Problems on Journal entries.

1) Pass journal entries and prepare ledger accounts in the books of MIB and also prepare Trial
Balance. 1.1.2009 Anu commenced business with a capital of Rs. 50,000 2.1.2009 Bought goods for cash Rs. 7,000 3.1.2009 Deposited in HDFC bank to open a current account Rs. 10,000 4.1.2009 Sold goods for cash Rs. 2,000 and on credit to Ram Rs. 4,000 4.1.2009 Paid Rs. 800 as delivery charges on the above. 5.1.2009 Bought goods for cash Rs. 4,000 from KK and Rs. 6,000 on credit from Big B 5.1.2009 Paid PC Parcel Service for the above Rs. 300 6.1.2009 Bought furniture for credit Rs. 20,000 from Miss. Namrath 7.1.2009 Returned goods purchased for cash Rs. 200 and from Big B Rs. 500 10.1.200 Sold goods costing Rs. 4000 at Rs. 5000 to Bhargav on sale on approval basis 9 13.1.200 Introduced further capital Rs. 10,000 9 14.1.200 Withdrew from HDFC Rs. 3,000 9 14.1.200 Goods returned by Ram Rs. 300 and others Rs. 100 9 15.1.200 Purchased an old car for official use Rs. 3,000 and spent Rs. 2,000 on 9 reconditioning 16.1.200 Paid salary to employees Sri, Radhi, Empty and Jana - Rs. 750 each by cheque 9 17.1.200 Settled Big Bs account at a cash discount of 5% 9 18.1.200 Electric charges paid out of bank a/c Rs. 345 9 19.1.200 Ram settled his account and allowed him a cash discount of 6 % 9 20.1.200 Paid fire insurance premium Rs. 750 to Sarath insurance co. 9 22.1.200 HDFC bank charges Rs. 40 for services 9 23.1.200 HDFC bank allowed interest on balance Rs. 25 9 25.1.200 Paid Rs. 19,500 in full settlement to Namrath 9 27.1.200 Repairs to car Rs. 300 and petrol expenses Rs. 750 9 28.1.200 Bhargav approved 80 % of sales and rest were rejected 9 29.1.200 Bhargav settled his account by paying 98 % net. 9

2) Show journal entries in respect of the following transactions in the books of Murali who is
having business of furniture and motor car, prepare ledger accounts as well as trial balance in the books of Murli . Also prepare balance Sheet & Profit and loss account. a. Started business with cash Rs. 15,000, goods worth Rs. 8,000, office equipment worth Rs. 7,000 and his private car worth Rs. 12,000 which will henceforth be used solely for business purposes b. Bought furniture worth Rs. 4,000 of which those worth Rs. 1,000 are for office purpose and balance for stock c. Purchased 3 motor cars worth Rs. 15,000 each from SV associates for stock d. Purchased 2 motor cars worth Rs. 8,000 each from Sherif for stock.

e. Purchased for cash 1 motor car worth Rs. 7,000 for private use f. Returned motor cars worth Rs. 15,000 from stock and that worth Rs. 8,000 from business use to SV and Sherif g. Sold old office equipments for Rs. 4,000 (Cost Rs. 7,000; Book value Rs. 5,000) h. Sold household furniture for Rs. 2,000 and paid in to Business Bank A/C i. Paid Landlord Rs. 1,200 for rent. ( of the premises used for Muralis residence) j. Sold some office equipments for Rs. 1,300 (Proceeds being received as Rs. 700 by cheque and balance in cash) and the cheque was paid into private bank A/C

3) Journalise the following transactions and prepare ledger accounts in the books of Remo &
Co. Also prepare balance Sheet & Profit and loss account. a. Started business with cash Rs. 25,000, goods worth Rs. 20,000, Machinery worth Rs. 30,000 and Private investments in 10% Govt. Securities Rs. 10,000 (Face Value Rs. 12,000) b. Bought furniture worth Rs. 20,000 of which those worth Rs. 10,000 are for interior decoration and balance for resale c. Purchased 4 Sewing machines worth Rs. 10,000 each from Aswin for resale d. Purchased one Welding machine worth Rs. 20,000 for business use from Sona. e. Purchased for cash 1 motor car worth Rs. 7,000 for private use f. Sold 2 sewing machines for Rs. 12,000 each at a trade discount of 10 % of MRP g. Sold welding machine for Rs. 13,000 (depreciation up to the date of sale Rs. 2,000) h. Sold household furniture for Rs. 2,000 and paid in to Business Bank A/C i. Purchased goods Rs. 45,000 on credit from Neha. j. Of the goods purchased Rs. 5,000 was used for advertisement, Rs. 3,000 was taken for private use; Rs. 1,000 was given to employees on Diwali as bonus and Gift to Mrs. Heena Rs. 600 (His wife Mrs. Heena rendering part-time services in office) k. Collected six months interest on investments. l. Depreciation on Machinery Rs. 5,000

4) What is the meaning of Accounting? Explain the different types of account with their rules 5) Write about accounting conventions and accounting rules.