WORKOUT SESSION – FOUNDATION
Question: 1
Analyse the effect of each transaction on assets and liabilities and show that the both
sides of Accounting Equation remains equal:
i. Introduced Rs.8,00,000 as cash and Rs.50,000 by stock.
ii. Purchased plant for Rs.3,00,000 by paying Rs.15,000 in cash and balance at a
later date.
iii. Deposit Rs.6,00,000 into the bank.
iv. Purchased office furniture for Rs.1,00,000 and made Payment by cheque.
v. Purchased goods worth Rs.80,000 for cash and for Rs.35,000 in credit.
vi. Goods amounting to Rs.45,000 was sold for Rs.60,000 on cash basis.
vii. Goods costing to Rs.80,000 was sold for Rs.1,25,000 on credit.
viii. Cheque issued to the supplier of goods worth Rs.35,000.
ix. Cheque received from customer amounting to Rs.75,000.
x. Withdrawn by owner for personal use Rs.25,000.
Question: 2
Show the effect of following transaction on the accounting equation:
a) Manoj started business with cash Rs.2,30,000, Goods Rs.1,00,000 and Building
Rs.2,00,000.
b) He purchased goods for cash Rs.50,000
c) He sold goods (costing Rs.20,000) Rs.35,000.
d) He purchased goods from Rahul Rs.55,000.
e) He sold goods to Varun (costing Rs.52,000) Rs.60,000.
f) He paid cash to Rahul in full settlement Rs.53,000.
g) Salary paid by him Rs.20,000.
h) Received cash from Varun in full settlement Rs.59,000.
i) Rent outstanding Rs.3,000.
j) Prepaid Insurance Rs.2,000.
k) Commission received by him Rs.13,000.
l) Amount withdrawn by him for personal use Rs.20,000.
m) Depreciation charge on building Rs.10,000.
n) Fresh capital invested Rs.50,000.
o) Purchased goods from Rakhi Rs.6,000.
Question: 3
Following are the transactions during the month of January 2018. Prepare journal
entries, ledger accounts, Trial Balance.
Date
1. Commenced business with cash Rs.80,000
2. Deposited cash with bank Rs.40,000
3. Purchased goods by paying cash Rs.5,000
4. Purchased goods from Lipton & Co. on credit Rs.10,000
5. Sold goods to Joy and received cash Rs.11,000
6. Paid salaries by cash Rs.5,000
7. Paid Lipton & Co. by cheque for the purchase made on January 4
8. Brought furniture for cash Rs.4,000
9. Paid electricity charges by cash Rs.1,000
10. Paid insurance charges through bank Rs.300
Question: 4
Enter the following transactions into Journal, Ledger and Trial Balance.
Date Particulars Amount
Jan 01 Commenced business with cash 1,75,000
Jan 01 Building 1,00,000
Jan 02 Goods purchased for cash 75,000
Jan 03 Sold goods Ramesh 30,000
Jan 04 Paid wages 500
Jan 06 Sold goods for cash 10,000
Jan 10 Paid for trade expenses 700
Jan 12 Cash received from Ramesh 29,500
Discount allowed 500
Jan 14 Goods purchased from Sudhir 27,000
Jan 18 Cartage paid 1,000
Jan 20 Withdrawn cash for personal use 5,000
Jan 22 Goods used for household 2,000
Jan 25 Cash paid to Sudhir 26,700
Discount allowed 300
