Subject: 11th Accountancy

Topic: All Topics Worksheet (Till Cashbook)

Date:
Total Marks:
Time Limit: Confidence Holds Our Heads High

BASIC ACCOUNTING TERMS

1. Mr. Prakash started a business of buying and selling of gift boxes with Rs. 3,50,000 as an initial
investment. Of which he paid Rs. 2,00,000 for the purchase of gift boxes and Rs. 50,000 for computer.
He sold some of the gifts boxes for Rs. 1,50,000 for cash and some other gifts boxes for Rs. 75,000 on
credit to Mr. Rajeev.
Subsequently, he bought gift boxes of Rs. 1,00,000 from Mr. Rakesh. In the first week of the next month,
there was a fire accident and he lost Rs. 50,000 worth of gifts boxes. Later on, some gifts which costed
Rs. 60,000 was sold for Rs. 65,000. Expenses paid during the same period were Rs. 5,000.

With the help of the above information, answer the following questions :-
(i) What is the amount of capital with which Mr. Prakash started the business?
(ii) What is the total amount of expenses?
(iii)Who is the debtor and what is the amount receivable from him?
(iv) Who is the creditor and what is the amount payable to him?
(v) What are the fixed assets he bought?
(vi) What is the total value of the goods purchased?
ANSWER
(i) Rs. 3,50,000
(ii) 2,00,000 + 1,00,000+5,000 = Rs. 3,05,000
(iii) Mr Rajeev, Rs. 75,000
(iv) Mr Rakesh, Rs. 1,00,000
(v) Computer (Rs. 50,000)
(vi) 2,00,000 + 1,00,000 = Rs. 3,00,000

2. Mr. Gopal started business for buying and selling readymade garments with Rs 8,00,000 as an initial
investment. Out of this he paid Rs 4,00,000 for the purchase of garments and Rs 50,000 for furniture and
Rs 50,000 for computers and the remaining amount was deposited into the bank. He sold some of the
ladies and kids garments for Rs 3,00,000 for cash and some garments for Rs 1,50,000 on credit to Mr.
Rajesh. Subsequently, he bought men's garments of Rs 2,00,000 from Mr. Satish. In the first week of the
next month, a fire broke out in his office and stock of garments worth Rs 1,00,000 was destroyed. Later
on, some garments which cost Rs 1,20,000 were sold for Rs 1,30,000. Expenses paid during the same
period were Rs 15,000. Mr. Gopal withdrew Rs 20,000 from business for his domestic use.
From the above, answer the following:
(i) What is the amount of capital with which Mr. Gopal started the business?
(ii) What fixed assets did he buy?
(iii)What is the value of the goods purchased?
(iv) Who is the creditor and state the amount payable to him?
(v) Who is the debtor and what is the amount receivable from him?
(vi) What is the total amount of expenses?
(vii) What is the amount of drawings of Mr. Gopal?
 ACCOUNTING PRINCIPLES
1. State the accounting concept/convention involved in each of the following situation:
(a) Market value of fixed assets as on 31-03-2016 is Rs. 5 lakhs and depreciated value is Rs. 4 lakhs on this
date. In this case, fixed assets will be shown in the balance sheet at Rs. 4 lakhs on 31-03-2016 and not at
Rs. 5 lakhs.
(b) Fixed assets of business are shown in balance sheet at their depreciated value and not at their realisable
values.
(c) Partnership firm gives interest on partner’s capitals and charges interest on partner’s drawings if it is so
agreed.
(d) Accounts of business are prepared for a specific period.
(e) No accounting entry is passed in books of accounts for resignation of an efficient Plant Manager of a firm
even if this event will adversely affect production of the firm.
(f) In addition to book value of investment in listed shares, the market value thereof is also shown as
additional information in financial statements.
(g) Entire expense of a ball pen refill purchased for Rs. 5 on 25-03-2016 is debited to Stationery Expenses on
date of purchase itself even if only about a half of this refill is used by 31st March, 2016.
(h) As far as possible same method of providing depreciation should be followed year after year.
(i) Mangal Corporation purchased a car of Rs. 5 lakhs and this was the last piece available with seller and
now there are buyers ready to pay even Rs. 7 lakhs for this car. Hence, owner of Mangal Corporation
wants to record this transaction of purchase of car at Rs. 7 lakhs even though the car is actually purchased
for Rs. 5 lakhs. However, the Accountant of the firm has argued that based on generally accepted
accounting principle, this transaction has to be recorded only at Rs. 5 lakhs and it cannot be recorded at
Rs. 7 lakhs.
(j) Frequent changes in methods of depreciation or stock valuation should be avoided.
(k) When goods are purchased on credit from a supplier, the Purchase should be recorded in accounts
immediately, even though cash is not yet paid for such purchase as the amount becomes payable once the
goods are purchased.
(l) No accounting entry is recorded for death of a key employee of the firm even if it is an important event
affecting business.
(m) Advance received from a customer cannot be credited to sales account.
(n) Financial statements should disclose all material information which is required by the proprietor and other
users to assess the final accounts of the business units
(o) Harpreet has entered into agreement whereby he will earn Rs 10 lakhs for the services to be provided in
the next year. The income should be recognised as revenue in the next year after services have been
provided.
(p) The record of the amount received or paid on account, is made on the basis of receipt received or given.
(q) If any expense is paid in advance for five years and that to be closed, the total expense incurred is matched
in the years in which the business is to be discontinued.
(r) The cost of goods sold, as an expense, is matched against the revenue of sales of that accounting period
in which such goods are sold.
(s) The record of the amount or cheque deposited in the bank is made in cash book on the basis of the
counterfoil of pay-in-slip book.
(t) Taking into consideration the possibility of recovering the amount from the debtors in a specific period, a
provision for discount reserve on debtors is made.
 BASES OF ACCOUNTING

