.5,000 per unit
15 reading tables @ 4,000 per set
(Less 10% trade discount)
Required: a. Purchase Book b. Purchase Account
Solution,
a. Purchase Book
Date Particulars Invoice No. L/F Details Total
5 April Himal furniture Dealers
25 chairs@ Rs. 750 per unit 18,750 46,250
15 April 20 tea tables@ Rs. 1000 per unit 20,000
5 Coffee tables @ Rs. 1,500 perunit 7,500 99,000
Himshikhar furnishing house 145,250
10 Computer table@ 5,000 per unit 50,000
15 reading table@ 4,000 per set 60,000
110,000
Less: Trade idscount 10% (11,000)
Total purchase
b. Dr. Purchase Account Cr.
Date
April 11 Particulars JF Amount Rs. Date Particulars JF Amount Rs.
April 31 To Cash A/c .............................................................5..,.4..0..0......A..p..r.i.l..3..1..................B..y...B..a..l.a..n..c..e...c../.d................................................................2..,.0..5..,.2..5...0......................................................
To Cash discount........................................................6..0..0.................................................................................................................................
March 1 To Creditors creditor............................................1..4..5..,.2..5..0.................................................................................................................................
2,05,250 2,05,250
To Balance b/d 2,05,250
SQ-3._____ Following transactions are given to you
Jan 1 Bought from Metha Brothers, Bhaktapur Jan 10 Purchase from Sandesh and Brothers, Kathmandu
40 Kg sugar @ Rs. 30 per Kg. 100 Kg wheat @ Rs. 20 per Kg
12 bag rice @ Rs. 500 per bag 15 kg Tea @ Rs. 150 per kg
(Less: Trade discount 10%)
Jan 15 Purchase from X & Y traders, Lalitpur
Required: 100 lbs, coffee @ Rs.80 per lb
Solution,
40 kg TATA tea @ Rs.35 per kg
Less: Trade Discount 5%
a. Purchase book b. Purchase A/c c. Creditor’s A/c
Purchase book in the books of ………….
Date Particulars Invoice No. LF Amount
Jan Metha Bros, Bhaktapur
1 40 kg sugar @ Rs.30 per kg Details Total
12 bag rice @ Rs. 500 per kg 1,200
6,000
Less: Trade discount @10% 7,200 6,480
5 Sandesh & Brother, Kathmandu
720
100 kg wheat @ Rs.20 per kg
15 kg Tea @ Rs.150 per kg 2,000 4,250
15 X & Y Traders, Lalitpur 2,250
100 lbs coffee @ Rs.80 Per lb 8,000 8,930
40 kg tata tea @ Rs. 35 per kg 1,400 19,660
9,400
Less: Trade discount @ 5%
470
Subsidiary books CHAPTER 5 35
Purchase account
Date Particulars JF Amount Date Particulars JF Amount
Jan 15
Jan 16 To Sundry creditor’s A/c......................................1..9..,.6..6..0......J..a..n...1..5............B...y..B...a..l.a..n..c..e...c./.d....................................................................................1..9..,.6..6...0......................................................
Date 19,660 19,660
To Balance b/d..................................................1..9..,.6..6..0......................................................................................................................................
Date
Metha & Brothers’ account
Particulars JF Amount Date Particulars JF Amount
To Balance c/d....................................................6..,.4..8..0......J..a..n...1..............B...y..P...u..r.c..h..a..s..e...a../.c...................................................................................6..,.4...8..0......................................................
6,480 6,480
By Balance b/d ...................................................................................6..,.4...8..0......................................................
Sandesh & Brothers’ A/c, Mangalabri
Particulars JF Amount Date Particulars JF Amount
To Balance c/d......................................................4..,.2..5..0......J.a..n...5...............B..y...P..u..r.c..h..a..s..e...a../.c..................................................................................4..,.2...5..0......................................................
4,250 4,250
By Balance b/d..................................................................................4..,.2...5..0......................................................
X & Y Traders A/c, Pathari
Date Particulars JF Amount Date Particulars JF Amount
To Balance c/d 8,930
8,930 Jan 15 By Purchase A/c 8,930
8,930 By Balance b/d 8,930
Sales Book
SQ-4._____ The following are the transactions of Kathmandu Electronic Suppliers relating to credit sales:
Baisakh 10: Sold to Joshi & Sons Palpa: Baisakh 15: Sold to Sharma Brothers, Butwal:
-25 fan heaters @ Rs.400 per unit -50 table fans @ Rs.1,000 per unit
- 20 automatic heater @ Rs. 1,200 per unit - 100 ceiling fans @ Rs.500 per unit
(Less 5% trade discount on bill)
Baisakh 20: Sold to Choudhary Brother, Kapilbastu on cash Baisakh 25: Sold to Bhandari & Sons, Bhojpur:
- 40 pieces ceiling fans @ Rs. 500 per unit, 40 electric Heater @ Rs.400 per unit
10% cash discount 5 washing machines @ Rs.15,000 per unit
Required: a. Sales Book b. Sales Account
Solution, Sales book
a.
Date Particulars Invoice No. L/F Details Total
Joshi & sons Palpa 34,000
Baishak 10 10,000
25 fan heaters@ Rs. 400 per unit 24,000 95,000
Baishak 15 20 automatic heater@ 1,200 per unit 91,000
Sharma brothers Butwal 50,000 220,000
Baishak 25 50 table fan@ Rs. 1,000 per unit 50,000
100 ciling fans@ Rs. 500 per unit 100,000
5,000
Less: trade discount 5%
Bhandari and sons, Bhojpur 16,000
75,000
40 electric heater @ 400 per unit
5 washing machines @ Rs. 15,000 per unit
Total
b. Dr. Sales Account Cr.
Date Particulars JF Amount Rs. Date Particulars JF Amount Rs.
Baishak 31
To Balance c/d.....................................................2..4..0..,.0..0..0......B..a..i.s..h..a..k...2..0............B..y...C..a..s..h...A.../.c.......................................................................1..8...,0..0...0......................................................
By Discount A/c..................................................................2..,.0...0..0......................................................
Baishak 31 By Sundry debtors ........................................................2..2..0...,0...0..0......................................................
240,000 240,000
Jestha 1 By Bal b/d.......................................................................2..4..0...,0...0..0......................................................
SQ-5. ____ The following sales transactions of Agrawal Brothers, a textile dealer of Kathmandu are given to you:
i. Sold following items to Sagar Bros. of Morang
100 meters of cotton clothes @ Rs.250 per meter
150 meters of woollen clothes @ Rs.300 per meter
50 meters of paints pieces @ Rs. 750 per meter
(Less 10% trade discount on bill)
ii. Sold following items to Gurung Bros. of Pokhara
120 pieces Sari clothes @ Rs.800 per piece
80 pieces Kurta Surwal clothes @ Rs. 750 per piece
iii. Sold 500 meters of cotton clothes on cash to Shrestha Brothers of Hetauda @ Rs.225 per meter, 10% cash discount.
36 Accounting-XI
iv. Sold following items to Joshi Emporium of Mahendranagar
125 meters of shirt pieces @ Rs.220 per meter
150 meters of paints pieces @ Rs.550 per meter
50 meters of woollen clothes @ Rs. 350 per meter
Required: a. Sales Book b. Sales Account
Solution, Sales book
a.
Date Particulars Invoice No. L/F Details Total
Sagar bros, Morang
i. 100 meters of cotton clothes@ Rs. 250 per meter 25,000 96,750
45,000 156,000
150 meters of woolen clothes @ Rs. 300 per meter 37,500 127,500
50 meters of paints clothes@ Rs. 750 per meters 107,500 3,80,250
10,750
Less: Trade discount 10%
ii. Gurung Bros, Pokhara 96,000
60,000
120 pieces sari clothes@ Rs. 800 per pieces
80 pieces kurta surwal clothes @ 750 per pieces 27,500
iii. Joshi Emporium, Mahendranagar 82,500
125 meter of shirt pieces@ Rs. 220 per meter 17,500
150 meter of paint pieces @ Rs. 550 per meter
50 meter of woolen clothes @ Rs. 350 per meter
Total
b. Dr. Sales Account Cr.
