Accountancy – II 1

ACCOUNT CURRENT
1. The following transactions took place between Chetan and Rahul from 1 st January to 30th
June 2005.
2005 Rs.
Jan 1 Sold goods to Rahul 1,230
Jan 10 Received Rahul ‘s acceptance for 2 months 600
Feb 15 Bought goods from Rahul 1,000
Mar 5 Accepted Rahul ‘s bill for one month 400
April 30 Goods sold to Rahul (Due on May 31) 800
June 15 Rahul returned goods 350
You are required to made an account current to be rendered by Krishna Kumar as on
June 30, 2005, taking interest into account at the rate of 5% p.a.

2. Kumar owed Rs.5,000 on 1st January 2006 to Murali. The following transactions took place
between them during the six months. It was agreed between the parties that interest at the rate of 5% per
annum be charged on the amount.
2006 Rs.
Jan 10 Goods sold to Kumar 2,040
Feb 15 Purchased goods from Kumar 1,000
Feb 20 Goods returned by Kumar 440
Mar 15 Cash received from Kumar 500
Apr 20 Cash paid to Kumar 300
May 25 Goods returned to Kumar 100
Make out an account current to be rendered by Murali to Kumar as on 30th June 2003.

3. Prepare an Account Current be rendered by Bhavani to Lakshmi for the quarter ending
31st March 2006 charging interest at the rate of 12% per annum.
2006 Rs.
Jan 4 Sold goods to Lakshmi 10,000
Jan 15 Received Cheque from Lakshmi 4,000
Jan 20 Received a bill for 3 months from Lakshmi. 2,000
Feb 20 Purchased goods from Lakshmi 3,000
Feb 25 Returned goods to Lakshmi 250
Mar 12 Sold goods to Lakshmi 1,000

4. From the following prepare Account Current to be rendered by Kalyan to Ram as on 30 th

September 2005.
2005 Rs.
July 12 Goods sold to Ram 1,430
July 18 Received Cash from Ram 500
Aug 5 Cash paid to Ram 800
Aug 8 Sold goods to Ram 1,200
Sept 13 Goods returned by Ram 300
Sept 18 Cash received from Ram 400
Interest is to be charged at the rate of 10% per annum.
Accountancy – II 2

5. Make out an Account Current to be rendered by Vani to Bhavani as on 30 th September,

2006.
2006 Rs.
July 1 Balance due to Bhavani 500
July 3 Sold goods to Bhavani 750
July 12 Goods sold to Bhavani due July 27th (Trade discount at 10%) 1,450
July 25 Bills receivable received from Bhavani (Due two months after 4,000
date)
Aug 17 Goods sold to Bhavani at one month credit 1,000
Sept 28 Bhavani dishonoured his bills due this day, noting charges 30

Interest is to be calculated at the rate of 6% p. a. and to the nearest rupee.

6. From the following information prepare an account current to be rendered by Raja to

Kaveri, up to 30th September 2005. Interest to be calculated at the rate of 5% p. a. on the amount.
2005 Rs.
July 12 Goods sold to Kaveri 4,000
July 18 Cash received from Kaveri 1,000
Aug 2 Cash paid to Kaveri 500
Aug 17 Goods returned to Kaveri 100
Sep 10 Bought goods by Kaveri 1,000
Sep 14 Cash received from Kaveri 700

7. From the information given below, prepare an “Account Current” to be rendered by

Ranga to Khan up to 31st December 2006. Interest is to be calculated at 10% p.a.
2006 Rs.
Aug 2 Goods sold to Khan 900
Aug 20 Cash received from Khan 450
Oct 10 Khan purchased goods from Ranga (Due on Nov 10) 2,000
Oct 25 Cash received from Khan 1,500
Nov 2 Goods returned by Khan 300
Nov 30 Cash sent to Khan 1,000

8. The following transactions took place between Gupta and Modi. Prepare Account
Current to be rendered by Rajesh on 30th June 2006.
2006 Rs.
April 1 Balance due from Gupta 4,000
April 20 Cash paid to Gupta 2,400
May 10 Purchased goods from Gupta 1,600
May 25 Goods sold to Gupta 3,000
June 12 A bill for two months drawn on Gupta 2,400
June 25 Goods purchased by Gupta 1,000

Interest to be Calculated at 10% per annum.

