Journal ,Ledger and Trial Balance
Q-1. Record the following transactions into the Journal, post them into Ledgers & Trial Balance.
2002,
March. 1. “S” started business with Rs. 60,000 in cash and building Rs.100,000.
March. 2. Bought goods for Rs. 15,000 less 10% trade discount, payment made by cheque.
March 3. Bought furniture from “A” for Rs. 15,000 and paid in cash Rs, 5,000 only.
March 6. Paid rent in cash Rs. 1,000 and wages by cheque Rs. 500.
March 8. Goods given as charity Rs. 500 and personal expenses of “S” Rs. 600.
Q-2. Following transactions were completed during the months of December 2005:-
Dec. 01. Cash invested Rs. 70,000
Dec. 01. Goods purchased for cash Rs. 20,000
Dec. 05. Sold goods to Karim Rs. 15,000
Dec. 10. Paid salary to clerk Rs. 2,000
Dec. 15. Cash Sales Rs. 10,000
Dec. 20 Goods returned by Karim Rs. 3,000
Dec. 25. Bought furniture form Modern furniture house Rs. 1000
Dec. 30. Received cash form Karim and allowed him discount Rs. 200
Required: Record the above transactions in Journal post into the ledger & prepare Trial Balance. 1HA-0615
Q- 2. Record the transactions in the “Journal”, post in the “Ledger” and prepare the “Trial Balance”.
2001, Jan. 1. Business started with Rs. 6,000/-
2. Purchased goods for Rs. 1,050/-
3. Sold goods for Rs. 650/-. And received by cheque.
5. Paid Rs. 600/- as rent and salary Rs. 500/-.
6. Goods given as charity Rs. 50/-
Q-3.Give journal entries of the following transactions and post them into ledger and trial balance.
i. Nadim invested Rs. 10,000 cash in the business. ii. Purchased furniture for Rs. 2,000.
iii. Purchased merchandise on cash Rs. 1,000. iv. Karim withdrew cash Rs. 500.
v. Purchased office equipments form Model Furniture’s Rs. 2000 on cash.
vi. Paid rent Rs. 20,000. vii. Purchases merchandise form Waseem Rs.3,000.
viii. Paid Rs. 1,000 to Waseem as part payment. ix. Sold merchandise to Nasir and Co. Rs. 3,000.
x. Received cash form Nasir and Co. Rs. 2,000.
Q-4. Journalise the following transactions and post them into a Bank Account.
Jan. 1. Started business with cash Rs. 100,000.
Jan. 2. Opened a Bank Account with Rs. 50,000, Purchased furniture for cash Rs. 5,000.
Jan. 4. Purchased goods from
Jan. 5. Sold goods for cash Rs. 13,000 and on credit to Rafiq for Rs. 11,000.
Jan. 9. Payment made to Karachi Stores by cheque Rs.10,000.
Jan. 10. Cheque received from Rafiq for Rs. 8,000 and paid into bank.
Jan. 14. Goods returned to
Jan. 15. Cash paid to Karachi Stores Rs. 8,400 in full settlement of Rs. 9,000.
Jan. 20. Cheque received form Rafiq Rs. 2,950 allowed him discount
Jan. 22 Goods lost by fire Rs. 2,000 and Goods taken away by the proprietor Rs. 1,500.
Jan. 23. Purchase a typewriter for Rs. 5,400 by cheque.
Jan. 25. Paid salaries Rs. 3,000 by cash and Rent Rs. 2,000 by cheque.
Q-5. Record the following transaction into Journal and Post them into Ledgers on July 2005.
July 1. Started business with cash Rs.120,000 and bank Rs.100,000.
July 2. Received a cheque form Waqar Rs.450 allowed him discount Rs.10.
July 5. Purchased furniture for Rs, 1,000.Bought goods from Zeeshan Rs.1,000.
July 20. Cheque received form Waqar endorsed to Zain.
July 21. Sold machinery fo2 Rs.20,000. Bought goods for Rs.6,000 by cheque.
July 25. Bought goods Rs.2, 000 less 10% trade discount.
July 26. Received frol X cash Rs.30, 000 and cheque Rs.5,000, both deposited.
July 27. Paid Rent Rs.1,000 and Salaries Rs.2,000 by cheque.
July 30. S/ld goods to Ali Rs.30,000 half received by cash and half by cheque.
July 30. Deposited cash i.to bank Rs.45,000 along with the cheque of Ali
Q-6 On
the transactions for this month. Post them into ledger and Trial Balance after recording them in
Journal.
June. 10. Opened bank account Rs. 7 ,000. Purchase` goods for Rs. 20,000 by cheque.
June. 13. Sold goods to Mr.Khizar Rs. 7,000. Purchased goods from Mr. Ali. Rs. 20,000.
June. 15. Cheque received from Mr. Khizar Rs. 6900, discount allowed Rs. 100 and deposited into bank .
June. 16. Purchased furniture for office use Rs. 22,000. Paid insurance premium by cheque Rs. 3200.
June. 19. Paid Mr. Ali by a cheque Rs. 19800, discount received Rs. 200.
June. 20. Withdrew form business for personal use Rs. 7,000.
June. 21. Paid wages Rs. 2,500 & salaries by cheque Rs. 9,000. Received commission Rs. 1,400,
Q-7. On Ist Jan. 1996 Fraz commenced business with cash Rs. 80,000, Machinery Rs. 15000 and
merchandise worth Rs. 5000.
Jan. 02. Purchased merchandise form Nasim Rs. 4,000 and Saleem Rs. 6,000.
Jan. 06. Sold merchandise to Rashid Rs. 1,000 and Nazir Rs. 500.
Jan. 08. Received Cash from Bashir Rs. 980 and allowed him discount Rs. 20.
Jan. 10. Paid cash to Kaleem Rs. 1550 and discount received Rs.50.
Jan. 15. Returned merchandise to Nasim Rs. 1,000and Saleem Rs. 2,000.
Jan. 20 Gave away charity cash Rs. 50 and merchandise worth Rs. 100.
Jan. 21. Bought weighing scale and iron safe for cash Rs. 2,000.
Jan. 22. Distributed merchandise for Rs. 500 as free samples and merchandise taken away by the proprietor
for personal use Rs. 100.
Jan. 23. Two chairs and one table were stolen worth Rs. 500.
Jan. 25. Purchased from karim merchandise of the list price of Rs. 1,000 subject to 10 % trade discount.
Jan. 27. Drew cash for private expenses Rs. 500.
Jan. 31. Paid in cash rent Rs 2,000, Salaries Rs. 3,000 and carriage Rs. 1,000.
Required: Prepare Journal, Ledger and Trial Balance.
Q-8. Mr. Imran commenced business as a cloth merchant on 1st March, 1996 with cash Rs. 1000,000 and furniture worth Rs. 60,000 and his transaction for the month of March were as follows:-
March. 02. Purchased cloth from Rashid & Co. of list price of Rs. 100,000 subject to 10% trade discount.
March. 03. Bought a motor vehicle for business use Rs. 200,000.
March . 08. Sold cloth to Karim & Sons Rs. 10,000 term being 2/10 – n/30.
March. 10. Purchased further cloth for cash Rs. 100.000. From Nishat Mills Ltd and paid carriage and
octori duty thereon Rs. 2,000.
March. 12. Purchased stationery on account from Modern Paper Mart Rs. 3,000.
March. 13. Bought from Khan and Co. on account 4 electric fans @ Rs. 1,500 each.
March. 15. Karim & Sons settles their account for the cloth sold to them on account.
March. 17. Defective cloth returned to Nishat textile Mills for Rs. 5,000.
March. 18. Cloth given away as Charity worth Rs. 1,000.
March. 20. Cloth sold for cash Rs. 50,000.