Date
End of month Particulars JF Amount Rs. Date Particulars JF Amount Rs.
To Balance c/d.....................................................4..9..2..,.7..5..0......E..n..d...o..f..m...o..n..t.h.........B..y...S..u..n..d..r..y..d..e..b...t.o..r.s...........................................................3..8...0..,2...5..0......................................................
By Cash A/c ..................................................................1..,.0..1..,.2..5...0......................................................
By Discount......................................................................1..1..,.2..5...0......................................................
Total 492,750 492,750
1st of next month By Balance b/d...............................................................4..9..2...,7...5..0......................................................
SQ-6._____ The following transactions are given to you.
Jan 1 Pashupati Books house sold to Manokamana book Jan 10 Sold to Sanepa Book Store
centre 80 pcs OMSP @ 100 each
200 pcs Accountancy @ 300 each 200 pcs English book @ 50 each
Less 10% trade discont
100 pcs BOOM @ 200 less 5% trade discount
Jan 15 Sold to Shrestha book house Jan 17 Cash sales Rs.10,000
300 Accountancy @ 350 Jan 20 Sold to Bhattrai Book store
500 Economics @ 100 Old book rack for Rs.10,000 for office use.
Less: 10% trade discout.
Required: a. Sales book b. Sales Account c. Debtor’s Account
Solution, In the books of Pashupati Book House
Date
Jan 1 Sales Book
10 Particulars Invoice No. LF Details Amount Total
15
Manokamana book center
200 pcs Accountancy @300 each...................................................................................................................................6..0..,.0..0..0......................
Less 10% trade discount ...................................................................................................................................................6..,.0..0..0......................
54,000
100 pcs Boom @ 200 each .............................................................................................................................................2..0..,.0..0..0......................
Less: trade discount @ 5%................................................................................................................................................1..,.0..0..0......................
19,000 73,000
Sanepa Book Store
S2800h0rpepcsscthsOaEMBnSogPolisk@hs @H1o0u500seeeaacchh...........................................................................................................................................................................................................................................................................................1....08....,,..00....00....00..................................1....8....,..000
300 pcs EAccoconuonmtaicnsc@y @10305e0aecahc.h..............................................................................................................................................................................................................................................................1....,..0..5....50....,,..00....00....00............................................
500 pcs
Less trade discount @ 10%.........................................................................................................................................1..,.5.1..55..,,.05..00..00..............21..,,.33..09..,,.550000
Dr. Sales account Cr.
Date Particulars
JF Amount Date Particulars JF Amount
To Balance c/d 2,40,500 Jan 15 By Sundry debtor’s A/c 2,30,500
Jan 17 By Cash A/c 10,000
2,40,500
2,40,500 By Balance b/d 2,40,500
Subsidiary books CHAPTER 5 37
Dr. Manokamana Book Center account Cr.
Date Particulars JF Amount
JF Amount Date Particulars
To Sales A/c 73,000
To Balance b/d 73,000 Jan 15 By Balance c/d
Cr.
Dr. 73,000 JF Amount
Date Particulars
Sanepa Book Store account 18,000
To Sales A/c
To Balance b/d JF Amount Date Particulars Cr.
JF Amount
Dr. 18,000 Jan 15 By Balance c/d
Date Particulars 1,39,000
18,000
To Sales A/c
To Balance b/d Shrestha Book House account
Purchase Return Book JF Amount Date Particulars
1,39,000 Jan 15 By Balance c/d
1,39,000
SQ-7. _____ The following transactions of purchase return of Him Electrical Enterprise, Dang are provided to you:
January 5: Return to Himal Electrical, Kathmandu January 5: Return to Saugat Electrical, Birgunj
5 electric heaters @ Rs. 450 per piece 2 table fans @ Rs. 1,000 per piece
2 ceiling fans @ Rs. 500 per piece 5 water heater @ Rs. 800 per piece
(Less 10% trade discount)
Required: a. Purchase Return Book b. Purchase Return Account
Solution,
Dr. Purchase return book Cr.
Date Particulars Invoice No. L/F Details Total
January 5 Himal Electrical, Kathmandu 3,250
2,250
Jan 15 5 Electric heather@ Rs. 450 per piece 1,000 5,400
2 Ceiling fan@ Rs. 500 per piece 8,650
Saugat electrical, Birgunj 2,000
2 Table fan@ Rs. 1,000 per piece 4,000
5 Water heater@ Rs. 800 per piece 6,000
Less: Trade discount 10% 600
Total
Dr. Purchase Return Account Cr.
Date Particulars JF Amount Rs. Date Particulars JF Amount Rs.
Jan 31
To Balance c/d.........................................................8..,.6..5..0......J..a..n...3..1...................B..y...S..u..n..d..r..y..c..r..e..d..it.o..r..s.............................................................8...,6...5..0......................................................
8,650 8,650
Feb 1 By Balance b/d...................................................................8..,.6...5..0......................................................
SQ-8. _____ The following transactions relating to purchase return of Pranesh electric house, Jhapa are provided:
Jestha 5 Return to Mukta electronics, Birta. Jestha 10 Returned to Niraj & Co.Biratnagar.
5 pcs. Rice cooker @ Rs. 1500 each. 20 doz 10 watt bulb @ Rs. 10 per piece
20pcs. Electric heater @ Rs. 500 each. 2 pcs water heater @ 700 each
[Less 5 % Trade discount] Less 2.5% trade discount
Required: a. Return outward book b. Return outward account c. Creditors A/c
Solution:
In the book of Pranesh Electronic House
Purchase return book
Date Particulars Debit LF Amount
Jestha 5 Note No.
Details Total
Mukta electronic, birla
5 pcs. Rice cooker @ 1500 ............................................................................................................ 7,500
20 pcs. Electronic heater @ 500 .................................................................................................... 10,000
17,500
Jestha 10 Less 5% trade discount .................................................................................................................. 16,625
Niraj & Co. Biratnagar 875
20 doz 10 watt bulb @ 10 each i.e. Rs. 120 per doz.....................................................................
2 pcs water heater @ 700 each ..................................................................................................... 2,400
1,400
Less 2.5% trade discount .............................................................................................................. 3,800 3,705
Total 20,330
95
Posting into ledger A/c Return outward account Cr.
Dr. JF Amount Date Particulars JF Amount
Date Particulars 20,330 By Sundry creditor’s A/c ................................ 20,330
To Balance c/d
20,330 By Balance b/d............................................... 20,330
20,330
38 Accounting-XI
Dr. Mukta Electronics account Cr.
Date Particulars J.F. Amount Date Particulars J.F. Amount
To Purchase return A/c...... 16,625 By Balance c/d ............................................... 16,625
To Balance b/d...................
16,625
Dr. Niraj & Co. account Cr.
Date Particulars J.F. Amount Date Particulars J.F. Amount
3,705
To Purchase return A/c...... 3,705 By Balance c/d................................................
To Balance b/d...................
3,705
Sales Return Book
SQ-9._____ The following transactions of sales return of a Pustak Bhandar, Kathmandu are provided to you:
February 5: Return from Sujal Pustak Bhandar, Pokhara February15: Return from Shakya books & stationeries, Surkhet
5 Accountancy books @ Rs.450 per piece 4 Compulsory English books @ Rs. 220 per piece
5 Economics books @ Rs. 300 per piece 6 Physic books @ Rs.550 per piece
(Less: 20% trade discount) 5 Chemistry books @ Rs.450 per piece
(Less 10% trade discount)
Required: a. Sales Return Book b. Sales return account
Solution, Particulars Sales return Book L/F Details Total
Date Sujal Pustak Bhandar, Pokhara Credit Note no.