Accountancy – II 3

9. Sridevi opened a Current Account in Andrha Bank. Her transactions for three months
ending 30th June 2006 are as follows:
Deposits: Rs.
2006
April 1 4,000
May 20 1,000
June 6 3,000
June 22 6,000
Withdrawals:
May 10 11,000
June 12 2,000
June 15 3,000

Interest is to be charged at the rate of 12% p. a. on debit balances and allowed at the
rate of 2% p. a. on Credit Balances, show the account of the customer in the books of
the bank as on 30th June 2006.
Accountancy – II 4

SOLUTIONS
Solution 1:

Rahul in Account Current with Chetan as on 30th June 2005

Dr. Cr.
Date Particulars No. of Amount Products Date Particulars No. of Amount Products
days Rs. days Rs.
2005 2005
Jan 1 To Sales 180 1,230-00 2,21,400 Jan 10 By Bills Receivable 109 600-00 65,400
(Due Mar 13)
Mar 5 To Bills payable 83 400-00 33,200 Feb 15 By purchases 135 1,000-00 1,35,000
(Due April 8)
April 30 To Sales 30 800-00 24,000 June 15 By Sales returns 15 350-00 5,250
(Due May 31)
June 30 To Interest - 9-99 By Difference in products - - 72,950
June 30 By Balance c/d 489-99
2,439-99 2,78,600 2,439-99 2,78,600
July 1 To Balance b/d 489-99

Difference in products x Rate of Interest

Interest = Rs.9-99
365 x 100

72,950 x 5

365 x 100

Solution 2:
Accountancy – II 5

Kumar in Account Current with Murali as on 30-6-2006

Dr. Cr.
Date Particulars No. of Amount Products Date Particulars No. of Amount Products
days Rs. days Rs.
2006 2006
Jan 1 To Balance b/d 181 5,000-00 9,05,000 Feb 15 BY Purchases 135 1,000-00 1,35,000
Jan 10 To Sales 171 2,040-00 3,48,840 Feb 20 By Sales Return’s 130 440-00 57,200
Apr 20 To Cash 71 300-00 21,300 Mar 15 By Cash 107 500-00 53,500
May 25 To Purchase Returns 36 100-00 3,600 June 30 By Difference in products - - 10,33,040
June 30 To Interest - 141-50 - June 30 By Balance c/d 5,641-50
7,581-50 12,78,740 7,581-50 12,78,740
July 1 To Balance b/d 5,641-50

Difference in products x Rate

Interest 
365 x 100
10,33,040 x 5

365 x 100
= Rs.141-50.

Solution 3:

Lakshmi in Account Current with Bhavani as on 31-3-2006

Dr. Cr.
Date Particulars No. of Amount Products Date Particulars No. of Amount Products
days Rs. days Rs.
2006 2006
Jan 4 To Sales 86 10,000-00 8,60,000 Jan 15 By Bank (cheque) 75 4,000-00 3,00,000
Accountancy – II 6

Feb 25 To Purchase returns 34 250-00 8,500 Jan 20 By Bills Receivable (Due -23 2,000-00 -46,000
April 23)
Mar 12 To Sales (Due Apr 10) -10 1,000-00 - 10,000 Feb 20 By Purchases 39 3,000-00 1,17,000
Mar 31 To Interest - 160-27 - By Difference in products 4,87,500
Mar 31 By Balance c/d 2,410-27
11,410-27 8,58,500 11,410-27 8,58,500
April 11 To Balance b/d 2,410-27

Difference in products x Rate

Interest 
365 x 100

4,87,500 x12

365 x100

 Rs.160  27.

Solution 4:

Ram in Account Current with Kalyan as on 30-9-2005

Dr. Cr.
Date Particulars No. of Amount Products Date Particulars No. of Amount Products
days Rs. days Rs.
2005 2005
Accountancy – II 7

July 12 To Sales 80 1,430-00 1,14,400 July 18 By Cash 74 500-00 37,000

Aug 5 To Cash 56 800-00 44,800 Sept 13 By Sales return 17 300-00 5,100
Aug 8 To Sales 53 1,200-00 63,600 Sept 18 By Cash 12 400-00 4,800
Sep 30 To Interest 48-19 Sept 30 By Difference in products 1,75,900
Sept 30 By Balance c/d 2,278-19
3,478-19 2,22,800 3,478-19 2,22,800
Oct 1 To Balance b/d 2,278-19

Difference in products x Rate

Interest 
365 x 100

1,75,900 x10

365 x100

 Rs.48  19
Solution 5:

Bhavani in Account Current with Vani as on 30th September 2006

Dr. Cr.
Date Particulars No. of Amount Products Date Particulars No. of Amount Products
days Rs. days Rs.
2006 2006
July 3 To Sales 89 750-00 66,750 July 1 By Balance b/d 92 500-00 46,000
July 12 To Sales (Due July 27) 65 1,305-00 84,825 July 25 By Bills Receivable (Due 2 4,000-00 8,000
Sept 28)
Aug 17 To Sales (Due Sept 17) 13 1,000-00 13,000 July 31 By Difference in products 1,18,635
Sep 28 To Bills Receivable 2 4,000-00 8,000 July 31 By Balance c/d 2,604-50
To Cash (Noting 2 30-00 60
charges)
Sep 30 To Interest 19-50
7,104-50 1,72,635 7,104-50 1,72,635
Accountancy – II 8

