1.From the following particulars prepare a Bank Reconciliation Statement to find out the causes of difference in
two balances as on August 31st, 2016 for Four Star (Pvt.) Ltd.
(i) Bank Overdraft as per Bank Statement ……………………………………….………. 17,000
(ii) Check issued but not encashed during the August ………………………………….. 2,200
(iii) Dividends on shares collected by banker …………………………….…………….… 2,300
(iv) Interest charged by the bank recorded twice in the Cash Book ……………..……. 500
(v) Check deposited as per Bank Statement not entered in Cash Book ……….…..… 3,400
(vi) Credit side of the Bank column in Cash Book cast short ……………….…………… 1,000
(vii) Clubs dues paid by bank as per standing instruction not recorded in Cash Book … 1,200
(viii) Uncredited check due to outstation …………………………………………………. 3,900
2.From the following particulars, you are required to find out the errors in cash book and bank statement by
using missing method and prepare Bank Reconciliation Statement as on 31-12-2016, for Chand Bibi Ltd:
(i) Bank balance overdraft as per cash book …………………………………………80,000
(ii) Check recorded for collection but not sent to the bank ………………..………… 10,000
(iii) Credit side of the cash book cast short……………………………………………1,000
(iv) Premium on proprietor’s Life Insurance Policy (LIP) paid on standing order…5,000
(v) Bank Charges recorded twice in the cash book ……………………………… 100
(vi) Customer’s check returned by the bank as dishonored ………………………4,000
(vii) Bill Receivable collected by the bank directly on the behalf of company …… 20,000
(viii) Check received entered twice in the cash book …………………… 6,000
(ix) Check issued but dishonored on technical grounds ………………… 3,000
(x) A checks deposited into the bank of worth Rs. 45,000 but Rs. 8,000 check was not collected by bank
3.Prepare a Trial Balance for Shining Brothers Pvt. Ltd. at March 31st, 2017?
Record the following transactions in the Journal and post them into ledger and prepare a Trail Balance
Oct 1st : Neel started business with a capital of 80,000
3rd : Bought goods from Karl on credit 20,000
4th : Sold goods to Tarl 25,000
5th : Cash purchases 25,000
7th : Cash sales 15,000
9th : Goods retuned to Karl 2,000
10th : Bought furniture for 15,000
11th : Cash paid to Karl 12,000
12th : Goods returned by Tarl 3,000
14th : Goods taken by Neel for personal use 3,000
15th : Cash received from Tarl 12,000
16th : Took loan from Parl 30,000
17th : Salary paid 5,000
18th : Bought stationery for 1,000
19th : Amount paid to Parl on loan account 18,000
20th : Interest received 4,000
Solution hide
Journal in the books of Mr. Neel
for the period from Oct 1st, _5 to Oct 20th, _5
V/R
Amount Amount
Date
Particulars
L/F
No.
Oct
–
st
1
(Dr)
Cash a/c
Dr
–
80,000
–
To Capital a/c
(Cr)
80,000
[Being the amount received from Mr. Neel, the proprietor as his capital
contribution vide receipt no:___ dated:__]
3rd
–
Goods/stock a/c
Dr
–
20,000
–
To Karl a/c
20,000
[Being the value of stock purchased from Mr.Karl on credit vide bill no:___
dated:__]
4th
–
Tarl a/c
Dr
–
25,000
–
To Goods/stock a/c
25,000
[Being the value of stock sold to Mr.Tarl on credit vide bill no:___ dated:__]
5th
–
Goods/stock a/c
Dr
–
25,000
–
To Cash a/c
25,000
[Being the value of stock purchased for cash vide bill no:___ dated:__]
7th
–
Cash a/c
Dr
–
15,000
–
To Goods/stock a/c
15,000
[Being the value of stock sold for cash vide receipt no:___ dated:__]
9th
–
Karl a/c
Dr
–
2,000
–
To Goods/stock a/c
2,000
[Being the value of stock returned to Mr.Karl vide bill no:___ dated:__]
10th
–
Furniture a/c
To Cash a/c
Dr
–
–
15,000
15,000
Journal in the books of Mr. Neel
for the period from Oct 1st, _5 to Oct 20th, _5
V/R
Amount Amount
Date
Particulars
L/F
No.