5 Accountancy book @ 450 per piece 2,250 3,000
February 5 5 Economics book @ Rs. 300 per piece 1,500
3,750 5,787
February 15 Less: 20% trade discount 8,787
Shakya books and stationeries, Surkhet 750
4 C.English book @ 220 per piece
6 Physic book @ Rs. 550 per piece 880
5 Chemistry book @ Rs. 450 per piece 3,300
2,250
Less: 10% trade discount 6,430
Total (643)
Dr. Sales return A/c Cr.
Date
Particulars L/F Rs. Date Particulars L/F Rs.
Feb 31 To Sundry debtors 8,757
Total 8,757 Feb. 31 By Balance c/d 8,757
March 1 To balance b/d 8,757
8,757
SQ-10.____ Consider the following information of Anjana.
Ashad 12 Returned from Bandana. Ashad 18 Returned from Chandrika.
10 kg. wheat @ Rs. 15 per kg. 40 kg. Ghee @ Rs. 250 per kg.
20 kg. rice @ 20 per kg. 50 liter oil @ Rs. 100 per liter.
Original trade discount @ 15 %
Less:
Required: a. Sales return book b. Sales return account c. Debtors account
Solution:
a. Sales return book
Date Particulars Credit Note LF Amount
Ashad 12 No. Details Total
Ashad 18 Bandana. 150
10 kg wheat @ Rs.15 per kg.................................................................................................................. 400 550
20 kg. rice @ Rs. 20 per kg. ..................................................................................................................
Chandrica. 10,000
40 kg. Ghee @ Rs. 250 per kg. ............................................................................................................ 5,000
50 leter oil @ Rs. 100 per liter. .............................................................................................................
Ashad 30 Less trade discount @ 15% .................................................................................................................. 15,000 12,750
Total 2,250 13,300
Posting into ledger account:
Dr. Sales return account Cr.
Date Particulars JF Amount Date Particulars JF Amount
Ashad 30 To Sundry debtors A/c ............... 13300 Ashad 30 By Balance c/d............................. 13300
13300
Shrawan1 To Balance b/d............................ 13300
13300
Subsidiary books CHAPTER 5 39
Dr. Bandana account Cr.
Date JF Amount
Ashad 30 Particulars JF Amount Date Particulars
To Balance c/d............................ 550 Ashad 12 By Sales return A/c...................... 550
550 By Balance b/d ............................ 550
Shrawan 1 550
Particulars Cr.
Dr. Chandrika account By Sales return A/c. .................... JF Amount
Date 12750
Ashad 30 Particulars JF Amount Date 12750
To Balance c/d ........................... 12750 Ashad 18 12750
12750
Shrawan 1 Remarks
Discounted
Bills Receivable and Payable Book Endorsement
SQ-11.____ Record the following transaction in the Bills Receivable and Bills Payable Book of a Trader. Remarks
Jan. 1 Received from Bibek Kumar an Acceptance of 2 months for Rs. 2,000
Jan. 5 Our Acceptance to Hemant at 3 months for Rs. 8,000
Jan. 15 Received from Suman an acceptance for 4 months for Rs. 4,000
Jan. 18 Discounted Bibek Kumar's acceptance for Rs. 1960
Jan. 19 Received from Premdhan an acceptance for 2 months for Rs. 12,000
Jan. 20 Our acceptance to Kushal at 2 months Rs. 3,000
Jan. 22 Suman's acceptance endorsed in favour of Rajman in full settlement of a debt of Rs. 4,500
Solution, Bills Receivable Book
Date
From Whom Received Term Due Date LF Amount
1 Jan. Bibek Kumar 2m March 4 2,000
15 Jan. Suman 4m May 18 4,000
19 Jan. Premdhan 2m March 22 12,000
Total 18,000
Bills Payable Book
Date To Whom Payable Term Due Date LF Amount
5 Jan. Hemant 3m April 8 8,000
20 Jan. Kushal 2m March 23 3,000
Total 11,000
LONG ANSWER QUESTIONS
Purchase Book
LQ- 1. ____ Following are the transactions relating to purchase of M/S Shiva Furniture House, a dealer of furnishing items:
5 Shrawan: Purchase on credit from Sagun Furniture Dealers
50 Chairs @ Rs. 550 per unit
25 Tea tables @ Rs.750 per unit
10 Coffee tables @ Rs.1,500 per unit
(Less 10% trade discount)
15 Shrawan: Purchased from Shikhar Furniture Co. for cash
7 Sofa sets @ Rs. 11,000 per set, 10% cash discount
25 Shrawan: Purchased on credit from Kathmandu Furnishing House
15 Computer tables @ Rs.4,500 per unit
12 Reading tables @ 3,500 per set
Required: a. Purchase Book b. Purchase Account c. Creditors account
Solution,
Date Particulars Purchase book L/F Details Total
Shawan 5 Sagar furniture dealers Invoice No.
Shawan 25 50 Chairs @ Rs. 550 per unit 27,500 55,125
25 Tea table @ Rs. 750 per unit 18,750 109,500
10 Coffee table @ Rs. 1,500 per unit 15,000 164,625
61,250
Less: Trade discount 10% (6,125)
Kathmandu furnishing House
15 Computer table @ Rs. 4,500 per unit 67,500
12 Reading table @ Rs. 3,500 per unit 42,000
Total
Dr. Purchase A/c Cr.
Date
Particulars L/F Rs. Date Particulars L/F Rs.
Shawan 31 To Sundry creditors.........................................1..6..4..,.6..2..5.....S...h..a..w...a..n...3..1...............B..y...b..a..l.a..n..c..e...c../.d...................................................................2..4..1...,6...2..5......................................................
Shawan 15 To Cash account................................................6..9..3..0..0.....................................................................................................................................
" To Discount account ...........................................7..,.7..0..0.....................................................................................................................................
Bhadra 1 241,625 241,625
To Balance b/d................................................2..4..1..,.6..2..5.....................................................................................................................................
40 Accounting-XI
LQ-2. _____ Consider the following information of a dealer:
Feb 10 Purchased goods on credit from Indra Feb 15 Purchased goods on credit from Bindra
Feb 25 400 Ceiling fans @ Rs.1,700 each
100 Table fans @ Rs.1,000 each 300 Table fans @ Rs.1,400 each
Trade discount @ 10%
200 Ceiling fans @ Rs.1,600 each Insurance and delivery charges Rs.2,000
Purchased goods on credit from Sima for
Delivery charges Rs.1,000 office use
2 Air Conditioner Rs.16,000 each
Feb 20 Purchased goods on cash from Rima
20 Table fans @ Rs.1,500 each
30 Ceiling fans @ Rs.1,600 each
Required: Purchase book and necessary ledger account.
Solution,
In the books of … …
Purchase book
Date Particulars LF Invoice No. Amount
2-10
Detail Total
2-15
Indra 100,000 421,000
100 table fans @ Rs.1,000 320,000
200 ceiling fans @ Rs.1,600
Add: Delivery charge 1,000
Bindra
400 ceiling fans @ Rs.1,700 680,000
300 table fans @ Rs.1,400 420,000
1,100,000
Dr. Less: Trade discount @ 10% Purchase account (110,000) 992,000
Date Add: Insurance and delivery in charge 1,413,000
2-20 Total JF Amount Date Particulars 2,000
2-31 Cr.
