Ledger Account CHAPTER 6 51
LONG ANSWER QUESTIONS
LQ-1. The following information is made available to you:
i. Hare 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.
Required: (a) Journal entries (b) Necessary ledger accounts (c) Trial balance
Solution,
a. 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 Hare Ram started business by investing capital)
5,000
ii. Purchased A/c ........................................................................................................................................ Dr. 45,000 7,000
To Bank A/c 5,000
(Being goods purchased on cash)
iii. Bank A/c ................................................................................................................................................. Dr. 50,000
To Sales A/c
(Being goods sold on cash and amount deposited into bank)
iv. Rent A/c .................................................................................................................................................. Dr. 5,000
To Bank A/c
(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(Being amount withdrawn for personal use)
b. Ledger Accounts
Bank A/c
Date Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
i. To Capital A/c ...................................................1..,.2..0..,.0..0..0.................ii.................B..y...P..u..r.c..h..a..s..e...A.../.c................................................................4..5..,.0..0...0......................................................
iii. To Sales A/c .........................................................5..0..,.0..0..0................i.v.................B..y...R..e..n...t..A../.c..........................................................................5..,.0...0..0......................................................
v. By Salaries A/c ..................................................................7..,.0...0..0......................................................
vi. By Drawing A/c .................................................................5..,.0...0..0......................................................
By Balance c/d ..............................................................1..0..8...,0...0..0......................................................
To Balance b/d 1,70,000 1,70,000
108,000
Capital A/c
Date Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
To Balance c/d ...................................................1..,.2..0..,.0..0..0......A...........................B...y...B..a..n..k...A.../.c....................................................................1..,.2..0..,.0..0...0......................................................
1,20,000 1,20,000
By Balance b/d .............................................................1..,.2..0..,.0..0...0......................................................
Dr. Purchase A/c Cr.
Date Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
b
To Bank a/c ..........................................................4..5..,.0..0..0..................................B..y...B..a..l.a..n..c..e...c../.d...................................................................4..5..,.0..0...0......................................................
45,000 45,000
To Balance b/d ......................................................4..5..,.0..0..0................................................................................................................................
Dr. Sales A/c Cr.
Date
Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
4
To Balance c/d ......................................................5..0..,.0..0..0................c..................B..y...B..a..n..k...a../.c........................................................................5..0..,.0..0...0......................................................
50,000 50,000
By Balance b/d ................................................................5..0..,.0..0...0......................................................
Dr. Rent A/c Cr.
Date
Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
To Bank A/c ............................................................5..,.0..0..0..................................B..y...B..a..l.a..n..c..e...c../.d.....................................................................5..,.0...0..0......................................................
5,000 5,000
To Balance b/d ........................................................5..,.0..0..0................................................................................................................................
52 Accounting-XI
Dr. Salaries A/c Cr.
Date
Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
e.
To Bank A/c ............................................................7..,.0..0..0..................................B..y...B..a..l.a..n..c..e...c../.d.....................................................................7..,.0...0..0......................................................
Dr.
Date 7,000 7,000
To Balance b/d ........................................................7..,.0..0..0................................................................................................................................
f.
Drawing A/c Cr.
c.
S.N. Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
1 To Bank A/c ............................................................5..,.0..0..0..................................B..y...B..a..l.a..n..c..e...c../.d.....................................................................5..,.0...0..0......................................................
2
3 5,000 5,000
4 To Balance b/d ........................................................5..,.0..0..0................................................................................................................................
5
6 Trial balance Debit (Rs.) Credit (Rs.)
7 Particulars 108,000 --
--
Bank A/c 45,000 1,20,000
Capital A/c --- ---
Purchase A/c 5,000
Sales A/c 7,000 50,000
Rent A/c 5,000 --
Salaries A/c --
Drawing A/c 1,70,000 ---
Total
1,70,000
LQ-2._____ The following information relates to Laxman Furniture House of Kalopul:
January 1 : Commenced business with a balance at bank 125,000
1 : Furniture purchased from Ram Krishna 80,000
15 : Furniture sold to Hari 25,000
22 : Furniture purchased and paid by cheque 50,000
30 : Salaries due for the month 20,000
Required: Journal entries, ledger accounts and trial balance to check arithmetical accuracy
Solution, Journal entries
a.
Date Particulars LF Debit (Rs.) Credit (Rs.)
125,000 125,000
January 1 Bank A/c ..................................................................................................................................................Dr. 80,000
To Capital A/c 80,000 25,000
January 1 (Being business commenced with bank balance) 50,000
25,000 20,000
January 15 Purchased A/c..........................................................................................................................................Dr.
To Ram Krishna’s A/c 50,000
January 22 {Being furniture (goods) purchased from Ram Krishna on credit}
20,000
January 30 Hari’s A/c.................................................................................................................................................Dr.
To Sales 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)
c. Ledger Accounts
Dr. Bank A/c Cr.
Date
Jan.1 Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
Feb. 1 To Capital A/c ....................................................1..2..5..,.0..0..0......J..a..n....2..2.................B...y...P..u..r.c..h..a..s..e...A.../.c................................................................5..0..,.0..0...0......................................................
Jan. 31 By Balance c/d ................................................................7..5..,.0..0...0......................................................
125,000 125,000
To Balance b/d ......................................................7..5..,.0..0..0................................................................................................................................
Dr. Capital A/c Cr.
Date
Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
To Balance c/d ....................................................1..2..5..,.0..0..0......J..a..n....1....................B..y...B..a..n..k...A.../.c.....................................................................1..2..5...,0...0..0......................................................
125,000 125,000
By Balance b/d ..............................................................1..2..5...,0...0..0......................................................
Dr. Purchase A/c Cr.
Date
Jan. 1 Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
Jan. 22
To Ram Krishna’s a/c ..........................................8..0..,.0..0..0......J..a..n....3..1..................B..y...B..a..l.a..n..c..e...c../.d.................................................................1..3..0...,0...0..0......................................................
Feb.1 To Bank a/c ...........................................................5..0..,.0..0..0................................................................................................................................
1,30,000 130,000
To Balance b/d ....................................................1..3..0..,.0..0..0................................................................................................................................
Ledger Account CHAPTER 6 53
Dr. Ram Krishan’s A/c Cr.
Date
Jan. 31 Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
Dr. To Balance c/d ......................................................8..0..,.0..0..0......J..a..n....1....................B..y...P..u..r.c..h..a..s..e..d....a../.c..............................................................8..0...,0..0...0......................................................
Date
Jan. 15 80,000 80,000
Feb. 1 Feb. 1 By Balance b/d ................................................................8..0..,.0..0...0......................................................
Hari’s A/c Cr.
Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
To Sales A/c ........................................................2..5..,.0..0..0......J..a..n....3..1..................B..y...B..a..l.a..n..c..e...c../.d...................................................................2..5..,.0..0...0......................................................
25,000 25,000
To Balance b/d ......................................................2..5..,.0..0..0................................................................................................................................
Dr. Sales A/c Cr.
Date Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
Jan. 31
To Balance c/d ......................................................2..0..,.0..0..0......J..a..n....2..5..................B..y...H..a..r..i’.s...A.../.c......................................................................2..5..,.0..0...0......................................................
25,000 25,000
Feb. 1 By Balance b/d ................................................................2..5..,.0..0...0......................................................
Dr. Salaries A/c Cr.
Date
Jan. 30 Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
Feb. 1 To Outstanding salary A/c .....................................2..0..,.0..0..0......J..a..n....3..1..................B..y...B..a..l.a..n..c..e...c../.d...................................................................2..0..,.0..0...0......................................................
20,000 20,000
To Balance b/d ......................................................2..0..,.0..0..0................................................................................................................................
Dr. Outstanding Salaries A/c Cr.
Date Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
Jan. 31
To Balance c/d .....................................................2..0..,.0..0..0......J..a..n....3..0..................B..y...S..a..l.a..r.y...a../.c......................................................................2..0..,.0..0...0......................................................
20,000 20,000
Feb.1 By Balance b/d ................................................................2..0..,.0..0...0......................................................
iii. Trial balance Debit (Rs.) Credit (Rs.)
Particulars 75,000 --
S.N. --
1 Bank A/c 125,000
2 Capital A/c 1,30,000 ---
3 Purchase A/c ---
4 Ram Krishna’s A/c 80,000
5 Hari’s A/c 25,000 --
6 Sales A/c --
7 Salaries A/c 25,000
8 Outstanding salary A/c 20,000 ---
Total ---
20,000
2,50,000
2,50,000
LQ-3._____ The following information relates to Manisha:
July 1. : Commenced business with Cash of Rs. 20,000 and Goods worth Rs. 25,000.
July 31. : Withdrawn Rs. 1,000 on a permanent basis out of capital.
October 1. : Brought in additional capital of Rs.15,000.
December 31. : Sale of Goods Rs. 19,500
December 31. : Drawings made during the year Rs. 2,500.
Required: Journal entries, ledger accounts and trial balance to check arithmetical accuracy
Solution,
a. Journal entries
Date Particulars LF Debit Rs. Credit Rs.
July 1 Cash A/c ............................................................................................................................ Dr. 20,000 45,000
Stock of Goods A/c .......................................................................................................... Dr. 25,000 1,000
July 31 15,000
October 1 To Capital A/c 1,000 19,500
December 31 (Being business commenced with bank balance and stock of goods) 2,500
December 31 Drawing A/c ....................................................................................................................... Dr. 15,000
To Cash A/c 19,500
(Being amount withdrawn on a permanent basis for personal use)
2,500
Cash A/c ............................................................................................................................ Dr.
To Capital A/c
(Being additional capital brought)
Cash 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)
54 Accounting-XI
b. Ledger Accounts
Dr. Cash A/c Cr.
Date Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
July 1
Oct. 1 To Capital A/c ......................................................2..0..,.0..0..0......J..u..ly...3..1...................B..y...D..r..a..w..i.n..g....A.../.c...................................................................1..,.0...0..0......................................................
Dec. 31 To Capital A/c .......................................................1..5..,.0..0..0......D..e..c....3..1..................B..y...D..r..a..w..i.n..g...a../.c.....................................................................2...,5...0..0......................................................
To Sales a/c ..........................................................1..9..,.5..0..0......D..e..c....3..1..................B..y...B..a..l.a..n..c..e...c../.d...................................................................5..1..,.0..0...0......................................................
Jan. 1
54,500 54,500
To Balance b/d 51,000
Dr. Capital A/c Cr.
Date Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
Dec. 31 To Balance c/d By Cash A/c 20,000
60,000 July 1 By Stock of goods 25,000
July 1 By Cash a/c 15,000
Oct. 1 60,000
By Balance b/d 60,000
60,000
Jan. 1
Dr. Stock of goods A/c Cr.
Date
July 1 Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
To Capital a/c By Balance c/d 25,000
Jan. 1 25,000 Dec. 31 25,000
To Balance b/d
25,000
25,000
Dr. Drawing A/c Cr.
Date
July 31 Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
Dec. 31
To Cash a/c ...........................................................1..,.0..0..0......D..e..c....3..1..................B..y...B..a..l.a..n..c..e...c../.d.....................................................................3..,.5...0..0......................................................
Jan. 1 To Cash a/c ............................................................2..,.5..0..0................................................................................................................................
3,500 3,500
To Balance b/d.........................................................3..,.5..0..0................................................................................................................................
Dr. Sales A/c Cr.
Date Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
Dec. 31
To Balance c/d ......................................................1..9..,.5..0..0......D..e..c....3..1..................B..y...C..a..s..h...a../.c........................................................................1..9..,.5..0...0......................................................
19,500 19,500
Jan. 1 By Balance b/d ................................................................1..9..,.5..0...0......................................................
Trial balance
S.N. Particulars Debit (Rs.) Credit (Rs.)
1 Cash A/c ...................................................................................................................................................................5..1..,.0..0..0............................ --
2 Capital A/c ..........................................................................................................................................................................-.-....................6..0..,.0..00
3 Stock of goods A/c ..................................................................................................................................................2...5..,.0..0..0............................---
4 Drawing A/c .................................................................................................................................................................3..,.5..0..0............................---
5 Sales A/c ..........................................................................................................................................................................-.-.-....................1..9..,.5..00
Total 79,500 79,500
LQ-4._____ The following information is made available to you:
i. Sita Ram started business with cash Rs. 50,000 & Bank Deposit Rs. 100,000
ii. Purchased goods for inventory issuing a cheque 50,000
iii. Sold goods in cash and deposited into the Bank 60,000
iv. Paid Rent for the month 10,000 by issuing a cheque.
v. Paid salaries 15,000 through cheque.
vi. Drew for personal use Rs. 5,000 from bank.
Required: (a) Journal entries (b) Necessary ledger accounts (c) Trial balance
Solution, Journal entries
a.
Date Particulars LF Debit (Rs.) Credit (Rs.)
i. 1,00,000 1,50,000
Bank A/c...................................................................................................................................................Dr. 50,000 50,000
ii. Cash A/c...................................................................................................................................................Dr. 60,000
To Capital A/c 50,000
iii. (Being Sita Ram started business by investing capital) 10,000
60,000
iv. Purchased A/c .........................................................................................................................................Dr.
To Bank A/c 10,000
(Being goods purchased by cheque)
Bank A/c...................................................................................................................................................Dr.
To Sales A/c
(Being goods sold on cash and amount deposited into bank)
Rent A/c ..................................................................................................................................................Dr.
To Bank A/c
(Being rent paid for the month by cheque)
Ledger Account CHAPTER 6 55
v. Salaries A/c ..............................................................................................................................................Dr. 15,000 15,000
vi To Bank A/c 5,000 5,000
b. (Being salaries paid by cheque)
Date Drawing A/c .............................................................................................................................................Dr.
Dr. To Bank A/c
Date (Being amount withdrawn for personal use)
Dr. Ledger Accounts
Date Bank A/c
Dr. Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
Date
To Capital A/c ...................................................1..,.0..0..,.0..0..0.................................B...y...P..u..r.c..h..a..s..e...A.../.c................................................................5..0..,.0..0...0......................................................
Dr. To Sales A/c .........................................................6..0..,.0..0..0..................................B..y...R..e..n...t..A../.c........................................................................1..0..,.0..0...0......................................................
Date
By Salaries A/c ................................................................1..5..,.0..0...0......................................................
Dr. By Drawing A/c .................................................................5..,.0...0..0......................................................
Date By Balance c/d ................................................................8..0..,.0..0...0......................................................
v.
1,60,000 1,60,000
Dr.
Date To Balance b/d ......................................................8..0..,.0..0..0................................................................................................................................
Dr Capital A/c Cr.
Date
Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
iii.
S.N. To Balance c/d ...................................................1..,.5..0..,.0..0..0.................................B...y...B..a..n..k...A.../.c....................................................................1..,.0..0..,.0..0...0......................................................
By Cash A/c .....................................................................5..0..,.0..0...0......................................................
1
2 1,50,000 1,50,000
3
4 By Balance b/d .............................................................1..,.5..0..,.0..0...0......................................................
5
6 Purchase A/c Cr.
7
8 Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
To Bank a/c ..........................................................5..0..,.0..0..0..................................B..y...B..a..l.a..n..c..e...c../.d...................................................................5..0..,.0..0...0......................................................
50,000 50,000
To Balance b/d ......................................................5..0..,.0..0..0................................................................................................................................
Sales A/c Cr.
Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
To Balance c/d
60,000 c. By Bank a/c .....................................................................6..0..,.0..0...0......................................................
60,000 60,000
By Balance b/d ................................................................6..0..,.0..0...0......................................................
Rent A/c Cr.
Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
To Bank A/c ..........................................................1..0..,.0..0..0..................................B..y...B..a..l.a..n..c..e...c../.d...................................................................1..0..,.0..0...0......................................................
10,000 10,000
To Balance b/d ......................................................1..0..,.0..0..0................................................................................................................................
Salaries A/c Cr.
Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
To Bank A/c ..........................................................1..5..,.0..0..0..................................B..y...B..a..l.a..n..c..e...c../.d...................................................................1..5..,.0..0...0......................................................
15,000 15,000
To Balance b/d ......................................................1..5..,.0..0..0................................................................................................................................
Drawing A/c Cr.
Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
To Bank A/c ............................................................5..,.0..0..0..................................B..y...B..a..l.a..n..c..e...c../.d.....................................................................5..,.0...0..0......................................................
5,000 5,000
To Balance b/d ........................................................5..,.0..0..0................................................................................................................................
Cash A/c Cr.
Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
ToCapital A/c ........................................................5..0..,.0..0..0..................................B..y...B..a..l.a..n..c..e...c../.d...................................................................5..0..,.0..0...0......................................................
50,000 50,000
To Balance b/d ......................................................5..0..,.0..0..0................................................................................................................................
Trial balance
Particulars Debit (Rs.) Credit (Rs.)
Bank A/c ....................................................................................................................................................................8..0..,.0..0..0............................ --
Cash A/c.....................................................................................................................................................................5..0..,.0..0..0............................---
Capital A/c ..........................................................................................................................................................................-.-.................1..,.5..0..,.0..00
Purchase A/c .............................................................................................................................................................5..0..,.0..0..0............................---
Sales A/c ............................................................................................................................................................................-.-.-....................6..0..,.0..00
Rent A/c .....................................................................................................................................................................1..0..,.0..0..0............................ --
Salaries A/c ...............................................................................................................................................................1..5..,.0..0..0............................ --
Drawing A/c .................................................................................................................................................................5..,.0..0..0............................---
Total 2,10,000 2,10,000
56 Accounting-XI
LQ-5._____ The following information relates to Degoo Furniture House of Ratopul:
January 1 : Commenced business with a balance at bank Rs. 80,000
1. : Furniture purchased from Chandra 100,000
15. : Furniture sold to Harish 20,000
22. : Furniture purchased and paid by cheque 50,000
30. : Salaries due for the month 20,000
Required: Pass journal entries and prepare necessary ledger accounts
Solution, Journal entries
a.
Date Particulars LF Debit (Rs.) Credit (Rs.)
80,000 80,000
January 1 Bank A/c ..................................................................................................................................................Dr.
To Capital A/c 1,00,000 1,00,000
January 1 20,000
(Being business commenced with bank balance) 20,000 50,000
January 15 20,000
Purchased A/c .........................................................................................................................................Dr. 50,000
January 22 To Chandra’s A/c
(Being furniture (goods) purchased from Chandra on credit} 20,000
January 30
Harish’s A/c ............................................................................................................................................Dr.
b. To Sales A/c
Date (Being furniture(goods) sold to Harish on credit)
Jan.1
Purchase A/c ..........................................................................................................................................Dr.
Feb. 1 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)
Ledger Accounts
Bank A/c
Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
To Capital A/c
80,000 Jan. 22 By Purchase A/c ..............................................................5..0..,.0..0...0......................................................
To Balance b/d Jan. 31 By Balance c/d ................................................................3..0..,.0..0...0......................................................
80,000 80,000
30,000
Dr. Capital A/c Cr.
Date
Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
To Balance c/d ......................................................8..0..,.0..0..0......J.a..n....1....................B...y...B..a..n..k...A../.c........................................................................8..0..,.0..0...0......................................................
80,000 80,000
By Balance b/d ................................................................8..0..,.0..0...0......................................................
Dr. Purchase A/c Cr.
Date
Jan. 1 Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
Jan. 22
To Chandra’s a/c ...............................................1..,.0..0..,.0..0..0.....J..a..n....3..1..................B...y...B..a..l.a..n..c..e...c../.d.................................................................1..5..0...,0...0..0......................................................
Feb.1 To Bank a/c ...........................................................5..0..,.0..0..0..............................................................................
1,50,000 150,000
To Balance b/d 150,000
Dr. Chandra’s A/c Cr.
Date Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
Jan. 31
To Balance c/d ...................................................1..,.0..0..,.0..0..0......J.a..n....1....................B...y...P..u..r.c..h..a..s..e..d....a../.c...........................................................1..,.0..0..,.0..0...0......................................................
1,00,000 1,00,000
Feb. 1 By Balance b/d .............................................................1..,.0..0..,.0..0...0......................................................
Dr. Harish’s A/c Cr.
Date
Jan. 15 Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
Feb. 1 To Sales A/c .........................................................2..0..,.0..0..0......J.a..n....3..1..................B...y...B..a..l.a..n..c..e...c../.d...................................................................2..0..,.0..0...0......................................................
20,000 20,000
To Balance b/d ......................................................2..0..,.0..0..0..............................................................................
Dr. Sales A/c Cr.
Date Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
Jan. 31 To Balance c/d
20,000 Jan. 25 By Harish’s A/c.................................................................2..0..,.0..0...0......................................................
20,000 20,000
Feb. 1 By Balance b/d ................................................................2..0..,.0..0...0......................................................
Dr. Salaries A/c Cr.
Date
Jan. 30 Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
Feb. 1 To Outstanding salary A/c ....................................2..0..,.0..0..0......J.a..n....3..1..................B...y...b..a..l.a..n..c.e...c../.d....................................................................2..0..,.0..0...0......................................................
20,000 20,000
To Balance b/d ......................................................2..0..,.0..0..0..............................................................................
Ledger Account CHAPTER 6 57
Dr. Outstanding Salaries A/c Cr.
Date Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
Jan. 31
To Balance c/d .....................................................2..0..,.0..0..0......J.a..n....3..0..................B...y...S..a..l.a..r.y...a../.c......................................................................2..0..,.0..0...0......................................................
20,000 20,000
Feb.1 By Balance b/d ................................................................2..0..,.0..0...0......................................................
LQ-6._____ The following information relates to Manjula:
July 1. : Commenced business with Cash of Rs. 10,000 and Goods worth Rs. 15,000.
July 31. : Withdrawn Rs. 2,000 on a permanent basis out of capital.
October 1. : Brought in additional capital of Rs. 5,000.
December 31. : Sale of Goods Rs. 9,500
December 31. : Drawings made during the year Rs. 2,500.
Required: Pass journal entries and prepare necessary ledger accounts
Solution,
a. Journal entries
Date Particulars LF Debit (Rs.) Credit Rs.
July 1 10,000 25,000
Cash A/c ................................................................................................................................................Dr. 15,000 2,000
July 31 Stock of Goods A/c................................................................................................................................Dr. 5,000
October 1 To Capital A/c 2,000 9,500
December 31 (Being business commenced with bank balance and stock of goods) 2,500
December 31 5,000
Drawing A/c ............................................................................................................................................Dr.
To Cash A/c 9,500
(Being amount withdrawn on a permanent basis for personal use)
2,500
Cash A/c .................................................................................................................................................Dr.
To Capital A/c
(Being additional capital brought)
Cash 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)
b. Ledger Accounts
Cash A/c
Date
July 1 Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
Oct. 1 To Capital A/c By Drawing A/c 2,000
Dec. 31 To Capital A/c 10,000 July 31 By Drawing a/c 2,500
To Sales a/c 5,000 Dec. 31 By Balance c/d 20,000
Jan. 1 9,500 Dec. 31 24,500
To balance b/d
24,500
20,000
Dr. Capital A/c Cr.
Date Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
Dec. 31
To Balance c/d ......................................................3..0..,.0..0..0......J..u..ly...1.....................B..y...C..a..s..h...A.../.c.......................................................................1..0..,.0..0...0......................................................
July 1 By Stock of goods ...........................................................1..5...,0..0...0......................................................
Oct. 1 By Cash a/c .......................................................................5..,.0...0..0......................................................
30,000 30,000
Jan. 1 By balance b/d ................................................................3..0..,.0..0...0......................................................
Dr. Stock of goods A/c Cr.
Date
July 1 Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
Jan. 1 To Capital a/c ........................................................1..5..,.0..0..0......D..e..c....3..1..................B..y...B..a..l.a..n..c..e...c../.d...................................................................1..5..,.0..0...0......................................................
15,000 15,000
To Balance b/d ......................................................1..5..,.0..0..0................................................................................................................................
Dr. Drawing A/c Cr.
Date
July 31 Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
Dec. 31
To Cash a/c ...........................................................2..,.0..0..0......D..e..c....3..1..................B..y...B..a..l.a..n..c..e...c../.d.....................................................................4..,.5...0..0......................................................
Jan. 1 To Cash a/c ............................................................2..,.5..0..0................................................................................................................................
4,500 4,500
To Balance b/d.........................................................4..,.5..0..0................................................................................................................................
Dr. Sales A/c Cr.
Date Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
Dec. 31
To Balance c/d ........................................................9..,.5..0..0......D..e..c....3..1.................B...y...C..a..s..h...a../.c..........................................................................9..,.5...0..0......................................................
9,500 9,500
Jan. 1 By Balance b/d ..................................................................9..,.5...0..0......................................................
58 Accounting-XI
LQ-7._____ The following transactions are provided to you:
2064 Shrawan 1 : Commenced business with cash Rs.60,000 and stock Rs.40,000
Shrawan 11 : Goods purchased from Suraj in cash Rs.20,000 and in credit Rs.16,000
Shrawan 13 : Goods sold to Manoj in cash Rs.14,000 and credit on Rs.6000
Shrawan 17 : Cash paid to Suraj Rs.10,950 and discount allowed by him Rs.150
Shrawan 29 : Cash received from Manoj Rs.3850 and discount allowed to him Rs.150.
