Short answers : Solutions of Questions on Page Number : 142
Q1 :Briefly state how the cash book is both journal and a ledger?
Answer :
Transactions are recorded directly from source documents in the Cash Book, so there is no need to record transactions in the Journal book. Further, on the basis of the cash transactions recorded in the Cash Book, cash and bank balances can be determined, and so there is no need to prepare cash account (which is a part of ledger) separately. Thus, the Cash Book serves the purpose of both Journal as well as ledger.
Q2 :What is the purpose of contra entry?
Answer :
Contra entry represents deposits or withdrawals of cash from bank or vice versa. The purpose of contra entry is to indicate the transactions that effect both cash and bank balances. This entry does not affect the financial positions of a business. A contra entry is recorded in both sides of a two column Cash Book and is denoted by ‘C’ in the ledger folio column.
Q3 :What are special purpose books?
Answer :Business transactions are large in number and difficult to record; so, journal is sub-divided for quick, efficient and accurate recording of the business transactions. Special purpose books like, sales book and purchases book are maintained for those transactions that are routine and repetitive in nature. Recording through these books is economical and enables division of work among accountants.
Q4 :What is petty cash book? How it is prepared?
Answer :
Petty Cash Book is used for recording payment of petty expenses, which are of smaller denominations like postage, stationery, conveyance, refreshment, etc. Person who maintains petty cash book is known as petty cashier and these small expenses are termed as petty expenses.
It is prepared by two methods:
Ordinary system: In this case, a fixed sum of money is paid to petty cashier for the payment of petty expenses and after spending the whole amount, the account is submitted by the petty cashier to the main cashier.
Imprest system: In this case, a fixed sum of the money is given to the petty cashier in the beginning of a period and at the end of the period the amount spent by him is reimbursed, so that he has a fixed amount in the beginning of every new period.
Q5 :Explain the meaning of posting of journal entries?
Answer :
Posting is the process of transferring the business transactions from Journal to ledgers.
Every transaction is first recorded in the Journal and subsequently transferred to their respective accounts.
Q6 :Define the purpose of maintaining subsidiary journal.
Answer :
The process of accounting starts from identification of financial and non-financial events. Financial events are first recorded in a Journal. A small business has lesser number of transactions and thereby it may be possible to record these transactions through Journal entry. However, on the contrary, as the business grows, there will be voluminous number of transactions and the firm may experience difficulty, thereby it becomes tedious to record through Journal entry. Thus, in order to save time and effort, it is recommended to sub-divide Journal. Sub-division of Journal provides scope for division of work. This leads to the improvement of efficiency and effectiveness and infuses higher degree of accountability to the accountants for the specific subsidiary Journal assigned to them. The purposes of maintaining subsidiary Journal are given below.
It saves time and efforts in recording.
It enables division of work, leading to an enhancement of efficiency and effectiveness, as particular accountant takes care of particular books.
It also makes each accountant more responsible and accountable for the books assigned to them.
It records routine and repetitive transactions at one place, which leads to easy accessibility of information and hassle-free communication.
Q7 :Write the difference between return inwards and return outwards.
Answer :
| Basis of Difference | Return Inwards | Return Outwards |
| Meaning | Goods sold to the customers, are returned by them. | Goods purchased are returned to the suppliers. |
| Balance | It has debit balance. | It has credit balance. |
| Treatment | It is deducted from Sales in the Trading Account. | It is deducted from Purchases in the Trading Account. |
| Issued | Credit note is prepared by the seller. | Debit note is prepared by the buyer. |
| Reduction | It reduces the payment from the Debtors. | It reduces the payment made to the Creditors. |
| Term | It is also termed as Sales Returns. | It is also termed as Purchases Returns. |
Q8 :What do you understand by ledger folio?
Answer :
Ledger folio is a page number of an account in ledger that is written in the L.F. column of a journal format. In journal entry, ledger folio number is written corresponding to the name of the account in the L.F. column. It helps in easy locating of the account in the ledger book. It reduces the time in recording and rechecking.
Q9 :What is difference between trade discount and cash discount?
Answer :
| Basis of Difference | Trade Discount | Cash Discount |
| Meaning | It is allowed when goods are purchase or sold. | It is allowed at the time of payment. |
| Recording in books | It is recorded in invoice/bill but not in the books. | It is recorded in the discount column of the Cash Book’s debit side, if allowed, and credit side, if received. |
| Purpose | It is allowed to increase sale. | It is allowed for earlier payment. |
| Deduction | It is deducted from the price-list of the goods. | It is not deducted from the price-list of the goods. |
Q10 :Write the process of preparing ledger from a journal.
Answer :
The process of preparing ledger from Journal can be explained with the help of an example. Let us suppose that machinery is purchased from Mr. X, so, the journal entry will be:
Machinery A/c
Dr.
To Mr. X Account
In this example, Machinery Account is debited and Mr. X Account is credited. Let us understand the process of preparing ledger from the journal entry.
Account which is debited in the entry:
Step 1: Indentify the account in ledger that is debited, i.e., ‘Machinery Account’.
Step 2: Enter date in the debit side of the ‘Machinery Account’ in the ‘Date’ column.
Step 3: Enter the name of the account as ‘Mr. X Account’ (which is credited in the entry) in the ‘Particulars’ column in the debit side of the Machinery Account.
Step 4: Enter the page number of the journal, where the entry is recorded in the ‘J.F.’ (journal folio) column.
Step 5: Post the corresponding amount in the ‘Amount’ column, which is recorded against ‘Machinery Account’ in the journal entry.
Account which is credited in entry:
Step 1: Indentify the account in ledger that is credited, i.e., ‘Mr. X Account’.
Step 2: Enter date in the credit side of ‘Mr. X Account’ in the ‘Date’ column.
Step 3: Enter the name of the account as ‘Machinery Account’ (which is debited in the entry) in the ‘Particulars’ column in the credit side of the ‘Machinery Account’.
Step 4: Enter the page number of the journal where the entry is recorded in the ‘J.F.’ (journal folio) column.
Step 5: Post the corresponding amount in the ‘Amount’ column, which is recorded against ‘Mr. X Account’ in the journal entry.
Q11 :What do you understand by Imprest amount in petty cash book?
