UNIT-1
INTRODUCTION
PRACTICE PROBLEMS
I. Write the journal entries for the following transactions:
1. Commenced business with cash Rs 600000
2. Purchased goods from Rohan Rs 200000
3. Cash Purchases Rs 50000
4. Purchased goods from Sudha for cash Rs 25000
5. Purchased goods from Sudhakar, Payment made by cheque Rs 18000
6. Sold goods to Manohar Rs 80000
7. Sold Goods Rs 225000
8. Goods sold to Amit for cash Rs 50000
9. Sold goods to Rakesh, amount received through cheque Rs 25000
10. Purchased Furniture Rs 12000
11. Purchased Machinery from XYZ Co Rs 10000
12. Purchased furniture from Sohan through cheque Rs 6000
13. Sold old typewriter Rs 3000
14. Sold Machinery to Lokesh Rs 5000
15. Sold Furniture to Laxman through cheque Rs 7000
16. Goods returned to Rohan Rs 3000
17. Goods returned by Manohar Rs 2500
18. Cash paid to Shivam Rs 6000
19. Cash received from Sonu Rs 3000
20. Cheque received from Aniket Rs 5000
21. Cheque paid to Balraj Rs 2000
22. Loan taken from Raghu Rs 100000
23. Cash withdrawn for personal use Rs 3000
24. Cash withdrawn from bank for personal use Rs 4000
25. Goods withdrawn for personal use Rs 1500
26. Cash withdrawn from bank for office use Rs 2000
27. Salaries paid Rs 20000
28. Paid for advertising expenses Rs 5000
29. Commission received Rs 4000
30. Interest paid Rs 1500
31. Commission received through cheque Rs 3000
32. Office expenses paid through cheque Rs 1200
33. Paid rent to landlord Rs 3000
34. Paid rent to landlord by cheque Rs 3500
35. Received interest from Srikar Rs 1700
36. Cash deposited in bank Rs 75000
37. Cash received from Ajit Rs 14500; Discount allowed Rs 500
38. Cash paid to Ashish Rs 11800, discount Rs 200
39. Goods distributed as charity Rs 1000
40. Goods distributed as free samples Rs 800
41. Paid Income Tax Rs 12000
42. Outstanding salaries Rs 10000
43. Prepaid Expenses Rs 5000
44. Bad debts Rs 2000
45. Bad debts recovered Rs 1000
46. Interest on capital Rs 3000
47. Interest charged on drawings Rs 1000
48. Depreciation on furniture Rs 500
49. Received Rs 4800 from Nathan in full settlement of his account of Rs 5000
50. Issued cheque to Godrej & Co For Rs 17950 in full settlement of their account of Rs
18000
51. Borrowed Rs 35000 from Nitin
52. Business started with cash Rs 50000, Machinery Rs 20000, and Furniture Rs 5000
(Opening Entry)
53. Business started with the following Assets and Liabilities
Cash – 80000, Debtors – 25000, Machinery -10000, Furniture – 8000, Creditors –
25000, Loan – 50000.
