Management Accounting Assignment 1

Problem 1 : Journalise the following transactions :

1. Purchased office furniture from M/s Khira furniture works for Rs. 1,600 half of the amount being
paid in cash.
2. Returned goods to Maharashtra Industrial Suppliers of the value of Rs. 2,500 as the same
were not as per order.
3. Sold goods to N. Swami of Nagpur on credit for Rs. 400.
4. Received Rs. 120 from Arvind on behalf of Rajkumar.
5. C. Chand started business with Rs. 5,000 borrowed from his wife as loan and Rs. 10,000 of
his own.
6. Received Rs. 475, from M/s Manohar and Co. in full settlement of Rs. 500.

Problem 2: Journalise the following transactions in the books of N. Kulkarni.

2004 Sept.
1. Nandini commenced the business with Cash Rs: 10,000, Goods Rs. 5,000 and Loan from Mr.
Anil Rs. 1,000.
3. Purchased goods from Jagannath Rs. 5,000, on credit at 5% T.D.
4. Nandini deposited Rs. 4,000 with the United Western Bank A/c.
5. Returned goods to Jagannath Rs. 500 gross.
7. Appointed Mr. Ajay as an Accountant on Rs. 150 p.m.
11. Purchased dog for cash Rs. 900.
12. Sold goods to Surendra on credit Rs. 5,00.0 at 10% T.D.
15. Cash paid to Sudhir on behalf of Chandrashekhar Rs. 300.
16. Surendra paid half the amount of goods.
25. Issued a cheque to Jagannath of Rs. 4,250 in full settlement.

Problem 3 : Journalise the following transactions in Journal of S. Suresh.

2004
Aug. 16 Suresh sold his private Car for Rs. 8,500 and brought the proceeds into business of which
Rs. 4,000 were deposited into Bank.
Aug. 18 Gave loan to Mahesh Rs. 2000 by cheque.
Aug. 20 Paid Rs. 200 for repairs of Machinery.
Aug. 21 Received a cheque for Rs. 900 from Shri. Vasant, our debtor, on account and he was
allowed discount Rs. 20.
Aug. 25 Suresh purchased a cycle for his son for Rs. 400
Aug. 26 Cash sales Rs. 1000
Aug. 28 Sold old furniture for Rs. 560
Aug. 29 Purchased a scooter for business in exchange of goods Rs. 4,500
Aug. 31 Received interest Rs. 20 on loan given to Mahesh.

Problem 4 : Journalise the following transactions. 1994

Jan. 1 Arvind commenced business with cash Rs. 5000
Jan. 2 He brought goods from Shri. Desai on credit Rs. 2050
Jan. 3 Sold goods for cash to Shri. Balaji Rs. 700
Jan. 6 Withdrew for daughter's marriage Rs. 1000
Jan. 9 Sold goods on credit to Shri. Nair of Rs. 650
Jan. 16 Received commission Rs. 75
Jan. 27 Received from Nair Rs.200
Jan. 28 Paid salaries in cash Rs. 400
Jan. 29 Bought office furniture on credit from Shri. Bose Rs. 800
Jan. 30 Returned goods to Desai Rs. 250
Problem 5: Journalise the following transactions in the Journal of 'Amitkumar'.
2004
Aug. 1 He started business with cash Rs. 15,000/- Goods Rs.4,000/- Machinery Rs. 10,000/- and
loan from Mrs. Amitkumar Rs. 5,000/-
Aug.5 Paid into United Western Bank Ltd Rs. 10,000/-
Aug. 7 Purchased goods from Kishor Kumar Rs. 8,000/- at 10% Trade discount on credit
Aug.9 Sold goods to Rajkumar on credit Rs. 5,000/-
Aug.15 Paid salary Rs. 300/-, Rs. 200/- by cheque and Rs. 100/ by cash
Aug. 18 Drew from Bank for personal use Rs. 700/-
Aug.25 Paid cash to Pradipkumar Rs. 500/- on behalf of Anupkumar.

Problem 6 : Journalise the following transactions in books of Mr. A. Anant for the month of March 2004
1. Anant started business with cash -Rs.10,000/-, Machinery Rs. 7000/-, Goods Rs. 8000/- and
he was also borrowed Rs. 5000/- from his friends Mr. Ashok.
2. Exchanged goods of Rs. 600/- for payment of Rent Rs. 800- balance being paid in cash.
3. Sold goods to Rahul of Rs. 4000/- at 10% Trade discount and 5% Cash discount, 25% amount
received in cash.
4. Paid interest on loan taken from Ashok Rs. 50/-.
5. Ordered one typewriting machine of Rs. 2500/- to Godrej Co.
6. Anant settled Prasad's account by Rs. 1,250/- (Account was having balance of Rs. 1300/-)
7. Goods of Rs.1000/- were destroyed by fire and Insurance company paid Rs.900/- only.
8. Purchased goods of Rs.1000/- when 5% Trade discount and 2% Cash discount is received.

