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Basics of accounting
Preparation of Personal accounts

1. Mr. Ram regularly deals with Mr. Sanket, following transactions took place between them during Sept 2018
5 Spet Ram bought goods of Rs.48,500 from Mr. Sanket on credit
10 Sept Ram Paid Rs.15,000 to Mr. Sanket by cheque
22 Sept Ram again bought goods of Rs.36,000 from Mr. Sanket on credit
25 Spept Ram paid off balance amount due to Sanket on account of goods bought on 5th Sept
30 Spet Ram returned goods of Rs.1,000 to Sanket as the goods were not in accordance with his order
Prepare Sanket’s account.

2. Mr. Babulal usually sells goods to Mr. Motilal, following transaction were entered by Mr. Babulal with Mr.
Motilal
1st July Sold goods having MRP of Rs.35,000 to Motilal at discount of Rs.5,000 on two weeks credit
14th July Received a cheque of Rs.20,000 from Motilal
24th July Received cash of Rs.8,000 from Motilal
24th July Sold goods of Rs.15,000 to Mr. Motilal on credit basis
28th July Motilal issued a cheque for balance due from him after adjusting Rs.1,000 as discount for early payment
Prepare Mr. Motilal’s account.

3. Mr. Summet buys goods from M/s Tata Sons Ltd on credit basis, following transactions were entered by him
1st Oct 2018 Bought raw material of Rs.7,000 from M/s Tata Sons on credit basis
8th Oct 2018 Bought goods worth Rs.15,000 from M/s Tata Sons on credit basis
th
15 Oct 2018 Paid Rs.5,000 to M/s Tata Sons in cash
22nd Oct 2018 Paid Rs.10,000 to M/s Tata Sons by cheque
28th Oct 2018 Returned raw material of Rs.2,000 to M/s Tata Sons
st
31 Oct 2018 Balance due to Tata Sons was paid off through a cheque
Prepare M/s Tata Sons account

4. Mr. Yogesh entered following transactions with Mr. Uday

2nd Aug Received a cheque of Rs.4,000 as advance from Uday
10th Aug Supplied goods of Rs.15,000 to Mr. Uday
12th Aug Received a cheque of balance due from Mr. Uday
15th Aug Supplied goods of Rs.17,500 to Mr. Uday on credit
25th Aug Mr. Uday returned goods of Rs.1,000
Prepare Mr. Uday’s account

5. Mr. Dipak is a trader of Bicycles, during March 2018, he made following transaction with his customer Mr. Dinesh
2nd Mar Sold 20 Atlas Cycles having price of Rs.1,000 each on credit basis
10th Mar Sold 30 Small cycles of Rs.500 each on credit basis
18th Mar Received a cheque of Rs.18,000 from Dinesh
19th Mar One small cycle was returned by Dinesh as it was defective
25th Mar Received a cheque of Rs.10,000 from Mr. Dinesh
Prepare Dinesh’s Account
6. Mr. Gopal is a Wholesaler of Cement; following transactions took place between him and his supplier M/s
Ambhuja Cement Co.
4th April bought 100 Tons of Cement @ Rs.400/ton
4th April 1 Ton cement was damaged during transit due to suppliers fault for which deduction is to be made while
making payment
10th April Paid Rs.25,000 through cheque to M/s Ambhuja Cement co.
15th April bought 50 Tons of cement @ Rs.400/ton
20th April Paid Rs.30,000 in cash to M/s Ambhuja Cement co
24th April Returned 2 tons of cement as the same was of different description than ordered
Prepare M/s Ambhuja Cement co’s account

7. Mr. Naveen regularly sells goods to Mr. Nutan on credit, on 1st April 2018 balance due from Mr. Nutan is Rs.5,000,
following transactions took place between Naveen and Nutan in the month of April 2018
7th Apr Sold goods of Rs.20,000 to Mr. Nutan at 5% trade discount
10th Apr Received a cheque of Rs.15,000 from Mr. Nutan
12th Apr Sold goods of Rs.13,000 to Mr. Nutan on credit basis
15th Apr Mr. Nutan paid Rs.10,000 in cash and returned goods of Rs.4,000 as the same were not of required
quality
nd
22 Apr Mr. Nutan bought goods of Rs.10,000 from Mr. Naveen on credit
28th Apr Balance due from Mr. Nutan was settled by him in cash
Prepare Mr. Nutan’s Account