2. Journalize the following transactions in the books of shanti Ltd.
2016
Jan 1 shanti commenced business with cash 14000
Jan 3 Purchased goods from Rajesh 3000
Jan 4 Purchased goods for cash 4000
Jan 5 Purchased goods for cash from Anil 1000
Jan 6 Sold goods for cash 8000
Jan 7 Sold goods to Radha 12000
Jan 9 Purchased goods 2000
Jan 10 Paid cash to Rajesh 3000
Jan 15 Paid wages 500
Jan 20 Paid salaries 1000
Jan 24 Received interest 1500
Jan 28 Purchased furniture from Harish 5000
Jan 31 Sold old Typewriter 600
3. Transactions for Akhilesh for April 2013 are given below, Journalize them.
2013
April 1 Akhilesh started business with cash 200000
April 3 Paid into bank 175000
April 4 Bought goods for cash 25000
April 7 Drew cash from bank for office use 10000
April 8 Bought from Kiran goods on credit 42000
April 15 Received from Krishna 20800
Allowed him discount 200
April 19 Paid to Kiran 41700
Discount Received 300
April 25 Bought goods for cash 20000
April 28 Paid rent 15000
April 30 Paid salaries by cheque 28000
4. Journalize the following transactions:
Dec 1 Pramod commenced business with 45000
Dec 4 Cash deposited into Corporation bank 20000
Dec 6 Goods purchased for cash 6500
Dec 10 Goods sold to Gopi for cash 7200
Dec 15 Purchased furniture by cheque 2800
Dec 20 Borrowed from Nara Hari 2000
Dec 22 Commission received from Hari 275
Dec 24 Purchased goods from Krishna for Rs 2000, Trade discount @ 2%
Dec 25 Cash withdrawn from bank for office use 5800
Dec 27 Goods distributed as free samples 2000
Dec 30 Paid for charities 2500
Dec 31 Paid office manager salary to Jayaram 1500
5. Journalise the following transactions in the books of Mr. Ram Krishna:
2007
July 1 Mr. Ram Krishna Started business with cash 2,00,000
July 4 Goods purchased in cash 20,000
July 5 He deposited in Bank 40,000
July 7 Goods sold 15,000
July 10 Goods purchased from Mr. Kamlesh on credit 25,000
July 11 Furniture purchased 18,000
July 12 Wages paid 4,000
July 20 Interest received 500
July 25 Cash paid to Mr. Kamlesh 25,000
July 30 Additional capital brought by Mr. Ram Krishna 50,000
6. Journalize the following transactions in the Books of Ranga Rao with Narration.
2006
June 1 Ram commenced business with cash 10,000
June 2 Paid to Bank 8,000
June 3 Bought goods for cash 500
June 4 Bought Furniture for office 400
June 10 Withdrew from Bank cash for office 1,000
June 13 Goods sold to Shyam 600
June 15 Bought goods of Krishan 410
June 18 Trade Expenses paid 100
June 19 Received cash from Shyam 590, Allowed him discount 10
June 25 Wages paid 50
June 28 Krishan paid off in full settlement of his account 400
June 30 Rent paid 100
June 30 Interest on capital 500
7. Journalise the following transactions in the books of Imran:
2012
Jan 1 Commenced business with cash Rs.5,00,000
3 Purchased furniture for cash Rs.20,000
5 Deposited with Bank Rs.30,000
6 Goods worth Rs.2000 given as charity.
10 Sold goods to Ramakrishnan on credit Rs.10,000
15 Bought from Raman & Co. goods worth Rs.50,000 at 10% trade discount
18 Received a first and final dividend of 70 paise in the rupee from the official receiver
Of Mr. Rakesh Who owed in Rs.10,000
20. Received Rs.9750 from Ramakrishnan in full settlement of his account for
Rs.10,000
21. Goods worth Rs.3,000 were used by the proprietor for personal use.
[Link] goods costing Rs.2,000to Madan issued invoice at20% above cost less 5%
trade discount
28. Stationery purchased for Rs.50
31. paid salaries Rs.3000
8. Journalise the following transactions and prepare the necessary Ledger Accounts in
the books of Ram
2015
DATE PARTICULARS AMOUNT
Jan 1 Ram Commenced Business with Cash 100000
Jan 3 Deposited in bank 50000
Jan 12 Purchased Furniture 30000
Jan 20 Purchased goods from Rohan 5000
Jan 22 Sold goods for cash 8000
Jan 23 Paid advertisement expenses 3000
Jan 26 Received Commission from Sarat 500
Jan 30 Paid salary to Arun 1000
9. Journalize the following transactions, post them in the Ledger and balance the
accounts on 31st December.
1. X started business with a capital of ` 20,000
2. He purchased goods from Y on credit ` 4,000
3. He paid cash to Y ` 2,000
4. He sold goods to Z ` 4,000
5. He received cash from Z ` 6,000
6. He further purchased goods from Y ` 4,000
7. He paid cash to Y ` 2,000
8. He further sold goods to Z ` 4,000
9 He received cash form Z ` 2,000
10. Prepare the Trial Balance from the following ledger extracts:
Cash a/c 5000
Capital a/c 20000
Purchases a/c 50000
Sales a/c 70000
Suresh a/c 10000 (Debit Balance)
Ramesh a/c 13000 (credit balance)
Drawings a/c 500
Discount allowed a/c 50
Discount received a/c 20
Salaries a/c 7000
Wages a/c 470
Plant a/c 30000
11. Prepare a Trial Balance from the following information:
Capital a/c 80000
Sales 90000
Debtors 10000
Discount allowed 2000
Purchases 100000
Salaries 2000
Drawings 40000
Creditors 5000
Cash in hand 5000
Bank overdraft 25000
Furniture 50000
12. The following Trial Balance needs redrafting. Prepare the correct Trial Balance
PARTICULARS DEBIT AMT CREDIT AMT
Capital 8950
Drawings 1050
Opening stock 3380
Purchases 23100
Salaries 6205
Sales 39425
Lighting 310
Equipment 3600
Carriage outwards 230
Carriage inwards 105
Returns outwards 290
Provision for bad debts 350
Discount allowed 315
Rent and rates 1115
Motor vehicle 1475
Cash in hand 110
Sundry creditors 4925
Sundry debtors 13920
Bank overdraft 975
13. Prepare the Trial Balance from the following balances on 31-3-2013
Particulars Amount
Capital 168000
Stock 210000
Drawings 50000
Purchases 360000
Sales 720000
Discount allowed 7000
Salaries 75000
Sales returns 30000
Purchase returns 20000
Debtors 45000
Creditors 67000
Wages 12000
Cash 261000
Bank overdraft 75000