Page No. 6.15:
Question 1:
Following accounts are being maintained in the books of Shri Ashok. Classify them into Personal, Real and Nominal Accounts:
(i) Land and Building | (vii) Investments | (xiv) Ramesh, a debtor |
(ii) Excise Duty | (viii) Salary | (xv) Interest Received |
(iii) Creditors | (ix) Debtors | (xvi) Bank Overdraft |
(iv) Capital | (x) Bad Debts | (xvii) Purchase Returns |
(v) Motor Vehicles | (xi) Depreciation | (xviii) Drawings |
(vi) Goodwill | (xii) Wages | (xix) Freight |
| (xiii) Repairs | (xx) Return Inwards. |
Answer 1:
Nominal A/c | Personal A/c | Real A/c |
Bad Debts | Bank Overdraft | Goodwill |
Depreciation | Capital | Investments |
Excise Duty | Creditors | Land & Building |
Freight | Debtors | Motor Vehicles |
Interest Received | Drawings | |
Purchase Returns | Ramesh, a debtor | |
Repair | ||
Return Inwards | ||
Salary | ||
Wages |
Question 2:
Classify the following into Assets, Liabilities, Capital, Expenses and Revenue:
(i) Land | (ii) Investments | (iii) Building | (iv) Interest Received |
(v) Salary | (vi) Bank Overdraft | (vii) Debtors | (viii) Creditors |
(ix) Bad Debts | (x) Capital | (xi) Depreciation | (xii) Motor Vehicles |
(xiii) Freight | (xiv) Wages | (xv) Goodwill | (xvi) Repairs |
Answer 2:
S.no. | Assets | Nature |
1 | Land | Assets |
2 | Investments | Assets |
3 | Building | Assets |
4 | Interest Received | Revenue |
5 | Salary | Expenses |
6 | Bank Overdraft | Liabilities |
7 | Debtors | Assets |
8 | Creditors | Liabilities |
9 | Bad Debts | Expenses |
10 | Capital | Capital |
11 | Depreciation | Expenses |
12 | Motor Vehicles | Assets |
13 | Freight | Expenses |
14 | Wages | Expenses |
15 | Goodwill | Assets |
16 | Repairs | Expenses |
Question 3:
Classify the following into assets, liabilities, capital, revenue, and expenses:
(i) Plant and Machinery | (ii) Bank Loan | (iii) Sales | (iv) Rent |
(v) Discount Received | (vi) Carriage Inwards | (vii) Carriage outwards | (viii) Purchases |
(ix) Bills Payable | (x) Wages | (xi) Advance Income | (xii) Accrued Income |
(xiii) Goodwill | (xiv)Furniture and Fixtures | (xv) Outstanding Expenses | (xvi) Capital |
Answer 3:
S.no. | Assets | Nature |
1 | Plant and Machinery | Assets |
2 | Bank Loan | Liabilities |
3 | Sales | Revenue |
4 | Rent | Expenses |
5 | Discount Received | Revenue |
6 | Carriage Inwards | Expenses |
7 | Carriage Outwards | Expenses |
8 | Purchases | Expenses |
9 | Bills Payable | Liabilities |
10 | Wages | Expenses |
11 | Advance Income | Liabilities |
12 | Accrued Income | Assets |
13 | Goodwill | Assets |
14 | Furniture and Fixtures | Assets |
15 | Outstanding Expenses | Liabilities |
16 | Capital | Capital |
Page No 6.16:
Question 4:
On which side will the increase in the following accounts be recorded? Also, state the nature of the account:
(i) Furniture A/c | (ii) Mohan (proprietor) |
(iii) Salary A/c | (iv) Purchases A/c |
(v) Sales A/c | (vi) Interest Paid A/c |
(vii) Sohan (Creditor) | (viii) Ram (Debtor) |
Answer 4:
Name of Accounts | Side Increased | Nature of Account | Type of Account | |
(i) | Furniture A/c | Debit | Assets | Real A/c |
(ii) | Mohan (Proprietor) A/c | Credit | Capital | Personal A/c |
(iii) | Salary A/c | Debit | Expense | Nominal A/c |
(iv) | Purchases A/c | Debit | Expense | Nominal A/c |
(v) | Sales A/c | Credit | Revenue | Nominal A/c |
(vi) | Interest Paid A/c | Debit | Expense | Nominal A/c |
(vii) | Sohan (Creditor) A/c | Credit | Liabilities | Personal A/c |
(viii) | Ram (Debtor) A/c | Debit | Assets | Personal A/c |
Question 5:
On which side will the decrease in the following accounts be recorded? Also, state the nature of the account:
(i) Cash | (ii) Bank Overdraft |
(iii) Outstanding salary paid | (iv) Outstanding Rent |
(v) Prepaid Insurance | (vi) Mohan, Proprietor of the business |
Answer 5:
Name of Accounts | Side decrease | Nature of Account | Type of Account | |
(i) | Cash | Credit | Assets | Real A/c |
(ii) | Bank Overdraft | Debit | Liability | Personal A/c |
(iii) | Outstanding Salary Paid | Debit | Liability | Personal A/c |
(iv) | Outstanding Rent | Debit | Liability | Personal A/c |
(v) | Prepaid Insurance | Credit | Asset | Personal A/c |
(vi) | Mohan, proprietor of the business | Debit | Capital | Real A/c |
Question 6:
From the following Transactions , state the nature of account and state which account will be debited and which account credited:
|
| Rs. |
(i) | Manu started business with cash | 1,00,000 |
(ii) | He purchased furniture for business | 20,000 |
(iii) | Purchase goods on credit from Anshul | 6,000 |
(iv) | Paid to his creditor, Anshul | 2,000 |
(v) | Paid salary to his clerk | 1,000 |
(vi) | Paid Rent | 500 |
(vii) | Received Interest | 200 |
Transactions | Nature of Account | |
Debit | Credit | |
Manu started business with cash | Cash A/c | Capital A/c |
He purchased furniture for business | Furniture A/c | Cash A/c |
Purchased goods on credit from Anshul | Purchases A/c | Creditor A/c |
Paid to his creditor, Anshul | Creditor A/c | Cash A/c |
Paid salary to his clerk | Salary A/c | Cash A/c |
Paid rent | Rent A/c | Cash A/c |
Received interest | Cash A/c | Interest A/c |
Page No 6.17:
Question 7:
Analyse the following transactions, state the nature of accounts and state which account will be debited and which account credited:
S.No | Particulars | Rs. |
(i) | Lal started business with cash | 3,00,000 |
(ii) | Purchased furniture for cash from Shanti Furniture House | 75,000 |
(iii) | Purchase goods for cash | 55,000 |
(iv) | Sold goods for cash to Pal | 35,000 |
(v) | Sold goods to Om on credit | 60,000 |
(vi) | Deposited cash in bank for opening an account | 70,000 |
(vii) | Received a cheque from Om | 20,000 |
(viii) | Deposited Om's cheque the next day | - |
(ix) | Borrowed from Sohan | 1,00,000 |
(x) | Purchased furniture from Haryana safe | 50,000 |
(xi) | Paid interest on loan | 10,000 |
(xii) | Paid rent by cheque | 4,000 |
(xiii) | Paid salary to staff | 14,000 |
(xiv) | Withdraw cash for personal use | 5,000 |
Answer 7:
Transactions | Nature of Account | |
Debit | Credit | |
Lal started business with cash | Cash A/c | Capital A/c |
Purchased furniture for cash from Shanti Furniture House | Furniture A/c | Cash A/c |
Purchased goods for cash | Purchase A/c | Cash A/c |
Sold goods for cash to Pal | Cash A/c | Sales A/c |
Sold goods to Om on credit | Om A/c | Sales A/c |
Deposited cash in bank for opening an account | Bank A/c | Cash A/c |
Received a cheque from Om | Since no transaction has been made, no entry will be passed. | |
Deposited Om’s cheque the next day | Bank A/c | Om A/c |
Borrowed from Sohan | Cash A/c | Sohan’s A/c |
Purchased furniture from Haryana Safe | Furniture A/c | Haryana Safe A/c |
Paid interest on loan | Interest on loan A/c | Cash A/c |
Paid rent by cheque | Rent A/c | Bank A/c |
Paid salary to staff | Salary A/c | Cash A/c |
Withdrew cash for personal use | Drawing A/c | Cash A/c |
Question 8:
Open a 'T' shape account for machinery and put the following transactions on the proper side:
|
| Rs. |
(i) | Machinery purchased | 40,000 |
(ii) | Machinery sold | 10,000 |
(iii) | Machinery purchased | 8,000 |
(iv) | Machinery discarded | 14,000 |
(v) | Depreciation on machinery | 1,000 |
|
|
|
Answer 8:
Machinery Account | ||||||
Dr. |
| Cr. | ||||
Date | Particulars | Amount (Rs.) | Particulars | Amount (Rs.) | ||
| To Bank A/c | 40,000 | By Bank A/c | 10,000 | ||
| To Bank A/c | 8,000 | By Bank A/c | 14,000 | ||
|
|
| By Depreciation | 1,000 | ||
|
|
| By Balance c/d | 23,000 | ||
|
| 48,000 |
| 48,000 | ||
|
|
|
|
| ||
Note: - Machinery Discarded Means – It is sold for cash before it is fully depreciated.
