Illustration 1 Journalize the following transactions in the books of Gowda 2009 January 1 January 3 January 4 January 5 January 6 January

7 January 8 Gowda commenced business with cash Rs 5,00,000 paid into bank Rs 1,00,000 bought goods for cash Rs100000 bought office furniture for cash Rs 50000 sold goods for cash Rs 60000 sold goods to murthy on credit RS 40000 bought goods from narayan on credit Rs 50000

January 10 paid rent to landlord Rs 30000 January 12 paid salary to manager Rs 10000 January15 sold furniture for cash Rs 2000 January16 recieved commission from suresh Rs 2000 January18 bought goods Rs 40000 January20 sold goods RS 50000 January 22 sold goods to shenoy Rs 30000 January 23 bought goods from ramesh Rs 20000 January 24 bought goods from kamath for cash Rs 50000 January 25 paid carriage Rs 5000 January 26 sold goods to Rajesh for cash Rs 600 January 27 paid postage Rs 3000 January 31withdrew cash from office for personal use Rs 20000 Journalise the following transactions and post them to the various ledger accounts and prepare trial balance As on 31st January1999 Rs 1 January1 rao commenced business with 2 January2 bought goods for cash 3 January3bought office furniture for cash 4January 4 paid for postage 5 January5purchesed goods from rajkumer 6 January7sold goods for cash 5000 2500 500 10 2000 150

7 January8bought goods from rahim 8 January9 sold goods to suresh January10sold goods to nayak 10 January11 purchased goods for cash 11 January 13 received cash from nayak 12 January15 paid cash to rehim 13 January17 returned goods to rajkumer 14 January 20 suresh returned goods 15 January 20 paid salaries 16 January 25 sold goods for cash 17 January 26 rao withdrew cash for personal use 18 January 27 paid for stationary 19 January 28 paid rent 20 January 31 received commission Illustration 2

400 400 300 350 250 400 200 50 150 500 800 100 225 50 9

Madhu was carrying on business as a wholesale merchant. he had the following assets and liabilities on 1st January 1999 Rs Furniture Cash Amount due from basheer Amount from Paul His transactions during January 1999 were as follows January 1 purchased goods from Paul January 2 sold goods to basheer January 3 received from basheer on account January 15 purchased furniture January 20 paid to paul on account January 25 withdrew cash for personal use January 28 brought in additional capital January31 paid rent January31 paid wages 5000 4000 3000 1000 2000 200 500 200 300 2000 4000 2000 1500

Purchased stationary necessary. RS Premises Machinery Bad debts Return outwards Cash discount received Bank overdraft Creditors Purchases 3000 850 140 130 20 150 500 2500 5000 12290 capital fixtures sales debtors interest received

20

Why and how is the trail balance prepared? Study and recast the following trail balance if RS 3680 280 5200 3000 130

12290

From the following balances extracted from the books of ashok as on 31st December 1998 prepare a trial balance RS Ashoks capital Purchases Sundry debtors Sales Stock 1-1-1998 Salaries Insurance Furniture Cash at bank Discount allowed Bills payable 7000 8000 5600 7600 1000 720 40 500 2000 34 1580 Ashoks drawings sundry creditors purchases return sales returns machinery carriage cash in hand bills receivable rent discount commision RS 400 5500 280 160 4000 100 50 1200 240 38 46

Prepare a trail balance from the following balance RS Capital Stock of goods Motor car Discount received Bad debts Sales 2800 Cash at bank Return inwards Cash in hand Rent Discount allowed Carriage 4000 2000 600 3500 300 1500 commission return out words debtors general expenses interest received advertisement 600 1000 5600 300 200 500 28000 4000 8000 400 400 40000 purchases plant furniture wages creditors salaries Rs 15000 15000 5000 8200 6500

From the following particulars prepare the trading account for the Year ended 31st December 1998 ` Stock of goods 1-1-1989 purchases carriage Freight inwards Octroi Import duty Marine insurance Dock duties Wages Power Foctory rent Packing materials Purchases returns Sales ` Rs 8000 20000 2000 1000 2000 4000 3000 2000 4000 2000 1000 2000 4000 50000

sales returns stock of goods on 31-12-1998 7000

5000

From the following particulars relating to a manufacturer for the year ended 31st December 1998 prepare a trading account for the year Opening stock Raw material Partly finished goods finished goods purchases of raw material s Purchase returns carriage and fright Wages Power Factory rent Coal, gas and water Sales Sales returns closing stock Raw materials partly finished goods Finished goods 4000 5000 8000 Rs 15000 10000 5000 50000 4000 5000 7000 3000 2000 4000 90000 2000

Profit and loss account for the period ending.. Dr To trading account (Gross loss transferred from trading account) Salaries Rent rates and taxes Office lighting and heating . By trading account (GROSS PROFIT TRANSFERRED TRADING ACCOUNT) rent received commission received discount earned cr .

Insurance Printing and stationary Postage and telegrams General expenses Telephone charges Interest paid Discount allowed Bad debts Repairs Depreciation Commission paid Carrage outwords Traveling expenses Interest on capital Capital account (Net profit transferred To capital account)

bad debts received interest on drawings capital accounts (net loss transferred to capital account)

Balance sheet as at. Liabilities 1 capital 2 fixed liabilities: Long term loans Long term deposits 3 current liabilities Income received In advance Liabilities for expenses Sundry creditors Bills payable Bank overdrafts Short term loans assets 1 fixed assets goodwill patents copyrights land and buildings plant and machinery vehicles furnitures and fixtures loose tools 2 long term investments 3)current assets short term investments

Outstanding incomes Prepaid expenses Closing stock Sundry debtors Bills receivable Cash at bank Cash in hand

Form the following information prepare a profit and lodd account for the year ended 31st December 1998 RS Gross loss Salaries and wages Lighting Sundry expenses Miscellaneous income Carriages on sales Bank charges Repairs of van Rent Insurance Bad debts Interest received Adjustments 1 2 3 4 5 6 7 salaries outstanding Rs 500 rent unpaid Rs 100 insurance prepaid Rs 100 depreciation on van Rs 400 write off further bad debts Rs 400 maintain reserve for doubtful debts Rs 400 interest earned but not received Rs 100 10000 10000 2000 500 300 1700 10 1300 700 500 300 400

from the following particulars prepare a trading and profit and loss account for the year ended 31st December 1998 Rs Opening stock Purchases (cash) Credit purchases Purchases returns Sales (cash) Sales (credit) Returns from customers Sales tax Salaries Rent and rates insurance trade expenses advertisement maintenance expenses commission(dr) interest on bank balance discount received Wages Adjustments: 1. closing stock Rs 8000 2. unpaid rent Rs 1000 3. prepaid insurance Rs 200 4. write off bad debts Rs 500 5. depreciate furniture by Rs 100 6. allow interest on capital Rs 500 7. charge interest on drawings Rs 300 5000 10000 20000 2000 30000 40000 1000 4000 10000 5000 4000 500 1000 2000 50 500 200 10000