Oct 1 To Balance b/d 2,604-50

Difference in products x Rate

Interest 
365 x 100

1,18,635 x 6

365 x100

 Rs.19  50

Solution 6:

Kaveri in Account Current with Raja as on 30th September 2005

Dr. Cr.
Date Particulars No. of Amount Products Date Particulars No. of Amount Products
days Rs. days Rs.
2005 2005
July 12 To Sales 80 4,000 –00 3,20,000 July 18 By Cash 74 1,000-00 74,000
Aug 2 To Cash 59 500-00 29,500 Aug 17 By Sales Returns 44 100-00 4,400
Sep 10 To Sales 20 1,000-00 20,000 Sep 14 By Cash 16 700-00 11,200
Sep 30 To Interest 38-34 - By Difference in products 2,79,000
Sept 30 By Balance c/d 3,738-34
5,538-34 3,69,500 5,538-34 3,69,500
Oct 1 To Balance b/d 3,738-34
Accountancy – II 9

Difference in products x Rate

Interest 
365 x 100

2,79,900 x5

365 x100

 Rs.38  34

Solution 7:

Khan Account Current with Ranga as on 31-12-2006

Dr. Cr.
Date Particulars No. of Amount Products Date Particulars No. of Amount Products
days Rs. days Rs.
2006 2006
Aug 2 To Sales 151 900-00 1,35,900 Aug 20 By Cash 133 450-00 59,850
Oct 10 To Sales (Due on Nov 51 2,000-00 1,02,000 Oct 25 By Cash 67 1,500-00 1,00,500
10)
Nov 30 To Cash 31 1,000-00 31,000 Nov 2 By sales returns 59 300-00 17,700
Dec 31 To Interest - 24-89 Dec 31 By Difference in products - - 90,850
Dec 31 By Balance c/d 1,674-89
3,924-89 2,68,900 3,924-89 2,68,900
2004 To balance b/d 1,674-89
Jan 1

Difference in products x Rate

Interest 
365 x 100

90,850 x10

365 x100

 Rs.24  80
Accountancy – II 10

Solution 8:

Gupta Account Current with Modi as on 30-6-2006

Dr. Cr.
Date Particulars No. of Amount Products Date Particulars No. of Amount Products
days Rs. days Rs.
2006 2006
April 1 To Balance b/d 91 4,000-00 3,64,000 April 30 By Cash 71 2,400-00 1,70,400
May 25 To Sales 36 3,000-00 1,08,000 May 10 By Purchases 51 1,600-00 81,600
June 25 To Sales 5 1,000-00 5,000 June 12 By Bills Receivable - 45 2,400-00 - 1,08,000
(Due on August 14)
June 30 To Interest 91-23 June 30 By Difference in products 3,33,000
June 30 By Balance c/d 1,691-23
8,091-23 4,77,000 8,091-23 4,77,000

Difference in products x Rate

Interest 
365 x 100

3,33,000 x10

365 x100

 Rs.91  23
Accountancy – II 11

Solution 9:
Sridevi in Account Current with Andhra Bank as on 30-6-2006
Dr. Cr.
Amount Products
Date Particulars Dr. or Cr. Balance Days
Dr. Cr. Dr. Cr.
2006
April 1 By Cash 4,000 Cr. 4,000 39 1,56,000
May 10 To Cash 11,000 Dr. 7,000 10 70,000
May 20 By Cash 1,000 Dr. 6,000 17 1,02,000
June 6 By cash 3,000 Dr. 3,000 6 18,000
June12 To Cash 2,000 Dr. 5,000 3 15,000
June 15 To Cash 3,000 Dr. 8,000 7 56,000
June 22 By Cash 6,000 Dr. 2,000 8 16,000
June 30 To Interest 82-30
June 30 By Balance c/d 2,082-30
16,082-30 16,082-30 2,77,000 1,56,000
July 1 To Balance b/d 2,082-30

Working Notes:
Interest = Total Products x Rate / 365 x 100
Interest on Debit balances = 2,77,000 x 12 / 366 x 100 = Rs.90-82
Interest on Credit balance = 1,56,000 x 2 /366 x 100 = Rs. 8-52
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Surplus interest (Debit balance) Rs.82-30
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