8. Mr. Shyam regularly buys goods from Mr. Kumar on credit basis. As on 1st June 2015, Mr. Shyam owes Rs.34,000
to Mr. Kumar, following transactions took place between them in the month of June
3rd June Mr. Shyam issued a cheque of Rs.25,000 to Mr. Kumar
7th June Bought goods of Rs.48,000 from Mr. Kumar on credit
10th June Returned goods of Rs.4,000 to Mr. Kumar
12th June Bought goods of Rs. 20,000 from Mr. Kumar, out of which Rs.8,000 paid through cheque immediately
18th June Balance due to Mr. Kumar was paid off in cash after he allowed cash discount of Rs.1,000
25th June Bought goods of Rs.40,000 on credit from Mr. Kumar at 10% Trade discount
Prepare Mr. Kumar’s Account

9. Mr. Digvijay has entered following transactions with his customer Mr. Surajsingh
6th April Sold goods of Rs.85,000 on 1 months credit to Mr. Surajsingh
15th May Received a cheque of Rs.80,000 from Mr. Surajsingh against goods sold earlier
24th May Sold goods of Rs.140,000 to Mr. Surajsingh with a condition that half of the amount to be paid in cash
immediately and balance to be paid within 2 months
17th July Balance due from Mr. Surajsingh was settled in cash
24th July Received a cheque of Rs.50,000 as advance from Surajsingh
1st Aug Sold goods of Rs.86,000 to Mr. Surajsingh
1st Dec Mr. Surajsingh become insolvent and only 50% of amount due from him could be recovered from his
estate
Prepare Mr. Surajsingh’s Account

10. As on 1st Aug 2018, Mr. Anil Kapoor owes Rs.34,000 to Mr. Bony Kapoor, following transactions took place
between them
7th Aug Mr. Anil bought goods of Rs.26,000 from Mr. Bony
10th Aug Mr. Anil settled balance due to Mr. Bony by cheque after deducting Rs.5,000 as discount
15th Sept Mr. Anil bought goods of Rs.40,000 from Mr. Bony on credit
20th Oct Mr. Anil returned goods of Rs.2,000 to Mr. Bony
25th Oct Mr. Anil sold his old car to Bony for Rs.50,000 out of which Rs.20,000 was paid off in cash
30th Nov Mr. Anil bought goods of Rs. 24,000 from Mr. Bony
Prepare Mr. Bony’s Account
11. As on 1st April 2018, Mr. Suyog owes Rs.8,500 to Mr. Lokesh, following transactions took place between them
8th Apr Mr. Lokesh sold goods of Rs.5,000 to Mr. Suyog
th
10 Apr Mr. Suyog settled account with Mr. Lokesh by issuing a cheque in his favour
11th Apr Mr. Suyog bought material worth Rs.20,000 on credit from Mr. Lokesh
15th Apr Mr. Suyog returned goods worth Rs.1,000 to Mr. Lokesh
18th Apr Mr. Lokesh requested Mr. Suyog to clear off his dues to which Mr. Suyog immediately agreed and issued
a cheque for the balance due
th
25 Apr Mr. Suyog issued a cheque of Rs.20,000 as advance to Mr. Lokesh
28th Apr Mr. Lokesh sold goods of Rs.28,500 to Mr. Suyog
Prepare Suyog’s account in the books of Lokesh.

12. On 1st June 2018, Mr. Jivan owes Rs.15,000 to Mr. Tushar, following transactions took place between them
10th June Mr. Tushar sold goods of Rs.35,000 to Mr. Jivan, out of which Mr. Jivan immediately paid Rs.10,000 in
cash.
11th June Mr. Jivan returned goods of Rs.2,000 as the same were defective
12th June Mr. Jivan bought goods of Rs.25,000 from Mr. Tushar on credit basis
18th June Balance due to Tushar was settled off by cheque after adjusting discount of Rs.1,000.
25th June Mr. Jivan issued a cheque of Rs.10,000 as advance to Mr. Tushar
28th June Mr. Jivan bought goods of Rs.18,000 from Mr. Tushar
Prepare Mr. Tushar’s account in the books of Mr. Jivan.

13. On 1st July 2018, Mr. Adhia owes Rs. 12,500 to Mr. Wadra, following transactions took place between them
8th July Mr. Adhia bought goods of Rs.30,000 on credit from Mr. Wadra
10th July Mr. Adhia returned goods of Rs.1,500 due to defects in the goods
18th July Balance due to Mr. Wadra was settled in cash after adjusting Rs.500 as discount
25th July Mr. Wadra sold goods of Rs.10,000 to Mr. Adhia against which Mr. Adhia immediately issued a cheque
of full amount
th
28 July Mr. Adhia paid Rs.25,000 as advance to Mr. Wadra
30th July Mr. Adhia bought goods of Rs.15,000 from Mr. Wadra
Prepare Mr. Adhia’s Account.
14. Mr. Rakesh has following customers to whom he sells goods on credit
(i) Ramesh (ii) Mr. Umesh (iii) Mr. Suresh
During the month of Feb 2019, following transactions took place between Mr. Rakesh and his customers
1st Feb Sold goods to Mr. Umesh having retail price of Rs.10,000 on one weeks credit to Mr. Umesh at 10%
below retail price
nd
2 Feb Sold goods of Rs.20,000 to Mr. Ramesh on credit basis on the condition that 25% amount to be paid in
cash immediately
5th Feb Sale of goods to Mr. Suresh of Rs.10,000 against 100% cash payment
10 Feb Mr. Umesh cleared outstanding bill of 1st Feb through cheque
th