Particulars JF
3-1 To Cash Amount
To Sundry creditors 78,000 2-31 By Balance c/d 1,491,000
Total
To Balance b/d 1,413,000
1,491,000 Total 1,491,000
1,491,000
Sales Book
LQ-3. _____ The following are the transactions of Bhotahity Electronic Suppliers relating to credit sales:
Baisakh 10: Sold to Sharma & Sons Tansen: Baisakh 15: Sold to Joshi Brothers, Bhairahwa:
20 fan heaters @ Rs.450 per unit 25 table fans @ Rs.1,200 per unit
25 automatic heater @ Rs. 1,500 per unit 50 ceiling fans @ Rs.550 per unit
(Less 5% trade discount on bill)
Baisakh 20: Sold to Mishra Brother, Janakpur on cash Baisakh 25: Sold to Dhakal & Sons, Illam:
50 pieces ceiling fans @ Rs. 450 per unit, 20 electric Heater @ Rs.450 per unit
10% cash discount 10 washing machines @ Rs.16,000 per unit
Required: a. Sales Book b. Sales Account c. Debtors account
Solution, Sales book
a.
Date Particulars Invoice No. L/F Details Total
Baishak 10
Sharma sons, Tansen
Baishak 15
Baishak 25 20 Fan heaters @ Rs. 450 each..................................................................................................................................9..,.0..0..0............................
25 automatic heater @ Rs. 1,500 each.....................................................................................................................3..7..,.5..0..0............................
46,500
Less: 5% trade discount ............................................................................................................................................(.2..,.3..2..5..)...................4..4..,.1..7. 5
Joshi brothers, Bhairawa
25 table fan @ Rs. 1,200 each .....................................................................................................................3..0..,.0..0..0............................
50 cilling fan @ Rs. 550 each .......................................................................................................................2..7..,.5..0..0....................5..7..,.5..0. 0
Dhakal and sons, Illam
20 electric heater @ Rs. 450 each .................................................................................................................9..,.0..0..0............................
10 washing machine @ Rs. 16,000 each ...................................................................................................1..6..0..,.0..0..0..................1..6..9...,0...00
Total 270,675
Dr. Sales account Cr.
Date Particulars L/F Rs. Date Particulars L/F Rs.
Baishak 31
To Balance c/d ............................................2..,.9..3...,.1..7..5.....B...a..is..h..a..k...3..1...............B...y...S..u..n..d..r.y...d..e..b..t.o..r............................................................2..,.7..0..,.6..7...5......................................................
Baishak 20 By Cash............................................................................2..0..,.2..5...0......................................................
By Discount ........................................................................2..,.2...5..0......................................................
2,93,175 2,93,175
Jestha 1 By balance b/d 2,93,175
Subsidiary books CHAPTER 5 41
LQ-4. _____ Consider the following information of Nirajan: June 7 Sold goods on credit to Rustum of Laxmi Choke
June 5 Sold goods on credit to Mohan of Mechi 800 Ceiling fans @ Rs.1,700 each
300 Table fans @ Rs.1,000 each 600 Table fans @ Rs.1,400 each
400 Ceiling fans @ Rs.1,200 each Less: Trade discount @ 10%
June 9 Sold goods on cash to Punkaj of Rampur
30 Table fans @ Rs.1,500 each
50 Ceiling fans @ Rs.1,600 each
Less: 10% trade discount and 5% cash discount
Required: Sales book with necessary ledger account
Solution,
In the books of… …
Sales book
Date Particulars Invoice No. L/F Details Total
6-5
Mohan, Mechi
6-7
300 table fans @ Rs. 1,000.................................................................................................................................................3..0..0..,.0..0..0.................
400 ceiling fans @ 1,200.....................................................................................................................................................4..8..0..,.0..0..0..............7..8. 0,000
Rustum, Laxmi Choke
800 ceiling fans @ Rs. 1,700 ...........................................................................................................................................1..,.3..6..0..,.0..0..0.................
600 table fans @ Rs. 1,400.................................................................................................................................................8..4..0..,.0..0..0.................
2,200,000
Less: Trade discount 10%...................................................................................................................................................2..2..0..,.0..0..0...........1..,.9..8. 0,000
Total 2,760,000
Dr. Sales account Cr.
Date Particulars JF Amount Date Particulars JF Amount
6-31 To Balance c/d 106,875
2,872,500 6-9 By Cash 5,625
Total 6-9 By discount allowed
6-31 By Sundry debtors 2,760,000
2,872,500
2,872,500 Total 2,872,500
7-1 By Balance b/d
LQ-5. _____ Record the following transactions in the sales book of Laxman Sports, Biratnagar and also prepare the necessary
ledger A/c
Magh 1 Sold on credit to Nepal Sport, Inaruwa Magh 9 Sold on credit to Niraz & Co. Sunsari
20 Carram boards @ Rs.1000 each 30 Cricket bats @ 1500 each
20 Doz. Rackets @ Rs.20 per piece 20 Footballs @ 200 each
Less 10% trade discount
Magh 12 Sold on credit to Umesh Sports, Gulmi Magh 16 Sold to Ramji Sports in cash
40 Hockey sticks @ Rs.150 each 200 Volleyballs @ 160 less 10% cash discount
10 Vollyballs @ Rs.150 each Magh 25 Sold old motorcycle on credit to Shyam for
Less trade discount 5% Rs.80,000
Solution,
In the books of Laxman Sports
Sales Book
Date Particulars Invoice No. LF Details Amount Total
76,025Magh Nepal Sports, Inaruwa
20 Caramboard @ Rs.1000 each............................................................ 20,000 24,800
1 20 Doz. Rackets @Rs.240 per Doz. ....................................................... 4,800
9 Niraz & Co. Sunsari
30 Creckt bats @ 1500 each ................................................................... 45,000
12 20 Footballs @ Rs.200 each ................................................................... 4,000
49,000
Less Trade discount 10% ........................................................................ 4,900 44,100
Umesh Sports, Gulmi
40 Hockey sticks @ 150 each ................................................................. 6,000
10 Volleyballs @ 150 each ...................................................................... 1,500
7,500
Less Trade discount @ 5%...................................................................... 7,125
375 76,025
Dr. Sales account Cr.
Date
Particulars J.F. Amount Date Particulars J.F. Amount
To Balance c/d ......................... By Sundry debtor’s A/c................................... 76,025
1,08,025 Magh 15 By Cash A/c (160×200=32,000–3200) .......... 28,800
By Discount A/c (10%) ................................... 3200
Magh 17
1,08,025 By Balance b/d ............................................... 1,08,025
1,08,025
42 Accounting-XI
Dr. Nepal Sports account Cr.
Date
Particulars J.F. Amount Date Particulars J.F. Amount
Dr. To Sales A/c ............................ J.F.
Date To Balance b/d ........................ J.F. 24,800 By Balance c/d............................................... 24,800
Dr. Particulars 24,800
Date To Sales A/c.............................
To Balance b/d......................... Niraj & Co. account Cr.
Particulars Amount Date Particulars J.F. Amount
To Sales A/c ............................
To Balance b/d......................... 44,100 By Balance c/d............................................... 44,100
44,100
Umesh Sports account Cr.
Amount Date Particulars J.F. Amount
7,125 By Balance c/d............................................... 7,125
7,125
Purchase Return Book
LQ-6. _____ The following transactions of purchase return of Sushmita Electronics, Tulsipur are provided to you:
Poush 11: Return to Amar Electronics, Kathmandu Poush 18: Return to Arum Electronics, Patan
5 Television sets @ Rs.10,000 per piece 3 Tape recorders @ Rs. 2,000 per set
2 Freeze @ Rs.12,000 per piece 4 Radios sets @ Rs.500 per set
10 mobile sets @ Rs.4,000 per piece 5 VCD sets @ Rs. 2,500
(Less 10% trade discount)
Required: a. Purchase Return Book b. Purchase Return Account
Solution,
a. Purchase Return book
Date Particulars Debit Note No. L/F Details Total
Poush 11 Amar Electronics, Kathmandu
5TV set @ Rs. 10,000 per set 50,000
2 Freeze @ Rs. 12,000 per piece 24,000
10 mobile set @ Rs. 4,000 per piece 40,000
114,000
Less: Trade discount 10% (11,400) 102,600
Poush 18 Arun electronics, Patan
3 Tape recorder @ Rs. 2,000 per set 6,000
4 radios set @ Rs. 500 per set 2,000
5 VCD set @ Rs. 2,500 per set 12,500 20,500
Total 123,100
Dr. Purchase return A/c Cr.