Answer :
Imprest amount is an amount of money given by the main cashier to the petty cashier in the beginning of a period. At the end of the period, the amount spent by the petty cashier gets reimbursed in such a manner, that he has the same amount of cash in hand in the beginning of next period. For example, if the main cashier gives an imprest amount of Rs 1,000 to the petty cashier on April 01, 2011 and at the end of the month the petty expenses amount to be Rs 850, which is spent by the petty cashier during the month. In this case, Rs 850 will be reimbursed, so, that on May 01, 2011, the petty cashier will have Rs 1,000 at his disposable to meet petty expenses for the next month.
Long answers : Solutions of Questions on Page Number : 142
Q1 :Explain the need for drawing up the special purpose books.
Answer :
The needs for drawing up the special purpose book are given below.
Quick and efficient recording: It is a time consuming process to record all the transactions in a journal. If there are separate books, then recording of transactions can be done more efficiently and timely. So, the need of special purpose book arises.
Repetitive nature: In every business, some transactions are similar and repetitive in nature. It will be more convenient to record all similar transactions at one place. For example, all credit sales transactions are recorded in the Sales Book.
Economical: It is more economical as recording through the special purpose books saves time and also enhances the efficiency of accountants and clerks.
Easy posting: If similar transactions are recorded at one place, posting becomes easier.
Complete information at one place: All information related to purchases, sales, cash receipts, payments, etc. are easily and hassle-free available.
Q2 :What is cash book? Explain the types of cash book.
Answer :
Cash Book is a book of original entry. It records all transactions related to receipts and payments of cash and deposits in and withdrawals from a bank in a chronological order. In the debit side of the cash book, the cash receipts are recorded in the cash column while all deposits into bank account are recorded in the bank column. On the contrary, in the credit side of the cash book, all cash payments are recorded in the cash column, while all payments through cheques are recorded in the bank column. Usually, it is prepared on monthly basis. Cash book also serves the purpose of principle book (i.e. cash account and bank account).
Single Column Cash Book: A single column Cash Book contains one column of amount on both sides, i.e., one in the debit side and other in the credit side. In the single column Cash Book, only cash transactions are recorded. In the debit side of the Cash Book, all cash receipts are recorded, while in the credit side all cash payments are recorded.
Double Column Cash Book: A double column Cash Book contains two columns of amount, namely cash column and bank column on both sides. In the cash column of Cash Book, all cash receipts and payments are recorded, according to the rule of Real Accounts. All deposits either in cash or through cheques into the bank account of the business are debited in the bank column and all withdrawals of cash and payments through cheques are credited in the bank column.
Cash Book
Dr Cr
| Date | Particulars | L.F. | Cash Rs |
Bank Rs |
Date | Particulars | L.F. | Cash Rs |
Bank Rs |
| Cash | (C) | – | Bank | (C) |
Triple Ccolumn Cash Book: In a triple column Cash Book, there are three columns of amount namely, cash, bank and discount. Discount allowed and discount received are recorded in the discount column. While in the debit side, discount allowed is recorded along with the receipts, either in cash or through cheque; whereas, in the credit side, discount received is recorded, along with the payments made either in cash or by issuing cheques.
Petty Cash Book: This book is used for recording payment of petty expenses, which are of smaller denominations like, postage, stationery, conveyance, refreshment, etc. is known as Petty Cash Book.
Q3 :What is contra entry? How can you deal this entry while preparing double column cash book?
Answer :
The transaction that is entered in either sides of the double column or three column cash book, affecting both cash and the bank balances concomitantly is called contra entry. These entries result in increase in cash balances and decrease in bank balances or vice versa. In other words, a debit of bank account leads to a credit of cash account and a credit of bank account leads to a debit of cash account. For example, Rs 200 cash deposited into bank. This transaction increases the bank amount on one hand; whereas, on the other hand reduces the cash balance. In this entry, in the debit side of the cash book, ‘Cash’ will be recorded with a balance of Rs 200 in the bank column and in the credit side of the cash book, ‘Bank’ will be recorded with a balance of Rs 200 in the cash column. This entry is a contra entry as it affects both cash and bank balance together. The contra entries are denoted by ‘C’.
Some transactions that lead to contra entry are given below.
Opening a bank account
Depositing cash into bank
Withdrawal from bank
These transactions are recorded in a double column Cash Book as done below.
Cash Book |
|||||||||||||||||||||
|
Dr. |
Cr. |
||||||||||||||||||||
|
Date |
Particulars |
L.F. |
Cash Rs |
Bank Rs |
Date |
Particulars |
L.F. |
Cash Rs |
Bank Rs |
||||||||||||
|
Cash |
(C) |
– |
Bank |
(C) |
– |
||||||||||||||||
Q4 :What is petty cash book? Write the advantages of petty cash book?
Answer :
Petty Cash Book is used for recording payments of small expenses, which are of smaller denominations such as postage, stationery, conveyance, refreshment, etc. Person who maintains Petty Cash Book is known as petty cashier and these small expenses are termed as petty expenses.
It is prepared by the below given two methods.
Ordinary system: Under this system, a certain sum of money is given to the petty cashier for the payment of petty expenses. After spending the whole amount, the accounts are submitted by the petty cashier to the main cashier.
Imprest system: Under this system, a fixed sum of money is given to the petty cashier in the beginning of a period to meet the petty expenses to be incurred in that period. At the end of the period, the amount spent by the petty cashier is reimbursed. So, the petty cashier has the same fixed amount of money in the beginning of the next period.
The Performa of Petty Cash Book is given below.
|
Petty Cash |
||||||||||
|
Dr. |
Cr. |
|||||||||
|
Amount |
Date |
Particulars |
Voucher No. |
Amount Paid Rs |
Analysis of |
|||||
|
Postage |
Stationery |
Conveyance |
Telephone and Telegram |
Miscellaneous |
Remarks |
|||||
Advantages of Petty Cash Book:
Simple method: Recording of transactions in a petty cash book is easy. In an analytical Petty Cash Book, there exists separate heads for different petty expenses, which makes recording much easier. Recording in a Petty Cash Book does not require formal knowledge of accounting principles and techniques.