Required: (a) Journal entries (b) Necessary ledger accounts (c) Trial balance
Solution,
Journal Entries
Date Particulars LF Debit (Rs.) Credit (Rs.)
2064 Cash A/c..........................................................................................................................................Dr. 60,000 1,00,000
Baishak 1 Stock A/c .........................................................................................................................................Dr. 40,000 20,000
36,000 16,000
11 To Capital A/c 20,000
(Being business started) 6,000 10,950
13 Purchase A/c ..................................................................................................................................Dr. 14,000 150
11,100
17 To Cash A/c 4,000
To Suraj’s A/c 3850
29 (Being goods purchase from Suraj & partial payment made) 150
Manoj’s A/c .....................................................................................................................................Dr.
Cash A/c .........................................................................................................................................Dr.
To Sales A/c
(Being goods sold to Manoj and partial payment made)
Suraj’s A/c ......................................................................................................................................Dr.
To Cash A/c
To Discount A/c
(Being cash paid t Surj deducting cash discount
Cash A/c .........................................................................................................................................Dr.
Discount A/c ...................................................................................................................................Dr.
To Manoj’s A/c
(Cash received from Manoj after deducting discount)
Ledger Accounts
Dr. Cash Account Cr.
JF Amount
Date Particulars JF Amount Date Particulars
2064 To Capital A/c................................ 2064
Baishak 1 To Sales A/c.................................. 60,000 Baishak 13 By Purchase A/c ................................. 20,000
Baishak 15 To Manoj’s A/c .............................. 14,000 Baishak 17 By Suraj’s A/c ..................................... 10,950
Baishak 29 3,850 Baishak 30 By Balance c/d.................................... 46,900
77,850 77,850
Jestha 1 To Balance b/d .............................. 46,900
Dr. Stock Account Cr.
Date Amount
2064 1-1 Particulars JF Amount Date Particulars JF
40,000
To Capital A/c........................... 40,000 2064 1-30 By Balance c/d............................................
40,000
2-1 To Balance b/d......................... 40,000
40,000
Dr. Capital Account Cr.
Date Particulars JF Amount Date Particulars JF Amount
60,000
2064-1-30 To Balance c/d......................... 1,00,000 2064-1-1 By Cash A/c.................................................... 40,000
1-1 By Stock A/c ...................................................
1,00,000
1,00,000 2-1 By Balance b/d ............................................... 1,00,000
Dr. Purchase Account Cr.
Date Amount
20641-13 Particulars JF Amount Date Particulars JF
1-13 36,000
To Cash A/c ............................. 20,000 2064-1-30 By Balance c/d.................................................
2-1 To Suraj’s A/c .......................... 16,000 36,000
Dr. To Balance b/d......................... 36,000
Date
2064 36,000
1-17
1-30 Suraj's Account Cr.
Amount
Particulars JF Amount Date Particulars JF
To Cash A/c ............................. 10,950 2064-1-1 By Purchase A/c ........................................... 16,000
To Discount A/c ....................... 150
To Balance c/d......................... 4,900 2-1 By Balance b/d.............................................. 16,000
4,900
16,000
Ledger Account CHAPTER 6 59
Dr. Manoj's Account Cr.
Date Particulars
2064-1-15 To Sales A/c .................... JF Amount Date Particulars JF Amount
2-1 To Balance b/d................. 6,000 2064-1-29 By Cash A/c .................................................. 3,850
1-29 By Discount A/c............................................. 150
1-30 By Balance c/d.............................................. 2,000
6,000 6,000
2,000
Dr. Sales Account Cr.
Date Particulars JF Amount Date Particulars JF Amount
2064-1-13 To Balance c/d................. 20,000 2064-1-15 By Manoj’s A/c ......................................... 6,000
14,000
20,000 1-15 By Cash A/c ............................................. 20,000
2-1 By Balance b/d......................................... 20,000
Dr. Discount Account Cr.
Date Particulars JF Amount Date Particulars JF Amount
150
2064-1-29 To Manoj’sl A/c ................ 150 2064-1-17 By Suraj’s A/c....................................... 150
150
List of ledger accounts Dr. Amount Cr.Amount
S.N. Name of ledger account 46,900
1 Cash account.......................................................................................................................................... 40,000
2 Stock account ......................................................................................................................................... 100,000
3 Capital account....................................................................................................................................... 36,000
4 Purchase account................................................................................................................................... 4,900
5 Suraj’s account ....................................................................................................................................... 2,000
6 Manoj’s account...................................................................................................................................... 20,000
7 Sales account .........................................................................................................................................
Total 124,900 124,900
VERY SHORT ANSWER QUESTIONS
VQ-1._____ The following financial transactions are provided to you:
Baishak 1 : Started business with cash Rs. 500,000.
Baishak 4 : Purchased goods for cash Rs. 200,000.
Baishak 20 : Paid staff salary Rs.100,000.
Required: Single Column Cash Book.
Solution,
Single column cash book with cash column
Date Particulars L/F Rs. Date Particulars L/F Rs.
Baishakh 1
To Capital a/c .................................................................5..0..0..,.0..0..0......B...a..is..h..a..k..h...4.........B..y...P...u..r.c..h..a..s..e...a../.c.........................................................2..0..0...,0...0..0......................................................
Baishakh 20 By Salary a/c.............................................................1..0..0...,0...0..0......................................................
Baishakh 31 By Balance c/d..........................................................2..0...0..,0...0..0......................................................
500,000 500,000
Jestha 1 To Balance b/d ...............................................................2..0..0..,.0..0..0......................................................................................................................
VQ-2._____ The following financial transactions are provided to you:
March 1 : Started business with cash Rs.100,000.
March 4 : Purchased goods for Rs. 40,000.
March 10 : Deposited into bank Rs. Rs.10,000.
March 15 : Sold goods for cash Rs. 20,000.
March 20 : Paid staff salary Rs.10,000.
March 25 : Paid to creditors Rs. 20,000.
Required: Single Column Cash Book
Solution,
Single column cash book with cash column
Date Particulars L/F Rs. Date Particulars L/F Rs.
March 1 To Capital A/c ...................................................................1..0..0..,.0..0..0..............M...a..r.c..h...4......B..y...P...u..r.c..h..a..s..e...A../.c...........................................................4..0..,.0..0...0......................................................
15 To Sales A/c........................................................................2..0..,.0..0..0.......................1..0......B..y...B...a..n..k...A../.c..................................................................1..0..,.0..0...0......................................................
20 By Salary A/c ..............................................................1..0..,.0..0...0......................................................
25 By Creditors ................................................................2..0..,.0..0...0......................................................
31 By Balance c/d............................................................4..0..,.0..0...0......................................................
120,000 120,000
April 1 To Balance b/d....................................................................4..0..,.0..0..0...................................................................................................................
VQ-3._____ The following banking transactions are provided to you:
Ashad 1 : Bank balance Rs.200,000.
Ashad 8 : Purchased goods for Rs. 50,000 by cheque payment
Ashad 15 : Sold goods for Rs. 20,000 and receive a cheque for the same
Required: Bank Column Cash Book(Simple bank book)
Solution,
Single column cash book with cash column
Date Particulars L/F Rs. Date Particulars L/F Rs.
Ashad 1 To Balance b/d 50,000
Ashad 15 To Sales a/c 200,000 Ashad 8 By Purchase a/c 170,000
20,000 Ashad 31 By Balance c/d 220,000
220,000
Shrawan 1 To Balance b/d 170,000
VQ-4._____ The following financial transactions are provided to you:
Poush 1 : Started business with bank balance Rs.70,000
Poush 10 : Purchased goods Rs. 45,000 by cheque payment
Poush 12 : Sold goods Rs. 250,000 on cash and deposited into bank
Poush 16 : Cash withdrew from bank Rs. 8,000 for office use.
Poush 22 : Purchase stationery and supplies Rs. 2,000
Poush 30 : Paid staffs salary Rs.5,000 and office rent Rs. 5,000
Required: Bank Column Cash Book(Simple bank book)
Cash and Banking Transactions CHAPTER 7 61
Solution,
Single column cash book with bank column
Date Particulars L/F Rs. Date Particulars L/F Rs.
Poush 1 To Capital A/c ...................................................................7..0..,.0..0..0............P..o..u..s..h...1..0......B..y...P...u..r.c..h..a..s..e...A../.c...........................................................4..5..,.0..0...0......................................................
12 To Sales A/c....................................................................2..5..0..,.0..0..0.......................1..6......B..y...C...a..s..h...A../.c....................................................................8..,.0...0..0......................................................
22 By Stationary A/c ..........................................................2..,.0...0..0......................................................
30 By Salary A/c ................................................................5..,.0...0..0......................................................
By Rent A/c...................................................................5..,.0...0..0......................................................
30 By Balance c/d..........................................................2..5...5..,0...0..0......................................................
320,000 320,000
Magh 1 To Balance b/d................................................................2..5..5..,.0..0..0.....................................................................................................................
SHORT ANSWER QUESTIONS
Single Column cash book
SQ-1. ____ Biraj started a trading business last year. His latest balance sheet shows cash balance of Rs.5,000. During the first
month of this year-Baisakh, the following transactions take place:
Baisakh 3 : Bought office cabinet for Rs.3,000
Baisakh 8 : Purchased goods from Krishna for Rs.10,000
Baisakh 11 : Sold Goods to Shyam on credit Rs.15,000
Baisakh 15 : Paid office expenses Rs.2,000
Baisakh 19 : Received cash from Shyam, discount allowed 4%
Baisakh 22 : Purchased stationery goods of Rs.1,000
Baisakh 25 : Paid cash to Krishna after deducting 5% discount
Baisakh 28 : Bought bicycle for Ashamaru's son Rs.2,000
Baisakh 30 : Rent of machine received Rs.3,000
Baisakh 31 : Salary & wages of the month Rs.6,000 due.
Required: Simple cash book
Solution,
Receipts Simple cash book Payments
Date Particulars L/F Cash Date Particulars L/F Cash
1-1 To Balance b/d....................................... 5,000 1-3 By Office cabinet .......................... 3,000
1-19 To Shyam .............................................. 14,400 1-15 By Office expenses....................... 2,000
1-30 To Rent of machine ............................... 3,000 1-22 By Stationery ................................ 1,000
By Krishna .................................... 9,500
1-25 By Drawing ................................... 2,000
1-28 By Balance c/d.............................. 4,900
1-31 Total
Total 22,400 22,400
2-1 To Balance b/d....................................... 4,900
SQ-2. ____ Enter the following transactions in simple bank book assuming that all receipts are banked & all payments are
made through cheque.
Jestha 1 : Balance of cash at bank Rs. 15,000
Jestha 4 : Goods sold to Chandani Rs. 1,200 and received cash
Jestha 8 : Paid for stationery purchase Rs.500
Jestha 12 : Sales made for Rs. 9,600, cash discount allowed Rs.400
Jestha 15 : Purchased goods for Rs. 4,000 by cheque
Jestha 18 : Sold goods to Sundari Rs. 5,000 on credit
Jestha 22 : Receipt from sale of old furniture Rs.1,500
Jestha 25 : Received cheque from Sundari for Rs.4,800 in full settlement of her account
Jestha 28 : Received rent from tenant Rs.800
Jestha 30 : Paid salary Rs.7,500
Solution,
Receipts Simple Bank Book Payments
Date Particulars LF Bank Date Particulars LF Bank
2-1 To Balance b/d 15,000 2-8 By Stationery 500
2-4 To Sales 1,200 2-15 By Purchase
2-12 To Sales 9,200 2-30 By Salary 4,000
2-22 To Furniture 1,500 2-31 By Balance c/d 7,500
2-25 To Sundari 4,800 20,500
2-28 To Rent
800
Total 32,500 Total 32,500
3-1 To Balance b/d 20,500
Double Column Cash Book
SQ-3. ____ The following cash transactions for the month of Poush 2057 are given to you:
Poush 1 Balance of cash in hand Rs.13,200
Poush 5 Paid Rs.7,200 for purchase of goods after deduction of Rs.50 as a discount
62 Accounting-XI
Poush 7 Received cash Rs.4,500 from Kumar Lal after deducting a discount of Rs.75
Poush 10 Sold goods for Rs.3,500 and received cheque for the same
Poush 20 Paid wages of Rs.500
Poush 30 Paid Rs.1,275 to Ram Lal after deducting a discount of Rs.25
Required: Double column (Cash and discount columns) Cash book
Solution,
Dr. Cash Book with Cash and Discount Columns Cr.
Date Particulars LF Cash Discount Date Particulars LF Cash Discount
9-1 To Balance b/d 13,200 9-5 By Purchase 7,200
9-7 To Kumar Lal 4,500 75 9-20 By Wages 500
9-30 By Ram Lal 1,275 25
9-31 By Balance c/d 8,725
Total 17,700 75 Total 17,700 -
10-1 To Balance b/d 8,725
SQ-4. ____ The following financial transactions of Mr. Binod for the month of Maght are provided to you:
Magh 1 : Opening balance of cash Rs. 50,000
Magh 5 : Purchased goods from Amar for Rs.25,000 by making partial payment of Rs.10,000
Magh 10 : Cash deposited into bank Rs.12,000
Magh 15 : Sold goods to Mr Resham for Rs.25,000 by receiving partial payment Rs. 10,000
Magh 20 : Paid to a creditor Rs. 10,000
Magh 25 : Paid Rs. 14,500 to Mr. Amar in full settlement of his account
Magh 28 : Received Rs. 14,000 from Mr. Resham in full settlement of his account
Magh 30 : Staffs salary Rs. 5,000 and office rent Rs. 2,000 paid in cash.
Required: Cash book with cash and discount columns
Solution,
Dr. Cash book with Cash and Discount Columns
Date Particulars L/F Cash Rs. Dis. Rs. Date Particulars L/F Cash Rs. Dis. Rs.
Magh 1 To Balance b/d.........................................5..0..,.0..0..0.......................................M...a..g..h...5......B...y..P...u..r.c..h..a..s..e.............................................1..0..,.0..0..0.............................................................................
10 By Bank A/c............................................1..2..,.0..0..0.............................................................................
10 To Sales...................................................1..0..,.0..0..0...............................................2...0.....B...y..C...r.e..d..i.t.o..r.s...A.../.c.......................................1..0..,.0..0..0.............................................................................
28 To Resham A/c ........................................1..4..,.0..0..0..................1..,.0..0..0......................2...5.....B...y..A...m...a..r..A.../.c.............................................1..4..,.5..0..0..................5...0..0......................................................
30 By Salary A/c............................................5..,.0..0..0.............................................................................
By Rent A/c...............................................2..,.0..0..0.............................................................................
31 By Bal c/d ...............................................2..0..,.5..0..0.............................................................................
74,000 1,000 74,000 500
Falgun 1 To Balance b/c 20,500
SQ-5._____ The following financial transactions of Mr. Ashim for the month of Jestha are provided to you:
Jestha 1 : Opening balance of cash Rs.45,000
Jestha 5 : Purchased goods from Amit for Rs.15,000 by making partial payment of Rs.5,000
Jestha 10 : Cash deposited into bank Rs.10,000
Jestha 15 : Sold goods to Mr Rojit for Rs.25,000 by receiving partial payment of Rs. 10,000
Jestha 20 : Paid to a creditor Rs. 5,000
Jestha 25 : Paid Rs. 9,500 to Mr. Amit in full settlement of his account
Jestha 28 : Received Rs. 14,000 from Mr. Rojit in full settlement of his account
Jestha 30 : Staffs salary Rs. 5,000 and office rent Rs. 2,000 paid in cash.
Required: Cash book with cash and discount columns
Solution,
Dr. Cash Book with Cash and Discount Columns Cr.
Dis. Rs.
Date Particulars L/F Bank Rs. Dis. Rs. Date Particulars L/F Bank Rs.
Jestha 1 To Balance b/d Jestha 5 By Purchase A/c 5,000 500
45,000 10,000
15 To Sales A/c 10,000 10 By Bank A/c 5,000 500
28 To Rojit A/c 14,000 1,000 20 By Creditors A/c 9,500
25 By Amit A/c 5,000
Ashar 1 To Balance b/d 30 By Salary A/c 2,000
32,500
By Office rent A/c 69,000
31 By Balance c/d
69,000 1,000
32,500
SQ-6. ____ The following financial transactions of Mr. Sabin for the month of April are provided toyou:
April 1 : Opening bank balance Rs.65,000
April 4 : Purchased goods from Mahesh for Rs.18,000 by making partial payment of Rs.8,000 through cheque
April 10 : Cash Rs. 4,000 withdrew from bank for office purpose
April 15 : Sold goods to Ramesh for Rs.25,000 by receiving partial payment of Rs. 10,000
April 20 : Paid to a creditor Rs. 15,500 through cheque
April 25 : Paid Rs. 9,600 to Mr. Mahesh in full settlement of his account
April 27 : Received Rs. 14,500 from Ramesh in full settlement of his account
April 28 : Paid staffs salary Rs. 5,000 and office rent Rs. 2,000
Required: Cash book with bank and discount columns
Cash and Banking Transactions CHAPTER 7 63
Solution, Cash Book with Bank and Discount Columns Cr.
Dis. Rs.
Dr. L/F Bank Rs. Dis. Rs. Date Particulars L/F Bank Rs.
8,000 400
Date Particulars 65,000 April 4 By Purchase A/c 4,000 400
April 1 To Balance b/d 15,500
15 To Sales A/c 10,000 10 By Cash A/c 9,600 Cr.
27 To Ramesh A/c 5,000 Bank
14,500 500 20 By Creditor A/c 2,000
45,400 12,000
25 By Mahesh A/c 89,500 16,400
28,400
28 By Salary A/c
Cr.
By Rent A/c Bank
30 By Balance c/d 2,800
3,000
89,500 500 4,000
2,000
May 1 To Balance b/d 45,400 19,200
31,000
SQ-7. ____ The following cash and banking transactions were given to you:
Poush 1 Balance of cash in hand Rs.4,500 and at bank Rs.21,500
Poush 5 Paid into bank Rs.4,000
Poush 10 Sold goods for Rs.7,000 and received cash Rs.4,000 and cheque of Rs.2,900 in full payment
Poush 15 Withdrew Rs.12,000 from bank for office use
Poush 28 Paid Rs.15,000 for purchase of goods and received a discount of Rs.200
Required: Cash book with cash and bank columns
Solution,
Dr. Cash Book with Cash and Bank Columns
Date Particulars LF Cash Bank Date Particulars LF Cash
9-1 To Balance b/d 4,500 21,500 9-5 By Bank c 4,000
9-5 To Cash c 4,000 9-15 By Cash c
9-10 To Sales 4,000 2,900 9-28 By Purchase
9-15 To Bank c 12,000 9-31 By Balance c/d 15,000
1,500
Total 20,500 28,400 Total 20,500
10-1 To Balance b/d 1,500 16,400
SQ-8. ____ Prepare the cash book with cash & bank columns for Ashad, 2063.
Ashad 1 : Balance of cash in hand Rs.7,200 and at bank Rs.21,000.
Ashad 6 : Purchased furniture for Rs.1,800.
Ashad 10 : Withdrew cash from bank for personal use Rs.2,800.
Ashad 12 : Sold goods for Rs.8,000 and received cash deducting 5% cash discount.
Ashad 15 : Paid into bank Rs.10,000.
Ashad 20 : Purchased goods on credit Rs.10,000 and for cash Rs.2,000 from Kamal.
Ashad 25 : Paid advertisement Rs.1,000.
Ashad 28 : Withdrew from bank Rs.3,000.
Ashad 30 : Paid salary Rs.4,000 and rent Rs.2,000 by cheque.
Solution,
Dr. Cash book with cash and bank columns
Date Particulars L.F. Cash Bank Date Particulars L.F. Cash
1,800
Ashad 1 To Balance b/d 7,200 21,000 Ashad 6 By Furniture A/c
Ashad12 To Sales A/c 7,600 Ashad 10 By Drawing A/c c 10,000
Ashad 15 To Cash A/c c 10,000 Ashad 15 By Bank A/c 2,000
Ashad 28 To Bank A/c c 3,000 Ashad 20 By Purchase A/c 1,000
Ashad 25 By Advertisement A/c
c
Ashad 28 By Cash A/c
Ashad 30 By Salary A/c 3,000
Ashad 30 By Rent A/c 17,800
Ashad 31 By Balance c/d
17,800 31,000
Shrawan 1 To balance b/d 3,000 19,200
SQ-9._____ The following transactions are given to you.
2062 Chaitra 1 : Cash at bank Rs.12,500.
: Cash in hand Rs.2,000.
2062 Chaitra 8 : Issued a cheque to creditors Rs.6,000.
2062 Chaitra 15 : Goods purchased Rs.8,000 on credit from Raju.
2062 Chaitra 18 : Sold goods for Rs.15,000 and received cheque.
2062 Chaitra 25 : Withdrew from bank Rs.5,000.
2062 Chaitra 28 : Cheque issued to Raju for Rs.7,680 after deducting 4% discount.
2062 Chaitra 29 : Paid rent Rs.1,000 and salary Rs.2,500.
2062 Chaitra 30 : Deposit cash keeping minimum balance of Rs.2,000 at office.
Required: Cash book with cash and bank column
64 Accounting-XI
Solution, Cash book with cash and bank columns Cr.
Dr.
Date Particulars L.F. Cash Bank Date Particulars L.F. Cash Bank
6,000
2062 Chaitra 1 To Balance b/d 2,000 12,500 2062 Chaitra 8 By Creditors A/c
" 18 To Sales A/c 15,000 " 25 By Cash A/c c 5,000
" 25 To Bank A/c c 5,000 " 28 By Raju A/c 7,680
" 30 To Cash A/c c 1,500 " 29 By Rent A/c
" 25 By Salary A/c 1,000
To Balance b/d " 30 By Bank A/c 2,500
" 31 By Balance c/d c 1,500
2,000 10,320
7,000 29,000 7,000 29,000
2,000 10,320
SQ-10. ___ Write up the cash book with cash & bank columns from the following transactions for the month of Jestha.
Jestha 1 : Balance of cash at office Rs. 3,720 and overdraft at bank Rs.13,250.
Jestha 4 : Sold goods for Rs.15,000, received cheque for Rs.12,000 and cash for balance.
Jestha 10 : Received a cheque from Karna of Rs.5,400 and allowed a discount of Rs.100 to him.
Jestha 15 : Goods purchased from Arjun on credit Rs.7,000.
Jestha 20 : Paid Rs.4,000 to Arjun for part payment.
Jestha 25 : Withdrew cash Rs.5,000: Rs.1,000 for personal use.
Jestha 28 : Paid sundry expenses Rs. 3,000.
Jestha 30 : Issued a cheque of Rs.2,800 to Arjun in full discharge of his debt.
Solution:
Dr Cash book with cash and bank columns Cr
Date Particulars LF Cash Bank Date Particulars LF Cash Bank
2-1 To Balance b/d
2-4 To Sales A/c 3,720 - 2-1 By Balance b/d - 13,250
2 - 10 To Karna A/c 3,000 12,000 2 - 20 By Arjun A/c 4,000
2 - 25 To Bank A/c 5,400 2 - 25 By Cash A/c c 4,000
2 - 31 To Balance c/d c 4,000 2 - 25 By Drawings A/c 1,000
3,650 2 – 28 By Sundry expenses A/c 3,000
2 – 30 By Arjun A/c 2,800
2 – 31 By Balance c/d 3,720
10,720 21,050 10,720 21,050
3 - 1 To balance b/d 3,720 - 3-1 By Balance b/d - 3,650
Triple Column Cash Book
SQ-11. ___ The following cash and banking transactions are given:
Ashad 1 Cash in hand Rs.2,000
Ashad 2 Cash sales Rs.12,000
Ashad 5 Deposited in Bank Rs.10,000
Ashad 7 Paid to Ram by cheque Rs.5,300
Discount received from Ram Rs.200
Ashad 9 Received a cheque from Shyam of Rs.3,900 and paid into bank. Allowed him discount of Rs.100
Ashad 10 Withdrawn Rs.2,000 from the bank for office use
Required: Triple column cash book
Solution,
Dr. Triple Column Cash Book Cr.
Discount
Date Particulars LF Cash Bank Discount Date Particulars LF Cash Bank
3-1 To Balance b/d 2,000 10,000 3-5 By Bank 200
3-2 To Sales 12,000 3,900 3-7 By Ram 10,000 5,300
3-5 To Cash 3-10 By Cash 200
3-9 To Shyam c By Balance c/d c 2,000
3-10 To Bank 100 3-31 6,000 6,600
c 2,000
Total 16,000 13,900 100 Total 16,000 13,900
4-1 To Balance b/d 6,000 6,600
SQ-12. ___ You are given the following cash and banking transactions:
Chaitra 1 Cash in hand Rs. 10,000 and cash at bank (credit) Rs. 50,000.
Chaitra 6 Received cheque of Rs. 5,700 from a customer after deducting 5% discount.