11th Feb Sold goods of Rs.18,000 to Mr. Ramesh on credit basis at a condition that if payment is made within 3
days he will be given 5% cash discount
13 Feb Mr. Ramesh paid off his outstanding amount of 11th Feb in cash
th

15th Feb Goods of Rs.25,000 were sold on credit to Mr. Suresh

18th Feb Sold goods of Rs.18,000 to Mr. Umesh on one weeks credit, with the condition that interest of Rs.50/day
would be charged for payment after one week
22nd Feb Balance due from Mr. Ramesh settled at 5% cash discount
23rd Feb Sold goods of Rs.5,000 to Mr. Ramesh on credit basis
28th Feb Amount due from Mr. Umesh recovered along with 3 days interest
Prepare personal a/c’s of Mr. Ramesh, Mr. Umesh and Mr. Suresh in the books of Mr. Rakesh
15. With the help of following information prepare ledger accounts of following persons in the books of Mr. Dhoni
Name of the party Balance o/s as on 01.04.2019
Debit Credit
Mr. Virat 15,000
Mr. Rohit 18,000

01.04.19 Sold goods of Rs.5,000 to Mr. Virat on two weeks credit

05.04.19 Issued a cheque of Rs.12,500 in favour of Mr. Rohit
07.04.19 Bought material worth Rs.10,000 from Mr. Rohit on cash basis
10.04.19 Bought material worth Rs.8,000 from Mr. Rohit on credit basis
11.04.19 Received cheque of Rs.10,000 from Mr. Virat
12.04.19 Cheque received from Mr. Virat was dishonoured by the bank, charges levied by bank Rs.150. (charges
are to be recovered from the customer)
15.04.19 Virat returned goods of Rs.2,500 and paid cash of Rs.8,000
16.04.19 Virat become insolvent and nothing can be recovered from his estate
22.04.19 Balance due to Rohit paid off through cheque

16. Mr. Govind had cash in hand of Rs.15,000 as on 1st April 2018, following transactions took place during April 2018
1st Apr Paid wages of Rs.50
2nd Apr Sold goods of Rs.5,000 on cash basis
rd
3 Apr Deposited cash of Rs.3,000 in HDFC bank saving account
4th Apr Bought stationery of Rs.250
5th Apr Received Rs.8,000 from Mr. Mahesh
th
6 Apr Bought goods of Rs.6,000 on cash basis
7th Apr Purchased goods of Rs.4,000 from Mr. Sujeet on credit
8th Apr Received cash of Rs.2,500 as commission
th
9 April Paid Rs.5,000 as salary
Prepare Cash account.

17. Prepare Personal A/c’s from following data

Opening Balance Kunal 20,000 Dr Sohel 18,000 Cr
Transactions
a. Sold goods of Rs.6,000 to Kunal on credit basis
b. Issued a cheque of Rs.10,000 in favour of Sohel
c. Paid Rs.2,500 to Sohel towards Rent of property
d. Purchased goods of Rs.10,000 from Sohel, out of which Rs.3,000 paid in cash
e. Kunal returned goods of Rs.1,200
f. Kunal Agreed to pay Rs.5,000 to Sohel on our behalf to which Sohel also agreed
g. Sold goods of Rs.15,000 to Kunal on credit, freight of Rs.500 paid in cash which was to be recovered
from him along with price of goods
h. Kunal paid Rs.8,000 by Cheque

18. Prepare all relevant personal a/c’s in the Books of Mr. Jalnawala & Sons from following data
a. Purchased goods of Rs.25,000 from M/s Poona Traders on credit
b. Sold goods of Rs.16,000 to Mr. Nandedkar, half amount received in cash
c. Bought Furniture of Rs.10,000 on credit from M/s Hydrabadi Wood store
d. Bought stationery of Rs.1,000 from M/s Delhi Stationers on cash basis
e. Old furniture of Rs.1,250 sold to M/s Hydrabadi wood store
f. Received Rs.5,000 from Mr. Nandedkar
g. Goods of Rs.5,000 were returned back to M/s Poona Traders
h. Sold goods of Rs.14,000 to M/s Nashik Enterprises on credit
i. Issued a cheque of Rs.10,000 to M/s poona Traders
 j. Bought a Computer from M/s Banglore Trading co. of Rs.25,000, old computer valued at Rs.5,000
was given in exchange. Remaining amount to be paid in one week
k Mr. Nandedkar returned goods of Rs.1,000 and also paid balance due from him in cash
l. Balance payable to Hydrabadi Wood store paid after adjusting discount @ 5%
m. Received Rs.10,000 through cheque from M/s Nashik enterprises
n. Paid Rs.7,500 to M/s Gujrat Traders as advance for goods to be supplied by them