Time saving: Recording in Petty Cash Book saves time and efforts of the chief cashier.
Efficient control: At the end of a period,Petty Cash Book is audited by the main cashier, so frauds and errors are less probable.
Convenient handling: Recording in Petty Cash Book is convenient, as entries are to be recorded under separate heads, which makes posting easier and quicker.
Q6 :Enter the following transactions in double column cash book of M/s Ambica Traders for November 2005:
| Rs | ||
| 01 | Commenced business with cash | 50,000 |
| 03 | Opened bank account with ICICI | 30,000 |
| 05 | Purchased goods for cash | 10,000 |
| 10 | Purchased office machine for cash | 5,000 |
| 15 | Sales goods on credit from Rohan and received cheque | 7,000 |
| 18 | Cash sales | 8,000 |
| 20 | Rohan’s cheque deposited into bank | |
| 22 | Paid cartage by cheque | 500 |
| 25 | Cash withdrawn for personal use | 2,000 |
| 30 | Paid rent by cheque | 1,000 |
Answer:
|
Books of M/s. Ambika Traders |
|||||||||
|
Cash Book |
|||||||||
| Dr. |
Cr. |
||||||||
|
Date |
Particulars |
L.F. |
Cash Rs |
Bank Rs |
Date |
Particulars |
L.F. |
Cash Rs |
Bank Rs |
|
2005 |
|
|
|
2005 |
|
|
|
||
|
Nov.01 |
Capital |
|
50,000 |
|
Nov.03 |
Bank |
C |
30,000 |
|
|
Nov.03 |
Cash |
C |
30,000 |
Nov.05 |
Purchases |
10,000 |
|
||
|
Nov.15 |
Rohan |
|
7,000 |
|
Nov.10 |
Office Machine |
5,000 |
|
|
|
Nov.18 |
Sales |
|
8,000 |
|
Nov.20 |
Bank |
C |
7,000 |
|
|
Nov.20 |
Cash |
C |
7,000 |
Nov.22 |
Cartage |
|
500 |
||
|
|
|
|
Nov.25 |
Drawings |
2,000 |
|
|||
|
|
|
|
Nov.30 |
Rent |
|
1,000 |
|||
|
|
|
|
Nov.30 |
Balance c/d |
11,000 |
35,500 |
|||
|
|
|
65,000 |
37,000 |
65,000 |
37,000 |
||||
|
|
|
|
|||||||
Q7 :Prepare double column cash book from the following information for September 2005:
| Rs | ||
| 01 | Cash in hand | 7,500 |
| Bank overdraft | 3,500 | |
| 03 | Paid wages | 200 |
| 05 | Cash sales | 7,000 |
| 10 | Cash deposited into bank | 4,000 |
| 15 | Goods purchased and paid by cheque | 2,000 |
| 20 | Paid rent | 500 |
| 25 | Drew from bank for personal use | 400 |
| 25 | Drew from bank for personal use | 400 |
| 30 | Salary paid | 1,000 |
Answer:
|
Cash Book |
|||||||||
| Dr. |
Cr. |
||||||||
|
Date |
Particulars |
L.F. |
Cash Rs |
Bank Rs |
Date |
Particulars |
L.F. |
Cash Rs |
Bank Rs |
|
2005 |
|
|
|
2005. |
|||||
|
Sep.01 |
Balance b/d |
|
7,500 |
|
Sep.01 |
Balance b/d |
|
3,500 |
|
|
Sep.05 |
Sales |
|
7,000 |
|
Sep.03 |
Wages |
200 |
|
|
|
Sep.10 |
Cash |
C |
4,000 |
Sep.10 |
Bank |
C |
4,000 |
|
|
|
|
|
|
Sep.15 |
Purchases |
|
2,000 |
|||
|
|
|
|
Sep.20 |
Rent |
500 |
|
|||
|
|
|
|
Sep.25 |
Drawings |
|
400 |
|||
|
|
|
|
Sep.30 |
Salaries |
1,000 |
|
|||
|
Sep.30 |
Balance c/d (Over |
|
1,900 |
Sep.30 |
Balance c/d |
8,800 |
|
||
|
|
|
14,500 |
5,900 |
|
14,500 |
5,900 |
|||
|
|
|
|
|
|
|
|
|||
Q8 :Enter the following transaction in a double column cash book of M/s Mohit Traders for January 2005:
| Rs | ||
| 01 | Cash in hand | 3,500 |
| Bank overdraft | 2,300 | |
| 03 | Goods purchased for cash | 1,200 |
| 05 | Paid wages | 200 |
| 10 | Cash sales | 8,000 |
| 15 | Deposited into bank | 6,000 |
| 22 | Sold goods for cheque which was deposited into bank same day | 2,000 |
| 25 | Paid rent by cheque | 1,200 |
| 28 | Drew from bank for personal use | 1,000 |
| 31 | Bought goods by cheque | 1,000 |
Answer:
|
Books of M/s. Mohit Traders |
|||||||||
|
Cash Book |
|||||||||
| Dr. |
Cr. |
||||||||
|
Date |
Particulars |
L.F. |
Cash Rs |
Bank Rs |
Date |
Particulars |
L.F. |
Cash Rs |
Bank Rs |
|
2005 |
|
|
2005 |
|
|
|
|||
|
Jan.01 |
Balance b/d |
|
3,500 |
|
Jan.01 |
