Practice Questions:

Q1. Journalise the following transactions, post them in the ledger and balance them.
2011
Jan 1 : Amit started business with cash Rs.50,000.
Jan 2 : Deposit into bank Rs. 20,000.
Jan3 : Purchased machinery for Rs.5,000 from Shyam and gave him a cheque for the amount.
Jan 12 : Purchased goods for cash Rs. 1,500.
Jan 15 : Purchased goods from Nathan on credit Rs. 2,500.
Jan 20 : Sold goods for Rs. 3,500.
Jan 25 : Sold goods to Rita on credit for Rs.4,500.
Jan 26 : He paid wages Rs. 1500 and Rent Rs.1,000.
Jan 27 : He received commission Rs.1,200.
Jan 27 : Received cash from Rita Rs. 4,300 and discount allowed to him Rs.200.
Jan 28 : Sent to Nathan in full settlement a cheque for Rs. 2,450.

Q2. Journalise the following transactions, post them in the ledger and balance them.
2011
April 1 : Vishal commenced business with Rs.1, 50,000.
April 2 : He Deposit cash into bank Rs.1, 00,000.
April 3 : He purchased Furniture for Rs.55, 000 and payment made by issue a cheque.
April 8 : He purchased goods from Vijay on credit Rs. 25, 000.
April 16 : He sold goods to Robin on credit for Rs.45,000.
April 20 : He paid insurance in advance Rs.1, 000.
April 23 : He withdrew goods for personal use Rs.2, 500.
April 26 : He paid to Vijay by cheque Rs. 24,500 in full settlement of his account.
April 28 : Robin returned goods Rs. 1, 500.
April 30 : He paid salaries Rs.5,000 and commission Rs. 1,000.

Q3. Prepare a trail balance from the following balances taken from the books of M/s ABC Enterprise on 31 st March, 2011.
Particulars Rs Particulars Rs
Capital 73600Purchases 1,00,000
Building 60,000Fixtures 5,600
Machinery 17,000Sales 1,04,000
Returns Outwards 2,600Debtors 60,000
Returns Inwards 1,000Interest received 2,600
Bad debts 2,800Discount allowed 1,000
Cash-in-hand 400Commission (cr) 1,000
Discount received 3,000Drawings 2,500
Bank overdraft 10,000Stock on 1.4.2010 2,500
Creditors 50,000Depreciation 1,000