Date Particulars L/F Rs. Date Particulars L/F Rs.
Poush 30
To Balance c/d ..............................................1..2..3..,.1..0..0......P..o..u...s.h...3..0..................B...y..S...u..n..d..r.y...c..r.e..d..i.t.o..r.s..........................................................1..2..3..,.1..0..0.......................................................
123,000 123,000
Magh 1 By Balance b/d ...............................................................1..2..3..,.1..0..0.......................................................
LQ-7. _____ Following purchase return transaction are given.
2075 Magh 5 Returned to Dipesh, Surkhet
12 tape recorders @ Rs.500 each
10 radio of Rs.800 each
2075 Magh 10 Return to Dinanath, Damak
20 telephone sets @ Rs.5,000 each less 10% trade discount
2075 Magh 15 Returned to Dirgha, Doti
30 telephone sets @ Rs.1,000 each
40 heaters sets @ Rs. 2,000 each
Required: a. Purchase return book b. Purchase return account c. Creditor’s account
Solution,
In the books of … …
Purchase return book
Date Particulars L/F Debit Note No. Amount
10-5
Ramakaji, Birgunj Detail Total
12 tape recorders @ Rs. 500
10 radios @ Rs. 800 6,000 14,000
8,000
10-10 Dinanath, Pokhara
10-15 20 telephone sets @ Rs. 5,000 100,000 90,000
Less: Trade discount @ 10% 10,000
Dirgha, Doti 110,000
30 telephone sets @ Rs. 1,000 30,000 214,000
40 heater sets @ Rs. 2,000 80,000
Total
Subsidiary books CHAPTER 5 43
Dr. Purchase return account Cr.
Date Particulars JF Amount Date Particulars JF Amount
10-31 To Balance c/d By Sundry creditors 214,000
Total 214,000 10-31 Total 214,000
By Balance b/d 214,000
214,000
11-1
Sales Return Book
LQ-8. _____ The following transactions of sales return of a Book Publisher and Distributor, Kathmandu are provided to you:
Jestha 10: Return from Sagun Pustak Bhandar, Bhaktapur
4 Business studies books @ Rs.250 per piece
5 Economics books @ Rs. 250 per piece
(15% trade discount)
Jestha 25: Return from Amit books and stationeries, Jawalakhel
5 Biology books @ Rs. 220 per piece
5 Physic books @ Rs.550 per piece
5 Chemistry books @ Rs.450 per piece
Required: a. Sales Return Book b. Sales Return Account c. Debtor's account
Solution,
a. Sales return book
Date Particulars Credit note No. L/F Details Total
Jestha 10 Sagun Pustak Bhandar, Bhaktapur
4. B.S. books @ Rs. 250 per pieces 1,000
5 Economics @ Rs. 250 per piece 1,250
2,250
Less Trade discount 15% (337.5) 1,912.5
Jestha 25 Amit books and stationeries, Jawalakhel
5 Biology books @ Rs. 220 per piece 1,100
5 Physic books @ Rs. 550 per piece 2,750
5 Chemistry book @ Rs. 450 per piece 2,250 6,100
Total 8012.5
Dr. Sales return A/c Cr.
Date
Particulars L/F Rs. Date Particulars L/F Rs.
Jestha 31
To Sundry debtors...........................................8..0..1..2...5......J..e..s..t.h..a...3..1.................B...y..B...a..l.a..n..c..e...c../.d...................................................................8..0..1..2...5.......................................................
Ashar 1
8012.5 8012.5
To Balance b/d ................................................8..0..1..2...5.......................................................................................................................................
LQ-9. _____ The following transactions relating to sales return are given to you.
Baishakh 3 Returned from Ramesh. Baishakh 10 Return from Bikash:
10 frying pans @ Rs.900 each 10 rice cookers @ Rs.900 each
4 bowls @ Rs.50 each 5 doz. of cup @ Rs.160 per doz. Less 10% trade dis
2 steel jug @ Rs.120 each
Required: Return inward book with necessary ledger account
Solution,
In the books of…
Sales return book
Date Particulars LF Credit Note No. Details Amount Total
1-3 Ramesh
10 frying pans @ Rs. 900 ............................................................................................................................................9..,.0..0..0............................
4 bowls @ Rs. 50............................................................................................................................................................2..0..0............................
2 steel jug @ Rs. 120 .....................................................................................................................................................2..4..0......................9..,.4...40
1-10 Bikash
10 rice cookers @ Rs. 900 ...........................................................................................................................................9..0..0..0............................
5 doz. of cup @ Rs. 160 ................................................ 800
Less: Trade discount @ 10% ......................................... 80 720 9,720
Total 19,160
Dr. Sales return A/c Cr.
Date Particulars JF Amount Date Particulars JF Amount
1-31 To Sundry debtors 19,160
Total 19,160 1-31 By Balance c/d 19,160
19,160
19,160 Total
2-1 By Balance b/d
Bills Receivable and Payable Book
LQ-10. ____ The following transactions in the bills receivable and payable books of a trader and also post them into receivable
and payable account.
2017 July 2 Received from Bibek an acceptance of 2 months for Rs. 3,000.
6 Our acceptance to Suman at 3 month for Rs. 8,000.
14 Received from Abhisek an acceptance for 4 months for Rs. 5,000.
44 Accounting-XI
19 Discounted Bibek's acceptance for Rs. 2,800.
21 Received from Manish an acceptance for 2 months for Rs. 7,000.
23 Our acceptance to Bishal at 2 months for Rs. 4,000.
25 Renewed our acceptance to Suman by paying him cash Rs. 4,000 and accepted a fresh bills of Rs. 4,200 at 4
months Rs. 200 being interest charged.
27 Abhisek's acceptance endorsed in favour of Roman in settlement of previous year's bills of Rs. 5,000.
Solution, Bills Receivable Book of ......
S.N. Bill No. Name of the acceptor From who received Date of Bill Term Date of maturity Amount How dealt with
2 Bibek Bibek 2-7-2017 2 months 4-9-2017 3,000
14 Abhisek Abhisek 14-7-2017 4 months 16-11-2017 5,000
21 Manish Manish 21-7-2017 2 months 23-9-2017 7,000
15,000
Total
Bills Payable Book of .....
S.N. Bill No. Name of the drawer Payee Date of Bill Term Date of maturity Amount Remarks
8,000
6 Suman Suman 6-7-2017 3 months 8-10-2017 4,000
Bishal 23-7-2017 2 months 25-9-2017 4,200
23 Bishal 16,200
Suman 25-7-2017 4 months 27-11-2017
25 Suman
Total
Dr. Bills Receivable Account Cr.
Date Particulars JF Amount Date Particulars JF Amount
2-7-2017 To Bibek a/c 2,800
14-7-2017 To Abhisek a/c 3,000 19-1-2017 By Cash a/c 200
21-7-2017 To Manish a/c 5,000 19-1-2017 By Discount a/c 5,000
7,000 27-1-2017 By Roman a/c 7,000
31-1-2017 By Balance c/d 15,000
15,000
1-2-2017 To balance b/d 7,000
Cr. Bills Payable Account Cr.