Balance b/d |
|
2,300 |
|
|
Jan.10 |
Sales |
|
8,000 |
|
Jan.03 |
Purchases |
1,200 |
|
|
|
Jan.15 |
Cash |
C |
6,000 |
Jan.05 |
Wages |
200 |
|
||
|
Jan.22 |
Sales |
|
2,000 |
Jan.15 |
Bank |
C |
6,000 |
|
|
|
|
|
|
|
Jan.25 |
Rent |
|
1,200 |
||
|
|
|
|
Jan.28 |
Drawings |
|
1,000 |
|||
|
|
|
|
Jan.31 |
Purchases |
|
1,000 |
|||
|
|
|
|
Jan.31 |
Balance c/d |
4,100 |
2,500 |
|||
|
|
|
11,500 |
8,000 |
11,500 |
8,000 |
||||
|
|
|
|
|
|
|
|
|||
Q9 :Prepare double column cash book from the following transactions for the year December 2005:
| Rs | ||
| 01 | Cash in hand | 17,500 |
| Cash at bank | 5,000 | |
| 03 | Purchased goods for cash | 3,000 |
| 05 | Received cheque from Jasmeet | 10,000 |
| 08 | Sold goods for cash | 7,000 |
| 10 | Jasmeet’s cheque deposited into bank | |
| 12 | Purchased goods and paid by cheque | 20,000 |
| 15 | Paid establishment expenses through bank | 1,000 |
| 18 | Cash sales | 7,000 |
| 20 | Deposited into bank | 10,000 |
| 24 | Paid trade expenses | 500 |
| 24 | Paid trade expenses | 500 |
| 27 | Received commission by cheque | 6,000 |
| 29 | Paid Rent | 2,000 |
| 30 | Withdrew cash for personal use | 1,200 |
| 31 | Salary paid | 6,000 |
Answer:
|
Cash Book |
|||||||||
| Dr. |
Cr. |
||||||||
|
Date |
Particulars |
L.F. |
Cash Rs |
Bank Rs |
Date |
Particulars |
L.F. |
Cash Rs |
Bank Rs |
|
2005 |
2005 |
||||||||
|
Dec.01 |
Balance b/d |
17,500 |
5,000 |
Dec.03 |
Purchases |
3,000 |
|||
|
Dec.05 |
Jasmeet |
10,000 |
Dec.10 |
Bank |
C |
10,000 |
|||
|
Dec.08 |
Sales |
7,000 |
Dec.12 |
Purchases |
20,000 |
||||
|
Dec. 10 |
Cash |
C |
10,000 |
Dec.15 |
Establishment Expenses |
1,000 |
|||
|
Dec.18 |
Sales |
7,000 |
Dec.20 |
Bank |
C |
10,000 |
|||
|
Dec.20 |
Cash |
C |
10,000 |
Dec.24 |
Trade Expenses |
500 |
|||
|
Dec.27 |
Commission |
6,000 |
Dec.29 |
Rent |
2,000 |
||||
|
Dec.30 |
Drawings |
1,200 |
|||||||
|
Dec.31 |
Salaries |
6,000 |
|||||||
|
Dec.31 |
Balance c/d |
8,800 |
10,000 |
||||||
|
41,500 |
31,000 |
41,500 |
31,000 |
||||||
Q10 :M/s Ruchi trader started their cash book with the following balances on Dec. 01 2005 : cash in hand Rs 1,354 and balance in bank current account Rs 7,560. He had the following transaction in the month of December, 2005:
| Rs | ||
| 03 | Cash sales | 2,300 |
| 05 | Purchased goods, paid by cheque | 6,000 |
| 08 | Cash sales | 10,000 |
| 12 | Paid trade expenses | 700 |
| 15 | Sales goods, received cheque (deposited same day) | 20,000 |
| 18 | Purchased motor car paid by cheque | 15,000 |
| 20 | Cheque received from Manisha (deposited same day) | 10,000 |
| 22 | Cash Sales | 7,000 |
| 25 | Manisha’s cheque returned dishonoured | |
| 28 | Paid Rent | 2,000 |
| 29 | Paid telephone expenses by cheque | 500 |
| Prepare bank column cash book | ||
Answer :
|
Books of M/s. Ruchi Trader |
|||||||||
|
Cash Book |
|||||||||
| Dr. |
Cr. |
||||||||
|
Date |
Particulars |
L.F. |
Cash Rs |
Bank Rs |
Date |
Particulars |
L.F. |
Cash Rs |
Bank Rs |
|
2005 |
2005 |
||||||||
|
Dec.01 |
Balance b/d |
1,354 |
7,560 |
Dec.05 |
Purchases |
6,000 |
|||
|
Dec.03 |
Sales |
2,300 |
Dec.12 |
Trade Expenses |
700 |
||||
|
Dec.08 |
Sales |
10,000 |
Dec.18 |
Motor Car |
15,000 |
||||
|
Dec.15 |
Sales |
20,000 |
Dec.25 |
Manisha (Dishonour) |
10,000 |
||||
|
Dec.20 |
Manisha |
10,000 |
Dec.28 |
Rent |
2,000 |
||||
|
Dec.22 |
Sales |
7,000 |
Dec.29 |
Telephone Expenses |
500 |
||||
|
Dec.31 |
Drawings |
2,000 |
|||||||
|
Dec.31 |
Balance c/d |
15,954 |
6,060 |
||||||
|
20,654 |
37,560 |
20,654 |
37,560 |
||||||
Q11 :Prepare petty cash book from the following transactions. The imprest amount is Rs 2,000.