Journal Entry for the Transaction.
Bank A/c Dr.14,000
To Machinery A/c14,000
Question 9:
Open a 'T' shape Cash Account. Put the following transactions on the proper side and balance the account:
|
| Rs. |
(i) | Mohan started business with cash | 40,000 |
(ii) | Purchased Goods | 20,000 |
(iii) | Sold Goods | 24,000 |
(iv) | Paid Rent | 400 |
(v) | Paid salaries | 600 |
(vi) | Drew for personal use | 1,000 |
Answer 9:
Cash Account | |||||||||
Dr. |
| Cr. | |||||||
Date | Particulars | J.F. | Amount (Rs.) | Date | Particulars | J.F. | Amount (Rs.) | ||
To Capital a/c |
| 40,000 | By Purchases a/c |
| 20,000 | ||||
To Sales a/c |
| 24,000 | By Rent a/c |
| 400 | ||||
|
|
|
| By Salaries a/c |
| 600 | |||
|
|
|
| By Drawings a/c |
| 1,000 | |||
|
|
|
|
| By Balance c/d |
| 42,000 | ||
|
|
| 64,000 |
|
|
| 64,000 | ||
|
|
|
|
|
|
|
| ||
Question 10:
Open a 'T' shape account of creditor, 'Rakesh' and write the following transactions on the proper side:
|
| Rs. |
(i) | Goods purchased from Rakesh on credit | 50,000 |
(ii) | Goods returned to Rakesh for | 5,000 |
(iii) | Paid to Rakesh | 20,000 |
(iv) | Purchase goods from Rakesh on credit | 10,000 |
Answer 10:
Rakesh’s Account | |||||||
Dr. |
| Cr. | |||||
Date | Particulars | J.F. | Amount (Rs.) | Date | Particulars | J.F. | Amount (Rs.) |
| To Purchases Return a/c |
| 5,000 |
| By Purchases a/c |
| 50,000 |
| To Cash a/c |
| 20,000 |
| By Purchases a/c |
| 10,000 |
| To Balance c/d |
| 35,000 |
|
|
|
|
|
|
| 60,000 |
|
|
| 60,000 |
|
|
|
|
|
|
|
|
Page No 6.18:
Question 11:
Open a 'T' shape account of debtor 'Brij' and write the following transactions on the proper side:
|
| Rs. |
(i) | Sold goods to Brij on credit | 25,000 |
(ii) | Cash received from Brij | 10,000 500 |
(iii) | Goods returned by Brij | 5,000 |
Answer 11:
Brij’s (Debtors) Accounts | |||||||
Dr. |
| Cr. | |||||
Date | Particulars | J.F. | Amount (Rs.) | Date | Particulars | J.F. | Amount (Rs.) |
To Sales a/c |
| 25,000 | By Cash a/c |
| 10,000 | ||
|
|
|
|
| By Discount Received a/c |
| 500 |
|
|
|
| By Sales Return a/c |
| 5,000 | |
|
|
|
|
| By Balance c/d |
| 9,500 |
|
|
| 25,000 |
|
|
| 25,000 |
|
|
|
|
|
|
|
|
Question12:
Put the following on the proper side of a Cash Account, a Debtor's Account and a Creditor's Account :
|
| Rs. |
(i) | Sold goods to Sanjay on credit | 50,000 |
(ii) | Sold goods to Mohan for cash | 20,000 |
(iii) | Purchased goods from Ram on credit | 25,000 |
(iv) | Cash received from Sanjay | 19,000 |
(v) | Goods returned by Sanjay | 2,000 |
(vi) | Paid rent | 500 |
(vii) | Cash paid to Ram | 15,000 |
Answer 12:
Cash Account | |||||||||
Dr. |
| Cr. | |||||||