1. Vijay a consultant, during the financial year 2020-21 earned Rs.4,00,000. Out of which he received Rs.
3,50,000. He incurred an expense of Rs.1,70,000 out of which Rs. 40,000 are outstanding. He also received
consultancy fee relating to previous year Rs.45,000 and also paid Rs. 20,000 expenses of last year.
You are required to determine his income for the year if
(i) He follows Cash Basis of Accounting and
(ii) He follows Accrual Basis of Accounting
[Ans:- (i) 2,45,000 (ii) 2,30,000]

2. From the following information, determine the profit earned or loss when
(i) Cash Basis of accounting &
(ii) Accrual Basis of Accounting:
S No. Particulars Amount
a) Cash sales 5,00,000
b) Credit sales 2,00,000
c) Outstanding salary and wages 4,000
d) Insurance paid in advance 2,500
e) Outstanding electricity expenses 1,000
f) Income received(excluding income received in advance) 5,000
g) Income received in advance 1,000
h) Income earned but not received 3,000
i) Cash purchases 2,75,000
j) Credit purchases 1,25,000
k) Salary and wages paid 44,000
l) Electricity expenses paid 11,000
m) Insurance expenses paid (including prepaid) 10,000
[Ans:- (i) 1,66,000 (ii) 2,40,500]

ACCOUNTING EQUATION

1. Show the accounting equation on the basis of the following transactions:

(i) Started business with Cash 60,000 and Goods 30,000.
(ii) Purchased goods for Cash 40,000 and on Credit 25,000.
(iii) Goods costing 48,000 sold at a profit of 33 1/ 3 %. Three-fourth payment received in Cash
(iv) Goods costing 20,000 sold at a loss of 5%, out of which 12,000 received in Cash.
(v) Paid Rent 4,000 and Salary 6,000.
(vi) Received Cash from Debtors 15,000.
(vii) Interest on capital allowed Rs. 400.
(viii) Commission yet to be received Rs.800
(ix) Interest due but not paid Rs 200.
2. Use Accounting Equation to show the effect of following transactions on assets, liabilities and capital and
also show the Balance sheet.
(i) Ram started business with cash of Rs. 1,80,000, goods Rs. 50,000, Debtors Rs. 10,000, Furniture Rs.
10,000 and Creditors Rs. 20,000.
(ii) Goods costing Rs. 6,000 sold to Amit at loss of 10%, out of which Rs. 2,000 received in cash.
(iii) Cash deposited into bank Rs. 20,000.
(iv) Rent outstanding Rs.5,000.
(v) Received cheque from Amit Rs. 3,200 in full settlement of Rs. 3,400.
(vi) Insurance paid in advance Rs. 1,000
(vii) Paid to creditors Rs. 18,000 in full settlement of Rs. 20,000
(viii) Depreciate Furniture @ 10%.