| January | Rs | |
| 01 | Paid cartage | 50 |
| 02 | STD charges | 40 |
| 02 | Bus fare | 20 |
| 03 | Postage | 30 |
| 04 | Refreshment for employees | 80 |
| 06 | Courier charges | 30 |
| 08 | Refreshment of customer | 50 |
| 10 | Cartage | 35 |
| 15 | Taxi fare to manager | 70 |
| 15 | Taxi fare to manager | 70 |
| 18 | Stationery | 65 |
| 20 | Bus fare | 10 |
| 22 | Fax charges | 30 |
| 25 | Telegrams charges | 35 |
| 27 | Postage stamps | 200 |
| 29 | Repair on furniture | 105 |
| 30 | Laundry expenses | 115 |
| 31 | Miscellaneous expenses | 100 |
Answer:
|
Petty Cash Book |
||||||||||
|
Amount Received Rs |
Date |
Particulars |
Voucher No. |
Amount Paid Rs |
Analysis of Payments |
|||||
|
Telephone Telegram |
Postage |
Conveyance |
Refreshment |
Cartage |
Miscellaneous |
|||||
|
2,000 |
Jan.01 |
Cash |
||||||||
|
Jan.01 |
Cartage |
50 |
50 |
|||||||
|
Jan.02 |
STD |
40 |
40 |
|||||||
|
Jan.02 |
Bus |
20 |
20 |
|||||||
|
Jan.03 |
Postage |
30 |
30 |
|||||||
|
Jan.04 |
Refreshment |
80 |
80 |
|||||||
|
Jan.06 |
Courier |
30 |
30 |
|||||||
|
Jan.08 |
Refreshment |
50 |
50 |
|||||||
|
Jan.10 |
Cartage |
35 |
35 |
|||||||
|
Jan.15 |
Taxi |
70 |
70 |
|||||||
|
Jan.18 |
Stationery |
65 |
65 |
|||||||
|
Jan.20 |
Bus |
10 |
10 |
|||||||
|
Jan.22 |
Fax |
30 |
30 |
|||||||
|
Jan.25 |
Telegram |
35 |
35 |
|||||||
|
Jan.27 |
Postage |
200 |
200 |
|||||||
|
Jan.29 |
Repair |
105 |
105 |
|||||||
|
Jan.30 |
Laundry |
115 |
115 |
|||||||
|
Jan.31 |
Miscellaneous |
100 |
100 |
|||||||
|
1,065 |
105 |
260 |
100 |
130 |
85 |
385 |
||||
|
Jan.31 |
Balance |
935 |
||||||||
|
2,000 |
2,000 |
|||||||||
|
935 |
Feb.01 |
Balance |
||||||||
|
1,065 |
Feb.01 |
Cash |
||||||||
Q12 :Record the following transactions during the week ending Dec. 30, 2005 with a weekly imprest Rs 500
| RS | ||
| 24 | Stationery | 100 |
| 25 | Bus fare | 12 |
| 25 | Cartage | 40 |
| 26 | Taxi fare | 80 |
| 27 | Wages to casual labour | 90 |
| 29 | Postage | 80 |
Answer:
|
Petty Cash Book |
|||||||||
|
Amount Received Rs |
Date |
Particulars |
Voucher No. |
Amount Paid Rs |
Analysis of Payments |
||||
|
Stationery |
Conveyance |
Cartage |
Postage |
Miscellaneous |
|||||
|
2010 |
|||||||||
|
500 |
Dec.24 |
Cash |
|
|
|
|
|
|
|
|
|
Dec.24 |
Stationery |
100 |
100 |
|
|
|
|
|
|
|
Dec.25 |
Bus Fare |
12 |
|
12 |
|
|
|
|
|
|
Dec.25 |
Cartage |
40 |
|
|
40 |
|
|
|
|
|
Dec.26 |
Taxi Fare |
80 |
|
80 |
|
|
|
|
|
|
Dec.27 |
Wages to Casual labour |
90 |
|
|
|
|
90 |
|
|
|
Dec.29 |
Postage |
80 |
|
|
|
80 |
|
|
|
|
402 |
100 |
92 |
40 |
80 |
90 |
|||
|
|
Dec.30 |
Balance c/d |
98 |
|
|
|
|
|
|
|
|
2010 |
|
500 |
|
|
|
|
|
|
|
98 |
Dec.31 |
Balance b/d |
|
|
|
|
|
|
|
|
402 |
Dec.31 |
Cash |
|
|
|
|
|
|
|
Q13 :Enter the following transactions in the Purchase Journal (Book) of M/s Gupta Traders of July 2005
Bought from Rahul Traders as per invoice no. 20041
40 Registers @ Rs 60 each
80 Gel Pens @ Rs 15 each
50 note books @ Rs 20 each
Trade discount 10%.
15Bought from Global Stationers as per invoice no. 1132
40 Ink Pads @ Rs 8 each
50 Files @ Rs 10 each
20 Color Books @ Rs 20 each
Trade Discount 5%
23Purchased from Lamba Furniture as per invoice no. 3201
2 Chairs @ 600 per chair
1 Table @ 1,000 per table
25 Bought from Mumbai Traders as per invoice no. 1111
10 Paper Rim @ Rs 100 per rim
400 drawing Sheets @ Rs 3 each
20 Packet water colour @ Rs 40 per packet
Answer:
|
Books of M/s. Gupta |
|||||
|
Purchases Book |
|||||
|
Date |
Invoice No. |
Name of (Accounts to be |
L.F. |
Details Rs |
Amount Rs |
|
2005 |
|
||||
|
July 01 |
20041 |
Rahul Traders |
|
||
|
|
|
40 Registers @ Rs 60 |
2,400 |
|
|
|
|
|
80 Gel Pens @ Rs 15 |
1,200 |
|
|
|
|
|
50 Note Books @ Rs 20 |
1,000 |
|
|
|
|
|
4,600 |
|
||
|
|
|
Less: |
(460) |
4,140 |
|
|
|
|
|
|
||
|
July 15 |
1132 |
Global Stationeries |
|
|
|
|
|
40 Ink Pads @ Rs 8 |
320 |
|
||
|
|
50 Files @ Rs 10 each |
500 |
|
||
|
|
20 Colour Books @ Rs 20 |
400 |
|
||
|
|
1,220 |
|
|||
|
|
Less: |
(61) |
1,159 |
||
|
|
|
||||
|
July 25 |
1111 |
Mumbai Traders |
|
||
|
10 Paper Rim @ Rs 100 |
1,000 |
|
|||
|
400 Drawing Sheet @ Rs 3 |
1,200 |
|
|||
|
20 Packet Water Colour @ Rs |
800 |
3,000 |
|||
|
|
|
|
|||
|
Purchases Account |
|
8299 |
|||
Note: Furniture purchased from Lamba Traders will not be recorded in the Purchases Book as furniture is not to be considered as goods for the M/s Gupta Trader. This is because as per the transactions M/s. Gupta traders deals in stationery and not in furniture.
Note: Slight change in the Performa of subsidiary book is done. Here ‘Details’ column has been added in Purchase Book.
