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PRACTICAL PROBLEMS

JOURNAL AND LEDGER

PRACTICAL PROBLEMS:-
1. Journalise the following transactions in the books of Subash Chander.
2010
April 1. Started business with Cash Rs. 7,00,000, Furniture
worth Rs. 1,00,000 and Machinery worth Rs. 2,00,000.
” 2 . Deposited Rs. 3, 00,000 in bank.
” 3. Purchased goods from Vikram for Rs. 15,000 and from Sharma for Rs.
7,500 .
” 4. Goods returned to Sharma worth Rs. 1000 since the same were not
as per the sample.
” 5. Sold goods for cash worth Rs. 8,000.
” 6. Sold goods to Kiran worth Rs. 8,900.
” 7. Damanged goods returned by Kiran worth Rs. 900.
” 8. Purchased goods at list price for Rs. 18,000 from Rao at a trade
discount of 10%.
” 9. Sold goods at list price of Rs. 6,000 to Sunil at a trade discount of 5%.
” 10. Received Rs. 6,000 from Kiran on account.
” 11. Paid to Vikram by cheque Rs. 14,900 and he allowed discount of Rs.
100.
‘ 12. Paid to Sharma Rs. 6450 in full settlement of his account.
” 13. Paid for repair of furniture Rs. 700.
” 14. Paid for insurance of machinery Rs.1,000.
” 15. Sold goods for Cash worth Rs. 3,400.
” 16. Purchased goods from Hari for Rs. 13,500.
” 17. Received from Sunil the full amount due to him.
” 18. Kiran became insoluent and a final payment of 50 paise in a rupee
was received from her official
receiver.
” 19. Paid wages Rs. 3,400.
” 20. Withdrew cash for personal use Rs. 5,000.
” 21. Depisited cash into bank Rs. 1,50,000.
” 22. Paid to Hari Rs. 10,000 on account.
” 23. Paid for petty expenses Rs. 200.
” 24. Paid trade expenses of Rs. 800.
” 25. Paid commission Rs. 1,200.
” 26. Withdrew goods of the cost price of Rs. 900 for personal use.
” 27. Withdrew cash from bank Rs. 5,000.
” 28. Purchased goods for cash Rs. 17,000.
” 29. Sold goods for cash Rs. 13,500.
” 30. Paid rent of Rs. 10,000 and salary, Rs. 28,000.
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2. Pass journal entries for the following transactions and post them into
the ledger.
2010
Jan. 1. Prakash started business with cash 10,00,000
Jan 3. Purchased furniture for cash 70,000
Jan 4. Purchased goods for cash 30,000
Jan 7. Purchased goods from Sita Traders, 10,000
Raja Bros 18,000
Jan 10. Returned goods to Sita Traders 800
Jan 12. Paid cash to Sita Traders in full settlement of their
account and they allowed 10% discount.
Jan 13. Opened account in State Bank of India 5,00,000
Jan 14. Paid Raja Bros. by cheques in full settlement of 17,800 their
account.
Jan 15. Sold goods for cash 19,000
Jan 16. Sold goods to Venkat at list price and offered 8000
10% Trade Discount.
Jan 17. Purchased goods from Jyoti Bros. 3,400
Jan 18. Sold goods to M/s Swami 14,000
Jan 19. Received from Venkat by cheques on account 5,000
Jan 20. Paid for furniture repair 500
Jan 21. Purchased goods from Rajan 900
Jan 22. Sold goods to Satish 2,050
Jan 25. Sold goods to Poonam 4,000
Jan 31. Paid Rent 5,000
Salary 4,000

3. Enter the following transactions in the journal of Jacob and post them
into the ledger and balance the ledger accounts.
2010
Feb. 1 Started business with cash 90,000
Feb 2. Paid into Bank 50,000
Feb 3. Purchased goods for cash 30,000
Feb 5. Purchased furniture and paid by cheque 10,000
Feb 7. Sold goods for cash 19,000
Feb 9 Sold goods to A.Khan 8,000
Feb 11. Purchased goods from R.Rehman 14,000
Feb 14. Goods returned by A.Khan 400
Feb 17. Received cash from A.Khan. 7,400
Discount allowed to him. 200
Feb 22. Withdrew from bank for personal use, 2,000
for Office use. 10,000
Feb 24. Paid telephone bill 1,000
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Feb 25. Paid cash to R.Rahman on account 10,000

Feb 28. Paid for : Stationery 2,000
Salary 10,000
Rent 4,000

. Journalise the following transactions of Mr. Ramesh.

2010.
Feb 1 Ramesh started business with cash 10,000
Feb 3 Paid into bank 6,000
Feb 4 Brought goods from M/s R. Singh & Co. on Credit 2,000
Feb 5 Purchased Furniture 200
Feb 5 Purchased adding machine 800
Feb 5 Purchased Typewriter
(Payment in all cases made by cheque) 600
Feb 7 Paid for postage 15
Feb 9 Sold goods for cash 400
Feb 10 Sold goods on credit to M/s M.Sharda & Co. 1,000
Feb 11 Paid to M/s R. Singh & Co. 1,950
Discount allowed by them 50
Feb 14 Sold goods to M/S Rai & Co. 560
Feb 25 Received cheque from M/s M. Sharda & Co.
In full settlement of amount due from them 975
Feb 28 Paid salary 150
Feb 28 Paid rent by cheque 200
Feb 28 Drew for private use 350
4 The following are the transactions of P.Singh & Co. for the month of
August. You are required to Journalise them.
2001 Rs.
Aug 1 Capital paid into bank 5,000
Aug 2 Bought stationery for cash 30
Aug 3 Bought goods for cash 2,000
Aug. 4 Bought postage stamps 2,100
Aug. 6 Sold goods for cash 750
Aug. 7 Bought office furniture from Mamta 500
Aug.12 Sold goods to Rajendra 1,000
Aug 13 Received cheque from Rajendra 1,000
Aug.15 Paid Mamta. by Cheque 500
Aug 17 Sold goods to Suresh & Co. 500
Aug 21 Bought goods from K.Seth & Bros. 700
Aug 24 Bought goods for cash from S.Verma & Co. 225
Aug 25 Sold goods to K.Kumar 350
Aug 27 Suresh & Co. Paid on account 250
Aug 29 Paid K.Seth & Bros. By cheque in full settlement 685
Aug 31 Rent is due to S.Verma but not yet paid 100
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3. S. K. Singh commenced business on 1 March 2006. His transactions for