19. Prepare all relevant personal a/c’s (except Bank) from following data in the books of M/s Shri. Traders
a. Sold goods of Rs.15,000 to Mr. Suresh on credit (previous years balance due from him is Rs.10,000)
b. Bought goods of Rs.25,000 from Mr. Sunil on credit (Previous years balance due to them Rs.8,600)
c. Goods of Rs.2,400 returned back to Mr. Sanjay from whom goods were bought on credit last year worth
Rs.16,000. (no amount is paid to them with respect to this purchase)
d. Issued a cheque of Rs.20,000 to Mr. Sunil as part payment of amount payable to them
e. Received cash of Rs.10,000 and cheque of Rs.12,500 from Mr. Suresh.
f. Amount due to Mr. Sanjay was paid in full after adjusting cash discount of Rs.500
g. Balance due from Mr. Suresh is not likely to be recovered; hence it is to be written off.

20. Following transaction relates to M/s Jay Trading co., prepare all personal a/c’s (except Bank) from following data
a. Opening Balance i) Mr. Ajay Rs.5,000 (Dr) ii) Mr. Vijay Rs.8,000 (Cr)
b. Goods of Rs.15,000 bought from Mr. Sanjay on credit.
c. Sold goods of Rs.6,000 to Mr. Ajay on cash basis.
d. Received a cheque of Rs.12,000 from Mr. Ajay.
e. Bought goods of Rs.21,500 from Mr. Vijay of which 50% amount paid by cheque immediately.
f. Sold on credit goods of Rs.30,000 to Mr. Ajay at 5% discount.
g. Goods of Rs.1,000 returned back to Mr. Sanjay and balance due to them paid in cash.

21. Following transaction relates to M/s Jay Trading co., prepare Cash and Bank a/c from following data
a. Opening Balance Cash Rs.6,000 (Dr) and Bank 15,000 (Dr)
b. Sold goods of Rs.15,000 on cash basis
c. Paid Telephone bills of Rs.1,000 by cheques
d. Received Rs.15,000 from Mr. Sujit in cash
e. Paid Rs.8,000 towards rent in cash
f. Bought goods of Rs.6,000 from Mr. Ajit on credit basis
g. Balance of Rs.14,000 due from Mr. Sujit received in cash after adjusting discount @ 5%

22. Prepare all relevant personal a/c’s and Real a/c’s from following data in the books of M/s Shri Devi & Sons
i. Opening Balances
a) Cash Rs.16,000 (Dr) b) Bank Rs.12,000 (Dr)
c) Ms. Bhagyashri Rs.25,000 (Cr) d) Ms. Aishwarya Rs.17,500 (Dr)
ii) Sold on credit goods of Rs.30,000 to Ms. Aishwarya at 5% discount.
iii) Purchased goods of Rs.5,000 from Ms. Bhagyashri on cash basis
iv) Received a cheque of Rs.10,000 from Ms. Aishwarya
v) Bought stationary of Rs.1,000 on cash basis
vi) bought goods of Rs.16,500 from Ms. Bhagyashri on credit
vii) Deposited cash of Rs.5,000 into Bank.
23. Prepare necessary real & personal accounts from following details, in the books of Shri Vishnu
a. Opening Balances
Cash Rs.12,500 (Dr) Bank Rs.14,300 (Dr)
Shri Ganesh Rs.4,000 (Dr) Shri Mahesh Rs.6,000 (Cr)
b. Bought Goods of Rs.8,000 from Shri Mahesh on 5% Trade discount, half amount paid by cheque.
c. Paid to Shri Kartik Rs.5,000 as Salary for current month
d. Deposited Cash of Rs.5,000 into Bank
e. Sold goods on cash basis Rs.11,000 to Shri Ram
f. Sold on credit goods of Rs.12,000 to Shri Ganesh at 10% Trade discount
g. Received in cash amount due from Shri Ganesh after adjusting 10% cash discount
h. Issued a cheque of Rs.10,000 to Shri Mahesh.
i. Paid office expenses of Rs.1,000 by cheque
j. Received commission of Rs.2,000 from Shri Hanuman in cash

