Exercise -1

Journalize the following transactions

M/s CRR &Co. started business. He is wholesale TV Dealer,
He had the following assets & liabilities.
-
Bank balance: Rs. 50,000/-
Due from M/S NATIONAL ELECTRONICS Rs. 30,000/-
Due to Videocon & Co Rs. 50,000/-
01.01.2000 Purchase 10 videcon TV sets from Videocon & co @ Per set
15,000/-
02.01.2000 Sold 5 sets of Videocon TV’s 18,000/-
05.01.2000 Purchase 5 Sansui TV from Sansui & co 19,000/-
06.01.2000 Paid into SBI 1,50,000/-
07.01.2000 Paid cheque to Sansui &co Bangalore 95,000/-
09.01.2000 Sold 2 Videocon TV per set 17,500/-
11.01.2000 Sold 3 Sansui TV per set 22,000/-
14.01.2000 Withdraw cash for personal use 5,000/-
15.01.2000 Paid postage 150/-
15.01.2000 Paid carriage on sales 1000/-
16.01.2000 Sold 2 Sansui per set 23,000/-
18.01.2000 Purchase 5 sansei TV from m/s Adytha Arcade 19500/-
23.01.2000 Sold 2 Videocon TV to Sangam Electronic Bellary 18,250/-
28.01.2000 Paid rent through bank 5000/-
29.01.2000 Paid to SBI 65,000/-
30.01.2000 Paid cheque to m/s Adytha Arcade 97,500/-
30.01.2000 Paid salaries 15,000/-

Find the cash &bank Balances & stock Positions

Exercise-2
Company name:- Bar & sons
Old Bus-stand Road
Besides Jamiya masjid
Hospet

Financial Year: 01.04.2000

Following are the opening Balances of Bar & sons as on 01.04.2000
Cash in hand Rs. 10,000/- Cash @ Bank Rs. 15.000/- Buildings Rs.75,000/-
Opening stock
Stock Group Opening
Stock (in nos.) Rate /Nos

Air Coolers
Symphony 02 1,990/-
L.G Air Coolers 05 9,900/-
Voltas A IR Cooler 05 5,500/-

Fans
Crompton Fans 15 1,000/-
Polar Fans 13 1,400/-
Ralli fans 10 1,200/-
Usha fans 8 1,250/-

Refrigerators
Allyn Freeze 5 11,000/-
Godraj Freeze 05 10,000/-
Kelivenator Freeze 05 12,000/-

VCR
Aakai VCR 05 10,000/-
BPL VCR 05 10,000/-
Videocon VCR 05 11,000/-

2-4-2000 Purchase 7 nos of Usha fans @ Rs 1,250/- each from National Electronics for
cash

5-4-2000 Cash Sales

5 nos of Usha Fans @1,400/-Each
5 nos of Crompton Fans @1,250/-Each
5 nos of Ralli Fans @1,350/-Each
5 nos of polar Fans @1,600/-Each

8-4-2000 Sale 2 Nos of Usha Fans @1,400/-Each

2 Nos of Allwyn Freeze @12,500/-Each
2 Nos of Videocon VCR @10,990/-Each
3 Nos of Polar Fans @1,550/-Each
2 Nos of Aakai VCR @10,800/-Each

8-4-2000 Deposited into Bank Rs 15,000/-

10-4-2000 Paid National Electronics Rs 8,750/-by Bank

13-4-2000 Sold on credit to Bhandair Electronics

2 Nos of Godraj Freeze @11,000/-Each
2 Nos of Kelvanator Freeze @12,500/-Each
2 Nos of Akai VCR @11,000/-Each

15-04-2000 Cash Sales

3 Nos of BPL VCR @12,000/-Each
3 Nos of Videocon VCR @11,000/-Each
2 Nos of Ralli Fans @1,300/-Each

20-04-2000 Purchase 5 sets of Videocon VCR @10,000/-Each for cash

22-04-2000 Received DD from Bhandair Electronics Rs. 69,00/-

24-04-2000 Credit Sales to Rajesh Electronics, Raichur

2 Nos Symphony air Cooler @2,500/-
2Nos LG Air Coolers @10,750/-
2 Nos Voltas Coolers @6250/-

30-04-2000 Received Cheque from Rajesh Electronics Rs. 39,000

Paid Rent By Cheque Rs.4000/-
Paid Electricity bill by Bank Rs1500
Paid Salaries Rs.5680/-
Exercise-3
Name of the Company:- Raja Rajeswari Rice Mill
The company is having following opening stock on 1.1.99
Opening Stock