3. Create an accounting equation on the basis of the following transactions:

(i) Started business with cash Rs.40,000 and furniture Rs.20,000.
(ii) Bought goods for cash Rs.10,000 and on credit from Atul for Rs.20,000.
(iii) Goods bought from Atul on credit half of it was sold at 20% profit on sales to Rohit and remaining
at 20% profit on cost for cash.
(iv) Cleared the account of Atul by paying Rs.19,500.
(v) Paid salary Rs.6,000 and still unpaid Rs.2,000.
(vi) Received commission Rs.3,000 including Rs.1,000 as advance.
ANSWER:

4. Analyse the effect of each transaction and prove that the accounting equation (A=L+C) always remains
balanced.
(i) Introduced Rs 4,00,000 as cash and Rs 25,000 by stock.
(ii) Purchased plant for Rs 1.50,000 by paying Rs 7,500 in cash and Balance at a later date.
(iii) Deposited Rs 3,00,000 into the bank.
(iv) Purchased office furniture for Rs 50,000 and made payment by cheque.
(v) Purchased goods worth Rs 40,000 for cash and for Rs 17.500 on credit.
(vi) Goods amounting to Rs 22,500 was sold for Rs 30,000 on cash basis.
(vii) Goods costing to Rs.14000 was sold for Rs.16250 on credit basis.
(viii) Cheque issued to the supplier of goods worth Rs 17,500.
(ix) Loan borrowed from a friend Rs 37,500.
(x) Withdrawn cash by owner for personal use Rs 12,500.

5. Shweta started business on 1st April 2019 by investing Rs. 6,00,000 in cash and took a loan of Rs. 4,00,000
from the bank. On 31st March 2020, her assets were Rs 15,00,000 and trade creditors (other than loan)
were Rs. 1,00,000. Find out her capital as on 31st March 2020 and the profit earned during the year.
ANSWER:
On 31st March 2020,
Assets = Liabilities + Capital
15,00,000= 5,00,000 + Capital
Capital = 10,00,000
Closing Capital = Opening Capital + Profits
10,00,000 = 6,00,000 + Profits
Profits = 4,00,000.
6. Bablu started business on 1st April 2022 with a capital of Rs.1,10,000 and took a loan from bank Rs.
40,000 At the end of the year on 31st March 2023 his assets include cash Rs. 40,000, stock Rs. 80,000,
Debtors Rs. 45,000, Furniture Rs 35,000 and creditors Rs. 40,000. Bank loan has not been paid so far.
Find the closing capital and profit earned during the year.
ANSWER:
Closing Capital = Closing Assets – Closing Liabilities
= 2,00,000 – 80,000
= 1,20,000
Profits = Closing Capital – Opening Capital
= 1,20,000 – 1,10,000
= 10,000

7. (i) Yogesh commenced business on 1st April, 2019 with a Capital of 5,00,000 and a loan of 1,00,000
borrowed from Yes Bank. On 31st March, 2020, his assets were 8,00,000. Calculate his closing capital
and profits earned during the year.
(ii) If in the above case, the proprietor had introduced fresh capital of 40,000 and had withdrawn 10,000
for personal purposes, calculate his profits.
ANSWER:
(i) Closing Capital = Closing Assets – Closing Liabilities
= 8,00,000 – 1,00,000
= 7,00,000.

Profit = Closing Capital – Opening Capital

= 7,00,000 – 5,00,000
= 2,00,000.

(ii) Closing Capital = Opening Capital + Additional Capital – Drawings + Profits

7,00,000 = 5,00,000 + 40,000 – 10,000 + Profits
Profits = 1,70,000.

8. Rohan started a business on 1st April, 2019 with a Capital of 2,00,000 and a loan of 75,000 from the bank.
During the year, he had introduced additional capital of 60,000 and had withdrawn 36,000 for personal
purposes. On 31st March, 2020 his assets were 3,80,000. Find out his Capital as on 31st March, 2020 and
profit earned during the year 2019-20.
ANSWER
ANSWER
Opening Capital = 2,00,000
Loan = 75,000
Additional Capital = 60,000
Drawings = 36,000
Total Assets = 3,80,000
Closing Capital = ?
Profit = ?

Assets = Liabilities + Capital

3,80,000 = 75,000 + Closing Capital
3,05,000 = Closing Capital
 Closing Capital = Opening Capital + Profit + Additional Capital – Drawings
3,05,000 = 2,00,000 + Profit + 60,000 – 36,000
1,05,000 = Profit + 14,000
Profit = 81,000

RULES OF DEBIT AND CREDIT

1. On which side, the increase in the following accounts will be recorded as per modern approach? Also
specify the nature of accounts to which they belong:
(i) Machinery Account (ii) Bank Overdraft Account (iii) Bills Payable Account
(iv) Cash Account (v) Purchase Account (vi) Interest Paid Account
(vii) Commission Received A/c (viii) Creditors Account (ix) Proprietor’s Account
(x) Sales Account
[Ans:- (i) Debit: Asset; (ii) Credit: Liability; (iii) Credit: Liability; (iv) Debit: Asset;
(v) Debit: Expense; (vi) Debit: Expense; (vii) Credit: Revenue;
(viii) Credit: Liability; (ix) Credit: Capital; (x) Credit: Revenue]

