Problem No 1.
Journalise the following transactions for the month of January 2024.
Jan 1. Started business with cash Rs.1,00,000 and building Rs.75,000.
Jan 5. Opened bank account by depositing Rs. 27,000.
Jan 7. Purchased goods worth Rs.76000 from Anirudh and paid cash of
Rs.26,000 immediately.
Jan 9. Paid cash to Anirudh Rs.49,000 in full settlement of his account.
Jan 10. Sold goods to Vishal worth Rs.1,00,000 and received cash
Rs.20,000 immediately.
Jan 12. Paid commission Rs.5,000.
Problem No 2
Journalize the following transactions for the month of Feb. 2024.
Feb 1 Started business with cash Rs.25,000 and furniture Rs.30,000
Feb 2 Opened bank account by depositing Rs.28,000.
Feb 5 Purchased goods from Shalini Traders worth Rs.78,000
Feb6 Sold goods to Shah & Co. worth Rs.79,000
Feb 8 Paid cash Shalini Traders Rs.75,000 in full settlement of their
account.
Feb 9 Received cash from Shah & Co. Rs.78,000 in full settlement of their
account.
Feb 10 Paid commission Rs. 6,000.
Feb 13 Paid Salary Rs.5,000 and Rent Rs.7,000.
Feb 15 cash withdrawn for personal use Rs.750.
Feb 18 Cash withdrawn from bank for office use Rs.1,000.
Feb 20 Paid to Ishwar Rs.6,500 and received discount of Rs.500.
Feb 28 Paid for stationery Rs.700 and insurance premium Rs.300.
Problem No. 3
From the following transactions pass the necessary journal
entries for the month of January 2025.
Jan.1 Started business with the following assets
Cash Rs.50,000, Furniture Rs.30,000, Building Rs.50,000.
Jan 5. Purchased goods from Aditi Traders worth Rs.50,000
Jan 8. Sold goods for cash Rs.50,000
Jan 14. Opened bank a/c by depositing Rs.40,000
Jan 15. Withdrawn cash from bank for personal use Rs.5,000.
Jan 18. Paid cash to Aditi traders Rs.49,000 in full settlement.
Jan 25. Paid commission of rs.400
Jan 30 Paid salary Rs.4,000 and rent Rs.3,000.
Problem No.4
From the following transactions pass the necessary journal entries and prepare
ledger accounts for the month of January 2025.
Jan. 1 Started business with cash of Rs.1,00,000
Jan.2 Opened bank account by depositing Rs.10,000
Jan. 3 Purchased goods worth Rs.40,000 for cash.
Jan.5 Sold goods worth Rs.50,000 for cash.
Jan.6 Withdrawn cash for personal use Rs.5,000
Problem No. 5
From the following transactions prepare cash a/c, purchases a/c and sales a/c
for the month of march 2025.
Mar. 1 Started business with cash Rs.1,50,000
Mar.4 Opened bank account by depositing r.s10,000.
Mar. 5 Purchased goods from Arun worth Rs.50,000
Mar.6 Sold goods to Arti worth Rs.40,000.
Mar.8 Purchased goods for cash rs.5,000.
Mar.10 Sold goods for cash Rs.7,000.
Mar. 12 Received cash from Arun Rs.40,000.
Mar.15 Paid cash to Arti Rs.30,000.
Mar.18 Purchased stationery Rs.500.
Mar.20 Paid salary rs.8,000.
Problem No.6
From the following particulars prepare cash a/c and balance the same for the
month of May 2025.
May 3. Started business with cash Rs.50,000.
May 5. Opened bank account by depositing Rs.5,000.
May 6. Purchased goods for cash Rs.20,000.
May 9. Sold goods for cash Rs.25,000.
May 10. Withdrawn cash for personal use Rs.2,000.
May 14. Received cash from Avinash Rs.40,000.
May 18. Paid rent Rs.5,000.
May 20. Paid cash to Akash rs.5,000.
May 25. Paid salary of Rs.5,000.
Problem No. 7
A company purchased Machinery worth Rs.2,00,000 on 1 st January, 2020. Accounting
year of the company closes on 31st December every year. Company provides
depreciation at 10% p.a. on the original cost. Prepare machinery a/c for 3 years.
Problem No. 8
A Ltd. Purchased a machine on 1st April 2019 at a cost of Rs.4,00,000. The firm writes off
depreciation at 15%p.a. on original cost every year. The books are closed on 31 st March
every year. Prepare machinery a/c for the first 4 years.