Chaitrra 12 Paid by cash Rs. 1,900 in full settlements of Rs. 2,000
Chaitra 18 Cash deposited into Bank Rs. 1,000.
Chaitra 24 Sale of Rs. 30,000 Rs. 4,000 received in cash and balance amount is received by cheque, allowed cash
discount of Rs. 1,000.
Required: Cash book with cash, Bank and Discount columns.
Cash and Banking Transactions CHAPTER 7 65
Solution,
Dr. Triple Column Cash Book Cr.
Date Particulars L.F. Cash Bank Disc. Date Particulars L.F. Cash Bank Disc.
12-1 To Balance b/d c 10,000 - - 12-1 By Balance b/d - 50,000
12-6 To Debtors A/c - 300 12-12 By Creditors A/c 1,900 - 100
12-18 To Cash A/c 4,000 5,700 - 12-18 By Bank A/c c 1,000 -
12-24 To Sales A/c - 1,000 1,000 12-31 By Balance c/d 11,100 -
12.31 To Balance c/d 14,000 25,000
11,100 18,300 1,300 14,000 50,000 100
1-1 To Balance b/d 50,000 1-1 By Balance b/d 18,300
SQ-13. ___ Enter the following transactions in to triple column cash book.
1 January Cash balance b/d Rs.50,000
2 January Deposited into bank Rs.40,000
15 January Sold goods to Mohan on credit Rs.1,000
16 January Received cash from Mohan Rs.950 in full settlement of his account
18 January Bought goods and paid for cash Rs.10,000
20 January Bought goods and paid by cheque Rs.15,000
30 January Sold goods for Rs.10,000 and received a cheque
Solution,
Dr. Triple Column Cash book Cr.
Date Particulars LF Bank Cash Disc. Date Particulars LF Bank Cash Disc.
1 January To Balance b/d - 50,000 - 2 January By Bank A/c c - 40,000 -
2 January To Cash A/c c 40,000 - - 18 January By Purchase A/c - 10,000
16 January To Mohan’s A/c - 950 50 20 January By Purchase A/c 15,000 950
30 January To Sales A/c 10,000 30 January By Balance c/d 35,000 50,950
1 February To Balance b/d 50,000 50,950 50,000
35,000 950 1,300
SQ-14. ___ The following transactions of M/S Sangam Enterprises are provided to you:
Chaitra 1 : Balance of cash in hands Rs.40,000 and at bank (credit) Rs.100,000
Chaitra 4 : Purchased goods from Sagun Brothers for Rs. 25,000 by making partial payment of Rs.10,000.
Chaitra 6 : Received cheque of Rs.19,000 from a customer after deducting 5% discount
Chaitra 12 : Sold goods for Rs.40,000 to Mr. Sabin by receiving partial payment of Rs.20,000 through cheque.
Chaitra 18 : Cash deposited into bank Rs.10,000
Chaitra 24 : Paid Rs. 14,500 to Sagun Brothers as full settlement of account through cheque.
Note: all cheques deposited into bank on the same day
Required: Cash book with cash, bank, and Discount columns
Solution,
Double column with cash and bank column
Date Particulars L/F Cash (Rs.) Bank (Rs.) Dis. (Rs.) Date Particulars L/F Cash (Rs.) Bank (Rs.) Dis. (Rs.)
Chaitra 1 To Balance b/d 40,000 Chaitra 1 By Balance b/d 100,000
19,000 1,000 4 By Purchase A/c 10,000
6 To Customer A/c 20,000 18 By Bank A/c 'c' 10,000
12 To Sales A/c
18 To Cash A/c 'c' 10,000 24 By Sagun A/c 14,500 500
31 To Balance c/d 65,500 31 By Balance c/d 20,000
1,000 40,000 114,500 500
Baishak 1 To Balance b/d 40,000 114,500
20,000 Baishak 1 By Balance b/d 65,500
SQ-15. ___ Write up a triple column cash book from the following particulars.
i. Balance of cash at office Rs.5,000 and overdraft with bank Rs.5,000.
ii. Sold goods for Rs.32,000, received cheque of Rs.20,000 and balance in cash.
iii. Purchased furniture worth Rs.4,000.
iv. Paid cash into bank Rs.10,000.
v. Received from Rajan Rs.5,200 for settlement of his due amount of Rs.5,500.
vi. Purchased goods on credit Rs.50,000, trade discount 10%
vii. Withdrew from bank Rs.2,000 and paid insurance premium of the proprietor.
viii. Paid the creditors in half through cheque.
Solution,
Dr. Triple column cash book Cr.
Date Particulars LF Cash Bank Disc Date Particulars LF Cash Bank Disc
i. To Balance b/d 5,000 i. By Balance b/d 5,000
ii. To Sales A/c 12,000 20,000 iii. By Furniture A/c 4,000
iv. To Cash A/c c 10,000 iv. By Bank A/c c 10,000
v. To Rajan A/c 5,200 300 vii. By Cash A/c c 2,000
vii. To Bank A/c c 2,000 vii. By Drawing A/c 2,000
To Balance c/d viii. By Creditors A/c 22,500
By Balance c/d 8,200 500
24,200 30,000 300 24,200 30,000
To Balance b/d 8,200 500
66 Accounting-XI
SQ-16. ___ The following transactions are given:
January 1 : Cash in hand Rs. 50,000 and cash at Bank Rs.100,000
January 5 : Received cash Rs.19,000 from the debtors after deducting discount at 5%.
January 10 : Paid cash Rs.4,600 in full settlement of Rs. 5,000.
January 15 : Purchased goods for Rs. 45,000 and paid Rs.25,000 in cash. The balance amount is paid through cheque
after receiving discount of Rs. 1,000
January 28 : Cash deposited into bank Rs.20,000
January 29 : Paid Staff salary Rs. 5,000 in cash and office rent Rs. 2,500 by cheque.
Required: Triple column cash book
Solution,
Triple column cash book with cash, bank and discount column
Date Particulars L/F Cash (Rs.) Bank (Rs.) Dis. (Rs.) Date Particulars L/F Cash (Rs.) Bank (Rs.) Dis. (Rs.)
Jan 1 To Balance b/q 50,000 100,000 Jan 10 By Creditor A/c 4,600 400
5 To Debtor A/c 19,000 1,000 15 By Purchase A/c 25,000 19,000 1000
28 To Cash A/c 'c' 20,000 28 By Bank A/c 'c' 20,000
29 By Salary A/c 5,000
By Office rent A/c 2,500
31 By Balance c/d 14,400 98,500
59,000 120,000 1,000 59,000 120,000 1,400
Feb 1 To Balance b/d 14,400 98,500
SQ-17. ___ Following cash and banking transactions are given:
November 1 : Cash in hand Rs.40,000 and cash at Bank Rs.60,000
November 2 : Purchased goods for Rs.15,000 and paid Rs.9,000 through cheque and the balance amount is paid in
cash after receiving discount of Rs.500
November 11 : Sold goods for Rs. 25,000 to Mr. Hari by receiving partial payment of Rs. 10,000 in cash.
November 12 : Received a cheque of Rs. 14,500 from Mr. Hari in full settlement of his account
November 12 : Cheque received from Mr. Hari endorsed to Mr. Ajay.
November 15 : Sold goods on cash for Rs. 5,000
November 26 : Withdrew cash from bank Rs.5,000 of office use
Required: Triple column cash book
Solution,
Triple column cash book with cash, bank and discount column
Date Particulars L/F Cash (Rs.) Bank (Rs.) Dis. (Rs.) Date Particulars L/F Cash (Rs.) Bank (Rs.) Dis. (Rs.)
Nov.1 To Balance b/d 40,000 60,000 Nov 2 By Purchase A/c 5,500 9,000 500
11 To Sales A/c 10,000 12 By Ajay A/c 14,500
12 To Hari A/c 14,500 500 0
15 To Sales A/c 5,000 26 By Cash A/c 'c' 5,000
26 To Bank A/c 'c' 5,000 30 By Balance c/d 46,000
54,500
60,000 74,500 500 60,000 74,500 500
Dec. 1 To Balance b/d 54,500 46,000
SQ-18.____ Following information are given to you.
Jan. 1 Opened petty cash fund Rs.800 Jan. 2 Paid for carriage Rs.80
Jan 8 Paid for coolie Rs.90 Jan 12 Paid for cartage Rs.120
Jan 16 Paid for bus fair Rs.70 Jan 21 Paid for refreshment Rs.50.
Required: Simple and analytical petty cash book
Solution:
Simple petty cash book (in Rs)
Dr.Cr. Date Particular Slip no. Amount Date Particulars Slip no. Amount
Jan 1 To cash a/c 800 Jan 2 By carriage 80
Jan 8 By coolie 90
Jan 12 By cartage 120
Jan 16 By bus fair 50
Jan 21 By refreshment 70
Jan 31 By balance c/d 390
800 800
Feb 1 To balance b/d 390
Feb 1 To cash* 410
Dr Analytical petty cash book Cr
Amount Refreshment
800 Date Particulars Slip no. Total Carriage Coolie Cartage Bus fare -
Jan 1 To Cash - -- - - - -
Jan 2 By carriage - 80 80 - - - -
Jan 8 By coolie - 90 - 90 - - -
Jan12 By Cartage - 120 - - 120 50 -
Jan 16 By Bus fare - 50 - - - - 70
Jan 21 By Refreshment - 70 - - - 50 70
Total - 410 80 90 120 - -
Jan 31 By Bal. c/d - 390 - - -
800 To bal.bld -- 800
390 Feb 1 To cash -
410 Feb 1 -
Cash and Banking Transactions CHAPTER 7 67
LONG ANSWER QUESTIONS
Double Column Cash Book
LQ-1._____ Enter the following transactions into a cash book with cash and discount columns.
i. Started business with cash Rs. 90,000.
ii. Received cash in advance Rs. 5,000 from Badri.
iii. Purchased office equipment for Rs.10,000.
iv. Bought goods worth Rs.16,000 on 5% trade discount from Ram on credit.
v. Sold goods to Badri for Rs.7,000 and cash received adjusting his advance of Rs.5,000.
vi. Paid office expenses Rs. 2,000.
vii. Interest received on deposited by the bank Rs.350.
viii. Office rent Rs.5,000 and salary Rs.6,000 were paid.
ix. Sold goods to Binod Rs.4,000 and received in cash.
x. Sold goods on credit Rs.7,800 to Keshar at 8% trade discount
xi. Payment made to Ram Rs 15000 in full settlement.
xii. Received from Keshar Rs. 7000 in full settlement of his debt.
Solution,
Dr. Cash book with cash and discount columns Cr.
Date Particulars L.F. Cash Discount Date Particulars L.F. Cash Discount
By Office equipment A/c
i. To Capital A/c 90,000 iii. By Office expenses A/c 10,000
ii. To Badri A/c 5,000 vi. By Office rent A/c 2,000
v. To Sales A/c 2,000 viii. By Salary A/c 5,000
vii. To Interest A/c 350 viii. By Ram A/c 6,000
ix. To Sales A/c 4,000 xi. By Balance c/d 15,000 200
ix. To Keshar A/c 7,000 176 End of Month 70,350
108,350 176 108,350 200
70,350
beginning of month To Balance c/d
LQ-2._____ The following financial transactions of Mr. Sujeet for the month of February are provided to you:
February 1 : Opening bank balance Rs.75,000
February 4 : Purchased goods from Manish for Rs.25,000 by making partial payment of Rs.10,000 through cheque
February 10 : Cash Rs. 5,000 withdrew from bank for office purpose
February 15 : Sold goods to Mr Ranjit for Rs.45,000 by receiving partial payment of Rs. 25,000
February 20 : Paid to a creditor Rs. 12,000 through cheque
February 25 : Paid Rs. 14,000 to Mr. Manish in full settlement of his account
February 27 : Received Rs. 19,000 from Mr. Ranjit in full settlement of his account
February 28 : Paid staffs salary Rs. 5,000 and office rent Rs. 2,000
Required: Cash book with bank and discount columns (All transation are done through cheque)
Solution,
Double column cash book with bank and discount column
Date Particulars L/F Dis. Rs. Bank Rs. Date Particulars L/F Dis. Rs. Bank.Rs.
10,000
Feb 1 To Balance b/d 75,000 Feb 4 By Purchase A/c 5,000
12,000
15 To Sales A/c 25,000 10 By Cash A/c 14,000
5,000
27 To Mr. Ranjit 1,000 19,000 20 By Creditors A/c 2,000
71,000
25 By Mr. Manish A/c 1,000 119,000
28 By Salary A/c
By Office rent A/c
31 By Balance c/d
1,000 119,000 1,000
March 1 To balance b/d 71,000
LQ-3._____ The following financial transactions of Mr. Amit for the month of Asadh are provided to you:
Asadh 1 : Opening Cash balance Rs. 25,000 and bank balance Rs.75,000
Asadh 5 : Purchased goods from Manjeet for Rs.25,000 by making cheque payment
Asadh 9 : Cash Rs. 4,000 withdrew from bank for office purpose
Asadh 12 : Sold goods to Mr Rohit for Rs.25,000 by receiving partial payment of Rs. 15,000
Asadh 23 : Paid to a creditor Rs. 10,000 through cheque
Asadh 27 : Withdrew from bank for personal use Rs. 2,000
Asadh 28 : Received Rs. 9,400 from Mr. Rohit in full settlement of his account
Asadh 29 : Cash deposited into bank Rs. 10,000
Asadh 30 : Paid staffs salary Rs. 5,000 by cheque
Required: Cash book with cash and bank columns
68 Accounting-XI
Solution, Double column cash book with cash and bank column
Date Particulars L/F Cash (Rs.) Bank (Rs.) Date Particulars L/F Cash (Rs.) Bank (Rs.)
Asadh 1 To Balance b/d
25,000 75,000 Asadh 5 By Purchase A/c 'C' 25,000
9 To Bank A/c 'C' 4,000
12 To Sales A/c 9 By Cash A/c 4,000
28 To Rohit A/c
29 To Cash A/c 15,000 23 By Creditors A/c 10,000
9,400 27 By Drawings A/c 2,000
10,000 29 By Bank A/c 10,000
30 By Salary A/c 5,000
31 By Balance c/d 43,400 39,000
53,400 85,000 53,400 85,000
43,400 39,000
LQ-4._____ The following financial transactions of M/S Saroj Enterprises for the month of March are provided to you:
March 1 : Opening Cash balance Rs. 25,000 and bank balance( credit) Rs.50,000
March 7 : Purchased goods from Sujan Trading House for Rs.30,500 by making partial payment Rs.10,500 by cheque.
March 11 : Cash deposited into bank Rs 25,000.
March 18 : Sold goods to Mr Suresh for Rs.25,500 by receiving partial payment of Rs. 5,500
March 27 : Withdrew from bank for office use Rs. 5,000
March 28 : Received Rs. 19,400 from Mr. Suresh in full settlement of his account
March 29 : Cash received from Mr. Suresh deposited into bank
March 31 : Paid office rent Rs. 4,000
Required: Cash book with cash and bank columns
Solution,
Cash book with cash and bank column
Date Particulars L/F Cash (Rs.) Bank (Rs.) Date Particulars L/F Cash (Rs.) Bank (Rs.)
March 1 To Balance b/d 'c' 25,000 March 1 By Balance b/d 'c' 25,000 50,000
11 To Cash A/c 'c' 25,000 7 By Purchase A/c 'c' 10,500
18 To Sales A/c 'c' 5,500 By Bank A/c 'c' 19,400
27 To Bank A/c 5,000 11 By Cash A/c 4,000 5,000
28 To Suresh A/c 19,400 27 By Bank A/c
29 To Cash A/c 29 By Rent A/c
19,400 31
31 To Balance c/d 21,100 31 By Balance c/d 6,500
54,900 65,500 54,900 65,500
April 1 6500 April 1 By Balance b/d 21,100
Triple Column Cash Book
LQ-5._____ The following transactions are given:
January 1 : Cash in hand Rs.35,000 and cash at Bank Rs.100,000
January 5 : Received cash Rs.19,000 from the debtors after deducting discount at 5%.
January 10 : Paid cash Rs.4,600 in full settlement of Rs.5,000 by cheque.
January 15 : Purchased goods for Rs.45,000 and paid Rs.25,000 in cash. The balance amount is paid through cheque
after receiving discount of Rs. 1,000
January 28 : Cash deposited into bank Rs.20,000
January 29 : Paid Staff salary Rs. 5,000 in cash and office rent Rs. 2,500 by cheque.
Required: Triple column cash book
Solution,
Triple column cash book with cash, discount and bank column
Date Particulars L/F Cash (Rs.) Bank (Rs.) Dis. (Rs.) Date Particulars L/F Cash (Rs.) Bank (Rs.) Dis. (Rs.)
Jan 1 To Balance b/d By Creditors
5 To Debtors A/c 35,000 100,000 Jan 10 By Purchase A/c 4,600 0 400
28 To Cash A/c By Bank A/c
19,000 1,000 15 By Salary A/c 25,000 19,000 1,000
Feb 1 To Balance c/d 'c' By Office rent A/c 'c' 20,000
20,000 28 By Balance c/d 0
To Balance b/d
29 To Balance b/d 5,000 0
2,500
600 31 98,500
54,600
120,000 1,000 54,600 120,000 1400
93,900 Feb 1
600
LQ-6._____ The following transactions are given to you.
June 1 Cash in hand Rs.8,000, stock in hand Rs.20,000
June 2 Sold goods and received cash Rs.22,000, discount allowed Rs.1,500
June 3 Paid rent of previous month Rs.3,000
June 4 Opened bank account in Everest Bank Limited and deposited Rs.20,000
June 6 Purchased goods worth Rs.8,000, payment made equally in cash & by cheque after deducting 5% discount
June 6 Withdrew cash Rs.4,000, of which Rs.1,000 was for personal use from bank
June 7 Interest on investment received Rs.1,200
June 7 Received a bearer cheque from Bikash, a debtor of Rs.5,500
June 8 Cheque received from Bikash deposited into Bank
Required: Journal entries and suitable cash book
Cash and Banking Transactions CHAPTER 7 69
Solution, Triple column cash book Payments
Receipts LF Cash Bank Discount Date Particulars LF Cash Bank Discount
Date Particulars 8,000 6-3 By Outstanding rent 3,000
6-1 To Balance b/d 22,000 1,500 6-4 By Bank c 20,000
6-2 To Sales c 20,000 6-6 By Purchase 3,800 3,800 400
6-4 To Cash c 3,000 6-6 By Cash c 3,000
6-6 To Bank 1,200 6-6 By Drawing 1,000
6-7 To Interest on inv. 5,500 6-8 By Bank 5,500
6-7 To Bikash c 5,500 6-31 By Balance c/d 7,400 17,700
6-8 To Cash
39,700 25,500 1,500 Total 39,700 25,500 400
Total
7-1 To Balance b/d 7,400 17,700
LQ-7. ____ The following information of a company is given.
Ashad 1: Commenced business with Rs. 400,000 cash received on issuing shares of Rs. 100 each.
Ashad 3: Rs. 150,000 were deposited into Nabil Bank.
Ashad 8: Purchased machinery for Rs. 120,000 and payment made by cheque.
Ashad 10: Purchased goods from Tata group for Rs. 120,000 and made partial payment of Rs. 100,000.
Adhad 12: Sold goods to Mr. Sharma for Rs. 600,000 and received a cheque of Rs. 300,000 as partial payment.
Ashad 16: Loans of Rs. 150,000 were obtained from NMB bank on which interest payable is 10% p.a.
Ashad 18: Salary of Rs. 39,000 were paid.
Adhad 20: Rs. 60,000 were paid as wage.
Adhad 23: Rs. 280,000 cash received from Mr. Sharma in full settlement of his account.
Ashad 25: Rs. 18,000 cash paid to Tata Group in full settlement of their account.
Ashad 29: Paid Rs. 20,000 as rent @ Rs. 2,000 per month
Ashad 31: Advertisement expenses of Rs. 12,000 were paid.
Required: Journal, Ledger, Suitable Cash Book,
Solution,
Journal Entries
Date Particulars LF Debit Rs. Credit Rs.
Ashad 1 Cash a/c .................................................................................................................................Dr. 400,000 400,000
Ashad 3 To Capital a/c 150,000 150,000
Ashad 8 120,000 120,000
Ashad 10 (Being Business started) 120,000 100,000
Bank a/c .................................................................................................................................Dr. 20,000
Ashad 12 300,000
To Cash a/c 300,000 600,000
Ashad 16 (Being Cash deposited into bank) 150,000 150,000
Ashad 18 Machinery a/c.........................................................................................................................Dr. 39,000 39,000
Ashad 20 60,000 60,000
Ashad 23 To Bank a/c 280,000
(Being Purchased machinery) 20,000 300,000
Ashad 25 Purchase a/c ..........................................................................................................................Dr. 20,000 118,000
Ashad 29 To Cash a/c 2,000 2,000
To Tata group a/c 18,000
Ashad 31 (Being Purchased goods) 12,000 20,000
Bank a/c .................................................................................................................................Dr. 12,000
Sharma a/c.............................................................................................................................Dr.
To Sales revenue a/c
(Being Goods sold)
Bank a/c .................................................................................................................................Dr.
To 10% bank loan a/c
(Being Bank loan taken)
Salary expenses a/c...............................................................................................................Dr.
To Cash a/c
(Being Salary paid)
Wages expenses a/c..............................................................................................................Dr.
To Cash a/c
(Being Wages paid)
Cash a/c .................................................................................................................................Dr.
Discount allowed a/c
To Sharma a/c
(Being Cash received from Sharma)
Tata group a/c........................................................................................................................Dr.
To Cash a/c
To Discount received a/c
(Being Cash paid to Tata group)
Rent expenses a/c .................................................................................................................Dr.
Prepaid rent expenses a/c .....................................................................................................Dr.
To Cash a/c
(Being Rent paid)
Advertisement expenses a/c..................................................................................................Dr.
To Cash a/c
(Being Paid advertisement expenses)
70 Accounting-XI
b. Dr. Triple Column Cash Book Cr.
Date Particulars LF Cash Bank Discount Date Particulars LF Cash Bank Discount
1 To Capital a/c
3 To Cash a/c 400,000 3 By Bank a/c 150,000
12 To Sales revenue a/c (c) 150,000 8 By Machinery a/c 120,000
16 To 10% bank loan a/c 300,000 10 By Purchase a/c 100,000
23 To Sharma a/c 150,000 18 By Salary exp. a/c 39,000
280,000 20,000 20 By Wages exp. a/c 60,000
25 By Tara group a/c 18,000 2,000
29 By Rent exp. a/c 2,000
31 By Prepaid rent exp. 18,000
By Advertisement a/c 12,000
By Balance c/d 581,000 180,000
980,000 300,000 20,000 980,000 300,000 2,000
To Balance b/d 581,000 180,000
c. Ledger Accounts
Dr. Sales Revenue Account Cr.
Date Particulars JF Amount Date Particulars JF Amount
Ash. 31
To Balance c/d.............................................................6..0..0..,.0..0..0. Ash. 12 By Sharma a/c.....................................................................3..0..0..,.0..0..0......................................................
Ash.12 By Bank a/c .........................................................................3..0..0..,.0..0..0......................................................
600,000 600,000
Shr. 1 By Balance b/d ....................................................................6..0..0..,.0..0..0......................................................
Dr. Purchase Account Cr.
JF Amount
Date Particulars JF Amount Date Particulars
Ash. 10 120,000
To Cash a/c .................................................................1..0..0..,.0..0..0. Ash. 31 By Balance c/d
To Tata Group ...............................................................2..0..,.0..0..0. 120,000
120,000
Shr. 1 To Balance b/d ............................................................1..2..0..,.0..0..0..............................................................
Dr. Debtors Account Cr.
Date Particulars JF Amount Date Particulars JF Amount
Ash. 12
To Sharma a/c .............................................................3..0..0..,.0..0..0. Ash. 23 By Cash a/c.........................................................................2..8..0..,.0..0..0......................................................
By Discount received a/c ......................................................2..0..,.0..0..0......................................................
300,000 300,000
Dr. Creditors Account Cr.
Date Particulars JF Amount Date Particulars JF Amount
Ash. 25
To Cash a/c ...................................................................1..8..,.0..0..0. Ash. 10 By Purchase a/c....................................................................2..0..,.0..0...0.....................................................
To Discount allowed a/c ..................................................2..,.0..0..0.
20,000 20,000
VERY SHORT ANSWER QUESTIONS
VQ-1._____ The following balance of ledger accounts in the book of Mr. Amit is provided to you:
Opening Stock............................................................................................2..4..,.5..0..0......F..r..e..ig..h..t............................................................................ 5,000
Purchases.................................................................................................2..6..5..,.0..0..0......W....a..g..e..s............................................................................ 12,000
Return outwards ...........................................................................................4..,.5..0..0......P...r.o..d..u..c..t.iv..e...w...a..g..e..s..................................................................................4..,.5...0..0......................................................
Carriage on sales ......................................................................................1..2..,.6..0..0......S...a..le..s..................................................................................................3..5..9...,1...0..0......................................................
