ILLUSTRATION
Vikas Sharma was carrying on business of hosiery goods. On ist January 1978 his assets and liabilities were as follows:
Assets: plant and Machinary Rs 6000, Furniture Rs 2000, Stock of goods Rs 8000, Cash in hand Rs 1100, Cash at bank Rs 5000, Amount due from Sonnu Rs 2010, Amount due from Raunak Singh Rs 777.
Liabilities: Amount due to Batra & Co. Rs 400, Bhuller & Co Rs 308, and Bhatia & sons Rs 1616.
The following transactions took place during the month of January 1978:
1. Purchased goods from Batra & co. Rs 1800
2. Cash sales Rs 1350
3. Deposited in Bank Rs 400
4. Sold goods to sonnu Rs 750
5. Cash received from raunak Singh Rs 760
Discount allowed Rs 17
6. Paid cheque to Batra & co on account Rs 1000
7. Hoseiry goods taken for domestic use Rs 250
8. Bought Postage stamps rs 25
Bought National Plan certificates(by cheque) rs 3000
Paid for advertising expenses rs 275
9. Withdrawn from Bank for office use Rs 175
10. Withdrwan from Bank for domestic use Rs 211
11. Paid cheque to Bhuller & co. in full settlement rs 300
12. The above cheque is dishonoured because of wrong stamping, Cheque withdrawn and cash paid to Bhuller & co.
13. Purchased goods from Bhatia & sons rs 2600
14. Cash received from Sonnu on account Rs 1400
15. Goods destroyed by fire Rs 240
16. Old Furniture(Cost Rs 400) sold rs 280
17. Sonnu declared insolvent: Only 30% is received against amount due from him
18. Repairs to machinery Rs 155
19. Returned defective goods to Bhatia & sons rs 200
Received from Durga Dutt whose account was written off earlier
20. Provide for:
a. Interest on capital: rs 70
b. Rent due to landlord:rs 300
21. Paid Income tax( personal) rs 160
ILLUSTRATION
Journalise the following transactions in the books of sh V.K rao, post them into ledger and prepare a trial balance as at 30th june 2003.
1. Commenced business with a capital of Rs 10,000
2. Purchased office furniture for Rs 1500
3. Purchased goods from Mr Anil for Rs 3000
4. Sold goods to Mr Azad for Rs 2500
5. Received cash from Mr Azad Rs 2400 in full settlement
6. Paid to Mr Anil in cash Rs 2800 and he allowed discount Rs 200
7. Sold goods for cash Rs 800
8. Opened a bank account with Rs 1100
9. Paid salary to Mr Gokul Rs 400
10. Withdrew cash from bank for personal use Rs 300
JOURNALISE THE FOLLOWING TRANSACTIONS, POST THEM INTO LEDGER AND PREPARE A TRIAL BALANCE AS ON 30TH SEPTEMBER 2003.
1. SMITH COMMENCED BUSINESS WITH CASH RS 30,000
2. PURCHASED GOODS FOR CASH RS 1250
3. DEPOSITED INTO BANK RS 22,500
4. BOUGHT FURNITURE FOR OFFICE USE RS 3500
5. SOLD GOODS TO STEPHENS RS 1500
6. DREW FROM BANK FOR OFFICE USE RS 2500
7. BOUGHT GOODS FROM ROBERT RS 1025
8. RECEIVED CASH FROM STEPHENS RS RS 1475
ALLOWED HIM DISCOUNT RS 25
9. PAID FOR MISCELLANEOUS EXPENSES RS 250
10. PAID ROBERT IN FULL SETTLEMENT RS 1000
11. PAID SALARY TO KEITH RS 125
12. PAID RENT TO LANDLORD RS 250
13. ALLOW INTEREST ON CAPITAL RS 250
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