Part I -Prepare Accounting Equations/

Part II -Journal/ Ledgers /Trial Balance

Question No.1
1. Mr. X started Business with Cash Rs. 1,00,000, Bank Rs. 50,000 Stock Rs. 40,000
2. Purchased from Y goods worth Rs. 20,000
3. Wages paid Rs. 2,000
4. Paid a bill to Y for 5 months for the goods purchased from him on credit
5. Sold goods worth Rs. 30,000 to Z at Rs. 45,000
6. Z paid 1/3 in cash and the remaining in through cheque.
7. Goods worth Rs. 2000 distributed as free samples.
8. Salaries paid for the month Rs. 10,000

Question No.2
1. Mr. Harish started business with Cash Rs. 1,00,000, Bank Rs. 50,000. he brought
him Leasehold Premises Rs. 1,80,000 and Machinery Rs. 2,70,000
2. Purchased from Bhoi & Sons goods worth Rs. 20,000 [ 80 units] on credit.
3. Paid interest on capital 12% and Harish withdrew the amount for the business.
4. Sold goods to Ram & Sons for credit, 50 units @ Rs. 1500 per unit.
5. Paid rent Rs. 4,500.
6. Purchased 4 live stock Rs. 20,000.
7. Depreciation on machinery Rs. 5,000.

Question No.3
Mahesh was a fresh MBA pass out from IIPM Batch 2007. He along with his two friends Lokesh and
Boresh started a business where the investments were as follows.
Cash Bank Others
Mahesh 50,000 40,000 Land 1,00,000
Lokesh 25,000 50,000 Machinery 4,00,000
Boresh 1,00,000 20,000 Furniture 75,000
The other transactions were :
a) Purchased stock from A for Rs. 1,50,000 for credit
b) Sold 50% of the goods for cash for Rs. 1,20,000
c) Paid electricity Rs. 3,000
d) Purchased office stationery Rs. 1,500
e) Received commission Rs. 3,000
f) paid to A 1,45,000 and he gave discount Rs. 5,000.
g) Profit of 20,000 distributed and withdrawn by all partners
 Question No.4
I. X Started business with cash Rs. 1,00,000 Bank Rs. 1,50,000 Building Rs. 50,000 Stock
Rs. 50,000.
II. Purchased goods from Prakash Rs. 30,000 and on cash Rs. 70,000.
III. Sold goods worth Rs. 50,000 at Rs. 75,000
IV. Paid rent Rs. 5,000.
V. Pain salary Rs. 20,000.
VI. Received interest Rs. 25,000.
VII. Sold goods on credit to Mahesh for Rs. 50,000 [ goods costing Rs. 24,000]
VIII. Paid Prakash Rs. 10,000.
IX. Building taken by the owner for Rs. 20,000
X. Paid telephone bill Rs. 3500.

Question No.5
1. Murali started business with Cash Rs. 2,00,000 and Bank 5,00,000.
2. Loan taken from HDFC for Rs. 4,50,000.
3. Purchased Stock for Rs. 1,00,000 for cheque.
4. Sold the stock of 50,000 for Rs. 70,000. and as he paid in cash he got a discount Rs.
2,000.
5. Loss of stock due to fire of Rs. 10,000.
6. Insurance recovery of Rs. 8,500 received
7. Paid for charity Rs. 5,000.
8. Paid provident Fund to a retiring employee Rs. 10,000.
9. Salaries due not paid Rs. 20,000.
10. Income tax paid by Murali Rs. 5,050.

Question No.6
1. Mr. Xavi started Business with Cash Rs. 1,00,000.
2. Purchased goods and paid through Bank Rs. 50,000
3. Purchased goods Rs. 40,000 from mahesh.
4. Purchased from Y goods worth Rs. 20,000 at a TD of 20%.
5. Wages paid Rs. 2,000.
6. Paid a bill to Y for 5 months for the goods purchased from him on credit
7. Mahesh was paid the amount due in full settlement after Rs. 200 as discount.
8. Sold goods worth Rs. Z at Rs. 45,000
9. Z paid 1/3 in cash and the remaining in through cheque.
10. Salaries paid for the month Rs. 10,000
11. Salaries outstanding for the month of Jan Rs. 1,000

Question No.7
1. Mr. Haris started business with Cash Rs. 1,00,000, Bank Rs. 50,000.
2. He purchased Leasehold Premises Rs. 1,80,000 and Machinery Rs. 2,70,000
3. Purchased from Bhoi & Sons goods worth Rs. 20,000 [ 80 units] through cheque at a TD
of Rs. 5 per unit and CD of
4. Sold some goods to Ram & Sons for credit, 50 units @ Rs. 1500 per unit at 12 Rs. per
unitTD and Rs. 5 per unit as CD
5. Sold remaining goods for Rs. 50,000 and received the money thorough cheque.
6. Paid rent Rs. 4,500.
7. Paid for general expenses Rs. 1,500
8. Purchased office Stationary Rs. 2,000 through cheque.
9. Purchased a motor van for the business Rs. 2,00,000. installation of the machinery Rs.
5,000
10. Depreciation on machinery Rs. 5,000.
11. Loan taken for Rs. 50,000.

Question No. 8
Raj started his business for Rs. 5,00,000.
a) Purchased stock from A for Rs. 1,50,000 for credit
b) Sold goods for cash for Rs. 1,20,000
c) Paid electricity Rs. 3,000
d) Purchased office stationery Rs. 1,500
e) Received commission Rs. 3,000
f) paid to A 1,45,000 and he gave discount Rs. 5,000.
g) Paid Carriage on sales Rs. 450

Question No. 9
 I. X Started business with cash Rs. 1,00,000 Bank Rs. 1,50,000
II. Purchased Building Rs. 50,000
III. Purchased machinery Rs. 50,000.
IV. Purchased goods from Prakash Rs. 30,000 and on cash Rs. 70,000.
V. Sold goods worth Rs. 50,000 at Rs. 75,000
VI. Paid rent Rs. 5,000.
VII. Pain salary Rs. 20,000.
VIII. Received interest Rs. 25,000.
IX. Sold goods on credit to Mahesh for Rs. 50,000
X. Paid to Prakash Rs. 10,000.
XI. Building taken by the owner for Rs. 20,000
XII. Paid telephone bill Rs. 3500.

Question No.10
1. Murali started business with Cash Rs. 2,00,000 and Bank 5,00,000.
2. Loan taken from HDFC for Rs. 4,50,000.
3. Purchased Stock for Rs. 1,00,000 for cheque.
4. Sold the stock of 50,000 for Rs. 70,000. and as he paid in cash he got a discount Rs.
2,000.
5. Loss of stock due to fire of Rs. 10,000.
6. Insurance recovery of Rs. 8,500 received
7. Paid for charity Rs. 5,000.
8. Sales to Ghanshyam Rs. 5,600 but amount not yet received
9. Paid provident Fund to a retiring employee Rs. 10,000.
10. Salaries due not paid Rs. 20,000.
11. Mr. Ghanshyam paid through a bill receivable.
12. Rent due but not paid Rs. 2000
13. Salaries outstanding Rs. 15,000
14. Income tax paid by Murali Rs. 5,050.
15. The bill is met on the due date.