Salary 50,000 Interest received ...............................................................................1..0..,.0..0...0......................................................
Required: Trial balance
Solution,
Trial balance
For the year ended..............
Particulars LF Debit (Rs.) Credit (Rs.)
---
Opening Stock......................................................................................................................................................................................2..4..,.5..0..0.. ---
Purchases...........................................................................................................................................................................................2..6..5..,.0..0..0.. 4,500
---
Return outwards ...........................................................................................................................................................................................-.-.-. ---
---
Carriage on purchase...........................................................................................................................................................................1..2..,.6..0..0.. ---
Salary .................................................................................................................................................................................................5..0..,.0..0..0.. 359,100
10,000
Freight ...................................................................................................................................................................................................5..,.0..0..0.. 373,600
Wages .................................................................................................................................................................................................1..2..,.0..0..0..
Productive wages ...................................................................................................................................................................................4..,.5..0..0..
Sales .........................................................................................................................................................................................................-.-.-.
Interest received...........................................................................................................................................................................................-.-.-.
Total 373,600
VQ-2._____ The following balance of ledge accounts in the book of Arun is provided to you:
Opening Stock............................................................................................5..5..,.0..0...0.....D...i.s.c..o..u..n..t..r..e..c.e...iv..e..d..................................................................................5..,.6...0..0......................................................
Purchases.................................................................................................5..6..9...,0...0..0.....C...o..m...m...i.s..s.i.o..n...r..e..c.e..i.v..e..d..........................................................................1..2..,.4..0...0......................................................
Motive power ..............................................................................................1..2..,.6..0...0.....W....a..g..e..s...a..n..d...s..a..la...r.y...............................................................................2..9..,.0..0...0......................................................
Coal and oil, gas.........................................................................................1..5..,.4..0...0.....S...a..le..s..................................................................................................7..1..5...,5...0..0......................................................
Salesman salary.........................................................................................1..5..,.7..0...0.....S...a..le..s..m...a..n...c..o..m...m...i.s..s..i.o..n..........................................................................5..,.0...0..0......................................................
Rent of warehouse .....................................................................................2..4..,.3..0...0.....T..e..l.e..p..h..o..n..e...e...x.p..e..n..s..e..s.............................................................................7..,.5...0..0......................................................
Required: Trial balance
Solution,
Trial balance
For the year ended..............
Particulars LF Debit (Rs.) Credit (Rs.)
Opening Stock......................................................................................................................................................................................5..5..,.0..0..0.. --
--
Purchases...........................................................................................................................................................................................5..6..9..,.0..0..0.. --
--
Motive power ........................................................................................................................................................................................1..2..,.6..0..0.. --
--
Coal and oil, gas...................................................................................................................................................................................1..5..,.4..0..0.. 5,600
12,400
Salesman salary...................................................................................................................................................................................1..5..,.7..0..0.. --
715,500
Rent of warehouse ...............................................................................................................................................................................2..4..,.3..0..0.. --
--
Discount received.........................................................................................................................................................................................-.-.-.
733,500
Commission received...................................................................................................................................................................................-.-.-.
Wages and salary.................................................................................................................................................................................2..9..,.0..0..0..
Sales ...........................................................................................................................................................................................................-.-.-.
Salesman commission ...........................................................................................................................................................................5..,.0..0..0..
Telephone expenses..............................................................................................................................................................................7..,.5..0..0..
Total 733,500
72 Accounting-XI
SHORT ANSWER QUESTIONS
SQ-1. ____ The following balance of ledge accounts in the book of Ashim is provided to you:
Opening Stock .............................................................................................4..5..,.0..0..0.......I.n..t.e..r.e..s..t..o..n...l.o..a..n..s................................................................................2..0..,.0..0...0......................................................
Purchases..................................................................................................5..6..0..,.0..0..0......D..i.s..c..o..u..n..t..r.e..c..e..i.v..e..d.................................................................................4..,.5...0..0......................................................
Salaries ........................................................................................................6..0..,.0..0..0......B..a..n..k...l.o..a..n..........................................................................................2..5..0...,0...0..0......................................................
Rent, rates and tax ......................................................................................1..2..,.5..0..0......S..u..n..d..r.y...C...r.e..d..i.t.o..r.s.................................................................................5..0..,.0..0...0......................................................
Printing and stationary...................................................................................4..,.5..0..0......W...a..g..e..s...a..n..d...s..a..l.a..r.y...............................................................................7..5..,.0..0...0......................................................
Plant and machinery .................................................................................2..5..0..,.0..0..0......S..a..l.e..s................................................................................................7..,.5..6..,.2..0...0......................................................
Postage and telegram ...................................................................................2..,.5..0..0......S..a..l.e..s..m...a..n...c..o..m...m...i.s..s.i.o..n..........................................................................7..,.5...0..0......................................................
Sundry debtors ...........................................................................................4..5..,.0..0..0......T..e..l.e..p..h..o..n..e...e..x..p..e..n..s..e..s............................................................................4..,.6...0..0......................................................
Audit fees.......................................................................................................5..,.0..0..0......L..e..g..a..l..c.h..a...r.g..e..s.......................................................................................3..,.6...0..0......................................................
Rent received...............................................................................................1..5..,.0..0..0......E..l.e..c..t.r.i.c..it.y...c..h..a..r.g..e...s................................................................................2..,.5...0..0......................................................
Dividend received ........................................................................................1..2..,.0..0..0......P..r.o..f.i.t..o..n...s..a..l.e...o..f..f.i.x..e..d...a..s..s..e..t.s..............................................................1..0..,.0..0...0......................................................
Required: Trial balance
Solution, Trial balance
For the year ended..............
Particulars LF Debit (Rs.) Credit (Rs.)
Opening Stock ......................................................................................................................................................................................4..5..,.0..0..0.. --
Purchases..........................................................................................................................................................................................5..,.6..0..,.0..0..0.. --
Salaries .................................................................................................................................................................................................6..0..,.0..0..0.. --
Rent, rates and tax ...............................................................................................................................................................................1..2..,.5..0..0.. --
Printing and stationary............................................................................................................................................................................4..,.5..0..0.. --
Plant and machinery .........................................................................................................................................................................2..,.5..0..,.0..0..0.. --
Postage and telegram ............................................................................................................................................................................2..,.5..0..0.. --
Sundry debtors ....................................................................................................................................................................................4..5..,.0..0..0.. --
Audit fees................................................................................................................................................................................................5..,.0..0..0.. --
Rent received.................................................................................................................................................................................................-.-.
Dividend received ..........................................................................................................................................................................................-.-. 15,000
Interest on loans ...................................................................................................................................................................................2..0..,.0..0..0.. 12,000
Discount received .........................................................................................................................................................................................-.-.
Bank loan.......................................................................................................................................................................................................-.-. --
Sundry Creditors ...........................................................................................................................................................................................-.-. 4,500
Wages and salary.................................................................................................................................................................................7..5..,.0..0..0.. 2,50,000
Sales ..........................................................................................................................................................................................................-.-. 50,000
Salesman commission............................................................................................................................................................................7..,.5..0..0..
Telephone expenses .............................................................................................................................................................................4..,.6..0..0.. --
Legal charges .........................................................................................................................................................................................3..,.6..0..0.. 7,56,200
Electricity charges .................................................................................................................................................................................2..,.5..0..0..
Profit on sale of fixed assets ......................................................................................................................................................................._.._.. --
Total 10,97,700 --
--
--
10,000
1,097,700
SQ-2._____ The following balance of ledge accounts in the book of Abhisekth is provided to you:
Printing and stationary...................................................................................1..,.5..0..0......B..a..n..k...l.o..a..n..........................................................................................1..5..0...,0...0..0......................................................
Telephone charge..........................................................................................3..,.5..0..0......L..o..s..s..o..n...s..a..l.e...o..f..p..l.a..n..t............................................................................5..,.0...0..0......................................................
Investment ..................................................................................................5..0..,.0..0..0......W...a..g..e..s............................................................................ 4,000
Insurance .......................................................................................................4..,.0..0..0......S..a..l.e..s................................................................................................5..,.8..4..,.7..0...0......................................................
Legal charges ................................................................................................5..,.0..0..0......P..u..r.c..h..a..s..e..s........................................................................................4..,.5..6..,.2..0...0......................................................
Electricity charges .........................................................................................6..,.5..0..0......S..a..l.a..r.i.e..s...............................................................................................2..5..,.0..0...0......................................................
Repairs and renewals....................................................................................5..,.0..0..0......R..e..n..t..o..f..w...a..r.e..h..o..u...s.e..............................................................................1..2..,.0..0...0......................................................
Sundry debtors ...........................................................................................7..5..,.0..0..0......B..i.l.ls...p..a..y..a..b..l.e........................................................................................2..5..,.0..0...0......................................................
Salesman commission...................................................................................7..,.0..0..0......P..l.a..n..t..a..n..d...m...a..c..h..i.n..e..r.y.........................................................................1..0..0...,0...0..0......................................................
Required: Trial balance
Solution, Trial balance
For the year ended..............
Particulars LF Debit (Rs.) Credit (Rs.)
Printing and stationary............................................................................................................................................................................1..,.5..0..0.. --
Telephone charge...................................................................................................................................................................................3..,.5..0..0.. --
Investment ...........................................................................................................................................................................................5..0..,.0..0..0.. --
Insurance ................................................................................................................................................................................................4..,.0..0..0.. --
Legal charges .........................................................................................................................................................................................5..,.0..0..0.. --
Electricity charges ..................................................................................................................................................................................6..,.5..0..0.. --
Repairs and renewals.............................................................................................................................................................................5..,.0..0..0.. --
Sundry debtors ....................................................................................................................................................................................7..5..,.0..0..0.. --
Salesman commission............................................................................................................................................................................7..,.0..0..0.. --
Bank loan ......................................................................................................................................................................................................-.-.
Loss on sale of plant...............................................................................................................................................................................5..,.0..0..0.. 1,50,000
Wages ...................................................................................................................................................................................................4..,.0..0..0.. --
Sales ..........................................................................................................................................................................................................-.-. --
Purchases..........................................................................................................................................................................................4..,.5..6..,.2..0..0..
Salaries .................................................................................................................................................................................................2..5..,.0..0..0.. 5,84,700
Rent of warehouse ...............................................................................................................................................................................1..2..,.0..0..0.. --
Bills payable ..................................................................................................................................................................................................-.-. --
Plant and machinery...........................................................................................................................................................................1..0..0..,.0..0..0.. --
Total 7,59,700
25,000
---
7,59,700
Trial Balance CHAPTER 8 73
SQ- 3. ____ The following Balances prepare Trial Balance for the year ended 31st Dec. 2017.
Purchases..................................................................................................1..7..0..,.0..0..0.......D..r..a..w..i.n..g...............................................................................................7..,.7...0..0......................................................
Opening stock ............................................................................................2..4..,.0..0..0.......R..e...t.u..r.n...i.n..w..a..r..d.....................................................................................3..,.5...0..0......................................................
Sales ........................................................................................................1..,.0..5..,.0..0..0.......P..r..e..m...is..e..s........................................................................................5..,.2..8..,.0..0...0......................................................
Sundry debtors ...........................................................................................2..3..,.8..0..0.......S..u..n..d..r..y..c..r..e..d..it.o..r..s...............................................................................1..6..,.1..0...0......................................................
Discount received .......................................................................................3..,.5..0..0.......D..i.s..c..o..u..n..t..a..l.l.o..w..e..d..................................................................................2..8...0..0......................................................
Carriage outwards ...........................................................................................7..0..0.......C..a...r.r.i.a..g..e...i.n..w..a..r..d..s.................................................................................1..4...0..0......................................................
Cash in hand .................................................................................................3..5..0..0.......C..a...s.h...a..t..B...a..n..k....................................................................................1..7..,.5..0...0......................................................
Machinery .................................................................................................1..2..4..,.5..0..0.......G...e..n..e..r.a..l..e..x..p..e..n..s..e..s..............................................................................2..,.1...0..0......................................................
Provision for depreciation on machinery ..................................................2..4..,.2..0..0.......B..a..d...d..e..b...t.s..w...r.i.t.t.e..n...o..f.f..........................................................................2..,.4..5..0.......................................................
Capital 760,770 Provision for doubtful debts..............................................................2..,.3..8..0.......................................................
Required: Trial balance
Solution,
Trial Balance
As on 31st December 2017
Heads of Accounts LF Debit (Rs.) Credit (Rs.)
–
Purchases ...............................................................................................................................................................................................1..7..0..,.0. 00 –
Opening stock ...........................................................................................................................................................................................2..4..,.0. 00
Sales ............................................................................................................................................................................................................... – 1,05,000
Sundry debtors .........................................................................................................................................................................................2..3..,.8. 00 -
Discount received ........................................................................................................................................................................................... -
Carriage outwards .........................................................................................................................................................................................7. 00 3,500
Cash in hand ..............................................................................................................................................................................................3..,.5. 00 –
Machinery ..............................................................................................................................................................................................1..2..4..,.5. 00 –
Provision for depreciation ............................................................................................................................................................................... – –
Drawings .....................................................................................................................................................................................................7..,.7. 00
Returns inwards ..........................................................................................................................................................................................3..,.5. 00 24,200
Premises ................................................................................................................................................................................................5..,.2..8..,.0. 00 –
Sundry creditors .............................................................................................................................................................................................. – –
Discount Allowed ........................................................................................................................................................................................2..,.8. 00 –
Carriage inwards ........................................................................................................................................................................................1..,.4. 00
Cash at bank .............................................................................................................................................................................................1..7..,.5. 00 16,100
General expenses ......................................................................................................................................................................................2..,.1. 00
Bad debts written off ...................................................................................................................................................................................2..,.4. 50 2,380
Provision for doubtful debts ............................................................................................................................................................................ – 7,60,770
Capital ............................................................................................................................................................................................................. – 911,950
Total 911,950
SQ-4. ____ The following balances are extracts from the books of Ram and Co. the year ending 2073-3-31
Capital ........................................................................................................1..5..,.0..0..0......C..r..e..d..i.t.o..r.s............................................................................................1..2...0..,0...0..0......................................................
Purchase ....................................................................................................1..5..,.0..0..0......B..a..d...d..e..b...t.s..w...r.i.t.t.e..n...o..f.f................................................................................7...0..0......................................................
Salaries ........................................................................................................5..,.0..0..0......D..r..a..w..i.n..g..................................................................................................2..,.4...0..0......................................................
Sales ..........................................................................................................3..0..,.1..0..0......I.n..s..u..r.a..n..c..e...............................................................................................1..,.2...0..0......................................................
Outstanding expenses ................................................................................2..,.0..0..0......O...p..e..n..i.n..g...s..t.o..c.k........................................................................................5..,.0...0..0......................................................
Provision for bad debts ...................................................................................8..0..0......D..e...b..t.o..r.s................................................................................................2..5..,.0..0...0......................................................
Printing and stationery ...................................................................................8..0..0......I.n..t.e..r.e..s..t..e..a..r.n..e..d..........................................................................................4...0..0......................................................
Office expenses ...........................................................................................1..,.5..0..0......P..u..r..c.h..a..s..e...r..e..t.u..r.n........................................................................................5...0..0......................................................
Furniture and fitting ......................................................................................2..,.5..0..0......W...a..g..e..s....................................................................................................2..,.0...0..0......................................................
Rent ................................................................................................................5..0..0......P..r..o..v.i.s..i.o..n...f.o..r..d..e..p..r..e..c.i.a..t.i.o..n.........................................................................4...0..0......................................................
Sales return ....................................................................................................5..0..0............................................................................................
Required: Trial balance
Solution,
Trail Balance
Heads of Accounts LF Debit (Rs.) Credit (Rs.)
15,000
Purchase....................................................................................................................................................................................................1..5..,.0. 00
Salaries .......................................................................................................................................................................................................5..,.0. 00
Office expenses ..........................................................................................................................................................................................1..,.5. 00
Rent ................................................................................................................................................................................................................5. 00
Sales return ...................................................................................................................................................................................................5. 00
Printing and stationary ..................................................................................................................................................................................8. 00
Furniture and fitting ....................................................................................................................................................................................2..,.5. 00
Bad debts written off ......................................................................................................................................................................................7. 00
Insurance .....................................................................................................................................................................................................1..2. 00
Opening stock .............................................................................................................................................................................................5..,.0. 00
Debtors .....................................................................................................................................................................................................2..5..,.0. 00
Wages .........................................................................................................................................................................................................2..,.0. 00
Drawing .......................................................................................................................................................................................................2..,.4. 00
Capital..............................................................................................................................................................................................................
74 Accounting-XI
Sales ............................................................................................................................................................................................................... 30,100
Outstanding expenses ................................................................................................................................................................................... 2,000
Creditors ......................................................................................................................................................................................................... 12,000
Interest earned ................................................................................................................................................................................................
Purchased return ........................................................................................................................................................................................... 400
Provision for depreciation ............................................................................................................................................................................... 500
Provision for Bad debts ................................................................................................................................................................................... 400
Suspense A/c................................................................................................................................................................................................... 800
900
62,100 62,100
SQ-5._____ Consider the following ledger accounts:
Dr. Capital account Cr.
Date Particulars JF Amount Rs. Date Particulars JF Amount Rs.
1-31
To Balance c/d.........................................................5..0..,.0..0..0.....1..-..1.......................B..y...C..a..s..h...A.../.C.......................................................................5..0...,0..0...0......................................................
50,000 50,000
2-1 By Balance b/d.................................................................5..0..,.0..0...0......................................................
Dr. Purchase account Cr.
Date
1-5 Particulars JF Amount Rs. Date Particulars JF Amount Rs.
2-1 To Cash A/C ............................................................1..0..,.0..0..0.....1..-..3..1.....................B..y...B..a..l.a..n..c..e...c../.d...................................................................1..0..,.0..0...0......................................................
10,000 10,000
To Balance b/d 10,000
Dr. Cash account Cr.
Date
1-2 Particulars JF Amount Rs. Date Particulars JF Amount Rs.
1-8
To Capital A/C .........................................................5..0..,.0..0..0.....1..-..5.......................B..y...P..u..r.c..h..a..s..e...A.../.C................................................................1..0...,0..0...0......................................................
2-1 To Sales A/C............................................................1..2..,.0..0..0.....1..-..2..8.....................B..y...S..a..l.a..r.i.e..s...A../.C.....................................................................2..,.0...0..0......................................................
1-29 By Drawing A/C..................................................................5..,.0...0..0......................................................
1-31 By Balance b/d.................................................................4..5..,.0..0...0......................................................
62,000 62,000
To Balance b/d 45,000
Dr. Sales account Cr.
Date Particulars JF Amount Rs. Date Particulars JF Amount Rs.
1-31 To Balance c/d By cash A/C 12,000
12,000 1-8 12,000
By balance b/d 12,000
12,000
2-1
Dr. Salaries account Cr.
Date
1-28 Particulars JF Amount Rs. Date Particulars JF Amount Rs.
2-1 To Cash A/C ..............................................................2..,.0..0..0.....1..-..3..1.....................B..y...B..a..l.a..n..c..e...c../.d.....................................................................2..,.0...0..0......................................................
2,000 2,000
To Balance b/d...........................................................2..,.0..0..0..............................................................................................................................
Dr. Drawing account Cr.
Date
1-29 Particulars JF Amount Rs. Date Particulars JF Amount Rs.
To Cash A/C 5,000
2-1 5,000 1-31 By Balance c/d 5,000
To Balance b/d
5,000
5,000
Required: a. Trial balance using balance method b. Trial balance using total method
Solution
a. Trial balance under balance method
Trial balance of ………..
S.N Name of Account LF Debit (Rs.) Credit (Rs.)
1 Cash account ...........................................................................................................................................................................4..5..,.0..0..0.............. -
2 Capital account ..................................................................................................................................................................................-............. 50,000
3 Purchase account ....................................................................................................................................................................1..0..,.0..0..0.............. -
4 Sales account.....................................................................................................................................................................................-............. 12,000
5 Salaries account.........................................................................................................................................................................2..,.0..0..0.............. -
6 Drawing account ........................................................................................................................................................................5..,.0..0..0.............. -
Total 62,000 62,000
b. Trial balance under Total method
Trial balance of…………….
S.No.
1 Name of Account LF Debit (Rs.) Credit (Rs.)
2
3 Cash account ...........................................................................................................................................................................6..2..,.0..0..0.............. 17,000
4 Capital account...................................................................................................................................................................................-............. 50,000
5 Purchase account.....................................................................................................................................................................1..0..,.0..0..0.............. -
6 Sales account.....................................................................................................................................................................................-............. 12,000
Salaries account.........................................................................................................................................................................2..,.0..0..0.............. -
Drawing account.........................................................................................................................................................................5..,.0..0..0.............. -
Total 79,000 79,000
Trial Balance CHAPTER 8 75
LONG ANSWER QUESTIONS
LQ-1 _____ From the following transactions prepare journal entries, necessary ledger accounts and Trial balance of Mr. Bijay
for the year ended 31st December 2016.
Date Particulars Rs.
2016 Jan. 1 Bijay started business with cash ...................................................................................................................................................7..5..,.0..0...0......
Feb. 5 Purchased goods ..........................................................................................................................................................................2..5..,.0..0...0......
Feb. 20 Sold goods ....................................................................................................................................................................................3..0..,.0..0...0......
May. 10 Purchased goods from Kabita ......................................................................................................................................................1..8..,.0..0...0......
May. 25 Sold goods to Ramesh .................................................................................................................................................................2..0..,.0..0...0......
June 15 Cash paid to Kabita .......................................................................................................................................................................1..8..,.0...0..0......
June 28 Cash received from Ramesh ........................................................................................................................................................2..0..,.0..0...0......
Aug 2 Purchase goods for cash from Kabita ..........................................................................................................................................1..9..,.0..0...0......
Aug 29 Withdraw for personal use ..............................................................................................................................................................1..,.5...0..0......
Oct 10 Purchased goods from Suman ....................................................................................................................................................1..7..,.0..0...0......
Nov 20 Cash paid to Suman .....................................................................................................................................................................1..6..,.8..0...0......
" Discount allowed by him ....................................................................................................................................................................2...0..0......
Dec. 31 Paid salaries ....................................................................................................................................................................................2..,.0...0..0......
Required: Journal entries, Necessary ledger and Trial balance
Solution,
a. Journal entries
Date Particulars LF Debit (Rs.) Credit (Rs.)
2016 Jan. 1 Cash A/c ...........................................................................................................................Dr. 75,000
75,000
To Capital A/c
(Being the cash brought in for capital)
Jan. 5 Purchase A/c ...................................................................................................................Dr. 25,000
To Cash A/c 25,000
Feb. 20 (Being the goods purchased for cash) 30,000
Cash A/c ..........................................................................................................................Dr.
To Sales A/c 30,000
(Being the sales of goods for cash )
May10 Purchase A/c ...................................................................................................................Dr. 18,000 18,000
To Kabita A/c
May 25 20,000
(Being the purchase of goods from Kabita)
Ramesh A/c .....................................................................................................................Dr.
To Sales A/c 20,000
(Being the sales of goods to Ramesh)
June 15 Kabita A/c ........................................................................................................................Dr. 18,000 18,000
To Cash A/c
June 28 20,000
(Being the cash paid to Kabita)
Cash A/c ..........................................................................................................................Dr.
To Ramesh A/c 20,000
(Being the cash received from Ramesh)
Aug 2 Purchase A/c ...................................................................................................................Dr. 19,000 19,000
To Cash A/c
(Being the purchases of goods for cash)
Aug 29 Drawings A/c ...................................................................................................................Dr. 1,500
To Cash A/c 1,500
(Being the cash withdraw n for personal use)
Oct 10 Purchase A/c ..................................................................................................................Dr. 17,000 17,000
To Suman A/c
17,000
(Being the goods purchased from Suman)
Nov 20 Suman A/c ........................................................................................................................Dr.
To Cash A/c 16,800
To Discount Received A/c 200
Dec. 31 (Being the cash paid to the extent of Rs. 16,810 to Suman and he allowed discount of Rs. 200) 2,000
Salaries A/c .....................................................................................................................Dr.
To Cash A/c 2,000
(Being the salaries paid) 262,500 262,500
Total
b. Ledger Accounts
Dr. Cash Accounts Cr.
Date Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
2016 Jan. 1 To Capital A/c 25,000
Feb.20 To Sales A/c 75,000 2016 Feb-5 By Purchase A/c 18,000
June.28 To Ramesh A/c 30,000 June-15 By Kabita A/c 19,000
20,000 Aug-2 By Purchase A/c 1,500
By Drawing A/c 16,800
Aug-29 By Suman 2,000
Nov. 20 By Salaries A/c 42,700
Dec.31 By Balance c/d 125,000
Dec. 31
125,000
76 Accounting-XI
Dr. Capital Accounts Cr.
Date Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
2016 Dec. To Balance c/d 75,000
75,000 2016 Jan.1 By Cash A/c 75,000
2017 Jan.1 By Balance b/d
c. Dr. Purchase Accounts Cr.