24. Prepare following ledger accounts in the books of Shri Pandit Rao
Opening Balances Cash Rs.8,000 (Dr) Bank Rs.15,000 (Dr)
Shri Subhash Rao Rs.14,000 (Dr) Shri Rao Saheb Rs.9,000 (Cr)
a. Bought on credit goods of Rs.22,000 on cash basis from Shri Rao Saheb
b. Shri Subhash Rao returned goods of Rs.2,000 as the same were not suitable to his needs
c. Withdrawn cash of Rs.5,000 from bank
d. Received Rs.10,000 from Shri Subhash Rao by cheque
e. Paid to Shri Rao saheb Rs.5,000 in cash and Rs.8,000 by cheque
f. Paid rent Rs.2,000, Salary Rs.1,000 and Travelling expenses Rs.1,500 by Cash
g. Sold goods of Rs.5,000 to Shri Subhash Rao against which payment is received by cheque
h. Deposited cash into Bank Rs.2,000
i. Cheque received from Shri Subhash Rao is dishonoured, Bank charges levied by Bank Rs.200 (this amount is to be
recovered from Shri Subhash rao)
j. Balance due from Shri Subhash Rao received in cash in full.
25. Prepare all relevant nominal accounts from following details in the books of Mr. John
a. Paid Rent Rs.6,000
b. Sold goods of Rs.4,000 on cash basis
c. Bought goods of Rs.5,000 on credit from Mr. Max at 5% Trade discount
d. Received Rs.2,000 as Interest on Fixed deposit (this amount is credited by Bank to our current account)
e. Sold goods of Rs.10,000 on credit to Mr. Johnson
f. Bought goods of Rs.3,000 on credit from Mr. Najir
g. Goods of Rs.2,000 sold earlier to Mr. Johnson were returned by him.
h. Paid travelling expenses of Rs.2,500 by cheque
i. bought goods of Rs.8,000 against payment by cheque
j. Received Rs.5,000 as advance from Mr. Sunny.
26. Prepare all relevant nominal accounts from following details in the books of Mr. Sundar
a. Bought goods of Rs.10,000 on 10% trade discount
b. Paid Rs.4,000 as Salary and Rs.2,000 as telephone bill
c. Received commission of Rs.5,000 from Mr. Shoeb
d. Sold goods of Rs.15,000 to Mr. Rohan on credit at 5% Trade discount
e. Purchased goods of Rs.10,000 from Mr. Arun on credit
f. Paid Rs.10,000 as Deposit to the Landlord
g. Sale of goods of Rs.10,000 on cash basis at 5% Cash discount.
h. Travelling expenses of Rs.15,000 were incurred this month out of which Rs.10,000 were paid by cheque
balance remained unpaid.
i. Paid Rs.500 to Mr. Sony as wages.
27. Pass Journal entries for following transactions in the books of Mr. Sujeet Sonune
a. Started business with Capital of Rs.1,50,000 brought into business in following form
Cash Rs.50,000 Furniture Rs.70,000 Computer Rs.30,000
 b. Bought Goods of Rs.85,000 on credit from Mr. Ramesh Rane, Rs.35,000 paid in cash.
c. Sold goods of Rs.30,000 to Mr. Janardan Joshi at 5% Trade discount, Rs.10,000 received in cash
d. Opened an account with State Bank of India by depositing Cash of Rs.20,000
e. Purchased a Printer from M/s Canon Printers for Rs.10,000 entire amount paid by cheque
f. Goods of Rs.15,000 sold on cash basis at 2% Cash discount
g. Paid office Rent of Rs.5,000 in cash
h. Balance due from Mr. Janardan Joshi received in full by cheque after adjusting discount of Rs.100
