First Week Core Business School Page 1

Practice Question Home work (2,3,4)

2. Enter the following transactions in subsidiary books and post them into ledger accounts: the following
balances existed in Mohan Bros. book on 1 January, 20x1:
Assets : Cash in hand Rs 5,000; Bank Balance Rs 16,000; Debtors Neeraj Rs 1,000; Soni Rs 1,600; Saurabh Rs
1,200; Stock Rs 2,000 and Furniture Rs 1,800.
Liabilities : B/P Rs 1,600; Creditors Sita Rs 4,000; Devendra Nath Rs 3,000 and during January, the transactions
took place below:
20x1 Jan. 1 Goods sold to Ram for cash Rs 3,600.
2 Purchased from site:
500 meters cotton @ Rs 10 per metre
400 metres silk @ Rs 20 per metre
4 B/P paid Rs 1,600
5 Sold to Neeraj.
50 metres silk @ Rs 20 per metre.
280 metres cotton @ Rs 10 per metre.
6 Acceptance received from Neeraj at one month for Rs 3,000
8 Purchased furniture for use from Rameswari for Rs 2,200 on credit
9 Received cash from Neeraj Rs 780 and discount allowed Rs 20.
10 Gave cheque to Devendra Nath for Rs 2,920 and discount allowed by him Rs 80.
11 Accepted a bill at 2 months for Rs 4,000 drawn by site.
12 Returned to site 10 metre silk and 10 metres cotton
13 Sold to Soni
40 metres silk @ Rs 20 per metre.
80 metres cotton @ Rs 10 per metre
Less: Trade discount @ 5%.
14 Returned by Neeraj 40 metres cotton.
15 Received full payment from Neeraj by cheque, sent it to bank, discount allowed
2%
16 Paid to site Rs 1,980 after receiving discount of 1%
17 Purchased from Devendra Nath
600 metres cotton @ Rs 5 per metre
600 metres silk @ Rs 14 per metre
18 Received from soni Rs 790 after allowing a discount of 1.25%
19 Goods bought from Ritik for cash Rs. 1,800
21 Deposited into Canara Bank Rs 2000
23 Received and banked a cheque for Rs 600 from Saurabh being the first and final
dividend @ 50 p in the rupee.
27 Paid Rent by cheque Rs 3,800
29 Withdrawn from bank Rs 3,000 for office use.
30 Goods taken for personal use Rs 200
31 Salaries paid Rs 2,700
Interest on capital Rs 200
Depreciation on furniture Rs 100.

First Week Core Business School Page 2

3. Record the following transactions of Ganapati and Parvati in the proper books, post them into the ledger and
take out a Trail balance. Ganapati and Parvati have equal capitals.
20x1 Rs
Jan.1 Assets: Cash in hand Rs 6,000; Cash at bank Rs 2,35,000; Stock of goods Rs 1,50,000, Bingo
Little Rs 59,000; Lord Gargoyle Rs 1,00,000; Furniture and Equipment Rs 1,50,000
Liabilities: Bud and Blossom Rs 2,00,000

2 Withdrawn from bank. 50,000
3 Paid salaries and wages. 39,000
4 Goods sold to Mohan for cash
Sold to Laurel & Hardy on credit
20 pairs gents shoes @ Rs 550
30 pairs ladies shoes @ Rs 600 each
16,000
5 Purchased a typewriter from Remington Rand Inc. 42,000
6 Bingo Little pays by cheque in full settlement. 57,500
7 Cash purchases
Purchased from Bud and Blossom
24 pairs chappals @ Rs 250 each
20 pairs sandals @ Rs 500 each
10,000
9 Paid Bud and Blossom on account by cheque 1,00,000
10 Raised a loan from Aunt Agatha paid into bank
Purchased machinery and paid by cheque
5,00,000
4,00,000
11 Bingo littles cheque returned dishonoured by bank
12 Purchased from Negendra & Puri
15 pairs gents shoes @ Rs 750 each
20 pairs childrens shoes @ Rs 250 each

14 Sold to Lord Gargoyle
10 pairs ladies shoes @ Rs 900 each
15 pairs sandals @ Rs 600 each

16 Received cheque from Lord Gargoyle and deposited in bank
Allowed him discount
99,000
1,000
17 Lord Gargoyle returns goods:
2 pairs ladies shoes @ Rs 900 each
5 pairs sandals @ Rs 600 each

18 Nagendra & Puri gives us special allowance for certain defects in goods purchased from
them.
2,500
19 Cash sales made to M/s Cart & Carter 7,500
20 Cash purchases from M/s Horse & Cart 10,000
21 Old newspapers sold for cash 1,000
23 One old almirah sold to M/s Ravi Bros. on credit 5,000
24 Bingo Little is declared bankrupt, a first and final dividend of 50 paise in the rupee is
received.