(Dr)
(Cr)
[Being the value of furniture purchased for cash from M/s ___vide bill no:___
dated:__]
11th
–
Karl a/c
Dr
–
12,000
–
To Cash a/c
12,000
[Being the amount paid to Mr. Karl vide voucher no:___ dated:__]
12th
–
Goods/stock a/c
Dr
–
3,000
–
To Tarl a/c
3,000
[Being the value of stock returned by Mr.Tarl vide bill no:___ dated:__]
14th
–
Drawings a/c
Dr
–
3,000
–
To Goods/stock a/c
3,000
[Being the amount of stock taken by Neel for Personal use vide bill no:___
dated:__]
15th
–
Cash a/c
Dr
–
12,000
–
To Tarl a/c
12,000
[Being the amount received to Mr. Tarl vide voucher no:___ dated:__]
16th
–
Cash a/c
Dr
–
30,000
–
To Loan from parl a/c
30,000
[Being the cash received from Mr. Parl as loan vide receipt no:___ dated:__]
17th
–
Salaries a/c
Dr
–
5,000
–
To Cash a/c
5,000
[Being the amount paid for Salaries vide voucher no:___ dated:__]
18th
–
Stationery a/c
Dr
–
1,000
–
To Cash a/c
1,000
[Being the value of Stationery purchased from M/s___ for cash vide bill no:___
dated:__]
19th
–
Loan from parl a/c
To Cash a/c
Dr
–
–
18,000
18,000
Journal in the books of Mr. Neel
for the period from Oct 1st, _5 to Oct 20th, _5
V/R
Amount Amount
Date
Particulars
L/F
No.
(Dr)
(Cr)
[Being the amount paid to Mr. Parl for repayment of loan vide voucher no:___
dated:__]
20th
–
Cash a/c
–
Dr
–
To Interest a/c
[Being the interest received in cash from M/s ____vide voucher no:___
dated:__]
General Ledger
[Books of Mr. Neel]
Cash a/c
DrCr
Date
Particulars
J/F
Amount
Date
Particulars
J/F
Amount
01/10/_5 To Capital a/c
–
80,000
05/10/_5 By Goods/stock a/c
–
25,000
07/10/_5 To Goods/stock a/c
–
15,000
10/10/_5 By Furniture a/c
–
15,000
15/10/_5 To Tarl a/c
–
12,000
11/10/_5 By Karl a/c
–
12,000
16/10/_5 To Loan from parl a/c –
30,000
17/10/_5 By Salaries a/c
–
5,000
4,000
18/10/_5 By Stationery a/c
–
1,000
–
20/10/_5 To Interest a/c
19/10/_5 By Loan from parl a/c –
18,000
–
65,000
31/10/_5 By Balance c/d
tl
1,41,000
–
01/11/_5 To Balance b/d
tl
1,41,000
65,000
Capital a/c
DrCr
Date
Particulars
J/F Amount
31/10/_5 To Balance c/d –
tl
Date
Particulars
80,000 01/10/_5 By Cash a/c
80,000
J/F Amount
–
tl
01/11/_5 By Balance b/d –
80,000
80,000
80,000
4,000
4,000
Goods/stock a/c
DrCr
Date
Particulars
J/F Amount
Date
Particulars
J/F Amount
03/10/_5 To Karl a/c
–
20,000 04/10/_5 By Tarl a/c
–
25,000
05/10/_5 To Cash a/c
–
25,000 07/10/_5 By Cash a/c
–
15,000
12/10/_5 To Tarl a/c
–
3,000 09/10/_5 By Karl a/c
–
2,000
14/10/_5 By Drawings a/c –
3,000
–
3,000
31/10/_5 By Balance c/d
tl
48,000
01/11/_5 To Balance b/d –
tl
48,000
3,000
Karl a/c
DrCr
Date
Particulars
J/F Amount
09/10/_5 To Goods/stock a/c –
Particulars
J/F Amount
2,000 03/10/_5 By Goods/stock a/c –
11/10/_5 To Cash a/c
–
12,000
31/10/_5 To Balance c/d
–
6,000
tl
Date
20,000
tl
20,000
20,000
01/11/_5 By Balance b/d
–
6,000
Tarl a/c
DrCr
Date
Particulars
J/F Amount
04/10/_5 To Goods/stock a/c –