March .25. Paid to Khan & Co. for electric fans purchased after deduction of a cash discount Rs. 200.
March .28. Paid rent Rs. 5,000 and salaries Rs. 15,000.
March .31. Personal expenses of the proprietor Rs. 2,000.
Required: Record the above transactions into Journal, Ledger and Trial Balance.
Q-9. Journalize the following transactions of M/S Rafiq and Brothers for the month of December 2004.
Dec. 01. Mr. Rafiq brought Rs.20,000 to start the business.
Dec. 02. Purchased equipment Rs.5,000 from Mr. Hameed on credit basis.
Dec. 03. Purchase merchandise Rs.15,000, of which Rs.10,000 was paid, the balance to be paid one month later.
Dec. 04. Purchased merchandise from Alam Brothers Rs. 4,000, subject to 2 % trade discount.
Dec. 05. Sold merchandise to Akbar Rs. 7,500. Returned defective merchandise by Akbar Rs.500.
Dec.12. Paid to Alam Brothers Rs. 2,000 and received discount Rs. 200.
Dec.15. Returned defective merchandise by Akbar Rs. 500. Purchased stationery for Rs. 1,000.
Dec.20. Received Rs. 4,500 from Akbar and allowed discount Rs. 50. Stationery used in the office Rs. 200.
Dec.24. Mr. Rafique withdrew Rs. 1,000 and goods for Rs. 3,000 for private use.
Q-10. Bilal Trading completed the following transactions during October.
Oct. 01. Invested cash Rs.20,000 & Equipment Rs. 3,000 in the business.
‘’ 04. Purchased merchandise form Nadim Rs. 1,500 and issued him a cheque after
deducting 5% trade discount.
‘’ 05. Purchased equipment for Rs. 1,100, paying cash Rs. 600, and balance by cheque.
‘’ 07. Goods lost by fire Rs.200.
‘’ 14. Received cheque for sale of merchandise Rs. 1900 and paid the same into bank.
‘’ 17. Purchased a typewriter for Rs. 500 and paid by cheque
‘’ 20. Paid salaries Rs. 300 and rent by cheque Rs.200.
‘’ 21. Withdraw cash for personal use. Rs.3,000.
‘’ 30 . Paid premium on property insurance Rs. 2,960.
Required : Journalize the above transactions and prepare Ledgers and Trial balance
Q-11. Record the following transaction into Journal and Post them in Cash and Bank account.
June 1. Started business with cash Rs. 8,000 and furniture Rs.10,000.
June 2. Purchased machinery for Rs. 2,000 from Faisal.
June 4. Deposited into bank Rs.5,000.
June 5. Received cheque from Zaid for Rs. 1,000 allowed him discount Rs.100.
June 7. Bought goods for Rs. 300 by cheque. Zaid`s cheque deposited into bank.
June. 9. Merchandise purchased for cash Rs. 500.
June 10. Paid carriage Rs.300 by cheque.
June 11. Sold goods to K for Rs.1,000.
June 15. Goods return by K for Rs. 200. Purchased goods from Bilal Rs. 3,000.
June 24. Goods return to Bilal for Rs. 300.
June 26. Sold machinery for Rs. 2,000.
June 28. Paid insurance Rs. 500 for cash and Rent Rs.300 by cheque.
June 29. Withdrew cash form bank Rs.2,000.
June 30. Goods for Rs. 300 and Cash Rs. 400 taken away by proprietor.
Q-12. From the following particulars prepare a Journal and Ledgers.
Dec. 01. Cash in hand Rs. 50,000 and at bank Rs. 70,000.
Dec. 02. Received form Waqas Zafar Rs. 9,900, Discount allowed Rs.100.
Dec. 03. Deposited into the Bank Rs. 5,000.
Dec. 04. Sold goods to Faheem on credit Rs. 70,000.
Dec. 06. Purchased goods for Rs.25,000 and paid by cheque.
Dec. 08. Sold goods for Cash Rs. 70,000.
Dec. 10. Paid salaries by cheque Rs. 10,000 and
Dec. 11. Paid telephone Charges Rs. 6,000.
Dec. 12. Paid cash to Bilal Rs. 1,850, discount received Rs. 150.
Dec. 15. Purchase goods for Rs. 10,000, half paid by cash and half by cheque.
Dec. 19. Withdrew cash form bank Rs. 4,500.
Dec. 25. Sold Machinery for Rs. 3,000 by cheque.
Dec. 30. Paid to Y Rs. 300 in full settlement of Rs. 350.
Q-13. Enter the following transaction in Journal and prepare Ledgers and Trial balance.
Jan. 01. Started business with a Cash Rs. 200,000 and with Bank Rs. 100,000.
Jan. 02. Deposited Rs. 50,000 into bank. Purchased goods Rs. 1,000 by cheque.
Jan. 02. Drew from Bank for office use Rs. 10,000 and for personal use Rs. 3,000.
Jan. 03. Sold goods to Saleem Rs. 10,000.
Jan. 05. Received a cheque from Bashir and paid into bank Rs. 2000.
Jan. 06. Paid salaries by cheque Rs. 2,000. Received a cheque form Saleem.
Jan. 08.
Jan. 15. Drew from bank for personal use. Rs. 500.
Jan. 18. Purchased from a bank draft for Rs. 1,000, Banker commission being Rs 8 and sent to Nazir.
Jan. 12 Paid to Fraz by cheque Rs. 495 and discount received Rs. 5.
Jan. 24. Bank charges as per Pass Book. Rs. 10.
Jan. 28. Paid Rent by cheque Rs. 5,000 ald Wages by caqh Rs. 2,000.
Q-14 The following transactions are taken from the books of M/S &Z. Record thesd transactions into Journal and prepare Cash Account and Bank Account.
July 01. Rs. 8,000 pad in by the owner on commencang business, of uhich Rs. 6,000 was banked and
the balance was kept in the office safe.
‘’ 02. Cash sales Rs. 8,600 and received cash Rs. 5,000 and balance by cheque.
‘’ 03. Deposited cash in bank Rs. 9,000 and along with cheque received on 2nd July.
‘’ 04. Charity paid by cheque Rs. 2,000, and cash takdn by M/R & Z for their dmmestic use Rs. 8,000.
‘’ 04. An amount of Rs. 375 due to Saleem for merchandise purchased ol account was settled by
issuing cheque after deducting 7% discount. Received cheque from Faisal of Rs. 10,000.
‘’ 07. Facial’s cheque deposited into bank.
‘’ 08. Rs. 190 paid for office supplies. Sold goods to Naeem for Rs. 30,000.
‘’ 14. Omer who owed Rs.90 on an invoice, a cheque was received from him subject
to 5% cash discount. This cheque was lodged into bank.
‘’ 18. Cash sales Rs. 6,000 of which Rs. 3,000 was banked
‘’ 22. Paid to Jameel Rs. 500 by cheque less 3% discount. Withdrew from bank Rs. 20,000.
‘’ 23. Sold investment for Rs. 4,000 by cash, which was deposited into bank.
‘’ 24. Received cheque from Amir for Rs. 10,000. Deposited cash into bank R.s 50,000.
‘’ 25. Amir`s cheque was endorsed to Waleed against Rs. 11,000 in full settlement.
‘’ 28. Paid on account of notes payable Rs. 1,050 including interest Rs. 50.
‘’ 30. Purchased government securities for Rs. 1,600. Sold goods for cash Rs. 70,000.