the month are given below. Journalise them.
2010
Mar 1 Commenced business with cash capital 25,000
Mar 2 Paid into bank 23,500
Mar 3 Brought goods from R & Co. 5,400
Mar 3 Sold goods to Manjeet 4,800
Mar 7 Bought goods from S. Chand 6,450
Mar 8 Paid wages in cash 80
Mar 8 Sold goods to M. Chand 5,350
Mar 10 Received cheque from Manjeet (Discount allowed Rs 120) 4,680
Mar 11 Paid to R & Co. (Discount received Rs 270) 5,130
Mar 12 Paid rent for three months up to March 400
Mar 13 Bought from C.Hajara 7,400
Mar 15 Paid wages in cash 80
Mar 15 Paid office expenses in cash 70
Mar 16 Sold goods to Jagdish 3,200
Mar 17 Sold goods to Manjeet 1,600
Mar 21 Sold goods to M. Chand 2,500
Mar 21 Payment received by cheque from Jagdish 3,200
Mar 22 Paid wages in cash 80
Mar 22 Paid office expenses in cash 50
Mar 22 Paid S. Chand by cheque (discount Rs 320) 6,130
Mar 26 Received cheque from M. Chand (discount Rs 150) 5,200
Mar 27 M. Chand returned goods( not up to sample) 200
Mar 29 Paid wages in cash 80
Mar 31 Paid office expenses in cash 40
Mar 31 Paid salaries for the month 300

5. Enter the following transactions in journal of Anil who trades in

readymade garments.
2010.
June 1 Anil Paid into bank as Capital 6,000
June 2 He Bought goods for cheque 2,400
June 3 Sold to M & Co. 670
June 4 Sold goods for cash 1,090
June 5 Paid sundry expenses in cash 300
June 6 Cash sent to bank 1,500
June 7 Received cheque from M & Co. 650
Discount allowed 20
June 8 Paid wages in cash 100
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June 8 Paid for office furniture and fittings by cheque 400

June 9 Bought goods from Ramesh 1,060
June10 Sold to Kiran 1,870
June11 Returned goods to Ramesh 150
June12 Sent cheque to Ramesh. In full settlement 900
June 14 Sold goods for cash 490
June 14 Paid into bank 400
June 15 Drew cash from office for personal use 50
June 30 Paid cash for stationery 30
June 30 Bought goods from Sohan & Co. Ltd 1,000
June 30 Received from Kiran on account 600
June 30 Banked (Cash sent to bank) 650

Journalise the following transaction in the Book of M/s Beauti traders. Also
post them in the ledger.
Dec. 2005 Rs.
1. Started business with cash 2,00,000
2. Bought office furniture 30,000
3. Paid into bank to open an current account 1,00,000
5. Purchased a computer and paid by cheque 2,50,000
6. Bought goods on credit from Ritika 60,000
8. Cash sales 30,000
9. Sold goods to Karishna on credit 25,000
12. Cash paid to Mansi on account 30,000
14. Goods returned to Ritika 2,000
15. Stationery purchased for cash 3,000
16. Paid wages 1,000
18. Goods returned by Karishna 2,000
20. Cheque given to Ritika 28,000
22. Cash received from Karishna on account 15,000
24. Insurance premium paid by cheque 4,000
26. Cheque received from Karishna 8,000
28. Rent paid by cheque 3,000
29. Purchased goods on credit from Meena Traders 20,000
30. Cash sales 14,000

21. Journalise the following transaction in the books of Sanjana and

post them into the ledger :
January, 2006
1. Cash in hand 6,000
Cash at bank 55,000
Stock of goods 40,000
Due to Rohan 6,000
Due from Tarun 10,000
3. Sold goods to Karuna 15,000
4. Cash sales 10,000
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6. Goods sold to Heena 5,000

8. Purchased goods from Rupali 30,000
10. Goods returned from Karuna 2,000
14. Cash received from Karuna 13,000
15. Cheque given to Rohan 6,000
16. Cash received from Heena 3,000
20. Cheque received from Tarun 10.000
22. Cheque received from to Heena 2,000
25. Cash given to Rupali 18,000
26. Paid cartage 1,000
27. Paid salary 8,000
28. Cash sale 7,000
29. Cheque given to Rupali 12,000
30. Sanjana took goods for Personal use 4,000
31. Paid General expense 500

CASH BOOK
Simple Cash Book
Enter the following transactions in a single column Cash Book.
2010 .
May 1 Commenced business with cash 25,000
3 Bought goods for cash 10,000
3 Paid Carriage 200
4 Sold goods for cash Received from Ram 6,000
10 Received from Ram 1,000
12 Paid to Shiv Kumar 2,600
15 Cash Sales 8,400
18 Purchased Furniture for cash for office 5,000
20 Paid for Advertisement 500
20 Purchased goods from Mahesh on Credit 6,000
24 Paid to Mahesh 4,000
25 Paid Wages 400
27 Received from Commission 1,500
28 Withdrew for personel use 2,200
31 Paid salary 700
Ans. Cash Balance Rs. 16,300

6. Prepare a Simple cash book from the following transactions of Mr.

Gopal of Delhi.
2010
April 1 Mr. Gopal commenced business with cash 8,000
April 3 He bought goods for cash 5,000
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April 5 Sold goods for cash 100

April 6 Received cash from Mr. Lal 360
April 9 Paid into bank 3,000
April 13 Paid cash to Hari 215
April 16 Sold goods for cash 1,500
April 17 Paid for stationery 15
April 18 Paid for office furniture 185
April 21 Received from Mr. Kailash 680
April 22 Paid for advertising 90
April 25 Purchased postage stamps 20
April 28 Paid rent 100
April 30 Paid electricity charges 15
Ans. : Cash Balance Rs. 2,000