i. Paid Rs.15,000 in Cash to Ms. Anita Adhav as advance.
j. Paid property Tax of Rs.500 by cheque
28. Pass Journal entries in the books of M/s Sanjay Trading co.
a. Started business with Capital of Rs.80,000 brought in Cash Rs.50,000 and Stock of Rs.30,000
b. Bought Furniture of Rs.20,000 at 5% Cash discount from M/s Anuj Traders
c. Bought goods of Rs.25,000 on credit from M/s Mohit Enterpeises at 10% discount
d. Paid carriage inward of Rs.500 on goods bought
e. Sold goods of Rs.20,000 on cash basis to M/s Hindustan Tiles at 5% Cash discount
f. Distributed as free samples goods of Rs.1,000
g. Paid office expenses of Rs.100
h. Sold on one months credit goods of Rs.30,000 to M/s Sonu Traders at 5% Trade discount
i. Goods of Rs.2,000 withdrawn for personal use
j. Goods of Rs.5,000 returned to M/S Mohit Enterprises on which 10% discount was allowed
29. Pass Journal entries for following transactions in the books of Mr. Ajay Atre
a. Bought goods of Rs.30,000 on cash basis at 10% Trade discount and 5% Cash discount
b. Salary paid in cash Rs.3,000
c. Received balance of Rs.60,000 due from Mr. Viju Mhatre after allowing discount @5%
d. Paid Insurance premium of Rs.5,000 with respect to business assets
e. Received dividend of Rs.1,000 on Shares held as business investment.
f. Withdrawn form Bank Rs.5,000 for office use and Rs.1,000 for personal use
g. Goods of Rs.5,000 were lost by fire
h. Received by cheque Rs.3,000 from M/s Reliance insurance co. against goods lost in fire
i. Paid in cash Wages Rs.500, Rent Rs.1,000 and commission of Rs.800
j. Paid advertisement bills of Rs.4,500 by cheque
30. Pass Journal entries for following transactions and prepare necessary ledger accounts from following details
Opening Balances
Particulars Dr Cr
Cash 40,000
Bank 25,000
Capital 72,000
Opening Stock 5,000
Furniture 10,000
Sundry Debtors
- Kishor 8,000
- Susheel 10,000
Sundry Creditors
- Akshay 14,000
- Manoj 12,000
Total 98,000 98,000
Transactions
a. Bought Goods of Rs.26,000 from Mr. Akshay, against which 50% payment received by cheque for which 5%
Cash discount allowed
b. Received Rs.5,000 cash From Mr. Susheel against balance outstanding
c. Sold Goods of Rs.18,000 at 10% Cash disocunt to Mr. Gajanan
d. Amount payble to Mr. Manoj paid at 5% cash discount
e. Paid Office Expenses of Rs.1,000
 f. Deposited into Bank Rs.10,000
g. Paid Rent Deposit of Rs.5,000 by cheque
h. Purchased Furniture of Rs.10,000 and paid Rs.1,000 for its installation
i. Sold Goods of Rs.17,500 at 10% Trade discount to Mr. Kishor
j. Sale of goods against cheque payment Rs.15,000, cash disocunt allowed 10%
k. Issued a cheque of Rs.18,000 in favour of Mr. Akshay
l. Bought goods of Rs.10,000 from Mr. Manoj at 5% Trade discount
k. WIthdrawn from bank Rs.2,000 for personal use
l. Paid wages of Rs.800
Adjustments
a. Charge 5% Depreciation on Furniture
b. Office expenses outstanding Rs.500
c. Goods of Rs.1,000 were destroyed by fire against which insurance co. admitted a claim of Rs.800
d. Closing stock Rs.6,000