Date Particulars JF Amount Date Particulars JF Amount
25-1-2017 To Cash a/c 4,000
27-1-2017 To Roman a/c 4,000 1-1-2017 By Balance b/d 8,000
31-1-2017 To balance c/d 5,000 6-1-2017 By Suman a/c 4,000
7,200 23-1-2017 By Bishal a/c 200
25-1-2017 By Interest a/c 16,200
7,200
16,200
1-2-2017 By Balance b/d
VERY SHORT ANSWER QUESTIONS
VQ-1._____ Mr. Ranjit a business dealer, sold to Usha of Patan, 10 pieces of CD player at Rs. 150,000 providing 10% trade
discount sold 10 pieces of Radios at Rs. 1,000 each for cash.
Required: Sales Account
Solution,
Dr. Sales Account Cr.
Date Particulars JF Amount Rs. Date Particulars JF Amount Rs.
To Balance c/d.......................................................1..,.4..5..,.0..0..0...................................B...y..U...s..h..a...a../.c.............................................................1..,.3..5..,.0..0..0.......................................................
By Cash a/c ..............................................................1..0..,.0..0..0.......................................................
1,45,000 1,45,000
By Balance b/d ......................................................1..,.4..5..,.0..0..0.......................................................
VQ-2._____ The following journal entries are provided to you:
Date Particulars L.F. Debit Rs. Credit Rs.
Jan 1 Cash A/c ...................................................................................................................... Dr. 50,000
To Capital A/c
50,000
(Being business started with cash)
Jan 5 Bank A/c ....................................................................................................................... Dr. 20,000
To Cash A/c
20,000
(Being goods deposited into the bank)
Jan 8 Purchase A/c ................................................................................................................ Dr. 10,000
To Cash A /c 10,000
(Being goods purchased for cash)
Jan 10 Cash A/c ...................................................................................................................... Dr. 5,000
To Commission A/c
5,000
(Being commission received)
Jan 25 Bank A/c ....................................................................................................................... Dr. 20,000
To Cash A/c
20,000
(Being cash deposited into book)
Jan-30 Salary A/c ..................................................................................................................... Dr. 5,000
To Bank A/c
5,000
(Being salary paid through cheque)
Required: Cash account and bank account.
Solution, Cash Account Cr.
Dr.
Date Particulars JF Amount Rs. Date Particulars JF Amount Rs.
Jan 1
10 To Capital A/c ........................................................5..0..,.0..0..0............J..a..n....5............B..y...B..a..n..k...A.../.c.......................................................................2..0..,.0..0...0......................................................
To Commission A/c ..................................................5..,.0..0..0................8................B..y...P..u..r.c..h..a..s..e...A.../.c................................................................1..0..,.0..0...0......................................................
Feb 1 25 By Bank A/c......................................................................2..0..,.0..0...0......................................................
31 By Balance c/d ...................................................................5..,.0...0..0......................................................
55,000 55,000
To Balance b/d 5,000
Dr. Bank Account Cr.
Date
Jan 5 Particulars JF Amount Rs. Date Particulars JF Amount Rs.
25
To Cash A/c ............................................................2..0..,.0..0..0......J..a..n....2..5................B..y...S..a..l.a..r.y...A.../.c.......................................................................5..,.000
Feb 1 To Cash A/c .............................................................2..0..,.0..0..0......3..1........................B..y...B..a..l.a..n..c..e...c../.d...................................................................3..5..,.000
40,000 40,000
To Balance b/d 35,000
VQ-3._____ The following journal entries are provided to you:
Date Particulars L.F. Debit Rs. Credit Rs.
July10 Purchase A/c ................................................................................................................Dr.
35,000
To Cash A/c – 12,000
To Vijay's A/c – 15,000
To Bishal's A/c – 8,000
(Being goods purchased for cash and credited from Vijay and Bishal)
46 Accounting-XI
July 15 Wages A/c ....................................................................................................................Dr. 2,000 17,000
July 30 Vijay's A/c .....................................................................................................................Dr. 10,000 4,000
Bishal's A/c ...................................................................................................................Dr. 5,000 1,000
5,000
To Cash A/c
(Being cash paid to wages and paid to the creditors i.e. Vijay and Bischal)
Vijay's A/c .....................................................................................................................Dr.
To Cash A/c
To Discount A/c
(Being cash paid to Vijay and discount received from him)
Required: Purchase account, Vajay's account and Bishal's Account
Solution,
Dr. Purchase Account Cr.
Date Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
July 10 To Cash A/c ..........................................................1..2..,.0..0..0............J..u..l.y...3..1............B..a..l.a..n..c..e...c../.d........................................................................3..5..,.0..0...0......................................................
To Vijay's A/c ........................................................1..5..,.0..0..0................................................................................................................................
To Bishal's A/c ........................................................8..,.0..0..0................................................................................................................................
35,000 35,000
Aug 1 To Balance b/d ......................................................3..5..,.0..0..0................................................................................................................................
Dr. Vijay's Account Cr.
Date Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
July 15
July 30 To Cash A/c ..........................................................1..0..,.0..0..0............J..u..l.y...1..0............B..y...P..u..r.c..h..a..s..e...A.../.c................................................................1..5..,.0..0...0......................................................
July-30 To Cash A/c ............................................................4..,.0..0..0................................................................................................................................
To Discount A/c .......................................................1..,.0..0..0................................................................................................................................
15,000 15,000
Dr. Bishal's Accounts Cr.
Date Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
July 15
July 31 To Cash A/c ............................................................5..,.0..0..0.............J.u..l.y..1..0.............P..u..r.c..h..a..s..e...A../.c........................................................................8..,.0...0..0......................................................
To Balance c/d ........................................................3..,.0..0..0................................................................................................................................
8,000 8,000
Aug 1 By Balance b/d...................................................................3..,.0...0..0......................................................
SHORT ANSWER QUESTIONS
SQ-1._____ Following are the transactions of cloth retailer for the month of Mangsir
Mangsir 1 Machine purchased for Rs.30,000
Mangsir 1 Machine installed and wages paid Rs.2000
Mangsir 31 Depreciate Machine by Rs.320
Required: Prepare Machine account
Solution,
Dr. Machine Account Cr.
Date Particulars JF Amount Date Particulars JF Amount
Mangsir
Mangsir
1 To Cash A/c...........................................................3..0..,.0..0...0.....3..1...........................B..y...d..e..p..r..e..c.i.a..t.i.o..n...A.../.c................................................................3..2..0.......................................................
1 To Cash A/c.............................................................2..,.0...0..0.....3..1...........................B..y...b..a..l.a..n..c..e...c../.d...................................................................3..1..,.6..8..0.......................................................
Poush 1 32,000 32,000
To Balance b/d ......................................................3..1..,.6..8...0................................................................................................................................
SQ-2._____ The following transactions of Mr. Binod are provided to you:
Baishakh 1. Sold goods to Mr. Bivor Rs. 50,000.
Baishakh 10. Cash paid by Mr. Bivor Rs. 25,000.
Baishakh 10. Discount allowed to Mr. Bivor Rs. 1,500.
Baishakh 20. Goods return from Mr. Bivor Rs. 1,000.
Required: Mr. Bivor’s account
Solution,
In the Book of Mr. Binod Cr.
Dr. Bivor’s Account
Date Particulars JF Amount Rs. Date Particulars JF Amount Rs.
Baish. 1
To Sales A/c ...........................................................5..0..,.0..0..0.....B...a..i.s..h....1..0.............B..y...C..a..s..h...A.../.c.......................................................................2..5..,.0..0...0......................................................
Baish. 10 By discount allowed A/c.....................................................1..,.5...0..0......................................................
Baish.20 By Sales return A/c ...........................................................1..,.0...0..0......................................................