7. Compile Cash Book from the following transactions given to you.

2010
Mar 1 Mr. M. Lal commenced business with cash 8,500
Mar 2 Bought goods for cash 685
Mar 4 Paid Mr. Sohan Lal cash 145
Discount allowed 5
Mar 6 Deposited in bank 4,000
Mar 6 Paid for office furniture in cash 465
Mar 8 Sold goods for cash 3,000
Mar 12 Paid wages in cash 130
Mar 13 Paid for stationery 50
Mar 14 Sold goods for cash 2,500
Mar 16 Paid for miscellaneous expenses 65
Mar 19 Received cash from Mr. S. Chand 485
Allowed him discount 15
Mar 22 Purchased a radio set 250
Mar 22 Paid salary 300
Mar 25 Paid rent 100
Mar 28 Paid electricity bill 55
Mar 29 Paid for advertising 40
Mar 31 Paid into bank 4,500
Ans. Cash Balance Rs. 3,700

Double Column Cash Book

8. Enter the following transactions in a Two Column Cash Book having
Cash and Discount
Columns.
2010
Dec 1 Cash in Hand 15,000
Dec 2 Cash Sales 12,000
Dec 4 Received from X on Behalf of Y 4,000
Dec 7 Bought goods for cash 10,000
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Dec 9 Paid to Som Pal 4,900

Discount Received 100
Dec 11 Received from Vijay Kumar 7,800
And discount allowed 200
Dec 15 Sold goods in cash 6,500
Dec 16 Sold goods to Kabir on credit, the terms being 2 ½ % cash
discount ,
If payment is received within one week 10,000
Dec 18 Paid Telephone expenses 450
Dec 20 Cash Purchase 9,000
Dec 21 Paid Cartage 200
Dec 22 Received cash from Kabir for the goods sold on 16 th Dec 1,880
Dec 23 Remmitted to Dharamvir and discount allowed by him 120
Dec 25 Received M.O. from Mohan 500
Dec 27 Borrowed from Mahabir 7,500
Dec 29 Received from Bhushan 3,900
Discount allowed 100
Dec 31 Received dividend on shares 400
Paid to Lalit Rs. 2,700 in full settlement of his account of Rs. 3,000.
Ans. : Cash Balance Rs. 38,220; Discount Dr. Rs.550 and Cr. Rs.520

9. Enter the following transactions in Cash Book having discount and

Cash Columns.
2010
March 1 Cash in hand 30,000
March 4 Paid for cash purchases 5,000
March 5 Received from cash sales 17,000
March 7 Prakash Paid us cash 3,950
We allowed him discount 50
March 11 Paid Satish & Co. 4,400
They allowed us discount 100
March 13 Received Commission 200
March 15 Issued a Cheque to Dinesh towards an account of
Rs. 10,000 less 5% cash discount
March 17 Issued a cheque for Rs. 3,800 to Faquir Chand in full settlement
of his account for Rs. 4,000
March 21 Bought goods for cash 9,200
March 25 A cheque issued by the proprietor for gift at the marriage of his
wife's friend 500
March 28 Purchased filing Cabinet for office 4,500
March 29 Drew Cheque for petty expenses 400
March 31 Paid office rent 1,500
Paid sales tax 3,000
Received interest 250
Ans. : Cash Balance Rs. 9,600; Discount Dr. Rs. 50 and Cr. Rs. 800.
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10. Write up Cash Book of Bhanu Pratap with Cash and Bank Columns
from the following
transactions.
2009
March 1 Cash in Hand 2,710
Cash at bank 27,500
March 3 Received from Subhash 3,500
March 4 Sold goods for cash 10,000
March 7 Paid rent by Cheque 800
March 8 Paid Sohan By cheque 3,000
March 10 Bought goods for cash 15,000
March 12 Paid cash for stationery 200
Drew from bank for office use 8,000
March 15 Received cheque from Vinod and sent it to bank 6,600
March 16 Paid for advertisement 750
March 18 Issued cheque in favour of Nath Brothers 4,300
March 19 Cash sales 13,000
Paid into bank
March 20 Received cheque from Vinod and sent it to bank 16,000
March 22 Bought Scooter and paid for the same by cheque 2,400
March 25 Bank returned Surendra’s Cheque dishonoured 18,000
March 28 Paid salary by cheque 7,200
Paid trade expenses 2,000
March 29 Cash sales 95,00
March 30 Paid into Bank 10,000
Ans. : Cash Balance Rs. 2,760 and Bank Balance 14,600.

11. Enter the following transactions in Cash Book with discount columns.
2010
Jan 1 Cash in hand 1,500
Jan 5 Paid to Ram 300
Discount allowed by him
Jan 8 Purchased goods 400
Jan 11 Received from S. Gupta 980
Discount allowed 20
Jan 16 Sold goods 400
Jan 21 Paid to M. Sharma 300
Discount received 5
Jan 25 Paid wages 50
Jan 31 Paid to Shiv in full settlement of his account
which shows a credit balance of Rs. 400 390
Ans.: Cash Balance Rs. 1,440

Triple Column Cash Book

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12. Prepare a three- column cashbook.

2010
Jan 1 Cash in hand 5,000
Jan 1 Bank overdraft 1,000
Jan 2 Paid wages 1,500
Jan 3 Deposited into bank 2,000
Jan 4 Cash sales 7,500
Jan 5 Sold goods for cheque which was deposited in bank on the same
day 5,000
Jan 6 Purchased goods from Shivam on credit 4,000
Jan 7 Drew from bank for personal use 1,000
Jan 8 Paid to Shivam in full settlement 3,500
Jan 9 Received from Ram, who owes Rs. 5,000, Rs. 2,000 only on
account.
Ans.: Cash in hand Rs. 7,500; Bank Balance Rs. 5,000

13. Enter the following transactions in Triple column Cash book of Raj
Traders.
2010
Dec 1 Started business with cash 9,000
Dec 1 Deposited in the bank 4,000
Dec 2 Purchased office equipment 1,000
Dec 4 Cash Purchases, issued cheque 2,500
Dec 8 Received cheque from Anuj on account 3,250
Dec 10 Cash sales, received cheque 1,300
Dec 15 Office expenses 275
Dec 25 Office rent paid by cheque 300
Dec 28 Received cheque from Raju and endorsed the same to Rohit 400
Dec 30 Paid advance income tax by cheque 575
Dec 31 Deposited into bank, balance of cash in excess of Rs. 300
Ans. Cash balance Rs. 300; Bank Balance Rs. 8,600