Date | Particulars | J.F. | Amount (Rs.) | Date | Particulars | J.F. | Amount (Rs.) | ||
To Sales a/c |
| 20,000 | By Rent a/c |
| 500 | ||||
To Sanjay a/c |
| 19,000 | By Ram a/c |
| 15,000 | ||||
|
|
|
|
| By Balance c/d |
| 23,500 | ||
|
|
| 39,000 |
|
|
| 39,000 | ||
|
|
|
|
|
|
|
| ||
Sanjay’s (Debtors) Accounts | |||||||||
Dr. |
| Cr. | |||||||
Date | Particulars | J.F. | Amount (Rs.) | Date | Particulars | J.F. | Amount (Rs.) | ||
To Sales |
| 50,000 |
| By Cash a/c |
| 19,000 | |||
|
|
|
|
| By Sales Return a/c |
| 2,000 | ||
|
|
|
|
| By Balance c/d |
| 29,000 | ||
|
|
| 50,000 |
|
|
| 50,000 | ||
|
|
|
|
|
|
|
| ||
Ram’s (Creditors) Accounts | |||||||||
Dr. |
| Cr. | |||||||
Date | Particulars | J.F. | Amount (Rs.) | Date | Particulars | J.F. | Amount (Rs.) | ||
To Cash a/c |
| 15,000 | By Purchase a/c |
| 25,000 | ||||
| To Balance c/d |
| 10,000 |
|
|
|
| ||
|
|
| 25,000 |
|
|
| 25,000 | ||
|
|
|
|
|
|
|
| ||
Question 13:
From the following particulars, prepare the proprietor's Capital Account:
| Rs. |
1st April, 2017——Commenced business with cash | 2,00,000 |
31st March, 2018——Net Loss as per Profit and Loss Account | 18,000 |
31st March, 2018——Drawings during the period | 15,000 |
Balance the same and explain what the closing balance indicates.
Answer 13:
Capital Account | ||||||||
Dr. |
| Cr. | ||||||
Date | Particulars | J.F. | Amount (Rs.) | Date | Particulars | J.F. | Amount (Rs.) | |
2018 |
|
|
| 2017 |
|
|
| |
March 31 | To Profit and Loss A/c (Loss) |
| 18,000 | April 01 | By Cash |
| 2,00,000 | |
March 31 | To Drawings |
| 15,000 |
|
|
|
| |
March 31 | To Balance c/d |
| 1,67,000 |
|
|
|
| |
|
|
| 2,00,000 |
|
|
| 2,00,000 | |
|
|
|
|
|
|
|
| |
As per the calculation Capital Balance as on 31st March, 2018 should be Rs.1,67,000 but the answer given in the text book is Rs. 16,700.
Question 14:
From the following particulars, prepare the proprietor's Capital Account:
2013 |
| Rs. |
April 1 | Started business with | 45,000 |
May 10 | Withdrew from business for personal use | 10,000 |
July 15 | Further Capital introduced | 55,000 |
Nov. 30 | Income tax paid | 5,000 |
2014 |
|
|
Mar. 31 | Profit for the year | 30,000 |
Answer 14:
Proprietor’s Capital Account | ||||||
Dr. | Cr. | |||||
Date | Particulars | Amount (Rs.) | Date | Particulars | Amount (Rs.) | |
2013 |
|
| 2013 |
|
| |
Mar.10 | To Drawings A/c | 10,000 | Apr.01 | By Cash A/c | 45,000 | |
Nov.30 | To Drawings A/c ( Income Tax) | 5,000 | July 15 | By Cash A/c(Additional Capital) | 55,000 | |
2014 |
|
| 2014 |
|
| |
Mar.31 | To Balance c/d | 1,15,000 | Mar.31 | By Profit and Loss A/c | 30,000 | |
|
|
|
|
|
| |
|
| 1,30,000 |
|
| 1,30,000 | |
|
|
|
|
|
| |