Q14 :Enter the following transactions in sales (journal) book of M/s. Bansal electronics:
September
01Sold to Amit Traders as per bill no.4321
20 Pocket Radio @ 70 per Radio
2, T.V. set, B&W.(6.) @ 800 Per T.V
1.0 Sold to Arun Electronics as per bill no.4351
5 T.V. sets (20.) B&W @ Rs 3,000 per T.V.
2 T.V. sets (21.) Colour @ Rs 4,800 per T.V.
22 Sold to Handa Electronics as per bill no.4,399
10 Tape recorders @ Rs 600 each
5 Walkman @ Rs 300 each
28Sold to Harish Trader as per bill no.4430
10 Mixer Juicer Grinder @ Rs 800 each.
Answer:
|
Books of M/s. Bansal Electronics |
|||||
|
Sales Book |
|||||
|
Date |
Bill No. |
Name of the (Accounts to be |
L.F. |
Details Rs |
Amount Rs |
|
|
|||||
|
Sept.01 |
4321 |
Amit Traders |
|
||
|
|
20 Pocket Radio @ Rs 70 Per |
1,400 |
|
||
|
|
2 T.V. Set, B&W (6″) @ Rs |
1,600 |
3,000 |
||
|
|
|
||||
|
Sept.10 |
4351 |
Arun Electronics |
|
||
|
5 T.V. sets (20″) B&W @ |
15,000 |
||||
|
2 T.V. sets (21″) |
9,600 |
24,600 |
|||
|
Sept.22 |
4399 |
Handa Electronics |
|||
|
|
10 Tape Recorders @ Rs 600 |
6,000 |
|||
|
5 Walkman @ Rs 300 |
1,500 |
7,500 |
|||
|
Sept.28 |
4430 |
Harish Traders |
|||
|
10 Mixer Juicer Grinder @ Rs |
8,000 |
8,000 |
|||
|
|
|
||||
|
Sales Account |
|
43,100 |
|||
Q15 :Prepare a purchases return (journal) book from the following transactions for January 2006.
| Rs | ||
| 05 | Returned goods to M/s Kartik Traders | 1,200 |
| 10 | Goods returned to Sahil Pvt. Ltd. | 2,500 |
| 17 | Goods returned to M/s Kohinoor Traders for list price Rs 2,000 less 10% trade discount. | |
| 28 | Return outwards to M/s Handa Traders | 550 |
Answer:
|
Purchases Return |
||||||||
|
Date |
Debit Note No. |
Name of (Account to be |
|
L.F. |
Amount Rs |
|||
|
2006 |
|
|
||||||
|
Jan. 05 |
|
M/s Kartik Traders |
|
1,200 |
||||
|
Jan. 10 |
|
Sahil Pvt. Ltd. |
|
2,500 |
||||
|
Jan. 17 |
|
M/s Kohinoor Trader |
|
|||||
|
|
|
List Price |
2,000 |
|||||
|
|
|
Less: 10% Trade discount |
(200) |
1,800 |
||||
|
Jan. 28 |
M/s Handa Traders |
|
550 |
|||||
|
|
|
|||||||
|
Purchases Return Account |
6,050 |
|||||||
Q16 :Prepare Return Inward Journal (Book) from the following transactions of M/s Bansal Electronics for November 2005:
| Rs | ||
| 04 | M/s Gupta Traders returned the goods | 1,500 |
| 10 | Goods returned from M/s Harish Traders | 800 |
| 18 | M/s Rahul Traders returned the goods not as per specifications. | 1,200 |
| 28 | Goods returned from Sushil Traders | 1,000 |
Answer:
|
Sales Return |
||||
|
Date |
Credit Note No. |
Name of (Account to be |
L.F. |
Amount Rs |
|
2005 |
||||
|
Nov.04 |
M/s Gupta Traders |
1,500 |
||
|
Nov.10 |
M/s Harish Traders |
800 |
||
|
Nov.18 |
M/s Rahul Traders |
1,200 |
||
|
Nov.28 |
Sushil Traders |
1,000 |
||
|
Sales Return Account |
4,500 |
|||
Q17 :Prepare proper subsidiary books and post them to the ledger from the following transactions for the month of February 2006:
| Rs | ||
| 01 | Goods sold to Sachin | 5,000 |
| 04 | Purchase from Kushal Traders | 2,480 |
| 06 | Sold goods to Manish Traders | 2,100 |
| 07 | Sachin returned goods | 600 |
| 08 | Returns to Kushal Traders | 280 |
| 10 | Sold to Mukesh | 3,300 |
| 14 | Purchased from Kunal Traders | 5,200 |
| 15 | Furniture purchased from Tarun | 3,200 |
| 17 | Bought of Naresh | 4,060 |
| 20 | Return to Kunal Traders | 200 |
| 22 | Return inwards from Mukesh | 250 |
| 24 | Purchased goods from Kirit & Co. for list price of less 10% trade discount |
5,700 |
| 25 | Sold to Shri Chand goods less 5% trade discount |
6,600 |
| 26 | Sold to Ramesh Brothers | 4,000 |
| 28 | Return outwards to Kirit and Co. less 10% trade discount |
1,000 |
| 28 | Ramesh Brothers returned goods Rs 500. |
Answer :
|
Journal |
|||||
|
Purchases Book |
|||||
|
Date |
Invoice No. |
Name of (Accounts to be |
L.F. |
Amount Rs |
|
|
2006 |
|
||||
|
Feb.04 |
Kushal Traders |
2,480 |
|||
|
Feb.14 |
Kunal Traders |
5,200 |
|||
|
Feb.17 |
Naresh |
4,060 |
|||
|
Feb.24 |
Kirit and Co. |
5,700 |
|
||
|
Less: |
(570) |
5,130 |
|||
|
|
|
||||
|
Purchases Account |
16,870 |
||||
|
Sales Book |
|||||
|
Date |
Invoice No. |
Name of Customer (Accounts to be debited) |
L.F. |
Amount Rs |
|
|
2011 |
|||||
|
Feb. 01 |