14 . Enter the following transactions in the Cash Book with Discount, Cash
and Bank Columns.
2010
April 1 Balance of cash in hands Rs. 400 , overdraft at bank Rs. 5,000
4 Invested further capital of Rs. 10,000 out of which Rs. 6,000 deposited
into the bank
5 Sold goods for cash Rs. 3,000
6 Received from Ghanshyam Rs. 8,000 ; discount allowed to him Rs. 200
10 Purchased goods for cash Rs. 5,500
11 Paid to Ram Vilas ,our creditor, Rs. 2,500; discount allowed by him
Rs.65
13 Commission paid to our agent Rs. 530
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14 Office furniture purchased from Keshav in cash Rs. 200

14 Rent paid Rs. 50
16 Drew cheque for personal use Rs. 850
17 Cash sales of Rs. 2,500.
18 Collection from Atul Rs. 4,000, deposited in the bank on 19 April
19 Drew from the bank for office use Rs. 500.
24 Dividend received by cheque Rs. 50, deposited in the bank on the
same day
25 Commission received by cheque Rs. 230, deposited in the bank on
28th April
29 Drew from the bank for salary of office staff Rs. 1,500
29 Paid salary of the manager by cheque Rs. 500
30 Deposited cash in the banks Rs. 1,000
Ans. Cash Balance(Dr.) Rs. 8,610 and Bank Balance (Dr.) Rs. 2,930;
Discount (Dr.)
Rs. 200;and Discount (Cr.) Rs. 65.

15. Prepare Triple Column Cash Book from the following transactions.
2010
Jan 1 Cash at office Rs. 72
Bank overdraft Rs. 1,250
4 Received from Prem Chand a cheque for Rs. 1,875 in full settlement of
his account of
Rs. 1,900 . The Cheque was banked on the same day.
5 Bought goods and paid by cheque Rs.500
6 Narinder settled his account of Rs. 700 by Cheque . This was banked on
the same day.
9 Paid to Manohar Lal by cheque for Rs. 420 . Discount received Rs.80.
12 Cash sales to date Rs.400 of which Rs.300 were banked.
17 Sold old typewriter for cash Rs.320.
20 Received a cheque for Rs.400 from Naresh in full settlement of his
account of Rs.460.
The cheque was endorsed to suresh in full settlement of his account of
Rs. 420.
25 Received a cheque from Hari Prakash for Rs. 150.
27 Cheque of hari Prakash was endorsed to Raj Prakash. Discount
received Rs.30.
28 Withdrew from bank for office use Rs. 100 and for personal use Rs .
100.
29 Withdrew (from office) for payment of private bills Rs. 425.
30 Paid by cheque salaries Rs. 160 and rent 100
31 Bank Charges as per Pass Book Rs. 5
Ans. Cash balance Rs. 167 ; Bank Balance (Dr.) Rs. 240;
Discount (Dr.) Rs. 85 ; (Cr.) Rs. 130 .
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16. Enter the following transactions in the cash book with Discount , Cash
and Bank
Columns.
2010
Jan 1 Cash in hand 4,800
Bank overdraft 30,400
Jan 2 Fresh Capital introduced 20,000
Jan 3 Deposited into bank 15,000
Jan 4 Sold goods to Mahesh on credit 6,200
Jan 5 An Amount of Rs. 4,200 due from Ashok written off as bad debts in
the previous year , now recovered
Jan 6 Withdrew from bank for the payment of Life Insurance Premium
3,000
Jan 8 Received a cheque from Mahesh for Rs. 6,000 in full settlement
of his account and deposited the same into the bank
Jan 10 Sold goods to Varun on Credit 30,000
Jan 12 Received a Cheque for Rs. 28,000 from Varun in Full Settlement
Jan 15 Cheque received from Varun sent to bank
Jan 18 Varun,s cheque returned by Bank Dishonoured. Bank Charged
Rs. 25 on this Cheque
Jan 20 Received a cheque of Rs. 6,800 from Vijay which was endorsed to
Amrit Raj on the same day
Jan 25 Withdrew cash from Bank Rs.5,000 for paying gift to his daughter
on her birthday
Jan 26 Bought goods from Gupta General Store for Rs.10,000 on credit
and they
allowed us trade discount of 25%
Jan 28 Paid to Gupta General Stores in cash, full Settement 7,000
Jan 28 Sale of Old Machinery , payment received in cash Rs.7,700
Jan 30 Paid salary by cheque Rs.1,500. Paid Rent in cash Rs. 2,200
Jan 31 Paid into current Account the entire balance after retaining Rs.
5,000 at office
Ans. Discount (Dr.) Rs. 2,200 ; (Cr.) Rs. 2,500; Cash balance (Dr.)
Rs.5,000; Bank Overdraft
Rs. 11,425; Excess Cash deposited into Bank on 31 May Rs. 7,500.

17. Compile a triple column cash book from the following transaction’s of
Kavita Garments.
2010
Feb 1 Cash in Hand Rs. 7,500; Cash at bank Rs. 8,000.
Feb 2 Discounted a bill receivable for Rs. 6,000 at 2% through bank
Feb 3 Received two cheques from Kalpana each of Rs. 10,000
Feb 4 First cheque received from Kalpana is endorsed to Sunita in full
settlement
 - 13 -

of Rs. 10,200. Second cheque is sent to bank for collection

Feb 5 Second cheque received from Kalpana is returned as dishonoured
by the bank.
The bank has debited our account with Rs. 20 as bank charges on this
cheque
Feb 6 Received cheque from sale of old furniture for Rs.1,950 . Cheque is
endorsed to
a creditor Ramesh in full settlement of Rs. 2,000 due to him
Feb 8 Purchased goods from Mohan on credit for Rs. 8,000
Feb 10 Settled Mohan's account by giving a cheque for Rs.4,000 and cash
Rs. 3,900
Feb 12 Goods sold to Pawan for Rs. 6,000. He paid the amount in cash
immediately
after deducting 2 ½ % cash discount
Feb 15 A bill payable fro Rs. 5,000 paid by Cheque
Feb 18 Cash sale to date Rs. 50,000 of which Rs. 40,000 banked .
Feb 20 Paid electric bill of Rs.2,000 for Jan 2003 by cheque . paid rent for
Jan 1998 Rs. 15,00
Feb 25 Cash purchases Rs. 5,000 , Issued a Cheque
26 Deposited into bank cash retaining Rs. 7,500
Ans. Discount (Dr.) Rs. 270 ; (Cr.) Rs. 350 ;cash in hand Rs. 7500 ; Cash
at bank Rs. 48,310. Excess cas
deposited into bank on 28 Feb. Rs. 10,450