2. On which side, the increase in the following accounts will be recorded? Also specify the nature of accounts
to which they belong:
(i) Machinery Account (ii) Bank Overdraft Account (iii) Bills Payable Account
(iv) Cash Account (v) Purchase Account
ANSWER
S No. Particulars Nature Debit/Credit
(i) Machinery Account Assets A/c Debit
(ii) Bank Overdraft Account Liabilities A/c Credit
(iii) Bills Payable Account Liabilities A/c Credit
(iv) Cash Account Assets A/c Debit
(v) Purchase Account Expenses A/c Debit

3. Analyse the following transaction according to the traditional Approach and state the accounts whether
debited or credited.
(i) Bought goods on credit from Mr. A.
(ii) Received a cheque from a customer, Mahesh.
(iii) Deposited Mahesh’s cheque next day.
(iv) Paid an advance to suppliers of goods.
(v) Bank intimated that Mahesh’s cheque was dishonoured.
(vi) Received an advance from customers.

ANSWER
S. Nature of Debit or
Accounts Involved Rules
No. Account Credit
Purchases A/c Nominal A/c Debit all expenses, credit all incomes. Debit
(i)
Mr. A A/c Personal A/c Debit the receiver, credit the giver Credit
Cheque in Hand A/c Real A/c Debit what comes in, Credit what goes out Debit
(ii)
Mahesh A/c Personal A/c Debit the receiver, credit the giver Credit
Bank A/c Personal A/c Debit the receiver, credit the giver Debit
(iii)
Cheque in Hand A/c Real A/c Debit what comes in, Credit what goes out Credit
 Advance for Goods A/c Real A/c Debit what comes in, Credit what goes out. Debit
(iv)
Cash A/c Real A/c Debit what comes in, Credit what goes out. Credit
Mahesh A/c Personal A/c Debit the receiver, credit the giver. Debit
(v)
Bank A/c Personal A/c Debit the receiver, credit the giver. Credit
Cash A/c Real A/c Debit what comes in, Credit what goes out. Debit
(vi)
Advance from Customer A/c Personal A/c Debit the receiver, credit the giver Credit

4. For the following transactions, state the nature of account as per tradition method, the rule which is
applicable and which account will be debited and which account will be credited.
a. Manu started business with cash 50,000
b. Bought furniture for 500
c. Purchased goods from Atul 4,000
d. Sold goods on cash for 700
e. Received rent 200
f. Withdrew for personal use 700
g. Paid to Atul 400
h. Paid for salaries 200
ANSWER
Accounts Debit or
S No. Nature of Account Rules
Involved Credit
Cash A/c Real Account Debit what comes in, Credit what goes out. Debit
a.
Capital A/c Personal Account Debit the receiver, credit the giver. Credit
Furniture A/c Real Account Debit what comes in, Credit what goes out. Debit
b.
Cash A/c Real Account Debit what comes in, Credit what goes out. Credit
Purchases A/c Nominal Account Debit all expenses, credit all incomes. Debit
c.
Atul A/c Personal Account Debit the receiver, credit the giver. Credit
Cash A/c Real Account Debit what comes in, Credit what goes out. Debit
d.
Sales A/c Nominal Account Debit all expenses, credit all incomes. Credit
Cash A/c Real Account Debit what comes in, Credit what goes out. Debit
e.
Rent A/c Nominal Account Debit all expenses, credit all incomes. Credit
Drawings A/c Personal Account Debit the receiver, credit the giver. Debit
f.
Cash A/c Real Account Debit what comes in, Credit what goes out. Credit
Atul A/c Personal Account Debit the receiver, credit the giver. Debit
g.
Cash A/c Real Account Debit what comes in, Credit what goes out. Credit
Salaries A/c Nominal Account Debit the receiver, credit the giver. Debit
h.
Cash A/c Real Account Debit what comes in, Credit what goes out. Credit

5.

S No. Account Involved Nature of Account How effected Debit Credit

 Cash A/c Assets Increased 5,00,000 -
i.
Capital A/c Capital Increased - 5,00,000
Purchases A/c Expenses Increased 1,00,000 -
ii.
Cash A/c Assets Decreased - 1,00,000
Cash A/c Assets Increased 1,50,000 -
iii.
Sales A/c Income Increased - 1,50,000
Cash A/c Assets Increased 500 -
iv.
Interest A/c Income Increased - 500
Ashok A/c Asset Increased 60,000 -
v.
Sales A/c Income Increased - 60,000
Furniture A/c Asset Increased 50,000 -
vi.
Cash A/c Asset Decreased - 50,000