Date Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
2016 Feb.5 To Cash A/c
May 10 To Kabita A/c 30,000 By Balance c/d .................................................................7..9...0..0...0......................................................
Aug. 2 To Cash A/c 18,000
Oct. 10 To Suman A/c 19,000
17,000
79,000 79,000
Dr. Sales Account Cr.
Date
Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
To Balance c/d .......................................................5..0..,.0..0..0......2..0..1..6....F..e..b....2..0........B...y...C..a..s..h...A.../.c.......................................................................3..0...,000
May 25 By Ramesh A/c 20,000
50,000 50,000
Dr. Drawings Accounts Cr.
Date Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
2016 Aug.29
2017 Jan. 1 To Cash A/c ............................................................1..,.5..0..0......2..0..1..6...D..e..c...3..1.........B...y...B..a..l.a..n..c..e...c../.d.....................................................................1..,.5...0..0......................................................
To Balance b/d 1,500
Dr. Discount Received Account Cr.
Date
Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
To Balance c/d ............................................................2..0..0......2..0..1..6...N..o..v...2..0.........B...y...S..u..m...a..n...A.../.c.........................................................................2...0..0......................................................
Dr. Salaries Account Cr.
Date Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
2016 Dec.31 To Cash A/c ............................................................2..,.0..0..0.................................B...y...B..a..l.a..n..c..e...c../.d.....................................................................2..,.0...0..0......................................................
Trial balance
for the month April, 2016
Heads of Accounts LF Debit (Rs.) Credit (Rs.)
Capital A/c ...................................................................................................................................................................................................... – 75,000
Cash A/c (Balance) ....................................................................................................................................................................................4..2..7. 00 –
Purchase A/c ............................................................................................................................................................................................7..9..,.0. 00 –
Sales A/c ......................................................................................................................................................................................................... – 50,000
Drawing A/c ................................................................................................................................................................................................1..,.5. 00 –
Discount received A/c ..................................................................................................................................................................................... – 200
Salaries A/c ................................................................................................................................................................................................2..,.0. 00 125,200
Total 125,200
LQ-2._____ Shrestha and Company started a New business. The following transactions took place in the first month. All the
transactions are performed through bank.
a. Deposited Rs. 400,000 in the company's bank account in exchange for 4,000 shares.
b. Bought equipment on credit Rs. 90,000.
c. Bought supplies for cash, Rs. 20,000.
d. Paid insurance premium for the current month, Rs. 12,000.
e. Received cash for services performed, Rs. 28,000.
f. Paid rent for the month, Rs. 30,000.
g. Billed customers for services provided Rs. 20,000.
h. Paid on account creditors in (b), Rs.90,000.
i. Paid insurance premium for the next month, Rs. 10,000
j. Collected amounts due from customers in (g), Rs. 12,000.
k. Paid telephone expense Rs. 8,000.
l Bought supplies on credit, Rs. 10,000.
m. Received cash for services to be provided later, Rs. 24,000.
n. Paid salary for the month Rs. 16,000.
Required: a. Journal entries of the transactions. b. Cash book (Bank column)
c. Necessary ledger d. Trial balance
Solution,
a. Journal entries
Date Particulars LF Debit Rs. Credit Rs.
a. Bank a/c ..........................................................................................................................Dr. 400,000
To Capital a/c 400,000
(Being business started)
b. Equipment a/c ..................................................................................................................Dr. 90,000 90,000
To Creditors a/c
(Being equipment purchased on credit) 20,000 20,000
c. Office supplies a/c............................................................................................................Dr.
To Bank a/c
(Being Office supplies purchased.)
Trial Balance CHAPTER 8 77
d. Insurance premium a/c ....................................................................................................Dr. 12,000 12,000
e. to Bank a/c 28,000 28,000
f. 30,000 30,000
g. (Being insurance premium paid.) 20,000 20,000
h. Bank a/c ...........................................................................................................................Dr. 90,000 90,000
i. 10,000 10,000
j. To service revenue a/c 12,000 12,000
k. (Being cash received from service revenue.) 28,000 28,000
l. Rent a/c ............................................................................................................................Dr. 10,000 10,000
m. 24,000 24,000
n. To Bank a/c 16,000 16,000
b. Dr. (Being rent paid.)
Date Accounts receivable a/c ...................................................................................................Dr.
a.
b. To Service revenue a/c
j. (Billed to customer for providing service.)
m. Creditors a/c.....................................................................................................................Dr.
c.Dr. To Bank a/c
Date (Being paid to creditors.)
Prepaid insurance premium a/c .......................................................................................Dr.
d. Dr.
Date To Bank a/c
(Being insurance premium paid for next month.)
Dr. Bank a/c ...........................................................................................................................Dr.
Date
To Accounts receivable a/c
Dr. (Being accounts receivable collected.)
Date Telephone expenses a/c..................................................................................................Dr.
To Bank a/c
(Being telephone expenses paid.)
Office supplies a/c............................................................................................................Dr.
To Creditors a/c
(Being office supplies purchased on credit.)
Bank a/c ..........................................................................................................................Dr.
To Advance service revenue a/c
(Being service revenue received in advance.)
Salary a/c .........................................................................................................................Dr.
To Bank a/c
(Being salary paid.)
Cash book (Bank column) Cr.
Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
To Capital ..............................................................4..0..0..,.0..0..0...............c................B...y...O..f.f.i.c..e...s..u..p..p..l.i.e..s..............................................................2..0..,.0..0...0......................................................
To Service revenue..................................................2..8..,.0..0..0...............d................B...y...I.n..s.u...r.a..n..c..e...p..r.e..m...i.u..m........................................................1..2..5,.0..0...0......................................................
To Accounts receivable ...........................................1..2..,.0..0..0................f...............B...y...R..e..n..t..............................................................................3..0..,.0..0...0......................................................
To Advance service revenue ...................................2..4..,.0..0..0...............h................B...y...C..r.e..d...it.o..r..s.......................................................................9..0..,.0..0...0......................................................
i. By Prepaid insurance premium........................................1..0..,.0..0...0......................................................
k. By Telephone expenses ....................................................8..,.0...0..0......................................................
n. By Salary ..........................................................................1..6..,.0..0...0......................................................
By Balance c/d ..............................................................2..7..8...,0...0..0......................................................
464,000 464,000
To Balance b/d ......................................................2..7..8..,.0..0..0..............................................................................................................................
Capital Account Cr.
Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
To Balance c/d ....................................................4..0..0..,.0..0..0.................................B...y...B..a..n..k............................................................................4..0..0...,0...0..0......................................................
400,000 400,000
By Balance b/d ..............................................................4..0..0...,0...0..0......................................................
Equipment Account Cr.
Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
To Creditors ...........................................................9..0..,.0..0..0.................................B...y...B..a..l.a..n..c..e...c../.d...................................................................9..0..,.0..0...0......................................................
90,000 90,000
To Balance b/d.......................................................9..0..,.0..0..0................................................................................................................................
Office Supplies Account Cr.
Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
To Bank..................................................................2..0..,.0..0..0.................................B...y...B..a..l.a..n..c..e...c../.d...................................................................3..0..,.0..0...0......................................................
To Creditors ...........................................................1..0..,.0..0..0................................................................................................................................
30,000 30,000
To Balance b/d.......................................................3..0..,.0..0..0................................................................................................................................
Insurance Premium Account Cr.
Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
To Bank .................................................................1..2..,.0..0..0.................................B...y...B..a..l.a..n..c..e...c../.d...................................................................1..2..,.0..0...0......................................................
12,000 12,000
To Balance b/d ......................................................1..2..,.0..0..0................................................................................................................................
78 Accounting-XI
Dr. Service Revenue Account Cr.
Date Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
To Balance c/d ......................................................9..6..,.0..0..0.................................B...y...B..a..n..k..............................................................................5..6..,.0..0...0......................................................
By Account receivable .....................................................4..0..,.0..0...0......................................................
96,000 96,000
By Balance b/d ................................................................9..6..,.0..0...0......................................................
Dr. Rent Account Cr.
Date
Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
To Bank .................................................................6..0..,.0..0..0.................................B...y...B..a..l.a..n..c..e...c../.d...................................................................6..0..,.0..0...0......................................................
60,000 60,000
To Balance b/d ......................................................6..0..,.0..0..0................................................................................................................................
Dr. Salary Account Cr.
Date Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
To Bank..................................................................3..2..,.0..0..0.................................B...y...B..a..l.a..n..c..e...c../.d...................................................................3..2..,.0..0...0......................................................
32,000 32,000
To Balance b/d.......................................................3..2..,.0..0..0................................................................................................................................
Dr. Accounts Receivable Account Cr.
Date Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
To Service revenue................................................4..0..,.0..0..0.................................B...y...B..a..n..k..............................................................................2..4..,.0..0...0......................................................
By Balance c/d ................................................................1..6..,.0..0...0......................................................
40,000 40,000
To Balance b/d.......................................................1..6..,.0..0..0................................................................................................................................
Dr. Creditors Account Cr.
Date Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
To Bank................................................................1..8..0..,.0..0..0.................................B...y...E..q..u..i.p..m...e..n..t..................................................................1..8...0..,0...0..0......................................................
To Balance c/d .......................................................2..0..,.0..0..0.................................B...y...o..f.f.ic..e...s..u..p..p..l.i.e..s...............................................................2..0...,0..0...0......................................................
200,000 200,000
By Balance b/d .................................................................2..0..,.0..0...0......................................................
d. Trial balance
Bank Account Title Unadjusted Trial Balance
Share Capital Dr. Rs. Cr. Rs.
Equipment
Creditors 278,000 -
Office supplies - 400,000
Insurance premium 90,000 -
Service revenue - 10,000
Rent 30,000 -
Account receivable 12,000 -
Prepaid insurance - 48,000
Telephone expenses 30,000 -
Advance revenue 8,000 -
Salary 10,000 -
Total 8,000 -
- 24,000
16,000 -
482,000 482,000
LQ-3._____ The financial transactions of a trader are provided below:
a. Started business with cash Rs 600,000 and bank balance Rs 200,000.
b. Deposited into bank Rs 300,000.
c. Machinery costing Rs 160,000 was purchased and payment made by a cheque.
d. Purchased merchandise for Rs 100,000 on account.
e. Sold merchandise on account for Rs 340,000.
f. Received a cheque from debtor, Rs 285,000 after deduction of 5% discount. The cheque was banked immediately.
g. Paid Rs 90,000 to creditor by issuing a cheque after deduction of 10% discount,
h. Rs 30,000 was paid for insurance premium.
i. Paid wages Rs 40,000 and office salary Rs 50,000 by issuing cheques.
j. Paid Rs 40,000 as rent by issuing a cheque for the period.
Required:
i. Journal entries for the financial transactions. ii. Triple column cash book,
iii. Necessary ledger accounts, iv. Trial balance
Solution,
Journal entries
Date Particulars LF Debit Rs. Credit Rs.
a. Cash a/c........................................................................................................................... Dr. 600,000 800,000
Bank a/c ........................................................................................................................... Dr. 20,000
To Capital a/c
b. Bank a/c ........................................................................................................................... Dr. 300,000 300,000
To Cash a/c
Trial Balance CHAPTER 8 79
c. Machinery a/c .................................................................................................................. Dr. 160,000 160,000
To Bank 100,000 100,000
340,000 340,000
d. Purchase a/c.................................................................................................................... Dr. 285,000
To Accounts payable 15,000 300,000
100,000 90,000
e. Accounts receivable a/c................................................................................................... Dr. 10,000
To Sales 30,000 30,000
30,000 30,000
f. Bank a/c ........................................................................................................................... Dr. 40,000
Discount a/c ..................................................................................................................... Dr. 50,000 90,000
To Account receivable a/c 40,000 40,000
g. Accounts payable a/c ...................................................................................................... Dr.
To Bank a/c
To Discount
g, Insurance premium a/c .................................................................................................... Dr.
To Cash a/c
h. Insurance premium a/c .................................................................................................... Dr.
To Cash
i. Wages a/c........................................................................................................................ Dr.
Salary a/c......................................................................................................................... Dr.
To Bank a/c
j. Rent a/c............................................................................................................................ Dr.
To Bank a/c
Dr. Triple Column Cash Book Cr.
Date Particulars LF Cash Bank Discount Date Particulars LF Cash Bank Discount
a. To Capital .......................................6..0..0..,.0..0..0.........2..0..0..,.0..0..0..............................b..........B..y...B...a..n..k................................c...........3..0...0..,.0..0..0...............................................................................................
b. To Cash ...............................c...............................3..0..0..,.0..0..0..............................c..........B..y...M...a..c..h..i.n..e..r.y........................................................1..6..0..,.0..0..0...........................................................................
c. To Accounts receivable ......................................2..8..5..,.0..0..0...........1..5...,.0..0..0.........g..........B..y...A...c.c..o..u..n..t.s...p..a..y..a..b..l.e..............................................9..0..,.0..0..0...........1..0..,.0..0...0......................................................
h. By Insurance ...................................3..0...,.0..0..0...............................................................................................
i. By Wages and Salaries ........................................5..0..,.0..0..0...........................................................................
j. By Rent .................................................................4..0..,.0..0..0...........................................................................
By Balance c/d ..............................2..7...0..,.0..0..0.........4..0..5..,.0..0..0...........................................................................
600,000 785,000 15,000 600,000 785,000 10,000
To Balance b/d 270,000 405,000
Dr. Accounts Receivable account
Date Particulars JF Amount Rs. Date Particulars JF Amount Rs.
e.
To Sales ...............................................................3..4..0..,.0..0..0.................f................B...y...B..a..n..k............................................................................2..8..5...,0...0..0......................................................
By Discount ......................................................................1..5..,.0..0...0......................................................
By Balance c/d .................................................................4..0..,.0..0...0......................................................
340,000 340,000
To Balance b/d.......................................................4..0..,.0..0..0................................................................................................................................
Dr. Accounts payable Cr.
Date Particulars JF Amount Rs. Date Particulars JF Amount Rs.
g.
To Bank..................................................................9..0..,.0..0..0................d.................B...y...P..u..r.c..h..a..s..e.....................................................................1..0..0...,0...0..0......................................................
To Discount............................................................1..0..,.0..0..0................................................................................................................................
100,000 100,000
Trial balance
Account Title Unadjusted Trial Balance
Dr. Rs. Cr. Rs.
Cash 270,000
Bank 405,000
Discount 15,000 10,000
Share capital 800,000
Sales 340,000
Purchase 100,000
Machinery 160,000
Accounts receivable 40,000
Prepaid insurance 30,000
Wages 40,000
Salaries 50,000
Rent expense 40,000
Total
1150,000 1150,000
VERY SHORT ANSWER QUESTIONS
VQ-1._____ The following information are given ii. Cash book showed the balance of Rs.75,000
i. passbook showed the balance of Rs.78,000 iv. cheque paid in to the bank but not yet credited Rs.2,000
iii. cheque drawn but not yet presented Rs.5,000
Required: Bank Reconciliation Statement : b. on the basis of pass book balance
a. on the basis of cash book balance
Solution:
a. Bank Reconciliation Statement
Particulars Amount (Rs.) Amount (Rs.)
Balance as per cash book ........................................................................................................................................................................7..5..0.00 80,000
Add: Cheque ussued but not presented for payment .............................................................................................................................5..0.00 2000
Less: cheque paid in to bank but not credited ............................................................................................................................................ 78,000
Bank balance as per pass book
b. Bank Reconciliation Statement
Particulars Amount (Rs.) Amount (Rs.)
Balance as per pass book .......................................................................................................................................................................7..8..,.0.00
Add. Cheque paid but not credited ..............................................................................................................................................................2..0.00 80,000
5000
Less cheque issued but not presented for payment ......................................................................................................................................
Bank balance as per pass book 75,000
VQ-2._____ Following information are given:
i. On Bhadra 30, the cash book showed a balance of Rs.15,450 ii. Cheque paid in but not yet credited by bank Rs.4,440
iii. Cheque issued but not presented Rs. 55,450 iv. Bank charges debited in pass book Rs.200
Required: Bank Reconciliation Statement
Solution,
Bank reconciliation statement
as on 30th Bhadra
Particulars Amount (Rs.) Amount (Rs.)
Bank balance as per cash book 15,450
Add: Cheque issued but not yet presented for payment ......................................................................................................................5..5..,.4.50 55,450
Less: Cheque paid but not yet credited by bank .....................................................................................................................................4..,.4.40 70,900
Bank charges debited in pass book ..................................................................................................................................................2.00 4,640
Bank balance as per pass book 66,260
VQ-3._____ The Following information are given:
i. Balance as per pass book Rs.20,000
ii. Cheque drawn but not presented for payment Rs.5000
iii. Cheque deposited into the bank but not cleared and credited by bank Rs.10,000.
iv. A customer directly deposited Rs.12,000 in bank account but not shown in cash book.
Required: Bank Reconciliation Statement
Solution:
Bank reconciliation statement
as on 30th Bhadra
Particulars Amount (Rs.) Amount (Rs.)
Balance as per pass book ........................................................................................................................................................................2..0..,.0.00
Add: Cheque deposited into the bank but not cleared and credited by bank ......................................................................................1..0..,.0.00 30,000
Less: Cheque drawn but not presented for payment ...............................................................................................................................5..0.00
A customer directly deposited in bank account but not shown in cash book ..............................................................................1..2..,.0.00 17,000
13,000
Balance as per cash book
SHORT ANSWER QUESTIONS
Balance as per Cash Book
SQ-1._____ Following information are given:
i. On Ashwin 31, cash book of a Company showed a bank balance of Rs.22,000
ii. A cheque of Rs.15,000 deposited on Ashwin 25, has yet not been credited by bank
iii. Out of the cheque issued for Rs. 5,000 on Ashwin 23, only cheque of Rs.2,500 has been presented for payment.
iv. A customer has directly deposited Rs.4,000 into bank but not recorded in cash book.
v. Interest earned of Rs.550 credited only in pass book.
Required: Bank Reconciliation Statement
Modern Banking System and Bank Reconciliation Statement CHAPTER 9 81
Solution,
Bank Reconciliation Statement
as on 31st Ashwin
Particulars Amount (Rs.) Amount (Rs.)
Bank balance as per cash book ...................................................................................................................................................................... 22,000
Add: Cheque issued but not presented for payment..............................................................................................................................2..,.5.00 7,050
Customer directly deposited into bank ...........................................................................................................................................4..,.0.00 29,050
Interest earned credited by bank.......................................................................................................................................................5.50 15,000
14,050
Less: Cheque deposited but not credited by bank ................................................................................................................................1..5..,.0.00
Bank balance as per pass book
SQ-2. ____ Following information are given:
i. Cash book showed a balance of Rs.125,000 on ending of Chaitra
ii. Cheques amounting to Rs.25,500 were sent to bank for collection, but cheque of only Rs.12,000 were credited in pass book.
iii. Cheque drawn but not presented for payment Rs.13,000
iv. A customer has directly deposited Rs.5,000 into bank but not recorded in cash book.
v. Interest earned of Rs.700 credited only in pass book.
vi. Service charges Rs.300 shown in pass book only.
Required: Bank Reconciliation Statement
Solution,
Bank reconciliation statement
as on ending of Chaitra….
Particulars Amount (Rs.) Amount (Rs.)
Bank balance as per cash book ...................................................................................................................................................................... 125,000
Add: Cheque drawn but not presented for payment.............................................................................................................................1..3..,.0.00
Customer directly deposited but not recorded in cash book..........................................................................................................5..,.0.00 18,700
Interest earned only credited in pass book .......................................................................................................................................7.00 143,700
13,800
Less: Cheque sent for collection but not collected by bank ..................................................................................................................1..3..,.5.00 1,29,900
Service charges debited in pass book only.......................................................................................................................................3.00
Bank balance as per pass book
SQ-3. ____ The following information is made available to you:
i. On 31st March, balance as per cash book revealed Rs.7,850 ii. Cheque issued but not presented for payment Rs.1,200
iii. Cheque deposited but not credited by bank Rs. 600 iv. Bank charge debited by bank Rs.25
v. Interest on deposit credited by bank Rs. 100
Required: Prepare Bank Reconciliation Statement
Solution,
Bank reconciliation statement
as on... Dec. 31, ……
Particulars Amount (Rs.) Amount (Rs.)
Bank balance as per cash book ...................................................................................................................................................................... 7,850
Add: Cheque issued but not presented for payment ..............................................................................................................................1..,.2.00 1,300
9,150
Interest on deposit credited by bank .................................................................................................................................................1.00 625
Less: Cheque deposited but not credited by bank .....................................................................................................................................6.00 8,525
Bank charge debuted by bank............................................................................................................................................................25
Bank balance as per pass book
SQ-4. ____ The D. Company had a debit balance of Rs. 8,670 in Cash Book on December 31, 2016. The Bank Statement
showed that the Dhiren Company had a balance of Rs. 9,435 on December 31, 2016. After analysing Bank Statement and
Cash Book, the following Reconciling items were identified:
i. Cheque issued but not presented for payment Rs. 3,015.
ii. A cheque of Rs. 1,920 deposited was not recorded on the Bank Statement.
iii. Bank service charges debited by the bank Rs. 100.
iv. A cheque of Mr. Ram deposited into bank was dishonoured Rs.1,500
v. The Bank collected Rs.1270, from a customer of Diren Company Ltd.
Required: Bank Reconciliation Statement
Solution,
Bank reconciliation statement
as on... December 31, 2016
Particulars Amount (Rs.) Amount (Rs.)
Bank balance as per cash book ...................................................................................................................................................................... 8,670
Add: Cheque issued but not presented for payment .............................................................................................................................3..,.0.15 4,285
Bank collected from customer of Diven company Ltd....................................................................................................................1..,.2.70 12,955
Less: Cheque deposited but not recorded on the bank statement.........................................................................................................1..,.9.20 3,520
Service charges debited by the bank ................................................................................................................................................1.00 9,435
Cheque of Mr. Ram deposited into bank was dishonored.............................................................................................................1..,.5.00
Bank balance as per pass book
82 Accounting-XI
SQ-5._____ Following information are given:
i. Cash book showed a balance of Rs. 20,000 on ending of Ashadh.
ii. Cheques amounting to Rs. 2,500 were sent to bank for collection, but cheque of only Rs.2,000 were credited in pass book.
iii. Cheque drawn but not presented for payment Rs.3,000
iv. A customer has directly deposited Rs.5,000 into bank but not recorded in cash book.
v. Service charge Rs.100 shown in pass book only.
vi. Interest earned of Rs.500 credited only in pass book.
Required: Bank Reconciliation Statement
Solution,
Bank reconciliation statement
as on 31st Ashadh
Particulars Amount (Rs.) Amount (Rs.)
Bank balance as per cash book ...................................................................................................................................................................... 20,000
Add: Cheque drawn but not presented for payment...............................................................................................................................3..,.0.00
Customer directly deposited into bank but not recorded in cash book..................................................................... in cash bo5o,k0.00 8,500
Interest earned credited only in pass book. ......................................................................................................................................5.00 28,500
Less: Cheque sent for collection but not credited in pass book. ................................................................................................................5.00 600
Service charge shown in pass book only..........................................................................................................................................1.00 27,900
Bank balance as per pass book
Balance as per Pass Book (Bank Statement)
SQ-6. ____ Following information are given:
i. Bank balance as per pass book on 31st Chaitra Rs.25,000.
ii. Cheques drawn before Chaitra but not presented for payment Rs.8,500.
iii. Bank charges debited in pass book only Rs.450.
iv. Cheques deposited before 31st Chaitra but not credited by bank Rs.10,000.
v. A customer directly deposited into bank Rs.5,000.
Required: Bank Reconciliation Statement on 31st Chaitra.
Solution,
Bank reconciliation statement
as on 31st Chaitra 2073
Particulars Amount (Rs.) Amount (Rs.)
Bank balance as per pass book 25,000
Add: Bank charges debited in pass book ..................................................................................................................................................4.50
10,450
Cheque deposited but not credited by bank ................................................................................................................................1..0..,.0.00 35,450
Less: Cheque drawn but not presented for payment...............................................................................................................................8..,.5.00 13,500
Customer directly deposited into bank ...........................................................................................................................................5..,.0.00 21,950
Bank balance as per cash book
SQ-7._____ Following information are given:
i. Bank balance as per pass book on 31st Chaitra 2073 ..............................................Rs.25,000
ii. Cheques drawn before Chaitra but not presented for payment ..................................Rs.7,500
iii. Bank charges debited in pass book only ...................................................................... Rs.500
iv. Cheques deposited before 31st Chaitra but not credited by bank ..............................Rs.11,000
v. A customer directly deposited into bank ....................................................................Rs.5,500
vi. Bill receivable discounted dishonoured by the bank ...................................................Rs.5,000
Required: Bank Reconciliation Statement on 31st Chaitra 2073
Solution,
Bank reconciliation statement
as on 31st Chaitra 2073
Particulars Amount (Rs.) Amount (Rs.)