18. Write out the following transaction’s in Cashbook with discount and
bank columns.
2010
Jan 1 Champa commences business with Rs. 20,000 in cash
Jan 3 He pays Rs. 19,000 into Bank Current A/c
Jan 4 He receives cheque for Rs. 600 from Riti & co. on account
Jan 10 He pays R & Co. by cheque Rs. 330 and is allowed discount Rs.
20
Jan 12 T & Co. pays into his bank A/c Rs. 475
Jan 15 He receives cheque for Rs. 450 from Wasi and allows him discount
of Rs. 35
Jan 20 He receives cash Rs. 75 and cheque Rs. 100 for cash sales
Jan 27 He pays by cheque for cash purchases Rs. 275
Jan 30 He pays sundry expenses in cash Rs. 50
Jan 30 He pays S & Co. Rs. 375 in cash and is allowed discount of Rs. 35
Jan 31 He pays office rent by cheque Rs. 200
Jan 31 He draws a cheque for personal use of Rs. 250
Jan 31 He pays staff salaries by cheque Rs. 300
Jan 31 He draws a cheque for office use Rs. 400
Jan 31 He pays cash for stationery Rs. 25
Jan 31 He purchases goods for cash Rs. 125
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Jan 31 He pays Pal by cheque for commission Rs. 300

Jan 31 He gives cheque to Saran for cash purchase of furniture for office
of Rs. 1,575
Jan 31 He receives cheque for commission Rs. 500 from Rohan & Co.
Jan 31 He receives cheque from K & Co. for Rs. 450
Ans. Cash balance Rs. 900; Bank Balance Rs. 17,945

Petty cash Book

19. A Petty cashier in a firm received Rs. 150 as the petty cash imprest on
4 June 2006. During
the week, his expenses were as follows.
2010.
Jane 4 Tonga charges for managers trip to the city 5
Jan 4 Wages to casual labourers 15
Jan 5 Bus fare to workmen sent to customers premises 2
Jan 5 Stationery purchased 10
Jan 6 Sent telegram to Head office 4
Jan 6 Postage stamps purchased 10
Jan 6 Revenue stamps for payment of wages 5
Jan 7 Repair of typewriter 4
Jan 7 Paid electric lighting bill 17
Jan 8 Wages paid to coolies for shifting furniture etc. 4
Jan 8 Taxi fare to assistant manager 5
Jan 8 Locks purchased 8
Jan 8 Stationery purchased 4
Jan 9 Refreshments to customers 2
Write up the Petty cashbook and draft the necessary Journal entry for the
payments made.
Ans. Petty Cash Balance Rs. 55

20. Prepare an Analytical Petty Cash Book on the imprest system from the
following.
2010
June 1 Received Rs 400 for Petty Cash.
June 3 Paid Cartage Rs 10.
June 4 Paid Bus Fare Rs 5; Postage Rs 12
June 6 Paid for Stationery Rs. 8
June 7 Paid for Postage Rs. 6
June 9 Paid for Taxi Fare Rs. 25;
June 10 Paid for Telegram Rs. 15; charity Rs. 21
June 11 Paid for Newspaper Rs. 20
June 12 Paid for Soap Rs 10; Printing Rs 30
June 13 Paid for Postage Rs 15
June 14 Paid for Repairs of Chairs Rs 20
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June 15 Paid for Refreshment to customers Rs 10

Ans. Petty Cash balance Rs 203; Postage and Telegram Rs 48; Printing
and Stationery Rs 38; Traveling
Rs 30; Cartage and Carriage Rs 10; Sundry expense Rs 81.

21. Record the following transactions in a Petty cash book with suitable
columns. The book is
kept on imprest system, amount of imprest being Rs 500.
2010
April 1 Petty cash in hand Rs. 54. Received cash to make up the imprest.
Paid for office cleaning Rs 10.
April 4 Paid railway fare Rs 32, bus fare Rs 28, Telegram Rs. 25
April 5 Bought shorthand note books for office Rs 37
April 7 Paid carriage on Parcels Rs 15, paid for telegram Rs 22
April 10 Bought stamps for Rs 30, Envelopes for Rs 45 and an accounts
register for Rs 40
April 12 Paid for repairs Rs 20, gave tip to office peon Rs 15
April 12 Paid for repairs Rs 20, gave tips to office peon Rs 15
April 13 Gave charity Rs 10, served tea to customers Rs 25
April 15 Paid for telephone calls Rs 16, Coolie, carriage Rs 15; Sundry
exp. Rs 90
Ans. : Petty Cash balance Rs 120; Postage and Telegram Rs 93; Printing
and Stationery Rs 122; Travelling
Rs 122; Coolie, Cartage and Carriage Rs 15; Sundry expense Rs 90.
Subsidiary Books
Other Subsidiary Books
22. Prepare Pruchases Book of Mangat Traders dealing in readymade
garments, from the following information.
2010
Feb. 10 Purchased from Sita Sons
20 Shirts @ Rs. 500 each
30 Shirts @ Rs. 500 each
15 Shirts @ Rs. 1,000 each
Feb. 15 Bought of Happy Garments
150 Vests @ Rs. 45 each
200 Ties @ Rs. 100 each
150 Skirts @ Rs. 250 each
Less: 15% Discount
Feb. 25 Bought of Laxmi Stores
70 Pairs of Socks @ Rs.100 each
90 Pairs of Socks @ Rs.150 each
110 undergarments @ Rs. 200 each
Less: 5% Discount
 - 16 -

