Problem I:Jornalise the following transactions, post them to ledger and balance the accounts.

March 2010 1) Santosh started his business with cash Rs.1, 00, 000. 2) Purchased furniture from Yadhav on credit Rs.15000. 3) Bought goods for cash from Manish Rs. 7,000. 4) Sold goods on credit to Amar Rs.10, 000. 5) Sold goods for cash to Joshi Rs.5, 000. 6) Paid cash to Yadhav Rs.15000. 8) Goods purchased on credit from Nahar Rs20, 000. 9) Sold goods on credit to Naidu Rs.12, 000. 11) Received cash due from Amar Rs.10, 000. 14) Joshi returned goods sold on 5th in cash Rs.5, 000. 15) Received cash from Naidu Rs.11, 000. 20) Paid Office Salaries Rs.50, 000 & Rent Rs.2 5,000. 28) Received Commission Rs.1000. Solution: Date Particulars L.F Debit 2010 Cash A/C Dr. 1,00,000 March.1 To Santosh s Capital A/C (Being Business started with cash) Furniture A/C Dr. 15,000 2 To Yadhav s A/C (Being furniture purchased on credit) Purchases A/C Dr. 7,000 3 To Cash A/C Credit 1,00,000

15,000

7,000

4 5 6 8 9 11 12

(Being cash purchases from Manish) Amars A/C Dr. To Sales A/C Cash A/C Dr. To Sales A/C Yadhavs A/C Dr. To Cash A/C Purchases A/C Dr. To Nahar s A/C Naidus A/C Dr. To Sales A/C Cash A/C Dr. To Amars A/C Return Inwards A/C Dr.

10,000 10,000 5,000 5,000 15,000 15,000 20,000 20,000 12,000 12,000 10,000 10,000 5,000 5,000

To Cash A/C 15 Cash A/C To Naidus A/C 20 Office Salary A/C Rent A/C To Cash A/C 28 Cash A/C To Commission A/C

Dr. Dr. Dr.

11,000 11,000 50,000 25,000 75,000

Dr.

1,000 1,000

Problem II:Jornalise the following transactions, post them to ledger and balance the accounts. Also prepare a Trial Balance as on 31st April 2009. 1) Ravi started business with Rs.1, 50,000 of which Rs. 40,000 were borrowed at 15% p.a. from Shri Shashi. 2) Purchased goods worth Rs.40,000 from Anant at 2% trade discount 3) Cash sales to Madan Rs. 12,000 4) Credit sales to Salvi Rs.20,000 less trade discount 2%

5) Paid cash Rs.1950 to Anant & received discount of Rs.10 6) Received Rs. 19500 from Salvi in full settlement of his dues. 7) Returned goods of the price of Rs.1000 to Anant. 8) Paid into Bank Rs.50,000 9) Issued a cheque for Rs.10, 000 to Anant on account. 10) Purchased goods of Rs.20, 000 from Anant. 11) Sold goods costing Rs.10, 000 at 25% profit to Ratan. 12) Received commission Rs.8000 from S&Co. 13) Received cash of Rs.3950 from Ratan & he was allowed discount Rs.50 14) Ratan returned goods of Rs.500 15) Paid interest on loan of Rs .500 to Shashi 16) Paid Salaries Rs.20, 000 out of which Rs. 12,000 paid by cheque. 17) Paid into bank Rs.5, 000. 18) Paid Office rent by cheque Rs.3,000 Solution: Date Particulars L.F Debit 2009 Cash A/C Dr. 1,50,000 April.1 To Capital A/C To Shashis Loan A/C (Being Business started with cash and loan) Purchases A/C Dr. 39,200 2 To Anants A/C (Being credit purchases.) Cash A/C Dr. 12,000 3 To Sales A/C (Being cash sales) 4 SalvisA/C Dr. 19,600 To Sales A/C Anants A/C Dr. 5 To Discount A/C Yadhavs A/C Dr. 15,000 6 To Cash A/C 8 Purchases A/C Dr. 20,000 Credit 1,10,000 40,000

39,200

12,000

19,600

15,000

To Nahar s A/C 9 Naidus A/C To Sales A/C 11 Cash A/C To Amars A/C 12 Return Inwards A/C To Cash A/C 15 Cash A/C To Naidus A/C 20 Office Salary A/C Rent A/C To Cash A/C 28 Cash A/C To Commission A/C

20,000 Dr. Dr. Dr. 12,000 12,000 10,000 10,000 5,000 5,000 Dr. Dr. Dr. 11,000 11,000 50,000 25,000 75,000 Dr. 1,000 1,000

Problem III:Journalize the following transactions, in the books of Shri .Gajanan April 2009. 1) 2) 3) 4) 5) 6) 7) Gajanan started business with cash Rs.71, 000. Purchased goods from Mahesh Rs.20, 000 on credit. Deposited cash into Bank of India Rs.30, 000. Sold goods to Dhanraj Rs.25000 on credit. Purchased Furniture of Rs.10, 000 in cash. Paid Mahesh by cheque Rs.10, 000. Paid Salary by cheque Rs.40, 000.

Problem IV:Journalize the following transactions, in the books Of Mr.Sachin March2008. 1) Commenced business with cash Rs. 1, 00,000. 2) Purchased goods for cash Rs.50, 000. 3) Sold goods for cash Rs.70, 000.

4) 5) 6) 7) 8) 9)

Deposited cash into Bank of India Rs.40, 000. Paid commission Rs.1, 000. Withdraw cash from Bank of India for office use Rs.5, 000. Paid for stationery Rs. 10,000. Paid for office rent Rs. 20,000. Paid for Salaries Rs. 60,000.

Problem V:Journalize the following transactions, in the books Of Mr. Mehta, May 2008. 1) Mr. Mehta commenced business with cash Rs. 1, 10,000, and Furniture Rs.50, 000. 2) Opened an account in SBI by depositing Rs. 50,000. 3) Cash purchases Rs.40, 000. 4) Cash sales Rs.20, 000. 5) Purchased goods worth Rs. 10,000 from Sanjay Co. to trade discount of 2%. 6) Credit sales to Kalpesh Rs.8, 000. 7) Paid cash Rs. 4,900 to Sanjay who allowed us discount Rs. 100. 8) Goods distributed as free samples of Rs.1, 000. 9) Received cash from Kalpesh Rs.2, 950 on account & allowed him cash discount Rs.50. 10) Returned goods of Rs. 500 to Sanjay & Co. 11) Purchased Shares of Rs.10, 000 of Reliance Co. 12) Received goods returned by Kalpesh Rs.100. 13) Salaries paid by cheque Rs.6, 000.