Bank balance as per pass book ...................................................................................................................................................................... 25,000
Add: Bank charges debited in pass book only..........................................................................................................................................5..,00
Cheque deposited but not credited by bank ................................................................................................................................1..1..,.0.00 16,500
Bill receivable discounted dishonored by bank ..............................................................................................................................5..,.0.00 41,500
13,000
Less: Cheque drawn but not presented for payment...............................................................................................................................7..,.5.00 28,500
Customer directly deposited into bank...........................................................................................................................................5..,.5.00
Bank balance as per cash book
SQ-8. ____ Following information are given:
i. On Shrawan 31, the pass book showed a bank balance of Rs.75,000
ii. Service charge entered in pass book, but not recorded in cash book Rs.450
iii. Cheques of Rs. 20,000 were issued for payment but presented for payment only Rs.5,000
iv. Cheques sent for collection but not credited by bank Rs.50,000
v. Insurance premium paid by bank but not entered in cash book Rs.4,000
vi. Interest on investment collected and credited by bank but not recorded in cash book Rs.2,000
vii. Wrongly under cast in debit side of cash book Rs.500.
viii. Two cheques of Rs. 6,500 and Rs. 5,600 were issued on 27th Shrawan but a cheque of Rs. 6,500 was presented on 3rd Bhadra.
Required: Bank Reconciliation Statement
Modern Banking System and Bank Reconciliation Statement CHAPTER 9 83
Solution,
Bank reconciliation statement
as on 31st Shawan
Particulars Amount (Rs.) Amount (Rs.)
Balance as per pass book............................................................................................................................................................................... 75,000
Add: Service charged only recorded in pass book ....................................................................................................................................4.50 54,450
Cheques sent for collection but not credited by bank..................................................................................................................5..0..,.0.00 129,450
Insurance premium paid by bank but not entered in cash book ....................................................................................................4..,.0.00 payment
24,000
Less: Cheque issued for payment but not presented for ......................................................................................................................1..5..,.0.00 105,450
Interest an investment collected and credited by bank but recorded in cash book.......................................................................2..,.0.00
Wrongly under cast in cash book debit side. ....................................................................................................................................5.00
Cheque issued but not presented for payment ..............................................................................................................................6..,.5.00
Bank balance as per cash book
SQ9. _____ Prepare a Bank Reconciliation Statement from the following information at the end of Chaitra 2063.
i. Credit balance as per pass book Amount 13,000.
ii. A cheque of Rs.15,000 issued but not presented for payment.
iii. Amount of over additions in the credit side of bank column of cash book Rs.350.
iv. Interest credited in pass book but not entered in cash book Rs.250.
v. Amount wrongly credited in pass book Rs.470.
vi. Amount of cheques deposited into bank but not credited by bank Rs.4,750.
Solution,
Bank Reconciliation Statement
as on 30th Chaitra 2063
Balance as per pass book Particulars Amount Amount
13,000
Add: Cheques deposited but not credited ................................................................................................................................................4..,750 4,750
17,750
Less: Cheques issued not yet cashed .....................................................................................................................................................1..5..,000 16,070
Credit side of cash book was over addition(over cast) .....................................................................................................................350 1,680
Interest credited in pass book but not entered in cash book .............................................................................................................250
Amount wrongly credited in pass book ..............................................................................................................................................470
Balance as per cash book
Modern concept
SQ-10.____ The following information has been assembled for the purpose of preparing the November 30, 2007 bank
reconciliation statement of Mahesh Company.
i. The balance of the November 30 bank statement was Rs. 12,700, the cash account showed as Rs. 5,920 balance on
the same dat.
ii. Cheques under collection on November 30, Rs.1100.
iii. Outstanding cheques Rs. 6,800.
iv. A customer's cheques for Rs. 900 was returned with the bank statement marked 'NSF'.
v. Bank service charged for Rs.120.
vi. Bill receivable collected by bank Rs. 2,000.
vii. Interest on the preceding bills Rs.100.
Required: Bank reconciliation statement of Mahesh Company for November 30, 2007.
Solution,
Makalu Company
Bank Reconciliation Statement, Nov. 30 2007
Bank Rs. Rs.
Balance............................................................................................................................................................................................................ 12,700
Add: Cheque under collection..................................................................................................................................................................... 1100
Less: Outstanding cheques.......................................................................................................................................................................... 6,800
Adjusted balance 7,000
Company's Books Rs. Rs.
Balance............................................................................................................................................................................................................ 5,920
Add: Bills receivable..............................................................................................................................................................................2..,.0..0. 0
Interest on bill ..................................................................................................................................................................................1..0. 0 2100
Less: NSF cheque.....................................................................................................................................................................................9..0. 0
Bank service charge ........................................................................................................................................................................1..2. 0 1020
Adjusted balance 7,000
SQ-11.____ The following information is available for Max Company on August 31, 2008.
i. Balance per company records Rs. 8,265. ii. Un-deposited August 31, cheque Rs.1,030.
iii. Bank services charge for August Rs. 85. iv. August outstanding cheque Rs. 3,900.
v. Bill receivable collected by bank but not recorded on the books Rs.1,000.
vi. Interest on the preceding bills is recorded on company Rs. 50.
v. Bank statement balance Rs. 12,100.
Compute the cash balance to be reported on Max Company's August 31 balance sheet. Prepare, if necessary, journal entry
for the company.
84 Accounting-XI
Solution,
Max Company
Bank Recording Statement
As on August 31, 2008
Company Book Rs. Rs.
8,265
Balance............................................................................................................................................................................................................
1050
Add: Collection of bills receivables ..........................................................................................................................................................................1..,.0...00 85
Interest on bill.....................................................................................................................................................................................................50 9,230
Rs.
Less: Bank service charge .............................................................................................................................................................................................85
2,100
Adjusted balance 1,030
(3,900)
Bank Record Rs. 9,230
Balance............................................................................................................................................................................................................
Add: Undeposited cheque...............................................................................................................................................................................
Less: Outstanding cheque ..............................................................................................................................................................................
Adjusted balance
SQ-12. ____ Shown below are the information needed to prepare a bank reconciliation statement for Delta Electric at December 31.
i. At December 31, cash as per the bank statement was Rs. 16,200; Cash as per the company's records was Rs. 18,000.
ii. Two debit memoranda accompanies the bank statement.
Service charges for December of Rs. 25 and Rs. 775 cheque drawn by Jackson Company marked "NSF":
iii. Cash receipts of 9,000 on December 31 were not deposited until January 2.
iv. The following cheques had been issued in December but they were outstanding yet: cheque no. 620 for Rs.1,000,
cheque no. Rs. 3,000 andcheque no. 641 for Rs.4,000
Required:
a. Prepare bank reconciliation statement as of June 30, 2010.
b. Pass the necessary journal entries in the book of Capital Company.
Solution
a. Delta Electric
Bank Reconciliation Statement, Dec. 31, 200X
Bank Rs. Rs.
Balance ........................................................................................................................................................................................................... 16,200
Add: Deposits in transit ............................................................................................................................................................................9..,.0..0. 0 9,000
Less: Outstanding cheques
No. 620 ........................................................................................................................................................................................1..,.0..0. 0 8,000
No. 630 ........................................................................................................................................................................................3..,.0..0. 0 17,200
No. 641 .........................................................................................................................................................................................4..,.0..0. 0 Rs.
Adjusted balance
Books Rs.
Balance....................................................................................................................................................................................................2..5...7..7. 5 18,000
Less: Service charge NSF cheque ................................................................................................................................................................. 800
Adjusted balance
17,200
Overdraft as per Cash Book
SQ-13.____ From the following particulars, prepare a Bank Reconciliation Statement. On 31st January, 2016 the cash book a
businessman showed an overdraft of Rs.600.
i. Cheque drawn but not cashed before 31st January 2016 amounting Rs.3,900.
ii. Cheque paid into the bank but not credited by band before 31st January, 2016 amounting Rs.2,800.
iii. Bank has debited Rs.120 on account of interest on overdraft but not recorded into cash book.
iv. The bank has credited interest on investment of Rs.760 in the pass book but not recorded in the cash book.
Solution
Bank Reconciliation Statement
As on January 31, 2016
Particulars Amount Amount
Balance as per cash book (600)
Add: Cheques issued but not presented for payment .............................................................................................................................3..,.900
Interest on overdraft credited in pass book........................................................................................................................................760 4,660
4,060
Less: Interest on overdraft debited in pass book.........................................................................................................................................120
Cheques deposited but not collected ..............................................................................................................................................2..,.800 2,920
Balance as per pass book 1,140
SQ-14.____ XYZ limited’s cash book showed a bank overdraft of Rs 76,240 as on 30/06/2016. The bank statement as on that
date showed a different overdraft figure. Following are the causes.
i. Cheques deposited but not collected as yet............................................................Rs 102,500
ii. Cheques issued but not yet presented for payment ...................................................Rs 76200
iii. A cheque of Rs.10,500 deposited was dishonoured by Bank
iv. Bank charge not recorded in the cash book................................................................Rs 2,760
v. Interest on overdraft not recorded in cash book ..........................................................Rs 1,250
Required: The overdraft balance as per bank statement
Modern Banking System and Bank Reconciliation Statement CHAPTER 9 85
Solution,
Bank reconciliation statement
as on 30-6-2016
Particulars Amount (Rs.) Amount (Rs.)
76,240
Overdraft as per cash book.............................................................................................................................................................................
Add: Cheque deposited but not collected as yet ................................................................................................................................1..0..2..,.5.00 117,010
Cheque deposited but dishonoured by bank ...............................................................................................................................1..0..,.5.00 193,250
Charges not recorded in the cash book .........................................................................................................................................2..,.7.60 76,200
Interest on overdraft not recorded in cash book ............................................................................................................................1..,.2.50 117,050
Less: Cheque issued but not yet presented for payment ....................................................................................................................7..6..,.2.00
Overdraft as per pass book
Overdraft as per Pass Book (Bank Statement)
SQ-15.____ Prepare a Bank Reconciliation Statement on the following information.
i. Debit balance of pass book Rs.15,500.
ii. Cheques issued but not presented for payment Rs.3,000.
iii. Cheques sent into bank for collection but not credited Rs.3,300.
iv. Interest on overdraft amounting Rs.280 debited in the pass book is not entered in cash book.
v. A cheque for Rs.2,000 has been debited in bank column of cash book but not sent into bank for collection.
vi. The payment column of the cash book has been under cast by Rs.550.
Solution,
Bank Reconciliation Statement
as on … … …
Debit balance as per pass book Particulars Amount Amount
(15,500)
Add: Cheques sent into bank for collection but not credited...................................................................................................................3..,.300
6,130
Interest on overdraft debited in the pass book but not entered in cash book....................................................................................280 99,170)
Cheque debited in bank column of cash book but not sent into bank for collection .....................................................................2..,.000
Amount undercasted in payment column of the cash book...............................................................................................................550 3,000
(12,370)
Less: Cheques issued but not presented for payment. ............................................................................................................................3..,.000
Overdraft as per cash book
SQ-16. ___ The following particulars relate to Amrit as on 31-12-2016.
i. Overdraft balance as per pass book Rs.15,000
ii. Interest on overdraft Rs.500 was debited in the pass book but not posted in the cash book.
iii. Bank charges Rs.270 were posted in the Pass Book but not recorded in the Cash Book
iv. Cheques issued but not presented for payment before 31-12-2016 were Rs.3,000
v. Cheques sent for collection but not credited by Bank by 31-12-2016 were Rs.6,000
vi. An amount of Rs.5,600 has been collected as dividend and credited in the pass book only but not recorded in the Cash Book
Required: Prepare Bank Reconciliation statement
Solution,
Bank reconciliation statement
as on 31-12-2016
Particulars Amount (Rs.) Amount (Rs.)
Overdraft as per pass book ............................................................................................................................................................................. 15,000
Add: Cheque issued but not presented for payment ..............................................................................................................................3..,.0.00 8,600
An amount has been collected as dividend and credited only in pass book .................................................................................5..,.6.00 273,600
Less: Interest on overdraft debited in pass book only ................................................................................................................................5.00 6,740
Bank charge debited in pass book only ............................................................................................................................................2.70 16,830
Cheque sent for collection but not credited by bank......................................................................................................................6..,.0.00
Overdraft as per cash book
LONG ANSWER QUESTIONS
Balance as Per Cash Book
LQ-1._____ The C Ltd. had a debit balance of Rs. 12,450 in Cash Book on December 31, 2016. The Bank Statement showed
that the C Ltd. had a balance of Rs.3,050 on December 31, 2016. After analysing Bank Statement and Cash Book, the
following Reconciling items were identified:
i. Cheque issued but not presented for payment Rs. 4,450
ii. A cheque of Rs. 12,420 deposited was not recorded on the Bank Statement.
iii. Bank service charges debited by the bank Rs. 200.
iv. A cheque of Mr. Hari deposited into bank was dishonoured Rs.11,500
v. The Bank collected Rs.6,270, from a customer of C. Ltd.
vi. Cheques of Rs.6,550 issued for payment out of which only Rs.2,550 presented for payment.
vii. Interest on overdraft not recorded in cash book Rs.2,000
Required: Bank Reconciliation Statement
86 Accounting-XI
Solution,
Bank reconciliation statement
as on 31st December 2016
Particulars Amount (Rs.) Amount (Rs.)
12,450
Bank balance as per cash book ......................................................................................................................................................................
14,720
Add: Cheque issued but not presented for payment..............................................................................................................................4..,.4.50 27,170
Bank collected from customer but not recorded in cash book.......................................................................................................6..,.2.70
Cheque issued but not presented for payment until 31st December ............................................................................................4..,.0.00 26,120
3,050
Less: Cheque deposited but not credited by bank ................................................................................................................................1..2..,.4.20
Bank service charge debited by bank but not recorded in cash book..............................................................................................2.00
Cheque of Hari deposited but dishomoured by bank...................................................................................................................1..1..,.5.00
. Interest on overdraft not recorded in cash book ............................................................................................................................2..,.0.00
Bank balance as per pass book
LQ-2._____ The Cash Book of Manish Brothers showed Rs.5,420 as at November 30, 2016. The Bank Balance as at
November 30, 2016 was not agreed. Other Data relating to the Bank Reconciliation were as follows:
i. A Cash deposit Rs.7,450 was recorded in the Cash Book on November 30, 2016 but not recorded on the November in
Bank Statement.
ii. The Bank returned a client's dishonoured cheque for Rs.4,000.
iii. Bank debited Rs.150 for service charge.
iv. Cheques deposited but not credited by the bank till November were Rs. 12,050.
v. Cheques issued but not presented for payment till November Rs.10,500.
vi. Electricity bill of Rs. 1,500 paid by the bank as per instruction but same is not recorded in cash book.
Required: Bank reconciliation Statement
Solution,
Bank reconciliation statement
as on 30th November 2016
Particulars Amount (Rs.) Amount (Rs.)
5,420
Bank balance as per cash book 10,500
15,920
Add: Cheque issued but not presented for payment into bank ............................................................................................................1..0..,.5.00
25,150
Less: Cash deposited but not credited by bank.......................................................................................................................................7..,.4.50 9,230
Bank return a client dishonoured cheque.......................................................................................................................................4..,.0.00
Bank debited service charge .............................................................................................................................................................1.50
Cheque deposited but not credited by bank ................................................................................................................................1..2..,.0.50
Electricity bill paid by bank as per instruction ................................................................................................................................1..,.5.00
Overdraft as per pass book
LQ- 3. ____ Following information are given:
Bhadra 31 : Cash book of Sewa Pvt. Ltd showed a bank balance of Rs. 55,000
: Cheques of Rs. 20,000 deposited into bank of Bhadra 25, has been credited only Rs. 10,000 in the month.
: Out of the cheques issued of Rs. 15,000 on Bhadra 20, Only a cheque of Rs. 10,000 has been presented
for payment.
: Interest income of Rs. 5,000 is credited in the bank but not shown in cash book.
: Cheque of Rs. 4,000 received from Shyam is entered into cash book but omitted to sent in the bank.
: Bank commission entered in bank pass book but not mentioned in cash book Rs. 1,000.
: Service charge entered in bank statement but not entered in cash book Rs. 1,000.
: A customer directly deposited Rs. 4,000 into bank has not been recorded into cash book.
Required: Bank reconciliation statement as on Bhadra 31.
Solution:
Bank reconciliation statement
as on 30th November 2016
Particulars Amount (Rs.) Amount (Rs.)
Balance as per cash book ............................................................................................................................................................................... 55,000
14,000
Add: Cheque issued.................................................................................................................................................................................5..0.00 69,000
Customer directly deposited into bank............................................................................................................................................4..0.00 16,000
Interest income ...............................................................................................................................................................................5..0.00 53,000
Less: Cheque deposited.........................................................................................................................................................................1..0..,.0.00
Cheque received.............................................................................................................................................................................4..,.0.00
Bank commission............................................................................................................................................................................1..,.0.00
Service charge ...............................................................................................................................................................................1..,.0.00
Balance as Per Pass Book
LQ-4._____ Consider the following information of Anugya and Co., prepare a Bank Reconciliation Statements.
i. Balance as per pass book was Rs.6,000.
ii. Cheques issued but not presented for payment Rs.3,200.
iii. Cheque deposited into bank for collection but not yet collected by bank Rs.3,200.
Modern Banking System and Bank Reconciliation Statement CHAPTER 9 87
iv. The debit side of cash book has been over cast by Rs.300.
v. Cheque for Rs.2,800 issued to a supplier was entered in cash book but was not debited in bank statement for Rs.1,800.
vi. Bank charges Rs.120 has not been in the cash book.
vii. Bill receivable directly collected by bank but not entered in cash book Rs.1,300.
Ans: Balance as per cash book Rs. 3,320
Solution,
Bank Reconciliation Statement
as on
Particulars Amount Amount
Balance as per pass book 6,000
Add: Cheques deposited not yet credited by the bank........................................................................................................................3..,.2...0.0
Debit side of the cash book over cast ............................................................................................................................................3...0.0
Bank charges not recorded in cash book.......................................................................................................................................1...2.0 3,620
9,620
Less: Cheques issued not presented for payment. ..............................................................................................................................3..,.2...0.0
Cheques issued not yet cashed (a)............................................................................................................................................1..,.8...0.0
Bill receivable directly collected by bank but not entered in cash book......................................................................................1..,.3...0.0 6,300
Balance as per cash book 3,320
LQ-5._____ Consider the following information of Pragati Trader as on 31st January 2004.
i. Balance as per pass book Rs.48,500.
ii. Cheques of worth Rs.34,000 deposited in bank but credited by the bank Rs.24,000.
iii. Cheques of worth Rs.26,000 issued but presented for payment Rs.16,000.
iv. The sum of Rs.2,500 deposited but wrongly credited in another account by the bank.
v. Insurance premium of Rs.1,500 directly paid by bank but entered cash book Rs.1,000.
vi. Electricity bills paid by bank Rs.1,200.
Required: Prepare a Bank Reconciliation Statement of Pragati Traders.
Solution,
Bank Reconciliation Statement
as on 31st January, 2004
Particulars Amount (Rs.) Amount (Rs.)
48,500
Balance as per pass book
14,200
Add: Cheque deposited but not credited by the bank (34,000-24,000) ...............................................................................................1..0..,.0.00 62,700
10,000
Cheque deposited but wrongly credited by the bank in another account .....................................................................................2..,.5.00 52,700
Insurance premium directly paid by bank but not entered in cash book (1,500-1,000) ...................................................................5.00
Electricity bills paid by bank ........................................................................................................................................................................1..,.2.00
Less: Cheques issued but not presented for payment (26,000-16,000)...............................................................................................1..0..,.0.00
Balance as per cash book
Modern Concept
LQ-6.The following information is provided :
i. The cash balance in the company’s book is Rs. 12,500.
ii. The bank statement shows the balance Rs. 13,400.
iii. Cheque issued to a creditors which has not yet been cleared at bank Rs. 2,600.
iv. Customer directly deposit money into company’s bank account for Rs. 550 is not record in company’s book.
v. A deposit for Rs. 1,750 made by company does not appear on the bank statement.
vi. Bank service charge recorded by bank Rs. 800.
vii. Interest on investment of a company collected by bank Rs. 300.
Required: Prepare Bank Reconciliation statement of a company.
Solution:
Bank reconciliation statement of…….
As on …………
Bank records Amount Rs.
Balance..................................................................................................................................................................................................
Add: Deposit in transit ..................................................................................................................................................................................... 13,400
1,750
Less: Outstanding ........................................................................................................................................................................................... 15,150
Adjusted balance 2,600
12,550
Company’s book records Amount
Balance................................................................................................................................................................................................. 12,500
Add: Customer directly deposited in bank ......................................................................................................................................................
Interest credited by bank....................................................................................................................................................................... 550
300
Less: Bank charge........................................................................................................................................................................................... 13,350
Adjusted balance 800
12,550
LQ-7.The Following information is provided by Kailali Company as on December 30, 2018.
i. Balance as per Kailali company book on December 30 is Rs. 28,000.
ii. Cheques of Rs. 9,600 were issued but cheques for Rs. 4,500 only were cashed.
88 Accounting-XI
iii. Service charge charged by bank Rs. 600.
iv. The amount deposited by customer is not included in bank statement is Rs. 6,750.
v. A bills receivable of Rs 3,000 and interest on receivable Rs. 300 collected by bank but not recorded in company book.
Required: Prepare Bank Reconciliation statement of a Kailali company on Dec. 30, 2018.
Solution:
Bank reconciliation statement of Kailali Co.
As on 30th Dec. 2018
Bank records Amount Rs.
Balance.................................................................................................................................................................................................. 29,050
Add: Deposit in transit ..................................................................................................................................................................................... 6,750
Less: Outstanding ........................................................................................................................................................................................... 35,800
5,100
Adjusted balance 30,700
Company’s book records Amount Rs.
Balance................................................................................................................................................................................................. 28,000
Add: Bills receivable collected......................................................................................................................................................................... 3,000
Interest collected ................................................................................................................................................................................... 300
Less: Bank charge........................................................................................................................................................................................... 31,300
600
Adjusted balance 30,700
LQ-8.Nawa Durga company’s bank statement show the balance on 31st chaitra 2074 is Rs.7,650 and its book shows the
balance on that date Rs. 4,810.
i. A deposit made by a company for Rs. 220 does not appear on bank statement.
ii. A customers cheque returned by bank for Rs. 340 marked NSF.
iii. Bank collect notes receivable from customer for Rs. 480 including interest of Rs. 80.
iv. Bank charge not recorded in company’s book Rs. 150
v. A direct deposit made by a customer in bank account for Rs. 570 is not shown in company’s book.
vi. Cheque were issued but not cashed yet are as follows;
Cheque No. 220 Rs. 500
Cheque No. 310 Rs 700
Cheque No. 390 Rs.1,300
Required: Prepare Bank Reconciliation statement of company.
Solution:
Bank reconciliation statement of Kailali Co.
As on 30th Dec. 2018
Bank records Amount
Balance 7,650
Add: Deposit in transit 220
Less: Outstanding 7,870
Adjusted balance 2,500
5,370
Company’s book records 480 Amount
Balance 570 4,810
Add: N/R collected with interest by bank 1,050
Customer directly deposited in bank
Less: NSF cheque....................................................................................................................................................................................340 5,860
Bank charge ...................................................................................................................................................................................150 490
Adjusted balance 5,370
LQ-9.The following particulars are provided to you: Amount
i. The balance shows by bank statement Rs. 15,000. 15,000
ii. Cheque deposited but not collected by bank Rs. 6,200. 6,200
iii. Bank reject customers cheque for Rs. 1,000 marked NSF. 21,200
iv. Outstanding cheque Rs. 7,500. 7,500
v. Bank service charge charged by bank but not recorded in company book Rs. 250. 13,700
vi. Bills receivable collected by bank Rs. 2,500.
vii. Interest on the preceding bill is Rs. 225.
Required: Bank reconciliation statement
Solution:
Bank reconciliation statement of …….
As on ……….
Bank records
Balance..................................................................................................................................................................................................
Add: Deposit in transit .............................................................................................................................................................................
Less: Outstanding ...........................................................................................................................................................................................
Adjusted balance
Modern Banking System and Bank Reconciliation Statement CHAPTER 9 89
Company’s book records Amount
Balance................................................................................................................................................................................................. 12,225
2,725
Add: B/R collected by bank ...................................................................................................................................................................2,500 1,250
Interest on B/R.................................................................................................................................................................................225 13,700
Less: NSF cheque .................................................................................................................................................................................1,000
Bank charge ...................................................................................................................................................................................250
Adjusted balance
Overdraft as per Cash Book
LQ-10.____ Following information are given :
i. On Asadh 31, cash book of a Company showed a overdraft balance of Rs.25,000
ii. A cheque of Rs.12,000 deposited on Asadh 25, has yet not been credited by bank
iii. Out of the cheque issued for Rs.14,000 on Asadh 23, only cheque of Rs.10,500 has been presented for payment.
iv. A customer has directly deposited Rs.5,000 into bank but not recorded in cash book.
v. Bank charge of Rs.150 debited only in pass book
vi. Interest in investment of Rs.250 credited only in pass book.