31. from following details Pass Journal entries for following transactions and prepare necessary ledger accounts in
the books of Mr. Sanjay
Opening Balances
Particulars Dr Cr
Cash 30,000
Bank 22,000
Capital 127,000
Opening Stock 25,000
Furniture 8,000
Plant & Machinary 25,000
Sundry Debtors
- Ankit 16,000
- Sunil 14,000
- Jagdish 15,000
Sundry Creditors
- Ajay 11,000
- Mohit 17,000
Total 155,000 155,000
Transactions
1. Bought Goods of Rs.30,000 from Mr. Ajay at 10% Trade discount, 1/3rd amount paid by cheque for
which 5% cash discount received
2. Sunil Returned goods of Rs.4,000 from goods sold to him in previous year
3. Received an order for supply of goods from Mr. Jagdish of Rs.15,000
4. Paid Rs.5,000 as Tution fees of Mr. Sanjay’s Son by cheque
5. Supplied goods to Mr. Jagdish as per his order
6. Remitted cash of Rs.10,000 to Mohit
7. Sold goods of Rs.25,000 at 2% Cash discount
8. Sold on credit goods of Rs.36,000 to Mr. Sunil at 5% Trade discount
9. Paid Income Tax (Advance) Rs.5,000
10. Purchased Goods of Rs.15,000 on cash basis.
11. Amount due to Mr. Mohit settled through cheque at 5% discount
12. Bought on credit goods of Rs.20,000 from Ms. Seema at 5% Trade disocunt
13. Deposited into Bank Rs.20,000
14. Sold existing Furniture for Rs.6,000
15. Paid Rent of Rs.5,000 and Salary Rs.6,000
16. Paid Insurance premium of Rs.3,000 for business assets
17. Paid carriage inward on goods purchased Rs.1,500
 18. Amount due from Ankit received after allowing him disocunt of 5%
19. Bought new Furniture of Rs.15,000 against payment by cheque
20. Goods of Rs.1,000 distributed as free sample
21. Interest credited by Bank to our a/c Rs.150
Adjustments
1. Insurance premium paid includes Rs.500 as pre-payment for next year
2. Closing stock Rs.30,000
3. Charge depreciation @ 10% on furniture and @ 15% on Plant & Machinary
4. Outstanding Rent Rs.2,000
5. Goods of Rs.2,000 were withdrawn by Mr. Sanjay for his personal use
32. from following details prepare necessary ledger accounts in the books of M/s Arora & Arora
Opening Balances as on 01-04-2016
Particulars Dr Cr
Cash 32,000
Bank 28,500
Plant & Machinary 30,000
Stock in Trade 18,000
Capital 105,000
Sundry Creditors
- M/s Durga Traders 15,000
- M/s Sanya Motors 20,000
- M/s Sumeet Enterprises 28,000
- M/s Ameen & Sons 19,500
Sundry Debtors
- Mr. Babulal Kothari 11,000
- Ms. Madhuri Kolhe 17,500
- M/s Hanuman Traders 22,000
- M/s Ramlal & co 9,500
- Mr. Bharat Jain 18,000
Bills Receivable 25,000
10% Bank Loan 30,000
Bills Payable 14,000
Land & Building 20,000
Total 231,500 231,500
Transactions during 2016-17
1. Purchase of Goods on cash basis Rs.8,000
2. Purchase of goods from M/s Sanya Motors Rs.40,000, out of which half amount paid by cheque
3. Received a cheque of Rs.10,000 from M/s Hanuman Traders
4. Sold goods of Rs.15,000 to M/s Ramlal & co.
5. Paid Rent from April to Dec 2016 @ Rs.250 p.m. by cheque
6. Purchased on credit goods from following suppliers
a. M/s Sanya Motors Rs.28,000 b. M/s Ameen & Sons Rs.15,000
c. M/s Durga Traders Rs.16,000 d. M/s New General Stores Rs.19,000
7. Paid electricity bills of Rs.1,500 by cheque
8. Sale of goods on cash basis Rs.47,500
9. Received Rs.1,500 as commission from M/s Surajmal & co.
10. Sold on credit goods of Rs.30,000 to Mr. Bharat Jain and of Rs.16,000 to Mr. Akshay Patil
11. paid carriage inward Rs.2,000 and Octroi duty Rs.3,000
12. Paid Rs.25,000 to M/s Sanya Motors
13. Accepted a bill of Rs.10,000 in favour of M/s Durga Traders
14. Returned back goods of Rs.2,000 bought from M/s Sanya Motors
15. Paid Salary @ Rs.1,000 per month for the period April 2016 to Feb 2017
16. Received by cheque Rs.35,000 from Mr. Bharat Jain
 17. Sold on credit to Ms. Madhuri Kolhe goods of Rs.18,000 at 5% Trade discount
18. Received in cash Rs.15,000 from M/s Ramlal & co.
19. Sold on cash basis goods of Rs.20,000 to Mr. Babulal Kothari @ 5% Trade discount
20. Received Rs.10,000 as advance from Mr. Sujata Traders by cheque
21. Issued a cheque of Rs.9,500 to M/s Durga Traders after adjusting Rs.500 as discount for payment made
within due date
22. Received a cheque of Rs.10,000 from Mr. Babulal Kothari for earlier balance due from him
23. Amount due to M/s Summet Enterprises paid fully for which 5% cash discount was allowed.
24. Sold on credit goods of Rs.16,000 to Mr. Babulal Kothari at 5% Trade discount
25. Received Rs.24,000 from Ms. Madhuri Kolhe towards amount due from her, she was allowed discount
of Rs.1,000 for payment made before due date
26. Drawn a bill for balance due from M/s Hanuman Traders payble after 2 months
27. Paid Rs.1,200 as Travelling expenses of proprietors personal travel
28. On 30.09.2016 paid half years interest by cheque due on 10% Bank loan