tl
Date
–
J/F Amount
25,000 12/10/_5 By Goods/stock a/c –
–
12,000
31/10/_5 By Balance c/d
–
10,000
tl
25,000
10,000
Furniture a/c
DrCr
Date
Particulars
10/10/_5 To Cash a/c
J/F Amount
–
tl
01/11/_5 To Balance b/d –
Date
Particulars
J/F Amount
15,000 31/10/_5 By Balance c/d –
15,000
15,000
15,000
15,000
3,000
15/10/_5 By Cash a/c
25,000
01/11/_5 To Balance b/d
Particulars
tl
Drawings a/c
DrCr
Date
Particulars
J/F Amount
14/10/_5 To Goods/stock a/c –
tl
–
01/11/_5 To Balance b/d
Date
Particulars
J/F Amount
3,000 31/10/_5 By Balance c/d –
3,000
3,000
3,000
tl
3,000
Loan from parl a/c
DrCr
Date
Particulars
19/10/_5 To Cash a/c
J/F Amount
–
31/10/_5 To Balance c/d –
tl
Date
Particulars
18,000 16/10/_5 By Cash a/c
J/F Amount
–
30,000
12,000
30,000
tl
30,000
01/11/_5 By Balance b/d –
12,000
Salaries a/c
DrCr
Date
Particulars
17/10/_5 To Cash a/c
J/F Amount
–
tl
01/11/_5 To Balance b/d –
Date
Particulars
J/F Amount
5,000 31/10/_5 By Balance c/d –
5,000
5,000
5,000
tl
5,000
Stationery a/c
DrCr
Date
Particulars
18/10/_5 To Cash a/c
J/F Amount
–
tl
01/11/_5 To Balance b/d –
Date
Particulars
J/F Amount
1,000 31/10/_5 By Balance c/d –
1,000
1,000
1,000
tl
1,000
Interest a/c
DrCr
Date
Particulars
J/F Amount
31/10/_5 To Balance c/d –
tl
Date
Particulars
4,000 20/10/_5 By Cash a/c
4,000
J/F Amount
–
tl
01/11/_5 By Balance b/d –
4,000
4,000
4,000
Trial Balance
[Modern Method]
Trial Balance of Mr. Neel as on 31/10/_5
Particulars
Amount
Amount
(Dr)
(Cr)
L/F
Cash a/c
–
65,000
–
Capital a/c
–
–
80,000
Goods/stock a/c
–
3,000
–
Karl a/c
–
–
6,000
Tarl a/c
–
10,000
–
Furniture a/c
–
15,000
–
Drawings a/c
–
3,000
–
–
12,000
Loan from parl a/c –
Salaries a/c
–
5,000
–
Stationery a/c
–
1,000
–
Interest a/c
–
–
4,000
Total
1,02,000 1,02,000
Subsidiary Books
Subsidiary books are books of original entry. In the normal course of business, a majority of transactions are
either relate to sales, purchases or cash. So we record transactions of the same or similar nature in one place, i.e.
the subsidiary book. And we record these transactions in chronological order.
This actually saves a lot of man-hours and tiresome clerical work. Instead of journalizing each entry, they are
recorded into various subsidiary books. Think of your subsidiary book as sub-journals that record only one type
of transaction.
There is no separate entry for these transactions in the general ledger. The posting to the Ledger Accounts is
done from the subsidiary book itself. This method of recording is known as the Practical System
of Accounting or sometimes the English System.
One thing to remember is that such a system does not violate the rules of Double Entry System. We have still
recorded the transactions according to this system. All transactions are still affecting two accounts. Only instead
of a journal, we are using subsidiary books as the books of original entry.