23. Record the following transactions in the Purchase Book of Silver

Furnishers.
2010
Mar. 3 Purchased from Haryana Furnishers
3 Chairs @ Rs. 600 each
2 Tables @ Rs. 2,500 each
1 Showcase @ Rs. 4,000 each
Less: 10% Discount

Mar. 13 Purchased from Star Furniture Store

5 Dining Sets @ Rs. 8,500 each
3 Double Beds @ Rs. 6,000 each
2 Dressing Tables @ Rs. 2,000 each
4 Writing Tables @ Rs 3,200 each
Mar. 28 Purchased from Chandigarh Furniture House
10 Folding Chairs @ Rs 400
20 Desks @ Rs 2,500
15 Beds @ Rs. 3,600
10 Computer Tables @ Rs. 4,000
25 Tables @ Rs 3,000
Less: 10% Discount

24. Enter the following transactions in the Books of Cheap Cloth House.
2010
June. 2 Purchased from Royal Silk Store
10 Sarees @ Rs. 1,300 each
20 Meters long cloth @ Rs. 100 per metre
30 Shirting @ Rs. 500 each
Less: 10% Discount
June. 10 Purchased from Zohra Fabrics
5 Nylone Sarees @ Rs. 500 each
20 Pant Pieces @ Rs. 300 each
30 Turbans @ Rs. 300 each
June. 20 Purchased from Delhi Cloth Mills
20 Metres Poplin @ Rs. 120 per metre
15 Metres Rough Cloth @ Rs. 20 per metre
10 Bundles of Muslin @ Rs. 1,200 each
Less: 10% Discount
25. Enter the following transactions in the Books of Bhushan Steel Co.
2010
Dec. 1 Purchased from Gupta Iron Merchants
10 tons of Steel Rods @ Rs. 1,200 per ton
15 Sheets of Black Iron @ Rs. 500 each
10 tons of Gill Iron @ Rs. 1,500 per ton
 - 17 -

Less: 11% Discount

Dec. 10 Purchased from Raunaq Steel Co.
10 Corrugated Sheets @ Rs. 800 each
20 tons of pig iron @ Rs. 2,000 per ton
30 tons of Building iron rods @ Rs. 1,200
25 Galvanised Sheets @ Rs 800 each
Dec. 26 Purchased from Handa Steel House
20 Tata Steel Sheets @ Rs. 800 each
10 White Sheets @ Rs. 900 each
20 Corrugated Sheets @Rs. 800 each
Less: 20% Discount
Dec. 28 Purchased goods for cash for Rs 16,000.

Sales Book
26. Enter the following transactions in the Books of Bombay Selections.
2009
Mar. 4 Sold to Sohan of Shimla
20 Trousers @ Rs. 850 each
10 Black Sweaters @ Rs. 700 each
30 Woolen Pairs of Socks @ Rs.200 each
30 Cardigans @ Rs 900 each
Less: 15% Discount
Mar. 12 Sold to Darshan of Delhi
12 Black Shirts @ Rs. 450 each
20 Blue Shirts @ Rs. 500 each
40 Dark Brown Shirts @ Rs. 425 each
30 Neck Ties @ Rs 250 each
27. Enter the following transactions in the Sale Book of Master Book
Store.
2010
July 5 Sold to New Public School
50 Books on English @ Rs 60
25 Mathematics Books @ Rs 70
30 English Reading Books @ Rs 50
30 Grammar Books @ Rs 80
July. 12 Sold to K.V. School
40 Accountancy Books @ Rs 220
30 Business Studies Book @ Rs 150
40 Social Studies Books @ Rs 80
30 Economics Books @ Rs 170
Less: 20% Discount

Purchase Return Books

28 Enter the following transactions in the books of Mann Stationers.
 - 18 -

2009
Jan. 1 Returned Goods to Fine Paper Stores
15 Registers @ Rs 40 Each
20 Note Pads @ Rs 15 each
Jan. 2 Returned Goods to Sunil Tata
25 File Covers @ Rs 40 Each
10 Packets of Envelopes @ Rs 30
29. Prepare Purchase Return Books of Nirman Steel Store.
2010
Mar. 5 Returned Goods to Super Steel of Chandigarh
10 Corrugated sheets @ Rs 200 Each
5 Tons of Brass Sheets @ Rs 300 Each
Mar. 20 Returned to Suraj Steel of Delhi
10 tons of Rod Bar @ Rs 2,000 Each
2 tons of Almunium Bars @ Rs 3000
Less: 15% Discount

Sale Return Books

30. Prepare the Sale Return Book of Anita Bakers from the following
Information.
2010
June 10 Goods returned to Verma of Ambala
25 Brown Breads @ Rs 20 each
10 Packets of Salt Cookies @ 15 each
June 19 Goods returned by Kiran of Agra
25 White Breads @ Rs 10 each
20 Packs of Choeo Bar @ Rs 40 each
June 21 Sold to Polka Bakery
20 Garlic Bread @ Rs 25
15 White Bread @ Rs 40
40 Packets of Sweet Choco Bar @ Rs 40
31. Enter the Following Transactions in the Sale Return Book of Lee
Shoes.
2010
July 10 Goods returned by Boston Bros
25 Pairs of Kids Shoes @ Rs 200
10 Pairs of Ladies Shoes @ Rs 400
20 Pairs of Gents Shoes @ Rs 900
Less : 20% Discount
July 19 Goods returned by German Shoes
5 Pairs of Cotton Socks @ Rs 80
10 Pairs of Woolen Socks @ Rs 200
10 Pairs of Ladies Shoes @ Rs 400
10 Pairs of Black Shoes @ Rs 700
Less : 10% Discount
 - 19 -