JOURNAL
1. Journalise the following transactions: [12]
a. Opening balance is: Cash in hand Rs 44,000; Bank balance Rs 9,000; Stock Rs 17,375; Furniture Rs
7,600; Machinery Rs 92,000; Debtors Rs 15,000; Creditors Rs 40,000; Bank’s Loan Rs 70,000.
b. Received cash from Rakesh for bad debt written off last year Rs. 200.
c. Paid for traveling expenses by cheque 500. Purchased goods from Nagendra & Sons of Belgaum of
the list price of Rs. 1,25,000 at 20% trade discount & 5% cash discount. 50 % Payment was made
immediately by cheque.
d. Sold to Arvind Patil & Co. Hubli goods of the list price of Rs. 4,00,000 at 25% trade discount & 3%
cash discount. Full payment received by cheque at the time of sale itself.
e. Paid by cheque Rs.25,000 as wages for installation of Machinery.
f. Purchase stationery of Rs. 20,000 for personal use and of Rs. 5,000 for office use.
g. Bought machinery from Rama Stores for 28,000 and paid freight 1,000, carriage 200 and installation
charges 800.
h. Bought goods from Ratnakar for 8,000 for cash and paid carriage charges 500.
i. Purchased a cupboard for Rs.5000 for office use from Modern furniture mart.
j. Given a charity Rs.1000 to a temple in memory of the mother.
k. Sold goods of Costing Rs.1000 for 1500.
l. Goods costing Rs.5,000 were lost by fire. Insurance company accepted and paid claim of Rs.4,000.

Date Particulars LF Debit Credit

a Cash A/c 44,000

Bank A/c 9,000
Stock A/c 17,375
Furniture A/c 7,600
Machinery A/c 92,000
Debtors A/c 15,000
To Creditors A/c 40,000
To Bank Loan A/c 70,000
To Capital A/c 74,975
b Cash A/c 200
To Bad Debts Recovered A/c 200

c Travelling Expenses A/c 500

Purchases A/c 1,00,000
To Bank A/c 48,000
To Discount Received A/c 2,500
To Nagendra & Sons A/c 50,000

d Bank A/c 2,91,000

Discount Allowed A/c 9,000
To Sales A/c 3,00,000

e Machinery A/c 25,000

To Bank A/c 25,000

f Stationery A/c 5,000

Drawings A/c 20,000
To Cash A/c 25,000

g Machinery A/c 30,000

To Cash A/c 2,000
To Rama Stores A/c 28,000

h Purchases A/c 8,000

Carriage A/c 500
To Cash A/c 8,500

i Furniture A/c 5,000

To Modern Furniture Mart A/c 5,000

j Drawings A/c 1,000

To Cash A/c 1,000

K Cash A/c 1,500

To Sales A/c 1,500

l Loss by Fire A/c 5,000

To Purchases A/c 5,000

Insurance Co. A/c 5,000

To Loss by Fire A/c 5,000

Cash/ Bank A/c 4,000

Profit and Loss A/c 1,000
To Insurance Co. A/c 5,000
2. Prepare Journal from the transactions given below : [10]
1. Cash paid for installation of machine Rs.500.
2. Goods given as charity Rs.2,000.
3. Interest charge on capital @7% p.a. when total capital were Rs.70,000.
4. Received Rs.1,200 of a bad debts written-off last year.
5. Goods destroyed by fire Rs.2,000.
6. Rent outstanding Rs.1,000.
7. Interest on drawings Rs.900.
8. Sudhir who owed me Rs.3,000 has failed to pay the amount. He pays me 45 paise in a rupee.
9. Commission received in advance Rs.7,000
10. Bought goods of list price Rs.12,000 less 15% trade discount and 2% cash discount for cash.

Date Particulars LF Debit Credit

1 Machinery A/c 500
To Cash A/c 500

2 Charity A/c 2,000

To Purchases A/c 2,000

3 Int. on Capital A/c 4,900

To Capital A/c 4,900

4 Cash A/c 1,200

To Bad debt recovered A/c 1,200

5 Loss by fire A/c 2,000

To Purchase A/c 2,000

6 Rent A/c 1,000

To O/s Rent A/c 1,000

7 Drawings A/c 900

To Int. on drawings A/c 900

8 Cash A/c 1,350

Bad Debts A/c 1,650
To Sudhir A/c 3,000

9 Cash A/c (Commission A/c) 7,000

To Adv. commission A/c 7,000

10 Purchases A/c 10,200

To Cash A/c 204
To Discount Received A/c 9,996
3. Journalise the following transactions and prepare Sanjay’s ledger: [7]
Jan 15 Purchased goods at the list price of Rs.30,000 from Mahesh less 15% trade discount
and 5% cash discount and paid 60% on the spot.
Jan 17 Sold goods to Sanjay at the list price of Rs.50,000 at 10% trade discount and received
a cheque under a cash discount of 2%.
Jan 20 Sanjay’s cheque was deposited into bank.
Jan 22 Sanjay’s cheque dishonoured.
Jan 23 Sanjay was declared insolvent and final dividend of 40 paise in a rupee was received from his
asset.