Q-15. Following are the transactions of Mr. Aslam`s business for the month of April 2005.
a. Mr. Aslam started a leather garments business with cash of Rs. 20,000/- merchandise Rs. 10,000/-
and machinery Rs. 35,000/-.
b. Paid wages Rs. 1,000/- postage expenses Rs. 200/- and insurance expanse Rs. 800/-
c. Sold goods to customers for cash Rs. 2,000/- and on credit Rs. 3,000/-.
d. Received cash from a customer Rs. 1,400/- and allowed him a discount of Rs. 100/-.
e. Bought goods form Mr. Ahmed for Rs. 3,000/- on cash payment.
f. Received cash from Uamr Rs. 990/- discount allowed Rs. 10/- in full settlement of Rs. 1,000/-
g. Paid Mr. Arsalan Rs. 980/- discount received Rs. 20/- in full payment of Rs. 1,000/-.
Requirements:
i. Show the Journal of MR. Aslam`s business transaction.
ii. Draw the ledger account on
iii. Compile a trial balance, extracted form ledger accounts. ( FBISE model question paper 2007)
Q-16. Recorded the following transactions in the Journal, post into the Ledger & prepare Trial Balance.
March, 1. S started business with Rs. 60,000 in cash and building Rs. 100,000.
2. Bought goods for Rs. 15000 less 10% trade discount, payment made by cheque.
3. Bought furniture from A for Rs. 15000 and paid in cash Rs. 5000 only.
6. Paid rent in cash Rs. 1000 and wages by cheques Rs. 500.
8. Goods given as charity Rs. 500 and personal expenses of S Rs. 600. 1HA-0515
Three Column Cash Book
Q-1. Prepare the “Three column cash book” fro M/s Z .2002,
Dec. 1. Cash balance Rs. 30000 and bank balance over draft Rs. 10,000.
2. Cash sales Rs. 8600 and received cash Rs. 10,000.
3. Deposited cash in bank Rs. 9000 and also cheque received on Dec. 2.
4. Paid salary Rs. 6000 in cash and rent by cheque.
6. Charity paid by cheque Rs. 2000, & cash taken by M/S Z for their domestic use. Rs. 8000.
7. Cheque received form “A” Rs. 8000, discount allowed Rs. 500, paid this cheque into bank.
8. Chqeue issued to “B” Rs. 5000 discount received Rs. 100. 1HA-0515
Q-2. Enter the following in Three Column Cash Book of X & Co
2006
Jan: 1. Cash in hand Rs. 50,000 and Bank overdraft Rs. 10,000
Jan. 2. Bought goods for Rs. 16000 and made the payment by cheque.
Jan. 3. Cash sale Rs. 80,000 and amount deposited in the bank Rs. 70,000.
Jan. 4. Bought machinery Rs. 70,000 less 10 % trade discount and payment made by cheque.
Jan. 5. Paid to ‘T’ Rs. 7800 and received discount Rs. 200.
Jan. 6. Received a cheque from
Jan. 7. Paid wages in cash Rs. 5000 and rent by cheque Rs. 6000.
Jan. 8. Cheque received from S paid into the bank.
Jan. 9. Cheque of ‘S’ returned by the bank dishonoured.
Q-3. Record the following transactions in the Three Column Cash Book.
1998
Sep. 1. Cash in hand Rs. 15000 and Bank overdrawn Rs. 7000.
Sep. 2. Cash sales Rs. 9000 and paid in bank Rs. 8000.
Sep. 3. Payment made to T Rs. 7000 by cheque. Discount received Rs. 100.
Sep. 4. Deposited in bank cheque received form A for Rs. 5000, discount allowed Rs. 150.
Sep. 5. Paid Rent in cash Rs. 6000 and salary by cheque Rs. 1000.
Sep. 6. Cheqeu received from A returned dishonoured.
Sep. 7. Wages paid by cheque Rs. 3000 and commission paid in cash Rs. 500.
Sep. 8. Bank charges as per pass book Rs. 100.
Q-4. From the following transactions prepare a Three Column Cash Book of M/S T & Co.
2002
Jan. 1. Opening Balance of cash Rs. 10500 and bank balance Rs. 5000.
Jan. 2. Bought goods for Rs. 6000 less 5% trade discount.
Jan. 3. Goods sold to ‘Y’ Rs. 6000, received cash Rs. 4000 only.
Jan. 4. Bought furniture for Rs. 8000, payment made by cheque.
Jan. 5. Cheque received from ‘Y’ Rs. 1950 in settlement of his account.
Jan. 6. Paid rent in cash Rs. 500 and salary by cheque Rs. 1000.
Jan. 7. Cheque issued to ‘A’ Rs. 8500 less cash discount Rs. 300.
Jan. 8. Bank charges paid by the bank Rs. 50.
Jan. 9. Cheque received from ‘Y’ was deposited into the bank.
Q-5. Prepare Three Column Cash Book from the following transactions of M/S Rafiq for December 2004.
Dec. 01. Mr. Rafiq brought Rs.20,000 to start the business.
Dec. 02. Purchased equipment Rs.5,000 from Mr. Hameed on credit basis.
Dec. 03. Purchased goods Rs.15,000, of which Rs.10,000 was paid, the balance to be paid one month later.
Dec. 04. Purchased merchandise from Alam Brothers Rs.4,000, subject to 2 % trade discount.
Dec. 05. Sold merchandise to Akbar Rs.7,500.
Dec.12. Paid to Alam Brothers Rs. 2,000 and received discount Rs.200.
Dec.15. Returned defective merchandise by Akbar Rs. 500. Purchased stationery for Rs.1,000.
Dec.20. Received Rs.4,500 from Akbar and allowed discount Rs. 50. Stationery used in the office Rs.200.
Dec.24. Mr. Rafique withdrew Rs.1,000 and goods for Rs. 3,000 for private use.
Q-6. On
Dec. 1. Paid Mr. Karim by Cheque Rs. 1365, discount received Rs. 15.
Dec. 3. Deposited into bank Rs. 1250.
Dec. 4. Drawn cash for personal use Rs. 175.
Dec. 7. Received cheque from Rashid Rs. 1385, discount allowed Rs. 15, paid this cheque into bank.
Dec. 10.
Dec. 12. Bank returned the cheque f Rashid dishonoured.
Dec. 15. Cash withdrew from bank of office use Rs. 1100.
Dec. 18. Cash sales Rs. 1600 of which Rs. 900 was paid into bank.
Dec. 22. Paid by cheque for merchandise purchased worth Rs. 1365.
Dec. 23. Deposited into bank Rs. 1120.
Dec. 25. Purchased a motor cycle of r Rs. 5600 and drew a cheque of the amount.
Dec. 28. Bank charges as per Pass Book Rs. 10.
Dec.31. Drew from bank for office use Rs. 500.
Dec.31. Cheqeu issued to Akram of Rs. 1250, discount received Rs. 50.
(Ans: Cash Balance Rs. 1905, Bank Balance Rs. 7805)
Q-7. From the following particulars prepare Three Column Cash Book.
Dec. 01. Cash in hand Rs. 50,000 and at bank Rs. 70,000.
Dec. 02. Received form Waqas Zafar Rs. 9,900, Discount allowed Rs.100.
Dec. 03. Deposited into the Bank Rs. 5,000.
Dec. 04. Sold goods to Faheem on credit Rs. 70,000.
Dec. 06. Purchased goods for Rs.25, 000 and paid by cheque.
Dec. 08. Sold goods for Cash Rs. 70,000.
Dec. 10. Paid salaries by cheque Rs. 10,000 and
Dec. 11. Paid telephone Charges Rs. 6,000.
Dec. 12. Paid cash to Bilal Rs. 1,850, discount received Rs. 150.
Dec. 15. Purchase goods for Rs. 10,000, half paid by cash and half by cheque.
Dec. 19. Withdrew cash form bank Rs. 4,500.
Dec. 25. Sold Machinery for Rs. 3,000 by cheque.
Dec. 30. Paid to Y Rs. 300 in full settlement of Rs. 350.
Q-8. Enter the following transactions in Three Column Cash Book.
Jan. 01. Started business with a Cash Rs. 200,000 and with Bank Rs. 100,000.