RECODING, POSTING AND BALANCING OF SUBSIDIARY BOOKS

Cash Book and its Posting
32. Enter the following transactions in Triple columns cash book and post
them into Ledger.
2010
May 1 Balance of cash in hands Rs. 14,400 , overdraft at bank Rs.
26,000.
May 3 Direct deposit by Mr. Ghosh in our bank account Rs 10,000.
Discount allowed Rs 200.
May 5 Issued a cheque of Rs 7,700 to Mr. Suresh in full settlement of his
account of Rs 8,000.
May 6 Received a cheque from X for Rs 12,000. Discount allowed Rs 500.
This cheque was
deposited into bank on 7 May.
May 8 Received Cash Rs 22,000 and cheque of Rs 8,000 for cash sale.
May 12 Cash sale Rs. 70,000 of which Rs. 55,000 banked.
May 15 Cheque received on 8 May endorsed to Mr. Sunil. Discount
received Rs 150.
May 20 Discounted a B/R of Rs 10,000 at 1% through bank.
May 24 Cheque received from X dishonoured, Bank debits Rs 20 in
respect of bank charges.
May 25 Purchased goods for Rs 50,000 at a trade discount of 10%.
Payment was made in cash
May 26 Withdrew from bank Rs 10,000 for office use and Rs. 2,000 for
personal use
May 31 Interest debited by Bank Rs 4,500
Ans. Cash Balance Rs. 16,400; Bank Balance (Dr.) Rs.4,680;Discount
(Dr.) Rs. 800; and
Discount (Cr.) Rs. 950.

Purchase Book and its Posting

33. Record the following transactions in Purchase Book of Modern.
2006
Nov 3 Purchased goods from Sachdeva Furniture Store
100 Chairs @ Rs 100 each
10 Tables @ Rs1,500 each
Less : 10% Discount
10 Purchased furniture from Mohan & Co valued at Rs. 20,000, Less 12 ½
% Trade Discount 18
Purchased furniture from Fashion Furniture House of the List Price of Rs
25,000.
Less 15%
20 Purchased furniture from India Furniture House 150 Chairs @100 Each
25 Purchased from Mohan Lal & Sons furniture of the value of Rs 8,000
each
 - 20 -

Ans. Total of Purchase Book Rs. 76,250

SALE BOOK AND ITS POSTING

34. Record the following transaction in Sale Book of sh. Vivek Jain and
Post them into Ledger.
2010
Dec 5 Sold to M/s Vikram & Sons
Goods valued at Rs 20,000 Less : Trade Discount 10%
10 Sold to M/s Sohan Lal & Sons. Karol Bagh
60 Electric Fans @ Rs 800 each
40 Room Coolers @ Rs 1,250 each
Less : Trade Discount 8%
16 Manesh & Co. purchased from us goods of Rs 12,000, Less : 5%
24 Sold goods for cash Rs 16,000
Ans. Total of Sale Book Rs. 1,19,560

Purchase Return Book and its Posting

35. Record the following transaction in Sales Book of sh. Jain Dass and
Post them into Ledger.
2010
Nov 7 Returned to Sachdeva Furniture Store
10 Chairs @ Rs 100 each
2 Tables @ Rs 750 each
Less : 10% Discount
22 Returned 8 chairs to India Furniture House @ Rs 150 Each being not
of specified quality
24 Returned one Dining Table to Arora & Co., being not according to
sample Rs 5,000
28 Allowance claimed from Delhi Furniture shop, on account of mistake in
the
invoice Rs 1,600.
Ans. Total of Purchase Return Book Rs. 10,050

Sale Return Book and its Posting

36. Record the following transaction in Return inward Book and Post it into
Ledger.
2009
Jan 5 Goods returned to us by Grish & Co. worth Rs 8,000, Less 10%
trade discount.
10 Shah Brothers, Jaipur, returned goods, being not according to sample
worth Rs 6,000
16 Allowance claimed by Jai Singh & Co., Mathura, on account of a
mistake in the
invoice Rs 500
20 Goods returned by Mohan sons, being defective Rs 4,000
Ans.: Total of Sale Return Book Rs. 17,700
 - 21 -

RECORDING, POSTING AND BALANCING

Proper Subsidiary Book
37. Enter the following transactions in proper subsidary book.
2007
Jan 1 Started business with cash Rs 80,000.
2 Deposited into bank Rs 50,000
3 Purchased from Sunil Lal Sons goods of the list price of Rs 20,000 at
10% trade discount
5 Returned to Sunil Lal & Sons goods of the list price of Rs 2,000
10 Issued a cheque to Sunil Lal & Sons in full settlement of their account
12 Sold to Sri. Krishan, goods worth Rs 25,000
15 Received Cash Rs 10,000 and a cheque for Rs. 8,000 from Sri.
Krishan. The cheque was
immediately sent to bank
17 Sold to Ram Brothers, goods valued at Rs 16,000
20 Cash Purchases Rs 15,000.
22 Withdrew from bank for office use Rs 10,000
23 Purchased from Bombay Trading Co. goods valued at Rs 24,000
24 Sri. Krishan returned goods worth Rs 2,000
25 Received from Ram Brothers Rs 9,800
27 Paid Rent by cheque Rs 2,800
Received commission in cash Rs 8,00
30 Paid salaries worth Rs 5, 000
Ans. Cash Balance Rs 40,600; Bank Balance 29,000; Total of
Purchase Book Rs. 42,000; Sales Book Rs
41,000; Purchase Return Book Rs 1,800; Sales Return Book Rs
2,000;Trial Balance Total Rs. 1,47600
Dr. Balance: Cash Rs 30,600 ; Bank Rs 39,000; Purchases Rs
57,000
Sri Kirshan Rs 5,000 ; Ram Brothers Rs 6,000
Sales Returns Rs 2,000; Discount Rs 200; Rent Rs 2,800 and
Salaries Rs 5,000.
Cr. Balances: Capital Rs 80,000; Purchases Return Rs 1,800; Sale
Rs 41,000; Bombay Trading Co.
Rs 24,000 and commission Rs 800.

BANK RECONCILATION STAEMENT

QUESTION:From the following particulars, prepare Bank

Reconciliation Statement showing the balance as per bank
pass book on 31 March, 2007.
The following cheques were paid into the firm's current account
in March 2007, but were credited by the bank in April 2006 :
 - 22 -

Shri Morarji Dalal Rs 2,500, Shri Dinkar Tapase Rs 3,000, and

Shri Baliram Gidwani Rs 2,400.
The following cheques were issued by the firm in March, 2007
and were cashed in April, 2007
Shri M. Kher Rs 3,000, Shri Natverlal Mehta Rs 5,000, and Shri
Dayabhai Desai Rs 3,000.
A cheque for Rs 1,000, which was received from a customer,
was entered in the bank column of the cash book in March
2007 but the same was paid into bank in April 2007.
The passbook shows a credit of Rs 2,500 for interest and a
debit of Rs 500 for bank charges. The balance as cash was Rs
1,80,000 on 31 March 2007.