Item Stock Qty (in Bags) Rate

Rice
Sona Masoori 500 1,000/-
Early 900 850/-
Coimbatory 1,200 700/-

Whet
BANSI wheat 480 450/-
Gadag- Hubli Wheat 620 420/-

Toordal
Kitchen Queen 560 1,500/-
Maharani Brand 380 1,350/-
Red Qilla 625 1,325/-

Cash sales
Item Jan 99 Feb 99 Mar 99

Rice
Sona Masoori 248 220 320
Early Sona 330 120 280
Coimbatore 600 140 360

Wheat
Bansi Wheat 160 120 300
Gadag- Hubli Wheat 160 280 110

Toordal
Kitchen Queen 290 310 170
Maharani Brand 120 210 180
Red Qilla 140 75 380

Purchases
Item Rate (Per Bag) Jan 99 Feb 99 Mar 99

Rice
Sona masoori 900/- 200 400 300
Early Sona 800/- 100 - 100
Coimbathore 650/- 100 100 100

Wheat
Bansi Wheat 400/- 200 100 100
Ganag-Hubli WHEAT 375/- 100 100 100

Toordal
KITCHEN Queen 1,400/- 110 100 100
Maharni Brand 1,250/- 150 100 100
Red Qilla 1,250 50 100 50
Find out the Closing balance of each of the Items.

Exercise-4
BHARAT Rolling Mill, Kormangala, Bangalore. Started on 1-4-2001
Opening Balance
Cash:- 1,00,000/- Bank Balance:- 50,000/- Vehicles:- 75,000/-
Building:- 1,25,000/- Plant and Machinery:- 25,000/-

Following are the opening Items.

Items Opening stock Unit Rate Group
10 mm Rods 300 Tons 2,650 Sales Turnover
10 mm SS RODS 100 Tons 3,600 Sales Turnover
16 mm RODS 170 Tons 2,200 Sales Turnover
20mm RODS 200 Tons 1,900 Sales Turnover
8 mm Channels 70 Tons 2,150 Sales Turnover
8 mm Rods 250 Tons 1,550 Sales Turnover
Electrodes 40 Nos. 650 Purchase Consumables
Furnace Oil 120 Lit 140 Purchase Consumables
SS Scraps 200 Tons 2000 Purchase Materials
Steel Scraps 250 Tons 5,500 Purchase Materials

Enter the following transaction in proper vouchers:

01/04/00 Sold goods to Karnataka Rolling Mills, Belgaum 50 Tons of 10 mm Rod s @
2,750/- Excise @12% 0n sales and CST 10%(on Amount +Excise Amount extra Ref. No 051.

03/04/00 Local Cash Sales 10 Tons of 8 mm Channels and 10 Tons of 20 mm Rods at

prescribed rates. Excise duty @ 12% on sales and SST@ 10% on (Amount + Excise Amount)
Ref No 052.

07/04/00 Purchase 100 numbers of Electrodes from Vasvi Traders Chennai @ Rs. 600/-per
Numbers. Carriage Inwards RS.2.000/- Extra.

10/04/00 Sold 25 Tons of 16 mm Rods @ Rs. 2,500/- per ton fro cash. Excise duty @ 10%
and SST 10% on Amount + Excise Amount allowed 5% cash Discount on sales value Ref. No.
053.
12/04/00 Sold goods to Farrah Construction Bellary, 45 Tons of 10 mm SS Rods @ Rs.
3,600/- Excise duty @ 12% on Sales value and SST @ 10% on (Sales + Excise Amount)
Ref.N.054.
15/04/00 Purchase 300 Liters of Furnace oil @ 150/- litter from Madras Industrial
Suppliers Ltd.

16/04/00 Cash purchase 50 Tons of SS Scraps and 30 Tons of Steel scraps at prescribed
rates Discount received @ 50% on Purchase value.

20/04/00 Received DD From Farrah Construction Bellary RS. 1,91,484/-after allowing a

discount of RS.8,100 at the rate of 5% Ref.No.054 Bill.

30/04/00 Sold goods to Farrah Construction 50 Tons of 8 mm Rods and 55 Tons of 10 mm

SS Rods at Prescribed rates. Excise duty of RS.33,060/-@ 12% and SST RS.30,856/-@10% ON
Sales + Excise Amount Discount allowed 5% on sales RS. 13,775/-

CLOSING STOCK
10 mm Rods 250 Tons
10 mmSS Rods NIL
16 mm Rods 145 Tons
20 mm Rods 190 Tons
8 mm Channels 60 Tons
8 mm Rods 200 Tons
Electrodes 140 Tons
Furnance oil 420 Tons
SS Scrap 250 Tons
Steel Scrap 280 Tons