Required: Bank Reconciliation Statement
Solution,
Bank reconciliation statement
as on 31-2-…….
Particulars Amount (Rs.) Amount (Rs.)
Overdraft as per cash book ............................................................................................................................................................................. 25,000
Add: Cheque deposited but not yet credited by bank...........................................................................................................................1..2..,.0.00 12,150
Bank charge debited only in pass book. ...........................................................................................................................................1.50 37,150
Less: Cheque issued but not yet presented for payment .......................................................................................................................3..,.5.00 8,750
Customer directly deposited into bank but not in cash book .......................................................................................................5..,.0.00 28,400
Interest on investment credited only in the pass book.....................................................................................................................2.50
Overdraft as per pass book
Overdraft as per Pass Book
LQ-11.____ Consider the following information of Changu group as on 30th Ashadh 2062.
i. Overdraft as per pass book Rs.19,500.
ii. Interest of Rs.190 charged in pass book only.
iii. Rs.300 amount wrongly entered in debit side of cash book.
iv. Cheques amounting to Rs.5,500 deposited in the bank were not collected
v. Cheques drawn Rs.7,700 have not been presented.
vi. A cheque of Rs.2,200 paid into bank for collection but not collected.
vii. A bill payable Rs.3,200 was paid by bank but not entered in cash book.
Solution,
Bank Reconciliation Statement
as on 30th Ashadh, 2062
Overdraft as per pass book Particulars Amount (Rs.) Amount (Rs.)
(19,500)
Add: Interest charged in pass book only ...................................................................................................................................................1.90 11,390
Amount wrongly entered in debit side of cash book .........................................................................................................................3.00 (8,110)
Cheque deposited in the bank but not collected............................................................................................................................5..,.5.00 7,700
Cheque paid into bank for collection but not collected ..................................................................................................................2..,.2.00 (15,810)
A bill payable paid by bank but not entered in cash book .............................................................................................................3..,.2.00
Less: Cheques drawn but not presented .................................................................................................................................................7..,.7.00
Overdraft as per cash book
LQ-12.____ Consider the following cashbook and passbook of Damodar of Suppliers.
Dr. Cash Book (Bank column only) Cr.
Date Particulars JF Amount Date Particulars JF Amount
Jan. 1 To Balance b/d........................................................6..0..,.0..0..0................J..a..n....3.....B...y..M...r....H..e..m...a..n...t./.s..a../.c................................................................7..0..,.0..0..0.......................................................
7 To Bibek's a/c..........................................................4..0..,.0..0..0......................1..7.....B...y..R...e..n..t..a../.c..............................................................................3..8..,.0..0..0.......................................................
12 To Bijay's a/c ..........................................................2..5..,.0..0..0......................2..9.....B...y..b..a..l.a..n..c..e...c../.d.........................................................................1..7..,.0..0..0.......................................................
125,000 125,000
Feb. 1 To balance b/d 17,000
Bank Statement
Date Particulars Withdrawal (Dr.) Deposits (Cr.) Dr/Cr Balance (Rs.)
Jan. 1 Balance b/d ..........................................................................................................................................................C...r........................................60,000
7 Bibek a/c.................................................................................................................................................4..0..,.0..0..0.....C...r......................................1..00,000
12 Suman a/c (Direct collection) .................................................................................................................1..0..,.0..0..0.....C...r......................................1..10,000
17 Rent .................................................................................................................3..8..,.0..0..0............................................C...r........................................72,000
23 Interest a/c..............................................................................................................................................1..0..,.0..0..0.....C...r........................................82,000
25 Bank charge ......................................................................................................2..,.0..0..0............................................C...r........................................80,000
29 Telephone charge (as per instruction) ..............................................................8..,.0..0..0............................................C...r........................................72,000
Required: Bank reconciliation statement
90 Accounting-XI
Solution,
Bank Reconciliation Statement
as on .......
Particulars Amount (Rs.) Amount (Rs.)
72,000
Balance as per pass book ..............................................................................................................................................................................
35,000
Add: Mr. Bijay's cheque deposited into the bank but not credited. ......................................................................................................2..5..,.0.00 107,000
Bank charge charged by bank but not shown in cash book ..........................................................................................................2..,.0.00 90,000
17,000
Telephone charge paid by bank as per instruction ........................................................................................................................8..,.0.00
Less: Cheque issued to Mr. Hemant but not presented for payment ...................................................................................................7..0..,.0.00
Amount directly collection from Mr. Suman but not shown in cash book ....................................................................................1..0..,.0.00
Interest credited by bank but not shown in cash book.................................................................................................................1..0..,.0.00
Balance as per cash book ............................................................................................................................................................................
LQ-13.____ From the following extracts from the cash book and the pass book for the month of Baishakh 2074. Prepare the
bank reconciliation statement as on 31st Baishakh 2074.
Dr. Cash Book Cr.
Date Particulars JF Amount Date Particulars JF Amount
Bai. 1 To Balance b/d 50,000 Bai. 3 By Salaries a/c 28,000
Bai. 5 To Hemant's a/c 20,000 Bai. 8 By Rent a/c 10,000
Bai. 10 To Dividend a/c 10,000 Bai. 12 By Chandra's a/c 32,000
Bai. 14 To Cash a/c 30,000 Bai. 20 By Kamal's a/c 24,000
Bai. 20 To Salina's a/c 18,000 Bai. 25 By Insurance a/c 8,000
Bai. 31 By Balance c/d 26,000
128,000 128,000
Date Particulars Bank Pass Book Deposits (Cr.) Dr/Cr Balance (Rs.)
2074 Bai. 1 Balance b/d Withdrawal (Dr.) 50,000
Cr. 70,000
Bai. 8 Hemant 10,000 20,000 Cr. Cr. 60,000
Bai. 10 Rent 32,000 Cr. Cr. 28,000
Bai. 14 Chandra Cr. 58,000
Bai. 15 Cash 400 30,000 57,600
Bai. 31 Bank charges
Required: Bank reconciliation Statement
Solution,
Bank Reconciliation Statement
As on 31st Baishakh 2074
Particulars Details Amount
57,600
Balance as per pass book ...............................................................................................................................................................................
Add: Dividend received and sent for collection but not collected by bank ..............................................................................................1..0.,000 28,400
Salina's cheque deposited into bank but not credited ....................................................................................................................1..8.,000 86,000
Bank charges debited by bank ........................................................................................................................................................... 400
60,000
Less: Cheque issued but not presented 26,000
Salaries ............................................................................................................................................................................................2..8.,000
Kamal...............................................................................................................................................................................................2..4.,000
Insurance ..........................................................................................................................................................................................8.,000
Balance as per cash book
VERY SHORT ANSWER QUESTIONS
VQ-1._____ The balance sheet of A Ltd. showed the following accounting information:
Capital ......................................................................................... Rs. 550,000 Closing stock ..................................................................................Rs.45,000
Creditors ..................................................................................... Rs. 194,500 Reserve fund ...............................................................................Rs. 200,000
Debtors ........................................................................................ Rs. 225,000 Land and building.........................................................................Rs. 450,000
Plant............................................................................................. Rs. 200,000 Cash at bank ..................................................................................Rs 24,500
Required: Opening entry
Solution,
Opening Entries
Date Particulars LF Debit (Rs.) Credit (Rs.)
225,000
Debtors A/c .............................................................................................................................................. Dr. 200.000 194,500
Plant A/c .................................................................................................................................................. Dr. 45,000 200,000
Closing stock A/c ..................................................................................................................................... Dr. 450,000 550,000
Land and building A/c..............................................................................................................................Dr. 24,500 944,5000
Cash at bank A/c ..................................................................................................................................... Dr.
To Creditors A/c 944,500
To Reserve fund A/c
To Capital A/c (Balancing Figure)
(Being assets, liabilities and capital recorded in the opening entry)
Total
VQ-2._____ The balance sheet of A Ltd. showed the following accounting information:
Bills payable ............................................................................. Rs.25,500 Reserve fund .........................................................................Rs. 150,000
Debtors .................................................................................. Rs. 215,000 Land and building...................................................................Rs. 350,000
Plant .................................................................................. Rs. 250,000 Cash in hand ............................................................................Rs 24,500
Creditors ............................................................................... Rs. 175,000 Closing stock ............................................................................Rs.55,000
Required: Opening entry showing capital account
Solution,
Opening Entries
Date Particulars LF Debit (Rs.) Credit (Rs.)
Debtors A/c.............................................................................................................................................. Dr. 215,000
Plant A/c .................................................................................................................................................. Dr. 250.000 25,500
Land and building A/c.............................................................................................................................. Dr. 350,000 175,000
Cash in bank A/c ................................................................................................................................... Dr. 24,500 150,000
Closing stock A/c.....................................................................................................................................Dr. 55,000 544,000
To Bills payable 894,500 894,500
To Creditors A/c
To Reserve fund A/c
To Capital A/c (balancing figure)
(Being assets, liabilities and capital recorded in the opening entry)
Total
VQ-3._____ The balance sheet of Himal Company Ltd. showed the following accounting information.
Trading Account
Dr. For the year ending Chaitra 31, 2073 Cr.
Particulars Amount Rs. Particulars Amount Rs.
To Opening stock ........................................................................................5..,.0..0..0......B..y...S...a..l.e..s...........................................................1..2..0..,.0..0..0....
To Purchase .........................................................20,000 Less: Sales Return ...........................................1,000 119,000
Less: Purchase return .............................................1000 19,000 By Closing stock...................................................................................5..,.0...0..0......................................................
To Wages .................................................................................................1..0..,.0..0..0.............................................................................................
To Gross profit c/d ....................................................................................9..0..,.0..0..0.............................................................................................
124,000 124,000
Required: Closing entries LF Debit Rs. Credit Rs.
Solution, 34,000 5000
Closing Entries 19,000
Date Particulars 10,000
2073-12-31 Trading A/c ..........................................................................................................................Dr.
To Opening stock A/c
To Purchase A/c
To Wages A/c
(Being transfer of opening stock and direct expenses to Trading a/c)
92 Accounting-XI
Purchase returns A/c ...........................................................................................................Dr. 1,000 1,000
To Purchase A/c 1,000 1,000
119000 124000
(Being purchase return A/c transferred to purchase A/c) 5000 90,000
90,000
Sales A/c ..............................................................................................................................Dr. Credit Rs.
To Sales returns A/c 4000
8,000
(Being sales returns a/c transferred to sales a/c) 3000
Sales A/c ..............................................................................................................................Dr. Credit (Rs.)
Closing A/c ...........................................................................................................................Dr. 20,000
10,000
To Trading A/c 20,000
(Being sales and closing stock transferred to trading account) 15,000
Trading A/c ..........................................................................................................................Dr.
Credit (Rs.)
To profit and loss A/c 200,000
(Being gross profit transferred to profit and loss A/c) 100,000
VQ-4._____ The following information is given below:
i. Outstanding wages Rs. 4,000
ii. Depreciation on furniture Rs. 8,000
iii. Prepaid rent Rs. 3000
Required: Adjustment entries
Solution,
Adjustment entries
Date Particulars LF Debit Rs.
4000
i. Wages A/c .............................................................................................................................................. Dr.
To Outstanding wages 8,000
(Being wags due)
3000
ii. Depreciation A/c ..................................................................................................................................... Dr.
To Furniture A/c
(Being depreciation on furniture written off)
iii. Prepaid Rent A/c .................................................................................................................................... Dr.
To Rent A/c
(Being prepaid rent adjusted)
VQ-5._____ Consider the following information
a. Gross profit Rs.20,000 transferred to profit and loss account
b. Wages Rs.10,000 transferred to plant and machinery account
c. Hemant's A/c of Rs.20,000 transferred to Biraj's A/c
d. Net profit Rs.15,000 transferred to general resource account.
Required: Transfer entries.
Solution,
Transfer Entries
Date Particulars LF Debit (Rs.)
a. Trading a/c............................................................................................................................Dr. 20,000
To profit and loss a/c 10,000
(Being gross profit transferred to profit and loss a/c)
20,000
b. Plant and machinery A/c .....................................................................................................Dr.
To wages A/c 15,000
(Being wages transferred to plant and machinery A/c)
c. Biraj's A/c .............................................................................................................................Dr.
To Hemant's A/c
(Being Hemant's a/c transferred to Biraj's a/c)
d. Profit and loss A/c ................................................................................................................Dr.
To general reserve A/c
(Being profit and loss transferred to general reserve account)
VQ-6.. ____ The following information is given below:
i. Plant costing Rs.200,000 purchased from Himal company on credit
ii. Old furniture costing Rs.100,000 sold to Bajra company on credit
Required: Entries for purchase and sale of fixed assets on credit
Solution,
Adjustment entries
Date Particulars LF Debit (Rs.)
200,000
i. Plan A/c .................................................................................................................................................. Dr.
To Himal company 100,000
(Being plant purchase from Himal company on credit)
ii. Bajra company A/c ................................................................................................................................. Dr.
To old furniture A/c
(Being sale of old furniture on credit)
Journal Proper CHAPTER 10 93
SHORT ANSWER QUESTIONS
SQ-1. ____ The following transactions of Amit Enterprises are given to you:
Jan. 10 2016 Old furniture purchased from Hari on credit for Rs.1,000
Jan. 15 2016 Cash received from Amar wrongly credited to Amir account amounted to Rs.2,000
Jan. 25 2016 Rent due to Landlord Rs.500
Jan. 29 2016 Salary due to clerks Rs.1,000
Jan. 30 2016 Charged depreciation on furniture Rs.5,000
Required: Journal proper
Solution,
Adjustment Entries
Date Particulars LF Debit Rs. Credit Rs.
2016 Jan. 10 Furniture A/c ...................................................................................................................... Dr. 1,000
1,000
To Hari A/c
(Being old furniture purchased from Hari on credit)
2016 Jan. 15 Amir A/c ............................................................................................................................ ..Dr. 2,000
To Amar A/c 2,000
(Being cash received from Amar credited to Amir account is rectified )
2016 Jan. 25 Rent A/c ............................................................................................................................. .Dr. 500
To Rent due A/c 500
(Being rent due to payable to landlord) 1,000
2016 Jan. 29 Salary A/c ........................................................................................................................ ...Dr.
To salary due A//c 1,000
(Being salary due to clerk )
2016 Jan. 30 Depreciation A/c ................................................................................................................. Dr. 5,000 5,000
To Furniture A/c
(Being depreciation charged on furniture)
SQ-2. ____ The following is the trading and profit & loss account of B Ltd. for the year ended 31st December:
Trading and Profit & Loss account
For the year ended 31 December
Particulars Amount Rs. Particulars Amount Rs.
To Opening stock .....................................................................................8..5..,.0..0..0......B..y...S...a..le..s..............................................................................................6..5...0..,0...0..0......................................................
To Purchase ...........................................................................................3..2..5..,.0..0..0......B..y...C...l.o..s.i.n..g...s..t.o..c..k...................................................................................7..5..,.0..0...0......................................................
To Wages .................................................................................................3..5..,.0..0..0.............................................................................................
To Carriage ...............................................................................................2..0..,.0..0..0.............................................................................................
To Gross profit c/d ...................................................................................2..6..0..,.0..0..0.............................................................................................
725,000 725,000
To salary ..................................................................................................1..5..5..,.0..0..0......B..y...G...r.o..s..s...p..r.o..f.i.t..b../.d..............................................................................2..6..0...,0...0..0......................................................
To advertisement ......................................................................................1..4..,.0..0..0......B..y...C...o..m...m...i.s..s.i.o..n...e..a..r..n..e..d..........................................................................7..,.5...0..0......................................................
To carriage outward...................................................................................1..2..,.0..0..0......B..y...D...i.v.i.d..e..n..d...r..e..c.e..i.v..e..d............................................................................1..5..,.0..0...0......................................................
To depreciation .........................................................................................1..5..,.0..0..0.............................................................................................
To printing and stationery............................................................................4..,.5..0..0.............................................................................................
To rent ......................................................................................................2..7..,.5..0..0.............................................................................................
To Net Profit c/d ........................................................................................5..4..,.5..0..0.............................................................................................
282,500 282,500
Required: Closing entries in the book of B Ltd. LF Debit Rs. Credit Rs.
465,000 85,000
Solution, 325,000
650,000 35,000
Closing Entries 75,000 20,000
Date Particulars 260,000
228,000 725,000
a. Trading A/c ..............................................................................................................................................Dr. 260,000
To opening stock A/c 155,000
To Purchases A/c 14,000
To wages A/c 12,000
To carriage A/c 15,000
(Being above accounts transferred to trading account) 4,500
b. Sales A/c ..................................................................................................................................................Dr. 27,500
Closing Stock A/c.....................................................................................................................................Dr.
To Trading A/c
(Being above accounts transferred to trading account)
c. Trading A/c...............................................................................................................................................Dr.
To Profit and loss A/c
(Being gross profit transferred to profit and loss account)
d. Profit and Loss A/c...................................................................................................................................Dr.
To Salary A//c
To Advertisement A/c
To Carriage outward A/c
To Depreciation A/c
To Printing and stationery A/c
To Rent A/c
(Being above accounts transferred to P/L account)
94 Accounting-XI
e. Commission earned A/c...........................................................................................................................Dr. 7,500 22,500
Dividend received A/c ..............................................................................................................................Dr. 15,000 54,500
To Profit and Loss A/c 54,500
(Being indirect incomes transferred to P/L account)
f. Profit and Loss A/c...................................................................................................................................Dr.
To Capital A/c
(Being net profit transferred to capital account)
SQ-3. ____ Record the following transactions in the form of journal proper at the end of accounting period i.e. 31st. Dec.
i. Out of the total advertising expenses of Rs 4000 half was paid for coming year.
ii. Interest on Investment accrued was Rs 900
iii. Advance received rent earned was Rs 500
iv. Furniture costing Rs 40,000 is to be depreciate a 10%
v. Mr. Ramesh Kumar, a debtor for Rs. 5000 was written of as bad debt last year, but at the end of current year, he paid
Rs 6,400 with apologies for the delay
Required: Adjustment Entries
Solution,
Journal entries
Date Particulars LF Debit Rs. Credit Rs.
i. Prepaid advertising expenses A/c ..........................................................................................................Dr. 2,000 2,000
To Advertisement expenses A/c
(Being half of advertisement expenses paid for coming year) 900
900
ii. Interest on investment accrued A/c ....................................... ................................................................Dr.
To Interest on investment A/c 500
500
(Being interest on investment accrued)
4,000 4,000
iii. Advance received rent A/c .................................... .................................................................................Dr.
To Rent earned A/c 6,400 5,000
1,400
(Being advanced received rent earned during the year)
iv. Depreciation A/c .....................................................................................................................................Dr.
To Furniture A/c
(Being furniture costing Rs.40,000 depreciated @ 10%)
v. Cash A/c...................................................................................................................................................Dr.
To Bad debts recovered A/c
To Profit and loss A/c
(Being bad debts written off earlier recovered from Mr. Ramesh Kumar)
SQ-4. ____ Give entries for the following in Journal proper: LF Debit Rs. Credit Rs.
i. Purchased furniture from Hari Khadka for Rs. 20,000 20,000 20,000
ii. Rs 600 owing by S.K. Sukla written off as bad debt 600
600
iii. Goods worth Rs. 500 were taken away by proprietor for personal use
500
iv. Prepaid insurance expired to the extent of Rs 1200 500
v. Depreciation is charged on plant costing Rs 60,000 a 10% p. a. 1,200 1,200
vi. Goods destroyed by fire costing Rs.10,000, insurance admitted claim only 50%. 6,000 6,000
Required: Adjustment Entries 5,000 10,000
Solution, 5,000
Journal entries
Date Particulars
i. Furniture A/c .................................................................................................................... ..Dr.
To Hari Khadka A/c
(Being furniture purchased from Hari Khadka on credit)
ii. Bad debts A/c .................................................................................................................. .Dr.
To S K Sukla A/c
(Being amount owing by S K Sukla written as bad debts)
iii. Drawing A/c ...................................................................................................................... Dr.
To Purchase (goods) A/c
(Being goods withdrawn by proprietor for personal use)
iv. Prepaid rent expired A/c.............................................................................................. ......Dr.
To Prepaid rent A/c
(Being prepaid insurance expired )
v. Depreciation A/c ................................................................................................................ Dr.
To Plant A/c
(Being depreciation provided on plant of Rs. 60,000 @ 10% p.a.)
vi. Insurance Company( cash) A/c.................................................................................. .......Dr.
Profit and loss A/c.............................................................................................................. Dr.
To Purchase( Goods) A/c
(Being goods destroyed by fire out of which 50% is admitted by insurance company)
Journal Proper CHAPTER 10 95
SQ-5. ____ An unadjusted trail balance of a company is given below:
Particulars Debit Rs. Credit Rs.
2,00,000
Capital.............................................................................................................................................................................................................. 3,00,000
Sales................................................................................................................................................................................................................ 10,000
Purchases..............................................................................................................................................................................................1..,.5..0..,.0..00
Purchase return............................................................................................................................................................................................... 1,80,000
Sales return ..............................................................................................................................................................................................2..0..,.0..00
Plant & machinery .................................................................................................................................................................................1..,.3..0..,.0..00 6,90,000
Wages.......................................................................................................................................................................................................7..0..,.0..00
Debtors .....................................................................................................................................................................................................3..0..,.0..00
Creditors ..........................................................................................................................................................................................................
Salaries.....................................................................................................................................................................................................9..0..,.0..00
Furniture ................................................................................................................................................................................................1..,.2..0..,.0..00
Cash at bank ............................................................................................................................................................................................7..3..,.0..00
Insurance ....................................................................................................................................................................................................7..,.0..00
Total 6,90,000
Adjustments:
i. Outstanding wages: Rs.10,000 ii. Depreciation: Plant & furniture 5%
iii. Prepaid insurance: Rs.2,000
Required: Adjusted Trail Balance
Solution,
Adjusted Trial Balance
SN Account Title Unadjusted Trial Balance Adjustments Adjusted Trial Balance
Dr. Cr. Dr. Cr. Dr. Cr.
Capital......................................................................................................................2..0..0..,.0..0..0.............................................................................- 200,000
Sales........................................................................................................................3..0..0..,.0..0..0.............................................................................- 300,000
Purchases.........................................................................................1..5..0..,.0..0..0.........................................................................................1..5..0..,.0..0..0 -
Purchase return.........................................................................................................1..0..,.0..0..0.............................................................................- 10,000
Sales return ........................................................................................2..0..,.0..0..0...........................................................................................2..0..,.0..0..0 -
Plant & machinery ............................................................................1..3..0..,.0...0..0...............................................................6..,.5..0..0..................1..2..3..,.5..0..0
Wages.................................................................................................7..0..,.0..0..0...................................1..0..,.0..0..0...............................................8..0..,.0..0..0
Debtors ...............................................................................................3..0..,.0..0..0...........................................................................................3..0..,.0..0..0 -
Creditors ..................................................................................................................1..8..0..,.0..0..0.............................................................................- 180,000
Salaries...............................................................................................9..0..,.0..0..0...........................................................................................9..0..,.0..0..0 -
Furniture ...........................................................................................1..2..0..,.0..0..0................................................................6..,.0..0..0..................1..1..4..,.0..0..0
Cash at bank ......................................................................................7..3..,.0..0..0...........................................................................................7..3..,.0..0..0 -
Insurance ..............................................................................................7..,.0..0..0................................................................2..,.0..0..0......................5..,.0..0..0
Adjustments: -
Outstanding wages....................................................................................................................................................1..0..,.0..0..0............................. 10,000
Depreciation on plant (5%)...............................................................................................................6..,.5..0..0.................................................6..,.5..0..0
Depreciation on furniture (5%) .........................................................................................................6..,.0..0..0.................................................6..,.0..0..0
Prepaid insurance ............................................................................................................................2..,.0..0..0.................................................2..,.0..0..0
Total 690,000 690,000 24,500 24,500 700,000 700,000
SQ-6. ____ An unadjusted trial balance of a concern is given below:
Particulars Debit Rs. Credit Rs.
Bank..........................................................................................................................................................................................................2..0..,.0..00
Purchases.................................................................................................................................................................................................4..6..,.0..00 90,000
Debtors .....................................................................................................................................................................................................2..2..,.0..00 60,000
Furniture ...................................................................................................................................................................................................5..0..,.0..00 40,000
Salary........................................................................................................................................................................................................4..0..,.0..00 1,90,000
Rent ..........................................................................................................................................................................................................1..2..,.0..00
Sales................................................................................................................................................................................................................
Capital..............................................................................................................................................................................................................
Creditors ..........................................................................................................................................................................................................
Total 1,90,000
Additional information:
i. Outstanding salary Rs. 3,000 ii. Depreciation on furniture to be provided at 10%
iii. Prepaid rent Rs. 2,000 iv. Provision for bad and doubtful debt at 5%
Required: Adjusted Trial Balance
Solution,
Adjusted Trial Balance
SN Account Title Unadjusted Trial Balance Adjustments Adjusted Trial Balance
Dr. Cr. Dr. Cr. Dr. Cr.