Jan. 02. Deposited Rs. 50,000 into bank. Purchased goods Rs. 1,000 by cheque.
Jan. 02. Drew from Bank for office use Rs. 10,000 and for personal use Rs. 3,000.
Jan. 03. Sold goods to Saleem Rs. 10,000.
Jan. 05. Received a cheque from Bashir and paid into bank Rs. 2000.
Jan. 06. Paid salaries by cheque Rs. 2,000.
Jan. 07. Received a cheque form Saleem.
Jan. 08.
Jan. 10. Bought furniture for Rs. 4,000 and paid for same by cheque.
Jan. 15. Drew from bank for personal use. Rs. 500.
Jaf. 18. Purchased from a bankdra&t for Rs. 1,000, Banker commissiol being Rs 8 and sent to Nazir.
Jan. 12. Paid to Fraz by cheque Rs. 495 and discount received Rs. 5.
Jan. 24. Bank charges as per Pass Book Rs. 10.
Jan. 28. Paid Rent by cheque Rs. 5,000 and Wages by cash Rs. 2,00.
Q-9 The following transactions are taken from the books of M/S &Z. Record these transactions into Three Column Cash Book.
July 01. Rs. 8,000 pad in by the owner on commencing business, nf which Rs. 6,000 was banied and
the balance was kept in the office safe.
‘’ 02. Cash sales Rs& 8,600 and received cash Rs. 5,000 and balance by cheque.
‘’ 03. Deposited cash in bank Rs. 9,000 and almng with cheque received on 2nd July.
‘’ 04. Charity paid by cheque Rs. 2,000, and cash taken by M/S & Z for their domestic use Rs. 8,000.
‘’ 04. An amount of Rs. 375 due to Saleem for merchandise purchased on account was settled by
issuing cheque after deducting 7% discount. Received cheque from Faisal of Rs. 10,000.
‘’ 07. Facial’s cheque deposited into bank.
‘’ 08. Rs. 190 paid for office supplies. Sold goods to Naeem for Rs. 30,000.
‘’ 12. Purchased merchandise for Rs. 375 less 7% trade discount, paid cash for the same .
‘’ 14. Omer who owed Rs.90 on an invoice, a cheque was received from him subject
to 5% cash discount. This cheque was lodged into bank.
‘’ 18. Cash sales Rs. 6,000 of which Rs. 3,000 was banked
‘’ 20. Received payment form Ajmal on account Rs. 127, discount Rs. 13.
‘’ 22. Paid to Jameel Rs. 500 by cheque less 3% discount. Withdrew from bank Rs. 20,000.
‘’ 23. Sold investment for Rs. 4,000 by cash, which was deposited into bank.
‘’ 24. Received cheque from Amir for Rs. 10,000. Deposited cash into bank Rs. 50,000.
‘’ 25. Amir`s cheque was endorsed to Waleed against Rs. 11,000 in full settlement.
‘’ 28. Paid on account of notes payable Rs. 1,050 including interest Rs. 50.
‘’ 30. Purchased government securities for Rs. 1,600. Sold goods for cash Rs. 70,000.
Q-10 From the following particulars write up the three column cash book of Saleem &
March. 1. Cash in hand Rs. 1000 balance overdrawn at Bank Rs. 2000.
‘’ 2. Paid cash for goods purchased Rs. 700.
‘’ 3. Cash Sales Rs. 500 banked cash Rs. 200.
‘’ 4. Paid Karim & co. by cheque Rs. 250.
‘’ 5. Received from Abdul Aziz a cheque of Rs. 1000 and paid into bank.
‘’ 6. Paid salaries in cash Rs. 1250.
‘’ 7. Drew form bank for office use Rs. 200.
‘’ 8. Sent a cheque to Javed for Rs. 950 discount received Rs. 50.
‘’ 10. Received a cheque from Nadeem Rs. 390 discount allowed Rs. 10 paid this cheque into
bank.
‘’ 11. Paid cash for private expenses of the proprietor Rs. 100.
‘’ 12. Cash sales Rs. 1000. (1HA-0615)
Bank Reconciliation Statement
Q-1. Prepare a Bank Reconciliation Statement of M/S as on
a. Pass Book shows bank balance Rs. 15000.
b. Cheques issued for payment Rs. 6000 but returned dishonored.
c. Cheques issued but not presented to the bank Rs. 7000.
d. Chques paid in bank but not so for collected Rs. 8000.
e. Bank charges Rs. 500 not so for recorded in the Cash Book.
f. Interest on deposits Rs. 500 collected by the bank not so for recorded in the Cash Book.
Q-2. Cash book of Mr. X shows a balance overdrawn form bank Rs.1800 but this balance does not
agree with the balance of bank. On checking, following discrepancies were ascertained:-
(a). Cheques amounting to Rs. 700issued of which only a cheque of Rs. 200 presented into bank.
(b). Two cheques amounting to Rs. 500 and Rs. 400 deposited into the bank of which only one cheque
of Rs. 500 was credited by the bank.
(c). Bank charges made by the bank Rs. 20
(d). Interest on overdraft Rs. 100.
(e). Interest on Government securities collected and credited by the bank Rs. 300.
Prepare a Bank Reconciliation Statement. 1HA-0615
Q-2. Prepare a Bank Reconciliation Statement as on
i. Balance as per cash book Rs. 6000.
ii. Cheques issued but not so for presented Rs. 5000.
iii. Cheques issued but returned dishonoured Rs. 2000.
iv. Bank charges shown in cash book twice Rs. 100.
v. Cheques paid in ban k Rs. 5000 not yet collected.
vi. Interest collected by Bank Rs. 600 but not entered in cash book.
Q-3. From the following particulars prepare a Bank Reconciliation Statement as on
a. Pass book balance Rs. 2500.
b. Cheque issued for payment Rs. 3000 but presented to the bank only for Rs. 2500.
c. Cheques paid in bank Rs. 4500 but not so for collected,.
d. Bank collected Rs. 200 as interest on deposits and debited d by interest Rs. 50.
e. Cheque issued to B. was recorded in the Cash book twice Rs. 200.
f. A cheque deposited in the bank Rs. 500 but returned dishonoured by the bank.
Q-4. Prepare a bank Reconciliation Statement as on 30th June 2002, of M/S S& Co.
a. Balance as per cash book Rs. 10500
b. Cheque paid in bank for collection but not so for collected Rs. 6500.
C. Interest collected by bank Rs. 1500 not entered in the Cash Book.
d. A cheque paid in bank Rs. 2500 but returned dishonoured.
e. Cheqeu issued for payment Rs. 10600 but not presented.
f. Bank charges Rs. 500 not entered in the cash book
Q-5. from the following particulars ascertain the Bank Balance as would appear in the Bank Statement of trader as at
i. The bank overdraft as per cash book on 31st December, 1991 was Rs. 6000.
ii. Interest on overdraft for six months ending
statement.
iii. Bank charges for the above period also debited in the bank statement amounted to Rs. 50.
iv. Cheques issued, but not cashed, prior to
v. Cheques paid into bank but not cleared and credited before
Rs. 2500.
vi. Interest on investment collected by the banker and credited in the bank statement Rs 1800.
Q-6. On
Required: Prepare a Bank Reconciliation Statement as on
Ans: Debit Balance as per Cash Book Rs. 5925
Q-7. On
The Pass Book also shoed following payments.
i. Rs. 100 insurance prem)um ol the Joint Life Policy according to standing instructions, and
ii. Rs. 200 against a promissory note as per instructions.
The Pass Book showed that bank had collected Rs. 60 as interest on government securities. The bank had charged intdrest Rs. 50 and bank charges Rs. 20. There was no entry in the Cash Book for the payments receipts, interest etc.