Baish.30 By balance c/d ................................................................2..2..,.5..0...0......................................................
50,000 50,000
Jestha 1 To balance b/d ........................................................2..2..,.5..0..0..............................................................................................................................
SQ-3._____ The following transactions of Mr. Chetan is given to you:
May 1. : Purchased goods from Mr. Chitra for Rs. 25,000
Ledger Account CHAPTER 6 47
May 2. : Goods purchased for Rs. 20,000
May 12. : Goods return to Mr. Chitra for Rs. 1,000
May 15. : Cash paid to Mr. Chitra for Rs. 15,000 and discount allowed by him Rs.750.
Required: Mr. Chitra’s account
Solution,
In the Book of Mr. Chetan
Chitra’s Account
Date Particulars JF Amount Rs. Date Particulars JF Amount Rs.
May. 12 To Purchase return A/c..............................................1..,.0..0..0.....M....a..y...1..................B..y...P..u..r..c.h..a..s..e...A.../.c................................................................2..5..,.0..0...0......................................................
May. 15 To Cash A/c ............................................................1..5..,.0..0..0..............................................................................................................................
May. 15 To Discount received A/c .............................................7..5..0..............................................................................................................................
May. 15 To Balance c/d .........................................................8..,.2..5..0..............................................................................................................................
25,000 25,000
May. 16 To Balance b/d ..................................................................8..,.2...5..0......................................................
SQ-4._____ Following transaction were given to you;
i. Started business with Rs.20,000
ii. Purchased goods for Rs.12,000 from Upendra and made partial payment of Es 8,000
iii. Equipment costing Rs.5,000 were sold for Rs.5,200
iv. Paid Rs.3,800 to Upendra in full settlement of his A/c
Required: Upendra’s A/c
Solutions,
Dr. Upendra's Account Cr.
JF Amount
Date Particulars JF Amount Date Particulars
To Cash A/c 3,800 By Purchase A/c 4,000
To Discount A/c 200
4,000 4,000
SQ-5._____ From the following transactions, prepare Ram's account as it would appear in the books of Shyam:
1st Baishakh 2055 Debit balance of Ram's A/c Rs.12,000
3rd Baishakh 2055 Goods sold to Ram for Rs.55,000
10th Baishakh 2055 Received cash from Ram Rs.25,000
15th Baishakh 2055 Ram returned goods worth Rs.3,500
Solution,
Dr. Ram's Account Cr.
Date Particulars JF Amount Date Particulars JF Amount
25,000
1/1/2055 To Balance b/d 12,000 1/10/2055 By Cash A/c 3,500
38,500
1/5/2055 To Sales A/c 55,000 1/15/2055 By Sales return A/c 67,000
1/30/2055 By Balance c/d
67,000
SQ-6._____ The following transactions of Mr. Sagar are provided to you:
i. Started business with Rs. 125,000
ii. Purchase goods from Mr. Sabin for Rs. 25,000 by making partial payment of Rs. 15,000
iii. Sold goods for Rs. 45,000 to Mr. Sagun by receiving partial payment of Rs. 25,000
iv. Furniture costing Rs. 7,500 was sold for Rs. 8,000
v. Paid Rs. 9,500 to Mr. Sabin in full settlement of his account.
Required: a. Journal entries b. Mr. Sabin’s A/c
Solution, In the Book of Mr. Sagar LF Debit Rs. Credit Rs.
a. 1,25,000 1,25,000
Date Journal entries 25,000 15,000
i. Particulars 10,000
ii. 25,000
Cash A/c ..............................................................................................................................Dr. 20,000 45,000
iii. To Capital A/c 8,000 7,500
iv. (Being business started by investing capital) 10,000 500
Purchased A/c .....................................................................................................................Dr. 9,500
v.
To Cash A/c 500
To Sabin’s A/c
(Being goods purchased from Mr. Sabin by making partial payment)
Cash A/c .............................................................................................................................Dr.
Sagun’s A/c ........................................................................................................................Dr.
To Sales A/c
(Being goods sold to Mr. Sagun by receiving partial payment)
Cash A/c ...............................................................................................................................Dr.
To Furniture A/c
To Profit and loss A/c (profit on sale)
(Being furniture sold more than book value)
Sabin's A/c ...........................................................................................................................Dr.
To Cash A/c
To Discount received A/c
(Being amount paid to Mr. Sabin in full settlement of account)
48 Accounting-XI
b. Dr. Sabin’s Account Cr.
Date Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
i.
To Cash A/c ............................................................9..,.5..0..0.................ii.................B..y...P..u..r.c..h..a..s..e...A.../.c................................................................1..0..,.0..0...0......................................................
To Discount received A/c ...........................................5..0..0................................................................................................................................
10,000 10,000
SQ-7._____ The following transactions of Mrs. Sushma are provided to you:
i. Commenced business by investing Rs. 50,000
ii. Purchased goods for Rs. 25,000
iii. Sold goods to Mrs Rita for Rs. 16,000 by receiving partial payment of Rs. 6,000
iv. An old plant costing Rs. 5,000 was sold for Rs. 4,000
v. Paid salary to office staffs Rs. 5,000
vi. Received cash from Mrs. Rita for Rs. 9,500 in full settlement of her account.
Required: a. Journal entries b. Mrs. Rita’s A/c
Solution,
a. In the Book of Mrs. Sushma
Journal entries
Date Particulars LF Debit Rs. Credit Rs.
i. Cash A/c ............................................................................................................................... Dr. 50,000
To Capital A/c 50,000
(Being business started by depositing cash into bank)
ii. Purchased A/c ..................................................................................................................... Dr. 25,000
To Cash A/c 25,000
(Being goods purchased on cash)
iii. Cash A/c .............................................................................................................................. Dr. 6,000
Rita’s A/c.............................................................................................................................. Dr. 10,000
To Sales A/c 16,000
(Being goods sold to Mrs. Rita by receiving partial payment)
iv. Cash A/c .............................................................................................................................. Dr. 4,000
Profit and loss A/c (loss on sale) ......................................................................................... Dr. 1,000
To Plant A/c 5,000
(Being plant sold less than book value)
v. Salary A/c ............................................................................................................................. Dr. 5,000
To Cash A/c 5,000
(Being salary paid to office staffs)
vi. Cash A/c ............................................................................................................................... Dr. 9,500
Discount allowed A/c ............................................................................................................ Dr. 500
To Rita’s A/c 10,000
(Being amount received from Mrs. Rita in full settlement of account)
b. Dr. Rita’s Account Cr.
Date Particulars JF Amount Rs. Date Particulars JF Amount Rs.
iii.
To Sales A/c ..........................................................1..0..,.0..0..0................f................B..y...C..a..s..h...A.../.c.........................................................................9..,.5...0..0......................................................
By Discount allowed A/c ......................................................5...0..0......................................................
10,000 10,000
SQ-8._____ The following transactions are provided to you:
i. Purchased goods from Mr. Hari for Rs. 15,000 on cash
ii. Purchased equipment for office use Rs. 10,000
iii. Goods sold on credit Rs. 10,000
iv. Equipment costing Rs. 5,000 was sold for Rs. 6,000
v. Cash received from debtors Rs. 9,500 in full settlement of his account.
Required: a. Journal entries b. Equipment A/c
Solution, Journal entries
a.
Date Particulars LF Debit Rs. Credit Rs.
i. Purchased A/c .........................................................................................................................................Dr. 15,000 15,000
To Cash A/c 10,000 10,000
ii. (Being goods purchased from Mr. Hari on cash) 10,000 10,000
Equipment A/c .........................................................................................................................................Dr. 6,000 5,000
iii. To Cash A/c 1,000
(Being equipment for office use on cash) 9,500
iv. Debtors A/c .............................................................................................................................................Dr. 500 10,000
To Sales A/c
v. (Being goods sold on credit)
Cash A/c ..................................................................................................................................................Dr.