Bank....................................................................................................2..0..,.0..0..0...........................................................................................2..0..,.0..0..0 -
Purchases...........................................................................................4..6..,.0..0..0...........................................................................................4..6..,.0..0..0 -
Debtors ...............................................................................................2..2..,.0..0..0................................................................1..,.1..0..0....................2..0..,.9..0..0
Furniture .............................................................................................5..0..,.0..0..0................................................................5..,.0..0..0....................4..5..,.0..0..0
Salary..................................................................................................4..0..,.0..0..0.....................................3..,.0..0..0...............................................4..3..,.0..0..0
Rent ....................................................................................................1..2..,.0..0..0................................................................2..,.0..0..0....................1..0..,.0..0..0
96 Accounting-XI
Sales..........................................................................................................................9..0..,.0..0..0......................-.......................................................- 90,000
Capital........................................................................................................................6..0..,.0..0..0.............................................................................- 60,000
Creditors ....................................................................................................................4..0..,.0..0..0.............................................................................- 40,000
Adjustments: 3,000
Outstanding salary ......................................................................................................................................................3..,.0..0..0.............................
Depreciation on furniture (10%) .......................................................................................................5..,.0..0..0.................................................5..,.0..0..0 193,000
Prepaid rent......................................................................................................................................2..,.0..0..0.................................................2..,.0..0..0
Provision for bad & doubtful debt (5%) ............................................................................................1..,.1..0..0.................................................1..,.1..0..0
Total 190,000 190,000 11,100 11,100 193,000
SQ-7. ____ The following is the unadjusted trial balance of C Ltd. for the year ended Chaitra 2073:
Particulars Debit (Rs.) Credit (Rs.)
Capital ...........................................................................................................................................................................................................- 250,000
Sales ............................................................................................................................................................................................................- 600,000
Purchases............................................................................................................................................................................................3..0..0..,.0..0..0 -
Fixed assets .......................................................................................................................................................................................4..5..0..,.0..0..0 -
Wages ...................................................................................................................................................................................................4..0..,.0..0..0 -
Debtors ...............................................................................................................................................................................................1..2..0..,.0..0..0 -
Creditors ........................................................................................................................................................................................................- 146,000
Salaries .................................................................................................................................................................................................3..0..,.0..0..0 -
Cast at bank ..........................................................................................................................................................................................2..4..,.0..0..0 -
Insurance ................................................................................................................................................................................................8..,.0..0..0 -
Rent ...................................................................................................................................................................................................2..4..,.0..0..0 -
Total 996,000 996,000
Adjustments:
i. Outstanding wages Rs. 10,000 ii Depreciation on fixed assets 5%
iii. Prepaid insurance Rs. 4,000 iv. Closing stock Rs. 15,000
Required: Adjusted Trial Balance
Solution,
Adjusted Trial balance
Particulars Unadjusted trial balance Adjustment Adjusted trial balance
Dr. Cr. Dr. Cr. Dr. Cr.
Capital ..........................................................................-.................2..5..0..,.0..0..0.....................................-...................................-.............................- 250,000
Sales .............................................................................-.................6..0..0..,.0..0..0.....................................-...................................-.............................- 600,000
Purchases..........................................................3...0..0..,.0..0..0.............................-....................................-...................................-..................3..0..0..,.0..0..0 -
Fixed assets .....................................................4...5..0..,.0..0..0.............................-....................................-.........................2..2..,.5..0..0...................4..2..7..,.5..0..0 -
Wages .................................................................4..0...,.0..0..0.............................-..........................1..0..,.0..0..0....................................-....................5..0..,.0..0..0 -
Debtors .............................................................1...2..0..,.0..0..0.............................-....................................-...................................-..................1..2..0..,.0..0..0 -
Creditors .......................................................................-.................1..4..6..,.0..0..0.....................................-...................................-.............................- 146,000
Salaries ...............................................................3..0...,.0..0..0.............................-....................................-...................................-....................3..0..,.0..0..0 -
Cast at bank ........................................................2...4..,.0..0..0.............................-....................................-...................................-....................2..4..,.0..0..0 -
Insurance ...............................................................8..,.0..0..0.............................-....................................-...........................4..,.0..0..0.......................4..,.0..0..0 -
Rent ....................................................................2..4...,.0..0..0.............................-....................................-...................................-....................2..4..,.0..0..0 -
Adjustments --- -
1. Outstanding wages -- - 10,000 - 10,000
2. Depreciation on ....................................................................................-....................................-...................................-........ Depreciation -
fixed assets @ 5% - 22,500 - 22,500
3. Prepaid insurance .....................................................-.............................-............................4..,.0..0..0................................... -Prepaid insura4n,0c0e0 -
4. Closing stock.............................................................-.............................-..........................2..5..,.0..0..0..........................2..5..,.0..0..0........Closing2s5to,0c0k0 25,000
Total 996,000 996,000 61,500 61,500 10,31,000 10,31,000
SQ-8. ____ The following is the unadjusted trial balance of D Ltd. for the year ended December 2016:
Particulars Debit Rs. Credit Rs.
650,000
Sales ............................................................................................................................................................................................................- -
Purchases ...........................................................................................................................................................................................4..2..2..,.0..0..0 -
Plant .................................................................................................................................................................................................2..5..0..,.0..0..0 -
Furniture .............................................................................................................................................................................................1..0..0..,.0..0..0 -
Wages ...................................................................................................................................................................................................2..5..,.0..0..0 -
Debtors ...............................................................................................................................................................................................2..2..0..,.0..0..0 175,000
Creditors ........................................................................................................................................................................................................- -
Salaries .................................................................................................................................................................................................8..0..,.0..0..0 -
Cash at bank .........................................................................................................................................................................................3..5..,.0..0..0 -
Insurance ..............................................................................................................................................................................................1..2..,.0..0..0 -
Rent ...................................................................................................................................................................................................3..6..,.0..0..0 350,000
Capital ...........................................................................................................................................................................................................- 5,000
Commission earned ......................................................................................................................................................................................-
11,80,000
Total 11,80,000
Adjustments: ii. Depreciation on plant 5% and furniture 10%
i. Outstanding salary Rs. 10,000 iv. Unearned commission Rs.2,000
iii. Prepaid wages Rs. 4,000
Required: Adjusted Trial Balance
Journal Proper CHAPTER 10 97
Solution,
Adjusted Trial balance
Particulars Unadjusted trial balance Adjustment Adjusted trial balance
Dr. Cr. Dr. Cr. Dr. Cr.
Sales ..................................................................................-..................6..5..0..,.0..0..0..................................-..................................-........................... - 650,000
Purchases ..............................................................4..2..2..,.0..0..0...............................-.................................-..................................-.................4..2..2..,.0..0.0 -
Plant ......................................................................2..5..0..,.0..0..0...............................-.................................-........................1..2..,.5..0..0..................2..3..7..,.5..0.0 -
Furniture ................................................................1..0..0..,.0..0..0...............................-.................................-........................1..0..,.0..0..0....................9..0..,.0..0. 0 -
Wages ......................................................................2..5..,.0..0..0...............................-.................................-..........................4..,.0..0..0....................2..1..,.0..0. 0 -
Debtors ..................................................................2..2..0..,.0..0..0...............................-.................................-..................................-.................2..2..0..,.0..0.0 -
Creditors ............................................................................-..................1..7..5..,.0..0..0..................................-..................................-........................... - 175,000
Salaries ....................................................................8..0..,.0..0..0...............................-.......................1..0..,.0..0..0...................................-...................9..0..,.0..0. 0 -
Cast at bank .............................................................3..5..,.0..0..0...............................-.................................-..................................-...................3..5..,.0..0.0 -
Insurance .................................................................1..2..,.0..0..0...............................-.................................-..................................-...................1..2..,.0..0. 0 -
Rent .........................................................................3..6..,.0..0..0...............................-.................................-..................................-...................3..6..,.0..0. 0 -
Capital ...............................................................................-..................3..5..0..,.0..0..0..................................-..................................-........................... - 350,000
Commission earned ..........................................................-......................5..,.0..0..0..........................2..,.0..0..0...................................-........................... - 3,000
Adjustments - - 10,000 -
1. Outstanding salary - - - - 10,000
2. depreciation on...............................................................-..............................-.................................-..................................-........................... - Deprecia- tion
Plant @ 5% - - 12,500 - 12,500 -
Furniture @ 10% - - 10,000 - 10,000 -
3. Prepaid wages................................................................-..............................-.........................4..,.0..0..0...........................2..,.0..0..0....Prepaid wa4g,e0s00 -
4. Unearned comm.. -- - - 2,000
Total 11,80,000 11,80,000 38,500 38,500 11,90,000 11,90,000
SQ-9. ____ An unadjusted Trial Balance of a company is given below:
Particulars Debit Balance Rs. Credit Balance Rs.
Capital.............................................................................................................................................................................................................. 2,00,000
Purchases.............................................................................................................................................................................3..,.0..0..,.0..0..0...............
Sales................................................................................................................................................................................................................ 5,00,000
Machinery .............................................................................................................................................................................1..,.5..0..,.0..0..0...............
Furniture ..................................................................................................................................................................................3..0..,.0..0..0...............
Wages paid..............................................................................................................................................................................5..0..,.0..0..0...............
Creditors .......................................................................................................................................................................................................... 1,50,000
Debtors ....................................................................................................................................................................................4..0..,.0..0..0...............
Salaries paid............................................................................................................................................................................8..0..,.0..0..0...............
Bank balance........................................................................................................................................................................2..,.0..0..,.0..0..0...............
Adjustment:
i. Outstanding salaries Rs.20,000 ii. Advance wages paid Rs.1,000
iii. Depreciation on: (i) Machinery 10% (ii) Furniture 5%
Required: Adjusted Trial Balance
Solution,
Adjusted trial Balance
S. No. Account Title Unadjusted Trial Balance Adjustment Adjusted Trial
Dr. Cr. Dr. Cr. Dr. Cr.
1 Capital ........................................................................-.............2..,.0..0..,.0..0..0...........................-...............................-..............................-.................... 2,00,000
2 Purchase.......................................................3..,.0..0..,.0..0..0...........................-..........................-...............................-.................3..,.0..0...,.0..0..0.................... -
3 Sales ..........................................................................-.............5..,.0..0..,.0..0..0...........................-...............................-..............................-.................... 5,00,000
4 Machinery......................................................1..,.5..0..,.0..0..0...........................-..........................-.....................1..5..,.0..0..0..................1..,.3..5...,.0..0..0.................... -
5 Furniture...........................................................3..0..,.0..0..0...........................-..........................-.......................1..,.5..0..0....................2..8...,.,.5..0..0.................... -
6 Wages .............................................................5..0..,.0..0..0...........................-..........................-.......................1..,.0..0..0.....................4..9...,.0..0..0.................... -
7 Creditors.....................................................................-.............1..,.5..0..,.0..0..0...........................-...............................-..............................-.................... 1,50,000
8 Debtors.............................................................4..0..,.0..0..0...........................-..........................-...............................-....................4..0...,.0..0..0.................... -
9 Salaries ...........................................................8..0..,.0..0..0...........................-................2..0..,.0..0..0................................-.................1..,.0..0...,.0..0..0.................... -
10 Bank balance ................................................2..,.0..0..,.0..0..0...........................-..........................-...............................-.................2..,.0..0...,.0..0..0.................... -
Adjustments:
11 Outstanding salaries ......................................................................................................-.....................2..0..,.0..0..0...............................-.................... 20,000
12 Prepaid wages .......................................................................................................1..,.0..0..0................................-.......................1..,.0..0..0.................... -
13 Dep. on machinery...............................................................................................1..5..,.0..0..0................................-....................1..5...,.0..0..0.................... -
14 Dep. on furniture ....................................................................................................1..,.5..0..0................................-.......................1..,.5..0..0.................... -
Total 8,50,000 8,50,000 37,500 37,500 8,70,000 8,70,000
SQ-10. ___ The following is the unadjusted trial balance of V. Ltd. for the year ended December 2016:
Particulars Debit (Rs.) Credit (Rs.)
-
Purchases ............................................................................................................................................................................................3..2..2..,.0..0..0 -
Plant .....................................................................................................................................................................................................2..0..0..,.0..0..0 -
Furniture ..............................................................................................................................................................................................1..0..0..,.0..0..0 -
Wages.....................................................................................................................................................................................................2..5..,.0..0..0 -
Debtors ................................................................................................................................................................................................1..2..0..,.0..0..0
Creditors .........................................................................................................................................................................................................- 75,000
98 Accounting-XI
Sales ...............................................................................................................................................................................................................- 550,000
Salaries ..................................................................................................................................................................................................8..0..,.0..0..0 -
Cast at bank ...........................................................................................................................................................................................3..5..,.0..0..0 -
Insurance ...............................................................................................................................................................................................1..2..,.0..0..0 -
Rent .......................................................................................................................................................................................................3..6..,.0..0..0 -
Capital .............................................................................................................................................................................................................-
Interest received .............................................................................................................................................................................................- 300,000
5,000
930,000
930,000
Adjustments:
i. Outstanding salary Rs. 5,000 ii. Depreciation on Plant 10% and furniture 5%
iii. Prepaid wages Rs. 4,000 iv. Interest receivable Rs.6,000
Required: Adjusted Trial Balance
Solution,
Adjusted Trial balance
Particulars Unadjusted trial balance Adjustment Adjusted trial balance
Dr. Cr. Dr. Cr. Dr. Cr.
Purchases ..............................................................3..2..2..,.0..0..0.............................-...................................-..................................-..................3..2..2..,.0..0.0 -
Plant .......................................................................2..0..0..,.0..0..0.............................-...................................-........................2..0..,.0..0..0...................1..8..0..,.0..0.0 -
Furniture ................................................................1..0..0..,.0..0..0.............................-...................................-..........................5..,.0..0..0.....................9..5..,.0..0.0 -
Wages.......................................................................2..5..,.0..0..0.............................-...................................-..........................4..,.0..0..0.....................2..1..,.0..0.0 -
Debtors ..................................................................1..2..0..,.0..0..0.............................-...................................-..................................-..................1..2..0..,.0..0.0 -
Creditors ............................................................................-..................7..5..,.0..0..0....................................-..................................-............................ - 75,000
Sales ..................................................................................-................5..5..0..,.0..0..0....................................-..................................-............................ - 550,000
Salaries ....................................................................8..0..,.0..0..0.............................-...........................5..,.0..0..0...................................-....................8..5..,.0..0.0 -
Cast at bank .............................................................3..5..,.0..0..0.............................-...................................-..................................-....................3..5..,.0..0.0 -
Insurance .................................................................1..2..,.0..0..0.............................-...................................-..................................-....................1..2..,.0..0.0 -
Rent .........................................................................3..6..,.0..0..0.............................-...................................-..................................-....................3..6..,.0..0.0 -
Capital ................................................................................-................3..0..0..,.0..0..0....................................-.............................................................. - 300,000
Interest received Adjustments ...........................................-....................5..,.0..0..0....................................-..........................6..,.0..0..0............................. - 11,000
Adjustment - -- -
1. Outstanding salary................................................................................................................................................5..,.0..0..0............................. - 5,000
2. Depreciation................................................................................................................................-..................................-............................ - -
plant @ 10% .....................................................................................................................2..0..,.0..0..0...................................-....................2..0..,.0..0.0 -
furniture @ 5%....................................................................................................................5..,.0..0..0...................................-......................5..,.0..0.0 -
3. Prepaid wages....................................................................................................................4..,.0..0..0...................................-......................4..,.0..0.0 -
4. Interest receivable ..............................................................................................................6..,.0..0..0...................................-......................6..,.0..0.0 -
Total 930,000 930,000 40,000 40,000 941,000 941,000
LONG ANSWER QUESTIONS
LQ-1 _____ The following information are given:
i. Business started with cash Rs. 1,000,000.
ii. Cash deposited into bank Rs. 500,000.
iii. Machinery purchased by issuing cheque Rs. 200,000.
iv. Goods purchased on credit from X Ltd. Rs. 100,000.
v. Sold to XYZ Co. on credit Rs. 200,000.
vi. Rent paid Rs. 40,000 by cheque.
vii. Salary paid Rs. 50,000.
viii. Electricity bill paid Rs. 10,000 by cheque.
ix. Cash withdraw from bank for business purpose Rs. 30,000.
x. Cheque received from XYZ Rs. 195,000 in full settlement of account.
xi. Cheque paid to X Ltd. Rs. 98,000 for full settlement.
Additional Information
i. Rent paid in advanced Rs. 10,000 ii. Outstanding salary Rs. 20,000
iii. Depreciation charged on machinery @ 10% p.a. iv. Create reserve and surplus for Rs. 5,000.
Required: a. Adjusted entries b. Adjusted Trial Balance
Solution,
Journal Entries
Date Particulars LF Debit (Rs.) Credit (Rs.)
i. Advanced rent a/c .................................................................................................................................. Dr. 10,000
To Rent a/c 10,000
(Being rent paid in advance.)
ii. Salary a/c................................................................................................................................................. Dr. 20,000
To Outstanding salary a/c 20,000
(Being Outstanding of salary.)
iii. Depreciation a/c ...................................................................................................................................... Dr. 20,000
To Machinery a/c 20,000
(Being depreciation charge on machinery.)
iv. Retained earning a/c ............................................................................................................................... Dr. 5,000
To Reserve and Surplus a/c 5,000
(Being reserve and surplus created.)
Journal Proper CHAPTER 10 99
Adjusted Trial Balance
Particulars Unadjusted trial balance Adjustment Adjusted trial balance
Dr. Cr. Dr. Cr. Dr. Cr.
Cash ...........................................................................4..,.8..0..,.0..0..0..............................-.............................-..................................-.................4..8..0...,0...0.0 -
Capital .....................................................................................-..............1..0..,.0..0..,.0..0..0..............................-..................................-............................ - 10,00,000
Bank ...........................................................................3..,.1..7..,.0..0..0..............................-.............................-..................................-.................3..1..7...,0...0.0 -
Machinery...................................................................2..,.0..0..,.0..0..0..............................-.............................-........................2..0..,.0..0..0..................1..8..0...,0...0.0 -
Purchase ....................................................................1..,.0..0..,.0..0..0..............................-.............................-..................................-.................1..0..0...,0...0.0 -
Sales........................................................................................-................2..,.0..0..,.0..0..0..............................-..................................-............................ - 2,00,000
Rent ...............................................................................4..0..,.0..0..0..............................-.............................-........................1..0..,.0..0..0....................3..0..,.0..0..0 -
Salary ............................................................................5..0..,.0..0..0..............................-...................2..0..,.0..0..0...................................-...................7..0..,.0..0..0 -
Electricity charge...........................................................1..0..,.0..0..0..............................-...............................................................-...................1..0..,.0..0..0 -
Discount allowed .............................................................5..,.0..0..0..............................-...............................................................-.....................5..,.0...0.0 -
Discount received ...................................................................-.....................2..,.0..0..0................................................................-............................ - 2,000
Adjustment
a. Advance rent paid ...........................................................................................-...................1..0..,.0..0..0...................................-...................1..0..,.0..0..0 -
b. Outstanding salary ..........................................................................................-.............................-........................2..0..,.0..0..0............................. - 20,000
c. Depreciation charge on machinery.................................................................................-.....................2...0..,.0...0..0.........................................-.......................2..0...,.0..0..0 -
d. Reserve and Surplus................................................................................................................................5..,.0...0..0................................5...,.0..0..0..........................5...,.0..0..0 5,000
Total 12,02,000 12,02,000 55,000 55,000 12,27,000 12,27,000
VERY SHORT ANSWER QUESTIONS
VQ-1._____ Purchase book was overcast by Rs.1000 rectify this error assuming that it was located:
a. After preparing trial balance b. Before preparing trial balance
Solution,
a. Dr. Purchase Account Cr.
Date Particulars JF Amount Rs. Date Particulars JF Amount Rs.
By Rectification of overcastting of 1000
purchase book .........................................................................................................................
b. Journal entry LF Debit (Rs.) Credit (Rs.)
Date 1,000
Particulars 1,000
Suspense A/c .............................................................................................................. Dr.
To Purchase A/c
(Being rectification of overcast of purchase book)
VQ-2._____ The following errors were located before preparation of trial balance. Rectify them.
i. Purchase book is under cast by Rs. 500. ii. Purchase book is over cast by Rs.1,000.
iii. Sales book is under cast Rs.1,500. iv. Sales book is over cast Rs.2,000.
Solution:
i. Purchase book is under cast with Rs 500.
Dr. Purchase Account Cr.
Date Particulars JF Amount Rs. Date Particulars JF Amount Rs.
To Rectification of under cast of 500
purchase book.................................................................................................................................................................................................
ii. Purchase book is over cast with Rs 1,000
Dr. Purchase Account Cr.
Date Particulars JF Amount Rs. Date Particulars JF Amount Rs.
By Rectification of over cast of 1,000
purchase book ..........................................................................................................................
iii. Sales book is under cast with Rs 1500.
Dr. Sales Account Cr.
Date Particulars JF Amount Rs. Date Particulars JF Amount Rs.
By Rectification of under cast of 1,500
sales book.................................................................................................................................
iv. Sales book is over cast with Rs 2,000.
Dr. Sales Account Cr.
Date Particulars JF Amount Rs. Date Particulars JF Amount Rs.
To Rectification of over cast of 2,000
sales book .......................................................................................................................................................................................................
VQ-3._____ The following one sided errors are notified after preparing trial balance. Rectify them.
i. Credit sales Rs.3,000 to Ravi but credited to his account.
ii. Purchase from ABC Co. Rs.5,000 but credited to his account with Rs 500 only.
100 Accounting-XI
Solution, Rectification Entry LF Debit Rs. Credit Rs.
Date Particulars 6,000
i. Ravi A/c ......................................................................................................................................Dr. 6,000
To Suspense A/c
ii. (Being wrong side posting, now rectified) 4,500 4,500
Suspense A/c .............................................................................................................................Dr.
To ABC co. A/c 15,000 15,000
(Being under cast posting, now rectified)
Total
VQ-4._____ The following errors are located before preparation of trial balance in the books of Nivan Enterprises.
i. Purchase return book was undercasted by Rs. 3,000. ii. Sales return book was undercasted by Rs. 5,000.
Required: Entries for rectification
Solution,
i. Dr. Purchase Return Account Cr.
Date
Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
By Rectification of undercasting of purchase 3,000
return book ...................................................................................................................................................
ii. Dr. Sales Return Account Cr.
Date Particulars JF Amount (Rs.) Date Particulars JF Amount (Rs.)
To Rectification of undercasting of 5,000
sales return book ...........................................................................................................................................................................................
VQ-5._____ Wages of Rs. 5,000 paid to Ramesh was debited to his personal account.
Required: a. Correct entry b. Wrong entry c. Rectified entry
Solution,
a. Journal entry
Date Particulars LF Debit (Rs.) Credit (Rs.)
a. Correct entry 5,000 5,000
Wages A/c .......................................................................................................................................Dr. 5,000
To Cash A/c 5,000
(Being wages paid)
b. Wrong entry
Ramesh A/c.....................................................................................................................................Dr. 5,000
To Cash A/c
(Being Wages paid to Ramesh wrongly debited to his account)
c. Rectified entry
Wage A/c.........................................................................................................................................Dr. 5,000
To Ramesh A/c
(Being Wages paid to Ramesh wrongly debited to his account, now rectified)
VQ-6._____ Interest Received Rs. 500 but wrongly credited in commission Account
Required: a. Correct entry b. Wrong entry c. Rectified entry
Solution, Journal entry
Date Particulars LF Debit (Rs.) Credit (Rs.)
a. Correct entry 500 500
Cash A/c..........................................................................................................................................Dr. 500
To Interest A/c 500
(Being interest received)
b. Wrong entry
Cash A/c..........................................................................................................................................Dr. 500
To Commission A/c
(Being Interest received wrongly credited to commission account)
c. Rectified entry
Commission A/c ..............................................................................................................................Dr. 500
To Interest A/c
(Being Interest received wrongly credited to commission account, now rectified)
VQ-7._____ Purchased books from Kriti Publication for Rs. 2600 was recorded as Rs. 6200. LF Debit (Rs.) Credit (Rs.)
Required: Rectifying entry
2,600 2,600
Solution,
Date Particulars 6,200 6,200
a. Correct entry
Purchase A/c ..................................................................................................................................... Dr. 3,600 3,600
To Kriti publication A/c
(Being goods purchase on credit )
b. Wrong entry
Purchase A/c ..................................................................................................................................... Dr.
To Kriti publication A/c
(Being goods purchase on credit entered wrong amount)
b. Rectified entry
Kriti publication A/c............................................................................................................................ Dr.
To Purchase A/c
(Being goods purchased on credit entered wrong amount, now rectified)
The words you are searching are inside this book. To get more targeted content, please make full-text search by clicking here.
Accounting XI Manual 2020
Discover the best professional documents and content resources in AnyFlip Document Base.
Search