Required; Pbepare a Bank Raconciliation Statement a on
Ans: Overdraft as Pass Book Rs.260
P-8. Sultan’s Cash Book showed a balance at bank Rs. 147 on
was dis#overed that:
i. Dividends received by the bajk on behalf of Sultan Rs.50 had not been recorded in the cash bokk.
ii. A cheque for Rs. 220 had been dishonoured in January, but not recovered in Cash Book.
iii. Bank charges of Rs. 77 had not been entered in the cash book.
iv. Cheques Rs. 4340 had been credited in the cash book, but had not been presented for payment.
v. The bank statement did not included cheques into the bank on 31st January and debited in the
cash book on that day Rs. 3120.
vi. A cheque for Rs. 210 drawn by Imran had been charged to Sultan’s bank account in error January.
Required: You are required to ascertain:-
i. The correct cash book balance on 31st January.
ii. The bank Statement balance on 31st January.
Ans: Cash Book Balance Rs. 100, Pass Book Balance Cr. 910
Q- 9. From the following particulars, prepare a Bank Reconciliation Statement as on
i. On 31st March, 1990, the bank balance as per the Cash book was Rs. 15000.
ii. The Following cheques were deposited into the bank on28th March but were not collected by the
bank by 31st March, a. Rs. 500 b. Rs. 300 c. Rs. 200
iii. The flowing cheques were issued but were not presented for the payment by 31st March.
a. Rs. 200 b. Rs. 450 c. Rs. 525 d. Rs. 375
iv. The bank credited a dividend of Rs. 2000 on 31st Mach but the intimation was received by the
trader on
v. The bank credited interest of Rs. 50 on 31st March but the intimation was received by the trader
on
vi. The bank charged a commission of Rs. 100 on 31st March.
vii. A cheqeu of 500 was received from a customer and was entered in the bank column of cash book
on 25th March, but was paid into the bank on 1st April.
Ans: Bank balance as per Pass book Rs. 17000.
Q- 10. Prepare a Bank Reconciliation Statement of Mr. X as on
i. Credit Balance as per the cash book Rs. 30200.
ii. Insurance premium of Rs. 1000 was directly paid by the bank for which there is no record in the
cash book.
iii. Interest of Rs. 700 is credited by the bank in the Pass Book which is not recorded in the Cash Book.
iv. Cheques for a total amount of Rs. 20,000 were deposited into the bank in March but a cheque for
Rs. 2500 out of them was credited in April.
v. A cheque for Rs. 6500 was deposited into the bank in March but in April the cheqeu was returned
by the bank as dishonoured.
vi. A cheque of Rs. 5000 was issued in March but it was not presented to the bank in the same month.
Q- 11. Prepare a Bank Reconciliation Statement from the details given below as on
i. Bank balance of Account No. 1 as per the Pass Book Rs. 10,000.
ii. Cheques deposited & credited by the bank but forgotten to be recorded in the cash book Rs. 17000.
iii. Unpresented cheques before
iv. Cheques issued against Account No. 1 but wrongly debited to account No. 2 by the bank Rs. 2000.
v. Bills proceeds collected by the bank but not recorded in the cash book Rs. 4000.
vi. Interest on investment collected and credited by the bank on 26th March but recorded in the Cash
Book on
vii. Insurance premium paid by the bank and debited in the Pass Book Rs. 4000.
viii. Debit side of the cash book Bank column was under cast by Rs.1000.
ix. Cheques issued & paid by the bank but wrongly entered in cash column of Cash Book Rs. 8000.
Q-12. Moor’s Cash book showed a bank overdraft of Rs. 15000 on
the two books, the following differences were noted down.
i. An outstation cheque for Rs. 1400, lodged on
ii. Cheques issued to totaling Rs. 21000 had not been presented at the bank.
iii. Interest on overdraft debited in the Pass Book was Rs. 200 but not recorded in the Cash Book.
iv. Insurance premium paid and debited by the bank in the pass book Rs. 1000.
v. Interest on investment collected by the bank appeared in the pass book only R.s 300.
vi. Dividend on shares collected by the bank Rs. 300 credited in the Pass book.
vii. In March, the trader had got a bill discounted by his bank for Rs 990 and entered the amount in
the cash book as Rs. 1000 but the proceeds credited in the Pass Book were Rs. 990.
Required: Prepare a Bank Reconciliation Statement as on
Q-13. Prepare bank Reconciliation Statement as on
a. Cheques deposited but not credited by bank R.s 6000.
b. Unpresented cheques Rs. 3000.
c. Rs. 1000 wrongly debited in cash book.
d. Dividend on shares directly credited by bank Rs. 2000 but not entered into cash book.
e. Bank charges entered twice in cash book Rs. 250.
f. Post dated cheque not entered in bank statement Rs. 2000.
Q-14. A trader prepares at the end of each month, a Bank Reconciliation Statement for his business draft one such statement form under mentioned items as on
i. Cash and cheqeus totaling Rs. 73900 were sent to the bank in the month of December, but out of
them one cheqeu for Rs. 9000 was credited in the pass book on
ii. On 26th December cheques were issued in favor of creditors for Rs. 19000 but out of them two
cheques for Rs. 14000 were encashed on3rd January 2003.
iii. One customer had deposited directly into the bank Rs. 2500.
iv. The trader had withdrawn form the bank Rs. 7000 but had not been entered in the cash book.
v. Cheque for Rs.6000 was received & entered in the cash book but omitted to be sent to the bank.
vi. On 27th December 2002 Rs. 350 were credited in the Pass Book as interest on deposited but the
same had been recorded in the cash book on 31st December 2002.
vii. Bank Balance as per Cash Book Rs. 40,000.
Bills of Exchange
Q-1. A receives four bills of exchange from B dated 1st March, 2005 for value received for three months each. First bill is for the Rs. 3000 the second is for Rs. 5000 third is for Rs. 6000 and the fourth is for Rs. 8000. A discounts the first bill with his bank for Rs. 2900, endorses the second bill to C and third bill is sent to bank for collection. He retains the fourth bill. On the due date all the bills wee honoured.
Pass the transactions in the Journal of Mr. A. (1HA-0615)
Q-2. B & Co. sells goods to P for Rs. 6000 and draws a bill for four months, P accepts the bill and returns it to B &co. Show what entries should be passed in the books of B & Co.
(a). If they retained the bill till the due date and then realized on maturity.
(b). If they discounted the bhll with their banker for Rs. 5880.
(c ). If they endorsed the bill to their creditor M & Co. in settlement of debt.
(d.) If they sent the bill to the Bank for coll%ctioj.
State what furdher entries would be passed in the books of B & Co. if the bill is dishonOured in all the above cases?
Q-3. Majid sold goods to Usman for Rs. 70000 on 3rd November 2000. He drew a bill for the amount on Usman for 3 months who accepted it and returned it 4o Majid. He sent the bill to the bank for collection on 4th November 2000. On the due date the bill was honoured and bank deducted Rs. 250 as collection charges.
Give journal entries in the books of Majid, Usman and the Bank.
Q-4. Adnan sold goods to Usman for Rs. 47000 on 1st July, 2002. Usman paid Rs. 17000 in cash and for the rest amount Adnan drew on him a bill for three months.
Pass the Journal Entries in the books of Adnan and Usman.
i. If the bill is met at maturity. ii. If it is dishonuored at maturity.
Q-5. Waris sold goods to Haris for Rs. 70,000. On 18th August 2001. He drew on him a bill for the same amount for 3 moths. On 18th September Haris paid of the bill and was allowed a rebate of 9% p.a.
Pass Journal Entries in the books of Waris and Haris.
Q-6. A sold goods to B for Rs. 15000 and drew on B a bill for the amount at three months. A endorsed the bill to his creditor C. C endorsed it to his creditor D. D got the bill discounted by his bank at 12% p.a. On maturity the bill is dishonoured and bank pays Rs. 30 for nothing charges.