25 Paid rent by cheque 15,000
27 Cash withdrawn for private use by Ganpati 10000
28 One pair gents shoes @ Rs 750 and one pair ladies shoe @ Rs 900 taken for domestic use by
Ganapati

30 Paid for stationery and postage 3000
31 One months interest due to Aunt Agatha at the rate of 6% per annum. 2,500

First Week Core Business School Page 3



4. Enter the following transaction of Tulsian & Sons, a Saree dealer in the proper books and prepare Ledger and
Trail Balance:
Date Transaction
1.1.20x1 Cash-in-hand Rs 50,000, cash at bank Rs 55,000, stock Rs 20,000, Land & building Rs 1,00,000, Plant and
machinery Rs 50,000, Furniture & fixtures Rs 25,000, typewriter Rs 1,000, Owing from X Ltd Rs 12,500,
Prepaid insurance Rs 500, Interest received in advance Rs 250, Loan from Y Ltd. Rs 10,000, Owing to Z
Ltd. Rs 3,750.
3.1.20x1 Purchased on credit from Goyal Mills, Surat: 55 polyster sarees @ Rs 100
Less: Trade discount @ 20%, Packing and delivery charges Rs 55.
3.1.20x1 Purchased for cash from Garg Mills, Kota 50 Kota sarees @ Rs 40
3.1.20x1 Purchased on credit from Bansal and Co. 2 Typewriters @ Rs 3,500 each
8.1.20x1 Sold on credit Goyal & Co., Rohtak -20 polyster sarees @ Rs 125
Less: Trade discount @ 10%, packing and delivery charges Rs 20
8.1.20x1 Sold for cash to Garg & Co., Bhiwani 20 Kota sarees @ Rs 50
8.1.20x1 Sold on credit one old typewriter to Murli @ Rs 1,000.
13.1.20x1 Goyal & Co., returned 2 polyster sarees.
13.1.20x1 Accepted return of goods (which were sold for cash ) from Garg & Co., Bhiwani, 2 Kota Sarees.
13.1.20x1 Murli returned 1 old typewriter.
18.1.20x1 Returned to Goyal Mills, Surat 5 Polyster Sarees.
18.1.20x1 Garg Mills accepted the return of 5 Kota sarees.
23.1.20x1 Mr. Tulsian (Proprietor of Tulsian & Sons) took away 2 kota Sarees (costing Rs 40 each, selling price Rs 50
each) from the shop and presented to one of the relative.
26.1.20x1 Goyal & Co. issued a cheque of Rs 2,000 in full and final settlement.
27.1.20x1 The cheque of Goyal & Co. endorsed in favour of Goyal Mills, Surat on account.
29.1.20x1 The Goyal Mills informed that the cheque of Goyal & Co. dishonoured
30.1.20x1 Goyal & Co. become insolvent and paid 80 paise in a rupee in full and final settlement.
31.1.20x1 Withdrew Rs 20,000 from bank
31.1.20x1 Withdrew Rs 1,000 from bank for personal use.
31.1.20x1 Paid Goyal Mills, Surat 80% on account
31.1.20x1 Paid Bansal & Co. in full
31.1.20x1 Paid packing and delivery charges Rs 20
31.1.20x1 Rent due to landlord, Ram Rs 1,000
31.1.20x1 Salaries due to employee, Shayam Rs 1,000
31.1.20x1 X Ltd. paid 80% on account
31.1.20x1 Paid Y ltd 80% on account
31.1.20x1 Paid Z Ltd 80% on account
31.1.20x1 Withdrew Rs 5,000 for personal use.