29. Goods of Rs.1,500 bought from M/s ameen & sons were returned back. His balance was immediately
setteled after adjusting Rs.2,000 as Cash discount.
30. A Bill of Rs.9,000 accepted earlier fell due on 14-10-2016 and it was duly honoured
31. Sold goods of Rs.24,000 at 5% Trade discount to M/s Sujata Traders
32. Goods earlier sold to M/s Ramlal & sons worth Rs.3,000 were returned by him as the same were not
according to his requirements
33. Goods of Rs.5,000 were withdrawn by proprietor for his personal use
34. Goods of Rs.1,000 were returned by Mr. Akshay Patil
35. Bought goods of Rs.16,000 from M/s Sumeet Enterprises on credit at 5% discount
36. A Bill of Rs.15,000 drawn earlier on one of our customer was due this month and it was duly honoured
37. Mr. Ramlal was declared insolvent by the court and entire amount due from him is proved bad debt
38. On 01.10.2016 Additional plant & Machinary of Rs.20,000 was bought against payment by cheque
39. Wages paid for installation of machinary Rs.1,500
33. Mr. P. Chandy started a Wholesale Grocery Shop on 01 April 2016. Following business transactions were entered
by him during the year 2016-17
April 2016 –
a. Started a business with Cash of Rs.1,25,000 brought into business as Capital.
b. Bought Furniture of Rs.40,000 from M/s Furniture World with condition to pay 50% amount in cash and balance to
be paid next month.
c. Bought A Computer in cash for Rs.30,000 from M/s Computer Bazar
d. Bought goods of Rs.50,000 from M/s Surya Manufacturers Ltd on credit at 5% discount
e. Paid carriage inward of Rs.2,000 with respect to goods bought
f. Bought goods of Rs.20,000 from local dealers on cash basis
g. Sold goods of Rs.24,000 on cash basis at 10% Trade discount
h. Bought stationery of Rs.800 on cash basis
i. Opened a Bank account by depositing Rs.10,000
j. Sold goods of Rs.18,000 to M/s Anna Super Shoppe at 10% trade discount on one month’s credit
k. Spent Rs.10,000 on Electrical fittings and Fixtures
l. Paid Rs.10,000 as Rent Deposit to the Landlord (Mr. Sommaya)
m. Sold goods of Rs.50,000 to M/s Tirupati Provision store against which 40% payment is received by cheque and
balance to be paid after a month
n. Paid Shop expenses of Rs.1,800
o. Paid Current month’s Rent Rs.3,000 by cheque
May 2016 –
a. Bought Goods of Rs.35,000 from M/s Motilal Gupta and co.
b. Paid Carriage of goods bought Rs.1,000
c. Sold Goods of Rs.15,000 on cash basis
d. Amount due from M/s Anna Super shopee received in full after adjusting Cash discount of Rs.700
e. Deposited into Bank a cheque of Rs.25,000 received from M/s Tirupati Provision store
f. Paid Rs.5,000 as salary to employees for the month of April 2016 by cheque
g. Paid electricity bills of Rs.850 of previous month by cheque
h. Issued a cheque of Rs.35,000 to M/s Surya Manufacturers ltd
i. Bought Goods of Rs.40,000 at 5% Trade discount from M/s Surya Manufacturers ltd
j. Sold goods of Rs.26,000 to M/s Tirupati provision store
k. Goods of Rs.3,000 returned back to M/s Surya Manufacturers Ltd
l. Amount due to M/s Furniture World paid in full by cheque after adjusting 5% cash discount
m. Sold goods of Rs.20,000 on cash basis at 5% cash discount
n. Sold goods of Rs.30,000 to M/s Devilal Mangilal & co.
o. Paid current month’s rent Rs.3,000 by cheque
p. Deposited into Bank Rs.25,000
June 2016 –
a. Paid Rs.20,000 in cash To M/s Surya Manufacturers Ltd.
b. Paid Salary for May 2016 by cheque Rs.5,000
c. Received a cheque of Rs.21,000 from M/s Devilal Mangilal & Co.
d. Sold goods of Rs.18,000 to M/s Anna super shopee
e. Bought goods of Rs.30,000 from Motilal Gupta & co.
f. Sold goods of Rs.27,000 against payment by cheque
g. Paid Rs.25,000 through cheque to Motilal Gupta & co.
h. Goods of Rs.1,500 returned by Devilal Mangilal & co.
i. Bought stationary of Rs.1,400 in cash
j. Paid electricity bills of Rs.950 by cheque
k. Bought goods of Rs.16,000 from M/s Surya Manufacturers Ltd
l. Mr. P. Chandy withdraws Rs.5,000 from business for his personal expenses
m. Received Rs.30,000 from M/s Tirupati Provision store by cheque
n. Bank charges levied by bank Rs.250
o. Paid current month’s rent Rs.3,000 by cheque

Additional Information
a. Outstanding Expenses : Salary Rs.5,000 and Electricity bills Rs.1,000
b. Charge Depreciation @10% on Computer, @5% on Furniture and @ 15% on Electrical fittings.
c. Unsold stock of Goods lying in the godown Rs.20,000
d. Balance due from M/s Tirupati Provision store is not expected to be recovered hence it should be written off as bad
debts.
e. Unused stationary as on 30.06.2016 is Rs.200

Prepare necessary ledger accounts, Trial balance and Final accounts in the books of Mr. P. Chandy’s books.