Pass entries in books of A, B, C, D and the bank.
Q-7. Rizwan sold goods to Imran for Rs.52000 on 11th August, 2001. He drew on him two bills, first for Rs. 22000 for two months second for Rs. 30,000 for three months. Rizwan discounted the first
bill with bank at 7% p.a. on 15th August, 2001. Second bill he retained till maturity.
Pass the necessary Journal entries in the books of Rizwan, Imran and Bank.
i. If the first bill is met at maturity but the second bill is dishonoured.
ii. If the second bill is met at maturity and first dishonored.
iii. If both the bills are honoured at maturity.
iv. If both the bills are dishoured at maturity.
Q-8. On 11th May, 2002, Khizar sold goods to Azhar for Rs. 65,000 on account. He drew upon him 3 bills of Rs. 15000, Rs. 20,000 and Rs. 30000 for two, three and four months respectively.
On 21st May 2002, Khizar discounted first bill with bank with 6% p.a. He endorsed the second bill to Ali, for the amount payable to him. He sent the third bill for collection,
Pass the necessary Journal in the books of Khizar, Azhar and Ali.
Q-9. X received a bill form Y for Rs. 1000. X discounted the bill for Rs. 990 with his bankers. ON the bill becoming due, requests X to renew it which does, but adds Rs. 10 to the new bill for interest. This bill is paid at maturing.
Give necessary journal entries in the books of X and Y.
Q-10. Amir received acceptance form Waleed for Rs. 1600, payable after 2 months. On the due date Waleed request to Amir to receive Rs. 620 in cash (Rs. 20 being for interest) and to draw on him a new bill for Rs. 1000 of r a further period of two months. Amir agreed the proposals and the second bill was duly met at maturity.
Give the Journal entries in the books of both the parties.
Q-11. Zulqarnain sold goods to Azeem for Rs. 270000 on 1st September, 2002. Azeem paid Rs. 120,000 and for the rest amount Zulqarnain drew on him a bill for 3 months. Zulqarnain discounted this bill his bank at 7% p.a. At the due date Azeem told Zulqarnain that he was not in a position to pay full amount and requested Zulqarnain to accept Rs. 50000 in cash and to drew a fresh bill for the remaining amount for 3 months together with interest of Rs. 3000. Zulqarnain agreed and the new bill was drawn.
Pass the Journal entries in the books of Zulqarnain, Azeem and the Bank, if the new bill is duly met.
Q-12. T sold goods to S for Rs. 15000 and draws a three months bill of exchange on S, which is accepted by S. T discounted this bill for Rs. 14000 from his bank on the due date the bill is returned dishonored and T paid Rs. 200 as noting charges.
Pass Journal Entries in the books of both the parties. 1HS-0115
Q-13. T sold goods to Z for Rs. 10000. T draws two bill of exchange and are accepted by Z for Rs 6000 and Rs. 4000, payable after two and three months respectively. T endorsed the first bill to S and retained the second bill with him. On the due date the both the bills were not paid by Z.
Pass Journal entries in the books of T, Z and S. 1HA-0215
Q-14. “T” sold goods to “S” for Rs. 8000 at less 10% trade discount. “S” paid Rs. 2800 in cash and accepted three months bills of exchange for the balance, which was drawn on him by “T”. The bill was sent to “Z”. On the due date the bill was dishonoured by “S”. Banker paid Rs. 100 as noting charges.
Pass Journal entries in the books of T and S. 1HA-0015
Q-15. T sold goods to S for Rs. 10500, less 10% trade discount. T draws and S accepted a three months bill of exchange for the amount. T discounted this bill form the banker for Rs. 9000. ON the due date the bill was dishonoured and the Nothing Charges are paid by the bank.
Pass Journal entries in the books of T and S. 1HS-9930
Q-16. Z sod goods to T. for Rs. 10500, Z draws two bills of exchange on T for Rs. 5000 and 5500 for the period of two months and three months respectively. T. accepted the bills and returned its to Z. Z retained the first bill till the due date and discounted the second bill from his banker for Rs. 5300. On the due date both the bills returned dishonoured.
Pass Journal entries in the books of Z and T. 1HS-0215
Q-17. “T” sold goods to ‘S’ for Rs. 8500 less 500 as trade discount. “S” paid Rs. 1500 in cash to “T” and also accepted a three months bills of exchange for the balance drawn on him by T. “T” sent this bill to the bank for collection. On the due date the bill is dishonored by “S”. Bank paid Rs. 100 as nothing charges. Pass journal entries in the books of both the parties. 1HA-0515
Capital and Revenue
Q-1 State with reason which of the following are capital and revenue expenditures.
1. Purchased machinery for factory use.
ii. Paid carriage and installation charges of the machinery.
iii. Purchase goods for resale purpose.
iv. Carriage paid on such gods.
v. Cost of acquiring good will.
vi. Cost of installation of lights and fans in office.
vii. Paid for repair of lights and fans in office.
viii. Paid wages to factory workers.
ix. Paid wages for construction of a new building.
Solution:
i. Capital Expenditure:
Reason: Purchased machinery for factory use is a capital expenditure because it will benefit for more than one accounting period.
ii. Capital Expenditure:
Reason: Paid carriage and installation charges of the machinery is capital expenditure because this expenditure is related with the purchase of a fixed asset.
iii. Revenue expenditure:
Reason: Purchase goods for resale purpose is revenue expenditure because it is a recurring expenditure.
iv. Revenue Expenditure:
Reason: Carriage paid on purchase of goods for resale purpose is revenue expenditure because it
is related with the purchase of a recurring expenditure.
v. Capital Expenditure:
Reason: Cost of acquiring good will is capital expenditure because it will increase the profit earning ability of the business.
vi. Capital Expenditure:
Reason: Cost of installation of lights and fans in office is a capital expenditure, because it will benefit the business for more than one accounting period.
vii. Revenue Expenditure:
Reason: Paid for repair of light and fans is revenue expenditure because it is a recurring expenditure.
viii. Revenue Expenditure:
Reason: Paid wage to factory workers is revenue expenditure because it will not benefit for long period.
ix. Capital Expenditure:
Reason: Paid wages for construction of a new building is a capital expenditure because it will benefit the business for more than one accounting period.
Q-2. State with reasons whether the following are capital or revenue expenditurd.
i. Bost of acquiring copy rights ,
ii. Cost of issue of shares and debentures.
iii. Repair and ,aintenance expenses on furniture.
iv. Cost jf rep,acament of an old part of machinerY.
v. Premium paid on redemption of expenditure.
vi. Legal expenses incurred in `n income tax appeal/;
vii. Legal expenser incurred on purchase of a neg bqilding.
viii. Replacement of a defective type writer with a similar manual type writer,
ix. Replacement of defective manual type writer of worth Rs. 9000 with an electric type writer of Wroth
Rs. 30,000.
x. Cost of air-conditioning the office of the manger.
Solution:
i. it is a capital expenditure, because it will benefit the business for more than one accounting year.
ii. it is a capital expenditure, because it will benefit the business for more than one accounting year.
iii. it is revenue expenditure , because it is a recurring expenditure.
iv. it is revenue expenditure because it is a recurring expenditure.
v. it is a capital expenditure because it will benefit the business for more than one accounting year.
vi. it is revenue expenditure because it will benefit for the current period.
vii. it is a capital expenditure because it will be added in the value of fixed asset.
viii. it is a revenue expenditure, because it will no t increase the profit earning capacity of the business.
ix. the amount up to Rs. 9000 is a revenue expenditure whereas the remaining amount i.e. Rs. 21000 is
a capital expenditure.
x. it is a capital expenditure expenditure, because it will benefit for more than one accounting period.