To Equipment A/c
To Profit and loss A/c (profit on sale)
(Being equipment sold more than book value)
Cash A/c...................................................................................................................................................Dr.
Discount allowed A/c ..............................................................................................................................Dr.
To Debtor A/c
(Being amount received from debtors in full settlement of account)
Ledger Account CHAPTER 6 49
b. Dr. Equipment Account Cr.
Date Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
ii.
iv. To Cash A/c .........................................................1..0..,.0..0..0................i.v.................B..y...C..a..s..h...A.../.c.........................................................................6..,.0...0..0......................................................
To Profit and loss A/c ..............................................1..,.0..0..0..................................B..y...b..a..l.a..n..c..e...c../d......................................................................5..,.0...0..0......................................................
11,000 11,000
To Balance b/d ........................................................5..,.0..0..0................................................................................................................................
SQ-9._____ The following transactions are provided to you:
i. Started business with Rs. 25,000
ii. Purchase goods on cash Rs. 26,000
iii. Sold goods to Mr. Harish for Rs. 10,000
iv. Mr. Harish settled his account and allowed him discount Rs.750
v. Goods sold to Mr. Harish for Rs. 15,000
vi. Goods returned by Mr. Harish for Rs. 1,000 b. Mr. Harish’s A/c
Required: a. Journal entries
Solution, Journal entries
a.
Date Particulars LF Debit (Rs.) Credit (Rs.)
i. Cash A/c .................................................................................................................................................Dr. 25,000
To Capital A/c 25,000
ii. (Being business started by investing capital)
Purchased A/c ........................................................................................................................................Dr. 26,000
iii. To Cash A/c 26,000
(Being goods purchased on cash)
iv. Harish’s A/c ............................................................................................................................................Dr. 10,000
To Sales A/c 10,000
v. (Being goods sold on credit)
Cash A/c .................................................................................................................................................Dr. 9,250
vi Discount allowed A/c ..............................................................................................................................Dr. 750
To Harish’s A/c 10,000
b. Dr. (Being amount received from Harish in full settlement on account)
Date Harish’s A/c .............................................................................................................................................Dr. 15,000
To sales A/c 15,000
iii. (Being goods sold to Harish on credit)
v. Sales Return A/c .....................................................................................................................................Dr. 1,000
To Harish’s A/c 1,000
(Being goods returned by Harish)
Mr. Harish’s A/c Cr.
Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
To Sales A/c .........................................................1..0..,.0..0..0................i.v.................B..y...C..a..s..h...A.../.c.........................................................................9..,.2...5..0......................................................
To Sales A/c .........................................................1..5..,.0..0..0..................................B..y...D..i.s..c..o..u..n..t..a..l.l.o..w..e..d....A../.c.........................................................7...5..0......................................................
By Sales return A/c ...........................................................1..,.0...0..0......................................................
By Balance c/d ................................................................1..4..,.0..0...0......................................................
25,000 25,000
To Balance b/d ......................................................1..4..,.0..0..0................................................................................................................................
SQ-10.____ Following transactions are given:
i. Shyam started business with cash Rs.200,000 and furniture of Rs. 25,000
ii. Purchased goods from Ram of Rs.40,000
iii. Sold goods to Shiva of Rs. 5,000 b. Ram’s account
iv. Settled Ram’s account receiving discount at 10%.
Required: a. Journalize entries
Solution,
a. Journal entries
Date Particulars LF Debit (Rs.) Credit (Rs.)
i. Cash A/c ..............................................................................................................................Dr. 2,00,000
Furniture A/c ........................................................................................................................Dr. 25,000
ii. 2,25,000
iii. To Capital A/c
iv. (Being business started with cash and furniture) 40,000 40,000
Purchase A/c .......................................................................................................................Dr.
5,000 5,000
To Ram’s A/c
(Being goods purchased from Ram on credit) 40,000 36,000
Shiva’s A/c............................................................................................................................Dr. 4,000
To Sales A/c
(Being goods sold to Shiva on credit)
Ram’s A/c ............................................................................................................................Dr.
To Cash A/c
To Discount received a/c
(Being amount paid to Ram in full settlement of his account)
50 Accounting-XI
Dr. Ram’s A/c Cr.
Date Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
iv.
To Cash A/c ..........................................................3..6..,.0..0..0.................i.i................B..y...P..u..r.c..h..a..s..e.......................................................................4..0..,.0..0...0......................................................
To Discount received a/c ........................................4..,.0..0..0................................................................................................................................
40,000 40,000
SQ-11.____ Following transactions are given:
2066 Chaitra 1. : Started business with cash Rs. 200,000
2066 Chaitra 2. : Cash deposited into Bank Rs.100,000
2066 Chaitra 5. : Purchased goods on credit from Ganesh Rs.50,000
2066 Chaitra 10. : Settled Ganesh’s account by paying cheque of Rs.49,000
Required: a. Journalise entries b. Ganesh’s account
Solution,
a. Journal entries
Date Particulars LF Debit (Rs.) Credit (Rs.)
2066 Cash A/c ................................................................................................................................Dr. 2,00,000
Chaitra 1 2,00,000
To Capital A/c
2066 (Being business started with cash and furniture) 1,00,000 1,00,000
Chaitra 2 Bank A/c ...............................................................................................................................Dr.
50,000 50,000
2066 To Cash A/c
Chaitra 5 (Being cash deposited into bank) 50,000 49,000
Purchase A/c ........................................................................................................................Dr. 1,000
2066
Chaitra 10 To Ganesh’s A/c
(Being goods purchased from Ganesh on credit)
Ganesh’s A/c ........................................................................................................................Dr.
To Cash A/c
To Discount received a/c
(Being amount paid to Ganesh in full settlement of his account)
b. Dr. Ganesh’s A/c Cr.
Date Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
2066
Chaitra 10 To Cash A/c ..........................................................4..9..,.0..0..0......2..0..6..6......................B..y...P..u..r.c..h..a..s..e.......................................................................5..0..,.0..0...0......................................................
To Discount received a/c ........................................1..,.0..0..0......C..h..a..i.t.r.a....5.............................................................................................................
50,000 50,000
SQ-12.____ Following transactions are given:
Baisakh 4 : Goods sold to Shyam Rs. 1,00,000
Baisakh 10 : Received goods returned by Shyam Rs. 5,000
Baisakh 22 : Sold goods to Shyam Rs. 55,000
Baisakh 25 : Received a cheque of Rs. 94,000 from Shyam in full settlement of Rs. 95,000
Required: a. Journal Entries b. Shyam's Account
Solution,
a. Journal Entries
Date Particulars LF Debit (Rs.) Credit (Rs.)
100,000 100,000
i. Shyam's a/c Dr. 5,000
To Sales a/c .......................................................................................................................................... 5,000 55,000
(Being goods sold to Shyam on credit) 55,000 95,000
ii. Sales return a/c Dr. 94,000
To Shyam's a/c 1,000
(Being goods returned by Shyam)
iii. Shyam's a/c Dr.
To Sales a/c
(Being goods sold to Shyam on credit)
iv. Bank a/c Dr.
Discount a/c Dr
To Shyam's a/c
(Being amount received from Shyam in full settlement of his account)
b. Dr. Shyam's a/c Cr.
Date Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
i. To Sales a/c 100,000 ii.
iii. To Sales a/c 55,000 iv. By Sales return a/c.............................................................5...,0...0..0......................................................
By Bank a/c .....................................................................9..4..,.0..0...0......................................................
By Discount a/c ..................................................................1..,.0...0..0......................................................
By Balance c/d .................................................................5..5..,.0..0...0......................................................
1,55,000 1,55,000
55,000
To Balance b/d
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Accounting XI Manual 2020
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