Date Particulars LF Debit Credit

Jan-15 Purchases A/c 25,500

To Mahesh A/c 10,200
To Cash A/c 14,535
To Discount Received A/c 765

Jan-17 Cheque in Hand A/c 44,100

Discount Allowed A/c 900
To Sales A/c 45,000

Jan-20 Bank A/c 44,100

To Cheque in Hand A/c 44,100

Jan-22 Sanjay A/c 45,000

To Bank A/c 44,100
To Discount Allowed A/c 900

Jan-23 Bank A/c 18,000

Bad Debts A/c 27,000
To Sanjay A/c 45,000

Dr Sanjay A/c Cr
Date Particulars JF Amt Date Particulars JF Amt

Jan-22 To Bank A/c 44,100 Jan-23 By Bank A/c 18,000

Jan-22 To Discount Allowed A/c 900 Jan-23 By Bad Debts A/c 27,000

45,000 45,000
4. Pass Journal Entries for the following transactions: [3]
2020
Jan 6 Sold goods to Muskan of the list price of 2,00,000 at trade discount of 20%.
Jan 8 Muskan returned goods of the list price of 5,000.
Jan 15 Received from Muskan the full payment under a cash discount of 4%.

In the books of ___________

JOURNAL
Date Particulars LF Debit Credit
2020
January 6 Muskan A/c ...Dr 160,000
To Sales A/c 160,000
(Being goods sold to Muskan @ 10% TD)

January 8 Sales Return A/c ...Dr 4,000

To Muskan A/c 4,000
(Being goods sold returned)

January 15 Cash A/c ...Dr 149,760

Discount Allowed A/c ...Dr 6,240
To Muskan A/c 156,000
(Being cash received and CD @ 4%)

5. Pass necessary journal entries for the following transactions [7]

2021
March 4 Purchased building for ₹ 1,50,000 and incurred expenses of ₹ 10,000 on its purchase.
March 10 Satish who owed us ₹ 20,000 is declared insolvent and 60 paise per ₹ is received from his estate.
March 15 Paid ₹ 500 for repairing the office furniture.
March 18 Proprietor withdrew for his personal use cash ₹ 5,000 and goods worth ₹ 2,000.
March 20 Purchased the following items for business: Iron Safe ₹ 15,000; Filing Cabinet ₹ 5,000;
Computer ₹ 12,000; Postage ₹ 200 and Stationery ₹ 150.
March 28 Paid electricity charges ₹ 1,600.
March 31 Outstanding wages at the end of the year ₹ 6,000.

ANSWER
Journal
In the Books of …
Date Particulars L.F. Debit Rs) Credit (Rs)
2017
Mar. 04 Building A/c Dr. 1,60,000
To Cash/Bank A/c 1,60,000
(Building purchased and expenses paid)

Mar. 10 Cash A/c Dr. 12,000

 Bad Debts A/c 8,000
To Satish’s A/c 20,000
(Cash received from Satish and bad debts written-off)

Mar. 15 Repairs A/c Dr. 500

To Cash A/c 500
(Payment made for repair of office furniture)

Mar. 18 Drawings A/c Dr. 7,000

To Cash A/c 5,000
To Purchases A/c 2,000
(Cash and goods withdrawn for personal use)

Mar. 20 Office Equipment A/c Dr. 32,350

To Cash A/c 32,350
(Purchased iron safe, filling cabinet and typewriter)

Mar. 28 Electricity Charges A/c Dr. 1,600

To Cash A/c 1,600
(Paid electricity charges)

Mar. 31 Wages A/c Dr. 6,000

To Outstanding Wages A/c 6,000
(Outstanding wages recorded)

6. Pass Journal entries for the following transactions: - [9]

a. Purchased Machinery for 20,000 and paid 200 for its carriage.
b. Received a cheque for 4,850 from X in full settlement of his account of 5,000. Cheque was
immediately deposited into the bank.
c. Received by cheque a first and final payment of 60 paise in a from Y who owed us 10,000.
d. Sold goods to Z for 10,000 at a trade discount of 20%. Next day a cheque was received from him
after deducting a 5% cash discount. Cheque was immediately deposited into the Bank.
e. Goods costing 20,000 sold to Manoj at a profit of 20% on cost less 10% trade discount.
f. Salaries due of clerk Rs.3000.
g. Interest on Capital Rs.2000.
h. Interest on loan Rs.500.