Q4. Record the following transaction of Mr. Arup in triple column cash book:
2011
April 1 : Commenced business with Rs.12,500 in cash.
April 3 : Deposited office cash in the bank Rs. 1,000.
April 4 : Bought furniture and issue cheque Rs.2,000.
April 8 : Purchased goods for cash Rs.500.
April 12 : Received cash from Mahindra Rs.980.
April 12 : Discount allowed to him Rs.20.
April 14 : Cash sales Rs.4,000.
April 16 : Paid to Amit by cheque Rs.1,450.
April 16 : Discount received Rs.50.
April 19 : Paid into bank Rs.400.
April 23 : Withdrawn from bank for private expenses Rs.600.
April 24 : Received cheque from Peter 1,430.
April 24 : Allowed him discount Rs.20.
April 26 : Deposited Peter’s cheque into bank.
April 28 : Withdrew cash from bank for office use Rs.2,000.
April 30 : Paid rent by cheque Rs.800.
Q5. Enter the following transactions in a triple column cash book.
2011
Jan 1 : Balance of cash in hand Rs.400 and cash at bank Rs.8,000.
Jan 1 : Fresh capital introduced Rs.6,000
Jan 2 : Deposited into the bank Rs.5,000.
Jan 4 : Sold goods for cash Rs.400
Jan 6 : Received from Mohan Rs.1,980 and discount allowed to him Rs.20.
Jan 9 : Electricity bill paid by cheque Rs.110.
Jan 11 : Machinery purchased Rs.1,200.
Jan 14 : Goods purchased from Ram for cash Rs.2,000.
Jan 17 : Paid to Rajesh Rs490 and discount received from him Rs.10.
Jan 19 : Withdrew from the bank for business use Rs.400.
Jan 21 : Withdrew from the bank for private use Rs.600.
Jan 22 : Paid rent by cheque Rs.200.
Jan 26 : Received from Paul Rs.780 and discount allowed Rs.20.
Jan 27 : Received cheque from Partap Rs.390 and discount allowed Rs.10.
Jan 29 : Cheque received from Partap, sent to the bank.
Jan 30 : Deposited into the bank Rs.470.
Jan 31 : Paid salaries Rs.600 [Ans: Cash = Rs.200 and Bank= Rs.12,550]
Q6. Enter the following transactions in the three-columnar cash book.
2011
June 1 : Commenced business with cash Rs.50,000.
June 2 : Opened a current account with the Punjab National Bank and deposited Rs.49,000.
June 3 : Sold goods foe cheque Rs.1,900.
June 5 : Paid into the bank by cheque Rs.1,900.
June 8 : Paid Ram Lal by cheque Rs.500 and he allowed discount Rs.20.
June 10 : Bought goods and paid for them by cheque Rs.2,800.
June 12 : Paid cash for stationery Rs.250.
June 14 : Bought furniture and paid for the same by cheque Rs.1,450.
June 17 : Sold goods for cheque and paid into the bank on the same day Rs.1,800.
June 18 : Received from Suresh by cheque Rs.1,650 and allowed him discount Rs.30.
June 19 : Received from Parmod by cash Rs.2,000.
June 21 : Paid into the bank cash Rs.2,000 and Cheque Rs.1,650.
June 24 : Paid trade expenses by cheque Rs.800.
June 25 : Suresh’s cheque returned by bank dishonoured Rs.1,650 and discount charged Rs.30.
June 26 : Paid Motilal by cheque Rs.1,900 and he allowed discount Rs.100.
June 28 : Drew from the bank for office use Rs.1,000.
June 29 : Received from Harish cheque Rs.1,400 and allowed him discount Rs.50.
June 30 : Endorsed cheque received from Harish in favour of Naresh.
June 31 : Paid rent for the month by cheque Rs.50.
June 31 : Paid salary in cash Rs.400 and by cheque Rs.1,800.
June 31 : Bank charges as per passbook Rs.200. [Ans: Cash = Rs.1,350 and Bank= Rs.43,750]
Q7. Enter the following transactions in suitable cash book
2011
April 1 : Balance of cash in hand Rs.2,000 and in bank Rs.12,000.
April 3 : Received cash from Mohan Rs.1,800 and allowed him discount Rs.50.
April 4 : Cash sales Rs.1,000.
April 5 : Paid into bank RS 1,550.
April 6 : Purchases by cheque Rs.745.
April 8 : Paid cash for freight Rs.54.
April 10 : Drew from the bank for office use Rs.300.
April 12 : Issue cheque in favour of R. K. & Company for Rs.985 and discount allowed by them being Rs.15.
April 15 : Paid into the bank Rs.715.
April 18 : Drew cash for his son’s birthday party Rs.175.
April 20 : Received a cheque for Kamal for Rs.380 in full settlement of Rs.400)
April 21 : Old Furniture sold for Rs.200.
April 23 : New furniture Purchased for Rs.1,000 and payment made by cheque.
April 25 : Drew for office use Rs.400.
April 26 : Cheque of Kamal dishonoured, bank charges Rs 5.
April 28 : Received cheque of Rs.675 from Harish (in full settlement of a debt of Rs.690).
April 30 : Purchased machinery, payment made by cheque Rs.12,000.
 [Ans: Cash = Rs.2,206 and Bank O/D= Rs.495]
Q8. Compile a cash book from the following transactions of consumer’s stores:
2011
May 1 : Cash in hand Rs.72 and bank overdraft Rs.1,250.
May 4 : Received from Jaichand a cheque for Rs.1,875 in settlement of his account of Rs.1,950. The cheque was
deposited in the bank on the same day.
May 5 : Bought goods and paid by cheque Rs.500.
May 6 : Satinder settled his account of Rs.700 by cheque. This was deposited in the bank immediately.
May 9 : Settled A. Anand’s account of Rs.450 by cheque for Rs.420.
May 12 : Cash sales to date Rs.400 of which Rs.300 was deposited in the bank.
May 17 : Sold old typewriter for cash Rs.320.
May 20 : Received a cheque for Rs.400 from Rajiv which was endorsed to Shanti Swaroop on the same day.
May 25 : Received a cheque from D.Arnold for RS.150 in full settlement of his old account of Rs.175.
May 27 : Cheque of D.Arnold was endorsed to Shri Dinesh Chandra.
May 28 : Withdrew from the bank for office use Rs.100 and for personal use Rs.100.
May 29 : Withdrawn (from office) for payment for private bills Rs.425.
May 30 : Paid by cheque: Salaries Rs.160, Rent and Rates RS.100.
May 31 : Bank charges as per pass book Rs.5 [Ans: Cash = Rs.167 and Bank= Rs.240]

Q9. Enter the following transactions in the cash book with cash, bank and discount column:
2011
April 1 : Balance of cash in hand Rs.1,400 and overdraft at bank Rs.5,000.
April 4 : Invested further capital Rs.10,000 out of which Rs.6,000 deposited in the bank.
April 5 : Sold goods for cash Rs.3,000.
April 6 : Collected from debtors of last year Rs.8,000, discount allowed to them Rs.200.
April 10 : Purchased goods for cash Rs.5,500.
April 11 : Paid Ram Vilas, our creditors, Rs.2,500, discount allowed by him Rs.65.
April 13 : Commission paid to our agent Rs.530.
April 14 : Office furniture purchased from Keshav Rs.200.
April 14 : Rent paid Rs.50.
April 14 : Electricity charges paid Rs.10.
April 16 : Drew cheque for personal use Rs.700.
April 17 : Cash sales Rs.2,500.
April 18 : Collection from Atal Rs.4,000 deposited in the bank on 19 th April.
April 19 : Drew from bank for office use Rs.500.
April 22 : Drew cheque fro petty cash Rs.150.
April 24 : Dividend received by cheque Rs.50 deposited in the bank on the same day.
April 25 : Commission received by cheque Rs.230 deposited in the bank on 28th April.
April 29 : Drew from the bank for salary of office staff Rs.1,500.
April 29 : Paid salary of the manager by cheque Rs.500.
April 30 : Deposited cash in the bank Rs.10,000.
[Ans: Cash = Rs.810 and Bank= Rs.11,930]