Types of Subsidiary Books
The following are the subsidiary books a company will generally maintain while writing their accounts,

Cash Book- It is a book which records the receipts and payment of cash transaction.

Purchase Book- It is a book which records all the credit purchases of goods of the company.

Purchase Return Book- It is a book which records all the return of credit purchases of goods of
the company.

Sales Book- It is a book which records all the credit sales of goods of the company.

Sales Return Book- It is a book which records all the return of credit sales of goods of the company.

Bills Receivable Book- It is a book which records all the bills receivable.

Bills Payable Book- It is a book which records all the bills payable.

Journal Proper- All the transactions which are not recorded in the above books are recorded here.
It’s Advantages
Let us now take a look at some of the advantages these subsidiary books provide in the process of accounting
i.
Saving Labour Hours: Recording in a subsidiary book saves a lot of time and clerical hours. Firstly
there is no need to journalize and/or give narrations for every transaction. This helps reduce the time it
takes to completely record a transaction. Also since we use a number of subsidiary books, various
accounting process can be undertaken simultaneously. This will save the time of the clerks/accountants.
ii.
Division of Work: In place of one general journal, we have several subsidiary books, So the resulting
work may be divided among several members of the staff. This will save time, improve efficiency and
result in fewer errors as well.
iii.
Specialization of Work: If one person maintains the same subsidiary book over many years he acquires
full knowledge and understanding of the work. We can say he becomes a specialist in one type of
transaction (say purchases for example). He becomes very efficient in handling such transactions and
hardly any error gets made.
iv.
Easy for Reference: When transactions of all types are in the same subsidiary book it becomes easy to
search for them. Whenever any information is needed we directly refer the subsidiary book to get said
information.
v.
Easier for Checking: If the Trial Balance does not match, it will be much easier to locate the error
thanks to the existence of separate books i.e. a subsidiary book. Same goes if you want to detect fraud.
Record the following transactions in the Sales books of M/s. M and Co.
Date
Details
10
Aug
Sold to A Ltd. (Invoice No. 24): 2000 shirts @ ₹ 500 per piece.
16
Aug
Sold to B Ltd. (Invoice No. 26): 100 ties @ ₹ 200 per piece. Trade discount 20%
18
Aug
Sold to C Ltd. (Invoice No. 28): 50 coats for ₹100000. Trade discount 10%
21
Aug
Sold to D Ltd. (Invoice No. 30): 100 trousers @ ₹ 400 per piece.
Trade discount 15%
25
Aug
Sold to E Ltd. (Invoice No. 33): 50 ties @ ₹ 250 per piece. Trade discount 10%
Sales book
Date
Invoice No.
Name of the Customer
10 Aug
24
A Ltd.
L.F.
Amount
1000000
2000 shirts @ ₹ 500 per piece
16 Aug
26
B Ltd.
16000
100 ties @ ₹ 200 per piece. = 20,000
Less: 20% T.D.
18 Aug
21 Aug
28
30
= 4,000
C Ltd.
90000
50 coats @ ₹ 2,000 per piece
= 100000
Less: 10% T.D.
= 10000
D Ltd.
100 trousers @ ₹ 400 per piece = 40,000
32000
Less: 15% T.D.
25 Aug
31 Aug
33
= 6,000
E Ltd.
11250
50 ties @ ₹ 250 per piece
= 12,500
Less: 10% T.D.
= 1,250
Total
1149250
Business is said to be in a profit when_________________CO4-K1
a) Expenditure exceeds income b) Income exceeds expenditure c) Income exceeds liability d) Assets exceed
expenditure
As per the accounting double-entry system, when expense increases, it is ___________.
a) No need to show as an accounting record. b) Credited. c) Debited. d) Both (B) and (C).
What does the term “credit” mean in business?
a) agreement between a lender and a borrower b) revenue a business earns from selling its goods
c) cost of operations that a company incurs to generate revenue d) own with the expectation to provide a future
benefit
From the following particulars taken out from the books of Abdul Hanan & Co. You are required to prepare
Trading and Profit & Loss Account –C04-K2
From the following balances, prepare the final accounts of M/s Mangal & Sons for the
year ended 31st March 2018 :
Rs.