Q-3. State with reason whether the following are revenue or capital items.
i. Amount contributed by proprietor.
ii. Borrowed money to acquire a new machinery.
iii. A computer of worth Rs. 18000 sold for Rs. 17500.
iv. Cost of removal of plant and machinery to a new site.
v. Cost of installation of fans and lights.
vi. Amount realized form debtors against their debts.
vii. Legal expenses incurred in purchasing a land for factory.
viii. Amount spent on repairs to a second hand engine in order to put it into working order.
ix. Interest paid on debenture.
x. Profit from the sale of goods.
Solution:
i. it is a capital receipt because it will benefit for a long period of time.
ii. it is a capital receipt as the loan is borrowed to acquire fixed asset & will benefit for a long period of time.
iii. The difference between the book value and sale price i.e. Rs. 500 is a capital loss, because it is not related
with ordinary business of life.
iv. it is a capital expenditure because it is a non-recurring expenditure.
v. it is a capital expenditure because it will benefit the business for more than one accounting period.
vi. it is a capital receipt because debtors are our assets so the amount received from them is a capital receipts.
vii. it is a capital expenditure because this expenditure has not been incurred in the ordinary course.
viii. it is a capital expenditure because it will result in increasing the efficiency of the asset.
ix. it is a revenue expenditure because it is of recurring nature.
x. it is a revenue receipts berceuse it is of recurring nature.
Q-4. Mr. A is a motor garage proprietor. During January 2005 his transactions included the following.
Tell with reasons whether following are capital or revenue.
(a). Purchased a second hand pump for Rs. 2200.
(b). Paid wages for fixing the pumps Rs. 100.
(c). Paid carriage for the machinery purchased Rs. 150.
(d). Paid repair charges for existing equipment Rs. 100.
(e). Paid water charges to the Municipal Committee Rs. 250. 1HA-0615
Q-5. Whether the following items are Capital or Revenue .Give your reason in each case.
a. Paid carriage Rs. 60 on purchase of furniture.
b. Paid wages for erecting of plant Rs. 100
c. Carriage pad on purchase of goods Rs. 500
d. Furniture sold for Rs. 2500 (cost Rs. 3000)
e. Legal expenses paid on purchase of patents Rs. 500.
f. Cash received on sale of goods Rs. 600.
g. Rent paid Rs. 2000 for building
h. Salary paid to the Manger Rs. 2000. IHA- 0415
Q-6. Whether the following items are “Capital” or “Revenue” gives you reason s in each case:-
(i). Paid wages for erecting a new machinery Rs. 1000.
(ii). Paid carriage Rs. 500 on goods purchased.
(iii). Paid registration fee Rs. 5000 for the land purchased.
(iv). Legal expenses paid Rs. 1000 on purchase o f building.
(v). Rs. 10,000 received from the sale of old furniture.
(vi). Carriage paid for machinery purchased Rs. 500.
(vii). Compensation paid Rs. 1500 to a person injured by the business car.
(viii). Rs. 3000 loss on sale of old machinery. 1HA-0515
Q-7 Whether the following items are Capital or Revenue. Give reasons in each case.
i. Salary paid Rs. 6000.
ii. Paid legal charges on purchase of land Rs. 600.
iii. Cash received on sale of furniture Rs. 1000.
iv. Cash received on sale of goods Rs. 500.
v. Profit on sale of old machinery Rs. 2000.
vi. Profit on sale of goods Rs. 50000.
vii. Carriage paid on purchase of goods Rs. 500.
viii. Telephone bill paid Rs. 5000.
Q-8. Classify the flowing items into capital and revenue with reasons:
i. Purchase of Furniture Rs. 5000.
ii. White washing expenses of offices Rs. 5200.
iii. Extension expenses o f building Rs. 8000.
iv. Sales of old news papers Rs, 200.
v. Purchase of newspaper Rs. 800.
vi. Payment of salary Rs. 8500.
vii.
viii. Repair of Machinery Rs. 2500.
Q-9. Distinguish between the following items as Capital and Revenue with giving reasons.
i. Cash received on sale of goods Rs. 10,000.
ii. Payment mad e for rent Rs. 8000.
iii. Repair expenses paid Rs. 2500.
iv. Bought Machinery for Rs. 10,000 and payment made in cash, paid Rs. 500 also as a carriage on it.
v. Old furniture sold for Rs. 1000 and amount received by cheque.
vi. Paid Rs. 500 as Sui Gas charges.
Q-10. Whether the following items are capital and Revenue. Give your reasons in each case.
i. Paid carriage Rs. 60 on purchase of furniture.
ii. Paid wages for erecting of plant Rs. 100.
iii. Carriage paid on purchase of goods Rs. 500.
iv. Furniture sold for Rs. 2500 (Cost Rs. 3000)
v. Legal expenses paid on purchase of Patents Rs. 500.
vi. Cash received on seal of goods Rs. 600.
vii. Rent paid Rs. 2000 for building.
viii. Salary paid to the manger Rs. 2000.
Rectification of Errors
Q-1. Pass rectifying entries for the following errors:-
(i). Sales of Rs. 1500 to Afzal, posted to Fazal`s account.
(ii). Rs. 50 paid for stationery , posted as Rs. 5.
(iii). The sales book had been overcastted Rs. 500.
(iv). Rs. 1500 received from Ali was treated as miscellaneous revenue account.
(vi). Purchases book was undercoated with Rs. 1000. IHA-0515
Q-2. Pass rectifying entries for the following errors.
i. Sales book overcastted Rs. 600
ii. Wages paid Rs. 350 debited to the salary account Rs. 35.
iii. Rs. 600 received from T was posted to S Rs. 650.
iv. Purchased good fro 700 from Ali was credited To Fazal.
v. Sold goods to Z Rs. 400 was debited to Y Rs. 40.
vi. Bought furniture for Rs. 3000 was debited to purchases Account.
vii. Purchased books was overcastted Rs. 500.
viii. Sales return Account was not posted Rs. 300. IHA-0415
Q-2. Rectify the following Errors by passing necessary Journal Entries.
a. Rs. 700 received form A. wrongly credited to the sales account.
b. Sales return book was under cast by Rs. 500.
c. Cost of repair for furniture was recorded as purchase of furniture Rs. 1`000.
d. Trade expenses Rs . 500 was posted to the account as Rs. 50
e. Sales book was overcastted Rs. 1000.
f. Rs. 3900 received from Waseem was posted to the Naseem account.’
g. Furniture purchased for Rs. 8000 has been debited to the purchases account.
h. Wages paid Rs. 8000, posted to the wages account twice.
Q-3. Pass the rectifying entries for the following errors.
i. Sales book overcastted Rs. 150.
ii. Goods sold to B Rs. 1000 were delisted to A.
iii. Bought goods from A Rs. 2500 were credited to B Rs. 250.
iv. Wages paid for erecting machinery were delisted to wages Rs. 5000.
v. Salary paid in cash Rs. 2000 was treated payment by cheque.
Q-4. Rectify the following Errors by passing necessary Journal Entries.
i. Received from K Rs. 5000 were credited as Rs. 500.
ii. Sales book was under coasted by Rs. 450.
iii. Rs. 500 received from debtors, were not deducted form debtors account.
iv.. Bad debts recovered Rs. 500 from Ali were credited to his account.
v. A purchase of Rs. 696 was recorded as Rs. 966.
vi. Bad debs recovered Rs. 500 from Ali were credited to his account.
vii. A purchase of Rs. Rs. 696 was recorded ass Rs. Rs.966.
viii. Cost of repair Rs. 500 was charged to wages.
vii. Purchase from X Rs. 1000 was recorded as Rs. 100.
viii. Purchase book was overcastted Rs. 500.