ANSWER

In the books of _________________

JOURNAL
Date Particulars LF Debit (Rs) Credit (Rs)

a. Machinery A/c ...Dr 20,200

To Cash A/c 20,200
 (Being machinery purchase and paid for carriage)

b. Bank A/c ...Dr 4,850

Discount allowed A/c ...Dr 150
To X A/c 5,000
(Being cheque received from x in full settlement)

c. Bank A/c ...Dr 6,000

Bad Debts A/c ...Dr 4,000
To Y A/c 10,000
(Being cash received and bad debts written off)

d. Z A/c …Dr 8,000

To Sales A/c 8,000
(Being goods sold to Z on credit)

Bank A/c ...Dr 7,600

Discount Allowed A/c ...Dr 400
To Z A/c 8,000
(Being cheque received in full settlement)

e. Manoj A/c ...Dr 21,600

To Sales A/c 21,600
(Being goods sold to Manoj)

f. Salaries A/c ...Dr 3,000

To Outstanding Salaries A/c 3,000
(Being outstanding salaries)

g. Interest on Capital A/c …Dr 2,000

To Capital A/c 2,000
(Being interest on capital)

h. Interest on Loan A/c …Dr 500

To Bank A/c 500
(Being Interest on loan charged by bank)

7. Journalise the following transactions in the books of Alia Ltd.: [10 M]

2017 Rs
Mar. 1 Started business with cash Rs.60,000; goods Rs.30,000 and furniture Rs.40,000
Mar. 2 Paid into Bank 40,000
Mar. 3 Bought goods from Aakash Bros. on credit 14,000
Mar. 4 Sold goods to Varun Bros. on credit 12,000
Mar. 5 Bought a handcart for delivering goods to customers 20,000
Mar. 7 Received from salesmen for goods sold by him after deducting commission of Rs.300 6,000
Mar. 9 Drawn a cheque for personal use 1,600
Mar. 10 Varun Bros. gave cheque; deposited in the bank 12,000
Mar. 11 Paid to Aakash Bros. by cheque 13,400
Discount Allowed by them 600
Mar. 13 Paid for repairs of furniture 400
Mar. 13 Received an order for goods from lucky 10,000
Mar. 14 Sold old newspapers 160
Mar. 15 Interest received from bank 800
Mar. 16 Paid Rs.600 for expenses of goods sold to Varun Bros. This amount to be realised
from Varun Bros.
Mar. 19 Bought goods from Siddharth 800
Paid cartage on these goods 100
Mar. 20 Bank intimates that the cheque of Varun Bros. has been returned dishonoured
Mar. 21 The handcart bought on 5th March met with an accident resulting in complete loss. Its
salvage was sold for Rs.1,000
Mar. 22 Paid rent by cheque 1,200
Mar. 23 Salaries for the month of February remain unpaid 600
Mar. 25 Paid municipal taxes in cash 1,600
Mar. 31 Depreciation charged on furniture@ 10%.
Received an order for goods Rs.10,000 from Soham and received Rs.2,000 as
advance

ANSWERS
Date Particulars L.F. Debit Credit
2017 Cash A/c Dr. 60,000
Mar. 1 Stock A/c Dr. 30,000
Furniture A/c 40,000
To Capital A/c 1,30,000
Mar. 2 Bank A/c Dr. 40,000
To Cash A/c 40,000
Mar. 3 Purchases A/c Dr. 14,000
To Aakash Bro. s 14,000
Mar. 4 Varun Bro. s Dr. 12,000
To Sales A/c 12,000
Mar. 5 Handcart or Vehicle A/c Dr. 20,000
To Cash A/c 20,000
Mar. 7 Cash A/c Dr. 6,000
Commission Paid A/c 300
To Sales A/c 6,300
Mar. 9 Drawings A/c Dr. 1,600
To Bank A/c 1,600
Mar. 10 Bank A/c Dr 12,000
To Varun Bros. 12,000
Mar. 11 Aakash Bros. Dr 14,000
 To Bank A/c 13,400
To Discount Received A/c 600
Mar. 13 Repairs A/c Dr. 400
To Cash A/c 400
Mar. 13 In receipt of an order or on placing an order or tender, no entry
will be passed, because it is not a transaction
Mar. 14 Cash A/c Dr 160
To Sundry Receipts A/c. 160
Mar. 15 Bank A/c Dr. 800
To Interest Received A/c 800
Mar. 16 Varun Bros. Dr. 600
To Cash A/c 600
Mar. 19 Purchases A/c Dr 800
Cartage A/c Dr. 100
To Sidharth 800
To Cash A/c 100
Mar. 20 Varun Bros. Dr. 12,000
To Bank A/c 12,000
Mar. 21 Cash A/c Dr. 1,000
Profit and Loss A/c Dr 19,000
To Handcart or Vehicle A/c 20,000
Mar. 22 Rent A/c Dr. 12,00
To Bank A/c 12,00
Mar. 23 Salaries A/c Dr 600
To Salaries Outstanding A/c 600
Mar. 25 Municipal Taxes A/c Dr 1,600
To Cash A/c 1,600
Mar. 31 Depreciation A/c Dr. 4,000
To Furniture A/c 4,000
Cash A/c Dr. 2,000
To Soham 2,000