Opening Stock 12,500
B/R
2,000
Sales
70,000
Purchases
37,500
Creditors
20,000
Salaries
3,850
Insurance
200
Debtors
32,500
Carriage
1,450
Commission
750
Interest
900
Printing
250
B/P
3,150
Returns in
1,300
Returns out
500
Bank
5,250
Rent and Taxes 1,300
Furniture
1,000
Capital
7,100
Closing Stock on 31-3-2018 Rs.15,000
From the following balances obtained from the accounts of Mr. Ranjeet, Prepare the
Trading and Profit & Loss Account:
Particulars
Rs.
Stock on April 01, 2012 8,000
Particulars
Rs.
Bad debts
1,200
Purchases for the year
22,000 Rent
1,200
Sales for the year
42,000 Discount (Dr.)
600
Wages
2,500
Commission paid 1,100
Salaries & Wages
3,500
Sales Expenses
600
Advertisement
1,000
Repairs
600
Closing stock on March 31, 2013, is Rs. 4,500
Problems under single entry system
1. Mr. John, who keeps his books using the single entry system, has told you that his capital on 31
December 2019 was $40,500, and on 1 January 2019, it was $25,800. He further informs you
that he has withdrawn $3,500 for personal purposes. He has invested further capital of $5,000.
Required: You are required to prepare a statement of profit and loss for the year ended on 31
December 2019.
Solution
2.A trader keeps his books using the single entry system. He started his business on 1 January 2019 with a total
capital amount of $100,000. On 1 July 2019, he borrowed $40,000 at 10% p.a. Additionally, on 31 December
2019, his assets and liabilities (besides the above) were:





Cash: $6,000
Stock in trade: $94,000
Debtors: $71,000
Furniture: $50,000 (charge 10% depreciation on furniture)
Creditors: $42,000
The trader drew $2,500 for personal use. During the year, he further invested $25,000 through the sale of his
private property.
Required: Ascertain the trader’s profit or loss for the year.
Solution
Simple journal entry problems
On April 01, 2016 Anees started business with Rs. 100,000 and other transactions for the month are:
2. Purchase Furniture for Cash Rs. 7,000.
8. Purchase Goods for Cash Rs. 2,000 and for Credit Rs. 1,000 from Khalid Retail Store.
14. Sold Goods to Khan Brothers Rs. 12,000 and Cash Sales Rs. 5,000.
18. Owner withdrew of worth Rs. 2,000 for personal use.
22. Paid Khalid Retail Store Rs. 500.
26. Received Rs. 10,000 from Khan Brothers.
30. Paid Salaries Expense Rs. 2,000
Solution:
On March 2017, Farhan Rahim, starts wholesaling business. Following transactions as follows:
1. He started business with capital of Rs. 15,000 and Land worth Rs. 10,000.
8. Bought goods from Bilal and Friends Rs. 1,000 and by cash from XYZ Co. Rs 2,000.
13. However, sold goods to Rehman & sons Rs. 1,500 and sale by cash Rs. 5,000.
17. Gave away charity of cash Rs. 50 and merchandising worth Rs. 30.
21. Paid Bilal and Friends cash Rs. 975; discount received Rs. 25.
28. Received cash from Rehman & Sons Rs. 1,450; allowed him discount of Rs. 50.
Solution:
1Accounting Principles are divided in to ________________
a) Accounting concepts b) accounting conventions c) fundamendal accounting asumptions d) all of the above
2According to which of the following accounting principles the ownerss of business are considered as creditors
___________________
a) money measurement b) cost c) dual aspect d) seperate legal entity.