QUESTION:From the following particulars ascertain the

balance that would appear in the bank pass book of A on 31
December 2006.
(i) The bank overdraft as per cash book on 31 December, 2006
– Rs. 6,340.
(ii) Interest on overdraft for 6 months ending 31 December,
2006 – Rs 160 is enterest in the passbook.
(iii) Bank charges of Rs 30 for the above period are debited in
the passbook.
(iv) Cheques issued but not cashed prior to 31 December,
2006, amounted to Rs 1,168.
(v) Interest on investments collected by the bank and credited
in the passbook, Rs 1,200.

QUESTION:From the following particulars, prepare a a bank

reconciliation statement showing the balance as per cash book.
The following cheques were paid into the bank in December
2005 but were credited by bank in January 2006
Seema – Rs 3,500, Sangita – Rs 2,500, Sonia – Rs 2,000
The following cheques were issued by the firm in December,
2005 but were presented in January, 2006 ,,Arti – Rs 4,000,
Bharti – Rs 4,500
A cheque for Rs. 1,000, which was received from a customer,
was entered in the bank column of cash book in December
2005 but was omitted to be banked in December 2005.
 - 23 -

The passbook shows a debit of Rs 1,000 for bank charges and

a credit of Rs 2,000 for interest. Interest on investments, Rs
2,500, collected by bank appeared in the passbook.
The bank balance as per passbook was Rs 20,000 on 31
December, 2005.

QUESTION: My bank passbook for Account No. 1 shows an

overdraft of Rs 6,500 on 31 March, 2006. This does not agree
with the cash book balance. From the following particulars
ascertain the cash balance:

Cheques amounting to Rs 15,000 were paid into the bank in

March out of which, it appears, only cheques amounting to Rs
4,500 were credited by the bank.
Cheques issued during March amounted in all to Rs 11,000.
Out of these, cheques for Rs 3,000 were unpaid on 31 March,
2006. The bank has wrongly debited Account No. 1 with Rs 500
in respect of a cheque drawn on Account No. 2.
The account stands debited with Rs 150 for interest and with
Rs 30 for bank charges. The bank has paid the annual
subscription of Rs 100 to my club according to my instructions.
The entries for interest charges and subscription have not yet
been made in the cash book.

QUESTION:Prepare a bank reconciliation statement from the

following particulars :
Rs
(a) Overdraft as per cash book on 31 December 2004 8,000
(b) Cheques paid into the bank but not cleared before 31
December, 2004 2,000
(c) Cheques issued but not cashed by the customer prior to 31
December, 2004 1,200
(d) Bank charges for the period charged by the bank 100
(e) Interest on overdraft charged by the bank 200
(f) Interest on debentures collected by the bank not shown in
the cash book 500
[Ans. Overdraft balance as per pass book = Rs 8,600]
 - 24 -

QUESTION:On 31 December, 2003 the bank passbook of

Naresh & Co. showed an overdraft of Rs 10,700. From the
following particulars, prepare a bank reconciliation statement.
(a) Cheques issued before 31-12-2003 but presented for
payment after that date amounted to Rs 900.
(b) Cheques paid into the bank but not collected and credited
until 31.12.2003 amounted to Rs 2,200.
(c) Interest on overdraft amounting to Rs 1,200 did not appear
in the cash book.
(d) Rs 5,000 being interest on investment collected by the bank
and credited in the pass book was not shown in the cash book.
(e) Bank charges of Rs 50 were not entered in the cash book.
(f) Rs 800 in respect of a dishonoured cheque were entered in
the passbook but not in the cash book.

TRIAL BALANCE
Question: Suresh started his business with a capital of Rs
5,00,000 on 1.1.2010. His other transactions for the month
were as follows.
2010
Jan 2 Deposited into bank 3,00,000
Jan 3 Purchased furniture for cash 50,000
Jan 4 Cash purchase of goods 30,000
Jan 5 Purchased goods from Mohan on credit 10,000
Jan 6 Purchased stationery 1,000
Jan 7 Purchsed goods from Ravi on credit 8,000
Jan 8 Sold goods on credit to Ashok 3,000
Jan 9 Cash sales 8,000
Jan 10 Paid to Ravi on account 4,000
Jan 11 Purchased computer for office use and paid by cheques
30,000
Jan 12 Paid insurance premium 1,500
Jan 13 Sold goods for cash 5,000
Jan 14 Withdrew cash from bank 70,000
Jan 15 Withdrew cash for personal use 10,000

Jan 16 Purchased goods from Alka 17,000

Jan 17 Purchased goods from Ravi 18,000
 - 25 -

Jan 18 Paid to Ravi on account 12,000

Jan 19 Cash sales 17,000
Jan 20 Sold goods to Ashok 9,000
Jan 21 Received from Ashok on account 8,000
Jan 22 Paid to Alka on account 9,000
Jan 23 Received from Ashok on account 2,000
Jan 24 Amount obtained loan from ICICI Bank 50,000
Jan 25 Cash sales 13,500
Jan 31 Paid salary 7,500
Jan 31 Rent 5,000
Record the above transactions in the journal of Suresh, post
them in the ledger and prepare a trial balance of Suresh as on
31.1.2007 on ‘Total Method’ basis.

Question:Enter the following transactions in the books of

Kamal, post them in ledger and prepare a trial balance as on
30.04.2010

2010
April 1 Started business with Cash 1,00,000
April 2 Deposited Cash into Bank 30,000
April 5 Purchased goods for Cash 10,000
April 6 Purchased goods from Naveen 20,000
April 10 Paid to Naveen on account 8,000
April 15 Purchased goods from Kavi 40,000
April 16 Paid to Kavi on account by Cheque 18,000
April 20 Sold goods for Cash 35,000
April 25 Sold goods to Vimal 30,000
April 28 Received from Vimal on account 21,000
April 30 Paid Salary 14,000