Problem 7: Journalise the following Transactions and Post them into Ledger and Prepare the Trial
Balance.
2004
April 1 Mr. 'A' commenced business with cash Rs. 5,000.
April 4 Sold goods for cash Rs. 2,000.
April 6 Purchased goods from Mr. T. Kumar Rs. 1000 @ 5% Trade Discount.
April 12 Sold goods to Mr. Desai Rs. 2,500.
April 15 Paid Office Rent Rs. 1,000.
April 18 Received interest Rs. 675.

Problem 8: Journalise the following transactions in the books of Anand.

Sr. Date
No. Jan. 2003
1 1 Anand commenced business with Rs. 10,000 of his own and Rs. 5,000 borrowed from his
friend Ratan.
2 2 Opened a current account in the Bank of India by depositing Rs. 3,000.
3 2 Purchased goods worth Rs. 2,000 from M/s. Kishor & Co. subject to trade discount of 2%.
4 3 Credit sales of Rs. 4,000
5 4 Cash sales of Rs. 2,000 to Shinde.
6 5 Purchase of furniture costing Rs. 1,000, of which furniture of Rs. 200 was for residential to
Kamat. quarters of Anand.
7 6 Received cash Rs.1,980 from Kamat on account and he was allowed cash discount Rs.20.
8 8 Cash purchases of Rs.1, 000. Paid carriage Rs.20.
9 8 Withdrew from bank Rs.2, 000 for office use.
10 10 Returned goods of Rs.60 to Kishor & Co.
11 15 Paid Cash Rs.900 to Kishor & Co. who allowed us discount Rs.10
12 16 Received a cheque for Rs.100 in exchange of cash from Raju.
13 18 Received commission Rs.100 from M/s. Shah & Sons.
14 20 Sale of goods to Kadam Rs.500.
15 21 Distributed goods of Rs.50 as free samples.
16 22 Goods of Rs.100 were used by Anand for his private purposes.
17 25 Paid Rs. 400 to Shashi on behalf of our creditor, Kishor & Co.
18 30 Our debtor Kamat paid our office Rent Rs. 250.
19 30 Received goods returned by Kadam Rs. 50.
 20 31 Anand brought into business sale proceeds of his personal scooter Rs. 2,500.
21 31 Invested Rs. 2,000 in the shares of Eagle Co. Ltd.
22 31 Received Rs. 445 from Kadam in full settlement of his dues.

Problem 9: Enter the following transactions in the Journal of Vivek.

2004
March 1 Vivek transferred Rs. 10,000 from his private bank account to business bank account.
10 Gave a cheque for Rs. 2,000 to Nitin on account.
11 Purchased Stationery of Rs. 100.
15 Received a cheque for Rs. 880 from our debtor Madan in full settlement of his account
for Rs. 900. 20 Sold old office furniture for Rs. 800.
25 Gave loan to Sudhir by cheque Rs. 2,000 at 10% interest p.a.
26 Bought furniture of Rs. 1,800 in exchange of goods from S. & Co.
Goods of Rs. 2,000 were given at 10% trade discount.
27 Paid life insurance premium Rs.250 by cheque on the life of Vivek.
30 Purchased Machinery of Rs. 8,000, paying half the amount in cash from Bharat Ltd.
31 Amount due from Patki Rs. 500 is proved to be irrecoverable and has to be written off as
bad
18 Purchased Furniture of Rs. 1,200 from M & Co. on credit.
20 Returned one chair of Rs. 200 to M & Co.
23 Paid office rent Rs. 500 by cheque.
25 Received commission Rs. 400.
28 Paid commission to an agent Rs. 100.
29 Paid salaries in cash Rs. 900.
31 Received rent from sub-tenants Rs. 100.
31 Paid Rs. 300 in cash and Rs. 200 by cheque to M/s. M & Co. on account.
31 Withdrew cash from bank for office use Rs. 1000 and for personal
use 200.

Problem 10 : Journalise the following transactions and post them to Ledger and balance the accounts.
Also prepare a Trial Balance as on 30th April,2003

April – Ravi started business with Rs. 15,000 of which Rs. 4,000 were borrowed at 15%
2003 p.a. from Shri. Shashi.
2 Purchased goods worth Rs. 4,000 from Anant at 2% trade discount.
3 Cash sales to Madan Rs. 1,200.
6 Credit sales to Rs. 2,000 less trade discount 2%.
9 Paid cash Rs. 1,950 to Anant and received discount of Rs. 10.
12 Received Rs. 1,950% from in full settlement of his dues.
14 Returned goods of the price of Rs. 100 to Anant.
16 Paid into bank Rs. 5,000.
18 Issued a cheque for Rs. 1,000 to Anant on account.