3Patents, copy rights , and trade marks are _______________
a) current assets b) fixed assets c) intangible assets d) investments
4An account is having debit balance is established when.
a) The last entry of the accounting period was posted on the debit side b) The amount of debit exceeds the amount
of the credits c) There are more entries on the debit side than on the credit side d) None of above
5Bank reconciliation statement compares a bank statement with _________
a)Cash payment journal b) Cash receipt journal c) Financial statements d) Cashbook
6Bank reconciliation description is composed of_____________
a)Bank Accountant b)Business Manager c)Business Accountant d)Controller of the bank
7Business is said to be in a profit when_________________
a) Expenditure exceeds income b) Income exceeds expenditure c) Income exceeds liability d) Assets exceed
expenditure
8As per the accounting double-entry system, when expense increases, it is ___________.
a) No need to show as an accounting record. b) Credited. c) Debited. d) Both (B) and (C).
9Total debtors equals __________________
a) credit sales b) cash sales c) purchases d) none
10Single entry system is a incomplete and unsceintific way of recording business trasactions .true/false
11.Name any two bases of recording accounting information.
12. What are the steps involved in accounting Process?
13. Pass Journal Entries .
S.NO Particulars
Amount inrs
1
Somu commenced printing business with cash 50000
2
Bought good for cash
4000
3
Purchased goods from Rahul for credit
10000
4
Cash paid to Rahu
4000
5
With drew cash for Personal Use
8000
6
Cash deposited in to bank
5000
7
Paid salary by cheque
3000
14.Prepare the petty cash book on imprest system from the following.
2009 Particulars
Rs
Jun 1 Received for Petty cas payments 500
Jun 2 Paid for postage
40
Jun 5 Paid for stationery
25
Jun 8 Paid for advertisement
50
Jun 12 Paid for wages
20
Jun 16 Paid for carriage
15
Jun 20 Paid for conveyance
22
Jun 25 Paid for travelling expenses
80
Jun 27 Paifd for Postage
50
Jun 28 wages to office cleaner
10
Jun 30 Paid for telegrams
20
Jun 30 sent registered notice to landlord 3
15.From the following particulars, you are required to find out the errors in cash book and bank statement by using
missing method and prepare Bank Reconciliation Statement as on 31-12-2016, for Chand Bibi Ltd: CO3-K2
S.No. Particulars
1
Bank balance overdraft as per cash book
2
Check recorded for collection but not sent to the bank
3
Credit side of the cash book cast short
4
Premium on proprietor’s Life Insurance Policy (LIP) paid on standing order
5
Bank Charges recorded twice in the cash book
6
Customer’s check returned by the bank as dishonored
7
Bill Receivable collected by the bank directly on the behalf of company
8
Check received entered twice in the cash book
9
Check issued but dishonored on technical grounds
A checks deposited into the bank of worth Rs. 45,000 but Rs. 8,000 check was not collected by
10
bank
Amount
80000
10000
1000
5000
100
4000
20000
6000
3000
16. Distinguish between Trade discount and cash discount.
17.Distinguish between capital expenditure and revenue expenditure
18.Write short notes on the following 1. Accrued income. 2. Unearned income 3. Provision for doubtful debts
19.List down the advantages of single entry system.
20.What are the demerits of single entry system.
21.OnApril 01, 2016Anees started business with Rs. 100,000 and other transactions for the month are: CO1K3 2.Purchase Furniture for Cash Rs. 7,000. 8.Purchase Goods for Cash Rs. 2,000 and for Credit Rs. 1,000 from
Khalid Retail Store. 14.Sold Goods to Khan Brothers Rs. 12,000 and Cash Sales Rs. 5,000. 18.Owner withdrew of
worth Rs. 2,000 for personal use. 22.Paid Khalid Retail Store Rs. 500. 26.Received Rs. 10,000 from Khan Brothers.