Exercise:5
Name of the Firm: Farrah Zubair & Co.
Address of the firm: Post Box No.786, New Town,
Bhadravathi - 577301
VAT Tin No.: 115562 CST.NAO CO Income Tax No. 786786
Marinating: Accounts only
Financial year: 01.01.98 Books beginning from 01.01.98
Farrah & Zubair are Partner sharing Profit & Losses equally and have agreed to that 5%
interest shall be credited to their Capital A/cs. Plant &Machinery to be Depreciated by
10%Rs.500/- to be written off on Free hold premises. Reverse 5% on Sundry Debtors for
Doubtful Debts.
The following is the trial Balance of their Books as on 31.12.98.
Particulars Debit Credit
Purchase 33,000/-
Stock on 01.01.98(opening stock) 45,000/-
Sundry Debtors 20,000/-
Sundry Creditors 18,000/-
Factory Expenses 1,500/-
Office Expenses 1,800/-
Plant &Machinery 15,000/-
Discount 520/-
Salaries 1,800/-
Freehold Premises 25,000/-
Insurance 1,700/-
Repairs 400/-
Wages 2,300/-
Bad debts 500/-
Sales 90,000/-
Cash in hand 220/-
Cash in bank 11,000/-
Zubair’s Capital 25,000/-
Zubair’s Drawings 1,700/-

Exercise 6

1. Raj commenced business with cash Rs5000

2. Bought goods from keshav for cash Rs500
3. Sold furniture to raghav on credit Rs500
4. Sold goods for cash Rs.800
5. Cash purchases Rs.700
6. Bought stamps Rs.50
7. Withdrawn cash from business for personal use Rs.100
8. Salary paid to manager Rs.300
9. Paid rent to land lord Rs. 500
10. Received commission from Ravi Rs.500
11. Paid for repairing machinery Rs.300
12. Received cash from raghav Rs.400
13. Gave loan to bhaskar Rs.500
14. Purchased goods from raghu Rs. 300
15. Return goods to raghu Rs. 100
16. Opened bank account Rs. 600
17. Charged manohar Rs.150 for service render to him.
18. Charlie agreed to pay interest Rs.100 on amount advanced to him.
19. Office furniture stolen Rs.500
20. Income tax paid Rs.5000.
21. Life insurance premium paid Rs. 300
22. Allowed discount to karunakar Rs. 50
23. Discount received from rangarao Rs.100
24. Amount charged by bank as bank chargesRs30
25. Railway freight paid on machinery purchases Rs1000
26. Till taking [cash sales]for the month Rs1000
27. Sold goods to Bose Rs2000
28. Bose returned goods Rs100

Exercise 7
Journalize the following transactions in the books of Mr Vijay

1. Commenced business with the following : recepit

a. Cash Rs. 60,000
b. Goods Rs. 30,000
c. Furniture Rs. 40,000
d. Building Rs. 70,000
2. Bought goods from Dravid Rs. 50,000. Less trade discount 5% purchase
3. Cash received from Lakshman Rs. 19,000 and allowed him discount Rs. 1000 reciept
4. Opened a bank a/c in SBM and deposited Rs. 10,000. contra
5. Purchased office equipment for cash Rs. 20,000. payment
6. Dravid directly deposited Rs. 30,000 into our bank a/c recepit
7. Paid to Sachin Rs. 29,500 and received discount Rs. 500 payment
8. Goods withdrawn by proprietor for personal use Rs. 4000 journal
9. Sold goods to kohly Rs. 30,000. Trade discount 8%--> sales
10. Paid fright charges Rs.10,000 to sales manager payment
11. Paid fire insurance premium Rs. 5,000 payment
12. Received commission of Rs. 8,000 from yuvraj and paid charity of Rs. 1,000 receipt,
payment

Exercise 8
1. suresh commenced business with cash Rs. 10000
2. paid into bank Rs. 5000
3. purchased goods from Krishna Rs. 4000
4. sold goods to raman Rs. 2000
5. returned goods to Krishna Rs. 100
6. Raman returned goods Rs. 50
7. Bought card, cover and stamps Rs. 20
8. Received from raman on account Rs. 1500
9. paid to Krishna on account Rs. 3000
10. cash sales Rs. 300
11. cash purchases Rs. 700
12. purchased stationery Rs. 30
13. purchased machine from Hindustan Tools Ltd. Rs. 3000
14. Advanced govinda Rs. 1000 as loan.
15. Paid for repairing machine Rs. 100
16. Received cheque from raman on account Rs. 300
17. drew for office use Rs. 1000
18. bought office furniture Rs. 1000
19. Received loan from Borde Rs. 200
20. paid cash to Krishna Rs. 900
21. paid advertisement Rs. 100
22. paid electricity charges Rs. 20
23. paid rent Rs. 500