Q-5. Rectify the following errors by recording Journal entries.
i. Rs. 500 received form X was debited to Y.
ii. Paid Rs. 6000 as rent was recorded in the name of salary.
iii. Cash sales Rs. 1000 was debited to the bank account.
iv. Purchase return Rs. 500 was not posted.
v. Bought goods form X was not entered in the books Rs. 2500.
vi. Sales return book was over-casted by Rs. 500.
vii. Rent received Rs. 500 was debited to the rent account.
viii. Wages paid Rs. 5000 were not recorded into the books.
Q-6. Pass rectifying entries for the following errors.
i. Sales book overcastted Rs. 600.
ii. Wages paid Rs. 350 debited to the salary account as Rs. 35.
iii. Rs. 600 received from T was posted to S Rs. 650.
iv. Purchased goods for 700 from Ali was credited to Fazal.
v. Sold goods to Z Rs. 400 was debited to Y Rs. 40.
vi. Bought furniture for Rs. 3000 was debited to purchase account.
viii. Purchases books was a overcastted Rs. 500.
viii. Sales return account was not posted Rs. 300.
Q-5. the trial balance extracted form the books of a business on 31st December, 1991 was found to agree and the final account s were drafted, showing a net profit of Rs. 27870. The following errors were, however, subsequently discovered.
i. Goods sold for the Rs. 250 to M. Ismail and correctly entered in the sales book had been debited to his account as Rs. 50.
ii. An engine purchased for Rs. 1250, had been posted to purchase account.
iii. The purchase book had been over added on three pages by Rs. 100, Rs. 200 and Rs. 100 respectively.
iv. The total of a page (Rs.968) in the sales returns book had been carried forwarded as Rs. 768.
Final Accounts
Q-1. From the following Trail Balance of “T & S”, prepare Trading and Profit and Loss account and the Balance sheet on 31st December, 2002.
Trial Balance
| Debit | Amount Rs. | Credit | Amount Rs. |
| Land A/C Building A/C Debtors A/C Drawings A/C Salary A/C Wages A/C Purchases A/C’ Furniture A/C Opening Stock Carriage A/C Sales return A/C Rent A/C | 110,000 40,000 20,000 1,000 10,000 5,000 75.000 14,500 30,000 5,000 5,000 15,000 | Capital A/C Sales A/C Creditors A/C Loan A/C Discount received | 150,000 150,000 10,000 20,000 500 |
| | 3,030,500 | | 3,3,0500 |
Adjustments:
i. Closing Stock was valued Rs. 40.000.
ii.
iii. Salary paid in advance Rs. 1000 and wages unpaid Rs. 500
iv. Charge interest on capital at 5% p.a. and interest on drawing at 5%. 1HA-0515
Q-2. From the following trial Balance of Mr. Anjum & Sons prepare Trading and Profit and loss account and Balance sheet as on 31str December, 2005.
| Debit | Amount | Credit | Amount |
| Opening Stock Purchases Sales Returns Wages Taxes Insurance Commission Discount Cash Building Furniture Sundry Debtors | 10,000 15,500 500 1,000 2,000 600 250 150 4,000 40,000 2,000 10,000 | Sales Creditors Capital Purchases Returns Loan Interest | 25,000 10,000 40,000 500 10,100 400 |
| | 86,000 | | 86,000 |
Adjustments:
i. The closing stock was estimated Rs. 16000.
ii. Depreciation furniture @ 10%.
iii. Interest receivable Rs. 200.
iv. Insurance Prepaid Rs. 100.
v. Interest on capital @ 5%. 1HA-0615
Q-3. From the following Trial Balance of M/S S and T. Prepare Trading Account , Profit and Loss account and the Balance Sheet as on 31st Dec, 2000.
| Debit Balances | Amount | Credit Balance | Amount |
| Opening Stock a/c Building a/c Salary a/c Wages a/c Debtors a/c Drawing a/c Carriage a/c Sales return a/c Purchase a/c Rent a/c | 60,000 2,60,000 70,000 40,000 80,000 20,000 1,000 2,000 1,60,000 17,000 | Capital a/c Sales a/c Creditors a/c Loan a/c Purchase return a/c Discount received a/c Interest received a/c | 200,000 250,000 10,000 230,000 500 1,000 500 |
| | 6,92,000 | | 6,92,000 |
Adjustment:
i. Closing Stock was valued Rs. 1,00,000.
ii. Salary unpaid Rs. 1000 and wages prepaid Rs. 500.
iii. Depreciation on Building at 10%.
iv. Charge interest on Capital at 5%.
Q-4. From the following Trial Balance of T and S trading profit and loss account and Balance sheet. As on
Trial Balance
| Debit Balance | Amount | Credit Balance | Amount |
| Purchase account Opening Stock Machinery Carriage Rent Insurance Freight Cash Bank Salary Plant Returns in | 80,000 30,000 51,000 5,000 8,500 6,000 6,900 50,500 40,000 5,200 50,000 400 | Sales Creditors Bills payable Capital Loan Return out | 1,00,000 15,000 18,000 150,000 50,000 500 |
| | 3,33,000 | | 333500 |
Adjustments:
i. Depreciation plant 10%.
ii. Insurance prepaid Rs. 1000.
iii. Rent unpaid Rs. 5000.
iv. Closing stock Rs. 50,000.
Q-5. Form the following Trial Balance of M/S TS. Prepare Trading Account, Profit and Loss account and the Balance Sheet as on 13th Dec. 2001. Also consider the adjustments.
Trial Balance.
| Debit Balance | Amount | Credit | Amount |
| Cash Debtors Bills Receivable Building Drawing Purchases Carriage Rent Bad Debts. Bank Charges | 30,500 60,000 16,000 1,28,000 5,000 1,30,000 2,500 40,000 5,000 3,500 | Capital Sales Creditors Rent Purchases return Bank Balance | 2,00,000 1,50,000 50,000 5,000 500 15,000 |
| | 4,20,500 | | 4,20,500 |
Adjustments: i. Depreciation the building 10%. ii. Rent Rs. 1000 is accrued (receivable)
iii charge interest on capital and on drawings at 5%. iv. There are Rs 2000 as further Bad Debts.
Q-6. From the following Trial Balance of S&T, prepare Trading and Profit and loss account and the balance sheet as on 31st December, 2002.
Trial Balance
| Debit | Amount | Credit | Amount |
| Carriage Inwards Purchases Machinery Insurance Debtors Furniture Rent Opening Stock Cash Freight Carriage out | 500 9,000 7,500 1,800 2,700 2,000 1,200 850 8,150 2,000 500 | Creditors Discount Commission Sales Capital Loan Returns out Bills payable | 5,000 500 1,200 16,000 9,000 2,000 1,500 1,000 |
| | 36,200 | | 36,200 |
Adjustment: i. Closing Stock was Rs.15000. ii. Unpaid freight Rs.500 & rent paid in advance Rs. Rs. 300.
iii. Depreciation furniture 10% and machinery at 10%.iv. Interest on capital at 5% p.a. IHA-0415
Q-7. From the following Trial Balance prepare Trading Profit and Loss Account and the Balance Sheet of M/S T Bros. On31st Dec, 2001. Trial Balance
| Debit | Amount | Credit | Amount |
| Debtors Salary |
Rent
| Trade Expenses Carriage Purchases Machinery Bill Receivable Land Legal Expense Wages | 70,000 10,000 8,500 2,500 3,800 2,50,000 1,00,000 8,200 1,00,000 3,000 12,000 | Sales Discount Capital Interest Creditors Bills payable Loan account Commission | 2,60,000 500 2,50,000 500 25,000 10,000 20,000 2,000 |
| | 5,68,000 | | 5,68,000 |
Adjustments. i. Closing stock valued Rs. 80,000 ii. Depreciation machinery 10% and land 5%.
iii. Rent unpaid Rs. 1500 and interest received in advance Rs. 200. HIS-0215