22.Jeyaseeli is a sole proprietor having a provisions store. Following are the transactions during the month of
January, 2018. Journalise them.1. Jan.Rs. 1Commenced business with cash 80,000 2Deposited cash with bank
40,000 3Purchased goods by paying cash 5,000 4Purchased goods from Lipton & Co. on credit 10,000 5Sold goods
to Joy and received cash 11,000 6Paid salaries by cash 5,000 7Paid Lipton & Co. by cheque for the purchases made
on 4th Jan. 8Bought furniture by cash 4,000 9Paid electricity charges by cash 1,000 10Bank paid insurance premium
on furniture as per standing instructions 300
23.Record the following transactions for the month of january 2022 in the purchase book of M/S Narain
Electronics.CO2-K3
Purchased from M/s Brown Electronics: 20 black & white TVs @ Rs.5200 per Piece. & 10 colour TVs @
Rs.12000 per piece Trade Discount on all items @ 12%
Jan Purchased from M/s Mani Electronics. 12 vedio tapes @ Rs 600 per piece and 8 philips tape recorders @ Rs
10 2500 per piece
Jan Purchased from M/s Sehgal Electronics. !0 LG stereos @ Rs 3500 Per piece. and 8 LG colour TVs @
19 Rs25000 per piece. Trade discount @15%
Jan Purchased from M/s Gupta Electronics . 200 Audio cassettes @ Rs 25 per piece and 30 Equity toasters @ Rs
24 500 per piece.
24.From the following prepare 3 column cash book of Anand for the month of Aug 2021.
Jan 4
Date :Aug
2021
1
3
4
6
8
9
10
12
13
14
15
17
18
19
20
21
22
25
29
31
Particulars
cash balance
Bank balance
Paid rent by cheque
cash received on account of cash sales
payment for cash purchases
Deposited in to bank
Bought goods by cheque
sold goods to Nathan on credit
Received cheque from madan 2900 and allowed him discount 100
withdraw from bank for office use
Purchased furniture by cheque
Received a cheque for rs 7000 from Nathan in full settlement of his account , which is
deposited in to bank
Withdrew cash for personal use from the bank
Swamy our customer has paid directly into our bank a/c
Parthi settled his account for rs 1250 by giving a cheque for
Parthis cheque sent to bank for collection
Received from ravi a currency note for rs 1000 and gave him change for it.
Received from Kamal a cheque for rs 6000 in full settlement of his account of rs 6200.
Deposited Kamals cheque in to bank.
Paid in to bank
Parthis cheque dishonoured.
Paid salaries
25.Define Subsidiary books. Explain the various types of subsidiary books.
26. Explain BRS and what are the reasons for difference in balances between cash book and pass book.
Amt in
Rs
20000
23000
5000
6000
2000
8000
3000
7120
4350
1260
1200
4000
1230
9000
10,000
27.The following trail balance is prepared wrongly .Rectify the error.
Particulars
Debit credit
opening stock
13000
purchases
50000
sales
96000
Discount
400
sales return
7000
Buildings
70000
debtors
16000
salaries
2400
office expenses
1500
wages
10000
purchase return
4000
interest
800
travelling expenses
400
fire insurance premium 800
machinery
20000
carriage on purchases 700
cash in hand
26000
rent and taxes
1800
capital
100000
creditors
75000
28.From the following balances obtained from the accounts of Mr. Ranjeet, Prepare the Trading and Profit & Loss
Account:
Particulars
Rs.
Stock on April 01, 2012 8,000
Particulars
Rs.
Bad debts
1,200
Purchases for the year
22,000 Rent
1,200
Sales for the year
42,000 Discount (Dr.)
600
Wages
2,500
Commission paid 1,100
Salaries & Wages
3,500
Sales Expenses
600
Advertisement
1,000
Repairs
600
Closing stock on March 31, 2013, is Rs. 4,500
29.Prepare a balance sheet for Mr.suresh for the year ending 2022 C05-K3 1. Capital 5500002.Drawings 100003.
Sundry debtors 1000004. Sundry creditors 80000 5. loan 200006. Net profit 1600007.closing stock 500008. Plant
and machinery 150000 9. Building 12000010. land 30000011. goodwill 5000012. Furniture and fixtures 30000
30.Mr. John, who keeps his books using the single entry system, has told you that his capital on 31 December 2019
was $40,500, and on 1 January 2019, it was $25,800. He further informs you that he has withdrawn $3,500 for
personal purposes. He has invested further capital of $5,000. Required:You are required to prepare a statement of
profit and loss for the year ended on 31 December 2019.