CASHBOOK

1.
2. Record the following transactions in the single column cash book of Ajay: [4]
2017 Rs.
Oct 1 Cash in hand 13,000
Oct 3 Goods sold for cash 9,500
Oct 5 Bought goods for cash 6,700
Oct 8 Paid Salary 3,000
Oct 11 Cash deposited in bank 5,500
Oct 13 Bought office furniture 4,000
Oct 15 Cash sales Rs. 20,000 of which Rs. 12,000 are banked on Oct. 16
Oct 19 Bought goods from Sohan 5,800
Oct 21 Withdrew cash from bank for office use 2,500
Oct 23 Paid Sohan in full settlement of his account 5,600
Oct 25 Paid Amit by cheque 2,000
Oct 27 Paid carriage Rs. 500, rent Rs. 800 and life insurance premium Rs.600
Oct 31 Paid electricity charges Rs. 1,100 and insurance premium Rs.800
3. Prepare Two Column Cash Book from the following transactions: [4]
2021

Cash in hand 800

June 1
Bank Overdraft 5,700
June 7 Received a cheque from Bharti 3,250
June 9 Deposited the above cheque into bank
June 12 Paid to Bhavana by cheque 2,425
June 15 Bharti's cheque returned dishonoured
June 20 Withdrew from Bank for office use 250
Cheque received from Panna Lal and endorsed it in favour of Kamal on 28th
June 25 1,200
June
June 30 Income Tax paid by cheque 150
June 30 Bank charges 25

ANSWER
Cash Book
Dr. Cr.
Date Particulars L.F. Cash Bank Date Particulars L.F. Cash Bank
2016 2016
June 01 To Balance b/d 800 June 01 By Balance b/d 5,700
June 09 To Cheques-in-Hand 3,250 June 12 By Bhavana A/c 2,425
June 20 To Bank A/c C 250 June 15 By Bharti A/c 3,250
June 30 To Balance c/d 8,550 June 20 By Cash A/c C 250
June 30 By Drawings A/c 150
June 30 By Bank Charges 25
June 30 By Balance c/d 1,050
1,050 11,800 1,050 11,800
July 01 To Balance b/d 1,050 July 01 By Balance b/d 8,550

4. Enter the following transactions in cashbook with cash and bank columns: [4]
2017
Feb 1 Started business with cash Rs.50,000.
Feb 3 Opened a bank account in PNB Bank Rs.30,000.
Feb 6 Bought goods by cheque Rs.8,000.
Feb 9 Sold goods to Ram Rs.6,000.
Feb 11 Received a cheque from Ram for Rs.6,000.
Feb 13 Withdrew cash from bank Rs.1,000.
Feb 15 Cheque of Ram deposited into bank.
Feb 18 Paid salary Rs. 2,000 in cash & rent Rs. 1,000 By cheque.
Feb 21 Bank informed that cheque of Ram returned dishonoured.
Feb 23 Bank charges Rs.200.
Feb 26 Withdrew cash from bank for office use Rs. 2,000 & for personal use Rs. 1000.
5. Enter the following transactions of Chaudhary & Co with Cash & Bank columns. [6]
2021 Particulars Amount (Rs.)
Mar 1 Commenced business with Cash ………………………………….. 95,100
Mar 3 Deposited into Bank ……………………………………………….. 40,000
Mar 4 Bought goods for Cash …………………………………………….. 13,200
Mar 6 Bought goods and made the payment by cheque……………………... 12,000
Mar 7 Honoured their own acceptance by cheque…………………………….. 2,100
Mar 8 Withdraw from bank buying motorcycle for personal use ………..... 22,000
Mar 13 Sold goods (Costing Rs. 1,800) for…………………………………… 2,250
Mar 15 Capital introduced and deposited into bank on the same way…….. 21,000
Mar 18 Commission received and deposited into the bank on same day….. 12,000
Mar 20 Goods sold to Anil Kumar……………………………………………… 11,210
Mar 22 Received cheque from Anil Kumar……………………………………….. 11,000
Mar 31 Deposited cash in excess of 2,000 into bank.

***END OF EXAMINATION***