Sachin |
5,000 |
|||
|
Feb.06 |
Manish Traders |
2,100 |
|||
|
Feb.10 |
Mukesh |
3,300 |
|||
|
Feb.25 |
Shri Chand |
6,600 |
|||
|
Less: 5% Trade Discount |
(330) |
6,270 |
|||
|
Feb.26 |
Ramesh Brothers |
4,000 |
|||
|
Sales Account |
20,670 |
||||
|
Sales Return Book |
||||
|
Date |
Credit Note |
Name of Customer (Accounts to be credited) |
L.F. |
Amount Rs |
|
2011 |
||||
|
Feb.07 |
Sachin |
600 |
||
|
Feb.22 |
Mukesh |
250 |
||
|
Feb.28 |
Ramesh Brothers |
500 |
||
|
Sales Return Account |
1,350 |
|||
|
Purchases Return Book |
|||||
|
Date |
Debit Note |
Name of Supplier (Accounts to be debited) |
L.F. |
Amount Rs |
|
|
2011 |
|||||
|
Feb.08 |
Kushal Traders |
280 |
|||
|
Feb.20 |
Kunal Traders |
200 |
|||
|
Feb.28 |
Kirit and Co. |
1,000 |
|||
|
Less: 10% Trade Discount |
(100) |
900 |
|||
|
Sales Return A/c |
1,380 |
||||
|
Journal Proper |
||||||||
|
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||||
| 2011 | ||||||||
|
Feb.15 |
Furniture A/c |
Dr. |
3,200 |
|||||
|
To Tarun |
3,200 |
|||||||
|
(Furniture purchased from Tarun) |
||||||||
|
Ledger |
|||||||
|
Purchases Account |
|||||||
| Dr. |
Cr. |
||||||
|
Date |
Particulars |
J.F. |
Amount Rs |
Date |
Particulars |
J.F. |
Amount Rs |
|
2011 |
2011 |
||||||
|
Feb.28 |
Sundries as per Purchases Book |
16,870 |
|||||
|
Feb.28 |
Balance c/d |
16,870 |
|||||
|
16,870 |
16,870 |
||||||
|
Sales Account |
|||||||
| Dr. |
Cr. |
||||||
|
Date |
Particulars |
J.F. |
Amount Rs |
Date |
Particulars |
J.F. |
Amount Rs |
|
2011 |
2011 |
||||||
|
Feb.28 |
Sundries as per Sales Book |
20,670 |
|||||
|
Feb.28 |
Balance c/d |
20,670 |
|||||
|
20,670 |
20,670 |
||||||
|
Sales Return Account |
|||||||
| Dr. |
Cr. |
||||||
|
Date |
Particulars |
J.F. |
Amount Rs |
Date |
Particulars |
J.F. |
Amount Rs |
|
2011 |
2011 |
||||||
|
Feb.28 |
Sundries as per Sales Return Book |
1,350 |
|||||
|
Feb.28 |
Balance c/d |
1,350 |
|||||
|
1,350 |
1,350 |
||||||
|
Purchases Return Account |
|||||||
| Dr. |
Cr. |
||||||
|
Date |
Particulars |
J.F. |
Amount Rs |
Date |
Particulars |
J.F. |
Amount Rs |
|
2011 |
2011 |
||||||
|
Feb.28 |
Sundries as per Purchases Return Book |
1,380 |
|||||
|
Feb.28 |
Balance c/d |
1,380 |
|||||
|
1,380 |
1,380 |
||||||
|
Sachin’s Account |
|||||||
| Dr. |
Cr. |
||||||
|
Date |
Particulars |
J.F. |
Amount Rs |
Date |
Particulars |
J.F. |
Amount Rs |
|
2011 |
2011 |
||||||
|
Feb.01 |
Sales |
5,000 |
Feb.07 |
Sales Return |
600 |
||
|
Feb.28 |
Balance c/d |
4,400 |
|||||
|
5,000 |
5,000 |
||||||
|
Kushal Traders’ Account |
|||||||
| Dr. |
Cr. |
||||||
|
Date |
Particulars |
J.F. |
Amount Rs |
Date |
Particulars |
J.F. |
Amount Rs |
|
2011 |
2011 |
||||||
|
Feb.08 |
Purchases Return |
280 |
Feb.04 |
Purchases |
2,480 |
||
|
Feb.28 |
Balance c/d |
2,200 |
|||||
|
2,480 |
2,480 |
||||||
|
Manish Traders’ Account |
|||||||
| Dr. |
Cr. |
||||||
|
Date |
Particulars |
J.F. |
Amount Rs |
Date |
Particulars |
J.F. |
Amount Rs |
|
2011 |
2011 |
||||||
|
Feb.06 |
Sales |
2,100 |
|||||
|
Feb.28 |
Balance c/d |
2,100 |
|||||
|
2,100 |
2,100 |
||||||
|
Mukesh’s Account |
|||||||
| Dr. |
Cr. |
||||||
|
Date |
Particulars |
J.F. |
Amount Rs |
Date |
Particulars |
J.F. |
Amount Rs |
|
2011 |
2011 |
||||||
|
Feb.10 |
Sales |
3,300 |
Feb.22 |
Sales Return |
250 |
||
|
Feb.28 |
Balance c/d |
3,050 |
|||||
|
3,300 |
3,300 |
||||||
|
Kunal Traders’ Account |
|||||||
| Dr. |
Cr. |
||||||
|
Date |
Particulars |
J.F. |
Amount Rs |
Date |
Particulars |
J.F. |
Amount Rs |
|
2011 |
2011 |
||||||
|
Feb.20 |
Purchase Return |
200 |
Feb.14 |
Purchases |
5,200 |
||
|
Feb.28 |
Balance c/d |
5,000 |
|||||
|
5,200 |
5,200 |
||||||
|
Furniture Account |
|||||||
| Dr. |
Cr. |
||||||
|
Date |
Particulars |
J.F. |
Amount Rs |
Date |
Particulars |
J.F. |
Amount Rs |
|
2011 |
2011 |
||||||
|
Feb.15 |
Tarun |
3,200 |
|||||
|
Feb.28 |
Balance c/d |
3,200 |
|||||
|
3,200 |
3,200 |
||||||
|
Tarun’s Account |
|||||||
| Dr. |
Cr. |
||||||
|
Date |
Particulars |
J.F. |
Amount Rs |
Date |
Particulars |
J.F. |
Amount Rs |
|
2011 |
2011 |
||||||
|
Feb.15 |
Furniture |
3,200 |
|||||
|
Feb.28 |
Balance c/d |
3,200 |
|||||
|
3,200 |
3,200 |
||||||
|
Naresh’s Account |
|||||||
| Dr. |
Cr. |