Problem No.9
A machine was purchased on January 1, 2021 for Rs.1,00,000. It is decided to charge
depreciation on this machine at 10%p.a. on diminishing balance method. Prepare
machinery a/c for the first 3 years. The books are closed on 31 st December every year.
Problem No.10
Wisdom enterprises purchases plant and machinery for Rs.1,00,000 on 1 st April 2022. It
decides to write off depreciation 20% per annum on written down value method. Show
machinery a/c for the first four years. The accounting year ends on 31 st March every year.
Problem No.11
From the following trial balance of Mr. Arjun prepare financial statements for the
year ending 31/3/2024
Particulars Dr (₹) Cr (₹)
Capital — 60,000
Drawings 5,000 —
Adjustments:
Purchases 30,000 —
1. Closing stock valued at ₹5,000.
Sales — 50,000
Returns 1,000 —
2. Outstanding salary ₹600.
Inwards
3. Prepaid rent ₹400.
Returns — 500
4. Depreciate furniture at 10%.
Outwards
Carriage 800 —
Inwards
Rent 2,400 —
Salaries 8,700 —
Furniture 60,000 —
Cash in Hand 2,600 —
Total 1,10,5 1,10,5
00 00
Problem No.12
From the following trial balance prepare financial statement for the year ending
31/3/2020
Particulars Dr. (₹) Particulars Cr. (₹)
Machinery
2,40,000
Cash at Bank
1,00,000
Cash in Hand
50,000
Wages
1,00,000 Capital
Purchases
8,00,000 Sales 9,00,000
Stock on 1st April,
6,00,000 Sundry 16,00,000
2021
4,40,000 Creditors 4,50,000
Sundry Debtors
2,90,000 Interest 30,000
Furniture
45,000 Received
Rent
25,000
Commission
80,000
General Expenses
50,000
Salaries
29,80,000 29,80,000
Additional Information
(i) Outstanding Salaries were ₹ 45,000.
(ii) Depreciate Machinery at 10%.
(iii) Wages outstanding were 5,000.
Problem No. 13
The following are the balances extracted from the books of Raghunath as on 31 st March 2017. From these
balances, prepare his Trading and Profit & Loss account and Balance Sheet.
SL.N Name of Account Debit Credit
o. (Rs.) (Rs.)
1 Opening stock 12,000
2 Purchases & sales 40,000 86,000
3 Returns 6,000 4,000
4 Discount 400
6 Building 50,000
7 Debtors & Creditors 16,000 10,800
8 Salaries 2,400
9 Office expenses 1,200
10 Wages 10,000
11 Travelling expenses 2,600
12 Interest 800
13 Capital 62,000
14 Fire insurance premium 800
15 Machinery 20,000
16 Carriage inwards 700
17 Cash in hand 2,300
Total 1,64,000 1,64,00
0
Adjustment:-
1. Closing Stock was valued at ₹ 16,000.
2. Wages ₹ 2,000 and salaries ₹ 1,200 are outstanding.
3. Depreciate Buildings by 5% and machinery by 10%.
(ANS: Gross profit = Rs.35,300, Net profit = Rs.23,800, Closing capital = Rs.85,800, Balance sheet
total = Rs.99,800)
Problem No. 14
From the following Trial balance, prepare financial statements in the books of Shanti
Traders for the year ending 31st March 2024.
SL.N Name of Account Debit Credit
o. (Rs.) (Rs.)
1 Capital & Drawings 1,760 30,000
2 Purchases & sales 8,900 15,000
3 Returns 280 450
4 Freight charges 2,000
6 Building 22,000
7 Debtors & Creditors 6,500 1,200
8 Salaries 800
9 Advertisement 240
10 Wages 800
11 Trade expenses 200
12 Interest 650
13 Opening stock 1,200
14 Insurance premium 430
15 Furniture 800
16 Cash at bank 1,200
17 Cash in hand 190
Total 47,300 47,300
Adjustments:
1. Stock on 31/3/2024 was valued at Rs.10,000
2. Insurance prepaid to the extent of Rs.100.
3. Outstanding salaries Rs.200.
4. Depreciate building by 5%
(ANS: Gross profit = Rs.12,270, Net profit = Rs.10,050, Closing capital = Rs.38,290, Balance sheet
total = Rs.39,690)