||||||
|
Date |
Particulars |
J.F. |
Amount Rs |
Date |
Particulars |
J.F. |
Amount Rs |
|
2011 |
2011 |
||||||
|
Feb.17 |
Purchases |
4,060 |
|||||
|
Feb.28 |
Balance c/d |
4,060 |
|||||
|
4,060 |
4,060 |
||||||
|
Kirit & Co. Account |
|||||||
| Dr. |
Cr. |
||||||
|
Date |
Particulars |
J.F. |
Amount Rs |
Date |
Particulars |
J.F. |
Amount Rs |
|
2011 |
2011 |
||||||
|
Feb.28 |
Purchases Return |
900 |
Feb.24 |
Purchases |
5,130 |
||
|
Feb.28 |
Balance c/d |
4,230 |
|||||
|
5,130 |
5,130 |
||||||
|
Shri Chand & Co. Account |
|||||||
| Dr. |
Cr. |
||||||
|
Date |
Particulars |
J.F. |
Amount Rs |
Date |
Particulars |
J.F. |
Amount Rs |
|
2011 |
2011 |
||||||
|
Feb.25 |
Sales |
6,270 |
|||||
|
Feb.28 |
Balance c/d |
6,270 |
|||||
|
6,270 |
6,270 |
||||||
|
Ramesh’s Account |
|||||||
| Dr. |
Cr. |
||||||
|
Date |
Particulars |
J.F. |
Amount Rs |
Date |
Particulars |
J.F. |
Amount Rs |
|
2011 |
2011 |
||||||
|
Feb.26 |
Sales |
4,000 |
Feb.28 |
Sales Return |
500 |
||
|
Feb.28 |
Balance c/d |
3,500 |
|||||
|
4,000 |
4,000 |
||||||
Q18:The following balances of ledger of M/s Marble Traders on April 01, 2006
| Rs | |
| Cash in hand | 6,000 |
| Cash at bank | 12,000 |
| Bills receivable | 7,000 |
| Ramesh (Cr.) | 3,000 |
| Stock (Goods) | 5,400 |
| Bills payable | 2,000 |
| Rahul (Dr.) | 9,700 |
| Himanshu (Dr.) | 10,000 |
Transactions during the month were:
| April | Rs | |
| 01 | Goods sold to Manish | 3,000 |
| 02 | Purchased goods from Ramesh | 8,000 |
| 03 | Received cash from Rahul in full settlement | 9,200 |
| 05 | Cash received from Himanshu on account | 4,000 |
| 06 | paid to Remesh by cheque | 6,000 |
| 08 | Rent paid by cheque | 1,200 |
| 10 | Cash received from manish | 3,000 |
| 12 | Cash sales | 6,000 |
| 14 | Goods returned to Ramesh | 1,000 |
| 15 | Cash paid to Ramesh in full settlement | 3,700 |
| 16 | Discount received | 300 |
| 18 | Goods sold to Kushal | 10,000 |
| 20 | Paid trade expenses | 200 |
| 21 | Drew for personal use | 1,000 |
| 22 | Goods return from Kushal | 1,200 |
| 24 | Cash received from Kushal | 100 |
| 26 | Paid for stationery | 60 |
| 27 | Postage charges | 60 |
| 28 | Salary Paid | 2,500 |
| 29 | Goods purchased from Sheetal Traders | 7,000 |
| 30 | Sold goods to Kirit | 6,000 |
| Goods purchased from Handa Traders | 5,000 |
Answer:
|
Books of M/s. Marble Traders |
|||||||
|
Journal |
|||||||
|
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|||
|
2011 |
Cash A/c |
Dr. |
6,000 |
||||
|
Apr.01 |
Bank A/c |
Dr. |
12,000 |
||||
|
Bills Receivable A/c |
Dr. |
7,000 |
|||||
|
Stock A/c |
Dr. |
5,400 |
|||||
|
Rahul’s A/c |
Dr. |
9,700 |
|||||
|
Himanshu A/c |
Dr. |
10,000 |
|||||
|
To Ramesh’s A/c |
3,000 |
||||||
|
To Bills Payable A/c |
2,000 |
||||||
|
To Capital A/c (Balancing figure ) |
45,100 |
||||||
|
(Balance brought from last year) |
|||||||
|
Apr.01 |
Manish |
Dr. |
3,000 |
||||
|
To Sales A/c |
3,000 |
||||||
|
(Goods sold to Manish) |
|||||||
|
Apr.02 |
Purchases A/c |
Dr. |
8,000 |
||||
|
To Ramesh |
8,000 |
||||||
|
(Goods purchased from Ramesh) |
|||||||
|
Apr.03 |
Cash A/c |
Dr. |
9,200 |
||||
|
Discount Allowed A/c |
Dr. |
500 |
|||||
|
To Rahul |
9,700 |
||||||
|
(Cash received from Rahul and discount allowed) |
|||||||
|
Apr. 05 |
Cash A/c |
Dr. |
4,000 |
||||
|
To Himanshu |
4,000 |
||||||
|
(Cash received from Himanshu) |
|||||||
|
Apr.06 |
Ramesh |
Dr. |
6,000 |
||||
|
To Bank A/c |
6,000 |
||||||
|
(Cheque issued to Ramesh) |
|||||||
|
Apr. 08 |
Rent A/c |
Dr. |
1,200 |
||||
|
To Bank A/c |
1,200 |
||||||
|
(Rent paid by cheque) |
|||||||
|
Apr.10 |
Cash A/c |
Dr. |
3,000 |
||||
|
To Manish |
3,000 |
||||||
|
(Cash received from Manish) |
|||||||
|
Apr.12 |
Cash A/c |
Dr. |
6,000 |
||||
|
To Sales A/c |
6,000 |
||||||
|
(Goods sold for cash) |
|||||||
|
Apr.14 |
Ramesh |
Dr. |
1,000 |
||||
|
To Purchases Return A/c |
1,000 |
||||||
|
(Goods returned to Ramesh) |
|||||||
|
Apr.15 |
Ramesh |
Dr. |
4,000 |
||||
|
To Cash A/c |
3,700 |
||||||
|
To Discount Received A/c |
300 |
||||||
|
(Cash paid to Ramesh and discount received) |
|||||||
|
Apr.18 |
Kushal |
Dr. |
10,000 |
||||
|
To Sales A/c |
10,000 |
||||||
|
(Goods sold to Kushal) |
|||||||